Novanta (NOVT)2024-11-05 13:00Revenue and Growth - Q3 2024 GAAP revenue of $244 million, a 10.3% increase YoY, driven by acquisitions contributing $21.1 million (9.5%) and favorable foreign exchange impact of $1.8 million (0.8%)[4] - Revenue increased to $244.405 million, up 10.3% from $221.503 million in the previous year[13] - Organic Revenue Growth for Q3 2024 was 10.3%, adjusted for acquisitions and foreign currency effects[21] - Organic revenue growth for 2025 is projected to be up to 10% compared to 2024, driven by new product launches and a recovering investment climate[7] - Medical Solutions segment revenue grew to $103.783 million, up 24.5% from $83.378 million[16] - Robotics and Automation segment revenue increased to $80.027 million, up 19.7% from $66.848 million[16] Profitability and Margins - Q3 2024 GAAP net income of $19 million, down from $21 million in Q3 2023, with diluted EPS at $0.53 compared to $0.59 YoY[4][5] - Q3 2024 adjusted EBITDA of $57 million, up from $52 million in Q3 2023, with adjusted diluted EPS remaining flat at $0.85[5] - Adjusted gross profit margin for Q4 2024 is expected to be approximately 46.0%, with full-year 2024 adjusted gross profit margin at 46.3%[7] - Gross profit margin (GAAP) for Precision Medicine and Manufacturing decreased to 44.6% from 50.8%[17] - Adjusted gross profit margin (Non-GAAP) for Robotics and Automation improved to 52.2% from 50.9%[17] - Operating Income for Q3 2024 was $32.555 million with an Operating Margin of 13.3%[19] - Adjusted Operating Income for Q3 2024 was $46.762 million, with an Adjusted Operating Margin of 19.1%[19] - Adjusted EBITDA for Q3 2024 was $56.976 million, representing an Adjusted EBITDA Margin of 23.3%[21] - Adjusted Net Income for Q3 2024 was $30.645 million, with an Adjusted Diluted EPS of $0.85[19] Cash Flow and Debt - Operating cash flow for Q3 2024 was $23 million, a significant decrease from $44.6 million in Q3 2023[6] - Free Cash Flow for Q3 2024 was $19.465 million, representing 101.4% of Net Income[22] - Net Debt as of September 27, 2024, was $367.637 million[21] - Long-term debt increased to $452.502 million, up 29.5% from $349.404 million[14] - Cash and cash equivalents decreased to $92.690 million, down 11.8% from $105.051 million[14] Guidance and Projections - Q4 2024 revenue guidance of $237 million to $242 million, with adjusted EBITDA expected between $50 million and $52 million, and adjusted diluted EPS between $0.70 and $0.74[7] - Full-year 2024 revenue guidance of $948 million to $953 million, with adjusted EBITDA expected between $208 million and $210 million, and adjusted diluted EPS between $3.02 and $3.06[7] Customer and Product Performance - Customer bookings increased 13% YoY for core businesses, with minimally invasive surgery products achieving a book-to-bill ratio of 1.4[3] - The company's minimally invasive surgery products achieved a book-to-bill ratio of 1.4, indicating strong demand and positive momentum from new product launches[3] Financial Position and Shares - Total assets grew to $1.418823 billion, up 15.7% from $1.226056 billion[14] - Weighted average shares outstanding - Diluted remained stable at 36,129[18] - Weighted average shares outstanding - Diluted for Q3 2023 was 36,041[20] Adjustments and Non-GAAP Metrics - Total non-GAAP adjustments for Q3 2024 amounted to $14.207 million, representing 5.8% of total adjustments[19]