Financial Data and Key Metrics Changes - In Q4 2020, Novanta reported approximately $147 million in revenue, an 8% year-over-year decline on a reported basis and a 10% decline on an organic basis [7][25] - For the full year 2020, revenue was $591 million, representing a 6% year-over-year decline on a reported basis and an 8% decline on an organic basis [7][25] - Adjusted EBITDA for Q4 was $32 million, or 22% of sales, expanding nearly 300 basis points versus 2019 [8][31] - Full year adjusted EBITDA was $121 million, or 20% of sales, flat versus 2019 on a dollar basis but expanding 100 basis points on lower sales [8][31] - Free cash flow for Q4 was over $43 million, up 32% year-over-year, and for the full year, it was $130 million, up 147% versus 2019 [8][33] Business Line Data and Key Metrics Changes - Vision segment revenue declined 9% year-over-year in Q4, with a book-to-bill ratio of 0.92 [19] - Precision Motion segment saw a 6% growth in revenue in Q4, with bookings growing 50% sequentially and a book-to-bill of 1.17 [22] - Photonics segment revenue was down 14% year-over-year in Q4 but up 8% sequentially, with a book-to-bill of 1.26 [23][24] Market Data and Key Metrics Changes - 56% of total sales in Q4 were to medical end markets, which experienced mid-single-digit declines for the full year due to deferrals of elective procedures [10] - Sales to advanced industrial markets accounted for 44% of total sales in Q4, showing signs of recovery across multiple applications [12] - The vitality index for new products launched in the last four years remained healthy at above 25% of sales [12] Company Strategy and Development Direction - The company plans to launch approximately 25 new products in 2021, doubling the number from 2020, focusing on industrial and surgical robotics, minimally invasive surgery, and precision medicine [13][18] - Novanta aims to transform into a learning culture with continuous improvement across all business areas, enhancing customer satisfaction and operational efficiency [16] - The company is actively pursuing M&A opportunities that fit its financial returns and strategic criteria [18] Management's Comments on Operating Environment and Future Outlook - Management noted a temporary pause in demand from large medical OEMs due to rising COVID cases and deferrals of elective procedures, but expects recovery in the second half of 2021 [11] - The company is seeing positive momentum in advanced industrial markets and anticipates strong sequential revenue improvement in Q1 2021 [9][34] - Management expressed confidence in the long-term strategic positioning and the potential for organic growth driven by new product launches [18][44] Other Important Information - The company reported a GAAP diluted earnings per share of $0.35 in Q4 2020, compared to $0.26 in Q4 2019 [32] - Operating cash flow for Q4 was $47 million, a 31% increase year-over-year [33] - The company plans to publish its first ESG report, focusing on environmental protection, product quality, and diversity [17] Q&A Session Summary Question: How should we think about new product introductions in terms of organic growth? - Management highlighted excitement for the upcoming launches, noting that significant contributions to growth will be seen in 2022 and 2023 as products ramp up [50] Question: Can you discuss the percentage of new products geared towards subsystems versus components? - Management indicated that approximately 30% of revenue is now from intelligent subsystems, up from 5% in 2016, and expects this percentage to increase [52][54] Question: What is the opportunity for gross margin expansion in the Vision segment? - Management stated that gross margin expansion will primarily come from cost actions rather than volume increases, with elective procedures expected to strengthen in the second half of the year [60][61] Question: Will all three segments improve sequentially in Q1? - Management confirmed that Precision Motion and Photonics are expected to trend upwards, while the Vision segment may face challenges due to tough year-over-year comparisons [70][72] Question: Is there still a pipeline of M&A opportunities? - Management affirmed that there is a strong pipeline of opportunities, although valuations have increased, and they remain disciplined in their approach [75]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 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 No. 001-35083 NOVANTA INC. (Exact name of registrant as specified in its charter) New Brunswick, Canada 98-0110412 (State or other jurisdiction of incorpor ...

