Subjects: EARNINGS, MISCELLANEOUS
Altra Reports Fourth-Quarter 2017 Results
BRAINTREE, Mass., Feb. 21, 2018 (GLOBE NEWSWIRE) -- Altra Industrial Motion Corp. (Nasdaq:AIMC), a global manufacturer and marketer of electromechanical power transmission and motion control products, today announced unaudited financial results for the fourth quarter ended December 31, 2017.
Financial Highlights
- Fourth-quarter 2017 net sales were $223.3 million, up 29.4% from $172.6 million in the fourth quarter of 2016. Excluding the impact of the Stromag acquisition, fourth-quarter net sales were up 9.1% from the same quarter of 2016.
- Fourth-quarter net income was $12.4 million, or $0.43 per diluted share, compared with $1.7 million, or $0.06 per diluted share, in the fourth quarter of 2016.
- Non-GAAP net income in Q4 2017 was $13.8 million, or $0.47 per diluted share, compared with $10.6 million, or $0.41 per diluted share, in the prior year quarter.*
- Cash flow from operations of $80.6 million led to free cash flow of $47.8 million for the year.*
*Reconciliation of Non-GAAP Net Income:
| Quarter Ended | Year to Date Ended | |||||||||||||||||||
| December 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | |||||||||||||||||
| Net Income | $ | 12,440 | $ | 1,668 | $ | 51,427 | $ | 25,140 | ||||||||||||
| Restructuring and consolidation costs | $ | 367 | $ | 3,258 | $ | 4,143 | $ | 10,333 | ||||||||||||
| Loss on extinguishment of convertible debt | - | 1,989 | 1,797 | 1,989 | ||||||||||||||||
| Impairment of intangible assets | - | 6,568 | - | 6,568 | ||||||||||||||||
| Legal fees associated with pursuit of unfair trade remedy | - | - | - | 742 | ||||||||||||||||
| Amortization of inventory fair value adjustment | - | - | 2,347 | - | ||||||||||||||||
| Loss on partial settlement of pension plans | 1,720 | - | 1,720 | - | ||||||||||||||||
| Acquisition related expenses | 491 | 1,219 | 2,165 | 2,349 | ||||||||||||||||
| Tax impact of above adjustments | (766 | ) | (4,071 | ) | (3,611 | ) | (6,661 | ) | ||||||||||||
| Revaluation of U.S. net deferred taxes | (7,818 | ) | - | (7,818 | ) | - | ||||||||||||||
| Tax on foreign earnings deemed to be repatriated | 7,374 | - | 7,374 | - | ||||||||||||||||
| Non-GAAP net income* | $ | 13,808 | $ | 10,631 | $ | 59,544 | $ | 40,460 | ||||||||||||
| Non-GAAP diluted earnings per share* | $ | 0.47 | $ | 0.41 | $ | 2.05 | $ | 1.56 | ||||||||||||
*Reconciliation of Free Cash Flow:
| Year to Date Ended | ||||||||
| December 31, 2017 | December 31, 2016 | |||||||
| Net cash flows from operating activities | 80,581 | 76,641 | ||||||
| Purchase of property, plant and equipment | (32,826 | ) | (18,941 | ) | ||||
| Free cash flow * | $ | 47,755 | $ | 57,700 | ||||
*Reconciliation of Non-GAAP Operating Margin:
| Quarter Ended | Year to Date Ended | |||||||||||||||
| December 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | |||||||||||||
| Income from Operations | $ | 18,903 | $ | 6,025 | $ | 80,987 | $ | 47,546 | ||||||||
| Restructuring and consolidation costs | $ | 367 | $ | 3,258 | $ | 4,143 | $ | 10,333 | ||||||||
| Impairment of Intangible assets | - | 6,568 | - | 6,568 | ||||||||||||
| Legal fees associated with pursuit of unfair trade remedy | - | - | - | 742 | ||||||||||||
| Loss on partial settlement of pension plans | 1,720 | - | 1,720 | - | ||||||||||||
| Amortization of inventory fair value adjustment | - | - | $ | 2,347 | - | |||||||||||
| Acquisition related expenses | 491 | 1,219 | 2,165 | 2,349 | ||||||||||||
| Non-GAAP income from operations* | 21,481 | 17,070 | 91,362 | 67,538 | ||||||||||||
| Non-GAAP Income from operations as a percent of net sales | 9.6 | % | 9.9 | % | 10.4 | % | 9.5 | % | ||||||||
Management Comments
"We ended the year with record sales and Non-GAAP diluted earnings per share, and solid momentum as we move into 2018" said Carl Christenson, Altra's Chairman and CEO. "For Q4, we grew sales by 29.4% or by 9.1% excluding acquisitions, marking the fifth consecutive quarter of year-over-year growth. For the year, we reported sales growth of 23.7%, or 4.2% excluding acquisitions. We also executed on significant strategic initiatives during the year that drove an improvement in Non-GAAP operating income and will set us up for long term profitable growth. In 2017, GAAP diluted EPS grew 84% to $1.78 and non-GAAP diluted EPS increased 31.4% to an annual record of $2.05."*
"We are excited by our prospects as we look ahead to 2018," added Christenson. "Bookings are positive across the vast majority of our end markets as the industrial economy continues to improve. We have accomplished a great deal in the past few years to position Altra for the upturn and capitalize on the current demand momentum. Notwithstanding the recent volatility in the equity markets, we look forward to moving ahead in what is shaping up to be a great year."
Business Outlook
Altra is providing guidance for full year 2018. The Company expects full-year 2018 sales in the range of $895 to $915 million, GAAP diluted EPS in the range of $2.12 to $2.20, and non-GAAP diluted EPS guidance in the range of $2.30 to $2.43. The Company currently expects its tax rate for the full year to be approximately 25% to 27% before discrete items, capital expenditures in the range of $25 to $27 million, and depreciation and amortization in the range of $38 to $40 million.*
| *Reconciliation of 2018 Non-GAAP Net Income and Diluted EPS Guidance (Amounts in millions except per share information) | Fiscal Year 2018 | Fiscal Year 2018 Diluted EPS | ||
| Net Income per Share Diluted | $61.8 - $64.1 | $2.12 - $2.20 | ||
| Restructuring and consolidation costs | 2.0 - 4.0 | |||
| Loss on partial settlement of pension plan | 5.3 | |||
| Tax impact of above adjustments** | (1.9) - (2.4) | |||
| Non-GAAP Diluted EPS Guidance | $67.2 - $71.0 | $2.30 - $2.43 | ||
| (1) Adjustments are pre-tax, with net tax impact listed separately | ||||
| (2) Tax impact is calculated by multiplying the estimated effective tax rate for the period of 26.0% by the above items | ||||
Impact of Tax Legislation
For the fourth quarter, the Company is reporting a provisional $0.02 per share benefit to earnings as a result of the new tax legislation and has excluded this amount from the Non-GAAP diluted earnings per share calculation. These one-time adjustments resulted in a net tax benefit of $0.4 million which is comprised of a charge of $7.4 million related to the deemed repatriation of foreign earnings, and a benefit of $7.8 million for the revaluation of deferred taxes due to the federal rate changes. Going forward, due to the lowering of the U.S. corporate income tax rate, the Company expects its consolidated tax rate to be approximately 25% to 27%.
Conference Call
The Company will conduct an investor conference call to discuss its unaudited fourth-quarter and full-year 2017 financial results today, February 21, 2018 at 10:00 a.m. ET. The public is invited to listen to the conference call by dialing (877) 407-8293 domestically or (201) 689-8349 for international access. 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 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 through midnight on March 7, 2018. To listen to the replay, dial (877) 660-6853 domestically or (201) 612-7415 for international access (conference ID # 13676208). A webcast replay also will be available.
| Altra Industrial Motion Corp. | |||||||||||||||||||||
| Consolidated Statements of Income Data: | Quarter Ended | Year to Date Ended | |||||||||||||||||||
| In Thousands of Dollars, except per share amounts | December 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | |||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||
| Net sales | $ | 223,322 | $ | 172,647 | $ | 876,737 | $ | 708,906 | |||||||||||||
| Cost of sales | 154,852 | 117,520 | 600,961 | 486,774 | |||||||||||||||||
| Gross profit | $ | 68,470 | $ | 55,127 | $ | 275,776 | $ | 222,132 | |||||||||||||
| Gross profit as a percent of net sales | 30.7 | % | 31.9 | % | 31.5 | % | 31.3 | % | |||||||||||||
| Selling, general & administrative expenses | 41,480 | 34,944 | 164,492 | 140,492 | |||||||||||||||||
| Research and development expenses | 6,000 | 4,332 | 24,434 | 17,677 | |||||||||||||||||
| Impairment of Intangible assets | - | 6,568 | - | 6,568 | |||||||||||||||||
| Restructuring Charges | 367 | 3,258 | 4,143 | 9,849 | |||||||||||||||||
| Loss on the partial settlement of pension plan | 1,720 | - | 1,720 | - | |||||||||||||||||
| Income from operations | $ | 18,903 | $ | 6,025 | $ | 80,987 | $ | 47,546 | |||||||||||||
| Income from operations as a percent of net sales | 8.5 | % | 3.5 | % | 9.2 | % | 6.7 | % | |||||||||||||
| Interest expense, net | 2,163 | 3,064 | 7,710 | 11,679 | |||||||||||||||||
| Loss on write-off of deferred financing and extinguishment of convertible debt | - | 1,989 | 1,797 | 1,989 | |||||||||||||||||
| Other non-operating expense (income), net | 323 | 431 | 353 | (7 | ) | ||||||||||||||||
| Income before income taxes | $ | 16,417 | $ | 541 | $ | 71,127 | $ | 33,885 | |||||||||||||
| Provision/(Benefit) for income taxes | 3,977 | (1,127 | ) | 19,700 | 8,745 | ||||||||||||||||
| Income tax rate | 24.2 | % | -208.3 | % | 27.7 | % | 25.8 | % | |||||||||||||
| Net income | 12,440 | 1,668 | 51,427 | 25,140 | |||||||||||||||||
| Weighted Average common shares outstanding: | |||||||||||||||||||||
| Basic | 29,011 | 25,889 | 28,949 | 25,719 | |||||||||||||||||
| Diluted - includes impact of convertible debt redemptions | 29,120 | 25,916 | 29,064 | 25,872 | |||||||||||||||||
| Net income per share: | |||||||||||||||||||||
| Basic | $ | 0.43 | $ | 0.06 | $ | 1.78 | $ | 0.97 | |||||||||||||
| Diluted | $ | 0.43 | $ | 0.06 | $ | 1.78 | $ | 0.97 | |||||||||||||
| Reconciliation of Non-GAAP Income From Operations: | |||||||||||||||||||||
| Income from operations | $ | 18,903 | $ | 6,025 | $ | 80,987 | $ | 47,546 | |||||||||||||
| Restructuring and consolidation costs | 367 | 3,258 | 4,143 | 10,333 | |||||||||||||||||
| Legal fees associated with pursuit of unfair trade remedy | - | - | - | 742 | |||||||||||||||||
| Amortization of inventory fair value adjustment | - | - | 2,347 | - | |||||||||||||||||
| Impairment of Intangible assets | - | 6,568 | - | 6,568 | |||||||||||||||||
