[October 19, 2016] |
|
Third Quarter 2016 Record Results and Increase in Dividend Reported by Amphenol Corporation
Amphenol Corporation (NYSE:APH) reported today third quarter 2016 GAAP
Diluted earnings per share (EPS) of $0.71 compared to $0.65 for the
comparable 2015 period. GAAP Diluted EPS for the third quarter 2016
included a charge for acquisition-related transaction costs of $6
million ($0.02 per share). Excluding the effect of this item, third
quarter 2016 Adjusted Diluted EPS1 was $0.73. Sales for the
third quarter of 2016 were a record $1.636 billion compared to $1.460
billion for the comparable 2015 period. Currency translation had the
effect of decreasing sales by approximately $12 million in the third
quarter of 2016 compared to the 2015 period.
For the nine months ended September 30, 2016, GAAP Diluted EPS was
$1.86, compared to $1.78 for the comparable 2015 period. The 2016 period
included the $6 million of acquisition-related transaction costs noted
above, as well as a charge for acquisition-related costs of $30 million
($0.09 per share) relating to the acquisition of FCI Asia Pte Ltd (FCI)
on January 8, 2016. The FCI acquisition-related costs included external
transaction costs, amortization related to the value associated with
acquired backlog and restructuring charges. GAAP diluted earnings per
share for the comparable 2015 period included a charge for
acquisition-related transaction costs of $6 million ($0.02 per share).
Excluding the effect of these items, Adjusted Diluted EPS for the nine
months ended September 30, 2016 and 2015 was $1.97 and $1.80,
respectively. Sales for the nine months ended September 30, 2016 were
$4.635 billion compared to $4.138 billion for the comparable 2015
period. Currency translation had the effect of decreasing sales by
approximately $40 million for the first nine months of 2016 compared to
the comparable 2015 period.
The Company's Board of Directors has also approved an increase in the
Company's quarterly dividend from $0.14 to $0.16 per share to be paid on
or about January 5, 2017 to holders of record of the Company's Class A
Common stock as of December 13, 2016.
Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated,
"We are very pleased to report results above the high end of our
guidance for the third quarter 2016, with record sales and Adjusted
Diluted EPS of $1.636 billion and $0.73, respectively. We achieved these
results despite ongoing uncertainties in the global economy. Compared to
the third quarter 2015, sales increased by 12%, driven by organic growth
in all markets except mobile devices together with contributions from
the Company's successful acquisition program. Our unique entrepreneurial
culture continues to enable strong operating results, as demonstrated by
the Company's Adjusted Operating Margins reaching a record 20.3% in the
third quarter 2016. This excellent profitability is a direct result of
our dynamic management team's ability to drive disciplined operational
execution together with an unrelenting focus on all elements of cost.
Operating cash flow in the quarter was $291 million, a clear
confirmation of the quality of the Company's earnings. I am very proud
of our organization as we continue to execute extremely well in an
uncertain market environment.
"The Company continues to expand its growth opportunities through a deep
commitment to developing enabling technologies for customers in all
markets, an ongoing strategy of market and geographic diversification,
as well as an active and successful acquisition program. As part of that
program, at the end of the third quarter, the Company acquired All
Systems Broadband. All Systems Broadband, based in California, is a
leading supplier of cable assemblies and value added fiber optic
products for the broadband market with annual sales of approximately $40
million. In addition, at the beginning of the fourth quarter, the
Company acquired SGX Sensortech (SGX). SGX, based in Switzerland,
designs and manufactures air quality sensors used in a variety of
automotive and industrial applications, and generates annual sales of
approximately $15 million. These acquisitions strengthen the Company's
global capabilities and enhance our product offering in these important
end markets.
"In addition to our successful acquisition program, the Company
continues to deploy its financial strength in a variety of ways to
increase shareholder value. This includes the purchase, during the
quarter, of 2.0 million shares of the Company's stock pursuant to our
stock repurchase plan, bringing total repurchases for the plan to over
8.5 million shares. In addition, the Board of Directors has approved a
14% increase in our quarterly dividend, from $0.14 to $0.16 per share.
"The current global economic environment remains volatile and uncertain.
