AMHERST, N.Y.--(BUSINESS WIRE)--Allied Motion Technologies Inc. (Nasdaq: AMOT) (“Allied Motion” or “Company”), a designer and manufacturer of precision and specialty controlled motion products and solutions for the global market, today reported financial results for its third quarter ended September 30, 2022. Results include all acquisitions completed during the fourth quarter of 2021 and in the second quarter of 2022.
“Results in the quarter demonstrated the power of our strategy combined with strong execution to drive both organic and inorganic growth, as we leveraged our diversified end market mix, and further developed our One Allied global platform to drive record sales. Equally important, was the strengthening of our margin profile, which delivered record operating income despite ongoing macroeconomic headwinds,” commented Dick Warzala, Chairman and CEO. “We continue to be highly confident in our ability to navigate today’s unique challenges and expect to see further benefits as we further leverage the full potential of our recent acquisitions and create a stronger long term competitive position across our targeted markets.”
Third Quarter 2022 Results (Narrative compares with prior-year period unless otherwise noted)
Revenue increased 30% to a record $134.4 million and reflected higher demand across each of the Company’s target markets, as well as incremental sales from acquisitions. Excluding the unfavorable impact of foreign currency exchange rate fluctuations on revenue of $7.2 million, revenue was up 37%, including organic growth of 15%. Sales to U.S. customers were 59% of total sales compared with 56% in the same period last year, with the balance of sales to customers primarily in Europe, Canada and Asia-Pacific. See the attached table for a description of non-GAAP financial measures and reconciliation of revenue excluding foreign currency exchange rate fluctuations.
Aerospace & Defense revenue grew 159% due to incremental demand from acquisitions, defense program timing and solid organic growth. Revenue from Industrial markets was up 39% in the quarter, benefitting from new solutions offerings, acquisitions and strong end market demand within industrial automation, pumps, and oil & gas. Revenue in the Vehicle and Medical markets each grew 4%. Vehicle market sales growth reflected higher demand from commercial automotive and trucks, while Medical markets have now largely lapped pandemic related sales and are benefiting from a return of elective surgeries and recent acquisitions. The Distribution market, while a small component of total revenue, increased 25% during the quarter.
Gross margin was 32.2%, up 130 basis points from the third quarter of 2021 as higher volume, pricing and margin accretive acquisitions more than offset continued global supply chain disruptions, and rising material and labor costs.
Operating costs and expenses were 23.5% of revenue, up 90 basis points, which reflected an increase in engineering and development costs of approximately 70 basis points, and amortization expense of 80 basis points, largely due to the recent M&A activity. Partially offsetting were lower selling, general and administrative expenses as a percent of revenue due to operating leverage. As a result, operating income was a record $11.7 million compared with $8.7 million, and as a percent of revenue was 8.7%, up 30 basis points.
Net income was $6.6 million, or $0.41 per diluted share, compared to $6.0 million, or $0.41 per share, in the prior-year period. Adjusted net income, which excludes amortization of intangible assets related to acquisitions, business development costs and other non-recurring items, was $9.7 million, or $0.60 per diluted share, compared with adjusted net income of $7.1 million, or $0.49 per diluted share, in the comparable period of 2021. The effective tax rate was 27.5% compared with 24.6%, as the prior-year period included a discrete benefit for an investment tax credit. The Company expects its income tax rate for full year 2022 to be approximately 25% to 27%, based on changes to geographic mix. See the attached tables for a description of non-GAAP financial measures and reconciliation table for Adjusted Net Income and Diluted Earnings per Share.
Earnings before interest, taxes, depreciation, amortization, stock-based compensation expense, business development costs, and foreign currency gains/losses (“Adjusted EBITDA”) was $19.9 million, up $5.4 million, or 37% from the year ago period. As a percent of sales, Adjusted EBITDA was 14.8%, up 80 basis points from the third quarter of 2021. The Company believes that, when used in conjunction with measures prepared in accordance with U.S. generally accepted accounting principles, Adjusted EBITDA, which is a non-GAAP measure, helps in the understanding of its operating performance. See the attached table for a description of non-GAAP financial measures and reconciliation table for Adjusted EBITDA.
