Novanta (US:NOVT)2024-08-06 12:00Financial Performance - Second Quarter 2024 GAAP revenue was $236 million, a 2.8% increase from $229.5 million in the same quarter of 2023[2][4] - GAAP net income for the second quarter 2024 was $13.8 million, down from $20.9 million in the second quarter of 2023, representing a decrease of 34%[3][5] - Adjusted EBITDA for the second quarter 2024 was $51.1 million, slightly down from $51.7 million in the same quarter of 2023[3][5] - The company experienced a 5.3% decrease in organic revenue growth for the second quarter 2024, excluding acquisitions and foreign currency impacts[4] - Revenue for the three months ended June 28, 2024, was $235,864, an increase of 2.0% from $229,464 for the same period in 2023[12] - Operating income fell to $25,715, a decrease of 20.1% compared to $32,198 in the prior year[12] - Net income for the period was $13,755, down 34.2% from $20,879 in the same quarter last year[12] - Basic and diluted earnings per share were both $0.38, compared to $0.58 for the same period in 2023[12] Revenue Projections - For the full year 2024, the company expects GAAP revenue of approximately $975 million, indicating a growth of over 10%[6] - For the third quarter of 2024, the company expects GAAP revenue between $241 million and $244 million[6] Cash Flow and Assets - The company reported an operating cash flow of $41.1 million for the second quarter 2024, compared to $26.2 million in the same quarter of 2023[5] - The company reported a net cash provided by operating activities of $41,095, compared to $26,197 in the same quarter last year[14] - Cash and cash equivalents at the end of the period were $98,468, a decrease from $105,051 at the end of December 2023[13] - Free cash flow (Non-GAAP) for the three months ended June 28, 2024, was $36,158, representing 262.9% of net income[22] Debt and Liabilities - Total assets increased to $1,398,574, up 14.0% from $1,226,056 at the end of December 2023[13] - Total liabilities rose to $696,582, an increase of 26.0% from $552,596 at the end of the previous year[13] - Total debt (GAAP) increased to $481,926 as of June 28, 2024, compared to $354,372 in December 2023[21] Profitability Metrics - Gross profit decreased to $103,689, down 0.4% from $104,123 year-over-year, resulting in a gross profit margin of 44.0%[12][16] - Adjusted gross profit margin for the Medical Solutions segment was 42.9%, slightly up from 42.4% year-over-year[16] - GAAP operating income for the three months ended June 28, 2024, was $25,715, with an operating margin of 10.9%[17] - Adjusted operating income (Non-GAAP) for the same period was $41,343, reflecting an adjusted operating margin of 17.5%[17] - The company reported a net income of $13,755 for the three months ended June 28, 2024, compared to $20,879 for the same period in 2023, indicating a decline in net income margin from 9.1% to 5.8%[20] Tax and Shares - The effective tax rate for the three months ended June 28, 2024, was 19.7%[17] - The weighted average diluted shares outstanding for the three months ended June 28, 2024, was 36,092[17] Other Insights - The company noted that new products are accelerating in adoption, particularly in medical device end-markets and robotics[6] - The company incurred total non-GAAP adjustments of $15,628, which accounted for 6.6% of total income[17] - Free Cash Flow is defined as net cash from operating activities minus cash for property, plant, and equipment purchases, plus cash from sales of property, plant, and equipment[31] - Free Cash Flow as a Percentage of Net Income is calculated by dividing Free Cash Flow by Net Income, indicating liquidity and growth funding capability[31] - Net Debt is defined as total debt plus unamortized deferred financing costs minus cash and cash equivalents at the end of the period[32] - Management uses Net Debt to assess outstanding debt obligations that cannot be covered by available cash and cash equivalents[32]