2004 Third Quarter Record Results Reported by Amphenol Corporation.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. -- 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 third quarter 2004 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 47% to a record $.47 compared to $.32 per share for the comparable 2003 period. Per share amounts included herein have been adjusted to reflect the Company's 2 for 1 stock split effective in March 2004. Sales for the third quarter 2004 increased 22% to $384,103,000 compared to $314,798,000 for the 2003 period. Currency translation had the effect of increasing sales by approximately $10.4 million in the third quarter 2004 compared to the 2003 period. For the nine months ended September September: see month. 30, 2004, diluted earnings per share was $1.31 compared to $.89 per share for the 2003 period (excluding the effect in 2003 of a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge 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 the second quarter 2003, the Company refinanced its long term debt and incurred a one-time charge for write off of deferred debt issuance costs, early repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan premium and other related costs; diluted earnings per share for the nine months ended September 30, 2003 including such one-time charge was $.81. Sales for the nine months ended September 30, 2004 were $1,126,483,000 compared to $897,465,000 for the 2003 period. Currency translation had the effect of increasing sales by approximately $35.1 million for the nine month 2004 period when compared to the 2003 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 22% compared to last year's third quarter, a significant accomplishment in what is generally a seasonally softer quarter. The 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 increased from 16.6% to 18.3%. 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. products segment of our business, which represents 87% of our sales, was up a strong 24% over last year with excellent profitability. The growth was broad based across all of our end markets and included all major geographic regions. Growth was especially strong in the wireless communication and military and aerospace markets. The excellent top line 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, increasing our worldwide presence with the leading companies in our target markets and improved end markets reflecting a generally stronger economy compared to the prior year. The improved profitability in the interconnect business is also attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the continuing development of new application specific products as well as higher volumes and ongoing programs of cost control. In late September we acquired a French manufacturer of engineered cable assemblies for the automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. ; a business with annual sales of approximately $40 million. The acquisition complements and broadens our product offering to this global market. The cable products segment 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 also up a strong 13% over the prior year. In addition, the operating income margin in this segment strengthened as price increases implemented in the latter part of the second quarter partially offset the impact of higher material costs." "In addition to excellent overall top line growth, profitability and cash flow continued to be strong. Earnings per share for the quarter was up 47% over last year and represents the eleventh In music or music theory an eleventh is the note eleven scale degrees from the root of a chord and also the interval between the root and the eleventh. Since there are only seven degrees in a diatonic scale the eleventh degree is the same as the subdominant and the interval consecutive quarterly increase and a new record for the Company. Our operating income margin for the quarter was also strong at 18.3%, representing both a sequential One after the other in some consecutive order such as by name or number. and year-over-year increase. Furthermore, net income, that is income after interest expense and taxes, again exceeded 10% of sales, another indication of the Company's excellent profitability. 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 very strong at $47.3 million for the quarter and $133.1 million for the nine months 2004." "I am also very pleased that during the quarter Moody's Moody's Corporation (NYSE: MCO) is the holding company for Moody's Investors Service which performs financial research and analysis on commercial and government entities. The company also ranks the credit-worthiness of borrowers using a standardized ratings scale. upgraded the Company's credit rating to Ba1 and that Standard & Poor's has included the Company in its S&P 400 Mid Cap Index. We appreciate this recognition of the Company's excellent liquidity and strong operational performance over an extended period. Furthermore, in October October: see month. , the Company's Board of Directors approved an increase in the size of the Company's stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program, originally approved in March 2004, from two million shares to five million shares, and extended the termination date termination date, n See expiration date. of the program until September Until September is a 1984 romantic drama set in France. It stars Karen Allen as an American tourist in Paris who falls in love with a married Frenchman (Thierry Lhermitte). External links 30, 2006. Approximately four million shares remain available for purchase under this program." "It was a very good quarter in all respects, and I am very proud of our organization as we continue to execute well. We have a strong position in excellent and diversified diversified (di·verˑ·s markets and continue to increase our presence with the major companies in these markets. However, recent cautionary statements by economists and customers in certain of our markets suggest a higher level of uncertainty and an easing of the strong economic recovery of the first half of this year. Nevertheless, assuming no significant change in the current economic climate and stable currency exchange rates, we now expect full year earnings per share to increase 43% to 45% compared to the prior guidance of 35% to 40%, and we believe fourth quarter sales and earnings per share will be in the range of $390 to $395 million and $.48 to $.50 per share, respectively. We are very confident that we are in excellent markets with a great organization, and we are very excited about the future." The Company will host a conference call to discuss its third quarter results at 1:00 PM (EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ) October 20, 2004. The toll free dial-in number to participate in this call is 888-395-9624; International dial-in number 517-623-4547; Passcode: Reardon. There will be a replay available until 5:00 PM (EDT) on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , October 22, 2004. If you are unable to participate on the call and would like to hear a replay, the toll free dial-in number is 800-835-3844 and International dial-in replay number is 402-280-1655. A live broadcast as well as a replay until October 22, 2005 will also be available on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the 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 optic /op·tic/ (op´tik) ocular (1). op·tic or op·ti·cal adj. 1. Of or relating to the eye or vision. 2. connectors, cable and interconnect systems. Amphenol products are engineered and manufactured in the Americas A·mer·i·cas , the See America. , Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and Asia and sold by a worldwide sales and marketing
organization. The primary end markets for the Company's products
are communication systems for 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 voice, video and data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. , 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 December: see month. 31, 2003, 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,
2004 2003(2) 2004 2003(2)
Sales $384,103,000 $314,798,000 $1,126,483,000 $897,465,000
Net income $41,646,000 $28,212,000 $117,671,000 $71,004,000(1)
Earnings per
share
- basic $.47 $.33 $1.34 $.83(1)
Average shares
outstanding
- basic 87,961,000 86,380,352 88,037,522 85,595,944
Earnings per
share
- diluted $.47 $.32 $1.31 $.81(1)
Average shares
outstanding
- diluted 89,467,309 88,537,954 89,735,753 87,640,436
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 $.08 per basic and diluted share.
