Allient Inc 10-Q for FY2023 Q2

Allient Inc (ALNT)

10-Q 2023-08-02 For: 2023-06-30

Added on April 12, 2026

About this 10-Q

Allient Inc filed this 10-Q on August 2, 2023, covering the quarter ended June 30, 2023 (FY2023 Q2).

Headline figures

Quarter ended June 30, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $146.77M; up 19.6% from $122.72M a year earlier
Diluted EPS: $0.42; up 44.8% from $0.29 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


Colorado		84-0518115
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

495 Commerce Drive, Amherst, New York (Address of principal executive offices)		14228 (Zip Code)

Title of each class		Trading Symbol		Name of each exchange on which registered
Common stock		AMOT		NASDAQ


PART I. FINANCIAL INFORMATION			Page No.

	Item 1.	Financial Statements

		Condensed Consolidated Balance Sheets – Unaudited	1

		Condensed Consolidated Statements of Income and Comprehensive Income (Loss) – Unaudited	2

		Condensed Consolidated Statements of Stockholders’ Equity – Unaudited	3

		Condensed Consolidated Statements of Cash Flows – Unaudited	4

		Notes to Condensed Consolidated Financial Statements – Unaudited	5

	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	19

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27

	Item 4.	Controls and Procedures	28

PART II. OTHER INFORMATION			29

	Item 1A.	Risk Factors	29

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29

	Item 6.	Exhibits	29


	June 30,		December 31,
	2023		2022
Assets
Current assets:
Cash and cash equivalents	$	24,120	$	30,614
Trade receivables, net of provision for credit losses of $1,155 and $1,192 at June 30, 2023 and December 31, 2022, respectively		87,245		76,213
Inventories		116,098		117,108
Prepaid expenses and other assets		11,781		12,072
Total current assets		239,244		236,007
Property, plant, and equipment, net		68,518		68,640
Deferred income taxes		3,765		4,199
Intangible assets, net		113,160		119,075
Goodwill		127,987		126,366
Operating lease assets		21,852		22,807
Other long-term assets		10,968		11,253
Total Assets	$	585,494	$	588,347
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	42,368	$	39,467
Accrued liabilities		45,389		48,121
Total current liabilities		87,757		87,588
Long-term debt		227,106		235,454
Deferred income taxes		6,024		6,262
Pension and post-retirement obligations		2,861		3,009
Operating lease liabilities		17,557		18,795
Other long-term liabilities		7,395		21,774
Total liabilities		348,700		372,882
Stockholders’ Equity:
Common stock, no par value, authorized 50,000 shares; 16,268 and 15,978 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively		92,483		83,852
Preferred stock, par value $1.00 per share, authorized 5,000 shares; no shares issued or outstanding		—		—
Retained earnings		155,772		143,576
Accumulated other comprehensive loss		(11,461)		(11,963)
Total stockholders’ equity		236,794		215,465
Total Liabilities and Stockholders’ Equity	$	585,494	$	588,347


	For the three months ended				For the six months ended
	June 30,				June 30,
	2023		2022		2023		2022
Revenues	$	146,769	$	122,722	$	292,318	$	237,507
Cost of goods sold		100,792		82,948		200,507		164,273
Gross profit		45,977		39,774		91,811		73,234
Operating costs and expenses:
Selling		6,301		5,808		12,333		10,839
General and administrative		14,162		12,595		28,982		24,091
Engineering and development		9,952		9,791		20,339		19,177
Business development		400		1,417		597		2,265
Amortization of intangible assets		3,142		2,645		6,151		5,079
Total operating costs and expenses		33,957		32,256		68,402		61,451
Operating income		12,020		7,518		23,409		11,783
Other expense, net:
Interest expense		3,162		1,525		6,145		2,563
Other (income) expense, net		(42)		(279)		145		(234)
Total other expense, net		3,120		1,246		6,290		2,329
Income before income taxes		8,900		6,272		17,119		9,454
Income tax provision		(2,131)		(1,691)		(4,035)		(2,370)
Net income	$	6,769	$	4,581	$	13,084	$	7,084
Basic earnings per share:
Earnings per share	$	0.42	$	0.30	$	0.82	$	0.47
Basic weighted average common shares		15,969		15,355		15,921		15,226
Diluted earnings per share:
Earnings per share	$	0.42	$	0.29	$	0.81	$	0.45
Diluted weighted average common shares		16,219		15,932		16,178		15,752
Net income	$	6,769	$	4,581	$	13,084	$	7,084
Other comprehensive income (loss):
Foreign currency translation adjustment		(426)		(8,699)		928		(9,932)
Gain (loss) on derivatives, net of tax		707		974		(426)		3,576
Comprehensive income (loss)	$	7,050	$	(3,144)	$	13,586	$	728


