aimc-8k_20181025.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

October 25, 2018

Date of Report (Date of earliest event reported)

 

ALTRA INDUSTRIAL MOTION CORP.

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

001-33209

 

61-1478870

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

 

 

 

 

300 Granite Street, Suite 201

Braintree, Massachusetts

 

02184

(Address of principal executive offices)

 

(Zip Code)

(781) 917-0600

(Registrant’s telephone number, including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 

 

 


 

Item 2.02

Results of Operations and Financial Condition

On October 25, 2018, Altra Industrial Motion Corp. (“the Company”) announced certain unaudited financial results for the quarter ended September 30, 2018. A copy of the announcement is attached hereto as Exhibit 99.1, which is incorporated by reference herein. On October 25, 2018, the Company will hold a conference call with investors to discuss unaudited results for the quarter ended September 30, 2018. The chart presentation to be used during the call is attached hereto as Exhibit 99.2 to this report and is incorporated by reference herein.

Item 9.01

Financial Statements and Exhibits

(d) Exhibits

 

Exhibit No.

 

Description

 

 

 

99.1

  

Press release of Altra Industrial Motion Corp., dated October 25, 2018.

 

 

99.2

 

Charts to be used during the investor conference call, dated October 25, 2018.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

ALTRA INDUSTRIAL MOTION CORP.

 

/s/ Carl R. Christenson

Name:

  

Carl R. Christenson

Title:

 

Chairman and Chief Executive Officer

Date: October 25, 2018

 

 

 

aimc-ex991_6.htm

Exhibit 99.1

Altra Reports Third-Quarter 2018 Results

 

Delivers GAAP EPS of $0.42; Non-GAAP EPS was a Record Third Quarter of $0.64

 

Completes Transformative Combination with Four Businesses from Fortive’s Automation & Specialty Platform (“A&S”) Ahead of Plan; Concludes Favorable Round of Financing  

 

Updates Guidance to Reflect the Addition of A&S and the Transition to Adjusted EPS that Excludes Acquisition Related Amortization and Step-Up Depreciation Going Forward

 

BRAINTREE, Mass., October 25, 2018 - Altra Industrial Motion Corp. (Nasdaq: AIMC) (“Altra” or the “Company”), a leading global manufacturer and supplier of electromechanical power transmission and motion control products, today announced unaudited financial results for the third quarter ended September 30, 2018.

 

Financial Highlights

 

Third-quarter 2018 net sales were $228.5 million, up 6.5% from $214.6 million in the third quarter of 2017. Excluding the negative impact of foreign currency translation, net sales were up 3.9% in Europe, down 4.1% in Asia and up 13.4% in North America compared to the same quarter of 2017.

 

Third-quarter net income was $12.3 million, or $0.42 per diluted share, compared with $13.3 million, or $0.46 per diluted share, in the third quarter of 2017.

 

Non-GAAP adjusted net income in Q3 2018 was $18.7 million, or $0.64 per diluted share, compared with $13.8 million, or $0.48 per diluted share, a year ago.*  

 

Free cash flow year to date 2018 was $37.9 million, up 90% compared with $20.0 million in the third quarter of 2017.*

 

A&S Highlights

 

Completed the combination with A&S on October 1, 2018, creating a global leader in motion control and power transmission, with pro forma combined sales of $1.9 billion on an LTM basic for the period ending June 30, 2018.

 

Concluded transaction financing with favorable $400 million senior unsecured notes (5-year, 6.125% coupon) (the “Notes”), a $1,340 million senior secured term loan (7-year, LIBOR +200bps) and a $300 million senior secured revolving credit facility (5-year, LIBOR +200bps)


 

(together with the senior secured term loan, the “Altra Credit Facilities”). Expect weighted average interest expense to be approximately 4.5% - 5.0% based on the current debt balance and market conditions.

 

Integration of A&S and Altra advancing on track with successful completion of several key action items, including payroll and IT integration.

 

A&S to be reported as new segment beginning with Q4 2018.

 

Management Comments

“We delivered strong third-quarter revenue growth of 6.5%, as we leveraged robust demand across most of our end markets,” said Carl Christenson, Altra’s Chairman and CEO. “Our GAAP EPS was down year over year at $0.42. On an adjusted basis, non-GAAP net income grew 35.5%, and we achieved a seasonally strong non-GAAP EPS of $0.64, up 33.3% from the same period last year.* This solid bottom-line performance demonstrates our ability to execute against the Altra Business System to drive growth and leverage operational improvements.

