ame-20211102

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 2, 2021

(Exact name of registrant as specified in its charter)


Delaware		1-12981	14-1682544
(State or other jurisdiction of incorporation)		(Commission File Number)	(IRS Employer Identification No.)

1100 Cassatt Road
Berwyn,	Pennsylvania		19312
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code: (610) 647-2121

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 Par Value (voting)

AME

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Item 2.02 Results of Operations and Financial Condition.

On November 2, 2021, AMETEK, Inc. (the “Company”) issued a press release announcing its financial results for the three and nine months ended September 30, 2021. A copy of the release is furnished as Exhibit 99.1 and incorporated by reference herein. This Current Report on Form 8-K and the press release attached hereto are being furnished pursuant to Item 2.02 of Form 8-K.

The information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.


Exhibit No.						Description

99.1						Press release, dated November 2, 2021, “AMETEK Announces Record Third Quarter Results and Raises 2021 Guidance".

104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	AMETEK, Inc.

November 2, 2021	By:	/s/ THOMAS M. MONTGOMERY
		Name: Thomas M. Montgomery
		Title: Senior Vice President - Comptroller

AMETEK Announces Record Third Quarter Results and Raises 2021 Guidance

Berwyn, Pa., Nov. 2, 2021 – AMETEK, Inc. (NYSE: AME) today announced its financial results for the third quarter ended September 30, 2021.

AMETEK’s third quarter 2021 sales were a record $1.44 billion, a 28% increase over the third quarter of 2020, with organic sales growth of 17%. Operating income increased 25% to a record $337.6 million and operating margins were 23.4% with strong core operating margin expansion.

On a GAAP basis, third quarter earnings per diluted share were $1.10. Adjusted earnings were a record $1.26 per diluted share, up 25% versus the prior year’s adjusted results. Adjusted earnings adds back non-cash, after-tax, acquisition-related intangible amortization of $0.16 per diluted share. A reconciliation of reported GAAP results to adjusted results is included in the financial tables accompanying this release and on the AMETEK website.

“AMETEK’s results in the quarter were outstanding,” commented David A. Zapico, AMETEK Chairman and Chief Executive Officer. “Our businesses delivered record results which exceeded our expectations despite a challenging operating environment. Order growth remains strong and broad-based resulting in a record $2.6 billion backlog. Given this performance, we are again raising our sales and earnings guidance for the full year.”

Electronic Instruments Group (EIG)

Third quarter EIG sales were a record $981.8 million, up 31% compared to last year’s third quarter. EIG’s operating income in the quarter was up 20% to a record $245.1 million, and operating margins were 25.0%.

“EIG performed extremely well in the quarter delivering record sales and operating income driven by strong organic sales growth and the contribution from recent acquisitions,” noted Mr. Zapico. “Sales growth remains robust across our businesses reflecting continued strengthening in our end markets.”

Electromechanical Group (EMG)

EMG sales in the third quarter were $458.9 million, an increase of 21% over the third quarter of 2020. Operating income for EMG increased 36% over the prior-year period to a record $114.6 million, and operating margins were up 270 basis points to a record 25.0%.

“EMG had an impressive quarter with strong sales growth and outstanding operating performance,” commented Mr. Zapico. “Our EMG businesses delivered exceptional results with broad-based sales growth, operating income up 36% over the prior year, and record level operating margins.”

“Our businesses continue to perform exceedingly well in a challenging environment. Our success reflects the hard work and commitment of all AMETEK colleagues worldwide as well as the power of the AMETEK Growth Model. Our differentiated businesses, diversified market exposures and proven operating model provide us the ability to drive long-term, sustainable growth,” continued Mr. Zapico.

“Following our third quarter results, we are increasing our guidance for the year. For 2021, we now expect overall sales to be up in the low 20% range with organic sales up low double digits on a percentage basis versus 2020. Adjusted earnings per diluted share are expected to be in the range of $4.76 to $4.78 an increase of 21% over the prior year comparable basis. This is an increase from our previous adjusted earnings guidance range of $4.62 to $4.68 per diluted share," he added.

"We expect overall sales in the fourth quarter to be up in the low 20% range compared to the fourth quarter of 2020. Adjusted earnings per diluted share are anticipated to be in the range of $1.28 to $1.30, up 19% to 20% over the same period in 2020," concluded Mr. Zapico.

AMETEK will webcast its third quarter 2021 investor conference call on Tuesday, November 2, 2021, beginning at 8:30 AM ET. The live audio webcast will be available and later archived in the Investors section of www.ametek.com.

AMETEK is a leading global manufacturer of electronic instruments and electromechanical devices with annualized sales of $5.5 billion. The AMETEK Growth Model integrates the Four Growth Strategies - Operational Excellence, New Product Development, Global and Market Expansion, and Strategic Acquisitions - with a disciplined focus on cash generation and capital deployment. AMETEK's objective is double-digit percentage growth in earnings per share over the business cycle and a superior return on total capital. The common stock of AMETEK is a component of the S&P 500.

Forward-looking Information

Statements in this news release relating to future events, such as AMETEK’s expected business and financial performance are "forward-looking statements." Forward-looking statements are subject to various factors and uncertainties that may cause actual results to differ significantly from expectations. These factors and uncertainties include risks related to COVID-19 and its potential impact on AMETEK’s operations, supply chain, and demand across key end markets; AMETEK’s ability to consummate and successfully integrate future acquisitions; risks with international sales and operations, including supply chain disruptions; AMETEK’s ability to successfully develop new products, open new facilities or transfer product lines; the price and availability of raw materials; compliance with government regulations, including environmental regulations; changes in the competitive environment or the effects of competition in our markets; the ability to maintain adequate liquidity and financing sources; and general economic conditions affecting the industries we serve. A detailed discussion of these and other factors that may affect our future results is contained in AMETEK’s filings with the U.S. Securities and Exchange Commission, including its most recent reports on Form 10-K, 10-Q and 8-K. AMETEK disclaims any intention or obligation to update or revise any forward-looking statements.

