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Apr 03, 2021
Gates Industrial Q1 2021 Earnings Report
Gates Industrial's first quarter of 2021 demonstrated strong growth, exceeding original guidance and driven by successful innovation investments and growth initiatives.
Key Takeaways
Gates Industrial reported a strong first quarter in 2021, with net sales up 24.1% and core revenue growth of 21.0%. Net income attributable to shareholders increased by 89.0% to $67.3 million, or $0.23 per diluted share. The company is raising its 2021 guidance for core revenue growth and Adjusted EBITDA margin expansion.
Net sales increased by 24.1%, driven by a core revenue growth of 21.0%.
Net income attributable to shareholders rose by 89.0% to $67.3 million, or $0.23 per diluted share.
Adjusted Net Income per diluted share increased by 57.1% to $0.33.
Adjusted EBITDA grew by 62.5% to $196.3 million, with an Adjusted EBITDA margin of 22.3%.
Forward Guidance
The Company is increasing its full-year 2021 outlook. Core revenue growth is now expected to be in the range of 18% to 21%, increased from the previous range of 9% to 14%. Adjusted EBITDA margin is now expected to be in the range of 22.0% to 22.8%, compared to the previous range of 21.0% to 22.0%. The Company continues to expect capital expenditures to range between $90 million and $110 million and free cash flow conversion to be greater than 80%.
Positive Outlook
- Core revenue growth is now expected to be in the range of 18% to 21%
- Adjusted EBITDA margin is now expected to be in the range of 22.0% to 22.8%
- Capital expenditures to range between $90 million and $110 million
- Free cash flow conversion to be greater than 80%
Historical Earnings Impact
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Avg. Return Before/After Earnings
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