WALLINGFORD, Conn.--(BUSINESS WIRE)--
Amphenol Corporation (NYSE:APH) reported today GAAP Diluted Earnings Per
Share (“EPS”) for the first quarter 2018 of $0.84 compared to $0.71 for
the comparable 2017 period. GAAP Diluted EPS for the first quarter 2018
includes an excess tax benefit of approximately $4.1 million ($0.01 per
share) related to stock options exercised during the quarter compared to
approximately $8.0 million ($0.02 per share) for the comparable 2017
period. Excluding the effect of this item, Adjusted Diluted EPS1 for
first quarter 2018 and 2017 was $0.83 and $0.69, respectively.
Sales for the first quarter 2018 were $1.867 billion compared to $1.560
billion for the comparable 2017 period. Currency translation had the
effect of increasing sales by approximately $63 million in the first
quarter of 2018 compared to the 2017 period.
On April 24, 2018, the Company’s Board of Directors approved a 21%
increase in the Company’s dividend as well as a new three-year open
market stock repurchase plan. The quarterly dividend will increase from
$0.19 to $0.23 per share to be paid on July 10, 2018 to holders of
record of the Company’s Class A common stock as of June 18, 2018. The
new three-year open market stock repurchase plan is authorized for the
purchase of up to $2 billion of the Company’s common stock.
Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated,
“We are pleased to close the first quarter 2018 above the high end of
our guidance with sales and Adjusted Diluted EPS in the quarter of
$1.867 billion and $0.83, respectively. Compared to the first quarter
2017, sales increased a strong 20%, reflecting organic growth across
most of the Company’s diversified end markets, including, in particular,
mobile devices, military, industrial, automotive, and commercial air,
together with contributions from the Company’s successful acquisition
program. 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. The Company’s Adjusted Diluted EPS growth of 20% in the quarter
was driven by our superior operating execution, as reflected in the
Company’s achievement of a strong operating margin of 20.2%. I am very
proud of our organization as we continue to execute extremely well.”
“Operating cash flow in the quarter was $130 million which included an
$81 million payment made in the first quarter to fully fund our U.S.
defined benefit pension plans. The Company continues to deploy its
financial strength in a variety of ways to increase shareholder value.
This included the purchase during the first quarter of 2018 of 4.2
million shares of the Company’s stock bringing total repurchases under
the plan since inception in January 2017 to approximately 12.6 million
shares, which completed our $1 billion open market stock repurchase
plan”.
“While we are pleased that the overall demand environment has improved,
there remain many uncertainties surrounding global trade and economic
policy. Considering this environment and based on current currency
exchange rates, we expect second quarter 2018 sales in the range of
$1.855 billion to $1.895 billion and Adjusted Diluted EPS in the range
of $0.83 to $0.85. For the full year 2018, we now expect to achieve
sales in the range of $7.630 billion to $7.750 billion, an increase over
2017 of 9% to 11%, as well as Adjusted Diluted EPS in the range of $3.49
to $3.55, an increase over 2017 of 12% to 14%.
“The electronics revolution continues to create exciting, long-term
growth opportunities for Amphenol. We are encouraged by the Company’s
broad-based and strong results, and we remain confident for the future.
New applications and higher performance requirements continue to drive
increased demand for our broadened range of high technology products
across all our diversified end markets. Our ongoing actions to leverage
our competitive advantages and create sustained financial strength, as
well as our initiatives to expand our high technology product offering
both organically and through our successful acquisition program, have
created an excellent base for future performance. I amconfident
in the ability of our outstanding, entrepreneurial management team to
dynamically adjust to the always changing 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 first quarter
results at 1:00 PM (EDT) Wednesday, April 25, 2018. 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 (EDT) on Friday, May 25, 2018.
