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Altra Delivers Record 2012 Results

Business Outlook

"Looking ahead, while we do not expect substantial end market growth in 2013, we plan to significantly enhance our bottom line performance due to a number of strategic actions," said Christenson. "In addition to the cost savings and productivity improvement initiatives we completed in 2012, we expect that new products and programs that we have been developing should contribute to our performance in the coming year. We also have a strong balance sheet with the dry powder necessary to execute on our acquisition strategy."

The Company currently is forecasting sales in the range of $740 to $750 million and non-GAAP diluted EPS of $1.75 to $1.85 for 2013. Altra expects its tax rate for the full year to be approximately 32% to 34% before discrete items. *The Company expects capital expenditures in the range of $22 to $25 million, and depreciation and amortization in the range of $29 to $31 million. For the first quarter of 2013, the Company expects a difficult year-over-year comparison as the current quarter includes 5% fewer shipping days than the same quarter a year ago. 

The Company will host an investor conference call to discuss its unaudited fourth-quarter financial results today, February 14, 2013, at 10:00 AM ET. The public is invited to listen to the conference call by dialing (877) 407-8293 domestically or (201) 689-8349 for international access and asking to participate in the ALTRA conference call. A live webcast of the call will be available in the "Investor Relations" section of www.altramotion.com . Individuals may download charts that will be used during the call at www.altramotion.com  under "Events & Presentations" in the "Investor Relations" section. The charts will be available after earnings are released. A replay of the recorded conference call will be available at the conclusion of the call on February 14, through midnight on February 21, 2013. To listen to the replay, dial (877) 660-6853 domestically or (201) 612-7415 for international access (replay ID # 408780). A webcast replay also will be available at  www.altramotion.com .

   
Altra Holdings, Inc.  
                 
         
Consolidated Statements of Income (Loss) Data: Quarter Ended   Year to Date Ended  
In Thousands of Dollars, except per share amounts   December 31, 2012   December 31, 2011   December 31, 2012   December 31, 2011  
  (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)  
                 
Net sales  $ 177,174    $ 171,717    $ 731,990    $ 674,812  
Cost of sales 123,312   124,573   513,442   478,394  
Gross profit  $ 53,862    $ 47,144    $ 218,548    $ 196,418  
Gross profit as a percent of net sales 30.4%   27.5%   29.9%   29.1%  
Selling, general & administrative expenses  32,388    29,370    127,044    113,375  
Research and development expenses  2,665    3,065    11,457    10,609  
Restructuring Charges  3,186    --    3,196    --  
Income from operations  $ 15,623    $ 14,709    $ 76,851    $ 72,434  
Income from operations as a percent of net sales 8.8%   8.6%   10.5%   10.7%  
Interest expense, net  21,875    6,021    40,790    24,035  
Other non-operating expense (income), net  (132)    637    1,702    (32)  
                 
Income (loss) before income taxes  $ (6,120)    $ 8,051    $ 34,359    $ 48,431  
Provision (benefit) for income taxes  (682)    2,156    10,154    10,756  
Income tax rate 11.1%   26.8%   29.6%   22.2%  
Net income (loss)  (5,438)    5,895    24,205    37,675  
 Net loss attributable to non-controlling interest  59    --    88    --  
Net income (loss) attributable to Altra Holdings, Inc.  $ (5,379)    $ 5,895    $ 24,293    $ 37,675  
                 
                 
Weighted Average common shares outstanding                
Basic  26,675   26,596   26,632   26,526  
Diluted 26,708   26,621   26,737   26,689  
                 
Net income (loss) per share                
Basic  $ (0.20)    $ 0.22    $ 0.91    $ 1.42  
Diluted  $ (0.20)    $ 0.22    $ 0.91    $ 1.41  
                 
Reconciliation of Non-GAAP Income From Operations:                
                 
Income from operations  $ 15,623    $ 14,709    $ 76,851    $ 72,434  
                 
Restructuring costs  3,186    --     3,196    3,067  
Amortization of inventory fair value adjustment  --     --     122    --   
Acquisition related expenses  114    328    537    --   
Non-GAAP income from operations  $ 18,923    $ 15,037    $ 80,706    $ 75,501  
                 
Reconciliation of Non-GAAP Net Income (Loss):                
                 
Net income (loss)  $ (5,379)    $ 5,895    $ 24,293    $ 37,675  
                 
Amortization of inventory fair value adjustment  --     --     122    --   
Acquisition related expenses  114    328    537    3,067  
Restructuring costs  3,186    --     3,196    --   
Premium and deferred financing expense and original issue discount eliminated on the redeemed debt  17,475    222    18,765    767  
Tax impact of above adjustments  (5,900)    (176)    (6,466)    (1,227)  
Tax benefit from discrete items  --     --     --     (3,631)  
Non-GAAP net income  $ 9,496    $ 6,269    $ 40,447    $ 36,651  
                 
                 
Non-GAAP diluted earnings per share  $ 0.36 (1)  $ 0.24 (2)  $ 1.52 (3)  $ 1.38 (4)
                 
