Allient Reports Third Quarter 2024 Results; Simplify to Accelerate NOW Initiatives Drive Sequential Margin Expansion

Rhea-AI Summary

Allient (ALNT) reported Q3 2024 results with revenue of $125.2 million, down 14% year-over-year, and net income of $2.1 million. Gross margin was 31.4%, improving 150 basis points sequentially. The company implemented $10 million in annual cost savings through its Simplify to Accelerate NOW initiatives. Cash flow from operations reached $29.5 million year-to-date, with quarter-end cash of $37.1 million. Vehicle market sales declined 38%, while Industrial, Medical, and Aerospace & Defense markets also saw decreases. The company expects customer inventory adjustments to complete by early 2025, with normalized run rates by mid-year.

Positive

• Sequential margin improvements: gross margin up 150bps to 31.4%, operating margin up 170bps to 5.3%
• Implemented $10 million in annual cost savings
• Strong cash flow from operations of $29.5 million YTD
• Cash position increased to $37.1 million from $31.9 million at 2023 year-end
• Debt reduced by $5.5 million from previous quarter

Negative

• Revenue declined 14% YOY to $125.2 million
• Net income decreased to $2.1 million from $6.7 million YOY
• Vehicle market sales dropped 38%
• Leverage ratio at 3.32x as of September 30, 2024
• Orders decreased in Q3 2024 to $102.6 million from $154.9 million YOY

Insights

Financial Analyst

Q3 results reveal significant operational challenges with $125.2M revenue, down 14% YoY and net income of $2.1M ($0.13 EPS). The 31.4% gross margin, while down YoY, shows sequential improvement. The $10M cost reduction initiative is promising, but high leverage ratio of 3.53x required a covenant amendment. Declining orders ($102.6M in Q3) and shrinking backlog ($238.5M) signal continued weakness into Q4. Vehicle market sales dropped dramatically (38%), while industrial automation faces inventory destocking challenges. The debt position of $231.4M with net debt to capitalization at 41.6% warrants attention.

Market Research Analyst

Market dynamics point to significant headwinds across multiple sectors. Vehicle markets, particularly powersports, show severe contraction. Industrial automation faces inventory destocking challenges from major customers, though HVAC/data center demand remains resilient. Medical market weakness in fluid pumps and mobility sectors, coupled with timing-related aerospace defense declines, suggests broad-based market softness. Management's projection of inventory normalization by mid-2025 appears optimistic given current order trends and project delays attributed to election uncertainty and interest rate expectations.

• Third quarter performance: Revenue was $125.2 million with a gross margin of 31.4% and net income of $2.1 million
• Improved margins sequentially: Gross margin up 150 basis points to 31.4%, operating margin up 170 basis points to 5.3%, and adjusted EBITDA margin rose 130 basis points to 11.5%
• Strong cash flow: $29.5 million of cash generated from operations year-to-date and ended the quarter with $37.1 million of cash
• Cost reductions: Additional Simplify to Accelerate NOW efforts implemented, bringing total annual cost reductions to $10 million

BUFFALO, N.Y.--(BUSINESS WIRE)-- Allient Inc. (Nasdaq: ALNT) (“Allient” or the “Company”), a global designer and manufacturer of precision and specialty Motion, Controls and Power products and solutions for targeted industries and applications, today reported financial results for its third quarter ended September 30, 2024.

“Our focus on improving margin and operational efficiencies has driven solid sequential improvements, even as we navigate softer demand in key industrial and vehicle markets,” said Dick Warzala, Chairman and CEO. “The initial steps we have taken to streamline our operations and reduce costs through our Simplify to Accelerate NOW initiatives are yielding results, with improved margins and operational flexibility. We remain confident in our ability to align with market conditions and unlock further growth as we head into 2025.”

Mr. Warzala added, “As we look ahead, we expect the inventory adjustments by the majority of our customers to be substantially complete by early 2025, allowing for a return to more normalized run rates by mid-year. While we anticipate typical year-end seasonality and continued rebalancing in the fourth quarter, our strategic focus on operational improvements positions Allient to navigate near-term challenges and capitalize on future growth opportunities.”

