2003 Second Quarter Results Reported by Amphenol Corporation.Business Editors WALLINGFORD Wallingford, town (1990 pop. 40,822), New Haven co., S Conn.; inc. 1670. Its silverware industry dates from c.1835. Fruit growing and the manufacture of plastics, steel, precision instruments, and hardware are among the town's other industries. , Conn.--(BUSINESS WIRE)--July 16, 2003 Amphenol Amphenol Corporation (NYSE: APH) is a major producer of electronic and fiber optic connectors, cable and interconnect systems. Amphenol is a portmanteau from the corporation's original name, American Phenolic Corp. Corporation (NYSE-APH) reported today that second quarter 2003 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of before refinancing Refinancing An extension and/or increase in amount of existing debt. costs increased 30% to $.60 compared to $.46 per share for the 2002 period. Such per share amount for 2003 excludes the one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. effect of expenses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc 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 in conjunction with the refinancing of the Company's debt completed in the second quarter. Including such one-time expenses, diluted earnings per share for the second quarter 2003 was $.45. Sales for the second quarter 2003 increased 13% to $304,893,000 compared to $270,865,000 for the 2002 period. Currency translation had the effect of increasing sales by approximately $17.9 million in the second quarter 2003 compared to the 2002 period. For the six months ended June June: see month. 30, 2003, diluted earnings per share before refinancing costs was $1.14 compared to $.86 per share for the 2002 period. Such per share amount for the six month 2003 period excludes the one-time effect of expenses relating to the early extinguishment of debt referred to above. Including such one-time expenses, diluted earnings per share for the six months ended June 30, 2003 was $.98. Sales for the six months ended June 30, 2003 were $582,667,000 compared to $526,841,000 for the 2002 period. Currency translation had the effect of increasing sales by approximately $34.7 million for the six month 2003 period when compared to the 2002 period. As previously announced, in the second quarter 2003 the Company completed a refinancing of its senior credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities and redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. all of its outstanding Senior Subordinated Notes ("Notes"). In conjunction therewith there·with adv. 1. With that, this, or it. 2. In addition to that. 3. Archaic Immediately thereafter. Adv. 1. , the Company incurred one-time expenses for the early extinguishment of debt totaling $10,367,000 (before tax benefit of $3,525,000) or $.16 per share after tax. Such one-time expenses include the call premium on the Notes, write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of unamortized deferred debt issuance costs and other related costs. 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: "I am extremely pleased with our second quarter results. Sales were up 13% compared to last year's second quarter. The 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. portion of our business, which represents 88% of our sales, was up a strong 17% over last year, and the growth was broad based across substantially all of our major military/aerospace, industrial/automotive and communications end markets and all major geographic regions. The excellent results reflect our continuing development of new application specific solutions and value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. products for our customers as well as increasing our worldwide presence with the leading companies in our target markets. The 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 for broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). cable television networks portion of our business, which represents 12% of our sales, was up sequentially from the first quarter this year but down from the second quarter last year as both domestic and international cable operators have curtailed their capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. for network upgrades and expansion. In addition to excellent overall top line growth, profitability and cash flow continued to be strong. Earnings per share for the quarter, excluding one-time refinancing expenses, represent the sixth consecutive quarterly increase. Our operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. margin continued strong at 16.2% for the quarter, and cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses was $26.8 million. The debt refinancing completed in the quarter gives us significantly increased flexibility to pursue additional opportunities to grow and expand our business. In addition, the acquisition of the Insilco cable assembly business completed in the first quarter and the acquisition of the PCD PCD polycystic disease. industrial/avionics business completed in the second quarter made a positive contribution to operations." "Notwithstanding the excellent second quarter and first half results, the overall economic climate remains challenging and the timing and strength of a general economic recovery remains uncertain; and accordingly it continues to be difficult forecasting future results. However, we are encouraged with our leading positions in excellent and diversified diversified (di·verˑ·s markets and by our increasing presence with the major companies in these markets. In addition, the excellent first half results and the fine execution on our operating plans gives us the confidence that we are revising upward our expectation for full year 2003 revenue growth from 4-7% to 9-12% and our expectation for full year 2003 EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. increase from 20-25% to 25-30% (excluding the one-time debt refinancing costs)." The Company will host a conference call to discuss its second quarter results at 1:00 PM (EST EST electroshock therapy. EST abbr. electroshock therapy ) July July: see month. 16, 2003. The toll free dial-in number to participate in this call is 888-381-5774; International dial-in number 210-839-8502; Passcode: Jepsen. There will be a replay available until 6:00 PM (ET) on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , July 18, 2003. The toll free replay dial-in number is 800-945-0304 and International dial-in replay number is 402-220-3526. 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 and Asia and sold by a worldwide sales and marketing organization. The primary end markets for the Company's products are communication systems for wired and wireless internet and broadband networks  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. , industrial/automotive and military/aerospace applications. Statements in this press release which are other than historical facts are intended to be "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Securities Exchange Act of 1934, the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 1 of the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2002, 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
FINANCIAL SUMMARY
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------ -------------------------
2003 2002 2003 2002
---- ----- ----- ----
Sales $304,893,000 $270,865,000 $582,667,000 $526,841,000
Net income $19,479,000(1) $20,003,000 $ 42,792,000(1) $37,196,000
Earnings per
share - basic $.46(1) $.47 $1.00(1) $.88
Average shares
outstanding -
basic 42,624,274 42,394,252 42,598,619 42,348,057
Earnings per
share - diluted $.45(1) $.46 $.98(1) $.86
Average shares
outstanding -
diluted 43,672,305 43,454,235 43,592,119 43,448,329
(1) Includes a one-time charge for expenses incurred in the early
extinguishment of debt of $10,367,000, less tax benefit of $3,525,000,
or $.16 per basic and diluted share.
