EXHIBIT 99.1
Amphenol |
| News Release |
World Headquarters
P. O. Box 5030
Wallingford, CT 06492-7530
Telephone (203) 265-8900
FOR IMMEDIATE RELEASE
|
| For Further Information: |
|
| Diana G. Reardon |
|
| Senior Vice President and |
|
| Chief Financial Officer |
|
| 203/265-8630 |
|
| www.amphenol.com |
RECORD FOURTH QUARTER AND FULL YEAR 2007 RESULTS
Wallingford, Connecticut. January 17, 2008. Amphenol Corporation (NYSE-APH) reported today that fourth quarter 2007 diluted earnings per share increased 28% to $.55 compared to $.43 per share for the comparable 2006 period. (All per share amounts included herein have been adjusted to reflect the Company’s 2-for-1 stock split effective in March 2007.) Sales for the fourth quarter 2007 increased 18% to $777.3 million compared to $659.4 million for the 2006 period. Currency translation had the effect of increasing sales by approximately $22 million in the fourth quarter 2007 compared to the 2006 period.
For the full year ended December 31, 2007, diluted earnings per share was $1.94 compared to $1.47 per share before flood-related charges for the 2006 period. Including flood-related charges, diluted earnings per share for the 2006 period was $1.39. Sales for the full year ended December 31, 2007 were $2,851.0 million compared to $2,471.4 million for the 2006 period. Currency translation had the effect of increasing sales by approximately $66 million for the full year 2007 period when compared to the 2006 period.
Amphenol Chairman and CEO, Martin H. Loeffler, stated: “We are pleased to close a record fourth quarter with sales of $777 million and earnings per share of $.55. Sales grew 18% over last year. Growth was broad based reflecting the benefits of a diverse market footprint with particular strength in the mobile device, military and commercial aerospace, and wireless infrastructure markets. All geographic regions of the business performed well in the quarter. Our strong growth reflects our continued commitment to develop performance enhancing technologies for our customers in all of our markets.”
“Consistent with our strategy the Company completed two acquisitions in the fourth quarter of 2007 with aggregate annual sales of approximately $45 million. The acquisitions complement and broaden the Company’s presence in a number of market segments and include a Northwest China based manufacturer of RF interconnect products for the wireless communications market
and a Chinese manufacturer of precision interconnect products for IT and consumer product applications. In addition, during the quarter the Company completed the purchase of the remaining minority interest in one of its Korean manufacturers of handset related products. We are excited about the growth potential created by these excellent additions.”
“In addition to excellent overall top line growth, profitability and cash flow continued to be strong. Amphenol achieved excellent operating leverage in the quarter with an operating income margin of 19.7% compared to 18.9% in the fourth quarter of 2006. The combination of strong top line growth based on value added application specific products together with a continued strong focus on all elements of cost contributed significantly to our results in the quarter and provides a solid base for future performance. Furthermore, net income was approximately 13% of sales, another indication of the Company’s excellent profitability. The Company continues to be an excellent generator of cash. Cash flow from operations remained strong in the quarter at $133 million.”
“I am very proud of our organization as we continue to execute well. We have an outstanding management team, excellent technological capabilities, leading positions in diversified markets and an increasing presence with the major customers in these markets. The growth we achieved in the fourth quarter and full year is very satisfying and is a direct result of implementing our strategies. Looking forward, the general economic environment appears to have become more uncertain in recent weeks, particularly in the United States. This weakness, combined with the relatively unstable financial markets may have a dampening effect on the expansion of certain segments of the economy. Nevertheless, we believe the diversity of our customer base, leading technology, excellent product portfolio, worldwide presence and lean cost structure will serve us well in such an environment, and we are cautiously optimistic about continuing improvement in the short term and very confident about the long term outlook for continued growth and profitability. Accordingly, while market conditions are uncertain, and based on relatively stable currency exchange rates, we expect to achieve revenues and EPS in 2008 of $3,100 million to $3,175 million and $2.18 to $2.25, respectively, an increase of 9% to 11% and 12% to 16% over 2007 revenues and EPS, respectively. For the first quarter 2008 we expect revenues in the range of $740 million to $755 million and EPS in the range of $.50 and $.52, respectively. We are very excited about the future and confident in the ability of our outstanding organization to meet the challenges presented and to take advantage of the many opportunities in front of us.”
The Company will host a conference call to discuss its full year and fourth quarter results at 1:00 PM (ET) January 17, 2008. The toll free dial-in number to participate in this call is 888-395-9624; International dial-in number is 517-623-4547; Passcode: Reardon. There will be a replay available until 6:00 PM (ET) on Monday, January 21, 2008. The replay numbers are as follows: toll free dial-in number is 866-515-1614 and International dial-in number is 203-369-2024.
A live broadcast as well as a replay will also be available on the Internet 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, Europe 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, Mobile Devices and Wireless Infrastructure.
Statements in this press release which are other than historical facts are intended to be “forward-looking statements” within the meaning of the Securities Exchange Act of 1934, the Private Securities Litigation Reform Act 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 for the year ended December 31, 2006, 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
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
|
| Three months ended |
| Twelve months ended |
| ||||||||
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| December 31, |
| December 31, |
| ||||||||
|
| 2007 |
| 2006 |
| 2007 |
| 2006 |
| ||||
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Net Sales |
| $ | 777,270 |
| $ | 659,423 |
| $ | 2,851,041 |
| $ | 2,471,430 |
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|
|
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|
|
| ||||
Cost of sales (1) |
| 522,463 |
| 445,492 |
| 1,920,900 |
| 1,683,250 |
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|
|
|
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|
|
| ||||
Gross profit (1) |
| 254,807 |
| 213,931 |
| 930,141 |
| 788,180 |
| ||||
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|
|
|
|
|
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|
|
| ||||
Selling, general and administrative expense (1) |
| 101,309 |
| 89,297 |
| 377,283 |
| 342,841 |
| ||||
Casualty loss related to flood |
| — |
| — |
| — |
| 20,747 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Operating income |
| 153,498 |
| 124,634 |
| 552,858 |
| 424,592 |
| ||||
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|
|
|
|
|
|
| ||||
Interest expense |
| (9,484 | ) | (9,305 | ) | (36,876 | ) | (38,799 | ) | ||||
Other expenses, net |
| (3,532 | ) | (2,813 | ) | (14,998 | ) | (12,521 | ) | ||||
|
|
|
|
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|
|
|
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| ||||
Income before income taxes |
| 140,482 |
| 112,516 |
| 500,984 |
| 373,272 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Provision for income taxes |
| (40,489 | ) | (34,139 | ) | (147,790 | ) | (117,581 | ) | ||||
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Net income |
| $ | 99,993 |
| $ | 78,377 |
| $ | 353,194 |
| $ | 255,691 |
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Net income per common share - Basic (2) |
| $ | 0.56 |
| $ | 0.44 |
| $ | 1.98 |
| $ | 1.43 |
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| ||||
Average shares outstanding - Basic (2) |
| 178,645,544 |
| 178,883,670 |
| 178,453,249 |
| 178,927,644 |
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Net income per common share - Diluted (2) (3) |
| $ | 0.55 |
| $ | 0.43 |
| $ | 1.94 |
| $ | 1.39 |
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|
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| ||||
Average shares outstanding - Diluted (2) |
| 182,611,873 |
| 183,492,618 |
| 182,503,969 |
| 183,347,326 |
| ||||
(1) - As described in the Company’s 2006 Form 10-K, the Company changed the presentation of the Consolidated Statements of Income to remove the separate caption for depreciation and amortization and include depreciation and amortization expense in Cost of sales and Selling, general & administrative expense allowing for Gross profit to be presented.
(2) - On January 17, 2007, the Company announced a 2-for-1 stock split that was effective for stockholders of record as of March 16, 2007. The additional shares were distributed on March 30, 2007 and the share information included herein reflects the effect of such stock split.
(3) - Excluding the effect of the flood-related casualty loss, the diluted earnings per share for the three and twelve months ended December 31, 2006, was $0.43 and $1.47 respectively.
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
|
| December 31, |
| December 31, |
| ||
|
| 2007 |
| 2006 |
| ||
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|
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| ||
ASSETS |
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Current Assets: |
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| ||
Cash and cash equivalents |
| $ | 183,641 |
| $ | 74,135 |
|
Accounts receivable, less allowance |
| 510,411 |
| 383,858 |
| ||
Inventories |
| 456,882 |
| 416,499 |
| ||
Prepaid expenses and other assets |
| 72,874 |
| 60,113 |
| ||
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|
|
|
|
| ||
Total current assets |
| 1,223,808 |
| 934,605 |
| ||
|
|
|
|
|
| ||
Land and depreciable assets, less |
| 316,194 |
| 274,143 |
| ||
Deferred debt issuance cost |
| 2,227 |
| 2,947 |
| ||
Goodwill |
| 1,091,828 |
| 926,242 |
| ||
Other assets |
| 41,676 |
| 57,460 |
| ||
|
|
|
|
|
| ||
|
| $ | 2,675,733 |
| $ | 2,195,397 |
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LIABILITIES & SHAREHOLDERS’ EQUITY |
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Current Liabilities: |
|
|
|
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| ||
Accounts payable |
| $ | 295,391 |
| $ | 234,868 |
|
Accrued interest |
| 4,252 |
| 4,156 |
| ||
Accrued salaries, wages and employee benefits |
| 54,963 |
| 53,158 |
| ||
Other accrued expenses |
| 162,085 |
| 149,545 |
| ||
Dividends payable |
| 2,715 |
| 2,691 |
| ||
Current portion of long-term debt |
| 1,075 |
| 3,241 |
| ||
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Total current liabilities |
| 520,481 |
| 447,659 |
| ||
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Long-term debt |
| 721,561 |
| 677,173 |
| ||
Accrued pension and post employment |
| 101,804 |
| 138,312 |
| ||
Other liabilities |
| 66,973 |
| 29,259 |
| ||
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Shareholders’ Equity: |
|
|
|
|
| ||
Common stock |
| 180 |
| 179 |
| ||
Additional paid-in deficit |
| (43,646 | ) | (119,421 | ) | ||
Accumulated earnings |
| 1,431,635 |
| 1,142,536 |
| ||
Accumulated other comprehensive loss |
| (43,644 | ) | (81,084 | ) | ||
Treasury stock, at cost |
| (79,611 | ) | (39,216 | ) | ||
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|
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Total shareholders’ equity |
| 1,264,914 |
| 902,994 |
| ||
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|
|
|
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| ||
|
| $ | 2,675,733 |
| $ | 2,195,397 |
|
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(dollars in thousands)
|
| Three months ended |
| ||||
|
| December 31, |
| ||||
|
| 2007 |
| 2006 |
| ||
|
|
|
|
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Net income |
| $ | 353,194 |
| $ | 255,691 |
|
Adjustments for cash from operations: |
|
|
|
|
| ||
Depreciation and amortization |
| 81,628 |
| 72,592 |
| ||
Amortization of deferred debt issue costs |
| 720 |
| 532 |
| ||
Stock-based compensation |
| 12,444 |
| 9,717 |
| ||
Casualty loss related to flood, net of insurance recoveries |
| — |
| 9,307 |
| ||
Gain on disposal of fixed assets |
| (474 | ) | (60 | ) | ||
Net change in non-cash components of working capital |
| (62,400 | ) | (69,207 | ) | ||
Other long term assets and liabilities |
| 2,787 |
| 11,025 |
| ||
|
|
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|
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Cash provided by operations |
| 387,899 |
| 289,597 |
| ||
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Cash flow from investing activities: |
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Capital additions |
| (103,772 | ) | (82,421 | ) | ||
Proceeds from disposal of fixed assets |
| 5,354 |
| 5,921 |
| ||
Purchase of short term investments, net |
| (1,360 | ) | — |
| ||
Investments in acquisitions |
| (179,300 | ) | (22,473 | ) | ||
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|
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Cash flow used in investing activities |
| (279,078 | ) | (98,973 | ) | ||
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Cash flow from financing activities: |
|
|
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|
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Net change in borrowings under revolving credit facilities |
| 41,622 |
| (102,557 | ) | ||
Payment of fees and expenses related to refinancing |
| — |
| (1,144 | ) | ||
Purchase of treasury stock |
| (93,594 | ) | (72,658 | ) | ||
Proceeds from exercise of stock options |
| 34,550 |
| 21,882 |
| ||
Excess tax benefits from stock-based payment arrangements |
| 23,691 |
| 10,043 |
| ||
Dividend payments |
| (10,710 | ) | (10,724 | ) | ||
|
|
|
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Cash flow used in financing activities |
| (4,441 | ) | (155,158 | ) | ||
|
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Effect of exchange rate changes on cash |
| 5,126 |
| — |
| ||
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|
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Net change in cash and cash |
| 109,506 |
| 35,466 |
| ||
Cash and cash equivalents |
| 74,135 |
| 38,669 |
| ||
|
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 183,641 |
| $ | 74,135 |
|
|
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Cash paid during the year for: |
|
|
|
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Interest |
| 36,238 |
| 39,109 |
| ||
Income taxes paid, net of refunds |
| 100,772 |
| 77,849 |
| ||
AMPHENOL CORPORATION
SEGMENT INFORMATION
(dollars in thousands)
|
| Three months ended |
| Twelve months ended |
| ||||||||
|
| December 31, |
| December 31, |
| ||||||||
|
| 2007 |
| 2006 |
| 2007 |
| 2006 |
| ||||
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Trade Sales: |
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| ||||
Interconnect Products |
| $ | 706,423 |
| $ | 590,798 |
| $ | 2,569,281 |
| $ | 2,207,508 |
|
Cable Products |
| 70,847 |
| 68,625 |
| 281,760 |
| 263,922 |
| ||||
Consolidated |
| $ | 777,270 |
| $ | 659,423 |
| $ | 2,851,041 |
| $ | 2,471,430 |
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Operating income: |
|
|
|
|
|
|
|
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| ||||
Interconnect Products |
| $ | 155,100 |
| $ | 126,094 |
| $ | 558,646 |
| $ | 449,885 |
|
Cable Products |
| 8,540 |
| 8,271 |
| 34,864 |
| 31,007 |
| ||||
Stock-based compensation expense |
| (3,180 | ) | (2,985 | ) | (12,444 | ) | (9,717 | ) | ||||
Other operating expenses |
| (6,962 | ) | (6,746 | ) | (28,208 | ) | (25,836 | ) | ||||
Casualty loss related to flood |
| — |
| — |
| — |
| (20,747 | ) | ||||
|
|
|
|
|
|
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Consolidated |
| $ | 153,498 |
| $ | 124,634 |
| $ | 552,858 |
| $ | 424,592 |
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ROS%: |
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Interconnect Products |
| 22.0 | % | 21.3 | % | 21.7 | % | 20.4 | % | ||||
Cable Products |
| 12.1 | % | 12.1 | % | 12.4 | % | 11.7 | % | ||||
Corporate - Stock-based compensation |
| –0.4 | % | –0.5 | % | –0.4 | % | –0.4 | % | ||||
Corporate - all other |
| –0.9 | % | –1.0 | % | –1.0 | % | –1.0 | % | ||||
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Consolidated excluding flood-related charges |
| 19.7 | % | 18.9 | % | 19.4 | % | 18.0 | % | ||||
Consolidated |
| 19.7 | % | 18.9 | % | 19.4 | % | 17.2 | % | ||||
