Amphenol Corporation : First Quarter 2012 Results Reported by Amphenol Corporation
04/18/2012| 08:10am US/Eastern
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Amphenol Corporation (NYSE-APH) reported today first quarter 2012
diluted earnings per share of $.77 compared to $.72 per share for the
comparable 2011 period. Sales for the first quarter 2012 were $982
million compared to $941 million for the 2011 period. Currency
translation had the effect of decreasing sales by approximately $4
million in the first quarter 2012 compared to the 2011 period.
Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated
"We are pleased to report a strong start to 2012 with first quarter
sales of $982 million, operating income margin of 18.9% and diluted
earnings per share of $.77. Sales were up approximately 4%
year-over-year and 3% sequentially. On a year-over-year basis, strength
in automotive, commercial aerospace, broadband communications and
industrial markets offset declines in the defense and wireless markets,
reflecting the significant benefits of the Company's diversity. We are
especially encouraged to have achieved record orders of $1.028 billion
in the first quarter. In addition, it is extremely rewarding that the
Company's unique entrepreneurial culture continues to drive an
unwavering focus on profitability, resulting in a sequential operating
margin improvement of 40 basis points to 18.9% in Q1 2012. 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 early April, the
Company completed the acquisition of Nelson-Dunn, a U.S. manufacturer of
high-technology, value-added interconnect assemblies for the oil and gas
market with annual sales of approximately $45 million. This acquisition
complements and strengthens the Company's industry-leading offering of
harsh environment products for the fast-growing energy markets. The
Company continues to deploy its financial strength in a variety of ways
to increase shareholder value including, in this quarter, the purchase
of 1.5 million shares of the Company's stock pursuant to our stock
repurchase plan. In addition, as previously announced, the Company's
Board of Directors has approved an increase in the quarterly dividend to
$.105 per share effective for dividends paid after March 2012."
"Based on the assumption of stable economic conditions and constant
currency exchange rates, we expect Q2 2012 revenues in the range of
$1.040 billion to $1.055 billion and diluted EPS in the range of $.82 to
$.85. For the year 2012, we now expect to achieve revenues and diluted
EPS in the range of $4.105 billion to $4.190 billion and $3.30 to $3.38,
respectively, an increase of 4% to 6% and 8% to 11% over 2011 revenues
and diluted EPS (excluding 2011 one-time items), respectively. This
compares to prior full year 2012 guidance for revenues and diluted EPS
in the range of $4.050 billion to $4.150 billion and $3.23 to $3.34,
respectively. 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 amconfident 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 (EST) April 18, 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, April 20, 2012. The replay numbers are
toll free 866-418-8388; International toll number is 203-369-0758;
Passcode: 5137.
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, 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
March 31,
2012
2011
Net sales
$
981,604
$
940,585
Cost of sales
672,333
636,461
Gross profit
309,271
304,124
Selling, general and administrative
expense
123,992
118,039
Operating income
185,279
186,085
Interest expense
(13,749)
(10,016)
Other income (expenses), net
2,187
1,704
Income before income taxes
173,717
177,773
Provision for income taxes
(46,469)
(48,888)
Net income
127,248
128,885
Less: Net income attributable to noncontrolling interests
(685)
(927)
Net income attributable to Amphenol Corporation
$
126,563
$
127,958
Net income per common share - Basic
$
0.78
$
0.73
Weighted average common shares outstanding - Basic
162,861,863
175,168,297
Net income per common share - Diluted
$
0.77
$
0.72
Weighted average common shares outstanding - Diluted
165,355,138
177,850,932
Dividends declared per common share
$
0.105
