2005 First 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 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 first quarter 2005 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 30% to a record $.52 compared to $.40 per share for the comparable 2004 period. Sales for the first quarter 2005 increased 15% to $409,395,000 compared to $355,261,000 for the 2004 period. Currency translation had the effect of increasing sales by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $7.7 million in the first quarter 2005 compared to the 2004 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 first quarter results. Sales were up 15% compared to last year's first quarter to a record $409,395,000. 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 17.3% to 18.9%. 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 88% of our sales, was up a strong 16% over last year with excellent profitability. The growth was broad based across all of our end markets and included all major geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. regions. Growth was especially strong in the industrial, 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 and our increased worldwide presence with the leading companies in our target markets. 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. 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 12% of our sales, was up 8% over 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 were up 30% over last year, representing the thirteenth consecutive quarterly increase and a new record for the Company. Furthermore, net income, that is income after interest expense and taxes, exceeded 11% 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 strong at $39 million for the quarter." "Consistent with our strategy, the Company has completed three acquisitions since the beginning of this year, with aggregate annual sales of approximately $70 million. The acquisitions complement and broaden the Company's presence in a number of market segments and include a Korean Korean, language of uncertain ancestry. It is thought by some scholars to be akin to Japanese, by others to be a member of the Altaic subfamily of the Ural-Altaic family of languages (see Uralic and Altaic languages), and by still others to be unrelated to any known manufacturer of handset The part of the telephone that contains the speaker and the microphone. On a desktop phone, the part you hold in your hand is the handset. On a cellphone, the entire phone is the handset. See multihandset cordless and headset. related products, a United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. manufacturer of 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. systems for high performance military and industrial markets and a United States manufacturer of high speed, high density interconnect products for computer and communications related markets. These acquisitions contributed approximately $8 million in sales in the first quarter of 2005. We are excited about the growth opportunities presented by these excellent additions." "With the first quarter results, 2005 is off to a great start. I am very proud of our organization as we continue to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution 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. Assuming a continuation continuation - continuation passing style of the current economic climate and relatively stable currency exchange rates, we are revising upward our expectation for full year 2005 results to a sales increase in the range of 11% to 14% and earnings per share increase in the range of 20% to 25%; this compares to our prior estimates of sales and earnings per share increases of 9% to 12% and 18% to 23%, respectively. We expect second quarter results in the range of $430 million to $440 million and $.55 to $.57 for sales and 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. 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 first quarter results at 1:00 PM (ET) April 20, 2005. 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 (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 , April 22, 2005. If you are unable to participate on the call and would like to hear a replay, the toll free dial-in number is 800-938-1164 and International dial-in replay number is 402-998-0567. A live broadcast as well as a replay 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 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, 2004, 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
March 31,
2005 2004
Sales $409,395,000 $355,261,000
Net income 46,376,000 35,658,000
Earnings per share - Basic $.53 $.41
Average shares outstanding - Basic 88,016,736 87,977,804
Earnings per share - Diluted $.52 $.40
Average shares outstanding - Diluted 89,904,666 89,878,164
