Helios Technologies reports Q3 cash EPS 61c, consensus 58c
Reports Q3 revenue $138.0M, consensus $136.5M. The company said, "We are pleased with revenue and the quality of earnings produced in both segments of our business during the third quarter, as we continue to experience economic softening in our end markets. We realized organic sales growth in our Hydraulics segment, which benefited from a solid order backlog. However, our Electronics segment sales were again impacted by challenging end markets and the effects of customer contract changes we made earlier this year. From a profitability perspective, we have established a flexible cost base throughout our organization and both segments effectively employed cost management initiatives, allowing us to generate a resilient adjusted EBITDA margin relative to our topline. In our Sun Hydraulics business, we incurred one-time organizational restructuring charges related to our offer of early retirement as well as a small reduction in force. These actions allow us to achieve a more agile and competitive cost structure going forward as well as align the talent of the organization with our future growth strategies. The restructuring initiative will provide fourth quarter savings of approximately $0.6 million, resulting in a $3.0 million to $3.5 million reduction in our total cost base for 2020. In addition to our focus on costs, we continue to concentrate on cash flows. We realized free cash flow in excess of 15% during the quarter, bringing our year-to-date adjusted free cash flow to our target 10% level. We reduced debt by $27 million, bringing our net debt to adjusted EBITDA down to 2.3x, as we work toward our goal of less than 2x."