Loar Holdings Inc. Reports Q2 2024 Results and Upward Revision to Guidance
Loar Holdings Inc. (NYSE:LOAR) reported record Q2 2024 results and revised its full-year guidance upward. Key highlights include:
- Net sales of $97.0 million, up 31.1% year-over-year
- Net income of $7.6 million, a significant increase from $0.6 million in Q2 2023
- Adjusted EBITDA of $35.0 million, up 26.3% year-over-year
- Earnings per share of $0.09, with Adjusted EPS at $0.13
The company raised its full-year 2024 outlook, now projecting:
- Net sales between $374-$378 million
- Net income between $28.4-$29.6 million
- Adjusted EBITDA between $134-$136 million
- Adjusted EPS between $0.44-$0.46
Loar expects strong demand across its end-markets, with mid-double-digit growth in commercial, business jet, general aviation, and defense sectors.
Loar Holdings Inc. (NYSE:LOAR) ha riportato risultati record per il secondo trimestre del 2024 e ha rivisto al rialzo le previsioni per l'intero anno. I punti salienti includono:
- Vendite nette di $97,0 milioni, in aumento del 31,1% rispetto all'anno precedente
- Utile netto di $7,6 milioni, un aumento significativo rispetto ai $0,6 milioni del secondo trimestre del 2023
- EBITDA rettificato di $35,0 milioni, in crescita del 26,3% rispetto all'anno precedente
- Utile per azione di $0,09, con EPS rettificato a $0,13
L'azienda ha alzato le previsioni per l'intero anno 2024, ora prevedendo:
- Vendite nette comprese tra $374-$378 milioni
- Utile netto compreso tra $28,4-$29,6 milioni
- EBITDA rettificato compreso tra $134-$136 milioni
- EPS rettificato compreso tra $0,44-$0,46
Loar si aspetta una forte domanda nei suoi mercati finali, con una crescita a due cifre medie nei settori commerciale, aereo d'affari, aviazione generale e della difesa.
Loar Holdings Inc. (NYSE:LOAR) reportó resultados récord en el segundo trimestre de 2024 y revisó al alza su pronóstico para todo el año. Los puntos destacados incluyen:
- Ventas netas de $97,0 millones, un aumento del 31,1% en comparación con el año anterior
- Ingreso neto de $7,6 millones, un aumento significativo desde $0,6 millones en el segundo trimestre de 2023
- EBITDA ajustado de $35,0 millones, un crecimiento del 26,3% en comparación con el año anterior
- Ganancias por acción de $0,09, con EPS ajustado en $0,13
La compañía ha elevado su perspectiva para todo el año 2024, ahora proyectando:
- Ventas netas entre $374-$378 millones
- Ingreso neto entre $28,4-$29,6 millones
- EBITDA ajustado entre $134-$136 millones
- EPS ajustado entre $0,44-$0,46
Loar espera una fuerte demanda en sus mercados finales, con un crecimiento de dos dígitos en los sectores comercial, de jets de negocios, aviación general y defensa.
Loar Holdings Inc. (NYSE:LOAR)는 2024년 2분기 실적이 기록적이라고 발표했으며, 연간 예상을 상향 조정했습니다. 주요 하이라이트는 다음과 같습니다:
- 순매출 $97.0 백만, 전년 대비 31.1% 증가
- 순이익 $7.6 백만, 2023년 2분기 $0.6 백만에서 큰 증가
- 조정 EBITDA $35.0 백만, 전년 대비 26.3% 증가
- 주당 순이익 $0.09, 조정 EPS는 $0.13
회사는 2024년 전체 연도 전망을 상향 조정했으며, 이제 다음과 같이 예상합니다:
- 순매출 $374-$378 백만
- 순이익 $28.4-$29.6 백만
- 조정 EBITDA $134-$136 백만
- 조정 EPS $0.44-$0.46
Loar는 상업, 비즈니스 제트기, 일반 항공 및 방위 분야에서 중간 두 자릿수 성장을 예상하며, 최종 시장에서 강한 수요를 기대하고 있습니다.
