ALLIENT INC
For the period ended Jun 30, 2024. Filed Aug 7, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 7, 2024
ALNT$81.32+7.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-08.
0001558370-24-007342
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0001558370-24-011363
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 49 previous paragraphs and 63 current paragraphs.
19 unchanged; 26 reworded; 15 added; 4 removed; 0 previous and 3 current paragraphs rearranged.
Tables are not compared: 7 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
In the second quarter of 2024, we began to implement the first phase of our Simplify to Accelerate NOW strategy. We executed certain actions that streamline our operations to enhance efficiency as well as drive profitability. Expected cost savings of the first phase of this initiative are anticipated to be approximately $5.0 million annually. As part of this phase, the Company expects to realign production and rationalize our footprint over the course of the second half of 2024. In addition, the Company has implemented reductions to its workforce in many operations throughout the world, to reflect the reduction in sales it is forecasting for the remainder of 2024. The costs associated with this phase are expected to be approximately $1.5 million, primarily related to severance and related expenses.
Current report
ORDER BOOKINGS AND BACKLOG: Bookings remained consistent in the second quarter 2024 compared to 2023, due primarily to a 0.9% increase in volume offset by a 0.6% decrease in foreign currency impact.
Current report
BUSINESS DEVELOPMENT COSTS: Business development costs include acquisition and integration related costs as well as restructuring and business realignment costs. The increase in business development costs in the second quarter of 2024 compared to 2023 primarily reflects restructuring-related costs associated with our Simplify to Accelrate NOW strategy, which contributed $1,469 of the increase over the prior year period.
Current report
Six months ended June 30, 2024 compared to six months ended June 30, 2023
Current report
REVENUES: The decrease in revenues for the year to date 2024 reflects decreases primarily within Vehicle and Medical markets. Decreases in revenues compared to the prior year period are largely impacted by elevated shipments during the prior year period as supply chains normalized, combined with elevated inventory levels and slowing demand at our customers in the current period, partially offset by revenue contributes from the 2023 and 2024 acquisitions. Our revenues for the period ended June 30, 2024 was comprised of 55% to U.S. customers and 45% to customers primarily in Europe, Canada and Asia-Pacific. The overall decrease in revenue was due to a 3% volume decrease as well as an insignificant unfavorable currency impact. The acquisitions completed in 2023 and 2024 contributed an incremental $20,383 of revenue in the six months ended June 30, 2024. Organic revenue decreased 10.1% during the year to date 2024.
Current report
ORDER BOOKINGS AND BACKLOG: Orders remained consistent for the year to date 2024 compared to 2023, and included a 0.2% decrease in foreign currency impact as well as a 0.1% decrease in volume.
Current report
GROSS PROFIT AND GROSS MARGIN: Gross profit decreased to $88,053 for year to date 2024 from $91,811 in 2023 driven by lower sales volume, and gross margins decreased to 31.1% for 2024, compared to 31.4% for 2023. The decrease in gross margin percentage was driven by lower fixed cost absorption on lower sales volumes, as well as the gross margin impact of our most recent acquisition.
Current report
SELLING EXPENSES: Selling expenses increased 5% during year to date 2024 compared to 2023 primarily due to increased costs in connection with our recently completed acquisitions. Selling expenses as a percentage of revenues were comparable at 5% and 4% during year to date 2024 and 2023, respectively.
Current report
ENGINEERING AND DEVELOPMENT EXPENSES: Engineering and development expenses increased by 5% during the year to date 2024 compared to 2023. The increase is due primarily to the inclusion and nature of our recent acquisitions. As a percentage of revenues, engineering and development expenses were 8% for the six months ended June 30, 2024 compared to 7% for the six months ended June 30, 2023.
Current report
BUSINESS DEVELOPMENT COSTS: Business development costs include acquisition and integration related costs as well as restructuring and business realignment costs. The increase in business development costs for year to date 2024 compared to 2023 primarily reflects restructuring-related costs associated with our Simplify to Accelerate NOW strategy, which contributed $1,469 of the increase over the prior year period.
Current report
AMORTIZATION OF INTANGIBLE ASSETS: Amortization of intangible assets increased for year to date 2024 compared to 2023 due to incremental intangible amortization attributable to the 2023 and 2024 acquisitions.
