1998 Third Quarter Results Reported by Amphenol Corporation.WALLINGFORD, Conn.--(BUSINESS WIRE)--Oct. 14, 1998--Amphenol Corporation (NYSE NYSE See: New York Stock Exchange :APH APH American Printing House for the Blind, Inc. APH Actual Production History APH Association of Personal Historians APH Antepartum Hemorrhage APH A Pleasurable Headache (Matthew Good Band community) ) reported today that income per share for the third quarter 1998 assuming full dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. was $.46 per share, compared to $.48 per share for the 1997 period. Sales for the third quarter 1998 increased to $229,018,000 compared to $223,494,000 for the 1997 period. Currency translation had the effect of decreasing sales by approximately $1.2 million in the third quarter 1998 when compared to the 1997 period. For the nine months ended September 30, 1998, income per share was $1.61 per share, compared to $1.34 per share for the 1997 period. Sales for the nine months ended September 30, 1998 were $685,501,000 compared to $662,263,000 for the 1997 period. Currency translation had the effect of decreasing sales by approximately $10.2 million for the nine months 1998 when compared to the 1997 period. Income per share for the nine months 1998 assuming full dilution was $1.58 per share compared to $1.33 per share for the 1997 period. On May 19, 1997, the Company completed a merger with an affiliate of Kohlberg Kravis Roberts Kohlberg Kravis Roberts & Co (commonly referred to as KKR) is a New York City-based private equity firm that focuses primarily on late-stage leveraged buyouts. It was founded in 1976 by Jerome Kohlberg, Jr., and cousins Henry Kravis and George R. & Co. whereby the Company incurred additional indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. and reduced its shares outstanding from approximately 44.7 million to 17.5 million. In addition, in the 1997 second quarter, the Company incurred an extraordinary charge in conjunction with the merger for the early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt of $12,845,000, or $.41 per share. On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis as if the merger took place on January 1, 1997, the pro forma income per share for the nine months 1997 was $1.31 per share. Amphenol Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Martin H. Loeffler, stated "The third quarter results reflect an increasingly difficult economic environment. Our connector business experienced a 5% sales increase in the quarter on a constant dollar basis, again an increase in excess of industry averages. However, the combination of product mix and pricing pressure had a negative impact on our strong operating profit margins Operating profit margin The ratio of operating profit to net sales. . We continue to work cost reduction programs and additional steps were taken in the third quarter whereby we reduced our workforce by approximately 200 people. Sales of coaxial co·ax·i·al adj. Having or mounted on a common axis. coaxial Adjective 1. Electronics (of a cable) transmitting by means of two concentric conductors separated by an insulator cable products, primarily for cable television systems, were slightly below year ago levels as again a strong increase in North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. cable sales was offset by a continuing softness in the international market; and the cable operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: were lower than last year's margins. However, third quarter cable sales were up 11% over the second quarter 1998, and operating margins also improved sequentially. We are very confident that we are in the right markets with the right products for excellent long term growth and profitability. The converging con·verge v. con·verged, con·verg·ing, con·verg·es v.intr. 1. a. To tend toward or approach an intersecting point: lines that converge. b. technologies of data, voice and video communications are creating unprecedented opportunities for growth and innovation, and our communication related interconnect (1) To attach one device to another. (2) A physical port (plug, socket) or wireless port (transmitter, receiver) used to attach one device to another. products are well positioned to play a significant role in this technological advancement. The aerospace and industrial automation industries also present excellent opportunities for growth and we continue to develop new interconnect products to maintain our leadership position in these markets. However, the current economic uncertainties over international markets make us cautious in the near term as we continue our strategy of identifying growth opportunities for new application specific products while at the same time emphasizing the need for cost controls." Amphenol Corporation manufactures connectors, cable and interconnect systems for electronics, cable television, telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , aerospace, transportation and industrial applications. The Company's products are engineered and produced in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe and the Far East and sold by a worldwide sales and marketing organization. -0-
AMPHENOL CORPORATION
FINANCIAL SUMMARY
(Unaudited)
Three Months Ended
September 30,
1998 1997
Sales $ 229,018,000 $ 223,494,000
Income before extraordinary item 8,212,000 8,559,000
Extraordinary item:
Loss on early extinguishment
of debt, net of tax -- --
Net income $ 8,212,000 $ 8,559,000
Income per share:
Income per share before
extraordinary item $ .46 $ .49
$
Extraordinary loss per share -- --
Net income per share $ .46 $ .49
$
Average shares outstanding 17,716,592 17,519,781
Income per share, assuming dilution:
Income per share before
extraordinary item
- assuming dilution $ .46 $ .48
$
Extraordinary loss per share
- assuming dilution -- --
Net income per share
- assuming dilution $ .46 $ .48
$
Average shares outstanding
- assuming dilution 17,917,861 17,793,239
Nine Months Ended
September 30,
1998 1997
Sales $ 685,501,000 $ 662,263,000
Income before extraordinary item 28,240,000 41,830,000
Extraordinary item:
Loss on early extinguishment
of debt, net of tax -- (12,845,000)
Net income $ 28,240,000 $ 28,985,000
Income per share:
Income per share before
extraordinary item $ 1.61 $ 1.34
Extraordinary loss per share -- (.41)
Net income per share $ 1.61 $ .93
Average shares outstanding 17,596,608 31,269,159
Income per share, assuming dilution:
Income per share before
extraordinary item
- assuming dilution $ 1.58 $ 1.33
Extraordinary loss per share
- assuming dilution -- (.41)
Net income per share
- assuming dilution $ 1.58 $ .92
Average shares outstanding
- assuming dilution 17,927,434 31,410,910
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