The replay numbers are toll free 800-739-2829; International toll number
is 203-369-3330; 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 may include forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, which
relate to future, not past, events and are subject to risks and
uncertainties. The forward-looking statements, which address the
Company’s expected business and financial performance and financial
condition, among other matters, may contain words such as: “anticipate,”
“could,” “continue,” “expect,” “estimate,” “forecast,” “ongoing,”
“project,” “seek,” “predict,” “target,” “will,”, “intend,” “plan,”
“optimistic,” “potential,” “guidance,” “may,” “should,” or “would” and
other words and terms of similar meaning. Forward-looking statements by
their nature address matters that are, to different degrees, uncertain,
such as statements about expected earnings, revenues, growth, liquidity
or other financial matters. Although the Company believes the
expectations reflected in such forward-looking statements, including
regarding the second quarter and full year 2018 sales expectations and
GAAP and Adjusted Diluted EPS expectations, are based upon reasonable
assumptions, the expectations may not be attained or there may be
material deviation. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date on
which they are made.
Factors that could cause actual results to differ materially from these
forward-looking statements, include, but are not limited to, the
following: the Company’s dependence on sales to the communications
industry, in which markets are dominated by large manufacturers and
operators who regularly exert significant pressure on suppliers such as
the Company; the Company’s dependence on sales to the military market,
including the impact of reductions or changes in the defense budgets of
U.S. and foreign governments; the Company’s ability to compete
successfully on the basis of technology innovation, product quality,
price, customer service and delivery time; the Company’s ability to
continue to conceive, design, source and market new products, as well as
market acceptance of the Company’s existing and future product lines,
for continued revenue growth; the Company’s ability to access the
capital markets on favorable terms, including as a result of significant
deterioration of general economic or capital market conditions, or as a
result of a downgrade in the Company’s credit rating; changes in
exchange rates of the various currencies in which the Company conducts
business, including possible currency devaluations; changes in interest
rates which could impact existing or future issuances of debt; changes
in tax laws, regulations and guidance, including related
interpretations, in the United States and international jurisdictions,
such as the U.S. Tax Cuts and Jobs Act (“Tax Act”); political, economic,
military and other risks in countries outside of the United States,
including political, economic, financial or other instability,
intergovernmental conflicts or actions, strikes or natural disasters;
the impact of general economic conditions, geopolitical conditions and
U.S. trade policies, legislation, treaties and tariffs, including those
affecting China, on the Company’s business operations; difficulties and
unanticipated expenses in connection with purchasing and integrating
newly acquired businesses as part of the Company’s growth strategy,
including the potential for the impairment of goodwill; the Company’s
ability to obtain a consistent supply of materials, at stable pricing
levels, used in the Company’s manufacturing processes, including
aluminum, steel, copper, titanium, metal alloys, gold, silver, certain
rare earth metals and plastic resins; litigation or environmental
matters including changes to laws and regulations that the Company may
be subject to; and cybersecurity threats or incidents that could arise.
Such forward-looking statements may also be impacted by, among other
things, clarifications to and additional guidance under the Tax Act.
More specifically, on December 22, 2017, the Tax Act was enacted and it
significantly revised U.S. corporate income tax law by, among other
things, reducing the U.S. corporate income tax rate to 21% and
implementing a modified territorial tax system that includes a one-time
transition tax on deemed repatriated earnings of foreign subsidiaries.
The provisional income tax charge recorded in the fourth quarter of 2017
incorporated assumptions made based upon the Company’s current
interpretation of the Tax Act. As the Company receives additional
clarification and implementation guidance and as the interpretation of
the Tax Act evolves over time, the Company may record adjustments to
such charge in 2018.
A further description of these uncertainties and other risks can be
found in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2017, Quarterly Reports on Form 10-Q and the Company’s
other reports filed with the Securities and Exchange Commission. These
or other uncertainties may cause the Company’s actual future results to
be materially different than those expressed in any forward-looking
statements. The Company undertakes no obligation to update or revise any
forward-looking statements.
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 Corporation, Adjusted Effective Tax Rate and Adjusted Diluted
EPS (collectively, “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 discussed within this press release exclude income and expenses
that are not directly related to the Company’s operating performance
during the periods presented. Items excluded in the presentation of the
non-GAAP financial measures in any period may consist of, without
limitation, acquisition-related expenses, refinancing-related costs and
certain discrete tax items including but not limited to the excess tax
benefits related to stock-based compensation as well as the provisional
income tax charge recorded in 2017 related to the Tax Act and any
subsequent adjustments recorded in 2018 related to this charge.