Loar Holdings Inc. (NYSE:LOAR) a annoncé des résultats record pour le deuxième trimestre 2024 et a révisé à la hausse ses prévisions pour l'année entière. Les faits saillants incluent :
- Ventes nettes de $97,0 millions, en hausse de 31,1 % par rapport à l'année précédente
- Bénéfice net de $7,6 millions, une augmentation significative par rapport à $0,6 million au deuxième trimestre 2023
- EBITDA ajusté de $35,0 millions, en hausse de 26,3 % par rapport à l'année précédente
- Bénéfice par action de $0,09, avec un EPS ajusté de $0,13
L'entreprise a rehaussé ses prévisions pour l'année 2024, maintenant projetant :
- Ventes nettes entre $374-$378 millions
- Bénéfice net entre $28,4-$29,6 millions
- EBITDA ajusté entre $134-$136 millions
- EPS ajusté entre $0,44-$0,46
Loar s'attend à une forte demande sur ses marchés finaux, avec une croissance à deux chiffres dans les secteurs commercial, avion d'affaires, aviation générale et défense.
Loar Holdings Inc. (NYSE:LOAR) berichtete von Rekordergebnissen im 2. Quartal 2024 und hob die Prognose für das Gesamtjahr an. Die wichtigsten Highlights sind:
- Nettoumsatz von $97,0 Millionen, ein Anstieg um 31,1 % im Vergleich zum Vorjahr
- Nettogewinn von $7,6 Millionen, ein erheblicher Anstieg von $0,6 Millionen im 2. Quartal 2023
- Bereinigtes EBITDA von $35,0 Millionen, ein Anstieg um 26,3 % im Vergleich zum Vorjahr
- Gewinn pro Aktie von $0,09, das bereinigte EPS beträgt $0,13
Das Unternehmen hat seine Prognose für das gesamte Jahr 2024 angehoben und plant nun:
- Nettoumsatz zwischen $374-$378 Millionen
- Nettogewinn zwischen $28,4-$29,6 Millionen
- Bereinigtes EBITDA zwischen $134-$136 Millionen
- Bereinigtes EPS zwischen $0,44-$0,46
Loar erwartet eine starke Nachfrage in seinen Endmärkten, mit einem mittleren zweistelligen Wachstum in den Bereichen Gewerbe, Geschäftsflugzeuge, allgemeine Luftfahrt und Verteidigung.
- Record Q2 2024 net sales of $97.0 million, up 31.1% year-over-year
- Net income increased to $7.6 million from $0.6 million in Q2 2023
- Adjusted EBITDA grew 26.3% to $35.0 million
- Organic net sales growth of 17.0%
- Upward revision of full-year 2024 guidance across all key metrics
- Expected mid-double-digit growth in commercial, business jet, general aviation, and defense sectors
- Adjusted EBITDA Margin decreased to 36.1% from 37.5% in Q2 2023
- Margin impacted by increased sales of lower margin defense products
- Dilutive impact from an acquisition completed in second half of 2023
- Increased infrastructure costs related to being a public company
Insights
Loar Holdings' Q2 2024 results show impressive growth, with net sales up 31.1% to
The upward revision in full-year guidance is particularly noteworthy. Loar now expects net sales between
Loar's performance reflects the broader recovery and growth trends in the aerospace sector. The exceptional commercial aftermarket growth mentioned is a key indicator of increasing air travel and fleet utilization. This trend typically leads to higher demand for replacement parts and maintenance services, benefiting companies like Loar.
The planned acquisition of Applied Avionics is strategically sound, potentially enhancing Loar's product portfolio and market reach. The focus on niche capabilities and high aftermarket content aligns well with industry demands for specialized, high-value solutions. The revised market assumptions, projecting mid double-digit growth across various aviation segments, suggest a bullish outlook for the aerospace industry as a whole, which could drive further opportunities for Loar.
WHITE PLAINS, NY / ACCESSWIRE / August 13, 2024 / Loar Holdings Inc. (NYSE:LOAR) (the "Company," "Loar," "we," "us" and "our"), reported record results for the second quarter of 2024.
Second Quarter 2024
Net sales of
$97.0 million , up31.1% versus the prior year's quarter.Net income for Q2 2024 was
$7.6 million , up$7.0 million as compared to the prior year's quarter.Earnings per share of
$0.09 .Adjusted EBITDA of
$35.0 million , up26.3% over the prior year's quarter.Net income margin in the quarter improved to
7.9% from the prior year's quarter net income margin of0.8% .Adjusted EBITDA Margin in the quarter was
36.1% compared to37.5% in the prior year's quarter.Adjusted Earnings Per Share of
$0.13 .
