Allied Motion (NASDAQ:AMOT)

On 1/14/2011 we added AMOT to the GeoSpecial list @ $7.74

 
Catalyst: Strong third quarter 2010 results and strong interview with management.

We are now removing AMOT from the GeoSpeicial List @ $5.91

Current road block: Second quarter in a row of subpar revenue growth; the Eurozone crisis continue to effect business.  Reference comments from the second quarter 2012 release:

"Looking out at the remainder of the year, we don’t expect market conditions to change significantly from the current uncertain economic conditions in Europe, the slowdown in Asia and the relatively flat markets in North America”, commented Dick Warzala, President and CEO of Allied Motion."

We will look to revisit the story once the mitigating issues are no longer a factor, which could be at any time.

• Peak performance: Reached a high of  $8.80 on 02/01/2011 for a maiximum potential return of 14%
• Current Price: $6.18

Second Quarter 2012 Results

• Revenues for the quarter decreased 7% to $26,836,000 compared to $28,862,000 last year, with 63% of the decrease due to the dollar strengthening against the Euro and Swedish Krona and 37% due to lower volume.
• The Company achieved net income of $1,817,000 or $.21 per diluted share compared to net income of $1,481,000 or $.17 per diluted share for the quarter ended June 30, 2011.

“Looking out at the remainder of the year, we don’t expect market conditions to change significantly from the current uncertain economic conditions in Europe, the slowdown in Asia and the relatively flat markets in North America”, commented Dick Warzala, President and CEO of Allied Motion. “Barring a complete collapse in all markets, we believe our geographic and market diversification will serve us well now and in the future during these continuing uncertain economic times. While macro-economic conditions are beyond our control, we will aggressively continue our platform product development efforts to emphasize value-added solutions and create new opportunities for our Company by designing innovative “Motion Solutions That Change the Game” and meet the current and emerging needs of customers in our served market segments.”

First Quarter 2012 Results

• Revenues for the quarter increased slightly to $26,847,000 compared to $26,724,000 last year.
• Net income of $1,158,000 or $.14 per diluted share compared to net income of $1,213,000 or $.14 per diluted share for the quarter ended March 31, 2011
• Included in the first quarter results for 2012 was a pretax charge of $238,000 ($178,000 after tax) to cover the expected costs of replacing certain products in the field due to an incorrect electronic component in a printed circuit board supplied by one of the Company’s sub-contract suppliers. Excluding this charge, net income for the first quarter would have been $1,336,000 or $.16 per diluted share, an increase in net income of $123,000 or 10% over the first quarter 2011, and an increase of $0.02 in earnings per share over the first quarter of 2011.

“Sales in the first quarter of 2012 were flat compared to the first quarter of 2011 with a 9.4% increase in U.S. sales resulting from modest growth and new business developed in 2011 in our medical, vehicle and electronics markets and a decrease in our industrial and aerospace & defense markets. The increase in the U.S. was offset by an 8.4% decrease in European sales with all of our served markets either down or flat, except for medical, which was up slightly,” commented Dick Warzala, President and CEO of Allied Motion. “As previously noted, profits were impacted by the cost to rectify a component error in an electronic circuit and all costs relating to such were fully recorded in the quarter. It’s important to note, our platform product development efforts continually create new opportunities for our company by designing innovative “Motion Solutions That Change the Game” and meet the current and emerging needs of our customers in our served market segments.”

Current GeoSpecial

GeoTeam® Note: 2011 vs. 2010 Adjusted EPS

• Full Year: 0.68 vs. 0.45
• Fourth Quarter: 0.19 vs. 0.12

“Reviewing 2011, we can clearly say that it was a success with record shipments, record incoming orders, record profits and record cash flow. We rewarded our shareholders by creating a cash dividend program and we received very positive feedback from many of our shareholders during the year. Beyond the numbers, our acquisitions integrated well and they provide us with several new opportunities for continued growth in the future. Speaking of opportunities, we carefully manage and track our new opportunity pipeline and it grew steadily throughout the year with many of the opportunities requiring multiple products produced by our company,” commented Dick Warzala, President and CEO of Allied Motion. “In December 2011, we brought our global team together and focused on a 'One Company – One Team' approach to update and create the Strategic Plan for the next 3-5 years. Reviewing the aggressive Goals and Objectives established by our team, it clearly indicates that our team is ready and willing to take Allied Motion to higher levels in the future. Our strong financial condition when combined with Allied Systematic Tools (AST) to continuously improve Quality, Delivery, Cost and focus on the creation of Innovative 'Motion Solutions That Change the Game' and create value for our customers, allows us to have a positive outlook for the continued long term growth of our company.”