Year-to-Date (YTD) 2022 Results (Narrative compares with prior-year period unless otherwise noted)
Revenue of $371.9 million increased $65.2 million, or 21%, reflecting strong demand in Industrial and Aerospace & Defense markets, including incremental sales from acquisitions. The impact of FX fluctuations was unfavorable $15.6 million for the year-to-date period. Sales to U.S. customers were 58% of total sales compared with 54% for the same period last year, with the balance of sales to customers primarily in Europe, Canada and Asia-Pacific.
Gross margin was 31.3%, up 90 basis points, and reflected similar impacts as the third quarter of 2022. Operating costs and expenses as a percent of revenue were 25.0%, up 180 basis points, due to similar impacts as the third quarter as well as higher business development costs in support of recent M&A activity. As a result, operating income was $23.5 million, or 6.3% of sales, compared with $22.0 million, or 7.2% of sales.
Net income was $13.7 million, or $0.86 per diluted share, compared with $22.5 million, or $1.56 per diluted share. The change largely reflects a net discrete tax benefit of $7.4 million recorded in the first quarter of 2021 relating to legislation enacted in New Zealand. Excluding the discrete tax benefit, amortization of intangible assets and other non-recurring items, adjusted net income was $23.0 million, or $1.45 per diluted share, compared with $18.8 million, or $1.30 per diluted share, in the comparable period of 2021. Adjusted EBITDA increased 26% to $49.0 million, and as a percent of sales was 13.2%, up 50 basis points.
Balance Sheet and Cash Flow Review
Cash and cash equivalents were $19.7 million compared with $22.5 million at year-end 2021. Higher levels of inventory and working capital timing resulted in $5.8 million of cash used in operating activities during the year-to-date period. Capital expenditures were $11.0 million for the year-to-date period and were largely focused on new customer projects. The Company expects 2022 capital expenditures to be approximately $14 million to $18 million.
Total debt was $231.9 million at quarter-end compared with $159.0 million at year-end 2021. The change largely reflected the funding used for the three acquisitions completed during the second quarter of 2022 and a new finance lease during the first quarter of 2022 for a manufacturing facility expansion. Debt, net of cash, was $212.2 million, or 51.3% of net debt to capitalization.
Orders and Backlog Summary ($ in thousands)
Q3 2022 |
Q2 2022 |
Q1 2022 |
Q4 2021 |
Q3 2021 |
||||||||
Orders |
$ |
126,158 |
$ |
139,209 |
$ |
155,295 |
$ |
114,891 |
$ |
119,940 |
||
Backlog |
$ |
310,186 |
$ |
323,873 |
$ |
289,295 |
$ |
249,927 |
$ |
185,561 |
||
Third quarter orders increased 5% year-over-year and represented a book-to-bill ratio of 0.94x. Foreign currency translation had an unfavorable $7.3 million impact on third quarter orders compared with the prior-year period.
Backlog was up 67% over the prior-year period, although was down 4% from the sequential second quarter given the loosening of some supply chain constraints. The time to convert the majority of backlog to sales is approximately three to nine months.
Conference Call and Webcast
The Company will host a conference call and webcast on Thursday, November 3, 2022 at 10:00 am ET.
During the conference call, management will review the financial and operating results and discuss Allied Motion’s corporate strategy and outlook. A question and answer session will follow.
To listen to the live call, dial (412) 317-6026. In addition, the webcast and slide presentation may be found at: www.alliedmotion.com/investor-relations.
A telephonic replay will be available from 1:00 pm ET on the day of the call through Thursday, November 10, 2022.
To listen to the archived call, dial (412) 317-6671 and enter replay pin number 10171521 or access the webcast replay via the Company’s website. A transcript will also be posted to the website once available.
About Allied Motion Technologies Inc.
Allied Motion (Nasdaq: AMOT) designs, manufactures and sells precision controlled motion products and solutions used in a broad range of applications within the Vehicle, Medical, Aerospace & Defense, Electronic, and Industrial Markets. Headquartered in Amherst, NY, the Company has global operations and sells into markets across the United States, Canada, South America, Europe and Asia-Pacific.