"In the second quarter we continued our record setting pace in net sales and Adjusted EBITDA," stated Dirkson Charles, Loar CEO and Executive Co-Chairman of the Board of Directors. "Additionally, in the quarter we saw the impact of de-stocking give way to exceptional commercial aftermarket growth over last year.
We are also excited for the future addition of Applied Avionics to the Loar Family. With its niche capabilities, proprietary product offering, and high aftermarket content, Applied Avionics fits exceptionally well within our strategic approach to providing customers with a comprehensive set of solutions."
Loar reported net sales for the quarter of
Net income for the quarter increased
Adjusted EBITDA for the quarter was
Year-to-Date
Net sales for the first six months ended June 30, 2024, were
Net income year-to-date increased
Adjusted EBITDA for the first half of 2024 was
Please see the attached Table 4 for a reconciliation of net income (loss) to EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin for the periods discussed in this press release.
(1) Net organic sales represent net sales from our existing businesses for comparable periods and exclude net sales from acquisitions. We include net sales from new acquisitions in net organic sales from the 13th month after the acquisition on a comparative basis with the prior period.
Full Year 2024 Outlook - Revised Upward
"Given the strong performance of the business in Q2, we are revising our guidance upward for the full year 2024. As we look to the end of the year we continue to expect strong demand drivers across the end-markets in which we participate," stated Mr. Charles.
Net sales - between
$374 million and$378 million , up from$370 million to$374 million Net income - between
$28.4 million and$29.6 million , up from$25.7 million to$27.1 million Adjusted EBITDA - between
$134 million and$136 million , up from$132 million to$134 million Net income margin - approximately
8% , up from7% Adjusted Earnings Per Share - between
$0.44 and$0.46 , up from$0.41 t o$0.43 Adjusted EBITDA Margin - approximately
36% Interest expense - approximately
$42 million Market Assumptions - Full year outlook is based on the following assumptions:
Commercial, Business Jet, and General Aviation OEM growth of mid double-digits, up from low double-digits
Commercial, Business Jet, and General Aviation aftermarket growth of mid double-digits, up from low double-digits
Defense growth of mid double-digits, up from low double-digits
Adjusted EBITDA, Adjusted Earnings Per Share and Adjusted EBITDA Margin are non-GAAP financial measures provided in this "Full Year 2024 Outlook - Revised Upward" section on a forward-looking basis. The Company does not provide a reconciliation of such forward-looking measures to the most directly comparable financial measures calculated and presented in accordance with GAAP because to do so would be potentially misleading and not practical given the difficulty of projecting event-driven transactional and other non-core operating items in any future period. The magnitude of these items, however, may be significant.
Earnings Conference Call
A conference call for investors and security analysts is scheduled on Tuesday August 13, 2024, at 10:30a.m., Eastern Time. To participate in the call telephonically please dial +1 877-407-0670 / +1 215-268-9902. International participants can find a list of toll-free numbers here. A live audio webcast will also be available at the following link as well as through the Investor section of Loar Holdings website; https://ir.loargroup.com
The webcast will be archived and available for replay later in the day.
About Loar Holdings Inc.
Loar Holdings Inc. is a diversified manufacturer and supplier of niche aerospace and defense components that are essential for today's aircraft and aerospace and defense systems. Loar has established relationships across leading aerospace and defense original equipment manufacturers and Tier Ones worldwide.
Non-GAAP Supplemental Information
We present in this press release certain financial information based on our EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Earnings Per Share. References to "EBITDA" mean earnings before interest, taxes, depreciation and amortization, references to "Adjusted EBITDA" mean EBITDA plus, as applicable for each relevant period, certain adjustments as set forth in the reconciliations of net income (loss) to EBITDA and Adjusted EBITDA, and references to "Adjusted EBITDA Margin" refer to Adjusted EBITDA divided by net sales. References to "Adjusted Earnings Per Share" mean net income plus certain adjustments as set forth in the reconciliations below to derive Adjusted EBITDA from EBITDA, less the tax effect of these adjustments. EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Earnings Per Share are not measurements of financial performance under U.S. GAAP. We present EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Earnings Per Share because we believe they are useful indicators for evaluating operating performance. In addition, our management uses Adjusted EBITDA to review and assess the performance of the management team in connection with employee incentive programs and to prepare its annual budget and financial projections. Moreover, our management uses Adjusted EBITDA of target companies to evaluate acquisitions..
