BERWYN, Pa., Feb. 5, 2020 /PRNewswire/ -- AMETEK, Inc.
(NYSE: AME) today announced its financial results for the fourth
quarter and full year ended December 31,
2019.
AMETEK's fourth quarter 2019 sales were a record $1.30 billion, up 3% compared to the fourth
quarter of 2018. Operating income increased 6% to $297.7 million and operating margins expanded to
22.8%, an increase of 60 basis points over the prior-year
period.
On a GAAP basis, fourth quarter earnings per diluted share were
$0.96. Adjusted earnings, which adds
back non-cash, after-tax, acquisition-related intangible
amortization, were $1.08 per diluted
share, a 13% increase over the comparable quarter in 2018. 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 a strong fourth
quarter," commented David A. Zapico, AMETEK Chairman and
Chief Executive Officer. "We achieved a record level of sales,
drove excellent operating margin expansion and delivered 13%
earnings growth in the quarter. Additionally, our businesses
continue to generate excellent levels of cash flow, with operating
cash flow in the fourth quarter increasing to a record $342.2 million, up 16% over the same period in
2018."
"We also continued to strengthen our portfolio, deploying nearly
$1.1 billion in 2019 on the
acquisitions of Gatan and PDT, and announcing a definitive
agreement to divest our Reading Alloys business," added Mr.
Zapico.
For the full year, AMETEK's sales were a record $5.2 billion, an increase of 6% over 2018.
Operating income was a record $1.18
billion, up 9%, and operating income margins were 22.8%,
expanding 60 basis points over last year's results.
On a GAAP basis, full year earnings were $3.75 per diluted share. Full year adjusted
earnings were $4.19 per share, an
increase of 14% over 2018's comparable adjusted earnings of
$3.66 per share.
Electronic Instruments Group (EIG)
Sales for EIG in
the fourth quarter were a record $880.2
million, up 7% over the same period in 2018. EIG fourth
quarter operating income increased 7% year-over-year to a record
$229.9 million and operating income
margins were 26.1%, up 10 basis points over the prior year.
"EIG finished the year with strong results in the fourth
quarter. Solid sales growth driven by the acquisitions of Telular,
Spectro Scientific and Gatan, coupled with continued execution of
Operational Excellence initiatives allowed EIG to deliver strong
operating performance," noted Mr. Zapico.
Electromechanical Group (EMG)
In the fourth quarter,
EMG sales were $424.7 million, down
5% compared to the fourth quarter of 2018. EMG operating income for
the quarter was $84.6 million and
operating income margins were 19.9%, an increase of 60 basis points
over 2018's fourth quarter.
"EMG delivered solid operating performance in the fourth quarter
with excellent operating margin expansion driven by our Operational
Excellence initiatives," commented Mr. Zapico.
2020 Outlook
"While uncertainties remain in the global
economy, the AMETEK Growth Model provides our businesses with the
operational agility to adapt to changing economic environments. We
are poised to deliver another year of solid growth and strong
operating performance through continued productivity and
asset-management improvements," noted Mr. Zapico.
"Given our robust cash flows and financial strength, we are
well-positioned to continue investing in our growth initiatives and
acquiring companies in attractive, niche markets to deliver
long-term, sustainable success for our shareholders."
"For 2020, we expect overall sales to be up low single digits on
a percentage basis compared to 2019. Organic sales for the year are
expected to be roughly flat versus the prior year. Adjusted
earnings per diluted share are expected to be in the range of
$4.24 to $4.38, an increase of 1% to 5% over the prior
year's comparable basis. Our full year guidance assumes the Reading
Alloys business is divested in the first quarter and excludes the
gain on the anticipated sale," he added.
"For the first quarter of 2020, overall sales are expected to be
up low single digits versus the first quarter of 2019. Adjusted
earnings for the first quarter are anticipated to be in the range
of $1.01 to $1.04 per share, up 1% to 4% over the prior year
comparable basis," concluded Mr. Zapico.
Conference Call
AMETEK will webcast its fourth quarter
2019 investor conference call on Wednesday,
February 5, 2020, 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, 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
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net
sales
|
$1,304,821
|
|
$1,271,328
|
|
$5,158,557
|
|
$4,845,872
|
|
|
|
|
|
|
|
|
Cost of
sales
|
858,175
|
|
835,268
|
|
3,370,897
|
|
3,186,310
|
Selling, general and
administrative
|
148,991
|
|
154,040
|
|
610,280
|
|
584,022
|
Total operating
expenses
|
1,007,166
|
|
989,308
|
|
3,981,177
|
|
3,770,332
|
|
|
|
|
|
|
|
|
Operating
income
|
297,655
|
|
282,020
|
|
1,177,380
|
|
1,075,540
|
|
|
|
|
|
|
|
|
Interest
expense
|
(23,045)
|
|
(20,319)
|
|
(88,481)
|
|
(82,180)
|
Other expense,
net
|
(6,630)
|
|
(2,931)
|
|
(19,151)
|
|
(5,615)
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
267,980
|
|
258,770
|
|
1,069,748
|
|
987,745
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
47,203
|
|
47,250
|
|
208,451
|
|
209,812
|
|
|
|
|
|
|
|
|
Net
income
|
$
220,777
|
|
$
211,520
|
|
$
861,297
|
|
$
777,933
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
0.96
|
|
$
0.91
|
|
$
3.75
|
|
$
3.34
|
Basic earnings per
share
|
$
0.97
|
|
$
0.92
|
|
$
3.78
|
|
$
3.37
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Diluted shares
|
230,006
|
|
231,333
|
|
229,395
|
|
232,712
|
Basic shares
|
228,557
|
|
229,611
|
|
227,759
|
|
230,823
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
0.14
|
|
$
0.14
|
|
$
0.56
|
|
$
0.56
|
AMETEK,
Inc.