Simplify to Accelerate NOW Initiatives

Allient continues to make significant progress with its Simplify to Accelerate NOW program, aimed at streamlining operations and driving sustainable cost reductions. The initiatives have already delivered measurable savings and is expected to contribute further to Allient’s financial and operational performance.

• $10 Million in Annualized Savings: To date, Allient has implemented $10 million in total annualized cost savings. The initial $5 million in savings were enacted in the late second quarter, with the remainder implemented since June 30, 2024.
• Operational Efficiencies: The program’s focus on refining the organizational structure, eliminating redundancies, and optimizing production processes has led to initial margin improvements, bolstering overall profitability.
• Enhanced Agility: By simplifying its operations, Allient aims to improve its speed to market, enhance customer service, and strengthen its competitive positioning across targeted industries.
• Future Cost Rationalization: Beyond the current $10 million in savings, Allient is actively identifying further opportunities to rationalize its cost structure in 2025, ensuring continued alignment with evolving market conditions and customer demands.

These initiatives are expected to position Allient to emerge from the current macroeconomic environment and industrial headwinds with stronger earnings power, improved operational flexibility, and enhanced capacity to capitalize on future growth opportunities.

Restructuring and related charges of $0.5 million were recognized in the third quarter of 2024, and $1.9 million have been recognized year to date. The total costs of the cost reduction efforts implemented to date are expected to be between approximately $1.9 million and $2.4 million. The charges are primarily cash and are related mostly to severance costs.

Third Quarter 2024 Results (Narrative compares with prior-year period unless otherwise noted)

Revenue decreased 14%, or $20.1 million, to $125.2 million. The impact of foreign currency exchange rate fluctuations was favorable by $0.6 million. Sales to U.S. customers were 56% of total sales compared with 61% in the third quarter last year, with the balance of sales to customers primarily in Europe, Canada and Asia-Pacific. See the attached table for a description of non-GAAP financial measures and reconciliation of revenue excluding foreign currency exchange rate fluctuations.

Sales in the Vehicle markets decreased 38% largely due to an accelerated decline in demand for powersports. Industrial markets sales were down 9% as strengthened power quality sales, largely to the HVAC/data center market, and incremental sales from the recent acquisition were more than offset by lower demand in industrial automation due to significant inventory destocking by the Company’s largest customer. Medical market revenue decreased 6%, with surgical instrument demand unable to offset lower demand in fluid pump markets and continued softness in medical mobility. Aerospace & Defense sales declined 8%, reflecting the timing of certain programs within the industry.

Gross margin was 31.4%, down 130 basis points from the prior-year period, which reflected lower volume and expected margin dilution from the most recent acquisition. Sequentially, gross margin improved 150 basis points largely due to an improved mix.

Operating costs and expenses were 26.1% of revenue, up 160 basis points, of which 40 basis points was attributable to restructuring and business realignment costs of $0.5 million. As a result, operating income was $6.6 million, or 5.3% of revenue, compared with $11.9 million, or 8.2% of revenue. Sequentially, operating costs and expenses as a percent of revenue improved 20 basis points given the Company’s implemented reduction efforts at the end of the second quarter, partially offset by the restructuring costs.

The effective income tax rate was 22.6% and 23.0% for the third quarter of 2024 and 2023, respectively. The Company expects its income tax rate for the full year 2024 to be approximately 21% to 23%.

Net income was $2.1 million, or $0.13 per diluted share, compared with $6.7 million, or $0.41 per diluted share, in the prior-year period and $1.2 million, or $0.07 per diluted share, in the sequential second quarter. Adjusted net income, which excludes amortization of intangible assets related to acquisitions, business development costs and other non-recurring items, was $5.1 million, or $0.31 per diluted share. This compared with $10.0 million, or $0.61 per diluted share, in the third quarter of 2023 and $4.9 million, or $0.29 per diluted share, in the second quarter of 2024. See the attached tables for a description of non-GAAP financial measures and reconciliation table for Adjusted Net Income and Diluted Earnings per Share.

