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Exhibit 99.1

 

LOGO

CONTACT:

Steve Martens, VP Investor Relations

Molex Incorporated

630-527-4344

For Immediate Release

MOLEX REPORTS RESULTS FOR FISCAL 2013 THIRD QUARTER

AND ANNOUNCES DIVIDEND INCREASE

Lisle, Illinois – April 23, 2013 — Molex Incorporated (NASDAQ: MOLX and MOLXA), a global electronic components company, today reported results for its third quarter ended March 31, 2013.

 

     Three Months Ended  
     Mar 31,      Dec 31,      Mar 31,  
USD millions, except per share data    2013      2012      2012  

Net revenue

   $ 852.9       $ 967.7       $ 837.1   

Net income

     44.8         70.4         64.9   

Earnings per share

     0.25         0.39         0.36   

Net revenue for the March 2013 quarter was $852.9 million, a decrease of 11.9% from the December 2012 quarter and an increase of 1.9% from the March 2012 quarter. In local currencies, net revenue declined 11.5% compared with the December 2012 quarter and increased 3.0% compared with the March 2012 quarter. Orders for the March 2013 quarter were $909.2 million, a decrease of 1.1% from the December 2012 quarter and an increase of 4.2% from the March 2012 quarter.

Net income for the March 2013 quarter was $44.8 million or $0.25 per share, compared with $70.4 million, or $0.39 per share, for the December 2012 quarter and $64.9 million, or $0.36 per share, for the March 2012 quarter. The current quarter was impacted by the previously announced litigation settlement related to unauthorized activities in Japan, which reduced net income by $21.8 million ($13.9 million after-tax or $0.08 per share) representing amounts related to the settlement not previously accrued.

 

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“Revenue in the March quarter was weaker than expected, largely due to the sharp reduction in demand from one customer for certain new programs that were launched in the September quarter and ramped significantly in the December quarter. The remainder of the business experienced a normal seasonal decline in revenue. We were able to mitigate the impact of lower revenue by closely managing manufacturing and operating costs,” stated Martin P. Slark, Chief Executive Officer. “Our backlog increased both sequentially and year over year and our order rate for the quarter was stable with sequential improvements in the automotive and industrial markets. The distribution channel was also stronger this quarter and we are optimistic that the remainder of calendar 2013 will provide more robust growth opportunities.”

Other financial highlights for the quarter ended March 31, 2013:

 

   

Gross profit margin was 29.1%, compared with 29.9% in the December 2012 quarter and 30.5% in the March 2012 quarter.

 

   

SG&A expense was $167.4 million, compared with $181.0 million in the December 2012 quarter and $163.9 million in the March 2012 quarter.

 

   

Backlog was $463.0 million, an increase of 14.6% from the December 2012 quarter and an increase of 22.8% from the March 2012 quarter.

 

   

The book-to-bill ratio for the March quarter was 1.07 to 1 compared with 0.95 to 1 for the December 2012 quarter and 1.04 to 1 for the March 2012 quarter.

 

   

Capital expenditures were $55.9 million or 6.6% of revenue.

 

   

Inventory days outstanding was 89 days compared with 83 days in the December 2012 quarter and 93 days in the March 2012 quarter.

 

   

Accounts receivable days outstanding was 70 days compared with 67 days in the December 2012 quarter and 72 days in the March 2012 quarter.

 

   

The effective tax rate was 23.6%. Excluding the impact from the Japan litigation settlement, the effective tax rate was 26.6%.

Japan Litigation Settlement

As previously announced on February 15, 2013, Molex and Mizuho Bank settled litigation regarding previously reported unauthorized loans. Pursuant to the settlement, Molex agreed to pay ¥17 billion ($182.8 million) and Mizuho Bank agreed to release Molex cash accounts and provisional attachments and to release Molex from any future claims. During the third quarter, the Company recognized a charge to income from operations of $21.2 million ($13.5 million after-tax) largely for interest expense and legal fees, and incurred related transaction costs charged to other income (expense) of $0.6 million ($0.4 million after-tax).

Increase in Cash Dividend

The Board of Directors has approved an increase in the quarterly cash dividend to $0.24 per share, an increase of 9.1% from the previous cash dividend of $0.22 per share. The increase is effective for the cash dividend payable on July 25, 2013 to shareholders of record on June 28, 2013, for each share of Common Stock (MOLX), Class A Common Stock (MOLXA) and Class B Common Stock, and will continue quarterly until further action by the Board.

