Attached files
| file | filename |
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| 8-K - 8-K - AMPHENOL CORP /DE/ | a10-19640_18k.htm |
EXHIBIT 99.1
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Amphenol |
|
News Release |
World Headquarters
358 Hall Avenue
P. O. Box 5030
Wallingford, CT 06492-7530
Telephone (203) 265-8900
FOR IMMEDIATE RELEASE
|
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For Further Information: |
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Diana G. Reardon |
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Senior Vice President and |
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Chief Financial Officer |
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203/265-8630 |
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www.amphenol.com |
RECORD 2010 THIRD QUARTER RESULTS
REPORTED BY AMPHENOL CORPORATION
Wallingford, Connecticut, October 20, 2010. Amphenol Corporation (NYSE-APH) reported today third quarter 2010 diluted earnings per share of $.78 compared to $.47 per share for the comparable 2009 period. Such per share amount for the 2010 quarter includes an $8 million, or $.05 per share, net benefit relating to a reduction in tax expense due primarily to the favorable settlement of certain international tax positions and the completion of prior year audits. Excluding this effect, diluted earnings per share was $.73. Sales for the third quarter 2010 were $948.5 million compared to $716.6 million for the 2009 period. Currency translation had the effect of decreasing sales by approximately 1% or $7 million in the third quarter 2010 compared to the 2009 period.
For the nine months ended September 30, 2010, diluted earnings per share was $2.08 compared to $1.33 for the 2009 period. Sales for the nine months ended September 30, 2010 were $2,604.2 million compared to $2,061.8 million for the 2009 period. Currency translation had the effect of increasing sales by approximately $5 million for the nine month 2010 period compared to the 2009 period.
Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated “Amphenol achieved another record performance in the third quarter, with sales of $948 million and EPS of $.73 net of tax items. Sales and EPS grew 32% and 55% over last year as the Company continued to build upon its position in its target markets. Our strategy of market and geographic diversification, combined with a deep commitment to develop performance enhancing technologies for our customers, enabled the Company to capitalize on the favorable market environment and drive strong demand in all of our end markets led by: Industrial, Information Technology and Data Communications Equipment, Wireless Devices, Military/Aerospace and Wireless Infrastructure. In addition, in an environment of increasing global inflationary pressures, our management team continued to proactively and dynamically manage costs creating excellent operating leverage and
expanding operating margins by 2.6% to 19.9% in Q3 2010 from 17.3% last year, contributing to a 55% year over year increase in earnings per share, net of tax items. Further, cash flow from operations in the quarter was a strong $128 million, demonstrating the ongoing quality of the Company’s earnings.”
“The record performance we achieved in the third quarter is a direct result of the implementation of our strategies by our worldwide organization, which continues to execute well in all economic environments. While global demand has significantly increased in the last several quarters, there remains a degree of uncertainty in the worldwide economy. Therefore, on the basis of the current economic climate and assuming constant currency exchange rates, we expect Q4 2010 revenues in the range of $933 million to $948 million and EPS in the range of $.71 to $.73.”
