EX-99.1 2 a10-2214_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 FOURTH QUARTER RESULTS
REPORTED BY AMPHENOL CORPORATION

 

Wallingford, Connecticut.  January 21, 2010.  Amphenol Corporation (NYSE-APH) reported today fourth quarter 2009 diluted earnings per share of $.50 compared to $.56 per share for the comparable 2008 period. Such per share amount for the 2009 period included a one-time charge of $.02 per share relating to the termination of certain interest rate swap agreements as part of the refinancing associated with the Company’s $600 million senior note issuance in November.   Such per share amount for the 2008 period included the benefit of $.03 per share relating to the cumulative reduction in the Company’s effective tax rate from 29% to 28%. Excluding these effects, diluted earnings per share was $.52 and $.53 for the fourth quarter of 2009 and 2008, respectively.   Sales for the fourth quarter 2009 were $758.3 million compared to $755.3 million for the 2008 period.  Currency translation had the effect of increasing sales by approximately 2% or $17.7 million in the fourth quarter 2009 compared to the 2008 period.

 

For the full year ended December 31, 2009, diluted earnings per share, excluding the one-time charge relating to the refinancing referenced above, was $1.85 compared to $2.34 for 2008.  Sales for the full year ended December 31, 2009 were $2,820.1 million compared to $3,236.5 million for 2008. Currency translation had the effect of decreasing sales by approximately $38.2 million for the full year 2009 period when compared to 2008.

 

Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated “We are pleased to close 2009 with strong fourth quarter results that exceeded the high end of the Company’s guidance.  This represents our third consecutive quarter of sequential growth in sales and income, with sales of $758 million, an operating income margin of 18.3% and earnings per share of $.52 (excluding the one-time item).  The 6% sequential sales increase was driven by strengthening demand in most markets including: Information Technology and Data Communications Equipment, Military/Aerospace, Industrial, Wireless Infrastructure and Automotive.  It is very gratifying that we have been able to enhance our market position in nearly all of our served markets. 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.  In addition, it is extremely rewarding that our focus on operating leverage and working capital management enabled us to further expand margins and generate strong cash flow.  Even with this improvement in demand, our management team continues to control 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 overall economic conditions remain less than certain, we believe we have seen both an improvement in demand levels as well as a stabilization of demand patterns in most markets.  As such, in 2010, we expect to see a return to more traditional seasonality.  Accordingly, based on constant currency exchange rates, we expect Q1 2010 revenues in the range of $735 million to $750 million and EPS in the range of $.49 to $.51.  We believe we can perform well in the current 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 significant actions in 2009 to enhance our competitive advantages and build sustained financial strength have created a solid base for future performance.  I am confident in the ability of our outstanding organization to dynamically adjust to the continued changing 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 fourth quarter results at 1:00 PM (ET) January 21, 2010.  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 11:00 P.M. (ET) on Monday, January 25, 2010.  The replay numbers are as follows:  toll free dial-in number is 888-566-0486 and International dial-in number is 203-369-3611; Passcode: 5137.

 

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, Asia and Africa 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

(dollars in thousands, except per share data)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2009

 

2008

 

2009

 

2008

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

758,296

 

$

755,282

 

$

2,820,065

 

$

3,236,471

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

516,664

 

514,876

 

1,933,511

 

2,187,318

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

241,632

 

240,406

 

886,554

 

1,049,153

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense

 

103,172

 

98,006

 

397,641

 

416,914

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

138,460

 

142,400

 

488,913

 

632,239

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(9,496

)

(10,041

)

(36,586

)

(39,627

)

Early extinguishment of interest rate swaps

 

(4,575

)

—

 

(4,575

)

—

 

Other (expenses) income, net

 

(283

)

137

 

(1,225

)

(32

)

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

124,106

 

132,496

 

446,527

 

592,580

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

(34,129

)

(30,952

)

(119,311

)

(163,003

)

 

 

 

 

 

 

 

 

 

 

Net income

 

89,977

 

101,544

 

327,216

 

429,577

 

Less: Net income attributable to noncontrolling interest

 

(2,338

)

(2,811

)

(9,382

)

(10,426

)

 

 

 

 

 

 

 

 

 

 

Net income attributable to Amphenol Corporation

 

$

87,639

 

$

98,733

 

$

317,834

 

$

419,151

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Basic

 

$

0.51

 

$

0.57

 

$

1.85

 

$

2.39

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding - Basic

 

172,487,683

 

173,797,473

 

171,607,643

 

175,663,797

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Diluted

 

$

0.50

 

$

0.56

 

$

1.83

 

$

2.34

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding - Diluted

 

175,068,731

 

175,545,630

 

173,941,752

 

178,813,013

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.015

 

$

0.015

 

$

0.060

 

$

0.060

 

 


 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(dollars in thousands)

 

 

 

December 31,

 

December 31,

 

 

 

2009

 

2008

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

384,613

 

$

214,987

 

Accounts receivable, less allowance for doubtful accounts of $18,785 and $14,982, respectively

 

449,591

 

515,999

 

Inventories, net

 

461,750

 

512,507

 

Other current assets

 

124,441

 

92,371

 

 

 

 

 

 

 

Total current assets

 

1,420,395

 

1,335,864

 

 

 

 

 

 

 

Land and depreciable assets, less accumulated depreciation of $575,187 and $510,764, respectively

 

332,875

 

344,515

 

Goodwill

 

1,368,672

 

1,232,335

 

Other long-term assets

 

97,242

 

81,445

 

 

 