Although we use EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Earnings Per Share as measures to assess the performance of our business and for the other purposes set forth above, the use of non-GAAP financial measures as analytical tools has limitations, and you should not consider any of them in isolation, or as a substitute for analysis of our results of operations as reported in accordance with U.S. GAAP. Some of these limitations are:
EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin do not reflect the significant interest expense, or the cash requirements necessary to service interest payments on our indebtedness.
Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and the cash requirements for such replacements are not reflected in EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin.
EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Earnings Per Share exclude the cash expense we have incurred to integrate acquired businesses into our operations, which is a necessary element of certain of our acquisitions.
The omission of the substantial amortization expense associated with our intangible assets further limits the usefulness of EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin; and
EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin do not include the payment of taxes, which is a necessary element of our operations.
Because of these limitations, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Earnings Per Share should not be considered as measures of cash available to us to invest in the growth of our business. Management compensates for these limitations by not viewing EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Earnings Per Share in isolation and specifically by using other U.S. GAAP measures, such as net sales and operating profit, to measure our operating performance. EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Earnings Per Share are not measurements of financial performance under U.S. GAAP, and they should not be considered as alternatives to net income (loss) or cash flow from operations determined in accordance with U.S. GAAP. Our calculations of EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Earnings Per Share may not be comparable to the calculations of similarly titled measures reported by other companies.
Future Looking Statements
This press release includes express or implied forward-looking statements. Forward-looking statements include all statements that are not historical facts including those that reflect our current views with respect to, among other things, our operations and financial performance. The words "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "future," "will," "seek," "foreseeable," the negative version of these words or similar terms and phrases may identify forward-looking statements in this press release, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements contained in this press release, including, but not limited to, the statements under the heading "Full Year 2024 Outlook - Revised Upward," are based on management's current expectations and are not guarantees of future performance. Our expectations and beliefs are expressed in management's good faith, and we believe there is a reasonable basis for them, however, the forward-looking statements are subject to various known and unknown risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Actual results may differ materially from these expectations due to changes in global, regional, or local economic, business, competitive, market, regulatory, and other factors, many of which are beyond our control. We believe that these factors include but are not limited to the following: the almost exclusive focus of our business on the aerospace and defense industry; our heavy reliance on certain customers for a significant portion of our sales; the fact that we have in the past consummated acquisitions and our intention to continue to pursue acquisitions, and that our business may be adversely affected if we cannot consummate acquisitions on satisfactory terms, or if we cannot effectively integrate acquired operations; and the other risks and uncertainties described under "Risk Factors" of the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 filed with the Securities and Exchange Commission ("SEC") on May 14, 2024, as well as the Company's Quarterly Report on Form 10-Q that will be filed following this earnings release, and other periodic reports filed by the Company from time to time with the SEC.
These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual results may vary in material respects from those projected in the forward-looking statements. Any forward-looking statement made by us in this press release speaks only as of the date of this press release and is expressly qualified in its entirety by the cautionary statements included in this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, investments, or other strategic transactions we may make. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable law.
Contact
Ian McKillop
Loar Group Investor Relations
IR@loargroup.com
Loar Holdings Inc.
