21.01.2010 13:00:00
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2009 Fourth Quarter Results Reported by Amphenol Corporation
Amphenol Corporation (NYSE-APH) reported today fourth quarter 2009 diluted earnings per share of $.50 compared to $.56 per share for the comparable 2008 period. Such per share amount for the 2009 period included a one-time charge of $.02 per share relating to the termination of certain interest rate swap agreements as part of the refinancing associated with the Company’s $600 million senior note issuance in November. Such per share amount for the 2008 period included the benefit of $.03 per share relating to the cumulative reduction in the Company’s effective tax rate from 29% to 28%. Excluding these effects, diluted earnings per share was $.52 and $.53 for the fourth quarter of 2009 and 2008, respectively. Sales for the fourth quarter 2009 were $758.3 million compared to $755.3 million for the 2008 period. Currency translation had the effect of increasing sales by approximately 2% or $17.7 million in the fourth quarter 2009 compared to the 2008 period.
For the full year ended December 31, 2009, diluted earnings per share, excluding the one-time charge relating to the refinancing referenced above, was $1.85 compared to $2.34 for 2008. Sales for the full year ended December 31, 2009 were $2,820.1 million compared to $3,236.5 million for 2008. Currency translation had the effect of decreasing sales by approximately $38.2 million for the full year 2009 period when compared to 2008.
Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated "We are pleased to close 2009 with strong fourth quarter results that exceeded the high end of the Company’s guidance. This represents our third consecutive quarter of sequential growth in sales and income, with sales of $758 million, an operating income margin of 18.3% and earnings per share of $.52 (excluding the one-time item). The 6% sequential sales increase was driven by strengthening demand in most markets including: Information Technology and Data Communications Equipment, Military/Aerospace, Industrial, Wireless Infrastructure and Automotive. It is very gratifying that we have been able to enhance our market position in nearly all of our served markets. Our strategy of ongoing market and geographic diversification combined with our strong commitment to develop performance enhancing technologies for our customers continues to expand the Company’s growth opportunities. In addition, it is extremely rewarding that our focus on operating leverage and working capital management enabled us to further expand margins and generate strong cash flow. Even with this improvement in demand, our management team continues to control costs in a proactive and dynamic manner ensuring the strength of our financial performance. I am very proud of our organization as we continue to execute well.”
"While overall economic conditions remain less than certain, we believe we have seen both an improvement in demand levels as well as a stabilization of demand patterns in most markets. As such, in 2010, we expect to see a return to more traditional seasonality. Accordingly, based on constant currency exchange rates, we expect Q1 2010 revenues in the range of $735 million to $750 million and EPS in the range of $.49 to $.51. We believe we can perform well in the current environment 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.”
"We continue to be excited about the future. Our significant actions in 2009 to enhance our competitive advantages and build sustained financial strength have created a solid base for future performance. I am confident in the ability of our outstanding organization to dynamically adjust to the continued changing market environment, to generate strong profitability and to capitalize on opportunities to expand our market position.”
The Company will host a conference call to discuss its fourth quarter results at 1:00 PM (ET) January 21, 2010. 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 11:00 P.M. (ET) on Monday, January 25, 2010. The replay numbers are as follows: toll free dial-in number is 888-566-0486 and International dial-in number is 203-369-3611; Passcode: 5137.
A live broadcast as well as a replay will also be available on the Internet at http://www.amphenol.com/index.cfm/fuseaction/financial.webcasts.
