Amphenol Corporation (NYSE:APH) reported today third quarter
2015 diluted earnings per share of $0.65 compared to $0.58
excluding one-time items for the comparable 2014 period. On an as
reported basis, diluted earnings per share for the third quarter of
2014 was $0.57. Such per share amount for the 2014 quarter included
a charge for acquisition-related transaction costs of $3 million
($0.01 per share). Sales for the third quarter of 2015 were $1.460
billion compared to $1.359 billion for the 2014 period. Currency
translation had the effect of decreasing sales by approximately $48
million in the third quarter of 2015 compared to the 2014
period.
For the nine months ended September 30, 2015, diluted earnings
per share excluding one-time items was $1.80, compared to $1.62 for
the comparable 2014 period. On an as reported basis diluted
earnings per share for the nine months ended September 30, 2015 was
$1.78, compared to $1.60 for the comparable 2014 period. The 2015
period includes a charge for acquisition-related transaction costs
of $6 million ($0.02 per share). The 2014 period included the
charge for acquisition-related transaction costs of $3 million
($0.01 per share) described above and a charge of $2 million ($0.01
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. Sales for the nine months
ended September 30, 2015 were $4.138 billion compared to $3.919
billion for the 2014 period. Currency translation had the effect of
decreasing sales by approximately $149 million for the first nine
months of 2015 compared to the 2014 period.
Amphenol President and Chief Executive Officer, R. Adam Norwitt,
stated, “For the third quarter 2015, we are very pleased to report
new records in sales and EPS of $1.460 billion and $0.65,
respectively. Sales increased a strong 7% in US dollars and 11% in
local currencies over the prior year, with robust growth in the
Mobile Devices and Automotive markets. Our growth was driven both
organically and through the Company’s successful acquisition
program, and was partially offset by the negative impact of
translation from the stronger dollar. EPS reached a new record of
$0.65, growing 12%, excluding one-time items, over the comparable
2014 quarter. The Company’s unique entrepreneurial culture
continues to drive strong operating leverage in the business,
resulting in a 30 basis point year-over-year increase in operating
margins, excluding one-time items, to 20.2% in the third 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
continued to execute very well in the third quarter, despite a
market environment which became more challenging as the quarter
progressed.”
“The Company continues to expand its growth opportunities
through an ongoing strategy of market and geographic
diversification, a deep commitment to developing enabling
technologies for customers in all markets, as well as an active
acquisition program. In addition to our successful acquisition
program, the Company continues to deploy its financial strength in
a variety of ways to increase shareholder value. This includes the
purchase, during the quarter, of 1.0 million shares of the
Company’s stock pursuant to our stock repurchase plan.”
“Global markets have recently become more uncertain, as growing
turbulence in certain economies has impacted global industrial
demand. As a result, we have begun to see increased levels of
caution, and thereby lower demand expectations, from customers in
several of our end markets, in particular the Industrial,
Automotive and Information Technology and Data Communications
markets. Considering these dynamics, and based on current currency
exchange rates, we expect fourth quarter 2015 sales in the range of
$1.330 billion to $1.370 billion and diluted EPS (excluding
one-time items) in the range of $0.58 to $0.60. For the full year
2015, we now expect to achieve sales in the range of $5.468 billion
to $5.508 billion, an increase over 2014 in US dollars of 2% to 3%,
in local currencies of 6% to 7% and organically (excluding the
impact of currency translation and acquisitions) of 1% to 2%. We
expect diluted EPS of $2.38 to $2.40 for the full year 2015, an
increase of 6% to 7% over 2014 (excluding one-time items). This
compares to our prior full year 2015 guidance of $5.540 billion to
$5.620 billion in sales and $2.43 to $2.47 in EPS excluding
one-time items.”
“Notwithstanding the heightened level of uncertainty 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 create a significant,
long-term growth opportunity for Amphenol, with new applications
and higher performance requirements driving increased demand for
our high technology products across all of our end markets. 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 both organically
and through our successful acquisition program, 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 third
quarter results at 1:00 PM (EDT) Wednesday, October 21, 2015. The
toll free dial-in number to participate in this call is
888-455-0949; International dial-in number is 773-799-3973;
Passcode: LAMPO. There will be a replay available until 10:59 P.M.