“Looking forward, regardless of any near-term economic uncertainties, the accelerating proliferation of new electronics in all of our end markets presents a unique expansion opportunity for Amphenol. Our significant actions to enhance our competitive advantages and build sustained financial strength have created an even stronger base for Amphenol’s future performance. I am confident in the ability of our outstanding organization to dynamically adjust to the continued changing market environment, to generate strong profitability and to 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 (ET) October 20, 2010. 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 11:00 P.M. (ET) on Friday, October 22, 2010. The replay numbers are as follows: toll free dial-in number is 800-391-9845 and International dial-in number is 203-369-3267; 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 Communication, Industrial, Information Technology and Data Communications Equipment, Mobile 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, 2009, 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)
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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||||||||
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2010 |
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2009 |
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2010 |
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2009 |
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Net Sales |
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$ |
948,463 |
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$ |
716,573 |
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$ |
2,604,215 |
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$ |
2,061,769 |
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|
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||||
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Cost of sales |
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638,746 |
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492,180 |
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1,756,007 |
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1,416,847 |
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Gross profit |
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309,717 |
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224,393 |
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848,208 |
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644,922 |
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Selling, general and administrative expense |
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120,583 |
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100,103 |
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338,405 |
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294,469 |
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Operating income |
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189,134 |
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124,290 |
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509,803 |
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350,453 |
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Interest expense |
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(10,568 |
) |
(8,961 |
) |
(30,549 |
) |
(27,090 |
) |
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Other income (expenses), net |
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1,251 |
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(345 |
) |
2,474 |
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(942 |
) |
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Income before income taxes |
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179,817 |
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114,984 |
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481,728 |
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322,421 |
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Provision for income taxes |
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(41,018 |
) |
(31,620 |
) |
(111,782 |
) |
(85,182 |
) |
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Net income |
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138,799 |
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83,364 |
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369,946 |
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237,239 |
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Less: Net income attributable to noncontrolling interests |
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(1,531 |
) |
(2,449 |
) |
(4,654 |
) |
(7,044 |
) |
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Net income attributable to Amphenol Corporation |
|
$ |
137,268 |
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$ |
80,915 |
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$ |
365,292 |
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$ |
230,195 |
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Net income per common share - Basic |
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$ |
0.79 |
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$ |
0.47 |
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$ |
2.11 |
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$ |
1.34 |
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Weighted average common shares outstanding - Basic |
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173,813,753 |
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171,428,237 |
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173,535,255 |
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171,311,072 |
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Net income per common share - Diluted |
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$ |
0.78 |
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$ |