Current report
INTEREST EXPENSE: Interest expense increased by 10% for the year to date 2024 compared to 2023 primarily due to an increase in interest rates, as well as, to a lesser extent, an increase in average debt levels to fund acquisitions and capital expenditures. The increase in interest expense is partially offset in part by interest rate swaps.
Current report
INCOME TAXES: For the six months ended June 30, 2024 and 2023, the effective income tax rate was 21.6% and 23.6%, respectively. The effective tax rate for the six months ended June 30, 2024 does not include any significant discrete tax benefits or costs. For the six months ended June 30, 2023, the effective tax rate includes a discrete tax benefit of (2.2%), primarily related to the reversal of uncertain tax positions and share-based payment awards.
Current report
NET INCOME AND ADJUSTED NET INCOME: Net income decreased during year to date 2024 compared to 2023, primarily relating to lower sales volume, including a decrease in organic revenue, as well as an increase in operating expenses, primarily in business development, relating to the restructuring costs incurred. Adjusted net income for the six month periods ended June 30, 2024 and 2023 was $14,403 and $18,405, respectively. Adjusted diluted earnings per share for year to date 2024 and 2023 were $0.87 and $1.14, respectively. Adjusted net income and adjusted diluted earnings per share are non-GAAP measures. See information included in “Non–GAAP Measures” below for a discussion of the non-GAAP measure and reconciliation of net income to Adjusted net income and diluted earnings per share to Adjusted diluted earnings per share.
Current report
During the six months ended June 30, 2024, the increase in cash provided by operating activities is due to collections on accounts receivable, largely offset by increase in accounts payable and accrued liabilities, as well as lower sales.
Removed paragraphs (4)
Previous report
ORDER BOOKINGS AND BACKLOG: The 1% decrease in bookings in the first quarter 2024 compared to 2023 is due primarily to a 1% decrease in volume as foreign currency impact was not significant. The decrease in bookings during the first quarter 2024 compared to 2023 is primarily due the normalization of order patterns.
Previous report
BUSINESS DEVELOPMENT COSTS: The increase in business development costs in the first quarter of 2024 compared to 2023 is largely due to costs incurred for current period acquisition activities.
Previous report
NET INCOME AND ADJUSTED NET INCOME: Net income increased during the first quarter of 2024 compared to 2023, primarily reflecting our gross profit increase, and partially offset by inflationary pressures as well as an increase in interest expense.
Previous report
During the three months ended March 31, 2024, the increase in cash provided by operating activities is primarily due to increased sales and more efficient conversion of working capital with the easing of supply chain constraints.
Reworded paragraphs (26)
Previous wording
All statements contained herein that are not statements of historical fact constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements, and may contain the word “believe,” “anticipate,” “expect,” “project,” “intend,” “will continue,” “will likely result,” “should” or words or phrases of similar meaning. Forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to differ materially from the expected results described in the forward-looking statements. The risks and uncertainties include those associated with: the domestic and foreign general business and economic conditions in the markets we serve, including political and currency risks and adverse changes in local legal and regulatory environments; the severity, magnitude and duration of the impact of COVID-19, including impacts from businesses’ and governments’ responses to the ongoing impact on our operations and personnel, and on commercial activity and demand across our and our customers’ businesses, and on global supply chains; our inability to predict the extent to which COVID-19 and related impacts will continue to adversely impact our business operations, financial performance, results of operations, financial position, the prices of our securities and the achievement of our strategic objectives; the geopolitical conflicts and their ability to create instability and economic uncertainty; the introduction of new technologies and the impact of competitive products; the ability to protect the Company’s intellectual property; our ability to sustain, manage or forecast our growth and product acceptance to accurately align capacity with demand; the continued success of our customers and the ability to realize the full amounts reflected in our order backlog as revenue; the loss of significant customers or the enforceability of the Company’s contracts in connection with a merger, acquisition, disposition, bankruptcy, or otherwise; our ability to meet the technical specifications of our customers; the performance of subcontractors or suppliers and the continued availability of parts and components; failure of a key information technology system, process or site or a breach of information security, including a cybersecurity breach, ransomware, or failure of one or more key information technology systems, networks, processes, associated sites or service providers; changes in government regulations; the availability of financing and our access to capital markets, borrowings, or financial transactions to hedge certain risks; the ability to attract and retain qualified personnel, and in particular those who can design new applications and products for the motion industry; the ability to implement our corporate strategies designed for growth…
Excerpt shortened here; the source contains the full paragraph.
