EX-99.1 2 a07-26867_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 THIRD QUARTER RECORD RESULTS

REPORTED BY AMPHENOL CORPORATION

 

Wallingford, Connecticut. October 17, 2007. Amphenol Corporation (NYSE-APH) reported today that third quarter 2007 diluted earnings per share increased 28% to $.50 compared to $.39 per share for the comparable 2006 period before flood-related charges. Such per share amount for 2006 excludes the effect of a $5.7 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 third quarter 2006 was $.36. (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 third quarter 2007 increased 15% to $733.9 million compared to $636.4 million for the 2006 period. Currency translation had the effect of increasing sales by approximately $16.3 million in the third quarter 2007 compared to the 2006 period.

 

For the nine months ended September 30, 2007, diluted earnings per share was $1.39 compared to $1.04 per share before flood-related charges for the 2006 period. Including flood-related charges, diluted earnings per share for the 2006 period was $.97. Sales for the nine months ended September 30, 2007 were $2,073.8 million compared to $1,812.0 million for the 2006 period. Currency translation had the effect of increasing sales by approximately $43.8 million for the nine month 2007 period when compared to the 2006 period.

 

Amphenol Chairman and CEO, Martin H. Loeffler, stated:  “We are pleased to close a record third quarter with sales of $734 million and earnings per share of $.50. Sales grew 15% over last year. Growth was broad based reflecting the benefits of a diverse market footprint with particular strength in the military and commercial aerospace, automotive and mobile device markets reflecting the impact of multiple new program ramp ups. All geographic regions of the business performed well in the quarter. During the quarter, consistent with our strategy, the Company completed the acquisition of a United States manufacturer of interconnect products for the geophysical exploration industry with annual sales of approximately $35 million. We are excited

 


 

about the growth potential created by this excellent addition. Our strong organic 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 19.5% compared to 18.0% in the third quarter of 2006 (before flood-related charges for the 2006 period). The combination of strong top line growth based on value added application specific products together with a continued strong focus on all elements of cost contributed significantly to our results in the quarter and provides a solid base for future performance. Furthermore, net income exceeded 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 $109 million.”

 

“The third 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 customers 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 $2,814 million to $2,829 million and $1.89 to $1.91, respectively, an increase of 14% and 29% to 30% 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 $2,710 million to $2,750 million and $1.79 to $1.83, respectively. For the fourth quarter 2007 we expect revenues in the range of $740 million to $755 million and EPS in the range of $.50 and $.52, 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) October 17, 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 7:00 PM (ET) on Friday, October 19, 2007. The replay numbers are as follows:  toll free dial-in number is 800-873-2156 and International dial-in number is 402-220-4765.

 

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
September 30,

 

Nine months ended
September 30,

 

 

 

2007

 

2006

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

733,851

 

$

636,418

 

$

2,073,771

 

$

1,812,007

 

 

 

 

 

 

 

 

 

 

 

Cost of sales (1)

 

494,709

 

434,684

 

1,398,437

 

1,237,758

 

 

 

 

 

 

 

 

 

 

 

Gross profit (1)

 

239,142

 

201,734

 

675,334

 

574,249

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense (1)

 

95,792

 

87,430

 

275,974

 

253,544

 

Casualty loss related to flood

 

—

 

5,747

 

—

 

20,747

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

143,350

 

108,557

 

399,360

 

299,958

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(9,371

)

(9,308

)

(27,392

)

(29,494

)

Other expenses, net

 

(4,678

)

(3,590

)

(11,466

)

(9,708

)

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

129,301

 

95,659

 

360,502

 

260,756

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

(37,800

)

(28,960

)

(107,301

)

(83,442

)

 

 

 

 

 

 

 

 

 

 

Net income

 

$

91,501

 

$

66,699

 

$

253,201

 

$

177,314

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Basic (2)

 

$

0.51

 

$

0.37

 

$

1.42

 

$

0.99

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding - Basic (2)

 

178,405,425

 

178,844,558

 

178,388,446

 

178,942,464

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.50

 

$

0.36

 

$

1.39

 

$

0.97

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding - Diluted (2)

 

182,210,197

 

183,339,568

 

182,467,606

 

183,294,688

 

 

(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 nine months ended September 30, 2006, was $0.39 and $1.04 respectively.

 


 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(dollars in thousands)

 

 

 

September 30,
2007

 

December 31,
2006

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

164,587

 

$

74,135

 

Accounts receivable, less allowance for doubtful accounts of $13,383 and $14,677, respectively

 

473,070

 

383,858

 

Inventories

 

447,116

 

416,499

 

Prepaid expenses and other assets

 

80,580

 

60,113

 

 

 

 

 

 

 

Total current assets

 

1,165,353

 

934,605

 

 

 

 

 

 

 

Land and depreciable assets, less accumulated depreciation of $464,437 and $404,401, respectively

 

304,392

 

274,143

 

Deferred debt issuance costs

 

2,407

 

2,947

 

Goodwill

 

972,524

 

926,242

 

Other assets

 

45,516

 

57,460

 

 

 

 

 

 

 

 

 

$

2,490,192

 

$

2,195,397

 

 

 

 

 

 

 

LIABILITIES & SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

273,559

 

$

234,868

 

