EX-99.1 2 a10-14393_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 2010 SECOND QUARTER RESULTS
REPORTED BY AMPHENOL CORPORATION

 

Wallingford, Connecticut, July 21, 2010.  Amphenol Corporation (NYSE-APH) reported today second quarter 2010 diluted earnings per share of $.74 compared to $.43 per share for the comparable 2009 period. Such per share amount for the 2010 quarter includes a $10 million, or $.06 per share, net benefit relating to a reduction in international tax expense due primarily to the favorable settlement of certain tax positions and the completion of prior year audits.  Excluding this effect, diluted earnings per share was $.68. Sales for the second quarter 2010 were $885 million compared to $685 million for the 2009 period.  Currency translation had the effect of decreasing sales by approximately .4% or $3 million in the second quarter 2010 compared to the 2009 period.

 

For the six months ended June 30, 2010, diluted earnings per share was $1.30 compared to $.86 for the 2009 period.  Sales for the six months ended June 30, 2010 were $1,656 million compared to $1,345 million for the 2009 period. Currency translation had the effect of increasing sales by approximately $12 million for the six month 2010 period compared to the 2009 period.

 

Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated “The second quarter established a new record of performance for Amphenol, with sales of $885 million and EPS of $.68. Sales and EPS (excluding tax items) grew 15% and 24% sequentially, and increased 29% and 58% compared to the prior year.   The sales increase was driven by healthy demand in all of our end markets led by: Information Technology and Data Communications Equipment, Industrial, Automotive, and Wireless Devices. We are especially encouraged that orders continued to be strong with a book to bill of 1.03.  Our strategy of market and geographic diversification combined with a deep commitment to develop performance enhancing technologies for our customers enabled the Company to capitalize on the favorable market environment. Through implementation of our strategy, we continue to expand the Company’s growth opportunities into new markets, customers and applications.  We are especially pleased that even with the significant improvement in demand, our management team continues to control

 


 

costs in a proactive and dynamic manner ensuring the strength of our financial performance. This focus on operating leverage enabled us to further expand margins for the fifth consecutive quarter to 19.8% in Q2 2010 up from 18.8% last quarter and 16.9% last year, contributing to a 58% year over year increase in earnings per share, net of tax items. In addition, we generated a strong $104 million of cash flow from operations in the quarter, demonstrating the ongoing quality of the Company’s earnings.”

 

“Earlier this month, the Company completed the acquisition of Borisch Manufacturing, a leading U.S. manufacturer of value-add interconnect and electro-mechanical systems for the military/aerospace market with sales in the last twelve months of approximately $100 million.  This acquisition, is consistent with our long-established strategy of offering highly engineered, value-add interconnect solutions to military/aerospace customers, and creates further strength for us in this important market.  We are pleased with this complementary addition and are excited about the growth potential created in this important market.”

 

“The second quarter was an excellent quarter in all respects.  I am very proud of our organization which has executed well in all phases of the recent economic downturn and subsequent recovery.  While overall conditions have improved, worldwide economic conditions remain less than certain for the remainder of 2010. Nevertheless, assuming a continuation of the current improved economic climate and normal summer seasonality in North America and Europe, and based on constant currency exchange rates, we expect Q3 2010 revenues in the range of $880 million to $895 million and EPS in the range of $.67 to $.69.”

 

“Looking forward, the continued proliferation of new electronics in all of our end markets presents a unique expansion opportunity for Amphenol.  Our significant actions 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 first quarter results at 1:00 PM (ET) July 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 Friday, July 23, 2010.  The replay numbers are as follows:  toll free dial-in number is 866-501-2955 and International dial-in number is 203-369-1823; 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 areas 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, 2009, 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,

 

 

 

2010

 

2009

 

2010

 

2009

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

884,798

 

$

685,184

 

$

1,655,752

 

$

1,345,196

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

595,499

 

471,034

 

1,117,261

 

924,667

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

289,299

 

214,150

 

538,491

 

420,529

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense

 

113,674

 

98,672

 

217,822

 

194,366

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

175,625

 

115,478

 

320,669

 

226,163

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(9,968

)

(9,131

)

(19,981

)

(18,129

)

