AMETEK Achieves Record Fourth Quarter and Full-Year Results.PAOLI Pa·o·li , Pasquale di 1725-1807. Corsican patriot who led (from 1755) the struggle for independence from Genoa. , Pa. -- AMETEK Inc. (NYSE NYSE See: New York Stock Exchange :AME See AIT. ) today announced fourth quarter and full-year results that established records for sales, 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. , net income and 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 . Fourth Quarter Results AMETEK's fourth quarter 2005 sales of $403.8 million were up 24% over the same period of 2004. Operating income for the fourth quarter of 2005 was $64.9 million, an 18% increase from the $54.8 million recorded in the same period of 2004. Net income in the fourth quarter of 2005 increased 21% to $38.0 million, or $.53 per 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, from fourth quarter 2004 levels of $31.4 million, or $.45 per diluted share. Sales, operating income, net income, and diluted earnings per share were quarterly records. Full-Year Results AMETEK achieved 2005 sales of $1.43 billion, up 16% from year 2004 results. Operating income of $239.4 million was up 22% from $196.2 million for 2004. Net income grew to $140.6 million, up 25% from the $112.7 million earned in 2004, and diluted earnings per share of $1.99 were up 22% from $1.63 per share in 2004. Sales, operating income, net income, and diluted earnings per share were full-year records. "AMETEK had a great 2005," noted Frank S. Hermance Hermance is a municipality of the Canton of Geneva, Switzerland. External links
Electronic Instruments Group (EIG EIG Excellence in Government EIG Engineering Installation Group EIG Evènement Indésirable Grave (French) EIG Erie Insurance Group EIG Ecole Internationale de Genève (French) ) For the 2005 fourth quarter, EIG sales increased 25% to $230.7 million. Operating income for the fourth quarter was $46.2 million, compared with $40.2 million in the fourth quarter of 2004, an increase of 15%. Operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: for the quarter were 20.0%, compared with 21.8% in the fourth quarter of 2004. "EIG sales were up in the quarter on internal growth in our aerospace, power, and process businesses and contributions from the SPECTRO and Solartron acquisitions. EIG margins remained very strong," added Mr. Hermance. For the year, EIG sales of $808.5 million were up 21% from 2004 sales of $667.4 million. Operating income was $166.4 million for 2005, up 32% versus $126.4 million earned in 2004. Operating margins were 20.6% in 2005, up from 18.9% in 2004. Electromechanical The use of electricity to run moving parts. Disk drives, printers and motors are examples. Electromechanical systems must be designed for the eventual deterioration of moving components that wear over time. The first TVs were electromechanical systems (see video/TV history). Group (EMG EMG abbr. electromyogram Electromyography (EMG) A diagnostic test that records the electrical activity of muscles. ) For the fourth quarter of 2005, EMG's sales were $173.1 million, a 22% increase over the same period of 2004. Operating income of $26.0 million was up 19% from the $21.9 million recorded in the same period of 2004. Operating margins for the quarter were 15.0%, compared with 15.4% in the fourth quarter of 2004. "EMG fourth quarter sales were up on good internal growth in both our differentiated dif·fer·en·ti·ate v. dif·fer·en·ti·at·ed, dif·fer·en·ti·at·ing, dif·fer·en·ti·ates v.tr. 1. To constitute the distinction between: businesses and our cost-driven motor businesses and the contribution from HCC HCC Hepatocellular Carcinoma (liver cancer) HCC Hertfordshire County Council (administrative region of south eastern England UK) HCC Harford Community College (Maryland) Industries, acquired early in the fourth quarter. Operating margins were down from the fourth quarter of last year," noted Mr. Hermance. For the year, EMG's sales increased 11% to $626.0 million, compared with $564.9 million in 2004. Operating income was $100.3 million for 2005, up 6% from the $94.3 million earned in 2004. Operating margins were 16.0% in 2005, compared with 16.7% in 2004. 2006 Outlook Effective January January: see month. 1, 2006, AMETEK is adopting the provisions of FAS 123R, "Accounting for Share-Based Payments". AMETEK will be restating prior period results to reflect this change using the retrospective LAW, RETROSPECTIVE. A retrospective law is one that is to take effect, in point of time, before it was passed. 2. Whenever a law of this kind impairs the obligation of contracts, it is void. 3 Dall. 391. restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. method. On this basis, reported earnings for 2005 are expected to be reduced by $0.05 to $1.94 per diluted share to reflect the effect of stock option expense. In 2006 the effect of stock option expense on net income is also expected to be a $0.05 per diluted share reduction. "We expect 2006 to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. business model of mid-single digit A single character in a numbering system. In decimal, digits are 0 through 9. In binary, digits are 0 and 1. digit - An employee of Digital Equipment Corporation. See also VAX, VMS, PDP-10, TOPS-10, DEChead, double DECkers, field circus. core growth combined with approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 10% acquisition growth, yielding a mid-teen percentage growth in overall revenue. Acquisition growth will be driven by the full year impact of the SPECTRO, Solartron and HCC Industries acquisitions we completed in 2005," commented Mr. Hermance. "Earnings are estimated to be approximately $2.25 to $2.30 per diluted share, an increase of 16% to 19% over the 2005 level of $1.94 per diluted share (after restatement for stock option expense). The increase in estimated earnings reflects the benefits of the revenue growth, our continued focus on operational excellence and substantial investments in product development and sales and marketing to drive future growth." "Our 2006 plan contemplates higher than normal investments of approximately $9 million, or $.08 per