|
Information by
Business Segment
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net
sales:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
880,171
|
|
$
826,034
|
|
$3,322,881
|
|
$3,028,959
|
Electromechanical
|
424,650
|
|
445,294
|
|
1,835,676
|
|
1,816,913
|
Consolidated net sales
|
$1,304,821
|
|
$1,271,328
|
|
$5,158,557
|
|
$4,845,872
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
229,859
|
|
$
214,641
|
|
$
865,307
|
|
$
782,144
|
Electromechanical
|
84,602
|
|
85,846
|
|
387,931
|
|
363,765
|
Total segment operating income
|
314,461
|
|
300,487
|
|
1,253,238
|
|
1,145,909
|
Corporate administrative
expenses
|
(16,806)
|
|
(18,467)
|
|
(75,858)
|
|
(70,369)
|
Consolidated operating income
|
$
297,655
|
|
$
282,020
|
|
$1,177,380
|
|
$1,075,540
|
AMETEK,
Inc.
|
Condensed
Consolidated Balance Sheet
|
(In
thousands)
|
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
393,030
|
|
$
353,975
|
Receivables, net
|
744,760
|
|
732,839
|
Inventories, net
|
624,567
|
|
624,744
|
Other current
assets
|
263,414
|
|
124,586
|
Total current assets
|
2,025,771
|
|
1,836,144
|
|
|
|
|
Property, plant and
equipment, net
|
548,908
|
|
554,130
|
Right of use asset,
net
|
179,679
|
|
-
|
Goodwill
|
4,047,539
|
|
3,612,033
|
Other intangibles,
investments and other assets
|
3,042,662
|
|
2,659,981
|
Total assets
|
$
9,844,559
|
|
$
8,662,288
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$
497,449
|
|
$
358,876
|
Accounts payable and
accruals
|
928,409
|
|
899,828
|
Total current liabilities
|
1,425,858
|
|
1,258,704
|
|
|
|
|
Long-term debt,
net
|
2,271,292
|
|
2,273,837
|
Deferred income taxes
and other long-term liabilities
|
1,031,917
|
|
887,825
|
Stockholders'
equity
|
5,115,492
|
|
4,241,922
|
Total liabilities and stockholders' equity
|
$
9,844,559
|
|
$
8,662,288
|
AMETEK,
Inc.
|
Reconciliations of
GAAP to Non-GAAP Financial Measures
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
Per Share
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
$
0.96
|
|
$
0.91
|
|
$
3.75
|
|
$
3.34
|
|
Pretax amortization
of acquisition-related
intangible assets
|
0.16
|
|
0.13
|
|
0.58
|
|
0.49
|
|
Income tax benefit on
amortization of acquisition-
related intangible assets
|
(0.04)
|
|
(0.03)
|
|
(0.14)
|
|
(0.12)
|
|
Net deferred tax
revaluation due to Tax Reform
|
-
|
|
(0.01)
|
|
-
|
|
(0.01)
|
|
Deemed repatriation
of foreign earnings due to
Tax Reform
|
-
|
|
(0.04)
|
|
-
|
|
(0.04)
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
$
1.08
|
|
$
0.96
|
|
$
4.19
|
|
$
3.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forecasted
Diluted Earnings Per Share (1)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
March
31,
|
|
December
31,
|
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
$
0.88
|
|
$
0.91
|
|
$
3.72
|
|
$
3.86
|
|
Pretax amortization
of acquisition-related
intangible assets
|
0.17
|
|
0.17
|
|
0.69
|
|
0.69
|
|
Income tax benefit on
amortization of acquisition-
related intangible assets
|
(0.04)
|
|
(0.04)
|
|
(0.17)
|
|
(0.17)
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
$
1.01
|
|
$
1.04
|
|
$
4.24
|
|
$
4.38
|
|
|
|
|
|
|
|
|
|
(1) Excludes the gain
associated with the anticipated sale of Reading Alloys
business.
|
|
|
|
|
|
|
|
|
|
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.
|
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SOURCE AMETEK, Inc.