Earnings before interest, taxes, depreciation, amortization, stock-based compensation expense, business development costs, foreign currency gains/losses, and restructuring and business realignment costs (“Adjusted EBITDA”) was $14.4 million, or 11.5% of revenue, compared with $20.8 million, or 14.3% of revenue. Sequentially, Adjusted EBITDA increased 4%, or $0.5 million, and as a percent of revenue was up 130 basis points. The Company believes that, when used in conjunction with measures prepared in accordance with U.S. generally accepted accounting principles, Adjusted EBITDA, which is a non-GAAP measure, helps in the understanding of its operating performance. See the attached table for a description of non-GAAP financial measures and reconciliation table for Adjusted EBITDA.

Balance Sheet and Cash Flow Review

Cash and cash equivalents were $37.1 million compared with $31.9 million at year-end 2023. Cash provided by operating activities was $29.5 million year-to-date, up 9%.

Capital expenditures totaled $6.9 million for the first nine months of 2024, primarily supporting new customer projects. The Company has continued to refine its capital allocation priorities, focusing on higher-return projects. As a result, it has lowered its expected 2024 capital expenditures to a range of $8 million to $11 million, from the previous guidance of $11 million to $13 million.

Total debt of $231.4 million was down $5.5 million from the sequential second quarter. The increase in debt from year-end 2023 reflected the SNC acquisition. Debt, net of cash, was $194.3 million, or 41.6% of net debt to capitalization. The Company’s leverage ratio, as defined in its credit agreement, was 3.53x at quarter-end.

On October 22, 2024, the Company amended its 2024 Amended Credit Agreement. The amendment allows for an increased maximum leverage ratio of 4.5:1.0 for the quarters ending March 31, 2025, and June 30, 2025, followed by 4.0:1.0 for the quarter ending September 30, 2025, before reverting to 3.75:1.0 for the remainder of the agreement. Additionally, the amendment permits the inclusion of certain acquisition, business retention, restructuring, integration, and realignment costs, up to $4.0 million, as an add-back in the consolidated EBITDA calculation, as defined in the agreement. With these amendments, the Company’s leverage ratio stands at 3.32x as of September 30, 2024.

Orders and Backlog Summary ($ in thousands)

		Q3 2024			Q2 2024			Q1 2024			Q4 2023			Q3 2023
Orders		$	102,631		$	137,373		$	122,127		$	105,162		$	154,908
Backlog		$	238,492		$	259,002		$	258,130		$	276,093		$	309,636

Third quarter orders decreased sequentially due to the continued impacts of changes in customer order patterns in reacting to elevated inventory levels. Additionally, the Company has experienced delays in the launch of certain projects, which may be a result of the election and expected decrease in interest rates. Foreign currency translation had a favorable $0.7 million impact on third quarter orders compared with the prior-year period.

The decline in backlog reflects the recent order softness as well as continued improvements within the supply chain, which has enabled the reduction of long-lead times for industrial market projects. The time to convert the majority of the backlog to sales is approximately three to nine months.

Conference Call and Webcast

The Company will host a conference call and webcast on Thursday, November 7, 2024, at 10:00 am ET. During the conference call, management will review the financial and operating results and discuss Allient’s corporate strategy and outlook. A question-and-answer session will follow.

To listen to the live call, dial (412) 317-0535. In addition, the webcast and slide presentation may be found at: allient.com/investors.

A telephonic replay will be available from 2:00 pm ET on the day of the call through Thursday, November 14, 2024. To listen to the archived call, dial (412) 317-6671 and enter replay pin number 10193002 or access the webcast replay via the Company’s website. A transcript will also be posted to the website once available.

About Allient Inc.

Allient (Nasdaq: ALNT) is a global engineering and manufacturing enterprise that develops solutions to drive the future of market-moving industries, including medical, life sciences, aerospace and defense, industrial automation, robotics, semi-conductor, transportation, agriculture, construction and facility infrastructure. A family of globally responsible companies, Allient takes a One-Team approach to “Connect What Matters” and provides the most robust, reliable, and high-value products and systems by utilizing its core Motion, Controls, and Power technologies and platforms.

Headquartered in Buffalo, N.Y., Allient employs more than 2,500 team members around the world. To learn more, visit www.allient.com.