diluted share, on new product development and global and market expansion initiatives. These investments will enhance our future internal growth rate and are heavily weighted to our differentiated businesses," said Mr. Hermance. "First quarter 2006 sales are expected to be up in the high teens on a percentage basis from last year's first quarter. We estimate our earnings to be approximately $0.52 to $0.53 per diluted share, an increase of 18% to 20% over last year's first quarter of $0.44 (after restatement for stock option expense)," concluded Mr. Hermance. Conference Call AMETEK, Inc. will Web cast its Fourth Quarter 2005 investor conference call on Wednesday Wednesday: see week. , January 25, 2006, beginning at 8:30 AM ET. The live audio Web cast will be available at www.ametek.com/investors and at www.streetevents.com. The call will also be archived at www.ametek.com/investors. Corporate Profile AMETEK is a leading global manufacturer of electronic instruments and electric motors with annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. sales of $1.6 billion. AMETEK's Corporate Growth Plan is based on Four Key Strategies: Operational Excellence, Strategic Acquisitions & Alliances, Global & Market Expansion and New Products. AMETEK's objective is double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. percentage growth in earnings per share over the business cycle and a superior return on total capital. The common stock of AMETEK is a component of the S&P MidCap mid·cap adj. 1. Or or relating to corporations whose retained earnings and outstanding shares of common stock have a value between those of small cap companies and large cap corporations. 2. 400 Index and the Russell 1000 Index The Russell 1000 Index is a stock market index of US stocks. The ticker is "RUI" or similar. See Russell Indexes page for main discussion. See also the iShares Russell 1000. External links
Forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. Information Statements in this news release that are not historical are considered "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. " and are subject to change based on various factors and uncertainties that may cause actual results to differ significantly from expectations. Those factors are contained in AMETEK's Securities and Exchange Commission filings. (Financial Information Follows)
AMETEK, Inc.
CONSOLIDATED STATEMENT OF INCOME
(In thousands, except per share amounts)
Three months ended Twelve months ended
December 31, December 31,
(Unaudited)
----------------------- -----------------------
2005 2004 2005 2004
----------- ----------- ----------- -----------
Net sales $403,781 $326,271 $1,434,457 $1,232,318
----------- ----------- ----------- -----------
Expenses:
Cost of sales,
excluding
depreciation 279,878 223,348 988,508 863,827
Selling, general and
administrative 49,413 37,540 171,577 135,494
Depreciation 9,600 10,579 34,963 36,763
----------- ----------- ----------- -----------
Total expenses 338,891 271,467 1,195,048 1,036,084
----------- ----------- ----------- -----------
Operating income 64,890 54,804 239,409 196,234
Other expenses:
Interest expense (9,951) (7,667) (32,913) (28,343)
Other, net (640) (1,416) (2,288) (2,112)
----------- ----------- ----------- -----------
Income before income
taxes 54,299 45,721 204,208 165,779
Provision for income
taxes 16,305 14,361 63,565 53,068
----------- ----------- ----------- -----------
Net income $37,994 $31,360 $140,643 $112,711
=========== =========== =========== ===========
Diluted earnings per
share $0.53 $0.45 $1.99 $1.63
=========== =========== =========== ===========
Basic earnings per
share $0.55 $0.46 $2.03 $1.66
=========== =========== =========== ===========
Average common shares
outstanding:
Diluted shares 71,080 69,899 70,711 69,254
=========== =========== =========== ===========
Basic shares 69,584 68,356 69,151 67,832
=========== =========== =========== ===========
Dividends per share $0.06 $0.06 $0.24 $0.24
=========== =========== =========== ===========
AMETEK, INC.
INFORMATION BY BUSINESS SEGMENT
(In thousands)
Three months ended Twelve months ended
December 31, December 31,
(Unaudited)
----------------------- -----------------------
2005 2004 2005 2004
----------- ----------- ----------- -----------
Net sales
-----------------------
Electronic Instruments $230,716 $184,324 $808,493 $667,418
Electromechanical 173,065 141,947 625,964 564,900
----------- ----------- ----------- -----------
Total Consolidated $403,781 $326,271 $1,434,457 $1,232,318
=========== =========== =========== ===========
Operating income
-----------------------
Electronic Instruments $46,238 $40,157 $166,423 $126,372
Electromechanical 26,021 21,872 100,347 94,250
----------- ----------- ----------- -----------
Total segments 72,259 62,029 266,770 220,622
Corporate and other (7,369) (7,225) (27,361) (24,388)
----------- ----------- ----------- -----------
Total Consolidated $64,890 $54,804 $239,409 $196,234
=========== =========== =========== ===========
AMETEK, Inc.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
December 31, December 31,
2005 2004
------------ ------------
(Unaudited)
ASSETS
------
Current assets:
Cash, cash equivalents and marketable
securities $43,788 $48,975
Receivables, net 269,395 217,329
Inventories 193,099 168,523
Other current assets 37,532 27,113
------------ ------------
Total current assets 543,814 461,940
Property, plant and equipment, net 228,450 207,542
Goodwill, net 788,745 601,007
Other intangibles, investments and other
assets 211,402 149,863
------------ ------------
Total assets $1,772,411 $1,420,352
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Short-term borrowings and current
portion of long-term debt $156,130 $49,943
Accounts payable and accruals 250,425 222,895
------------ ------------
Total current liabilities 406,555 272,838
Long-term debt 475,309 400,177
Deferred income taxes and other long-term
liabilities 84,995 87,755
Stockholders' equity 805,552 659,582
------------ ------------
Total liabilities and stockholders'
equity $1,772,411 $1,420,352
============ ============
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