Altra Holdings, Inc.
) reported improved year-over-year results for the first-quarter
of 2014. Adjusted earnings per share of 48 cents increased 6.7%
year over year but missed the Zacks Consensus Estimate of 50
cents by 4.0%.
On a GAAP basis, the company reported earnings per share of 41
cents, down from the year-ago quarter earnings of 44 cents.
Net sales increased 13.5% year over year to $210.1 million in
the first quarter. Reported revenues beat the Zacks Consensus
Estimate of $208.0 million marginally. The improvement in
revenues was primarily due to contribution from the Svendborg
acquisition. Excluding the acquisitions, the company's revenues
increased 2.7% year over year to $190.1 million.
Altra Holdings recorded a gross profit margin of 29.4%,
decreasing 60 basis points (bps) year over year. Selling, general
and administrative (SG&A) expenses were $38.3 million, up
17.9% year over year. Adjusted income from operations for the
quarter was $22.2 million, against $20.1 million in the first
quarter of 2013.
Balance Sheet/Cash Flow
Cash and cash equivalents at the end of first-quarter 2014
were $61.8 million, compared with $63.6 million at the end of the
preceding quarter. Long-term debt at the end of the quarter stood
at $249.1 million, against $261.3 million in the fourth quarter
In the reported quarter, Altra generated cash of $19.1 million
from operating activities, compared with $9.3 million generated
in the year-ago comparable quarter. The company incurred capital
expenditure of $5.6 million in the quarter, compared with $4.5
million a year ago.
Management believes that its strategic initiatives along with
the acquisition of Svendborg helped offset the decline caused by
unfavorable weather in North America. Moreover, it is expected
that the strategic cost-control initiatives will improve earnings
in the quarters ahead.
In light of the same, Altra has maintained its previous
guidance. The company expects revenues in the range of $800.0 to
$825.0 million in 2014. Adjusted earnings per share are
anticipated to be within $1.85 to $2.00 range. Tax rate in 2014
is expected in the 31% to 33% range.
Additionally, capital expenditure expectations in 2014 are
kept in the range of $28.0 to $30.0 million and depreciation and
amortization in the $34.0 to $36.0 million range.
Other Stocks to Consider
Altra currently carries a Zacks Rank #3 (Hold). Some
better-ranked stocks worth a look in the industry include
The Middleby Corporation
). While Kadant and Middleby sport a Zacks Rank #1 (Strong Buy),
IDEX has a Zacks Rank #2 (Buy).
ALTRA HOLDINGS (AIMC): Free Stock Analysis
IDEX CORP (IEX): Free Stock Analysis Report
KADANT INC (KAI): Free Stock Analysis Report
MIDDLEBY CORP (MIDD): Free Stock Analysis
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