Allient (US:ALNT)2025-11-05 21:11Financial Performance - Revenues for the three months ended September 30, 2025, increased by 11% to $138,743,000 compared to $125,213,000 in 2024, driven by a 9.0% volume increase and a 1.8% foreign currency impact [105]. - Gross profit rose to $46,181,000, an 18% increase from $39,264,000 in the same period last year, with gross margin improving to 33.3% from 31.4% [107]. - Net income for the three months ended September 30, 2025, was $6,477,000, representing a 208% increase compared to $2,101,000 in 2024 [105]. - Net income for the nine months ended September 30, 2025, increased to $15,651, a 54% increase from $10,153 in 2024 [119]. - Adjusted net income for the nine months ended September 30, 2025, was $27,003, compared to $19,471 in 2024, reflecting a 39% increase [131]. - Revenues for the nine months ended September 30, 2025, were $411,124, a 1% increase from $407,958 in 2024 [119]. - Gross profit increased to $135,289 for the nine months ended September 30, 2025, up 6% from $127,317 in 2024, with gross margin percentage rising to 32.9% from 31.2% [122]. - EBITDA for the nine months ended September 30, 2025, was $49,777, compared to $42,438 in 2024, representing a 17% increase [132]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $57,838, up from $48,404 in 2024, indicating a 19% increase [132]. - Order bookings increased by 12% for the nine months ended September 30, 2025, totaling $405,774 compared to $362,131 in 2024 [119]. Cost Management - The effective tax rate for the three months ended September 30, 2025, was 22.2%, slightly down from 22.6% in 2024 [116]. - The company expects to achieve an additional $6 to $7 million in annualized cost savings from its Simplify to Accelerate NOW strategy, with one-time costs estimated at $4 to $5 million [101]. - Engineering and development expenses increased by 7% to $9,687,000 in the three months ended September 30, 2025, reflecting higher incentive compensation [112]. - Selling expenses decreased by 2% to $6,217,000, representing 4% of revenues in 2025 compared to 5% in 2024 [108]. - Selling expenses decreased by 5% during the nine months ended September 30, 2025, as part of cost reduction actions [123]. Strategic Initiatives - The company is restructuring its operations, including transferring assembly operations from Dothan, Alabama, to enhance operational efficiency [100]. - The company has refined its strategy to focus on three technology pillars: Motion, Controls, and Power, and rebranded as Allient Inc. [98]. Cash Flow and Capital Management - Cash and cash equivalents increased by $3,374,000 to $39,476,000 as of September 30, 2025, compared to December 31, 2024 [147]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $43,116,000, an increase of $13,658,000 from $29,458,000 in 2024 [148]. - Capital expenditures for the full year 2025 are expected to be between $6,500,000 and $8,500,000 [150]. - The Company declared dividends of $0.09 per share during each of the nine months ended September 30, 2025, and 2024 [155]. Foreign Currency and Interest Rate Impact - The Company reported a foreign currency loss of $1,974,000 for the nine months ended September 30, 2025, compared to a loss of $380,000 in 2024 [159]. - A hypothetical 10% change in the value of the U.S. dollar would have impacted sales by approximately $4,753,000 for the nine months ended September 30, 2025 [157]. - The Series A Notes will bear interest at 6.46% from October 1, 2024, through September 30, 2025 [160]. - As of September 30, 2025, the company had $134,963 outstanding under the Revolving Facility, with $90,000 currently being hedged [164]. - The company entered into an interest rate swap with a notional amount of $40,000 in March 2022, maturing in December 2026 [163]. - An additional interest rate swap with a notional amount of $50,000 was entered into in September 2024, maturing in September 2027 [163]. - A hypothetical one percentage point change in the Base Rate on $44,963 of unhedged floating rate debt would impact interest expense by approximately $450 for the nine months ended September 30, 2025 [164].