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Exhibit 99.1

 

LOGO

CONTACT:

Steve Martens, VP Investor Relations

Molex Incorporated

630-527-4344

For Immediate Release

MOLEX REPORTS FOURTH QUARTER AND FULL FISCAL YEAR RESULTS

Lisle, Illinois – August 7, 2013 — Molex Incorporated (NASDAQ: MOLX and MOLXA), a global electronic components company, today reported results for its fourth quarter and full fiscal year ended June 30, 2013.

Fourth Quarter Results

 

     Three Months Ended  
     Jun 30,      Mar 31,      Jun 30,  
USD millions, except per share data    2013      2013      2012  

Net revenue

   $ 882.9       $ 852.9       $ 858.5   

Net income

     57.1         44.8         72.0   

Earnings per share

     0.32         0.25         0.40   

Net revenue for the June 2013 quarter was $882.9 million, an increase of 3.5% from the March 2013 quarter and an increase of 2.8% from the June 2012 quarter. In local currencies, net revenue increased 5.1% compared with the March 2013 quarter and 4.7% compared with the June 2012 quarter. Orders for the June 2013 quarter were $880.0 million, a decrease of 3.2% and 2.3% from the March 2013 quarter and the June 2012 quarter, respectively.

Net income for the June 2013 quarter was $57.1 million or $0.32 per share, compared with $44.8 million, or $0.25 per share, for the March 2013 quarter and $72.0 million, or $0.40 per share, for the June 2012 quarter. Net income for the June 2013 quarter was impacted by additional tax expense of $1.7 million ($0.01 per share) reflecting a reduction in the future tax benefit of deferred tax assets in Korea due to a tax incentive granted to one of our plants. Net income for the March 2013 and June 2012 quarters also was impacted by costs related to unauthorized activities in Japan as outlined below.

“Revenue in all end markets grew sequentially, except for the mobile devices market which remained weak throughout the quarter. We expect tablet and mobile phone production to increase during the September quarter as our customers roll-out new products in time for the holidays,” stated Martin P. Slark, Chief Executive Officer. “We are also encouraged by an improving order rate in most end markets, signaling better growth in the second half of the year.”

 

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Other financial highlights for the quarter ended June 30, 2013:

 

   

Gross profit margin was 29.1%, compared with 29.1% in the March 2013 quarter and 30.0% in the June 2012 quarter.

 

   

SG&A expense was $174.0 million, compared with $167.4 million in the March 2013 quarter and $161.6 million in the June 2012 quarter.

 

   

Backlog was $452.8 million, a decrease of 2.2% from the March 2013 quarter and an increase of 8.8% from the June 2012 quarter.

 

   

The book-to-bill ratio for the June quarter was 1 to 1 compared with 1.07 to 1 for the March 2013 quarter and 1.05 to 1 for the June 2012 quarter.

 

   

Capital expenditures were $58.9 million or 6.7% of revenue.

 

   

Inventory days outstanding was 84 days compared with 89 days in the March 2013 quarter and 87 days in the June 2012 quarter.

 

   

Accounts receivable days outstanding was 69 days compared with 70 days in the March 2013 quarter and 70 days in the June 2012 quarter.

 

   

The effective tax rate was 32.4%. Excluding the one-time expense previously mentioned, the effective tax rate was 30.4%.

Outlook

Based upon current order rates and customer backlog, the Company estimates net revenue in the range of $890 to $930 million for the September 2013 quarter. At this level of net revenue, the Company expects earnings per share in the range of $0.35 to $0.39, assuming constant foreign currency rates, unchanged commodity prices and an effective tax rate in the range of 30% to 32%.

Full Fiscal Year Results

 

     Twelve Months Ended  
     Jun 30,      Jun 30,  
USD millions, except per share data    2013      2012  

Net revenue

   $ 3,620.4       $ 3,489.2   

Net income

     243.6         281.4   

Earnings per share

     1.36         1.59   

Net revenue for the full fiscal year ended June 30, 2013 was $3.6 billion, a 3.8% increase from the prior fiscal year. Net revenue in local currencies increased 5.4% from the prior fiscal year. Net income for the year ended June 30, 2013 was $243.6 million or $1.36 per share, compared with net income of $281.4 million or $1.59 per share in the prior fiscal year. These periods also include costs related to unauthorized activities in Japan as outlined below. The effective tax rate for the fiscal year ended June 30, 2013 was 30.1%.

“Revenue for fiscal 2013 increased 3.8% despite a difficult economic environment, due to our diverse end-market and customer exposure, technology leadership and global reach,” commented Martin P. Slark. “Going forward, we expect these attributes to drive above market growth and earnings expansion. Cash flow was also very strong for the year, which allowed us to increase our dividend again.”

 

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Japan Litigation Settlement

As previously announced on February 15, 2013, Molex and Mizuho Bank settled litigation regarding previously reported unauthorized loans. Net income in the March 2013 quarter was impacted by a pretax charge of $21.2 million ($13.5 million after-tax, or $0.08 per share) largely for interest expense and legal fees. Net income for the June 2012 quarter was impacted by a pretax charge of $3.1 million ($2.0 million after-tax, or $0.01 per share) largely for legal fees. For the full years ended June 30, 2013 and 2012, net income was impacted by pretax charges of $25.4 million ($16.2 million after-tax, or $0.09 per share) and $11.3 million ($7.2 million after-tax, or $0.04 per share), respectively.

Earnings Conference Call Information

A conference call will be held on Wednesday, August 7, 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 89187280. 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 24614663.

Other Investor Events

September 4, 2013 / 2013 Citi Global Technology Conference in New York

September 10, 2013 / Deutsche Bank’s dbAccess Technology Conference in Las Vegas

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, December 31, 2012 and March 31, 2013, 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 forecast 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, 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, 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.