(EST) on Saturday, November 21, 2015. The replay numbers are toll
free 866-358-4539; International toll number is 203-369-0140;
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 Nine Months
Ended September 30, September 30, 2015 2014 2015 2014 Net
sales $ 1,459.6 $ 1,358.7 $ 4,138.2 $ 3,919.0 Cost of sales
995.6 927.1 2,817.1
2,681.7 Gross profit 464.0 431.6 1,321.1
1,237.3 Acquisition-related expenses - 2.5 5.7 4.6
Selling, general and administrative expense 169.2
161.3 499.7 476.9
Operating income 294.8 267.8 815.7 755.8 Interest expense
(17.0 ) (21.1 ) (51.1 ) (60.2 ) Other income, net 4.2
4.8 12.5 13.0
Income before income taxes 282.0 251.5 777.1 708.6 Provision
for income taxes (74.7 ) (67.3 ) (207.4 )
(188.2 ) Net income 207.3 184.2 569.7 520.4 Less: Net
income attributable to noncontrolling interests (2.8 )
(2.0 ) (6.4 ) (4.8 ) Net income
attributable to Amphenol Corporation $ 204.5 $ 182.2
$ 563.3 $ 515.6 Net income per common
share - Basic $ 0.66 $ 0.58 $ 1.82 $ 1.64
Weighted average common shares outstanding - Basic
308,853,642 313,284,242
309,262,335 314,183,699 Net income per
common share - Diluted
(1) (2) $ 0.65 $ 0.57 $
1.78 $ 1.60 Weighted average common shares
outstanding - Diluted 315,886,596 320,636,405
316,909,091 321,518,036
Dividends declared per common share $ 0.14 $ 0.125 $
0.39 $ 0.325
Note 1
Earnings per share in the nine months ended September 30,
2015 included acquisition-related expenses of $5.7 million ($5.7
million after-tax), or $.02 per share, relating to acquisitions
closed as well as announced in the second quarter of 2015.
Excluding this effect, diluted earnings per share was $1.80 for the
nine months ended September 30, 2015.
Note 2
Earnings per share in the three months ended September 30, 2014
included acquisition-related expenses of $2.5 million ($2.5 million
after-tax) relating to 2014 acquisitions. Earnings per share in the
nine months ended September 30, 2014 also included the amortization
of the value associated with acquired backlog of $2.0 million ($1.3
million after-tax) relating to an acquisition. Excluding these
effects, diluted earnings per share was $0.58 for the three months
ended September 30, 2014 and $1.62 for the nine months ended
September 30, 2014.
AMPHENOL CORPORATION CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited) (dollars in
millions) September 30, December 31, 2015 2014
ASSETS Current Assets: Cash and cash equivalents $
1,575.6 $ 968.9 Short-term investments 22.1
360.7 Total cash, cash equivalents and short-term
investments 1,597.7 1,329.6 Accounts receivable, less allowance for
doubtful accounts of $23.9 and $20.2, respectively 1,163.3 1,123.7
Inventories 887.7 865.6 Other current assets 213.6
185.2 Total current assets 3,862.3 3,504.1
Land and depreciable assets, less accumulated depreciation
of $887.8 and $849.6, respectively 611.7 590.7 Goodwill 2,706.3
2,616.7 Intangibles and other long-term assets 305.3
315.5 $ 7,485.6 $ 7,027.0
LIABILITIES & EQUITY Current Liabilities:
Accounts payable $ 661.5 $ 618.4 Accrued salaries, wages and
employee benefits 108.7 109.9 Accrued income taxes 97.8 90.8 Other
accrued expenses 169.8 186.2 Accrued dividends 43.1 38.7 Current
portion of long-term debt 0.4 1.6
Total current liabilities 1,081.3 1,045.6 Long-term
debt, less current portion 2,853.0 2,672.3 Accrued pension benefit
obligations and other long-term liabilities 369.9 371.2
Equity: Common stock 0.3 0.3 Additional paid-in capital 745.9 659.4
Retained earnings 2,700.7 2,453.5 Accumulated other comprehensive
loss (303.6 ) (205.8 ) Total shareholders'