Accrued interest

 

4,351

 

4,156

 

Accrued salaries, wages and employee benefits

 

56,216

 

53,158

 

Other accrued expenses

 

110,103

 

149,545

 

Dividends payable

 

2,704

 

2,691

 

Current portion of long-term debt

 

1,462

 

3,241

 

 

 

 

 

 

 

Total current liabilities

 

448,395

 

447,659

 

 

 

 

 

 

 

Long-term debt

 

715,492

 

677,173

 

Accrued pension and post employment benefit obligations

 

132,581

 

138,312

 

Other liabilities

 

58,733

 

29,259

 

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

Common stock

 

180

 

179

 

Additional paid-in deficit

 

(62,646

)

(119,421

)

Accumulated earnings

 

1,334,327

 

1,142,536

 

Accumulated other comprehensive loss

 

(63,773

)

(81,084

)

Treasury stock, at cost

 

(73,097

)

(39,216

)

 

 

 

 

 

 

Total shareholders’ equity

 

1,134,991

 

902,994

 

 

 

 

 

 

 

 

 

$

2,490,192

 

$

2,195,397

 

 


 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(Unaudited)

(dollars in thousands)

 

 

 

Nine months ended
September 30,

 

 

 

2007

 

2006

 

 

 

 

 

 

 

Net income

 

$

253,201

 

$

177,314

 

Adjustments for cash from operations:

 

 

 

 

 

Depreciation and amortization

 

60,393

 

54,729

 

Amortization of deferred debt issue costs

 

540

 

396

 

Stock-based compensation

 

9,265

 

6,880

 

Casualty loss related to flood, net of insurance recoveries

 

—

 

6,045

 

Loss on disposal of fixed assets

 

165

 

472

 

Net change in non-cash components of working capital

 

(65,231

)

(38,320

)

Other long term assets and liabilities

 

(3,457

)

6,473

 

 

 

 

 

 

 

Cash provided by operations

 

254,876

 

213,989

 

 

 

 

 

 

 

Cash flow from investing activities:

 

 

 

 

 

Capital additions, net

 

(76,682

)

(57,523

)

Proceeds from disposal of fixed assets

 

879

 

4,326

 

Purchase of short term investments

 

(4,634

)

—

 

Investments in acquisitions

 

(69,362

)

(18,803

)

 

 

 

 

 

 

Cash flow used in investing activities

 

(149,799

)

(72,000

)

 

 

 

 

 

 

Cash flow from financing activities:

 

 

 

 

 

Net change in borrowings under revolving credit facilities

 

50,667

 

(68,008

)

Decrease in borrowings under bank agreement

 

(14,510

)

(26,154

)

Payment of fees and expenses related to refinancing

 

—

 

(882

)

Purchase of treasury stock

 

(87,080

)

(33,442

)

Proceeds from exercise of stock options

 

25,461

 

13,239

 

Excess tax benefits from stock-based payment arrangements

 

18,873

 

5,397

 

Dividend payments

 

(8,036

)

(8,045

)

 

 

 

 

 

 

Cash flow used in financing activities

 

(14,625

)

(117,895

)

 

 

 

 

 

 

Net change in cash and cash equivalents

 

90,452

 

24,094

 

Cash and cash equivalents balance, beginning of period

 

74,135

 

38,669

 

 

 

 

 

 

 

Cash and cash equivalents balance, end of period

 

$

164,587

 

$

62,763

 

 

 

 

 

 

 

Cash paid during the year for:

 

 

 

 

 

Interest

 

26,791

 

29,906

 

Income taxes paid, net of refunds

 

72,560

 

64,820

 

 


 

AMPHENOL CORPORATION

SEGMENT INFORMATION

(dollars in thousands)

(Unaudited)

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

 

2007

 

2006

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

Trade Sales:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

659,343

 

$

566,522

 

$

1,862,858

 

$

1,616,710

 

Cable Products

 

74,508

 

69,896

 

210,913

 

195,297

 

Consolidated

 

$

733,851

 

$

636,418

 

$

2,073,771

 

$

1,812,007

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

144,453

 

$

115,734

 

$

403,546

 

$

324,163

 

Cable Products

 

9,471

 

8,652

 

26,324

 

22,736

 

Stock-based compensation expense

 

(3,273

)

(2,810

)

(9,265

)

(6,732

)

Other operating expenses

 

(7,301

)

(7,272

)

(21,245

)

(19,462

)

Casualty loss related to flood

 

—

 

(5,747

)

—

 

(20,747

)

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

143,350

 

$

108,557

 

$

399,360

 

$

299,958

 

 

 

 

 

 

 

 

 

 

 

ROS%:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

21.9

%

20.4

%

21.7

%

20.1

%

Cable Products

 

12.7

%

12.4

%

12.5

%

11.6

%

Corporate - Stock-based compensation

 

-0.4

%

-0.4

%

-0.4

%

-0.4

%

Corporate - all other

 

-1.0

%

-1.1

%

-1.0

%

-1.1

%

 

 

 

 

 

 

 

 

 

 

Consolidated excluding flood-related charges

 

19.5

%

18.0

%

19.3

%

17.7

%

Consolidated

 

19.5

%

17.1

%

19.3

%

16.6

%