- Sales of $135.8 million, up
54%
- Net income of $11.6 million;
non-GAAP net income of $14.1 million
- Adjusted EBITDA of $33.6 million,
24.8% of sales
- Narrowing and adjusting 2018
guidance
Helios Technologies (formerly known as Sun Hydraulics)
(Nasdaq: SNHY) (“Helios” or the “Company”), a global
industrial technology leader that develops and manufactures
solutions for both the hydraulics and electronics markets, today
reported financial results for the third quarter and year-to-date
period ended September 29, 2018. The results include Faster Group
since its acquisition on April 5, 2018 and Custom Fluidpower (CFP)
since its acquisition on August 1, 2018.
Wolfgang Dangel, Helios Technologies’ President and Chief
Executive Officer, commented, “We are pleased with the progress
we’re making as we continue to see strong growth organically and
through acquisitions. Sales were up 43% year-to-date, with organic
growth of 14% in Electronics and 12% in Hydraulics. Our strategic
acquisitions of Faster and CFP earlier this year drove year-to-date
consolidated growth of 31%. Further, our legacy Sun Hydraulics and
Enovation Controls businesses both realized sequential gross margin
improvement in the third quarter.”
He continued, “In the Hydraulics segment, we experienced some
operational headwinds that affected revenue and profitability in
the third quarter. The Sarasota Cartridge Valve Technology (CVT)
manufacturing consolidation project, which is expected to increase
capacity at least 15% by the end of 2019, has temporarily dampened
our ability to grow organically at an even further accelerated
pace. CVT demand remains at a high level globally with orders
continuing to outpace sales. We expect to have the consolidation
project and efficiencies of the new processes in place by the end
of the first quarter of 2019.”
Mr. Dangel added, “These headwinds, along with the challenges of
trying to mitigate the additional costs created by recent tariffs,
contributed to our adjustment of 2018 revenue and profitability
guidance. On the positive side, we anticipate a significant
favorable adjustment in the effective tax rate for 2018 resulting
from U.S. tax reform, which will lead to a more favorable impact
than previously expected on net income for the year.”
Third Quarter 2018 Consolidated
Results
($ in millions, except per share data)
Q3 2018
Q3 2017 Change % Change Net
sales $ 135.8 $ 88.0 $ 47.8 54 % Gross profit $ 51.7 $ 36.3 $ 15.4
43 % Gross margin 38.1 % 41.2 % Operating income $ 19.2 $ 17.4 $
1.8 11 % Operating margin 14.2 % 19.8 % Non-GAAP adjusted operating
margin 21.3 % 22.0 % Net income $ 11.6 $ 11.3 $ 0.3 3 % Diluted EPS
$ 0.36 $ 0.42 $ (0.06 ) (13 %) Non-GAAP adjusted net income $ 14.1
$ 11.7 $ 2.4 21 % Non-GAAP adjusted EPS $ 0.44 $ 0.43 $ 0.01 2 %
Sales in the 2018 third quarter grew by $47.8 million, or 54%
over the same period last year. The Faster business contributed
$31.8 million, the CFP business contributed $8.4 million, and
organic business sales grew 9%. The Faster sales reflect 9% growth
over the 2017 third quarter on a pro forma basis, excluding the
impact of currency changes, and CFP sales grew 15% over the
prior-year comparable period, also excluding the impact of currency
changes. Sales to the Americas, Europe/Middle East/Africa (“EMEA”)
and Asia Pacific (“APAC”) comprised 48%, 28% and 24% of
consolidated sales, respectively. Foreign currency translation had
a minimal impact on consolidated sales of the Company’s organic
business. Additionally, compared with the exchange rates in effect
at the respective acquisition dates, third quarter sales for Faster
and CFP were unfavorably impacted by $1.8 million due to the
decline in value of the Euro and Australian dollar relative to the
U.S. dollar.
Organic sales growth and acquisitions drove an increase in gross
profit, partially offset by amortization of inventory valuation
step-up of $2.1 million which resulted from the Faster and CFP
acquisitions. However, lower production volume resulting from
normal seasonality impacted the third quarter gross margin realized
by Faster. Also, the addition of the CFP business unfavorably
impacted the comparability of gross margin versus the prior year,
due to lower margins from a value-add integrator business as
opposed to a manufacturer.
The factors that affected gross profit and gross margin also
impacted operating income and operating margin. Additionally, the
third quarter of 2018 includes $0.7 million of acquisition and
financing-related expenses as well as $7.0 million of
acquisition-related amortization of intangible assets, compared
with $2.0 million in the prior-year third quarter.
