ALNT Allient Inc

• Second quarter revenue was $136.0 million with a gross margin of 29.9% and net income of $1.2 million
• Orders of $137.4 million resulted in a book-to-bill ratio of 1.0x and a backlog of $259.0 million
• Generated $17.4 million of cash from operations year-to-date
• Simplify to Accelerate NOW efforts identified $5 million in annualized cost reductions that were implemented in the second quarter
• Additional cost reductions expected to be implemented in the second half of 2024 are expected to result in an additional $5 million in annualized savings

Allient Inc. (Nasdaq: ALNT) (“Allient” or the “Company”), a global designer and manufacturer of precision and specialty Motion, Controls and Power products and solutions for targeted industries and applications, today reported financial results for its second quarter ended June 30, 2024. Results include the acquisitions of Sierramotion Inc. in September 2023 and SNC Manufacturing in January 2024. The Company also announced that it has advanced its Simplify to Accelerate NOW plans to realign its manufacturing footprint and streamline the organization to enhance operational efficiency and improve earnings power.

Dick Warzala, Chairman and CEO, commented, “Despite strong efforts from our team, we saw a significant demand shift during the month of June, with a notable decline in the Industrial market related to automation and the recreational industry combined with lesser declines in other served markets. Lower than anticipated revenue combined with inventory reserves related to a customer bankruptcy and current gross margin dilution as expected from our most recent acquisition had a measurable impact on earnings in the second quarter.

“Further, the market conditions we have seen are expected to persist through the second half of 2024 resulting in an annualized revenue run rate level below $500 million over the next several quarters. The run rate reduction is largely due to significant inventory rebalancing at some of our larger customers surfacing as the supply chain has returned to more normal conditions. While the full year results will exceed the projected third and fourth quarter annual run rate, we do expect customer inventory adjustments will be substantially complete in early 2025 with a return to normal run rates in mid-2025. As a result, our Simplify to Accelerate NOW plan has greater importance and we are taking additional significant steps to align the business with market conditions while continuing to execute programs that we expect will drive our future growth. Despite the vagaries of near-term global market conditions and the challenges our customers are facing, we remain confident in our long-term strategy and the underlying strength of our value proposition.”

Simplify to Accelerate NOW Savings

The expected annual savings from the initial manufacturing consolidation and streamlining efforts implemented in the second quarter are approximately $5 million and will begin to be realized in the second half of 2024. Restructuring and related charges of approximately $1.5 million were recognized in the second quarter of 2024. The charges are primarily cash and are related mostly to severance costs.

A primary emphasis of the restructuring includes the transfer of certain production activities from various U.S. operations to the Company’s existing lower cost facilities in Mexico. In addition, the Company has implemented reductions to its workforce in many operations throughout the world; to reflect the reduction in sales it is forecasting for the remainder of 2024.

Mr. Warzala added, “These actions to realign operations and rationalize production are elements of our overall strategy to refine our organizational structure, eliminate redundancies and optimize our operations. As we simplify our enterprise, we believe we can better serve our customers and strengthen our long-term competitiveness by making Allient easier to do business with while increasing our speed to market with new product innovations. Importantly, we are also better positioning the Company for the current macro environment and industrial headwinds. We expect to advance additional efforts over the next six months to achieve the $10 million in savings we initially targeted. In addition, we are identifying further rationalization actions beyond the initial $10 million target that will ensure we emerge as a stronger, more resilient enterprise with higher earnings power.”

Second Quarter 2024 Results (Narrative compares with prior-year period unless otherwise noted)

Revenue decreased 7%, or $10.7 million, to $136.0 million. The impact of foreign currency exchange rate fluctuations was unfavorable by $0.7 million. Sales to U.S. customers were 52% of total sales compared with 58% in the second quarter 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.

Sales in the Vehicle markets decreased 17% due to lower demand in powersports and agriculture, partially offset by higher demand within commercial automotive. Industrial markets sales were down 3% in the quarter as strengthened power quality sales, largely to the HVAC/data center market, as well as incremental sales from the recent acquisition were more than offset by lower demand in industrial automation, pumps, and material handling. Medical market revenue was down 8% given broad end-market lower demand and Aerospace & Defense sales decreased 3%, due to program timing within the industry.

