- Generated fourth quarter 2024 cash from operations of
$35.7 million up 6% over prior year period; Full year 2024 cash
from operations of $122.1 million, a company record, up 46%
compared to prior year period reflecting disciplined working
capital initiatives
- Reduced fourth quarter total debt by $33.9 million, the
sixth consecutive quarter of debt reduction; Improved net debt
to adjusted EBITDA leverage ratio again sequentially down to
2.6x from 2.8x ending 3Q24; Full year 2024 total debt
reduced by $75.3 million compared to last year
- Delivered fourth quarter net sales of $179.5 million
down 7% compared with prior year period; Full year net sales of
$805.9 million down 4% compared to last year
- Expanded fourth quarter gross margin 150 bps compared
with prior year period with strong operating margin improvement
of 120 bps as expected from improved efficiencies and cost
adjustments despite lower net sales; Full year gross margin flat
with operating margin improvement of 60 bps compared with prior
year period
- Achieved fourth quarter diluted EPS of $0.14 and diluted
Non-GAAP EPS of $0.33, up 40% and down 13%, respectively, over
prior-year period; Full year diluted EPS of $1.17 and diluted
Non-GAAP EPS of $2.10, up 3% and down 10%, respectively, over
prior-year period
- Initiating 2025 outlook with full year sales expected to
be -4% to +2%; Remain focused on working capital management,
operational efficiencies, cost discipline, and reducing
debt
Helios Technologies, Inc. (NYSE: HLIO) (“Helios” or the
“Company”), a global leader in highly engineered motion control and
electronic controls technology, today reported financial results
for the fourth quarter ended December 28, 2024.
“During fiscal year 2024, we had record cash generation,
strengthened our balance sheet and improved our financial
flexibility by reducing and refinancing our debt. We measurably
lowered our operating expenses and drove a new focus on our cash
conversion cycle with a concerted effort to reduce inventory. We
know we can achieve greater results as we were impacted by market
conditions that reduced our expectations for the year. Our team
maintained focus on innovation through the year launching many new
products. We are better positioned to expand margins with growth
and intend to re-energize our sales engine to capture greater
market share while increasing diversification in customers and
markets. Despite hurricanes, challenging market conditions, and
leadership changes, the global team united to support each other
and deliver on operational improvements that have enabled us to
expand margins in the quarter on softer revenue,” said Sean Bagan,
President, Chief Executive Officer, and Chief Financial Officer of
Helios.
“We are pivoting the organization to drive a customer centric,
sales-oriented culture that leverages the strengths of our
hydraulics and electronics engineering expertise, our high-quality
product portfolio and our solid customer relationships. We are
refining our go-to-market strategy by clearly identifying the
markets in which we are entitled to win, working to excel at
meeting our customers’ needs, valuing all of our channel partners
and focusing resources to consistently deliver at the highest
levels. Over the last few years, we have invested capital in our
operations and acquisitions. We plan to extract value and deliver
returns on that invested capital. We are also enhancing our capital
allocation strategy with the addition of a share repurchase
program. With the uncertain tariff landscape, now more than ever we
expect to continue with our operational strategy of “in the region,
for the region,” to optimize the cost of manufacturing operations
as well as consolidating our footprint where it makes sense. We
have an invaluable set of assets, strong cash flow engine, very
profitable business model, and some of the best talent and know how
on the planet in our respective industries. We are excited by the
opportunities that lie before us to support our customers' growth
for many years to come,” Mr. Bagan concluded.
Fourth Quarter 2024 Consolidated Results
For the Three Months
Ended
For the Year Ended
($ in millions, except per share data)
(Unaudited)
December 28, 2024
December 30, 2023
Change
% Change
December 28, 2024
December 30, 2023
Change
% Change
Net sales
$
179.5
$
193.4
$
(13.9
)
(7
%)
$
805.9
$
835.6
$
(29.7
)
(4
%)
Gross profit
$
54.0
$
55.3
$
(1.3
)
(2
%)
$
252.3
$
261.7
$
(9.4
)
(4
%)
Gross margin
30.1
%
28.6
%
150
bps
31.3
%
31.3
%
0
bps
Operating income
$
13.3
$
11.9
$
1.4
12
%
$
81.8
$
79.9
$
1.9
2
%
Operating margin
7.4
%
6.2
%
120
bps
10.2
%
9.6
%
60
bps
Non-GAAP adjusted operating margin*
13.3
%
12.6
%
70
bps
15.2
%
15.6
%
(40
)
bps
Net income
$
4.8
$
3.3
$
1.5
45
%
$
39.0
$
37.5
$
1.5
4
%
Diluted EPS
$
0.14
$
0.10
$
0.04
40
%
$
1.17
$
1.14
$
0.03
3
%
Non-GAAP net income*
$
10.9
$
12.4
$
(1.5
)
(12
%)
$
69.7
$
77.1
$
(7.4
)
(10
%)
Diluted Non-GAAP EPS*
$
0.33
$
0.38
$
(0.05
)
(13
%)
$
2.10
$
2.34
$
(0.24
)
(10
%)
Adjusted EBITDA*
$
31.2
$
32.3
$
(1.1
)
(3
%)
$
154.5
$
161.4
$
(6.9
)
(4
%)
Adjusted EBITDA margin*
17.4
%
16.7
%
70
bps
19.2
%
19.3
%
(10
)
bps
* Adjusted numbers are not measures determined in accordance
with generally accepted accounting principles in the United States,
commonly known as GAAP. Nevertheless, Helios believes that
providing these specific Non-GAAP figures are important for
investors and other readers of Helios financial statements, as they
are used as analytical indicators by Helios management to better
understand operating performance. These Non-GAAP financial measures
should be considered in addition to results prepared in accordance
with GAAP and should not be considered a substitute for GAAP.