“At the beginning of Q4 we completed the transformative combination with A&S and would like to acknowledge the hard work of both the Altra and Fortive organizations for completing this milestone transaction ahead of plan,” continued Christenson. “We were prepared to hit the ground running on day one and have already made excellent progress with the integration of the businesses, which has reaffirmed our confidence in our ability to realize over $50 million of identified synergies.

“With the A&S businesses, Altra is positioned as a premier global industrial company with an expanded portfolio of technologies and increased exposure to end markets with attractive secular trends including medical, factory automation and robotics. We are confident that our significantly expanded position across the technology continuum uniquely positions us to drive innovation, better serve our customers across all markets and deliver long-term value for our shareholders. 

“Our underlying businesses remain solid with a strong new business pipeline and excellent opportunities for organic growth. In addition, our newly acquired A&S businesses have strong momentum entering Q4. As a result of our optimism and the addition of A&S, we are raising our guidance for full year 2018.

“Looking forward, our strategic priorities are to flawlessly execute on the integration of the businesses and expediently de-lever and strengthen the balance sheet while we leverage the combined entity to accelerate top and bottom line growth. We are excited about the new growth markets that we are entering and remain encouraged by the ongoing recovery in several markets we have historically served,” concluded Christenson.   

Business Outlook

Altra is increasing its guidance for full year 2018 to reflect the addition of A&S. The Company now expects full-year 2018 sales in the range of $1,155 to $1,165 million.  The Company now expects GAAP diluted EPS in the range of $1.39 to $1.41 The Company intends to exclude acquisition amortization and


step-up depreciation from its non-GAAP EPS reporting in the fourth quarter. Non-GAAP diluted EPS guidance is now expected to be in the range of $2.86 to $2.91.  Diluted EPS includes the impact of issuing 35.0 million additional shares.  The Company expects its tax rate for the full year to be approximately 23% to 25% before discrete items, capital expenditures in the range of $34 to $38 million, and depreciation and amortization in the range of $66 to $69 million.*

 

Reconciliations of Non-GAAP Disclosures

 

*Reconciliation of Non-GAAP Net Income:

 

 

Quarter Ended

 

 

Year to Date Ended

 

 

 

September 30, 2018

 

 

September 30, 2017

 

 

September 30, 2018

 

 

September 30, 2017

 

Net Income

 

$

12,313

 

 

$

13,277

 

 

$

40,321

 

 

$

38,987

 

Restructuring and consolidation costs

 

$

610

 

 

$

680

 

 

$

2,119

 

 

$

3,776

 

Loss on extinguishment of convertible debt

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,797

 

Loss on settlement of pension plan

 

 

-

 

 

 

-

 

 

 

5,086

 

 

 

-

 

Supplier warranty settlement

 

 

-

 

 

 

-

 

 

 

(1,980

)

 

 

-

 

Amortization of inventory fair value adjustment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,347

 

Acquisition related expenses

 

 

4,631

 

 

 

108

 

 

 

11,872

 

 

 

1,674

 

Tax impact of above adjustments

 

 

1,178

 

 

 

(225

)

 

 

1,391

 

 

 

(2,845

)

Non-GAAP net income*

 

$

18,732

 

 

$

13,840

 

 

$

58,809

 

 

$

45,736

 

Non-GAAP diluted earnings per share*

 

$

0.64

 

 

$

0.48

 

 

$

2.01

 

 

$

1.58

 

In Thousands of Dollars, except per share amounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*Reconciliation of Free Cash Flow:

 

 

Year to Date Ended

 

 

 

September 30, 2018

 

 

September 30, 2017

 

Net cash flows from operating activities

 

$

58,979

 

 

$

43,289

 

Purchase of property, plant and equipment

 

 

(21,129

)

 

 

(23,261

)

Free cash flow*

 

$

37,850

 

 

$

20,028

 

 

 

*Reconciliation of Non-GAAP Operating Margin:


 

 

Quarter Ended

Year to Date Ended

 

 

 

September 30, 2018

 

 

September 30, 2017

 

 

September 30, 2018

 

 

September 30, 2017

 

Income from operations

 

$

20,737

 

 

$

21,273

 

 

$

68,466

 

 

$

62,084

 

Restructuring and consolidation costs

 

 

610

 

 

 

680

 

 

 

2,119

 

 

 

3,776

 

Amortization of inventory fair value adjustment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,347

 

Supplier warranty settlement

 

 

-

 

 

 

-

 

 

 

(1,980

)

 

 

-

 

Acquisition related expenses

 

 

4,631

 

 

 

108

 

 

 

11,872

 

 

 

1,674

 

Non-GAAP income from operations *

 

$

25,978

 

