Notable Moving Stock: Allied Motion Technologies Inc. (NASDAQ: AMOT)
Shares of Allied Motion Technologies Inc. (NASDAQ: AMOT) closed with gain/decline of -2.68 percent to $46.42. Recent traded volume was 61,643 shares versus to it an average volume of 51,444 shares. The company holds 9.48M shares outstanding and market cap of 439.833M. The stock day range was recorded between a low of $46.02 and a high $47.34.
Allied Motion Technologies Inc. (AMOT) recently stated financial results for the second quarter ended June 30, 2018.
- Second quarter revenue raised 33% to a record $80.0M driven primarily by organic growth
- Operating income grew $2.2M, or 56%, to $6.2M; Operating margin expanded 120 basis points to 7.8%
- Net Income nearly doubled to $4.2M; Earnings per share raised $0.21 to $0.45
- Orders raised 31% over the previous year; Backlog grew 4% sequentially to a new record level of $111.2M
Second Quarter 2018 Results (Narrative compares with prior-year period unless otherwise noted)
- Record revenue of $80.0M was up $19.6M, or 33%. The raise was Because of growth across all of the Company’s served markets and reflects importantly higher sales to the Vehicle and Industrial/Electronics markets. Not Including the favorable effects of foreign currency exchange (FX), second quarter revenue was $77.7M, up 29%. Sales to U.S. consumers were 52% of total sales for the quarter contrast with 54% for the same period last year, with the balance of sales to consumers primarily in Europe, Canada and Asia.
- Gross profit raised $5.6M, or 32%, to $23.5M, while gross margin reduced 20 basis points to 29.4%. The gross margin change reflects a lower margin contribution from the Maval acquisition.
- Operating costs and expenses were up $3.4M to $17.3M; however, as a percent of revenue, operating costs were down 140 basis points to 21.6%. General and administrative expense as a percent of sales raised 50 basis points to 10.4% primarily Because of higher incentive compensation and additional personnel to support the Company’s growth. Engineering and development (“E&D”) was $5.0M, up 13%, though as a percent of revenue, E&D reduced 110 basis points to 6.2%.
- As a result of the gross profit raise and cost discipline, operating income raised 56%, or $2.2M, to $6.2M, and operating margin expanded 120 basis points to 7.8%.
- Interest expense for the period was unchanged at $0.6M.
- The effective tax rate reduced to 27.4% from 31.8%, largely Because of lower U.S. federal tax rates from the December 2017 Tax Cuts and Jobs Act. The Company anticipates its effective tax rate for 2018 to range from 24% to 26%.
- Net income nearly doubled to $4.2M, or $0.45 per diluted share, from $2.2M, or 0.24 per diluted share.
- Earnings before interest, taxes, depreciation, amortization, stock compensation expense and business development costs (“Adjusted EBITDA”) was $10.0M, up $3.1M or 45%. As a percent of sales, Adjusted EBITDA was 12.5%, an raise of 110 basis points. The Company believes that, when used in conjunction with measures prepared in accordance with U.S. generally accepted accounting principles, Adjusted EBITDA, which is a non-GAAP measure, assists in the understanding of its operating performance. See the attached table for a description of non-GAAP financial measures and reconciliation table for Adjusted EBITDA.
Balance Sheet and Cash Flow Review
- Cash and cash equivalents were $15.3M contrast with $15.6M at the end of 2017. Total debt was $64.9M at the end of the second quarter, up $11.8M from year-end 2017 largely Because of the Maval acquisition in the first quarter of 2018. Debt, net of cash, was $49.6M, or 34.2% of net debt to capitalization, up from 30.1% at the end of 2017.
- Capital expenditures of $5.6M included investments for productivity improvement and growth initiatives. The Company continues to expect to invest $13M to $16M in capital expenditures during fiscal 2018. The higher level of capital expenditures when contrast with 2017 reflects success based expenditures in support of the important reported project wins.
Net profit margin of the firm was recorded at 4.00 percent and operating profit margin was calculated at 8.10 percent while gross profit margin was measured as 30.00 percent. Beta factor, which measures the riskiness of the security, was registered at 2.15.
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