Please carefully review the attached Non-GAAP reconciliations to
the most directly comparable GAAP measures and the related
additional information provided throughout. Because these metrics
are Non-GAAP measures and are thus susceptible to varying
calculations, these figures, as presented, may not be directly
comparable to other similarly titled measures used by other
companies.
Sales
- Changes in Market Mix: Compared with the fourth quarter of the
prior-year period, Electronics segment revenue was mostly unchanged
as the health & wellness market growth offset declines in
mobile and industrial markets; Hydraulics sales were down 10%
primarily reflecting the weakness in the agriculture, mobile and
industrial markets.
- By Region: sales in Asia Pacific ("APAC”) grew 3% while there
was an 8% decline in the Americas and a 16% decline in Europe, the
Middle East and Africa (“EMEA”) compared with the year ago
period.
- Other Impacts: foreign currency (FX) translation unfavorably
impacted sales by $0.1 million in the fourth quarter 2024.
Profits and margins
- Gross profit and margin impacts: gross profit declined 2%, or
$1.3 million compared with the year ago period despite the 7%
decline in sales. Gross margin expanded 150 basis points as the
impact of lower volume was offset by lower material costs and
reductions in overhead.
- Selling, engineering and administrative (“SEA”) expenses:
declined $2.4 million, or 7% compared with the year ago period
reflecting cost containment measures and reduced payroll and
benefit costs as a result of the officer transition mid year
2024.
- Amortization of intangible assets: $7.9 million down 4%
compared with the year ago period as some intangibles have become
fully amortized since the comparable period.
Non-operating items
- Net interest expense: declined $0.5 million in the quarter
compared with the year ago period as a result of lower debt
balances, lower rates, combined with refinanced lower spreads.
- Effective tax rate: fourth quarter and full year of 2024 was
37.2% and 22.8% compared with 23.3% and 23.8% in the corresponding
periods of 2023, respectively. These effective rates vary in
accordance with income levels and differing tax rates across the
countries where products are sold combined with discrete
items.
Net income, diluted earnings per share
(“EPS”), Non-GAAP EPS, and adjusted EBITDA margin
- GAAP net income: grew $1.5 million compared with the year ago
period primarily the result of a one-time gain on insurance
recoveries related to the 2023 fire and weather-related incidents
at our Faster facility in Italy. On a per diluted share basis, net
income increased 40%, or $0.04, to $0.14.
- Diluted Non-GAAP EPS: decreased $0.05, or 13% compared with the
year ago period.
- Adjusted EBITDA margin: expanded 70 basis points compared with
the year ago period reflecting the improvements discussed
earlier.
Hydraulics Segment Review
(Refer to sales by geographic region and segment data in
accompanying tables)
Hydraulics
For the Three Months
Ended
($ in millions) (Unaudited)
December 28, 2024
December 30, 2023
Change
% Change
Net Sales
Americas
$
51.7
$
60.2
$
(8.5
)
(14
%)
EMEA
32.1
38.1
(6.0
)
(16
%)
APAC
35.9
35.4
0.5
1
%
Total Segment Sales
$
119.7
$
133.7
$
(14.0
)
(10
%)
Gross Profit
$
35.5
$
41.2
$
(5.7
)
(14
%)
Gross Margin
29.7
%
30.8
%
(110
)
bps
SEA Expenses
$
19.0
$
21.2
$
(2.2
)
(10
%)
Operating Income
$
16.5
$
20.0
$
(3.5
)
(18
%)
Operating Margin
13.8
%
15.0
%
(120
)
bps
Fourth Quarter 2024 Hydraulics Segment
Review
- Sales: modestly improved sales in APAC partially offset the
declines in the Americas and EMEA resulting in a consolidated
decline of 10% compared to last year. Lower sales were primarily
driven by softness in the agriculture and mobile end markets. FX
had a unfavorable $0.1 million impact on sales.
- Gross profit and margin drivers: lower gross profit and margin
reflected lost leverage on lower volume compared with the year ago
period.
- Operating income and operating margin: lower operating income
primarily reflect lower sales which were only partially offset by
SEA expenses declining 10% over the year ago period.
Electronics Segment Review
(Refer to sales by geographic region and segment data in
accompanying tables)
Electronics
For the Three Months
Ended
($ in millions) (Unaudited)
December 28, 2024
December 30, 2023
Change
% Change
Net Sales
Americas
$
49.1
$
48.8
$
0.3
1
%
EMEA
4.7
5.8
(1.1
)
(19
%)
APAC
6.0
5.1
0.9
18
%
Total Segment Sales
$
59.8
$
59.7
$
0.1
0
%
Gross Profit
$
18.5
$
14.1
$
4.4
31
%
Gross Margin
30.9
%
23.6
%
730
bps
SEA Expenses
$
13.1
$
13.1
$
-
0
%
Operating Income
$
5.4
$
1.0
$
4.4
440
%
Operating Margin
9.0
%
1.7
%
730
bps
Fourth Quarter 2024 Electronics Segment
Review
- Sales: were relatively unchanged as demand in APAC and the
Americas offset the decline in EMEA. Higher sales in health and
wellness partially offset continued softness in mobile and
industrial end markets compared with the year ago period.
- Gross profit and margin drivers: gross profit increased 31% and
gross margin expanded 730 basis points as a result of operational
improvements, leveraging lower cost manufacturing and lower
material costs.
- Operating income and operating margin: the growth in operating
income of 440% and expansion of operating margin of 730 bps,
compared with the year ago period reflecting stronger gross profit
and containment of SEA expenses.
Strengthening Cash Flow, Balance Sheet and Financial
Flexibility
- Net cash provided by operations: Generated $35.7 million in the
fourth quarter 2024, up 6% compared with the year ago period.
