EX-99.1 2 a09-10274_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

 

2009 FIRST QUARTER RESULTS

REPORTED BY AMPHENOL CORPORATION

 

Wallingford, Connecticut.  April 16, 2009.  Amphenol Corporation (NYSE-APH) reported today first quarter 2009 diluted earnings per share of $.43 compared to $.54 per share for the comparable 2008 period.  Such per share amount for 2009 includes the benefit of $.02 per share relating to a reduction in tax expense of approximately $3.6 million for tax reserve adjustments relating to the completion of the audit of certain of the Company’s prior year tax returns.  Sales for the first quarter 2009 decreased 14% to $660.0 million compared to $770.7 million for the 2008 period.  Currency translation had the effect of decreasing sales by approximately 3% or $23.1 million in the first quarter 2009 compared to the 2008 period.

 

Amphenol President and Chief Executive Officer, R. Adam Norwitt stated “We are very pleased to start 2009 with first quarter results that confirm once again the Company’s ability to perform well in all economic cycles.  The Company’s achievement of sales of $660 million, with operating income margin of 16.8% and earnings per share of $.43, is very satisfying given the challenging market environment. While these first quarter results have certainly been impacted by the global economic slowdown, our performance continues to show the benefits of the Company’s diversity and the strength of its technology.  Significant sales declines resulting from continued low market demand levels in the automotive, industrial and information technology and data communication equipment markets were partially offset by sales increases in the global wireless communications markets, particularly in China, and a relatively flat performance in the defense and aerospace market.  Our team was able to capitalize on pockets of strength in nearly all of our served markets to preserve and grow our market position.  In addition, it is extremely rewarding that even in this difficult environment, profitability and cash flow remain strong.  Our operating management team continues to adjust costs in a proactive and dynamic manner contributing to the strength of our financial performance.  I am very proud of our organization as we continue to execute well.”

 



 

“Consistent with our strategy, at the end of the quarter, the Company completed the acquisition of Times Microwave Systems (TMS), a world leader in high performance radio frequency value-added interconnect technology for the military aerospace and wireless communications markets.  TMS had annual sales of approximately $108 million in 2008. We are excited by the growth potential created through the combination of our complementary technologies in these important markets. In addition, we are pleased that our financial strength allows us to continue to expand the opportunities for future growth through our ongoing acquisition program.”

 

“While economic conditions remain uncertain, we anticipate a continuation of moderate demand in Q2 2009.  Accordingly, based on constant currency exchange rates we expect revenues for Q2 2009 in the range of $660 million to $675 million and EPS in the range of $.41 to $.43.  Given the significant uncertainty regarding future demand levels the Company will continue to only provide sales and EPS guidance for the next quarter at this time.  While the challenging economic environment has a dampening effect on current 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 an agile, experienced and entrepreneurial management team.”

 

 “We continue to be excited about the future.  Our competitive advantages and sustained financial strength provide a solid base for future performance.  I am confident in the ability of our outstanding organization to dynamically adjust to the challenges presented, to preserve profitability and to capitalize on opportunities to expand our market position.”

 

The Company will host a conference call to discuss its first quarter results at 1:00 PM (EST) April 16, 2009.  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, April 20, 2009.  The replay numbers are as follows:  toll free dial-in number is 866-379-4229 and International dial-in number is 203-369-0334.

 

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, 2008, 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

 

 

 

March 31,

 

 

 

2009

 

2008

 

 

 

 

 

 

 

Net Sales

 

$

660,012

 

$

770,714

 

 

 

 

 

 

 

Cost of sales

 

453,633

 

519,808

 

 

 

 

 

 

 

Gross profit

 

206,379

 

250,906

 

 

 

 

 

 

 

Selling, general and administrative expense

 

95,694

 

100,610

 

 

 

 

 

 

 

Operating income

 

110,685

 

150,296

 

 

 

 

 

 

 

Interest expense

 

(8,998

)

(9,899

)

Other expenses, net

 

(215

)

(482

)

 

 

 

 

 

 

Income before income taxes

 

101,472

 

139,915

 

 

 

 

 

 

 

Provision for income taxes

 

(24,422

)

(40,784

)

 

 

 

 

 

 

Net income

 

77,050

 

99,131

 

Less: Net income attributable to noncontrolling interest

 

(2,640

)

(1,663

)

 

 

 

 

 

 

Net income attributable to Amphenol Corporation

 

$

74,410

 

$

97,468

 

 

 

 

 

 

 

Net income per common share - Basic

 

$

0.43

 

$

0.55

 

 

 

 

 

 

 

Average shares outstanding - Basic

 

171,185,198

 

176,662,616

 

 

 

 

 

 

 

Net income per common share - Diluted

 

$

0.43

 

$

0.54

 

 

 

 

 

 

 

Average shares outstanding - Diluted

 

173,098,475

 

180,197,969

 

 



 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(dollars in thousands)

 

 

 

March 31,

 

December 31,

 

 

 

2009

 

2008

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

150,519

 

$

214,987

 

Accounts receivable, less allowance for doubtful accounts of $18,222 and $14,982, respectively

 

459,463

 

515,999

 

