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Dec 28, 2019
Helios Q4 2019 Earnings Report
Reported strong finish to 2019 with operational efficiency leading to higher output and strong EPS performance.
Key Takeaways
Helios Technologies reported fourth-quarter sales of $125.9 million, a decrease of 9% compared to the prior year. The company's EPS was $0.43, and non-GAAP cash EPS was $0.54. They also reduced debt by $52 million in 2019.
Operational efficiency led to higher output per labor hour.
Incremental revenue and improved productivity drove better-than-expected margins.
Strong cash flow allowed the company to exceed its adjusted free cash flow goal for the year.
Debt was reduced by $52 million in 2019, closing the year with 2.1x net debt-to-adjusted EBITDA.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company’s expectations for 2020, compared with actual 2019 results: Consolidated revenue $555 million $520 - $555 million 0 - (6)% Hydraulics segment revenue $443 million $415 - $443 million 0 - (6)% Electronics segment revenue $112 million $105 - $112 million 0 - (6)% GAAP EPS $1.88 $1.55 - $1.88 0 - (17)% Non-GAAP cash EPS $2.43 $2.00 - $2.30 (5)% - (18)% Adjusted EBITDA margin 23.6% 22.0% - 23.0% (60) - (160) bps
Positive Outlook
- Hydraulics segment revenue will be evenly split between the first and second halves of the year, with the second quarter representing the strongest for the segment.
- The progression tips slightly toward the back half of the year for the Electronics segment with a 48%/52% ratio, and the third quarter driving the second half strength.
- The product development process for these opportunities is a joint effort between us and our OEM customers that takes place 12-24 months before we start selling the products.
- We are confident that these efforts will result in future sales and significant profitable growth in this segment.
Challenges Ahead
- Given the economic backdrop including uncertainty surrounding the economic impact of the coronavirus, we are approaching 2020 guidance cautiously, with wider ranges than we have historically provided.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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