BERWYN, Pa., May 4, 2021 /PRNewswire/ -- AMETEK, Inc.
(NYSE: AME) today announced its financial results for the first
quarter ended March 31, 2021.
AMETEK's first quarter 2021 sales were $1.22 billion, a 1% increase over the first
quarter of 2020, with organic sales growth of 1%. Operating income
increased 6% to $293.3 million, and
operating margins were up 110 basis points to 24.1%, both versus
the prior year's adjusted results.
On a GAAP basis, first quarter earnings per diluted share were
$0.94. Adjusted earnings were
$1.07 per diluted share, up 5% versus
the prior year's adjusted results. Adjusted earnings adds back
non-cash, after-tax, acquisition-related intangible amortization of
$0.13 per diluted share. A
reconciliation of reported GAAP results to adjusted results is
included in the financial tables accompanying this release and on
the AMETEK website.
"AMETEK performed exceptionally well in the first quarter,"
commented David A. Zapico, AMETEK Chairman and Chief
Executive Officer. "We were pleased with the return to organic
sales growth earlier than anticipated, while order momentum remains
very strong with a record level of orders and 9% organic orders
growth in the quarter. Additionally, our businesses delivered
outstanding operating performance with robust margin
expansion."
"We continue to generate strong cash flow with operating cash
flow up 5% in the quarter and free cash flow conversion of 122% of
net income. This excellent cash flow generation is being used to
support an active acquisition environment. Thus far in 2021, we
have deployed $1.85 billion on five
strategic acquisitions. We remain well positioned with a pipeline
of attractive acquisition opportunities and strong balance sheet
capacity to support our continued growth," noted Mr. Zapico.
Electronic Instruments Group (EIG)
First quarter EIG
sales were $790.9 million, up 2%
compared to the first quarter of 2020. EIG's operating income in
the quarter was up 7% to $206.9
million, and operating margins were up 110 basis points to
26.2%, versus the prior year's adjusted results.
"EIG delivered strong results in the first quarter with solid
sales growth and outstanding operating performance," noted Mr.
Zapico. "Sales were stronger than expected in the quarter as we
continue to see improvements across our key end markets, in
particular across our Process businesses."
Electromechanical Group (EMG)
EMG sales in the first
quarter were $424.8 million, down 1%
compared to last year's first quarter. Operating income for EMG was
up 8% to a record $105.0 million, and
operating margins were up 190 basis points to a record 24.7%,
versus the prior year's adjusted results.
"EMG also had an excellent first quarter with solid organic
sales growth offset by the divestiture of Reading Alloys,"
commented Mr. Zapico. "EMG's automation businesses are benefitting
from solid demand for their precision motion control solutions,
while EMG's operational initiatives delivered record operating
profit and operating margins in the quarter."
2021 Outlook
"The strength of the AMETEK Growth Model
was reflected in our results this quarter and in our revised
outlook for the balance of the year. Our differentiated businesses,
diverse and balanced end market exposures, exceptional operating
capability, robust cash flow generation and proven ability to
deploy capital on value enhancing acquisitions, has positioned
AMETEK extremely well for strong growth in 2021 and beyond,"
continued Mr. Zapico.
"Given our first quarter results and recent acquisition activity
we are increasing our guidance for the year. For 2021, we now
expect overall sales to be up high teens on a percentage basis
compared to the prior year, with organic sales up high single
digits. Adjusted earnings per diluted share are expected to be in
the range of $4.48 to $4.56, an increase of 13% to 15% over the
comparable basis for 2020. This is an increase from our previous
adjusted earnings guidance range of $4.18 to $4.30 per
diluted share," he added.
"Overall sales in the second quarter are expected to be up in
the low 30% range versus the second quarter of 2020. We anticipate
adjusted earnings per diluted share will be in the range of
$1.08 to $1.10, up 29% to 31% versus last year's second
quarter. Our full year and second quarter guidance includes all
five recently completed acquisitions," concluded Mr. Zapico.
Conference Call
AMETEK will webcast its first quarter
2021 investor conference call on Tuesday, May 4, 2021,
beginning at 8:30 AM ET. The live
audio webcast will be available and later archived in the Investors
section of www.ametek.com.
