BERWYN, Pa., Aug. 4, 2020 /PRNewswire/ -- AMETEK, Inc. (NYSE:
AME) today announced its financial results for the second quarter
ended June 30, 2020.
AMETEK's second quarter 2020 sales were $1.01 billion, a 22% decline compared to the
second quarter of 2019. Operating income in the quarter was
$227.0 million and operating margins
were 22.4%.
On a GAAP basis, second quarter earnings per diluted share were
$0.72. Adjusted earnings were
$0.84 per diluted share. Adjusted
earnings adds back non-cash, after-tax, acquisition-related
intangible amortization of $0.12 per
diluted share. A reconciliation of reported GAAP results to
adjusted results is included in the financial tables accompanying
this release and on the AMETEK website.
"As we manage through the COVID-19 pandemic we continue to focus
on the safety and well-being of all AMETEK colleagues. This remains
our highest priority," said David A. Zapico, AMETEK
Chairman and Chief Executive Officer.
"While our businesses were impacted by the pandemic during the
second quarter, AMETEK colleagues rose to the challenge and
delivered strong performance that exceeded expectations," added Mr.
Zapico. "Our businesses were able to mitigate the impact of sales
weakness with impressive operating execution resulting in record
adjusted EBITDA margins at 28.6%."
"We further bolstered our already strong balance sheet and
liquidity position with outstanding cash generation," Mr. Zapico
continued. "Operating cash flow in the second quarter was
$315 million, up 28% compared to the
prior-year period, and free cash flow conversion was 183% of net
income. AMETEK remains well positioned to continue to invest in our
growth initiatives during this economic downturn while being
positioned to deploy meaningful capital on acquisitions."
Electronic Instruments Group (EIG)
EIG sales in the second quarter were $647.9
million, down 21% from the same quarter in 2019. Operating
income for EIG in the quarter was $159.6
million and operating income margins were 24.6%.
"EIG sales in the quarter were impacted by the global pandemic,"
noted Mr. Zapico. "However, our businesses delivered strong
operating performance in the face of these difficult market
conditions with excellent operating margins."
Electromechanical Group (EMG)
Second quarter sales for EMG were $364.0
million, down 22% versus the same quarter last year. EMG's
second quarter operating income was $84.3
million and operating income margins were a record
23.2%.
"EMG drove outstanding operating performance in the quarter,
despite lower sales due to the global pandemic. Through continued
execution of Operational Excellence initiatives, EMG expanded
operating margins by an impressive 170 basis points over last
year's second quarter," commented Mr. Zapico.
2020 Outlook
"AMETEK navigated extremely well through a challenging quarter. Our
flexible and proven operating model enabled us to deliver solid
results while positioning us for robust growth coming out of the
downturn. We have confidence in our ability to react to changing
end market dynamics and deliver strong performance while continuing
to invest in our long-term strategic initiatives," noted Mr.
Zapico.
"Given the on-going uncertainty related to the spread of
COVID-19 and the effect that may have across economies, we will not
be providing guidance at this time," added Mr. Zapico. "We will
provide forward guidance when visibility improves."
Conference Call
AMETEK will webcast its second quarter 2020 investor conference
call on Tuesday, August 4, 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.
About AMETEK
AMETEK is a leading global manufacturer of electronic instruments
and electromechanical devices with 2019 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 risks related to COVID-19 and its
potential impact on AMETEK's operations, supply chain, and demand
across key end markets; AMETEK's ability to consummate and
successfully integrate future acquisitions; risks 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
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net
sales
|
$1,011,922
|
|
$1,289,412
|
|
$2,214,140
|
|
$2,577,103
|
|
|
|
|
|
|
|
|
Cost of
sales
|
669,195
|
|
838,153
|
|
1,493,842
|
|
1,689,460
|
Selling, general and
administrative
|
115,737
|
|
155,849
|
|
261,268
|
|
308,974
|
Total operating
expenses
|
784,932
|
|
994,002
|
|
1,755,110
|
|
1,998,434
|
|
|
|
|
|
|
|
|
Operating
income
|
226,990
|
|
295,410
|
|
459,030
|
|
578,669
|
|
|
|
|
|
|
|
|
Interest
expense
|
(22,669)
|
|
(21,475)
|
|
(45,410)
|
|
(44,128)
|
Other income
(expense), net
|
2,131
|
|
(3,336)
|
|
143,907
|
|
(7,004)
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
206,452
|
|
270,599
|
|
557,527
|
|
527,537
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
40,235
|
|
55,096
|
|
110,694
|
|
107,766
|
|
|
|
|
|
|
|
|
Net
income
|
$
166,217
|
|
$
215,503
|
|
$
446,833
|
|
$
419,771
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
0.72
|
|
$
0.94
|
|
$
1.94
|
|
$
1.83
|
Basic earnings per
share
|
$
0.73
|
|
$
0.95
|
|
$
1.95
|
|
$
1.85
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Diluted shares
|
230,381
|
|
229,328
|
|
230,626
|
|
229,007
|
Basic shares
|
229,225
|
|
227,577
|
|
229,094
|
|
227,219
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
0.18
|
|
$
0.14
|
|
$
0.36
|
|
$
0.28
|
AMETEK,
Inc.
