CHICAGO, May 16, 2020 – Shares of Allied Motion Technologies Inc. (NASDAQ: AMOT) showed the bullish trend with a higher momentum of 3.37% to $29.12. The company traded total volume of 66.128K shares as contrast to its average volume of 56.89K shares. The company has a market value of $264.70M and about 9.09M shares outstanding.
Allied Motion Technologies Inc. (NASDAQ: AMOT) reported revenue of $92.40M, down 1.6%, and reflected lower sales to the Vehicle market, partially offset by growth in Industrial and Medical, which included contributions from Dynamic Controls. Excluding foreign currency translation, which had a $1.40M unfavorable impact, revenue, was in line with the prior-year period. Organic revenue declined 2.8% in the quarter.
Operating costs and expenses were up $1.0M, or 23.1% of revenue, largely due to the incremental expenses related to the Dynamic Controls acquisition and associated business development costs. As a result, operating income decreased 8.4% to $6.70M and operating margin declined 50 basis points to 7.3%.
First quarter net income was $4.0M, or $0.42 per diluted share, compared with $4.50M, or $0.48 per diluted share. Excluding business development costs, adjusted net income for the 2020 first quarter was $4.20M, or $0.44 per diluted share.
Earnings before interest, taxes, depreciation, amortization, stock compensation expense and business development costs (“Adjusted EBITDA”) was $11.40M for the first quarter compared with $11.70M in 2019. As a percent of sales, Adjusted EBITDA remained relatively consistent at 12.4% versus the first quarter of 2019.
Liquidity and Balance Sheet: Recent refinancing provides financial flexibility
- Cash and cash equivalents at quarter end were $20.40M compared with $13.40M at the end of 2019.
- Refinanced lending agreement in February 2020:
- Expanded capacity nearly 30%, or $50.0M, to $225.0M
- Accordion feature allows expansion of additional $75.0M
- Increased leverage coverage ratio of net debt/EBITDA by 0.5x to 3.5x
- Total debt as of March 31, 2020 increased by $26.50M to $136.20M from the end of 2019, and reflects funds used to make the Dynamic Controls acquisition.
- Debt, net of cash, was $115.90M, or 48.8% net debt to net capitalization.
- Capital expenditures for the quarter were $1.70M. The Company will control capital expenditures in 2020 to a range of $10.0M to $12.0M that enables key projects to move forward and defers lower priority activities.
The Company offered net profit margin of 4.50% while its gross profit margin was 30.60%. ROE was recorded as 14.20% while beta factor was 1.77. The stock, as of recent close, has shown the weekly downbeat performance of -4.24% which was maintained at -39.96% in this year.