Considering this environment and based on current currency exchange
rates, we expect fourth quarter 2016 sales in the range of $1.585
billion to $1.625 billion and GAAP Diluted EPS in the range of $0.71 to
$0.73. For the full year 2016, we now expect to achieve sales in the
range of $6.220 billion to $6.260 billion, an increase over 2015 of 12%
and GAAP Diluted EPS of $2.57 to $2.59, an increase of 7% over 2015. We
expect Adjusted Diluted EPS of $2.68 to $2.70 for the full year 2016, an
increase of 10% to 11% over 2015. This compares to our prior full year
2016 guidance of $6.120 billion to $6.200 billion in sales, GAAP Diluted
EPS of $2.51 to $2.55 and Adjusted Diluted EPS of $2.60 to $2.64.
"Notwithstanding the current uncertain environment, we remain extremely
excited about the future. The electronics revolution continues to create
a significant, long-term growth opportunity for Amphenol, with new
applications and higher performance requirements driving increased
demand for our high technology products across all of our end markets.
Our ongoing actions to strengthen our competitive advantages and build
sustained financial strength, as well as our initiatives to broaden and
diversify our high technology product offering both organically and
through our successful acquisition program, have created a solid base
for future performance. I am confident in the ability of our
outstanding management team to dynamically adjust to the constantly
changing market environment, to continue to generate strong
profitability and to further capitalize on the many opportunities to
expand our market position."
The Company will host a conference call to discuss its third quarter
results at 1:00 PM (EDT) Wednesday, October 19, 2016. The toll free
dial-in number to participate in this call is 888-455-0949;
International dial-in number is 773-799-3973; Passcode: LAMPO. There
will be a replay available until 10:59 PM (EST) on Friday, November 18,
2016. The replay numbers are toll free 888-470-7050; International toll
number is 203-369-1484; Passcode: 7183.
A live broadcast as well as a replay will also be available on the
Internet at http://www.amphenol.com/investors/webcasts.php.
Amphenol Corporation is one of the world's largest designers,
manufacturers and marketers of electrical, electronic and fiber optic
connectors, interconnect systems, antennas, sensors and sensor-based
products and coaxial and high-speed specialty cable. Amphenol designs,
manufactures and assembles its products at facilities in the Americas,
Europe, Asia, Australia and Africa and sells its products through its
own global sales force, independent representatives and a global network
of electronics distributors. Amphenol has a diversified presence as a
leader in high growth areas of the interconnect market including:
Automotive, Broadband Communications, Commercial Aerospace, Industrial,
Information Technology and Data Communications, Military, Mobile Devices
and Mobile Networks.
Forward-Looking Statements
This press release contains certain statements that are intended to be
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, and Section 21E of the Securities Exchange Act
of 1934, as amended. All statements, other than statements of historical
facts, included in this press release that address activities, events or
developments that the Company expects or anticipates will or may occur
in the future, including, but not limited to the Company's expectations
regarding sales, GAAP Diluted EPS and Adjusted Diluted EPS, are
forward-looking statements. These statements are based on certain
assumptions and analyses made by the Company in light of its experience
and its perception of historical trends, current conditions and expected
future developments, as well as other factors it believes are
appropriate under the circumstances. Forward-looking statements may be
identified through the use of terms such as "expect", "may", "will",
"should", "intend", "plan", "guidance" and/or other similar expressions
generally intended to identify forward-looking statements. Such
forward-looking statements are not guarantees of future performance and
involve risks and uncertainties, and actual results may differ
materially from those projected in the forward-looking statements.
Factors that might cause or contribute to a material difference include,
but are not limited to, governmental, political, economic, end market,
competitive, technological, acquisition-related, cybersecurity and
foreign currency-related risk factors that may affect the Company's
operations, products, markets, customers and prices. Details regarding
various significant risks and uncertainties that may affect our
operating and financial performance can be found in Part I, Item 1A of
the Company's Annual Report on Form 10-K for the year ended December 31,
2015, and other Company filings with the Securities and Exchange
Commission including Quarterly Reports on Form 10-Q and Current Reports
on Form 8-K. Forward-looking statements set forth in this press release
speak only as of the date hereof and the Company does not undertake any
obligation to revise or update these statements whether as a result of
new information, future events or otherwise, except as required by law.
Non-GAAP Financial Measures
The financial statements included within this press release are prepared
in accordance with accounting principles generally accepted in the
United States of America ("GAAP"). This press release also contains
certain non-GAAP financial information, including Adjusted Operating
Income, Adjusted Operating Margin, Adjusted Net Income attributable to
Amphenol and Adjusted Diluted EPS ("non-GAAP financial measures"), which
are intended to supplement the reported GAAP results. Management
utilizes these non-GAAP financial measures as part of its internal
reviews for purposes of monitoring, evaluating and forecasting the
Company's financial performance, communicating operating results to the
Company's Board of Directors and assessing related employee compensation
measures. Management believes that such non-GAAP financial measures may
be helpful to investors in assessing the Company's overall financial
performance, trends and period-over-period comparative results. Non-GAAP
financial measures exclude income and expenses that are not directly
related to the Company's operating performance during the periods
presented. Items excluded from the non-GAAP financial measures in any
period may consist of, without limitation, acquisition-related expenses,
certain discrete tax items and refinancing-related costs that may arise
during such periods. Reconciliations of non-GAAP financial measures to
the most directly comparable GAAP financial measures are included at the
end of this press release. However, such non-GAAP financial measures
should not be considered in isolation, as a substitute for or superior
to the related GAAP financial measures. In addition, these non-GAAP
financial measures are not necessarily the same or comparable to similar
measures presented by other companies, as such measures may be
calculated differently or may exclude different items. The non-GAAP
financial measures are defined within the "Supplemental Financial
Information" table at the end of this press release and should be read
in conjunction with the Company's financial statements presented in
accordance with GAAP.
_________________________
|
1 All non-GAAP financial measures referenced are
defined within this press release.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMPHENOL CORPORATION
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
|
(Unaudited)
|
|
(dollars and shares in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
1,635.9
|
|
|
$
|
1,459.6
|
|
|
|
$
|
4,635.3
|
|
|
$
|
4,138.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
1,098.6
|
|
|
|
995.6
|
|
|
|
|
3,141.3
|
|
|
|
2,817.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
537.3
|
|
|
|
464.0
|
|
|
|
|
1,494.0
|
|
|
|
1,321.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related expenses
|
|
|
|
6.3
|
|
|
|
-
|
|
|
|
|
36.6
|
|
|
|
5.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expense
|
|
|
|
204.7
|
|
|
|
169.2
|
|
|
|
|
591.3
|
|
|
|
499.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
326.3
|
|
|
|
294.8
|
|
|
|
|
866.1
|
|
|
|
815.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(18.1
|
)
|
|
|
(17.0
|
)
|
|
|
|
(54.2
|
)
|
|
|
(51.1
|
)
|
|
Other income, net
|
|
|
|
2.3
|
|
|
|
4.2
|
|
|
|
|
5.0
|
|
|
|
12.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
310.5
|
|
|
|
282.0
|
|
|
|
|
816.9
|
|
|
|
777.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
|
(83.4
|
)
|
|
|
(74.7
|
)
|
|
|
|
(222.6
|
)
|
|
|
(207.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
227.1
|
|
|
|
207.3
|
|
|
|
|
594.3
|
|
|
|
569.7
|
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
|
(2.8
|
)
|
|
|
(2.8
|
)
|
|
|
|
(6.8
|
)
|
|
|
(6.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Amphenol Corporation
|
|
|
$
|
224.3
|
|
|
$
|
204.5
|
|
|
|
$
|
587.5
|
|
|
$
|
563.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share - Basic
|
|
|
$
|
0.73
|
|
|
$
|
0.66
|
|
|
|
$
|
1.91
|
|
|
$
|
1.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - Basic
|
|
|
|
308.9
|
|
|
|
308.9
|
|
|
|
|
308.3
|
|
|
|
309.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share - Diluted (1) (2)
|
|
|
$
|
0.71
|
|
|
$
|
0.65
|
|
|
|
$
|
1.86
|
|
|
$
|
1.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - Diluted
|
|
|
|
315.7
|
|
|
|
315.9
|
|
|
|
|
315.1
|
|
|
|
316.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share
|
|
|
$
|
0.14
|
|
|
$
|
0.14
|
|
|
|
$
|
0.42
|
|
|
$
|
0.39
|
|
|
|
|
|
|
Note 1
|
|
Earnings per share for the three and nine months ended September 30,
2016 included acquisition-related expenses of $6.3 million ($5.8
million net of tax) or $0.02 per share and $36.6 million ($33.1
million net of tax) or $0.11 per share, respectively. Excluding this
effect, Adjusted Diluted EPS, a non-GAAP financial measure which is
defined and reconciled to its most comparable GAAP financial measure
in this press release, was $0.73 and $1.97 for the three and nine
months ended September 30, 2016, respectively.
