BRAINTREE, Mass., Feb. 12, 2021 (GLOBE NEWSWIRE) -- Altra Industrial Motion Corp. (Nasdaq: AIMC), a leading global manufacturer and supplier of motion control, power transmission and automation products, today announced unaudited financial results for the fourth quarter ended December 31, 2020.

Financial Highlights

• Fourth-quarter 2020 net sales were $453.2 million, up 2.6% from the $441.9 million in the fourth quarter of 2019. Fiscal year 2020 net sales were $1.726 billion, slightly above the high end of the Company’s previously provided guidance range. Fourth-quarter 2020 organic sales were up 30 basis points for the combined business compared with the fourth quarter of 2019.
• Fourth-quarter 2020 Power Transmission Technologies (“PTT”) segment sales were down 5.1% and Automation & Specialty (“A&S”) segment sales were up 10.2%. Excluding the impact of foreign currency translation, PTT segment sales were down 7.6% and A&S segment sales were up 8.2% compared with the prior year.*
• Fourth-quarter net income was $31.2 million, or $0.48 per diluted share, compared with $37.3 million, or $0.58 per diluted share, in the fourth quarter of 2019. Non-GAAP net income in the fourth quarter of 2020 was $49.6 million, or $0.76 per diluted share. This is compared with non-GAAP net income of $42.7 million, or $0.66 per diluted share, in the fourth quarter of 2019.*
• Fiscal year 2020 net income was a loss of $25.5 million, or a loss of $0.39 per share and non-GAAP net income was $186.9 million, or $2.88 per diluted share, our best performance ever.*
• Non-GAAP adjusted EBITDA in the fourth quarter of 2020 was $96.1 million, or 21.2% of net sales, compared with $89.4 million, or 20.2% of net sales, in the fourth quarter of 2019.*
• Operating income margin in the fourth quarter of 2020 was 12.8% compared with 11.8% in the fourth quarter of 2019. Non-GAAP operating income margin in the fourth quarter of 2020 was 17.2%, compared with 16.4% in the fourth quarter of 2019.*
• Cash flow from operations for the year ended December 31, 2020 was $262.5 million, compared with cash flow from operations of $255.9 million for the prior year end. Non-GAAP Free Cash Flow for the year ended December 31, 2020 was $228.8 million, compared with Non-GAAP Free Cash Flow of $204.2 million for the prior year end. Non-GAAP Adjusted Free Cash Flow, which excludes the impact of the interest rate swap termination payment, was $263.5 million and $204.2 million for the years ended December 31, 2020 and 2019, respectively.*
• Paid down $70.0 million on the Company’s outstanding term loan in the fourth quarter of 2020, bringing total debt pay down to $160 million in 2020 and $310 million since the closing of the A&S merger on October 1, 2018. At the end of the fourth quarter, Altra’s cash balance and availability under the revolving credit facility were $254.4 million and $295.5 million, respectively.

Management Comments

“We ended the year with an exceptional fourth quarter marked by careful cost management, strong cash flow generation and significant progress de-levering the balance sheet,” said Carl Christenson, Altra’s Chairman and Chief Executive Officer. “By leveraging our market position, diversified portfolio and demand improvements in several markets – including wind and class 8 trucks in China – we exceeded our revenue expectations for the quarter. Additionally, through our focus on cost containment and by leveraging Altra’s world-class business system, we grew margins and delivered excellent working capital performance in the quarter.

“On a full-year basis, the broad diversity of our end markets and our ability to act nimbly to control costs through the pandemic allowed us to deliver outstanding performance. We generated $263.5 million in Non-GAAP Adjusted free cash flow which allowed us to pay down $160 million of debt in 2020 and exit the year with Net Debt to Non-GAAP Adjusted EBITDA leverage below 3.2x – far exceeding our expectations and advancing us toward our historical levels of 2.0x to 3.0x.*

“What was abundantly clear through the events of 2020 is that our people are our greatest asset. I am incredibly proud of the resilience and agility demonstrated by the Altra team as they focused on maintaining safe working environments through a global pandemic while also serving our customers with our innovative solutions and delivering these exceptional financial results,” Christenson continued.

“As we look to the year ahead, our strategic priorities continue to be managing costs, driving margin enhancement, de-levering our balance sheet and positioning Altra to grow and thrive as a premier industrial company for the long term.”

Business Outlook

“We are taking a cautious approach to our initial outlook for 2021 due to the ongoing uncertainty related to the duration of the COVID-19 pandemic and timing of a broad economic recovery,” continued Christenson. “We are hopeful that market conditions improve sooner than our guidance currently assumes and will revisit our outlook appropriately as we gain better visibility. We remain confident that we have the right talent, financial discipline and market strength to continue to navigate the current environment while advancing our strategic priorities to solidify Altra as a world-class premier industrial company.”

The following guidance reflects management’s best estimate and practical assessment of the financial impact of COVID-19 to the Company’s business, at this time. This guidance assumes the general industrial economy will not begin a full recovery until late in 2021. In addition, the guidance assumes that approximately $40 million of cost savings realized in 2020 will phase back in throughout 2021, with the full effect of the costs coming back by the second half of the year.

Altra is providing guidance for full year 2021 as follows:

• Full-year 2021 sales in the range of $1,790 million to $1,830 million
• GAAP diluted EPS in the range of $1.97 to $2.10
• Non-GAAP diluted EPS in the range of $2.95 to $3.15*
• Non-GAAP adjusted EBITDA in the range of $370.0 million to $385.0 million*
• Tax rate for the full year of approximately 20% to 23% before discrete items
• Capital expenditures in the range of $45 million to $50 million
• Depreciation and amortization in the range of $120 million to $125 million
• Non-GAAP Adjusted Free cash flow in the range of $185 million to $210 million*

*Reconciliations of Non-GAAP Disclosures

(Amounts in Millions of Dollars, except per share information)

*Reconciliation of Non-GAAP Net Income:

About Altra Industrial Motion Corp.

Altra Industrial Motion Corp. is a premier industrial global manufacturer and supplier of highly engineered motion control, automation, power transmission, and engine braking systems and components. Altra's portfolio consists of 27 well-respected brands including Bauer Gear Motor, Boston Gear, Jacobs Vehicle Systems, Kollmorgen, Portescap, Stromag, Svendborg Brakes, TB Wood's, Thomson and Warner Electric. Headquartered in Braintree, Massachusetts, Altra has approximately 9,400 employees and 48 production facilities in 16 countries around the world.