- Continued debt reduction: total debt at December 28, 2024 was
$449.5 million down 14% from $524.8 million at December 30,
2023.
- Cash and cash equivalents: as of December 28, 2024, were $44.1
million up 36% compared with the year ago period.
- Inventory: as planned continued to decline to $190.1 million
down 12% from the end of 2023. The optimized inventory levels
reflect the execution of a plan to align with sales trends.
- Net debt-to-adjusted EBITDA leverage ratio: improved to 2.6x at
year end compared with 3.0x at the end of 2023. At the end of the
2024, the Company had $352.4 million available on its revolving
lines of credit.
- Capital expenditures: were $7.4 million in the fourth quarter
2024 totaling $27.0 million for the full year 2024 or 3.4% of
sales, down 21% as planned.
- Dividends: Paid 112th consecutive quarterly cash dividend of
$0.09 per share on January 20, 2025, a history of over 27
consecutive years of dividends.
Initiating Full Year 2025 Outlook:
Mr. Bagan continued, “I am confident we are a better
organization than we were a year ago. We are structured to be a
more nimble and responsive enterprise to meet our customers’ needs.
We can deliver continuous improvement over time by driving
operational excellence and timely delivery of highly engineered,
quality products to our customers. We are increasing the
collaboration within the organization and raising the understanding
of each team members' role in creating value for our customers and
shareholders. While 2025 will continue to present challenges, such
as the fluid tariff situation, we remain cautious about near-term
macro conditions and are factoring that into our outlook. We
acknowledge that markets could improve through the year, and as
such, the effect of our customer-centric focus should enhance our
market positions.”
The following provides the Company’s expectations for 2025 as of
February 24, 2025. This assumes constant currency, using 2024 year
end foreign exchange rates.
2024 Actual
2025 Outlook
Total net sales
$805.9 million
$775 - $825 million
Net income
$39.0 million
$46 - $53 million
Adjusted EBITDA
$154.5 million
$140 - $165 million
Adjusted EBITDA margin
19.2%
18.0% - 20.0%
Interest expense
$33.8 million
$27 - $29 million
Effective tax rate
23%
22% - 24%
Depreciation
$30.7 million
$32 - $33 million
Amortization
$33.1 million
$33 - $34 million
Capital expenditures % net sales
3.4% of sales
3.25% - 3.75%
Diluted EPS
$1.17
$1.19 - $1.59
Diluted Non-GAAP EPS
$2.10
$2.00 - $2.40
Forward-looking adjusted EBITDA, adjusted EBITDA margin and
diluted Non-GAAP EPS represent Non-GAAP financial measures. The
Company has presented the comparable GAAP figures in the table
above. See comments on reconciliation of forward-looking non-GAAP
financial measures in the Forward-Looking Information included in
this release describing the safe harbor provided within the meaning
of Section 21E of the Securities Exchange Act of 1934.
Webcast
The Company will host a conference call and webcast tomorrow,
Tuesday, February 25, 2025, at 9:00 a.m. Eastern Time to review its
financial and operating results and discuss its corporate outlook.
A question-and-answer session will follow. The conference call can
be accessed by calling (201) 689-8573. The audio webcast will be
available at www.heliostechnologies.com.
A telephonic replay will be available from approximately 1:00
p.m. ET on the day of the call through Tuesday, March 11, 2025. To
listen to the archived call, dial (412) 317-6671 and enter
conference ID number 13751073. The webcast replay will be available
in the investor relations section of the Company’s website at
www.heliostechnologies.com.
About Helios Technologies
Helios Technologies is a global leader in highly engineered
motion control and electronic controls technology for diverse end
markets, including construction, material handling, agriculture,
energy, recreational vehicles, marine and health and wellness.
Helios sells its products to customers in over 90 countries around
the world. Its strategy for growth is to be the leading provider in
niche markets, with premier products and solutions through
innovative product development and acquisitions. The Company has
paid a cash dividend to its shareholders every quarter since
becoming a public company in 1997. For more information please
visit: www.heliostechnologies.com and follow us on LinkedIn.
FORWARD-LOOKING INFORMATION
This news release contains “forward‐looking statements” within
the meaning of Section 21E of the Securities Exchange Act of 1934.
Forward‐looking statements involve risks and uncertainties, and
actual results may differ materially from those expressed or
implied by such statements. They include statements regarding
current expectations, estimates, forecasts, projections, our
beliefs, and assumptions made by Helios Technologies, Inc.
