2003 Third Quarter Results Reported by Amphenol Corporation.Business Editors/High-Tech Writers 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)--Oct. 15, 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 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 third 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 increased 33% to $.64 compared to $.48 per share for the 2002 period. Sales for the third quarter 2003 increased 17% to $314,798,000 compared to $268,115,000 for the 2002 period. Currency translation had the effect of increasing sales by approximately $11.7 million in the third quarter 2003 compared to the 2002 period. For the nine months ended September September: see month. 30, 2003, diluted earnings per share before refinancing Refinancing An extension and/or increase in amount of existing debt. costs was $1.78 compared to $1.33 per share for the 2002 period. Such per share amount for the nine month 2003 period 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 in the second quarter 2003. Including such one-time expenses, diluted earnings per share for the nine months ended September 30, 2003 was $1.62. Sales for the nine months ended September 30, 2003 were $897,465,000 compared to $794,956,000 for the 2002 period. Currency translation had the effect of increasing sales by approximately $46.3 million for the nine month 2003 period when compared to the 2002 period. 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 third quarter results. Sales were up 17% compared to last year's third 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 87% of our sales, was up a strong 18% over last year, and the growth was broad based across all of our end markets comprising mobile communications, computer/data communications, industrial, automotive and military/aerospace markets and the sales increase included 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 portion of our business, which is primarily 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 and represents 13% of our sales, was up 12% over a comparatively weak quarter in the prior year." "In addition to excellent overall top line growth, profitability and cash flow continued to be strong. Earnings per share for the quarter, was up 33% over last year and represents the seventh consecutive quarterly increase. The diluted earnings per share for the quarter of $.64 includes a charge of approximately $750,000, or $.01 per share, for the cost of the secondary offering completed in the third quarter this year. 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 was a strong 16.6%, representing both a sequential and year-over-year increase. 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 also excellent at $34.9 million for the quarter. During the year, we have substantially reinvested the strong cash flow in the business and also reduced our outstanding debt by $73.0 million." "On the basis of the strong third quarter results, we are again revising upward our expectation for full year 2003 revenue growth from 9-12% to 13-15% and our 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 (excluding the one-time second quarter debt refinancing costs) from 25-30% to 31-33%, or an EPS expectation for the fourth quarter 2003 of $.64-$.68. We caution that business conditions remain challenging and it continues to be difficult forecasting future results; however, we are encouraged by our strong position in excellent and diversified diversified (di·verˑ·s markets, our increasing presence with the major companies in these markets and some signs of general economic improvement." The Company will host a conference call to discuss its third quarter results at 9:00 AM (EST EST electroshock therapy. EST abbr. electroshock therapy ) October October: see month. 16, 2003. The toll free dial-in number to participate in this call is 888-658-8648; International dial-in number 630-395-0021; Passcode: Jepsen. There will be a replay available until 6:00 PM (EST) on Monday Monday: see week. , October 20, 2003. The toll free replay dial-in number is 800-666-0517 and International dial-in replay number is 402-220-0263. 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 A·mer·i·cas , the See America. , 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 Amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. 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 Nine Months Ended
September 30, September 30,
-------------------------- --------------------------
2003 2002 2003 2002
---- ---- ---- ----
Sales $314,798,000 $268,115,000 $897,465,000 $794,956,000
Net income $28,212,000 $20,666,000 $71,004,000(1) $57,862,000
Earnings per
share - basic $.65 $.49 $1.66(1) $1.36
Average
shares
outstanding
- basic 43,190,176 42,525,620 42,797,972 42,407,895
Earnings per
share - diluted $.64 $.48 $1.62(1) $1.33
Average
shares
outstanding
- diluted 44,268,977 43,420,506 43,820,218 43,438,952
1. Includes a one-time charge for expenses incurred in the early extinguishment of debt in the second quarter 2003 of $10,367,000, less tax benefit of $3,525,000, or $.16 per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share.
AMPHENOL CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(dollars in thousands, except per share data)
Three months ended Nine months ended
September 30, September 30,
-----------------------------------------------
2003 2002 2003 2002
----------- ----------- ----------- -----------
Net Sales $314,798 $268,115 $897,465 $794,956
Costs and Expenses:
Cost of sales,
excluding
depreciation
and amortization 208,677 176,063 594,530 525,283
Depreciation and
amortization expense 9,133 9,072 27,507 26,012
Selling, general and
administrative
expense 44,616 38,780 128,626 114,156
----------- ----------- ----------- -----------
Operating income 52,372 44,200 146,802 129,505
Interest expense (7,179) (11,482) (22,997) (37,178)
Other expenses, net (2,447) (1,167) (5,856) (3,988)
Expense for early
extinguishment of debt (10,367)
----------- ----------- ----------- -----------
Income before income
taxes 42,746 31,551 107,582 88,339
Provision for income
taxes (14,534) (10,885) (36,578) (30,477)
----------- ----------- ----------- -----------
Net income $28,212 $20,666 $71,004 $57,862
=========== =========== =========== ===========
Net income per common
share - Basic $0.65 $0.49 $1.66 $1.36
=========== =========== =========== ===========
Average shares
outstanding - Basic 43,190,176 42,525,620 42,797,972 42,407,895
=========== =========== =========== ===========
Net income per common
share - Diluted $0.64 $0.48 $1.62 $1.33
=========== =========== =========== ===========
Average shares
outstanding - Diluted 44,268,977 43,420,506 43,820,218 43,438,952
=========== =========== =========== ===========
--------------------
Pro forma net income
and earnings per share
excluding expense
for early
extinguishment
of debt:
Net income $71,004
Expense for early
extinguishment of
debt, net of taxes
of $3,525 6,842
-----------
Net income excluding
expense for early
extinguishment of
debt $77,846
===========
Net income per
common share -
Basic $1.82
===========
Net income per
common share -
Diluted $1.78
===========
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(dollars in thousands)
Sept. 30, Dec. 31,
2003 2002
----------- -----------
(Unaudited)
ASSETS
Current Assets:
Cash and short-term cash investments $16,981 $20,659
Accounts receivable, less allowance
for doubtful accounts of $8,935
and $8,812, respectively 159,555 131,252
Inventories 210,770 205,643
Prepaid expenses and other assets 33,125 31,610
----------- -----------
Total current assets 420,431 389,164
Land and depreciable assets, less
accumulated depreciation of
$318,417 and $285,427, respectively 172,294 160,690
Deferred debt issuance costs 7,391 4,382
Goodwill 504,290 486,841
Deferred taxes and other assets 38,852 37,831
----------- -----------
$1,143,258 $1,078,908
=========== ===========
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $101,140 $88,533
Accrued interest 3,190 4,957
Accrued salaries, wages and employee benefits 31,616 24,568
Other accrued expenses 48,156 39,493
Current portion of long-term debt 1,168 78,363
----------- -----------
Total current liabilities 185,270 235,914
Long-term debt 573,933 565,885
Accrued pension and post employment
benefit obligations 98,467 102,418
Deferred taxes and other liabilities 9,046 7,709
Shareholders' Equity:
Common stock 44 43
Additional paid-in deficit (246,318) (274,282)
Accumulated earnings 593,444 522,440
Accumulated other comprehensive loss (70,628) (81,219)
----------- -----------
Total shareholders' equity 276,542 166,982
----------- -----------
$1,143,258 $1,078,908
=========== ===========
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