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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

 

 THIRD QUARTER 2013 RECORD RESULTS

REPORTED BY AMPHENOL CORPORATION

 

Wallingford, Connecticut. October 17, 2013.  Amphenol Corporation (NYSE-APH) reported today third quarter 2013 record diluted earnings per share excluding one-time items of $.98 compared to diluted earnings per share of $.90 for the comparable 2012 period. On an as reported basis, diluted earnings per share was $.99. Such per share amount for the 2013 quarter includes a charge for acquisition-related transaction costs of $2.5 million ($2.1 million after tax), or $.01 per share, as well as a benefit of $3.6 million, or $.02 per share, relating to a reduction in tax expense due primarily to the completion of prior year audits.  Sales for the third quarter 2013 were a record $1.153 billion compared to $1.103 billion for the 2012 period. Currency translation had the effect of increasing sales by approximately $7.9 million in the third quarter 2013 compared to the 2012 period.

 

For the nine months ended September 30, 2013, diluted earnings per share was $2.88 on an as reported basis and $2.80 excluding one-time items, compared to $2.53 for the comparable 2012 period. The 2013 period includes one-time items totaling $.08, including the $.01 net benefit in the third quarter described above and a $.07 one-time tax benefit recorded in the first quarter.  The income tax benefit in the first quarter related primarily to the delay by the U. S. government in the reinstatement of certain federal income tax provisions for the year 2012 relating primarily to research and development credits and certain U.S. taxes on foreign income.  Such tax provisions were reinstated on January 2, 2013 with retroactive effect to 2012.  Under U.S. GAAP, the related benefit to the Company of $11 million, or $.07 per share, relating to the 2012 tax year was recorded as a one-time benefit in the first quarter of 2013 at the date of reinstatement. Sales for the nine months ended September 30, 2013 were $3.369 billion compared to $3.146 billion for the 2012 period.  Currency translation had the effect of increasing sales by approximately $7.9 million for the nine month 2013 period compared to the 2012 period.

 

Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated “We are pleased to report record third quarter sales of $1.153 billion and EPS, excluding one-time items, of $.98, up 5% and 9% over the comparable 2012 quarter.  The sales growth over last year was driven by both organic and acquisition-related growth in the commercial aerospace, automotive, broadband, industrial and information technology and data communications markets, which was partially offset by a decrease in sales to the mobile device market. For the nine months of 2013, sales were up 7% over last year with good contributions from most of our served markets.  Our strong growth is further confirmation of the significant

 



 

benefits of the Company’s technology leadership and diversification.  In addition, it is extremely rewarding that the Company’s unique entrepreneurial culture continues to drive an unwavering focus on profitability, resulting in an operating margin improvement of 20 basis points over the prior year quarter to 19.7%, before one-time items, driving strong 9% EPS growth and record EPS, before one-time items, of $.98 in the quarter.  These results are a direct result of our management team’s ability to react quickly in a dynamic environment, especially given the continuing high levels of uncertainty in most of the world’s economies.  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 that strategy, in October, the Company completed the acquisition of Ionix Aerospace Ltd, a U.K.-based high technology cable assembly company focused primarily on the commercial aerospace market with annual sales of approximately $35 million.  This acquisition expands the Company’s presence in a very important and growing technology area. In addition to our successful acquisition program, the Company continues to deploy its financial strength in a variety of ways to increase shareholder value, including, in this quarter, the purchase of 1.5 million shares of the Company’s stock pursuant to our stock repurchase plan.”

 

“There remains a great deal of volatility in the global economy and, in particular, growing levels of uncertainty driven by increasing political and fiscal constraints both in the U.S. and abroad.  Accordingly, and assuming current currency exchange rates, we expect fourth quarter 2013 revenues in the range of $1.146 billion to $1.171 billion and diluted EPS in the range of $.96 to $.99.  For the year 2013, we now expect to achieve revenues and diluted EPS in the range of $4.515 billion to $4.540 billion and $3.76 to $3.79 (excluding one-time items), respectively, an increase of 5% to 6% over 2012 revenues and 8% to 9% over 2012 diluted EPS (excluding one-time items). This compares to prior full year 2013 guidance for revenues and diluted EPS in the range of $4.490 billion to $4.540 billion and $3.73 to $3.79 (excluding one-time items), respectively.  Despite the many uncertainties in the global economy, we believe we can perform well in the dynamic electronics marketplace 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 the 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 third quarter results at 1:00 PM (EST) October 17, 2013.  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 Monday, November 18, 2013.  The replay numbers are toll free 866-424-4007; International toll number is 203-369-0856; Passcode: 7183.

