EXHIBIT 99.1
Amphenol | News Release |
World Headquarters
358 Hall Avenue
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 |
2008 FIRST QUARTER RESULTS
REPORTED BY AMPHENOL CORPORATION
Wallingford, Connecticut. April 17, 2008. Amphenol Corporation (NYSE-APH) reported today that first quarter 2008 diluted earnings per share increased 26% to $.54 compared to $.43 per share for the comparable 2007 period. Sales for the first quarter 2008 increased 18% to $770.7 million compared to $651.0 million for the 2007 period. Currency translation had the effect of increasing sales by approximately $22 million in the first quarter 2008 compared to the 2007 period.
Amphenol Chairman and CEO, Martin H. Loeffler, stated: “We are very pleased to report a strong start to 2008 with first quarter sales of $771 million and earnings per share of $.54. 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, wireless infrastructure, military and commercial aerospace markets. All geographic regions of the business performed well in the quarter. Our strong growth reflects the results of our continued commitment to develop performance enhancing technologies for our customers in all of our markets.”
“Consistent with our strategy, during the first quarter of 2008 the Company completed the acquisition of a French manufacturer of value added interconnect and electronic packaging solutions for the aerospace market with aggregate annual sales of approximately $28 million. The acquisition broadens the Company’s technology offering in this important growth market.”
“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 19.5% compared to 18.8% in the first quarter of 2007. The combination of strong top line growth 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
successful drive for value creation. The Company continues to be an excellent generator of cash, with cash flow from operations remaining strong in the quarter at $110 million.��
“I am very proud of our organization as we continue to execute well. The growth we achieved in the first quarter is very satisfying and is a direct result of implementing our strategies. While economic uncertainties are broadly reported, and despite a continued generally moderate demand environment in certain markets, we continue to see strength in our business. We believe we can perform well in such an environment due to our increasing position with our customers in diverse markets, leading technology, worldwide presence, lean cost structure and entrepreneurial management. Accordingly, while general economic conditions are uncertain, and based on relatively stable currency exchange rates, we are raising our guidance to achieve revenues and EPS in 2008 of $3,213 million to $3,258 million and $2.26 to $2.31, respectively, an increase of 13% to 14% and 16% to 19% over 2007 revenues and EPS, respectively. For the second quarter 2008 we expect revenues in the range of $805 million to $820 million and EPS in the range of $.57 and $.59, respectively. We are 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 first quarter results at 1:00 PM (EST) April 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 (EST) on Monday, April 21, 2008. The replay numbers are as follows: toll free dial-in number is 866-443-1209 and International dial-in number is 203-369-1089.
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, 2007, 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
(Unaudited)
(dollars in thousands, except per share data)
|
| Three months ended |
| ||||
|
| March 31, |
| ||||
|
| 2008 |
| 2007 |
| ||
|
|
|
|
|
| ||
Net Sales |
| $ | 770,714 |
| $ | 651,084 |
|
|
|
|
|
|
| ||
Cost of sales |
| 519,808 |
| 440,516 |
| ||
|
|
|
|
|
| ||
Gross profit |
| 250,906 |
| 210,568 |
| ||
|
|
|
|
|
| ||
Selling, general and administrative expense |
| 100,610 |
| 87,971 |
| ||
|
|
|
|
|
| ||
Operating income |
| 150,296 |
| 122,597 |
| ||
|
|
|
|
|
| ||
Interest expense |
| (9,899 | ) | (9,042 | ) | ||
Other expenses, net |
| (2,145 | ) | (3,149 | ) | ||
|
|
|
|
|
| ||
Income before income taxes |
| 138,252 |
| 110,406 |
| ||
|
|
|
|
|
| ||
Provision for income taxes |
| (40,784 | ) | (32,702 | ) | ||
|
|
|
|
|
| ||
Net income |
| $ | 97,468 |
| $ | 77,704 |
|
|
|
|
|
|
| ||
Net income per common share - Basic |
| $ | 0.55 |
| $ | 0.44 |
|
|
|
|
|
|
| ||
Average shares outstanding - Basic |
| 176,662,616 |
| 178,132,764 |
| ||
|
|
|
|
|
| ||
Net income per common share - Diluted |
| $ | 0.54 |
| $ | 0.43 |
|
|
|
|
|
|
| ||
Average shares outstanding - Diluted |
| 180,197,969 |
| 182,543,418 |
|
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(dollars in thousands)
|
| March 31, |
| December 31, |
| ||
|
| 2008 |
| 2007 |
| ||
|
|
|
|
|
| ||
ASSETS |
|
|
|
|
| ||
|
|
|
|
|
| ||
Current Assets: |
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 180,155 |