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 referenced non-GAAP financial measures are defined
in the tables at the end of this press release.
|
|
|
|
|
|
|
|
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|
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(Unaudited)
(dollars
and shares in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2018
|
|
|
2017
|
|
Net sales
|
|
|
$
|
1,866.9
|
|
|
$
|
1,560.1
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
1,260.0
|
|
|
|
1,044.2
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
606.9
|
|
|
|
515.9
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
|
230.0
|
|
|
|
201.8
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
376.9
|
|
|
|
314.1
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(24.5
|
)
|
|
|
(19.3
|
)
|
Other income, net
|
|
|
|
2.3
|
|
|
|
3.6
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
354.7
|
|
|
|
298.4
|
|
|
|
|
|
|
|
|
|
Provision for income taxes (1) |
|
|
|
(86.4
|
)
|
|
|
(71.1
|
)
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
268.3
|
|
|
|
227.3
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
|
(2.7
|
)
|
|
|
(2.4
|
)
|
|
|
|
|
|
|
|
|
Net income attributable to Amphenol Corporation
|
|
|
$
|
265.6
|
|
|
$
|
224.9
|
|
|
|
|
|
|
|
|
|
Net income per common share - Basic
|
|
|
$
|
0.87
|
|
|
$
|
0.73
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - Basic
|
|
|
|
303.7
|
|
|
|
306.6
|
|
|
|
|
|
|
|
|
|
Net income per common share - Diluted (2) |
|
|
$
|
0.84
|
|
|
$
|
0.71
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - Diluted
|
|
|
|
316.0
|
|
|
|
316.4
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share
|
|
|
$
|
0.19
|
|
|
$
|
0.16
|
|
________________________
|
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|
|
|
|
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|
Note 1
|
|
|
Provision for income taxes for the three months ended March 31, 2018
and 2017 includes excess tax benefits related to stock-based
compensation of $4.1 million ($0.01 per share) and $8.0 million
($0.02 per share), respectively.
|
|
|
|
|
Note 2
|
|
|
Net income per share for the three months ended March 31, 2018 and
2017 includes the excess tax benefits related to stock-based
compensation discussed in Note 1. Excluding these tax benefits,
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 $0.83 and $0.69 for the three months ended March
31, 2018 and 2017, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2018
|
|
|
2017
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
|
|
1,000.2
|
|
|
|
$
|
1,719.1
|
|
Short-term investments
|
|
|
|
|
|
24.1
|
|
|
|
|
34.6
|
|
Total cash, cash equivalents and short-term investments
|
|
|
|
|
|
1,024.3
|
|
|
|
|
1,753.7
|
|
Accounts receivable, less allowance for doubtful accounts of $23.9
and $23.0, respectively
|
|
|
|
|
|
1,515.8
|
|
|
|
|
1,598.6
|
|
Inventories
|
|
|
|
|
|
1,166.8
|
|
|
|
|
1,106.9
|
|
Other current assets
|
|
|
|
|
|
230.2
|
|
|
|
|
196.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
|
|
|
3,937.1
|
|
|
|
|
4,656.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, less accumulated depreciation of
$1,257.4 and $1,200.1, respectively
|
|
|
|
|
|
839.3
|
|
|
|
|
816.8
|
|
Goodwill
|
|
|
|
|
|
4,146.5
|
|
|
|
|
4,042.6
|
|
Intangibles, net and other long-term assets
|
|
|
|
|
|
480.8
|
|
|
|
|
488.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
9,403.7
|
|
|
|
$
|
10,003.9
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES & EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
|
|
798.2
|
|
|
|
$
|
875.6
|
|
Accrued salaries, wages and employee benefits
|
|
|
|
|
|
141.3
|
|
|
|
|
151.6
|
|
Accrued income taxes
|
|
|
|
|
|
166.3
|
|
|
|
|
154.2
|
|
Accrued dividends
|
|
|
|
|
|
57.4
|
|
|
|
|
58.1
|
|
Other accrued expenses
|
|
|
|
|
|
271.6
|
|
|