Current GeoSpecial

2011 Year end conference call notes:

• Ended 2011 with a record backlog of $44 million, up 16% from the end of 2010 and 6% from the end of the 2011 third quarter.
• 2011 Revenue growth from Europe was minimal, mediocre in the U.S. and high in Asia.
• Most of 2011 revenue growth came from volume increases.
• 2011 Operating cash flow, net of debt,  increased to $9 million from $2.8 million in 2010.
• Maintained its competitive advantage by pre-planning industry needs, enabling the company to quickly bid on new customer orders.
• Growth from outside the U.S. is being fueled by two acquisitions consummated in 2010, while growth from inside the U.S. is arising from existing customers.
• Medical, vehicle, industrial and electronics segments showed strong growth. Aerospace and defense segments were weak.
• Operating cash flow will fund growth and dividend program.
• Some long-term (3 to 5 years) goals involve achieving: 
  • Revenues of $250 million.  Half of this growth is expected to come from organic growth with the remaining growth resulting from acquisitions.
  • Operating margins of 15% (Non-gaap fourth quarter 2011 operating margins were8.2%)
  • 25% of sales from Asia

DENVER--(BUSINESS WIRE)--Allied Motion Technologies Inc. (NASDAQ: AMOT) today announced that the Board of Directors declared a quarterly cash dividend payment of $.025 per share payable on March 12, 2012 to shareholders of record on March 2, 2012. The dividend amount of $.025 per share represents an increase from $.02 per share that was previously being paid.

“The dividend, when annualized, represents approximately 14.7% of net income before non-recurring items achieved for the last twelve months,” commented Dick Warzala, President and CEO of Allied Motion. “The payment of a cash dividend is in keeping with management’s commitment to increase shareholder value and the 25% increase in the dividend rate demonstrates our confidence in the future of the company. As stated previously, the dividend does not affect our growth strategy as we fully intend to invest in the Company both organically and through acquisitions in the future.”

Headquartered in Denver, Colorado, Allied Motion designs, manufactures and sells motion control products into applications that serve many industry sectors. Allied Motion is a leading supplier of precision and specialty motion control components and systems to a broad spectrum of customers throughout the world.

Third Quarter 2011 Results

• Revenues for the quarter increased 24% to $27,331,000 compared to $22,031,000 last year.
• Net income of $1,557,000 or $.18 per diluted share compared to net income of $1,129,000 or $.14 per diluted share for the quarter ended September 30, 2010.

Bookings for the quarter ended September 30, 2011 were a record $34,389,000 compared to $19,236,000 for the same quarter last year with $3,887,000 of the $15,153,000 increase coming from the acquired company. Backlog at September 30, 2011 was a record $41,489,000 compared to $35,726,000 and $37,856,000 for the quarter ended September 30, 2010 and year ended December 31, 2010, respectively.

“The record profits, orders and backlog achieved during the quarter demonstrates the continued progress we are making as a company and our ability to generate growth both organically and through acquisitions” commented Dick Warzala, President and CEO of Allied Motion. “The record level of bookings in the quarter reverses the decline we had experienced in the first half of 2011 and provides positive backlog growth for the year. The organic growth of 14% YTD provides a good indication that our internal growth strategies are on-track and are supported by a strong backlog of new applications and customer projects. Our acquisitions are assimilating well and have provided an expanded electronic motion control capability that allows us to increase the value of our sales through the solution selling activities of our sales force. As usual, Allied Systematic Tools (AST) will continuously be utilized throughout our company to improve Quality, Delivery and Cost and provide a focus on designing Innovative “Motion Solutions That Change the Game” and meet the needs of our served markets and customers. Looking forward, we have a positive outlook for the continued long term growth of our company.” ember 30, 2010 and year ended December 31, 2010, respectively.

DENVER--(BUSINESS WIRE)--Allied Motion Technologies Inc. (NASDAQ: AMOT) today announced it achieved record sales and profit for the second quarter ended June 30, 2011 with net income of $1,481,000 or $.17 per diluted share compared to net income of $739,000 or $.09 per diluted share for the quarter ended June 30, 2010. Revenues for the quarter increased 44% to $28,862,000 compared to $19,998,000 last year. Of this 44% increase, revenues from existing businesses increased 15% and incremental revenues achieved by companies acquired in 2010 contributed 29% of the increase. This quarter’s results include the results from Agile Systems Inc., a subsidiary that was acquired on June 3, 2010 and continues to operate as Allied Motion Canada and Ostergrens Elmotor AB, a Swedish company acquired on December 30, 2010. EBITDA increased 78% to $2,751,000 for the current quarter compared to $1,543,000 last year. Bookings for the quarter ended June 30, 2011 were $25,601,000 compared to $27,690,000 for the same quarter last year. Backlog at June 30, 2011 was $35,678,000 compared to $36,754,000 and 37,856,000 for the quarter ended June 30, 2010 and year ended December 31, 2010, respectively.

