Jul 01, 2022

Novanta Q2 2022 Earnings Report

Novanta achieved strong financial results, with double-digit growth in sales, Adjusted EBITDA, and EPS.

Key Takeaways

Novanta reported a 29% increase in GAAP revenue to $215 million for the second quarter of 2022. The company's GAAP diluted earnings per share increased by 48% to $0.49, and adjusted earnings per share increased by 26% to $0.78. Customer demand remains healthy, with bookings up 25% year over year, resulting in a record backlog of $653 million.

GAAP revenue increased by 29% to $215 million.

GAAP diluted earnings per share increased by 48% to $0.49.

Adjusted earnings per share increased by 26% to $0.78.

Adjusted EBITDA reached $45.0 million.

Total Revenue
$215M
Previous year: $168M
+28.6%
EPS
$0.78
Previous year: $0.62
+25.8%
Adjusted EBITDA
$45M
Previous year: $37M
+21.6%
Gross Profit
$95.2M
Previous year: $72.4M
+31.5%
Cash and Equivalents
$100M
Previous year: $134M
-24.9%
Free Cash Flow
$18.3M
Previous year: $23.4M
-21.8%
Total Assets
$1.21B
Previous year: $878M
+37.3%

Novanta

Novanta

Novanta Revenue by Segment

Forward Guidance

For the third quarter of 2022, the Company expects GAAP revenue of approximately $214 million to $216 million, demonstrating reported growth of 20% to 22%. The Company expects Adjusted Gross Profit Margin to be approximately 46.0%. The Company expects Adjusted EBITDA to be in the range of $43.5 million to $45.5 million and Adjusted Diluted EPS to be in the range of $0.71 to $0.76.

Positive Outlook

  • Maintain momentum with strong double-digit revenue growth
  • Consistently strong customer demand
  • Record levels of backlog
  • Adjusted Gross Profit Margin to be approximately 46.0%
  • Adjusted EBITDA to be in the range of $43.5 million to $45.5 million

Challenges Ahead

  • Continued supply chain constraints
  • Inflationary pressures
  • Foreign exchange challenges
  • Assumes no significant changes in foreign exchange rates
  • Macroeconomic environment

Revenue & Expenses

Visualization of income flow from segment revenue to net income