 

 

 

 

 

 

$

3,219,184

 

$

2,994,159

 

 

 

 

 

 

 

LIABILITIES & SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

292,122

 

$

305,950

 

Accrued salaries, wages and employee benefits

 

64,143

 

59,644

 

Accrued income taxes

 

57,272

 

65,846

 

Accrued acquisition-related obligations

 

7,244

 

120,357

 

Other accrued expenses

 

81,979

 

82,596

 

Current portion of long-term debt and capital lease obligations

 

399

 

439

 

 

 

 

 

 

 

Total current liabilities

 

503,159

 

634,832

 

 

 

 

 

 

 

Long-term debt and capital lease obligations

 

753,050

 

786,020

 

Accrued pension and post employment benefit obligations

 

172,235

 

161,669

 

Other long-term liabilities

 

27,922

 

43,069

 

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

Common stock

 

174

 

171

 

Additional paid-in capital

 

71,368

 

22,746

 

Accumulated earnings

 

1,774,625

 

1,467,099

 

Accumulated other comprehensive loss

 

(100,090

)

(140,591

)

 

 

 

 

 

 

Total shareholders’ equity attributable to Amphenol Corporation

 

1,746,077

 

1,349,425

 

 

 

 

 

 

 

Noncontrolling interests

 

16,741

 

19,144

 

 

 

 

 

 

 

Total equity

 

1,762,818

 

1,368,569

 

 

 

 

 

 

 

 

 

$

3,219,184

 

$

2,994,159

 

 


 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(dollars in thousands)

 

 

 

Twelve months ended

 

 

December 31,

 

 

 

2009

 

2008

 

 

 

 

 

 

 

Net income

 

$

327,216

 

$

429,577

 

Adjustments for cash from operations:

 

 

 

 

 

Depreciation and amortization

 

98,524

 

91,302

 

Stock-based compensation

 

20,240

 

16,316

 

Net change in receivables sold

 

(3,000

)

—

 

Excess tax benefits from stock-based payment arrangements

 

(16,085

)

(21,307

)

Net change in components of working capital

 

144,654

 

(18,689

)

Net change in other long-term assets and liabilities

 

10,748

 

(15,676

)

 

 

 

 

 

 

Cash provided by operations

 

582,297

 

481,523

 

 

 

 

 

 

 

Cash flow from investing activities:

 

 

 

 

 

Capital additions, net

 

(59,834

)

(107,340

)

Purchase of short term investments

 

(33,342

)

(2,938

)

Investments in acquisitions

 

(280,014

)

(135,807

)

 

 

 

 

 

 

Cash flow used in investing activities

 

(373,190

)

(246,085

)

 

 

 

 

 

 

Cash flow from financing activities:

 

 

 

 

 

Net change in borrowings under revolving credit facilities

 

(631,934

)

61,914

 

Borrowings under senior notes

 

598,878

 

—

 

Settlement of interest rate swap agreements

 

(4,575

)

—

 

Payments of fees and expenses related to senior notes financing

 

(4,650

)

—

 

Purchase of treasury stock

 

—

 

(293,625

)

Proceeds from exercise of stock options

 

25,481

 

27,081

 

Excess tax benefits from stock-based payment arrangements

 

16,085

 

21,307

 

Payments to noncontrolling interests

 

(23,328

)

—

 

Dividend payments

 

(10,279

)

(10,617

)

 

 

 

 

 

 

Cash flow used in financing activities

 

(34,322

)

(193,940

)

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(5,159

)

(10,152

)

 

 

 

 

 

 

Net change in cash and cash equivalents

 

169,626

 

31,346

 

Cash and cash equivalents balance, beginning of period

 

214,987

 

183,641

 

 

 

 

 

 

 

Cash and cash equivalents balance, end of period

 

$

384,613

 

$

214,987

 

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

Interest.

 

$

38,532

 

$

39,180

 

Income taxes

 

117,122

 

124,929

 

 


 

AMPHENOL CORPORATION

SEGMENT INFORMATION

(dollars in thousands)

 

 

 

Three months ended

 

Twelve months ended

 

 

 

December 31,

 

December 31,

 

 

 

2009

 

2008

 

2009

 

2008

 

 

 

 

 

 

 

 

 

 

 

Trade Sales:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

695,127

 

$

692,656

 

$

2,566,578

 

$

2,950,570

 

Cable Products

 

63,169

 

62,626

 

253,487

 

285,901

 

Consolidated

 

$

758,296

 

$

755,282

 

$

2,820,065

 

$

3,236,471

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

142,866

 

$

147,919

 

$

505,772

 

$

648,605

 

Cable Products

 

9,798

 

7,004

 

38,751

 

32,535

 

Stock-based compensation expense

 

(4,981

)

(4,539

)

(20,241

)

(16,316

)

Other operating expenses

 

(9,223

)

(7,984

)

(35,369

)

(32,585

)

Consolidated

 

$

138,460

 

$

142,400

 

$

488,913

 

$

632,239

 

 

 

 

 

 

 

 

 

 

 

ROS%:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

20.6

%

21.4

%

19.7

%

22.0

%

Cable Products

 

15.5

%

11.2

%

15.3

%

11.4

%

Corporate - stock-based compensation

 

-0.7

%

-0.6

%

-0.7

%

-0.5

%

Corporate - all other

 

-1.2

%

-1.1

%

-1.3

%

-1.0

%

 

 

 

 

 

 

 

 

 

 

Consolidated

 

18.3

%

18.9

%

17.3

%

19.5

%