Allied Motion Reports 10% Revenue Growth and Record Backlog in 2021

Rhea-AI Summary

Allied Motion Technologies reported a 10% year-over-year revenue growth, reaching $403.5 million in 2021, driven by industrial and vehicle markets recovering post-pandemic. The fourth quarter revenue was $96.8 million, up 4%. Gross margins improved to 30.0% for the year and 28.7% for Q4, despite supply chain challenges. Net income surged 77% to $24.1 million, or $1.66 per diluted share. The company completed three acquisitions, expecting an additional $60 million in revenue in 2022. Orders for Q4 totaled $114.9 million, leading to a backlog of $249.9 million.

Positive

• Revenue grew 10% to $403.5 million in 2021.
• Fourth quarter revenue increased 4% to $96.8 million.
• Gross margin improved to 30.0% for the year.
• Net income rose 77% to $24.1 million.
• Adjusted net income increased 26% to $1.26 per diluted share.
• Record backlog of $249.9 million, up 35% sequentially.
• Expecting approximately $60 million additional revenue from acquisitions in 2022.

Negative

• Fourth quarter sales in Vehicle markets declined by 12%.
• Aerospace and Defense markets sales dropped 19% due to program timing.
• Operating costs increased as a percentage of revenue to 24.5%.

• Revenue grew 10% to $403.5 million in 2021, driven by broad-based recovery in target markets and new solutions offerings; Fourth quarter revenue was $96.8 million, up 4% from the prior year quarter
• Gross margin expanded 40 basis points to 30.0% in the year on higher volume, improved mix and strategic pricing; Fourth quarter gross margin was 28.7%, up 80 basis points despite ongoing supply chain disruptions as well as material and labor inflation
• Annual net income increased 77% to $24.1 million, or $1.66 per diluted share; Excluding net tax benefits and business development costs, adjusted net income was $1.26 per diluted share, up 26% for the year
• Fourth quarter orders of $114.9 million drove a book-to-bill ratio of 1.2x
• Record backlog of $249.9 million, up 35% sequentially on demand and incremental backlog from recent acquisitions
• Generated $25.4 million of cash from operations in 2021
• Completed three acquisitions in the fourth quarter that further enhance technology and capabilities

AMHERST, N.Y.--(BUSINESS WIRE)-- Allied Motion Technologies Inc. (Nasdaq: AMOT) (“Allied Motion” or “Company”), a designer and manufacturer of precision and specialty controlled motion products and solutions for the global market, today reported financial results for its fourth quarter and year ended December 31, 2021. Results include the acquisitions of ORMEC Systems Corp. on November 2, 2021, ALIO Industries on November 4, 2021, and Spectrum Controls, Inc. on December 30, 2021. All share and per share information reflect the April 30, 2021 3-for-2 stock dividend.

“Our results continue to demonstrate the successful execution of our strategic growth initiatives. For 2021, sales to our Industrial markets reached all-time highs and our Vehicle markets returned to pre-pandemic levels. Encouragingly, we also grew our Medical markets despite extremely tough comparisons from the prior year that saw significant demand for our products and solutions during the height of the pandemic,” commented Dick Warzala, Chairman and CEO. “We are also pleased with our gross margin expansion in both the quarter and full year period in spite of the overall inefficiencies created by the global supply chain and labor constraints. We believe our diversified market strategy that is focused on margin enhancing solutions, as well as our ability to flex our business model to meet shifting customer demands helped drive our results, and importantly, sets us up well when macro challenges subside.

“As we look ahead to 2022 and beyond, our backlog and bookings remain robust, and we plan to continue to prudently invest to drive our organic growth engine while looking to further supplement our efforts with selective strategic acquisitions. Collectively, the three acquisitions at the end of 2021 are expected to provide incremental revenue of approximately $60 million in 2022 and be accretive to gross margins and earnings. While we continue to contend with ongoing material and labor inflation challenges, we remain encouraged with the progress we have made, the initiatives we are undertaking and how well positioned we are for long-term, sustainable growth.”

