Altra Industrial Movement (AIMC) Tops This fall EPS by 7c, Revenues Beat; Affords FY21 EPS Steerage Beneath Consensus, FY21 Income Mid-Level Beneath Consensus


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Altra Industrial Movement (NASDAQ: AIMC) reported This fall EPS of $0.76, $0.07 higher than the analyst estimate of $0.69. Income for the quarter got here in at $453.2 million versus the consensus estimate of $431.76 million.

Monetary Highlights

  • Fourth-quarter 2020 web gross sales had been $453.2 million, up 2.6% from the $441.9 million within the fourth quarter of 2019. Fiscal yr 2020 web gross sales had been $1.726 billion, barely above the excessive finish of the Firm’s beforehand offered steering vary. Fourth-quarter 2020 natural gross sales had been up 30 foundation factors for the mixed enterprise in contrast with the fourth quarter of 2019.
  • Fourth-quarter 2020 Energy Transmission Applied sciences (“PTT”) section gross sales had been down 5.1% and Automation & Specialty (“A&S”) section gross sales had been up 10.2%. Excluding the influence of international foreign money translation, PTT section gross sales had been down 7.6% and A&S section gross sales had been up 8.2% in contrast with the prior yr.*
  • Fourth-quarter web revenue was $31.2 million, or $0.48 per diluted share, in contrast with $37.3 million, or $0.58 per diluted share, within the fourth quarter of 2019. Non-GAAP web revenue within the fourth quarter of 2020 was $49.6 million, or $0.76 per diluted share. That is in contrast with non-GAAP web revenue of $42.7 million, or $0.66 per diluted share, within the fourth quarter of 2019.*
  • Fiscal yr 2020 web revenue was a lack of $25.5 million, or a lack of $0.39 per share and non-GAAP web revenue was $186.9 million, or $2.88 per diluted share, our greatest efficiency ever.*
  • Non-GAAP adjusted EBITDA within the fourth quarter of 2020 was $96.1 million, or 21.2% of web gross sales, in contrast with $89.4 million, or 20.2% of web gross sales, within the fourth quarter of 2019.*
  • Working revenue margin within the fourth quarter of 2020 was 12.8% in contrast with 11.8% within the fourth quarter of 2019. Non-GAAP working revenue margin within the fourth quarter of 2020 was 17.2%, in contrast with 16.4% within the fourth quarter of 2019.*
  • Money stream from operations for the yr ended December 31, 2020 was $262.5 million, in contrast with money stream from operations of $255.9 million for the prior yr finish. Non-GAAP Free Money Movement for the yr ended December 31, 2020 was $228.8 million, in contrast with Non-GAAP Free Money Movement of $204.2 million for the prior yr finish. Non-GAAP Adjusted Free Money Movement, which excludes the influence of the rate of interest swap termination cost, was $263.5 million and $204.2 million for the years ended December 31, 2020 and 2019, respectively.*
  • Paid down $70.0 million on the Firm’s excellent time period mortgage within the fourth quarter of 2020, bringing whole debt pay right down to $160 million in 2020 and $310 million because the closing of the A&S merger on October 1, 2018. On the finish of the fourth quarter, Altra’s money stability and availability below the revolving credit score facility had been $254.4 million and $295.5 million, respectively.

“We ended the yr with an distinctive fourth quarter marked by cautious price administration, sturdy money stream era and vital progress de-levering the stability sheet,” stated Carl Christenson, Altra’s Chairman and Chief Government Officer. “By leveraging our market place, diversified portfolio and demand enhancements in a number of markets – together with wind and sophistication 8 vans in China – we exceeded our income expectations for the quarter. Moreover, by means of our give attention to price containment and by leveraging Altra’s world-class enterprise system, we grew margins and delivered wonderful working capital efficiency within the quarter.

“On a full-year foundation, the broad variety of our finish markets and our skill to behave nimbly to regulate prices by means of the pandemic allowed us to ship excellent efficiency. We generated $263.5 million in Non-GAAP Adjusted free money stream which allowed us to pay down $160 million of debt in 2020 and exit the yr with Internet Debt to Non-GAAP Adjusted EBITDA leverage under 3.2x – far exceeding our expectations and advancing us towards our historic ranges of two.0x to three.0x.*

“What was abundantly clear by means of the occasions of 2020 is that our persons are our biggest asset. I’m extremely pleased with the resilience and agility demonstrated by the Altra workforce as they targeted on sustaining protected working environments by means of a worldwide pandemic whereas additionally serving our clients with our modern options and delivering these distinctive monetary outcomes,” Christenson continued.

“As we glance to the yr forward, our strategic priorities proceed to be managing prices, driving margin enhancement, de-levering our stability sheet and positioning Altra to develop and thrive as a premier industrial firm for the long run.”

GUIDANCE:

Altra Industrial Movement sees FY2021 EPS of $2.95-$3.13, versus the consensus of $3.20. Altra Industrial Movement sees FY2021 income of $1.79-1.83 million, versus the consensus of $1.82 million.

“We’re taking a cautious strategy to our preliminary outlook for 2021 because of the ongoing uncertainty associated to the length of the COVID-19 pandemic and timing of a broad financial restoration,” continued Christenson. “We’re hopeful that market situations enhance earlier than our steering at present assumes and can revisit our outlook appropriately as we acquire higher visibility. We stay assured that we’ve the best expertise, monetary self-discipline and market energy to proceed to navigate the present atmosphere whereas advancing our strategic priorities to solidify Altra as a world-class premier industrial firm.”

The next steering displays administration’s finest estimate and sensible evaluation of the monetary influence of COVID-19 to the Firm’s enterprise, right now. This steering assumes the final industrial economic system won’t start a full restoration till late in 2021. As well as, the steering assumes that roughly $40 million of price financial savings realized in 2020 will section again in all through 2021, with the total impact of the prices coming again by the second half of the yr.

Altra is offering steering for full yr 2021 as follows:

  • Full-year 2021 gross sales within the vary of $1,790 million to $1,830 million
  • GAAP diluted EPS within the vary of $1.97 to $2.10
  • Non-GAAP diluted EPS within the vary of $2.95 to $3.15*
  • Non-GAAP adjusted EBITDA within the vary of $370.0 million to $385.0 million*
  • Tax price for the total yr of roughly 20% to 23% earlier than discrete gadgets
  • Capital expenditures within the vary of $45 million to $50 million
  • Depreciation and amortization within the vary of $120 million to $125 million
  • Non-GAAP Adjusted Free money stream within the vary of $185 million to $210 million*

For earnings historical past and earnings-related information on Altra Industrial Movement (AIMC) click on right here.

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