Safe Harbor Statement

The statements in this news release that relate to future plans, events or performance are “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. Examples of forward-looking statements include, among others, statements the Company makes regarding expected savings from restructuring and simplifying actions, the cost of implementing such actions, operating results, preliminary financial results, expectations for the level of sales for the next several quarters, the Company’s belief that it has sufficient liquidity to fund its business operations, and expectations with respect to the conversion of backlog to sales. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company’s current beliefs, expectations and assumptions regarding the future of the Company’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company’s control. The Company’s actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, general economic and business conditions, conditions affecting the industries served by the Company and its subsidiaries, conditions affecting the Company's customers and suppliers, competitor responses to the Company's products and services, the overall market acceptance of such products and services, the pace of bookings relative to shipments, the ability to expand into new markets and geographic regions, the success in acquiring new business, the impact of changes in income tax rates or policies, commercial activity and demand across our and our customers’ businesses, global supply chains, the prices of our securities and the achievement of our strategic objectives, the ability to attract and retain qualified personnel, the ability to successfully integrate an acquired business into our business model without substantial costs, delays, or problems, and other factors disclosed in the Company's periodic reports filed with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict the occurrence of those matters or the manner in which they may affect us. The Company has no obligation or intent to release publicly any revisions to any forward looking statements, whether as a result of new information, future events, or otherwise.

FINANCIAL TABLES FOLLOW

ALLIENT INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited)
		For the three months ended								For the nine months ended
		September 30,								September 30,
		2024				2023				2024				2023
Revenue		$	125,213			$	145,319			$	407,958			$	437,637
Cost of goods sold			85,949				97,821				280,641				298,328
Gross profit			39,264				47,498				127,317				139,309
Operating costs and expenses:
Selling			6,323				6,021				19,283				18,354
General and administrative			13,856				14,642				42,438				43,624
Engineering and development			9,056				10,702				30,416				31,041
Business development			278				1,194				2,204				1,791
Amortization of intangible assets			3,135				3,075				9,381				9,226
Total operating costs and expenses			32,648				35,634				103,722				104,036
Operating income			6,616				11,864				23,595				35,273
Other expense, net:
Interest expense			3,435				3,164				10,207				9,309
Other expense, net			468				42				405				187
Total other expense, net			3,903				3,206				10,612				9,496
Income before income taxes			2,713				8,658				12,983				25,777
Income tax provision			(612	)			(1,992	)			(2,830	)			(6,027	)
Net income		$	2,101			$	6,666			$	10,153			$	19,750
Basic earnings per share:
Earnings per share		$	0.13			$	0.42			$	0.61			$	1.24
Basic weighted average common shares			16,574				15,979				16,513				15,940
Diluted earnings per share:
Earnings per share		$	0.13			$	0.41			$	0.61			$	1.22
Diluted weighted average common shares			16,605				16,237				16,581				16,198

ALLIENT INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data)
		(Unaudited) September 30,				December 31,
		2024				2023
Assets
Current assets:
Cash and cash equivalents		$	37,118			$	31,901
Trade receivables, net of provision for credit losses of $1,239 and $1,240 at September 30, 2024 and December 31, 2023, respectively			82,549				85,127
Inventories			117,605				117,686
Prepaid expenses and other assets			13,582				13,437
Total current assets			250,854				248,151
Property, plant, and equipment, net			68,396				67,463
Deferred income taxes			7,663				7,760
Intangible assets, net			104,593				111,373
Goodwill			134,390				131,338
Operating lease assets			23,627				24,032
Other long-term assets			6,912				7,425
Total Assets		$	596,435			$	597,542
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	28,894			$	39,129
Accrued liabilities			32,292				56,488
Total current liabilities			61,186				95,617
Long-term debt			231,415				218,402
Deferred income taxes			4,078				4,337
Pension and post-retirement obligations			2,735				2,679
Operating lease liabilities			19,343				19,532
Other long-term liabilities			4,811				5,400
Total liabilities			323,568				345,967
Stockholders’ Equity:
Common stock, no par value, authorized 50,000 shares; 16,840 and 16,308 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively			110,278				95,937
Preferred stock, par value $1.00 per share, authorized 5,000 shares; no shares issued or outstanding			—				—
Retained earnings			174,497				165,813
Accumulated other comprehensive loss			(11,908	)			(10,175	)
Total stockholders’ equity			272,867				251,575
Total Liabilities and Stockholders’ Equity		$	596,435			$	597,542

