Third Quarter 2012 Record Results Reported by Amphenol Corporation

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Third Quarter 2012 Record Results Reported by Amphenol Corporation

WALLINGFORD, Conn.--(BUSINESS WIRE)-- 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 amconfident 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 EndedNine Months Ended

September 30,

September 30,
2012201120122011
 
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 profit344,329323,477987,761948,823
 
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 income215,670186,059607,125587,018
 
Interest expense(15,166)(10,498)(44,014)(31,885)
Other income, net 2,636  2,255  7,457  6,089 
 
Income before income taxes203,140177,816570,568561,222
 
Provision for income taxes (54,340) (41,758) (152,627) (147,385)
 
Net income148,800136,058417,941413,837
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,
20122011
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 investments892,891648,934
Accounts receivable, less allowance
for doubtful accounts of $11,085
and $11,113, respectively903,344767,181
Inventories, net712,189649,862
Other current assets 132,557  115,260 
 
Total current assets2,640,9812,181,237
 
Land and depreciable assets, less
accumulated depreciation of
$701,032 and $655,869, respectively407,587380,501
Goodwill1,876,5391,746,113
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 benefits86,01483,810
Accrued income taxes78,95687,315
Other accrued expenses127,42593,125
Short-term debt 94,093  298 
 
Total current liabilities864,588642,415
 
Long-term debt1,511,2971,376,831
Accrued pension and post employment
benefit obligations205,922207,049
Other long-term liabilities50,94034,144
 
Equity:
Common stock162163
Additional paid-in capital302,547189,166
Accumulated earnings2,237,1092,102,497
Accumulated other comprehensive loss (112,977) (120,057)
 
Total shareholders' equity attributable to Amphenol Corporation2,426,8412,171,769
 
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,
20122011
 
Cash flow from operating activities:
Net income$417,941$413,837
Adjustments for cash flow from operating activities:
Depreciation and amortization89,33988,197 Read Full Story

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