BERWYN, Pa., Feb. 5, 2019 /PRNewswire/ -- AMETEK, Inc. (NYSE:
AME) today announced its financial results for the fourth quarter
and full year ended December 31,
2018.
AMETEK's fourth quarter 2018 sales were a record $1.27 billion, up 11% compared to the fourth
quarter of 2017, with organic sales growth of 5%. Operating income
increased 14% to a record $282.0 million, and operating margins
expanded to 22.2%, up 50 basis points over the prior year's
adjusted results.
On a GAAP basis, fourth quarter earnings per diluted share were
$0.91. Excluding an after-tax gain of
$11.8 million, or $0.05 per diluted share, related to the
finalization of the impact of the 2017 Tax Cuts and Jobs Act,
fourth quarter earnings were $0.86
per diluted share, an increase of 23% over the prior year's
adjusted earnings. A reconciliation of reported GAAP results to
adjusted results is included in the financial tables accompanying
this release and on the AMETEK website.
"AMETEK completed an outstanding year with record results in the
fourth quarter," said David A.
Zapico, AMETEK Chairman and Chief Executive Officer. "Our
businesses again delivered strong organic sales growth and
outstanding operating performance driving robust sales and earnings
growth in the quarter."
"Additionally, our businesses continue to generate excellent
levels of cash flow with operating cash flow in the fourth quarter
a record $296 million," added Mr.
Zapico. "We remain focused on deploying our free cash flow on
strategic acquisitions having deployed a record $1.1 billion of capital on acquisitions in 2018,
including $750 million on three
acquisitions in the fourth quarter. We also deployed $364 million on share repurchases in the
quarter."
For the full year, AMETEK's sales were a record $4.8 billion, an increase of 13% over 2017, and
organic sales growth was 7%. Operating income in 2018 was a record
$1.08 billion, up 16%, and operating
income margins were 22.2%, expanding 70 basis points over 2017's
adjusted results.
On a GAAP basis, earnings were $3.34 per diluted share. Excluding the after-tax
gain of $0.05 per diluted share, 2018
earnings were $3.29 per diluted
share, a 26% increase over 2017's adjusted earnings.
Electronic Instruments Group (EIG)
Fourth quarter EIG
sales were a record $826.0 million,
up 11% over the fourth quarter of 2017. EIG operating income was a
record $214.6 million in the quarter,
up 11% over the prior-year period's adjusted results, and operating
margins were 26.0%.
"EIG finished the year with an outstanding fourth quarter,
delivering excellent sales and operating income growth. In addition
to solid organic growth and excellent operating performance, we
completed five acquisitions across EIG in 2018," noted Mr.
Zapico.
Electromechanical Group (EMG)
EMG sales in the fourth
quarter were $445.3 million, up 11%
over the same quarter in 2017. EMG's fourth quarter operating
income was $85.8 million, an 18%
increase, and operating margins were 19.3%, expanding 110 basis
points over the prior year's adjusted results.
"EMG also capped the year with exceptional results in the fourth
quarter. Sales grew by double digits on strong, broad-based organic
sales growth and contributions from the acquisition of FMH
Aerospace. EMG continues to deliver excellent results through our
Operational Excellence initiatives, which resulted in a sharp
increase in operating income during the quarter," commented Mr.
Zapico.
2019 Outlook
Going forward, AMETEK will report and
provide guidance on an adjusted diluted earnings per share basis
that adds back non-cash, after-tax, acquisition related intangible
amortization. The company believes this non-GAAP measure provides
investors with a better understanding of its cash flows and core
operating results and aligns more comparably to AMETEK's
acquisitive peer companies. A reconciliation of our GAAP to
non-GAAP results and guidance will be included in financial tables
accompanying our press releases.
"Our businesses delivered outstanding performance in 2018,
positioning us well for continued success in 2019. The AMETEK
Growth Model, which combines our four growth strategies of
operational excellence, new product development, global and market
expansion, and strategic acquisitions, along with a disciplined
focus on cash generation and capital deployment continues to
provide a scalable platform to drive long-term, sustainable
growth," noted Mr. Zapico.
"In 2019, we expect overall sales to be up high single digits on
a percentage basis compared to 2018, driven by contributions from
recent acquisitions, and 3% to 5% organic sales growth. On a GAAP
basis, full year earnings per diluted share are expected to be in
the range of $3.52 to $3.62. Adjusted earnings per diluted share are
expected to be in the range of $3.95
to $4.05, an increase of 8% to 11%
over the prior year's comparable basis," he added.