Non-GAAP adjusted operating margin was 21.3% in the 2018 quarter
compared with 22.0% a year ago. The decrease is primarily due to
the factors noted above which impacted gross margin. See the
attached tables for additional important disclosures regarding
Helios’ use of non-GAAP adjusted operating income and non-GAAP
adjusted operating margin as well as a reconciliation of GAAP
operating income to non-GAAP adjusted operating income.
Net interest expense was $4.6 million compared with $1.1 million
in the prior-year period, with the increase due to the debt to fund
the Faster and CFP acquisitions.
The Company recorded a $0.3 million charge for accretion of the
contingent consideration associated with the Enovation Controls
acquisition, compared with a $0.7 million increase to the fair
value of the liability in last year’s quarter.
The Tax Cuts and Jobs Act was the primary factor resulting in a
lower effective tax rate in the 2018 third quarter, at 18.6%,
compared with 29.3% in the third quarter of 2017.
Net income was $11.6 million, or $0.36 per share in the third
quarter of 2018. Non-GAAP net income was $14.1 million, or $0.44
per share, compared with $11.7 million, or $0.43 per share, in the
prior-year third quarter. The comparison is impacted by a 4.8
million increase in weighted average shares outstanding in the 2018
third quarter compared with the prior-year third quarter. See the
attached tables for additional important disclosures regarding
Helios’ use of non-GAAP net income and non-GAAP EPS as well as a
reconciliation of net income to non-GAAP net income.
Third Quarter Adjusted EBITDA ($ in millions)
Q3 2018 Q3 2017
Change % Change
Adjusted EBITDA $ 33.6 $ 22.5 $ 11.1 49 % Adjusted EBITDA margin
24.8 % 25.5 %
Third quarter 2018 Adjusted EBITDA (earnings before net interest
expense, income taxes, depreciation and amortization, and certain
non-recurring charges) was $33.6 million, or 24.8% of sales.
Helios believes that, when used in conjunction with measures
prepared in accordance with GAAP, adjusted EBITDA and adjusted
EBITDA margin (adjusted EBITDA as a percentage of sales), which are
non-GAAP measures, help in the understanding of its operating
performance. See the attached tables for additional important
disclosures regarding Helios’ use of adjusted EBITDA and adjusted
EBITDA margin as well as a reconciliation of net income to adjusted
EBITDA.
Year-to-date 2018 Consolidated
Results
($ in millions, except per share data)
2018
2017
Change
% Change Net sales $ 369.3 $ 258.7 $ 110.6 43 % Gross
profit $ 139.8 $ 107.7 $ 32.0 30 % Gross margin 37.8 % 41.6 %
Operating income $ 53.5 $ 53.9 $ (0.4 ) (1 %) Operating margin 14.5
% 20.8 % Non-GAAP adjusted operating margin 22.1 % 24.0 % Net
income $ 30.3 $ 28.8 $ 1.5 5 % Diluted EPS $ 0.97 $ 1.07 $ (0.10 )
(9 %) Non-GAAP Adjusted net income $ 41.4 $ 36.0 $ 5.4 15 %
Non-GAAP adjusted EPS $ 1.33 $ 1.33 $ (0.00 ) (0 %)
Sales in the 2018 year-to-date period grew $110.6 million, or
43%, over the prior year. Faster contributed $70.5 million, CFP
contributed $8.4 million, and organic business sales grew 12%. For
the year-to-date period, foreign currency translation favorably
impacted the consolidated sales of the Company’s organic business
by $3.6 million. Additionally, compared with the rates in effect at
the respective acquisition dates, year-to-date sales for Faster and
CFP were unfavorably impacted by $2.7 million due to the decline in
value of the Euro and Australian dollar relative to the U.S.
dollar.
Operating income in the 2018 year-to-date period included $5.2
million for amortization of inventory valuation step-up compared
with $1.8 million in 2017, $5.6 million for acquisition and
financing-related expenses compared with $0.2 million in 2017, $0.2
million for restructuring charges compared with none in 2017, and
$17.0 million for acquisition-related amortization of intangible
assets compared with $6.2 million in 2017.
Non-GAAP adjusted operating margin was 22.1% in the 2018
year-to-date period compared with 24.0% in the prior-year period.
The decrease is primarily due to the factors noted above for the
third quarter and other operational costs noted in the first half
year’s previously reported results. See the attached tables for
additional important disclosures regarding Helios’ use of non-GAAP
adjusted operating income and non-GAAP adjusted operating margin as
well as a reconciliation of GAAP operating income to non-GAAP
adjusted operating income.