Financial Data and Key Metrics Changes - Novanta reported approximately $143 million in revenue for Q3 2020, representing a 7% year-over-year decline on a reported basis and a 9% decline on an organic basis [7][31] - Adjusted EBITDA was $30 million, or 21% of sales, expanding 100 basis points compared to 2019 [8] - Free cash flow performance reached nearly $40 million, up over eight times year-over-year, reflecting strong management of operations and working capital [9][43] - GAAP diluted earnings per share was $0.03, down from $0.25 in Q3 2019, while adjusted earnings per share was $0.42 compared to $0.52 in the prior year [42] Business Line Data and Key Metrics Changes - The Vision segment saw an 8% year-over-year revenue decline, with a book-to-bill ratio of 0.92 [21] - The Precision Motion segment experienced a 9% revenue growth, driven by demand in 5G and cloud-based infrastructure [24] - The Photonics segment's revenue was down 15%, consistent with expectations, but bookings grew double digits sequentially [26][27] Market Data and Key Metrics Changes - Elective medical procedures and diagnostic test volumes recovered to about 90% to 95% of pre-COVID levels [11] - Sales to China increased by 46% year-over-year, while sales to the U.S. and Europe were down 7% [35] - The medical end markets accounted for 54% of total sales in Q3 2020, despite low double-digit declines [31] Company Strategy and Development Direction - Novanta's long-term growth drivers include industrial and surgical robotics, minimally invasive surgery, precision medicine, and Industry 4.0 [16][30] - The company is focused on innovation investments and has launched new products, including MOVIA and Ultra IncOder, to capture market opportunities [17][18] - The company is actively pursuing acquisition opportunities that fit its financial returns and strategic criteria [30] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the immediate outlook due to uncertainty in the market and the resurgence of COVID-19 [13][44] - The company expects sequential revenue improvement in Q4 2020, driven largely by the Photonics segment [44] - Management emphasized the importance of maintaining employee safety and business continuity during the pandemic [14][15] Other Important Information - The vitality index, which measures revenue from new products launched in the last four years, remains healthy at over 25% of sales [18] - The company has implemented rigorous cost management measures to navigate the pandemic's challenges [39][40] Q&A Session Summary Question: Can you talk about customer relationships and cost-sharing due to COVID? - Management noted that there has been recognition of higher costs incurred, leading to some sharing of costs with customers to mitigate overall impact [50][52] Question: What is the market potential for new products? - Management indicated a market opportunity of about $100 million for Photonics and a similar range for minimally invasive surgery [55] Question: Will new product revenue impact Q4 and H1 2021? - Management expects more pronounced contributions from new products in 2021 and 2022, with some delays in customer launches [59][60] Question: What is the outlook for the Precision Motion segment? - Management highlighted a 9% growth in Q3 but noted that capital investments in surgical robotics are expected to be delayed until late 2021 [65][66]

Novanta, Inc. (NASDAQ:NOVT) Q2 2020 Earnings Conference Call August 6, 2020 10:00 AM ET Company Participants Ray Nash - Corporate Finance Leader Matthijs Glastra - Chief Executive Officer Robert Buckley - Chief Financial Officer Conference Call Participants Joe Jagoda - CJS Securities Rick Eastman - Robert W. Baird Brian Drab - William Blair Operator Good morning. My name is Laura, and I will be your conference operator today. At this time, I would like to welcome everyone to the Novanta Inc. 2020 Second Qu ...

