EX-99.1 3 a05-12460_1ex99d1.htm EX-99.1

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

 

Senior Vice President and

 

Chief Financial Officer

 

203/265-8630

 

www.amphenol.com

 

2005 SECOND QUARTER AND SIX MONTHS RECORD RESULTS

AND ANNOUNCEMENT OF REFINANCING

REPORTED BY AMPHENOL CORPORATION

 

Wallingford, Connecticut.  July 20, 2005.  Amphenol Corporation (NYSE-APH) reported today that second quarter 2005 diluted earnings per share increased 29% to a record $.58 compared to $.45 per share for the comparable 2004 period.  Sales for the second quarter 2005 increased 15% to $443,642,000 compared to $387,119,000 for the 2004 period.  Currency translation had the effect of increasing sales by approximately $7.5 million in the second quarter 2005 compared to the 2004 period.

 

For the six months ended June 30, 2005, diluted earnings per share was $1.09 compared to $.85 per share for the 2004 period.  Sales for the six months ended June 30, 2005 were $853,037,000 compared to $742,380,000 for the 2004 period.  Currency translation had the effect of increasing sales by approximately $15.2 million for the six month 2005 period when compared to the 2004 period.

 

In addition, on July 15, 2005 the Company completed a refinancing of its senior credit facilities.  The new senior credit agreement consists of a $750 million unsecured five year

 


 

revolving credit facility, of which approximately $440 million was drawn at closing.  The net proceeds from the refinancing were used to repay all amounts outstanding under the Company’s previous senior secured credit facilities and for working capital purposes. In conjunction therewith, the Company incurred one-time expenses for the early extinguishment of debt totaling approximately $2.5 million (before tax benefit of $.8 million) or $.02 per share after tax.  Such one-time expenses will be reported in the third quarter and include the write-off of unamortized deferred debt issuance costs less the gain on the termination of related interest rate swap agreements.

 

Amphenol Chairman and CEO, Martin H. Loeffler, stated:  “I am extremely pleased with our second quarter results.  Sales were up 15% compared to last year’s second quarter to a record $443,642,000.  The operating income margin increased from 17.8% to 19.4%.  The interconnect products segment of our business, which represents 88% of our sales, was up a strong 16% over last year with excellent profitability.  The growth was broad based across all of our end markets and included all major geographic regions.  Growth was especially strong in the wireless infrastructure, industrial and military and aerospace markets.  The excellent top line results reflect our continuing development of new application specific solutions and value added products for our customers, our increased worldwide presence with the leading companies in our target markets and acquisitions.  The improved profitability in the interconnect business is also attributable to the continuing development of new application specific products as well as higher volumes and ongoing programs of cost control.  The cable products segment of our business, which is primarily for broadband cable television networks and represents 12% of our sales, was up 7% over the prior year.”

 

2


 

“In addition to excellent overall top line growth, profitability and cash flow continued to be strong.  Earnings per share for the quarter were up 29% over last year, representing the fourteenth consecutive quarterly increase and a new record for the Company.  Furthermore, net income, that is income after interest expense and taxes, exceeded 11% of sales, another indication of the Company’s excellent profitability.  Cash flow from operations was also strong at $49 million for the quarter.”

 

“In addition, in May, the Company completed the acquisition of a United States manufacturer of radio frequency interconnect products for military and aerospace related markets.  The Company has annual sales of approximately $20 million.  Including this most recent acquisition, the Company has completed four acquisitions since the beginning of the year.  We are excited about the growth opportunities presented by these excellent additions.”

 

“We are also pleased to have completed the debt refinancing.  The new five year facility is unsecured and has improved pricing in recognition of the Company’s strong operating performance, substantial deleveraging and the achievement of an investment grade credit rating from a major rating agency.  In addition, the new facility will provide significantly increased flexibility to pursue additional opportunities to expand and grow our business.”

 

“It was a good quarter in all respects.  I am very proud of our organization as we continue to execute well.  We have a strong position in excellent and diversified markets and continue to increase our presence with the major companies in these markets.  Assuming a continuation of the current economic climate and relatively stable currency exchange rates, we are revising upward our expectation for full year 2005 results to a sales increase

 

3


 

in the range of 13% to 15% and earnings per share increase in the range of 23% to 26%; this compares to our prior estimates of sales and earnings per share increases of 11% to 14% and 20% to 25%, respectively.  We expect third quarter results in the range of $435 million to $445 million and $.56 to $.58 for sales and EPS respectively.  This guidance excludes the impact in the third quarter of 2005 of one-time expenses associated with the refinancing of $.02 per share.  We are very confident that we are in excellent markets with a great organization, and we are very excited about the future.”