Current wording
All statements contained herein that are not statements of historical fact constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements, and may contain the word “believe,” “anticipate,” “expect,” “project,” “intend,” “will continue,” “will likely result,” “should” or words or phrases of similar meaning. Forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to differ materially from the expected results described in the forward-looking statements. The risks and uncertainties include those associated with: the domestic and foreign general business and economic conditions in the markets we serve, including political and currency risks and adverse changes in local legal and regulatory environments; the severity, magnitude and duration of the impact of global pandemics, including impacts from businesses’ and governments’ responses to the impact on our operations and personnel, and on commercial activity and demand across our and our customers’ businesses, and on global supply chains; our inability to predict the extent to which global pandemic impacts will adversely impact our business operations, financial performance, results of operations, financial position, the prices of our securities and the achievement of our strategic objectives; the geopolitical conflicts and their ability to create instability and economic uncertainty; the introduction of new technologies and the impact of competitive products; the ability to protect the Company’s intellectual property; our ability to sustain, manage or forecast our growth and product acceptance to accurately align capacity with demand; the continued success of our customers and the ability to realize the full amounts reflected in our order backlog as revenue; the loss of significant customers or the enforceability of the Company’s contracts in connection with a merger, acquisition, disposition, bankruptcy, or otherwise; our ability to meet the technical specifications of our customers; the performance of subcontractors or suppliers and the continued availability of parts and components; failure of a key information technology system, process or site or a breach of information security, including a cybersecurity breach, ransomware, or failure of one or more key information technology systems, networks, processes, associated sites or service providers; changes in government regulations; the availability of financing and our access to capital markets, borrowings, or financial transactions to hedge certain risks; the ability to attract and retain qualified personnel, and in particular those who can design new applications and products for the motion industry; the ability to implement our corporate strategies designed for growth and improvement …
Excerpt shortened here; the source contains the full paragraph.
Previous wording
Beginning in 2022 and continuing through 2023 and into 2024, inflation negatively impacted our input costs and pricing, primarily for labor and materials. We, our customers, and our suppliers also experienced the effect of a higher interest rate environment. Gross domestic product growth slowed throughout 2022 largely due to the widespread impacts of inflation, increasing interest rates, and more restrictive financial conditions. While gross domestic products began to rebound in 2023, the factors contributing to supply chain disruptions, labor shortages, and global inflation remained persistent into 2023, along with elevated geopolitical instability. There are varying degrees of impact on our customers, and thus our business around the world, with Europe experiencing the greatest amount of stress in 2023.
Current wording
Beginning in 2022 and continuing through 2023 and into 2024, inflation negatively impacted our input costs and pricing, primarily for labor and materials. We, our customers, and our suppliers also experienced the effect of a higher interest rate environment in those periods. Gross domestic product growth slowed throughout 2022 largely due to the widespread impacts of inflation, increasing interest rates, and more restrictive financial conditions. While gross domestic product began to rebound in 2023, the factors contributing to supply chain disruptions, labor shortages, and global inflation remained persistent into 2023, along with elevated geopolitical instability. There were varying degrees of impact on our customers, and thus our business around the world, with Europe experiencing the greatest amount of stress in 2023 and into 2024.
Previous wording
The current geopolitical conflicts are creating higher levels of economic uncertainty and increased volatility with respect to energy prices, interest rates, our supply chain, and certain customer ordering patterns. We are closely monitoring the developments and continue to adjust our production platform to react to changing customer ordering patterns and realize efficiencies. The impact of the conflicts on our operational and financial performance will depend on future developments that cannot be predicted.
Current wording
The current geopolitical conflicts are creating higher levels of economic uncertainty and increased volatility with respect to energy prices, interest rates, our supply chain, and certain customer ordering patterns. We have been closely monitoring the developments and continue to adjust our production platform to react to changing customer ordering patterns and realize efficiencies. The ordering patterns of our aerospace and defense customers have been particularly impacted by changes in sovereign governments priorities and budgets. The impact of the conflicts on our operational and financial performance will depend on future developments that cannot be predicted.
