EX-99.1 2 a05-17433_2ex99d1.htm EX-99.1

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

 

2005 THIRD QUARTER AND NINE MONTH RESULTS
REPORTED BY AMPHENOL CORPORATION

 

Wallingford, Connecticut.  October 19, 2005.  Amphenol Corporation (NYSE-APH) reported today that third quarter 2005 diluted earnings per share increased 21% to $.57 compared to $.47 per share for the comparable 2004 period.  Such per share amount for the third quarter of 2005 includes the one-time effects of expenses relating to the early extinguishment of debt of $.02 per share and the one-time benefit of $.02 per share relating to the reduction in the Company’s effective tax rate from 34% to 33% resulting from the repatriation of foreign earnings under the American Jobs Creation Act of 2004.    Sales for the third quarter 2005 increased 16% to $446,995,000 compared to $384,103,000 for the 2004 period.  Currency translation had the effect of increasing sales by approximately $2.2 million in the third quarter 2005 compared to the 2004 period.

 

For the nine months ended September 30, 2005, diluted earnings per share was $1.67 compared to $1.31 per share for the 2004 period.  Sales for the nine months ended September 30, 2005 were $1,300,032,000 compared to $1,126,483,000 for the 2004 period.  Currency translation had the effect of increasing sales by approximately $17.4 million for the nine month 2005 period when compared to the 2004 period.

 


 

As previously announced, in the third quarter of 2005, the Company completed a refinancing of its senior credit facilities.  In conjunction therewith, the Company incurred one-time expenses for the early extinguishment of debt totaling approximately $2.4 million or $.02 per share after tax.  Such one-time expenses include the write-off of unamortized deferred debt issuance costs less the gain on the termination of related interest rate swap agreements.  In addition, as noted above the Company has adjusted its effective tax rate from 34% to 33% to reflect the one-time benefit of lower United States taxes on the repatriation of foreign earnings available under the provisions of the American Job Creation Act of 2004.  This lowered tax expense in the third quarter by approximately $2.2 million or $.02 per share.

 

Amphenol Chairman and CEO, Martin H. Loeffler, stated:  “I am extremely pleased with our third quarter results.  Sales were up 16% compared to last year’s third quarter to a record $446,995,000 and increased sequentially over the record second quarter 2005.  An excellent achievement in a seasonally slower quarter.   The interconnect products segment of our business, which represents 88% of our sales, was up a strong 18% over last year with excellent profitability.  The growth was broad based across all of our end markets and included all major geographic regions.  Growth was especially strong in the wireless, military and aerospace and automotive markets.  The excellent top line results reflect our continuing development of new application specific solutions and value added products for our customers, our increased worldwide presence with the leading companies in our target markets and acquisitions.  The cable products segment of our business, which is primarily for broadband cable television networks and represents 12% of our sales, was up 9% over the prior year.”

 

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“In addition to excellent overall top line growth, profitability and cash flow continued to be strong.  The operating income margin increased from 18.3% a year ago to 19.3% in the third quarter of 2005.  This increase was driven by the improved profitability of the interconnect product segment offset in part by lower cable product margins, which continue to be impacted by increasing material and freight related costs.  Earnings per share for the quarter increased 21% over last year.  Furthermore, net income, that is income after interest expense and taxes, exceeded 11% of sales, another indication of the Company’s excellent profitability.  Cash flow from operations was also strong at $67 million for the quarter.”

 

“Last week the Company announced an agreement to acquire the Connection Systems division of Teradyne, Inc. (NYSE-TER).  Teradyne Connection Systems (TCS), a technology leader in high-speed, high-density, printed circuit board interconnect products, is complementary and an excellent strategic fit with Amphenol.  The combination of TCS and Amphenol will create the world’s third largest interconnect company and a new expanded platform for creating value.  We expect a closing prior to year end.”

 

“It was a good quarter in all respects.  I am very proud of our organization as we continue to execute well.  We have a strong position in excellent and diversified markets and continue to increase our presence with the major companies in these markets.  Assuming a continuation of the current economic climate and relatively stable currency exchange rates, we expect a strong finish to the year with fourth quarter results in the range of $460 million to $470 million and $.59 to $.61 for sales and EPS, respectively.  The guidance

 

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does not include any effect that may result from the acquisition of TCS.  We are very confident that we are in excellent markets with a great organization, and we are very excited about the future.”

