EX-99.1 2 a08-19544_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 2008 SECOND QUARTER RESULTS

REPORTED BY AMPHENOL CORPORATION

 

 

Wallingford, Connecticut.  July 17, 2008.  Amphenol Corporation (NYSE-APH) reported today that second quarter 2008 diluted earnings per share increased 33% to $.61 compared to $.46 per share for the comparable 2007 period.  Sales for the second quarter 2008 increased 23% to $846.8 million compared to $688.8 million for the 2007 period.  Currency translation had the effect of increasing sales by approximately $26.5 million in the second quarter 2008 compared to the 2007 period.

 

For the six months ended June 30, 2008, diluted earnings per share was $1.15 compared to $.89 per share for the 2007 period.  Sales for the six months ended June 30, 2008 were $1,617.5 million compared to $1,339.9 million for the 2007 period.   Currency translation had the effect of increasing sales by approximately $48.1 million for the six month 2008 period when compared to the 2007 period.

 

Amphenol Chairman and CEO, Martin H. Loeffler, stated:  “We are very pleased to report a record second quarter with sales of $847 million and earnings per share of $.61.  Sales grew 23% over last year.  Growth was broad based with particular strength in the global communications, military and commercial aerospace markets.  It is extremely rewarding that even in a challenging macroeconomic environment, our strategy of ongoing market and geographic diversification combined with our strong commitment to develop performance enhancing technologies for our customers continues to expand the Company’s growth opportunities.”

 

“Consistent with our strategy, during the second quarter of 2008 the Company completed the acquisition of a United States manufacturer of audio interconnect products for the military market with aggregate annual sales of approximately $14 million. This acquisition broadens the Company’s technology offering in this important market.”

 

 

 

 

 


 

 

“We are especially encouraged that, in addition to excellent overall top line growth, profitability and cash flow continued to be strong in the quarter.  Amphenol achieved excellent operating leverage with an operating income margin of 19.9% compared to 19.4% in the second quarter of 2007.  We were able to more than offset significant inflationary pressures with the combination of our strong top line growth and a continued focus on all elements of cost.  Furthermore, net income was approximately 13% of sales, another indication of the Company’s successful drive for value creation.  The Company continues to be an excellent generator of cash, with cash flow from operations remaining strong in the quarter at $96 million.  The financial strength of the Company in the quarter provides a solid base for future performance.”

 

“I am very proud of our organization as we continue to execute well in a challenging environment.  The growth we achieved in the second quarter is very satisfying and is a direct result of consistently implementing our strategies.  While economic uncertainties continue to be broadly reported, and despite a generally moderate demand environment in certain markets, we continue to see strength in our business.  We believe we can perform well in such an environment due to our leading technology, increasing positions with our customers in diverse markets, worldwide presence, lean cost structure and entrepreneurial management. Accordingly, while general economic conditions are uncertain, and based on relatively stable currency exchange rates, we are raising our guidance to achieve revenues and EPS in 2008 of $3,278 million to $3,308 million and $2.34 to $2.38, respectively, an increase of 15% to 16% and 21% to 23% over 2007 revenues and EPS, respectively.  For the third quarter 2008 we expect revenues in the range of $825 million to $840 million and EPS in the range of $.59 and $.61, respectively.  We are 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 second quarter results at 1:00 PM (EST) July 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 P.M. (EST) on Monday, July 21, 2008.  The replay numbers are as follows:  toll free dial-in number is 866-462-8985 and International dial-in number is 203-369-1370.

 

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, 2007, 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
June 30,

 

Six months ended
June 30,

 

 

 

2008

 

2007

 

2008

 

2007

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

846,817

 

$

688,836

 

$

1,617,531

 

$

1,339,920

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

570,227

 

463,212

 

1,090,035

 

903,728

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

276,590

 

225,624

 

527,496

 

436,192

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense

 

108,367

 

92,211

 

208,977

 

180,182

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

168,223

 

133,413

 

318,519

 

256,010

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(9,915

)

(8,979

)

(19,814

)

(18,021

)

Other expenses, net

 

(2,291

)

(3,639

)

(4,436

)

(6,788

)

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

156,017

 

120,795

 

294,269

 

231,201

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

(46,022

)

(36,799

)

(86,806

)

(69,501

)

 

 

 

 

 

 

 

 

 

 

Net income

 

$

109,995

 

$

83,996

 

$

207,463

 

$

161,700

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Basic

 

$

 0.63

 

$

0.47

 

$

1.18

 

$

0.91

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding - Basic

 

175,487,646

 

178,624,152

 

176,075,131

 

178,379,815

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Diluted

 

$

0.61

 

$

0.46

 

$

1.15

 

$

0.89

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding - Diluted

 

179,395,729

 

182,686,329

 

179,796,849

 

182,598,444

 

 

 

 

 


 

 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(dollars in thousands)

 

 

 

 

June 30,
2008

 

December 31,
2007

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

188,762

 

$

183,641

 

Accounts receivable, less allowance for doubtful accounts of $14,284 and $12,468, respectively

 

555,211

 

510,411

 

Inventories

 

519,593

 

456,882

 

Prepaid expenses and other assets

 

92,072

 

72,874

 

 

 

 

 

 

 

Total current assets

 

1,355,638

 

1,223,808

 

 

 

 

 

 

 

Land and depreciable assets, less accumulated depreciation of $530,219 and $483,296, respectively

 

338,805

 

316,194

 

Goodwill

 

1,171,491

 

1,091,828

 

Other assets

 

61,701

 

43,903

 

 

 

 

 

 

 

 

 

$

2,927,635

 

$

2,675,733

 

 

 

 

 

 

 

LIABILITIES & SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

318,526

 

$

295,391

 

Accrued salaries, wages and employee benefits

 

59,102

 

54,963

 

Accrued income taxes

 

42,336

 

39,627

 

Accrued acquisition-related obligations.

