EX-99.1 2 a08-26243_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 THIRD QUARTER RESULTS

REPORTED BY AMPHENOL CORPORATION

 

Wallingford, Connecticut.  October 16, 2008.  Amphenol Corporation (NYSE-APH) reported today that third quarter 2008 diluted earnings per share increased 26% to $.63 compared to $.50 per share for the comparable 2007 period.  Sales for the third quarter 2008 increased 18% to $863.7 million compared to $733.9 million for the 2007 period.  Currency translation had the effect of increasing sales by approximately $16 million in the third quarter 2008 compared to the 2007 period.

 

For the nine months ended September 30, 2008, diluted earnings per share was $1.78 compared to $1.39 per share for the 2007 period.  Sales for the nine months ended September 30, 2008 were $2,481.2 million compared to $2,073.8 million for the 2007 period.   Currency translation had the effect of increasing sales by approximately $64 million for the nine month 2008 period when compared to the 2007 period.

 

Amphenol Chairman and CEO, Martin H. Loeffler, stated:  “We are very pleased to report record third quarter results with sales of $864 million and earnings per share of $.63.  Sales grew 18% over last year.  Growth was broad based with particular strength in the global communications, military and 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.”

 

“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 19.8% compared to 19.5% in the third 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 $105 million.  The sustained financial strength of the Company 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 third quarter results are very satisfying and are a direct result of consistently implementing our strategies.”

 

“During the last month macroeconomic conditions have deteriorated further as disruptions in financial markets and lack of availability of credit have spread globally.  As a result, the outlook for economic growth has been reduced and the downside risk to growth has increased.  While the current environment is expected by many to have a dampening effect on demand, 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, we are confirming the high end and narrowing the range of our 2008 guidance to achieve revenues and EPS in the range of $3,292 million to $3,308 million and $2.36 to $2.38, respectively, an increase of 15% to 16% over 2007 revenues and 22% to 23% over 2007 EPS, respectively. This outlook is based on the Company’s strong third quarter performance and a fourth quarter that incorporates the impact of current currency exchange rates which reflect a significantly stronger U.S. dollar. For the fourth quarter 2008 we now expect revenues in the range of $810 million to $826 million and EPS in the range of $.58 and $.60, respectively.  Forecasting in the current unstable economic environment is difficult; however, 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 third quarter results at 1:00 PM (EST) October 16, 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 5:00 P.M. (EST) on Monday, October 20, 2008.  The replay numbers are as follows:  toll free dial-in number is 888-437-4650 and International dial-in number is 402-998-1324.

 

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

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

 

2008

 

2007

 

2008

 

2007

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

863,658

 

$

733,851

 

$

2,481,189

 

$

2,073,771

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

582,407

 

494,709

 

1,672,442

 

1,398,437

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

281,251

 

239,142

 

808,747

 

675,334

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense

 

109,931

 

95,792

 

318,908

 

275,974

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

171,320

 

143,350

 

489,839

 

399,360

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(9,772

)

(9,371

)

(29,586

)

(27,392

)

Other expenses, net

 

(3,348

)

(4,678

)

(7,784

)

(11,466

)

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

158,200

 

129,301

 

452,469

 

360,502

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

(45,245

)

(37,800

)

(132,051

)

(107,301

)

 

 

 

 

 

 

 

 

 

 

Net income

 

$

112,955

 

$

91,501

 

$

320,418

 

$

253,201

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Basic

 

$

0.64

 

$

0.51

 

$

1.82

 

$

1.42

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding - Basic

 

176,716,395

 

178,405,425

 

176,290,446

 

178,388,446

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Diluted

 

$

0.63

 

$

0.50

 

$

1.78

 

$

1.39

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding - Diluted

 

180,134,110

 

182,210,197

 

179,910,090

 

182,467,606

 

 


 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(dollars in thousands)

 

 

 

September 30,

 

December 31,

 

 

 

2008

 

2007

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

230,741

 

$

183,641

 

Accounts receivable, less allowance for doubtful accounts of $13,944 and $12,468, respectively

 

583,663

 

510,411

 

Inventories

 

521,859

 

456,882

 

Other current assets

 

95,364

 

72,874

 

 

 

 

 

 

 

Total current assets

 

1,431,627

 

1,223,808

 

 

 

 

 

 

 

Land and depreciable assets, less accumulated depreciation of $515,681 and $483,296, respectively

 

336,418

 

316,194

 

Goodwill

 

1,189,788

 

1,091,828

 

Other long-term assets

 

60,405

 

43,903

 

 

 

 

 

 

 

 

 

$

3,018,238

 

$

2,675,733

 

 

 

 

 

 

 

LIABILITIES & SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

345,193

 

$

295,391

 