$
0.015
AMPHENOL CORPORATION CONDENSED CONSOLIDATED BALANCE
SHEETS (Unaudited) (dollars in thousands)
March 31,
December 31,
2012
2011
ASSETS
Current Assets:
Cash and cash equivalents
$
620,983
$
515,086
Short-term investments
122,249
133,848
Total cash, cash equivalents and short-term investments
743,232
648,934
Accounts receivable, less allowance
for doubtful accounts of $11,640
and $11,113, respectively
771,400
767,181
Inventories, net
659,108
649,862
Other current assets
118,060
115,260
Total current assets
2,291,800
2,181,237
Land and depreciable assets, less
accumulated depreciation of
$673,265 and $655,869, respectively
389,873
380,501
Goodwill
1,754,951
1,746,113
Other long-term assets
140,756
137,374
$
4,577,380
$
4,445,225
LIABILITIES & EQUITY
Current Liabilities:
Accounts payable
$
402,916
$
377,867
Accrued salaries, wages and employee benefits
80,919
83,810
Accrued income taxes
80,664
87,315
Other accrued expenses
102,182
93,125
Short-term debt
78,298
298
Total current liabilities
744,979
642,415
Long-term debt
1,316,819
1,376,831
Accrued pension and post employment
benefit obligations
207,304
207,049
Other long-term liabilities
43,560
34,144
Equity:
Common stock
163
163
Additional paid-in capital
224,357
189,166
Accumulated earnings
2,130,127
2,102,497
Accumulated other comprehensive loss
(103,647)
(120,057)
Total shareholders' equity attributable to Amphenol Corporation
2,251,000
2,171,769
Noncontrolling interests
13,718
13,017
Total equity
2,264,718
2,184,786
$
4,577,380
$
4,445,225
AMPHENOL CORPORATION CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOW (Unaudited) (dollars
in thousands)
Three months ended
March 31,
2012
2011
Cash flow from operating activities:
Net income
$
127,248
$
128,885
Adjustments for cash flow from operating activities:
Depreciation and amortization
28,999
27,357
Stock-based compensation expense
7,491
6,320
Excess tax benefits from stock-based compensation payment
arrangements
(5,429
)
(4,625
)
Net change in components of working capital
9,851
(44,065
)
Net change in other long-term assets and liabilities
(3,956
)
(6,134
)
Cash flow provided by operating activities
164,204
107,738
Cash flow from investing activities:
Additions to property, plant and equipment
(31,523
)
(23,321
)
Proceeds from disposals of fixed assets
1,015
143
Purchases of short-term investments
(34,466
)
(20,423
)
Sales and maturities of short-term investments
46,065
20,342
Cash flow used in investing activities
(18,909
)
(23,259
)
Cash flow from financing activities:
Borrowings under senior notes
498,730
-
Borrowings under credit facilities
227,900
212,270
Repayments under credit facilities
(708,747
)
(62,700
)
Payment of fees and expenses related to debt financing
(4,315
)
-
Proceeds from exercise of stock options
22,418
11,921
Excess tax benefits from stock-based compensation payment
arrangements
5,429
4,625
Payments to shareholders of noncontrolling interests
-
(496
)
Purchase and retirement of treasury stock
(81,885
)
(188,503
)
Dividend payments
(2,448
)
(2,633
)
Cash flow used in financing activities
(42,918
)
(25,516
)
Effect of exchange rate changes on cash and cash equivalents
3,520
8,148
Net change in cash and cash
equivalents
105,897
67,111
Cash and cash equivalents
balance, beginning of period
515,086
525,888
Cash and cash equivalents
balance, end of period
$
620,983
$
592,999
AMPHENOL CORPORATION SEGMENT INFORMATION (dollars
in thousands) (Unaudited)
Three months ended
March 31,
2012
2011
Trade Sales:
Interconnect Products
$
908,035
$
877,516
Cable Products
73,569
63,069
Consolidated
$
981,604
$
940,585
Operating income:
Interconnect Products
$
190,859
$
194,112
Cable Products
10,676
7,459
Stock-based compensation expense
(7,491
)
(6,320
)
Other operating expenses
(8,765
)
(9,166
)
Consolidated
$
185,279
$
186,085
Return on Sales %:
Interconnect Products
21.0
%
22.1
%
Cable Products
14.5
%
11.8
%
Stock-based compensation
-0.8
%
-0.7
%
Corporate - all other
-0.9
%
-1.0
%
Consolidated
18.9
%
19.8
%
Amphenol Corporation Diana G. Reardon, 203-265-8630 Executive
Vice President and Chief Financial Officer www.amphenol.com
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