EX-99.1 2 d339776dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

CONTACT:

Steve Martens, VP Investor Relations

Molex Incorporated

630-527-4344

For Immediate Release

MOLEX REPORTS FISCAL 2012 THIRD QUARTER RESULTS

AND ANNOUNCES DIVIDEND INCREASE

Lisle, Ill., USA – April 25, 2012 — Molex Incorporated (NASDAQ: MOLX and MOLXA), a global electronic components company, today reported results for its third quarter ended March 31, 2012.

 

     Three Months Ended  
USD millions, except per share data    Mar. 31,
2012
     Dec. 31,
2011
     Mar. 31,
2011
 

Net revenue

   $ 837.1       $ 857.6       $ 874.5   

Net income

     64.9         64.0         68.1   

Earnings per share

     0.36         0.36         0.39   

Revenue for the March 2012 quarter was $837.1 million, down 2.4% from the December 2011 quarter and 4.3% from the March 2011 quarter. Revenue in local currencies declined 2.0% from the December 2011 quarter and 4.8% from the March 2011 quarter. Net income for the March 2012 quarter was $64.9 million or $0.36 per share, compared with net income of $64.0 million or $0.36 per share for the December 2011 quarter and net income of $68.1 million or $0.39 per share for the March 2011 quarter. Net income for the March 2012 quarter includes a net tax benefit of $3.0 million ($0.02 per share) resulting from the release of net operating loss valuation allowances no longer required, partially offset by adjustments to deferred tax assets due to changes in applicable tax rates in certain jurisdictions.

“Business conditions stabilized during the March quarter, with order rates improving each month and the book-to-bill ratio increasing to 1.04. Costs remain under control and are being rigorously monitored,” commented Martin P. Slark, Molex’s Chief Executive Officer. “The long term themes driving the business—mobility, IT spending and growth in emerging markets - continue to develop, affording Molex significant opportunities for long-term growth. In addition, cash flow has been very strong, exceeding net income for each of the last three quarters. Accordingly, our Board of Directors has approved an increase to the quarterly dividend by 10% to $0.22 per share.”

 

1


Other financial highlights for the quarter ended March 31, 2012

 

   

Gross profit margin was 30.5%, compared with 29.8% in the March 2011 quarter and 30.7% in the December 2011 quarter.

 

   

SG&A expense was $163.9 million, compared with $159.4 million in the March 2011 quarter and $163.1 million in the December 2011 quarter.

 

   

Capital expenditures were $54.4 million or 6.5% of revenue.

 

   

Depreciation and amortization was $58.5 million or 7.0% of revenue.

 

   

Backlog was $376.9 million, an increase of $30.6 million or 8.8% from the December 2011 quarter.

 

   

The book-to-bill ratio was 1.04 to 1.

 

   

Inventory days outstanding were 93 days compared with 87 days in the March 2011 quarter and 91 days in the December 2011 quarter.

 

   

Accounts receivable days outstanding were 72 days compared with 76 days in the March 2011 quarter and 71 days in the December 2011 quarter.

 

   

Cash flow from operations was $138.9 million.

 

   

The effective tax rate was 27.2%. Excluding the one-time benefit from releasing valuation allowances no longer required, partially offset by the impact of an adjustment to deferred tax assets, the effective tax rate was 30.6%.

Increase in Cash Dividend

The Board of Directors has approved an increase in the quarterly cash dividend to $0.22 per share, an increase of 10% from the previous cash dividend of $0.20 per share. The increase is effective for the cash dividend payable on July 25, 2012 to shareholders of record on June 29, 2012, for each share of Common Stock (MOLX), Class A Common Stock (MOLXA) and Class B Common Stock, and will continue quarterly until further action by the Board.

Outlook

Based upon current order rates, backlog and normal seasonality, the Company estimates revenue in a range of $870 to $900 million for the June 2012 quarter. At this level of revenue, the Company expects earnings per share in a range of $0.36 to $0.40 assuming constant foreign currency rates and commodity prices and an effective tax rate of 31%.