Fourth Quarter 2021 Results (Narrative compares with prior-year period unless otherwise noted)

Revenue increased 4% to $96.8 million and reflected higher demand in the Industrial markets and incremental revenue from acquisitions completed in the quarter. Excluding the unfavorable impact of foreign currency exchange rate fluctuations on revenue of $0.9 million, revenue was up 5%. Sales to U.S. customers were 54% of total sales compared with 53% in the same period 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 to Industrial markets were up 29% in the quarter and benefitted from continued economic recovery in a number of verticals, including oil & gas, vehicle handling, industrial automation and electronics solutions for motor control and instrumentation. Also contributing to the overall revenue growth was Distribution and Medical sales growth of 14% and 3%, respectively. Partially offsetting, were lower sales in the Vehicle markets of 12% largely due to supply chain challenges and Aerospace & Defense markets, which declined 19% due to the timing of specific defense programs.

Gross margin was 28.7%, up 80 basis points from the fourth quarter of 2020. The increase was largely attributable to improved mix and strategic pricing, which more than offset continued global supply chain challenges and rising material and labor costs.

Operating costs and expenses as a percent of revenue were 24.5%, up 170 basis points, of which 100 basis points was attributable to higher business development costs given the three acquisitions completed during the fourth quarter and the optimization of the Company’s global manufacturing footprint. The remaining operating expense increase was largely within sales and marketing expenses, which reflected higher commissions and incentive compensation as well as trade show costs resuming in 2021. As a result, operating income was $4.0 million, or 4.1% of sales, compared with $4.8 million, or 5.1%, in the fourth quarter of 2020.

Net income was $1.6 million, or $0.11 per diluted share. Adjusted net income, which excludes business development costs and other non-recurring items, was $2.9 million, or $0.20 per diluted share, compared with adjusted net income of $2.7 million, or $0.19 per diluted share, in the comparable period of 2020. The effective tax rate was 53.9% compared with 26.2% in the prior-year period. The higher tax rate reflected a $0.5 million valuation allowance of a deferred tax asset in a foreign jurisdiction, as well as the mix of income from higher tax rate jurisdictions. The Company expects its income tax rate for full year 2022 to be approximately 24% to 26%. 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, and foreign currency gains/losses (“Adjusted EBITDA”) was $11.1 million, up $1.2 million, or 12%. As a percent of sales, Adjusted EBITDA was 11.5%, up 80 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.

Full Year 2021 Results (Narrative compares with prior-year period unless otherwise noted)

Revenue of $403.5 million increased $36.8 million, or 10%, reflecting strong growth in Industrial markets of 19% and Vehicle markets of 18%. Both markets benefited as economic conditions recovered from the pandemic and from the launch of new solution offerings. The impact of FX fluctuations was a favorable $8.3 million for the year. Sales to U.S. customers were 54% of total sales compared with 53% for the same period last year, with the balance of sales to customers primarily in Europe, Canada and Asia-Pacific.

Gross margin of 30.0% was up 40 basis points and reflected solid demand and improved mix and pricing, partially offset by increased costs given global supply chain disruptions and rising material and labor costs.

Operating costs and expenses as a percent of revenue were 23.6%, up 30 basis points largely due to an increase in business development costs associated with acquisitions and the optimization of the Company’s global manufacturing footprint. Operating income was $26.0 million, up from $23.0 million, and as a percent of revenue was 6.4%, up 10 basis points.

Net income was $24.1 million, or $1.66 per diluted share, compared with $13.6 million, or $0.95 per diluted share. The increase reflects a net discrete tax benefit of $7.4 million recorded in the first quarter of 2021 relating to new legislation enacted in New Zealand, which contributed to the effective tax rate of (4.2)% for the year compared with 27.3% in the prior year. Adjusted net income was $18.2 million, or $1.26 per diluted share, compared with $14.3 million, or $1.00 per diluted share, in 2020. Adjusted EBITDA increased 16% to $49.9 million from $43.1 million. Adjusted EBITDA margin of 12.4% was up 60 basis points. See the attached tables for a description of non-GAAP financial measures and reconciliation table for Adjusted Net Income and Diluted Earnings per Share and Adjusted EBITDA.

