BERWYN,
Pa., Feb. 7, 2017 /PRNewswire/ -- AMETEK,
Inc. (NYSE: AME) today announced its financial results for the
three month and full year periods ended December 31, 2016.
AMETEK reported fourth quarter 2016 sales of $973.0 million, down 1.5% from last year's fourth
quarter. On a GAAP basis, fourth quarter 2016 operating
income was $173.2 million and diluted
earnings per share were $0.47.
Excluding adjustments of $39.5
million, or $0.11 per diluted
share, fourth quarter 2016 operating income was $212.7 million and diluted earnings per share
were $0.58. A reconciliation of
reported GAAP results to adjusted results is included in the
financial tables accompanying this release and on the AMETEK
website.
"I am very pleased with our team's performance during 2016 in
what was a challenging global macro environment. As we had
anticipated, business conditions stabilized and we delivered solid
results in the fourth quarter that were in-line with our
expectations," said David A. Zapico,
AMETEK Chief Executive Officer.
"Cash flow was excellent in the quarter, with operating cash
flow of $247 million, a 24% increase
over the same period of 2015 and at a record level," added Mr.
Zapico.
Electronic Instruments Group (EIG)
In the fourth
quarter 2016, EIG sales decreased 2% to $616.0 million, compared with the fourth quarter
of 2015. On a GAAP basis, EIG operating income was
$141.1 million in the 2016 fourth
quarter. Excluding fourth quarter 2016 adjustments, operating
income was $162.6
million.
"EIG sales were positively impacted by the acquisitions of
Brookfield, ESP/SurgeX, Nu Instruments, and HS Foils. In
addition, our Ultra Precision Technologies business had another
solid quarter to complete an excellent year. Although
year-over-year sales across our oil and gas businesses were down,
those businesses performed in-line with expectations," commented
Mr. Zapico.
Electromechanical Group (EMG)
In the fourth quarter
of 2016, EMG sales decreased 1% to $356.9
million, compared with the fourth quarter of 2015. On
a GAAP basis, fourth quarter 2016 EMG operating income was
$46.7 million. Excluding
fourth quarter 2016 adjustments, EMG operating income was
$63.0 million.
"Overall EMG sales were down slightly in the quarter driven by
foreign currency headwinds, while organic sales were roughly flat
versus the prior year. Our Engineered Materials,
Interconnects and Packaging businesses have stabilized as we had
anticipated," noted Mr. Zapico.
2017
Outlook
"We are
confident as we enter 2017 as we are well positioned to generate
solid earnings growth. Our most challenging end markets have
stabilized. We have taken realignment actions during the
fourth quarter to better position our cost structure and we
continue to see positive results from the implementation of our
Four Growth Strategies," commented Mr. Zapico.
"We anticipate 2017 sales to be up mid-single digits versus
2016, with organic sales up low-single digits. We initiate
our 2017 earnings guidance in the range of $2.34 to $2.46 per diluted share, up 2% to 7%
percent, compared with 2016 adjusted earnings of $2.30 per diluted share," he added.
"We expect first quarter 2017 sales to be roughly flat versus
last year's first quarter and estimate our earnings to be
approximately $0.55 to $0.57 per
diluted share," concluded Mr. Zapico.
Conference Call
AMETEK will webcast its fourth quarter
2016 investor conference call on Tuesday, February 7, 2017,
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
also will be archived at the Investors section of
www.ametek.com.
Corporate Profile
AMETEK is a leading global
manufacturer of electronic instruments and electromechanical
devices with annual sales of approximately $4.0 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 AMETEK's ability to consummate and
successfully integrate future acquisitions; risks associated with
international sales and operations; 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.
(Financial Information Follows)
AMETEK,
Inc.