Allied Motion is focused on controlled motion applications and is known worldwide for its expertise in electro-magnetic, mechanical, and electronic controlled motion technologies. Its products include nano precision positioning systems, servo control systems, motion controllers, digital servo amplifiers and drives, brushless servo, torque, and coreless motors, brush motors, integrated motor-drives, gear motors, gearing, incremental and absolute optical encoders, active (electronic) and passive (magnetic) filters for power quality and harmonic issues, lightweighting technologies, Industrial safety rated I/O Modules, Universal Industrial Communications Gateways and other controlled motion-related products.
The Company’s growth strategy is focused on being the controlled motion solutions leader in its selected target markets by leveraging its “technology/know how” to develop integrated precision solutions that utilize multiple Allied Motion technologies to “change the game” and create higher value solutions for its customers. The Company routinely posts news and other important information on its website at www.alliedmotion.com.
Safe Harbor Statement
The statements in this news release and in the Company’s November 3, 2022 conference call that relate to future plans, events or performance are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements. Examples of forward-looking statements include, among others, statements the Company makes regarding expected operating results, anticipated levels of capital expenditures, the Company’s belief that it has sufficient liquidity to fund its business operations, and expectations with respect to the conversion of backlog to sales. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company’s current beliefs, expectations and assumptions regarding the future of the Company’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company’s control. The Company’s actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, general economic and business conditions, conditions affecting the industries served by the Company and its subsidiaries, conditions affecting the Company's customers and suppliers, competitor responses to the Company's products and services, the overall market acceptance of such products and services, the pace of bookings relative to shipments, the ability to expand into new markets and geographic regions, the success in acquiring new business, the impact of changes in income tax rates or policies, the severity, magnitude and duration of the COVID-19 pandemic, including impacts of the pandemic and of businesses’ and governments’ responses to the pandemic on our operations and personnel, and on commercial activity and demand across our and our customers’ businesses, and on global supply chains; our inability to predict the extent to which the COVID-19 pandemic and related impacts will continue to adversely impact our business operations, financial performance, results of operations, financial position, the prices of our securities and the achievement of our strategic objectives, the ability to attract and retain qualified personnel, the ability to successfully integrate an acquired business into our business model without substantial costs, delays, or problems, and other factors disclosed in the Company's periodic reports filed with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict the occurrence of those matters or the manner in which they may affect us. The Company has no obligation or intent to release publicly any revisions to any forward looking statements, whether as a result of new information, future events, or otherwise.
FINANCIAL TABLES FOLLOW
ALLIED MOTION TECHNOLOGIES INC. |
||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||
(In thousands, except per share data) |
||||||||||||
(Unaudited) |
||||||||||||
For the three months ended |
|
For the nine months ended |
||||||||||