Gross margin was 29.9%, down 140 basis points from the prior-year period, which reflects lower volume, expected margin dilution from the recent acquisition, approximately $1.2 million in non-cash inventory reserves, and unfavorable mix.

Operating costs and expenses were 26.3% of revenue, up 320 basis points, of which 110 basis points was attributable to restructuring and business realignment costs of $1.5 million. Also impacting the increase in operating costs was higher engineering expenses due to the recent acquisitions. As a result, operating income was $4.9 million, or 3.6% of revenue, compared with $12.0 million, or 8.2% of revenue.

The effective income tax rate was 20.6% and 23.9% for the second quarter of 2024 and 2023, respectively. The lower effective tax rate was primarily due to the realization of certain deferred income tax assets. The Company expects its income tax rate for the full year 2024 to be approximately 21% to 23%.

Net income was $1.2 million, or $0.07 per diluted share, compared with $6.8 million, or $0.42 per diluted 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 $4.9 million, or $0.29 per diluted share, compared with $9.5 million or $0.58 per diluted share. 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 $13.9 million, or 10.2% of revenue, compared with $20.4 million, or 13.9% of revenue. 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.

Balance Sheet and Cash Flow Review

Cash and cash equivalents were $31.3 million compared with $31.9 million at year-end 2023. Cash provided by operating activities was $17.4 million year-to-date, up 2%.

Capital expenditures were $5.3 million for the first six months of 2024 and largely focused on new customer projects. The Company has lowered its expected 2024 capital expenditures to be in the range of $11 million to $13 million from its previous expectations of $13 million to $17 million.

Total debt of $236.9 million was down $3.3 million from the sequential first quarter. The increase in debt from year-end 2023 reflected the SNC acquisition. Debt, net of cash, was $205.6 million, or 43.6% of net debt to capitalization. The Company’s leverage ratio, as defined in its credit agreement, was 3.29x at quarter-end.

Orders and Backlog Summary ($ in thousands)

Q2 2024

Q1 2024

Q4 2023

Q3 2023

Q2 2023

Orders

$

137,373

$

122,127

$

105,162

$

154,908

$

137,008

Backlog

$

259,002

$

258,130

$

276,093

$

309,636

$

298,695

Second quarter orders increased 12% sequentially, due to the recent acquisition, higher bookings for power quality projects, and the ramp up of commercial automotive programs. Foreign currency translation had an unfavorable $0.8 million impact on second quarter orders compared with the prior-year period.

The year-over-year decline in backlog reflects the continued improvements within the supply chain, which has enabled the reduction of long-lead times for industrial market projects. Sequentially, backlog was up marginally given the solid order rate in the second quarter. The time to convert the majority of the backlog to sales is approximately three to nine months.

Conference Call and Webcast

The Company will host a conference call and webcast on Thursday, August 8, 2024 at 10:00 am ET. During the conference call, management will review the financial and operating results and discuss Allient’s corporate strategy and outlook. A question-and-answer session will follow.

To listen to the live call, dial (201) 389-0920. In addition, the webcast and slide presentation may be found at: allient.com/investors.

A telephonic replay will be available from 2:00 pm ET on the day of the call through August 15, 2024. To listen to the archived call, dial (412) 317-6671 and enter replay pin number 13746994 or access the webcast replay via the Company’s website. A transcript will also be posted to the website once available.

About Allient Inc.

Allient (Nasdaq: ALNT) is a global engineering and manufacturing enterprise that develops solutions to drive the future of market-moving industries, including medical, life sciences, aerospace and defense, industrial automation, robotics, semi-conductor, transportation, agriculture, construction and facility infrastructure. A family of globally responsible companies, Allient takes a One-Team approach to “Connect What Matters” and provides the most robust, reliable, and high-value products and systems by utilizing its core Motion, Controls, and Power technologies and platforms.

Headquartered in Buffalo, N.Y., Allient employs more than 2,500 team members around the world. To learn more, visit www.allient.com.