ALLIENT INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
		For the nine months ended
		September 30,
		2024				2023
Cash Flows From Operating Activities:
Net income		$	10,153			$	19,750
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization			19,248				18,956
Deferred income taxes			(45	)			122
Stock-based compensation expense			3,382				4,165
Debt issue cost amortization recorded in interest expense			379				225
Other			3,248				987
Changes in operating assets and liabilities, net of acquisitions:
Trade receivables			6,012				(14,357	)
Inventories			5,500				(1,344	)
Prepaid expenses and other assets			142				(1,553	)
Accounts payable			(12,259	)			2,871
Accrued liabilities			(6,302	)			(2,689	)
Net cash provided by operating activities			29,458				27,133
Cash Flows From Investing Activities:
Consideration paid for acquisitions, net of cash acquired			(25,231	)			(11,004	)
Purchase of property and equipment			(6,903	)			(7,850	)
Net cash used in investing activities			(32,134	)			(18,854	)
Cash Flows From Financing Activities:
Proceeds from issuance of long-term debt			76,898				11,000
Principal payments of long-term debt and finance lease obligations			(61,333	)			(22,325	)
Payment of contingent consideration			(2,450	)			—
Payment of debt issuance costs			(2,329	)			—
Dividends paid to stockholders			(1,505	)			(1,348	)
Tax withholdings related to net share settlements of restricted stock			(1,596	)			(1,827	)
Net cash provided by (used in) financing activities			7,685				(14,500	)
Effect of foreign exchange rate changes on cash			208				(556	)
Net increase (decrease) in cash and cash equivalents			5,217				(6,777	)
Cash and cash equivalents at beginning of period			31,901				30,614
Cash and cash equivalents at end of period		$	37,118			$	23,837

ALLIENT INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, Unaudited)

In addition to reporting revenue and net income, which are U.S. generally accepted accounting principle (“GAAP”) measures, the Company presents Revenue excluding foreign currency exchange rate impacts, and EBITDA and Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization, stock-based compensation expense, business development costs, and foreign currency gains/losses), which are non-GAAP measures. Business development costs include acquisition and integration related costs as well as restructuring and business realignment costs.

The Company believes that Revenue excluding foreign currency exchange rate impacts is a useful measure in analyzing organic sales results. The Company excludes the effect of currency translation from revenue for this measure because currency translation is not fully under management’s control, is subject to volatility and can obscure underlying business trends. The portion of revenue attributable to currency translation is calculated as the difference between the current period revenue and the current period revenue after applying foreign exchange rates from the prior period. Organic revenue is reported revenues adjusted for the impact of foreign currency and the revenue contribution from acquisitions.

The Company believes EBITDA and Adjusted EBITDA are often a useful measure of a Company’s operating performance and are a significant basis used by the Company’s management to evaluate and compare the core operating performance of its business from period to period by removing the impact of the capital structure (interest), tangible and intangible asset base (depreciation and amortization), taxes, stock-based compensation expense, business development costs, foreign currency gains/losses on short-term assets and liabilities, and other items that are not indicative of the Company’s core operating performance. EBITDA and Adjusted EBITDA do not represent and should not be considered as an alternative to net income, operating income, net cash provided by operating activities or any other measure for determining operating performance or liquidity that is calculated in accordance with GAAP.

The Company’s calculation of Revenue excluding foreign currency exchange impacts for the three and nine months ended September 30, 2024 is as follows:

		Three Months Ended				Nine Months Ended
		September 30, 2024				September 30, 2024
Revenue as reported		$	125,213			$	407,958
Foreign currency impact			(641	)			(155	)
Revenue excluding foreign currency exchange impacts		$	124,572			$	407,803

The Company’s calculation of organic revenue for the three and nine months ended September 30, 2024 is as follows:

		Three Months Ended		Nine Months Ended
		September 30, 2024		September 30, 2024
Revenue decrease year over year		(13.8%)		(6.8%)
Less: Impact of acquisitions and foreign currency		7.7%		7.1%
Organic revenue		(21.5%)		(13.9%)

The Company’s calculation of Adjusted EBITDA for the three and nine months ended September 30, 2024 and 2023 is as follows:

