UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to __________ Commission file number 001-40935 HELIOS TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of Inc ...

[Executive Summary & Company Overview](index=1&type=section&id=Executive%20Summary%20%26%20Company%20Overview) Helios Technologies reported Q4 2023 financial results amidst market headwinds, emphasizing transformation and a focus on profitable growth for 2024 [Introduction and CEO Commentary](index=1&type=section&id=Introduction%20and%20CEO%20Commentary) Helios Technologies is a global leader in motion and electronic controls, completing two acquisitions in 2023, and focusing on profitable growth and operational execution for 2024 despite macroeconomic challenges - Helios Technologies is a global leader in highly engineered motion control and electronic controls technology for diverse end markets[2](index=2&type=chunk) - The company completed two flywheel acquisitions in 2023: Schultes Precision Manufacturing, Inc. (January 27, 2023) and i3 Product Development, Inc. (May 26, 2023)[2](index=2&type=chunk) - 2023 was a year of progress despite macroeconomic and geopolitical challenges, marked by executive staff elevation, talent pool deepening, and strategic investments in global facilities and innovation[3](index=3&type=chunk) - The company's focus for 2024 is on executing the realization of its transformation into a global integrated operating company, aiming for increasingly profitable growth and attractive returns on investments[4](index=4&type=chunk) [Q4 & FY23 Highlights and 2024 Outlook Summary](index=1&type=section&id=Q4%20%26%20FY23%20Highlights%20and%202024%20Outlook%20Summary) Helios Technologies delivered Q4 2023 revenue and earnings in line with guidance, demonstrating disciplined cost control and strong cash generation, anticipating a return to growth in 2024 - Delivered revenue and earnings in line with recent guidance[5](index=5&type=chunk) - Demonstrated disciplined cost control during 2H23, resulting in 4Q23 SEA expenses at the lowest quarterly level in FY23[5](index=5&type=chunk) - Generated strong cash from operations of **$33.7 million** in 4Q23, the highest quarter of the year[5](index=5&type=chunk) - Paid down **$19.7 million** of total debt in 4Q23, with debt paydown remaining a capital allocation priority in 2024[5](index=5&type=chunk) - Expects return to growth in 2024, leveraging methodical investments, disciplined cost management, and operational efficiencies to elevate profitability[5](index=5&type=chunk) Key Financial Highlights and 2024 Guidance | Metric | 4Q23 ($ in millions) | FY23 ($ in millions) | 2024 Guidance ($ in millions) | | :-------------------------------- | :----- | :----- | :-------------- | | Revenue | $193.4 | $835.6 | $840 - $860 (1% to 3% annual growth) | | 4Q23 SEA Expenses | Lowest quarterly level in FY23 | N/A | N/A | | 4Q23 Cash from Operations | $33.7 (highest quarter) | N/A | N/A | | 4Q23 Debt Paid Down | $19.7 | N/A | Maximizing debt paydown is priority | [Consolidated Financial Results](index=2&type=section&id=Consolidated%20Financial%20Results) Helios Technologies experienced a decline in net sales, gross profit, and net income for both Q4 and the full year 2023 compared to the prior year, reflecting market headwinds and increased expenses [Overview of Financial Performance](index=2&type=section&id=Overview%20of%20Financial%20Performance) Helios Technologies experienced a decline in net sales, gross profit, and net income for both Q4 and the full year 2023 compared to the prior year, reflecting market headwinds and increased expenses Consolidated Financial Results (Unaudited) | Metric ($ in millions, except per share data) | Dec 30, 2023 (3 Months) | Dec 31, 2022 (3 Months) | Change (3 Months) | % Change (3 Months) | Dec 30, 2023 (Year) | Dec 31, 2022 (Year) | Change (Year) | % Change (Year) | | :------------------------------------------ | :---------------------- | :---------------------- | :------------------ | :------------------ | :------------------ | :------------------ | :---------------- | :---------------- | | Net sales | $193.4 | $196.0 | $(2.6) | (1%) | $835.6 | $885.4 | $(49.8) | (6%) | | Gross profit | $55.3 | $63.2 | $(7.9) | (13%) | $261.7 | $298.5 | $(36.8) | (12%) | | Gross margin | 28.6% | 32.2% | (360) bps | N/A | 31.3% | 33.7% | (240) bps | N/A | | Operating income | $11.9 | $20.7 | $(8.8) | (43%) | $79.9 | $137.3 | $(57.4) | (42%) | | Operating margin | 6.2% | 10.6% | (440) bps | N/A | 9.6% | 15.5% | (590) bps | N/A | | Non-GAAP adjusted operating margin* | 12.6% | 16.7% | (410) bps | N/A | 15.6% | 20.4% | (480) bps | N/A | | Net income | $3.3 | $17.5 | $(14.2) | (81%) | $37.5 | $98.4 | $(60.9) | (62%) | | Diluted EPS | $0.10 | $0.54 | $(0.44) | (81%) | $1.14 | $3.02 | $(1.88) | (62%) | | Non-GAAP net income* | $12.4 | $25.4 | $(13.0) | (51%) | $77.1 | $131.3 | $(54.2) | (41%) | | Diluted Non-GAAP EPS* | $0.38 | $0.78 | $(0.40) | (51%) | $2.34 | $4.03 | $(1.69) | (42%) | | Adjusted EBITDA* | $32.3 | $39.2 | $(6.9) | (18%) | $161.4 | $205.3 | $(43.9) | (21%) | | Adjusted EBITDA margin* | 16.7% | 20.0% | (330) bps | N/A | 19.3% | 23.2% | (390) bps | N/A | [Sales Performance](index=2&type=section&id=Sales%20Performance) Consolidated net sales declined 1% in Q4 2023 and 6% for the full year 2023, with Electronics segment growth partially offsetting Hydraulics declines, and acquisitions contributing $9.4 million - Electronics segment revenue improved **7%** year-over-year in Q4 2023, primarily driven by Health & Wellness[11](index=11&type=chunk) - Hydraulics segment revenue declined **5%** year-over-year in Q4 2023, spread across several end markets[11](index=11&type=chunk) - Sales in the Americas increased by **4%** in Q4 2023, while EMEA declined by **10%** and APAC by **5%** compared to the prior year[11](index=11&type=chunk) - Acquisitions contributed **$9.4 million** in revenue during Q4 2023[11](index=11&type=chunk) - Favorable foreign currency (FX) translation had a **$1.7 million** impact on sales[11](index=11&type=chunk) - Supply chain constraints delayed an estimated **$7.4 million** in sales, now leveling to a more normalized range[11](index=11&type=chunk) [Profitability and Margins](index=2&type=section&id=Profitability%20and%20Margins) Gross profit and margin contracted due to lower volume, restructuring costs, higher wage/benefit costs, and unfavorable mix, partially offset by acquisitions and pricing, while SEA expenses decreased due to cost control - Gross profit declined primarily due to lower volume, restructuring costs, higher wage and benefit costs, partially offset by acquisitions and pricing[11](index=11&type=chunk) - Gross margin contraction was mainly due to under absorption of overhead on lower volume and unfavorable mix[11](index=11&type=chunk) - SEA expenses sequentially decreased by **$2.5 million (7%)** in Q4 2023, driven by cost control measures deployed in 2H23[11](index=11&type=chunk) - Amortization of intangible assets increased **9% to $8.2 million** in Q4 2023, reflecting flywheel acquisitions[11](index=11&type=chunk) - Lower gross profit and margin year-over-year were also influenced by the different margin profile of acquired businesses[20](index=20&type=chunk) - Operating income and margin reflect the impact of lower volume on gross profit and costs related to acquisitions, while maintaining investment levels in new product development[20](index=20&type=chunk) [Non-Operating Items](index=4&type=section&id=Non-Operating%20Items) Net interest expense decreased sequentially due to debt reduction but increased year-over-year due to higher interest rates and increased average net debt from acquisitions, with the effective tax rate significantly higher in Q4 2023 - Net interest expense was down **$0.1 million** sequentially in Q4 2023 due to a **4%** total debt reduction[15](index=15&type=chunk) - Net interest expense was up **$3.6 million** year-over-year in Q4 2023, reflecting higher interest rates and increased average net debt from 1H23 acquisitions[15](index=15&type=chunk) - The effective tax rate for Q4 2023 was **23.3%**, compared to **(2.3%)** in Q4 2022[15](index=15&type=chunk) - The full-year 2023 effective tax rate was **23.8%**, up from **19.2%** in 2022, reflecting the mix in income to various tax jurisdictions[15](index=15&type=chunk) Key Non-Operating Financials (Q4 2023) | Metric | Value ($ in millions) | | :-------------------- | :---------- | | GAAP Net Income | $3.3 | | Diluted EPS | $0.10 | | Diluted Non-GAAP EPS | $0.38 (vs $0.78 in Q4 2022) | | Adjusted EBITDA Margin | 16.7% (contracted 330 bps YoY) | [Segment Performance Review](index=4&type=section&id=Segment%20Performance%20Review) This section details the performance of the Hydraulics and Electronics segments, including sales, gross profit, and operating income, along with organic and acquired net sales and geographic distribution [Hydraulics Segment](index=4&type=section&id=Hydraulics%20Segment) The