BERWYN, Pa., Oct. 29, 2020 /PRNewswire/ -- AMETEK, Inc. (NYSE:
AME) today announced its financial results for the third quarter
ended September 30, 2020.
AMETEK's third quarter 2020 sales were $1.13 billion, a 12% decline compared to the
third quarter of 2019. Operating income in the quarter was
$270.7 million and operating margins
were a record 24.0%, up 40 basis points from the third quarter of
2019.
On a GAAP basis, third quarter earnings per diluted share were
$0.88. Adjusted earnings in the
quarter were $1.01 per diluted share,
down 5% compared to the prior-year's comparable period. Adjusted
earnings adds back non-cash, after-tax, acquisition-related
intangible amortization of $0.13 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.
"Our teams did an outstanding job in the third quarter, managing
ongoing challenges presented by the COVID-19 pandemic while
providing essential support to our customers," said
David A. Zapico, AMETEK Chairman and Chief Executive
Officer. "We continue to prioritize our employees' safety and
well-being by taking appropriate precautions across our
facilities."
"In the midst of the pandemic, AMETEK was able to deliver record
operating margins as well as EBITDA margins of 29.5%. These
outstanding results reflect the flexibility of the AMETEK Growth
Model and the exceptional talent and dedication of our employees,"
continued Mr. Zapico. "Operating cash flow in the quarter was
$310 million, resulting in excellent
free cash flow conversion of 146% of net income, further
strengthening our balance sheet and liquidity position, providing
us tremendous flexibility to deploy capital on strategic
acquisitions," said Mr. Zapico.
Electronic Instruments Group (EIG)
EIG sales in the
third quarter were $748.4 million,
down 8% from the third quarter of 2019. EIG's operating income in
the quarter was $203.7 million and
operating income margins were 27.2%, an increase of 30 basis points
over the prior-year period.
"EIG experienced strong, broad-based sequential sales
improvement in the third quarter as the global economy began its
recovery from a difficult second quarter," noted Mr. Zapico.
"Despite a year-over-year decline in sales as a result of the
pandemic, EIG delivered excellent operating performance with solid
margin expansion in the quarter."
Electromechanical Group (EMG)
EMG sales in the third
quarter were $378.6 million, down 18%
versus last year's third quarter. Operating income for EMG in the
quarter was $84.3 million and
operating income margins were 22.3%, down 10 basis points versus
the same period last year.
"While EMG's top line was impacted by the divestiture of Reading
Alloys and the effects of the pandemic, EMG delivered strong
operating results in the quarter through continued focus on its
Operational Excellence initiatives," commented Mr. Zapico.
2020 Outlook
"Our businesses have managed
exceptionally well through the first nine months of what has
certainly been an extraordinary year. We remain committed to
investing in long-term, sustainable growth initiatives while
reacting to the current dynamic market environment with a focus on
cost and asset management," continued Mr. Zapico. "While the
pandemic continues to present uncertainty, our end markets are
gradually recovering, and we are well positioned to deliver strong
results."
"Given this recovery and improved visibility across our
businesses we are reinstating quarterly guidance," said Mr. Zapico.
"For the fourth quarter, we expect solid sequential improvements in
sales versus the third quarter with year-over-year sales down high
single digits on a percentage basis compared to last year's fourth
quarter. We anticipate fourth quarter adjusted earnings will be in
the range of $1.00 to $1.04 per diluted share," Mr. Zapico
concluded.
Conference Call
AMETEK will webcast its third quarter
2020 investor conference call on Thursday, October 29, 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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net
sales
|
$1,126,942
|
|
$1,276,633
|
|
$3,341,082
|
|
$3,853,736
|
|
|
|
|
|
|
|
|
Cost of
sales
|
732,705
|
|
823,262
|
|
2,226,547
|
|
2,512,722
|
Selling, general and
administrative
|
123,496
|
|
152,315
|
|
384,764
|
|
461,289
|
Total operating
expenses
|
856,201
|
|
975,577
|
|
2,611,311
|
|
2,974,011
|
|
|
|
|
|
|
|
|
Operating
income
|
270,741
|
|
301,056
|
|
729,771
|
|
879,725
|
|
|
|
|
|
|
|
|
Interest
expense
|
(21,187)
|
|
(21,308)
|
|
(66,597)
|
|
(65,436)
|
Other (expense)
income, net
|
(1,479)
|
|
(5,517)
|
|
142,428
|
|
(12,521)
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
248,075
|
|
274,231
|
|
805,602
|
|
801,768
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
43,494
|
|
53,482
|
|
154,188
|
|
161,248
|
|
|
|
|
|
|
|
|
Net
income
|
$
204,581
|
|
$
220,749
|
|
$
651,414
|
|
$
640,520
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
0.88
|
|
$
0.96
|
|
$
2.82
|
|
$
2.79
|
Basic earnings per
share
|
$
0.89
|
|
$
0.97
|
|
$
2.84
|
|
$
2.82
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Diluted shares
|
231,460
|
|
229,560
|
|
230,904
|
|
229,191
|
Basic shares
|
229,576
|
|
228,041
|
|
229,254
|
|
227,493
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
0.18
|
|
$
0.14
|
|
$
0.54
|
|
$
0.42
|
AMETEK,
Inc.