|
Consolidated
Statement of Income
|
(In thousands,
except per share amounts)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
Net
sales
|
$
972,953
|
|
$
987,983
|
|
$3,840,087
|
|
$3,974,295
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of sales
|
681,084
|
|
666,263
|
|
2,575,220
|
|
2,617,987
|
Selling, general and
administrative
|
118,647
|
|
112,890
|
|
462,970
|
|
448,592
|
Total operating expenses
|
799,731
|
|
779,153
|
|
3,038,190
|
|
3,066,579
|
|
|
|
|
|
|
|
|
Operating
income
|
173,222
|
|
208,830
|
|
801,897
|
|
907,716
|
Other
expenses:
|
|
|
|
|
|
|
|
Interest expense
|
(23,588)
|
|
(22,747)
|
|
(94,304)
|
|
(91,795)
|
Other, net
|
(4,382)
|
|
(3,243)
|
|
(14,490)
|
|
(9,541)
|
Income before income
taxes
|
145,252
|
|
182,840
|
|
693,103
|
|
806,380
|
Provision for income
taxes
|
36,144
|
|
45,999
|
|
180,945
|
|
215,521
|
|
|
|
|
|
|
|
|
Net
income
|
$
109,108
|
|
$
136,841
|
|
$
512,158
|
|
$
590,859
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
0.47
|
|
$
0.57
|
|
$
2.19
|
|
$
2.45
|
Basic earnings per
share
|
$
0.47
|
|
$
0.58
|
|
$
2.20
|
|
$
2.46
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Diluted shares
|
231,191
|
|
238,689
|
|
233,730
|
|
241,586
|
Basic shares
|
230,209
|
|
237,220
|
|
232,593
|
|
239,906
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
0.09
|
|
$
0.09
|
|
$
0.36
|
|
$
0.36
|
|
|
|
|
|
|
|
|
AMETEK,
Inc.
|
Information by
Business Segment
|
(In
thousands)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
Net
sales:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
616,039
|
|
$
628,415
|
|
$2,360,285
|
|
$2,417,192
|
Electromechanical
|
356,914
|
|
359,568
|
|
1,479,802
|
|
1,557,103
|
Consolidated net sales
|
$
972,953
|
|
$
987,983
|
|
$3,840,087
|
|
$3,974,295
|
|
|
|
|
|
|
|
|
Income:
|
|
|
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
141,075
|
|
$
161,659
|
|
$
577,717
|
|
$
639,399
|
Electromechanical
|
46,692
|
|
60,169
|
|
277,873
|
|
318,098
|
Total segment operating income
|
187,767
|
|
221,828
|
|
855,590
|
|
957,497
|
Corporate administrative and
other expenses
|
(14,545)
|
|
(12,998)
|
|
(53,693)
|
|
(49,781)
|
Consolidated operating income
|
$
173,222
|
|
$
208,830
|
|
$
801,897
|
|
$
907,716
|
|
|
|
|
|
|
|
|
AMETEK,
Inc.
|
Condensed
Consolidated Balance Sheet
|
(In
thousands)
|
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
717,259
|
|
$
381,005
|
Receivables, net
|
592,326
|
|
603,295
|
Inventories, net
|
492,104
|
|
514,451
|
Other current
assets
|
126,501
|
|
120,076
|
Total current assets
|
1,928,190
|
|
1,618,827
|
|
|
|
|
Property, plant and
equipment, net
|
473,230
|
|
484,548
|
Goodwill
|
2,818,950
|
|
2,706,633
|
Other intangibles,
investments and other assets
|
1,880,304
|
|
1,850,442
|
Total assets
|
$
7,100,674
|
|
$
6,660,450
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$
278,921
|
|
$
384,924
|
Accounts payable and
accruals
|
645,520
|
|
639,097
|
Total current liabilities
|
924,441
|
|
1,024,021
|
|
|
|
|
Long-term debt,
net
|
2,062,644
|
|
1,553,116
|
Deferred income taxes
and other long-term liabilities
|
857,076
|
|
828,687
|
Stockholders'
equity
|
3,256,513
|
|
3,254,626
|
Total liabilities and stockholders' equity
|
$
7,100,674
|
|
$
6,660,450
|
|
|
|
|
AMETEK,
Inc.