(“Helios” or the “Company”), its directors or its officers about
the Company and the industry in which it operates, and assumptions
made by management, and include among other items, (i) the
Company’s strategies regarding growth, including its intention to
develop new products and make acquisitions; (ii) the effectiveness
of creating the Centers of Excellence; (iii) trends affecting the
Company’s financial condition or results of operations; (iv) the
Company’s ability to continue to control costs and to meet its
liquidity and other financing needs; (v) the Company’s ability to
declare and pay dividends; and (vi) the Company’s ability to
respond to changes in customer demand domestically and
internationally, including as a result of the cyclical nature of
our business and the standardization. In addition, we may make
other written or oral statements, which constitute forward-looking
statements, from time to time. Words such as “may,” “expects,”
“projects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,”
“estimates,” variations of such words, and similar expressions are
intended to identify such forward-looking statements. Similarly,
statements that describe our future plans, objectives or goals also
are forward-looking statements. These statements are not
guaranteeing future performance and are subject to a number of
risks and uncertainties. Our actual results may differ materially
from what is expressed or forecasted in such forward-looking
statements, and undue reliance should not be placed on such
statements. All forward-looking statements are made as of the date
hereof, and we undertake no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Factors that could cause the actual results to differ materially
from what is expressed or forecasted in such forward‐looking
statements include, but are not limited to, (i) risks related to
the Company’s previous investigation of its former CEO and the
related management transition that is in process (ii) the Company’s
ability to respond to global economic trends and changes in
customer demand domestically and internationally, including as a
result of standardization and the cyclical nature of our business,
which can adversely affect the demand for capital goods; (iii)
supply chain disruption and the potential inability to procure
goods; (iv) conditions in the capital markets, including the
interest rate environment and the availability of capital on terms
acceptable to us, or at all; (v) global and regional economic and
political conditions, including the recently announced and
potentially contemplated tariffs by the new U.S. presidential
administration, inflation, exchange rates, changes in the cost or
availability of energy, transportation, the availability of other
necessary supplies and services and recession; (vi) changes in the
competitive marketplace that could affect the Company’s revenue
and/or cost bases, such as increased competition, lack of qualified
engineering, marketing, management or other personnel, and
increased labor and raw materials costs; (vii) risks related to
health epidemics, pandemics and similar outbreaks, which may among
other things, adversely affect our supply chain, material costs,
and work force and may have material adverse effects on our
business, financial position, results of operations and/or cash
flows; (viii) risks from acute events like hurricanes, floods,
tornadoes, and wildfires, as well as chronic risks from longer-term
weather patterns like drought, sea level rise, and higher
temperatures; (ix) risks related to our international operations,
including the potential impact of the ongoing conflict in Ukraine
and the Middle East; (x) new product introductions, product sales
mix and the geographic mix of sales nationally and internationally;
and (xi) stakeholders, including regulators, views regarding our
environmental, social and governance goals and initiatives, and the
impact of factors outside of our control on such goals and
initiatives. Further information relating to additional factors
that could cause actual results to differ from those anticipated is
included but not limited to information under the heading Item 1.
“Business” and Item 1A. “Risk Factors” in the Company’s Form 10-K
for the year ended December 30, 2023 filed with the Securities and
Exchange Commission (SEC) on February 27, 2024 as well as our
upcoming 10-K to be filed with the SEC.
Helios has presented non-GAAP measures including adjusted
operating income, adjusted operating margin, EBITDA, EBITDA margin,
adjusted EBITDA, adjusted EBITDA margin, net debt-to-adjusted
EBITDA, adjusted net income, and adjusted net income per diluted
share and sales in constant currency. Helios believes that
providing these specific Non-GAAP figures are important for
investors and other readers of Helios financial statements, as they
are used as analytical indicators by Helios management to better