                 
(1) - tax impact is calculated by multiplying the estimated effective tax rate for the period of 28.4% by the above items      
(2) - tax impact is calculated by multiplying the estimated effective tax rate for the period of 32.0% by the above items      
(3) - tax impact is calculated by multiplying the estimated effective tax rate for the period of 28.6% by the above items      
(4) - tax impact is calculated by multiplying the estimated effective tax rate for the period of 32.0% by the above items      
   
   
Consolidated Balance Sheets  
In Thousands of Dollars December 31, 2012 December 31, 2011
   (unaudited)   
Assets:    
Current Assets    
Cash and cash equivalents  85,154  92,515
Trade receivables, net  92,933  91,859
Inventories  123,776  125,970
Deferred income taxes  8,918  5,856
Income tax receivable  6,397  7,299
Prepaid expenses and other current assets  6,218  7,141
Total current assets  323,396  330,640
Property, plant and equipment, net  138,094  123,464
Intangible assets, net  76,098  77,108
Goodwill  88,225  83,799
Deferred income taxes  1,150  1,614
Other non-current assets, net  6,076  13,360
Total assets  $ 633,039  $ 629,985
     
Liabilities and stockholders' equity    
Current liabilities    
Accounts payable  43,042  52,768
Accrued payroll  19,893  19,734
Accruals and other current liabilities  33,796  28,798
Deferred income taxes  34  118
Current portion of long-term debt  9,135  688
Total current liabilities  105,900  102,106
Long-term debt, less current portion and net of unaccreted discount   238,460  263,361
Deferred income taxes  38,821  35,798
Pension liabilities  14,529  12,896
Other post retirement benefits  230  296
Long-term taxes payable  1,118  6,227
Other long-term liabilities  730  905
Redeemable non-controlling interest  1,239  --
Total stockholders' equity  232,012  208,396
Total liabilities and stockholders' equity  $ 633,039  $ 629,985
   
   
   
In Thousands of Dollars Year to Date Ended 
  December 31, 2012 December 31, 2011
  (Unaudited)
Cash flows from operating activities    
Net income   $ 24,205  $ 37,675
Adjustments to reconcile net income to net cash flows:    
Depreciation   20,537  18,403
Amortization of intangible assets  6,839  6,280
Amortization and write-offs of deferred financing costs  6,006  1,833
(Gain) Loss on foreign currency, net  (125)  843
Accretion and write-off of debt discount and premium  4,869  2,696
Loss on disposal/ impairment of fixed assets  251  287
Amortization of inventory fair value adjustment  122  581
Stock-based compensation  2,696  2,471
Provision (benefit) for deferred taxes  (625)  4,879
Changes in assets and liabilities:    
Trade receivables  836  (9,379)
Inventories  4,084  (19,948)
Accounts payable and accrued liabilities  (6,640)  8,839
Other current assets and liabilities  1,077  (1,344)
Other operating assets and liabilities  (4,032)  (7,215)
Net cash provided by operating activities  60,100  46,901
Cash flows from investing activities    
Purchase of property, plant and equipment  (31,346)  (22,242)
Proceeds from sale of Stratford Facility  --  331
Proceeds from sale of Chattanooga Facility  --  1,484
Acquisition of Bauer, net of $41 cash received  --  (69,460)
Acquisition of Lamiflex, net of $68 cash received   (7,424)  --
Net cash used in investing activities  (38,770)  (89,887)
Cash flows from financing activities    
Payment of debt issuance costs  (2,454)  (3,674)
Purchase of 8 1/ 8 Senior Secured Notes  (198,045)  (11,955)
Proceeds from issuance of Convertible Notes  --  85,000
Proceeds from Term Loan Facility and Revolving Credit Facility  179,304  --
Proceeds from Construction Loan  1,100  --
Shares surrendered for tax withholdings  (949)  (944)
Redemption of variable rate demand revenue bonds related to the San Marcos facility  (3,000)  --
Redemption of variable rate demand revenue bonds related to the Chattanooga facility  --   (2,290)
Dividend Payments  (4,304)  --
Payment on mortgages and other  (1,199)  (547)
Net payments on capital leases  (333)  (825)
 Net cash provided by (used in) financing activities  (29,880)  64,765
Effect of exchange rate changes on cash and cash equivalents  1,189  (1,987)
 Net change in cash and cash equivalents  (7,361)  19,792
Cash and cash equivalents at beginning of year  92,515  72,723
Cash and cash equivalents at end of period  $ 85,154  $ 92,515
     
Reconciliation to free cash flow:    
Net cash provided by operating activities  60,100  46,901
Purchase of property, plant and equipment  (31,346)  (22,242)
     
Free cash flow  $ 28,754  $ 24,659

About Altra Holdings

Altra Holdings, Inc., through its wholly-owned subsidiary Altra Industrial Motion, Inc., is a leading global designer, producer and marketer of a wide range of electromechanical power transmission and motion control products. The company brings together strong brands covering over 40 product lines with production facilities in nine countries. Our leading brands include Boston Gear, Warner Electric, TB Wood's, Formsprag Clutch, Wichita Clutch, Ameridrives Couplings, Kilian Manufacturing, Marland Clutch, Nuttall Gear, Stieber Clutch, Twiflex Limited, Bibby Transmissions, Matrix International, Inertia Dynamics, Huco-Dynatork, Warner Linear, Bauer Gear Motor and Powerflex.

Stock quotes in this article: AIMC 

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