AMPHENOL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(dollars in thousands, except per share data)
Three months ended
March 31,
-----------------------
2005 2004
----------- -----------
Net Sales $409,395 $355,261
Costs and Expenses:
Cost of sales, excluding depreciation
and amortization 263,425 233,230
Depreciation and amortization expense 10,814 9,433
Selling, general and administrative
expense 57,823 51,315
----------- -----------
Operating income 77,333 61,283
Interest expense (5,403) (5,755)
Other expenses, net (1,664) (1,500)
----------- -----------
Income before income taxes 70,266 54,028
Provision for income taxes (23,890) (18,370)
----------- -----------
Net income $46,376 $35,658
=========== ===========
Net income per common share - Basic $0.53 $0.41
=========== ===========
Average shares outstanding - Basic 88,016,736 87,977,804
=========== ===========
Net income per common share - Diluted $0.52 $0.40
=========== ===========
Average shares outstanding - Diluted 89,904,666 89,878,164
=========== ===========
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
Mar. 31, Dec. 31,
2005 2004
----------- -----------
(Unaudited)
ASSETS
Current Assets:
Cash and short-term cash investments $26,257 $30,172
Accounts receivable, less allowance
for doubtful accounts of $8,143
and $8,666, respectively 230,516 214,158
Inventories 263,390 247,303
Prepaid expenses and other assets 35,439 37,382
----------- -----------
Total current assets 555,602 529,015
Land and depreciable assets, less
accumulated depreciation of
$347,304 and $349,255, respectively 203,165 197,753
Deferred debt issuance costs 6,087 6,451
Goodwill 595,060 545,411
Deferred taxes and other assets 33,245 28,081
----------- -----------
$1,393,159 $1,306,711
=========== ===========
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $149,129 $134,856
Accrued interest 2,215 2,183
Accrued salaries, wages and employee
benefits 38,413 38,535
Other accrued expenses 75,054 85,089
Dividends payable 2,691 -
Current portion of long-term debt 17,514 16,909
----------- -----------
Total current liabilities 285,016 277,572
Long-term debt 458,142 432,144
Accrued pension and post employment
benefit obligations 101,762 102,050
Other liabilities 21,225 13,341
Shareholders' Equity:
Common stock 88 88
Additional paid-in deficit (196,628) (207,504)
Accumulated earnings 833,426 789,741
Accumulated other comprehensive loss (59,506) (55,078)
Treasury stock, at cost (50,366) (45,643)
----------- -----------
Total shareholders' equity 527,014 481,604
----------- -----------
$1,393,159 $1,306,711
=========== ===========
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
(dollars in thousands)
Three months ended
March 31,
------------------
2005 2004
--------- --------
Net income $ 46,376 $ 35,658
Adjustments for cash from operations:
Depreciation and amortization 10,814 9,433
Amortization of deferred debt issue costs 364 356
Net change in non-cash components of
working capital (18,827) (22,678)
Other long term assets and liabilities (131) 5,377
--------- --------
Cash provided by operations 38,596 28,146
--------- --------
Cash flow from investing activities:
Capital additions, net (12,475) (6,694)
Investments in acquisitions (53,039) (457)
--------- --------
Cash flow used by investing activities (65,514) (7,151)
--------- --------
Cash flow from financing activities:
Net change in borrowings under revolving
credit facilities 23,678 (174)
Decrease in borrowings under Bank Agreement - (15,000)
Purchase of treasury stock (4,723) (16,174)
Proceeds from exercise of stock options
including tax benefit 4,048 15,224
--------- --------
Cash flow provided by (used by) financing
activities 23,003 (16,124)
--------- --------
Net change in cash and short-term
cash investments (3,915) 4,871
Cash and short-term cash investments
balance, beginning of period 30,172 23,533
--------- --------
Cash and short-term cash investments
balance, end of period $ 26,257 $ 28,404
========= ========
Net cash paid during the year for:
----------------------------------
Interest 5,007 5,949
Taxes 23,750 13,940
AMPHENOL CORPORATION
SEGMENT INFORMATION
(In thousands)
(Unaudited)
Three months ended
March 31,
---------------------------------
2005 2004
--------------- ---------------
Trade Sales:
Interconnect Products $ 361,155 $ 310,673
Cable Products 48,240 44,588
--------------- ---------------
Consolidated $ 409,395 $ 355,261
=============== ===============
Operating income:
Interconnect Products $ 75,791 $ 60,600
Cable Products 6,175 5,411
Corporate (4,633) (4,728)
--------------- ---------------
Consolidated $ 77,333 $ 61,283
=============== ===============
ROS%:
Interconnect Products 21.0% 19.5%
Cable Products 12.8% 12.1%
Consolidated 18.9% 17.3%
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