September 30, |
|
September 30, |
||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||
Revenue |
$ |
134,405 |
$ |
103,509 |
$ |
371,912 |
$ |
306,723 |
||||
Cost of goods sold |
|
91,108 |
|
71,488 |
|
255,381 |
|
213,417 |
||||
Gross profit |
|
43,297 |
|
32,021 |
|
116,531 |
|
93,306 |
||||
Operating costs and expenses: |
||||||||||||
Selling |
|
5,497 |
|
4,365 |
|
16,336 |
|
12,979 |
||||
General and administrative |
|
13,148 |
|
10,620 |
|
37,239 |
|
32,549 |
||||
Engineering and development |
|
9,702 |
|
6,768 |
|
28,879 |
|
20,967 |
||||
Business development |
|
199 |
|
94 |
|
2,464 |
|
268 |
||||
Amortization of intangible assets |
|
3,054 |
|
1,504 |
|
8,133 |
|
4,527 |
||||
Total operating costs and expenses |
|
31,600 |
|
23,351 |
|
93,051 |
|
71,290 |
||||
Operating income |
|
11,697 |
|
8,670 |
|
23,480 |
|
22,016 |
||||
Other expense, net: |
||||||||||||
Interest expense |
|
2,337 |
|
777 |
|
4,900 |
|
2,445 |
||||
Other expense (income), net |
|
243 |
|
(29) |
|
9 |
|
(158) |
||||
Total other expense, net |
|
2,580 |
|
748 |
|
4,909 |
|
2,287 |
||||
Income before income taxes |
|
9,117 |
|
7,922 |
|
18,571 |
|
19,729 |
||||
Income tax (provision) benefit |
|
(2,508) |
|
(1,950) |
|
(4,878) |
|
2,804 |
||||
Net income |
$ |
6,609 |
$ |
5,972 |
$ |
13,693 |
$ |
22,533 |
||||
Basic earnings per share: |
||||||||||||
Earnings per share |
$ |
0.42 |
$ |
0.41 |
$ |
0.89 |
$ |
1.57 |
||||
Basic weighted average common shares |
|
15,661 |
|
14,411 |
|
15,373 |
|
14,375 |
||||
Diluted earnings per share: |
||||||||||||
Earnings per share |
$ |
0.41 |
$ |
0.41 |
$ |
0.86 |
$ |
1.56 |
||||
Diluted weighted average common shares |
|
16,169 |
|
14,502 |
|
15,929 |
|
14,478 |
||||
ALLIED MOTION TECHNOLOGIES INC. |
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
(In thousands, except per share data) |
||||||
(Unaudited) |
||||||
September 30, |
|
December 31, |
||||
|
2022 |
|
2021 |
|||
Assets |
|
|
|
|
|
|
Current assets: |
||||||
Cash and cash equivalents |
$ |
19,705 |
$ |
22,463 |
||
Trade receivables, net of provision for credit losses of $790 and $506 at September 30, 2022 and December 31, 2021, respectively |
79,894 |
51,239 |
||||
Inventories |
|
112,130 |
|
89,733 |
||
Prepaid expenses and other assets |
|
15,426 |
|
12,522 |
||
Total current assets |
|
227,155 |
|
175,957 |
||
Property, plant and equipment, net |
|
65,617 |
|
56,983 |
||
Deferred income taxes |
|
3,460 |
|
5,321 |
||
Intangible assets, net |
|
120,773 |
|
103,786 |
||
Goodwill |
|
122,404 |
|
106,633 |
||
Operating lease assets |
21,623 |
16,983 |
||||
Other long-term assets |
|
11,488 |
|
5,122 |
||
Total Assets |
$ |
572,520 |
$ |
470,785 |
||
Liabilities and Stockholders’ Equity |
||||||
Current liabilities: |
||||||
Accounts payable |
$ |
41,955 |
$ |
36,714 |
||
Accrued liabilities |
|
46,135 |
|
41,656 |
||
Total current liabilities |
|
88,090 |
|
78,370 |
||
Long-term debt |
|
231,647 |
|
158,960 |
||
Deferred income taxes |
|
8,910 |
|
5,040 |
||
Pension and post-retirement obligations |
|
3,523 |
|
3,932 |
||
Operating lease liabilities |
17,644 |
12,792 |
||||
Other long-term liabilities |
|
21,609 |
23,929 |
|||
Total liabilities |
|
371,423 |
|
283,023 |
||
Stockholders’ Equity: |
||||||
Common stock, no par value, authorized 50,000 shares; 15,982 and 15,361 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively |
|
82,830 |
|
68,097 |
||
Preferred stock, par value $1.00 per share, authorized 5,000 shares; no shares issued or outstanding |
|
— |
|
— |
||
Retained earnings |
|
140,277 |
|
127,757 |
||
Accumulated other comprehensive loss |
|
(22,010) |
|
(8,092) |
||
Total stockholders’ equity |
|
201,097 |
|
187,762 |
||
Total Liabilities and Stockholders’ Equity |
$ |
572,520 |
$ |
470,785 |
||
ALLIED MOTION TECHNOLOGIES INC. |
||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||
(In thousands) |
||||||
(Unaudited) |
||||||