 

The Company will host a conference call to discuss its third quarter results at 1:00 PM (ET) October 19, 2005.  The toll free dial-in number to participate in this call is 888-395-9624; International dial-in number 517-623-4547; Passcode: Reardon.  There will be a replay available until 5:00 PM (ET) on Friday, October 21, 2005.  If you are unable to participate on the call the replay numbers are as follows:  the toll free dial-in number is 866-375-1055 and International dial-in replay number is 203-369-0295.

 

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.  The primary end markets for the Company’s products are communication systems for the converging technologies of voice, video and data communications, industrial/automotive and military/aerospace applications.

 

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

 

4


 

differ materially from those currently anticipated.  Please refer to Part I, Item 1 of the Company’s Form 10-K for the year ended December 31, 2004, 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.

 

5


 

AMPHENOL CORPORATION

 

FINANCIAL SUMMARY

(Unaudited)

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

 

2005

 

2004(1)

 

2005

 

2004(1)

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

446,995,000

 

$

384,103,000

 

$

1,300,032,000

 

$

1,126,483,000

 

Net income

 

$

52,089,000

 

$

41,646,000

 

$

150,521,000

 

$

117,671,000

 

Earnings per share – basic

 

$

.59

 

$

.47

 

$

1.70

 

$

1.34

 

Average shares outstanding – basic

 

88,775,405

 

87,961,000

 

88,387,769

 

88,037,522

 

Earnings per share – diluted

 

$

.57

 

$

.47

 

$

1.67

 

$

1.31

 

Average shares outstanding – diluted

 

90,697,815

 

89,467,309

 

90,294,496

 

89,735,753

 

 

(1)          Per share and share amounts have been adjusted to reflect the Company’s 2 for 1 stock split effective in March 2004.

 

6


 

AMPHENOL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(dollars in thousands, except per share data)

 

 

 

Three months ended
September 30,

 

Nine months ended
September 30,

 

 

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

446,995

 

$

384,103

 

$

1,300,032

 

$

1,126,483

 

Costs and Expenses:

 

 

 

 

 

 

 

 

 

Cost of sales, excluding depreciation and amortization

 

285,420

 

250,417

 

831,266

 

737,678

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

13,064

 

9,736

 

36,577

 

28,902

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense

 

62,422

 

53,647

 

182,721

 

159,263

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

86,089

 

70,303

 

249,468

 

200,640

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(5,548

)

(5,597

)

(16,726

)

(17,025

)

Other expenses, net

 

(2,624

)

(1,607

)

(5,686

)

(5,326

)

Refinancing costs

 

(2,398

)

0

 

(2,398

)

0

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

75,519

 

63,099

 

224,658

 

178,289

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

(23,430

)

(21,453

)

(74,137

)

(60,618

)

 

 

 

 

 

 

 

 

 

 

Net income

 

$

52,089

 

$

41,646

 

$

150,521

 

$

117,671

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Basic

 

$

0.59

 

$

0.47

 

$

1.70

 

$

1.34

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding - Basic

 

88,775,405

 

87,961,000

 

88,387,769

 

88,037,522

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Diluted

 

$

0.57

 

$

0.47

 

$

1.67

 

$

1.31

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding - Diluted

 

90,697,815

 

89,467,309

 

90,294,496

 

89,735,753

 

 

 


 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(dollars in thousands)

 

 

 

Sep. 30,

 

Dec. 31,

 

 

 

2005

 

2004

 

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and short-term cash investments

 

$

38,061

 

$

30,172

 

Accounts receivable, less allowance for doubtful accounts of $9,288 and $8,666, respectively

 

241,047

 

214,158

 

Inventories

 

270,544

 

247,303

 

Prepaid expenses and other assets.

 

36,133

 

37,382

 

 

 

 

 

 

 

Total current assets

 

585,785

 

529,015

 

 

 

 

 

 

 

Land and depreciable assets, less accumulated depreciation of $347,532 and $349,255, respectively

 

209,988

 

197,753

 

Deferred debt issuance costs

 

1,871

 

6,451

 

Goodwill

 

643,825

 

545,411

 

Deferred taxes and other assets

 

31,471

 

28,081

 

 

 

 

 

 

 

 

 

$

1,472,940

 

$

1,306,711

 

 

 

 

 

 

 

LIABILITIES & SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

149,834

 

$

134,856

 

Accrued interest

 

4,088

 

2,183

 

