Allient reports 34% operating income growth
Allient Inc. reported its Q4 '23 revenue increased 15% to a record $578.6 million with organic growth of 13% on a constant currency basis. The financial results include the Sierramotion Inc. acquisition, which was completed in September 2023.
The company said it achieved record gross margin of 31.7% in 2023, 40 basis point expansion year over year.
Other highlights included:
- Generated a record $45.0 million of cash from operations in 2023 and reduced debt balance by $17.1 million
- Fourth quarter 2023 demonstrated continued progress
- Revenue grew 8% with organic growth of 6% on a constant currency basis
- Gross margin expanded 40 basis points to 31.5%
- Fourth quarter net income per diluted share increased 13% to $0.26 per diluted share; Adjusted net income per diluted share improved $0.12 to $0.55
- Subsequent to year-end, extended the maturity on the existing revolving credit facility
“With a backdrop of macro uncertainty and other challenges, the Allient team once again delivered on a number of successes during the past year,” commented Dick Warzala, chairman and CEO. “We embarked on our next stage of growth with a refined strategy and new name while continuing to drive organic growth at more than double the industry and executing on key acquisitions. We added Sierramotion to advance our integrated motion solutions strategy and extend our reach into key target markets in 2023 and acquired SNC Manufacturing in early January 2024. SNC was our first tuck in acquisition for our Power technology pillar. Ultimately, our top-line growth combined with margin expansion translated into stronger earnings and a record level of cash generation enabling us to further strengthen our balance sheet.
“We are intent upon creating stronger earnings momentum with our Simplify to Accelerate strategy," he continued. "2024 is the year to drive out redundant costs, realign the organization to consolidate like businesses, rationalize our footprint and ultimately simplify our operating structure. By rethinking how we operate, we believe we can accelerate our efforts to achieve top-tier financial performance. While some of the actions will take time to fully execute, there is a strong sense of urgency throughout the organization to deliver on our goals. The year will have its challenges given the changing dynamics of our backlog, which is right-sizing as supply chains improve and customer order patterns normalize; as well as the unknown impacts of the ongoing geopolitical disruptions. However, it also presents the opportunity to reduce our working capital requirements and strengthen cash flow. Finally, we are well situated as we realign the organization to support the significant opportunities that we are bidding on across our targeted verticals.”
Allient’s “Simplify to Accelerate” strategy is centered on three high-level strategic initiatives:
- Realign and right-size the Company’s footprint to better align with its markets and customers. Initiatives are already underway and are expected to continue with earnest throughout 2024 and beyond.
- Reinforce lean manufacturing disciplines throughout the Company to accelerate margin expansion.
- Focus on working capital reduction to drive additional cash generation and de-lever the balance sheet.
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