DENVER---Allied Motion Technologies Inc. (NASDAQ: AMOT) today announced it achieved record sales and profit for the first quarter ended March 31, 2011 with

• net income of $1,213,000 or $.14 per diluted share compared to net income of $734,000 or $.09 per diluted share for the quarter ended March 31, 2010.
• Revenues for the quarter increased 53% to $26,724,000 compared to $17,422,000 last year. Of this 53% increase, revenues from existing businesses increased 22% and incremental revenues achieved by the companies acquired in 2010 contributed 31% of the increase. This quarter’s results include the results from Agile Systems Inc., a subsidiary that was acquired on June 3, 2010 and continues to operate as Allied Motion Canada and Ostergrens Elmotor AB, a Swedish company acquired on December 30, 2010.
• Bookings for the quarter ended March 31, 2011 were $26,374,000 compared to $26,229,000 for the same quarter last year.
• Backlog at March 31, 2011 was $38,704,000, reflecting a 33% increase from March 31, 2010 and a 2% increase over backlog at the end of 2010.

Included in the first quarter results for 2010 was a pretax gain of $685,000 ($436,000 after tax) for the final business interruption insurance settlement for the October 2008 fire at Allied’s former encoder operation in Chatsworth, California and non-recurring expenses of $230,000 ($140,000 after tax) that were incurred to integrate the encoder operation into Allied’s Emoteq operation in Tulsa, Oklahoma. Excluding the insurance settlement gain and the nonrecurring costs, the net pretax profit for the first quarter of 2010 would have been $609,000 and the net income would have been $438,000, or $.06 per diluted share, as compared to the current quarter’s pretax profit of $1,784,000 and net income of $1,213,000, or $.14 per diluted share.

"The record sales and profit achieved during the first quarter of 2011 are a result of our actions taken during 2010 to streamline our operations and to generate growth organically and through acquisitions. While our latest acquisition, Ostergrens, supplemented our top line, the majority of the earnings increase was realized through profit improvements in our existing operations," commented Dick Warzala, President and CEO of Allied Motion. "With the top line growth provided by our acquisitions, our team looks forward to increasing internal profits through the continuous implementation of Allied Systematic Tools (AST) to improve efficiencies and productivity and eliminate waste throughout our company. Our acquisitions also provide us with expanded electronic motion control products and development capabilities and we are hard at work to ensure the smooth assimilation of these capabilities to increase the value of our sales through the solution selling activities of our sales force. By designing innovative 'Motion Solutions That Change the Game' to meet the needs of our served markets and customers and our ever increasing pipeline of new projects, we continue to have a positive outlook for our continued growth in the future.

DENVER--(BUSINESS WIRE)--Allied Motion Technologies Inc. today announced it achieved:

For the year:  

• Record net income for the year ended December 31, 2010 of $3,585,000 or $.45 per diluted share compared to a net loss of $12,449,000 or $1.65 per diluted share for 2009.
• Revenues for this year were $80,591,000 compared to $61,240,000 for last year, or a 31.6% increase.

For the quarter ended December 31, 2010:

• Net income increased to $983,000 or $.12 per diluted share compared to net income of $117,000 or $.02 per diluted share for the quarter ended December 31, 2009.
• Revenues for the quarter increased 24% to $21,140,000 compared to $17,025,000 last year.

"The record profits and orders achieved for the year 2010 and the continued solid performance in the fourth quarter is a direct result of an improving economy and the restructuring and process improvements we made during the year" commented Dick Warzala, President and CEO of Allied Motion. "The financial results speak for themselves and looking beyond the numbers, we made significant progress in other areas of the business including the consolidation of our Encoder operation into Tulsa and the acquisitions of Agile and Ostergrens. We will continue to work on internal profit improvement through the continuous implementation of Allied Systematic Tools (AST) by improving efficiencies and productivity and eliminating waste throughout the company. Our acquisitions provide us with an expanded electronic motion control development and integration capability and the Ostergrens’ China facility provides us with a base for our own operations in the Asian market. Our Backlog is at an all-time high and our new project activity reflects many new high value-added applications that utilize our expanding motion solutions capabilities. The capabilities provided by our two acquisitions, combined with our internal product developments in 2010, allows Allied Motion to take the next step forward in Raising the Bar by providing Motion Solutions That Change the Game for our served markets and customers in 2011. Our strong balance sheet and cash flow also provides us with the opportunity to fund our growth prospects which bodes well for the Company in the future."