0.47 |
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$ |
2.08 |
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$ |
1.33 |
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Weighted average common shares outstanding - Diluted |
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176,224,749 |
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173,928,589 |
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175,897,452 |
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173,561,964 |
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Dividends declared per common share |
|
$ |
0.015 |
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$ |
0.015 |
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$ |
0.045 |
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$ |
0.045 |
|
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(dollars in thousands)
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September 30, |
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December 31, |
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2010 |
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2009 |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
|
$ |
480,528 |
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$ |
384,613 |
|
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Short-term investments |
|
107,245 |
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37,770 |
|
||
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Total cash, cash equivalents and short-term investments |
|
587,773 |
|
422,383 |
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Accounts receivable, less allowance for doubtful accounts of $17,027 and $18,785, respectively |
|
727,458 |
(1) |
449,591 |
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Inventories |
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539,728 |
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461,750 |
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Other current assets |
|
102,717 |
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86,671 |
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||
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|
|
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Total current assets |
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1,957,676 |
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1,420,395 |
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||
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Land and depreciable assets, less accumulated depreciation of $599,515 and $575,187, respectively |
|
352,318 |
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332,875 |
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Goodwill |
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1,527,824 |
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1,368,672 |
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Other long-term assets |
|
130,953 |
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97,242 |
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||
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|
|
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|
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||
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$ |
3,968,771 |
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$ |
3,219,184 |
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LIABILITIES & SHAREHOLDERS’ EQUITY |
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Current Liabilities: |
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Accounts payable |
|
$ |
395,999 |
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$ |
292,122 |
|
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Accrued salaries, wages and employee benefits |
|
76,119 |
|
64,143 |
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||
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Accrued income taxes |
|
66,101 |
|
57,272 |
|
||
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Accrued acquisition-related obligations |
|
54,460 |
|
7,244 |
|
||
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Other accrued expenses |
|
94,085 |
|
81,979 |
|
||
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Short-term debt |
|
385 |
|
399 |
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|
|
|
|
|
|
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Total current liabilities |
|
687,149 |
|
503,159 |
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|
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Long-term debt |
|
904,031 |
(1) |
753,050 |
|
||
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Accrued pension and post employment benefit obligations |
|
164,316 |
|
172,235 |
|
||
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Other long-term liabilities |
|
43,112 |
|
27,922 |
|
||
|
|
|
|
|
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|
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Shareholders’ Equity: |
|
|
|
|
|
||
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Common stock |
|
175 |
|
174 |
|
||
|
Additional paid-in capital |
|
99,979 |
|
71,368 |
|
||
|
Accumulated earnings |
|
2,132,101 |
|
1,774,625 |
|
||
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Accumulated other comprehensive loss |
|
(86,296 |
) |
(100,090 |
) |
||
|
|
|
|
|
|
|
||
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Total shareholders’ equity attributable to Amphenol Corporation |
|
2,145,959 |
|
1,746,077 |
|
||
|
|
|
|
|
|
|
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Noncontrolling interests |
|
24,204 |
|
16,741 |
|
||
|
|
|
|
|
|
|
||
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Total equity |
|
2,170,163 |
|
1,762,818 |
|
||
|
|
|
|
|
|
|
||
|
|
|
$ |
3,968,771 |
|
$ |
3,219,184 |
|
|
NOTE 1 |
