Financial Performance - Revenues for Q1 2025 were $132.8 million, a decrease of 9% from $146.7 million in Q1 2024, primarily due to declines in the Vehicle and Industrial markets [103]. - Gross profit decreased to $42.8 million in Q1 2025 from $47.4 million in Q1 2024, with gross margin slightly declining to 32.2% [105]. - Net income for Q1 2025 was $3.6 million, down 48% from $6.9 million in Q1 2024, reflecting lower sales volume [114]. - Operating income fell to $8.8 million in Q1 2025, a 27% decrease from $12.1 million in Q1 2024 [103]. - Adjusted net income for Q1 2025 was $7.6 million, down from $9.5 million in Q1 2024, with adjusted diluted earnings per share at $0.46 compared to $0.58 [114]. - EBITDA for the three months ended March 31, 2025, was $14,376,000, down from $18,594,000 in 2024, while Adjusted EBITDA was $17,472,000 compared to $20,042,000 in 2024 [123]. - Adjusted net income for the three months ended March 31, 2025, was $7,593,000, resulting in Adjusted diluted earnings per share of $0.46, down from $9,546,000 and $0.58 in 2024 [123]. Bookings and Backlog - Bookings increased by 13% in Q1 2025, totaling $137.6 million compared to $122.1 million in Q1 2024, driven by a 14.1% increase in volume [104]. - The backlog decreased to $237.3 million in Q1 2025, down 8% from $258.1 million in Q1 2024 [103]. Cost Management - The company expects to achieve $6 to $7 million in annualized cost savings in 2025 as part of its Simplify to Accelerate NOW strategy [100]. - Engineering and development expenses decreased by 14% in Q1 2025 compared to Q1 2024, reflecting cost reduction actions [109]. Cash Flow and Investments - Cash and cash equivalents increased by $11,651,000 to $47,753,000 as of March 31, 2025, from $36,102,000 at December 31, 2024 [124]. - Net cash provided by operating activities was $13,928,000 for the three months ended March 31, 2025, an increase of $4,749,000 compared to $9,179,000 in 2024 [125]. - The decrease in cash used in investing activities was primarily due to a reduction in cash paid for acquisitions, totaling $1,060,000 in Q1 2025 compared to $28,500,000 in Q1 2024 [129]. Foreign Currency and Interest Rates - A hypothetical 10% change in the value of the U.S. dollar would have impacted sales by approximately $9,509,000 for the three months ended March 31, 2025 [136]. - As of March 31, 2025, the company had foreign currency contracts with notional amounts of $31,507, resulting in a loss of $124 on these contracts for the three months ended March 31, 2025 [138]. - Net foreign currency transaction losses amounted to $677 for the three months ended March 31, 2025, compared to gains of $238 for the same period in 2024 [138]. - The Series A Notes under the 2024 Note Payable Agreement bear interest at a fixed rate of 5.96% and will mature on March 21, 2031 [139]. - Interest rates on the Credit Facility are based on Term SOFR plus a margin of 2.50% as of March 31, 2025 [140]. - The company entered into an interest rate swap with a notional amount of $40,000 maturing in December 2026 and an additional swap of $50,000 maturing in September 2027 [140]. - As of March 31, 2025, the company had $166,962 outstanding under the Revolving Facility, with $90,000 currently being hedged [141]. - A hypothetical one percentage point change in the Base Rate on the $76,962 of unhedged floating rate debt would impact interest expense by approximately $770 for the three months ended March 31, 2025 [141]. Dividends - The Company declared dividends of $0.03 per share for both the three months ended March 31, 2025, and 2024 [134].
Allient (ALNT) - 2025 Q1 - Quarterly Report