Attached files

file filename
8-K - 8-K - AMPHENOL CORP /DE/a13-16790_18k.htm

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

 

SECOND QUARTER 2013 RESULTS

AND INCREASE IN DIVIDEND

REPORTED BY AMPHENOL CORPORATION

Wallingford, Connecticut. July 18, 2013.  Amphenol Corporation (NYSE-APH) reported today second quarter 2013 diluted earnings per share of $.95 compared to $.86 per share for the comparable 2012 period.  Sales for the second quarter 2013 were $1.136 billion compared to $1.061 billion for the 2012 period.  Currency translation had the effect of increasing sales by approximately $2.1 million in the second quarter 2013 compared to the 2012 period.

 

For the six months ended June 30, 2013 diluted earnings per share was $1.89 on an as reported basis and $1.82 excluding a one-time tax benefit compared to $1.63 for the comparable 2012 period.  The 2013 period includes an income tax benefit of $11 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 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 six months ended June 30, 2013 were $2.216 billion compared to $2.043 billion for the 2012 period.  Currency translation had no significant effect on sales for the six month 2013 period compared to the 2012 period.

 

In addition, the Company’s Board of Directors has approved an increase in the quarterly dividend from $.105 per share to $.20 per share to be paid on or about October 2, 2013 to holders of record of the Company’s Class A Common stock as of September 11, 2013.

 

Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated “We are pleased to report strong second quarter sales up 7% over the comparable 2012 quarter and 5% sequentially.  The sales growth over last year was driven by increases in nearly all of our served markets led by the commercial aerospace, automotive, mobile networks and broadband markets with contributions from both organic growth and our acquisition program.  Sequentially, we grew in the information technology and data communications, mobile networks, broadband, industrial and automotive markets, but experienced modest sequential declines in the mobile device and defense markets.  Our strong growth is further confirmation of the significant benefits of the Company’s technology leadership and diversification. We are encouraged to have achieved orders of $1.177 billion in the second quarter, representing a book-to-bill of 1.04 to 1.  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 30 basis points over the prior year quarter to 19.7%, driving strong 10% EPS growth and record EPS of $.95 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, at the end of the second quarter, the Company completed the acquisition of DC Electronics,  a  U.S. manufacturer of value-add interconnect products for a broad range of harsh environment industrial applications with annual sales of approximately $40 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 1.2 million shares of the Company’s stock pursuant to our stock repurchase plan and an increase in the quarterly dividend from $.105 per share to $.20 per share.”

 

“There is still a great deal of market uncertainty in the global economy and, in particular, increasing levels of volatility in the mobile device market.  Accordingly, and assuming current currency exchange rates, we expect third quarter 2013 revenues in the range of $1.120 billion to $1.145 billion and diluted EPS in the range of $.95 to $.98.  For the year 2013, we now expect to achieve 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, an increase of 5% to 6% over 2012 revenues and 7% 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 $4.580 billion to $4.655 billion and $3.76 to $3.85 (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 second quarter results at 1:00 PM (EST) July 18, 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 Sunday, August 18, 2013.  The replay numbers are toll free 800-814-6746; International toll number is 203-369-3827; Passcode: 71813.

 

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
June 30,

 

Six Months Ended
June 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

Net sales

 

$

1,136,067

 

$

1,061,107

 

$

2,215,872

 

$

2,042,711

 

Cost of sales

 

776,279

 

726,946

 

1,518,192

 

1,399,279

 

Gross profit

 

359,788

 

334,161

 

697,680

 

643,432

 

Selling, general and administrative expense

 

135,775

 

127,985

 

266,710

 

251,977

 

Operating income

 

224,013

 

206,176

 

430,970

 

391,455

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(15,621

)

(15,099

)

(31,078

)

(28,848

)

Other income, net

 

3,033

 

2,634

 

5,818

 

4,821

 

Income before income taxes

 

211,425

 

193,711

 

405,710

 

367,428

 

Provision for income taxes

 

(56,557

)

(51,818

)

(97,229

)

(98,287

)

Net income

 

154,868

 

141,893

 

308,481

 

269,141

 

Less: Net income attributable to noncontrolling interests

 

(880

)

(951

)

(1,486

)

(1,636

)

 

 

 

 

 

 

 

 

 

 

Net income attributable to Amphenol Corporation

 

$

153,988

 

$

140,942

 

$

306,995

 

$

267,505

 

 

 

 

 

 

 

 

 

 

 

Net income per common share-Basic

 

$

0.96

 

$

0.87

 

$

1.92

 

$

1.65

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding-Basic

 

159,705,021

 

161,511,550

 

159,721,503

 

162,186,707

 

 

 

 

 

 

 

 

 

 

 

Net income per common share-Diluted (1)

 

$

0.95

 

$

0.86

 

$

1.89

 

$

1.63

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding-Diluted

 

162,935,428

 

163,871,565

 

162,824,829

 

164,613,352

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.105

 

$

0.105

 

$

0.210

 

$

0.210

 

 

Note 1:  Earnings per share in the six months ended June 30, 2013 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 $1.82 for the six months ended June 30, 2013.

