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8-K - 8-K - AMPHENOL CORP /DE/a12-16562_18k.htm

EXHIBIT 99.1

 

Amphenol

News Release

 

 

World Headquarters

 

 

 

358 Hall Avenue

 

P. O. Box 5030

 

Wallingford, CT 06492-7530

 

Telephone (203) 265-8900

 

FOR IMMEDIATE RELEASE

 

 

 

For Further Information:

 

Diana G. Reardon

 

Executive Vice President and

 

  Chief Financial Officer

 

203/265-8630

 

www.amphenol.com

 

SECOND QUARTER 2012 RECORD RESULTS
REPORTED BY AMPHENOL CORPORATION

 

Wallingford, Connecticut, July 18, 2012.  Amphenol Corporation (NYSE-APH) reported today second quarter 2012 record diluted earnings per share of $.86 compared to $.85 per share for the comparable 2011 period.  Such per share amount for the 2011 quarter includes an $18 million ($11 million after tax), or $.06 per share, gain related to the adjustment of a contingent purchase price obligation for a 2010 acquisition.  Excluding this effect, diluted earnings per share was $.79 for the quarter ended June 30, 2011.  Sales for the second quarter 2012 were a record $1.061 billion compared to $1.018 billion for the 2011 period.  Currency translation had the effect of decreasing sales by approximately $19 million in the second quarter 2012 compared to the 2011 period.

 

For the six months ended June 30, 2012, diluted earnings per share were $1.63 compared to $1.57 for the 2011 period.  Excluding the effect of the adjustment above, diluted earnings per share was $1.51 for the six months ended June 30, 2011.  Sales for the six months ended June 30, 2012 were $2.043 billion compared to $1.958 billion for the 2011 period.  Currency translation had the effect of decreasing sales by approximately $23 million for the six month 2012 period compared to the 2011 period.

 

Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated “We are pleased to report new records of performance in the second quarter of 2012 with sales and EPS of $1.061 billion and $.86, respectively.  Sales increased by approximately 4% year-over-year and 8% sequentially. On a year-over-year basis, strength in the automotive, industrial, commercial aerospace and telecommunications and data communications equipment markets offset declines in the defense and wireless markets.  This is once again confirmation of the significant benefits of the Company’s diversity, especially given the uncertain environment in many of the world’s economies. In addition, it is extremely rewarding that the Company’s unique entrepreneurial culture continues to drive an unwavering focus on profitability, resulting in another sequential operating margin improvement of 50 basis points to 19.4% in Q2 2012.  I am very proud of our organization as we continue to execute well.”

 



 

“Our ongoing strategy of market and geographic diversification combined with our strong commitment to developing enabling technologies for our customers in all markets, both through organic product development and through our acquisition program, continues to expand the Company’s growth opportunities.  Consistent with this strategy, in the second quarter, the Company completed the acquisition of the Deutgen Group, a German manufacturer of high-technology, precision injection molded components primarily for automotive applications with annual sales of approximately $25 million.  This acquisition expands the Company’s product portfolio, in particular providing new expertise in advanced injection molding technologies for demanding applications in vehicles. In addition to our successful acquisition program, the Company continues to deploy its financial strength in a variety of other ways to increase shareholder value.  These include the purchase in this quarter of 2.1 million shares of the Company’s stock pursuant to our stock repurchase plan as well as the previously announced increase in the quarterly dividend to $.105 per share effective for dividends paid after March 2012.”

 

“Based on the assumption of stable economic conditions and current currency exchange rates including a relatively weaker euro, we expect third quarter 2012 revenues in the range of $1.080 billion to $1.100 billion and diluted EPS in the range of $.87 to $.90.  For the full year 2012, we now expect to achieve revenues and diluted EPS in the range of $4.210 billion to $4.250 billion and $3.38 to $3.44, respectively, an increase of 7% to 8% and 11% to 13% over 2011 revenues and diluted EPS (excluding 2011 one-time items), respectively. This compares to prior full year 2012 guidance for revenues and diluted EPS in the range of $4.105 billion to $4.190 billion and $3.30 to $3.38, respectively.  Despite the widely reported uncertainties in many global economies, we believe we can perform well in the dynamic electronics market due to our leading technology, increasing positions with our customers in diverse markets, worldwide presence, lean cost structure, and agile, experienced and entrepreneurial management team.”

 

“The electronics revolution continues to accelerate, with new applications and higher performance requirements driving increased demand for our leading interconnect technologies in all of our end markets.  This creates a significant, long-term growth opportunity for Amphenol.  Importantly, our ongoing actions to enhance our competitive advantages and build sustained financial strength have created a solid base for future performance.  I am confident in the ability of our outstanding management team to dynamically adjust to a constantly changing market environment, to continue to generate strong profitability and to further capitalize on the many opportunities to expand our market position.”