 

The Company will host a conference call to discuss its second quarter results at 1:00 PM (ET) July 20, 2005.  The toll free dial-in number to participate in this call is 888-395-9624; International dial-in number 517-623-4547; Passcode: Reardon.  There will be a replay available until 5:00 PM (ET) on Friday, July 22, 2005.  If you are unable to participate on the call the replay numbers are as follows:  the toll free dial-in number is 800-759-4401 and International dial-in replay number is 203-369-3418

 

A live broadcast as well as a replay will also be available on the Internet at http://www.amphenol.com/index.cfm/fuseaction/financial.webcasts.

 

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 and Asia and sold by a worldwide sales and marketing organization.  The primary end markets for the Company’s products are communication systems for the converging technologies of voice, video and data communications, industrial/automotive and military/aerospace applications.

 

4


 

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 1 of the Company’s Form 10-K for the year ended December 31, 2004, 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.

 

5


 

AMPHENOL CORPORATION

 

FINANCIAL SUMMARY

(Unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2005

 

2004(1)

 

2005

 

2004(1)

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

443,642,000

 

$

387,119,000

 

$

853,037,000

 

$

742,380,000

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

52,056,000

 

$

40,367,000

 

$

98,432,000

 

$

76,025,000

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – basic

 

$

.59

 

$

.46

 

$

1.12

 

$

.86

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding – basic

 

88,362,802

 

89,174,604

 

88,190,725

 

88,076,203

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – diluted

 

$

.58

 

$

.45

 

$

1.09

 

$

.85

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding – diluted

 

90,272,291

 

89,864,734

 

90,089,494

 

89,871,449

 

 

(1)           Per share and share amounts have been adjusted to reflect the Company’s 2 for 1 stock split effective in March 2004.

 

6


 

AMPHENOL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(dollars in thousands, except per share data)

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

443,642

 

$

387,119

 

$

853,037

 

$

742,380

 

Costs and Expenses:

 

 

 

 

 

 

 

 

 

Cost of sales, excluding depreciation and amortization

 

282,421

 

254,031

 

545,846

 

487,261

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

12,699

 

9,733

 

23,513

 

19,166

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense

 

62,476

 

54,301

 

120,299

 

105,616

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

86,046

 

69,054

 

163,379

 

130,337

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(5,775

)

(5,673

)

(11,178

)

(11,428

)

Other expenses, net

 

(1,398

)

(2,219

)

(3,062

)

(3,719

)

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

78,873

 

61,162

 

149,139

 

115,190

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

(26,817

)

(20,795

)

(50,707

)

(39,165

)

 

 

 

 

 

 

 

 

 

 

Net income

 

$

52,056

 

$

40,367

 

$

98,432

 

$

76,025

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Basic

 

$

0.59

 

$

0.46

 

$

1.12

 

$

0.86

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding - Basic

 

88,362,802

 

88,174,604

 

88,190,725

 

88,076,203

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Diluted

 

$

0.58

 

$

0.45

 

$

1.09

 

$

0.85

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding - Diluted

 

90,272,291

 

89,864,734

 

90,089,494

 

89,871,449

 

 


 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(dollars in thousands)

 

 

 

June 30

 

Dec. 31,

 

 

 

2005

 

2004

 

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and short-term cash investments

 

$

25,462

 

$

30,172

 

Accounts receivable, less allowance for doubtful accounts of $8,868 and $8,666, respectively

 

232,819

 

214,158

 

Inventories

 

268,811

 

247,303

 

Prepaid expenses and other assets

 

41,459

 

37,382

 

 

 

 

 

 

 

Total current assets

 

568,551

 

529,015

 

 

 

 

 

 

 

Land and depreciable assets, less accumulated depreciation of $345,311 and $349,255, respectively

 

207,565

 

197,753

 

Deferred debt issuance costs

 

5,722

 

6,451

 

Goodwill

 

640,393

 

545,411

 

Deferred taxes and other assets

 

28,683

 

28,081

 

 

 

 

 

 

 

 

 

$

1,450,914

 

