BERWYN, Pa., Oct. 31, 2019 /PRNewswire/ -- AMETEK, Inc. (NYSE:
AME) today announced its financial results for the third quarter
ended September 30, 2019.
AMETEK's third quarter 2019 sales were $1.28 billion, up 7% compared to the third
quarter of 2018. Operating income increased 13% to a record
$301.1 million and operating margins
were 23.6% in the quarter, an increase of 140 basis points over the
prior year.
On a GAAP basis, third quarter earnings were $0.96 per diluted share. Adjusted earnings, which
adds back non-cash, after-tax, acquisition-related intangible
amortization, were $1.06 per diluted
share, a 16% increase over the prior-year's comparable quarter. A
reconciliation of reported GAAP earnings to adjusted earnings is
included in the financial tables accompanying this release and on
the AMETEK website.
"AMETEK generated excellent results in the third quarter," said
David A. Zapico, AMETEK Chairman and
Chief Executive Officer. "We delivered a 16% year-over-year
increase in adjusted earnings on solid organic sales growth,
contributions from recent acquisitions and exceptional operating
performance."
"Cash flow was again excellent, with record operating cash flow
of $330 million in the quarter, a 33%
increase over the same period last year. We continue to utilize our
cash flow to support our strategic acquisition strategy, with
nearly $1.1 billion deployed thus far
in 2019 on the acquisitions of Gatan and Pacific Design
Technologies."
Electronic Instruments Group (EIG)
Sales for EIG in
the third quarter were $815.6
million, up 10% compared to the third quarter of 2018. EIG
operating income for the quarter increased 15% over the prior-year
period to a record $219.5 million.
Operating income margins were 26.9%, up 130 basis points over the
prior year.
"EIG delivered strong results in the third quarter with
impressive sales growth and outstanding operating performance,"
noted Mr. Zapico. "Sales grew 10% on solid organic sales
growth and contributions from the recent acquisitions of Forza,
Telular and Spectro Scientific. EIG also continues to deliver
impressive operating margin expansion through its Operational
Excellence initiatives."
Electromechanical Group (EMG)
EMG sales in the third
quarter were $461.1 million, up 2%
over the same quarter in 2018. Operating income increased 12% to
$103.5 million, and operating income
margins were 22.4%, up 180 basis points over the prior third
quarter.
"EMG's operating performance was also outstanding in the third
quarter," commented Mr. Zapico. "EMG delivered exceptional
operating margin expansion on solid organic sales growth,
contributions from the acquisition of Pacific Design Technologies
and continued efficiency improvements."
2019 Outlook
"Our businesses continue to perform
exceedingly well by executing the AMETEK Growth Model. We remain
focused on investing in our organic growth initiatives, driving
continued cost and asset management improvements, and deploying our
capital on strategic acquisitions to create long-term, sustainable
value," noted Mr. Zapico. "AMETEK's results in the third quarter
and through the first nine months of the year exemplify these
efforts. Given these results, we have again raised our full-year
earnings guidance."
"For all of 2019, we expect overall sales to be up mid to high
single digits on a percentage basis compared to 2018, with strong
contributions from recent acquisitions and organic sales growth of
approximately 3%. Adjusted earnings per diluted share are now
expected to be in the range of $4.12
to $4.14, an increase of 13% over the
prior year. This is an increase from our previous adjusted guidance
range of $4.04 to $4.10 per diluted share," he added.
"Fourth quarter 2019 sales are expected to be up mid-single
digits on a percentage basis compared to the same quarter in 2018.
Adjusted earnings per diluted share are expected to be in the range
of $1.01 to $1.03, up 5% to 7% compared to last year's fourth
quarter," concluded Mr. Zapico.
