EX-99.1 2 a09-18379_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 SECOND QUARTER RESULTS
REPORTED BY AMPHENOL CORPORATION

 

Wallingford, Connecticut.  July 16, 2009.  Amphenol Corporation (NYSE-APH) reported today second quarter 2009 diluted earnings per share of $.43 compared to $.61 per share for the comparable 2008 period.  Sales for the second quarter 2009 decreased 19% to $685.2 million compared to $846.8 million for the 2008 period.  Currency translation had the effect of decreasing sales by approximately 3% or $23 million in the second quarter 2009 compared to the 2008 period.

 

For the six months ended June 30, 2009, diluted earnings per share was $.86 compared to $1.15 for the 2008 period.  Sales for the six months ended June 30, 2009 were $1,345.2 million compared to $1,617.5 million for the 2008 period. Currency translation had the effect of decreasing sales by approximately $46 million for the six month 2009 period when compared to the 2008 period.

 

Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated “We are pleased to report second quarter results that reflect sequential improvement over Q1 2009.  The Company’s achievement of sales of $685 million, with an operating income margin of 16.9% and earnings per share of $.43, is very gratifying given the continued challenges in the market environment.  Our performance continues to show the benefits of the Company’s diversity and the strength of its technology. While demand levels remain low, we did experience sequential sales increases in most end markets, particularly in the automotive, mobile device, military aerospace, and broadband markets.  We were able to capitalize on pockets of strength and enhance our market position in nearly all of our served markets.  In addition, it is extremely rewarding that even in this difficult environment, profitability and cash flow remain strong.  Our management team continues to reduce costs in a proactive and dynamic manner ensuring the strength of our financial performance.  I am very proud of our organization as we continue to execute well.”

 


 

 “While economic conditions remain uncertain, we believe we have seen a stabilization of demand in most markets.  Accordingly, based on constant currency exchange rates and some seasonal moderation we expect Q3 2009 revenues in the range of $670 million to $685 million and EPS in the range of $.41 to $.43.  We continue to believe we can perform well in the current economic environment due to our leading technology, increasing positions with our customers in diverse markets, worldwide presence, lean cost structure, and 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 market environment, to generate strong 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) July 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 7:00 P.M. (EST) on Monday, July 20, 2009.  The replay numbers are as follows:  toll free dial-in number is 866-444-9032 and International dial-in number is 203-369-1130.

 

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

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2009

 

2008

 

2009

 

2008

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

 685,184

 

$

 846,817

 

$

 1,345,196

 

$

 1,617,531

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

471,034

 

570,227

 

924,667

 

1,090,035

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

214,150

 

276,590

 

420,529

 

527,496

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense

 

98,672

 

108,367

 

194,366

 

208,977

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

115,478

 

168,223

 

226,163

 

318,519

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(9,131

)

(9,915

)

(18,129

)

(19,814

)

Other expenses, net

 

(382

)

134

 

(597

)

(348

)

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

105,965

 

158,442

 

207,437

 

298,357

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

(29,140

)

(46,022

)

(53,562

)

(86,806

)

 

 

 

 

 

 

 

 

 

 

Net income

 

76,825

 

112,420

 

153,875

 

211,551

 

Less: Net income attributable to noncontrolling interest

 

(1,955

)

(2,425

)

(4,595

)

(4,088

)

 

 

 

 

 

 

 

 

 

 

Net income attributable to Amphenol Corporation

 

$

 74,870

 

$

 109,995

 

$

 149,280

 

$

 207,463

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Basic

 

$

 0.44

 

$

 0.63

 

$

 0.87

 

$

 1.18

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding - Basic

 

171,317,112

 

175,487,646

 

171,251,519

 

176,075,131

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Diluted

 

$

 0.43

 

$

 0.61

 

$

 0.86

 

$

 1.15

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding - Diluted

 

173,649,705

 

179,395,729

 

173,375,613

 

179,796,849

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

 0.015

 

$

 0.015

 

$

 0.015

 

$

 0.015

 

 


 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(dollars in thousands)

 

 

 

June 30,

 

December 31,

 

 

 

2009

 

2008

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

220,765

 

$

214,987

 

Accounts receivable, less allowance for doubtful accounts of $17,967 and $14,982, respectively

 

445,073

 

515,999

 

Inventories, net

 

449,894

 

512,507

 

Other current assets

 

91,209

 

92,371

 

 

 

 

 

 

 

Total current assets

 

1,206,941

 

1,335,864

 

 

 

 

 

 

 

Land and depreciable assets, less accumulated depreciation of $547,890 and $510,764, respectively

 

345,538

 

344,515

 

Goodwill

 

1,349,707

 

1,232,335

 

Other long-term assets

 

97,331

 

81,445

 

 

 

 

 

 

 

 

 

$

2,999,517

 

$

2,994,159

 

 

 

 

 

 

 

LIABILITIES & SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

247,391

 

