EX-99.1 2 a08-2234_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

 

 

RECORD FOURTH QUARTER AND FULL YEAR 2007 RESULTS

REPORTED BY AMPHENOL CORPORATION

 

 

Wallingford, Connecticut.  January 17, 2008.  Amphenol Corporation (NYSE-APH) reported today that fourth quarter 2007 diluted earnings per share increased 28% to $.55 compared to $.43 per share for the comparable 2006 period.  (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 fourth quarter 2007 increased 18% to $777.3 million compared to $659.4 million for the 2006 period.  Currency translation had the effect of increasing sales by approximately $22 million in the fourth quarter 2007 compared to the 2006 period.

 

For the full year ended December 31, 2007, diluted earnings per share was $1.94 compared to $1.47 per share before flood-related charges for the 2006 period.  Including flood-related charges, diluted earnings per share for the 2006 period was $1.39.  Sales for the full year ended December 31, 2007 were $2,851.0 million compared to $2,471.4 million for the 2006 period.  Currency translation had the effect of increasing sales by approximately $66 million for the full year 2007 period when compared to the 2006 period.

 

Amphenol Chairman and CEO, Martin H. Loeffler, stated:  “We are pleased to close a record fourth quarter with sales of $777 million and earnings per share of $.55.  Sales grew 18% over last year.  Growth was broad based reflecting the benefits of a diverse market footprint with particular strength in the mobile device, military and commercial aerospace, and wireless infrastructure markets.  All geographic regions of the business performed well in the quarter.  Our strong growth reflects our continued commitment to develop performance enhancing technologies for our customers in all of our markets.”

 

“Consistent with our strategy the Company completed two acquisitions in the fourth quarter of 2007 with aggregate annual sales of approximately $45 million.  The acquisitions complement and broaden the Company’s presence in a number of market segments and include a Northwest China based manufacturer of RF interconnect products for the wireless communications market

 

 


 

 

and a Chinese manufacturer of precision interconnect products for IT and consumer product applications.  In addition, during the quarter the Company completed the purchase of the remaining minority interest in one of its Korean manufacturers of handset related products.  We are excited about the growth potential created by these excellent additions.”

 

“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 19.7% compared to 18.9% in the fourth quarter of 2006.  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 was approximately 13% 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 $133 million.”

 

“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.  The growth we achieved in the fourth quarter and full year is very satisfying and is a direct result of implementing our strategies.  Looking forward, the general economic environment appears to have become more uncertain in recent weeks, particularly in the United States.  This weakness, combined with the relatively unstable financial markets may have a dampening effect on the expansion of certain segments of the economy.  Nevertheless, we believe the diversity of our customer base, leading technology, excellent product portfolio, worldwide presence and lean cost structure will serve us well in such an environment, and we are cautiously optimistic about continuing improvement in the short term and very confident about the long term outlook for continued growth and profitability. Accordingly, while market conditions are uncertain, and based on relatively stable currency exchange rates, we expect to achieve revenues and EPS in 2008 of $3,100 million to $3,175 million and $2.18 to $2.25, respectively, an increase of 9% to 11% and 12% to 16% over 2007 revenues and EPS, respectively.  For the first quarter 2008 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 outstanding 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 full year and fourth quarter results at 1:00 PM (ET) January 17, 2008.  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 6:00 PM (ET) on Monday, January 21, 2008.  The replay numbers are as follows:  toll free dial-in number is 866-515-1614 and International dial-in number is 203-369-2024.

 

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

(dollars in thousands, except per share data)

 

 

 

 

Three months ended

 

Twelve months ended

 

 

 

December 31,

 

December 31,

 

 

 

2007

 

2006

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

777,270

 

$

659,423

 

$

2,851,041

 

$

2,471,430

 

 

 

 

 

 

 

 

 

 

 

Cost of sales (1)

 

522,463

 

445,492

 

1,920,900

 

1,683,250

 

 

 

 

 

 

 

 

 

 

 

Gross profit (1)

 

254,807

 

213,931

 

930,141

 

788,180

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense (1)

 

101,309

 

89,297

 

377,283

 

342,841

 

Casualty loss related to flood

 

—

 

—

 

—

 

20,747

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

153,498

 

124,634

 

552,858

 

424,592

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(9,484

)

(9,305

)

(36,876

)

(38,799

)

Other expenses, net

 

(3,532

)

(2,813

)

(14,998

)

(12,521

)

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

140,482

 

112,516

 

500,984

 

373,272

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

(40,489

)

(34,139

)

(147,790

)

(117,581

)

 

 

 

 

 

 

 

 

 

 

Net income

 

$

99,993

 

$

78,377

 

$

353,194

 

$

255,691

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Basic (2)

 

$

0.56

 

$

0.44

 

$

1.98

 

$

1.43

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding - Basic (2)

 

178,645,544

 

178,883,670

 

178,453,249

 

178,927,644

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.55

 

$

0.43

 

$

1.94

 

$

1.39

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding - Diluted (2)

 

182,611,873

 

183,492,618

 

182,503,969

 

183,347,326

 

 

 

(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 twelve months ended December 31, 2006, was $0.43 and $1.47 respectively.