Other income (expenses), net

 

764

 

(382

)

1,223

 

(597

)

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

166,421

 

105,965

 

301,911

 

207,437

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

(35,412

)

(29,140

)

(70,764

)

(53,562

)

 

 

 

 

 

 

 

 

 

 

Net income

 

131,009

 

76,825

 

231,147

 

153,875

 

Less: Net income attributable to noncontrolling interests

 

(1,338

)

(1,955

)

(3,123

)

(4,595

)

 

 

 

 

 

 

 

 

 

 

Net income attributable to Amphenol Corporation

 

$

129,671

 

$

74,870

 

$

228,024

 

$

149,280

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Basic

 

$

0.75

 

$

0.44

 

$

1.32

 

$

0.87

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Basic

 

173,519,882

 

171,317,112

 

173,393,698

 

171,251,519

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Diluted

 

$

0.74

 

$

0.43

 

$

1.30

 

$

0.86

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Diluted

 

175,885,465

 

173,649,705

 

175,731,091

 

173,375,613

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.015

 

$

0.015

 

$

0.030

 

$

0.030

 

 


 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(dollars in thousands)

 

 

 

June 30,

 

December 31,

 

 

 

2010

 

2009

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

436,677

 

$

384,613

 

Accounts receivable, less allowance for doubtful accounts of $17,247 and $18,785, respectively

 

645,595

(1)

449,591

 

Inventories, net

 

498,552

 

461,750

 

Other current assets

 

176,879

 

124,441

 

 

 

 

 

 

 

Total current assets

 

1,757,703

 

1,420,395

 

 

 

 

 

 

 

Land and depreciable assets, less accumulated depreciation of $562,464 and $575,187, respectively

 

325,186

 

332,875

 

Goodwill

 

1,382,363

 

1,368,672

 

Other long-term assets

 

91,516

 

97,242

 

 

 

 

 

 

 

 

 

$

3,556,768

 

$

3,219,184

 

 

 

 

 

 

 

LIABILITIES & SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

377,618

 

$

292,122

 

Accrued salaries, wages and employee benefits

 

65,413

 

64,143

 

Accrued income taxes

 

55,749

 

57,272

 

Accrued acquisition-related obligations

 

16,492

 

7,244

 

Other accrued expenses

 

81,279

 

81,979

 

Short-term debt

 

365

 

399

 

 

 

 

 

 

 

Total current liabilities

 

596,916

 

503,159

 

 

 

 

 

 

 

Long-term debt

 

781,604

(1)

753,050

 

Accrued pension and post employment benefit obligations

 

169,221

 

172,235

 

Other long-term liabilities

 

28,011

 

27,922

 

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

Common stock

 

174

 

174

 

Additional paid-in capital

 

91,219

 

71,368

 

Accumulated earnings

 

1,997,445

 

1,774,625

 

Accumulated other comprehensive loss

 

(135,677

)

(100,090

)

 

 

 

 

 

 

Total shareholders’ equity attributable to Amphenol Corporation

 

1,953,161

 

1,746,077

 

 

 

 

 

 

 

Noncontrolling interests

 

27,855

 

16,741

 

 

 

 

 

 

 

Total equity

 

1,981,016

 

1,762,818

 

 

 

 

 

 

 

 

 

$

3,556,768

 

$

3,219,184

 

 

NOTE (1)

The Company has a $100 million receivables securitization program that expires in May 2013. In accordance with previous accounting guidance, this facility was accounted for off balance sheet as a sale of receivables. Effective January 1, 2010, the Company adopted the amendments to the Transfers and Servicing and Consolidation Topics of the Accounting Standards Codification. The adoption of these amendments has resulted in the Company reporting transactions under this facility as long-term debt and the related receivables remain on the balance sheet. At June 30, 2010, borrowings under the securitization facility were $28 million. At December 31, 2009, $82 million in receivables were sold under the Facility and excluded from the Condensed Consolidated Balance Sheets.