Safe Harbor Statement

The statements in this news release 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 savings from restructuring and simplifying actions, the cost of implementing such actions, operating results, preliminary financial results, expectations for the level of sales for the next several quarters, 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, commercial activity and demand across our and our customers’ businesses, global supply chains, 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

ALLIENT INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)

 

 

 

For the three months ended

 

For the six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

Revenue

 

$

136,032

 

 

$

146,769

 

 

$

282,745

 

 

$

292,318

 

 

Cost of goods sold

 

 

95,356

 

 

 

100,792

 

 

 

194,692

 

 

 

200,507

 

 

Gross profit

 

 

40,676

 

 

 

45,977

 

 

 

88,053

 

 

 

91,811

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling

 

 

6,662

 

 

 

6,301

 

 

 

12,960

 

 

 

12,333

 

 

General and administrative

 

 

14,142

 

 

 

14,162

 

 

 

28,582

 

 

 

28,982

 

 

Engineering and development

 

 

10,293

 

 

 

9,952

 

 

 

21,360

 

 

 

20,339

 

 

Business development

 

 

1,569

 

 

 

400

 

 

 

1,926

 

 

 

597

 

 

Amortization of intangible assets

 

 

3,131

 

 

 

3,142

 

 

 

6,246

 

 

 

6,151

 

 

Total operating costs and expenses

 

 

35,797

 

 

 

33,957

 

 

 

71,074

 

 

 

68,402

 

 

Operating income

 

 

4,879

 

 

 

12,020

 

 

 

16,979

 

 

 

23,409

 

 

Other expense, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

3,384

 

 

 

3,162

 

 

 

6,772

 

 

 

6,145

 

 

Other expense (income), net

 

 

46

 

 

 

(42

)

 

 

(63

)

 

 

145

 

 

Total other expense, net

 

 

3,430

 

 

 

3,120

 

 

 

6,709

 

 

 

6,290

 

 

Income before income taxes

 

 

1,449

 

 

 

8,900

 

 

 

10,270

 

 

 

17,119

 

 

Income tax provision

 

 

(299

)

 

 

(2,131

)

 

 

(2,218

)

 

 

(4,035

)

 

Net income

 

$

1,150

 

 

$

6,769

 

 

$

8,052

 

 

$

13,084

 

 

Basic earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

$

0.07

 

 

$

0.42

 

 

$

0.49

 

 

$

0.82

 

 

Basic weighted average common shares

 

 

16,567

 

 

 

15,969

 

 

 

16,480

 

 

 

15,921

 

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

$

0.07

 

 

$

0.42

 

 

$

0.49

 

 

$

0.81

 

 

Diluted weighted average common shares

 

 

16,583

 

 

 

16,219

 

 

 

16,540

 

 

 

16,178

 

 

ALLIENT INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

June 30,

 

December 31,

 

 

 

2024

 

 

2023

 

 

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

31,292

 

 

$

31,901

 

 

Trade receivables, net of provision for credit losses of $1,121 and $1,240 at June 30, 2024 and December 31, 2023, respectively

 

 

82,400

 

 

 

85,127

 

 

Inventories

 

 

121,653

 

 

 

117,686

 

 

Prepaid expenses and other assets

 

 

14,087

 

 

 

13,437

 

 

Total current assets

 

 

249,432

 

 

 

248,151

 

 

Property, plant, and equipment, net

 

 

69,598

 

 

 

67,463

 

 

Deferred income taxes

 

 

7,205

 

 

 

7,760

 

 

Intangible assets, net

 

 

107,093

 

 

 

111,373

 

 

Goodwill

 

 

132,914

 

 

 

131,338

 

 

Operating lease assets

 

 

21,798

 

 

 

24,032

 

 

Other long-term assets

 

 

7,726

 

 

 

7,425

 

 

Total Assets

 

$

595,766

 

 

$

597,542

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

 

$

32,883

 

 

$

39,129

 

 

Accrued liabilities

 

 

31,125

 

 

 

56,488

 

 

Total current liabilities

 

 

64,008

 

 

 

95,617

 

 