For the nine months ended |
||||||
September 30, |
||||||
|
2022 |
|
2021 |
|||
Cash Flows From Operating Activities: |
||||||
Net income |
$ |
13,693 |
$ |
22,533 |
||
Adjustments to reconcile net income to net cash (used in) provided by operating activities |
||||||
Depreciation and amortization |
|
19,222 |
|
13,317 |
||
Deferred income taxes |
|
2,775 |
|
(7,440) |
||
Stock-based compensation expense |
3,752 |
3,100 |
||||
Debt issue cost amortization recorded in interest expense |
127 |
106 |
||||
Other |
|
785 |
|
1,235 |
||
Changes in operating assets and liabilities, net of acquisition: |
||||||
Trade receivables |
|
(27,560) |
|
(9,586) |
||
Inventories |
|
(25,782) |
|
(11,747) |
||
Prepaid expenses and other assets |
|
(3,133) |
|
(675) |
||
Accounts payable |
|
6,501 |
|
8,168 |
||
Accrued liabilities |
|
3,796 |
|
909 |
||
Net cash (used in) provided by operating activities |
|
(5,824) |
|
19,920 |
||
Cash Flows From Investing Activities: |
||||||
Consideration paid for acquisitions, net of cash acquired |
|
(44,596) |
|
— |
||
Purchase of property and equipment |
|
(11,026) |
|
(9,761) |
||
Net cash used in investing activities |
|
(55,622) |
|
(9,761) |
||
Cash Flows From Financing Activities: |
||||||
Proceeds from issuance of long-term debt |
|
69,952 |
|
819 |
||
Principal payments of long-term debt and finance lease obligations |
(6,514) |
(11,417) |
||||
Dividends paid to stockholders |
|
(1,147) |
|
(1,007) |
||
Tax withholdings related to net share settlements of restricted stock |
|
(1,334) |
|
(1,700) |
||
Net cash provided by (used in) financing activities |
|
60,957 |
|
(13,305) |
||
Effect of foreign exchange rate changes on cash |
|
(2,269) |
|
(776) |
||
Net decrease in cash and cash equivalents |
|
(2,758) |
|
(3,922) |
||
Cash and cash equivalents at beginning of period |
|
22,463 |
|
23,131 |
||
Cash and cash equivalents at end of period |
$ |
19,705 |
$ |
19,209 |
||
ALLIED MOTION TECHNOLOGIES INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands)
(Unaudited)
In addition to reporting revenue and net income, which are U.S. generally accepted accounting principle (“GAAP”) measures, the Company presents Revenue excluding foreign currency exchange rate impacts, and EBITDA and Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization, stock-based compensation expense, business development costs, and foreign currency gains/losses), which are non-GAAP measures.
The Company believes that Revenue excluding foreign currency exchange rate impacts is a useful measure in analyzing organic sales results. The Company excludes the effect of currency translation from revenue for this measure because currency translation is not under management’s control, is subject to volatility and can obscure underlying business trends. The portion of revenue attributable to currency translation is calculated as the difference between the current period revenue and the current period revenue after applying foreign exchange rates from the prior period.
The Company believes EBITDA and Adjusted EBITDA are often a useful measure of a Company’s operating performance and are a significant basis used by the Company’s management to evaluate and compare the core operating performance of its business from period to period by removing the impact of the capital structure (interest), tangible and intangible asset base (depreciation and amortization), taxes, stock-based compensation expense, business development costs, foreign currency gains/losses on short-term assets and liabilities, and other items that are not indicative of the Company’s core operating performance. EBITDA and Adjusted EBITDA do not represent and should not be considered as an alternative to net income, operating income, net cash provided by operating activities or any other measure for determining operating performance or liquidity that is calculated in accordance with GAAP.