		Three months ended							Nine months ended
		September 30,							September 30,
		2024				2023			2024			2023
Net income as reported		$	2,101			$	6,666		$	10,153		$	19,750
Interest expense			3,435				3,164			10,207			9,309
Provision for income tax			612				1,992			2,830			6,027
Depreciation and amortization			6,447				6,421			19,248			18,956
EBITDA			12,595				18,243			42,438			54,042
Stock-based compensation expense			1,098				1,354			3,382			4,165
Acquisition and integration-related costs (1)			(201	)			389			256			686
Restructuring and business realignment costs			479				805			1,948			1,105
Foreign currency loss			461				58			380			257
Adjusted EBITDA		$	14,432			$	20,849		$	48,404		$	60,255

(1)		Includes a Q3 2024 fair value measurement reduction of $270 due to acquisition-related contingent consideration

ALLIENT INC.
Reconciliation of GAAP Net Income and Diluted Earnings per Share to
Non-GAAP Adjusted Net Income and Adjusted Diluted Earnings per Share
(In thousands, except per share data)
(Unaudited)

The Company’s calculation of Adjusted net income and Adjusted diluted earnings per share for the three and nine months ended September 30, 2024 and 2023 is as follows:

		For the three months ended
		September 30,
						Per diluted							Per diluted
		2024				share				2023			share
Net income as reported		$	2,101			$	0.13			$	6,666		$	0.41
Non-GAAP adjustments, net of tax (1)
Amortization of intangible assets – net			2,401				0.14				2,355			0.15
Foreign currency loss – net			353				0.02				44			—
Acquisition and integration-related costs – net (2)			(154	)			(0.01	)			298			0.02
Restructuring and business realignment costs – net			367				0.02				617			0.04
Non-GAAP adjusted net income and adjusted diluted earnings per share		$	5,068			$	0.31			$	9,980		$	0.61

(1)		Applies a blended federal, state, and foreign tax rate of approximately 23% applicable to the non-GAAP adjustments.
(2)		Includes a Q3 2024 fair value measurement reduction of $270 due to acquisition-related contingent consideration.

		For the nine months ended
		September 30,
					Per diluted						Per diluted
		2024			share			2023			share
Net income as reported		$	10,153		$	0.61		$	19,750		$	1.22
Non-GAAP adjustments, net of tax (1)
Amortization of intangible assets – net			7,339			0.44			7,067			0.44
Foreign currency loss – net			291			0.02			197			0.01
Acquisition and integration-related costs – net			196			0.01			525			0.03
Restructuring and business realignment costs – net			1,492			0.09			847			0.05
Non-GAAP adjusted net income and adjusted diluted earnings per share		$	19,471		$	1.17		$	28,386		$	1.75

(1)

Applies a blended federal, state, and foreign tax rate of approximately 23% applicable to the non-GAAP adjustments.

Adjusted net income and diluted EPS are defined as net income as reported, adjusted for certain items, including amortization of intangible assets and unusual non-recurring items. Adjusted net income and diluted EPS are not a measure determined in accordance with GAAP in the United States, and may not be comparable to the measure as used by other companies. Nevertheless, the Company believes that providing non-GAAP information, such as adjusted net income and diluted EPS are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current year’s net income and diluted EPS to the historical periods’ net income and diluted EPS.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241106611543/en/

Investor Contacts:

Deborah K. Pawlowski / Craig P. Mychajluk

Alliance Advisors IR

716-843-3908 / 716-843-3832

dpawlowski@allianceadvisors.com / cmychajluk@allianceadvisors.com

Source: Allient Inc.

FAQ

What was Allient's (ALNT) revenue in Q3 2024?

Allient reported revenue of $125.2 million in Q3 2024, representing a 14% decrease from the previous year.

How much cost savings did Allient (ALNT) implement in their Simplify to Accelerate NOW program?

Allient implemented $10 million in total annualized cost savings, with $5 million enacted in late Q2 and the remainder implemented after June 30, 2024.

What was Allient's (ALNT) gross margin in Q3 2024?

Allient's gross margin was 31.4% in Q3 2024, showing a sequential improvement of 150 basis points from Q2 2024.

What was Allient's (ALNT) cash position at the end of Q3 2024?

Allient had $37.1 million in cash and cash equivalents at the end of Q3 2024, up from $31.9 million at year-end 2023.