Vice President, Investor Relations

Berwyn, Pennsylvania 19312

kevin.coleman@ametek.com

Consolidated Statement of Income

(In thousands, except per share amounts)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net sales	$	1,440,681	$	1,126,942	$	4,042,769	$	3,341,082
Cost of sales	949,402		732,705		2,651,506		2,226,547
Selling, general and administrative	153,716		123,496		443,744		384,764
Total operating expenses	1,103,118		856,201		3,095,250		2,611,311
Operating income	337,563		270,741		947,519		729,771
Interest expense	(20,476)		(21,187)		(59,865)		(66,597)
Other income (expense), net	2,581		(1,479)		(3,775)		142,428
Income before income taxes	319,668		248,075		883,879		805,602
Provision for income taxes	62,208		43,494		175,507		154,188
Net income	$	257,460	$	204,581	$	708,372	$	651,414
Diluted earnings per share	$	1.10	$	0.88	$	3.04	$	2.82
Basic earnings per share	$	1.11	$	0.89	$	3.07	$	2.84
Weighted average common shares outstanding:
Diluted shares	233,000		231,460		232,712		230,904
Basic shares	231,171		229,576		230,811		229,254
Dividends per share	$	0.20	$	0.18	$	0.60	$	0.54

Information by Business Segment


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net sales:
Electronic Instruments	$	981,815	$	748,372	$	2,706,673	$	2,170,479
Electromechanical	458,866		378,570		1,336,096		1,170,603
Consolidated net sales	$	1,440,681	$	1,126,942	$	4,042,769	$	3,341,082

Operating income:
Segment operating income:
Electronic Instruments	$	245,118	$	203,749	$	678,652	$	534,613
Electromechanical	114,571		84,303		332,038		245,154
Total segment operating income	359,689		288,052		1,010,690		779,767
Corporate administrative expenses	(22,126)		(17,311)		(63,171)		(49,996)
Consolidated operating income	$	337,563	$	270,741	$	947,519	$	729,771

Condensed Consolidated Balance Sheet


	September 30,		December 31,
	2021		2020
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	358,676	$	1,212,822
Receivables, net	768,386		597,472
Inventories, net	738,688		559,171
Other current assets	196,065		153,005
Total current assets	2,061,815		2,522,470

Property, plant and equipment, net	597,488		526,530
Right of use asset, net	169,075		167,233
Goodwill	5,180,999		4,224,906
Other intangibles, investments and other assets	3,670,318		2,916,344
Total assets	$	11,679,695	$	10,357,483

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt, net	$	415,667	$	132,284
Accounts payable and accruals	1,218,159		943,631
Total current liabilities	1,633,826		1,075,915

Long-term debt, net	2,238,920		2,281,441
Deferred income taxes and other long-term liabilities	1,248,553		1,050,781
Stockholders' equity	6,558,396		5,949,346
Total liabilities and stockholders' equity	$	11,679,695	$	10,357,483

AMETEK, Inc.

Reconciliations of GAAP to Non-GAAP Financial Measures

(Unaudited)


ADJUSTED DILUTED EARNINGS PER SHARE
	Diluted Earnings Per Share
	Three Months Ended
	September 30,
	2021		2020

Diluted earnings per share (GAAP)	$	1.10	$	0.88
Pretax amortization of acquisition-related intangible assets	0.21		0.17
Income tax benefit on amortization of acquisition-related intangible assets	(0.05)		(0.04)





Adjusted Diluted earnings per share (Non-GAAP)	$	1.26	$	1.01


	Forecasted Diluted Earnings Per Share
	Three Months Ended				Year Ended
	December 31, 2021				December 31, 2021
	Low		High		Low		High


Diluted earnings per share (GAAP)	$	1.12	$	1.14	$	4.16	$	4.18
Pretax amortization of acquisition-related intangible assets	0.21		0.21		0.79		0.79
Income tax benefit on amortization of acquisition-related intangible assets	(0.05)		(0.05)		(0.19)		(0.19)
Adjusted Diluted earnings per share (Non-GAAP)	$	1.28	$	1.30	$	4.76	$	4.78

Use of Non-GAAP Financial Information

The Company supplements its consolidated financial statements presented on a U.S. generally accepted accounting principles (“GAAP”) basis with certain non-GAAP financial information to provide investors with greater insight, increased transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making. Reconciliation of non-GAAP measures to their most directly comparable GAAP measures are included in the accompanying financial tables. These non-GAAP financial measures should be considered in addition to, and not as a replacement for, or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies.

The Company believes that these measures provide useful information to investors by reflecting additional ways of viewing AMETEK’s operations that, when reconciled to the comparable GAAP measure, helps our investors to better understand the long-term profitability trends of our business, and facilitates easier comparisons of our profitability to prior and future periods and to our peers.

Cover	Nov. 02, 2021
Cover [Abstract]
Document Type	8-K
Document Period End Date	Nov. 02, 2021
Entity Registrant Name	AMETEK, Inc.
Entity Incorporation, State or Country Code	DE
Entity File Number	1-12981
Entity Tax Identification Number	14-1682544
Entity Address, Address Line One	1100 Cassatt Road
Entity Address, City or Town	Berwyn,
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19312
City Area Code	610
Local Phone Number	647-2121
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.01 Par Value (voting)
Trading Symbol	AME
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Entity Central Index Key	0001037868
Amendment Flag	false