| Loss on partial settlement pension plan | 1,720 | - | 1,720 | - | |||||||||||||||||
| Acquisition related expenses | 491 | 1,219 | 2,165 | 2,349 | |||||||||||||||||
| Non-GAAP income from operations * | $ | 21,481 | $ | 17,070 | $ | 91,362 | $ | 67,538 | |||||||||||||
| Reconciliation of Non-GAAP Net Income: | |||||||||||||||||||||
| Net income | $ | 12,440 | $ | 1,668 | $ | 51,427 | $ | 25,140 | |||||||||||||
| Restructuring and consolidation costs | 367 | 3,258 | 4,143 | 10,333 | |||||||||||||||||
| Loss on extinguishment of convertible debt | - | 1,989 | 1,797 | 1,989 | |||||||||||||||||
| Legal fees associated with pursuit of unfair trade remedy | - | - | - | 742 | |||||||||||||||||
| Amortization of inventory fair value adjustment | - | - | 2,347 | - | |||||||||||||||||
| Loss on partial settlement of pension plan | 1,720 | - | 1,720 | - | |||||||||||||||||
| Impairment of Intangible assets | - | 6,568 | - | 6,568 | |||||||||||||||||
| Acquisition related expenses | 491 | 1,219 | 2,165 | 2,349 | |||||||||||||||||
| Tax impact of above adjustments | (766 | ) | (4,071 | ) | (3,611 | ) | (6,661 | ) | |||||||||||||
| Revaluation of U.S. net deferred taxes | (7,818 | ) | - | (7,818 | ) | - | |||||||||||||||
| Tax on foreign earnings deemed to be repatriated | 7,374 | - | 7,374 | - | |||||||||||||||||
| Non-GAAP net income * | $ | 13,808 | $ | 10,631 | $ | 59,544 | $ | 40,460 | |||||||||||||
| Non-GAAP diluted earnings per share * | $ | 0.47 | (1 | ) | $ | 0.41 | (2 | ) | $ | 2.05 | (3 | ) | $ | 1.56 | (4 | ) | |||||
| (1) - tax impact is calculated by multiplying the estimated effective tax rate for the period of 29.7% by the above items. | |||||||||||||||||||||
| (2) - tax impact for the above items is calculated by multiplying restructuring and consolidation costs, write-off of deferred financing and extinguishment of debt, and the impairment of intangible assets by the marginal tax rate plus acquisition related expense multiplied by the estimated effective tax rate for the period of 26.5% by the above items. | |||||||||||||||||||||
| (3) - tax impact is calculated by multiplying the estimated effective tax rate for the period of 29.7% by the above items | |||||||||||||||||||||
| (4) - tax impact is calculated by multiplying the estimated effective tax rate for the period of 30.3% by the above items | |||||||||||||||||||||
| Consolidated Balance Sheets | Years Ended December 31, | ||||||
| In Thousands of Dollars | 2017 | 2016 | |||||
| Assets: | |||||||
| Current Assets | |||||||
| Cash and cash equivalents | $ | 51,994 | $ | 69,118 | |||
| Trade receivables, net | 135,499 | 120,319 | |||||
| Inventories | 145,611 | 139,840 | |||||
| Income tax receivable | 6,634 | 607 | |||||
| Prepaid expenses and other current assets | 17,344 | 10,429 | |||||
| Assets held for sale | 1,081 | 3,874 | |||||
| Total current assets | 358,163 | 344,187 | |||||
| Property, plant and equipment, net | 191,918 | 177,043 | |||||
| Intangible assets, net | 159,613 | 154,683 | |||||
| Goodwill | 206,040 | 188,841 | |||||
| Deferred income taxes | 2,608 | 2,510 | |||||
| Other non-current assets, net | 2,315 | 2,560 | |||||
| Total assets | $ | 920,657 | $ | 869,824 | |||
| Liabilities and stockholders' equity | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 68,014 | $ | 60,845 | |||
| Accrued payroll | 32,091 | 31,302 | |||||
| Accruals and other current liabilities | 32,921 | 35,080 | |||||
| Income tax payable | 9,082 | 706 | |||||
| Current portion of long-term debt | 384 | 43,690 | |||||
| Total current liabilities | 142,492 | 171,623 | |||||
| Long-term debt, less current portion and net of unaccreted discount | 275,587 | 325,969 | |||||
| Deferred income taxes | 52,250 | 61,084 | |||||
| Pension liabilities | 25,038 | 23,691 | |||||
| Long-term taxes payable | 6,322 | 694 | |||||
| Other long-term liabilities | 22,263 | 3,415 | |||||
| Total stockholders' equity | 396,705 | 283,348 | |||||
| Total liabilities, and stockholders' equity | $ | 920,657 | $ | 869,824 | |||
| Reconciliation to operating working capital: | |||||||
| Trade receivables, net | 135,499 | 120,319 | |||||
| Inventories | 145,611 | 139,840 | |||||
| Accounts payable | (68,014 | ) | (60,845 | ) | |||
| Operating working capital * | $ | 213,096 | $ | 199,314 | |||
| Year to Date Ended | ||||||||||
| December 31, 2017 | December 31, 2016 | |||||||||
| Cash flows from operating activities | ||||||||||
| Net income | $ | 51,427 | $ | 25,140 | ||||||
| Adjustments to reconcile net income to net cash flows: | ||||||||||
| Depreciation | 26,511 | 21,604 | ||||||||
| Amortization of intangible assets | 9,514 | 8,294 | ||||||||
| Amortization and write-off of deferred financing costs | 599 | 802 | ||||||||
| Loss on foreign currency, net | 381 | 259 | ||||||||
| Amortization of inventory fair value adjustment | 2,347 | ? | ||||||||
| Accretion of debt discount, net | ? | 4,005 | ||||||||
| Loss on disposals and impairments | 584 | 8,273 | ||||||||
| Loss on extinguishment of debt | 1,797 | 1,989 | ||||||||
| Loss on partial settlement of pension plan | 1,720 | ? | ||||||||
| Benefit for deferred taxes | (8,012 | ) | (2,850 | ) | ||||||
| Stock based compensation | 5,274 | 4,230 | ||||||||
| Changes in assets and liabilities: | ||||||||||
| Trade receivables | (8,103 | ) | (4,140 | ) | ||||||
| Inventories | (2,379 | ) | 2,324 | |||||||
| Accounts payable and accrued liabilities | (2,994 | ) | 4,333 | |||||||
| Other current assets and liabilities | (3,178 | ) | 529 | |||||||
| Other operating assets and liabilities | 5,093 | 1,849 | ||||||||
| Net cash provided by operating activities | 80,581 | 76,641 | ||||||||
| Cash flows from investing activities | ||||||||||
| Purchase of property, plant and equipment | (32,826 | ) | (18,941 | ) | ||||||
| Proceeds from sale of property | 3,221 | ? | ||||||||
| Acquisition of Stromag, net of cash received of $8.8 million | 2,883 | (187,967 | ) | |||||||
| Net cash used in investing activities | (26,722 | ) | (206,908 | ) | ||||||
| Cash flows from financing activities | ||||||||||
| Payment of debt issuance costs | ? | (650 | ) | |||||||
| Payments on revolving credit facility | (79,536 | ) | (31,861 | ) | ||||||
| Dividend payments | (18,259 | ) | (11,667 | ) | ||||||
| Cash paid for convertible debt | (954 | ) | ? | |||||||
| Payments of equipment, working capital notes, mortgages and other debt | (1,168 | ) | (3,308 | ) | ||||||
| Proceeds from equipment, working capital notes, mortgages and other debt | ? | 2,729 | ||||||||
| Borrowing under revolving credit facility | 27,958 | 200,579 | ||||||||
| Purchases of common stock under share repurchase program | ? | (4,713 | ) | |||||||
| Shares surrendered for tax withholding | (2,089 | ) | (1,337 | ) | ||||||
| Net cash (used)/provided in financing activities | (74,048 | ) | 149,772 | |||||||
| Effect of exchange rate changes on cash and cash equivalents | 3,065 | (707 | ) | |||||||
| Net change in cash and cash equivalents | (17,124 | ) | 18,798 | |||||||
| Cash and cash equivalents at beginning of year | 69,118 | 50,320 | ||||||||