Hydraulics segment experienced a 5% year-over-year sales contraction in Q4 2023, despite 6% growth in the Americas, due to weakness in EMEA and APAC, with acquisitions contributing $7.1 million Hydraulics Segment Performance (Q4 2023 vs Q4 2022) | Metric ($ in millions) | Dec 30, 2023 | Dec 31, 2022 | Change | % Change | | :--------------------- | :----------- | :----------- | :----- | :------- | | Net Sales (Americas) | $60.2 | $56.8 | $3.4 | 6% | | Net Sales (EMEA) | $38.1 | $43.3 | $(5.2) | (12%) | | Net Sales (APAC) | $35.4 | $40.1 | $(4.7) | (12%) | | Total Segment Sales | $133.7 | $140.2 | $(6.5) | (5%) | | Gross Profit | $41.2 | $48.6 | $(7.4) | (15%) | | Gross Margin | 30.8% | 34.7% | (390) bps | N/A | | SEA Expenses | $21.2 | $18.0 | $3.2 | 18% | | Operating Income | $20.0 | $30.6 | $(10.6) | (35%) | | Operating Margin | 15.0% | 21.8% | (680) bps | N/A | - Acquisitions contributed **$7.1 million** to Hydraulics segment sales in Q4 2023[14](index=14&type=chunk) - Sales improved **1%** sequentially compared with Q3 2023, driven by growing throughput levels in North American Centers of Excellence[14](index=14&type=chunk) - Foreign currency had a favorable **$1.6 million** impact on sales, while supply chain constraints delayed an estimated **$4.2 million** in sales[14](index=14&type=chunk) [Electronics Segment](index=5&type=section&id=Electronics%20Segment) The Electronics segment's sales improved by 7% year-over-year in Q4 2023, driven by increases across all regions and a double-digit increase in health and wellness, partially offset by softness in marine and industrial markets Electronics Segment Performance (Q4 2023 vs Q4 2022) | Metric ($ in millions) | Dec 30, 2023 | Dec 31, 2022 | Change | % Change | | :--------------------- | :----------- | :----------- | :----- | :------- | | Net Sales (Americas) | $48.8 | $48.0 | $0.8 | 2% | | Net Sales (EMEA) | $5.8 | $5.3 | $0.5 | 9% | | Net Sales (APAC) | $5.1 | $2.5 | $2.6 | 104% | | Total Segment Sales | $59.7 | $55.8 | $3.9 | 7% | | Gross Profit | $14.1 | $14.6 | $(0.5) | (3%) | | Gross Margin | 23.6% | 26.2% | (260) bps | N/A | | SEA Expenses | $13.1 | $13.9 | $(0.8) | (6%) | | Operating Income | $1.0 | $0.7 | $0.3 | 43% | | Operating Margin | 1.7% | 1.3% | 40 bps | N/A | - Acquisitions contributed **$2.3 million** to Electronics segment sales in Q4 2023[21](index=21&type=chunk) - Sales declined **14%** sequentially in Q4 2023, as expected from swift market shifts[21](index=21&type=chunk) - Operating income and margin grew due to disciplined cost control, with SEA expenses down **6%** year-over-year and **9%** sequentially[21](index=21&type=chunk) [Organic and Acquired Net Sales](index=15&type=section&id=Organic%20and%20Acquired%20Net%20Sales) For the full year 2023, total consolidated net sales were $835.6 million, with organic sales contributing $782.8 million and acquisitions contributing $52.8 million Organic and Acquired Net Sales (In millions) (Unaudited) | Segment | For the Three Months Ended Dec 30, 2023 (Organic) | For the Three Months Ended Dec 30, 2023 (Acquisition) | For the Three Months Ended Dec 30, 2023 (Total) | For the Year Ended Dec 30, 2023 (Organic) | For the Year Ended Dec 30, 2023 (Acquisition) | For the Year Ended Dec 30, 2023 (Total) | | :-------- | :------------------------------------------------ | :-------------------------------------------------- | :---------------------------------------------- | :---------------------------------------- | :------------------------------------------- | :--------------------------------------- | | Hydraulics | $126.6 | $7.1 | $133.7 | $518.8 | $47.0 | $565.8 | | Electronics | $57.4 | $2.3 | $59.7 | $264.0 | $5.8 | $269.8 | | Consolidated | $184.0 | $9.4 | $193.4 | $782.8 | $52.8 | $835.6 | - Net Sales is considered to be acquisition related until the acquisition has been included in the Company's financial results for one full year[39](index=39&type=chunk) [Net Sales by Geographic Region](index=17&type=section&id=Net%20Sales%20by%20Geographic%20Region) In 2023, the Americas region accounted for 55% of total consolidated sales, followed by EMEA (24%) and APAC (21%), with Americas Hydraulics showing strong growth offsetting Electronics declines Net Sales by Geographic Region and Segment (In millions) (Unaudited) - 2023 | Region | Segment | Q1 | Q2 | Q3 | Q4 | 2023 Total | % Change y/y (2023) | | :------- | :---------- | :----- | :----- | :----- | :----- | :--------- | :------------------ | | Americas | Hydraulics | $57.9 | $60.6 | $55.7 | $60.2 | $234.4 | 17% | | | Electronics | $55.1 | $63.2 | $59.4 | $48.8 | $226.5 | (16%) | | | **Consol. Americas** | **$113.0** | **$123.8** | **$115.1** | **$109.0** | **$460.9** | **(2%)** | | | % of total | 53% | 54% | 57% | 56% | 55% | N/A | | EMEA | Hydraulics | $49.4 | $51.3 | $38.8 | $38.1 | $177.6 | (5%) | | | Electronics | $6.7 | $7.0 | $5.7 | $5.8 | $25.2 | (32%) | | | **Consol. EMEA** | **$56.1** | **$58.3** | **$44.5** | **$43.9** | **$202.8** | **(9%)** | | | % of total | 26% | 26% | 22% | 23% | 24% | N/A | | APAC | Hydraulics | $40.4 | $40.5 | $37.5 | $35.4 | $153.8 | (7%) | | | Electronics | $3.7 | $5.0 | $4.3 | $5.1 | $18.1 | (31%) | | | **Consol. APAC** | **$44.1** | **$45.5** | **$41.8** | **$40.5** | **$171.9** | **(10%)** | | | % of total | 21% | 20% | 21% | 21% | 21% | N/A | | **Total** | | **$213.2** | **$227.6** | **$201.4** | **$193.4** | **$835.6** | **(6%)** | [Balance Sheet and Cash Flow](index=5&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) This section reviews Helios Technologies' balance sheet, cash flow from operations and investing, and debt and liquidity position, highlighting debt reduction and working capital management [Balance Sheet Highlights](index=5&type=section&id=Balance%20Sheet%20Highlights) Helios Technologies reduced total debt sequentially in Q4 2023, prioritizing debt reduction, while cash and cash equivalents decreased and inventory increased due to lower volume and operational integration efforts - Total debt at quarter-end was **$524.8 million**, down from **$544.5 million** at the end of Q3 2023, reflecting debt reduction as a capital allocation priority[19](index=19&type=chunk) - Cash and cash equivalents were **$32.4 million** as of December 30, 2023, down **8%** sequentially[22](index=22&type=chunk) - Inventory increased by **$6.4 million** to **$215.1 million** from Q3 2023, attributed to declining volume from macro shifts and inventory build for North American Hydraulics Centers of Excellence integration[22](index=22&type=chunk) [Cash Flow from Operations and Investing](index=6&type=section&id=Cash%20Flow%20from%20Operations%20and%20Investing) Net cash provided by operations significantly increased in Q4 2023 compared to Q3, demonstrating strong cash conversion, with full-year capital expenditures of $34.3 million primarily for capacity expansion Cash Flow from Operations (In millions) | Metric | Q4 2023 | Q3 2023 | Q4 2022 | FY 2023 | FY 2022 | | :-------------------------- | :------ | :------ | :------ | :------ | :------ | | Net cash from operations | $33.7 | $11.8 | $35.7 | $83.9 | $109.9 | Capital Expenditures (In millions) | Metric | Q4 2023 | % of Sales (Q4 2023) | Q4 2022 | % of Sales (Q4 2022) | FY 2023 | % of Sales (FY 2023) | FY 2022 | % of Sales (FY 2022) | | :----------------- | :------ | :------------------- | :------ | :------------------- | :------ | :------------------- | :------ | :------------------- | | Capital expenditures | $8.8 | 4.6% | $10.0 | 5.1% | $34.3 | 4.1% | $31.9 | 3.6% | - The company paid its 108th sequential quarterly cash dividend on January 19, 2024[22](index=22&type=chunk) [Debt and Liquidity](index=6&type=section&id=Debt%20and%20Liquidity) Helios Technologies maintained a pro-forma net debt-to-adjusted EBITDA ratio of 3.01x at quarter-end, a slight sequential increase, with $200.1 million available on its revolving lines of credit Debt and Liquidity Metrics (In millions) | Metric | As of Dec 30, 2023 | | :---------------------------------- | :----------------- | | Total Debt | $524.8 | | Net Debt | $492.4 | | Pro-forma Net Debt-to-Adjusted EBITDA | 3.01x (vs 2.98x at Q3 2023) | | Available Revolving Lines of Credit | $200.1 | [Full Year 2024 Outlook](index=7&type=section&id=Full%20Year%202024%20Outlook) This section outlines Helios Technologies' financial priorities and key projections for 2024, focusing on profitable growth, working capital improvement, and debt reduction [Financial Priorities](index=7&type=section&id=Financial%20Priorities) Helios Technologies' CFO outlined three clear financial priorities for 2024: executing on profitable sales growth with cost discipline, shortening the cash conversion cycle, and reducing debt using free cash flow - Execute on profitable sales growth plan by realizing operating leverage and instilling investment and cost discipline[23](index=23&type=chunk) - Shorten the cash conversion cycle through sustainable working capital improvement