About AMETEK
AMETEK is a leading global
manufacturer of electronic instruments and electromechanical
devices with annual sales in 2020 of more than $4.5 billion. The AMETEK Growth Model integrates
the Four Growth Strategies - Operational Excellence, New Product
Development, Global and Market Expansion, and Strategic
Acquisitions - with a disciplined focus on cash generation and
capital deployment. AMETEK's objective is double-digit percentage
growth in earnings per share over the business cycle and a superior
return on total capital. The common stock of AMETEK is a component
of the S&P 500.
Forward-looking Information
Statements in this news
release relating to future events, such as AMETEK's expected
business and financial performance are "forward-looking
statements." Forward-looking statements are subject to various
factors and uncertainties that may cause actual results to differ
significantly from expectations. These factors and uncertainties
include risks related to COVID-19 and its potential impact on
AMETEK's operations, supply chain, and demand across key end
markets; AMETEK's ability to consummate and successfully integrate
future acquisitions; risks with international sales and operations,
including supply chain disruptions; AMETEK's ability to
successfully develop new products, open new facilities or transfer
product lines; the price and availability of raw materials;
compliance with government regulations, including environmental
regulations; changes in the competitive environment or the effects
of competition in our markets; the ability to maintain adequate
liquidity and financing sources; and general economic conditions
affecting the industries we serve. A detailed discussion of these
and other factors that may affect our future results is contained
in AMETEK's filings with the U.S. Securities and Exchange
Commission, including its most recent reports on Form 10-K, 10-Q
and 8-K. AMETEK disclaims any intention or obligation to update or
revise any forward-looking statements.
Contact:
AMETEK, Inc.
Kevin Coleman
Vice President, Investor Relations
1100 Cassatt Road
Berwyn, Pennsylvania 19312
kevin.coleman@ametek.com
Phone: 610.889.5247
AMETEK,
Inc.
|
Consolidated
Statement of Income
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2021
|
|
2020
|
Net
sales
|
$1,215,742
|
|
$1,202,218
|
|
|
|
|
Cost of
sales
|
789,392
|
|
824,647
|
Selling, general and
administrative
|
133,005
|
|
145,531
|
Total operating
expenses
|
922,397
|
|
970,178
|
|
|
|
|
Operating
income
|
293,345
|
|
232,040
|
|
|
|
|
Interest
expense
|
(18,947)
|
|
(22,741)
|
Other (expense)
income, net
|
(1,942)
|
|
141,776
|
|
|
|
|
Income before income
taxes
|
272,456
|
|
351,075
|
|
|
|
|
Provision for income
taxes
|
53,223
|
|
70,459
|
|
|
|
|
Net
income
|
$
219,233
|
|
$
280,616
|
|
|
|
|
Diluted earnings
per share
|
$
0.94
|
|
$
1.22
|
Basic earnings per
share
|
$
0.95
|
|
$
1.23
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
Diluted shares
|
232,296
|
|
230,872
|
Basic shares
|
230,435
|
|
228,962
|
|
|
|
|
Dividends per
share
|
$
0.20
|
|
$
0.18
|
AMETEK,
Inc.
|
Information by
Business Segment
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2021
|
|
2020
|
Net
sales:
|
|
|
|
Electronic
Instruments
|
$
790,924
|
|
$
774,225
|
Electromechanical
|
424,818
|
|
427,993
|
Consolidated net sales
|
$1,215,742
|
|
$1,202,218
|
|
|
|
|
Operating
income:
|
|
|
|
Segment operating
income:
|
|
|
|
Electronic
Instruments
|
$
206,897
|
|
$
171,271
|
Electromechanical
|
105,033
|
|
76,564
|
Total segment operating income
|
311,930
|
|
247,835
|
Corporate administrative
expenses
|
(18,585)
|
|
(15,795)
|
Consolidated operating income
|
$
293,345
|
|
$
232,040
|
AMETEK,
Inc.