|
|
|
|
|
|
Note 2
|
|
Earnings per share in the nine months ended September 30, 2015
included acquisition-related expenses of $5.7 million ($5.7 million
net of tax) or $0.02 per share. Excluding this effect, Adjusted
Diluted EPS, a non-GAAP financial measure which is defined and
reconciled to its most comparable GAAP financial measure in this
press release, was $1.80 for the nine months ended September 30,
2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMPHENOL CORPORATION
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
853.6
|
|
|
|
$
|
1,737.2
|
|
|
Short-term investments
|
|
|
|
163.3
|
|
|
|
|
23.2
|
|
|
Total cash, cash equivalents and short-term investments
|
|
|
|
1,016.9
|
|
|
|
|
1,760.4
|
|
|
Accounts receivable, less allowance for doubtful accounts
|
|
|
|
|
|
|
|
of $24.6 and $25.6, respectively
|
|
|
|
1,319.4
|
|
|
|
|
1,104.6
|
|
|
Inventories
|
|
|
|
926.6
|
|
|
|
|
851.8
|
|
|
Other current assets
|
|
|
|
142.3
|
|
|
|
|
133.2
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
|
3,405.2
|
|
|
|
|
3,850.0
|
|
|
|
|
|
|
|
|
|
|
Land and depreciable assets, less accumulated depreciation
|
|
|
|
|
|
|
|
of $1,003.7 and $900.9, respectively
|
|
|
|
717.6
|
|
|
|
|
609.5
|
|
|
Goodwill
|
|
|
|
3,707.8
|
|
|
|
|
2,692.9
|
|
|
Intangibles and other long-term assets
|
|
|
|
539.2
|
|
|
|
|
306.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,369.8
|
|
|
|
$
|
7,458.4
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES & EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
650.7
|
|
|
|
$
|
587.8
|
|
|
Accrued salaries, wages and employee benefits
|
|
|
|
132.1
|
|
|
|
|
105.6
|
|
|
Accrued income taxes
|
|
|
|
79.5
|
|
|
|
|
81.8
|
|
|
Other accrued expenses
|
|
|
|
233.4
|
|
|
|
|
189.7
|
|
|
Accrued dividends
|
|
|
|
43.3
|
|
|
|
|
43.2
|
|
|
Current portion of long-term debt
|
|
|
|
374.5
|
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
1,513.5
|
|
|
|
|
1,008.4
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, less current portion
|
|
|
|
2,598.0
|
|
|
|
|
2,813.2
|
|
|
Accrued pension benefit obligations and other long-term liabilities
|
|
|
|
503.6
|
|
|
|
|
358.4
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
0.3
|
|
|
|
|
0.3
|
|
|
Additional paid-in capital
|
|
|
|
972.2
|
|
|
|
|
783.3
|
|
|
Retained earnings
|
|
|
|
3,032.8
|
|
|
|
|
2,804.4
|
|
|
Accumulated other comprehensive loss
|
|
|
|
(297.3
|
)
|
|
|
|
(349.5
|
)
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity attributable to Amphenol Corporation
|
|
|
|
3,708.0
|
|
|
|
|
3,238.5
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling interests
|
|
|
|
46.7
|
|
|
|
|
39.9
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
3,754.7
|
|
|
|
|
3,278.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,369.8
|
|
|
|
$
|
7,458.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMPHENOL CORPORATION
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
|
|
(Unaudited)
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
|
|
|
|
|
September 30,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
Cash from operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
594.3
|
|
|
|
$
|
569.7
|
|
|
Adjustments to reconcile net income to cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
163.6
|
|
|
|
|
128.1
|
|
|
Stock-based compensation expense
|
|
|
|
35.5
|
|
|
|
|
32.1
|
|
|
Excess tax benefits from stock-based compensation payment
arrangements
|
|
|
|
(33.2
|
)
|
|
|
|
(9.4
|
)
|
|
Net change in components of working capital
|
|
|
|
(27.4
|
)
|
|
|
|
(7.0
|
)
|
|
Net change in other long-term assets and liabilities
|
|
|
|
(4.1
|
)
|
|
|
|
(5.3
|
)
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
728.7
|
|
|
|
|
708.2
|
|
|
|
|
|
|
|
|
|
|
Cash from investing activities:
|
|
|
|
|
|
|
|
Purchases of land and depreciable assets
|
|
|
|
(136.3
|
)
|
|
|
|
(130.8
|
)
|
|
Proceeds from disposals of land and depreciable assets
|
|
|
|
4.0
|
|
|
|
|
6.7
|
|
|
Purchases of short-term investments
|
|
|
|
(173.3
|
)
|
|
|
|
(121.9
|
)
|
|
Sales and maturities of short-term investments
|
|
|
|
33.3
|
|
|
|
|
459.5
|
|
|
Acquisitions, net of cash acquired
|
|
|
|
(1,272.6
|
)
|
|
|
|
(199.8
|
)
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by investing activities
|
|
|
|
(1,544.9
|
)
|
|
|
|
13.7
|
|
|
|
|
|
|
|
|
|
|
Cash from financing activities:
|
|
|
|
|
|
|
|
Long-term borrowings under credit facilities
|
|
|
|
-
|
|
|
|
|
125.0
|
|
|
Repayments of long-term debt
|
|
|
|
-
|
|
|
|
|
(211.8
|
)
|
|
Borrowings under commercial paper program, net
|
|
|
|
145.8
|
|
|
|
|
266.9
|
|
|
Payment of costs related to debt financing
|
|
|
|
(3.0
|
)
|
|
|
|
-
|
|
|
Proceeds from exercise of stock options
|
|
|
|
120.8
|
|
|
|
|
45.8
|
|
|
Excess tax benefits from stock-based compensation payment
arrangements
|
|
|
|
33.2
|
|
|
|
|
9.4
|
|
|
Distributions to shareholders of noncontrolling interests
|
|
|
|
(5.8
|
)
|
|
|
|
(6.1
|
)
|
|
Purchase and retirement of treasury stock
|
|
|
|
(229.6
|
)
|
|
|
|
(195.6
|
)
|
|
Dividend payments
|
|
|
|
(129.4
|
)
|
|
|
|
(116.1
|
)
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
|
(68.0
|
)
|
|
|
|
(82.5
|
)
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
0.6
|
|
|
|
|
(32.7
|
)
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash
|
|
|
|
|
|
|
|
equivalents
|
|
|
|
(883.6
|
)
|
|
|
|
606.7
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
balance, beginning of period
|
|
|
|
1,737.2
|
|
|
|
|
968.9
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
balance, end of period
|
|
|
$
|
853.6
|
|
|
|
$
|
1,575.6
|
|
|
|
|
|
|
|
|
|
|
Cash paid for:
|
|
|
|
|
|
|
|
Interest
|
|
|
$
|
65.2
|
|
|
|
$
|
62.1
|
|
|
Income taxes
|
|
|
|
192.4
|
|
|
|
|
182.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMPHENOL CORPORATION
|
|
|
|
SEGMENT INFORMATION
|
|
|
|
(Unaudited)
|
|
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
Nine months ended
|
|
|
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interconnect Products and Assemblies
|
|
|
|
$
|
1,543.2
|
|
|
$
|
1,378.2
|
|
|
|
$
|
4,366.9
|
|
|
$
|
3,889.5
|
|
|
|
|
Cable Products and Solutions
|
|
|
|
|
92.7
|
|
|
|
81.4
|
|
|
|
|
268.4
|
|
|
|
248.7
|
|
|
|
|
Consolidated Net sales
|
|
|
|
$
|
1,635.9
|
|
|
$
|
1,459.6
|
|
|
|
$
|
4,635.3
|
|
|
$
|
4,138.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interconnect Products and Assemblies
|
|
|
|
$
|
342.0
|
|
|
$
|
307.4
|
|
|
|
$
|
932.2
|
|
|
$
|
856.3
|
|
|
|
|
Cable Products and Solutions
|
|
|
|
|
13.8
|
|
|
|
10.2
|
|
|
|
|
38.6
|
|
|
|
30.2
|
|
|
|
|
Stock-based compensation expense
|
|
|
|
|
(12.2
|
)
|
|
|
(11.8
|
)
|
|
|
|
(35.5
|
)
|
|
|
(32.1
|
)
|
|
|
|
Other operating expenses
|
|
|
|
|
(11.0
|
)
|
|
|
(11.0
|
)
|
|
|
|
(32.6
|
)
|
|
|
(33.0
|
)
|
|
|
|
Acquisition-related expenses
|
|
|
|
|
(6.3
|
)
|
|
|
-
|
|
|
|
|
(36.6
|
)
|
|
|
(5.7
|
)
|
|
|
|
Consolidated Operating income
|
|
|
|
$
|
326.3
|
|
|
$
|
294.8
|
|
|
|
$
|
866.1
|
|
|
$
|
815.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin (%):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interconnect Products and Assemblies
|
|
|
|
|
22.2
|
%
|
|
|
22.3
|
%
|
|
|
|
21.3
|
%
|
|
|
22.0
|
%
|
|
|
|
Cable Products and Solutions
|
|
|
|
|
14.9
|
%
|
|
|
12.5
|
%
|
|
|
|
14.4
|
%
|
|
|
12.1
|
%
|
|
|
|
Stock-based compensation expense
|
|
|
|
|
-0.7
|
%
|
|
|
-0.8
|
%
|
|
|
|
-0.8
|
%
|
|
|
-0.8
|
%
|
|
|
|
Other operating expenses
|
|
|
|
|
-0.7
|
%
|
|
|
-0.8
|
%
|
|
|
|
-0.7
|
%
|
|
|
-0.8
|
%
|
|
|
|
Acquisition-related expenses
|