Previous wording
Changing order patterns, supply chain disruptions, and the evolution of our business have required us to carry larger inventories in 2024 and 2023 to meet the needs of our customers, especially as they return to a new normal after the disruptions caused by the COVID-19 pandemic. In addition, aerospace and defense customers ordering patterns continue to change quickly based on the geopolitical conflicts and sovereign governments priorities and budgets to address those conflicts.
Current wording
Changing order patterns, supply chain disruptions, and the evolution of our business have required us to carry larger inventories in 2024 and 2023 to meet the needs of our customers, especially as they began to return to a new normal after the disruptions caused by the COVID-19 pandemic. In the second quarter of 2024, there were more abrupt and larger changes to order patterns as our customers reacted to elevated inventory levels and slowing customer demand. Several customers, particularly in the Vehicle and Industrial markets, reduced demand or pushed out delivery dates for their orders, and we experienced and acceleration of our customers’ actions during the second quarter of 2024.
Previous wording
We recently adopted the “Simplify to Accelerate” strategy. This strategy is being implemented to help create earnings momentum as the Company seeks to rethink operations to reduce working capital requirements and strengthen cash flow through realignment and rationalization.
Current wording
As the pace of our customers’ actions increased, we recently advanced our “Simplify to Accelerate NOW” strategy. This strategy is being implemented to reduce costs and help create earnings momentum as the Company seeks to enhance efficiency, reduce working capital requirements and strengthen cash flow through realignment and rationalization of our resources.
Previous wording
The Simplify to Accelerate strategy is centered on three high-level strategic initiatives:
Current wording
The Simplify to Accelerate NOW strategy is centered on three high-level strategic initiatives:
Previous wording
REVENUES: The increase in revenues during the first quarter 2024 reflects increases primarily within Industrial and Vehicle markets. Our revenue for the first quarter of 2024 was comprised of 58% to U.S. customers and 42% to customers primarily in Europe, Canada, and Asia-Pacific. The overall increase in revenue was primarily due to volume increases and foreign currency impact was not significant. The acquisitions completed in 2023 and 2024 contributed an incremental $9,489 of revenue in the three months ended March 31, 2024. Organic revenue decreased (5.9)% during the first quarter 2024, primarily in the Medical and Aerospace and Defense markets. See information included in “Non– GAAP Measures” below for a discussion of the non-GAAP measure and reconciliation of revenue to organic revenue.
Current wording
REVENUES: The decrease in revenues during the second quarter 2024 reflects decreases in each of the target markets, most significantly within Vehicle and Industrial markets. Decreases in revenues compared to the prior year period are largely impacted by elevated shipments during the prior year period as supply chains normalized, combined with elevated inventory levels and slowing demand at our customers in the current period, partially offset by revenue contributed from the 2023 and 2024 acquisitions. Our revenue for the second quarter of 2024 was comprised of 52% to U.S. customers and 48% to customers primarily in Europe, Canada, and Asia-Pacific. The overall decrease in revenue was primarily due to volume decreases as foreign currency impact was not significant. The acquisitions completed in 2023 and 2024 contributed an incremental $10,893 of revenue in the three months ended June 30, 2024. Organic revenue decreased 14.2% during the second quarter 2024.
Previous wording
GROSS PROFIT AND GROSS MARGIN: Gross profit increased to $47,377 in the first quarter of 2024 from $45,834 in the first quarter of 2023 driven by higher sales volume, and gross margins increased to 32.3% for 2024, compared to 31.5% for 2023. The increase in gross margin percentage was driven by cost absorption on higher sales volume, pricing, and favorable mix, when comparing the year to date periods.
Current wording
GROSS PROFIT AND GROSS MARGIN: Gross profit decreased to $40,676 in the second quarter of 2024 from $45,977 in the second quarter of 2023 driven by lower sales volume, and gross margins decreased to 29.9% for 2024, compared to 31.3% for 2023. The decrease in gross margin percentage was driven by lower fixed cost absorption on lower sales volumes, as well as the gross margin impact of our most recent acquisition.
Previous wording
SELLING EXPENSES: Selling expenses increased 4% during the first quarter of 2024 compared to 2023 primarily due to increased employee compensation related costs as well as sales commissions related to the increased revenue. Selling expenses as a percentage of revenues were 4% in each of the three months ended March 31, 2024 and 2023.