Net interest expense was $9.3 million compared with $2.7 million
for the 2017 year-to-date period, with the increase primarily due
to debt to fund the Faster and CFP acquisitions.
A foreign currency transaction loss of $3.8 million and change
in fair value of contingent consideration of $0.9 million in the
year-to-date 2018 period reflect fluctuations compared with the
2017 period as described above for the third quarter and as
previously disclosed for the first half year results. The variation
in effective tax rates are similar to the fluctuation described
above for the third quarter.
Net income was $30.3 million, or $0.97 per share. Non-GAAP net
income was $41.4 million, or $1.33 per share, compared with $36.0
million, or $1.33 per share, last year. The comparison is impacted
by a 4.1 million increase in weighted average shares outstanding in
the 2018 year-to-date period. See the attached tables for
additional important disclosures regarding Helios’ use of non-GAAP
net income and non-GAAP EPS as well as a reconciliation of net
income to non-GAAP net income.
Year-to-date Adjusted EBITDA
($ in millions)
2018 2017 Change %
Change Adjusted EBITDA $ 91.9 $ 70.1 $ 21.8 31 % Adjusted
EBITDA margin 24.9 % 27.1 %
Year-to-date 2018 Adjusted EBITDA was $91.9 million, or 24.9% of
sales.
Helios believes that, when used in conjunction with measures
prepared in accordance with GAAP, adjusted EBITDA and adjusted
EBITDA margin, which are non-GAAP measures, help in the
understanding of its operating performance. See the attached tables
for additional important disclosures regarding Helios’ use of
adjusted EBITDA and adjusted EBITDA margin as well as a
reconciliation of net income to adjusted EBITDA.
Hydraulics Segment Review
(Refer to sales by geographic region and segment data in
accompanying tables)
Segment sales of $104.1 million grew 84% over the prior-year
third quarter. The $47.5 million increase included $31.8 million
from the Faster business, $8.4 million from CFP and 13% of organic
growth. Growth was driven by increased demand in all geographies
and end markets, and was also positively impacted by global sales
and marketing initiatives. Orders continued to outpace revenue. The
CVT manufacturing consolidation project, which is expected to
increase capacity, has temporarily dampened the Company’s ability
to grow organically at an even further accelerated pace. Faster’s
third quarter results were in line with Helios’ expectations
relative to normal seasonal fluctuations. Including Faster and CFP,
sales to the Americas, EMEA and APAC were up 52%, 115% and 105%,
respectively. Foreign currency translation for the Sun Hydraulics
business had a minimal impact compared with the 2017 third
quarter.
Third quarter 2018 gross margin declined versus last year due to
several factors. While the CVT business showed improved sequential
gross margin over the first two quarters of 2018, compared with the
third quarter last year, third quarter 2018 gross margin was lower
due to productivity constraints related to the CVT consolidation
project. While Faster and CFP were not included in the 2017
results, on a sequential basis, Faster margins declined due to
normal seasonality of revenue in the third quarter. The addition of
CFP in the third quarter also caused gross margin to decrease due
to the nature of the value-add distributor business.
Higher SEA (selling, engineering and administrative) expenses in
the 2018 quarter include $5.3 million for the Faster business and
$1.7 million for the CFP business, while costs realized by the
historical Sun business were consistent with the prior year.
Third quarter operating income increased $9.2 million, or 68%,
to $22.7 million, representing 21.8% of sales. The addition of the
CFP business unfavorably impacted the comparability of the
operating margin versus the prior year, due to lower margins from
value-add integrator business.
Year-to-date, segment sales grew $98.7 million, or 58%, to
$270.3 million. The growth included $70.5 million contributed by
Faster, $8.4 million contributed by CFP, and 12% growth was
realized organically. Operating income for the 2018 year-to-date
period was $61.6 million, or 22.8% of sales.
Electronics Segment Review
(Refer to sales by geographic region and segment data in
accompanying tables)
Segment sales were $31.8 million for the 2018 third quarter, a
$0.4 million increase compared with the third quarter of last year.
Foreign currency translation minimally impacted segment sales in
the quarter.
Third quarter 2018 gross margin improved over last year and also
showed sequential improvement over the first two quarters of 2018.
Favorable productivity and product mix drove the increase.
SEA costs increased by $1.0 million due to planned investments
in sales and marketing initiatives, and research and development to
support the segment’s growth strategy, as well as increased
accounting and administrative infrastructure costs.