Earnings Conference Call Information

A conference call will be held on Wednesday, April 25, 2012 at 8:30 am central time. Please dial (888) 679-8037 to participate in the call. International callers should dial (617) 213-4849. Please dial in at least five minutes prior to the start of the call and refer to participant pass code 17139779. Internet users will be able to access the webcast, including slide materials, live and in replay in the “Investors” section of the Company’s website at www.molex.com. A 48-hour telephone replay will be available at approximately 10:30 am central time at (888) 286-8010 or (617) 801-6888 / pass code 16705816.

Other Investor Events

May 15, 2012 – 6th Annual Barrington Research Industrial & Business Services Conference in Chicago

May 31, 2012 – KeyBanc Industrial Conference in Boston

June 12, 2012 – William Blair & Company Growth Stock Conference in Chicago

 

2


Forward-Looking Statements

Statements in this release that are not historical are forward-looking and are subject to various risks and uncertainties that could cause actual results to vary materially from those stated. Words such as “expect,” “anticipate,” “outlook,” “forecast,” “could,” “project,” “intend,” “plan,” “continue,” “believe,” “seek,” “estimate,” “should,” “may,” “assume,” “potential,” variations of such words and similar expressions are used to identify these forward-looking statements. Forward-looking statements are based on currently available information and include, among others, the discussion under “Outlook.” These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Respective risks, uncertainties, and assumptions that could affect the outcome or results of operations are described in Part 1, Item 1A of our Annual Report on Form 10-K for the year ended June 30, 2011, and the Form 10-Q for the quarters ended September 30, 2011 and December 31, 2011.

Forward-looking statements are based upon beliefs, assumptions and information available at the time the statements are made. Actual outcomes and results may differ materially from what is expressed, implied, or forecast in these forward-looking statements. Reference may be made to forward-looking statements regarding growth strategies, industry trends, global economic conditions, success of customers, cost of raw materials, value of inventory, availability of credit, currency exchange rates, labor costs, protection of intellectual property, cost reduction initiatives, unauthorized activities in Japan, acquisition synergies, manufacturing strategies, product development introduction and sales, regulatory changes, competitive strengths, natural disasters, investigations and legal proceedings. Except as required under the federal securities laws, Molex does not have any intention or obligation to update publicly any forward-looking statements after the distribution of this quarterly release, whether as a result of new information, future events, changes in assumptions, or otherwise.

Molex Incorporated is a 73-year-old global manufacturer of electronic, electrical and fiber optic interconnection systems. Based in Lisle, Illinois, USA, the Company operates 40 manufacturing locations in 16 countries. The Molex website is www.molex.com.

# # #

Editor’s note: Molex is traded on the NASDAQ Global Select Market (MOLX and MOLXA) in the United States and on the London Stock Exchange. The Company’s voting common stock (MOLX) is included in the S&P 500 Index.

 

3


Molex Incorporated

Condensed Consolidated Balance Sheets

(in thousands)

 

     Mar. 31,
2012
     June 30,
2011
 
     (Unaudited)         
ASSETS   

Current assets:

     

Cash and cash equivalents

   $ 608,809       $ 532,599   

Marketable securities

     13,654         13,947   

Accounts receivable, less allowances of $39,970 and $42,297, respectively

     724,141         811,449   

Inventories

     546,909         535,953   

Deferred income taxes

     125,807         129,158   

Other current assets

     39,454         32,239   
  

 

 

    

 

 

 

Total current assets

     2,058,774         2,055,345   

Property, plant and equipment, net

     1,126,467         1,168,448   

Goodwill

     161,143         149,452   

Non-current deferred income taxes

     41,434         38,178   

Other assets

     175,795         186,429   
  

 

 

    

 

 

 

Total assets

   $ 3,563,613       $ 3,597,852   
  

 

 

    

 

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY   

Current liabilities:

     

Current portion of long-term debt and short-term borrowings

   $ 100,976       $ 119,764   

Accounts payable

     314,999         359,812   

Accrued expenses:

     

Accrual for unauthorized activities in Japan

     177,338         182,460   

Income taxes payable

     49,737         2,383   

Other

     210,115         217,628   
  

 

 

    

 

 

 