Current wording
SELLING EXPENSES: Selling expenses increased 6% during the second quarter of 2024 compared to 2023 primarily due to increased costs in connection with our recently completed acquisitions. Selling expenses as a percentage of revenues were 5% and 4% in the three months ended June 30, 2024 and 2023, respectively.
Previous wording
GENERAL AND ADMINISTRATIVE EXPENSES: General and administrative expenses decreased by 3% during the first quarter 2024 compared to 2023 due primarily to lower employee compensation related costs. As a percentage of revenues, general and administrative expenses were 10% in the three months ended March 31, 2024 and 2023.
Current wording
GENERAL AND ADMINISTRATIVE EXPENSES: General and administrative expenses remained consistent during the second quarter 2024 compared to 2023 due primarily to increased costs in connection with our recently completed acquisitions, offset by lower incentive compensation. As a percentage of revenues, general and administrative expenses were 10% in the three months ended June 30, 2024 and 2023.
Previous wording
ENGINEERING AND DEVELOPMENT EXPENSES: Engineering and development expenses increased by 7% in the first quarter 2024 compared to 2023. The increase is primarily due to the continued ramp up of development projects to meet the future needs of our target markets, as well as supporting growing customer application development needs. As a percentage of revenues, engineering and development expenses were 8% and 7% for the three months ended March 31, 2024 and 2023, respectively.
Current wording
ENGINEERING AND DEVELOPMENT EXPENSES: Engineering and development expenses increased by 3% in the second quarter of 2024 compared to 2023. The increase is primarily due to the increased costs in connection with our recently completed acquisitions. As a percentage of revenues, engineering and development expenses were 8% and 7% for the three months ended June 30, 2024 and 2023, respectively.
Previous wording
AMORTIZATION OF INTANGIBLE ASSETS: Amortization of intangible assets increased 4% compared to the prior year period, primarily due to the presence of additional intangible assets from recent acquisition activity in the first quarter of 2024.
Current wording
AMORTIZATION OF INTANGIBLE ASSETS: Amortization of intangible assets remained consistent compared to the prior year period.
Previous wording
INTEREST EXPENSE: Interest expense increased in the first quarter of 2024 compared to 2023 is primarily due to higher interest rates, and, to a lesser extent, higher amortization of debt issuance costs. The increase in interest expense is partially offset by reductions to interest expense realized through our interest rate swaps.
Current wording
INTEREST EXPENSE: Interest expense increased in the second quarter of 2024 compared to 2023 due to higher interest rates and higher average debt balances compared to the prior year period. The increase in interest expense is partially offset by reductions to interest expense realized through our interest rate swaps.
Previous wording
INCOME TAXES: The effective income tax rate was 21.8% and 23.2% for the three months ended March 31, 2024 and 2023, respectively. The effective tax rate for each of the three months ended March 31, 2024 and 2023 includes discrete tax benefits of (2.3)% and (2.8)%, respectively, primarily related to the reversal of uncertain tax positions. The lower effective tax rate in the first quarter of 2024 as compared to the first quarter of 2023 is primarily due to the realization of certain deferred income tax assets that had been reserved in prior years, as well as the impact of the mix of foreign and domestic income. The Company expects its income tax rate for the full year 2024 to be approximately 21% to 23%.
Current wording
INCOME TAXES: The effective income tax rate was 20.6% and 23.9% for the three months ended June 30, 2024 and 2023, respectively. The lower effective tax rate in the second quarter of 2024 as compared to the second quarter of 2023 is primarily due to the realization of certain deferred income tax assets that had been reserved in prior years, as well as the impact of the mix of foreign and domestic income. The Company expects its income tax rate for the full year 2024 to be approximately 21% to 23%.
Previous wording
ADJUSTED NET INCOME: For the quarters ended March 31, 2024 and 2023 was $9,546 and $8,935, respectively. Adjusted diluted earnings per share for the first quarter of 2024 and 2023 were $0.58 and $0.55, respectively. Adjusted net income and adjusted diluted earnings per share are non-GAAP measures. See information included in “Non–GAAP Measures” below for a discussion of the non-GAAP measure and reconciliation of net income to adjusted net income and diluted earnings per share to adjusted diluted earnings per share.