equity attributable to Amphenol Corporation 3,143.3 2,907.4
Noncontrolling interests 38.1 30.5
Total equity 3,181.4 2,937.9
$ 7,485.6 $ 7,027.0
AMPHENOL
CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOW (Unaudited) (dollars in millions)
Nine months ended September 30, 2015 2014 Cash from
operating activities: Net income $ 569.7 $ 520.4 Adjustments to
reconcile net income to cash provided by operating activities:
Depreciation and amortization 128.1 118.0 Stock-based compensation
expense 32.1 29.4 Excess tax benefits from stock-based compensation
payment arrangements (9.4 ) (29.6 ) Net change in components of
working capital (7.0 ) (24.3 ) Net change in other long-term assets
and liabilities (5.3 ) (6.5 ) Net cash
provided by operating activities 708.2 607.4
Cash from investing activities: Purchases of land and
depreciable assets (130.8 ) (162.7 ) Proceeds from disposals of
land and depreciable assets 6.7 2.2 Purchases of short-term
investments (121.9 ) (478.8 ) Sales and maturities of short-term
investments 459.5 410.4 Acquisitions, net of cash acquired
(199.8 ) (468.0 ) Net cash provided by (used in)
investing activities 13.7 (696.9 ) Cash
from financing activities: Proceeds from issuance of senior notes -
1,498.1 Long-term borrowings under credit facilities 125.0 563.5
Repayments of long-term debt (211.8 ) (1,570.7 ) Borrowings under
commercial paper program, net 266.9 - Payment of costs related to
debt financing - (10.7 ) Proceeds from exercise of stock options
45.8 88.8 Excess tax benefits from stock-based compensation payment
arrangements 9.4 29.6 Distributions to shareholders of
noncontrolling interests (6.1 ) (3.6 ) Purchase and retirement of
treasury stock (195.6 ) (400.8 ) Dividend payments (116.1 )
(101.9 ) Net cash (used in) provided by financing
activities (82.5 ) 92.3 Effect of
exchange rate changes on cash and cash equivalents (32.7 ) (16.6 )
Net change in cash and cash equivalents 606.7 (13.8 ) Cash
and cash equivalents balance, beginning of period 968.9
886.8 Cash and cash equivalents
balance, end of period $ 1,575.6 $ 873.0 Cash
paid for: Interest $ 62.1 $ 51.7 Income taxes 182.9 160.9
AMPHENOL CORPORATION
SEGMENT INFORMATION
(Unaudited)
(dollars in millions)
Three months ended
September 30,
Nine months ended
September 30,
2015
2014
2015
2014
Net sales: Interconnect Products and Assemblies $ 1,378.2 $
1,268.6 $ 3,889.5 $ 3,650.1 Cable Products and Solutions
81.4 90.1 248.7 268.9
Consolidated $ 1,459.6 $ 1,358.7 $ 4,138.2
$ 3,919.0 Operating income: Interconnect
Products and Assemblies $ 307.4 $ 279.8 $ 856.3 $ 786.8 Cable
Products and Solutions 10.2 11.3 30.2 33.6 Stock-based compensation
expense (11.8 ) (10.1 ) (32.1 ) (29.4 ) Other operating expenses
(11.0 ) (10.7 ) (33.0 ) (30.6 )
Operating income, excluding one-time items 294.8 270.3 821.4 760.4
Acquisition-related expenses - (2.5 )
(5.7 ) (4.6 ) Consolidated $ 294.8 $ 267.8
$ 815.7 $ 755.8 ROS%: Interconnect
Products and Assemblies 22.3 % 22.1 % 22.0 % 21.6 % Cable Products
and Solutions 12.5 % 12.5 % 12.1 % 12.5 % Stock-based compensation
expense -0.8 % -0.7 % -0.8 % -0.7 % Other operating expenses -0.8 %
-0.8 % -0.8 % -0.8 % ROS, excluding one-time items 20.2 %
19.9 % 19.8 % 19.4 % Acquisition-related expenses 0.0 % -0.2
% -0.1 % -0.1 % Consolidated 20.2 % 19.7 % 19.7 % 19.3 %
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version on businesswire.com: http://www.businesswire.com/news/home/20151021005372/en/
AmphenolCraig A. Lampo, 203-265-8625Senior Vice President
and Chief Financial Officerwww.amphenol.com
Amphenol (NYSE:APH)
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