Amphenol Corporation (NYSE:APH) reported today first quarter
2015 diluted earnings per share of $0.57 compared to $0.50
(excluding one-time items) for the comparable 2014 period. (All per
share and share amounts included herein have been adjusted to
reflect the Company’s 2-for-1 stock split effective October 9,
2014.) On an as reported basis, first quarter 2014 diluted earnings
per share was $0.49. Such per share amount for the 2014 period
included a one-time charge for acquisition-related transaction
costs of $2 million ($.01 per share) related to a 2013 acquisition.
Sales for the first quarter of 2015 were $1.327 billion compared to
$1.246 billion for the 2014 period. Currency translation had the
effect of decreasing sales by approximately $50 million in the
first quarter of 2015 compared to the 2014 period.
Amphenol President and Chief Executive Officer, R. Adam Norwitt,
stated, “We are pleased to report an excellent start to 2015, with
sales of $1.327 billion, up 7% in US dollars and 11% in local
currencies. EPS was $0.57 and grew a strong 14% (excluding one-time
items) over the comparable 2014 quarter. Sales growth was driven
primarily by strength in the automotive, industrial, IT data com
and mobile device markets. This growth was driven both organically
and through the Company’s successful acquisition program partially
offset by the negative impact of translation from a stronger
dollar. In addition to strong top line performance, the Company’s
unique entrepreneurial culture continues to drive strong operating
leverage in the business, resulting in an 80 basis point
year-over-year increase (excluding one-time items) in operating
margins to 19.6% in the first quarter 2015. This excellent
performance is a direct result of our dynamic management team’s
ability to drive margin expansion through outstanding 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 continues to expand its growth opportunities
through an ongoing strategy of market and geographic
diversification, a strong commitment to developing enabling
technologies for customers in all markets, and an active
complementary acquisition program. As part of that program, in late
February, the Company acquired Invotec Circuits Limited, a leading
U.K. manufacturer of high-end printed circuit boards, flex circuits
and value-add assemblies for the defense, industrial and aerospace
industries, with annual sales of approximately $35 million. The
acquisition strengthens both the Company’s global capabilities and
product offering in these important markets. In addition to the
Company’s successful acquisition program, the Company continues to
deploy its financial strength in a variety of ways to increase
shareholder value including the purchase, during the quarter, of
1.1 million shares of the Company’s stock pursuant to our stock
repurchase plan.”
“There continue to be many market uncertainties around the
world. Considering these uncertainties as well as current currency
exchange rates including relatively weaker overseas currencies, we
expect second quarter 2015 sales in the range of $1.315 billion to
$1.355 billion and diluted EPS in the range of $0.56 to $0.58. For
the full year 2015, we now expect to achieve sales in the range of
$5.500 billion to $5.620 billion, an increase over 2014 in US
dollars of 3% to 5%, in local currencies of 7% to 9% and
organically (excluding the impact of currency translation and
acquisitions) of 3% to 5%. This compares to organic growth of 2% to
5% reflected in our previous guidance. We expect diluted EPS of
$2.41 to $2.47, an increase of 7% to 10% over 2014 (excluding
one-time items). Notwithstanding the many uncertainties around the
world, 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, as well as our
initiatives to broaden and diversify our high technology product
offering, 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 first
quarter results at 1:00 PM (EDT) Wednesday, April 22, 2015. 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 10:59
P.M. (EDT) on Friday, May 22, 2015. The replay numbers are toll
free 866-383-3164; International toll number is 203-369-0387;
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, 2014, 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 millions, except per share
data) Three Months Ended
March 31,
2015
2014 (1)
Net sales $ 1,327.1 $ 1,246.1 Cost of sales
902.5 857.2 Gross profit 424.6 388.9
Acquisition-related expenses - 2.0 Selling, general
and administrative expense 164.4 154.8
Operating income 260.2 232.1 Interest expense (17.0 )
(19.1 ) Other income, net 4.1 4.1
Income before income taxes 247.3 217.1 Provision for
income taxes (65.5 ) (57.3 ) Net income 181.8
159.8 Less: Net income attributable to noncontrolling interests
(2.0 ) (1.3 ) Net income attributable to
Amphenol Corporation $ 179.8 $ 158.5
Net income per common share - Basic $ 0.58 $ 0.50
Weighted average common shares outstanding - Basic
310,046,534 315,056,964 Net income per
common share - Diluted
(2) $ 0.57 $ 0.49
Weighted average common shares outstanding - Diluted
317,985,645 322,354,312 Dividends
declared per common share $ 0.125 $ 0.100
Note
1 Prior period results have been restated to reflect a
two-for-one stock split which was effective in October 2014.
Note 2 Earnings per share in the three months ended March
31, 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 $0.50
for the three months ended March 31, 2014.