Accrued salaries, wages and employee benefits

 

37,707

 

38,535

 

Other accrued expenses

 

79,571

 

85,089

 

Dividends payable

 

2,714

 

—

 

Current portion of long-term debt

 

15,247

 

16,909

 

 

 

 

 

 

 

Total current liabilities

 

289,161

 

277,572

 

 

 

 

 

 

 

Long-term debt

 

425,675

 

432,144

 

Accrued pension and post employment benefit obligations

 

92,867

 

102,050

 

Other liabilities

 

31,437

 

13,341

 

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

Common stock

 

89

 

88

 

Additional paid-in deficit

 

(176,124

)

(207,504

)

Accumulated earnings

 

932,278

 

789,741

 

Accumulated other comprehensive loss

 

(68,096

)

(55,078

)

Treasury stock, at cost

 

(54,347

)

(45,643

)

 

 

 

 

 

 

Total shareholders’ equity

 

633,800

 

481,604

 

 

 

 

 

 

 

 

 

$

1,472,940

 

$

1,306,711

 

 


 

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(Unaudited)

(dollars in thousands)

 

 

 

Nine months ended
September 30,

 

 

 

2005

 

2004

 

 

 

 

 

 

 

Net income

 

$

150,521

 

$

117,671

 

Adjustments for cash from operations:

 

 

 

 

 

Depreciation and amortization

 

36,577

 

28,902

 

Amortization of deferred debt issue costs

 

856

 

1,066

 

Non-cash expense related to write-off of deferred debt issue costs

 

5,666

 

—

 

Net change in non-cash components of working capital

 

(36,556

)

10,223

 

Other long term assets and liabilities

 

(2,244

)

(13,602

)

 

 

 

 

 

 

Cash provided by operations

 

154,820

 

144,260

 

 

 

 

 

 

 

Cash flow from investing activities:

 

 

 

 

 

Capital additions, net

 

(41,335

)

(29,240

)

Investments in acquisitions

 

(104,779

)

(30,703

)

 

 

 

 

 

 

Cash flow used by investing activities

 

(146,114

)

(59,943

)

 

 

 

 

 

 

Cash flow from financing activities:

 

 

 

 

 

Net change in borrowings under revolving credit facilities

 

403,722

 

(13,865

)

Decrease in borrowings under Bank Agreement

 

(413,000

)

(61,000

)

Payment of fees and expenses related to refinancing

 

(1,942

)

—

 

Purchase of treasury stock

 

(8,704

)

(32,878

)

Proceeds from exercise of stock options including tax benefit

 

24,455

 

22,416

 

Dividend payments

 

(5,348

)

—

 

 

 

 

 

 

 

Cash flow provided by (used by) financing activities

 

(817

)

(85,327

)

 

 

 

 

 

 

Net change in cash and short-term cash investments

 

7,889

 

(1,010

)

Cash and short-term cash investments balance, beginning of period

 

30,172

 

23,533

 

 

 

 

 

 

 

Cash and short-term cash investments balance, end of period

 

$

38,061

 

$

22,523

 

 

 

 

 

 

 

Net cash paid during the year for:

 

 

 

 

 

Interest

 

13,938

 

16,463

 

Taxes

 

62,196

 

31,627

 

 


 

AMPHENOL CORPORATION

SEGMENT INFORMATION

(In thousands)

(Unaudited)

 

 

 

Three months ended
September 30,

 

Nine months ended
September 30,

 

 

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

Trade Sales:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

391,915

 

$

333,468

 

$

1,142,233

 

$

980,503

 

Cable Products

 

55,080

 

50,635

 

157,799

 

145,980

 

Consolidated

 

$

446,995

 

$

384,103

 

$

1,300,032

 

$

1,126,483

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

$

85,279

 

$

68,157

 

$

246,397

 

$

197,040

 

Cable Products

 

6,438

 

6,801

 

19,657

 

18,139

 

Corporate

 

(5,628

)

(4,655

)

(16,586

)

(14,539

)

Consolidated

 

$

86,089

 

$

70,303

 

$

249,468

 

$

200,640

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ROS%:

 

 

 

 

 

 

 

 

 

Interconnect Products

 

21.8

%

20.4

%

21.6

%

20.1

%

Cable Products

 

11.7

%

13.4

%

12.5

%

12.4

%

Consolidated

 

19.3

%

18.3

%

19.2

%

17.8

%