$

305,950

 

Accrued salaries, wages and employee benefits

 

60,788

 

59,644

 

Accrued income taxes

 

48,442

 

65,846

 

Accrued acquisition-related obligations

 

9,220

 

120,357

 

Other accrued expenses

 

71,227

 

82,596

 

Current portion of long-term debt

 

527

 

439

 

 

 

 

 

 

 

Total current liabilities

 

437,595

 

634,832

 

 

 

 

 

 

 

Long-term debt

 

820,581

 

786,020

 

Accrued pension and post employment benefit obligations

 

169,695

 

161,669

 

Other long-term liabilities

 

42,918

 

43,069

 

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

Common stock

 

172

 

171

 

Additional paid-in capital

 

36,862

 

22,746

 

Accumulated earnings

 

1,611,240

 

1,467,099

 

Accumulated other comprehensive loss

 

(138,876

)

(140,591

)

 

 

 

 

 

 

Total shareholders’ equity attributable to Amphenol Corporation

 

1,509,398

 

1,349,425

 

 

 

 

 

 

 

Noncontrolling interest

 

19,330

 

19,144

 

 

 

 

 

 

 

Total equity

 

1,528,728

 

1,368,569

 

 

 

 

 

 

 

 

 

$

2,999,517

 

$

2,994,159

 

 


 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(Unaudited)

(dollars in thousands)

 

 

 

Six months ended

 

 

 

June 30,

 

 

 

2009

 

2008

 

 

 

 

 

 

 

Net income

 

$

153,875

 

$

211,551

 

Adjustments for cash from operations:

 

 

 

 

 

Depreciation and amortization

 

47,770

 

45,684

 

Stock-based compensation

 

10,028

 

7,196

 

Net change in receivables sold

 

(6,000

)

—

 

Net change in components of working capital

 

76,057

 

(69,704

)

Net change in other long-term assets and liabilities

 

2,911

 

11,088

 

 

 

 

 

 

 

Cash provided by operations

 

284,641

 

205,815

 

 

 

 

 

 

 

Cash flow from investing activities:

 

 

 

 

 

Additions to property, plant & equipment

 

(30,832

)

(50,503

)

Purchase of short term investments

 

(593

)

(8,551

)

Investments in acquisitions

 

(271,578

)

(99,474

)

 

 

 

 

 

 

Cash flow used in investing activities

 

(303,003

)

(158,528

)

 

 

 

 

 

 

Cash flow from financing activities:

 

 

 

 

 

Net change in borrowings under revolving credit facilities

 

35,281

 

94,277

 

Purchase of treasury stock

 

—

 

(143,693

)

Proceeds from exercise of stock options

 

3,015

 

8,782

 

Excess tax benefits from stock-based payment arrangements

 

696

 

4,981

 

Dividend payments

 

(7,706

)

(5,317

)

 

 

 

 

 

 

Cash flow provided by (used in) financing activities

 

31,286

 

(40,970

)

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(7,146

)

(1,196

)

 

 

 

 

 

 

Net change in cash and cash equivalents

 

5,778

 

5,121

 

Cash and cash equivalents balance, beginning of period

 

214,987

 

183,641

 

 

 

 

 

 

 

Cash and cash equivalents balance, end of period

 

$

220,765

 

$

188,762

 

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

Interest

 

$

17,957

 

$

19,877

 

Income taxes

 

62,086

 

72,095

 

 


 

AMPHENOL CORPORATION

SEGMENT INFORMATION

(dollars in thousands)

(Unaudited)

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2009

 

2008

 

2009

 

2008

 

 

 

 

 

 

 

 

 

 

 

Trade Sales:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

621,440

 

$

771,112

 

$

1,223,398

 

$

1,471,737

 

Cable Products

 

63,744

 

75,705

 

121,798

 

145,794

 

Consolidated

 

$

685,184

 

$

846,817

 

$

1,345,196

 

$

1,617,531

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

119,743

 

$

171,624

 

$

236,186

 

$

325,160

 

Cable Products

 

10,059

 

8,729

 

17,895

 

16,999

 

Stock-based compensation expense

 

(5,245

)

(3,994

)

(10,029

)

(7,196

)

Other operating expenses

 

(9,079

)

(8,136

)

(17,889

)

(16,444

)

Consolidated

 

$

115,478

 

$

168,223

 

$

226,163

 

$

318,519

 

 

 

 

 

 

 

 

 

 

 

ROS%:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

19.3

%

22.3

%

19.3

%

22.1

%

Cable Products

 

15.8

%

11.5

%

14.7

%

11.7

%

Corporate - Stock-based compensation

 

-0.8

%

-0.5

%

-0.7

%

-0.4

%

Corporate - all other

 

-1.3

%

-1.0

%

-1.3

%

-1.0

%

 

 

 

 

 

 

 

 

 

 

Consolidated

 

16.9

%

19.9

%

16.8

%

19.7

%