EX-99.1 2 a07-19728_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

 

 

2007 SECOND QUARTER RECORD RESULTS

REPORTED BY AMPHENOL CORPORATION

 

 

Wallingford, Connecticut.  July 18, 2007.  Amphenol Corporation (NYSE-APH) reported today that second quarter 2007 diluted earnings per share increased 31% to $.46 compared to $.35 per share for the comparable 2006 period before flood-related charges.  Such per share amount for 2006 excludes the effect of a $15 million one-time charge relating to previously announced flood damage at the Company’s Sidney, New York facility.  Including such charge, diluted earnings per share for the second quarter 2006 was $.29.  (All per share amounts included herein have been adjusted to reflect the Company’s 2 for 1 stock split effective in March 2007.)  Sales for the second quarter 2007 increased 14% to $688.8 million compared to $606.6 million for the 2006 period.  Currency translation had the effect of increasing sales by approximately $13.0 million in the second quarter 2007 compared to the 2006 period.

For the six months ended June 30, 2007, diluted earnings per share was $.89 compared to $.66 per share before flood-related charges for the 2006 period.  Including flood-related charges, earnings per share for the 2006 period was $.60.  Sales for the six months ended June 30, 2007 were $1,339.9 million compared to $1,175.6 million for the 2006 period.  Currency translation had the effect of increasing sales by approximately $27.5 million for the six month 2007 period when compared to the 2006 period.

Amphenol Chairman and CEO, Martin H. Loeffler, stated:  “We are pleased to close a record second quarter with sales of $689 million and earnings per share of $.46.  Sales grew 14% over last year.  Growth was broad based reflecting the benefits of a diverse market footprint with particular strength in the military and commercial aerospace and automotive markets, and included all geographic regions.  Both segments of the business performed well in the quarter.  The interconnect segment of our business (approximately 90% of sales) grew 14% over last year and the cable segment of our business (approximately 10% of sales) grew 8%.  Our strong growth reflects our continued commitment to develop performance enhancing technologies for our customers in all of our markets.”



 

“In addition to excellent overall top line growth, profitability and cash flow continued to be strong.  Amphenol achieved excellent operating leverage in the quarter with an operating income margin of 19.4% in the second quarter compared to 17.8% in the second quarter of 2006 (before flood-related charges for the 2006 period).  The combination of strong top line growth focused on value added application specific products together with a continued strong focus on all elements of cost, contributed significantly in the quarter and provides a solid base for future performance.  Furthermore, net income, that is income after interest expense and taxes, was approximately 12% of sales, another indication of the Company’s excellent profitability.  The Company continues to be an excellent generator of cash.  Cash flow from operations remained strong in the quarter at $83 million.”

“The second quarter was good in all respects.  I am very proud of our organization as we continue to execute well.  We have an outstanding management team, excellent technological capabilities, leading positions in diversified markets and an increasing presence with the major companies in these markets.  We are the world’s third largest interconnect company with an expanded platform for creating value.  Assuming a continuation of the current economic climate and relatively stable currency exchange rates, we are raising our guidance for the full year 2007 to achieve revenues and EPS in the range of $2,710 million to $2,750 million and $1.79 to $1.83, respectively, an increase of 10% to 11% and 22% to 24% over 2006 revenues and EPS before flood-related charges, respectively.  This compares to the Company’s previous guidance of revenues and EPS in the range of $2,670 million to $2,715 million and $1.75 to $1.80, respectively.  For the third quarter 2007 we expect revenues in the range of $680 million to $695 million and EPS in the range of $.44 and $.46, respectively.  We are very excited about the future and confident in the ability of our excellent organization to meet the challenges presented and to take advantage of the many opportunities in front of us.”

The Company will host a conference call to discuss its second quarter results at 1:00 PM (ET) July 18, 2007.  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 20, 2007.  The replay numbers are as follows:  toll free dial-in number is 800-793-2380 and International dial-in number is 203-369-3339.

