Revenue and Income - Revenue for 2024 was $529,968, a decrease of 8.4% from $578,634 in 2023, with the Industrial and Vehicle markets experiencing declines[143]. - Net income for 2024 was $13,166, or $0.79 per diluted share, a 45% decrease compared to $24,097, or $1.48 per diluted share in 2023[143]. - Revenues for 2024 decreased to $529,968, down 8% from $578,634 in 2023, primarily due to a volume decrease of 8% and elevated inventory levels[173]. - Adjusted net income for 2024 was $24,679, down from $37,458 in 2023, with adjusted diluted earnings per share decreasing to $1.49 from $2.30[183]. - The company reported a comprehensive income of $158,000 for 2024, a significant drop from $25,885,000 in 2023[226]. - Operating income fell by 29% to $30,038 in 2024, compared to $42,314 in 2023[173]. - The income before income taxes for the year ended December 31, 2024, was $16,858,000, a decrease from $29,700,000 in 2023[324]. Bookings and Backlog - Bookings fell to $480,031 in 2024, an 8% decrease from $520,275 in 2023, with backlog decreasing by 17% to $230,788[143]. - Bookings for 2024 were $480,031, an 8% decrease from $520,275 in 2023, with backlog also declining by 16% to $230,788[173]. - The company's backlog as of December 31, 2024, was $230,788, with an expectation to recognize 85% of these performance obligations within the next twelve months[288]. Expenses and Costs - Gross profit decreased by 10% to $165,691 in 2024, resulting in a gross margin of 31.3%, down from 31.7% in 2023[143]. - General and administrative expenses decreased by 5% to $55,669 in 2024, reflecting cost reduction actions[177]. - Cash paid for interest in 2024 was $12,059 thousand, a slight decrease from $12,200 thousand in 2023, while income taxes paid decreased to $7,804 thousand from $12,687 thousand[255]. - The total operating lease expense for 2024 was $8,171,000, compared to $8,769,000 in 2023, reflecting a decrease of approximately 6.8%[337]. Dividends - The company declared dividends of $0.12 per share in 2024, with a payout ratio of 15% compared to 8% in 2023[144]. - The company declared dividends of $0.12 per share in 2024, up from $0.115 per share in 2023[202]. - For the years ended December 31, 2024, 2023, and 2022, total dividends paid were $1,981,000, $1,826,000, and $1,536,000, respectively, with per share dividends of $0.12, $0.115, and $0.10[305]. Assets and Liabilities - As of December 31, 2024, the company recorded $111,517 in inventory, representing approximately 19% of total assets[165]. - Goodwill recorded on the balance sheet as of December 31, 2024, was $131,789, representing about 23% of total assets[168]. - Total current assets decreased to $237,580,000 in 2024 from $248,151,000 in 2023, primarily due to a reduction in trade receivables and inventories[225]. - Total liabilities decreased to $310,927,000 in 2024 from $345,967,000 in 2023, with a significant reduction in current liabilities[225]. - The company’s long-term debt increased to $224,177,000 in 2024 from $218,402,000 in 2023, indicating a slight rise in leverage[225]. Cash Flow - Net cash provided by operating activities decreased by $3,188 to $41,850 in 2024 from $45,038 in 2023[193]. - Cash used in investing activities increased by $12,307 to $(34,914) in 2024, primarily due to a $20,000 cash payment for the acquisition of SNC[195]. - Cash used in financing activities decreased by $20,474 to $(843) in 2024, reflecting $20,000 borrowed from the Amended Revolving Facility for the SNC acquisition[196]. - Cash and cash equivalents increased to $36,102,000 in 2024 from $31,901,000 in 2023, indicating improved liquidity[225]. Acquisitions - The company acquired SNC Manufacturing Co. for a purchase price of $20,000 thousand, with SNC contributing $38,045 thousand in revenue and $3,066 thousand in net income during 2024[271][272]. - The company acquired 100% of Sierramotion Inc. for a total purchase price of $8,400, which includes $2,000 of contingent consideration[277]. - The company incurred $313 thousand in transaction costs related to the acquisition of SNC, which are included in business development expenses[271]. Financial Instruments and Risk Management - The Company holds notional amounts of $90,000,000 in interest rate derivatives as of December 31, 2024, to manage exposure to interest rate movements[319]. - The Company had foreign currency contracts with notional amounts of $30,945,000 and $22,193,000 at December 31, 2024, and 2023, respectively, resulting in losses of $1,749,000 and $281,000 for the years ended December 31, 2024, and 2023[318]. Taxation - The effective tax rate increased to 21.9% in 2024 from 18.9% in 2023, influenced by various tax provisions and credits[181]. - The total income tax provision for 2024 was $3,692,000, compared to $5,603,000 in 2023, reflecting a provision rate of 21.9%[324]. - Noncurrent deferred tax assets increased to $22,951,000 in 2024 from $20,877,000 in 2023, primarily due to research and development costs[325]. Future Outlook - The company plans to expand machining capabilities at its Dothan, Alabama facility, expected to yield initial benefits by the end of 2025[154]. - The company plans to focus on new product development and market expansion strategies to drive future growth[226]. - The company expects capital expenditures in 2025 to be approximately $10,000 to $12,000[195].
Allient (ALNT) - 2024 Q4 - Annual Report