Current wording
NET INCOME AND ADJUSTED NET INCOME: Net income decreased during the second quarter of 2024 compared to 2023, primarily relating to lower sales volume, including adecrease in organic revenue, as well as an increase in operating expenses, primarily in business development, relating to the restructuring related costs incurred. Adjusted net income for the quarters ended June 30, 2024 and 2023 was $4,857 and $9,471, respectively. Adjusted diluted earnings per share for the second quarter of 2024 and 2023 were $0.29 and $0.58, respectively. Adjusted net income and adjusted diluted earnings per share are non-GAAP measures. See information included in “Non–GAAP Measures” below for a discussion of the non-GAAP measure and reconciliation of net income to adjusted net income and diluted earnings per share to adjusted diluted earnings per share.
Previous wording
EBITDA AND ADJUSTED EBITDA: EBITDA was $18,594 for the first quarter of 2024 compared to $17,347 for the first quarter of 2023. Adjusted EBITDA was $20,042 and $19,025 for the first quarters of 2024 and 2023, respectively. EBITDA and Adjusted EBITDA are non-GAAP measures. EBITDA consists of income before interest expense, provision for income taxes, and depreciation and amortization. Adjusted EBITDA also excludes stock-based compensation expense, foreign currency gain/loss and certain other items. Refer to information included in “Non-GAAP Measures” below for a discussion of the non-GAAP measure and a reconciliation of net income to EBITDA and Adjusted EBITDA.
Current wording
EBITDA AND ADJUSTED EBITDA: EBITDA was $11,249 for the second quarter of 2024 compared to $18,452 for the second quarter of 2023. Adjusted EBITDA was $13,931 and $20,381 for the second quarters of 2024 and 2023, respectively. EBITDA and Adjusted EBITDA are non-GAAP measures. EBITDA consists of income before interest expense, provision for income taxes, and depreciation and amortization. Adjusted EBITDA also excludes stock-based compensation expense, foreign currency gain/loss and certain other items. Refer to information included in “Non-GAAP Measures” below for a discussion of the non-GAAP measure and a reconciliation of net income to EBITDA and Adjusted EBITDA.
Previous wording
The Company’s calculation of organic revenue for the three months ended March 31, 2024 is as follows:
Current wording
The Company’s calculation of organic revenue for the three and six months ended June 30, 2024 is as follows:
Previous wording
The Company’s calculation of EBITDA and Adjusted EBITDA for the three months ended March 31, 2024 and 2023 is as follows (in thousands):
Current wording
The Company’s calculation of EBITDA and Adjusted EBITDA for the three and six months ended June 30, 2024 and 2023 is as follows (in thousands):
Previous wording
The Company’s calculation of Adjusted net income and Adjusted diluted earnings per share for the three months ended March 31, 2024 and 2023 is as follows (in thousands except per share amounts):
Current wording
The Company’s calculation of Adjusted net income and Adjusted diluted earnings per share for the three and six months ended June 30, 2024 and 2023 is as follows (in thousands except per share amounts):
Previous wording
The Company’s liquidity position as measured by cash and cash equivalents decreased by $387 to a balance of $31,514 at March 31, 2024 from December 31, 2023.
Current wording
The Company’s liquidity position as measured by cash and cash equivalents decreased by $609 to a balance of $31,292 at June 30, 2024 from December 31, 2023.
Previous wording
Of the $31,514 of cash and cash equivalents at March 31, 2024, $21,146 was located at our foreign subsidiaries and may be subject to withholding tax if repatriated back to the U.S.
Current wording
Of the $31,292 of cash and cash equivalents at June 30, 2024, $26,372 was located at our foreign subsidiaries and may be subject to withholding tax if repatriated back to the U.S.
Previous wording
The increase in cash used in investing activities in the first quarter of 2024 relates to $20 million in cash paid for the acquisition of SNC. In the first quarters of 2024 and 2023, $6,250 of cash was paid relating to the 2022 Spectrum acquisition. Cash used in investing activities in the three months ended March 31, 2024 includes $2,973 for purchases of property and equipment compared to $3,554 during the three months ended March 31, 2023. Capital expenditures are expected to be between $13,000 and $17,000 for the full year 2024.
