Attached files
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| 8-K - 8-K - AMPHENOL CORP /DE/ | a12-9933_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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Executive Vice President and Chief Financial Officer |
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203/265-8630 |
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www.amphenol.com |
FIRST QUARTER 2012 RESULTS
REPORTED BY AMPHENOL CORPORATION
Wallingford, Connecticut. April 18, 2012. Amphenol Corporation (NYSE-APH) reported today first quarter 2012 diluted earnings per share of $.77 compared to $.72 per share for the comparable 2011 period. Sales for the first quarter 2012 were $982 million compared to $941 million for the 2011 period. Currency translation had the effect of decreasing sales by approximately $4 million in the first quarter 2012 compared to the 2011 period.
Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated “We are pleased to report a strong start to 2012 with first quarter sales of $982 million, operating income margin of 18.9% and diluted earnings per share of $.77. Sales were up approximately 4% year-over-year and 3% sequentially. On a year-over-year basis, strength in automotive, commercial aerospace, broadband communications and industrial markets offset declines in the defense and wireless markets, reflecting the significant benefits of the Company’s diversity. We are especially encouraged to have achieved record orders of $1.028 billion in the first quarter. In addition, it is extremely rewarding that the Company’s unique entrepreneurial culture continues to drive an unwavering focus on profitability, resulting in a sequential operating margin improvement of 40 basis points to 18.9% in Q1 2012. 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 this strategy, in early April, the Company completed the acquisition of Nelson-Dunn, a U.S. manufacturer of high-technology, value-added interconnect assemblies for the oil and gas market with annual sales of approximately $45 million. This acquisition complements and strengthens the Company’s industry-leading offering of harsh environment products for the fast-growing energy markets. 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. In addition, as previously announced, the Company’s Board of Directors has approved an increase in the quarterly dividend to $.105 per share effective for dividends paid after March 2012.”
“Based on the assumption of stable economic conditions and constant currency exchange rates, we expect Q2 2012 revenues in the range of $1.040 billion to $1.055 billion and diluted EPS in the range of $.82 to $.85. For the year 2012, we now expect to achieve revenues and diluted EPS in the range of $4.105 billion to $4.190 billion and $3.30 to $3.38, respectively, an increase of 4% to 6% and 8% to 11% over 2011 revenues and diluted EPS (excluding 2011 one-time items), respectively. This compares to prior full year 2012 guidance for revenues and diluted EPS in the range of $4.050 billion to $4.150 billion and $3.23 to $3.34, respectively. We believe we can perform well in the dynamic electronics market 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 first quarter results at 1:00 PM (EST) April 18, 2012. 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 Friday, April 20, 2012. The replay numbers are toll free 866-418-8388; International toll number is 203-369-0758; 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, 2011, 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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March 31, |
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2012 |
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2011 |
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Net sales |
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$ |
981,604 |
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$ |
940,585 |
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Cost of sales |
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672,333 |
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636,461 |
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Gross profit |
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309,271 |
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304,124 |
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Selling, general and administrative expense |
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123,992 |
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118,039 |
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Operating income |
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185,279 |
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186,085 |
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Interest expense |
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(13,749 |
) |
(10,016 |
) | ||
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Other income (expenses), net |
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2,187 |
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1,704 |
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Income before income taxes |
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173,717 |
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177,773 |
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Provision for income taxes |
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(46,469 |
) |
(48,888 |
) | ||
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Net income |
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127,248 |
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128,885 |
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Less: Net income attributable to noncontrolling interests |
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(685 |
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(927 |
) | ||
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Net income attributable to Amphenol Corporation |
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$ |
126,563 |
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$ |
127,958 |
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Net income per common share - Basic |
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$ |
0.78 |
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$ |
0.73 |
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Weighted average common shares outstanding - Basic |
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162,861,863 |
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175,168,297 |
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Net income per common share - Diluted |
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$ |
0.77 |
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$ |
0.72 |
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Weighted average common shares outstanding - Diluted |
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165,355,138 |
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177,850,932 |
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Dividends declared per common share |
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$ |
0.105 |
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$ |
0.015 |
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AMPHENOL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(dollars in thousands)
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March 31, |
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December 31, |
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2012 |
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2011 |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
620,983 |
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$ |
515,086 |
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Short-term investments |
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122,249 |
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133,848 |
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Total cash, cash equivalents and short-term investments |
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743,232 |
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648,934 |
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Accounts receivable, less allowance for doubtful accounts of $11,640 and $11,113, respectively |
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771,400 |
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767,181 |
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Inventories, net |
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659,108 |
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649,862 |
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Other current assets |
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118,060 |
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115,260 |
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Total current assets |
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2,291,800 |
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2,181,237 |
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Land and depreciable assets, less accumulated depreciation of $673,265 and $655,869, respectively |
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389,873 |
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380,501 |
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Goodwill |
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1,754,951 |
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1,746,113 |
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Other long-term assets |
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140,756 |
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137,374 |
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$ |
4,577,380 |
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$ |
4,445,225 |
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LIABILITIES & EQUITY |
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Current Liabilities: |
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Accounts payable |
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$ |
402,916 |
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$ |
377,867 |
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Accrued salaries, wages and employee benefits |
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80,919 |
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83,810 |
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Accrued income taxes |
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80,664 |
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87,315 |
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Other accrued expenses |
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102,182 |
