EX-99.1 2 a14-17582_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

 

 SECOND QUARTER 2014 RECORD RESULTS

AND INCREASE IN DIVIDEND

REPORTED BY AMPHENOL CORPORATION

Wallingford, Connecticut. July 23, 2014.  Amphenol Corporation (NYSE:APH) reported today record second quarter 2014 diluted earnings per share of $1.09 compared to $.95 for the comparable 2013 period. Sales for the second quarter 2014 were a record $1.314 billion compared to $1.136 billion for the 2013 period. Currency translation had the effect of increasing sales by approximately $9.1 million in the second quarter 2014 compared to the 2013 period.

 

For the six months ended June 30, 2014, diluted earnings per share was $2.07 on an as reported basis and $2.08 excluding one-time items, compared to $1.89 on as reported basis and $1.82 excluding one-time items for the comparable 2013 period.  The 2014 period includes a one-time charge of $2 million ($.01 per share) related to the amortization of the value associated with acquired backlog relating to an acquisition completed by the Company in the fourth quarter of 2013.  The 2013 period includes a one-time tax benefit of $11 million, or $.07 per share related to the January 2, 2013 reinstatement of certain federal income tax provisions with retroactive effect to 2012.  Under U.S. GAAP, the related benefit of $11 million ($.07 per share) relating to the 2012 tax year was recorded as a one-time benefit in the first quarter of 2013 at the date of reinstatement.

 

The Company’s Board of Directors has approved an increase in the quarterly dividend from $.20 to $.25 per share to be paid on or about October 1, 2014 to holders of record of the Company’s Class A Common stock as of September 10, 2014.

 

Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated, “For the second quarter 2014, we are pleased to  report new records in both sales and EPS of $1.314 billion and $1.09, up 16% and 15%, respectively, over the comparable 2013 quarter.  The Company achieved strong year-over-year growth in most of our end markets, including the automotive, commercial air, industrial and mobile networks markets.  This growth was driven both organically and through the Company’s successful acquisition program.  In addition, sales grew 5% sequentially supported by growth in all of the Company’s markets. Our ongoing strategy of market and geographic diversification combined with our strong commitment to

 


 

developing enabling technologies for our customers in all markets, as well as our acquisition program, continue to expand the Company’s growth opportunities.”

 

“In addition, it is extremely rewarding that the Company’s unique entrepreneurial culture continues to drive an unwavering focus on profitability, resulting in a 70 basis point sequential increase in operating margin over the first quarter 2014 to 19.5% in the second quarter 2014.  This performance is a direct result of our outstanding management team’s ability to drive incremental operating margins through focused operational execution and an unrelenting focus on all elements of cost. I am very proud of our organization as we continue to execute well.”

 

“The Company achieved strong operating cash flow in the quarter of $181 million.  The Company continues to deploy its financial strength in a variety of ways to increase shareholder value, including the purchase, during the quarter, of 1.4 million shares of the Company’s stock pursuant to our stock repurchase plan and a 25% increase in the quarterly dividend from $.20 to $.25 per share.”

 

“Assuming stable economic conditions and constant currency exchange rates, we expect third quarter 2014 revenues in the range of $1.320 billion to $1.350 billion and diluted EPS in the range of $1.12 to $1.15.  For the year 2014, we are increasing our expectations for revenues and diluted EPS and now expect to achieve revenues in the range of $5.210 billion to $5.270 billion, an increase of 13% to 14% over 2013 and diluted EPS of $4.35 to $4.41 (excluding one-time items), an increase of 13% to 15% over 2013. While there remain uncertainties in the global economy, we believe we can perform well in the dynamic electronics marketplace 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 high technology products across all of our end markets.  This creates a significant, long-term growth opportunity for Amphenol.  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 the 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 second quarter results at 1:00 PM (EDT) July 23, 2014.  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. (EDT) on Saturday, August 23, 2014.  The replay numbers are toll free 888-566-0574; International toll number is 402-998-0680; Passcode: 7183.

 

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 largest designers, manufacturers and marketers of electrical, electronic and fiber optic connectors, interconnect systems, antennas, sensors and sensor-based products and coaxial and high-speed specialty cable.  Amphenol designs, manufactures and assembles its products at facilities in the Americas, Europe, Asia, Australia and Africa and sells its products through its own global sales force, independent representatives and a global network of electronics distributors.  Amphenol has a diversified presence as a leader in high growth areas of the interconnect market including:  Automotive, Broadband Communications, Commercial Aerospace, Industrial, Information Technology and Data Communications, Military, Mobile Devices and Mobile Networks.