|
Reconciliations of
GAAP to Non-GAAP Financial Measures
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
EIG Segment operating
income (GAAP)
|
|
$
141,075
|
|
$
161,659
|
|
$
577,717
|
|
$
639,399
|
|
|
Realignment
costs
|
|
12,355
|
|
9,267
|
|
12,355
|
|
18,518
|
|
|
Indefinite-lived
intangibles impairment
|
|
9,200
|
|
-
|
|
9,200
|
|
-
|
|
Adjusted EIG Segment
operating income (Non-GAAP)
|
|
$
162,630
|
|
$
170,926
|
|
$
599,272
|
|
$
657,917
|
|
|
|
|
|
|
|
|
|
|
|
|
EMG Segment operating
income (GAAP)
|
|
$
46,692
|
|
$
60,169
|
|
$
277,873
|
|
$
318,098
|
|
|
Realignment
costs
|
|
11,644
|
|
10,764
|
|
11,644
|
|
17,298
|
|
|
Indefinite-lived
intangibles impairment
|
|
4,700
|
|
-
|
|
4,700
|
|
-
|
|
Adjusted EMG Segment
operating income (Non-GAAP)
|
|
$
63,036
|
|
$
70,933
|
|
$
294,217
|
|
$
335,396
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(GAAP)
|
|
$
173,222
|
|
$
208,830
|
|
$
801,897
|
|
$
907,716
|
|
|
Realignment
costs
|
|
25,556
|
|
20,711
|
|
25,556
|
|
36,605
|
|
|
Indefinite-lived
intangibles impairment
|
|
13,900
|
|
-
|
|
13,900
|
|
-
|
|
Adjusted Operating
income (Non-GAAP)
|
|
$
212,678
|
|
$
229,541
|
|
$
841,353
|
|
$
944,321
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
|
$
109,108
|
|
$
136,841
|
|
$
512,158
|
|
$
590,859
|
|
|
Realignment
costs
|
|
25,556
|
|
20,711
|
|
25,556
|
|
36,605
|
|
|
Income tax benefit on
realignment costs
|
|
(8,578)
|
|
(6,843)
|
|
(8,578)
|
|
(11,929)
|
|
|
Indefinite-lived
intangibles impairment
|
|
13,900
|
|
-
|
|
13,900
|
|
-
|
|
|
Income tax benefit on
indefinite-lived intangibles impairment
|
(5,310)
|
|
-
|
|
(5,310)
|
|
-
|
|
Adjusted Net income
(Non-GAAP)
|
|
$
134,676
|
|
$
150,709
|
|
$
537,726
|
|
$
615,535
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
|
$
0.47
|
|
$
0.57
|
|
$
2.19
|
|
$
2.45
|
|
|
Realignment
costs
|
|
0.11
|
|
0.09
|
|
0.11
|
|
0.15
|
|
|
Income tax benefit on
realignment costs
|
|
(0.04)
|
|
(0.03)
|
|
(0.04)
|
|
(0.05)
|
|
|
Indefinite-lived
intangibles impairment
|
|
0.06
|
|
-
|
|
0.06
|
|
-
|
|
|
Income tax benefit on
indefinite-lived intangibles impairment
|
(0.02)
|
|
-
|
|
(0.02)
|
|
-
|
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
|
$
0.58
|
|
$
0.63
|
|
$
2.30
|
|
$
2.55
|
|
|
|
|
|
|
|
|
|
|
|
|
EIG Segment operating
margin (GAAP)
|
|
22.9%
|
|
25.7%
|
|
24.5%
|
|
26.5%
|
|
|
Realignment
costs
|
|
2.0
|
|
1.5
|
|
0.5
|
|
0.7
|
|
|
Indefinite-lived
intangibles impairment
|
|
1.5
|
|
-
|
|
0.4
|
|
-
|
|
Adjusted EIG Segment
operating margin (Non-GAAP)
|
|
26.4%
|
|
27.2%
|
|
25.4%
|
|
27.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
EMG Segment operating
margin (GAAP)
|
|
13.1%
|
|
16.7%
|
|
18.8%
|
|
20.4%
|
|
|
Realignment
costs
|
|
3.3
|
|
3.0
|
|
0.8
|
|
1.1
|
|
|
Indefinite-lived
intangibles impairment
|
|
1.3
|
|
-
|
|
0.3
|
|
-
|
|
Adjusted EMG Segment
operating margin (Non-GAAP)
|
|
17.7%
|
|
19.7%
|
|
19.9%
|
|
21.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
margin (GAAP)
|
|
17.8%
|
|
21.1%
|
|
20.9%
|
|
22.8%
|
|
|
Realignment
costs
|
|
2.6
|
|
2.1
|
|
0.7
|
|
1.0
|
|
|
Indefinite-lived
intangibles impairment
|
|
1.5
|
|
-
|
|
0.3
|
|
-
|
|
Adjusted Operating
income margin (Non-GAAP)
|
|
21.9%
|
|
23.2%
|
|
21.9%
|
|
23.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
(GAAP)
|
|
24.9%
|
|
25.2%
|
|
26.1%
|
|
26.7%
|
|
|
Realignment
costs
|
|
1.4
|
|
0.8
|
|
0.3
|
|
0.3
|
|
|
Indefinite-lived
intangibles impairment
|
|
0.8
|
|
-
|
|
0.2
|
|
-
|
|
Adjusted Effective
tax rate (Non-GAAP)
|
|
27.1%
|
|
26.0%
|
|
26.6%
|
|
27.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
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
Coleman 610-889-5247
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ametek-announces-fourth-quarter-2016-results-300403279.html
SOURCE AMETEK, Inc.