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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 2011 RESULTS
REPORTED BY AMPHENOL CORPORATION

 

Wallingford, Connecticut. October 19, 2011. Amphenol Corporation (NYSE-APH) reported today third quarter 2011 diluted earnings per share of $.79 compared to $.78 per share for the comparable 2010 period. Such per share amount for the 2011 quarter includes the effect of a $13 million ($8 million after tax), or $.05 per share one-time charge relating to the previously announced flood damage at the Company’s Sidney, New York facility. In addition, the 2011 quarter and the 2010 quarter per share amounts include $4 million, or $.03 per share and $8 million, or $.05 per share, of net benefits 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 these effects, diluted earnings per share were a record $.81 for the quarter ended September 30, 2011 compared to $.73 for the 2010 period. Sales for the third quarter 2011 were a record $1.033 billion compared to $948 million for the 2010 period. Currency translation had the effect of increasing sales by approximately $23 million in the third quarter 2011 compared to the 2010 period.

 

For the nine months ended September 30th, diluted earnings per share were $2.36 and $2.08, on an as reported basis and $2.32 and $1.96 excluding one-time items for the 2011 and 2010 periods, respectively. One–time items in the 2011 period of $.04 include the $.02 net third quarter charge described above and a $.06 per share gain related to the adjustment of a contingent purchase price obligation for a 2010 acquisition. One-time items in the 2010 period of $.12 per share relate to the net tax benefit from a reduction in international tax expense due primarily to the favorable settlement of certain tax positions and the completion of prior year audits. Sales for the nine months ended September 30, 2011 were $2.991 billion compared to $2.604 billion for the 2010 period. Currency translation had the effect of increasing sales by approximately $58 million for the nine month 2011 period compared to the 2010 period.

 



 

As previously announced last month, the Company incurred damage at its Sidney, New York manufacturing facility as a result of severe and sudden flooding in New York State during the period September 7 through September 9, 2011. In the third quarter the Company has recorded a charge of $13 million or $.05 per share for property-related damage, as well as cleanup and repair efforts, net of expected insurance recoveries. This charge includes the Company’s best estimate of the loss related to inventory and machinery and equipment. In the fourth quarter, the Company expects to record an additional charge of approximately $7 million or $.03 per share for one-time expenses related to remaining cleanup and repair efforts. In addition, the Sidney facility had limited manufacturing and sales activity in September and is ramping up to full production levels during October. This reduced sales by approximately $11 million in the third quarter and is expected to reduce sales by approximately $7 million in the fourth quarter.

 

Amphenol President and Chief Executive Officer R. Adam Norwitt stated “The third quarter results established new records of performance for Amphenol with sales of $1.033 billion and EPS of $.81 (excluding one-time items). Sales growth of 9% over last year was driven primarily by strength in our Mobile Devices and Automotive markets. Demand in the Mobile Devices market was particularly strong, and we believe included some pulling forward by customers of deliveries previously planned for the fourth quarter. We are encouraged by the Company’s strong performance despite growing economic uncertainties, a confirmation of the strength of our leading technology, broad and increasing positions with our customers across all of our diverse markets, worldwide presence and lean cost structure. In addition, despite what continues to be an extremely challenging environment, our entrepreneurial management team executed well in the quarter, achieving industry-leading operating margins of 19.3%, net income margins of 13.4% (both excluding one-time items) and strong operating cash flow of $184 million.”

 

“Our ongoing strategy of market and geographic diversification combined with a steadfast 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 opportunities for growth. In addition, the Company continues to deploy its financial strength in a variety of ways to increase shareholder value including, in this quarter, the purchase of 3.8 million shares of the Company’s stock pursuant to our stock repurchase plan.”

 

“I am particularly proud of the efforts of our Sidney, New York team, whose heroic recovery efforts following the flood have allowed us to make significant strides in the resumption of production in satisfaction of our customers’ needs. We are especially pleased that the Sidney plant is expected to be substantially back to full production this month. This team is a tremendous example of Amphenol’s outstanding organization.”

 

“In the past month, global markets have been impacted by a higher level of uncertainty surrounding fiscal and budgetary issues in most developed economies. As a result, we have begun to see increased levels of caution from many of our customers, translating into lower demand in most markets. In addition, we do not expect a continuation in the fourth quarter of the increased demand levels in the Mobile Devices market that we experienced in the third quarter. In consideration of this and based on the assumption of constant currency exchange rates including a relatively weaker euro, we expect fourth quarter 2011 revenues in the range of $920 million to $940 million and EPS (excluding one-time items) in the range of $.69 to $.71. For the full year 2011, we expect to achieve revenues and EPS in the range of $3.912 billion to $3.932 billion and $3.02 to $3.04 as reported ($3.01 to $3.03 excluding one-time items), respectively, an increase over the prior year of 10% to 11 % in revenues and 11% to 12% in EPS (excluding one-time items), respectively. This compares to prior guidance of $3.975 billion to $4.005 billion in sales and $3.07 to $3.11 in EPS excluding one-time items.”