|
Information by
Business Segment
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net
sales:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
647,882
|
|
$
820,247
|
|
$1,422,107
|
|
$1,627,158
|
Electromechanical
|
364,040
|
|
469,165
|
|
792,033
|
|
949,945
|
Consolidated net sales
|
$1,011,922
|
|
$1,289,412
|
|
$2,214,140
|
|
$2,577,103
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
159,593
|
|
$
212,913
|
|
$
330,864
|
|
$
415,997
|
Electromechanical
|
84,287
|
|
101,065
|
|
160,851
|
|
199,878
|
Total segment operating income
|
243,880
|
|
313,978
|
|
491,715
|
|
615,875
|
Corporate administrative
expenses
|
(16,890)
|
|
(18,568)
|
|
(32,685)
|
|
(37,206)
|
Consolidated operating income
|
$
226,990
|
|
$
295,410
|
|
$
459,030
|
|
$
578,669
|
AMETEK,
Inc.
|
Condensed
Consolidated Balance Sheet
|
(In
thousands)
|
|
|
June
30,
|
|
December
31,
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
1,130,975
|
|
$
393,030
|
Receivables, net
|
620,160
|
|
744,760
|
Inventories, net
|
621,518
|
|
624,567
|
Other current
assets
|
144,482
|
|
263,414
|
Total current assets
|
2,517,135
|
|
2,025,771
|
|
|
|
|
Property, plant and
equipment, net
|
516,575
|
|
548,908
|
Right of use asset,
net
|
164,216
|
|
179,679
|
Goodwill
|
4,155,636
|
|
4,047,539
|
Other intangibles,
investments and other assets
|
2,957,610
|
|
3,042,662
|
Total assets
|
$10,311,172
|
|
$
9,844,559
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$
115,880
|
|
$
497,449
|
Accounts payable and
accruals
|
901,573
|
|
928,409
|
Total current liabilities
|
1,017,453
|
|
1,425,858
|
|
|
|
|
Long-term debt,
net
|
2,753,254
|
|
2,271,292
|
Deferred income taxes
and other long-term liabilities
|
1,054,025
|
|
1,031,917
|
Stockholders'
equity
|
5,486,440
|
|
5,115,492
|
Total liabilities and stockholders' equity
|
$10,311,172
|
|
$
9,844,559
|
AMETEK,
Inc.
|
Reconciliations of
GAAP to Non-GAAP Financial Measures
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
EBITDA
|
|
|
|
|
|
Three Months
Ended
|
|
|
(In
millions)
|
June 30,
2020
|
|
|
Net income
|
$
166.2
|
|
|
Add
(deduct):
|
|
|
|
|
Interest
expense
|
22.7
|
|
|
|
Interest
income
|
(0.7)
|
|
|
|
Income
taxes
|
40.2
|
|
|
|
Depreciation
|
25.0
|
|
|
|
Amortization
|
36.3
|
|
|
EBITDA
|
$
289.7
|
|
|
|
|
|
|
|
EBITDA Margin (EBITDA
divided by net sales)
|
28.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FREE CASH
FLOW
|
|
|
|
|
|
Three Months
Ended
|
|
|
(In
millions)
|
June 30,
2020
|
|
|
Cash provided by
operating activities
|
$
314.6
|
|
|
Deduct: Capital
expenditures
|
(10.1)
|
|
|
Free cash
flow
|
$
304.5
|
|
|
|
|
|
|
|
Free Cash Flow
Conversion (Free cash flow divided by net income)
|
183%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED DILUTED
EARNINGS PER SHARE
|
|
|
|
|
|
Diluted Earnings
Per Share
|
|
|
Three Months
Ended
|
|
|
June
30,
|
|
June 30,
|
|
|
2020
|
|
2019
|
Diluted earnings per
share (GAAP)
|
$
0.72
|
|
$
0.94
|
|
Pretax amortization
of acquisition-related intangible assets
|
0.16
|
|
0.14
|
|
Income tax benefit on
amortization of acquisition-related intangible assets
|
(0.04)
|
|
(0.03)
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
$
0.84
|
|
$
1.05
|
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.