Table 1: - Condensed Consolidated Balance Sheets
(Unaudited, amounts in thousands except share amounts)
| June 30, |
|
| December 31, 2023 |
| |||
Assets |
|
|
|
|
|
| ||
|
|
|
|
|
|
| ||
Current assets: |
|
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 73,203 |
|
| $ | 21,489 |
|
Accounts receivable, net |
|
| 60,612 |
|
|
| 59,002 |
|
Inventories |
|
| 84,944 |
|
|
| 77,962 |
|
Other current assets |
|
| 14,490 |
|
|
| 11,830 |
|
Income taxes receivable |
|
| 336 |
|
|
| 393 |
|
Total current assets |
|
| 233,585 |
|
|
| 170,676 |
|
Property, plant and equipment |
|
| 70,754 |
|
|
| 72,174 |
|
Finance lease assets |
|
| 2,310 |
|
|
| 2,448 |
|
Operating lease assets |
|
| 5,959 |
|
|
| 6,297 |
|
Other long-term assets |
|
| 14,065 |
|
|
| 11,420 |
|
Intangible assets, net |
|
| 301,063 |
|
|
| 316,542 |
|
Goodwill |
|
| 472,589 |
|
|
| 470,888 |
|
Total assets |
| $ | 1,100,325 |
|
| $ | 1,050,445 |
|
|
|
|
|
|
|
|
| |
Liabilities and equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
| $ | 16,116 |
|
| $ | 12,876 |
|
Current portion of long-term debt |
|
| 2,498 |
|
|
| 6,896 |
|
Current portion of finance lease liabilities |
|
| 210 |
|
|
| 190 |
|
Current portion of operating lease liabilities |
|
| 606 |
|
|
| 609 |
|
Income taxes payable |
|
| 6,520 |
|
|
| 6,133 |
|
Accrued expenses and other current liabilities |
|
| 22,089 |
|
|
| 24,776 |
|
Total current liabilities |
|
| 48,039 |
|
|
| 51,480 |
|
Deferred income taxes |
|
| 33,918 |
|
|
| 36,785 |
|
Long-term debt, net |
|
| 248,159 |
|
|
| 528,582 |
|
Finance lease liabilities |
|
| 3,291 |
|
|
| 3,401 |
|
Operating lease liabilities |
|
| 5,490 |
|
|
| 5,802 |
|
Environmental liabilities |
|
| 1,080 |
|
|
| 1,145 |
|
Other long-term liabilities |
|
| 1,908 |
|
|
| 5,109 |
|
|
|
|
|
|
|
|
| |
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Equity: |
|
|
|
|
|
|
|
|
Preferred stock, |
|
| - |
|
|
| - |
|
Common stock, |
|
| 897 |
|
|
| - |
|
Additional paid-in capital |
|
| 790,397 |
|
|
| - |
|
Accumulated deficit |
|
| (32,901 | ) |
|
| - |
|
Accumulated other comprehensive income |
|
| 47 |
|
|
| - |
|
Member's equity |
|
| - |
|
|
| 418,141 |
|
Total equity |
|
| 758,440 |
|
|
| 418,141 |
|
Total liabilities and equity |
| $ | 1,100,325 |
|
| $ | 1,050,445 |
|
Loar Holdings Inc.
Table - 2: Condensed Consolidated Statements of Operations
(Unaudited, amounts in thousands except per common share and per common unit amounts)
| Three Months Ended June 30, |
|
| Six Months Ended June 30, |
| ||||||||||||
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||||
Net sales |
| $ | 97,015 |
|
| $ | 73,989 |
|
| $ | 188,859 |
|
|
| $ | 148,235 |
|
Cost of sales |
|
| 49,489 |
|
|
| 36,517 |
|
|
| 96,900 |
|
|
|
| 74,728 |
|
Gross profit |
|
| 47,526 |
|
|
| 37,472 |
|
|
| 91,959 |
|
|
|
| 73,507 |
|
Selling, general and administrative expenses |
|
| 27,276 |
|
|
| 19,502 |
|
|
| 50,176 |
|
|
|
| 38,347 |
|
Transaction expenses |
|
| 929 |
|
|
| 421 |
|
|
| 1,105 |
|
|
|
| 604 |
|
Other income |
|
| 2,867 |
|
|
| 79 |
|
|
| 2,867 |
|
|
|
| 127 |
|
Operating income |
|
| 22,188 |
|
|
| 17,628 |
|
|
| 43,545 |
|
|
|
| 34,683 |
|
Interest expense, net |
|
| 10,636 |
|
|
| 16,568 |
|
|
| 28,370 |
|
|
|
| 31,970 |
|
Refinancing costs |
|
| 1,645 |
|
|
| - |
|
|
| 1,645 |
|
|
|
| - |
|
Income before income taxes |
|
| 9,907 |
|
|
| 1,060 |
|
|
| 13,530 |
|
|
|
| 2,713 |
|
Income tax provision |
|
| (2,266) |
|
|
| (437) |
|
|
| (3,640) |
|
|
|
| (9,609) |
|
Net income (loss) |
| $ | 7,641 |
|
| $ | 623 |
|
| $ | 9,890 |
|
|
| $ | (6,896) |
|
Net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | 0.09 |
|
| n/a |
|
| $ | 0.11 |
|
| n/a |
| |||
Diluted |
| $ | 0.09 |
|
| n/a |
|
| $ | 0.11 |
|
| n/a |
| |||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Basic |
|
| 87,534 |
|
| n/a |
|
|
| 87,534 |
|
| n/a |
| |||
Diluted |
|
| 89,242 |
|
| n/a |
|
|
| 89,242 |
|
| n/a |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net income (loss) per common unit |
|
| n/a |
|
| $ | 3,061.24 |
|
|
| n/a |
|
|
| $ | (33,799.70) |
|
Weighted average common units outstanding - basic and diluted |
|
| n/a |
|
|
| 204 |
|
|
| n/a |
|
|
|
| 204 |
|
Loar Holdings Inc.