"For the first quarter of 2019, sales are expected to be up high
single digits on a percentage basis compared to the prior-year. On
a GAAP basis, earnings per diluted share are expected to be in the
range of $0.84 to $0.86. Adjusted earnings per diluted share are
anticipated to be in the range of $0.95 to $0.97, up
9% to 11% over the prior year comparable basis," concluded Mr.
Zapico.
Conference Call
AMETEK will webcast its fourth quarter
2018 investor conference call on Tuesday, February 5, 2019,
beginning at 8:30 AM ET. The live
audio webcast will be available and later archived in the Investors
section of www.ametek.com.
Corporate Profile
AMETEK is a leading global
manufacturer of electronic instruments and electromechanical
devices with sales of approximately $5.0
billion. AMETEK's growth model 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.
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)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
|
|
Net
sales
|
$1,271,328
|
|
$1,143,085
|
|
$4,845,872
|
|
$4,300,170
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of sales
|
835,268
|
|
769,650
|
|
3,186,310
|
|
2,861,370
|
Selling, general and
administrative
|
154,040
|
|
146,849
|
|
584,022
|
|
535,180
|
Total operating expenses
|
989,308
|
|
916,499
|
|
3,770,332
|
|
3,396,550
|
|
|
|
|
|
|
|
|
Operating
income
|
282,020
|
|
226,586
|
|
1,075,540
|
|
903,620
|
Other
expenses:
|
|
|
|
|
|
|
|
Interest expense
|
(20,319)
|
|
(24,252)
|
|
(82,180)
|
|
(98,029)
|
Other, net
|
(2,931)
|
|
(4,809)
|
|
(5,615)
|
|
(8,862)
|
Income before income
taxes
|
258,770
|
|
197,525
|
|
987,745
|
|
796,729
|
Provision (benefit)
for income taxes
|
47,250
|
|
(41,007)
|
|
209,812
|
|
115,259
|
|
|
|
|
|
|
|
|
Net
income
|
$
211,520
|
|
$
238,532
|
|
$
777,933
|
|
$
681,470
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
0.91
|
|
$
1.03
|
|
$
3.34
|
|
$
2.94
|
Basic earnings per
share
|
$
0.92
|
|
$
1.03
|
|
$
3.37
|
|
$
2.96
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Diluted shares
|
231,333
|
|
232,534
|
|
232,712
|
|
231,845
|
Basic shares
|
229,611
|
|
230,770
|
|
230,823
|
|
230,229
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
0.14
|
|
$
0.09
|
|
$
0.56
|
|
$
0.36
|
AMETEK,
Inc.
|
Information by
Business Segment
|
(In
thousands)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
|
|
Net
sales:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
826,034
|
|
$
741,516
|
|
$3,028,959
|
|
$2,690,554
|
Electromechanical
|
445,294
|
|
401,569
|
|
1,816,913
|
|
1,609,616
|
Consolidated net sales
|
$1,271,328
|
|
$1,143,085
|
|
$4,845,872
|
|
$4,300,170
|
|
|
|
|
|
|
|
|
Income:
|
|
|
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
214,641
|
|
$
189,642
|
|
$
782,144
|
|
$
671,646
|
Electromechanical
|
85,846
|
|
60,758
|
|
363,765
|
|
306,779
|
Total segment operating income
|
300,487
|
|
250,400
|
|
1,145,909
|
|
978,425
|
Corporate administrative and
other expenses
|
(18,467)
|
|
(23,814)
|
|
(70,369)
|
|
(74,805)
|
Consolidated operating income
|
$
282,020
|
|
$
226,586
|
|
$1,075,540
|
|
$
903,620
|
AMETEK,
Inc.