Balance Sheet and Cash Flow Review

Cash and cash equivalents were $22.5 million compared with $23.1 million at year-end 2020. Full year net cash provided by operations was $25.4 million and was primarily used to fund capital expenditures of $13.7 million and for acquisitions during the 2021 fourth quarter. The capital investments were largely focused on new customer projects and ERP implementations. The Company expects 2022 capital expenditures to be approximately $15 million to $20 million.

Total debt of $159.0 million was up $38.9 million from year-end 2020, reflecting borrowings for acquisitions. For the full year period, the Company paid down $12.2 million in debt. Debt, net of cash, was $136.5 million, or 42.1% of net debt to capitalization. The Company’s leverage ratio, as defined in its credit agreement, was 3.0x at year-end.

Orders and Backlog Summary ($ in thousands)

		Q4 2021			Q3 2021			Q2 2021			Q1 2021			Q4 2020
Orders		$	114,891		$	119,940		$	118,974		$	114,644		$	108,466
Backlog		$	249,927		$	185,561		$	170,364		$	152,262		$	141,344

Orders of $114.9 million were up 6% over the 2020 fourth quarter and represented a book-to-bill ratio of 1.2x. Foreign currency translation had an unfavorable $1.2 million impact on fourth quarter orders compared with the prior-year period.

Backlog increased 35% over the sequential third quarter and 77% over the prior-year period to a record $249.9 million. Included was $47.9 million of incremental backlog from recent acquisitions. The time to convert the majority of backlog to sales is approximately three to nine months.

Conference Call and Webcast

The Company will host a conference call and webcast on Thursday, March 10, 2022 at 10:00 am ET. During the conference call, management will review the financial and operating results and discuss Allied Motion’s corporate strategy and outlook. A question and answer session will follow.

To listen to the live call, dial (201) 689-8263. In addition, the webcast and slide presentation may be found at: www.alliedmotion.com/investor-relations.

A telephonic replay will be available from 1:00 pm ET on the day of the call through Thursday, March 17, 2022. To listen to the archived call, dial (412) 317-6671 and enter replay pin number 13725929 or access the webcast replay via the Company’s website. A transcript will also be posted to the website once available.

About Allied Motion Technologies Inc.

Allied Motion (Nasdaq: AMOT) designs, manufactures and sells precision controlled motion products and solutions used in a broad range of applications within the Vehicle, Medical, Aerospace & Defense, Electronic, and Industrial Markets. Headquartered in Amherst, NY, the Company has global operations and sells into markets across the United States, Canada, South America, Europe and Asia-Pacific.

Allied Motion is focused on controlled motion applications and is known worldwide for its expertise in electro-magnetic, mechanical, and electronic controlled motion technologies. Its products include nano precision positioning systems, servo control systems, motion controllers, digital servo amplifiers and drives, brushless servo, torque, and coreless motors, brush motors, integrated motor-drives, gear motors, gearing, incremental and absolute optical encoders, active (electronic) and passive (magnetic) filters for power quality and harmonic issues, Industrial safety rated I/O Modules, Universal Industrial Communications Gateways and other controlled motion-related products.

The Company’s growth strategy is focused on being the controlled motion solutions leader in its selected target markets by leveraging its “technology/know how” to develop integrated precision solutions that utilize multiple Allied Motion technologies to “change the game” and create higher value solutions for its customers. The Company routinely posts news and other important information on its website at www.alliedmotion.com.

Safe Harbor Statement

The statements in this news release and in the Company’s March 10, 2022 conference call 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 operating results, anticipated levels of capital expenditures, 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, the severity, magnitude and duration of the COVID-19 pandemic, including impacts of the pandemic and of businesses’ and governments’ responses to the pandemic 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 the COVID-19 pandemic 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 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