 

 


 

 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(dollars in thousands)

 

 

 

 

December 31,

 

December 31,

 

 

 

2007

 

2006

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

183,641

 

$

74,135

 

Accounts receivable, less allowance
for doubtful accounts of $12,468
and $14,677, respectively

 

510,411

 

383,858

 

Inventories

 

456,882

 

416,499

 

Prepaid expenses and other assets

 

72,874

 

60,113

 

 

 

 

 

 

 

Total current assets

 

1,223,808

 

934,605

 

 

 

 

 

 

 

Land and depreciable assets, less
accumulated depreciation of
$483,296 and $404,401, respectively

 

316,194

 

274,143

 

Deferred debt issuance cost

 

2,227

 

2,947

 

Goodwill

 

1,091,828

 

926,242

 

Other assets

 

41,676

 

57,460

 

 

 

 

 

 

 

 

 

$

2,675,733

 

$

2,195,397

 

 

 

 

 

 

 

LIABILITIES & SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

295,391

 

$

234,868

 

Accrued interest

 

4,252

 

4,156

 

Accrued salaries, wages and employee benefits

 

54,963

 

53,158

 

Other accrued expenses

 

162,085

 

149,545

 

Dividends payable

 

2,715

 

2,691

 

Current portion of long-term debt

 

1,075

 

3,241

 

 

 

 

 

 

 

Total current liabilities

 

520,481

 

447,659

 

 

 

 

 

 

 

Long-term debt

 

721,561

 

677,173

 

Accrued pension and post employment
benefit obligations

 

101,804

 

138,312

 

Other liabilities

 

66,973

 

29,259

 

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

Common stock

 

180

 

179

 

Additional paid-in deficit

 

(43,646

)

(119,421

)

Accumulated earnings

 

1,431,635

 

1,142,536

 

Accumulated other comprehensive loss

 

(43,644

)

(81,084

)

Treasury stock, at cost

 

(79,611

)

(39,216

)

 

 

 

 

 

 

Total shareholders’ equity

 

1,264,914

 

902,994

 

 

 

 

 

 

 

 

 

$

2,675,733

 

$

2,195,397

 

 

 

 


 

 

 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(dollars in thousands)

 

 

 

Three months ended

 

 

 

December 31,

 

 

 

2007

 

2006

 

 

 

 

 

 

 

Net income

 

$

353,194

 

$

255,691

 

Adjustments for cash from operations:

 

 

 

 

 

Depreciation and amortization

 

81,628

 

72,592

 

Amortization of deferred debt issue costs

 

720

 

532

 

Stock-based compensation

 

12,444

 

9,717

 

Casualty loss related to flood, net of insurance recoveries

 

—

 

9,307

 

Gain on disposal of fixed assets

 

(474

)

(60

)

Net change in non-cash components of working capital

 

(62,400

)

(69,207

)

Other long term assets and liabilities

 

2,787

 

11,025

 

 

 

 

 

 

 

Cash provided by operations

 

387,899

 

289,597

 

 

 

 

 

 

 

Cash flow from investing activities:

 

 

 

 

 

Capital additions

 

(103,772

)

(82,421

)

Proceeds from disposal of fixed assets

 

5,354

 

5,921

 

Purchase of short term investments, net

 

(1,360

)

—

 

Investments in acquisitions

 

(179,300

)

(22,473

)

 

 

 

 

 

 

Cash flow used in investing activities

 

(279,078

)

(98,973

)

 

 

 

 

 

 

Cash flow from financing activities:

 

 

 

 

 

Net change in borrowings under revolving credit facilities

 

41,622

 

(102,557

)

Payment of fees and expenses related to refinancing

 

—

 

(1,144

)

Purchase of treasury stock

 

(93,594

)

(72,658

)

Proceeds from exercise of stock options

 

34,550

 

21,882

 

Excess tax benefits from stock-based payment arrangements

 

23,691

 

10,043

 

Dividend payments

 

(10,710

)

(10,724

)

 

 

 

 

 

 

Cash flow used in financing activities

 

(4,441

)

(155,158

)

 

 

 

 

 

 

Effect of exchange rate changes on cash

 

5,126

 

—

 

 

 

 

 

 

 

Net change in cash and cash
equivalents

 

109,506

 

35,466

 

Cash and cash equivalents
balance, beginning of period

 

74,135

 

38,669

 

 

 

 

 

 

 

Cash and cash equivalents
balance, end of period

 

$

183,641

 

$

74,135

 

 

 

 

 

 

 

Cash paid during the year for:

 

 

 

 

 

Interest

 

36,238

 

39,109

 

Income taxes paid, net of refunds

 

100,772

 

77,849

 

 

 

 


 

 

AMPHENOL CORPORATION

SEGMENT INFORMATION

(dollars in thousands)

 

 

 

Three months ended

 

Twelve months ended

 

 

 

December 31,

 

December 31,

 

 

 

2007

 

2006

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

Trade Sales:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

706,423

 

$

590,798

 

$

2,569,281

 

$

2,207,508

 

Cable Products

 

70,847

 

68,625

 

281,760

 

263,922

 

Consolidated

 

$

777,270

 

$

659,423

 

$

2,851,041

 

$

2,471,430

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

155,100

 

$

126,094

 

$

558,646

 

$

449,885

 

Cable Products

 

8,540

 

8,271

 

34,864

 

31,007

 

Stock-based compensation expense

 

(3,180

)

(2,985

)

(12,444

)

(9,717

)

Other operating expenses

 

(6,962

)

(6,746

)

(28,208

)

(25,836

)

Casualty loss related to flood

 

—

 

—

 

—

 

(20,747

)

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

153,498

 

$

124,634

 

$

552,858

 

$

424,592

 

 

 

 

 

 

 

 

 

 

 

ROS%:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

22.0

%

21.3

%

21.7

%

20.4

%

Cable Products

 

12.1

%

12.1

%

12.4

%

11.7

%

Corporate - Stock-based compensation

 

–0.4

%

–0.5

%

–0.4

%

–0.4

%

Corporate - all other

 

–0.9

%

–1.0

%

–1.0

%

–1.0

%

 

 

 

 

 

 

 

 

 

 

Consolidated excluding flood-related charges

 

19.7

%

18.9

%

19.4

%

18.0

%

Consolidated

 

19.7

%

18.9

%

19.4

%

17.2

%