Inventories, net

 

479,704

 

512,507

 

Other current assets

 

88,144

 

92,371

 

 

 

 

 

 

 

Total current assets

 

1,177,830

 

1,335,864

 

 

 

 

 

 

 

Land and depreciable assets, less accumulated depreciation of $516,091 and $510,764, respectively

 

345,606

 

344,515

 

Goodwill

 

1,334,948

 

1,232,335

 

Other long-term assets

 

101,277

 

81,445

 

 

 

 

 

 

 

 

 

$

2,959,661

 

$

2,994,159

 

 

 

 

 

 

 

LIABILITIES & SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

257,196

 

$

305,950

 

Accrued salaries, wages and employee benefits

 

59,401

 

59,644

 

Accrued income taxes

 

59,086

 

65,846

 

Accrued acquisition-related obligations

 

17,590

 

120,357

 

Other accrued expenses

 

76,104

 

82,596

 

Current portion of long-term debt

 

497

 

439

 

 

 

 

 

 

 

Total current liabilities

 

469,874

 

634,832

 

 

 

 

 

 

 

Long-term debt

 

870,982

 

786,020

 

Accrued pension and post employment benefit obligations

 

161,177

 

161,669

 

Other long-term liabilities

 

38,515

 

43,069

 

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

Common stock

 

172

 

171

 

Additional paid-in capital

 

27,909

 

22,746

 

Accumulated earnings

 

1,538,941

 

1,467,099

 

Accumulated other comprehensive loss

 

(166,972

)

(140,591

)

 

 

 

 

 

 

Total shareholders’ equity attributable to Amphenol Corporation

 

1,400,050

 

1,349,425

 

 

 

 

 

 

 

Noncontrolling interest

 

19,063

 

19,144

 

 

 

 

 

 

 

Total equity

 

1,419,113

 

1,368,569

 

 

 

 

 

 

 

 

 

$

2,959,661

 

$

2,994,159

 

 



 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(Unaudited)

(dollars in thousands)

 

 

 

Threee months ended

 

 

 

March 31,

 

 

 

2009

 

2008

 

 

 

 

 

 

 

Net income attributable to Amphenol Corporation

 

$

74,410

 

$

97,468

 

Adjustments for cash from operations:

 

 

 

 

 

Depreciation and amortization

 

22,991

 

22,771

 

Stock-based compensation

 

4,784

 

3,202

 

Net change in receivables sold

 

6,000

 

 

Net change in non-cash components of working capital

 

34,255

 

(18,888

)

Net change in other long term assets and liabilities

 

325

 

5,063

 

 

 

 

 

 

 

Cash provided by operations

 

142,765

 

109,616

 

 

 

 

 

 

 

Cash flow from investing activities:

 

 

 

 

 

Additions to property, plant & equipment

 

(16,871

)

(19,914

)

Sale (Purchase) of short term investments

 

1,420

 

(4,162

)

Investments in acquisitions

 

(261,464

)

(70,443

)

 

 

 

 

 

 

Cash flow used in investing activities

 

(276,915

)

(94,519

)

 

 

 

 

 

 

Cash flow from financing activities:

 

 

 

 

 

Net change in borrowings under revolving credit facilities

 

85,887

 

127,106

 

Purchase of treasury stock

 

 

(143,693

)

Proceeds from exercise of stock options

 

224

 

367

 

Excess tax benefits from stock-based payment arrangements

 

107

 

270

 

Dividend payments

 

(5,135

)

(2,682

)

 

 

 

 

 

 

Cash flow provided by (used in) financing activities

 

81,083

 

(18,632

)

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(11,401

)

49

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

(64,468

)

(3,486

)

Cash and cash equivalents balance, beginning of period

 

214,987

 

183,641

 

 

 

 

 

 

 

Cash and cash equivalents balance, end of period

 

$

150,519

 

$

180,155

 

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

Interest

 

$

9,112

 

$

10,006

 

Income taxes

 

27,488

 

21,610

 

 



 

AMPHENOL CORPORATION

SEGMENT INFORMATION

(dollars in thousands)

(Unaudited)

 

 

 

Three months ended

 

 

 

March 31,

 

 

 

2009

 

2008

 

 

 

 

 

 

 

Trade Sales:

 

 

 

 

 

Interconnect Products

 

$

601,958

 

$

700,625

 

Cable Products

 

58,054

 

70,089

 

Consolidated

 

$

660,012

 

$

770,714

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

Interconnect Products

 

$

116,443

 

$

153,536

 

Cable Products

 

7,836

 

8,270

 

Stock-based compensation expense

 

(4,784

)

(3,202

)

Other operating expenses

 

(8,810

)

(8,308

)

Consolidated

 

$

110,685

 

$

150,296

 

 

 

 

 

 

 

ROS%:

 

 

 

 

 

Interconnect Products

 

19.3

%

21.9

%

Cable Products

 

13.5

%

11.8

%

Corporate - Stock-based compensation

 

-0.7

%

-0.4

%

Corporate - all other

 

-1.3

%

-1.1

%

 

 

 

 

 

 

Consolidated

 

16.8

%

19.5

%