Novanta Reports 10.3% Revenue Growth, $1.42 Billion in Total Assets as of September 27, 2024

As of September 27, 2024, Novanta Inc. reported total assets of $1.42 billion, up from $1.23 billion at the end of 2023. Total current assets increased to $436.9 million, while cash and cash equivalents decreased to $92.7 million. Accounts receivable rose significantly from $139.4 million to $164.5 million. Intangible assets and goodwill also saw substantial increases, with intangible assets rising to $198.4 million and goodwill increasing to $594.1 million. Total liabilities increased to $676.6 million, driven by a rise in long-term debt from $349.4 million to $452.5 million. Stockholders' equity grew to $742.2 million, with retained earnings increasing to $251.1 million.

For the third quarter of 2024, Novanta reported revenue of $244.4 million, a 10.3% increase from $221.5 million in Q3 2023. Year-to-date revenue reached $711.2 million, up 6.1% from $670.1 million in the same period last year. The increase in revenue was primarily attributed to the acquisition of Motion Solutions, which contributed $21.1 million in Q3 and $62.6 million year-to-date. Gross profit for Q3 2024 was $109.2 million, compared to $101.6 million in Q3 2023, while operating income rose to $32.6 million from $30.3 million. However, net income for Q3 2024 decreased to $19.2 million from $21.2 million in the prior year, reflecting a decline in profitability.

The company completed the acquisition of Motion Solutions on January 2, 2024, for $192 million, enhancing its product offerings in the medical and precision medicine markets. The acquisition was financed through borrowings under its revolving credit facility. The Motion Solutions segment reported revenues of $62.6 million and a loss before income taxes of $1.3 million for the nine months ended September 27, 2024.

Operating expenses increased, with R&D expenses for Q3 2024 at $23.3 million, up from $22.0 million in the prior year. Selling, general, and administrative expenses also rose to $44.3 million from $39.6 million. Restructuring costs for the nine months ended September 27, 2024, totaled $5.0 million, with additional costs anticipated.

The effective tax rate for Q3 2024 was 20.8%, significantly higher than the 7.7% in the prior year, influenced by the mix of income across jurisdictions. Net cash provided by operating activities for the nine months ended September 27, 2024, was $97.0 million, an increase from $81.1 million in the previous year. Cash used in investing activities surged to $206.1 million, primarily due to the Motion Solutions acquisition.