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 segments 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, 2008, 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 | |||||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||
2009 | 2008 | 2009 | 2008 | ||||||||||||||||
Net Sales | $ | 758,296 | $ | 755,282 | $ | 2,820,065 | $ | 3,236,471 | |||||||||||
Cost of sales | 516,664 | 514,876 | 1,933,511 | 2,187,318 | |||||||||||||||
Gross profit | 241,632 | 240,406 | 886,554 | 1,049,153 | |||||||||||||||
Selling, general and administrative | |||||||||||||||||||
expense | 103,172 | 98,006 | 397,641 | 416,914 | |||||||||||||||
Operating income | 138,460 | 142,400 | 488,913 | 632,239 | |||||||||||||||
Interest expense | (9,496 | ) | (10,041 | ) | (36,586 | ) | (39,627 | ) | |||||||||||
Early extinguishment of interest rate swaps | (4,575 | ) | - | (4,575 | ) | - | |||||||||||||
Other (expenses) income, net | (283 | ) | 137 | (1,225 | ) | (32 | ) | ||||||||||||
Income before income taxes | 124,106 | 132,496 | 446,527 | 592,580 | |||||||||||||||
Provision for income taxes | (34,129 | ) | (30,952 | ) | (119,311 | ) | (163,003 | ) | |||||||||||
Net income | 89,977 | 101,544 | 327,216 | 429,577 | |||||||||||||||
Less: Net income attributable to noncontrolling interest | (2,338 | ) | (2,811 | ) | (9,382 | ) | (10,426 | ) | |||||||||||
Net income attributable to Amphenol Corporation | $ | 87,639 | $ | 98,733 | $ | 317,834 | $ | 419,151 | |||||||||||
Net income per common share - Basic | $ | 0.51 | $ | 0.57 | $ | 1.85 | $ | 2.39 | |||||||||||
Average shares outstanding - Basic | 172,487,683 | 173,797,473 | 171,607,643 | 175,663,797 | |||||||||||||||
Net income per common share - Diluted | $ | 0.50 | $ | 0.56 | $ | 1.83 | $ | 2.34 | |||||||||||
Average shares outstanding - Diluted | 175,068,731 | 175,545,630 | 173,941,752 | 178,813,013 | |||||||||||||||
Dividends declared per common share | $ | 0.015 | $ | 0.015 | $ | 0.060 | $ | 0.060 |
AMPHENOL CORPORATION | ||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||
(dollars in thousands) | ||||||||||||||
December 31, | December 31, | |||||||||||||
2009 |
2008 |
|||||||||||||
ASSETS | ||||||||||||||
Current Assets: | ||||||||||||||
Cash and cash equivalents | $ | 384,613 | $ | 214,987 | ||||||||||
Accounts receivable, less allowance | ||||||||||||||
for doubtful accounts of $18,785 | ||||||||||||||
and $14,982, respectively | 449,591 | 515,999 | ||||||||||||
Inventories, net | 461,750 | 512,507 | ||||||||||||
Other current assets | 124,441 | 92,371 | ||||||||||||
Total current assets | 1,420,395 | 1,335,864 | ||||||||||||
Land and depreciable assets, less | ||||||||||||||
accumulated depreciation of | ||||||||||||||
$575,187 and $510,764, respectively | 332,875 | 344,515 | ||||||||||||
Goodwill | 1,368,672 | 1,232,335 | ||||||||||||
Other long-term assets | 97,242 | 81,445 | ||||||||||||
$ | 3,219,184 | $ | 2,994,159 | |||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||||||||
Current Liabilities: | ||||||||||||||
Accounts payable | $ | 292,122 | $ | 305,950 | ||||||||||
Accrued salaries, wages and employee benefits | 64,143 | 59,644 | ||||||||||||
Accrued income taxes | 57,272 | 65,846 | ||||||||||||
Accrued acquisition-related obligations | 7,244 | 120,357 | ||||||||||||
Other accrued expenses | 81,979 | 82,596 | ||||||||||||
Current portion of long-term debt and capital lease obligations | 399 | 439 | ||||||||||||
Total current liabilities | 503,159 | 634,832 | ||||||||||||
Long-term debt and capital lease obligations | 753,050 | 786,020 | ||||||||||||
Accrued pension and post employment | ||||||||||||||
benefit obligations | 172,235 | 161,669 | ||||||||||||
Other long-term liabilities | 27,922 | 43,069 | ||||||||||||
Shareholders' Equity: | ||||||||||||||
Common stock | 174 | 171 | ||||||||||||
Additional paid-in capital | 71,368 | 22,746 | ||||||||||||
Accumulated earnings | 1,774,625 | 1,467,099 | ||||||||||||
Accumulated other comprehensive loss | (100,090 | ) | (140,591 | ) | ||||||||||
Total shareholders' equity attributable to Amphenol Corporation | 1,746,077 | 1,349,425 | ||||||||||||