Current wording
The increase in cash used in investing activities in the six months ended June 30, 2024 relates to $20 million in cash paid for the acquisition of SNC. For the year to date 2024 and 2023, $6,250 of cash was paid relating to the 2022 Spectrum acquisition. Cash used in investing activities in the six months ended June 30, 2024 includes $5,328 for purchases of property and equipment compared to
Previous wording
The increase in cash provided by financing activities during the three months ended March 31, 2024 is primarily due toborrowings of $20,000 to fund the SNC acquisition. Debt payments of $3,116 were made during the three months ended March 31, 2023. The $50,000 Notes issued in March 2024 were used to pay down the 2024 Amended Revolving Facility. As of March 31, 2024, we had $183,962 of obligations under the 2024 Amended Revolving Facility, excluding deferred financing costs.
Current wording
The increase in cash provided by financing activities during the six months ended June 30, 2024 is primarily due toborrowings of $20,000 to fund the SNC acquisition. Debt payments of $3,000 were made during the six months ended June 30, 2023. The $50,000 Notes issued in March 2024 were used to pay down the Revolving Facility. As of June 30, 2024, we had $180,962 of obligations under the Revolving Facility, excluding deferred financing costs.
Previous wording
As of March 31, 2024, the unused 2024 Amended Revolving Facility was $96,038. The amount available to borrow may be limited by our debt and EBITDA levels, which impacts our covenant calculations. The 2024 Amended Revolving Facility matures March 1, 2029. The Senior A Series Notes, under the 2024 Note Payable Agreement, are due March 21, 2031.
Current wording
As of June 30, 2024, the unused Revolving Facility was $99,038. The amount available to borrow may be limited by our debt and EBITDA levels, which impacts our covenant calculations. The Revolving Facility matures March 1, 2029. The Series A Senior Notes, under the 2024 Note Payable Agreement, are due March 21, 2031.
Previous wording
The Company declared dividends of $0.03 per share during the three months ended March 31, 2024 and $0.025 per share during the three months ended March 31, 2023. The Company’s working capital, capital expenditure and dividend requirements are expected to be funded from cash provided by operations and amounts available under the Amended Credit Agreement.
Current wording
The Company declared dividends of $0.06 per share during the six months ended June 30, 2024 and $0.055 per share during the six months ended June 30, 2023. The Company’s working capital, capital expenditure and dividend requirements are expected to be funded from cash provided by operations and amounts available under the Amended Credit Agreement.
Previous wording
We believe our diverse markets, our strong market position in many of our businesses, and the steps we have taken to strengthen our balance sheet, such as retaining cash to support shorter term needs and amending our revolving credit facility leaves us well-positioned to manage our business. We continually assess our liquidity and cash positions taking geopolitical and other uncertainties into consideration. Based on our analysis, we believe our existing balances of cash, our currently anticipated operating cash flows, and our available financing under agreements in place will be more than sufficient to meet our cash needs arising in the ordinary course of business for the next twelve months.
Current wording
We believe our diverse markets, our strong market position in many of our businesses, and the steps we have taken to strengthen our balance sheet, such as retaining cash to support shorter term needs and amending our revolving credit facility leaves us well-positioned to manage our business. We continually assess our liquidity and cash positions taking geopolitical and other market uncertainties into consideration. Based on our analysis, we believe our existing balances of cash, our currently anticipated operating cash flows, and our available financing under agreements in place will be more than sufficient to meet our cash needs arising in the ordinary course of business for the next twelve months.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
GENERAL AND ADMINISTRATIVE EXPENSES: General and administrative expenses decreased by 1% during the six months ended June 30, 2024 compared to the same period of 2023 due primarily to a decrease in incentive compensation. As a percentage of revenues, general and administrative expenses were 10% in each of 2024 and 2023.
Current report — wording carried from elsewhere
EBITDA AND ADJUSTED EBITDA: EBITDA was $29,843 for year to date 2024 compared to $35,799 for year to date 2023. Adjusted EBITDA was $33,971 and $39,406 for year to date 2024 and 2023, respectively. EBITDA and Adjusted EBITDA are non-GAAP measures. EBITDA consists of income before interest expense, provision for income taxes, and depreciation and amortization. Adjusted EBITDA also excludes stock-based compensation expense, foreign currency gain/loss and certain other items. Refer to information included in “Non-GAAP Measures” below for a discussion of the non-GAAP measure and a reconciliation of net income to EBITDA and Adjusted EBITDA.
Current report — wording carried from elsewhere
$6,118 during the six months ended June 30, 2023. Capital expenditures are expected to be between $11,000 and $15,000 for the full year 2024.