Allied Motion Technologies Inc (AMOT) has reported a 41.09 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $2.52 million, or $0.27 a share in the quarter, compared with $4.28 million, or $0.46 a share for the same period last year. Revenue during the quarter went down marginally by 0.80 percent to $61.04 million from $61.53 million in the previous year period. Gross margin for the quarter contracted 193 basis points over the previous year period to 28.84 percent. Total expenses were 91.77 percent of quarterly revenues, up from 88.57 percent for the same period last year. That has resulted in a contraction of 319 basis points in operating margin to 8.23 percent.
Operating income for the quarter was $5.02 million, compared with $7.03 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $8.08 million compared with $9.44 million in the prior year period. At the same time, adjusted EBITDA margin contracted 211 basis points in the quarter to 13.23 percent from 15.35 percent in the last year period.
“We have gained a larger market position in our Aerospace and Defense and Medical markets because of the addition of Heidrive to our company portfolio,” commented Dick Warzala, chairman and chief executive officer of Allied Motion. “While several applications within our Vehicle market were relatively stable sequentially, specific applications in that market are challenged and we are expecting that to persist in the near future. We are addressing the effects of our customer concentration and end of life product cycles by taking a long term strategic view as we review and adjust our operations and cost structure accordingly.”
Operating cash flow drops significantly
Allied Motion Technologies Inc has generated cash of $9.96 million from operating activities during the nine month period, down 27.41 percent or $3.76 million, when compared with the last year period. The company has spent $19.74 million cash to meet investing activities during the nine month period as against cash outgo of $3.69 million in the last year period.
Cash flow from financing activities was $0.74 million for the nine month period as against cash outgo of $4.54 million in the last year period.
Cash and cash equivalents stood at $12.54 million as on Sep. 30, 2016, down 29.92 percent or $5.35 million from $17.90 million on Sep. 30, 2015.
Working capital drops significantly
Allied Motion Technologies Inc has witnessed a decline in the working capital over the last year. It stood at $29.08 million as at Sep. 30, 2016, down 30.86 percent or $12.98 million from $42.05 million on Sep. 30, 2015. Current ratio was at 1.64 as on Sep. 30, 2016, down from 2.14 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 46 days for the quarter from 68 days for the last year period. Days sales outstanding went down to 46 days for the quarter compared with 48 days for the same period last year.
Days inventory outstanding has decreased to 32 days for the quarter compared with 55 days for the previous year period. At the same time, days payable outstanding went down to 33 days for the quarter from 35 for the same period last year.
Debt comes down marginally
Allied Motion Technologies Inc has recorded a decline in total debt over the last one year. It stood at $69.16 million as on Sep. 30, 2016, down 2.19 percent or $1.55 million from $70.71 million on Sep. 30, 2015. Total debt was 38.01 percent of total assets as on Sep. 30, 2016, compared with 41.83 percent on Sep. 30, 2015. Debt to equity ratio was at 0.93 as on Sep. 30, 2016, down from 1.11 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 3.34 for the quarter from 4.67 for the same period last year.
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