Long-term debt

 

 

236,908

 

 

 

218,402

 

 

Deferred income taxes

 

 

4,462

 

 

 

4,337

 

 

Pension and post-retirement obligations

 

 

2,752

 

 

 

2,679

 

 

Operating lease liabilities

 

 

17,457

 

 

 

19,532

 

 

Other long-term liabilities

 

 

4,464

 

 

 

5,400

 

 

Total liabilities

 

 

330,051

 

 

 

345,967

 

 

Stockholders’ Equity:

 

 

 

 

 

 

 

Common stock, no par value, authorized 50,000 shares; 16,841 and 16,308 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively

 

 

109,203

 

 

 

95,937

 

 

Preferred stock, par value $1.00 per share, authorized 5,000 shares; no shares issued or outstanding

 

 

—

 

 

 

—

 

 

Retained earnings

 

 

172,862

 

 

 

165,813

 

 

Accumulated other comprehensive loss

 

 

(16,350

)

 

 

(10,175

)

 

Total stockholders’ equity

 

 

265,715

 

 

 

251,575

 

 

Total Liabilities and Stockholders’ Equity

 

$

595,766

 

 

$

597,542

 

 

ALLIENT INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

For the six months ended

 

 

 

June 30,

 

 

 

2024

 

2023

 

Cash Flows From Operating Activities:

 

 

 

 

 

 

 

Net income

 

$

8,052

 

$

13,084

 

Adjustments to reconcile net income to net cash provided by operating activities

 

 

 

 

 

 

 

Depreciation and amortization

 

 

12,801

 

 

12,535

 

Deferred income taxes

 

 

18

 

 

(14)

 

Stock-based compensation expense

 

 

2,284

 

 

2,811

 

Debt issue cost amortization recorded in interest expense

 

 

261

 

 

150

 

Other

 

 

2,368

 

 

685

 

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

 

 

 

 

Trade receivables

 

 

5,137

 

 

(11,151)

 

Inventories

 

 

941

 

 

832

 

Prepaid expenses and other assets

 

 

(461)

 

 

287

 

Accounts payable

 

 

(7,884)

 

 

2,822

 

Accrued liabilities

 

 

(6,140)

 

 

(4,768)

 

Net cash provided by operating activities

 

 

17,377

 

 

17,273

 

 

 

 

 

 

 

 

 

Cash Flows From Investing Activities:

 

 

 

 

 

 

 

Consideration paid for acquisitions, net of cash acquired

 

 

(25,231)

 

 

(6,250)

 

Purchase of property and equipment

 

 

(5,328)

 

 

(6,118)

 

Net cash used in investing activities

 

 

(30,559)

 

 

(12,368)

 

 

 

 

 

 

 

 

 

Cash Flows From Financing Activities:

 

 

 

 

 

 

 

Proceeds from issuance of long-term debt

 

 

76,898

 

 

4,000

 

Principal payments of long-term debt and finance lease obligations

 

 

(56,230)

 

 

(12,567)

 

Payment of contingent consideration

 

 

(2,450)

 

 

—

 

Payment of debt issuance costs

 

 

(2,329)

 

 

—

 

Dividends paid to stockholders

 

 

(1,008)

 

 

(872)

 

Tax withholdings related to net share settlements of restricted stock

 

 

(1,567)

 

 

(1,653)

 

Net cash provided by (used in) financing activities

 

 

13,314

 

 

(11,092)

 

Effect of foreign exchange rate changes on cash

 

 

(741)

 

 

(307)

 

Net decrease in cash and cash equivalents

 

 

(609)

 

 

(6,494)

 

Cash and cash equivalents at beginning of period

 

 

31,901

 

 

30,614

 

Cash and cash equivalents at end of period

 

$

31,292

 

$

24,120

 

 

 

 

 

 

 

 

 

ALLIENT 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. Business development costs include acquisition and integration related costs as well as restructuring and business realignment costs.

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 fully 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. Organic revenue is reported revenues adjusted for the impact of foreign currency and the revenue contribution from acquisitions.