Conference Call
AMETEK will webcast its third quarter
2019 investor conference call on Thursday, October 31, 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 annual sales of approximately $5.0 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 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)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net
sales
|
$1,276,633
|
|
$1,192,962
|
|
$3,853,736
|
|
$3,574,544
|
|
|
|
|
|
|
|
|
Cost of
sales
|
823,262
|
|
782,994
|
|
2,512,722
|
|
2,351,042
|
Selling, general and
administrative
|
152,315
|
|
144,702
|
|
461,289
|
|
429,982
|
Total operating
expenses
|
975,577
|
|
927,696
|
|
2,974,011
|
|
2,781,024
|
|
|
|
|
|
|
|
|
Operating
income
|
301,056
|
|
265,266
|
|
879,725
|
|
793,520
|
|
|
|
|
|
|
|
|
Interest
expense
|
(21,308)
|
|
(19,391)
|
|
(65,436)
|
|
(61,861)
|
Other expense,
net
|
(5,517)
|
|
(945)
|
|
(12,521)
|
|
(2,684)
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
274,231
|
|
244,930
|
|
801,768
|
|
728,975
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
53,482
|
|
53,717
|
|
161,248
|
|
162,562
|
|
|
|
|
|
|
|
|
Net
income
|
$
220,749
|
|
$
191,213
|
|
$
640,520
|
|
$
566,413
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
0.96
|
|
$
0.82
|
|
$
2.79
|
|
$
2.43
|
Basic earnings per
share
|
$
0.97
|
|
$
0.83
|
|
$
2.82
|
|
$
2.45
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Diluted shares
|
229,560
|
|
233,250
|
|
229,191
|
|
233,171
|
Basic shares
|
228,041
|
|
231,502
|
|
227,493
|
|
231,227
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
0.14
|
|
$
0.14
|
|
$
0.42
|
|
$
0.42
|
AMETEK,
Inc.
|
Information by
Business Segment
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net
sales:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
815,552
|
|
$
742,041
|
|
$2,442,710
|
|
$2,202,925
|
Electromechanical
|
461,081
|
|
450,921
|
|
1,411,026
|
|
1,371,619
|
Consolidated net sales
|
$1,276,633
|
|
$1,192,962
|
|
$3,853,736
|
|
$3,574,544
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
219,451
|
|
$
190,313
|
|
$
635,448
|
|
$
567,503
|
Electromechanical
|
103,451
|
|
92,667
|
|
303,329
|
|
277,919
|
Total segment operating income
|
322,902
|
|
282,980
|
|
938,777
|
|
845,422
|
Corporate administrative
expenses
|
(21,846)
|
|
(17,714)
|
|
(59,052)
|
|
(51,902)
|
Consolidated operating income
|
$
301,056
|
|
$
265,266
|
|
$
879,725
|
|
$
793,520
|
AMETEK,
Inc.
|
Condensed
Consolidated Balance Sheet
|
(In
thousands)
|
|
|
September
30,
|
|
December
31,
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
735,376
|
|
$
353,975
|
Receivables, net
|
761,961
|
|
732,839
|
Inventories, net
|
623,675
|
|
624,744
|
Other current
assets
|
151,172
|
|
124,586
|
Total current assets
|
2,272,184
|
|
1,836,144
|
|
|
|
|
Property, plant and
equipment, net
|
537,157
|
|
554,130
|
Right of use asset,
net
|
174,438
|
|
-
|
Goodwill
|
3,668,445
|
|
3,612,033
|
Other intangibles,
investments and other assets
|
2,567,485
|
|
2,659,981
|
Total assets
|
$
9,219,709
|
|
$
8,662,288
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$
199,533
|
|
$
358,876
|
Accounts payable and
accruals
|
910,986
|
|
899,828
|
Total current liabilities
|
1,110,519
|
|
1,258,704
|
|
|
|
|
Long-term debt,
net
|
2,229,252
|
|
2,273,837
|
Deferred income taxes
and other long-term liabilities
|
1,013,973
|
|
887,825
|
Stockholders'
equity
|
4,865,965
|
|
4,241,922
|
Total liabilities and stockholders' equity
|
$
9,219,709
|
|
$
8,662,288
|
AMETEK,
Inc.
|
Reconciliations of
GAAP to Non-GAAP Financial Measures
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
Earnings
Per Share
|
|
Forecasted
Diluted Earnings
Per Share
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
|
$
0.96
|
|
$
0.82
|
|
$
0.89
|
|
$
0.91
|
|
$
3.68
|
|
$
3.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax amortization of
acquisition-related intangible assets
|
|
0.13
|
|
0.12
|
|
0.16
|
|
0.16
|
|
0.58
|
|
0.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit on
amortization of acquisition-related intangible assets
|
|
(0.03)
|
|
(0.03)
|
|
(0.04)
|
|
(0.04)
|
|
(0.14)
|
|
(0.14)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted
earnings per share
(Non-GAAP)
|
|
$
1.06
|
|
$
0.91
|
|
$
1.01
|
|
$
1.03
|
|
$
4.12
|
|
$
4.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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-record-third-quarter-financial-results-and-raises-2019-guidance-300948614.html
SOURCE AMETEK, Inc.