 

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 largest designers, manufacturers and marketers of electrical, electronic and fiber optic connectors, interconnect systems, antennas and coaxial and high-speed specialty cable.  Amphenol designs, manufactures and assembles its products at facilities in the Americas, Europe, Asia, Australia and Africa and sells its products through its own global sales force, independent representatives and a global network of electronics distributors.  Amphenol has a diversified presence as a leader in high growth areas of the interconnect market including:  Automotive,

 



 

Broadband Communications, Commercial Aerospace, Industrial, Information Technology and Data Communications, Military, Mobile Devices and Mobile Networks.

 

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, 2012, 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

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,153,062

 

$

1,103,376

 

$

3,368,934

 

$

3,146,087

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

789,214

 

759,047

 

2,307,406

 

2,158,326

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

363,848

 

344,329

 

1,061,528

 

987,761

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

 

2,537

 

 

2,537

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense

 

136,828

 

128,659

 

403,538

 

380,636

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

224,483

 

215,670

 

655,453

 

607,125

 

 

 

.

 

 

 

 

 

 

 

Interest expense

 

(16,048

)

(15,166

)

(47,126

)

(44,014

)

Other income, net

 

3,625

 

2,636

 

9,443

 

7,457

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

212,060

 

203,140

 

617,770

 

570,568

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

(50,671

)

(54,340

)

(147,900

)

(152,627

)

 

 

 

 

 

 

 

 

 

 

Net income

 

161,389

 

148,800

 

469,870

 

417,941

 

Less: Net income attributable to noncontrolling interests

 

(591

)

(1,350

)

(2,077

)

(2,986

)

 

 

 

 

 

 

 

 

 

 

Net income attributable to Amphenol Corporation

 

$

160,798

 

$

147,450

 

$

467,793

 

$

414,955

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Basic

 

$

1.01

 

$

0.91

 

$

2.94

 

$

2.56

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Basic

 

158,665,520

 

161,349,493

 

159,365,640

 

161,905,598

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Diluted (1)

 

$

0.99

 

$

0.90

 

$

2.88

 

$

2.53

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Diluted

 

161,792,786

 

163,780,171

 

162,477,034

 

164,333,598

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.200

 

$

0.105

 

$

0.410

 

$

0.315

 

 

Note 1            Earnings per share in the three months and nine months ended September 30, 2013 included acquisition-related expenses of $2.5 million, $2.1 million after-tax or $.01 per share, relating to 2013 acquisitions and a $3.6 million, or $.02 per share, income tax benefit due primarily to the favorable completion of prior year audits.  Earnings per share in the nine months ended September 30, 2013 also included an income tax benefit of $11.3 million, or $.07 per share, resulting from the delay, by the U.S. government, in the reinstatement of certain federal income tax provisions for the year 2012 relating primarily to research and development credits and certain U.S. taxes on foreign income.  Such tax provisions were reinstated on January 2, 2013 with retroactive effect to 2012.  Under U.S. GAAP, the related benefit to the Company of $11.3 million, or $.07 per share, relating to the 2012 tax year was recorded as a one-time benefit in the first quarter of 2013 at the date of reinstatement. Excluding these effects, diluted earnings per share was $0.98 for the three months ended September 30, 2013 and $2.80 for the nine months ended September 30, 2013.

 



 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(dollars in thousands)

 

 

 

September 30,

 

December 31,

 

 

 

2013

 

2012

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

889,366

 

$

690,850

 

Short-term investments

 

394,215

 

251,653

 

Total cash, cash equivalents and short-term investments

 

1,283,581

 

942,503

 

Accounts receivable, less allowance for doubtful accounts of $12,092 and $10,372, respectively

 

926,194

 

910,711

 

Inventories

 

732,724

 

733,718

 

Other current assets

 

135,036

 

119,983

 

 

 

 

 

 

 

Total current assets

 

3,077,535

 

2,706,915

 

 

 

 

 

 

 

Land and depreciable assets, less accumulated depreciation of $781,904 and $715,895, respectively

 

441,799

 

417,436

 

Goodwill

 

1,972,428

 

1,932,740

 

Other long-term assets

 

148,919

 

158,372

 

 

 

 

 

 

 

 

 

$

5,640,681

 

$

5,215,463

 

 

 

 

 

 

 

LIABILITIES & EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

481,022

 

$

496,525

 

Accrued salaries, wages and employee benefits

 

90,289

 

89,142

 

Accrued income taxes

 

83,023

 

94,341

 

Accrued dividends

 

31,631

 

 

Other accrued expenses

 

122,249

 

108,213

 

Short-term debt

 

84,987

 

100,293

 

 

 

 

 

 

 

Total current liabilities

 

893,201

 

888,514

 

 

 

 

 

 

 

Long-term debt

 

1,784,539

 

1,606,204

 

Accrued pension and post employment benefit obligations

 

250,701

 

244,571

 

Other long-term liabilities

 

45,720

 

33,992

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

Common stock

 

158

 

160

 

Additional paid-in capital

 

461,936

 

336,683

 

Accumulated earnings

 

2,315,841

 