ALLIED MOTION TECHNOLOGIES INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited)
		For the three months ended						For the year ended
		December 31,						December 31,			December 31,
		2021			2020			2021			2020
Revenue		$	96,793		$	92,998		$	403,516		$	366,694
Cost of goods sold			69,043			67,065			282,460			258,119
Gross profit			27,750			25,933			121,056			108,575
Operating costs and expenses:
Selling			4,270			3,573			17,249			15,392
General and administrative			9,870			9,421			42,419			38,301
Engineering and development			6,851			6,622			27,818			25,487
Business development			1,031			41			1,299			473
Amortization of intangible assets			1,718			1,505			6,245			5,928
Total operating costs and expenses			23,740			21,162			95,030			85,581
Operating income			4,010			4,771			26,026			22,994
Other expense, net:
Interest expense			791			917			3,236			3,716
Other (income) expense, net			(165)			195			(323)			502
Total other expense, net			626			1,112			2,913			4,218
Income before income taxes			3,384			3,659			23,113			18,776
Income tax (provision) benefit			(1,823)			(960)			981			(5,133)
Net income		$	1,561		$	2,699		$	24,094		$	13,643
Basic earnings per share:
Earnings per share		$	0.11		$	0.19		$	1.67		$	0.96
Basic weighted average common shares			14,527			14,279			14,413			14,243
Diluted earnings per share:
Earnings per share		$	0.11		$	0.19		$	1.66		$	0.95
Diluted weighted average common shares			14,632			14,403			14,517			14,333

ALLIED MOTION TECHNOLOGIES INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data)
		December 31,
		2021			2020
Assets
Current assets:
Cash and cash equivalents		$	22,463		$	23,131
Trade receivables, net of provision for credit losses of $506 and $382 at December 31, 2021 and December 31, 2020, respectively			51,239			47,377
Inventories			89,733			62,978
Prepaid expenses and other assets			12,522			8,728
Total current assets			175,957			142,214
Property, plant and equipment, net			56,983			55,428
Deferred income taxes			5,321			330
Intangible assets, net			103,786			65,859
Goodwill			106,633			61,860
Right of use assets			16,983			19,023
Other long-term assets			5,122			4,483
Total Assets		$	470,785		$	349,197
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	36,714		$	27,668
Accrued liabilities			41,656			24,862
Total current liabilities			78,370			52,530
Long-term debt			158,960			120,079
Deferred income taxes			5,040			4,659
Pension and post-retirement obligations			3,932			5,340
Right of use liabilities			12,792			14,975
Other long-term liabilities			23,929			8,558
Total liabilities			283,023			206,141
Stockholders’ Equity:
Common stock, no par value, authorized 50,000 shares; 15,361 and 14,632 shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively			68,097			41,278
Preferred stock, par value $1.00 per share, authorized 5,000 shares; no shares issued or outstanding			—			—
Retained earnings			127,757			105,065
Accumulated other comprehensive loss			(8,092)			(3,287)
Total stockholders’ equity			187,762			143,056
Total Liabilities and Stockholders’ Equity		$	470,785		$	349,197

ALLIED MOTION TECHNOLOGIES INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
		For the year ended
		December 31,			December 31,
		2021			2020
Cash Flows From Operating Activities:
Net income		$	24,094		$	13,643
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization			18,107			15,985
Deferred income taxes			(6,135)			(519)
Provision for excess and obsolete inventory			534			1,106
Provision for warranty			543			34
Debt issue cost amortization recorded in interest expense			141			144
Restricted stock compensation			4,161			3,550
Other			(128)			(333)
Changes in operating assets and liabilities, net of acquisitions:
Trade receivables			(170)			2,711
Inventories			(22,874)			(4,686)
Prepaid expenses and other assets			(3,670)			(2,264)
Accounts payable			8,293			(1,874)
Accrued liabilities			2,506			(2,659)
Net cash provided by operating activities			25,402			24,838
Cash Flows From Investing Activities:
Consideration paid for acquisitions, net of cash acquired			(47,254)			(14,728)
Purchase of property and equipment			(13,716)			(9,371)
Net cash used in investing activities			(60,970)			(24,099)
Cash Flows From Financing Activities:
Principal payments of long-term debt			(12,248)			(16,897)
Proceeds from issuance of long-term debt			51,379			26,979
Payment of debt issuance costs			—			(401)
Dividends paid to stockholders			(1,371)			(1,160)
Tax withholdings related to net share settlements of restricted stock			(1,928)			(1,032)
Net cash provided by financing activities			35,832			7,489
Effect of foreign exchange rate changes on cash			(932)			1,487
Net (decrease) increase in cash and cash equivalents			(668)			9,715
Cash and cash equivalents at beginning of period			23,131			13,416
Cash and cash equivalents at end of period		$	22,463		$	23,131

ALLIED MOTION TECHNOLOGIES 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, foreign currency gains/losses, and non-income based tax assessment), which are non-GAAP measures.