 

67,046

 

55,212

 

Other accrued expenses

 

71,725

 

74,213

 

Current portion of long-term debt

 

551

 

1,075

 

 

 

 

 

 

 

Total current liabilities

 

559,286

 

520,481

 

 

 

 

 

 

 

Long-term debt

 

819,202

 

721,561

 

Accrued pension and post employment benefit obligations

 

110,876

 

101,804

 

Other liabilities

 

82,749

 

66,973

 

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

Common stock

 

177

 

181

 

Additional paid-in deficit

 

(22,490

)

(43,647

)

Accumulated earnings

 

1,430,062

 

1,431,635

 

Accumulated other comprehensive loss

 

(32,719

)

(43,644

)

Treasury stock, at cost

 

(19,508

)

(79,611

)

 

 

 

 

 

 

Total shareholders’ equity

 

1,355,522

 

1,264,914

 

 

 

 

 

 

 

 

 

$

2,927,635

 

$

2,675,733

 

 

 

 

 


 

 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(Unaudited)

(dollars in thousands)

 

 

 

 

Six months ended
June 30,

 

 

 

2008

 

2007

 

 

 

 

 

 

 

Net income

 

$

207,463

 

$

161,700

 

Adjustments for cash from operations:

 

 

 

 

 

Depreciation and amortization

 

45,684

 

40,043

 

Stock-based compensation

 

7,196

 

5,993

 

Net change in non-cash components of working capital

 

(69,704

)

(72,570

)

Other long term assets and liabilities

 

15,176

 

10,512

 

 

 

 

 

 

 

Cash provided by operations

 

205,815

 

145,678

 

 

 

 

 

 

 

Cash flow from investing activities:

 

 

 

 

 

Capital additions

 

(50,503

)

(50,932

)

Purchase of short term investments, net

 

(8,551

)

(4,208

)

Investments in acquisitions

 

(99,474

)

(37,579

)

 

 

 

 

 

 

Cash flow used in investing activities

 

(158,528

)

(92,719

)

 

 

 

 

 

 

Cash flow from financing activities:

 

 

 

 

 

Net change in borrowings under revolving credit facilities

 

94,277

 

5,510

 

Purchase of treasury stock

 

(143,692

)

(51,947

)

Proceeds from exercise of stock options

 

8,781

 

19,650

 

Excess tax benefits from stock-based payment arrangements

 

4,981

 

15,717

 

Dividend payments

 

(5,317

)

(5,356

)

 

 

 

 

 

 

Cash flow used in financing activities

 

(40,970

)

(16,426

)

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(1,196

)

—

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

5,121

 

36,533

 

Cash and cash equivalents balance, beginning of period

 

183,641

 

74,135

 

 

 

 

 

 

 

Cash and cash equivalents balance, end of period

 

$

188,762

 

$

110,668

 

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

Interest

 

$

19,877

 

$

17,762

 

Income taxes paid, net of refunds

 

72,095

 

52,925

 

 

 

 

 


 

 

 

AMPHENOL CORPORATION

SEGMENT INFORMATION

(dollars in thousands)

(Unaudited)

 

 

 

 

 

Three months ended
June 30,

 

Six months ended
June 30,

 

 

 

2008

 

2007

 

2008

 

2007

 

 

 

 

 

 

 

 

 

 

 

Trade Sales:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

771,112

 

$

618,250

 

$

1,471,737

 

$

1,203,515

 

Cable Products

 

75,705

 

70,586

 

145,794

 

136,405

 

Consolidated

 

$

846,817

 

$

688,836

 

$

1,617,531

 

$

1,339,920

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

171,625

 

$

134,212

 

$

325,161

 

$

259,093

 

Cable Products

 

8,729

 

8,932

 

16,999

 

16,853

 

Stock-based compensation expense

 

(3,994

)

(3,003

)

(7,196

)

(5,993

)

Other operating expenses

 

(8,137

)

(6,728

)

(16,445

)

(13,943

)

Consolidated

 

$

168,223

 

$

133,413

 

$

318,519

 

$

256,010

 

 

 

 

 

 

 

 

 

 

 

ROS%:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

22.3

%

21.7

%

22.1

%

21.5

%

Cable Products

 

11.5

%

12.7

%

11.7

%

12.4

%

Corporate - Stock-based compensation

 

-0.5

%

-0.4

%

-0.4

%

-0.4

%

Corporate - all other

 

-1.0

%

-1.0

%

-1.0

%

-1.0

%

 

 

 

 

 

 

 

 

 

 

Consolidated

 

19.9

%

19.4

%

19.7

%

19.1

%