Table 3: - Condensed Consolidated Statements of Cash Flows
(Unaudited, amounts in thousands)
| Six Months Ended June 30, |
| ||||||
| 2024 |
|
| 2023 |
| |||
Operating Activities |
|
|
|
|
|
| ||
Net income (loss) |
| $ | 9,890 |
|
| $ | (6,896 | ) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
Depreciation |
|
| 5,408 |
|
|
| 4,983 |
|
Amortization of intangibles and other long-term assets |
|
| 14,304 |
|
|
| 13,768 |
|
Amortization of debt issuance costs |
|
| 692 |
|
|
| 1,724 |
|
Stock-based compensation |
|
| 4,474 |
|
|
| 186 |
|
Deferred income taxes |
|
| (2,451 | ) |
|
| 5,343 |
|
Non-cash lease expense |
|
| 277 |
|
|
| 397 |
|
Refinancing costs |
|
| 1,645 |
|
|
| - |
|
Other income |
|
| (2,867 | ) |
|
| - |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
| (1,714 | ) |
|
| (5,969 | ) |
Inventories |
|
| (7,201 | ) |
|
| (9,397 | ) |
Other assets |
|
| (4,550 | ) |
|
| (2,377 | ) |
Accounts payable |
|
| 3,428 |
|
|
| 1,906 |
|
Other liabilities |
|
| (3,123 | ) |
|
| (3,865 | ) |
Environmental liabilities |
|
| (65 | ) |
|
| (29 | ) |
Operating lease liabilities |
|
| (252 | ) |
|
| (407 | ) |
Net cash provided by (used in) operating activities |
|
| 17,895 |
|
|
| (633 | ) |
|
|
|
|
|
|
|
| |
Investing Activities |
|
|
|
|
|
|
|
|
Capital expenditures |
|
| (4,452 | ) |
|
| (4,731 | ) |
Proceeds from sale of fixed assets |
|
| 322 |
|
|
| - |
|
Proceeds from acquisition purchase price adjustment |
|
| 289 |
|
|
| - |
|
Net cash used in investing activities |
|
| (3,841 | ) |
|
| (4,731 | ) |
|
|
|
|
|
|
|
| |
Financing Activities |
|
|
|
|
|
|
|
|
Net proceeds from issuance of common stock |
|
| 325,731 |
|
|
| - |
|
Payments of long-term debt |
|
| (286,349 | ) |
|
| (2,597 | ) |
Proceeds from issuance of long-term debt |
|
| - |
|
|
| 20,000 |
|
Financing costs and other, net |
|
| (1,6760 | ) |
|
| (400 | ) |
Payments of finance lease liabilities |
|
| (900 | ) |
|
| (72 | ) |
Net cash provided by financing activities |
|
| 37,616 |
|
|
| 16,931 |
|
|
|
|
|
|
|
|
| |
Effect of translation adjustments on cash and cash equivalents |
|
| 44 |
|
|
| (272 | ) |
Net increase in cash and cash equivalents |
|
| 51,714 |
|
|
| 11,295 |
|
|
|
|
|
|
|
|
| |
Cash and cash equivalents, beginning of period |
|
| 21,489 |
|
|
| 35,497 |
|
Cash and cash equivalents, end of period |
| $ | 73,203 |
|
| $ | 46,792 |
|
|
|
|
|
|
|
|
| |
Supplemental information |
|
|
|
|
|
|
|
|
Interest paid during the period, net of capitalized amounts |
| $ | 28,035 |
|
| $ | 30,544 |
|
Income taxes paid during the period, net |
| $ | 5,596 |
|
| $ | 4,131 |
|
Loar Holdings Inc.