|
|
338.8
|
|
Current portion of long-term debt
|
|
|
|
|
|
749.9
|
|
|
|
|
1.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
|
|
2,184.7
|
|
|
|
|
1,579.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, less current portion
|
|
|
|
|
|
2,489.4
|
|
|
|
|
3,541.5
|
|
Accrued pension and postretirement benefit obligations
|
|
|
|
|
|
190.5
|
|
|
|
|
272.0
|
|
Deferred income taxes
|
|
|
|
|
|
243.3
|
|
|
|
|
241.2
|
|
Other long-term liabilities
|
|
|
|
|
|
327.9
|
|
|
|
|
326.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
|
|
0.3
|
|
|
|
|
0.3
|
|
Additional paid-in capital
|
|
|
|
|
|
1,282.4
|
|
|
|
|
1,249.0
|
|
Retained earnings
|
|
|
|
|
|
2,770.9
|
|
|
|
|
2,941.5
|
|
Accumulated other comprehensive loss
|
|
|
|
|
|
(139.7
|
)
|
|
|
|
(201.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity attributable to Amphenol Corporation
|
|
|
|
|
|
3,913.9
|
|
|
|
|
3,989.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling interests
|
|
|
|
|
|
54.0
|
|
|
|
|
53.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
|
|
3,967.9
|
|
|
|
|
4,043.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
9,403.7
|
|
|
|
$
|
10,003.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOW
(Unaudited)
(dollars
in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2018
|
|
|
2017
|
Cash from operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
268.3
|
|
|
|
$
|
227.3
|
|
Adjustments to reconcile net income to cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
60.5
|
|
|
|
|
54.1
|
|
Stock-based compensation expense
|
|
|
|
12.7
|
|
|
|
|
12.1
|
|
Deferred income tax (benefit) provision
|
|
|
|
(0.2
|
)
|
|
|
|
4.5
|
|
Net change in components of working capital
|
|
|
|
(133.3
|
)
|
|
|
|
(66.8
|
)
|
Net change in other long-term assets and liabilities (1) |
|
|
|
(77.8
|
)
|
|
|
|
6.6
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities (1) |
|
|
|
130.2
|
|
|
|
|
237.8
|
|
|
|
|
|
|
|
|
|
|
Cash from investing activities:
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(54.9
|
)
|
|
|
|
(48.7
|
)
|
Proceeds from disposals of property, plant and equipment
|
|
|
|
0.8
|
|
|
|
|
0.3
|
|
Purchases of short-term investments
|
|
|
|
(6.8
|
)
|
|
|
|
(18.2
|
)
|
Sales and maturities of short-term investments
|
|
|
|
18.1
|
|
|
|
|
122.1
|
|
Acquisitions, net of cash acquired
|
|
|
|
(99.5
|
)
|
|
|
|
(46.6
|
)
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by investing activities
|
|
|
|
(142.3
|
)
|
|
|
|
8.9
|
|
|
|
|
|
|
|
|
|
|
Cash from financing activities:
|
|
|
|
|
|
|
|
|
(Repayments) borrowings under commercial paper program, net
|
|
|
|
(304.8
|
)
|
|
|
|
225.3
|
|
Proceeds from exercise of stock options
|
|
|
|
20.6
|
|
|
|
|
23.7
|
|
Distributions to shareholders of noncontrolling interests
|
|
|
|
(3.9
|
)
|
|
|
|
(4.2
|
)
|
Purchase and retirement of treasury stock
|
|
|
|
(382.0
|
)
|
|
|
|
(249.2
|
)
|
Dividend payments
|
|
|
|
(58.1
|
)
|
|
|
|
(49.3
|
)
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
|
(728.2
|
)
|
|
|
|
(53.7
|
)
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
21.4
|
|
|
|
|
15.3
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
|
(718.9
|
)
|
|
|
|
208.3
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents balance, beginning of period
|
|
|
|
1,719.1
|
|
|
|
|
1,034.6
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents balance, end of period
|
|
|
$
|
1,000.2
|
|
|
|
$
|
1,242.9
|
|
|
|
|
|
|
|
|
|
|
Cash paid for:
|
|
|
|
|
|
|
|
|
Interest
|
|
|
$
|
41.0
|
|
|
|
$
|
32.4
|
|
Income taxes
|
|
|
|
75.9
|
|
|
|
|
77.4
|
|
_________________________
|
|
|
|
|
|
|
|
|
|
|
Note 1
|
|
|
Net change in other long-term assets and liabilities for the three
months ended March 31, 2018 includes an $81 million payment made to
fully fund the Company’s U.S. defined benefit pension plans, which