understand operating performance. The determination of the amounts
that are excluded from these Non-GAAP measures is a matter of
management judgment and depends upon, among other factors, the
nature of the underlying expense or income recognized in a given
period. You should not consider the inclusion of this additional
information in isolation or as a substitute for results prepared in
accordance with GAAP. Please carefully review the Non-GAAP
reconciliations to the most directly comparable GAAP measures and
the related additional information provided throughout. Because
these metrics are Non-GAAP measures and are thus susceptible to
varying calculations, these figures, as presented, may not be
directly comparable to other similarly titled measures used by
other companies.
This news release also presents forward-looking statements
regarding Non-GAAP measures, including adjusted EBITDA, adjusted
EBITDA margin and adjusted net income per diluted share. The
Company is unable to present a quantitative reconciliation of these
forward-looking Non-GAAP financial measures to their most directly
comparable forward-looking GAAP financial measures because such
information is not available, and management cannot reliably
predict the necessary components of such GAAP measures without
unreasonable effort or expense. In addition, the Company believes
that such reconciliations would imply a degree of precision that
would be confusing or misleading to investors. The unavailable
information could have a significant impact on the Company’s 2025
financial results. These Non-GAAP financial measures are
preliminary estimates and are subject to risks and uncertainties,
including, among others, changes in connection with quarter-end and
year-end adjustments. Any variation between the Company’s actual
results and preliminary financial data set forth above may be
material.
Financial Tables Follow:
HELIOS TECHNOLOGIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In millions, except per share
data)
(Unaudited)
For the Three Months
Ended
For the Year Ended
December 28,
December 30,
%
December 28,
December 30,
%
2024
2023
Change
2024
2023
Change
Net sales
$
179.5
$
193.4
(7
%)
$
805.9
$
835.6
(4
%)
Cost of sales
125.5
138.1
(9
%)
553.6
573.9
(4
%)
Gross profit
54.0
55.3
(2
%)
252.3
261.7
(4
%)
Gross margin
30.1
%
28.6
%
31.3
%
31.3
%
Selling, engineering and administrative
expenses
32.8
35.2
(7
%)
139.0
148.9
(7
%)
Amortization of intangible assets
7.9
8.2
(4
%)
31.5
32.9
(4
%)
Operating income
13.3
11.9
12
%
81.8
79.9
2
%
Operating margin
7.4
%
6.2
%
10.2
%
9.6
%
Interest expense, net
8.1
8.6
(6
)%
33.8
31.2
8
%
Foreign currency transaction loss, net
0.8
-
-
1.3
0.6
117
%
Other non-operating (income) expense,
net
(3.2
)
(1.0
)
220
%
(3.8
)
(1.1
)
245
%
Income before income taxes
7.6
4.3
77
%
50.5
49.2
3
%
Income tax provision
2.8
1.0
180
%
11.5
11.7
(2
%)
Net income
$
4.8
$
3.3
45
%
$
39.0
$
37.5
4
%
Net income per share:
Basic
$
0.14
$
0.10
40
%
$
1.17
$
1.14
3
%
Diluted
$
0.14
$
0.10
40
%
$
1.17
$
1.14
3
%
Weighted average shares
outstanding:
Basic
33.2
33.1
33.2
32.9
Diluted
33.4
33.1
33.3
33.0
Dividends declared per share
$
0.09
$
0.09
$
0.36
$
0.36
HELIOS TECHNOLOGIES
CONSOLIDATED BALANCE
SHEETS
(In millions, except per share
data)
December 28, 2024
December 30, 2023
Assets
Current assets:
Cash and cash equivalents
$
44.1
$
32.4
Accounts receivable, net of allowance for
credit losses of $2.4 and $2.1
104.6
114.8
Inventories, net
190.1
215.1
Income taxes receivable
15.1
11.3
Other current assets
30.3
23.1
Total current assets
384.2
396.7
Property, plant and equipment, net
216.4
227.9
Deferred income taxes
2.1
1.7
Goodwill
498.9
514.0
Other intangible assets, net
384.0
426.4
Other assets
19.8
23.7
Total assets
$
1,505.4
$
1,590.4
Liabilities and shareholders’
equity
Current liabilities:
Accounts payable
$
56.7
$
70.3
Accrued compensation and benefits
24.6
19.4
Other accrued expenses and current
liabilities
25.8
27.0
Current portion of long-term non-revolving
debt, net
16.0
23.2
Dividends payable
3.0
3.0
Income taxes payable
12.5
2.0
Total current liabilities
138.6
144.9
Revolving lines of credit
147.3
199.8
Long-term non-revolving debt, net
283.2
298.3
Deferred income taxes
41.1
57.1
Other noncurrent liabilities
30.8
35.7
Total liabilities
641.0
735.8
Commitments and contingencies
Shareholders’ equity:
Preferred stock, par value $0.001, 2.0
shares authorized, no shares issued or outstanding
-
-
Common stock, par value $0.001, 100.0
shares authorized, 33.3 and 33.1 shares issued and outstanding
-
-
Capital in excess of par value
437.4
434.4
Retained earnings
502.6
475.6
Accumulated other comprehensive loss
(75.6
)
(55.4
)
Total shareholders’ equity
864.4
854.6
Total liabilities and shareholders’
equity
$
1,505.4
$
1,590.4
HELIOS TECHNOLOGIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In millions)
