EX-99.1 2 a12-24312_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

 

Executive Vice President and

 

  Chief Financial Officer

 

203/265-8630

 

www.amphenol.com

 

THIRD QUARTER 2012 RECORD RESULTS
REPORTED BY AMPHENOL CORPORATION

 

Wallingford Connecticut, October 17, 2012.  Amphenol Corporation (NYSE-APH) reported today third quarter 2012 record diluted earnings per share of $.90 compared to $.79 per share for the comparable 2011 period.  Such per share amount for the 2011 quarter includes the effect of a $13 million ($8 million after tax), or $.05 per share one-time charge relating to flood damage at the Company’s Sidney, New York facility and a $4 million, or $.03 per share, net benefit relating to a reduction in tax expense due primarily to the completion of prior year audits.  Excluding these effects, diluted earnings per share was $.81 for the 2011 period. Sales for the third quarter 2012 were a record $1.103 billion compared to $1.033 billion for the 2011 period.  Currency translation had the effect of decreasing sales by approximately $19 million in the third quarter 2012 compared to the 2011 period.

 

For the nine months ended September 30, 2012, diluted earnings per share were $2.53 compared to $2.36 for the 2011 period on an as reported basis and $2.32 for the 2011 period excluding one-time items. One-time items in the 2011 period of $.04 include the $.02 net third quarter charge described above and a $.06 per share gain related to the adjustment of a contingent purchase price obligation for a 2010 acquisition.  Sales for the nine months ended September 30, 2012 were $3.146 billion compared to $2.991 billion for the 2011 period.  Currency translation had the effect of decreasing sales by approximately $42 million for the nine month 2012 period compared to the 2011 period.

 

Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated “We are pleased to report new records of performance in the third quarter of 2012 with sales and EPS of $1.103 billion and $.90, respectively.  Sales increased by approximately 7% year-over-year and 4% sequentially. On a year-over-year basis, we experienced strength in the automotive, industrial, commercial aerospace and telecommunications and data communications equipment markets.  On a sequential basis the Company saw strong growth in mobile devices primarily related to ramp ups of new mobile computing devices.  Our strong growth is once again confirmation of the significant benefits of the Company’s diversity, especially given the increasing level of uncertainty in many of the world’s economies.

 


 

In addition, it is extremely rewarding that the Company’s unique entrepreneurial culture continues to drive an unwavering focus on profitability and cash flow, resulting in another sequential operating margin improvement to 19.5% and strong operating cash flow in the quarter of $176 million.  I am very proud of our organization as we continue to execute well.”

 

“Our ongoing strategy of market and geographic diversification combined with our strong commitment to developing enabling technologies for our customers in all markets, both through organic product development and through our acquisition program, continues to expand the Company’s growth opportunities.  Consistent with this strategy, in the third quarter, the Company completed the acquisitions of Holland Electronics, a leading U.S. supplier of interconnect products for the broadband and satellite communications markets with annual sales of approximately $60 million, and Griffith Enterprises, a U.S. manufacturer of high-technology, value-added assemblies, primarily for commercial aerospace applications, with annual sales of approximately $15 million.  These acquisitions significantly enhance the Company’s product portfolio in two important end markets providing new highly-engineered interconnect solutions to complement our broadband cable offering and expanding our value-add solutions for the fast growing commercial air market.  In addition to our successful acquisition program, the Company continues to deploy its financial strength in a variety of other ways to increase shareholder value.  These include the purchase in this quarter of .5 million shares of the Company’s stock pursuant to our stock repurchase plan as well as the previously announced increase in the quarterly dividend to $.105 per share effective for dividends paid after March 2012.”

 

“In recent months there has been an increasing level of market uncertainty related to a range of fiscal and budgetary issues.  Based on these considerations and assuming current currency exchange rates we expect fourth quarter 2012 revenues in the range of $1.095 billion to $1.115 billion and diluted EPS in the range of $.88 to $.91  For the full year 2012, we now expect to achieve revenues and diluted EPS in the range of $4.241 billion to $4.261 billion and $3.41  to $3.44, respectively, an increase in revenues of 8% and in diluted EPS (excluding one-time items), of 12% to 13% over 2011. This compares to prior full year 2012 guidance for revenues and diluted EPS in the range of $4.210 billion to $4.250 billion and $3.38 to $3.44, respectively.  Despite the many uncertainties in the global marketplace, we believe we can perform well in the dynamic electronics market 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.”

 

“The electronics revolution continues to accelerate, with new applications and higher performance requirements driving increased demand for our leading interconnect technologies in all of our end markets.  This creates a significant, long-term growth opportunity for Amphenol.  Importantly, our ongoing 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 management team to dynamically adjust to a constantly changing market environment, to continue to generate strong profitability and to further capitalize on the many opportunities to expand our market position.”

