Oct 01, 2021

Novanta Q3 2021 Earnings Report

Novanta had excellent performance with strong double-digit growth for sales, bookings, and profit.

Key Takeaways

Novanta's Q3 2021 results showed strong growth, with GAAP revenue of $177.7 million and a significant increase in bookings. The company's performance was driven by robust customer demand in advanced industrial and medical applications, and the successful integration of new acquisitions.

GAAP revenue reached $177.7 million, a 24.3% increase year-over-year.

GAAP consolidated net income was $13.6 million, compared to $8.3 million in the same quarter of the previous year.

Adjusted EBITDA was $40.4 million, up from $30.2 million in the third quarter of 2020.

The company raised its full-year guidance, expecting continued growth in the fourth quarter.

Total Revenue
$178M
Previous year: $143M
+24.3%
EPS
$0.75
Previous year: $0.42
+78.6%
Adjusted EBITDA
$40.4M
Previous year: $30.2M
+33.8%
Gross Profit
$76.3M
Previous year: $59.1M
+29.1%
Cash and Equivalents
$102M
Previous year: $107M
-4.0%
Free Cash Flow
$7.78M
Previous year: $39.6M
-80.3%
Total Assets
$1.21B
Previous year: $858M
+41.1%

Novanta

Novanta

Novanta Revenue by Segment

Forward Guidance

For the fourth quarter of 2021, the Company expects GAAP revenue of approximately $185 million to $195 million. The Company expects Adjusted EBITDA to be in the range of $37 million to $41 million and Adjusted Diluted EPS to be in the range of $0.60 to $0.67.

Positive Outlook

  • Continued growth expected in the fourth quarter and full year.
  • Strong customer demand.
  • New products and innovations are getting excellent traction.
  • Strategic positioning is strong.
  • Teams are committed to serving customers.

Challenges Ahead

  • Persistent supply chain difficulties.
  • No significant changes in foreign exchange rates assumed.
  • Inherent difficulty in forecasting and quantifying certain amounts for GAAP reconciliations.
  • Potential for significant discrete income tax expenses.
  • Possible impact of purchase price allocations for recently completed acquisitions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income