Accrued salaries, wages and employee benefits

 

60,956

 

54,963

 

Accrued income taxes

 

46,956

 

39,627

 

Accrued acquisition-related obligations

 

91,670

 

55,212

 

Other accrued expenses

 

69,566

 

74,213

 

Current portion of long-term debt

 

481

 

1,075

 

 

 

 

 

 

 

Total current liabilities

 

614,822

 

520,481

 

 

 

 

 

 

 

Long-term debt

 

770,050

 

721,561

 

Accrued pension and post employment benefit obligations

 

86,137

 

101,804

 

Other long-term liabilities

 

83,657

 

66,973

 

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

Common stock

 

178

 

181

 

Additional paid-in capital (deficit)

 

18,195

 

(43,647

)

Accumulated earnings

 

1,540,360

 

1,431,635

 

Accumulated other comprehensive loss

 

(75,653

)

(43,644

)

Treasury stock, at cost

 

(19,508

)

(79,611

)

 

 

 

 

 

 

Total shareholders’ equity

 

1,463,572

 

1,264,914

 

 

 

 

 

 

 

 

 

$

3,018,238

 

$

2,675,733

 

 


 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(Unaudited)

(dollars in thousands)

 

 

 

Nine months ended

 

 

 

September 30,

 

 

 

2008

 

2007

 

 

 

 

 

 

 

Net income

 

$

320,418

 

$

253,201

 

Adjustments for cash from operations:

 

 

 

 

 

Depreciation and amortization

 

69,019

 

60,933

 

Stock-based compensation

 

11,777

 

9,265

 

Net change in non-cash components of working capital

 

(91,365

)

(65,231

)

Net change in other long term assets and liabilities

 

835

 

(3,292

)

 

 

 

 

 

 

Cash provided by operations

 

310,684

 

254,876

 

 

 

 

 

 

 

Cash flow from investing activities:

 

 

 

 

 

Capital additions, net

 

(83,044

)

(75,803

)

Purchase of short term investments

 

(13,996

)

(4,634

)

Investments in acquisitions

 

(100,373

)

(69,362

)

 

 

 

 

 

 

Cash flow used in investing activities

 

(197,413

)

(149,799

)

 

 

 

 

 

 

Cash flow from financing activities:

 

 

 

 

 

Net change in borrowings under revolving credit facilities

 

46,111

 

36,157

 

Purchase of treasury stock

 

(143,693

)

(87,080

)

Proceeds from exercise of stock options

 

26,909

 

25,461

 

Excess tax benefits from stock-based payment arrangements

 

21,267

 

18,873

 

Dividend payments

 

(10,617

)

(8,036

)

 

 

 

 

 

 

Cash flow used in financing activities

 

(60,023

)

(14,625

)

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(6,148

)

—

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

47,100

 

90,452

 

Cash and cash equivalents balance, beginning of period

 

183,641

 

74,135

 

 

 

 

 

 

 

Cash and cash equivalents balance, end of period

 

$

230,741

 

$

164,587

 

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

Interest

 

$

29,447

 

$

26,791

 

Income taxes paid

 

99,910

 

74,306

 

 


 

AMPHENOL CORPORATION

SEGMENT INFORMATION

(dollars in thousands)

(Unaudited)

 

 

 

Three months ended
September 30,

 

Nine months ended
September 30,

 

 

 

2008

 

2007

 

2008

 

2007

 

 

 

 

 

 

 

 

 

 

 

Trade Sales:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

786,177

 

$

659,343

 

$

2,257,914

 

$

1,862,858

 

Cable Products

 

77,481

 

74,508

 

223,275

 

210,913

 

Consolidated

 

$

863,658

 

$

733,851

 

$

2,481,189

 

$

2,073,771

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

175,525

 

$

144,453

 

$

500,686

 

$

403,546

 

Cable Products

 

8,532

 

9,471

 

25,531

 

26,324

 

Stock-based compensation expense

 

(4,581

)

(3,273

)

(11,777

)

(9,265

)

Other operating expenses

 

(8,156

)

(7,301

)

(24,601

)

(21,245

)

Consolidated

 

$

171,320

 

$

143,350

 

$

489,839

 

$

399,360

 

 

 

 

 

 

 

 

 

 

 

ROS%:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

22.3

%

21.9

%

22.2

%

21.7

%

Cable Products

 

11.0

%

12.7

%

11.4

%

12.5

%

Corporate - Stock-based compensation

 

-0.5

%

-0.4

%

-0.5

%

-0.4

%

Corporate - all other

 

-0.9

%

-1.0

%

-1.0

%

-1.0

%

 

 

 

 

 

 

 

 

 

 

Consolidated

 

19.8

%

19.5

%

19.7

%

19.3

%