 


 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(Unaudited)

(dollars in thousands)

 

 

 

Six months ended

 

 

 

June 30,

 

 

 

2010

 

2009

 

 

 

 

 

 

 

Cash flow from operating activities:

 

 

 

 

 

Net income

 

$

231,147

 

$

153,875

 

Adjustments for cash flow from operating activities:

 

 

 

 

 

Depreciation and amortization

 

49,493

 

47,770

 

Net change in receivables sold under Receivables Securitization Facility

 

(82,000

)(1)

(6,000

)

Stock-based compensation expense

 

11,615

 

10,028

 

Net change in components of working capital

 

(78,648

)

76,057

 

Net change in other long-term assets and liabilities

 

4,264

 

2,911

 

 

 

 

 

 

 

Cash flow provided by operating activities

 

135,871

 

284,641

 

 

 

 

 

 

 

Cash flow from investing activities:

 

 

 

 

 

Additions to property, plant and equipment

 

(43,086

)

(30,832

)

Purchase of short term investments

 

(44,591

)

(593

)

Acquisitions, net of cash acquired

 

(13,624

)

(271,578

)

 

 

 

 

 

 

Cash flow used in investing activities

 

(101,301

)

(303,003

)

 

 

 

 

 

 

Cash flow from financing activities:

 

 

 

 

 

Long-term borrowings under credit facilities

 

102,582

(1)

395,200

 

Repayments of long-term debt

 

(73,800

)

(359,919

)

Proceeds from exercise of stock options

 

7,397

 

3,015

 

Excess tax benefits from stock-based payment arrangements

 

1,333

 

696

 

Payments to shareholders of noncontrolling interests

 

(2,421

)

—

 

Dividend payments

 

(5,197

)

(7,706

)

 

 

 

 

 

 

Cash flow provided by financing activities

 

29,894

 

31,286

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(12,400

)

(7,146

)

 

 

 

 

 

 

Net change in cash and cash equivalents

 

52,064

 

5,778

 

 

 

 

 

 

 

Cash and cash equivalents balance, beginning of period

 

384,613

 

214,987

 

 

 

 

 

 

 

Cash and cash equivalents balance, end of period

 

$

436,677

 

$

220,765

 

 

NOTE (1)

The Company has a $100 million receivables securitization program. In accordance with previous accounting guidance, this facility was accounted for off balance sheet as a sale of receivables. Effective January 1, 2010, the Company adopted the amendments to the Transfers and Servicing and Consolidation Topics of the Accounting Standards Codification. As a result of the adoption transfers of receivables occurring on or after January 1, 2010 are reflected as debt issued in the Company’s Condensed Consolidated Statements of Cash Flow. Excluding the impact of adoption, long-term borrowings under credit facilities would be $20,582 resulting in cash flows used in financing activities of $(52,256) and cash flows provided by operating activities of $217,871.

 


 

AMPHENOL CORPORATION

SEGMENT INFORMATION

(dollars in thousands)

(Unaudited)

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2010

 

2009

 

2010

 

2009

 

 

 

 

 

 

 

 

 

 

 

Trade Sales:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

817,146

 

$

621,440

 

$

1,520,744

 

$

1,223,398

 

Cable Products

 

67,652

 

63,744

 

135,008

 

121,798

 

Consolidated

 

$

884,798

 

$

685,184

 

$

1,655,752

 

$

1,345,196

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

181,820

 

$

119,743

 

$

330,482

 

$

236,186

 

Cable Products

 

9,120

 

10,059

 

19,163

 

17,895

 

Stock-based compensation expense

 

(6,172

)

(5,245

)

(11,615

)

(10,028

)

Other operating expenses

 

(9,143

)

(9,079

)

(17,361

)

(17,890

)

Consolidated

 

$

175,625

 

$

115,478

 

$

320,669

 

$

226,163

 

 

 

 

 

 

 

 

 

 

 

ROS%:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

22.3

%

19.3

%

21.7

%

19.3

%

Cable Products

 

13.5

%

15.8

%

14.2

%

14.7

%

Corporate - stock-based compensation

 

-0.7

%

-0.8

%

-0.7

%

-0.7

%

Corporate - all other

 

-1.0

%

-1.3

%

-1.0

%

-1.3

%

 

 

 

 

 

 

 

 

 

 

Consolidated

 

19.8

%

16.9

%

19.4

%

16.8

%