Noncontrolling interests | 16,741 | 19,144 | ||||||||||||
Total equity | 1,762,818 | 1,368,569 | ||||||||||||
$ | 3,219,184 | $ | 2,994,159 |
AMPHENOL CORPORATION | ||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW | ||||||||||
(dollars in thousands) | ||||||||||
Twelve months ended | ||||||||||
December 31, | ||||||||||
2009 | 2008 | |||||||||
Net income | $ | 327,216 | $ | 429,577 | ||||||
Adjustments for cash from operations: | ||||||||||
Depreciation and amortization | 98,524 | 91,302 | ||||||||
Stock-based compensation | 20,240 | 16,316 | ||||||||
Net change in receivables sold | (3,000 | ) | - | |||||||
Excess tax benefits from stock-based payment arrangements | (16,085 | ) | (21,307 | ) | ||||||
Net change in components of working capital | 144,654 | (18,689 | ) | |||||||
Net change in other long-term assets and liabilities | 10,748 | (15,676 | ) | |||||||
Cash provided by operations | 582,297 | 481,523 | ||||||||
Cash flow from investing activities: | ||||||||||
Capital additions, net | (59,834 | ) | (107,340 | ) | ||||||
Purchase of short term investments | (33,342 | ) | (2,938 | ) | ||||||
Investments in acquisitions | (280,014 | ) | (135,807 | ) | ||||||
Cash flow used in investing activities | (373,190 | ) | (246,085 | ) | ||||||
Cash flow from financing activities: | ||||||||||
Net change in borrowings under revolving | ||||||||||
credit facilities | (631,934 | ) | 61,914 | |||||||
Borrowings under senior notes | 598,878 | - | ||||||||
Settlement of interest rate swap agreements | (4,575 | ) | - | |||||||
Payments of fees and expenses related to senior notes financing | (4,650 | ) | - | |||||||
Purchase of treasury stock | - | (293,625 | ) | |||||||
Proceeds from exercise of stock options | 25,481 | 27,081 | ||||||||
Excess tax benefits from stock-based payment arrangements | 16,085 | 21,307 | ||||||||
Payments to noncontrolling interests | (23,328 | ) | - | |||||||
Dividend payments | (10,279 | ) | (10,617 | ) | ||||||
Cash flow used in financing activities | (34,322 | ) | (193,940 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (5,159 | ) | (10,152 | ) | ||||||
Net change in cash and cash | ||||||||||
equivalents | 169,626 | 31,346 | ||||||||
Cash and cash equivalents | ||||||||||
balance, beginning of period | 214,987 | 183,641 | ||||||||
Cash and cash equivalents | ||||||||||
balance, end of period | $ | 384,613 | $ | 214,987 | ||||||
Cash paid during the period for: |
||||||||||
Interest | $ | 38,532 | $ | 39,180 | ||||||
Income taxes | 117,122 | 124,929 |
AMPHENOL CORPORATION | |||||||||||||||||||||
SEGMENT INFORMATION | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Three months ended | Twelve months ended | ||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | ||||||||||||||||||
Trade Sales: | |||||||||||||||||||||
Interconnect Products | $ | 695,127 | $ | 692,656 | $ | 2,566,578 | $ | 2,950,570 | |||||||||||||
Cable Products | 63,169 | 62,626 | 253,487 | 285,901 | |||||||||||||||||
Consolidated | $ | 758,296 | $ | 755,282 | $ | 2,820,065 | $ | 3,236,471 | |||||||||||||
Operating income: | |||||||||||||||||||||
Interconnect Products | $ | 142,866 | $ | 147,919 | $ | 505,772 | $ | 648,605 | |||||||||||||
Cable Products | 9,798 | 7,004 | 38,751 | 32,535 | |||||||||||||||||
Stock-based compensation expense | (4,981 | ) | (4,539 | ) | (20,241 | ) | (16,316 | ) | |||||||||||||
Other operating expenses | (9,223 | ) | (7,984 | ) | (35,369 | ) | (32,585 | ) | |||||||||||||
Consolidated | $ | 138,460 | $ | 142,400 | $ | 488,913 | $ | 632,239 | |||||||||||||
ROS%: | |||||||||||||||||||||
Interconnect Products | 20.6 | % | 21.4 | % | 19.7 | % | 22.0 | % | |||||||||||||
Cable Products | 15.5 | % | 11.2 | % | 15.3 | % | 11.4 | % | |||||||||||||
Corporate - stock-based compensation | -0.7 | % | -0.6 | % | -0.7 | % | -0.5 | % | |||||||||||||
Corporate - all other | -1.2 | % | -1.1 | % | -1.3 | % | -1.0 | % | |||||||||||||
Consolidated | 18.3 | % | 18.9 | % | 17.3 | % | 19.5 | % |
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