 

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, 2013, 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,

 

 

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,314,172

 

$

1,136,067

 

$

2,560,246

 

$

2,215,872

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

897,405

 

776,279

 

1,754,623

 

1,518,192

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

416,767

 

359,788

 

805,623

 

697,680

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

 

—

 

—

 

2,020

 

—

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense

 

160,957

 

135,775

 

315,658

 

266,710

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

255,810

 

224,013

 

487,945

 

430,970

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(20,081

)

(15,621

)

(39,152

)

(31,078

)

Other income, net

 

4,293

 

3,033

 

8,358

 

5,818

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

240,022

 

211,425

 

457,151

 

405,710

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

(63,605

)

(56,557

)

(120,932

)

(97,229

)

 

 

 

 

 

 

 

 

 

 

Net income

 

176,417

 

154,868

 

336,219

 

308,481

 

Less: Net income attributable to noncontrolling interests

 

(1,485

)

(880

)

(2,804

)

(1,486

)

 

 

 

 

 

 

 

 

 

 

Net income attributable to Amphenol Corporation

 

$

174,932

 

$

153,988

 

$

333,415

 

$

306,995

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Basic

 

$

1.11

 

$

0.96

 

$

2.12

 

$

1.92

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Basic

 

157,114,685

 

159,705,021

 

157,320,441

 

159,721,503

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Diluted (1)(2)

 

$

1.09

 

$

0.95

 

$

2.07

 

$

1.89

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Diluted

 

160,791,135

 

162,935,428

 

160,983,079

 

162,824,829

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.200

 

$

0.105

 

$

0.400

 

$

0.210

 

 

Note 1

Earnings per share in the six months ended June 30, 2014 included acquisition-related expenses of $2.0 million ($1.3 million after-tax), or $.01 per share, relating to the amortization of the value associated with acquired backlog relating to an acquisition completed by the Company in the fourth quarter of 2013. Excluding this effect, diluted earnings per share was $2.08 for the six months ended June 30, 2014.

 

 

Note 2

Earnings per share in the six months ended June 30, 2013 included an income tax benefit of $11.3 million, or $.07 per share, resulting from the delay, by the U. S. government, in the reinstatement of certain federal income tax provisions for the year 2012 relating primarily to research and development credits and certain U.S. taxes on foreign income. Such tax provisions were reinstated on January 2, 2013 with retroactive effect to 2012. Under U.S. GAAP, the related benefit to the Company of $11.3 million, or $.07 per share, relating to the 2012 tax year was recorded as a benefit in the first quarter of 2013 at the date of reinstatement. Excluding these effects, diluted earnings per share was $1.82 for the six months ended June 30, 2013.

 


 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(dollars in thousands)

 

 

 

June 30,

 

December 31,

 

 

 

2014

 

2013

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

1,080,083

 

$

886,838

 

Short-term investments

 

363,817

 

305,324

 

Total cash, cash equivalents and short-term investments

 

1,443,900

 

1,192,162

 

Accounts receivable, less allowance for doubtful accounts of $11,758 and $12,010, respectively

 

1,031,071

 

1,001,012

 

Inventories

 

805,452

 

792,644

 

Other current assets

 

181,962

 

171,749

 

 

 

 

 

 

 

Total current assets

 

3,462,385

 

3,157,567

 

 

 

 

 

 

 

Land and depreciable assets, less accumulated depreciation of $847,319 and $803,954, respectively

 

558,652

 

532,425

 

Goodwill and other long term assets

 

2,496,263

 

2,478,036

 

 

 

 

 

 

 

 

 

$

6,517,300

 

$

6,168,028

 

 

 

 

 

 

 

LIABILITIES & EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

534,381

 

$

549,942

 

Accrued salaries, wages and employee benefits

 

107,755

 

104,859

 

Accrued income taxes

 

66,737

 

96,388

 

Accrued dividends

 

31,370

 

—

 

Other accrued expenses

 

170,880

 

157,252

 

Short-term debt

 

800,670

 

701,437

 

 

 

 

 

 

 

Total current liabilities

 

1,711,793

 

1,609,878

 

 

 

 

 

 

 

Long-term debt

 

1,542,891

 

1,431,437

 

Accrued pension and post employment benefit obligations

 

184,949

 

180,021

 

Other long-term liabilities

 

79,078

 

66,620

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

Common stock

 

157

 

158

 

Additional paid-in capital

 

584,426

 

489,930

 

Accumulated earnings

 

2,444,843

 

2,424,372

 

Accumulated other comprehensive loss

 

(52,105

)

(54,951

)

 

 

 

 

 

 

Total shareholders’ equity attributable to Amphenol Corporation

 