 



 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(dollars in thousands)

(Unaudited)

 

 

 

June 30,
2013

 

December 31,
2012

 

Assets

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

723,659

 

$

690,850

 

Short-term investments

 

418,893

 

251,653

 

Total cash, cash equivalents and short-term investments

 

1,142,552

 

942,503

 

Accounts receivable, less allowance for doubtful accounts of $11,004 and $10,372, respectively

 

905,823

 

910,711

 

Inventories

 

703,489

 

733,718

 

Other current assets

 

122,606

 

119,983

 

 

 

 

 

 

 

Total current assets

 

2,874,470

 

2,706,915

 

 

 

 

 

 

 

Land and depreciable assets, less accumulated depreciation of $756,788 and $715,895, respectively

 

424,844

 

417,436

 

Goodwill

 

1,952,251

 

1,932,740

 

Other long-term assets

 

152,736

 

158,372

 

 

 

 

 

 

 

 

 

$

5,404,301

 

$

5,215,463

 

 

 

 

 

 

 

Liabilities & Equity

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

447,159

 

$

496,525

 

Accrued salaries, wages and employee benefits

 

84,591

 

89,142

 

Accrued income taxes

 

81,946

 

94,341

 

Other accrued expenses

 

118,264

 

108,213

 

Short-term debt

 

83,599

 

100,293

 

 

 

 

 

 

 

Total current liabilities

 

815,559

 

888,514

 

 

 

 

 

 

 

Long-term debt

 

1,698,951

 

1,606,204

 

Accrued pension and post-employment benefit obligations

 

250,373

 

244,571

 

Other long-term liabilities

 

42,158

 

33,992

 

Equity:

 

 

 

 

 

Common stock

 

160

 

160

 

Additional paid-in capital

 

434,236

 

336,683

 

Accumulated earnings

 

2,302,541

 

2,210,120

 

Accumulated other comprehensive loss

 

(151,798

)

(117,004

)

 

 

 

 

 

 

Total shareholders’ equity attributable to Amphenol Corporation

 

2,585,139

 

2,429,959

 

 

 

 

 

 

 

Noncontrolling interests

 

12,121

 

12,223

 

Total equity

 

2,597,260

 

2,442,182

 

 

 

 

 

 

 

 

 

$

5,404,301

 

$

5,215,463

 

 



 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(dollars in thousands)

(Unaudited)

 

 

 

Six Months Ended
June 30,

 

 

 

2013

 

2012

 

Cash flow from operating activities:

 

 

 

 

 

Net income

 

$

308,481

 

$

269,141

 

Adjustments for cash from operating activities:

 

 

 

 

 

Depreciation and amortization

 

66,762

 

58,591

 

Stock-based compensation expense

 

17,175

 

15,101

 

Excess tax benefits from stock-based compensation payment arrangements

 

(16,023

)

(9,677

)

Net change in components of working capital

 

(26,727

)

(40,573

)

Net change in other long-term assets and liabilities

 

11,138

 

(978

)

 

 

 

 

 

 

Cash flow provided by operating activities

 

360,806

 

291,605

 

 

 

 

 

 

 

Cash flow from investing activities:

 

 

 

 

 

Additions to property, plant and equipment

 

(66,037

)

(63,422

)

Proceeds from disposals of fixed assets

 

1,412

 

2,304

 

Purchases of short-term investments

 

(408,845

)

(142,330

)

Sales and maturities of short-term investments

 

241,605

 

141,728

 

Acquisitions, net of cash acquired

 

(44,036

)

(82,349

)

 

 

 

 

 

 

Cash flow used in investing activities

 

(275,901

)

(144,069

)

 

 

 

 

 

 

Cash flow from financing activities:

 

 

 

 

 

Issuance of senior notes

 

 

498,730

 

Borrowings under credit facilities

 

302,583

 

436,036

 

Repayments under credit facilities

 

(225,842

)

(767,900

)

Payments of fees and expenses related to debt financing

 

 

(4,318

)

Proceeds from exercise of stock options

 

64,204

 

35,708

 

Excess tax benefits from stock-based compensation payment arrangements

 

16,023

 

9,677

 

Payments to shareholders of non-controlling interests

 

(1,736

)

(1,650

)

Purchase and retirement of treasury stock

 

(181,108

)

(201,020

)

Dividend payments

 

(16,756

)

(19,500

)

 

 

 

 

 

 

Cash flow used in financing activities

 

(42,632

)

(14,237

)

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(9,464

)

(2,371

)

 

 

 

 

 

 

Net change in cash and cash equivalents

 

32,809

 

130,928

 

Cash and cash equivalents balance, beginning of period

 

690,850

 

515,086

 

 

 

 

 

 

 

Cash and cash equivalents balance, end of period

 

$

723,659

 

$

646,014

 

 



 

AMPHENOL CORPORATION

SEGMENT INFORMATION

(dollars in thousands)

(Unaudited)

 

 

 

Three months ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

Trade Sales:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

1,045,751

 

$

985,490

 

$

2,041,677

 

$

1,893,525

 

Cable Products

 

90,316

 

75,617

 

174,195

 

149,186

 

Consolidated

 

$

1,136,067

 

$

1,061,107

 

$

2,215,872

 

$

2,042,711

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

230,082

 

$

212,586

 

$

443,383

 

$

403,445

 

Cable Products

 

12,443

 

10,458

 

24,043

 

21,134

 

Stock-based compensation expense

 

(8,890

)

(7,610

)

(17,171

)

(15,101

)

Other operating expenses

 

(9,622

)

(9,258

)

(19,285

)

(18,023

)

Operating income

 

$

224,013

 

$

206,176

 

$

430,970

 

$

391,455

 

 

 

 

 

 

 

 

 

 

 

ROS%:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

22.0

%

21.6

%

21.7

%

21.3

%

Cable Products

 

13.8

%

13.8

%

13.8

%

14.2

%

Stock-based compensation expense

 

-0.8

%

-0.7

%

-0.8

%

-0.7

%

Other operating expenses

 

-0.8

%

-0.9

%

-0.9

%

-0.9

%

 

 

 

 

 

 

 

 

 

 

Consolidated

 

19.7

%

19.4

%

19.4

%

19.2

%