|
Condensed
Consolidated Balance Sheet
|
(In
thousands)
|
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
353,975
|
|
$
646,300
|
Receivables, net
|
732,839
|
|
668,176
|
Inventories, net
|
624,744
|
|
540,504
|
Other current
assets
|
124,586
|
|
79,675
|
Total current assets
|
1,836,144
|
|
1,934,655
|
|
|
|
|
Property, plant and
equipment, net
|
554,130
|
|
493,296
|
Goodwill
|
3,612,033
|
|
3,115,619
|
Other intangibles,
investments and other assets
|
2,659,981
|
|
2,252,494
|
Total assets
|
$
8,662,288
|
|
$
7,796,064
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$
358,876
|
|
$
308,123
|
Accounts payable and
accruals
|
899,828
|
|
830,540
|
Total current liabilities
|
1,258,704
|
|
1,138,663
|
|
|
|
|
Long-term debt,
net
|
2,273,837
|
|
1,866,166
|
Deferred income taxes
and other long-term liabilities
|
887,825
|
|
763,602
|
Stockholders'
equity
|
4,241,922
|
|
4,027,633
|
Total liabilities and stockholders' equity
|
$
8,662,288
|
|
$
7,796,064
|
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,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
EIG Segment operating
income (GAAP)
|
|
$
214,641
|
|
$
189,642
|
|
$
782,144
|
|
$ 671,646
|
|
Realignment
costs
|
|
-
|
|
4,534
|
|
-
|
|
4,534
|
Adjusted EIG Segment
operating income (Non-GAAP)
|
|
$
214,641
|
|
$
194,176
|
|
$
782,144
|
|
$ 676,180
|
|
|
|
|
|
|
|
|
|
|
EMG Segment operating
income (GAAP)
|
|
$
85,846
|
|
$
60,758
|
|
$
363,765
|
|
$ 306,779
|
|
Realignment
costs
|
|
-
|
|
12,252
|
|
-
|
|
12,252
|
Adjusted EMG Segment
operating income (Non-GAAP)
|
|
$
85,846
|
|
$
73,010
|
|
$
363,765
|
|
$ 319,031
|
|
|
|
|
|
|
|
|
|
|
Operating income
(GAAP)
|
|
$
282,020
|
|
$
226,586
|
|
$
1,075,540
|
|
$ 903,620
|
|
Realignment
costs
|
|
-
|
|
16,786
|
|
-
|
|
16,786
|
|
Charitable
donations
|
|
-
|
|
5,000
|
|
-
|
|
5,000
|
Adjusted Operating
income (Non-GAAP)
|
|
$
282,020
|
|
$
248,372
|
|
$
1,075,540
|
|
$ 925,406
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes (GAAP)
|
|
$
47,250
|
|
$
(41,007)
|
|
$
209,812
|
|
$ 115,259
|
|
Income tax benefit on
realignment costs
|
|
-
|
|
3,821
|
|
-
|
|
3,821
|
|
Income tax benefit on
charitable donations
|
|
-
|
|
1,885
|
|
-
|
|
1,885
|
|
Net deferred tax
revaluation due to Tax Reform(1)
|
|
1,422
|
|
185,781
|
|
1,422
|
|
185,781
|
|
Deemed repatriation
of foreign earnings due to Tax Reform(1)
|
10,398
|
|
(94,191)
|
|
10,398
|
|
(94,191)
|
Adjusted provision
for income taxes (Non-GAAP)
|
|
$
59,070
|
|
$
56,289
|
|
$
221,632
|
|
$ 212,555
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
|
$
211,520
|
|
$
238,532
|
|
$
777,933
|
|
$ 681,470
|
|
Realignment
costs
|
|
-
|
|
12,965
|
|
-
|
|
12,965
|
|
Charitable
donations
|
|
-
|
|
3,115
|
|
-
|
|
3,115
|
|
Net deferred tax
revaluation due to Tax Reform(1)
|
|
(1,422)
|
|
(185,781)
|
|
(1,422)
|
|
(185,781)
|
|
Deemed repatriation
of foreign earnings due to Tax Reform(1)
|
(10,398)
|
|
94,191
|
|
(10,398)
|
|
94,191
|
Adjusted Net income
(Non-GAAP)
|
|
$
199,700
|
|
$
163,022
|
|
$
766,113
|
|
$ 605,960
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
|
$
0.91
|
|
$
1.03
|
|
$
3.34
|
|
$
2.94
|
|
Realignment
costs
|
|
-
|
|
0.07
|
|
-
|
|
0.07
|
|
Income tax benefit on
realignment costs
|
|
-
|
|
(0.02)
|
|
-
|
|
(0.02)
|
|
Charitable
donations