Table - 4: Reconciliation of Net income (Loss) to EBITDA and Adjusted EBITDA
(Unaudited, amounts in thousands)
| Three Months Ended June 30, |
|
| Six Months Ended June 30, |
| |||||||||||
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| |||||
Net income (loss) |
| $ | 7,641 |
|
| $ | 623 |
|
| $ | 9,890 |
|
| $ | (6,896 | ) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
| 10,636 |
|
|
| 16,568 |
|
|
| 28,370 |
|
|
| 31,970 |
|
Refinancing costs |
|
| 1,645 |
|
|
| - |
|
|
| 1,645 |
|
|
| - |
|
Income tax provision |
|
| 2,266 |
|
|
| 437 |
|
|
| 3,640 |
|
|
| 9,609 |
|
Operating income |
|
| 22,188 |
|
|
| 17,628 |
|
|
| 43,545 |
|
|
| 34,683 |
|
Depreciation |
|
| 2,730 |
|
|
| 2,537 |
|
|
| 5,408 |
|
|
| 4,983 |
|
Amortization |
|
| 7,039 |
|
|
| 6,888 |
|
|
| 14,304 |
|
|
| 13,768 |
|
EBITDA |
|
| 31,957 |
|
|
| 27,053 |
|
|
| 63,257 |
|
|
| 53,434 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (1) |
|
| (2,867 | ) |
|
| (79 | ) |
|
| (2,867 | ) |
|
| (127 | ) |
Transaction expenses (2) |
|
| 929 |
|
|
| 421 |
|
|
| 1,105 |
|
|
| 604 |
|
Stock-based compensation (3) |
|
| 4,387 |
|
|
| 93 |
|
|
| 4,474 |
|
|
| 186 |
|
Acquisition and facility integration costs (4) |
|
| 625 |
|
|
| 248 |
|
|
| 2,093 |
|
|
| 485 |
|
Adjusted EBITDA |
| $ | 35,031 |
|
| $ | 27,736 |
|
| $ | 68,062 |
|
| $ | 54,582 |
|
Net sales |
| $ | 97,015 |
|
| $ | 73,989 |
|
| $ | 188,859 |
|
| $ | 148,235 |
|
Net income (loss) margin |
|
| 7.9 | % |
|
| 0.8 | % |
|
| 5.2 | % |
|
| (4.7 | )% |
Adjusted EBITDA Margin |
|
| 36.1 | % |
|
| 37.5 | % |
|
| 36.0 | % |
|
| 36.8 | % |
Represents the reduction in the estimated contingent purchase price for the CAV Group Limited acquisition in 2024 and a grant from the U.S. Department of Transportation under the Aviation Manufacturing Jobs Protection Program in 2023.
Represents third party transaction-related costs for acquisitions comprising deal fees, legal, financial and tax due diligence expenses, and valuation costs that are required to be expensed as incurred.
Represents the non-cash compensation expense recognized by the Company for equity awards.
Represents costs incurred to integrate acquired businesses and product lines into our operations, facility relocation costs and other acquisition-related costs.
Loar Holdings Inc.
Table - 5: Sales by End-Market
(Unaudited, amounts in thousands)
| Three Months Ended June 30, |
| ||||||||||||||||||||||
| 2024 |
|
| 2023 |
| |||||||||||||||||||
| OEM |
|
| Aftermarket |
|
| Total |
|
| OEM |
|
| Aftermarket |
|
| Total |
| |||||||
Commercial Aerospace |
| $ | 14,299 |
|
| $ | 26,894 |
|
| $ | 41,193 |
|
| $ | 13,702 |
|
| $ | 20,211 |
|
| $ | 33,913 |
|
Business Jet and General Aviation |
|
| 17,438 |
|
|
| 9,725 |
|
|
| 27,163 |
|
|
| 10,430 |
|
|
| 6,308 |
|
|
| 16,738 |
|
Total Commercial |
|
| 31,737 |
|
|
| 36,619 |
|
|
| 68,356 |
|
|
| 24,132 |
|
|
| 26,519 |
|
|
| 50,651 |
|
Defense |
|
| 8,855 |
|
|
| 12,022 |
|
|
| 20,877 |
|
|
| 7,150 |
|
|
| 5,996 |
|
|
| 13,146 |
|
Other |
|
| 3,451 |
|
|
| 4,331 |
|
|
| 7,782 |
|
|