|
Condensed
Consolidated Balance Sheet
|
(In
thousands)
|
|
|
March
31,
|
|
December
31,
|
|
2021
|
|
2020
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
1,123,660
|
|
$
1,212,822
|
Receivables, net
|
678,467
|
|
597,472
|
Inventories, net
|
604,321
|
|
559,171
|
Other current
assets
|
167,045
|
|
153,005
|
Total current assets
|
2,573,493
|
|
2,522,470
|
|
|
|
|
Property, plant and
equipment, net
|
549,313
|
|
526,530
|
Right of use asset,
net
|
166,675
|
|
167,233
|
Goodwill
|
4,292,402
|
|
4,224,906
|
Other intangibles,
investments and other assets
|
2,998,000
|
|
2,916,344
|
Total assets
|
$10,579,883
|
|
$10,357,483
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$
94,670
|
|
$
132,284
|
Accounts payable and
accruals
|
1,043,793
|
|
943,631
|
Total current liabilities
|
1,138,463
|
|
1,075,915
|
|
|
|
|
Long-term debt,
net
|
2,256,910
|
|
2,281,441
|
Deferred income taxes
and other long-term liabilities
|
1,063,762
|
|
1,050,781
|
Stockholders'
equity
|
6,120,748
|
|
5,949,346
|
Total liabilities and stockholders' equity
|
$10,579,883
|
|
$10,357,483
|
AMETEK,
Inc.
|
Reconciliations of
GAAP to Non-GAAP Financial Measures
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
EIG Segment operating
income (GAAP)
|
|
|
$
206,897
|
|
$
171,271
|
|
|
Realignment
costs
|
|
|
-
|
|
22,846
|
|
Adjusted EIG Segment
operating income (Non-GAAP)
|
|
|
$
206,897
|
|
$
194,117
|
|
|
|
|
|
|
|
|
|
EMG Segment operating
income (GAAP)
|
|
|
$
105,033
|
|
$
76,564
|
|
|
Realignment
costs
|
|
|
-
|
|
20,890
|
|
Adjusted EMG Segment
operating income (Non-GAAP)
|
|
|
$
105,033
|
|
$
97,454
|
|
|
|
|
|
|
|
|
|
Operating income
(GAAP)
|
|
|
$
293,345
|
|
$
232,040
|
|
|
Realignment
costs
|
|
|
-
|
|
43,928
|
|
Adjusted Operating
income (Non-GAAP)
|
|
|
$
293,345
|
|
$
275,968
|
|
|
|
|
|
|
|
|
|
Income before income
taxes (GAAP)
|
|
|
$
272,456
|
|
$
351,075
|
|
|
Realignment
costs
|
|
|
-
|
|
43,928
|
|
|
Gain from sale of
Reading Alloys
|
|
|
-
|
|
(141,020)
|
|
Adjusted Income
before income taxes (Non-GAAP)
|
|
|
$
272,456
|
|
$
253,983
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
|
|
$
219,233
|
|
$
280,616
|
|
|
Realignment
costs
|
|
|
-
|
|
43,928
|
|
|
Income tax benefit on
realignment costs
|
|
|
-
|
|
(10,293)
|
|
|
Gain from sale of
Reading Alloys
|
|
|
-
|
|
(141,020)
|
|
|
Income tax expense on
sale of business
|
|
|
-
|
|
31,446
|
|
Adjusted Net income
(Non-GAAP)
|
|
|
$
219,233
|
|
$
204,677
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
|
|
$
0.94
|
|
$
1.22
|
|
|
Realignment
costs
|
|
|
-
|
|
0.19
|
|
|
Income tax benefit on
realignment costs
|
|
|
-
|
|
(0.04)
|
|
|
Gain from sale of
Reading Alloys
|
|
|
-
|
|
(0.61)
|
|
|
Income tax charge on
gain on sale of Reading Alloys
|
|
|
-
|
|
0.14
|
|
|
Pretax amortization
of acquisition-related intangible assets
|
|
|
0.17
|
|
0.17
|
|
|
Income tax benefit on
amortization of acquisition-related
|
|
|
|
|
|
|
|
intangible
assets
|
|
|
(0.04)
|
|
(0.04)
|
|
|
Rounding
|
|
|
-
|
|
(0.01)
|
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
|
|
$
1.07
|
|
$
1.02
|
|
|
|
|
|
|
|
|
|
EIG Segment operating
margin (GAAP)
|
|
|
26.2%
|
|
22.1%
|
|
|
Realignment
costs
|
|
|
-
|
|
3.0%
|
|
Adjusted EIG Segment
operating margin (Non-GAAP)
|
|
|
26.2%
|
|
25.1%
|
|
|
|
|
|
|
|
|
|
EMG Segment operating
margin (GAAP)
|
|
|
24.7%
|
|
17.9%
|
|
|
Realignment
costs
|
|
|
-
|
|
4.9%
|
|
Adjusted EMG Segment
operating margin (Non-GAAP)
|
|
|
24.7%
|
|
22.8%
|
|
|
|
|
|
|
|
|
|
Operating income
margin (GAAP)
|
|
|
24.1%
|
|
19.3%
|
|
|
Realignment
costs
|
|
|
-
|
|
3.7%
|
|
Adjusted Operating
income margin (Non-GAAP)
|
|
|
24.1%
|
|
23.0%
|
|
AMETEK,
Inc.