2. Per share and share amounts have been adjusted to reflect the
Company's 2 for 1 stock split effective in March 2004.
AMPHENOL CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(dollars in thousands, except per share data)
Three months ended Nine months ended
September 30, September 30,
----------------------- -----------------------
2004 2003 2004 2003
----------- ----------- ----------- -----------
Net Sales $384,103 $314,798 $1,126,483 $897,465
Costs and Expenses:
Cost of sales,
excluding
depreciation
and amortization 250,417 208,677 737,678 594,530
Depreciation and
amortization
expense 9,736 9,133 28,902 27,507
Selling, general
and
administrative
expense 53,647 44,616 159,263 128,626
----------- ----------- ----------- -----------
Operating income 70,303 52,372 200,640 146,802
Interest expense (5,597) (7,179) (17,025) (22,997)
Other expenses, net (1,607) (2,447) (5,326) (5,856)
Expense for early
extinguishment of
debt 0 0 0 (10,367)
----------- ----------- ----------- -----------
Income before income
taxes 63,099 42,746 178,289 107,582
Provision for income
taxes (21,453) (14,534) (60,618) (36,578)
----------- ----------- ----------- -----------
Net income $41,646 $28,212 $117,671 $71,004
=========== =========== =========== ===========
Net income per common
share - Basic $0.47 $0.33 $1.34 $0.83
=========== =========== =========== ===========
Average shares
outstanding - Basic 87,961,000 86,380,352 88,037,522 85,595,944
=========== =========== =========== ===========
Net income per common
share - Diluted $0.47 $0.32 $1.31 $0.81
=========== =========== =========== ===========
Average shares
outstanding
- Diluted 89,467,309 88,537,954 89,735,753 87,640,436
=========== =========== =========== ===========
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 $0.91
===========
Net income per common
share - Diluted $0.89
===========
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(dollars in thousands)
Sep. 30, Dec. 31,
2004 2003
----------- -----------
(Unaudited)
ASSETS
Current Assets:
Cash and short-term cash investments $22,523 $23,533
Accounts receivable, less allowance
for doubtful accounts of $10,574
and $9,244, respectively 199,271 172,488
Inventories 233,888 221,385
Prepaid expenses and other assets 42,588 33,943
----------- -----------
Total current assets 498,270 451,349
Land and depreciable assets, less
accumulated depreciation of
$332,055 and $327,469, respectively 185,441 178,266
Deferred debt issuance costs 5,948 7,014
Goodwill 546,282 516,335
Deferred taxes and other assets 21,761 28,420
----------- -----------
$1,257,702 $1,181,384
=========== ===========
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $130,935 $116,835
Accrued interest 2,435 2,939
Accrued salaries, wages and employee
benefits 36,051 31,091
Other accrued expenses 88,850 56,098
Current portion of long-term debt 11,612 10,679
----------- -----------
Total current liabilities 269,883 217,642
Long-term debt 458,231 532,280
Accrued pension and post employment
benefit obligations 85,108 100,326
Other liabilities 12,707 7,730
Shareholders' Equity:
Common stock 88 88
Additional paid-in deficit (215,502) (238,168)
Accumulated earnings 744,101 626,430
Accumulated other comprehensive loss (64,036) (64,944)
Treasury stock, at cost (32,878) 0
----------- -----------
Total shareholders' equity 431,773 323,406
----------- -----------
$1,257,702 $1,181,384
=========== ===========
AMPHENOL CORPORATION
SEGMENT INFORMATION
(In thousands)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
------------------- ---------------------
2004 2003 2004 2003
--------- --------- ----------- ---------
Trade Sales:
Interconnect Products $333,468 $269,852 $980,503 $777,846
Cable Products 50,635 44,946 145,980 119,619
--------- --------- ----------- ---------
Consolidated $384,103 $314,798 $1,126,483 $897,465
========= ========= =========== =========
Operating income:
Interconnect Products $68,157 $50,280 $197,040 $141,087
Cable Products 6,801 5,131 18,139 14,837
Corporate (4,655) (3,039) (14,539) (9,122)
--------- --------- ----------- ---------
Consolidated $70,303 $52,372 $200,640 $146,802
========= ========= =========== =========
ROS%:
Interconnect Products 20.4% 18.6% 20.1% 18.1%
Cable Products 13.4% 11.4% 12.4% 12.4%
Consolidated 18.3% 16.6% 17.8% 16.4%
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion