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Jun 27, 2020
Gates Industrial Q2 2020 Earnings Report
Gates Industrial reported second-quarter results, facing challenges due to COVID-19 but observing sequential monthly improvement and expecting demand to recover in the second half of the year.
Key Takeaways
Gates Industrial reported a decrease in net sales by 28.8% to $576.5 million, with a net loss attributable to shareholders of $22.4 million, or $0.08 per diluted share. Adjusted EBITDA was $83.2 million, representing 14.4% of net sales.
Net sales decreased by 28.8% compared to the prior-year period.
Net loss attributable to shareholders was $22.4 million, or $0.08 per diluted share.
Adjusted Net Income was $9.4 million, or $0.03 per diluted share.
Adjusted EBITDA was $83.2 million, with an Adjusted EBITDA margin of 14.4%.
Forward Guidance
Due to the continuing level of uncertainty related to the COVID-19 pandemic and the inability to predict the trajectory and sustainability of the demand recovery, the Company is not reinstating full-year 2020 core revenue or Adjusted EBITDA guidance at this time. The Company continues to expect total capital expenditures of approximately $70 million and Free Cash Flow Conversion to be greater than 100% of Adjusted Net Income.
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