	Common Stock									Accumulated Other Comprehensive (Loss) Income
(In thousands except per share data)	Shares	Amount		Unamortized Cost of Equity Awards		Common Stock and Paid-in Capital		Retained Earnings		Foreign Currency Translation Adjustments		Accumulated income (loss) on derivatives		Pension adjustments		Total Stockholders' Equity
Balances, December 31, 2022	15,978	$	89,522	$	(5,670)	$	83,852	$	143,576	$	(16,925)	$	5,556	$	(594)	$	215,465
Stock transactions under employee benefit stock plans	31		1,246				1,246										1,246
Issuance of restricted stock, net of forfeitures	103		4,621		(4,655)		(34)										(34)
Share issuance in connection with acquisition	185				6,250		6,250										6,250
Stock-based compensation expense					1,267		1,267										1,267
Shares withheld for payment of employee payroll taxes	(4)		(146)				(146)										(146)
Comprehensive income (loss)											1,354		(1,565)				(211)
Tax effect of derivative transactions													432				432
Net income									6,315								6,315
Dividends to stockholders - $0.025									(403)								(403)
Balances, March 31, 2023	16,293	$	95,243	$	(2,808)	$	92,435	$	149,488	$	(15,571)	$	4,423	$	(594)	$	230,181
Issuance of restricted stock, net of forfeitures	14		455		(444)		11										11
Stock-based compensation expense					1,544		1,544										1,544
Shares withheld for payment of employee payroll taxes	(39)		(1,507)				(1,507)										(1,507)
Comprehensive (loss) income											(426)		930				504
Tax effect of derivative transactions													(223)				(223)
Net income									6,769								6,769
Dividends to stockholders - $0.03									(485)								(485)
Balances, June 30, 2023	16,268	$	94,191	$	(1,708)	$	92,483	$	155,772	$	(15,997)	$	5,130	$	(594)	$	236,794


Cash and cash equivalents	$	1,755
Trade receivables		3,100
Inventories		3,496
Other assets, net		174
Property, plant, and equipment		624
Right of use assets		4,165
Intangible assets		22,611
Goodwill		15,840
Other current liabilities		(1,577)
Deferred revenue		(776)
Lease liabilities		(4,165)
Net deferred income tax liabilities		(3,931)
Net purchase price	$	41,316


	Three months ended		Six months ended
	June 30,		June 30,
	2022		2022
Revenues	$	127,492	$	248,322
Income before income taxes	$	8,225	$	12,943


		June 30,
		2023
Beginning balance	$	126,366
Impact of measurement period adjustments of acquisitions (Note 2)		1,356
Effect of foreign currency translation		265
Ending balance	$	127,987


		June 30, 2023						December 31, 2022
		Gross		Accumulated		Net Book		Gross		Accumulated		Net Book
	Life	Amount		Amortization		Value		Amount		Amortization		Value
Customer lists	5 - 18 years	$	112,676	$	(38,336)	$	74,340	$	112,378	$	(34,377)	$	78,001
Trade name	10 - 19 years		15,295		(7,435)		7,860		15,320		(6,900)		8,420
Design and technologies	10 - 15 years		41,327		(10,367)		30,960		41,212		(8,558)		32,654
Total		$	169,298	$	(56,138)	$	113,160	$	168,910	$	(49,835)	$	119,075