The Company has a $100 million receivables securitization program that expires in May 2013. In accordance with previous accounting guidance, this facility was accounted for off balance sheet as a sale of receivables. Effective January 1, 2010, the Company adopted the amendments to the Transfers and Servicing and Consolidation Topics of the Accounting Standards Codification. The adoption of these amendments has resulted in the Company reporting transactions under this facility as long-term debt and the related receivables remain on the balance sheet. At September 30, 2010, borrowings under the securitization facility were $84 million. At December 31, 2009, $82 million in receivables were sold under the Facility and excluded from the Condensed Consolidated Balance Sheets. |
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
(dollars in thousands)
|
|
|
Nine months ended |
|
||||
|
|
|
September 30, |
|
||||
|
|
|
2010 |
|
2009 |
|
||
|
|
|
|
|
|
|
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Cash flow from operating activities: |
|
|
|
|
|
||
|
Net income |
|
$ |
369,946 |
|
$ |
237,239 |
|
|
Adjustments for cash flow from operating activities: |
|
|
|
|
|
||
|
Depreciation and amortization |
|
76,000 |
|
72,923 |
|
||
|
Net change in receivables sold under Receivables Securitization Facility |
|
(82,000 |
)(1) |
(9,000 |
) |
||
|
Stock-based compensation expense |
|
18,580 |
|
15,259 |
|
||
|
Net change in components of working capital |
|
(113,548 |
) |
108,879 |
|
||
|
Net change in other long-term assets and liabilities |
|
(4,767 |
) |
5,283 |
|
||
|
|
|
|
|
|
|
||
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Cash flow provided by operating activities |
|
264,211 |
|
430,583 |
|
||
|
|
|
|
|
|
|
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Cash flow from investing activities: |
|
|
|
|
|
||
|
Additions to property, plant and equipment |
|
(72,328 |
) |
(45,607 |
) |
||
|
Purchase of short term investments |
|
(69,120 |
) |
(14,114 |
) |
||
|
Acquisitions, net of cash acquired |
|
(164,921 |
) |
(272,693 |
) |
||
|
|
|
|
|
|
|
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Cash flow used in investing activities |
|
(306,369 |
) |
(332,414 |
) |
||
|
|
|
|
|
|
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Cash flow from financing activities: |
|
|
|
|
|
||
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Long-term borrowings under credit facilities |
|
618,192 |
(1) |
522,900 |
|
||
|
Repayments of long-term debt |
|
(468,406 |
) |
(516,849 |
) |
||
|
Proceeds from exercise of stock options |
|
21,271 |
|
4,499 |
|
||
|
Excess tax benefits from stock-based payment arrangements |
|
3,650 |
|
867 |
|
||
|
Payments of fees and expenses related to Revolving Credit Facility refinancing |
|
(6,934 |
) |
— |
|
||
|
Payments to shareholders of noncontrolling interests |
|
(22,588 |
) |
(5,281 |
) |
||
|
Dividend payments |
|
(7,801 |
) |
(7,706 |
) |
||
|
|
|
|
|
|
|
||
|
Cash flow provided by (used in) financing activities |
|
137,384 |
|
(1,570 |
) |
||
|
|
|
|
|
|
|
||
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Effect of exchange rate changes on cash and cash equivalents |
|
689 |
|
(4,017 |
) |
||
|
|
|
|
|
|
|
||
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Net change in cash and cash equivalents |
|
95,915 |
|
92,582 |
|
||
|
|
|
|
|
|
|
||
|
Cash and cash equivalents balance, beginning of period |
|
384,613 |
|
214,987 |
|
||
|
|
|
|
|
|
|
||
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Cash and cash equivalents balance, end of period |
|
$ |
480,528 |
|
$ |
307,569 |
|
|
NOTE 1 |
The Company has a $100 million receivables securitization program. In accordance with previous accounting guidance, this facility was accounted for off balance sheet as a sale of receivables. Effective January 1, 2010, the Company adopted the amendments to the Transfers and Servicing and Consolidation Topics of the Accounting Standards Codification. As a result of the adoption transfers of receivables occurring on or after January 1, 2010 are reflected as debt issued in the Company’s Condensed Consolidated Statements of Cash Flow. Excluding the impact of adoption, long-term borrowings under credit facilities would be $536,192 resulting in cash flows provided in financing activities of $55,384 and cash flows provided by operating activities of $346,211. |
AMPHENOL CORPORATION
SEGMENT INFORMATION
(dollars in thousands)
(Unaudited)
|
|
|
Three months ended |
|
Nine months ended |
|
||||||||
|
|
|
September 30, |
|
September 30, |
|
||||||||
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|
|
2010 |
|
2009 |
|
2010 |
|
2009 |
|
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|
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Trade Sales: |
|
|
|
|
|
|
|
|
|
||||
|
Interconnect Products |
|
$ |
881,340 |
|
$ |
648,053 |
|
$ |
2,402,084 |
|
$ |
1,871,451 |
|
|
Cable Products |
|
67,123 |
|
68,520 |
|
202,131 |
|
190,318 |
|
||||
|
Consolidated |
|
$ |
948,463 |
|
$ |
716,573 |
|
$ |
2,604,215 |
|
$ |
2,061,769 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Operating income: |
|
|
|
|
|
|
|
|
|
||||
|
Interconnect Products |
|
$ |
196,107 |
|
$ |
126,720 |
|
$ |
526,589 |
|
$ |
362,906 |
|
|
Cable Products |
|
9,077 |
|
11,058 |
|
28,240 |
|
28,953 |
|
||||
|
Stock-based compensation expense |
|
(6,965 |
) |
(5,231 |
) |
(18,580 |
) |
(15,260 |
) |
||||
|
Other operating expenses |
|
(9,085 |
) |
(8,257 |
) |
(26,446 |
) |
(26,146 |
) |
||||
|
Consolidated |
|
$ |
189,134 |
|
$ |
124,290 |
|
$ |
509,803 |
|
$ |
350,453 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
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ROS%: |
|
|
|
|
|
|
|
|
|
||||
|
Interconnect Products |
|
22.3 |
% |
19.6 |
% |
21.9 |
% |
19.4 |
% |
||||
|
Cable Products |
|
13.5 |
% |
16.1 |
% |
14.0 |
% |
15.2 |
% |
||||
|
Corporate - stock-based compensation |
|
-0.7 |
% |
-0.7 |
% |
-0.7 |
% |
-0.7 |
% |
||||
|
Corporate - all other |
|
-1.0 |
% |
-1.2 |
% |
-1.0 |
% |
-1.3 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Consolidated |
|
19.9 |
% |
17.3 |
% |
19.6 |
% |
17.0 |
% |
||||