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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

 

FOURTH QUARTER 2013 RECORD RESULTS

REPORTED BY AMPHENOL CORPORATION

 

Wallingford, Connecticut. January 22, 2014.  Amphenol Corporation (NYSE:APH) reported today fourth quarter 2013 record diluted earnings per share, excluding one-time items, of $1.05 compared to $.94 for the comparable 2012 period. On an as reported basis, diluted earnings per share were $1.04 and $0.86 for the fourth quarter of 2013 and 2012, respectively.  Such per share amount for the 2013 period includes a charge for acquisition-related transaction costs of $3.4 million ($2.4 million after tax), or $.01 per share relating to 2013 acquisitions.  Such per share amount for the 2012 period included one-time charges of $.08 per share comprised of acquisition-related transaction costs of $2 million ($2 million after tax) or $.01 per share relating to 2012 acquisitions; and income tax costs 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.

 



 

Sales for the fourth quarter 2013 were a record $1.246 billion compared to $1.146 billion for the 2012 period. Currency translation had the effect of increasing sales by approximately $7.5 million in the fourth quarter 2013 compared to the 2012 period.

 

For the full year ended December 31, 2013, diluted earnings per share excluding one-time items was $3.85 compared to $3.47 for the 2012 period.  On an as reported basis, 2013 diluted earnings per share of $3.92 included the following one-time items: (1) an income tax benefit of $11 million, or $.07 per share related to the January 2, 2013 reinstatement of certain federal income tax provisions described above 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; (2) an income tax 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 and (3) a $6.0 million ($4.6 million after tax), or $.02 per share charge for acquisition-related transaction costs.  As reported diluted earnings per share for the year 2012 was $3.39 and included one-time charges of $.08 per share described above.

 

Sales for the full year ended December 31, 2013 were $4.615 billion compared to $4.292 billion for the 2012 period.  Currency translation had the effect of increasing sales by approximately $15.4 million for the full year 2013 compared to the 2012 period.

 

The Company completed four acquisitions during the fourth quarter of 2013 for a total purchase price of $455 million. These include the previously announced acquisitions of the Advanced Sensors Business of General Electric (NYSE:GE), a global manufacturer of sensors and sensor-based instruments primarily for the industrial and automotive

 



 

markets with annual sales of approximately $225 million, and Ionix Aerospace Ltd, a UK-based high technology cable assembly company focused primarily on the commercial aerospace market with annual sales of approximately $35 million. In addition, the Company completed the acquisition of Tecvox LLC, a US-based provider of value-added components and assemblies to the automotive infotainment connectivity market with annual sales of approximately $45 million, and the acquisition of Hangzhou Jet Interconnect Technology Co., a China-based manufacturer and supplier to Amphenol, specializing in high precision and fine pitch mechanical components and tooling.

 

Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated “We are pleased to report record fourth quarter sales of $1.246 billion and EPS, excluding one-time items, of $1.05, up 9% and 12%, respectively, over the comparable 2012 quarter.  The sales growth over last year was driven both organically and through acquisitions in the commercial aerospace, automotive, industrial and information technology and data communications markets. For the full year 2013, sales were up 8% over last year with 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 12% EPS growth and record EPS, before one-time items, of $1.05 in the quarter.  This performance is 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, the Company completed five acquisitions in 2013, including four in the fourth quarter.  These 2013 acquisitions strengthen and broaden our technology offering in the industrial, automotive and commercial aerospace markets. In particular, our entrance into the highly-engineered sensor and sensor-based instrument market through the acquisition of Advanced Sensors represents a unique complement to our core interconnect offering, creating significant expansion opportunities with the potential to deliver additional value-added solutions to our customers across a wide variety of end markets. In addition, the acquisition of Tecvox will accelerate Amphenol’s participation in the significant growth opportunity of automotive infotainment. As a complement 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 329,000 shares of the Company’s stock pursuant to our stock repurchase plan.”

 

“The overall global economic environment remains uncertain.  Considering such an environment and assuming current currency exchange rates, we expect first quarter 2014 revenues in the range of $1.180 billion to $1.210 billion and diluted EPS in the range of $.93 to $.96 (excluding one-time items).  For the year 2014, we expect to achieve revenues and diluted EPS in the range of $5.0 billion to $5.12 billion and $4.15 to $4.27 (excluding one-time items), respectively, an increase of 8% to 11% over 2013 revenues and 8% to 11% over 2013 diluted EPS (excluding one-time items).  Despite the many

 



 

continuing 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 and sensor technologies across 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 fourth quarter results at 1:00 PM (EST) January 22, 2014.  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, February 21, 2014.  The replay numbers are toll free 888-568-0353; International toll number is 203-369-3908; 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, sensors and sensor-based products 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

 

Twelve Months Ended

 

 

 

December 31

 

December 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,245,735

 

$

1,145,978

 

$

4,614,669

 

$

4,292,065

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

856,429

 

790,527

 

3,163,835

 

2,948,853

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

389,306

 

355,451

 

1,450,834

 

1,343,212

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

 

3,446

 

2,000

 

5,983

 

2,000

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense

 

144,500

 

132,231

 

548,038

 

512,867

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

241,360

 

221,220

 

896,813

 

828,345

 

 

 

.