AMPHENOL
CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (dollars in millions) March 31,
December 31, 2015 2014
ASSETS
Current Assets: Cash and cash equivalents $ 969.9 $ 968.9
Short-term investments 381.2 360.7 Total cash, cash equivalents and
short-term investments 1,351.1 1,329.6 Accounts receivable, less
allowance for doubtful accounts of $21.2 and $20.2, respectively
1,091.8 1,123.7 Inventories 871.4 865.6 Other current assets 219.5
185.2 Total current assets 3,533.8 3,504.1 Land and
depreciable assets, less accumulated depreciation of $853.9 and
$849.6, respectively 589.5 590.7 Goodwill 2,594.5 2,616.7
Intangibles and other long-term assets 307.8 315.5
$ 7,025.6 $ 7,027.0
LIABILITIES & EQUITY
Current Liabilities: Accounts payable $ 582.9 $ 618.4
Accrued salaries, wages and employee benefits 99.0 109.9 Accrued
income taxes 98.9 90.8 Other accrued expenses 143.3 186.2 Accrued
dividends - 38.7 Current portion of long-term debt 1.6 1.6
Total current liabilities 925.7 1,045.6 Long-term debt, less
current portion 2,757.0 2,672.3 Accrued pension benefit obligations
and other long-term liabilities 363.7 371.2 Equity: Common
stock 0.3 0.3 Additional paid-in capital 688.8 659.4 Retained
earnings 2,532.3 2,453.5 Accumulated other comprehensive loss
(271.5) (205.8) Total shareholders' equity attributable to
Amphenol Corporation 2,949.9 2,907.4 Noncontrolling
interests 29.3 30.5 Total equity 2,979.2 2,937.9 $
7,025.6 $ 7,027.0
AMPHENOL CORPORATION CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited)
(dollars in millions) Three months ended March 31,
2015 2014 Cash from operating activities: Net income $ 181.8
$ 159.8 Adjustments to reconcile net income to cash provided by
operating activities: Depreciation and amortization 40.1 39.9
Stock-based compensation expense 10.1 9.3 Excess tax benefits from
stock-based compensation payment arrangements (3.6 ) (2.7 ) Net
change in components of working capital (40.1 ) (10.2 ) Net change
in other long-term assets and liabilities -
6.6 Net cash provided by operating activities
188.3 202.7 Cash from investing
activities: Purchases of land and depreciable assets (40.0 ) (54.2
) Proceeds from disposals of land and depreciable assets 0.3 0.5
Purchases of short-term investments (104.5 ) (120.7 ) Sales and
maturities of short-term investments 84.0 145.0 Acquisitions, net
of cash acquired (76.1 ) (9.0 ) Net cash used
in investing activities (136.3 ) (38.4 ) Cash
from financing activities: Proceeds from issuance of senior notes -
748.8 Long-term borrowings under credit facilities 1,811.5 142.8
Repayments of long-term debt (1,725.9 ) (801.1 ) Payment of costs
related to debt financing - (5.7 ) Proceeds from exercise of stock
options 16.0 13.7 Excess tax benefits from stock-based compensation
payment arrangements 3.6 2.7 Distributions to shareholders of
noncontrolling interests (3.2 ) (1.1 ) Purchase and retirement of
treasury stock (62.2 ) (121.1 ) Dividend payments (77.5 )
- Net cash used in financing activities
(37.7 ) (21.0 ) Effect of exchange rate changes on
cash and cash equivalents (13.3 ) (6.8 ) Net change in cash
and cash equivalents 1.0 136.5 Cash and cash equivalents balance,
beginning of period 968.9 886.8
Cash and cash equivalents balance, end of period $ 969.9 $
1,023.3 Cash paid for: Interest $ 30.2 $ 13.3 Income
taxes 51.9 48.8
AMPHENOL CORPORATION SEGMENT
INFORMATION (dollars in millions) (Unaudited)
Three months ended March 31, 2015 2014 Net sales:
Interconnect Products and Assemblies $ 1,242.7 $ 1,159.1 Cable
Products and Solutions 84.4 87.0
Consolidated $ 1,327.1 $ 1,246.1
Operating income: Interconnect Products and Assemblies $ 271.0 $
242.8 Cable Products and Solutions 10.2 10.6 Stock-based
compensation expense (10.1 ) (9.3 ) Other operating expenses
(10.9 ) (10.0 ) Operating income, excluding one-time items
260.2 234.1 Acquisition-related expenses -
(2.0 ) Consolidated $ 260.2 $ 232.1
ROS%: Interconnect Products and Assemblies 21.8 %
21.0 % Cable Products and Solutions 12.1 % 12.2 % Stock-based
compensation expense -0.8 % -0.7 % Other operating expenses -0.8 %
-0.8 % ROS, excluding one-time items 19.6 % 18.8 %
Acquisition-related expenses - -0.2 % Consolidated 19.6 % 18.6 %
Amphenol CorporationDiana G. Reardon, 203-265-8630Executive Vice
President and Chief Financial Officerwww.amphenol.com
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