2006 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 2006 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 21% to $.63 compared to $.52 per share for the comparable 2005 period. 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. for the first quarter of 2006 was reduced by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.8 million ($.01 per share) relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc stock option expense as a result of the adoption of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123R. 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 first quarter 2005 EPS after option expense is $.50. Sales for the first quarter 2006 increased 39% to $568,991,000 compared to $409,395,000 for the 2005 period. Currency translation had the effect of decreasing sales by approximately $10.1 million in the first quarter 2006 compared to the 2005 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: "We are extremely pleased to start 2006 with a record quarter achieving sales of $569 million and earnings per share of $.63. Sales increased 39% over last year and 16% excluding the TCS (Transportation Control System) A widely used integrated information system for railroad transportation developed by the Missouri Pacific Railroad Company in the late 1960s and early 1970s. It was later implemented by Union Pacific when the companies merged. acquisition. This strong performance was broad based with growth in all major market segments; with particular strength in the wireless 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. and 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). communications network The transmission channels interconnecting all client and server stations as well as all supporting hardware and software. markets. The TCS acquisition performed better than expectations, achieving sales of $94 million and operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of 10%, contributing approximately $.03 to earnings per share in the quarter. I am extremely pleased with the progress TCS has made in its first quarter as an Amphenol company. The timely implementation of cost reduction and other profit improvement actions contributed significantly in the quarter and provide a solid base for future performance. In addition, in March, consistent with our strategy, the Company completed the acquisition of 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 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. systems for the medical equipment market with annual sales of approximately $20 million. The acquisition complements and broadens our product offering in this important market." "In addition to excellent overall top line growth, profitability and cash flow continued to be strong. 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 in the first quarter was 17.3%. Excluding the impact of the TCS acquisition, and the impact of stock option expense resulting from the implementation of SFAS 123R on January January: see month. 1, 2006, the first quarter 2006 operating income margin was 19.1%; compared to 18.9% in last year's first quarter. I am very pleased that we have been able to achieve this strong profitability in a difficult cost environment. The increase in operating margins over the prior year was driven by the improved profitability of the interconnect product segment offset in part by lower cable product margins, which continue to be impacted by increasing material and freight The price or compensation paid for the transportation of goods by a carrier. Freight is also applied to the goods transported by such carriers. The liability of a carrier for freight damaged, lost, or destroyed during shipment is determined by contract, statute, or related costs. Furthermore, net income, that is income after interest expense and taxes, was 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 for the quarter was also strong at $56 million." "We had a strong start to 2006 and look to the future with great enthusiasm. We have an outstanding management team, excellent technological capabilities, leading positions in diversified diversified (di·verˑ·s markets, and an increasing presence with the major companies in these markets. With the addition of TCS we are the world's third largest interconnect company with an expanded platform for creating value. Assuming a continuation continuation - continuation passing style of the current economic climate and relatively stable currency exchange rates, we are raising our guidance for the full year 2006 to achieve revenues and EPS in the range of $2,300 million to $2,345 million and $2.64 to $2.72, respectively. This compares to the Company's previous guidance of revenues and EPS in the range of $2,250 million to $2,300 million and $2.56 to $2.63, respectively. For the second quarter of 2006 we expect revenues and EPS in the range of $580 million to $590 million and $.66 and $.68, respectively. EPS guidance for the year and second quarter of 2006 includes approximately $9.8 million ($.07 per share) and $2.5 million ($.02 per share) relating to stock option expense as a result of the adoption of SFAS 123R. Pro forma 2005 EPS after option expense is $2.23 and $.56, for the full year and second quarter, respectively. We are very excited about the future and confident in the ability of our excellent organization to take advantage of the many opportunities in front of us." The Company will host a conference call to discuss its first quarter results at 1:00 PM (ET) April 19, 2006. 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 21, 2006. The replay numbers are as follows: toll free dial-in number is 800-846-1910 and International dial-in number is 402-280-9953. 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 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. Amphenol has a diversified presence as a leader in high
growth segments of the interconnect market including: Military,
Commercial Aerospace, Automotive, Broadband Communication, Industrial,
Information Technology and Data Communications Equipment See DCE. Data Communications Equipment - Data Communication Equipment , Mobile Devices and Wireless Infrastructure. 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 1A 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, 2005, 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
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(dollars in thousands, except per share data)
Three months ended
March 31,
-----------------------
2006 2005
----------- ----------
Net Sales $568,991 $409,395
Costs and Expenses:
Cost of sales, excluding depreciation
and amortization 373,023 263,425
Depreciation and amortization expense 17,776 10,814
Selling, general and administrative expense 79,801 57,823
----------- -----------
Operating income 98,391 77,333
Interest expense (10,184) (5,403)
Other expenses, net (2,724) (1,664)
----------- -----------
Income before income taxes 85,483 70,266
Provision for income taxes (28,209) (23,890)
----------- -----------
Net income $ 57,274 $ 46,376
=========== ===========
Net income per common share - Basic $ 0.64 $ 0.53
=========== ===========
Average shares outstanding - Basic 89,447,160 88,016,736
========== ===========
Net income per common share - Diluted (1) $ 0.63 $ 0.52
========== ===========
Average shares outstanding - Diluted 91,530,174 89,904,666
========== ===========
(1) - Effective January 1, 2006 the Company implemented SFAS 123R and
began expensing stock based compensation. Such expense was previously
disclosed in the Company's financial statement footnotes but was not
included as an expense in the Company's income statement. For the
three months ended March 31, 2006, diluted earnings per share
excluding the $1.8 million of stock based compensation expense is
$.64. For the three months ended March 31, 2005, diluted earnings per
share including pro forma stock based compensation expense of $1.5
million is $.50.