had the impact of reducing Net cash provided by operating activities
by the same amount for this period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMPHENOL CORPORATION
SEGMENT INFORMATION
(Unaudited)
(dollars
in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
March 31,
|
|
|
|
2018
|
|
|
2017
|
Net sales:
|
|
|
|
|
|
|
|
|
Interconnect Products and Assemblies
|
|
|
$
|
1,770.0
|
|
|
|
$
|
1,463.5
|
|
Cable Products and Solutions
|
|
|
|
96.9
|
|
|
|
|
96.6
|
|
Consolidated Net sales
|
|
|
$
|
1,866.9
|
|
|
|
$
|
1,560.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income:
|
|
|
|
|
|
|
|
|
Interconnect Products and Assemblies
|
|
|
$
|
391.1
|
|
|
|
$
|
323.9
|
|
Cable Products and Solutions
|
|
|
|
11.3
|
|
|
|
|
13.7
|
|
Stock-based compensation expense
|
|
|
|
(12.7
|
)
|
|
|
|
(12.1
|
)
|
Other operating expenses
|
|
|
|
(12.8
|
)
|
|
|
|
(11.4
|
)
|
Consolidated Operating income
|
|
|
$
|
376.9
|
|
|
|
$
|
314.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin (%):
|
|
|
|
|
|
|
|
|
Interconnect Products and Assemblies
|
|
|
|
22.1
|
%
|
|
|
|
22.1
|
%
|
Cable Products and Solutions
|
|
|
|
11.7
|
%
|
|
|
|
14.2
|
%
|
Stock-based compensation expense
|
|
|
|
-0.7
|
%
|
|
|
|
-0.8
|
%
|
Other operating expenses
|
|
|
|
-0.7
|
%
|
|
|
|
-0.7
|
%
|
Consolidated Operating margin (%)
|
|
|
|
20.2
|
%
|
|
|
|
20.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
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 defined 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. The following 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 in
the presentation of these non-GAAP financial measures in any period may
consist of, without limitation, acquisition-related expenses,
refinancing-related costs, and certain discrete tax items including but
not limited to (i) the excess tax benefits related to stock-based
compensation and (ii) the provisional income tax charge recorded in 2017
related to the Tax Act and any subsequent adjustments recorded in 2018
related to this charge. 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 U.S. 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. Such non-GAAP financial measures should be read
in conjunction with the Company’s financial statements presented in
accordance with U.S. GAAP.
The following are reconciliations of non-GAAP financial measures to the
most directly comparable U.S. GAAP financial measures for the periods
presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2018
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable
|
|
|
Effective
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable
|
|
|
Effective
|
|
|
|
|
|
|
|
Operating
|
|
|
Operating
|
|
|
to Amphenol
|
|
|
Tax
|
|
|
Diluted
|
|
|
Operating
|
|
|
Operating
|
|
|
to Amphenol
|
|
|
Tax
|
|
|
Diluted
|
|
|
|
Income
|
|
|
Margin (1)
|
|
|
Corporation
|
|
|
Rate (1)
|
|
|
EPS
|
|
|
Income
|
|
|
Margin (1)
|
|
|
Corporation
|
|
|
Rate (1)
|
|
|
EPS
|
Reported (GAAP)
|
|
|
$
|
376.9
|
|
|
20.2
|
%
|
|
$
|
265.6
|
|
|
|
24.4
|
%
|
|
$
|
0.84
|
|
|
|
$
|
314.1
|
|
|
20.1
|
%
|
|
$
|
224.9
|
|
|
|
23.8
|
%
|
|
$
|
0.71
|
|
Excess tax benefits related to stock-based compensation
|
|
|
|
-
|
|
|
-
|
|
|
|
(4.1
|
)
|
|
|
1.1
|
|
|
|
(0.01
|
)
|
|
|
|
-
|
|
|
-
|
|
|
|
(8.0
|
)
|
|
|
2.7
|
|
|
|
(0.02
|
)
|
Adjusted (non-GAAP) (2)
|
|
|
$
|
376.9
|
|
|
20.2
|
%
|
|
$
|
261.5
|
|
|
|
25.5
|
%
|
|
$
|
0.83
|
|
|
|
$
|
314.1
|
|
|
20.1
|
%
|
|
$
|
216.9
|
|
|
|
26.5
|
%
|
|
$
|
0.69
|
|
______________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
While the terms “operating margin” and “effective tax rate” are not
considered GAAP measures, for purposes of this table, we derive the
reported (GAAP) measures based on GAAP results, which serve as the
basis for the reconciliation to their comparable non-GAAP measure.