|
|
-
|
|
0.02
|
|
-
|
|
0.02
|
|
Income tax benefit on
charitable donations
|
|
-
|
|
(0.01)
|
|
-
|
|
(0.01)
|
|
Net deferred tax
revaluation due to Tax Reform(1)
|
|
(0.01)
|
|
(0.80)
|
|
(0.01)
|
|
(0.80)
|
|
Deemed repatriation
of foreign earnings due to Tax Reform(1)
|
(0.04)
|
|
0.41
|
|
(0.04)
|
|
0.41
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
|
$
0.86
|
|
$
0.70
|
|
$
3.29
|
|
$
2.61
|
|
|
|
|
|
|
|
|
|
|
EIG Segment operating
margin (GAAP)
|
|
26.0%
|
|
25.6%
|
|
25.8%
|
|
25.0%
|
|
Realignment
costs
|
|
-
|
|
0.6
|
|
-
|
|
0.1
|
Adjusted EIG Segment
operating margin (Non-GAAP)
|
|
26.0%
|
|
26.2%
|
|
25.8%
|
|
25.1%
|
|
|
|
|
|
|
|
|
|
|
EMG Segment operating
margin (GAAP)
|
|
19.3%
|
|
15.1%
|
|
20.0%
|
|
19.1%
|
|
Realignment
costs
|
|
-
|
|
3.1
|
|
-
|
|
0.8
|
Adjusted EMG Segment
operating margin (Non-GAAP)
|
|
19.3%
|
|
18.2%
|
|
20.0%
|
|
19.9%
|
|
|
|
|
|
|
|
|
|
|
Operating income
margin (GAAP)
|
|
22.2%
|
|
19.8%
|
|
22.2%
|
|
21.0%
|
|
Realignment
costs
|
|
-
|
|
1.5
|
|
-
|
|
0.4
|
|
Charitable
donations
|
|
-
|
|
0.4
|
|
-
|
|
0.1
|
Adjusted Operating
income margin (Non-GAAP)
|
|
22.2%
|
|
21.7%
|
|
22.2%
|
|
21.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
(GAAP)
|
|
18.3%
|
|
(20.8)%
|
|
21.2%
|
|
14.5%
|
|
Realignment
costs
|
|
-
|
|
(0.2)
|
|
-
|
|
(0.1)
|
|
Charitable
donations
|
|
-
|
|
0.3
|
|
-
|
|
0.1
|
|
Net deferred tax
revaluation due to Tax Reform(1)
|
|
0.5
|
|
94.1
|
|
0.1
|
|
23.3
|
|
Deemed repatriation
of foreign earnings due to
|
|
|
|
|
|
|
|
|
|
Tax
Reform(1)
|
|
4.0
|
|
(47.7)
|
|
1.1
|
|
(11.8)
|
Adjusted Effective
tax rate (Non-GAAP)
|
|
22.8%
|
|
25.7%
|
|
22.4%
|
|
26.0%
|
AMETEK,
Inc.
|
|
Reconciliations of
GAAP to Non-GAAP Financial Measures
|
|
(In thousands,
except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forecasted
Diluted Earnings Per Share
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
Low
|
|
High
|
|
|
|
Low
|
|
High
|
|
|
|
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
|
$
0.84
|
|
$
0.86
|
|
$ 0.78
|
|
$
3.52
|
|
$
3.62
|
|
$ 3.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax amortization of
acquisition-related
intangible assets
|
|
0.14
|
|
0.14
|
|
0.12
|
|
0.57
|
|
0.57
|
|
0.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit on
amortization of acquisition-
related intangible assets
|
|
(0.03)
|
|
(0.03)
|
|
(0.03)
|
|
(0.14)
|
|
(0.14)
|
|
(0.12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net deferred tax
revaluation due to Tax Reform (1)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deemed repatriation of
foreign earnings due to
Tax Reform (1)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.04)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
|
$
0.95
|
|
$
0.97
|
|
$ 0.87
|
|
$
3.95
|
|
$
4.05
|
|
$ 3.66
|
|
|
|
|
(1) - These amounts,
which are based on reasonable estimates, will require further
adjustments as additional guidance from the U.S. Department of
Treasury is provided, the Company's assumptions change, or as
further information and interpretations become
available.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
View original
content:http://www.prnewswire.com/news-releases/ametek-announces-record-fourth-quarter-and-full-year-results-300789447.html
SOURCE AMETEK, Inc.