|
|
|
|
-0.4
|
%
|
|
|
0.0
|
%
|
|
|
|
-0.8
|
%
|
|
|
-0.1
|
%
|
|
|
|
Consolidated Operating margin (%)
|
|
|
|
|
19.9
|
%
|
|
|
20.2
|
%
|
|
|
|
18.7
|
%
|
|
|
19.7
|
%
|
|
|
|
|
|
|
|
AMPHENOL CORPORATION
|
|
SUPPLEMENTAL FINANCIAL INFORMATION
|
|
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
|
(Unaudited)
|
|
(dollars in millions, except per share data)
|
|
|
|
|
Management utilizes the non-GAAP financial measures indicated below
as part of its internal reviews for purposes of monitoring,
evaluating and forecasting the Company's financial performance,
communicating operating results to the Company's Board of Directors
and assessing related employee compensation measures. Management
believes that such non-GAAP financial measures may be helpful to
investors in assessing the Company's overall financial performance,
trends and period-over-period comparative results. Non-GAAP
financial measures exclude income and expenses that are not directly
related to the Company's operating performance during the periods
presented. Items excluded from the non-GAAP financial measures in
any period may consist of, without limitation, acquisition-related
expenses, certain discrete tax items and refinancing-related costs
that may arise during such periods. The following non-GAAP financial
information is included for supplemental purposes only and should
not be considered in isolation, as a substitute for or superior to
the related GAAP financial measures.
|
|
|
|
|
The following are reconciliations of non-GAAP financial measures to
the most directly comparable GAAP financial measures, specifically
Operating Income, Operating Margin, Net Income attributable to
Amphenol Corporation, and Diluted earnings per share (EPS) for the
three and nine months ended September 30, 2016 and 2015:
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
|
September 30, 2016
|
|
|
September 30, 2015
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
|
|
|
|
Operating
|
|
Operating
|
|
attributable
|
|
Diluted
|
|
|
Operating
|
|
Operating
|
|
attributable
|
|
Diluted
|
|
|
|
|
Income
|
|
Margin
|
|
to Amphenol
|
|
EPS
|
|
|
Income
|
|
Margin
|
|
to Amphenol
|
|
EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported (GAAP)
|
|
|
$
|
326.3
|
|
19.9
|
%
|
|
$
|
224.3
|
|
$
|
0.71
|
|
|
$
|
294.8
|
|
20.2
|
%
|
|
$
|
204.5
|
|
$
|
0.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related expenses
|
|
|
|
6.3
|
|
0.4
|
%
|
|
|
5.8
|
|
|
0.02
|
|
|
|
-
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted (non-GAAP) (1)
|
|
|
$
|
332.6
|
|
20.3
|
%
|
|
$
|
230.1
|
|
$
|
0.73
|
|
|
$
|
294.8
|
|
20.2
|
%
|
|
$
|
204.5
|
|
$
|
0.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
|
|
|
|
|
September 30, 2016
|
|
|
September 30, 2015
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
|
|
|
|
Operating
|
|
Operating
|
|
attributable
|
|
Diluted
|
|
|
Operating
|
|
Operating
|
|
attributable
|
|
Diluted
|
|
|
|
|
Income
|
|
Margin
|
|
to Amphenol
|
|
EPS
|
|
|
Income
|
|
Margin
|
|
to Amphenol
|
|
EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported (GAAP)
|
|
|
$
|
866.1
|
|
18.7
|
%
|
|
$
|
587.5
|
|
$
|
1.86
|
|
|
$
|
815.7
|
|
19.7
|
%
|
|
$
|
563.3
|
|
$
|
1.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related expenses
|
|
|
|
36.6
|
|
0.8
|
%
|
|
|
33.1
|
|
|
0.11
|
|
|
|
5.7
|
|
0.1
|
%
|
|
|
5.7
|
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted (non-GAAP) (1)
|
|
|
$
|
902.7
|
|
19.5
|
%
|
|
$
|
620.6
|
|
$
|
1.97
|
|
|
$
|
821.4
|
|
19.8
|
%
|
|
$
|
569.0
|
|
$
|
1.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted Operating Income, Adjusted Operating Margin,
Adjusted Net Income attributable to Amphenol, and Adjusted Diluted
EPS are non-GAAP financial measures and are defined as follows.