Third quarter operating income was up $0.3 million compared with
the prior-year third quarter, to $6.3 million, or 19.9% of
sales.
Year-to-date, segment sales grew $11.9 million, or 14%, to $99.0
million. Operating income for the 2018 year-to-date period was
$20.0 million, or 20.2% of sales.
Balance Sheet and Cash Flow Review
Total debt was $364.8 million at September 29, 2018, up from
$116.0 million at December 30, 2017, with the increase primarily
used to fund the Faster and CFP acquisitions. Cash and cash
equivalents at September 29, 2018 were $15.9 million, compared with
$63.9 million at the end of 2017.
Cash provided by operations was $44.2 million and $38.4 million
for the first three quarters of 2018 and 2017, respectively. The
increase was primarily due to higher cash from earnings, partially
offset by increases in working capital.
Capital expenditures were $18.7 million and $8.3 million for the
first three quarters of 2018 and 2017, respectively. The increase
was primarily for machinery and equipment and costs for the
completion of the Company’s new production facility in South Korea,
which opened in August of 2018.
2018 Outlook and Guidance
Mr. Dangel stated, “Due to continued strong order rates, we are
able to narrow our guidance in the Electronics segment to the high
end of previous guidance. For Hydraulics, we are reducing our
revenue guidance for the year based on a few factors: 1) our
shipment outlook which has been temporarily dampened due to the CVT
site consolidation project, 2) slower growth rates in the
agriculture market, and 3) currency impact of the strong U.S.
dollar relative to the Euro and Australian Dollar. Demand continues
to be strong globally even as agriculture shows signs of some
slowdown from the high growth we have experienced. Further,
refinement of our operating margin guidance was warranted based on
the current dynamics impacting our top line revenue and operations.
Over the year, our cost structure has shifted resulting from
inflationary material costs which are further exacerbated by recent
tariffs.”
The following summarizes the Company’s updated expectations for
2018, compared with previously provided guidance:
Previous 2018Guidance
Updated 2018Guidance
Consolidated revenue $510 - $525 million
$500 - $507 million
Hydraulics segment revenue $388 - $398 million
$375 - $380
million Electronics segment revenue $122 - $127 million
$125
- $127 million Consolidated operating margin (1) 21.7% - 23.0%
(1)
20.5% - 21.5% (1) Consolidated interest expense
$13.5 - $14.5 million
$13.7 - $14.2 million Effective tax
rate 24.5% - 26.5%
19% - 21% Capital expenditures $25 - $30
million
$25 - $30 million Depreciation $16.5 - $17.5 million
$16.0 - $16.5 million Amortization $22.5 - $23.5 million
$21.6 - $22.3 million (1) Operating margin is non-GAAP,
before acquisition-related amortization of intangibles and one-time
costs
Mr. Dangel concluded, “We remain steadfast in the execution of
our many activities to further improve our operating margins. These
include our Sarasota consolidation project and ramping up of our
newly opened state-of-the-art facility in South Korea.
Additionally, we have taken action to improve our supply chain and
continuously seek to enhance throughput in all areas of our
organization in accordance with our lean enterprise initiative.
These actions aid in the progression toward our Vision 2025 goals,
including $1 billion in revenue with superior profitability and
financial strength.”
Webcast
The Company will host a conference call and webcast tomorrow
morning at 9:00 a.m. Eastern Time to review its financial and
operating results, and discuss its corporate strategies and
outlook. A question-and-answer session will follow.
The conference call can be accessed by calling (201) 689-8573.
The audio webcast can be monitored at www.heliostechnologies.com.
Participants will have the ability to ask questions on either the
teleconference call or the webcast.
A telephonic replay will be available from 12:00 p.m. ET on the
day of the call through Tuesday, November 13, 2018. To listen to
the archived call, dial (412) 317-6671 and enter conference ID
number 13683879. The webcast replay will be available in the
investor relations section of the Company’s website at
www.heliostechnologies.com, where a transcript will also be posted
once available.