| $ | 183,641 |
|
Accounts receivable, less allowance for doubtful accounts of $12,648 and $12,468, respectively |
| 507,979 |
| 510,411 |
| ||
Inventories |
| 499,988 |
| 456,882 |
| ||
Prepaid expenses and other assets |
| 86,441 |
| 72,874 |
| ||
|
|
|
|
|
| ||
Total current assets |
| 1,274,563 |
| 1,223,808 |
| ||
|
|
|
|
|
| ||
Land and depreciable assets, less accumulated depreciation of $513,595 and $483,296, respectively |
| 327,007 |
| 316,194 |
| ||
Goodwill |
| 1,101,453 |
| 1,091,828 |
| ||
Other assets |
| 57,946 |
| 43,903 |
| ||
|
|
|
|
|
| ||
|
| $ | 2,760,969 |
| $ | 2,675,733 |
|
|
|
|
|
|
| ||
LIABILITIES & SHAREHOLDERS’ EQUITY |
|
|
|
|
| ||
|
|
|
|
|
| ||
Current Liabilities: |
|
|
|
|
| ||
Accounts payable |
| $ | 289,748 |
| $ | 295,391 |
|
Accrued salaries, wages and employee benefits |
| 57,819 |
| 54,963 |
| ||
Accrued income taxes |
| 54,718 |
| 39,627 |
| ||
Accrued acquisition-related obligations. |
| 16,538 |
| 55,212 |
| ||
Other accrued expenses |
| 71,850 |
| 74,213 |
| ||
Current portion of long-term debt |
| 762 |
| 1,075 |
| ||
|
|
|
|
|
| ||
Total current liabilities |
| 491,435 |
| 520,481 |
| ||
|
|
|
|
|
| ||
Long-term debt |
| 852,307 |
| 721,561 |
| ||
Accrued pension and post employment benefit obligations |
| 108,858 |
| 101,804 |
| ||
Other liabilities |
| 83,481 |
| 66,973 |
| ||
|
|
|
|
|
| ||
Shareholders’ Equity: |
|
|
|
|
| ||
Common stock |
| 176 |
| 181 |
| ||
Additional paid-in deficit |
| (39,769 | ) | (43,647 | ) | ||
Accumulated earnings |
| 1,322,711 |
| 1,431,635 |
| ||
Accumulated other comprehensive loss |
| (38,722 | ) | (43,644 | ) | ||
Treasury stock, at cost |
| (19,508 | ) | (79,611 | ) | ||
|
|
|
|
|
| ||
Total shareholders’ equity |
| 1,224,888 |
| 1,264,914 |
| ||
|
|
|
|
|
| ||
|
| $ | 2,760,969 |
| $ | 2,675,733 |
|
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
(dollars in thousands)
|
| Three months ended |
| ||||
|
| March 31, |
| ||||
|
| 2008 |
| 2007 |
| ||
|
|
|
|
|
| ||
Net income |
| $ | 97,468 |
| $ | 77,704 |
|
Adjustments for cash from operations: |
|
|
|
|
| ||
Depreciation and amortization |
| 22,771 |
| 19,064 |
| ||
Stock-based compensation. |
| 3,202 |
| 2,990 |
| ||
Net change in non-cash components of working capital |
| (18,888 | ) | (45,790 | ) | ||
Other long term assets and liabilities |
| 5,063 |
| 8,495 |
| ||
|
|
|
|
|
| ||
Cash provided by operations |
| 109,616 |
| 62,463 |
| ||
|
|
|
|
|
| ||
Cash flow from investing activities: |
|
|
|
|
| ||
Capital additions |
| (19,914 | ) | (22,628 | ) | ||
Purchase of short term investments, net |
| (4,162 | ) | (2,007 | ) | ||
Investments in acquisitions |
| (70,443 | ) | (22,342 | ) | ||
|
|
|
|
|
| ||
Cash flow used in investing activities |
| (94,519 | ) | (46,977 | ) | ||
|
|
|
|
|
| ||
Cash flow from financing activities: |
|
|
|
|
| ||
Net change in borrowings under revolving credit facilities |
| 127,106 |
| 7,518 |
| ||
Purchase of treasury stock |
| (143,693 | ) | (13,983 | ) | ||
Proceeds from exercise of stock options |
| 367 |
| 2,975 |
| ||
Excess tax benefits from stock-based payment arrangements |
| 270 |
| 1,642 |
| ||
Dividend payments |
| (2,682 | ) | (2,684 | ) | ||
|
|
|
|
|
| ||
Cash flow used in financing activities |
| (18,632 | ) | (4,532 | ) | ||
|
|
|
|
|
| ||
Effect of exchange rate changes on cash and cash equivalents |
| 49 |
| — |
| ||
|
|
|
|
|
| ||
Net change in cash and cash equivalents |
| (3,486 | ) | 10,954 |
| ||
|
|
|
|
|
| ||
Cash and cash equivalents balance, beginning of period |
| 183,641 |
| 74,135 |
| ||
|
|
|
|
|
| ||
|
|
|
|
|
| ||
Cash and cash equivalents balance, end of period |
| $ | 180,155 |
| $ | 85,089 |
|
|
|
|
|
|
| ||
Cash paid during the period for: |
|
|
|
|
| ||
Interest |
| $ | 10,006 |
| $ | 8,907 |
|
Income taxes paid, net of refunds |
| 21,610 |
| 26,032 |
|
AMPHENOL CORPORATION
SEGMENT INFORMATION
(Unaudited)
(dollars in thousands)
|
| Three months ended |
| ||||
|
| March 31, |
| ||||
|
| 2008 |
| 2007 |
| ||
|
|
|
|
|
| ||
Trade Sales: |
|
|
|
|
| ||
Interconnect Products |
| $ | 700,625 |
| $ | 585,265 |
|
Cable Products |
| 70,089 |
| 65,819 |
| ||
Consolidated |
| $ | 770,714 |
| $ | 651,084 |
|
|
|
|
|
|
| ||
Operating income: |
|
|
|
|
| ||
Interconnect Products |
| $ | 153,536 |
| $ | 124,881 |
|
Cable Products |
| 8,270 |
| 7,921 |
| ||
Stock-based compensation expense |
| (3,202 | ) | (2,990 | ) | ||
Other operating expenses |
| (8,308 | ) | (7,215 | ) | ||
Consolidated |
| $ | 150,296 |
| $ | 122,597 |
|
|
|
|
|
|
| ||
ROS%: |
|
|
|
|
| ||
Interconnect Products |
| 21.9 | % | 21.3 | % | ||
Cable Products |
| 11.8 | % | 12.0 | % | ||
Corporate - Stock-based compensation |
| -0.4 | % | -0.5 | % | ||
Corporate - all other |
| -1.1 | % | -1.1 | % | ||
|
|
|
|
|
| ||
Consolidated |
| 19.5 | % | 18.8 | % |