First Quarter 2013 Results Reported by Amphenol Corporation

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First Quarter 2013 Results Reported by Amphenol Corporation

WALLINGFORD, Conn.--(BUSINESS WIRE)-- Amphenol Corporation (NYSE-APH) reported today first quarter 2013 diluted earnings per share, before one-time items, of $.87 compared to $.77 per share for the comparable 2012 period. On an as-reported basis diluted earnings per share for the first quarter of 2013 was $.94 and included an income tax benefit of $11 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 million or $.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. Sales for the first quarter 2013 were $1.080 billion compared to $982 million for the 2012 period. Currency translation had the effect of decreasing sales by approximately $2 million in the first quarter 2013 compared to the 2012 period.

Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated, "We are pleased to report strong first quarter results with sales up 10% and EPS (excluding one-time items) up 13% over the comparable 2012 quarter. The sales growth was driven by increases in nearly all of our served markets led by mobile devices, commercial aerospace, broadband communications and industrial, with contributions from both organic growth and our acquisition program. This strong growth is further confirmation of the significant benefits of the Company's technology leadership and diversification. We are especially encouraged to have achieved strong orders of $1.120 billion in the first quarter, representing a book-to-bill of 1.04 to 1. In addition, it is extremely rewarding that the Company's unique entrepreneurial culture continues to drive an unwavering focus on profitability, resulting in an operating margin improvement of 30 basis points over the prior year quarter to 19.2%. These results are a direct result of our management team's ability to react quickly in a dynamic environment, especially given the continuing high levels of uncertainty in most of the world's economies. 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. The Company continues to deploy its financial strength in a variety of ways to increase shareholder value including, in this quarter, the purchase of 1.2 million shares of the Company's stock pursuant to our stock repurchase plan."

"Considering the still uncertain global economic environment and assuming current currency exchange rates, we expect second quarter 2013 revenues in the range of $1.115 billion to $1.140 billion and diluted EPS (excluding one-time items) in the range of $.92 to $.95. For the year 2013, we now expect to achieve revenues and diluted EPS (excluding one-time items) in the range of $4.580 billion to $4.655 billion and $3.76 to $3.85, respectively, an increase of 7% to 8% over 2012 revenues and 8% to 11% over 2012 diluted EPS (excluding one-time items). This compares to prior full year 2013 guidance for revenues and diluted EPS in the range of $4.555 billion to $4.655 billion and $3.72 to $3.84, respectively. Despite the many 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 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 (EDT) April 18, 2013. 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, May 18, 2013. The replay numbers are toll free 800-509-8621; International toll number is 203-369-3807; Passcode: 0418.

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 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 1Aof the Company's Form 10-K for the year ended December 31, 2012, 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
 2013  2012 
 
Net sales$1,079,805$981,604
 
Cost of sales 741,913  672,333 
 
Gross profit337,892309,271
 
Selling, general and administrative
expense 130,935  123,992 
 
Operating income206,957185,279
 
Interest expense(15,457)(13,749)
Other income, net 2,785  2,187 
 
Income before income taxes194,285173,717
 
Provision for income taxes (40,672) (46,469)
 
Net income153,613127,248
Less: Net income attributable to noncontrolling interests (606) (685)
 
Net income attributable to Amphenol Corporation$153,007 $126,563 
 
 
Net income per common share - Basic$0.96 $0.78 
 
Weighted average common shares outstanding - Basic 159,738,168  162,861,863 
 
Net income per common share - Diluted (1)$0.94 $0.77 
 
Weighted average common shares outstanding - Diluted 162,713,002  165,355,138 
 
Dividends declared per common share$0.105 $0.105 

Note 1

 

  Earnings per share in the first quarter of 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 one-time benefit in the first quarter of 2013 at the date of reinstatement. Excluding these effects, diluted earnings per share was $.87 for the three months ended March 31, 2013.
 
   
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(dollars in thousands)
 
 
 
March 31,December 31,
 2013  2012 
ASSETS
 
Current Assets:
Cash and cash equivalents$734,993$690,850
Short-term investments 286,909  251,653 
Total cash, cash equivalents and short-term investments1,021,902942,503
Accounts receivable, less allowance
for doubtful accounts of $10,883
and $10,372, respectively861,598910,711
Inventories711,581733,718
Other current assets 130,590  119,983 
 
Total current assets2,725,6712,706,915
 
Land and depreciable assets, less
accumulated depreciation of
$731,328 and $715,895, respectively415,943417,436
Goodwill1,919,9291,932,740
Other long-term assets 152,418  158,372 
 
$5,213,961 $5,215,463 
 
LIABILITIES & EQUITY
 
Current Liabilities:
Accounts payable$445,517$496,525
Accrued salaries, wages and employee benefits83,16189,142
Accrued income taxes82,91294,341
Other accrued expenses111,234108,213
Short-term debt 92,190  100,293 
 
Total current liabilities815,014888,514
 
Long-term debt1,596,0501,606,204
Accrued pension and post employment
benefit obligations246,707244,571
Other long-term liabilities39,12333,992
 
Equity:
Common stock160160
Additional paid-in capital385,935336,683
Accumulated earnings2,261,0732,210,120
Accumulated other comprehensive loss (141,760) (117,004)
 
Total shareholders' equity attributable to Amphenol Corporation2,505,4082,429,959
 
Noncontrolling interests 11,659  12,223 
 
Total equity 2,517,067  2,442,182 
 
$5,213,961 $5,215,463 
 
  
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
(dollars in thousands)
 
 
Three months ended
March 31,
20132012
 
Cash flow from operating activities:
Net income$ 153,613$ 127,248
Adjustments for cash flow from operating activities:
Depreciation and amortization32,59228,999
Stock-based compensation expense8,2837,491
Excess tax benefits from stock-based compensation payment arrangements(8,720)(5,429)
Net change in components of working capital(12,135)9,851
Net change in other long-term assets and liabilities6,621(3,956)
 
Cash flow provided by operating activities180,254164,204
 
Cash flow from investing activities:
Additions to property, plant and equipment(29,685)(31,523)
Proceeds from disposals of fixed assets8021,015
Purchases of short-term investments(110,744)(34,466)
Sales and maturities of short-term investments75,48846,065
Acquisitions, net of cash acquired201-
 
Cash flow used in investing activities(63,938)(18,909)
 
Cash flow from financing activities:
Issuance of senior notes-498,730
Borrowings under credit facilities101,300227,900
Repayments under credit facilities(119,215)(708,747)
Payment of fees and expenses related to debt financing-(4,315)
Proceeds from exercise of stock options30,68222,418
Excess tax benefits from stock-based compensation payment arrangements8,7205,429
Payments to shareholders of noncontrolling interests(1,247)-
Purchase and retirement of treasury stock(85,300)(81,885)
Dividend payments-(2,448)
 
Cash flow used in financing activities(65,060)(42,918)
 
Effect of exchange rate changes on cash and cash equivalents(7,113)3,520
 
Net change in cash and cash
equivalents44,143105,897
Cash and cash equivalents
balance, beginning of period690,850515,086
 
Cash and cash equivalents
balance, end of period$ 734,993$ 620,983
 
   
AMPHENOL CORPORATION
SEGMENT INFORMATION
(dollars in thousands)
(Unaudited)
 
 
 
Three months ended
March 31,
 2013  2012 
 
Trade Sales:
Interconnect Products Read Full Story

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