0000950170-23-018861.txt : 20230508 0000950170-23-018861.hdr.sgml : 20230508 20230508163519 ACCESSION NUMBER: 0000950170-23-018861 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 14 CONFORMED PERIOD OF REPORT: 20230508 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20230508 DATE AS OF CHANGE: 20230508 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HELIOS TECHNOLOGIES, INC. CENTRAL INDEX KEY: 0001024795 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS FABRICATED METAL PRODUCTS [3490] IRS NUMBER: 592754337 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-40935 FILM NUMBER: 23898304 BUSINESS ADDRESS: STREET 1: 7456 SIXTEENTH STREET EAST CITY: SARASOTA STATE: FL ZIP: 34243 BUSINESS PHONE: 9413621200 MAIL ADDRESS: STREET 1: 7456 SIXTEENTH STREET EAST CITY: SARASOTA STATE: FL ZIP: 34243 FORMER COMPANY: FORMER CONFORMED NAME: SUN HYDRAULICS CORP DATE OF NAME CHANGE: 19970423 8-K 1 hlio-20230508.htm 8-K 8-K
false000102479500010247952023-05-082023-05-08

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 08, 2023

 

 

HELIOS TECHNOLOGIES, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

Florida

0-21835

59-2754337

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

7456 16th St E

 

Sarasota, Florida

 

34243

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 941 362-1200

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Common Stock $.001 Par Value

 

HLIO

 

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 


Item 2.02 Results of Operations and Financial Condition.

On May 8, 2023, Helios Technologies (the “Company”), issued the press release attached hereto as Exhibit 99.1 announcing its financial results for the first fiscal quarter of 2023.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits


99.1
Press release dated May 8, 2023


104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

HELIOS TECHNOLOGIES, INC.

 

 

 

 

Date:

May 8, 2023

By:

/s/ Tricia L. Fulton

 

 

 

Tricia L. Fulton
Executive Vice President and Chief Financial Officer
(Principal Financial and
Accounting Officer)

 


EX-99 2 hlio-ex99_1.htm EX-99.1 EX-99

 

 

Exhibit 99.1

img252001787_0.jpg 

NEWS

RELEASE

 

FOR IMMEDIATE RELEASE

Helios Technologies Reports Strong Revenue Growth in the First Quarter 2023 While Investing in Augmented Strategy for Future Growth

Strong sequential top line growth over 4Q22 in both segments including a 36% increase in the health and wellness end market and sequential consolidated margin growth
Investing in operating expenses (SEA) to integrate flywheel acquisitions, open previously announced Centers of Excellence, and accelerate strategic growth opportunities
Protecting full year margin and earnings through execution of manufacturing and operating strategy
Planned capex of $9 million in the quarter (4% of sales) to support long-term investments, including shift to a regional organizational structure for Hydraulics
Achieved diluted EPS of $0.42; Diluted Non-GAAP Cash EPS of $0.72 reflecting in-period investments, higher interest expense ($0.06), and FX impact ($0.04) compared with prior year
Reiterating outlook for 2023 revenue expected to be $910 to $940 million; on path to achieve strategic milestone of $1 billion in revenue on a run rate basis[1]by year-end 2023
Continued strategic M&A activity with recent Agreement to acquire i3 Product Development

SARASOTA, FL, May 8, 2023 — Helios Technologies, Inc. (NYSE: HLIO) (“Helios” or the “Company”), a global leader in highly engineered motion control and electronic controls technology for diverse end markets, today reported financial results for the first quarter ended April 1, 2023. Results include the assets of Schultes Precision Manufacturing, Inc (or “Schultes”) for a partial period starting on January 27, 2023.

“Our top-line results came in strong, and we delivered on our gross margins. Our recent moves to invest and optimize our long-term cost structure as well as prepare for global growth demonstrate that our plan is working. First, following the acquisition and integration of several companies over the last few years, we announced the opening of two new Centers of Excellence. Second, we made investments this quarter to move to a regional organizational structure for our Hydraulics segment. This will allow us to be ready for the next wave of growth. The regional structure coupled with the company’s Centers of Excellence is expected to support growth beyond our $1 billion total company milestone. We are off to a solid start in 2023,” said the Company’s President and Chief Executive Officer Josef Matosevic.

Matosevic continued, “We are also happy to announce that we have signed an Agreement to acquire i3 Product Development (or “i3”). Innovation is the life blood of any successful organization, and we expect the acquisition of i3 to turbocharge our efforts to be the most innovative company focused on the intersection of the hydraulics and electronics markets. With over 55 engineers embodying expertise in electronics, mechanical, industrial, embedded and software engineering, i3 will equip Helios with significant capabilities to provide customization to Helios platforms or develop greenfield solutions. Their patented remote support platform will also provide in the field support for customers’ IoT (Internet of Things) devices and fits perfectly into the telematics and data analytics roadmap we have been articulating for some time. It’s seldom you find a gem of a company like this to acquire – one that provides top notch engineers and software capability that plugs exactly into our roadmap vision.”

[1] Run rate basis defined as annualizing the anticipated fourth quarter of 2023 to equate to ~$1 billion in revenues

 

Helios Technologies | 7456 16th St East | Sarasota, FL 34243 | 941-362-1200


Helios Technologies Reports Strong Revenue Growth in the First Quarter 2023

While Investing in Augmented Strategy for Future Growth

May 8, 2023

Page 2 of 16

 

First Quarter 2023 Consolidated Results

($ in millions, except per share data)
(Unaudited)

Q1 2023

 

 

Q1 2022

 

 

Change

 

 

% Change

 

Net sales

$

213.2

 

 

$

240.5

 

 

$

(27.3

)

 

 

(11

%)

Gross profit

$

71.0

 

 

$

83.6

 

 

$

(12.6

)

 

 

(15

%)

Gross margin

 

33.3

%

 

 

34.8

%

 

 

(150

)

bps

 

 

Operating income

$

24.8

 

 

$

42.9

 

 

$

(18.1

)

 

 

(42

%)

Operating margin

 

11.6

%

 

 

17.8

%

 

 

(620

)

bps

 

 

Non-GAAP adjusted operating margin*

 

17.2

%

 

 

21.8

%

 

 

(460

)

bps

 

 

Net income

$

13.9

 

 

$

30.5

 

 

$

(16.6

)

 

 

(54

%)

Diluted EPS

$

0.42

 

 

$

0.94

 

 

$

(0.52

)

 

 

(55

%)

Non-GAAP cash net income*

$

23.4

 

 

$

38.3

 

 

$

(14.9

)

 

 

(39

%)

Diluted Non-GAAP cash EPS*

$

0.72

 

 

$

1.18

 

 

$

(0.46

)

 

 

(39

%)

Adjusted EBITDA*

$

43.3

 

 

$

59.0

 

 

$

(15.7

)

 

 

(27

%)

Adjusted EBITDA margin*

 

20.3

%

 

 

24.5

%

 

 

(420

)

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

Grew sequentially: Total revenue up 9%, Electronics segment revenue up 17% (of which Health and Wellness up 36%), Hydraulics segment revenue up 5% over fourth quarter 2022; Grew annually: Hydraulics revenue up 8% (10% in constant currency), Electronics revenue down 37% while up 11% excluding Health and Wellness over first quarter 2022.
Sales in several end markets grew over the first quarter of 2022, including mobile equipment, industrial, construction, and agriculture which was offset by the ongoing, though improving contraction of the health and wellness end market. Sales included $13.7 million in revenue from acquisitions. (See the Organic and Acquired Revenue table in this release that provides acquired revenue by segment by quarter).
Sales declined in the Americas, in Europe the Middle East and Africa ("EMEA"), and the Asia Pacific ("APAC") regions compared with the first quarter of 2022. Sales across all regions are being impacted by the softening demand for electronics products in the health and wellness market compared to the first quarter of 2022.
Foreign currency translation adjustment on sales was $3.5 million unfavorable and supply chain constraints delayed an estimated $12.4 million in sales in the quarter.

Profits and margins

Gross profit and margin drivers: gross profit was down $12.6 million compared with the prior-year period driven by lower volume. Changes in FX rates compared with the first quarter of 2022 reduced gross profit by $0.9 million. Gross margin declined by 150 basis points, driven by reduced leverage of our fixed cost base on lower sales, margin profile of acquisitions, partially offset by favorable sales mix and the impact of price increases.
Selling, engineering and administrative (“SEA”) expenses increased to $38.1 million, up 13% compared with the first quarter of 2022, reflecting integration of acquisitions and higher operating expenses, including

 


Helios Technologies Reports Strong Revenue Growth in the First Quarter 2023

While Investing in Augmented Strategy for Future Growth

May 8, 2023

Page 3 of 16

 

investing in key strategic projects (i.e., opening previously announced Centers of Excellence, timing of segment manufacturing roadmap projects, and accelerate strategic growth opportunities.)
Amortization of intangible assets: at $8.1 million up 16% compared to the prior year reflecting the Company’s flywheel acquisitions.

Non-operating items

Net interest expense: $6.2 million in the quarter up 63% compared with the prior-year period due to rising interest rates and average net debt balance increases related to acquisitions.
Effective tax rate: 22.8% compared with 22.4% in the prior-year period reflecting varying levels of income in domestic versus international tax jurisdictions.

Net income, earnings per share, non-GAAP cash earnings per share and adjusted EBITDA

GAAP net income and diluted earnings per share: $13.9 million and $0.42 per share.
Diluted Non-GAAP cash earnings per share: $0.72 compared with $1.18 last year, due to lower volumes, higher operating expenses, interest expense of ($0.06) and foreign exchange rates of ($0.04) per share.
Adjusted EBITDA margin at 20.3% increased sequentially over 4Q22 by 30 basis points; Compared to year ago period decline of 420 basis points driven by contraction in health and wellness market, rapid inflationary environment with headwinds from supply chain, investments in strategic projects and FX impacts.

 

 


Helios Technologies Reports Strong Revenue Growth in the First Quarter 2023

While Investing in Augmented Strategy for Future Growth

May 8, 2023

Page 4 of 16

 

Hydraulics Segment Review

(Refer to sales by geographic region and segment data in accompanying tables)

($ in millions)
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Hydraulics

For the Three Months Ended

 

 

 

 

 

 

 

 

 

Q1 2023

 

 

Q1 2022

 

 

Change

 

 

% Change

 

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

Americas

$

57.9

 

 

$

43.1

 

 

$

14.8

 

 

 

34

%

 

EMEA

 

49.4

 

 

 

52.9

 

 

 

(3.5

)

 

 

(7

%)

 

APAC

 

40.4

 

 

 

41.1

 

 

 

(0.7

)

 

 

(2

%)

 

Total Segment Sales

$

147.7

 

 

$

137.1

 

 

$

10.6

 

 

 

8

%

 

Gross Profit

$

50.0

 

 

$

50.8

 

 

$

(0.8

)

 

 

(2

%)

 

Gross Margin

 

33.9

%

 

 

37.1

%

 

 

(320

)

bps

 

 

 

SEA Expenses

$

22.0

 

 

$

19.2

 

 

$

2.8

 

 

 

15

%

 

Operating Income

$

28.0

 

 

$

31.6

 

 

$

(3.6

)

 

 

(11

%)

 

Operating Margin

 

19.0

%

 

 

23.1

%

 

 

(410

)

bps

 

 

 

 

First Quarter Hydraulics Segment Review

Sales increased 8% over the period year period to $147.7 million as higher sales to the Americas helped to offset the lower sales in EMEA and APAC. On a constant currency basis, sales increased 10% driven by acquisitions as well as pricing. FX had a $3.3 million unfavorable adjustment on sales and supply chain constraints delayed an estimated $7.9 million in sales in the quarter.
Gross profit and margin drivers: gross profit decreased $0.8 million, or 2%, compared with the prior-year period primarily due to material price increases, unfavorable FX of $0.8 million, and restructuring costs of $0.7 million. Gross margin reflects rising material and energy costs, for which margin was not fully recovered by pricing efforts, as well as the different margin profile of our recent acquisitions.
Operating income decreased $3.6 million, or 11%, while operating margin of 19.0% decreased 410 basis points reflecting increased operating expenses from acquisitions and higher operating costs. We incurred $0.5 million of restructuring costs in the first quarter of 2023, compared to $0.3 million in the 2022 first quarter.

Electronics Segment Review

(Refer to sales by geographic region and segment data in accompanying tables)

($ in millions)
(Unaudited)

 

 

 

 

 

 

 

 

 

 

Electronics

For the Three Months Ended

 

 

 

 

 

 

 

 

Q1 2023

 

 

Q1 2022

 

 

Change

 

 

% Change

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

Americas

$

55.1

 

 

$

77.7

 

 

$

(22.6

)

 

 

(29

%)

EMEA

 

6.7

 

 

 

11.8

 

 

 

(5.1

)

 

 

(43

%)

APAC

 

3.7

 

 

 

13.9

 

 

 

(10.2

)

 

 

(73

%)

Total Segment Sales

$

65.5

 

 

$

103.4

 

 

$

(37.9

)

 

 

(37

%)

Gross Profit

$

21.0

 

 

$

32.8

 

 

$

(11.8

)

 

 

(36

%)

Gross Margin

 

32.1

%

 

 

31.7

%

 

 

40

 

bps

 

 

SEA Expenses

$

13.5

 

 

$

12.3

 

 

$

1.2

 

 

 

10

%

Operating Income

$

7.5

 

 

$

20.5

 

 

$

(13.0

)

 

 

(63

%)

Operating Margin

 

11.5

%

 

 

19.8

%

 

 

(830

)

bps

 

 

 

 


Helios Technologies Reports Strong Revenue Growth in the First Quarter 2023

While Investing in Augmented Strategy for Future Growth

May 8, 2023

Page 5 of 16

 

 

First Quarter Electronics Segment Review

Sales decreased 37% to $65.5 million, with demand across all regions declining due primarily to contraction of the health and wellness market. End market demand was driven by mobile and industrial machinery markets which only partially offset supply chain constraints and a contracting health and wellness market. Foreign currency exchange rates had a $0.2 million unfavorable impact on sales and supply chain constraints delayed an estimated $4.5 million in sales in the quarter.
Gross profit and margin drivers: gross profit decreased $11.8 million, or 36%, compared with the prior-year period primarily due to decreased sales volume in health and wellness. Gross margin increased 40 basis points to 32.1%, driven primarily by favorable sales mix over the year ago period.
Operating income decreased $13.0 million to $7.5 million, while operating margin declined 830 basis points to 11.5% reflecting flow through of gross margin and operating expenses.

Balance Sheet and Cash Flow Review

Tricia Fulton, Executive Vice President, and Chief Financial Officer, commented, “We saw some solid sequential improvements over the fourth quarter of 2022 on revenue and gross margin. While at the same time, we are intentionally investing to optimize the long-term cost structure through integrating our acquisitions, opening our Centers of Excellence, and effecting some reorganization of our Hydraulics segment. This gives us confidence in how we're expecting the rest of the year to unfold relative to our expectations. Combined with our organic growth and other recent acquisitions, we expect to be able to reach our $1 billion revenue milestone with top-tier margins on a run-rate basis ending 2023.”

Total debt at quarter-end was $525.8 million compared with $446.1 million at end of the fourth quarter of 2022. For the three-month period, borrowings, net of repayments, on our credit facilities amounted to $78.4 million.
Cash and cash equivalents at April 1, 2023 were $36.3 million, down $7.4 million or 17% from the end of the fourth quarter of 2022.
Inventory increased $10.8 million to $202.4 million from the fourth quarter of 2022 and was 6% higher than the fourth quarter of 2022 driven by the acquisition and the macro issues in the supply chain. These issues include the Company purchasing parts ahead of material shortages, holding some inventory for past due orders where one or two components have been delayed in the supply chain.
Pro-forma net debt-to-adjusted EBITDA increased to 2.5x at the end of the first quarter of 2023 (pro-forma for Taimi, Daman Products, and Schultes Precision Manufacturing.)At the end of first quarter 2023, the Company had $54.3 million available on its revolving lines of credit.
Net cash provided by operations was $12.3 million in the first quarter 2023 compared with $14.7 million in the prior-year period.
Capital expenditures were $9.1 million in the first quarter 2023, or 4% of sales as planned. This compares with $5.6 million, or 2% of sales, in the year-ago period.
Paid 105th sequential quarterly cash dividend on April 20, 2023.

 


Helios Technologies Reports Strong Revenue Growth in the First Quarter 2023

While Investing in Augmented Strategy for Future Growth

May 8, 2023

Page 6 of 16

 

Reiterating 2023 Outlook:

The following provides the Company’s expectations for 2023 as of May 8, 2023. This assumes constant currency, using quarter end rates, and that markets served are not further impacted by the global pandemic or the geo-political environment. On a run-rate basis ending 2023, the Company expects to reach approximately $1 billion in revenue and approximately 25% Adjusted EBITDA margins.

 

2020 Actual

2021 Actual

2022 Actual

2023 Outlook

Implied 3-Year CAGR at 2023 range mid-point

Exiting 2023
Run-Rate Outlook

Consolidated revenue

$523 million

$869 million

$885 million

$910 - $940 million

21%

~$1 billion

Net income

$14 million

$105 million

$98 million

$99 - $104 million

 

 

Adjusted EBITDA

$121 million

$214 million

$205 million

$214 - $226 million

22%

 

Adjusted EBITDA margin

23.2%

24.6%

23.2%

23.5% - 24.0%

+55 bps

~25%

Interest expense

$13 million

$17 million

$17 million

$23 - $24 million

 

 

Effective tax rate

18%

20%

19%

21% - 23%

 

 

Depreciation

$18 million

$21 million

$23 million

$27 - $29 million

 

 

Amortization

$22 million

$33 million

$29 million

$30 - $32 million

 

 

Capital expenditures % total revenue

3%

3%

4%

3% - 5% of sales

 

 

Diluted EPS

$0.44

$3.22

$3.02

$3.03 - $3.18

 

 

Diluted Non-GAAP Cash EPS

$2.24

$4.25

$4.03

$3.95 - $4.10

22%

 

Adjusted EBITDA, Adjusted EBITDA margin and Diluted Non-GAAP Cash EPS represent non-GAAP financial measures. The Company has presented the comparable GAAP figures in the table above. For 2023, Adjusted EBITDA excludes an estimated $7-$8 million of costs for restructuring activities and acquisition related cost including integration. For 2023, Diluted non-GAAP Cash EPS excludes an estimated $0.88 to $0.95 per diluted share of costs for amortization, restructuring activities, acquisition related costs including integration and the related tax impact on these items.

Webcast

The Company will host a conference call and webcast tomorrow, May 9, at 9:00 a.m. Eastern Time to review its financial and operating results and discuss its corporate strategies and 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, May 16, 2023. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13737453. The webcast replay will be available in the investor relations section of the Company’s website at www.heliostechnologies.com, where a transcript will also be posted once available.

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

 


Helios Technologies Reports Strong Revenue Growth in the First Quarter 2023

While Investing in Augmented Strategy for Future Growth

May 8, 2023

Page 7 of 16

 

development and acquisition. 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) the Company’s financing plans; (iv) trends affecting the Company’s financial condition or results of operations; (v) the Company’s ability to continue to control costs and to meet its liquidity and other financing needs; (vi) the declaration and payment of dividends; and (vii) the Company’s ability to respond to changes in customer demand domestically and internationally, including as a result of 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) supply chain disruption and the potential inability to procure goods; (ii) conditions in the capital markets, including the interest rate environment and the availability of capital; (iii) inflation (including hyperinflation) or recession; (iv) 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; (v) risks related to health epidemics, pandemics and similar outbreaks, including, without limitation, the current COVID-19 pandemic, particularly in China, 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; (vi) risks related to our international operations, including the potential impact of the ongoing conflict between Russia and Ukraine; and (vii) new product introductions, product sales mix and the geographic mix of sales nationally and internationally; (viii) our failure to realize the benefits expected from acquisitions, our failure to promptly and effectively integrate acquisitions and the ability of Helios to retain and hire key personnel, and maintain relationships with suppliers. Further information relating to 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 31, 2022 filed with the Securities and Exchange Commission on February 28, 2023.

This news release will discuss some historical non-GAAP financial measures, which 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. 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

 


Helios Technologies Reports Strong Revenue Growth in the First Quarter 2023

While Investing in Augmented Strategy for Future Growth

May 8, 2023

Page 8 of 16

 

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 2023 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.

 

For more information, contact:
Tania Almond
Vice President, Investor Relations and Corporate Communication
(941) 362-1333
tania.almond@HLIO.com

Deborah Pawlowski
Kei Advisors LLC
(716) 843-3908 / (914) 598-7733
dpawlowski@keiadvisors.com / lkiernan@keiadvisors.com

Financial Tables Follow:

 

 


Helios Technologies Reports Strong Revenue Growth in the First Quarter 2023

While Investing in Augmented Strategy for Future Growth

May 8, 2023

Page 9 of 16

 

HELIOS TECHNOLOGIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share data)

(Unaudited)

 

 

For the Three Months Ended

 

 

 

April 1, 2023

 

 

April 2, 2022

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

213.2

 

 

$

240.5

 

 

 

(11

)%

 

Cost of sales

 

142.2

 

 

 

156.9

 

 

 

(9

)%

 

Gross profit

 

71.0

 

 

 

83.6

 

 

 

(15

)%

 

Gross margin

 

33.3

%

 

 

34.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, engineering and administrative expenses

 

38.1

 

 

 

33.7

 

 

 

13

%

 

Amortization of intangible assets

 

8.1

 

 

 

7.0

 

 

 

16

%

 

Operating income

 

24.8

 

 

 

42.9

 

 

 

(42

)%

 

Operating margin

 

11.6

%

 

 

17.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

6.2

 

 

 

3.8

 

 

 

63

%

 

Foreign currency transaction loss (gain), net

 

0.4

 

 

 

(0.9

)

 

 

(144

)%

 

Other non-operating expense, net

 

0.2

 

 

 

0.7

 

 

 

(71

)%

 

Income before income taxes

 

18.0

 

 

 

39.3

 

 

 

(54

)%

 

Income tax provision

 

4.1

 

 

 

8.8

 

 

 

(53

)%

 

Net income

$

13.9

 

 

$

30.5

 

 

 

(54

)%

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

Basic

$

0.43

 

 

$

0.94

 

 

 

(54

)%

 

Diluted

$

0.42

 

 

$

0.94

 

 

 

(55

)%

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

32.6

 

 

 

32.4

 

 

 

 

 

Diluted

 

32.7

 

 

 

32.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per share

$

0.09

 

 

$

0.09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Helios Technologies Reports Strong Revenue Growth in the First Quarter 2023

While Investing in Augmented Strategy for Future Growth

May 8, 2023

Page 10 of 16

 

HELIOS TECHNOLOGIES

CONSOLIDATED BALANCE SHEETS

(In millions, except per share data)

 

April 1, 2023

 

 

December 31, 2022

 

 

(Unaudited)

 

 

 

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

36.3

 

 

$

43.7

 

Accounts receivable, net of allowance for

 

 

 

 

 

  credit losses of $1.6 and $1.5

 

139.5

 

 

 

125.1

 

Inventories, net

 

202.4

 

 

 

191.6

 

Income taxes receivable

 

8.7

 

 

 

10.2

 

Other current assets

 

21.7

 

 

 

17.9

 

Total current assets

 

408.6

 

 

 

388.5

 

Property, plant and equipment, net

 

202.6

 

 

 

175.7

 

Deferred income taxes

 

1.8

 

 

 

1.6

 

Goodwill

 

483.5

 

 

 

468.5

 

Other intangible assets, net

 

438.7

 

 

 

405.6

 

Other assets

 

21.6

 

 

 

23.8

 

Total assets

$

1,556.8

 

 

$

1,463.7

 

Liabilities and shareholders’ equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

$

71.7

 

 

$

73.7

 

Accrued compensation and benefits

 

19.5

 

 

 

21.1

 

Other accrued expenses and current liabilities

 

30.7

 

 

 

32.0

 

Current portion of long-term non-revolving debt, net

 

20.2

 

 

 

19.0

 

Dividends payable

 

3.0

 

 

 

2.9

 

Income taxes payable

 

7.9

 

 

 

3.6

 

Total current liabilities

 

153.0

 

 

 

152.3

 

Revolving line of credit

 

345.6

 

 

 

261.3

 

Long-term non-revolving debt, net

 

158.9

 

 

 

164.2

 

Deferred income taxes

 

61.0

 

 

 

61.0

 

Other noncurrent liabilities

 

29.7

 

 

 

30.0

 

Total liabilities

 

748.2

 

 

 

668.8

 

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,

 

 

 

 

 

   32.6 and 32.6 issued and outstanding

 

-

 

 

 

-

 

Capital in excess of par value

 

406.4

 

 

 

404.3

 

Retained earnings

 

460.9

 

 

 

450.0

 

Accumulated other comprehensive loss

 

(58.7

)

 

 

(59.4

)

Total shareholders’ equity

 

808.6

 

 

 

794.9

 

Total liabilities and shareholders’ equity

$

1,556.8

 

 

$

1,463.7

 

 

 

 


Helios Technologies Reports Strong Revenue Growth in the First Quarter 2023

While Investing in Augmented Strategy for Future Growth

May 8, 2023

Page 11 of 16

 

HELIOS TECHNOLOGIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

 

For the Three Months Ended

 

 

April 1, 2023

 

 

April 2, 2022

 

Cash flows from operating activities:

 

 

 

 

 

Net income

$

13.9

 

 

$

30.5

 

Adjustments to reconcile net income to

 

 

 

 

 

net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

15.2

 

 

 

12.6

 

Stock-based compensation expense

 

3.4

 

 

 

2.5

 

Amortization of debt issuance costs

 

0.1

 

 

 

0.1

 

Benefit for deferred income taxes

 

(1.1

)

 

 

(1.1

)

Forward contract losses (gains), net

 

0.3

 

 

 

(1.6

)

Other, net

 

0.1

 

 

 

0.7

 

(Increase) decrease in, net of acquisitions:

 

 

 

 

 

Accounts receivable

 

(9.5

)

 

 

(17.4

)

Inventories

 

(6.5

)

 

 

(15.5

)

Income taxes receivable

 

1.6

 

 

 

0.9

 

Other current assets

 

(4.1

)

 

 

(2.4

)

Other assets

 

2.4

 

 

 

2.2

 

Increase (decrease) in, net of acquisitions:

 

 

 

 

 

Accounts payable

 

(3.1

)

 

 

4.1

 

Accrued expenses and other liabilities

 

(3.4

)

 

 

(8.0

)

Income taxes payable

 

4.3

 

 

 

8.2

 

Other noncurrent liabilities

 

(1.3

)

 

 

(1.1

)

Net cash provided by operating activities

 

12.3

 

 

 

14.7

 

Cash flows from investing activities:

 

 

 

 

 

Business acquisitions, net of cash acquired

 

(84.7

)

 

 

1.3

 

Capital expenditures

 

(9.1

)

 

 

(5.6

)

Proceeds from dispositions of property, plant and equipment

 

-

 

 

 

1.8

 

Cash settlement of forward contracts

 

0.3

 

 

 

0.7

 

Software development costs

 

(1.1

)

 

 

(0.9

)

Net cash used in investing activities

 

(94.6

)

 

 

(2.7

)

Cash flows from financing activities:

 

 

 

 

 

Borrowings on revolving credit facilities

 

95.0

 

 

 

23.5

 

Repayment of borrowings on revolving credit facilities

 

(12.5

)

 

 

(23.6

)

Repayment of borrowings on long-term non-revolving debt

 

(4.1

)

 

 

(4.2

)

Proceeds from stock issued

 

0.5

 

 

 

0.6

 

Dividends to shareholders

 

(3.0

)

 

 

(2.9

)

Payment of employee tax withholding on equity award vestings

 

(1.8

)

 

 

(1.9

)

Other financing activities

 

(0.3

)

 

 

(0.3

)

Net cash provided by (used in) financing activities

 

73.8

 

 

 

(8.8

)

Effect of exchange rate changes on cash and cash equivalents

 

1.1

 

 

 

1.3

 

Net (decrease) increase in cash and cash equivalents

 

(7.4

)

 

 

4.5

 

Cash and cash equivalents, beginning of period

 

43.7

 

 

 

28.6

 

Cash and cash equivalents, end of period

$

36.3

 

 

$

33.1

 

 

 


Helios Technologies Reports Strong Revenue Growth in the First Quarter 2023

While Investing in Augmented Strategy for Future Growth

May 8, 2023

Page 12 of 16

 

HELIOS TECHNOLOGIES

SEGMENT DATA

(In millions)

(Unaudited)

 

 

For the Three Months Ended

 

 

April 1, 2023

 

 

April 2, 2022

 

Sales:

 

 

 

 

 

Hydraulics

$

147.7

 

 

$

137.1

 

Electronics

 

65.5

 

 

 

103.4

 

Consolidated

$

213.2

 

 

$

240.5

 

 

 

 

 

 

 

Gross profit and margin:

 

 

 

 

 

Hydraulics

$

50.0

 

 

$

50.8

 

 

 

33.9

%

 

 

37.1

%

Electronics

 

21.0

 

 

 

32.8

 

 

 

32.1

%

 

 

31.7

%

Consolidated

$

71.0

 

 

$

83.6

 

 

 

33.3

%

 

 

34.8

%

 

 

 

 

 

 

Operating income (loss) and margin:

 

 

 

 

 

Hydraulics

$

28.0

 

 

$

31.6

 

 

 

19.0

%

 

 

23.1

%

Electronics

 

7.5

 

 

 

20.5

 

 

 

11.5

%

 

 

19.8

%

Corporate and other

 

(10.7

)

 

 

(9.2

)

Consolidated

$

24.8

 

 

$

42.9

 

 

 

11.6

%

 

 

17.8

%

 

ORGANIC AND ACQUIRED REVENUE2[2]

(In millions)

(Unaudited)

 

 

 

Three Months Ended

 

 

Full Year Ended

 

 

Three Months Ended

 

 

April 2,

 

 

July 2,

 

 

October 1,

 

 

December 31,

 

 

December 31,

 

 

 

April 1,

 

 

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

 

2023

 

 

Hydraulics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Organic

 

$

130.7

 

 

$

137.1

 

 

$

129.1

 

 

$

132.0

 

 

$

528.9

 

 

 

$

134.0

 

 

 Acquisition

 

 

6.4

 

 

 

5.7

 

 

 

2.1

 

 

 

8.2

 

 

 

22.4

 

 

 

 

13.7

 

 

Total

 

$

137.1

 

 

$

142.8

 

 

$

131.2

 

 

$

140.2

 

 

$

551.3

 

 

 

$

147.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electronics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Organic

 

$

102.7

 

 

$

97.9

 

 

$

75.2

 

 

$

55.8

 

 

$

331.6

 

 

 

$

65.5

 

 

Acquisition

 

 

0.8

 

 

 

1.0

 

 

 

0.7

 

 

 

-

 

 

 

2.5

 

 

 

 

-

 

 

Total

 

$

103.4

 

 

$

98.9

 

 

$

75.9

 

 

$

55.8

 

 

$

334.1

 

 

 

$

65.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Organic

 

$

233.4

 

 

$

235.0

 

 

$

204.3

 

 

$

187.8

 

 

$

860.5

 

 

 

$

199.5

 

 

Acquisition

 

 

7.2

 

 

 

6.6

 

 

 

2.9

 

 

 

8.2

 

 

 

24.9

 

 

 

 

13.7

 

 

Total

 

$

240.5

 

 

$

241.7

 

 

$

207.2

 

 

$

196.0

 

 

$

885.4

 

 

 

$

213.2

 

 

[2] Revenue is considered to be acquisition related until the acquisition has been included in the Company’s financial results for one full year.

 

 


Helios Technologies Reports Strong Revenue Growth in the First Quarter 2023

While Investing in Augmented Strategy for Future Growth

May 8, 2023

Page 13 of 16

 

HELIOS TECHNOLOGIES

ADDITIONAL INFORMATION

(Unaudited)

2023 Sales by Geographic Region and Segment

 

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

% Change y/y

 

 

 

 

 

 

 

 

 

 

 

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hydraulics

$

57.9

 

34%

 

 

 

 

 

 

 

 

 

 

 

 

Electronics

 

55.1

 

(29%)

 

 

 

 

 

 

 

 

 

 

 

 

Consol. Americas

 

113.0

 

(6%)

 

 

 

 

 

 

 

 

 

 

 

 

% of total

 

53

%

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hydraulics

$

49.4

 

(7%)

 

 

 

 

 

 

 

 

 

 

 

 

Electronics

 

6.7

 

(43%)

 

 

 

 

 

 

 

 

 

 

 

 

Consol. EMEA

 

56.1

 

(13%)

 

 

 

 

 

 

 

 

 

 

 

 

% of total

 

26

%

 

 

 

 

 

 

 

 

 

 

 

 

 

APAC:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hydraulics

$

40.4

 

(2%)

 

 

 

 

 

 

 

 

 

 

 

 

Electronics

 

3.7

 

(73%)

 

 

 

 

 

 

 

 

 

 

 

 

Consol. APAC

 

44.1

 

(20%)

 

 

 

 

 

 

 

 

 

 

 

 

% of total

 

21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

213.2

 

(11%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022 Sales by Geographic Region and Segment

 

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

% Change y/y

Q2

 

% Change y/y

Q3

 

% Change y/y

Q4

 

% Change y/y

2022

 

% Change y/y

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hydraulics

$

43.1

 

26%

$

49.9

 

20%

$

49.7

 

10%

$

56.8

 

22%

$

199.5

 

19%

Electronics

 

77.7

 

20%

 

80.2

 

25%

 

65.0

 

1%

$

48.0

 

(26%)

 

270.9

 

5%

Consol. Americas

 

120.8

 

22%

 

130.1

 

23%

 

114.7

 

5%

 

104.8

 

(6%)

 

470.4

 

11%

% of total

 

50

%

 

 

54

%

 

 

55

%

 

53%

 

 

 

53

%

 

EMEA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hydraulics

$

52.9

 

22%

$

49.0

 

5%

$

41.3

 

(8%)

$

43.3

 

(4%)

$

186.5

 

4%

Electronics

 

11.8

 

27%

 

12.3

 

12%

 

7.7

 

(31%)

 

5.3

 

(50%)

 

37.1

 

(12%)

Consol. EMEA

 

64.7

 

23%

 

61.3

 

6%

 

49.0

 

(12%)

 

48.6

 

(13%)

 

223.6

 

1%

% of total

 

27

%

 

 

25

%

 

 

24

%

 

 

25

%

 

 

25

%

 

APAC:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hydraulics

$

41.1

 

(1%)

$

43.9

 

(2%)

$

40.2

 

(7%)

$

40.1

 

3%

$

165.3

 

(2%)

Electronics

 

13.9

 

23%

 

6.4

 

(58%)

 

3.3

 

(77%)

$

2.5

 

(79%)

 

26.1

 

(51%)

Consol. APAC

 

55.0

 

4%

 

50.3

 

(16%)

 

43.5

 

(25%)

 

42.6

 

(16%)

 

191.4

 

(14%)

% of total

 

23

%

 

 

21

%

 

 

21

%

 

 

22

%

 

 

22

%

 

Total

$

240.5

 

17%

$

241.7

 

8%

$

207.2

 

(7%)

$

196.0

 

(10%)

$

885.4

 

2%

 

 

 

 


Helios Technologies Reports Strong Revenue Growth in the First Quarter 2023

While Investing in Augmented Strategy for Future Growth

May 8, 2023

Page 14 of 16

 

HELIOS TECHNOLOGIES

Non-GAAP Adjusted Operating Income RECONCILIATION

(In millions)

(Unaudited)

 

 

Three Months Ended

 

 

April 1, 2023

 

 

April 2, 2022

 

GAAP operating income

$

24.8

 

 

$

42.9

 

Acquisition-related amortization of intangible assets

 

8.1

 

 

 

7.0

 

Acquisition and financing-related expenses(A)

 

1.7

 

 

 

0.9

 

Restructuring charges(B)

 

1.2

 

 

 

0.2

 

Officer transition costs

 

0.8

 

 

 

0.3

 

Acquisition integration costs (C)

 

-

 

 

 

1.1

 

Non-GAAP adjusted operating income

$

36.6

 

 

$

52.4

 

GAAP operating margin

 

11.6

%

 

 

17.8

%

Non-GAAP adjusted operating margin

 

17.2

%

 

 

21.8

%

 

 

 

 

 

 

Adjusted EBITDA RECONCILIATION

(In millions)

(Unaudited)

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

April 1, 2023

 

 

April 2, 2022

 

 

April 1, 2023

 

Net income

$

13.9

 

 

$

30.5

 

 

$

81.8

 

Interest expense, net

 

6.2

 

 

 

3.8

 

 

 

19.1

 

Income tax provision

 

4.1

 

 

 

8.8

 

 

 

18.7

 

Depreciation and amortization

 

15.2

 

 

 

12.6

 

 

 

54.2

 

EBITDA

 

39.4

 

 

 

55.6

 

 

 

173.8

 

Acquisition and financing-related expenses(A)

 

1.7

 

 

 

0.9

 

 

 

6.7

 

Restructuring charges(B)

 

1.2

 

 

 

0.2

 

 

 

4.4

 

Officer transition costs

 

0.8

 

 

 

0.3

 

 

 

0.8

 

Acquisition integration costs (C)

 

-

 

 

 

1.1

 

 

 

2.5

 

Change in fair value of contingent consideration

 

0.2

 

 

 

0.8

 

 

 

1.1

 

Other

 

-

 

 

 

-

 

 

 

0.1

 

Adjusted EBITDA

$

43.3

 

 

$

59.0

 

 

$

189.4

 

Adjusted EBITDA margin

 

20.3

%

 

 

24.5

%

 

 

22.1

%

 

 

 

 

 

 

 

 

 

Pre-acquisition adjusted EBITDA, 2023 Schultes, 2022 Taimi and Daman

 

 

 

 

 

 

 

9.5

 

TTM Pro forma adjusted EBITDA

 

 

 

 

 

 

$

198.9

 

 

 

 


Helios Technologies Reports Strong Revenue Growth in the First Quarter 2023

While Investing in Augmented Strategy for Future Growth

May 8, 2023

Page 15 of 16

 

HELIOS TECHNOLOGIES

Non-GAAP Cash Net Income RECONCILIATION

(In millions)

(Unaudited)

 

Three Months Ended

 

 

April 1, 2023

 

 

April 2, 2022

 

Net income

$

13.9

 

 

$

30.5

 

Amortization of intangible assets(D)

 

8.3

 

 

 

7.1

 

Acquisition and financing-related expenses(A)

 

1.7

 

 

 

0.9

 

Restructuring charges(B)

 

1.2

 

 

 

0.2

 

Officer transition costs

 

0.8

 

 

 

0.3

 

Acquisition integration costs (C)

 

-

 

 

 

1.1

 

Change in fair value of contingent consideration

 

0.2

 

 

 

0.8

 

Tax effect of above

 

(2.7

)

 

 

(2.6

)

Non-GAAP cash net income

$

23.4

 

 

$

38.3

 

Non-GAAP cash net income per diluted share

$

0.72

 

 

$

1.18

 

(A) Acquisition and financing-related expenses include costs associated with our M&A activities. These activities include all phases of the M&A process from analyzing targets, to raising funding, to due diligence and transaction costs at closing. We utilize internal resources for our acquisition activities and have chosen not to staff a full M&A department or use significant outside services. 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 April 1, 2023, the charges include recurring labor costs of $0.2 million, professional fees of $1.1 million, travel costs of $0.1 million and other M&A related costs of $0.3 million.

(B) Restructuring activities include costs associated with the creation of our two new Regional Operational Centers of Excellence. 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 April 1, 2023, the charges include non-recurring labor costs of $0.6 million, travel costs of $0.2 million and manufacturing relocation and other costs of $ 0.4 million.

(C) Acquisition integration activities include costs associated with integrating our 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 April 1, 2023, costs incurred for our integration activities were minimal.

(D) Amortization of intangible assets presented here includes $0.2 million of amortization for capitalized software development costs included within cost of sales in the income statement.

HELIOS TECHNOLOGIES

Non-GAAP Sales Growth RECONCILIATION

(In millions)

(Unaudited)

 

 

Three Months Ended

 

 

Hydraulics

 

 

Electronics

 

 

Consolidated

 

Q1 2023 Net Sales

$

147.7

 

 

$

65.5

 

 

$

213.2

 

Impact of foreign currency translation(E)

 

3.3

 

 

 

0.2

 

 

 

3.5

 

Net Sales in constant currency

 

151.0

 

 

 

65.7

 

 

 

216.7

 

Less: Acquisition related sales

 

(13.7

)

 

 

-

 

 

 

(13.7

)

Organic sales in constant currency

$

137.3

 

 

$

65.7

 

 

$

203.0

 

 

 

 

 

 

 

 

 

 

Q1 2022 Net Sales

$

137.1

 

 

$

103.4

 

 

$

240.5

 

 

 

 

 

 

 

 

 

 

Net sales growth

 

8

%

 

 

-37

%

 

 

-11

%

Net sales growth in constant currency

 

10

%

 

 

-36

%

 

 

-10

%

Organic net sales growth in constant currency

 

0

%

 

 

-36

%

 

 

-16

%

 

 

 

 

 

 

 

 

 

(E) The impact from foreign currency translation is calculated by translating current period activity at average prior period exchange rates.

 

 

 


Helios Technologies Reports Strong Revenue Growth in the First Quarter 2023

While Investing in Augmented Strategy for Future Growth

May 8, 2023

Page 16 of 16

 

 

Net Debt-to-Adjusted EBITDA RECONCILIATION

(In millions)

(Unaudited)

 

 

As of

 

 

 

April 1, 2023

 

Current portion of long-term non-revolving debt, net

 

 

20.2

 

Revolving lines of credit

 

 

346.7

 

Long-term non-revolving debt, net

 

 

158.9

 

Total debt

 

 

525.8

 

Less: Cash and cash equivalents

 

 

36.3

 

Net debt

 

 

489.5

 

 

 

 

 

TTM Pro forma adjusted EBITDA (F)

 

 

198.9

 

Ratio of net debt to TTM pro forma adjusted EBITDA

 

 

2.46

 

(F) On a pro-forma basis for Taimi, Daman, and Schultes.

 

Non-GAAP Financial Measures and Non-GAAP Forward-looking Financial Measures:
Adjusted operating income, adjusted operating margin, EBITDA, adjusted EBITDA, adjusted EBITDA margin, net debt-to-adjusted EBITDA, cash net income, cash 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 and cash net income and cash net income per diluted share disclosed above in our 2023 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.

 


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Document And Entity Information
May 08, 2023
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date May 08, 2023
Entity Registrant Name HELIOS TECHNOLOGIES, INC.
Entity Central Index Key 0001024795
Entity Emerging Growth Company false
Securities Act File Number 0-21835
Entity Incorporation, State or Country Code FL
Entity Tax Identification Number 59-2754337
Entity Address, Address Line One 7456 16th St E
Entity Address, City or Town Sarasota
Entity Address, State or Province FL
Entity Address, Postal Zip Code 34243
City Area Code 941
Local Phone Number 362-1200
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock $.001 Par Value
Trading Symbol HLIO
Security Exchange Name NYSE
XML 8 hlio-20230508_htm.xml IDEA: XBRL DOCUMENT 0001024795 2023-05-08 2023-05-08 false 0001024795 8-K 2023-05-08 HELIOS TECHNOLOGIES, INC. 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