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 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.

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 twelve months ended December 31, 2021 is as follows:

		Three Months Ended			Twelve Months Ended
		December 31, 2021			December 31, 2021
Revenue as reported		$	96,793		$	403,516
Currency impact			859			(8,332)
Revenue excluding foreign currency exchange impacts		$	97,652		$	395,184

The Company’s calculation of Adjusted EBITDA for the three and twelve months ended December 31, 2021 and 2020 is as follows:

		Three Months Ended December 31,						Twelve Months Ended December 31,
		2021			2020			2021			2020
Net income		$	1,561		$	2,699		$	24,094		$	13,643
Interest expense			791			917			3,236			3,716
Provision (benefit) for income tax			1,823			960			(981)			5,133
Depreciation and amortization			4,790			4,303			18,107			15,985
EBITDA			8,965			8,879			44,456			38,477
Stock compensation expense			1,061			910			4,161			3,550
Foreign currency loss			63			542			21			1,035
Business development costs			1,031			42			1,299			473
Non-income based tax assessment			-			(424)			-			(424)
Adjusted EBITDA		$	11,120		$	9,948		$	49,937		$	43,111

ALLIED MOTION TECHNOLOGIES INC.
Reconciliation of GAAP Net Income and Diluted Earnings per Share to
Non-GAAP Adjusted Net Income and 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 twelve months ended December 31, 2021 and 2020 is as follows:

		Three Months Ended														Twelve Months Ended
		December 31,														December 31,
		2021			Per diluted share				2020			Per diluted share				2021			Per diluted share				2020			Per diluted share
Net income as reported		$	1,561		$	0.11			$	2,699		$	0.19			$	24,094		$	1.66			$	13,643		$	0.95
Non-GAAP adjustments, net of tax
Discrete income tax benefit			-			-				-			-				(7,373)			(0.51)				-			-
Non-income based tax assessment			-			-				(424)			(0.03)				-			-				(424)			(0.03)
Income tax valuation allowance			506			0.03				-			-				506			0.03				-			-
Foreign currency loss			48			-				400			0.03				16			-				752			0.05
Business development costs			790			0.05				30			-				995			0.07				344			0.02
Adjusted net income and diluted EPS		$	2,905		$	0.20			$	2,705		$	0.19			$	18,238		$	1.26			$	14,315		$	1.00
Weighted average diluted shares outstanding					14,632							14,403							14,517							14,333

Adjusted net income and diluted EPS are defined as net income as reported, adjusted for 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/20220309005919/en/

Investor Contact:

Deborah K. Pawlowski

Kei Advisors LLC

Phone: 716-843-3908

Email: dpawlowski@keiadvisors.com

Source: Allied Motion Technologies Inc.

FAQ

What were Allied Motion Technologies' 2021 revenue figures?

Allied Motion Technologies reported a revenue of $403.5 million in 2021, a 10% increase from the previous year.

How much did Allied Motion Technologies' net income increase in 2021?

Net income for 2021 rose by 77% to $24.1 million, or $1.66 per diluted share.

What was the book-to-bill ratio for Allied Motion Technologies in Q4 2021?

The book-to-bill ratio for Q4 2021 was 1.2x, with orders totaling $114.9 million.

What is the expected revenue from recent acquisitions in 2022?

Recent acquisitions are expected to contribute approximately $60 million in additional revenue for 2022.

How much did Allied Motion Technologies' gross margin improve in 2021?

Gross margin improved to 30.0% for the year 2021.