 

The Company will host a conference call to discuss its first quarter results at 1:00 PM (EST) July 18, 2012.  The toll free dial-in number to participate in this call is 888-395-9624; International dial-in number is 517-623-4547; Passcode: Reardon.  There will be a replay available until 11:59 P.M. (EST) on Friday, July 20, 2012.  The replay numbers are toll free 800-839-2290; International toll number is 203-369-3607; Passcode: 5137.

 

A live broadcast as well as a replay will also be available on the Internet at http://www.amphenol.com/investors/webcasts.php.

 

Amphenol Corporation is one of the world’s leading producers of electronic and fiber optic connectors, cable and interconnect systems.  Amphenol products are engineered and manufactured in the Americas, Europe, Asia and Africa and sold by a worldwide sales and marketing organization.

 



 

Amphenol has a diversified presence as a leader in high growth areas of the interconnect market including: Military, Commercial Aerospace, Automotive, Broadband Communications, Industrial, Telecommunications and Data Communications, Wireless Devices and Wireless Infrastructure.

 

Statements in this press release which are other than historical facts are intended to be “forward-looking statements” within the meaning of the Securities Exchange Act of 1934, the Private Securities Litigation Reform Act of 1995 and other related laws.  While the Company believes such statements are reasonable, the actual results and effects could differ materially from those currently anticipated.  Please refer to [Part I, Item 1A] of the Company’s Form 10-K for the year ended December 31, 2011, for some factors that could cause the actual results to differ from estimates.  In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise.

 



 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(dollars in thousands, except per share data)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,061,107

 

$

1,017,738

 

$

2,042,711

 

$

1,958,323

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

726,946

 

696,516

 

1,399,279

 

1,332,977

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

334,161

 

321,222

 

643,432

 

625,346

 

 

 

 

 

 

 

 

 

 

 

Change in contingent acquisition related obligations

 

 

(17,813

)

 

(17,813

)

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense

 

127,985

 

124,161

 

251,977

 

242,200

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

206,176

 

214,874

 

391,455

 

400,959

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(15,099

)

(11,371

)

(28,848

)

(21,387

)

Other income (expenses), net

 

2,634

 

2,130

 

4,821

 

3,834

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

193,711

 

205,633

 

367,428

 

383,406

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

(51,818

)

(56,739

)

(98,287

)

(105,627

)

 

 

 

 

 

 

 

 

 

 

Net income

 

141,893

 

148,894

 

269,141

 

277,779

 

Less: Net income attributable to noncontrolling interests

 

(951

)

(1,143

)

(1,636

)

(2,070

)

 

 

 

 

 

 

 

 

 

 

Net income attributable to Amphenol Corporation

 

$

140,942

 

$

147,751

 

$

267,505

 

$

275,709

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Basic

 

$

0.87

 

$

0.86

 

$

1.65

 

$

1.59

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Basic

 

161,511,550

 

171,194,474

 

162,186,707

 

173,170,408

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Diluted (1)

 

$

0.86

 

$

0.85

 

$

1.63

 

$

1.57

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Diluted

 

163,871,565

 

173,592,458

 

164,613,352

 

175,707,345

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.105

 

$

0.015

 

$

0.210

 

$

0.030

 

 


Note 1            Earnings per share for the 2011 quarter includes a $17.8 million ($11.2 million after tax), or $.06 per share, gain related to the adjustment of a contingent purchase price obligation for a 2010 acquisition.  Excluding this effect, diluted earnings per share was $.79 and $1.51 for the three and six months ended June 30, 2011, respectively.

 



 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(dollars in thousands)

 

 

 

June 30,

 

December 31,

 

 

 

2012

 

2011

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

646,014

 

$

515,086

 

Short-term investments

 

134,450

 

133,848

 

Total cash, cash equivalents and short-term investments

 

780,464

 

648,934

 

Accounts receivable, less allowance for doubtful accounts of $11,481 and $11,113, respectively

 

840,090

 

767,181

 

Inventories, net

 

675,342

 

649,862

 

Other current assets

 

130,264

 

115,260

 

 

 

 

 

 

 

Total current assets

 

2,426,160

 

2,181,237

 

 

 

 

 

 

 

Land and depreciable assets, less accumulated depreciation of $680,069 and $655,869, respectively

 

396,180

 

380,501

 

Goodwill

 

1,803,710

 

1,746,113

 

Other long-term assets

 

140,789

 

137,374

 

 

 

 

 

 

 

 

 

$

4,766,839

 

$

4,445,225

 

 

 

 

 

 

 

LIABILITIES & EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

431,954

 

$

377,867

 

Accrued salaries, wages and employee benefits

 

81,040

 

83,810

 

Accrued income taxes

 

85,653

 

87,315

 

Other accrued expenses

 

113,725

 

93,125

 

Short-term debt

 

89,284

 

298

 

 

 

 

 

 

 

Total current liabilities

 

801,656

 

642,415

 

 

 

 

 

 

 

Long-term debt

 

1,454,545

 

1,376,831

 

Accrued pension and post employment benefit obligations

 

