Dec 31, 2021

Novanta Q4 2021 Earnings Report

Novanta demonstrated strong double-digit growth in sales, bookings, and profit.

Key Takeaways

Novanta reported a revenue of $199.0 million for Q4 2021, a 34.9% increase compared to Q4 2020. Customer demand continued to be robust in advanced industrial and medical applications, and customer orders were up 92% year over year.

GAAP revenue of $199.0 million, an increase of 34.9% versus Q4 2020.

Acquisition activities resulted in an increase in revenue of $32.1 million, or 21.8%, compared to Q4 2020.

GAAP operating income was $21.7 million, compared to $17.1 million in Q4 2020.

Adjusted EBITDA was $42.6 million, compared to $32.4 million in Q4 2020.

Total Revenue
$199M
Previous year: $147M
+34.9%
EPS
$0.67
Previous year: $0.53
+26.4%
Adjusted EBITDA
$42.6M
Previous year: $32.4M
+31.5%
Gross Profit
$82.9M
Previous year: $62.3M
+33.1%
Cash and Equivalents
$117M
Previous year: $125M
-6.1%
Free Cash Flow
$23.5M
Previous year: $43.2M
-45.6%
Total Assets
$1.23B
Previous year: $865M
+41.9%

Novanta

Novanta

Forward Guidance

For the first quarter of 2022, the Company expects GAAP revenue to be in the range of approximately $192 million to $200 million. The Company expects Adjusted Gross Profit Margin to be approximately 44.5%. The Company expects Adjusted EBITDA to be in the range of $38 million to $41 million and Adjusted Diluted EPS to be in the range of $0.60 to $0.66.

Positive Outlook

  • GAAP revenue to be in the range of approximately $192 million to $200 million.
  • Adjusted Gross Profit Margin to be approximately 44.5%.
  • Adjusted EBITDA to be in the range of $38 million to $41 million
  • Adjusted Diluted EPS to be in the range of $0.60 to $0.66.
  • GAAP revenue to be in the range of approximately $825 million to $845 million for full year 2022.

Challenges Ahead

  • We are experiencing near-term raw material shortages and disruptions
  • cost inflation in our supply chain
  • The Company’s guidance assumes no significant changes in foreign exchange rates.
  • Adjusted EBITDA to be in the range of $172 million to $182 million for full year 2022.
  • Adjusted Diluted EPS to be in the range of $2.85 to $3.00 for full year 2022.