2,210,120

 

Accumulated other comprehensive loss

 

(120,686

)

(117,004

)

 

 

 

 

 

 

Total shareholders’ equity attributable to Amphenol Corporation

 

2,657,249

 

2,429,959

 

 

 

 

 

 

 

Noncontrolling interests

 

9,271

 

12,223

 

 

 

 

 

 

 

Total equity

 

2,666,520

 

2,442,182

 

 

 

 

 

 

 

 

 

$

5,640,681

 

$

5,215,463

 

 



 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(Unaudited)

(dollars in thousands)

 

 

 

Nine months ended

 

 

 

September 30,

 

 

 

2013

 

2012

 

 

 

 

 

 

 

Cash flow from operating activities:

 

 

 

 

 

Net income

 

$

469,870

 

$

417,941

 

Adjustments for cash flow from operating activities:

 

 

 

 

 

Depreciation and amortization

 

101,531

 

89,339

 

Stock-based compensation expense

 

26,584

 

23,167

 

Excess tax benefits from stock-based compensation payment arrangements

 

(18,853

)

(17,805

)

Net change in components of working capital

 

(24,249

)

(44,789

)

Net change in other long-term assets and liabilities

 

2,841

 

(250

)

 

 

 

 

 

 

Cash flow provided by operating activities

 

557,724

 

467,603

 

 

 

 

 

 

 

Cash flow from investing activities:

 

 

 

 

 

Additions to property, plant and equipment

 

(105,740

)

(96,489

)

Proceeds from disposals of fixed assets

 

2,084

 

4,174

 

Purchases of short-term investments

 

(538,152

)

(220,330

)

Sales and maturities of short-term investments

 

395,590

 

186,833

 

Acquisitions, net of cash acquired

 

(44,036

)

(179,597

)

 

 

 

 

 

 

Cash flow used in investing activities

 

(290,254

)

(305,409

)

 

 

 

 

 

 

Cash flow from financing activities:

 

 

 

 

 

Issuance of senior notes

 

 

498,730

 

Borrowings under credit facilities

 

490,800

 

606,600

 

Repayments under credit facilities

 

(327,043

)

(876,960

)

Payment of fees and expenses related to debt financing

 

(2,710

)

(4,318

)

Proceeds from exercise of stock options

 

79,587

 

73,450

 

Excess tax benefits from stock-based compensation payment arrangements

 

18,853

 

17,805

 

Payments to shareholders of noncontrolling interests

 

(4,371

)

(4,713

)

Purchase and retirement of treasury stock

 

(296,975

)

(229,442

)

Dividend payments

 

(33,472

)

(36,385

)

 

 

 

 

 

 

Cash flow (used in) provided by financing activities

 

(75,331

)

44,767

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

6,377

 

3,499

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

198,516

 

210,460

 

Cash and cash equivalents balance, beginning of period

 

690,850

 

515,086

 

 

 

 

 

 

 

Cash and cash equivalents balance, end of period

 

$

889,366

 

$

725,546

 

 



 

AMPHENOL CORPORATION

SEGMENT INFORMATION

(dollars in thousands)

(Unaudited)

 

 

 

Three months ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

Trade Sales:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

1,063,179

 

$

1,033,309

 

$

3,104,856

 

$

2,926,834

 

Cable Products

 

89,883

 

70,067

 

264,078

 

219,253

 

Consolidated

 

$

1,153,062

 

$

1,103,376

 

$

3,368,934

 

$

3,146,087

 

 

 

 

 

 

 

 

 

 

 

Operating income, excluding one-time items:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

233,435

 

$

224,517

 

$

676,818

 

$

627,962

 

Cable Products

 

12,389

 

8,697

 

36,432

 

29,831

 

Stock-based compensation expense

 

(9,413

)

(8,066

)

(26,584

)

(23,167

)

Other operating expenses

 

(9,391

)

(9,478

)

(28,676

)

(27,501

)

Operating income, excluding one-time items

 

227,020

 

215,670

 

657,990

 

607,125

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

 

(2,537

)

 

(2,537

)

 

Consolidated

 

$

224,483

 

$

215,670

 

$

655,453

 

$

607,125

 

 

 

 

 

 

 

 

 

 

 

ROS%:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

22.0

%

21.7

%

21.8

%

21.5

%

Cable Products

 

13.8

%

12.4

%

13.8

%

13.6

%

Stock-based compensation expense

 

-0.8

%

-0.7

%

-0.8

%

-0.7

%

Other operating expenses

 

-0.8

%

-0.9

%

-0.9

%

-0.9

%

 

 

 

 

 

 

 

 

 

 

ROS, excluding one-time items

 

19.7

%

19.5

%

19.5

%

19.3

%

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

 

-0.2

%

0.0

%

0.0

%

0.0

%

Consolidated

 

19.5

%

19.5

%

19.5

%

19.3

%