Financial Data and Key Metrics Changes - In Q1 2020, the company reported revenue of $155.5 million, representing a 1% year-over-year decline on a reported basis and a 4% decline on an organic basis [25][48] - Adjusted EBITDA was $28 million, down 2% compared to Q1 2019 [26][62] - The company achieved a book-to-bill ratio of 1.06, indicating strong bookings driven by customers securing inventories against COVID-19 disruptions [26] Business Line Data and Key Metrics Changes - Medical markets accounted for 58% of total revenue, growing 6% year-over-year, while industrial markets declined by 10% year-over-year [50][52] - The vision segment saw a 5% year-over-year revenue growth, with a book-to-bill ratio of 1.11 [35] - The precision motion segment experienced a 22% revenue decline, but bookings grew by 15% year-over-year [39] - The photonics segment revenue decreased by 7%, with bookings declining by 4% year-over-year [42][43] Market Data and Key Metrics Changes - Sales to China increased by 2% year-over-year, while sales to the U.S. and Europe decreased by 3% year-over-year [54] - The company noted a stable business in diagnostics and ICU markets, with a rapid uptake in PCR molecular testing [32][38] Company Strategy and Development Direction - The company aims to maintain business continuity and ensure employee safety during the pandemic, focusing on innovation and customer support [11][20] - The long-term growth drivers in robotics, automation, and healthcare productivity are expected to remain relevant post-pandemic [46] - The company is committed to pursuing M&A opportunities as a priority for capital allocation [46][105] Management's Comments on Operating Environment and Future Outlook - The management acknowledged the uncertainty in the operating environment due to COVID-19 but expressed confidence in the company's resilience and innovation pipeline [10][46] - The company expects revenue declines in Q2 and Q3, with a potential recovery in the medical business as elective procedures resume [72][76] - Management emphasized the importance of maintaining liquidity and cash flow during the economic downturn [67][88] Other Important Information - The company implemented cost control measures, including a reduction in executive compensation and a temporary halt to share repurchase programs [78][83] - The company has a strong liquidity position with $449 million available, including cash and unused credit facilities [67][87] Q&A Session Summary Question: What is the expected impact on gross margins due to product mix? - Management indicated that gross margins are expected to be impacted by COVID-related costs, which could significantly increase in the upcoming quarters [98][99] Question: Has the R&D budget changed? - The company plans to maintain a similar R&D budget, with a focus on priority programs that may shift based on market conditions [101][102] Question: What is the outlook for acquisitions in the current market? - Management believes that the current climate will create M&A opportunities, although activity may be limited in the first half of the year due to pandemic uncertainties [103][105] Question: How does the company view the recovery trajectory among its platforms? - Management expects medical consumables to recover first, followed by capital equipment as hospitals resume procedures [112][113] Question: What are the anticipated COVID-related costs in the upcoming quarters? - Management expects COVID-related costs to increase significantly in Q2, primarily affecting the cost of goods sold [125][126]

Novanta Inc. (NASDAQ:NOVT) Q4 2019 Earnings Conference Call February 26, 2020 10:00 AM ET Company Participants Ray Nash - Corporate Finance Leader Matthijs Glastra - Chief Executive Officer Robert Buckley - Chief Financial Officer Conference Call Participants Lee Jagoda - CJS Securities Richard Eastman - Robert W. Baird Brian Drab - William Blair Operator Good morning. My name is Eileen and I will be your conference operator today. At this time, I would like to welcome everyone to the Novanta Incorporated's ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 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 No. 001-35083 NOVANTA INC. (Exact name of registrant as specified in its charter) New Brunswick, Canada 98-0110412 (State or other jurisdiction of incorpor ...

| --- | --- | --- | --- | --- | |-----------------------------------------------------------------------------|-------|-------|-------|-------| | | | | | | | A Trusted Technology Partner to Medical and Advanced Technology Equipment | | | | | | Manufacturers Nasdaq: NOVT January 2020 | | | | | SAFE HARBOR STATEMENT The statements in this presentation that relate to guidance, pro forma presentations, future plans, goals, business opportunities, and future events or performance are forward-looking statements t ...

Novanta, Inc. (NASDAQ:NOVT) Q3 2019 Earnings Conference Call November 5, 2019 10:00 AM ET Company Participants Ray Nash - Corporate Finance Leader Matthijs Glastra - CEO Robert Buckley - CFO Conference Call Participants Lee Jagoda - CJS Securities Brian Drab - William Blair Operator Good morning. My name is Francesco and I will be your conference operator today. At this time, I would like to welcome everyone to the Novanta Incorporated 2019 Third Quarter Earnings Call. All lines have been placed on mute to ...

| --- | --- | --- | --- | --- | |-----------------------------------------------------------------------------|-------|-------|-------|-------| | | | | | | | A Trusted Technology Partner to Medical and Advanced Technology Equipment | | | | | | Manufacturers Nasdaq: NOVT November 2019 | | | | | SAFE HARBOR STATEMENT The statements in this presentation that relate to guidance, pro forma presentations, future plans, goals, business opportunities, and future events or performance are forward-looking statements ...