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.  Amphenol has a diversified presence as a leader in high growth segments 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, 2006, 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

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2007

 

2006

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

688,836

 

$

606,598

 

$

1,339,920

 

$

1,175,589

 

 

 

 

 

 

 

 

 

 

 

Cost of sales (1)

 

463,212

 

413,898

 

903,728

 

803,074

 

 

 

 

 

 

 

 

 

 

 

Gross profit (1)

 

225,624

 

192,700

 

436,192

 

372,515

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense (1)

 

92,211

 

84,690

 

180,182

 

166,114

 

Casualty loss related to flood

 

—

 

15,000

 

—

 

15,000

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

133,413

 

93,010

 

256,010

 

191,401

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(8,979

)

(10,002

)

(18,021

)

(20,186

)

Other expenses, net

 

(3,639

)

(3,394

)

(6,788

)

(6,118

)

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

120,795

 

79,614

 

231,201

 

165,097

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

(36,799

)

(26,273

)

(69,501

)

(54,482

)

 

 

 

 

 

 

 

 

 

 

Net income

 

$

83,996

 

$

53,341

 

$

161,700

 

$

110,615

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share — Basic (2)

 

$

0.47

 

$

0.30

 

$

0.91

 

$

0.62

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding — Basic (2)

 

178,624,152

 

179,089,062

 

178,379,815

 

178,992,230

 

 

 

 

 

 

 

 

 

 

 

Net income per common share — Diluted (2) (3)

 

$

0.46

 

$

0.29

 

$

0.89

 

$

0.60

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding — Diluted (2)

 

182,686,329

 

183,481,596

 

182,598,444

 

183,271,876

 

(1) — As described in the Company’s 2006 Form 10-K, the Company changed the presentation of the Consolidated Statements of Income to remove the separate caption for depreciation and amortization and include depreciation and amortization expense in Cost of sales and Selling, general & administrative expense allowing for Gross profit to be presented.

(2) — On January 17, 2007, the Company announced a 2-for-1 stock split that was effective for stockholders of record as of March 16, 2007. The additional shares were distributed on March 30, 2007 and the share information included herein reflects the effect of such stock split. 

(3) — Excluding the effect of the flood-related casualty loss, the diluted earnings per share for the three and six months ended June 30, 2006, was $0.35 and $0.66 respectively.



AMPHENOL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(dollars in thousands)

 

 

 

June 30,

 

December 31,

 

 

 

2007

 

2006

 

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

110,668

 

$

74,135

 

Accounts receivable, less allowance for doubtful accounts of $13,817 and $14,677, respectively.

 

427,898

 

383,858

 

Inventories

 

425,903

 

416,499

 

Prepaid expenses and other assets

 

77,076

 

60,113

 

 

 

 

 

 

 

Total current assets

 

1,041,545

 

934,605

 

 

 

 

 

 

 

Land and depreciable assets, less  accumulated depreciation of  $439,244 and $404,401, respectively.

 

291,604

 

274,143

 

Deferred debt issuance costs

 

2,588

 

2,947

 

Goodwill

 

946,346

 

926,242

 

Other assets

 

50,451

 

57,460

 

 

 

 

 

 

 

 

 

$

2,332,534

 

$

2,195,397

 

 

 

 

 

 

 

LIABILITIES & SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

232,358

 

$

234,868

 

Accrued interest

 

4,144

 

4,156

 

Accrued salaries, wages and employee benefits

 

48,962

 

53,158

 

Other accrued expenses

 

96,581

 

149,545

 

Dividends payable

 

2,696

 

2,691

 

Current portion of long-term debt

 

2,170

 

3,241

 

 

 

 

 

 

 

Total current liabilities

 

386,911

 

447,659

 

 

 

 

 

 

 

Long-term debt

 

683,802

 

677,173

 

Accrued pension and post employment  benefit obligations.

