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Gates Industrial Reports Second - Quarter 2021 Results Denver , CO , August 9 , 2021 Second - Quarter 2021 Highlights Net sales up 58.7 % , including core revenue growth of 51.0 % , compared to the prior - year period . Net income attributable to shareholders of $ 96.9 million , or $ 0.33 per diluted share . Adjusted Net Income of $ 125.6 million , or $ 0.42 per diluted share . Adjusted EBITDA of $ 216.0 million , a year - over - year increase of 159.6 % and Adjusted EBITDA margin of 23.6 % , or year - over - year expansion of 920 basis points . Raising 2021 full - year guidance . 0 O 0 O O Gates Gates Industrial Corporation plc ( NYSE : GTES ) , a leading global provider of application - specific power transmission and fluid power solutions , today reported results for the second quarter ended July 3 , 2021 . Ivo Jurek , Gates Industrial's Chief Executive Officer , commented , " Our business continues to recover broadly across both our product segments , delivering another quarter of above - market growth , resulting in record quarterly performance that exceeded our guidance . Our strong organic growth was fueled by our recent investments in innovation , the momentum behind our growth initiatives and the positive secular trends we are seeing across many of our key end markets . " Jurek continued , " The operating environment in the quarter was quite challenging . We navigated raw material and labor shortages , as well as limited freight availability , going to great lengths to support our global customers . We also maintained a positive price / cost position in the face of significant inflation throughout our supply chain , which we expect to continue for the balance of the year . Despite these complexities and the significant increase in production volumes , our global teams ' excellent operational execution allowed us to deliver strong incremental margins and cash flow generation . Our net leverage is now in the 2-3x range we provided as our mid - term target and we expect to make further progress in the second half of the year . This provides us with increased optionality , particularly as it relates to opportunities to accelerate our growth beyond our organic targets . " Second - Quarter Financial Results Second - quarter net sales of $ 915.1 million increased 58.7 % over the prior - year quarter net sales of $ 576.5 million , including a 51.0 % core revenue increase and favorable foreign currency impact of 7.7 % . The growth in the quarter was broad - based across segments , end markets , channels and regions . The most significant year - over - year growth came in the Diversified Industrial , Mobility & Recreation , Off - Highway and Automotive end markets . Sales into replacement channels also grew significantly , with the most notable growth coming from industrial end markets . Net income attributable to shareholders in the second quarter was $ 96.9 million , or $ 0.33 per diluted share , compared to a net loss attributable to shareholders of $ 22.4 million , or $ 0.08 per diluted share , in the prior - year period . Adjusted Net Income was $ 125.6 million , or $ 0.42 per diluted share , compared to $ 9.4 million , or $ 0.03 per diluted share , in the prior - year period . The diluted weighted - average number of shares outstanding in the second quarter of 2021 was 297,774,142 compared to 290,732,375 in the second quarter of 2020 . Second - quarter Adjusted EBITDA was $ 216.0 million , or 23.6 % of net sales , compared to $ 83.2 million , or 14.4 % of net sales in the prior - year quarter , representing Adjusted EBITDA margin expansion of 920 basis points . The margin expansion was a result of productivity initiatives , restructuring benefits and efficiencies from higher volumes . 1