About Helios Technologies
Helios Technologies is the business name for Sun Hydraulics
Corporation, a publicly-listed company on the Nasdaq Global Stock
Market (SNHY). Helios Technologies is a global industrial
technology leader that develops and manufactures hydraulic and
electronic control solutions for diverse markets. The Company does
business through its operating subsidiaries around the world,
including Sun Hydraulics, LLC, Enovation Controls, LLC and Faster
S.p.A. Through its Hydraulics segment, the Company serves diverse
markets including material handling, construction equipment,
agriculture, specialized vehicles, energy and others through its
Sun Hydraulics and Faster Group companies, providing
high-performance screw-in hydraulic cartridge valves and manifolds
as well as quick-release hydraulic coupling solutions. Through its
Electronics segment, the Company provides electronic control
solutions through Enovation Controls for recreational and
off-highway vehicles, as well as industrial stationary and mobile
power equipment. Helios Technologies and information about its
associated companies is available online at
www.heliostechnologies.com.
FORWARD-LOOKING INFORMATION
This news release contains “forward‐looking statements” within
the meaning of Section 21E of the Securities Exchange Act of 1934.
Forward‐looking statements involve risks and uncertainties, and
actual results may differ materially from those expressed or
implied by such statements. They include statements regarding the
intent, belief or current expectations, estimates, vision or
projections of Sun Hydraulics Corporation (“Helios” or the
“Company”), its directors or its officers about the Company and the
industry in which it operates, and assumptions made by management,
and include among other items, (i) the Company’s strategies
regarding growth, including its intention to develop new products
and make acquisitions; (ii) the Company’s financing plans; (iii)
the Company’s expectations regarding our sales, expenses, gross
margins and other results of operations; (iv) trends affecting the
Company’s financial condition or results of operations; (v) the
Company’s ability to continue to control costs and to meet its
liquidity and other financing needs; (vi) the declaration and
payment of dividends; (vii) the Company’s ability to respond to
changes in customer demand domestically and internationally,
including as a result of standardization; and (viii) potential
challenges relating to changes in and compliance with governmental
laws and regulations affecting our U.S. and international business.
Although the Company believes that its expectations are based on
reasonable assumptions, it can give no assurance that the
anticipated results will occur. Important factors that could cause
the actual results to differ materially from those in the
forward‐looking statements include, among other items, (i) the
economic cyclicality of the capital goods industry in general and
the hydraulics industry in particular, which directly affect
customer orders, lead times and sales volume; (ii) fluctuations in
global business conditions, including the impact of economic
recessions in the U.S. and other parts of the world, (iii)
conditions in the capital markets, including the interest rate
environment and the availability of capital; (iv) changes in the
competitive marketplace that could affect the Company’s revenue
and/or costs, such as increased competition, lack of qualified
engineering, marketing, management or other personnel, and
increased labor and raw materials costs; (v) risks related to the
integration of the businesses of the Company, Enovation Controls
and Faster Group; (vi) changes in technology or customer
requirements, such as standardization of the cavity into which
screw‐in cartridge valves must fit, which could render the
Company’s products or technologies noncompetitive or obsolete;
(vii) new product introductions, product sales mix and the
geographic mix of sales nationally and internationally; and (viii)
changes relating to the Company’s international sales, including
changes in regulatory requirements or tariffs, compliance with
anti-corruption laws and trade laws, including export and import
compliance, trade or currency restrictions, fluctuations in
exchange rates, and tax and collection issues. Further information
relating to factors that could cause actual results to differ from
those anticipated is included but not limited to information under
the heading Item 7. “Management’s Discussion and Analysis of
Financial Conditions and Results of Operations” in the Company’s
Form 10‐Q for the quarter ended September 29, 2018, and Item 1.
“Business” and Item 1A. “Risk Factors” in the Company’s Form 10-K
for the year ended December 30, 2017. The Company disclaims any
intention or obligation to update or revise forward‐looking
statements, whether as a result of new information, future events
or otherwise.
This news release will discuss some non-GAAP financial measures,
which the Company believes are useful in evaluating our
performance. You should not consider the inclusion of this
additional information in isolation or as a substitute for results
prepared in accordance with GAAP.
Financial Tables Follow.