Outlook

Based upon current order rates and customer backlog, the Company estimates revenue in the range of $870 to $910 million for the June 2013 quarter. At this level of revenue, the Company expects earnings per share in the range of $0.33 to $0.37, assuming constant foreign currency rates, unchanged commodity prices and an effective tax rate in the range of 30% to 32%.

 

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Earnings Conference Call Information

A conference call will be held on Tuesday, April 23, 2013 at 8:30 a.m. central time. Please dial (888) 679-8034 to participate in the call. International callers should dial (617) 213-4847. Please dial in at least five minutes prior to the start of the call and refer to participant pass code 58992005. Internet users will be able to access the webcast, including slide materials, live and in replay in the “Investors” section of the Company’s website at www.molex.com. A 48-hour telephone replay will be available at approximately 10:30 a.m. central time at (888) 286-8010 or (617) 801-6888 / pass code 33101742.

Other Investor Events

May 8, 2013 / Jefferies 2013 Global Technology, Media and Telecom Conference in New York

June 13, 2013 / 33rd Annual William Blair Growth Stock Conference in Chicago

Forward-Looking Statements

Statements in this release that are not historical are forward-looking and are subject to various risks and uncertainties that could cause actual results to vary materially from those stated. Words such as “expect,” “anticipate,” “outlook,” “forecast,” “could,” “project,” “intend,” “plan,” “continue,” “believe,” “seek,” “estimate,” “should,” “may,” “assume,” “potential,” variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are based on currently available information and include, among others, the discussion under “Outlook.” These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Respective risks, uncertainties, and assumptions that could affect the outcome or results of operations are described in Part 1, Item 1A of our Annual Report on Form 10-K for the year ended June 30, 2012, and the Form 10-Q for the quarters ended September 30, 2012 and December 31, 2012, which are incorporated by reference and in other reports that Molex files or furnishes with the Securities and Exchange Commission.

We have based our forward-looking statements on our management’s beliefs and assumptions based on information available to management at the time the statements are made. We caution you that actual outcomes and results may differ materially from what is expressed, implied, or forecasted by our forward-looking statements. Reference is made in particular to forward-looking statements regarding growth strategies, industry trends, global economic conditions, success of customers, cost of raw materials, value of inventory, foreign currency exchange rates, labor costs, protection of intellectual property, cost reduction initiatives, acquisition synergies, manufacturing strategies, product development introduction and sales, regulatory changes, competitive strengths, income tax fluctuations, natural disasters, unauthorized access to data, government investigations and outcomes of legal proceedings. Except as required under the federal securities laws, we do not have any intention or obligation to update publicly any forward-looking statements after the distribution of this report, whether as a result of new information, future events, changes in assumptions, or otherwise.

Molex Incorporated is a 74-year-old global manufacturer of electronic, electrical and fiber optic interconnection systems. Based in Lisle, Illinois, USA, the Company operates 41 manufacturing locations in 15 countries. The Molex website is www.molex.com.

# # #

Editor’s note: Molex is traded on the NASDAQ Global Select Market (MOLX and MOLXA) in the United States and on the London Stock Exchange. The Company’s voting common stock (MOLX) is included in the S&P 500 Index.

 

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Molex Incorporated

Condensed Consolidated Balance Sheets

(in thousands)

 

     Mar. 31,
2013
     June 30,
2012
 
     (Unaudited)         
ASSETS      

Current assets:

     

Cash and cash equivalents

   $ 702,786       $ 637,417   

Marketable securities

     10,145         14,830   

Accounts receivable, less allowances of $38,530 and $37,876, respectively

     657,447         751,279   

Inventories

     544,633         531,825   

Income taxes receivable

     18,628         —     

Deferred income taxes

     38,601         110,789   

Other current assets

     30,015         33,098   
  

 

 

    

 

 

 

Total current assets

     2,002,255         2,079,238   

Property, plant and equipment, net

     1,135,637         1,150,549   

Goodwill

     191,551         160,986   

Non-current deferred income taxes

     49,095         50,038   

Other assets

     183,288         170,692   
  

 

 

    

 

 

 

Total assets

   $ 3,561,826       $ 3,611,503   
  

 

 

    

 

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY      

Current liabilities:

     

Current portion of short-term borrowings and long-term debt

   $ 88,725       $ 104,933   

Accounts payable

     301,536         355,491   

Accrued expenses:

     

Accrued liability for unauthorized activities in Japan

     —           184,177   

Income taxes payable

     —           35,360   

Other

     225,592         212,035   
  

 

 

    

 

 

 

Total current liabilities

     615,853         891,996   

Other non-current liabilities

     17,381         18,174   

Accrued pension and other postretirement benefits

     92,020         115,176   

Long-term debt

     315,000         150,032   
  

 

 

    

 

 

 

Total liabilities

     1,040,254         1,175,378   
  

 

 

    

 

 

 

Commitments and contingencies

     

Total stockholders’ equity

     2,521,572         2,436,125   
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 3,561,826       $ 3,611,503   
  

 

 

    

 

 

 

 

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Molex Incorporated

Condensed Consolidated Statements of Income

(Unaudited)

(in thousands, except per share data)

 

     Three Months Ended
March 31,
    Nine Months Ended
March 31,
 
     2013     2012     2013     2012  

Net revenue

   $ 852,858      $ 837,080      $ 2,737,514      $ 2,630,663   

Cost of sales

     604,326        581,904        1,931,395        1,819,822   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     248,532        255,176        806,119        810,841   
  

 

 

   

 

 

   

 

 

   

 

 

 

Selling, general and administrative

     167,384        163,853        511,533        496,151   

Unauthorized activities in Japan

     21,210        2,521        25,398        8,166   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     188,594        166,374        536,931        504,317   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     59,938        88,802        269,188        306,524   

Interest (expense) income, net

     (1,582     (1,212     (3,525     (4,697

Other income (expense)

     265        1,561        (1,690     3,319   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other (expense) income, net

     (1,317     349        (5,215     (1,378
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     58,621        89,151        263,973        305,146   

Income taxes

     13,854        24,268        77,498        95,730   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 44,767      $ 64,883      $ 186,475      $ 209,416   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

        

Basic

   $ 0.25      $ 0.37      $ 1.05      $ 1.19   

Diluted

   $ 0.25      $ 0.36      $ 1.04      $ 1.18   

Dividends declared per share

   $ 0.2200      $ 0.2000      $ 0.6600      $ 0.6000   

Average common shares outstanding:

        

Basic

     177,527        176,164        177,102        175,830   

Diluted

     179,652        178,134        179,031        177,152   

 

 

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Molex Incorporated

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

 

     Nine Months Ended
March 31,
 
     2013     2012  

Operating activities:

    

Net income

   $ 186,475      $ 209,416   

Add non-cash items included in net income:

    

Depreciation and amortization

     176,445        179,664   

Share-based compensation

     22,045        17,248   

Other non-cash items

     1,356        8,914   

Changes in assets and liabilities:

    

Accounts receivable

     80,152        71,833   

Inventories

     (23,751     (20,896

Accounts payable

     (41,703     (38,382

Other current assets and liabilities

     21,633        (4,747

Unauthorized activities in Japan

     (165,813     —     

Other assets and liabilities

     (22,349     7,328   
  

 

 

   

 

 

 

Cash provided from operating activities

     234,490        430,378   

Investing activities:

    

Capital expenditures

     (203,985     (149,427

Acquisitions

     (55,299     (24,000

Proceeds from sales of property, plant and equipment

     15,189        3,373   

Proceeds from sales or maturities of marketable securities

     12,722        8,348   

Purchases of marketable securities

     (7,959     (8,881

Insurance proceeds and other investing activities

     9,962        11,000   
  

 

 

   

 

 

 

Cash used for investing activities

     (229,370     (159,587

Financing activities:

    

Proceeds from revolving credit facility, short-term loans and debt

     441,401        75,000   

Payments on revolving credit facility, short-term loans and debt

     (277,434     (308,615

Net proceeds from issuance of long-term debt

     —          149,521   

Cash dividends paid

     (116,706     (105,375

Exercise of stock options

     9,894        6,867   

Other financing activities

     (3,233     (3,199
  

 

 

   

 

 

 

Cash provided by (used for) financing activities

     53,922        (185,801

Effect of exchange rate changes on cash

     6,327        (8,780
  

 

 

   

 

 

 

Net increase in cash and cash equivalents

     65,369        76,210   

Cash and cash equivalents, beginning of period

     637,417        532,599   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 702,786      $ 608,809   
  

 

 

   

 

 

 

 

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