|
|
Adjusted Operating Income is defined as Operating Income, as
reported in the Condensed Consolidated Statements of Income,
excluding income and expenses that are not directly related to the
Company's operating performance during the periods presented.
|
|
Adjusted Operating Margin is defined as Adjusted Operating
Income (as defined above) expressed as a percentage of Net sales (as
reported in the Condensed Consolidated Statements of Income).
|
|
Adjusted Net Income attributable to Amphenol is defined as
Net Income attributable to Amphenol Corporation, as reported in the
Condensed Consolidated Statements of Income, excluding income and
expenses and its related tax effects, that are not directly related
to the Company's operating performance during the periods presented.
|
|
Adjusted Diluted EPS is defined as diluted earnings per share
(as reported or as forecasted in accordance with GAAP), excluding
income and expenses and its related tax effects, that are not
directly related to the Company's operating performance during the
periods presented.
|
|
|
|
|
AMPHENOL CORPORATION
|
|
SUPPLEMENTAL FINANCIAL INFORMATION
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - GUIDANCE
|
|
(Unaudited)
|
|
|
|
|
Management utilizes the non-GAAP financial measures indicated below
as part of its internal reviews for purposes of monitoring,
evaluating and forecasting the Company's financial performance,
communicating operating results to the Company's Board of Directors
and assessing related employee compensation measures. Management
believes that such non-GAAP financial measures may be helpful to
investors in assessing the Company's overall financial performance,
trends and period-over-period comparative results. Non-GAAP
financial measures exclude income and expenses that are not directly
related to the Company's operating performance during the periods
presented. Items excluded from the non-GAAP financial measures in
any period may consist of, without limitation, acquisition-related
expenses, certain discrete tax items and refinancing-related costs
that may arise during such periods. The following non-GAAP financial
information is included for supplemental purposes only and should
not be considered in isolation, as a substitute for or superior to
the related GAAP financial measures.
|
|
|
|
|
The following are reconciliations of current guidance for GAAP
Diluted earnings per share (EPS) to non-GAAP Adjusted Diluted EPS
for both the fourth quarter 2016 and the full year 2016:
|
|
|
|
|
|
|
|
|
|
|
GUIDANCE (1)
|
|
|
|
|
|
|
|
|
FOURTH QUARTER 2016
|
|
|
|
|
FULL YEAR 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS (GAAP)
|
|
|
|
|
|
|
$0.71 - $0.73
|
|
|
|
|
$2.57 - $2.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related expenses, net of tax
|
|
|
|
|
|
|
-
|
|
|
|
|
$0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted EPS (non-GAAP)
|
|
|
|
|
|
|
$0.71 - $0.73
|
|
|
|
|
$2.68 - $2.70
|
|
|
(1) Forward-looking Adjusted Diluted EPS included in our
guidance excludes certain income and expenses, described above, that
are not directly related to the Company's operating performance. The
Company includes such items in its guidance only to the extent that
such items have either: 1) already been reflected in periods
reported and are therefore included in the forward-looking full-year
period, or 2) the Company reasonably expects to record them in the
forward-looking periods presented and such amounts are estimable. As
the Company has not identified any estimable items in the
forward-looking periods presented, the reconciling item shown above
for the 2016 guidance only reflects the impact of the
acquisition-related expenses, net of tax, that were incurred during
the nine months ended September 30, 2016.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161019005292/en/
[ Back To TMCnet.com's Homepage ]
|