	Estimated
	Amortization Expense

Remainder of 2023	$	6,073
2024		11,908
2025		11,892
2026		11,795
2027		11,352
Thereafter		60,140
Total estimated amortization expense	$	113,160


		Number of
		shares
Outstanding at beginning of period		403,974
Awarded		123,601
Vested		(114,261)
Forfeited		(1,498)
Outstanding at end of period		411,816


		Asset Derivatives
		Fair value as of:
Derivatives designated as	Balance Sheet	June 30,		December 31,
hedging instruments	Location	2023		2022
Foreign currency contracts	Prepaid expenses and other assets	$	30	$	48
Interest rate swaps	Other long-term assets		6,675		7,236
		$	6,705	$	7,284

		Liability Derivatives
		Fair value as of:
Derivatives designated as	Balance Sheet	June 30,		December 31,
hedging instruments	Location	2023		2022
Foreign currency contracts	Accrued liabilities	$	27	$	—


	Amount of pre-tax (loss) gain recognized				Amount of pre-tax (loss) gain recognized
	in OCI on derivatives				in OCI on derivatives
Derivatives in cash flow hedging relationships	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
Interest rate swaps	$	1,877	$	1,182	$	1,131	$	4,419


	June 30, 2023
	Level 1		Level 2		Level 3
Assets (liabilities)
Pension plan assets	$	5,730	$	—	$	—
Deferred compensation plan assets		4,141		—		—
Foreign currency hedge contract assets		—		30		—
Foreign currency hedge contract liabilities		—		(27)		—
Interest rate swaps, net		—		6,675		—
Contingent consideration		—		—		(4,100)


	Three months ended				Six months ended
	June 30,				June 30,
Target Market	2023		2022		2023		2022
Industrial	$	65,588	$	47,135	$	128,845	$	92,911
Vehicle		34,739		32,555		65,570		65,137
Medical		20,887		20,194		44,562		41,513
Aerospace & Defense		18,979		17,149		40,266		26,593
Distribution and Other		6,576		5,689		13,075		11,353
Total	$	146,769	$	122,722	$	292,318	$	237,507


	Three months ended				Six months ended
	June 30,				June 30,
Geography	2023		2022		2023		2022
North America (primarily U.S.)	$	100,965	$	84,052	$	198,332	$	156,430
Europe		38,326		32,122		78,223		65,871
Asia-Pacific		7,478		6,548		15,763		15,206
Total	$	146,769	$	122,722	$	292,318	$	237,507


	June 30,		December 31,
	2023		2022
Parts and raw materials	$	85,742	$	89,100
Work-in-process		13,387		11,686
Finished goods		16,969		16,322
	$	116,098	$	117,108


	June 30,		December 31,
	2023		2022
Land	$	969	$	965
Building and improvements		25,539		25,093
Machinery, equipment, tools and dies		92,580		89,144
Construction work in progress		15,290		14,197
Furniture, fixtures and other		22,339		22,461
		156,717		151,860
Less accumulated depreciation		(88,199)		(83,220)
Property, plant, and equipment, net	$	68,518	$	68,640


	Operating Leases		Finance Leases
Remainder of 2023		2,705		399
2024		5,028		815
2025		4,067		831
2026		3,487		848
2027		2,908		867
Thereafter		6,488		8,751
Total undiscounted cash flows	$	24,683	$	12,511
Less: present value discount		(2,551)		(3,302)
Total lease liabilities	$	22,132	$	9,209


							Foreign Currency
	Defined Benefit				Tax Effect of		Translation
	Plan Liability		Cash Flow Hedges		Cash Flow Hedges		Adjustment		Total
At March 31, 2023	$	(594)	$	5,745	$	(1,322)	$	(15,571)	$	(11,742)
Unrealized (loss) gain on cash flow hedges		—		1,877		(450)		—		1,427
Amounts reclassified from AOCI		—		(947)		227		—		(720)
Foreign currency translation loss		—		—		—		(426)		(426)
At June 30, 2023	$	(594)	$	6,675	$	(1,545)	$	(15,997)	$	(11,461)