HELIOS TECHNOLOGIES CONSOLIDATED STATEMENTS OF
INCOME (In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months
Ended September 29 September 30
September 29 September 30 2018
2017 % Change 2018 2017 % Change
Net sales $ 135,837 $ 88,001 54
%
$ 369,322 $ 258,689 43 % Cost of
sales 84,102 51,707 63 % 229,567
151,018 52 %
Gross profit 51,735
36,294 43 % 139,755 107,671
30 % Gross margin 38.1 % 41.2 % 37.8 % 41.6 %
Selling, engineering and administrative expenses 25,440 16,854 51 %
69,078 47,398 46 % Amortization of intangible assets 7,049
2,038 246 % 17,174 6,386
169 %
Operating income 19,246
17,402 11 % 53,503
53,887 (1 %) Operating
margin 14.2 % 19.8 % 14.5 % 20.8 % Interest expense, net
4,622 1,121 312 % 9,256 2,710 242 % Foreign currency transaction
loss (gain), net (42 ) (24 ) 75 % 3,770 (64 ) NM Miscellaneous
expense, net 141 (337 ) NM 185 365 (49 %) Change in fair value of
contingent consideration 275 664 (59 %)
928 8,855 (90 %)
Income before
income taxes 14,250 15,978 (11 )%
39,364 42,021 (6 %) Income tax
provision 2,651 4,683 (43 )%
9,058 13,231 (32 %)
Net income $
11,599 $ 11,295 3
% $ 30,306 $ 28,790
5 % Basic and diluted net income per
common share $ 0.36 $ 0.42 (13 %) $ 0.97 $
1.07 (9 %) Basic and diluted weighted average shares
outstanding 31,843 27,059 31,093 27,017 Dividends declared
per share $ 0.09 $ 0.09 $ 0.27 $ 0.29
NM = Not meaningful
HELIOS TECHNOLOGIES
CONSOLIDATED BALANCE SHEETS (In thousands, except share
data) September 29 December 30
2018 2017 (Unaudited)
Assets Current assets:
Cash and cash equivalents $ 15,875 $ 63,882 Restricted cash 39 40
Accounts receivable, net of allowance for doubtful accounts of
$1,047 and $358 77,867 37,503 Inventories, net 88,438 41,545 Income
taxes receivable 2,242 - Other current assets 11,821
3,806 Total current assets 196,282 146,776 Property,
plant and equipment, net 122,660 91,931 Deferred income taxes 7,848
4,654 Goodwill 350,306 108,869 Other intangibles, net 327,667
104,131 Other assets 3,849 3,405
Total assets $ 1,008,612 $
459,766 Liabilities and shareholders’ equity
Current liabilities: Accounts payable $ 36,076 $ 15,469 Accrued
expenses 25,287 8,977 Current portion of contingent consideration
17,468 17,102 Current portion of long-term non-revolving debt, net
4,950 - Dividends payable 2,877 2,437 Income taxes payable 3,005
1,878 Other current liabilities 2,248 -
Total current liabilities 91,911 45,863 Revolving line of credit
267,000 116,000 Long-term non-revolving debt, net 92,836 -
Contingent consideration, less current portion 938 16,780 Deferred
income taxes 20,230 2,068 Other noncurrent liabilities 9,187
6,382
Total liabilities
482,102 187,093 Commitments and
contingencies - -
Shareholders’ equity: Preferred stock,
2,000,000 shares authorized, par value $0.001, no shares
outstanding - - Common stock, 50,000,000 shares authorized, par
value $0.001, 31,957,429 and 27,077,145 shares outstanding 32 27
Capital in excess of par value 356,772 95,354 Retained earnings
205,510 183,770 Accumulated other comprehensive loss (35,804
) (6,478 )
Total shareholders’ equity
526,510 272,673 Total
liabilities and shareholders’ equity $ 1,008,612
$ 459,766 HELIOS
TECHNOLOGIES CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended September 29
September 30 2018 2017 Cash flows from
operating activities: Net income $ 30,306 $ 28,790 Adjustments
to reconcile net income to net cash provided by operating
activities: Depreciation and amortization 28,801 14,559 Loss on
disposal of assets 53 812 Stock-based compensation expense 3,364
3,180 Amortization of debt issuance costs 550 334 Benefit for
deferred income taxes (393 ) (2,660 ) Amortization of
acquisition-related inventory step-up 5,217 1,774 Change in fair
