Altra Holdings, Inc.
) reported improved year-over-year results for the third-quarter
of 2013. The company reported adjusted earnings per share of 40
cents, registering an increase of 17.6% year over year. Earnings
also beat the Zacks Consensus Estimate of 37 cents by 8.1%.
On a GAAP basis, the company reported earnings per share of 39
cents, beating the year-ago earnings of 32 cents by 21.9%.
Net sales increased 0.6% year over year to $175.4 million in
the third quarter. Reported revenues marginally beat the Zacks
Consensus Estimate of $175.0 million. The improvement in revenues
comes after two quarters of year-over-year revenue declines.
Altra Holdings recorded a gross profit margin of 30.6%,
increasing 80 basis points (bps) year over year. Selling, general
and administrative (SG&A) expense was $31.7 million, up 2.9%
year over year. Adjusted income from operations for the quarter
was $19.3 million, against $18.6 million in the third quarter of
Refinancing activities undertaken in the fourth quarter of
2012 helped the company reduce its interest expense by 61.3% year
over year to $2.6 million.
Balance Sheet/Cash Flow
Cash and cash equivalents at the end of third-quarter 2013
were $70.3 million, compared with $61.5 million at the end of the
preceding quarter. Long-term debt at the end of the quarter stood
at $181.1 million, against $195.4 million in the second quarter
Nine months ended Sep 28, 2013, Altra generated cash flow from
operations of $62.2 million, compared with cash flow of $54.5
million in the nine months ended Sep 29, 2012. The company
incurred capital expenditure of $14.4 million in the first nine
months of 2013, compared with $25.2 million in the year-ago
Altra expects to witness organic growth in 2014 on the back of
acquisitions. In 2014, management believes the company is well
positioned to expand its geographical reach as well as product
portfolio. Additionally, the company expects to achieve success
with its strategic initiatives to control costs, and thereby
Altra now expects revenues in the range of $710.0 million to
$720.0 million in 2013, against $715.0 million to $730.0 million
as expected earlier. The company has narrowed its expected
earnings per share range by increasing the lower limit. Altra now
expects adjusted earnings per share in the range of $1.58 to
$1.64, compared with previously expected range of $1.52 to
Capital expenditure expectations in 2013 have been slashed to
a range of $19.0 million to $21.0 million, from $20.0 million to
Other Stocks to Consider
Altra currently carries a Zacks Rank #4 (Sell). Other stocks
worth a look in the industry include
). All these stocks carry a Zacks Rank #2 (Buy).
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