AMPHENOL CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(dollars in thousands, except per share data)
Three months ended Six months ended
June 30, June 30,
----------------------- -------------------------
2003 2002 2003 2002
----------- ----------- ----------- -----------
Net Sales $304,893 $270,865 $582,667 $526,841
Costs and Expenses:
Cost of sales,
excluding
depreciation and
amortization 203,200 178,485 385,853 349,220
Depreciation and
amortization
expense 9,566 8,542 18,374 16,940
Selling, general
and administrative
expense 42,868 38,806 84,010 75,376
--------- --------- ----------- ----------
Operating income 49,259 45,032 94,430 85,305
Interest expense (7,694) (12,858) (15,818) (25,696)
Other expenses, net (1,685) (1,635) (3,409) (2,821)
Expense for early
extinguishment of
debt (10,367) 0 (10,367) 0
---------- ---------- ----------- -----------
Income before income
taxes 29,513 30,539 64,836 56,788
Provision for income
taxes (10,034) (10,536) (22,044) (19,592)
--------- ----------- ----------- -----------
Net income $19,479 $20,003 $42,792 $37,196
========= =========== =========== ===========
Net income per common
share - Basic $0.46 $0.47 $1.00 $0.88
========= =========== =========== ===========
Average shares
outstanding -
Basic 42,624,274 42,394,252 42,598,619 42,348,057
=========== =========== =========== ===========
Net income per common
share - Diluted $0.45 $0.46 $0.98 $0.86
=========== =========== =========== ===========
Average shares
outstanding -
Diluted 43,672,305 43,454,235 43,592,119 43,448,329
=========== =========== =========== ===========
Pro forma net income and
earnings per share
excluding expense for early
extinguishment of debt:
-----------------------------
Net income $19,479 $42,792
Expense for early
extinguishment of
debt, net of taxes
of $3,525 6,842 6,842
--------- -----------
Net income
excluding expense
for early
extinguishment
of debt $26,321 $49,634
========== ==========
Net income per
common share -
Basic $0.62 $1.17
========== ==========
Net income per
common share -
Diluted $0.60 $1.14
========== ==========
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(dollars in thousands)
June 30, Dec. 31,
2003 2002
(Unaudited)
ASSETS
Current Assets:
Cash and short-term cash investments $22,328 $20,659
Accounts receivable, less allowance
for doubtful accounts of $8,861
and $8,812, respectively 158,817 131,252
Inventories 211,535 205,643
Prepaid expenses and other assets 34,865 31,610
----------- -----------
Total current assets 427,545 389,164
Land and depreciable assets, less
accumulated depreciation of
$314,587 and $285,427, respectively 171,260 160,690
Deferred debt issuance costs 7,769 4,382
Goodwill 501,414 486,841
Deferred taxes and other assets 39,674 37,831
----------- -----------
$1,147,662 $1,078,908
=========== ===========
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $94,426 $88,533
Accrued interest 3,199 4,957
Accrued salaries, wages and employee benefits 30,370 24,568
Other accrued expenses 47,858 39,493
Current portion of long-term debt 10,255 78,363
----------- -----------
Total current liabilities 186,108 235,914
Long-term debt 624,663 565,885
Accrued pension and post employment
benefit obligations 107,184 102,418
Deferred taxes and other liabilities 10,801 7,709
Shareholders' Equity:
Common stock 43 43
Additional paid-in capital (deficit) (272,954) (274,282)
Accumulated earnings 565,232 522,440
Accumulated other comprehensive loss (73,415) (81,219)
----------- -----------
Total shareholders' equity 218,906 166,982
----------- -----------
$1,147,662 $1,078,908
=========== ===========
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