|
|
|
|
|
(2)
|
|
|
The definitions of non-GAAP financial measures used are 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 Corporation is
defined as Net Income attributable to Amphenol Corporation (as reported
in the Condensed Consolidated Statements of Income), excluding income
and expenses and their specific tax effects, that are not directly
related to the Company's operating performance during the periods
presented.
Adjusted Effective Tax Rate is defined as Provision for income
taxes (as reported in the Condensed Consolidated Statements of Income)
expressed as a percentage of Income before income taxes (as reported in
the Condensed Consolidated Statements of Income), each excluding the
income and expenses and their specific 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 in accordance with U.S. GAAP), excluding income and expenses
and their specific tax effects, that are not directly related to the
Company's operating performance during the periods presented. Adjusted
Diluted EPS is calculated as Adjusted Net Income attributable to
Amphenol Corporation, as defined above, divided by the weighted average
outstanding diluted shares (as reported in the Condensed Consolidated
Statements of Income).
AMPHENOL CORPORATION
SUPPLEMENTAL FINANCIAL INFORMATION
RECONCILIATIONS
OF GAAP TO NON-GAAP FINANCIAL MEASURES - GUIDANCE
(Unaudited)
(dollars
in millions, except per share data)
Management utilizes the non-GAAP financial measures defined earlier 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. The following 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 in
the presentation of these non-GAAP financial measures in any period may
consist of, without limitation, acquisition-related expenses,
refinancing-related costs, and certain discrete tax items including but
not limited to (i) the excess tax benefits related to stock-based
compensation and (ii) the provisional income tax charge recorded in 2017
related to the Tax Act and any subsequent adjustments recorded in 2018
related to this charge. 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 U.S. 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. Such non-GAAP financial measures should be read
in conjunction with the Company’s financial statements presented in
accordance with U.S. GAAP.
The following are reconciliations of current guidance for GAAP Diluted
earnings per share (Diluted EPS) to Adjusted Diluted EPS (non-GAAP) for
both the second quarter 2018 and the full year 2018:
|
|
|
|
|
|
|
|
|
|
GUIDANCE
(1)
|
|
|
|
SECOND QUARTER 2018
|
|
|
FULL YEAR 2018
|
|
|
|
|
|
|
|
Diluted EPS (GAAP)
|
|
|
$0.83 - $0.85
|
|
|
$3.50 - $3.56
|
|
|
|
|
|
|
|
Excess tax benefits related to stock-based compensation
|
|
|
-
|
|
|
($0.01)
|
|
|
|
|
|
|
|
Adjusted Diluted EPS (non-GAAP)
|
|
|
$0.83 - $0.85
|
|
|
$3.49 - $3.55
|
______________________
|
|
|
|
|
|
|
(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 (i) already been reflected in periods reported and
are therefore included in the forward-looking full-year period or
(ii) 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 full year 2018 guidance only reflects the impact of the
excess tax benefits related to stock-based compensation that were
recognized during the three months ended March 31, 2018.
|
View source version on businesswire.com:
https://www.businesswire.com/news/home/20180425005343/en/
Amphenol Corporation
Craig A. Lampo, 203-265-8625
Senior Vice
President and
Chief Financial Officer
www.amphenol.com
Source: Amphenol Corporation