|
Reconciliations of
GAAP to Non-GAAP Financial Measures
|
(In millions,
except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
FREE CASH
FLOW
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
2021
|
|
2020
|
|
|
|
|
Cash provided by
operating activities
|
$
284.4
|
|
$
270.8
|
|
|
|
|
Deduct: Capital
expenditures
|
(17.5)
|
|
(16.9)
|
|
|
|
|
Free cash
flow
|
$
266.9
|
|
$
253.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
Conversion
(Free cash flow
divided by net income)
|
122%
|
|
90%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED DILUTED
EARNINGS PER SHARE
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
2021
|
|
2020
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
$
0.94
|
|
$
1.22
|
|
|
|
|
Pretax amortization of
acquisition-related intangible assets
|
0.17
|
|
0.17
|
|
|
|
|
Income tax benefit on
amortization of acquisition-related intangible assets
|
(0.04)
|
|
(0.04)
|
|
|
|
|
Realignment
costs
|
-
|
|
0.19
|
|
|
|
|
Income tax benefit on
realignment costs
|
-
|
|
(0.04)
|
|
|
|
|
Gain from sale of
Reading Alloys
|
-
|
|
(0.61)
|
|
|
|
|
Income tax charge on
gain on sale of Reading Alloys
|
-
|
|
0.14
|
|
|
|
|
Rounding
|
-
|
|
(0.01)
|
|
|
|
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
$
1.07
|
|
$
1.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forecasted
Diluted Earnings Per Share
|
|
Three Months
Ended
|
|
Year
Ended
|
|
June 30,
2021
|
|
December 31,
2021
|
|
Low
|
|
High
|
|
Low
|
|
High
|
Diluted earnings per
share (GAAP)
|
$
0.93
|
|
$
0.95
|
|
$
3.87
|
|
$
3.95
|
Pretax amortization of
acquisition-related intangible assets
|
0.20
|
|
0.20
|
|
0.80
|
|
0.80
|
Income tax benefit on
amortization of acquisition-related intangible assets
|
(0.05)
|
|
(0.05)
|
|
(0.19)
|
|
(0.19)
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
$
1.08
|
|
$
1.10
|
|
$
4.48
|
|
$
4.56
|
|
|
|
|
|
|
|
|
Use of Non-GAAP
Financial Information
The Company
supplements its consolidated financial statements presented on a
U.S. generally accepted accounting principles ("GAAP") basis
with certain non–GAAP financial information to provide investors
with greater insight, increased transparency and allow for a more
comprehensive understanding of the information used by management
in its financial and operational decision-making.
Reconciliation of non–GAAP measures to their most directly
comparable GAAP measures are included in the accompanying financial
tables. These non–GAAP financial measures should be considered in
addition to, and not as a replacement for, or superior to, the
comparable GAAP measure, and may not be comparable to similarly
titled measures reported by other companies.
|
The Company believes
that these measures provide useful information to investors by
reflecting additional ways of viewing AMETEK's operations that,
when reconciled to the comparable GAAP measure, helps our investors
to better understand the long-term profitability trends of our
business, and facilitates easier comparisons of our profitability
to prior and future periods and to our peers.
|
View original
content:http://www.prnewswire.com/news-releases/ametek-announces-first-quarter-results-and-raises-2021-guidance-301282595.html
SOURCE AMETEK, Inc.