 

$

22,061

 

 

$

80,477

 

 

$

69,881

 

Non-GAAP Income from operations as a percent of net sales*

 

 

11.4

%

 

 

10.3

%

 

 

11.4

%

 

 

10.7

%

 

 

 

 

*Reconciliation of Non-GAAP Diluted EPS:

 

 

 

 

 

 

 

 

 

Fiscal Year 2018

 

 

Fiscal Year 2018

Diluted earnings

per share

 

 

 

 

 

 

 

 

 

Net Income

 

$40.7 - $42.5

 

 

$1.39 - $1.41

 

 

Adjustments (1)

 

 

 

 

 

 

 

 

Restructuring and consolidation costs

 

2.1 - 4.0

 

 

 

 

 

Acquisition related expenses

 

 

35.6

 

 

 

Loss on settlement of pension plan

 

 

5.1

 

 

 

Supplier warranty settlement

 

 

(2.0)

 

 

 

 

 

Acquisition depreciation expense

 

 

3.0

 

 

 

 

 

Acquisition amortization expense

 

 

31.7

 

 

 

 

 

Tax impact of above adjustments (2)

 

(10.1) - (10.6)

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Net Income

 

$106.1 - $109.3

 

 

$2.86 - $2.91

 

 

 

 

 

 

 

 

 

 

 

(1) Adjustments are pre-tax, with net tax impact listed separately.

(2) Tax impact is calculated by multiplying the estimated effective tax rate for the period of 23% - 25% before discrete items by the above items with the exception of acquisition-related expenses and the supplier warranty settlement.  Due to the uncertainty of deductibility and the non-recurring nature of the acquisition-related expenses, no tax benefit is assumed and the negative rate impact has been adjusted from the non-GAAP net income calculation. The supplier warranty settlement income is not taxable in the local jurisdiction, therefore no tax impact has been assumed.

 

Conference Call

The Company will conduct an investor conference call to discuss its unaudited third quarter financial results and the completion of its previously announced combination with Fortive’s A&S platform today


Thursday, October 25, 2018 at 10:00 a.m. ET. The public is invited to listen to the conference call by dialing (877) 407-8293 domestically or (201) 689-8349 for international access and asking to participate in the ALTRA conference call. A live webcast of the call will be available in the "Investor Relations" section of www.altramotion.com. Individuals may download charts that will be used during the call at www.altramotion.com under presentations in the Investor Relations section. The charts will be available after earnings are released. A replay of the recorded conference call will be available at the conclusion of the call on October 25 through midnight on November 7, 2018. To listen to the replay, dial (877) 660-6853 domestically or (201) 612-7415 for international access (conference ID # 13683742). A webcast replay also will be available.  

 

 

 


Altra Industrial Motion Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Income Data:

 

Quarter Ended

 

 

 

 

Year to Date Ended

 

 

 

 

In Thousands of Dollars, except per share amounts

 

September 30, 2018

 

 

 

 

September 30, 2017

 

 

 

 

September 30, 2018

 

 

 

 

September 30, 2017

 

 

 

 

 

 

(Unaudited)

 

 

 

 

(Unaudited)

 

 

 

 

(Unaudited)

 

 

 

 

(Unaudited)

 

 

 

 

Net sales

 

$

228,483

 

 

 

 

$

214,623

 

 

 

 

$

706,191

 

 

 

 

$

653,415

 

 

 

 

Cost of sales

 

 

156,543

 

 

 

 

 

145,610

 

 

 

 

 

481,770

 

 

 

 

 

446,109

 

 

 

 

Gross profit

 

$

71,940

 

 

 

 

$

69,013

 

 

 

 

$

224,421

 

 

 

 

$

207,306

 

 

 

 

Gross profit as a percent of net sales

 

 

31.5

%

 

 

 

 

32.2

%

 

 

 

 

31.8

%

 

 

 

 

31.7

%

 

 

 

Selling, general & administrative expenses

 

 

44,860

 

 

 

 

 

41,009

 

 

 

 

 

135,372

 

 

 

 

 

123,012

 

 

 

 

Research and development expenses

 

 

5,733

 

 

 

 

 

6,051

 

 

 

 

 

18,464

 

 

 

 

 

18,434

 

 

 

 

Restructuring and consolidation costs

 

 

610

 

 

 

 

 

680

 

 

 

 

 

2,119

 

 

 

 

 

3,776

 

 

 

 

Income from operations

 

$

20,737

 

 

 

 

$

21,273

 

 

 

 

$

68,466

 

 

 

 

$

62,084

 

 

 

 

Income from operations as a percent of net sales

 