204,932

 

207,049

 

Other long-term liabilities

 

42,189

 

34,144

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

Common stock

 

161

 

163

 

Additional paid-in capital

 

248,973

 

189,166

 

Accumulated earnings

 

2,135,047

 

2,102,497

 

Accumulated other comprehensive loss

 

(133,607

)

(120,057

)

 

 

 

 

 

 

Total shareholders’ equity attributable to Amphenol Corporation

 

2,250,574

 

2,171,769

 

 

 

 

 

 

 

Noncontrolling interests

 

12,943

 

13,017

 

 

 

 

 

 

 

Total equity

 

2,263,517

 

2,184,786

 

 

 

 

 

 

 

 

 

$

4,766,839

 

$

4,445,225

 

 



 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(Unaudited)

(dollars in thousands)

 

 

 

Six months ended

 

 

 

June 30,

 

 

 

2012

 

2011

 

 

 

 

 

 

 

Cash flow from operating activities:

 

 

 

 

 

Net income

 

$

269,141

 

$

277,779

 

Adjustments for cash flow from operating activities:

 

 

 

 

 

Depreciation and amortization

 

58,591

 

57,208

 

Stock-based compensation expense

 

15,101

 

13,381

 

Change in contingent acquisition related obligations

 

 

(17,813

)

Excess tax benefits from stock-based compensation payment arrangements

 

(9,677

)

(5,493

)

Net change in components of working capital

 

(40,573

)

(115,869

)

Net change in other long-term assets and liabilities

 

(978

)

3,154

 

 

 

 

 

 

 

Cash flow provided by operating activities

 

291,605

 

212,347

 

 

 

 

 

 

 

Cash flow from investing activities:

 

 

 

 

 

Additions to property, plant and equipment

 

(63,422

)

(46,457

)

Proceeds from disposals of fixed assets

 

2,304

 

677

 

Purchases of short-term investments

 

(142,330

)

(69,330

)

Sales and maturities of short-term investments

 

141,728

 

82,324

 

Acquisitions, net of cash acquired

 

(82,349

)

(51,889

)

 

 

 

 

 

 

Cash flow used in investing activities

 

(144,069

)

(84,675

)

 

 

 

 

 

 

Cash flow from financing activities:

 

 

 

 

 

Borrowings under senior notes

 

498,730

 

 

Borrowings under credit facilities

 

436,036

 

489,200

 

Repayments under credit facilities

 

(767,900

)

(136,821

)

Payment of fees and expenses related to debt financing

 

(4,318

)

(2,105

)

Proceeds from exercise of stock options

 

35,708

 

21,451

 

Excess tax benefits from stock-based compensation payment arrangements

 

9,677

 

5,493

 

Payment of contingent acquisition related obligations

 

 

(40,000

)

Payments to shareholders of noncontrolling interests

 

(1,650

)

(27,122

)

Purchase and retirement of treasury stock

 

(201,020

)

(360,998

)

Dividend payments

 

(19,500

)

(5,241

)

 

 

 

 

 

 

Cash flow used in financing activities

 

(14,237

)

(56,143

)

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(2,371

)

13,791

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

130,928

 

85,320

 

Cash and cash equivalents balance, beginning of period

 

515,086

 

525,888

 

 

 

 

 

 

 

Cash and cash equivalents balance, end of period

 

$

646,014

 

$

611,208

 

 



 

AMPHENOL CORPORATION

SEGMENT INFORMATION

(dollars in thousands)

(Unaudited)

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

Trade Sales:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

985,490

 

$

943,752

 

$

1,893,525

 

$

1,821,268

 

Cable Products

 

75,617

 

73,986

 

149,186

 

137,055

 

Consolidated

 

$

1,061,107

 

$

1,017,738

 

$

2,042,711

 

$

1,958,323

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

212,586

 

$

203,380

 

$

403,445

 

$

397,492

 

Cable Products

 

10,458

 

9,500

 

21,134

 

16,959

 

Stock-based compensation expense

 

(7,610

)

(7,061

)

(15,101

)

(13,381

)

Change in contingent acquisition related obligations

 

 

17,813

 

 

17,813

 

Other operating expenses

 

(9,258

)

(8,758

)

(18,023

)

(17,924

)

Consolidated

 

$

206,176

 

$

214,874

 

$

391,455

 

$

400,959

 

 

 

 

 

 

 

 

 

 

 

ROS%:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

21.6

%

21.6

%

21.3

%

21.8

%

Cable Products

 

13.8

%

12.8

%

14.2

%

12.4

%

Stock-based compensation

 

-0.7

%

-0.7

%

-0.7

%

-0.7

%

Change in contingent acquisition related obligations

 

 

1.7

%

 

0.9

%

Corporate - all other

 

-0.9

%

-0.9

%

-0.9

%

-0.9

%

 

 

 

 

 

 

 

 

 

 

Consolidated

 

19.4

%

21.1

%

19.2

%

20.5

%