2,977,321

 

2,859,509

 

 

 

 

 

 

 

Noncontrolling interests

 

21,268

 

20,563

 

 

 

 

 

 

 

Total equity

 

2,998,589

 

2,880,072

 

 

 

 

 

 

 

 

 

$

6,517,300

 

$

6,168,028

 

 


 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(Unaudited)

(dollars in thousands)

 

 

 

Six months ended

 

 

 

June 30,

 

 

 

2014

 

2013

 

 

 

 

 

 

 

Cash flow from operating activities:

 

 

 

 

 

Net income

 

$

336,219

 

$

308,481

 

Adjustments to reconcile net income to cash provided by operating activities Depreciation and amortization

 

77,618

 

66,762

 

Stock-based compensation expense

 

19,249

 

17,175

 

Excess tax benefits from stock-based compensation payment arrangements

 

(18,103

)

(16,023

)

Net change in components of working capital

 

(41,254

)

(26,727

)

Net change in other long-term assets and liabilities

 

9,611

 

11,138

 

 

 

 

 

 

 

Net cash provided by operating activities

 

383,340

 

360,806

 

 

 

 

 

 

 

Cash flow from investing activities:

 

 

 

 

 

Additions to property, plant and equipment

 

(105,910

)

(66,037

)

Proceeds from disposals of fixed assets

 

1,351

 

1,412

 

Purchases of short-term investments

 

(356,032

)

(408,845

)

Sales and maturities of short-term investments

 

293,405

 

241,605

 

Acquisitions, net of cash acquired

 

(19,467

)

(44,036

)

 

 

 

 

 

 

Net cash used in investing activities

 

(186,653

)

(275,901

)

 

 

 

 

 

 

Cash flow from financing activities:

 

 

 

 

 

Issuance of senior notes

 

748,846

 

—

 

Borrowings under credit facilities

 

398,100

 

302,583

 

Repayments under credit facilities

 

(936,593

)

(225,842

)

Payment of fees and expenses related to debt financing

 

(5,751

)

—

 

Proceeds from exercise of stock options

 

58,286

 

64,204

 

Excess tax benefits from stock-based compensation payment arrangements

 

18,103

 

16,023

 

Payments to shareholders of noncontrolling interests

 

(1,729

)

(1,736

)

Purchase and retirement of treasury stock

 

(250,159

)

(181,108

)

Dividend payments

 

(31,418

)

(16,756

)

 

 

 

 

 

 

Net cash used in financing activities

 

(2,315

)

(42,632

)

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(1,127

)

(9,464

)

 

 

 

 

 

 

Net change in cash and cash equivalents

 

193,245

 

32,809

 

Cash and cash equivalents balance, beginning of period

 

886,838

 

690,850

 

 

 

 

 

 

 

Cash and cash equivalents balance, end of period

 

$

1,080,083

 

$

723,659

 

 


 

AMPHENOL CORPORATION

SEGMENT INFORMATION

(dollars in thousands)

(Unaudited)

 

 

 

Three months ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

Trade Sales:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

1,222,326

 

$

1,045,751

 

$

2,381,436

 

$

2,041,677

 

Cable Products

 

91,846

 

90,316

 

178,810

 

174,195

 

Consolidated

 

$

1,314,172

 

$

1,136,067

 

$

2,560,246

 

$

2,215,872

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

264,292

 

$

230,082

 

$

507,025

 

$

443,383

 

Cable Products

 

11,691

 

12,443

 

22,272

 

24,043

 

Stock-based compensation expense

 

(9,973

)

(8,890

)

(19,249

)

(17,171

)

Other operating expenses

 

(10,200

)

(9,622

)

(20,083

)

(19,285

)

Operating income

 

$

255,810

 

$

224,013

 

$

489,965

 

$

430,970

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

 

—

 

—

 

(2,020

)

—

 

Consolidated

 

$

255,810

 

$

224,013

 

$

487,945

 

$

430,970

 

 

 

 

 

 

 

 

 

 

 

ROS%:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

21.6

%

22.0

%

21.3

%

21.7

%

Cable Products

 

12.7

%

13.8

%

12.5

%

13.8

%

Stock-based compensation expense

 

-0.8

%

-0.8

%

-0.8

%

-0.8

%

Other operating expenses

 

-0.8

%

-0.8

%

-0.8

%

-0.9

%

 

 

 

 

 

 

 

 

 

 

ROS, excluding one-time items

 

19.5

%

19.7

%

19.1

%

19.4

%

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

 

0.0

%

0.0

%

0.0

%

0.0

%

Consolidated

 

19.5

%

19.7

%

19.1

%

19.4

%