value of contingent consideration 928 8,855 Forward contract
losses, net 3,573 - Other, net 386 188 (Increase) decrease in
operating assets, net of acquisition: Accounts receivable (10,595 )
(14,419 ) Inventories (13,754 ) (15,063 ) Income taxes receivable
(1,723 ) 512 Other current assets (1,329 ) 12 Other assets 121 (359
) Increase (decrease) in operating liabilities, net of acquisition:
Accounts payable 1,413 7,146 Accrued expenses and other liabilities
2,210 3,005 Income taxes payable (4,762 ) 2,378 Other noncurrent
liabilities (144 ) (623 )
Net cash provided by
operating activities 44,222
38,421 Cash flows from investing activities:
Capital expenditures (18,702 ) (8,268 ) Proceeds from dispositions
of equipment 20 37 Proceeds from sale of short-term investments -
2,887 Acquisition of business, net of cash acquired (534,662 ) (500
) Cash settlements of forward contracts (2,535 ) -
Net cash used in investing activities
(555,879 ) (5,844 ) Cash
flows from financing activities: Borrowings on revolving credit
facility 285,000 - Repayment of borrowings on revolving credit
facility (134,000 ) (24,000 ) Borrowings on long-term non-revolving
debt 101,035 - Repayment of borrowings on long-term non-revolving
debt (2,527 ) - Borrowings under factoring arrangement 2,891 -
Repayments of borrowings under factoring arrangement (2,040 ) -
Payments on capital lease obligations (638 ) - Proceeds from stock
issued 240,959 776 Dividends to shareholders (8,126 ) (7,824 ) Debt
issuance costs (1,763 ) - Payment of employee tax withholding (240
) - Payment of contingent consideration liability (17,342 ) -
Change in restricted cash - 88
Net
cash provided by (used in) financing activities
463,209 (30,960 ) Effect of
exchange rate changes on cash and cash equivalents 441
5,353 Net (decrease) increase in cash and cash
equivalents (48,007 ) 6,970 Cash and cash equivalents, beginning of
period 63,882 74,221 Cash and cash
equivalents, end of period $ 15,875 $ 81,191
HELIOS TECHNOLOGIES SEGMENT DATA (In
thousands)
(Unaudited)
Three Months Ended Nine Months Ended
September 29 September 30 September 29
September 30 2018 2017 2018
2017 Sales: Hydraulics $ 104,055 $ 56,638 $ 270,297 $
171,578 Electronics 31,782 31,363
99,025 87,111 Consolidated $ 135,837
$ 88,001 $ 369,322 $ 258,689
Gross profit and margin: Hydraulics $ 39,066 $ 22,869 $ 101,936 $
70,468 37.5 % 40.4 % 37.7 % 41.1 % Electronics 14,761 13,425 43,036
38,977 46.4 % 42.8 % 43.5 % 44.7 % Corporate and other
(2,092 ) - (5,217 ) (1,774 )
Consolidated $ 51,735 $ 36,294 $ 139,755 $
107,671 38.1 % 41.2 % 37.8 % 41.6 % Operating income
and margin: Hydraulics $ 22,723 $ 13,487 $ 61,567 $ 43,618 21.8 %
23.9 % 22.8 % 25.4 % Electronics 6,321 5,961 19,960 18,616 19.9 %
19.0 % 20.2 % 21.5 % Corporate and other (9,798 )
(2,046 ) (28,024 ) (8,347 ) Consolidated $ 19,246
$ 17,402 $ 53,503 $ 53,887 14.2 % 19.8
% 14.5 % 20.8 %
HELIOS TECHNOLOGIES
ADDITIONAL INFORMATION
(Unaudited)
2018 Sales by Geographic Region and Segment
($ in millions)
Q1
%
of Total
Q2
%
of Total
Q3
%
of Total
2018
%
of Total
Americas: Hydraulics $ 26.4 $ 39.7 $ 38.4 $
104.5 Electronics 30.1 27.9 27.4 85.4
Consol. Americas 56.5 58 % 67.6 50 % 65.8 48 % 189.9 51 % EMEA:
Hydraulics 19.6 40.5 34.6 94.7 Electronics 2.7 2.7
2.7 8.1 Consol. EMEA 22.3 23 % 43.2 32 % 37.3 28 %
102.8 28 % APAC: Hydraulics 16.6 23.4 31.1 71.1 Electronics
1.9 2.0 1.6 5.5 Consol. APAC 18.5 19 %
25.4 18 % 32.7 24 % 76.6 21 % Total $ 97.3
$ 136.2 $ 135.8
$ 369.3
2017 Sales by
Geographic Region and Segment ($ in millions)
Q1
%
of Total
Q2
%
of Total
Q3
%
of Total
Q4
%
of Total
2017
%
of Total
Americas:
Hydraulics $ 24.7 $ 28.2 $ 25.3 $ 25.6 $ 103.8 Electronics
22.6 24.5 26.8 21.1 95.0 Consol.
