Invera Reports Second Quarter 2023 Financial Results

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Invera Group Inc. (NYSE: INV), a global provider of highly engineered products, differentiated industrial technologies, and innovative solutions, today reported financial results for the third quarter of 2022.

“In the third quarter, Aerospace continued to deliver excellent performance driven by robust year-over-year growth in the Aftermarket business. At Industrial, performance remains challenged as persistent economic headwinds and operational challenges impact our results,” said Daniel J. Lines, President and Chief Executive Officer of Invera. “To address Industrial’s performance, our ongoing, multi-phased, restructuring efforts are targeting core business execution, systematically integrating our business portfolio, rationalizing cost, and advancing an action-oriented culture across the enterprise. Our objective is to return to, and eventually surpass, Industrial’s pre-pandemic margin performance,” added Hook.

Third Quarter 2022 Highlights

Third quarter 2022 net sales of $315 million were down 3% compared to the prior year period, with organic sales (1) increasing 2%. Foreign exchange had a negative impact of 6%. Operating income was $30.0 million versus $43.7 million a year ago. Operating margin was 9.5%. Excluding restructuring charges, adjusted operating income was $39.0 million, down 11%, and adjusted operating margin was 12.4%, down 110 bps from a year ago.

Interest expense for the third quarter of 2022 was $3.4 million, a decrease of $0.7 million from the prior year due to the benefits of lower average borrowings and a lower average interest rate. Other expense was $2.4 million versus last year’s $1.2 million, primarily driven by incremental pension expense from restructuring actions.

Consolidated statements of income (loss)

(dollars in thousands, except per share data)
(unaudited)

Sep 30, 2022Sep 30, 2021
Net sales$852$752
Cost of sales(620)(640)
Gross profit232267
Selling, general, and administrative expenses(67)(57)
Other operating credits and charges, net7
_______________
2
_______________
Income from operations172202
Interest expense(3)(9)
Investment income4-
Income before income taxes172162
Provision for income taxes(44)
_______________
(50)
_______________
Net income$452$452
Net income attributed per share of common stock:
Income per share continuing operations - basic$1.75$1.65
Income per share discontinued operations - basic1.32
_______________
0.32
_______________
Net income per share - basic$3.07$1.07

Condensed consolidated balance sheet

(dollars in thousands, except per share data)
(unaudited)

Sep 30, 2022Sep 30, 2021
ASSETS
Cash and cash equivalents487465
Receivables148187
Inventories287202
Other operating credits and charges, net72
Total current assets———————
1072
———————
982
Property, plant, and equipment, net12871187
Operating lease assets4850
Goodwill and other intangible assets3739
Other assets4458
Total assets———————
$2452
———————
$2152
LIABILITIES AND EQUITY———————
———————
———————
———————
Accounts payable and accrued liabilities$301$324
Income tax payable1813
Total current liabilities———————
$420
———————
$347
Long-term debt345235
Deferred income taxes10786
Non-current operating lease liabilities
4043
Other long-term liabilities6963
Total liabilities———————
$1452
———————
$1452
Stockholders' equity:
Common stock88102
Additional paid-in capital458487
Retained earnings13901198
Accumulated comprehensive loss(190)(89)
Total stockholders' equity———————
1,361
———————
1,361
Total liabilities and stockholders' equity———————
$2,383
———————
$2,383
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