For the Year Ended
December 28, 2024
December 30, 2023
Cash flows from operating
activities:
Net income
$
39.0
$
37.5
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation and amortization
63.8
63.8
Stock-based compensation expense
3.4
11.6
Amortization of debt issuance costs
1.1
0.6
Benefit for deferred income taxes
(8.3
)
(7.9
)
Forward contract losses, net
-
0.3
Other, net
3.2
-
(Increase) decrease in, net of
acquisitions:
Accounts receivable
7.3
16.3
Inventories
19.4
(17.9
)
Income taxes receivable
(3.8
)
0.3
Other current assets
(8.1
)
(5.5
)
Other assets
5.1
(3.8
)
Increase (decrease) in, net of
acquisitions:
Accounts payable
(11.8
)
(5.2
)
Accrued expenses and other liabilities
5.7
(5.8
)
Income taxes payable
10.7
(1.6
)
Other noncurrent liabilities
(4.6
)
3.9
Contingent consideration payments in
excess acquisition date fair value
-
(2.7
)
Net cash provided by operating
activities
122.1
83.9
Cash flows from investing
activities:
Business acquisitions, net of cash
acquired
-
(114.2
)
Capital expenditures
(27.0
)
(34.3
)
Proceeds from dispositions of property,
plant and equipment
0.1
0.3
Cash settlement of forward contracts
-
0.4
Software development costs
(3.4
)
(6.1
)
Net cash used in investing
activities
(30.3
)
(153.9
)
Cash flows from financing
activities:
Borrowings on revolving credit
facilities
41.6
189.2
Repayment of borrowings on revolving
credit facilities
(88.7
)
(252.0
)
Borrowings on long-term non-revolving
debt
126.8
160.0
Repayment of borrowings on long-term
non-revolving debt
(147.7
)
(21.5
)
Proceeds from stock issued
2.2
2.0
Dividends to shareholders
(11.9
)
(11.8
)
Payment of employee tax withholding on
equity award vestings
(2.6
)
(2.2
)
Payment of contingent consideration
liability
-
(3.4
)
Proceeds received upon termination of Cash
Flow hedge instruments
7.1
-
Other financing activities
(5.2
)
(2.4
)
Net cash (used in) provided by
financing activities
(78.4
)
57.9
Effect of exchange rate changes on cash
and cash equivalents
(1.7
)
0.8
Net increase (decrease) in cash and
cash equivalents
11.7
(11.3
)
Cash and cash equivalents, beginning of
period
32.4
43.7
Cash and cash equivalents, end of
period
$
44.1
$
32.4
HELIOS TECHNOLOGIES
SEGMENT DATA
(In millions)
(Unaudited)
For the Three Months
Ended
For the Year Ended
December 28, 2024
December 30, 2023
December 28, 2024
December 30, 2023
Net Sales:
Hydraulics
$
119.7
$
133.7
$
537.2
$
565.8
Electronics
59.8
59.7
268.7
269.8
Consolidated
$
179.5
$
193.4
$
805.9
$
835.6
Gross profit and margin:
Hydraulics
$
35.5
$
41.2
$
165.8
$
181.8
29.7
%
30.8
%
30.9
%
32.1
%
Electronics
18.5
14.1
86.5
79.9
30.9
%
23.6
%
32.2
%
29.6
%
Consolidated
$
54.0
$
55.3
$
252.3
$
261.7
30.1
%
28.6
%
31.3
%
31.3
%
Operating income (loss) and margin:
Hydraulics
$
16.5
$
20.0
$
86.4
$
93.3
13.8
%
15.0
%
16.1
%
16.5
%
Electronics
5.4
1.0
29.6
24.7
9.0
%
1.7
%
11.0
%
9.2
%
Corporate and other
(8.6
)
(9.1
)
(34.2
)
(38.1
)
Consolidated
$
13.3
$
11.9
$
81.8
$
79.9
7.4
%
6.2
%
10.2
%
9.6
%
ORGANIC AND ACQUIRED NET SALES
1
(In millions)
(Unaudited)
For the Three Months
Ended
For the Year Ended
For the Three Months
Ended
For the Year Ended
April 1,
July 1,
September 30,
December 30,
December 30,
March 30,
June 29,
September 28,
December 28,
December 28,
2023
2023
2023
2023
2023
2024
2024
2024
2024
2024
Hydraulics
Organic
$
134.0
$
137.2
$
121.0
$
126.6
$
518.8
$
140.5
$
145.7
$
129.4
$
119.7
$
535.3
Acquisition
13.7
15.2
11.0
7.1
47.0
1.9
-
-
-
1.9
Total
$
147.7
$
152.4
$
132.0
$
133.7
$
565.8
$
142.4
$
145.7
$
129.4
$
119.7
$
537.2
Electronics
Organic
$
65.5
$
74.0
$
67.1
$
57.4
$
264.0
$
67.6
$
73.0
$
65.1
$
59.8
$
265.6
Acquisition
-
1.2
2.3
2.3
5.8
2.0
1.2
-
-
3.1
Total
$
65.5
$
75.2
$
69.4
$
59.7
$
269.8
$
69.6
$
74.2
$
65.1
$
59.8
$
268.7
Consolidated
Organic
$
199.5
$
211.2
$
188.1
$
184.0
$
782.8
$
208.1
$
218.7
$
194.5
$
179.5
$
800.9
Acquisition
13.7
16.4
13.3
9.4
52.8
3.9
1.2
-
-
5.0
Total
$
213.2
$
227.6
$
201.4
$
193.4
$
835.6
$
212.0
$
219.9
$
194.5
$
179.5
$
805.9
HELIOS TECHNOLOGIES
Net Sales by Geographic Region
and Segment
(In millions)
(Unaudited)
2024
Q1
% Change y/y
Q2
% Change y/y
Q3
% Change y/y
Q4
% Change y/y
Full Year
% Change y/y
Americas:
Hydraulics
$
55.8
(4%)
$
59.5
(2%)
$
52.1
(6%)
$
51.7
(14%)
$
219.1
(7%)
Electronics
58.1
5%
$
57.8
(9%)
$
50.9
(14%)
$
49.1
1%
$
215.9
(5%)
Consol. Americas
113.9
1%
117.3
(5%)
103.0
(11%)
100.8
(8%)
435.0
(6%)
% of total
54
%
53
%
53
%
56
%
54
%
EMEA:
Hydraulics
$
45.5
(8%)
$
42.8
(17%)
$
36.7
(5%)
$
32.1
(16%)
$
157.1
(12%)
Electronics
6.5
(3%)
9.0
29%
6.5
14%
4.7
(19%)
26.7
6%
Consol. EMEA
52.0
(7%)
51.8
(11%)
43.2
(3%)
36.8
(16%)
183.8
(9%)
% of total
25
%
24
%
22
%
21
%
23
%
APAC:
Hydraulics
$
41.1
2%
$
43.4
7%
$
40.6
8%
$
35.9
1%
$
161.0
5%
Electronics
5.0
35%
7.4
48%
7.7
79%
6.0
18%
$
26.1
44%
Consol. APAC
46.1
5%
50.8
12%
48.3
16%
41.9
3%
187.1
9%
% of total
22
%
23
%
25
%
23
%
23
%
Total
$
212.0
(1%)
$
219.9
(3%)
$
194.5
(3%)
$
179.5
(7%)
$
805.9
(4%)
2023
Q1
% Change y/y
Q2
% Change y/y
Q3
% Change y/y
Q4
% Change y/y
Full Year
% Change y/y
Americas:
Hydraulics
$
57.9
34%
$
60.6
21%
$
55.7
12%
$
60.2
6%
$
234.4
17%
Electronics
55.1
(29%)
63.2
(21%)
59.4
(9%)
48.8
2%
$
226.5
(16%)
Consol. Americas
113.0
(6%)
123.8
(5%)
115.1
0%
109.0
4%
460.9
(2%)
% of total
53
%
54
%
57
%
56
%
55
%
EMEA:
Hydraulics
$
49.4
(7%)
$
51.3
5%
$
38.8
(6%)
$
38.1
(12%)
$
177.6
(5%)
Electronics
6.7
(43%)
7.0
(43%)
5.7
(26%)
5.8
9%
$
25.2
(32%)
Consol. EMEA
56.1
(13%)
58.3
(5%)
44.5
(9%)
43.9
(10%)
202.8
(9%)
% of total
26
%
26
%
22
%
23
%
24
%
APAC:
Hydraulics
$
40.4
(2%)
$
40.5
(8%)
$
37.5
(7%)
$
35.4
(12%)
$
153.8
(7%)
Electronics
3.7
(73%)
5.0
(22%)
4.3
30%
5.1
104%
$
18.1
(31%)
Consol. APAC
44.1
(20%)
45.5
(10%)
41.8
(4%)
40.5
(5%)
171.9
(10%)
% of total
21
%
20
%
21
%
21
%
21
%
Total
$
213.2
(11%)
$
227.6
(6%)
$
201.4
(3%)
$
193.4
(1%)
$
835.6
(6%)
HELIOS TECHNOLOGIES
Non-GAAP Adjusted Operating
Income & Non-GAAP Adjusted Operating Margin
RECONCILIATION
(In millions)
(Unaudited)
For the Three Months
Ended
For the Year Ended
December 28, 2024
Margin
December 30, 2023
Margin
December 28, 2024
Margin
December 30, 2023
Margin
GAAP operating income
$
13.3
7.4
%
$
11.9
6.2
%
$
81.8
10.2
%
$
79.9
9.6
%
Acquisition-related amortization of
intangible assets
7.9
4.4
%
8.2
4.2
%
31.5
3.9
%
32.9
3.9
%
Acquisition and financing-related
expenses(A)
-
0.0
%
0.7
0.4
%
0.7
0.1
%
4.0
0.5
%
Restructuring charges(B)
0.9
0.5
%
3.0
1.6
%
5.3
0.7
%
12.1
1.4
%
Officer transition costs
0.5
0.3
%
0.3
0.2
%
1.9
0.2
%
1.2
0.1
%
Acquisition integration costs
(C)
-
0.0
%
0.1
0.1
%
0.3
0.0
%
0.3
0.0
%
Other
1.2
0.7
%
0.2
0.1
%
1.3
0.2
%
0.3
0.0
%
Non-GAAP adjusted operating
income
$
23.8
13.3
%
$
24.4
12.6
%
$
122.8
15.2
%
$
130.7
15.6
%
GAAP operating margin
7.4
%
6.2
%
10.2
%
9.6
%
Non-GAAP adjusted operating margin
13.3
%
12.6
%
15.2
%
15.6
%
Net sales
$
179.5
$
193.4
$
805.9
$
835.6
Non-GAAP Adjusted EBITDA &
Non-GAAP Adjusted EBITDA Margin RECONCILIATION
(In millions)
(Unaudited)
For the Three Months
Ended
For the Year Ended
December 28, 2024
Margin
December 30, 2023
Margin
December 28, 2024
Margin
December 30, 2023
Margin
Net income
$
4.8
2.7
%
$
3.3
1.7
%
$
39.0
4.8
%
$
37.5
4.5
%
Interest expense, net
8.1
4.5
%
8.6
4.4
%
33.8
4.2
%
31.2
3.7
%
Income tax provision
2.8
1.6
%
1.0
0.5
%
11.5
1.4
%
11.7
1.4
%
Depreciation and amortization
16.0
8.9
%
16.1
8.3
%
63.8
7.9
%
63.8
7.6
%
EBITDA
31.7
17.7
%
29.0
15.0
%
148.1
18.4
%
144.2
17.3
%
Acquisition and financing-related
expenses(A)
-
0.0
%
0.7
0.4
%
0.7
0.1
%
4.0
0.5
%
Restructuring charges(B)
0.9
0.5
%
3.0
1.6
%
5.3
0.7
%
12.1
1.4
%
Officer transition costs
0.5
0.3
%
0.3
0.2
%
1.9
0.2
%
1.2
0.1
%
Acquisition integration costs
(C)
-
0.0
%
0.1
0.1
%
0.3
0.0
%
0.3
0.0
%
Change in fair value of contingent
consideration
0.4
0.2
%
(0.9
)
(0.5
%)
0.4
0.0
%
(0.1
)
0.0
%
Other
(2.4
)
(1.3
%)
0.1
0.1
%
(2.2
)
(0.3
%)
(0.3
)
0.0
%
Adjusted EBITDA
$
31.2
17.4
%
$
32.3
16.7
%
$
154.5
19.2
%
$
161.4
19.3
%
-
2.2
TTM adjusted EBITDA
$
154.5
$
163.6
GAAP net income margin
2.7
%
1.7
%
4.8
%
4.5
%
EBITDA margin
17.7
%
15.0
%
18.4
%
17.3
%
Adjusted EBITDA margin
17.4
%
16.7
%
19.2
%
19.3
%
Net sales
$
179.5
$
193.4
$
805.9
$
835.6
HELIOS TECHNOLOGIES
Non-GAAP Adjusted Net Income
& Non-GAAP Adjusted Net Income Per Diluted Share
RECONCILIATION
(In millions)
(Unaudited)
For the Three Months
Ended
For the Year Ended
December 28, 2024
Per Diluted Share
December 30, 2023
Per Diluted Share
December 28, 2024
Per Diluted Share*
December 30, 2023
Per Diluted Share
GAAP net income
$
4.8
$
0.14
$
3.3
$
0.10
$
39.0
$
1.17
$
37.5
$
1.14
Amortization of intangible
assets(D)
8.4
0.25
8.4
0.25
33.1
0.99
33.6
1.02
Acquisition and financing- related
expenses(A)
-
-
0.7
0.02
0.7
0.02
4.0
0.12
Restructuring charges(B)
0.9
0.03
3.0
0.09
5.3
0.16
12.1
0.37
Officer transition costs
0.5
0.01
0.3
0.01
1.9
0.06
1.2
0.04
Acquisition integration costs
(C)
-
-
0.1
-
0.3
0.01
0.3
0.01
Change in fair value of contingent
consideration
0.4
0.01
(0.9
)
(0.03
)
0.4
0.01
(0.1
)
-
Other
(2.4
)
(0.07
)
0.1
-
(2.2
)
(0.07
)
(0.3
)
(0.01
)
Tax effect of above
(1.7
)
(0.05
)
(2.6
)
(0.08
)
(8.8
)
(0.26
)
(11.2
)
(0.34
)
Non-GAAP Adjusted net income
$
10.9
$
0.33
$
12.4
$
0.38
$
69.7
$
2.10
$
77.1
$
2.34
GAAP net income per diluted share
$
0.14
$
0.10
$
1.17
$
1.14
Non-GAAP Adjusted net income per diluted
share
$
0.33
$
0.38
$
2.10
$
2.34
(A) Acquisition and financing-related expenses include costs
associated with our M&A activities. We believe these costs are
not representative of the Company's operational performance and it
is therefore more meaningful to analyze results with the costs
excluded. For the three months and twelve months ended December 28,
2024, the charges include $0.0 and $0.7 of other miscellaneous
M&A costs, respectively.
(B) Restructuring activities include activities within our
Hydraulics segment related to the creation of our two new Regional
Operational Centers of Excellence ("CoE") which are nearing
completion. We also continue to add capabilities and activities to
our recently expanded Tijuana, Mexico facility to support our
Electronics segment. Initial efforts have focused on circuit board
assembly and wire harness production. We have also recently
initiated some restructuring activities to better optimize our
European regional operations. We are transitioning some
manufacturing of manifolds and integrated package assembly to our
Roncolo, Italy location. These activities include in part the
transferring of equipment and operations between facilities. We
believe these costs are not representative of the Company's
operational performance and it is therefore more meaningful to
analyze results with the costs excluded. For the three months and
twelve months ended December 28, 2024, the charges include
non-recurring labor costs of $0.2 and $2.5 million and
manufacturing relocation and other costs of $0.7 and $2.8 million,
respectively.
(C) Acquisition integration activities include costs associated
with integrating our recently acquired businesses, which can occur
up to 18 months after acquisition date. We believe these costs are
not representative of the Company's operational performance and it
is therefore more meaningful to analyze results with the costs
excluded. For the three months ended and twelve months ended
December 28, 2024, the costs totaled $0.0 and $0.3 million,
respectively.
(D) Amortization of intangible assets presented here includes
$0.5 and $1.6 million for capitalized software development costs
included within cost of sales in the income statement for the three
and twelve months ended December 28, 2024, respectively.
*General note: items may not sum or recalculate due to
rounding
HELIOS TECHNOLOGIES
Non-GAAP Net Sales Growth
RECONCILIATION
(In millions)
(Unaudited)
For the Three Months
Ended
For the Year Ended
Hydraulics
Electronics
Consolidated
Hydraulics
Electronics
Consolidated
Q4 2024 Net Sales
$
119.7
$
59.8
$
179.5
$
537.2
$
268.7
$
805.9
Impact of foreign currency
translation(E)
0.1
-
0.1
0.5
0.2
0.7
Net Sales in constant currency
119.8
59.8
179.6
537.7
268.9
806.6
Less: Acquisition related sales
-
-
-
(1.9
)
(3.1
)
(5.0
)
Organic sales in constant
currency
$
119.8
$
59.8
$
179.6
$
535.8
$
265.8
$
801.6
Q4 2023 Net Sales
$
133.7
$
59.7
$
193.4
$
565.8
$
269.8
$
835.6
Net sales growth
(10
%)
0
%
(7
%)
(5
%)
(0
%)
(4
%)
Net sales growth in constant
currency
(10
%)
0
%
(7
%)
(5
%)
(0
%)
(3
%)
Organic net sales growth in constant
currency
(10
%)
0
%
(7
%)
(5
%)
(1
%)
(4
%)
(E) The impact from foreign currency
translation is calculated by translating current period activity at
average prior period exchange rates.
Net Debt-to-Adjusted EBITDA
RECONCILIATION
(In millions)
(Unaudited)
As of
December 28, 2024
Current portion of long-term non-revolving
debt, net
16.0
Revolving lines of credit
150.3
Long-term non-revolving debt, net
283.2
Total debt
449.5
Less: Cash and cash equivalents
44.1
Net debt
405.4
TTM adjusted EBITDA
154.5
Ratio of net debt to TTM adjusted
EBITDA
2.6
Non-GAAP Financial Measures and Non-GAAP Forward-looking
Financial Measures:
Adjusted operating income, adjusted operating margin, EBITDA,
EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, net
debt-to-adjusted EBITDA, adjusted net income, adjusted net income
per diluted share and sales in constant currency are not measures
determined in accordance with generally accepted accounting
principles in the United States, commonly known as GAAP.
Nevertheless, Helios believes that providing these specific
Non-GAAP figures are important for investors and other readers of
Helios financial statements, as they are used as analytical
indicators by Helios management to better understand operating
performance. These Non-GAAP financial measures should be considered
in addition to results prepared in accordance with GAAP and should
not be considered a substitute for GAAP. Please carefully review
the attached Non-GAAP reconciliations to the most directly
comparable GAAP measures and the related additional information
provided throughout. Because these metrics are Non-GAAP measures
and are thus susceptible to varying calculations, these figures, as
presented, may not be directly comparable to other similarly titled
measures used by other companies. The Company does not provide a
reconciliation of forward-looking Non-GAAP financial measures, such
as adjusted EBITDA, adjusted EBITDA margin, adjusted net income and
adjusted net income per diluted share disclosed above in our 2025
Outlook, to their comparable GAAP financial measures because it
could not do so without unreasonable effort due to the
unavailability of the information needed to calculate reconciling
items and due to the variability, complexity and limited visibility
of the adjusting items that would be excluded from the Non-GAAP
financial measures in future periods.
1 Net Sales is considered to be
acquisition related until the acquisition has been included in the
Company’s financial results for one full year.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250224606134/en/
For more information, contact: Tania Almond Vice
President, Investor Relations and Corporate Communication (941)
362-1333 tania.almond@HLIO.com
Deborah Pawlowski Alliance Advisors IR (716) 843-3908
dpawlowski@allianceadvisors.com
Helios Technologies (NYSE:HLIO)
Graphique Historique de l'Action
De Jan 2025 à Fév 2025
Helios Technologies (NYSE:HLIO)
Graphique Historique de l'Action
De Fév 2024 à Fév 2025
