BERWYN, Pa., Oct. 28, 2014 /PRNewswire/ -- AMETEK, Inc.
(NYSE: AME) today announced its financial results for the three
month period ended September 30,
2014.
AMETEK's third quarter 2014 sales of $1.03 billion were up 16% over the same period of
2013 and at a record level. Excluding Zygo integration costs
of $13.7 million, or $0.05 per diluted share, operating income for the
third quarter of 2014 increased 13% to a record $231.8 million, and diluted earnings per share
increased 19% to a record $0.62 per
diluted share from the third quarter of 2013. Operating cash
flow totaled $197 million for the
quarter, an increase of 18% over the same period of 2013.
"AMETEK had another terrific quarter. We delivered record
performance as a result of the continued strong execution of our
Four Growth Strategies. Solid core growth combined with our
Operational Excellence initiatives and the contributions from
recent acquisitions allowed us to deliver excellent results and
exceed our third quarter earnings expectations," noted Frank S. Hermance, AMETEK Chairman and Chief
Executive Officer.
The third quarter 2014 results include one-time tax events
benefitting the tax line, largely offset by a related negative
impact in other expense.
On a GAAP basis, operating income was $218.1 million and diluted earnings per share
were $0.57. A reconciliation of
reported GAAP results to adjusted results is included with the
financial tables accompanying this release.
Electronic Instruments Group (EIG)
In the third
quarter of 2014, EIG sales increased 26% to $631.6 million. Operating income, excluding
the Zygo integration costs, was $162.0
million in the quarter, a 17% increase over the third
quarter of 2013, and operating margins were 25.6% in the
quarter.
"EIG had an excellent third quarter. The strong sales
growth was driven by broad based strength across our Aerospace,
Process and Power & Industrial businesses. The
contributions from the eight recent acquisitions completed in this
Group were also a key driver in our overall growth," said Mr.
Hermance.
On a GAAP basis, EIG operating income was $148.3 million.
Electromechanical Group (EMG)
In the third quarter of
2014, EMG sales increased 3% to $400.2
million. Operating income in the third quarter was up
6% to $82.0 million. Operating
margins were 20.5% in the third quarter of 2014, up 60 basis points
from last year's comparable quarter.
"EMG also had a solid quarter with strong operating
performance. Sales were up on strength in our Precision
Motion Control and Engineered, Materials, Interconnects and
Packaging businesses. Operating margins were up nicely driven
by the higher sales and our Operational Excellence initiatives,"
commented Mr. Hermance.
2014 Outlook
"We are very pleased with the performance
of our businesses. While the global economy remains
sluggish, we are confident in our ability to continue to deliver
strong sales and earnings growth due to our excellent portfolio of
businesses, proven operational capabilities, increased investments
in organic growth initiatives, and a successful focus on strategic
acquisitions," commented Mr. Hermance.
"We continue to anticipate 2014 revenue to be up low double
digits on a percentage basis from 2013 reflecting solid core growth
and the contributions from recent acquisitions. Earnings for
2014, excluding Zygo integration costs, are expected to be in the
range of $2.40 to $2.42 per diluted
share, up 14% to 15% from last year. This reflects an
increase in the low end of our previous guidance from $2.37 to $2.40 per
diluted share," added Mr. Hermance.
"Fourth quarter sales are expected to be up high single digits
on a percentage basis over last year's fourth quarter. We
estimate our earnings to be approximately $0.60 to $0.62 per diluted share, including the
additional interest expense associated with our recent private
placement and foreign exchange headwinds. This earnings
guidance represents an increase of 9% to 13% over last year's
fourth quarter of $0.55 per diluted,"
concluded Mr. Hermance.
Conference Call
The Company will webcast its Third
Quarter 2014 investor conference call on Tuesday, October 28, 2014, beginning at
8:30 AM ET. The live audio webcast
will be available at the Investors section of www.ametek.com and at
www.streetevents.com. The call will also be archived at the
Investors section of www.ametek.com.
Corporate Profile
AMETEK is a leading global
manufacturer of electronic instruments and electro-mechanical
devices with 2013 sales of $3.6
billion. AMETEK's Corporate Growth Plan is based on Four Key
Strategies: Operational Excellence, Strategic Acquisitions, Global
& Market Expansion and New Products. 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 Index.
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 our ability to consummate and successfully
integrate future acquisitions; risks associated with international
sales and operations; our 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.
AMETEK,
Inc.
|
Consolidated
Statement of Income
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Net
sales
|
$1,031,811
|
|
$ 890,006
|
|
$2,997,821
|
|
$2,651,668
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of sales, excluding
depreciation
|
677,739
|
|
572,125
|
|
1,933,554
|
|
1,713,797
|
Selling, general and
administrative
|
119,205
|
|
98,969
|
|
345,146
|
|
291,489
|
Depreciation
|
16,724
|
|
14,226
|
|
47,619
|
|
41,848
|
Total operating expenses
|
813,668
|
|
685,320
|
|
2,326,319
|
|
2,047,134
|
|
|
|
|
|
|
|
|
Operating
income
|
218,143
|
|
204,686
|
|
671,502
|
|
604,534
|
Other
expenses:
|
|
|
|
|
|
|
|
Interest expense
|
(19,543)
|
|
(18,243)
|
|
(57,362)
|
|
(54,720)
|
Other, net
|
(8,639)
|
|
(6,291)
|
|
(16,842)
|
|
(11,482)
|
Income before income
taxes
|
189,961
|
|
180,152
|
|
597,298
|
|
538,332
|
Provision for income
taxes
|
48,150
|
|
52,288
|
|
164,838
|
|
157,001
|
|
|
|
|
|
|
|
|
Net
income
|
$ 141,811
|
|
$ 127,864
|
|
$ 432,460
|
|
$ 381,331
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
0.57
|
|
$ 0.52
|
|
$
1.75
|
|
$ 1.55
|
Basic earnings per
share
|
$
0.58
|
|
$ 0.52
|
|
$
1.76
|
|
$ 1.56
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Diluted shares
|
247,643
|
|
245,930
|
|
247,425
|
|
245,815
|
Basic shares
|
245,439
|
|
244,049
|
|
245,184
|
|
243,667
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
0.09
|
|
$ 0.06
|
|
$
0.24
|
|
$ 0.18
|
|
|
|
|
|
|
|
|
AMETEK,
Inc.