Total current liabilities

     853,165         882,047   

Other non-current liabilities

     20,870         23,879   

Accrued pension and postretirement benefits

     91,284         100,866   

Long-term debt

     155,128         222,794   
  

 

 

    

 

 

 

Total liabilities

     1,120,447         1,229,586   
  

 

 

    

 

 

 

Commitments and contingencies

     

Total stockholders’ equity

     2,443,166         2,368,266   
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 3,563,613       $ 3,597,852   
  

 

 

    

 

 

 

 

4


Molex Incorporated

Condensed Consolidated Statements of Income

(Unaudited)

(in thousands, except per share data)

 

     Three Months Ended
March 31,
    Nine Months Ended
March 31,
 
     2012     2011     2012     2011  

Net revenue

   $ 837,080      $ 874,531      $ 2,630,663      $ 2,673,668   

Cost of sales

     581,904        613,917        1,819,822        1,866,933   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     255,176        260,614        810,841        806,735   
  

 

 

   

 

 

   

 

 

   

 

 

 

Selling, general and administrative

     163,853        159,448        496,151        475,548   

Unauthorized activities in Japan

     2,521        2,855        8,166        11,110   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     166,374        162,303        504,317        486,658   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     88,802        98,311        306,524        320,077   

Interest (expense) income, net

     (1,212     (1,726     (4,697     (4,849

Other income

     1,561        1,325        3,319        5,766   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expense), net

     349        (401     (1,378     917   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     89,151        97,910        305,146        320,994   

Income taxes

     24,268        29,765        95,730        99,462   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 64,883      $ 68,145      $ 209,416      $ 221,532   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

        

Basic

   $ 0.37      $ 0.39      $ 1.19      $ 1.27   

Diluted

   $ 0.36      $ 0.39      $ 1.18      $ 1.26   

Dividends declared per share

   $ 0.2000      $ 0.1750      $ 0.6000      $ 0.5025   

Average common shares outstanding:

        

Basic

     176,164        174,957        175,830        174,666   

Diluted

     178,134        176,449        177,152        175,678   

 

5


Molex Incorporated

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

 

     Nine Months Ended
March 31,
 
     2012     2011  

Operating activities:

    

Net income

   $ 209,416      $ 221,532   

Add non-cash items included in net income:

    

Depreciation and amortization

     179,664        181,716   

Share-based compensation

     17,248        17,009   

Other non-cash items

     8,914        17,719   

Changes in assets and liabilities:

    

Accounts receivable

     71,833        (2,143

Inventories

     (20,896     (43,112

Accounts payable

     (38,382     (63,725

Other current assets and liabilities

     (4,747     3,903   

Other assets and liabilities

     7,328        (5,968
  

 

 

   

 

 

 

Cash provided from operating activities

     430,378        326,931   

Investing activities:

    

Capital expenditures

     (149,427     (196,915

Acquisitions

     (24,000     (18,847

Proceeds from sales of property, plant and equipment

     3,373        1,460   

Proceeds from sales or maturities of marketable securities

     8,348        5,568   

Purchases of marketable securities

     (8,881     (6,062

Other investing activities

     11,000        (196
  

 

 

   

 

 

 

Cash used for investing activities

     (159,587     (214,992

Financing activities:

    

Proceeds from revolving credit facility

     75,000        85,000   

Payments on revolving credit facility

     (255,000     (20,000

Proceeds from short-term loans and current portion of long-term debt

     —          28,856   

Payments on short-term loans and current portion of long-term debt

     (53,615     (31,843

Proceeds from issuance of long-term debt

     150,000        —     

Payments of long-term debt

     (479     (47,908

Cash dividends paid

     (105,375     (83,766

Exercise of stock options

     6,867        5,935   

Other financing activities

     (3,199     (2,990
  

 

 

   

 

 

 

Cash used for financing activities

     (185,801     (66,716

Effect of exchange rate changes on cash

     (8,780     26,221   
  

 

 

   

 

 

 

Net increase in cash and cash equivalents

     76,210        71,444   

Cash and cash equivalents, beginning of period

     532,599        376,352   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 608,809      $ 447,796   
  

 

 

   

 

 

 

 

6