initiatives[23](index=23&type=chunk) - Reduce debt utilizing free cash flow conversion proceeds[23](index=23&type=chunk) - The company aims for more predictable results in 2024 and to evolve into a scalable, integrated operating company[23](index=23&type=chunk) [Key Financial Projections](index=7&type=section&id=Key%20Financial%20Projections) For 2024, Helios Technologies projects consolidated revenue between $840 million and $860 million, with net income expected to be $50 million to $63 million, and an improved Adjusted EBITDA margin Full Year 2024 Outlook | Metric | 2023 Actual ($ in millions) | 2024 Outlook ($ in millions) | | :-------------------------- | :------------ | :------------- | | Consolidated revenue | $835.6 | $840 - $860 | | Net income | $37.5 | $50 - $63 | | Adjusted EBITDA | $161.4 | $163 - $180 | | Adjusted EBITDA margin | 19.3% | 19.5% - 21.0% | | Interest expense | $31.2 | $34 - $35 | | Effective tax rate | 24% | 22% - 24% | | Depreciation | $30.2 | $34 - $36 | | Amortization | $33.6 | $33 - $35 | | Capital expenditures % total revenue | 4% of sales | 3% - 4% of sales | | Diluted EPS | $1.14 | $1.50 - $1.90 | | Diluted Non-GAAP EPS | $2.34 | $2.35 - $2.75 | - The 2024 outlook assumes constant currency and no further impact from macroeconomic or geopolitical environments[23](index=23&type=chunk) [Additional Information](index=7&type=section&id=Additional%20Information) This section provides details on the webcast, company overview, forward-looking statements, risk factors, and contact information [Webcast Information](index=7&type=section&id=Webcast%20Information) Helios Technologies hosted a conference call and webcast on February 27, 2024, to discuss its financial and operating results and outlook, with a replay available via phone and on the company's investor relations website - Conference call and webcast held on February 27, 2024, at 9:00 a.m. Eastern Time[25](index=25&type=chunk) - Telephonic replay available until March 5, 2024, using conference ID 13743457[26](index=26&type=chunk) - Webcast replay and transcript available in the investor relations section of www.heliostechnologies.com[26](index=26&type=chunk) [About Helios Technologies](index=7&type=section&id=About%20Helios%20Technologies) Helios Technologies is a global leader in highly engineered motion control and electronic controls technology, serving diverse end markets across over 90 countries, with a growth strategy focused on innovation and acquisitions - Helios Technologies is a global leader in highly engineered motion control and electronic controls technology[27](index=27&type=chunk) - Serves diverse end markets including construction, material handling, agriculture, energy, recreational vehicles, marine, and health & wellness[27](index=27&type=chunk) - Sells products to customers in over **90 countries** worldwide[27](index=27&type=chunk) - Growth strategy: leading provider in niche markets with premier products and solutions through innovative product development and acquisition[27](index=27&type=chunk) - Has paid a cash dividend to shareholders every quarter since becoming a public company in 1997[27](index=27&type=chunk) [Forward-Looking Statements & Risk Factors](index=9&type=section&id=Forward-Looking%20Statements%20%26%20Risk%20Factors) This news release contains forward-looking statements subject to risks and uncertainties, including global economic trends, supply chain disruptions, capital market conditions, geopolitical events, competition, and new product introductions - Forward-looking statements involve risks and uncertainties, and actual results may differ materially from those expressed or implied[28](index=28&type=chunk) - Key factors that could cause actual results to differ include global economic trends, changes in customer demand, supply chain disruption, capital market conditions (interest rates, capital availability), global and regional economic/political conditions (inflation, exchange rates, energy costs), competitive marketplace changes, risks related to international operations (e.g., conflict in Ukraine and Middle East), and new product introductions/sales mix[29](index=29&type=chunk) - The company undertakes no obligation to update any forward-looking statements[28](index=28&type=chunk) [Contact Information](index=11&type=section&id=Contact%20Information) For further information, interested parties can contact Tania Almond, Vice President of Investor Relations and Corporate Communication, or Deborah Pawlowski of Kei Advisors LLC - Contact: Tania Almond, Vice President, Investor Relations and Corporate Communication, (941) 362-1333, tania.almond@HLIO.com[33](index=33&type=chunk) - Contact: Deborah Pawlowski, Kei Advisors LLC, (716) 843-3908, dpawlowski@keiadvisors.com[33](index=33&type=chunk) [GAAP Financial Statements](index=12&type=section&id=GAAP%20Financial%20Statements) This section presents Helios Technologies' audited GAAP financial statements, including consolidated statements of operations, balance sheets, and cash flows for the reported periods [Consolidated Statements of Operations](index=12&type=section&id=Consolidated%20Statements%20of%20Operations) The Consolidated Statements of Operations provide a detailed breakdown of Helios Technologies' revenues, costs, and expenses, leading to net income for the three months and full year ended December 30, 2023, compared to the prior year - Presents the Consolidated Statements of Operations (In millions, except per share data) for the three months and year ended December 30, 2023, and December 31, 2022[34](index=34&type=chunk)[35](index=35&type=chunk) [Consolidated Balance Sheets](index=13&type=section&id=Consolidated%20Balance%20Sheets) The Consolidated Balance Sheets present Helios Technologies' financial position, detailing assets, liabilities, and shareholders' equity as of December 30, 2023, and December 31, 2022 - Presents the Consolidated Balance Sheets (In millions, except per share data) as of December 30, 2023, and December 31, 2022[36](index=36&type=chunk) [Consolidated Statements of Cash Flows](index=14&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The Consolidated Statements of Cash Flows outline the cash generated and used by Helios Technologies across operating, investing, and financing activities for the years ended December 30, 2023, and December 31, 2022 - Presents the Consolidated Statements of Cash Flows (In millions) for the years ended December 30, 2023, and December 31, 2022[37](index=37&type=chunk)[38](index=38&type=chunk) [Non-GAAP Reconciliations](index=19&type=section&id=Non-GAAP%20Reconciliations) This section provides reconciliations of various Non-GAAP financial measures to their most directly comparable GAAP measures, offering additional insights into the company's operational performance [Non-GAAP Adjusted Operating Income & Margin](index=19&type=section&id=Non-GAAP%20Adjusted%20Operating%20Income%20%26%20Margin) This section provides a reconciliation of GAAP operating income to Non-GAAP adjusted operating income and margin, adjusting for various non-recurring or non-operational items - Presents the Non-GAAP Adjusted Operating Income & Non-GAAP Adjusted Operating Margin RECONCILIATION (In millions) for the three months and year ended December 30, 2023, and December 31, 2022[42](index=42&type=chunk) [Non-GAAP Adjusted EBITDA & Margin](index=19&type=section&id=Non-GAAP%20Adjusted%20EBITDA%20%26%20Margin) This section reconciles GAAP net income to Non-GAAP Adjusted EBITDA and Adjusted EBITDA margin, by adding back interest, taxes, depreciation, and amortization, and further adjusting for specific non-operational expenses - Presents the Non-GAAP Adjusted EBITDA & Non-GAAP Adjusted EBITDA Margin RECONCILIATION (In millions) for the three months and year ended December 30, 2023, and December 31, 2022[43](index=43&type=chunk) [Non-GAAP Adjusted Net Income & Diluted EPS](index=21&type=section&id=Non-GAAP%20Adjusted%20Net%20Income%20%26%20Diluted%20EPS) This reconciliation adjusts GAAP net income and diluted EPS for various non-recurring or non-operational items, including amortization of intangible assets, acquisition and financing-related expenses, and restructuring charges - Presents the Non-GAAP Adjusted Net Income & Non-GAAP Adjusted Net Income Per Diluted Share RECONCILIATION (In millions) for the three months and year ended December 30, 2023, and December 31, 2022[44](index=44&type=chunk) - Acquisition and financing-related expenses include costs associated with M&A activities, deemed not representative of operational performance[44](index=44&type=chunk) - Restructuring activities include costs for creating two new Regional Operational Centers of Excellence, also excluded for operational performance analysis[45](index=45&type=chunk) - Acquisition integration activities include costs for integrating recently acquired businesses, typically occurring up to 18 months post-acquisition[46](index=46&type=chunk) [Non-GAAP Net Sales Growth](index=22&type=section&id=Non-GAAP%20Net%20Sales%20Growth) This section provides a reconciliation of net sales growth, isolating the impact of foreign currency translation and acquisition-related sales to derive organic sales growth in constant currency - Presents the Non-GAAP Net Sales Growth RECONCILIATION (In millions) for Q4 and Full Year 2023[48](index=48&type=chunk)[49](index=49&type=chunk) - The impact from foreign currency translation is calculated by translating current period activity at average prior period exchange rates[49](index=49&type=chunk) [Net Debt-to-Adjusted EBITDA](index=22&type=section&id=Net%20Debt-to-Adjusted%20EBITDA) This reconciliation calculates the net debt-to-TTM pro forma adjusted EBITDA ratio, providing a key leverage metric for the company, adjusted for recent acquisitions - Presents the Net Debt-to-Adjusted EBITDA RECONCILIATION (In millions) as of December 30, 2023[50](index=50&type=chunk)[51](index=51&type=chunk) - The TTM Pro forma adjusted EBITDA is calculated on a pro-forma basis for Schultes and i3 acquisitions[51](index=51&type=chunk) [Non-GAAP Measures Disclaimer](index=22&type=section&id=Non-GAAP%20Measures%20Disclaimer) Helios Technologies uses Non-GAAP financial measures to provide investors with a better understanding of operating performance, as these are used by management for analytical purposes, but they are not GAAP compliant and may not be comparable to other companies - Non-GAAP figures are provided as analytical indicators for investors and management to better understand operating performance[8](index=8&type=chunk)[30](index=30&type=chunk)[51](index=51&type=chunk) - These Non-GAAP financial measures should be considered in addition to GAAP results and not as a substitute for GAAP[8](index=8&type=chunk)[30](index=30&type=chunk)[51](index=51&type=chunk) - Due to varying calculations, these Non-GAAP figures may not be directly comparable to other similarly titled measures used by other companies[8](index=8&type=chunk)[30](index=30&type=chunk)[51](index=51&type=chunk) - The company is unable to present a quantitative reconciliation of forward-looking Non-GAAP financial measures to their most directly comparable GAAP measures due to unavailability of information and the variability, complexity, and limited visibility of adjusting items[31](index=31&type=chunk)[32](index=32&type=chunk)[51](index=51&type=chunk)

FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 0-21835 HELIOS TECHNOLOGIES, INC. (Exact Name of Registration as Specified in its Charter) (State or Other Jurisdiction of Incorporation or Organization) FLORIDA 59-2754337 ...

Net debt is total debt minus cash and cash equivalents. Net debt-to-Adjusted EBITDA is net debt divided by Adjusted EBITDA. Net debt and net debt-to-Adjusted EBITDA are not measures determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP. Nevertheless, Helios believes that providing non-GAAP information such as net debt and net debt-toAdjusted EBITDA are important for investors and other readers of Helios' financial statements, as they are used as ...

Additional New capacity Newly opened Automated Warehouse Adds 30,000 sq. ft. for production and another 10,000 sq. ft. for offices related to production HELIOS TECHNOLOGIES INVESTOR PRESENTATION 4 STRATEGIC INVESTMENTS IN CAPACITY TO MEET GROWING DEMAND Nearing Completion: New Hydraulic Valve and Coupling Solutions Center of Excellence in Sarasota @ Sun Nearing Completion: New Hydraulic Manifold Solutions Center of Excellence in Indiana @ Daman In Progress: New capacity expansion in Tijuana, Mexico @ Balboa ...

Conference Call Participants Tania Almond I'll also point out that during today's call, we will discuss some non-GAAP financial measures, which we believe are useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. We have provided reconciliations of comparable GAAP with non-GAAP measures in the tables that accompany today's slides. Please reference Slides three, four and five ...

Electronics sales decreased over the prior-year period by 37% to $65.5 million, with demand across all regions declining, as mentioned, due primarily to the contraction of the health and wellness market. When excluding the health and wellness market, the Electronics segment grew 11% over Q1 '22. End market demand was driven by industrial and mobile markets. Sequentially, as mentioned, we saw very strong growth in this segment. With that, let's open up the lines for Q&A, please. Okay. And then just in health ...