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 six months ended June 30, 2024 is as follows:

Three Months Ended

 

Six Months Ended

June 30, 2024

 

June 30, 2024

Revenue as reported

$

136,032

 

$

282,745

Foreign currency impact

 

723

 

 

485

Revenue excluding foreign currency exchange impacts

$

136,755

 

$

283,230

The Company’s calculation of organic revenue for the three and six months ended June 30, 2024 is as follows:

Three Months Ended

 

Six Months Ended

June 30, 2024

 

June 30, 2024

Revenue decrease year over year

(7.3

%)

 

(3.3

%)

Less: Impact of acquisitions and foreign currency

6.9

%

 

6.8

%

Organic revenue

(14.2

%)

 

(10.1

%)

The Company’s calculation of Adjusted EBITDA for the three and six months ended June 30, 2024 and 2023 is as follows:

Three Months Ended

Six Months Ended

June 30,

June 30,

 

2024

 

2023

 

 

2024

 

 

2023

Net income

$

1,150

$

6,769

 

$

8,052

 

$

13,084

Interest expense

 

3,384

 

3,162

 

 

6,772

 

 

6,145

Provision for income tax

 

299

 

2,131

 

 

2,218

 

 

4,035

Depreciation and amortization

 

6,416

 

6,390

 

 

12,801

 

 

12,535

EBITDA

 

11,249

 

18,452

 

 

29,843

 

 

35,799

Stock-based compensation expense

 

1,073

 

 

1,544

 

 

2,284

 

 

2,811

Foreign currency loss (gain)

 

40

 

 

(15

)

 

(82

)

 

199

Acquisition and integration-related costs

 

100

 

 

163

 

 

457

 

 

296

Restructuring and business realignment costs

 

1,469

 

 

237

 

 

1,469

 

 

301

Adjusted EBITDA

$

13,931

$

20,381

 

$

33,971

 

$

39,406

ALLIENT INC.

Reconciliation of GAAP Net Income and Diluted Earnings per Share to

Non-GAAP Adjusted Net Income and Adjusted 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 six months ended June 30, 2024 and 2023 is as follows:

Three Months Ended

June 30,

 

2024

Per diluted share

 

2023

 

Per diluted share

Net income as reported

$

1,150

$

0.07

$

6,769

 

$

0.42

Non-GAAP adjustments, net of tax (1)

Amortization of intangible assets - net

 

 

2,475

 

0.15

 

 

2,407

 

 

0.14

 

Foreign currency gain/ loss - net

 

 

30

 

-

 

 

(11

)

 

-

 

Acquisition and integration-related costs - net

 

 

77

 

-

 

 

124

 

 

0.01

 

Restructuring and business realignment costs - net

 

1,125

 

0.07

 

182

 

 

0.01

Adjusted net income and adjusted diluted EPS

$

4,857

$

0.29

$

9,471

 

$

0.58

 

Weighted average diluted shares outstanding

 

16,583

 

16,219

Six Months Ended

June 30,

 

2024

 

Per diluted share

 

2023

Per diluted share

Net income as reported

$

8,052

 

$

0.49

$

13,084

$

0.81

Non-GAAP adjustments, net of tax (1)

Amortization of intangible assets - net

 

 

4,938

 

 

0.30

 

 

4,712

 

0.29

 

Foreign currency gain/ loss - net

 

 

(62

)

 

-

 

 

152

 

0.01

 

Acquisition and integration-related costs - net

 

 

350

 

 

0.02

 

 

227

 

0.01

 

Restructuring and business realignment costs - net

 

1,125

 

 

0.06

 

230

 

0.02

Adjusted net income and adjusted diluted EPS

$

14,403

 

$

0.87

$

18,405

$

1.14

 

Weighted average diluted shares outstanding

 

16,540

 

16,178

(1) Applies a blended federal, state, and foreign tax rate of 23% applicable to the non-GAAP adjustments.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240807749914/en/

Investor Contacts: Deborah K. Pawlowski / Craig P. Mychajluk Kei Advisors LLC 716-843-3908 / 716-843-3832 dpawlowski@keiadvisors.com / cmychajluk@keiadvisors.com