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93,125 |
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Short-term debt |
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78,298 |
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298 |
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Total current liabilities |
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744,979 |
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642,415 |
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Long-term debt |
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1,316,819 |
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1,376,831 |
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Accrued pension and post employment benefit obligations |
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207,304 |
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207,049 |
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Other long-term liabilities |
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43,560 |
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34,144 |
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Equity: |
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Common stock |
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163 |
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163 |
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Additional paid-in capital |
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224,357 |
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189,166 |
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Accumulated earnings |
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2,130,127 |
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2,102,497 |
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Accumulated other comprehensive loss |
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(103,647 |
) |
(120,057 |
) | ||
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Total shareholders’ equity attributable to Amphenol Corporation |
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2,251,000 |
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2,171,769 |
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Noncontrolling interests |
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13,718 |
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13,017 |
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Total equity |
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2,264,718 |
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2,184,786 |
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|
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$ |
4,577,380 |
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$ |
4,445,225 |
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AMPHENOL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
(dollars in thousands)
|
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Three months ended |
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March 31, |
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2012 |
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2011 |
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Cash flow from operating activities: |
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Net income |
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$ |
127,248 |
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$ |
128,885 |
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Adjustments for cash flow from operating activities: |
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Depreciation and amortization |
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28,999 |
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27,357 |
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Stock-based compensation expense |
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7,491 |
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6,320 |
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Excess tax benefits from stock-based compensation payment arrangements |
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(5,429 |
) |
(4,625 |
) | ||
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Net change in components of working capital |
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9,851 |
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(44,065 |
) | ||
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Net change in other long-term assets and liabilities |
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(3,956 |
) |
(6,134 |
) | ||
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Cash flow provided by operating activities |
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164,204 |
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107,738 |
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Cash flow from investing activities: |
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Additions to property, plant and equipment |
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(31,523 |
) |
(23,321 |
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Proceeds from disposals of fixed assets |
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1,015 |
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143 |
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Purchases of short-term investments |
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(34,466 |
) |
(20,423 |
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Sales and maturities of short-term investments |
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46,065 |
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20,342 |
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Cash flow used in investing activities |
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(18,909 |
) |
(23,259 |
) | ||
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Cash flow from financing activities: |
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Borrowings under senior notes |
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498,730 |
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— |
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Borrowings under credit facilities |
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227,900 |
|
212,270 |
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Repayments under credit facilities |
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(708,747 |
) |
(62,700 |
) | ||
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Payment of fees and expenses related to debt financing |
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(4,315 |
) |
— |
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Proceeds from exercise of stock options |
|
22,418 |
|
11,921 |
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Excess tax benefits from stock-based compensation payment arrangements |
|
5,429 |
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4,625 |
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Payments to shareholders of noncontrolling interests |
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— |
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(496 |
) | ||
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Purchase and retirement of treasury stock |
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(81,885 |
) |
(188,503 |
) | ||
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Dividend payments |
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(2,448 |
) |
(2,633 |
) | ||
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|
|
|
|
|
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Cash flow used in financing activities |
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(42,918 |
) |
(25,516 |
) | ||
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|
|
|
|
|
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Effect of exchange rate changes on cash and cash equivalents |
|
3,520 |
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8,148 |
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|
|
|
|
|
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Net change in cash and cash equivalents |
|
105,897 |
|
67,111 |
| ||
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Cash and cash equivalents balance, beginning of period |
|
515,086 |
|
525,888 |
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|
|
|
|
|
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Cash and cash equivalents balance, end of period |
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$ |
620,983 |
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$ |
592,999 |
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AMPHENOL CORPORATION
SEGMENT INFORMATION
(dollars in thousands)
(Unaudited)
|
|
|
Three months ended |
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|
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March 31, |
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|
|
2012 |
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2011 |
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Trade Sales: |
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|
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Interconnect Products |
|
$ |
908,035 |
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$ |
877,516 |
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Cable Products |
|
73,569 |
|
63,069 |
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Consolidated |
|
$ |
981,604 |
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$ |
940,585 |
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|
|
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Operating income: |
|
|
|
|
| ||
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Interconnect Products |
|
$ |
190,859 |
|
$ |
194,112 |
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|
Cable Products |
|
10,676 |
|
7,459 |
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|
Stock-based compensation expense |
|
(7,491 |
) |
(6,320 |
) | ||
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Other operating expenses |
|
(8,765 |
) |
(9,166 |
) | ||
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Consolidated |
|
$ |
185,279 |
|
$ |
186,085 |
|
|
|
|
|
|
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Return on Sales %: |
|
|
|
|
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|
Interconnect Products |
|
21.0 |
% |
22.1 |
% | ||
|
Cable Products |
|
14.5 |
% |
11.8 |
% | ||
|
Stock-based compensation |
|
-0.8 |
% |
-0.7 |
% | ||
|
Corporate - all other |
|
-0.9 |
% |
-1.0 |
% | ||
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|
|
|
|
|
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Consolidated |
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18.9 |
% |
19.8 |
% | ||