| Cash and cash equivalents at end of period | $ | 51,994 | $ | 69,118 | ||||||
| Reconciliation to free cash flow: | ||||||||||
| Year to Date Ended | ||||||||||
| December 31, 2017 | December 31, 2016 | |||||||||
| Net cash flows from operating activities | 80,581 | 76,641 | ||||||||
| Purchase of property, plant and equipment | (32,826 | ) | (18,941 | ) | ||||||
| Free cash flow * | $ | 47,755 | $ | 57,700 | ||||||
| Selected Segment Data | Quarter Ended December 31, | Year to Date Ended December 31, | |||||||||||||||
| In Thousands of Dollars, except per share amount | 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Net Sales: | |||||||||||||||||
| Couplings, Clutches & Brakes | $ | 114,577 | $ | 74,181 | $ | 441,887 | $ | 305,406 | |||||||||
| Electromagnetic Clutches & Brakes | 64,042 | 52,773 | 251,505 | 217,856 | |||||||||||||
| Gearing | 47,244 | 46,964 | 191,789 | 192,003 | |||||||||||||
| Eliminations | (2,541 | ) | (1,271 | ) | (8,444 | ) | (6,359 | ) | |||||||||
| Total | $ | 223,322 | $ | 172,647 | $ | 876,737 | $ | 708,906 | |||||||||
| Income from operations: | |||||||||||||||||
| Couplings, Clutches & Brakes | $ | 14,184 | $ | 7,068 | $ | 47,215 | $ | 27,509 | |||||||||
| Electromagnetic Clutches & Brakes | 5,880 | 6,287 | 27,774 | 26,406 | |||||||||||||
| Gearing | 4,434 | 5,438 | 22,238 | 22,718 | |||||||||||||
| Restructuring and consolidation costs | (367 | ) | (3,258 | ) | (4,143 | ) | (9,849 | ) | |||||||||
| Loss on the partial settlement of pension plan | (1,720 | ) | - | (1,720 | ) | - | |||||||||||
| Corporate* | (3,508 | ) | (9,510 | ) | (10,377 | ) | (19,238 | ) | |||||||||
| Total | $ | 18,903 | $ | 6,025 | $ | 80,987 | $ | 47,546 | |||||||||
*Quarter and Year to date period ended December 31, 2016 includes intangible asset impairment of $6.6 million.
About Altra Industrial Motion Corp
Altra Industrial Motion Corp., through its subsidiaries, 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 twelve countries. Altra's leading brands include Ameridrives Couplings, Bauer Gear Motor, Bibby Turboflex, Boston Gear, Delroyd Worm Gear, Formsprag Clutch, Guardian Couplings, Huco, Industrial Clutch, Inertia Dynamics, Kilian Manufacturing, Lamiflex Couplings, Marland Clutch, Matrix, Nuttall Gear, Stieber Clutch, Stromag, Svendborg Brakes, TB Wood's, Twiflex, Warner Electric, Warner Linear, and Wichita Clutch.
The Altra Industrial Motion Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4038.
* Discussion of Non-GAAP Financial Measures
As used in this release and the accompanying slides posted on the Company's website, non-GAAP diluted earnings per share, non-GAAP income from operations and non-GAAP net income are each calculated using either net income or income from operations that excludes acquisition related costs, restructuring costs, and other income or charges that management does not consider to be directly related to the Company's core operating performance. Non-GAAP operating margin is calculated using income from operations that excludes charges that management does not consider to be directly related to the Company's core operating performance. Non-GAAP diluted earnings per share is calculated by dividing non-GAAP net income by GAAP weighted average shares outstanding (diluted). Non-GAAP free cash flow is calculated by deducting purchases of property, plant and equipment from net cash flows from operating activities. Non-GAAP operating working capital is calculated by deducting accounts payable from net trade receivables plus inventories.