$

1,306,711

 

 

 

 

 

 

 

LIABILITIES & SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

150,131

 

$

134,856

 

Accrued interest

 

2,022

 

2,183

 

Accrued salaries, wages and employee benefits

 

37,451

 

38,535

 

Other accrued expenses

 

66,255

 

85,089

 

Dividends payable

 

2,705

 

—

 

Current portion of long-term debt

 

18,993

 

16,909

 

 

 

 

 

 

 

Total current liabilities

 

277,557

 

277,572

 

 

 

 

 

 

 

Long-term debt

 

458,412

 

432,144

 

Accrued pension and post employment benefit obligations

 

100,914

 

102,050

 

Other liabilities

 

32,023

 

13,341

 

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

Common stock

 

88

 

88

 

Additional paid-in deficit

 

(183,584

)

(207,504

)

Accumulated earnings

 

882,825

 

789,741

 

Accumulated other comprehensive loss

 

(66,955

)

(55,078

)

Treasury stock, at cost

 

(50,366

)

(45,643

)

 

 

 

 

 

 

Total shareholders’ equity

 

582,008

 

481,604

 

 

 

 

 

 

 

 

 

$

1,450,914

 

$

1,306,711

 

 


 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(Unaudited)

(dollars in thousands)

 

 

 

Six months ended

 

 

 

June 30,

 

 

 

2005

 

2004

 

 

 

 

 

 

 

Net income

 

$

98,432

 

$

76,025

 

Adjustments for cash from operations:

 

 

 

 

 

Depreciation and amortization

 

23,513

 

19,166

 

Amortization of deferred debt issue costs

 

729

 

711

 

Net change in non-cash components of working capital

 

(41,234

)

(22,295

)

Other long term assets and liabilities

 

6,257

 

6,315

 

 

 

 

 

 

 

Cash provided by operations

 

87,697

 

79,922

 

 

 

 

 

 

 

Cash flow from investing activities:

 

 

 

 

 

Capital additions, net

 

(27,913

)

(18,513

)

Investments in acquisitions

 

(100,178

)

(1,943

)

 

 

 

 

 

 

Cash flow used by investing activities

 

(128,091

)

(20,456

)

 

 

 

 

 

 

Cash flow from financing activities:

 

 

 

 

 

Net change in borrowings under revolving credit facilities

 

28,007

 

(4,065

)

Decrease in borrowings under Bank Agreement

 

(2,000

)

(61,000

)

Purchase of treasury stock

 

(4,723

)

(16,174

)

Proceeds from exercise of stock options including tax benefit

 

17,043

 

16,867

 

Dividend payments

 

(2,643

)

—

 

 

 

 

 

 

 

Cash flow provided by (used by) financing activities

 

35,684

 

(64,372

)

 

 

 

 

 

 

Net change in cash and short-term cash investments

 

(4,710

)

(4,906

)

Cash and short-term cash investments balance, beginning of period

 

30,172

 

23,533

 

 

 

 

 

 

 

Cash and short-term cash investments balance, end of period

 

$

25,462

 

$

18,627

 

 

 

 

 

 

 

Net cash paid during the year for:

 

 

 

 

 

Interest

 

10,611

 

11,240

 

Taxes

 

48,384

 

26,560

 

 


 

AMPHENOL CORPORATION

SEGMENT INFORMATION

(In thousands)

(Unaudited)

 

 

 

Three months ended
June 30,

 

Six months ended
June 30,

 

 

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

Trade Sales:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

389,163

 

$

336,362

 

$

750,318

 

$

647,035

 

Cable Products

 

54,479

 

50,757

 

102,719

 

95,345

 

Consolidated

 

$

443,642

 

$

387,119

 

$

853,037

 

$

742,380

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

85,327

 

$

68,283

 

$

161,118

 

$

128,883

 

Cable Products

 

7,044

 

5,927

 

13,219

 

11,338

 

Corporate

 

(6,325

)

(5,156

)

(10,958

)

(9,884

)

Consolidated

 

$

86,046

 

$

69,054

 

$

163,379

 

$

130,337

 

 

 

 

 

 

 

 

 

 

 

ROS%:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

21.9

%

20.3

%

21.5

%

19.9

%

Cable Products

 

12.9

%

11.7

%

12.9

%

11.9

%

Consolidated

 

19.4

%

17.8

%

19.2

%

17.6

%