 

9.1

%

 

 

 

 

9.9

%

 

 

 

 

9.7

%

 

 

 

 

9.5

%

 

 

 

Loss on settlement of pension plan

 

 

-

 

 

 

 

 

-

 

 

 

 

 

5,086

 

 

 

 

 

-

 

 

 

 

Interest expense, net

 

 

1,958

 

 

 

 

 

1,811

 

 

 

 

 

5,857

 

 

 

 

 

5,547

 

 

 

 

Other non-operating income, net

 

 

644

 

 

 

 

 

696

 

 

 

 

 

216

 

 

 

 

 

30

 

 

 

 

Loss on extinguishment of convertible debt

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

1,797

 

 

 

 

Income before income taxes

 

$

18,135

 

 

 

 

$

18,766

 

 

 

 

$

57,307

 

 

 

 

$

54,710

 

 

 

 

Provision for income taxes

 

 

5,822

 

 

 

 

 

5,489

 

 

 

 

 

16,986

 

 

 

 

 

15,723

 

 

 

 

Income tax rate

 

 

32.1

%

 

 

 

 

29.2

%

 

 

 

 

29.6

%

 

 

 

 

28.7

%

 

 

 

Net income

 

 

12,313

 

 

 

 

 

13,277

 

 

 

 

 

40,321

 

 

 

 

 

38,987

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

29,010

 

 

 

 

 

29,008

 

 

 

 

 

29,101

 

 

 

 

 

28,912

 

 

 

 

Diluted

 

 

29,049

 

 

 

 

 

29,074

 

 

 

 

 

29,178

 

 

 

 

 

29,001

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.42

 

 

 

 

$

0.46

 

 

 

 

$

1.39

 

 

 

 

$

1.35

 

 

 

 

Diluted

 

$

0.42

 

 

 

 

$

0.46

 

 

 

 

$

1.38

 

 

 

 

$

1.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Income From Operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

20,737

 

 

 

 

$

21,273

 

 

 

 

$

68,466

 

 

 

 

$

62,084

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and consolidation costs

 

 

610

 

 

 

 

 

680

 

 

 

 

 

2,119

 

 

 

 

 

3,776

 

 

 

 

Amortization of inventory fair value adjustment

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

2,347

 

 

 

 

Supplier warranty settlement

 

 

-

 

 

 

 

 

-

 

 

 

 

 

(1,980

)

 

 

 

 

-

 

 

 

 

Acquisition related expenses

 

 

4,631

 

 

 

 

 

108

 

 

 

 

 

11,872

 

 

 

 

 

1,674

 

 

 

 

Non-GAAP income from operations *

 

$

25,978

 

 

 

 

$

22,061

 

 

 

 

$

80,477

 

 

 

 

$

69,881

 

 

 

 

Non-GAAP Income from operations as a percent of net sales*

 

 

11.4

%

 

 

 

 

10.3

%

 

 

 

 

11.4

%

 

 

 

 

10.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Net Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

12,313

 

 

 

 

$

13,277

 

 

 

 

$

40,321

 

 

 

 

$

38,987

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and consolidation costs

 

 

610

 

 

 

 

 

680

 

 

 

 

 

2,119

 

 

 

 

 

3,776

 

 

 

 

Loss on extinguishment of convertible debt

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

1,797

 

 

 

 

Supplier warranty settlement

 

 

-

 

 

 

 

 

-

 

 

 

 

 

(1,980

)

 

 

 

 

-

 

 

 

 

Loss on settlement of pension plan

 

 

-

 

 

 

 

 

-

 

 

 

 

 

5,086

 

 

 

 

 

-

 

 

 

 

Amortization of inventory fair value adjustment

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

2,347

 

 

 

 

Acquisition related expenses

 

 

4,631

 

 

 

 

 

108

 

 

 

 

 

11,872

 

 

 

 

 

1,674

 

 

 

 

Tax impact of above adjustments

 

 

1,178

 

 

 

 

 

(225

)

 

 

 

 

1,391

 

 

 

 

 

(2,845

)

 

 

 

Non-GAAP net income *

 

 

18,732

 

 

 

 

 

13,840

 

 

 

 

 

58,809

 

 

 

 

 

45,736

 

 

 

 

Non-GAAP diluted earnings per share *

 

$

0.64

 

 

(1

)

$

0.48

 

 

(2

)

$

2.01

 

 

(3

)

$

1.58

 

 

(4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) - Tax impact is calculated by multiplying the estimated effective tax rate for the period of 24.2% by restructuring and consolidation costs.  Acquisition related expenses in the quarter are not tax deductible, therefore the tax impact has been eliminated.