Altra believes that the presentation of non-GAAP net income, non-GAAP income from operations, non-GAAP operating margin, non-GAAP diluted earnings per share, non-GAAP free cash flow and non-GAAP operating working capital provides important supplemental information to management and investors regarding financial and business trends relating to the Company's financial condition and results of operations.
Forward-Looking Statements
All statements, other than statements of historical fact included in this release are forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, any statement that may predict, forecast, indicate or imply future results, performance, achievements or events. Forward-looking statements can generally be identified by phrases such as "believes," "expects," "potential," "continues," "may," "should," "seeks," "predicts," "anticipates," "intends," "projects," "estimates," "plans," "could," "designed", "should be," and other similar expressions that denote expectations of future or conditional events rather than statements of fact. Forward-looking statements also may relate to strategies, plans and objectives for, and potential results of, future operations, financial results, financial condition, business prospects, growth strategy and liquidity, and are based upon financial data, market assumptions and management's current business plans and beliefs or current estimates of future results or trends available only as of the time the statements are made, which may become out of date or incomplete. Forward-looking statements are inherently uncertain, and investors must recognize that events could differ significantly from our expectations. These statements include, but may not be limited to, our expectation of the improvements in the industrial economy, the statements under "Business Outlook," our expectations regarding economic conditions, our expectations regarding our tax rate and the Company's guidance for full year 2018.
In addition to the risks and uncertainties noted in this release, there are certain factors that could cause actual results to differ materially from those anticipated by some of the statements made. These include: (1) competitive pressures, (2) changes in economic conditions in the United States and abroad and the cyclical nature of our markets, (3) loss of distributors, (4) the ability to develop new products and respond to customer needs, (5) risks associated with international operations, including currency risks, (6) accuracy of estimated forecasts of OEM customers and the impact of the current global economic environment on our customers, (7) risks associated with a disruption to our supply chain, (8) fluctuations in the costs of raw materials used in our products, (9) product liability claims, (10) work stoppages and other labor issues, (11) changes in employment, environmental, tax and other laws and changes in the enforcement of laws, (12) loss of key management and other personnel, (13) risks associated with compliance with environmental laws, (14) the ability to successfully execute, manage and integrate key acquisitions and mergers, (15) failure to obtain or protect intellectual property rights, (16) risks associated with impairment of goodwill or intangibles assets, (17) failure of operating equipment or information technology infrastructure, (18) risks associated with our debt leverage and operating covenants under our debt instruments, (19) risks associated with restrictions contained in our Convertible Notes and Credit Facility, (20) risks associated with compliance with tax laws, (21) risks associated with the global recession and volatility and disruption in the global financial markets, (22) risks associated with implementation of our ERP system, (23) risks associated with the Svendborg, Guardian and Stromag acquisitions and integration and other acquisitions, (24) risks associated with certain minimum purchase agreements we have with suppliers, (25) risks associated with our exposure to variable interest rates and foreign currency exchange rates, (26) risks associated with interest rate swap contracts, (27) risks associated with our exposure to renewable energy markets, (28) risks related to regulations regarding conflict minerals, (29) risks related to restructuring and plant consolidations, and (30) other risks, uncertainties and other factors described in the Company's quarterly reports on Form 10-Q and annual reports on Form 10-K and in the Company's other filings with the U.S. Securities and Exchange Commission (SEC) or in materials incorporated therein by reference. Except as required by applicable law, Altra Industrial Motion Corp. does not intend to, update or alter its forward looking statements, whether as a result of new information, future events or otherwise. AIMC-E
CONTACT:
Altra Industrial Motion Corp.
Christian Storch, Chief Financial Officer
781-917-0541
[email protected]
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