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Jan 02, 2021
Gates Industrial Q4 2020 Earnings Report
Gates Industrial's Q4 2020 results reflected a return to growth across all regions, driven by solid core revenue increase and significant free cash flow generation.
Key Takeaways
Gates Industrial reported a 9.4% increase in net sales, including an 8.6% core revenue growth. The company's net income attributable to shareholders was $24.3 million, or $0.08 per diluted share, and adjusted net income was $57.7 million, or $0.20 per diluted share. Adjusted EBITDA margin expanded by 190 basis points, and free cash flow reached $159.7 million.
Net sales increased by 9.4%, with core revenue growth of 8.6%.
Net income attributable to shareholders was $24.3 million, or $0.08 per diluted share.
Adjusted EBITDA margin improved by 190 basis points year-over-year.
Free cash flow reached $159.7 million, representing 276.8% of Adjusted Net Income.
Forward Guidance
The company is introducing its full-year 2021 outlook, with core revenue expected to grow in the range of 9% to 14%, and Adjusted EBITDA margin expected in the range of 21% to 22%.
Positive Outlook
- Core revenue expected to grow in the range of 9% to 14%.
- Adjusted EBITDA margin expected in the range of 21% to 22%.
- Total capital expenditures expected in the range of $90 million to $110 million.
- Free Cash Flow Conversion to be greater than 80% of Adjusted Net Income.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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