 

The Company will host a conference call to discuss its third quarter results at 1:00 PM (EST) October 17, 2012.  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 11:59 P.M. (EST) on Friday, October 19, 2012.  The replay numbers are toll free 800-839-2290; International toll number is 203-369-3607; Passcode: 5137.

 


 

A live broadcast as well as a replay will also be available on the Internet at http://www.amphenol.com/investors/webcasts.php.

 

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 Communications, Industrial, Telecommunications and Data Communications, Wireless 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, 2011, 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,

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,103,376

 

$

1,032,754

 

$

3,146,087

 

$

2,991,077

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

759,047

 

709,277

 

2,158,326

 

2,042,254

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

344,329

 

323,477

 

987,761

 

948,823

 

 

 

 

 

 

 

 

 

 

 

Casualty loss related to flood

 

—

 

12,831

 

—

 

12,831

 

 

 

 

 

 

 

 

 

 

 

Change in contingent acquisition related obligations

 

—

 

—

 

—

 

(17,813

)

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense

 

128,659

 

124,587

 

380,636

 

366,787

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

215,670

 

186,059

 

607,125

 

587,018

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(15,166

)

(10,498

)

(44,014

)

(31,885

)

Other income, net

 

2,636

 

2,255

 

7,457

 

6,089

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

203,140

 

177,816

 

570,568

 

561,222

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

(54,340

)

(41,758

)

(152,627

)

(147,385

)

 

 

 

 

 

 

 

 

 

 

Net income

 

148,800

 

136,058

 

417,941

 

413,837

 

Less: Net income attributable to noncontrolling interests

 

(1,350

)

(1,435

)

(2,986

)

(3,505

)

 

 

 

 

 

 

 

 

 

 

Net income attributable to Amphenol Corporation

 

$

147,450

 

$

134,623

 

$

414,955

 

$

410,332

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Basic

 

$

0.91

 

$

0.80

 

$

2.56

 

$

2.39

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Basic

 

161,349,493

 

167,951,866

 

161,905,598

 

171,411,779

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Diluted (1)

 

$

0.90

 

$

0.79

 

$

2.53

 

$

2.36

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Diluted

 

163,780,171

 

169,835,067

 

164,333,598

 

173,728,409

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.105

 

$

0.015

 

$

0.315

 

$

0.045

 

 

Note 1

 

Earnings per share for the third quarter of 2011 includes a $12.8 million charge ($8.1 million after tax), or ($.05) per share, casualty loss related to flood and a $4.5 million, or $.03 per share, net tax 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. Earnings per share for the nine months ended September 30, 2011 also includes a $17.8 million ($11.2 million after tax) gain, or $.06 per share, related to the adjustment of a contingent purchase price obligation for a 2010 acquisition. Excluding these effects, diluted earnings per share was $.81 and $2.32 for the three months and nine months ended September 30, 2011, respectively.

 


 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(dollars in thousands)

 

 

 

September 30,

 

December 31,

 

 

 

2012

 

2011

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

725,546

 

$

515,086

 

Short-term investments

 

167,345

 

133,848

 

Total cash, cash equivalents and short-term investments

 

892,891

 

648,934

 

Accounts receivable, less allowance for doubtful accounts of $11,085 and $11,113, respectively

 

903,344

 

767,181

 

Inventories, net

 

712,189

 

649,862

 

Other current assets

 

132,557

 

115,260

 

 

 

 

 

 

 

Total current assets

 

2,640,981

 

2,181,237

 

 

 

 

 

 

 

Land and depreciable assets, less accumulated depreciation of $701,032 and $655,869, respectively

 

407,587

 

380,501

 

Goodwill

 

1,876,539

 

1,746,113

 

Other long-term assets

 

145,858

 

137,374

 

 

 

 

 

 

 

 

 

$

5,070,965

 

$

4,445,225

 

 

 

 

 

 

 

LIABILITIES & EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

478,100

 

$

377,867

 

Accrued salaries, wages and employee benefits

 

86,014

 

83,810

 

Accrued income taxes

 

78,956

 

87,315

 

Other accrued expenses

 

127,425

 

93,125

 

Short-term debt

 

94,093

 

298

 

 

 

 

 

 

 

Total current liabilities

 

864,588

 

642,415

 

 

 

 

 

 

 

Long-term debt

 

1,511,297

 

1,376,831

 

Accrued pension and post employment benefit obligations

 

205,922

 

207,049

 

Other long-term liabilities

 

50,940

 

34,144

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

Common stock

 

162

 

163

 

Additional paid-in capital

 

302,547

 

189,166

 

Accumulated earnings

 

2,237,109

 

2,102,497

 

Accumulated other comprehensive loss

 

(112,977

)

(120,057

)

 

 

 

 

 

 

Total shareholders’ equity attributable to Amphenol Corporation

 

2,426,841

 