 

145,598

 

138,312

 

Other liabilities

 

56,667

 

29,259

 

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

Common stock

 

180

 

178

 

Additional paid-in deficit

 

(75,702

)

(119,420

)

Accumulated earnings

 

1,245,514

 

1,142,536

 

Accumulated other comprehensive loss

 

(72,472

)

(81,084

)

Treasury stock, at cost

 

(37,964

)

(39,216

)

 

 

 

 

 

 

Total shareholders’ equity

 

1,059,556

 

902,994

 

 

 

 

 

 

 

 

 

$

2,332,534

 

$

2,195,397

 

 



AMPHENOL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(Unaudited)

(dollars in thousands)

 

 

 

Six months ended

 

 

 

June 30,

 

 

 

2007

 

2006

 

 

 

 

 

 

 

Net income

 

$

161,700

 

$

110,615

 

Adjustments for cash from operations:

 

 

 

 

 

Depreciation and amortization

 

39,684

 

36,480

 

Amortization of deferred debt issue costs

 

359

 

262

 

Stock-based compensation

 

5,992

 

3,987

 

Casualty loss related to flood, net of insurance recoveries

 

—

 

15,000

 

Net change in non-cash components of working capital.

 

(72,569

)

(37,152

)

Other long term assets and liabilities

 

10,512

 

13,783

 

 

 

 

 

 

 

Cash provided by operations

 

145,678

 

142,975

 

 

 

 

 

 

 

Cash flow from investing activities:

 

 

 

 

 

Capital additions, net

 

(51,432

)

(33,931

)

Proceeds from disposal of fixed assets

 

500

 

1,844

 

Purchase of short term investments

 

(4,208

)

—

 

Investments in acquisitions

 

(37,579

)

(14,848

)

 

 

 

 

 

 

Cash flow used in investing activities

 

(92,719

)

(46,935

)

 

 

 

 

 

 

Cash flow from financing activities:

 

 

 

 

 

Net change in borrowings under revolving credit facilities

 

5,510

 

(76,157

)

Purchase of treasury stock

 

(51,947

)

(20,216

)

Proceeds from exercise of stock options

 

19,650

 

9,763

 

Excess tax benefits from stock-based payment arrangements

 

15,717

 

3,185

 

Dividend payments

 

(5,356

)

(5,364

)

 

 

 

 

 

 

Cash flow used in financing activities

 

(16,426

)

(88,789

)

 

 

 

 

 

 

Net change in cash and cash equivalents

 

36,533

 

7,251

 

Cash and cash equivalents balance, beginning of period

 

74,135

 

38,669

 

 

 

 

 

 

 

Cash and cash equivalents balance, end of period

 

$ 

110,668

 

$ 

45,920

 

 

 

 

 

 

 

Cash paid during the year for:

 

 

 

 

 

Interest

 

17,762

 

20,774

 

Income taxes paid, net of refunds

 

52,925

 

46,700

 

 



 

AMPHENOL CORPORATION

SEGMENT INFORMATION

(dollars in thousands)

(Unaudited)

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2007

 

2006

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

Trade Sales:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

618,250

 

$

541,132

 

$

1,203,515

 

$

1,050,190

 

Cable Products

 

70,586

 

65,466

 

136,405

 

125,399

 

Consolidated

 

$

688,836

 

$

606,598

 

$

1,339,920

 

$

1,175,589

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

134,212

 

$

108,559

 

$

259,093

 

$

208,428

 

Cable Products

 

8,932

 

7,793

 

16,853

 

14,084

 

Stock-based compensation expense

 

(3,003

)

(2,143

)

(5,993

)

(3,924

)

Other operating expenses

 

(6,728

)

(6,199

)

(13,943

)

(12,187

)

Casualty loss related to flood

 

—

 

(15,000

)

—

 

(15,000

)

Consolidated

 

$

133,413

 

$

93,010

 

$

256,010

 

$

191,401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ROS%:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

21.7

%

20.1

%

21.5

%

19.8

%

Cable Products

 

12.7

%

11.9

%

12.4

%

11.2

%

Corporate — Stock-based compensation

 

-0.4

%

-0.4

%

-0.4

%

-0.3

%

Corporate — all other

 

-1.0

%

-1.0

%

-1.0

%

-1.0

%

 

 

 

 

 

 

 

 

 

 

Consolidated excluding flood-related charges

 

19.4

%

17.8

%

19.1

%

17.6

%

Consolidated

 

19.4

%

15.3

%

19.1

%

16.3

%