| 5,066 |
|
|
| 5,126 |
|
|
| 10,192 |
|
Total |
| $ | 44,043 |
|
| $ | 52,972 |
|
| $ | 97,015 |
|
| $ | 36,348 |
|
| $ | 37,641 |
|
| $ | 73,989 |
|
| Six Months Ended June 30, |
| ||||||||||||||||||||||
| 2024 |
|
| 2023 |
| |||||||||||||||||||
| OEM |
|
| Aftermarket |
|
| Total |
|
| OEM |
|
| Aftermarket |
|
| Total |
| |||||||
Commercial Aerospace |
| $ | 30,492 |
|
| $ | 52,043 |
|
| $ | 82,535 |
|
| $ | 25,913 |
|
| $ | 43,130 |
|
| $ | 69,043 |
|
Business Jet and General Aviation |
|
| 33,645 |
|
|
| 19,132 |
|
|
| 52,777 |
|
|
| 19,690 |
|
|
| 12,787 |
|
|
| 32,477 |
|
Total Commercial |
|
| 64,137 |
|
|
| 71,175 |
|
|
| 135,312 |
|
|
| 45,603 |
|
|
| 55,917 |
|
|
| 101,520 |
|
Defense |
|
| 16,641 |
|
|
| 20,871 |
|
|
| 37,512 |
|
|
| 14,542 |
|
|
| 13,838 |
|
|
| 28,380 |
|
Other |
|
| 7,751 |
|
|
| 8,284 |
|
|
| 16,035 |
|
|
| 9,656 |
|
|
| 8,679 |
|
|
| 18,335 |
|
Total |
| $ | 88,529 |
|
| $ | 100,330 |
|
| $ | 188,859 |
|
| $ | 69,801 |
|
| $ | 78,434 |
|
| $ | 148,235 |
|
Loar Holdings Inc.
Table - 6: Reconciliation of Earnings Per Share to Adjusted Earnings Per Share
(Unaudited, amounts in thousands except per share amounts)
| Three Months Ended June 30, |
|
| Six Months Ended June 30, |
| |||
| 2024 |
|
| 2024 |
| |||
Reported earnings per share |
|
|
|
|
|
| ||
Net income |
| $ | 7,641 |
|
| $ | 9,890 |
|
Denominator for basic and diluted earnings per common share: |
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding - basic |
|
| 87,534 |
|
|
| 87,534 |
|
Effect of dilutive common shares |
|
| 1,708 |
|
|
| 1,708 |
|
Weighted average common shares outstanding-diluted |
|
| 89,242 |
|
|
| 89,242 |
|
Net income per common shares-basic |
| $ | 0.09 |
|
| $ | 0.11 |
|
Net income per common shares-diluted |
| $ | 0.09 |
|
| $ | 0.11 |
|
|
|
|
|
|
|
|
| |
Adjusted earnings per share |
|
|
|
|
|
|
|
|
Net income |
| $ | 7,641 |
|
| $ | 9,890 |
|
Refinancing costs |
|
| 1,645 |
|
|
| 1,645 |
|
Gross adjustments to EBITDA |
|
| 3,074 |
|
|
| 4,805 |
|
Tax adjustment (1) |
|
| (530 | ) |
|
| (1,115 | ) |
Adjusted net income |
| $ | 11,830 |
|
| $ | 15,225 |
|
Adjusted diluted earnings per share |
| $ | 0.13 |
|
| $ | 0.17 |
|
|
|
|
|
|
|
|
| |
Diluted earnings per share to adjusted earnings per share |
|
|
|
|
|
|
|
|
Net income per common shares-diluted |
| $ | 0.09 |
|
| $ | 0.11 |
|
Adjustments to diluted earnings per share: |
|
|
|
|
|
|
|
|
Refinancing costs |
|
| 0.02 |
|
|
| 0.02 |
|
Other income |
|
| (0.03 | ) |
|
| (0.03 | ) |
Transaction expenses |
|
| 0.01 |
|
|
| 0.01 |
|
Stock-based compensation |
|
| 0.05 |
|
|
| 0.05 |
|
Acquisition and facility integration costs |
|
| - |
|
|
| 0.02 |
|
Tax adjustment (1) |
|
| (0.01 | ) |
|
| (0.01 | ) |
Adjusted earnings per share |
| $ | 0.13 |
|
| $ | 0.17 |
|
For the three and six months ended June 30, 2024, the tax adjustment represents the tax effect of the adjustments at the applicable effective tax rate.
SOURCE: Loar Group Inc.
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FAQ
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