 



 

“Despite the increased level of economic uncertainty, we continue to be extremely excited about the future. The electronics revolution continues unabated in all of our end markets, with new applications and higher performance requirements driving accelerated demand for our leading interconnect technologies. 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 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 19, 2011. 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. (ET) on Friday, October 21, 2011. The replay numbers are as follows: toll free dial-in number is 888-568-0671 and international dial-in number is 402-530-7729; 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, 2010, 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,

 

 

 

2011

 

2010

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,032,754

 

$

948,463

 

$

2,991,077

 

$

2,604,215

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

709,277

 

638,746

 

2,042,254

 

1,756,007

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

323,477

 

309,717

 

948,823

 

848,208

 

 

 

 

 

 

 

 

 

 

 

Casualty loss related to flood

 

12,831

 

 

12,831

 

 

 

 

 

 

 

 

 

 

 

 

Change in contingent acquisition related obligations

 

 

 

(17,813

)

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense

 

124,587

 

120,583

 

366,787

 

338,405

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

186,059

 

189,134

 

587,018

 

509,803

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(10,498

)

(10,568

)

(31,885

)

(30,549

)

Other income (expenses), net

 

2,255

 

1,251

 

6,089

 

2,474

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

177,816

 

179,817

 

561,222

 

481,728

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

(41,758

)

(41,018

)

(147,385

)

(111,782

)

 

 

 

 

 

 

 

 

 

 

Net income

 

136,058

 

138,799

 

413,837

 

369,946

 

Less: Net income attributable to noncontrolling interests

 

(1,435

)

(1,531

)

(3,505

)

(4,654

)

 

 

 

 

 

 

 

 

 

 

Net income attributable to Amphenol Corporation

 

$

134,623

 

$

137,268

 

$

410,332

 

$

365,292

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Basic

 

$

0.80

 

$

0.79

 

$

2.39

 

$

2.11

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Basic

 

167,951,866

 

173,813,753

 

171,411,779

 

173,535,255

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Diluted (1) (2)

 

$

0.79

 

$

0.78

 

$

2.36

 

$

2.08

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Diluted

 

169,835,067

 

176,224,749

 

173,728,409

 

175,897,452

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.015

 

$

0.015

 

$

0.045

 

$

0.045

 

 


Note 1    Earnings per share for the third quarter of 2011 includes a $12.8 million charge ($8.1 million after tax), or ($.05) per share, casualty loss related to flood and a $4.5 million, or $.03 per share, net tax benefit relating to a reduction in international tax expense due primarily to the favorable settlement of certain tax positions and the completion of prior year audits.  Earnings per share for the nine months ended September 30, 2011 also includes a $17.8 million ($11.2 million after tax) gain, or $.06 per share, related to the adjustment of a contingent purchase price obligation for a 2010 acquisition.  Excluding these effects, diluted earnings per share was $.81 and $2.32 for the three months and nine months ended September 30, 2011, respectively.

 

Note 2    Earnings per share in 2010 includes an $8.4 million, or $.05 per share, and a $20.8 million, or $.12 per share, net tax benefit relating to a reduction in international tax expense due primarily to the favorable settlement of certain tax positions and the completion of prior year audits in the three months and nine months ended September 30, 2010, respectively.  Excluding these effects, diluted earnings per share was $.73 and $1.96 for the three months and nine months ended September 30, 2010, respectively.

 



 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(dollars in thousands)

 

 

 

September 30,

 

December 31,

 

 

 

2011

 

2010

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

690,179

 

$

525,888

 

Short-term investments

 

90,730

 

98,341

 

Total cash, cash equivalents and short-term investments

 

780,909

 

624,229

 

Accounts receivable, less allowance for doubtful accounts of $10,507 and $14,946, respectively

 

803,477

 

718,545

 

Inventories, net

 

634,814

 

549,169

 

Other current assets

 

108,612

 

100,187

 

 

 

 

 

 

 

Total current assets

 

2,327,812

 

1,992,130

 

 

 

 

 

 

 

Land and depreciable assets, less accumulated depreciation of $652,699 and $611,008, respectively

 

359,516

 

366,996

 

Goodwill

 

1,559,958

 

1,533,299

 

Other long-term assets

 

114,510

 

123,432

 

 

 

 

 

 

 

 

 

$

4,361,796

 

$

4,015,857

 

 

 

 

 

 

 

LIABILITIES & EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

418,201

 

$

384,963

 

Accrued salaries, wages and employee benefits

 

76,944

 

75,183

 

Accrued income taxes

 

77,684

 

65,311

 

Accrued acquisition-related obligations

 

 

39,615

 

Other accrued expenses

 

89,070

 

89,566

 

Short-term debt

 

304

 

352

 

 

 

 

 

 

 

Total current liabilities

 

662,203

 

654,990

 

 

 

 

 

 

 

Long-term debt

 

1,265,026

 

799,640

 

Accrued pension and post employment benefit obligations

 

167,585

 

176,636

 

Other long-term liabilities

 

37,433

 

41,876

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

Common stock

 

165

 

176

 

Additional paid-in capital

 

179,090

 

144,855

 

Accumulated earnings

 

2,129,274

 

2,260,581

 

