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Mar 28, 2020
Helios Q1 2020 Earnings Report
Helios Technologies' first quarter performance exceeded expectations despite a softer demand environment.
Key Takeaways
Helios Technologies reported strong net sales of $129.5 million in Q1 2020. Productivity improvements drove gross margin to 40.1%. A goodwill impairment resulted in an EPS loss of $(0.54), but non-GAAP cash EPS was $0.56. Adjusted EBITDA was $30.4 million, with a 23.5% margin on sales.
Net sales in Q1 were strong at $129.5 million, despite a $5 million headwind from COVID-19.
Productivity improvements drove gross margin to 40.1%, up from 38.5%.
Goodwill impairment resulted in EPS loss of $(0.54), while non-GAAP cash EPS was $0.56.
Adjusted EBITDA was $30.4 million, representing a 23.5% margin on sales.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Given the significant uncertainty surrounding the eventual magnitude and duration of the impact of COVID-19 on the economy globally, the company withdrew its 2020 guidance.
Positive Outlook
- Postponing additional non-essential capital expenditures
- Reducing our temporary labor force
- Reducing overtime
- Applying additional salary reductions
- Reducing working hours to lower payroll expense
Challenges Ahead
- The economic impact of the pandemic has negatively affected our sales and orders for April.
- Second quarter headwinds are expected, with the largest impact in April due to shutdowns of many global OEM customers.
- A portion of our backlog has been postponed from April to later in the second quarter.
- A smaller number of orders have been cancelled.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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