The Company’s calculation of Revenue excluding foreign currency exchange impacts for the three and nine months ended September 30, 2022 is as follows:
Three Months Ended |
|
Nine Months Ended |
||||
September 30, 2022 |
|
September 30, 2022 |
||||
Revenue as reported |
$ |
134,405 |
|
$ |
371,912 |
|
Currency impact |
|
7,173 |
|
|
15,577 |
|
Revenue excluding foreign currency exchange impacts |
$ |
141,578 |
|
$ |
387,489 |
|
The Company’s calculation of Adjusted EBITDA for the three and nine months ended September 30, 2022 and 2021 is as follows:
Three Months Ended |
Nine Months Ended |
|
|||||||||||||
September 30, |
September 30, |
|
|||||||||||||
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
|
|||
Net income |
$ |
6,609 |
$ |
5,972 |
|
|
$ |
13,693 |
$ |
22,533 |
|
|
|||
Interest expense |
|
2,337 |
|
777 |
|
|
|
4,900 |
|
2,445 |
|
|
|||
Provision (benefit) for income tax |
|
2,508 |
|
1,950 |
|
|
|
4,878 |
|
(2,804 |
) |
|
|||
Depreciation and amortization |
|
6,692 |
|
4,427 |
|
|
|
19,222 |
|
13,317 |
|
|
|||
EBITDA |
|
18,146 |
|
13,126 |
|
|
|
42,693 |
|
35,491 |
|
|
|||
Stock compensation expense |
|
1,262 |
|
|
1,303 |
|
|
|
3,752 |
|
3,100 |
|
|
||
Foreign currency (gain) loss |
|
257 |
|
|
(69 |
) |
|
|
54 |
|
(42 |
) |
|
||
Business development costs |
|
199 |
|
|
94 |
|
|
|
2,464 |
|
268 |
|
|
||
Adjusted EBITDA |
$ |
19,864 |
$ |
14,454 |
|
|
$ |
48,963 |
$ |
38,817 |
|
|
|||
ALLIED MOTION TECHNOLOGIES INC.
Reconciliation of GAAP Net Income and Diluted Earnings per Share to
Non-GAAP Adjusted Net Income and Diluted Earnings per Share
(In thousands, except per share data)
(Unaudited)
The Company’s calculation of Adjusted net income and Adjusted diluted earnings per share for the three and nine months ended September 30, 2022 and 2021 is as follows:
Three Months Ended |
|||||||||||||
September 30, |
|||||||||||||
|
2022 |
Per diluted
|
|
|
2021 |
|
Per diluted
|
||||||
Net income as reported |
$ |
6,609 |
$ |
0.41 |
$ |
5,972 |
|
$ |
0.41 |
|
|||
Non-GAAP adjustments, net of tax |
|||||||||||||
Amortization of intangible assets - net |
|
|
2,725 |
|
0.17 |
|
|
1,152 |
|
|
0.08 |
|
|
Foreign currency gain/ loss - net |
|
|
197 |
|
0.01 |
|
|
(50 |
) |
|
(0.00 |
) |
|
Business development costs - net |
|
152 |
|
0.01 |
|
72 |
|
|
0.00 |
|
|||
Adjusted net income and diluted EPS |
$ |
9,683 |
$ |
0.60 |
$ |
7,146 |
|
$ |
0.49 |
|
|||
Weighted average diluted shares outstanding |
|
16,169 |
|
14,502 |
|
||||||||
Nine Months Ended |
|||||||||||||
September 30, |
|||||||||||||
|
2022 |
Per diluted
|
|
|
2021 |
|
Per diluted
|
||||||
Net income as reported |
$ |
13,693 |
$ |
0.86 |
$ |
22,533 |
|
$ |
1.56 |
|
|||
Non-GAAP adjustments, net of tax |
|||||||||||||
Discrete income tax benefit |
|
- |
|
- |
|
|
(7,373 |
) |
|
(0.51 |
) |
|
|
Amortization of intangible assets - net |
|
|
7,417 |
|
0.47 |
|
|
3,468 |
|
|
0.24 |
|
|
Foreign currency gain/ loss - net |
|
|
41 |
|
0.00 |
|
|
(30 |
) |
|
(0.00 |
) |
|
Business development costs - net |
|
1,887 |
|
0.12 |
|
205 |
|
|
0.01 |
|
|||
Adjusted net income and diluted EPS |
$ |
23,039 |
$ |
1.45 |
$ |
18,803 |
|
$ |
1.30 |
|
|||
Weighted average diluted shares outstanding |
|
15,929 |
|
14,478 |
|
||||||||
Adjusted net income and diluted EPS are defined as net income as reported, adjusted for certain items, including amortization of intangible assets and unusual non-recurring items. Adjusted net income and diluted EPS are not a measure determined in accordance with GAAP in the United States, and may not be comparable to the measure as used by other companies. Nevertheless, the Company believes that providing non-GAAP information, such as adjusted net income and diluted EPS are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current year’s net income and diluted EPS to the historical periods’ net income and diluted EPS.