 

 

 

 

(2) - Tax impact is calculated by multiplying the estimated effective tax rate for the period of 28.6% by the above items.

 

 

 

 

(3) - Tax impact is calculated by multiplying the estimated effective tax rate for the period of 24.2% by restructuring and consolidation costs and the loss on settlement of pension plan.  Acquisition related expenses for the year to date period are not tax deductible, therefore the tax impact has been eliminated. The supplier warranty settlement income is not taxable in the local jurisdiction; therefore, no tax impact has been assumed.

 

 

 

 

(4) - Tax impact is calculated by multiplying the estimated effective tax rate for the period of 29.7% by the above items.

 

 

 

 

 


Consolidated Balance Sheets

 

 

 

 

 

 

 

 

In Thousands of Dollars

 

September 30, 2018

 

 

December 31, 2017

 

 

 

(unaudited)

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

50,097

 

 

$

51,994

 

Trade receivables, net

 

 

139,863

 

 

 

135,499

 

Inventories

 

 

157,049

 

 

 

145,611

 

Income tax receivable

 

 

1,548

 

 

 

6,634

 

Prepaid expenses and other current assets

 

 

21,215

 

 

 

17,344

 

Assets held for sale

 

 

696

 

 

 

1,081

 

Total current assets

 

 

370,468

 

 

 

358,163

 

Property, plant and equipment, net

 

 

187,800

 

 

 

191,918

 

Intangible assets, net

 

 

148,389

 

 

 

159,613

 

Goodwill

 

 

202,114

 

 

 

206,040

 

Deferred income taxes

 

 

1,542

 

 

 

2,608

 

Other non-current assets, net

 

 

2,256

 

 

 

2,315

 

Total assets

 

$

912,569

 

 

$

920,657

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

61,466

 

 

$

68,014

 

Accrued payroll

 

 

31,139

 

 

 

32,091

 

Accruals and other current liabilities

 

 

53,169

 

 

 

32,921

 

Income tax payable

 

 

11,115

 

 

 

9,082

 

Current portion of long-term debt

 

 

1,306

 

 

 

384

 

Total current liabilities

 

 

158,195

 

 

 

142,492

 

Long-term debt - less current portion

 

 

255,161

 

 

 

275,587

 

Deferred income taxes

 

 

49,929

 

 

 

52,250

 

Pension liabilities

 

 

24,520

 

 

 

25,038

 

Long term taxes payable

 

 

5,418

 

 

 

6,322

 

Other long-term liabilities

 

 

2,186

 

 

 

22,263

 

Total stockholders' equity

 

 

417,160

 

 

 

396,705

 

Total liabilities, and stockholders' equity

 

$

912,569

 

 

$

920,657

 

 

 

 

 

 

 

 

 

 

Reconciliation to operating working capital:

 

 

 

 

 

 

 

 

Trade receivables, net

 

 

139,863

 

 

 

135,499

 

Inventories

 

 

157,049

 

 

 

145,611

 

Accounts payable

 

 

(61,466

)

 

 

(68,014

)

Operating working capital *

 

$

235,446

 

 

$

213,096

 

 


 

 

Year to Date Ended

 

 

 

September 30, 2018

 

 

September 30, 2017

 

 

 

(Unaudited)

 

 

(Unaudited)

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net income

 

$

40,321

 

 

$

38,987

 

Adjustments to reconcile net income to net operating cash flows:

 

 

 

 

 

 

 

 

Depreciation

 

 

20,735

 

 

 

19,764

 

Amortization of intangible assets

 

 

7,296

 

 

 

7,139

 

Amortization of deferred financing costs

 

 

449

 

 

 

449

 

Loss on foreign currency, net

 

 

204

 

 

 

241

 

Loss on settlement of pension plan

 

 

5,086

 

 

 

 

(Gain)/Loss on disposal / impairment of fixed assets

 

 

293

 

 

 

(36

)

Loss on extinguishment of debt

 

 

 

 

 

1,797

 

Stock based compensation

 

 

3,830

 

 

 

4,543

 

Amortization of inventory fair value adjustment

 

 

 

 

 

2,347

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Trade receivables

 

 

(7,550

)

 

 

(9,701

)

Inventories

 

 

(13,828

)

 

 

(9,478

)

Accounts payable and accrued liabilities

 

 

7,129

 

 

 

(8,799

)

Other current assets and liabilities

 

 

(4,256

)

 

 

(2,392

)

Other operating assets and liabilities

 

 

(730

)

 

 

(1,572

)

Net cash provided by operating activities