|
Information by
Business Segment
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Net
sales:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$ 631,569
|
|
$ 499,847
|
|
$1,777,252
|
|
$1,467,687
|
Electromechanical
|
400,242
|
|
390,159
|
|
1,220,569
|
|
1,183,981
|
Consolidated net sales
|
$1,031,811
|
|
$ 890,006
|
|
$2,997,821
|
|
$2,651,668
|
|
|
|
|
|
|
|
|
Income:
|
|
|
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$ 148,313
|
|
$ 138,934
|
|
$ 450,131
|
|
$ 400,255
|
Electromechanical
|
82,001
|
|
77,480
|
|
258,014
|
|
238,874
|
Total segment operating income
|
230,314
|
|
216,414
|
|
708,145
|
|
639,129
|
Corporate administrative and
other expenses
|
(12,171)
|
|
(11,728)
|
|
(36,643)
|
|
(34,595)
|
Consolidated operating income
|
$ 218,143
|
|
$ 204,686
|
|
$ 671,502
|
|
$ 604,534
|
AMETEK,
Inc.
|
Condensed
Consolidated Balance Sheet
|
(In
thousands)
|
|
|
September
30,
|
|
December
31,
|
|
2014
|
|
2013
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$ 369,613
|
|
$ 295,203
|
Receivables, net
|
593,452
|
|
536,701
|
Inventories
|
526,674
|
|
452,848
|
Other current
assets
|
100,391
|
|
84,377
|
Total current assets
|
1,590,130
|
|
1,369,129
|
|
|
|
|
Property, plant and
equipment, net
|
451,551
|
|
402,790
|
Goodwill
|
2,633,188
|
|
2,408,363
|
Other intangibles,
investments and other assets
|
1,896,192
|
|
1,697,620
|
Total assets
|
$ 6,571,061
|
|
$ 5,877,902
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt
|
$ 163,202
|
|
$ 273,315
|
Accounts payable and
accruals
|
668,507
|
|
601,230
|
Total current liabilities
|
831,709
|
|
874,545
|
|
|
|
|
Long-term
debt
|
1,473,482
|
|
1,141,750
|
Deferred income taxes
and other long-term liabilities
|
798,063
|
|
725,486
|
Stockholders'
equity
|
3,467,807
|
|
3,136,121
|
Total liabilities and stockholders' equity
|
$ 6,571,061
|
|
$ 5,877,902
|
AMETEK,
Inc.
|
Reconciliations of
GAAP to Non-GAAP Financial Measures
|
(In millions,
except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
EIG Segment operating
income (GAAP)
|
$
148.3
|
|
$ 138.9
|
|
$
450.1
|
|
$
400.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Zygo integration
costs
|
$
13.7
|
|
$
-
|
|
$
13.7
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EIG Segment
operating income (Non-GAAP)
|
$
162.0
|
|
$ 138.9
|
|
$
463.8
|
|
$
400.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(GAAP)
|
$
218.1
|
|
$ 204.7
|
|
$
671.5
|
|
$
604.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Zygo integration
costs
|
$
13.7
|
|
$
-
|
|
$
13.7
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
income (Non-GAAP)
|
$
231.8
|
|
$ 204.7
|
|
$
685.2
|
|
$
604.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
$
141.8
|
|
$ 127.9
|
|
$
432.5
|
|
$
381.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Zygo integration
costs
|
$
10.7
|
(1)
|
$
-
|
|
$
10.7
|
(1)
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net income
(Non-GAAP)
|
$
152.5
|
|
$ 127.9
|
|
$
443.2
|
|
$
381.3
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents
adjustments at 21.5% tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
$
0.57
|
|
$
0.52
|
|
$
1.75
|
|
$
1.55
|
|
|
|
|
|
|
|
|
|
|
|
|
Zygo integration
costs
|
$
0.05
|
|
$
-
|
|
$
0.04
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted
earning per share (Non-GAAP)
|
$
0.62
|
|
$
0.52
|
|
$
1.79
|
|
$
1.55
|
|
|
|
|
|
|
|
|
|
|
|
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. The items described
above have been excluded from this measure because items of this
nature and/or size occur with inconsistent frequency, occur for
reasons that may be unrelated to AMETEK's commercial performance
during the period and/or we believe are not indicative of AMETEK's
ongoing operating costs or gains in a given period, which we
believe may obscure underlying business trends and make comparisons
of long-term performance difficult.
|
Contact: Kevin C. Coleman (610)
889-5247
SOURCE AMETEK, Inc.