 

 

 

 

 

 

 

Interest expense

 

(16,427

)

(15,599

)

(63,553

)

(59,613

)

Other income, net

 

3,942

 

2,652

 

13,385

 

10,109

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

228,875

 

208,273

 

846,645

 

778,841

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

(59,996

)

(66,706

)

(207,896

)

(219,333

)

 

 

 

 

 

 

 

 

 

 

Net income

 

168,879

 

141,567

 

638,749

 

559,508

 

Less: Net income attributable to noncontrolling interests

 

(1,000

)

(1,205

)

(3,077

)

(4,191

)

 

 

 

 

 

 

 

 

 

 

Net income attributable to Amphenol Corporation

 

$

167,879

 

$

140,362

 

$

635,672

 

$

555,317

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Basic

 

$

1.06

 

$

0.88

 

$

4.00

 

$

3.44

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Basic

 

158,283,126

 

160,379,864

 

159,092,787

 

161,522,080

 

 

 

 

 

 

 

 

 

 

 

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

 

$

1.04

 

$

0.86

 

$

3.92

 

$

3.39

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Diluted

 

161,673,496

 

162,789,858

 

162,274,499

 

163,947,111

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.200

 

$

0.105

 

$

0.610

 

$

0.420

 

 


Note 1           Earnings per share in the three months ended December 31, 2013 included acquisition-related expenses of $3.4 million ($2.4 million after-tax), or $.01 per share, relating to 2013 acquisitions.  Earnings per share in the twelve months ended December 31, 2013 included acquisition-related expenses of $6.0 million, $4.6 million after-tax or $.02 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 twelve months ended December 31, 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 $1.05 and $3.85 for the three and twelve months ended December 31, 2013, respectively.

 

Note 2           Earnings per share in the three and twelve months ended December 31, 2012 included one-time charges of $.08 per share comprised of acquisition-related transaction costs of $2.0 million ($2.0 million after tax), or $.01 per share, relating to 2012 acquisitions and income tax costs 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.  Excluding these effects, diluted earnings per share was $.94 and $3.47 for the three and twelve months ended December 31, 2012, respectively.

 



 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(dollars in thousands)

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

886,838

 

$

690,850

 

Short-term investments

 

305,324

 

251,653

 

Total cash, cash equivalents and short-term investments

 

1,192,162

 

942,503

 

Accounts receivable, less allowance for doubtful accounts of $12,010 and $10,372, respectively

 

1,001,012

 

910,711

 

Inventories

 

792,644

 

733,718

 

Other current assets

 

171,749

 

119,983

 

 

 

 

 

 

 

Total current assets

 

3,157,567

 

2,706,915

 

 

 

 

 

 

 

Land and depreciable assets, less accumulated depreciation of $803,954 and $715,895, respectively

 

532,425

 

417,436

 

Goodwill and other long-term assets

 

2,478,036

 

2,091,112

 

 

 

 

 

 

 

 

 

$

6,168,028

 

$

5,215,463

 

 

 

 

 

 

 

LIABILITIES & EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

549,942

 

$

496,525

 

Accrued salaries, wages and employee benefits

 

104,859

 

89,142

 

Accrued income taxes

 

96,388

 

94,341

 

Other accrued expenses

 

157,252

 

108,213

 

Short-term debt

 

701,437

 

100,293

 

 

 

 

 

 

 

Total current liabilities

 

1,609,878

 

888,514

 

 

 

 

 

 

 

Long-term debt

 

1,431,437

 

1,606,204

 

Accrued pension and post employment benefit obligations

 

180,021

 

244,571

 

Other long-term liabilities

 

66,620

 

33,992

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

Common stock

 

159

 

160

 

Additional paid-in capital

 

489,930

 

336,683

 

Accumulated earnings

 

2,424,372

 

2,210,120

 

Accumulated other comprehensive loss

 

(54,952

)

(117,004

)

 

 

 

 

 

 

Total shareholders’ equity attributable to Amphenol Corporation

 

2,859,509

 

2,429,959

 

 

 

 

 

 

 