Americas 47.3 58 % 52.7 59 % 52.1 59 % 46.7 56 % 198.8 58 % EMEA:
Hydraulics 17.1 16.6 16.1 16.4 66.2 Electronics 3.0
2.6 2.9 2.4 10.9 Consol. EMEA 20.1 25 % 19.2
22 % 19.0 22 % 18.8 22 % 77.1 22 % APAC: Hydraulics 12.3 16.0 15.2
17.1 60.6 Electronics 1.7 1.4 1.7 1.5
6.3 Consol. APAC 14.0 17 % 17.4 19 %
16.9 19 % 18.6 22 % 66.9 20 % Total $ 81.4
$ 89.3 $ 88.0
$ 84.1 $ 342.8
HELIOS TECHNOLOGIES Non-GAAP Adjusted Operating
Income RECONCILIATION (In thousands)
(Unaudited)
Three Months Ended Nine Months Ended
September 29 September 30 September 29
September 30 2018 2017 2018
2017 GAAP operating income $ 19,246
$ 17,402 $ 53,503 $
53,887 Acquisition-related amortization of intangible assets
6,989 1,977 16,993 6,204 Acquisition-related amortization of
inventory step-up 2,092 - 5,217 1,774 Acquisition and
financing-related expenses 668 - 5,595 200 Restructuring charges
- - 170 -
Non-GAAP adjusted operating income $ 28,995
$ 19,379 $ 81,478
$ 62,065 GAAP operating margin 14.2 % 19.8 %
14.5 % 20.8 % Non-GAAP adjusted operating margin 21.3 % 22.0 % 22.1
% 24.0 %
Non-GAAP Net Income RECONCILIATION
(in thousands)
(Unaudited)
Three Months Ended Nine Months
Ended September 29 September 30
September 29 September 30 2018
2017 2018 2017 Net income $
11,599 $ 11,295 $ 30,306
$ 28,790 Acquisition-related amortization of
inventory step-up 2,092 - 5,217 1,774 Acquisition and
financing-related expenses 668 - 5,595 200 Restructuring charges -
- 170 - Foreign currency forward contract loss - - 2,535 - Change
in fair value of contingent consideration 275 664 928 8,855 Tax
effect of above (565 ) (219 ) (3,322 )
(3,574 )
Adjusted net income $ 14,069
$ 11,740 $ 41,429
$ 36,045 Adjusted net income per diluted
share $ 0.44 $ 0.43
$ 1.33 $ 1.33
Adjusted EBITDA RECONCILIATION (in thousands)
(Unaudited)
Three Months Ended Nine Months Ended
September 29 September 30 September 29
September 30 2018 2017 2018
2017 Net income $ 11,599 $
11,295 $ 30,306 $ 28,790
Interest expense (income), net 4,622 1,121 9,256 2,710 Income tax
provision 2,651 4,683 9,058 13,231 Depreciation and amortization
11,725 4,704 28,801
14,559
EBITDA 30,597 21,803
77,421 59,290 Acquisition-related amortization of
inventory step-up 2,092 - 5,217 1,774 Acquisition and
financing-related expenses 668 - 5,595 200 Restructuring charges -
- 170 - Foreign currency forward contract loss - - 2,535 - Change
in fair value of contingent consideration 275
664 928 8,855
Adjusted
EBITDA $ 33,632 $ 22,467
$ 91,866 $ 70,119
Adjusted EBITDA margin 24.8 % 25.5 % 24.9 % 27.1 %
Non-GAAP Financial Measures:
Adjusted operating income, adjusted operating margin, adjusted
EBITDA, adjusted EBITDA margin, adjusted net income and adjusted
net income per diluted share are not measures determined in
accordance with generally accepted accounting principles in the
United States, commonly known as GAAP. Nevertheless, Helios
believes that providing non-GAAP information such as adjusted
operating income, adjusted operating margin, adjusted EBITDA,
adjusted EBITDA margin, adjusted net income and adjusted net income
per diluted share are important for investors and other readers of
Helios’ financial statements, as they are used as analytical
indicators by Helios’ management to better understand operating
performance. Because adjusted operating income, adjusted operating
margin, adjusted EBITDA, adjusted EBITDA margin, adjusted net
income and adjusted net income per diluted share are non-GAAP
measures and are thus susceptible to varying calculations, adjusted
operating income, adjusted operating margin, adjusted EBITDA,
adjusted EBITDA margin, adjusted net income and adjusted net income
per diluted share, as presented, may not be directly comparable to
other similarly titled measures used by other companies.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181105005862/en/
Karen L. Howard / Deborah K. PawlowskiKei Advisors LLC(716)
843-3942 / (716) 843-3908khoward@keiadvisors.com /
dpawlowski@keiadvisors.com
Sun Hydraulics Corp. (NASDAQ:SNHY)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Sun Hydraulics Corp. (NASDAQ:SNHY)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024