2,171,769

 

 

 

 

 

 

 

Noncontrolling interests

 

11,377

 

13,017

 

 

 

 

 

 

 

Total equity

 

2,438,218

 

2,184,786

 

 

 

 

 

 

 

 

 

$

5,070,965

 

$

4,445,225

 

 


 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(Unaudited)

(dollars in thousands)

 

 

 

Nine months ended

 

 

 

September 30,

 

 

 

2012

 

2011

 

 

 

 

 

 

 

Cash flow from operating activities:

 

 

 

 

 

Net income

 

$

417,941

 

$

413,837

 

Adjustments for cash flow from operating activities:

 

 

 

 

 

Depreciation and amortization

 

89,339

 

88,197

 

Stock-based compensation expense

 

23,167

 

21,011

 

Non-cash casualty loss related to flood

 

—

 

12,400

 

Change in contingent acquisition related obligations

 

—

 

(17,813

)

Excess tax benefits from stock-based compensation payment arrangements

 

(17,805

)

(5,624

)

Net change in components of working capital

 

(44,789

)

(125,644

)

Net change in other long-term assets and liabilities

 

(250

)

10,225

 

 

 

 

 

 

 

Cash flow provided by operating activities

 

467,603

 

396,589

 

 

 

 

 

 

 

Cash flow from investing activities:

 

 

 

 

 

Additions to property, plant and equipment

 

(96,489

)

(72,048

)

Proceeds from disposals of fixed assets

 

4,174

 

7,134

 

Purchases of short-term investments

 

(220,330

)

(93,833

)

Sales and maturities of short-term investments

 

186,833

 

101,444

 

Acquisitions, net of cash acquired

 

(179,597

)

(52,993

)

 

 

 

 

 

 

Cash flow used in investing activities

 

(305,409

)

(110,296

)

 

 

 

 

 

 

Cash flow from financing activities:

 

 

 

 

 

Borrowings under senior notes

 

498,730

 

—

 

Borrowings under credit facilities

 

606,600

 

675,100

 

Repayments under credit facilities

 

(876,960

)

(215,598

)

Payment of fees and expenses related to debt financing

 

(4,318

)

(2,125

)

Proceeds from exercise of stock options

 

73,450

 

24,255

 

Excess tax benefits from stock-based compensation payment arrangements

 

17,805

 

5,624

 

Payment of contingent acquisition related obligations

 

—

 

(40,000

)

Payments to shareholders of noncontrolling interests

 

(4,713

)

(28,689

)

Purchase and retirement of treasury stock

 

(229,442

)

(534,000

)

Dividend payments

 

(36,385

)

(7,788

)

 

 

 

 

 

 

Cash flow provided by (used in) financing activities

 

44,767

 

(123,221

)

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

3,499

 

1,219

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

210,460

 

164,291

 

Cash and cash equivalents balance, beginning of period

 

515,086

 

525,888

 

 

 

 

 

 

 

Cash and cash equivalents balance, end of period

 

$

725,546

 

$

690,179

 

 


 

AMPHENOL CORPORATION

SEGMENT INFORMATION

(dollars in thousands)

(Unaudited)

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

Trade Sales:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

1,033,309

 

$

957,153

 

$

2,926,834

 

$

2,778,418

 

Cable Products

 

70,067

 

75,601

 

219,253

 

212,659

 

Consolidated

 

$

1,103,376

 

$

1,032,754

 

$

3,146,087

 

$

2,991,077

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

224,517

 

$

205,611

 

$

627,962

 

$

603,103

 

Cable Products

 

8,697

 

9,874

 

29,831

 

26,833

 

Stock-based compensation expense

 

(8,066

)

(7,630

)

(23,167

)

(21,011

)

Change in contingent acquisition related obligations

 

—

 

—

 

—

 

17,813

 

Casualty loss related to flood

 

—

 

(12,831

)

—

 

(12,831

)

Other operating expenses

 

(9,478

)

(8,965

)

(27,501

)

(26,889

)

Consolidated

 

$

215,670

 

$

186,059

 

$

607,125

 

$

587,018

 

 

 

 

 

 

 

 

 

 

 

ROS%:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

21.7

%

21.5

%

21.5

%

21.7

%

Cable Products

 

12.4

%

13.1

%

13.6

%

12.6

%

Corporate - stock-based compensation

 

-0.7

%

-0.7

%

-0.7

%

-0.7

%

Change in contingent acquisition related obligations

 

0.0

%

0.0

%

0.0

%

0.6

%

Casualty loss related to flood

 

0.0

%

-1.3

%

0.0

%

-0.4

%

Corporate - all other

 

-0.9

%

-0.9

%

-0.9

%

-0.9

%

 

 

 

 

 

 

 

 

 

 

Consolidated

 

19.5

%

18.0

%

19.3

%

19.6

%