Noncontrolling interests

 

20,563

 

12,223

 

 

 

 

 

 

 

Total equity

 

2,880,072

 

2,442,182

 

 

 

 

 

 

 

 

 

$

6,168,028

 

$

5,215,463

 

 



 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(Unaudited)

(dollars in thousands)

 

 

 

Twelve months ended

 

 

 

December 31,

 

 

 

2013

 

2012

 

 

 

 

 

 

 

Cash flow from operating activities:

 

 

 

 

 

Net income

 

$

638,748

 

$

559,508

 

Adjustments for cash flow from operating activities:

 

 

 

 

 

Depreciation and amortization

 

136,482

 

121,779

 

Stock-based compensation expense

 

36,070

 

31,412

 

Excess tax benefits from stock-based compensation payment arrangements

 

(21,045

)

(21,648

)

Net change in components of working capital

 

(26,308

)

(8,946

)

Net change in other long-term assets and liabilities

 

5,103

 

(7,426

)

 

 

 

 

 

 

Cash flow provided by operating activities

 

769,050

 

674,679

 

 

 

 

 

 

 

Cash flow from investing activities:

 

 

 

 

 

Additions to property, plant and equipment

 

(158,448

)

(129,099

)

Proceeds from disposals of fixed assets

 

3,712

 

4,828

 

Purchases of short-term investments

 

(741,062

)

(379,605

)

Sales and maturities of short-term investments

 

687,391

 

261,800

 

Acquisitions, net of cash acquired

 

(484,907

)

(251,523

)

 

 

 

 

 

 

Cash flow used in investing activities

 

(693,314

)

(493,599

)

 

 

 

 

 

 

Cash flow from financing activities:

 

 

 

 

 

Issuance of senior notes

 

 

498,730

 

Borrowings under credit facilities

 

1,041,400

 

819,556

 

Repayments under credit facilities

 

(620,374

)

(988,800

)

Payment of fees and expenses related to debt financing

 

(2,827

)

(4,318

)

Proceeds from exercise of stock options

 

95,142

 

95,451

 

Excess tax benefits from stock-based compensation payment arrangements

 

21,045

 

21,648

 

Payments to shareholders of noncontrolling interests

 

(4,371

)

(5,206

)

Purchase and retirement of treasury stock

 

(324,655

)

(380,023

)

Dividend payments

 

(96,771

)

(70,122

)

 

 

 

 

 

 

Cash flow provided by (used in) financing activities

 

108,589

 

(13,084

)

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

11,663

 

7,768

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

195,988

 

175,764

 

Cash and cash equivalents balance, beginning of period

 

690,850

 

515,086

 

 

 

 

 

 

 

Cash and cash equivalents balance, end of period

 

$

886,838

 

$

690,850

 

 



 

AMPHENOL CORPORATION

SEGMENT INFORMATION

(dollars in thousands)

(Unaudited)

 

 

 

Three months ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

Trade Sales:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

1,164,124

 

$

1,060,452

 

$

4,268,980

 

$

3,987,286

 

Cable Products

 

81,611

 

85,526

 

345,689

 

304,779

 

Consolidated

 

$

1,245,735

 

$

1,145,978

 

$

4,614,669

 

$

4,292,065

 

 

 

 

 

 

 

 

 

 

 

Operating income, excluding one-time items:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

254,185

 

$

230,104

 

$

931,003

 

$

858,066

 

Cable Products

 

9,922

 

11,308

 

46,354

 

41,139

 

Stock-based compensation expense

 

(9,486

)

(8,244

)

(36,070

)

(31,411

)

Other operating expenses

 

(9,815

)

(9,948

)

(38,491

)

(37,449

)

Operating income, excluding one-time items

 

244,806

 

223,220

 

902,796

 

830,345

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

 

(3,446

)

(2,000

)

(5,983

)

(2,000

)

Consolidated

 

$

241,360

 

$

221,220

 

$

896,813

 

$

828,345

 

 

 

 

 

 

 

 

 

 

 

ROS%:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

21.8

%

21.7

%

21.8

%

21.5

%

Cable Products

 

12.2

%

13.2

%

13.4

%

13.5

%

Stock-based compensation expense

 

-0.8

%

-0.7

%

-0.8

%

-0.7

%

Other operating expenses

 

-0.8

%

-0.9

%

-0.8

%

-0.9

%

 

 

 

 

 

 

 

 

 

 

ROS, excluding one-time items

 

19.7

%

19.5

%

19.6

%

19.3

%

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

 

-0.3

%

-0.2

%

-0.2

%

0.0

%

Consolidated

 

19.4

%

19.3

%

19.4

%

19.3

%