	For the three months ended						2023 vs. 2022
	June 30,						Variance
(Dollars in thousands, except per share data)	2023			2022			$		%
Revenues	$	146,769		$	122,722		$	24,047	20	%
Cost of goods sold		100,792			82,948			17,844	22	%
Gross profit		45,977			39,774			6,203	16	%
Gross margin percentage		31.3	%		32.4	%
Operating costs and expenses:
Selling		6,301			5,808			493	8	%
General and administrative		14,162			12,595			1,567	12	%
Engineering and development		9,952			9,791			161	2	%
Business development		400			1,417			(1,017)	(72)	%
Amortization of intangible assets		3,142			2,645			497	19	%
Total operating costs and expenses		33,957			32,256			1,701	5	%
Operating income		12,020			7,518			4,502	60	%
Interest expense		3,162			1,525			1,637	107	%
Other (income) expense, net		(42)			(279)			237	(85)	%
Total other expense		3,120			1,246			1,874	150	%
Income before income taxes		8,900			6,272			2,628	42	%
Income tax provision		(2,131)			(1,691)			(440)	26	%
Net income	$	6,769		$	4,581		$	2,188	48	%

Effective tax rate		23.9	%		27.0	%
Diluted earnings per share	$	0.42		$	0.29		$	0.13	45	%
Bookings	$	137,008		$	139,209		$	(2,201)	(2)	%
Backlog	$	298,695		$	323,873		$	(25,178)	(8)	%


	For the three months ended
	June 30,
			Per diluted				Per diluted
	2023		share		2022		share
Net income as reported	$	6,769	$	0.42	$	4,581	$	0.29
Non-GAAP adjustments, net of tax (1)
Amortization of intangible assets – net		2,407		0.14		2,233		0.14
Foreign currency gain – net		(11)		-		(194)		(0.01)
Business development costs – net		306		0.02		1,085		0.06
Non-GAAP adjusted net income and adjusted diluted earnings per share	$	9,471	$	0.58	$	7,705	$	0.48


					2023 vs.
	Six Months Ended				2022
	June 30,				Variance
(in thousands):	2023		2022		$
Net cash provided by (used in) operating activities	$	17,273	$	(290)	$	17,563
Net cash used in investing activities		(12,368)		(50,923)		38,555
Net cash (used in) provided by financing activities		(11,092)		58,781		(69,873)
Effect of foreign exchange rates on cash		(307)		(1,185)		878
Net (decrease) increase in cash and cash equivalents	$	(6,494)	$	6,383	$	(12,877)


				Total Number of Shares	Maximum Number of Shares
	Number of Shares	Average Price Paid		Purchased as Part of Publicly	that May Yet Be Purchased
Period	Purchased⁽¹⁾	per Share		Announced Plans or Programs	Under the Plans or Programs
04/01/23 to 04/30/23	38,774	$	38.65	—	—
05/01/23 to 05/31/23	233		35.37	—	—
06/01/23 to 06/30/23	—		—	—	—
Total	39,007	$	38.63	—	—


(a)	Exhibits

	31.1	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

	31.2	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

	32.1	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

	32.2	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

	101.1 SCH	Inline XBRL Taxonomy Extension Schema Document (filed herewith).

	101.2 CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith).

	101.3 DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document (filed herewith).

	101.4 LAB	Inline XBRL Taxonomy Extension Label Linkbase Document (filed herewith).

	101.5 PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document (filed herewith).

	104	Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in exhibits 101.) (filed herewith).

DATE:	August 2, 2023	ALLIED MOTION TECHNOLOGIES INC.
		By:	/s/ Michael R. Leach
		Michael R. Leach
		Senior Vice President & Chief Financial Officer


Date: August 2, 2023	/s/ Richard S. Warzala
	Richard S. Warzala
	Chief Executive Officer