 

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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.

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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)

 

     June  30,
2013
     June  30,
2012
 
     (Unaudited)         
ASSETS   

Current assets:

     

Cash and cash equivalents

   $ 711,561       $ 637,417   

Marketable securities

     10,378         14,830   

Accounts receivable, less allowances of $40,855 and $37,876, respectively

     703,434         751,279   

Inventories

     531,810         531,825   

Deferred income taxes

     54,163         110,789   

Other current assets

     32,538         33,098   
  

 

 

    

 

 

 

Total current assets

     2,043,884         2,079,238   

Property, plant and equipment, net

     1,114,092         1,150,549   

Goodwill

     191,053         160,986   

Non-current deferred income taxes

     52,543         50,038   

Other assets

     185,282         170,692   
  

 

 

    

 

 

 

Total assets

   $ 3,586,854       $ 3,611,503   
  

 

 

    

 

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY   

Current liabilities:

     

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

   $ 54,283       $ 104,933   

Accounts payable

     347,700         355,491   

Accrued expenses:

     

Salaries, commissions and bonuses

     113,433         89,404   

Accrued liability for unauthorized activities in Japan

     —           184,177   

Other

     127,652         122,631   

Income taxes payable

     15,966         35,360   
  

 

 

    

 

 

 

Total current liabilities

     659,034         891,996   

Other non-current liabilities

     18,382         18,174   

Accrued pension and other postretirement benefits

     76,275         115,176   

Long-term debt

     310,000         150,032   
  

 

 

    

 

 

 

Total liabilities

     1,063,691         1,175,378   
  

 

 

    

 

 

 

Commitments and contingencies

     

Total stockholders’ equity

     2,523,163         2,436,125   
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 3,586,854       $ 3,611,503   
  

 

 

    

 

 

 

 

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Molex Incorporated

Condensed Consolidated Statements of Income

(Unaudited)

(in thousands, except per share data)

 

     Three Months Ended
June 30,
    Years Ended
June 30,
 
     2013     2012     2013     2012  

Net revenue

   $ 882,933      $ 858,526      $ 3,620,447      $ 3,489,189   

Cost of sales

     625,938        600,904        2,557,333        2,420,726   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     256,995        257,622        1,063,114        1,068,463   
  

 

 

   

 

 

   

 

 

   

 

 

 

Selling, general and administrative

     174,049        161,581        685,582        657,732   

Unauthorized activities in Japan

     —          3,093        25,398        11,259   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     174,049        164,674        710,980        668,991   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     82,946        92,948        352,134        399,472   

Interest expense, net

     (1,035     (663     (4,560     (5,360

Other income, net

     2,591        2,836        901        6,155   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expense), net

     1,556        2,173        (3,659     795   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     84,502        95,121        348,475        400,267   

Income taxes

     27,354        23,160        104,852        118,890   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 57,148      $ 71,961      $ 243,623      $ 281,377   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

        

Basic

   $ 0.32      $ 0.41      $ 1.37      $ 1.60   

Diluted

   $ 0.32      $ 0.40      $ 1.36      $ 1.59   

Dividends declared per share

   $ 0.24      $ 0.22      $ 0.90      $ 0.82   

Average common shares outstanding:

        

Basic

     177,852        176,437        177,290        175,980   

Diluted

     180,262        178,231        179,328        177,382   

 

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Molex Incorporated

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

 

     Years Ended
June 30,
 
     2013     2012  

Operating activities:

    

Net income

   $ 243,623      $ 281,377   

Add (deduct) non-cash items included in net income:

    

Depreciation and amortization

     234,885        236,974   

Deferred income taxes

     40,818        10,236   

(Gain) loss on sale of property, plant and equipment

     (5,292     2,580   

Share-based compensation

     29,237        23,335   

Other non-cash items

     (10,342     (20,561

Changes in assets and liabilities:

    

Accounts receivable

     23,690        44,161   

Inventories

     (10,874     (5,338

Accounts payable

     9,684        312   

Other current assets and liabilities

     6,305        (10,246

Unauthorized activities in Japan

     (165,813     —     

Other assets and liabilities

     (13,369     10,889   
  

 

 

   

 

 

 

Cash provided from operating activities

     382,552        573,719   
  

 

 

   

 

 

 

Investing activities:

    

Capital expenditures

     (262,933     (227,101

Acquisitions

     (55,299     (24,000

Proceeds from sales of property, plant and equipment

     15,358        3,444   

Proceeds from sales or maturities of marketable securities

     12,727        12,496   

Purchase of marketable securities

     (8,713     (14,934

Insurance proceeds and other investing activities

     11,694        22,400   
  

 

 

   

 

 

 

Cash used for investing activities

     (287,166     (227,695

Financing activities:

    

Proceeds from revolving credit facility

     247,000        75,000   

Payments on revolving credit facility

     (87,000     (260,000

Proceeds from short-term loans and current portion of long-term debt

     232,312        —     

Payments on short-term loans and current portion of long-term debt

     (271,163     (53,748

Proceeds from issuance of (payments on) long-term debt

     —          149,425   

Cash dividends paid

     (155,791     (140,638

Exercise of stock options

     14,482        7,873   

Other financing activities

     (4,332     (4,194
  

 

 

   

 

 

 

Cash used for financing activities

     (24,492     (226,282

Effect of exchange rate changes on cash

     3,250        (14,924
  

 

 

   

 

 

 

Net increase in cash and cash equivalents

     74,144        104,818   

Cash and cash equivalents, beginning of year

     637,417        532,599   
  

 

 

   

 

 

 

Cash and cash equivalents, end of year

   $ 711,561      $ 637,417   
  

 

 

   

 

 

 

 

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