Helios Technologies, Inc. (NYSE:HLIO) Q4 2022 Earnings Conference Call February 28, 2023 9:00 AM ET Company Participants Tania Almond - VP, IR, Corporate Communications and Risk Management Josef Matosevic - President and Chief Executive Officer Tricia Fulton - Chief Financial Officer Conference Call Participants Joe Grabowski - Baird Nathan Jones - Stifel Jon Braatz - Kansas City Capital Jeffrey Hammond - KeyBanc Capital Operator Ladies and gentlemen, greetings, and welcome to the Helios Technologies Fourth ...

Financial Performance - Consolidated net sales for 2022 increased by $16.2 million, or 1.9%, compared to the prior year, with acquisition growth contributing $24.9 million while organic sales declined by $8.7 million, or 1.0%[205]. - The Hydraulics segment reported net sales of $551.3 million for 2022, a growth of $34.9 million, or 6.8%, with acquisition-related sales accounting for $22.4 million of the increase[212]. - Hydraulics segment net sales for 2022 were $551.3 million, a 6.7% increase from $516.4 million in 2021, driven by a 19.0% increase in the Americas[215]. - Electronics segment net sales decreased by $18.6 million, or 5.3%, to $334.1 million, with organic sales impacted by supply chain constraints and foreign currency exchange rates[218]. Profitability and Costs - Gross profit for 2022 declined by $14.3 million, or 4.6%, driven by lower volume and higher material costs, with gross margin decreasing by 2.3 percentage points to 33.7%[207]. - Operating income as a percentage of sales decreased by 1.7 percentage points to 15.5% in 2022, impacted by gross margin changes and increased M&A-related professional fees[209]. - The Electronics segment experienced a gross profit decline of $17.0 million, or 14.2%, primarily due to lower sales volume and increased material costs[221]. - Gross profit for the Hydraulics segment improved by $2.1 million, or 1.1%, despite a $7.1 million unfavorable impact from foreign currency changes[216]. Restructuring and Strategic Initiatives - The company incurred $5.2 million in restructuring costs in 2022, aimed at improving the global cost structure and aligning employee talent with strategic operational goals[208]. - The company completed several strategic acquisitions, including Schultes Precision Manufacturing in January 2023, enhancing its manufacturing capabilities and expanding into new end markets[196]. Cash Flow and Investments - Cash provided by operating activities totaled $109.9 million in 2022, a decrease of $3.2 million, or 2.8%, compared to the prior year[236]. - Cash on hand increased by $15.2 million to $43.7 million at the end of 2022, supported by a cash management strategy focused on operational funding and debt reduction[236]. - Cash used in investing activities totaled $90.8 million in 2022, slightly up from $90.3 million in 2021, with capital expenditures increasing by 19.0% to $31.9 million[238]. - Capital expenditures for 2023 are forecasted to be approximately 3%-5% of sales, focusing on capacity expansion and technology improvements[238]. Market Trends and External Factors - The health and wellness market experienced a sharp decline in sales during 2022, following a pandemic-driven increase in 2020 and 2021[200]. - Foreign currency exchange rates negatively impacted sales by $27.6 million, or 3.2%, while pricing changes had a favorable impact of $40.2 million, or 4.6%[206]. - A 10% decrease in average exchange rates in 2022 would have resulted in a decrease in annual sales of $32.6 million and net income of $8.1 million[266]. Liabilities and Financing - Borrowings on credit facilities totaled $183.6 million for term loans and $262.9 million for revolving credit facilities as of December 31, 2022[241]. - Dividends paid totaled $11.7 million in 2022, consistent with the previous year, at a rate of $0.09 per share[242]. - Contingent consideration liabilities related to acquisitions amounted to $6.7 million as of December 31, 2022, payable through the last quarter of 2024[245]. - Interest rates on credit facilities ranged from 3.9% to 6.4% as of December 31, 2022, with estimated future interest payments totaling $71.6 million[244]. - The company does not engage in off-balance sheet financing arrangements, including variable interest entities[259].

Helios Technologies, Inc. (NYSE:HLIO) Q3 2022 Earnings Conference Call November 7, 2022 9:00 AM ET Company Participants Tania Almond - VP, IR, Corporate Communications and Risk Management Josef Matosevic - President and Chief Executive Officer Tricia Fulton - Chief Financial Officer Conference Call Participants Mig Dobre - Baird Nathan Jones - Stifel Operator Greetings and welcome to the Helios Technologies Third Quarter Fiscal Year 2022 Financial Results Call. At this time, all participants are in a listen ...