Accumulated other comprehensive loss

 

(91,955

)

(84,757

)

 

 

 

 

 

 

Total shareholders’ equity attributable to Amphenol Corporation

 

2,216,574

 

2,320,855

 

 

 

 

 

 

 

Noncontrolling interests

 

12,975

 

21,860

 

 

 

 

 

 

 

Total equity

 

2,229,549

 

2,342,715

 

 

 

 

 

 

 

 

 

$

4,361,796

 

$

4,015,857

 

 



 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(Unaudited)

(dollars in thousands)

 

 

 

Nine months ended

 

 

 

September 30,

 

 

 

2011

 

2010

 

 

 

 

 

 

 

Cash flow from operating activities:

 

 

 

 

 

Net income

 

$

413,837

 

$

369,946

 

Adjustments for cash flow from operating activities:

 

 

 

 

 

Depreciation and amortization

 

88,197

 

76,000

 

Net change in receivables sold under Receivables Securitization Facility

 

 

(82,000

)(1)

Stock-based compensation expense

 

21,011

 

18,580

 

Non-cash casualty loss related to flood

 

12,400

 

 

Change in contingent acquisition related obligations

 

(17,813

)

 

Excess tax benefits from stock-based compensation payment arrangements

 

(5,624

)

(3,650

)

Net change in components of working capital

 

(125,644

)

(109,898

)

Net change in other long-term assets and liabilities

 

10,225

 

(4,767

)

 

 

 

 

 

 

Cash flow provided by operating activities

 

396,589

 

264,211

 

 

 

 

 

 

 

Cash flow from investing activities:

 

 

 

 

 

Additions to property, plant and equipment

 

(72,048

)

(73,364

)

Proceeds from disposals of fixed assets

 

7,134

 

1,036

 

Purchases of short-term investments

 

(93,833

)

(118,374

)

Sales and maturities of short-term investments

 

101,444

 

49,254

 

Acquisitions, net of cash acquired

 

(52,993

)

(164,921

)

 

 

 

 

 

 

Cash flow used in investing activities

 

(110,296

)

(306,369

)

 

 

 

 

 

 

Cash flow from financing activities:

 

 

 

 

 

Borrowings under credit facilities

 

675,100

 

618,192

(1)

Repayments under credit facilities

 

(215,598

)

(468,406

)

Payment of fees and expenses related to debt financing

 

(2,125

)

(6,934

)

Proceeds from exercise of stock options

 

24,255

 

21,271

 

Excess tax benefits from stock-based compensation payment arrangements

 

5,624

 

3,650

 

Payment of contingent acquisition related obligations

 

(40,000

)

 

Payments to shareholders of noncontrolling interests

 

(28,689

)

(22,588

)

Purchase and retirement of treasury stock

 

(534,000

)

 

Dividend payments

 

(7,788

)

(7,801

)

 

 

 

 

 

 

Cash flow (used in) provided by financing activities

 

(123,221

)

137,384

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

1,219

 

689

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

164,291

 

95,915

 

Cash and cash equivalents balance, beginning of period

 

525,888

 

384,613

 

 

 

 

 

 

 

Cash and cash equivalents balance, end of period

 

$

690,179

 

$

480,528

 

 


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 (resulting in a reduction of cash flows provided by operating activities of $82,000 for the nine months ended September 30, 2010).

 



 

AMPHENOL CORPORATION

SEGMENT INFORMATION

(dollars in thousands)

(Unaudited)

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

 

Trade Sales:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

957,153

 

$

881,340

 

$

2,778,418

 

$

2,402,084

 

Cable Products

 

75,601

 

67,123

 

212,659

 

202,131

 

Consolidated

 

$

1,032,754

 

$

948,463

 

$

2,991,077

 

$

2,604,215

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

205,611

 

$

196,107

 

$

603,103

 

$

526,589

 

Cable Products

 

9,874

 

9,077

 

26,833

 

28,240

 

Stock-based compensation expense

 

(7,630

)

(6,965

)

(21,011

)

(18,580

)

Change in contingent acquisition related obligations

 

 

 

17,813

 

 

Casualty loss related to flood

 

(12,831

)

 

(12,831

)

 

Other operating expenses

 

(8,965

)

(9,085

)

(26,889

)

(26,446

)

Consolidated

 

$

186,059

 

$

189,134

 

$

587,018

 

$

509,803

 

 

 

 

 

 

 

 

 

 

 

ROS%:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

21.5

%

22.3

%

21.7

%

21.9

%

Cable Products

 

13.1

%

13.5

%

12.6

%

14.0

%

Corporate - stock-based compensation

 

-0.7

%

-0.7

%

-0.7

%

-0.7

%

Change in contingent acquisition related obligations

 

0.0

%

0.0

%

0.6

%

0.0

%

Casualty loss related to flood

 

-1.3

%

0.0

%

-0.4

%

0.0

%

Corporate - all other

 

-0.9

%

-1.0

%

-0.9

%

-1.0

%

 

 

 

 

 

 

 

 

 

 

Consolidated

 

18.0

%

19.9

%

19.6

%

19.6

%