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
March 31, Dec. 31,
2006 2005
----------- ----------
(Unaudited)
ASSETS
Current Assets:
Cash and short-term cash investments $ 37,304 $ 38,669
Accounts receivable, less allowance
for doubtful accounts of $11,489
and $11,162, respectively 335,104 302,867
Inventories 347,842 325,865
Prepaid expenses and other assets 50,545 42,413
------------ ----------
Total current assets 770,795 709,814
Land and depreciable assets, less accumulated
depreciation of $368,414 and $352,408,
respectively 263,969 253,889
Deferred debt issuance costs 2,300 2,351
Goodwill 902,584 886,720
Other assets 69,290 79,766
------------ ----------
$2,008,938 $1,932,540
=========== ===========
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 196,626 $ 177,266
Accrued interest 4,620 4,998
Accrued salaries, wages and employee benefits 42,920 42,705
Other accrued expenses 107,305 93,202
Dividends payable 2,734 2,729
Current portion of long-term debt 16,409 15,030
------------ ----------
Total current liabilities 370,614 335,930
Long-term debt 741,408 765,970
Accrued pension and post employment
benefit obligations 113,751 108,816
Other liabilities 23,897 32,589
Shareholders' Equity:
Common stock 89 89
Additional paid-in deficit (156,440) (164,082)
Accumulated earnings 1,039,906 985,317
Accumulated other comprehensive loss (69,940) (77,742)
Treasury stock, at cost (54,347) (54,347)
------------ ----------
Total shareholders' equity 759,268 689,235
------------ ----------
$2,008,938 $1,932,540
=========== ===========
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
(dollars in thousands)
Three months
ended
March 31,
-----------------
2006 2005
-------- --------
Net income $57,274 $46,376
Adjustments for cash from operations:
Depreciation and amortization 17,776 10,814
Amortization of deferred debt issue costs 131 364
Stock-based compensation 1,781 -
Net change in non-cash components of
working capital (23,209) (18,827)
Other long term assets and liabilities 2,150 (131)
-------- --------
Cash provided by operations 55,903 38,596
-------- --------
Cash flow from investing activities:
Capital additions, net (20,160) (12,475)
Investments in acquisitions (15,682) (53,039)
-------- --------
Cash flow used by investing activities (35,842) (65,514)
-------- --------
Cash flow from financing activities:
Net change in borrowings under revolving
credit facilities (24,032) 23,678
Purchase of treasury stock - (4,723)
Proceeds from exercise of stock options 3,996 4,048
Excess tax benefits from stock-based payment
arrangements 1,289 -
Dividend payments (2,679) -
-------- --------
Cash flow provided by (used by)
financing activities (21,426) 23,003
-------- --------
Net change in cash and short-term
cash investments (1,365) (3,915)
Cash and short-term cash investments
balance, beginning of period 38,669 30,172
-------- --------
Cash and short-term cash investments
balance, end of period $37,304 $26,257
======== ========
Net cash paid during the year for:
---------------------------------
Interest 10,431 5,007
Taxes 21,260 23,750
AMPHENOL CORPORATION
SEGMENT INFORMATION
(Unaudited)
(dollars in thousands)
Three months ended
March 31,
-------------------
2006 2005
--------- ---------
Trade Sales:
Interconnect Products $509,058 $361,155
Cable Products 59,933 48,240
--------- ---------
Consolidated $568,991 $409,395
========= =========
Operating income:
Interconnect Products $ 99,869 $ 75,791
Cable Products 6,291 6,175
Corporate (7,769) (4,633)
--------- ---------
Consolidated $ 98,391 $ 77,333
========= =========
ROS%:
Interconnect Products 19.6% 21.0%
Cable Products 10.5% 12.8%
Consolidated 17.3% 18.9%
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion