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Apr 03, 2020
Novanta Q1 2020 Earnings Report
Novanta's financial performance remained strong despite facing significant challenges from the COVID-19 pandemic.
Key Takeaways
Novanta reported GAAP revenue of $155.5 million, a slight decrease of 1.1% compared to Q1 2019. Despite the challenges posed by the COVID-19 pandemic, the company's performance exceeded expectations for revenue, Adjusted EBITDA, and Adjusted EPS. The company ended the quarter with a strong balance sheet, including approximately $74 million in cash and cash equivalents, and a borrowing capacity of $375 million under its revolving credit facility.
GAAP revenue was $155.5 million, a 1.1% decrease year-over-year.
GAAP net income was $11.9 million, compared to $12.3 million in Q1 2019.
Adjusted EBITDA was $27.6 million, slightly lower than $28.2 million in the previous year.
Operating cash flow increased to $17.6 million from $5.5 million in Q1 2019.
Forward Guidance
For the second quarter of 2020, the Company expects GAAP revenue of approximately $130 million to $142 million.
Positive Outlook
- Strong bookings and shipments were seen across the board in Q1.
- This was mostly driven by customers securing additional inventory to protect against pandemic caused supply disruptions.
- Novanta has a strong balance sheet.
- They have a strong innovation line-up.
- The portfolio is well positioned with exposure to long term secular trends in robotics and automation, healthcare productivity and precision medicine.
Challenges Ahead
- The company expects the short-term impact of the pandemic to be significant.
- The uncertain duration and scope of the pandemic makes it hard to estimate future impact.
- The uncertain timing of the global public health and economic recovery makes it hard to estimate future impact.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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