|
Information by
Business Segment
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net
sales:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
748,372
|
|
$
815,552
|
|
$2,170,479
|
|
$2,442,710
|
Electromechanical
|
378,570
|
|
461,081
|
|
1,170,603
|
|
1,411,026
|
Consolidated net sales
|
$1,126,942
|
|
$1,276,633
|
|
$3,341,082
|
|
$3,853,736
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
203,749
|
|
$
219,451
|
|
$
534,613
|
|
$
635,448
|
Electromechanical
|
84,303
|
|
103,451
|
|
245,154
|
|
303,329
|
Total segment operating income
|
288,052
|
|
322,902
|
|
779,767
|
|
938,777
|
Corporate administrative
expenses
|
(17,311)
|
|
(21,846)
|
|
(49,996)
|
|
(59,052)
|
Consolidated operating income
|
$
270,741
|
|
$
301,056
|
|
$
729,771
|
|
$
879,725
|
AMETEK,
Inc.
|
Condensed
Consolidated Balance Sheet
|
(In
thousands)
|
|
|
September
30,
|
|
December
31,
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
1,304,838
|
|
$
393,030
|
Receivables, net
|
614,773
|
|
744,760
|
Inventories, net
|
584,753
|
|
624,567
|
Other current
assets
|
138,654
|
|
263,414
|
Total current assets
|
2,643,018
|
|
2,025,771
|
|
|
|
|
Property, plant and
equipment, net
|
508,645
|
|
548,908
|
Right of use asset,
net
|
166,728
|
|
179,679
|
Goodwill
|
4,188,754
|
|
4,047,539
|
Other intangibles,
investments and other assets
|
2,926,241
|
|
3,042,662
|
Total assets
|
$10,433,386
|
|
$
9,844,559
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$
505,030
|
|
$
497,449
|
Accounts payable and
accruals
|
898,464
|
|
928,409
|
Total current liabilities
|
1,403,494
|
|
1,425,858
|
|
|
|
|
Long-term debt,
net
|
2,295,810
|
|
2,271,292
|
Deferred income taxes
and other long-term liabilities
|
1,029,890
|
|
1,031,917
|
Stockholders'
equity
|
5,704,192
|
|
5,115,492
|
Total liabilities and stockholders' equity
|
$10,433,386
|
|
$
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)
|
|
September 30,
2020
|
|
|
|
|
|
|
Net income
|
|
$
204.6
|
|
|
|
|
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
21.2
|
|
|
|
|
|
|
Interest
income
|
|
(0.3)
|
|
|
|
|
|
|
Income
taxes
|
|
43.5
|
|
|
|
|
|
|
Depreciation
|
|
24.4
|
|
|
|
|
|
|
Amortization
|
|
38.6
|
|
|
|
|
|
|
EBITDA
|
|
$
332.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA Margin (EBITDA
divided by net sales)
|
|
29.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FREE CASH
FLOW
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
(In
millions)
|
|
September 30,
2020
|
|
|
|
|
|
|
Cash provided by
operating activities
|
|
$
309.7
|
|
|
|
|
|
|
Deduct: Capital
expenditures
|
|
(10.1)
|
|
|
|
|
|
|
Free cash
flow
|
|
$
299.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
Conversion
(Free cash flow divided by net income)
|
|
146%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forecasted
|
ADJUSTED DILUTED
EARNINGS PER SHARE
|
|
|
|
|
|
Diluted
Earnings Per Share
|
|
|
Diluted Earnings
Per Share
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
December
31,
|
|
|
September
30,
|
|
September
30,
|
|
Low
|
|
High
|
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
|
$
0.88
|
|
$
0.96
|
|
$
0.87
|
|
$
0.91
|
Pretax amortization of
acquisition-related
intangible assets
|
|
0.17
|
|
0.13
|
|
0.17
|
|
0.17
|
Income tax benefit on
amortization of
acquisition-related intangible assets
|
|
(0.04)
|
|
(0.03)
|
|
(0.04)
|
|
(0.04)
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
|
$
1.01
|
|
$
1.06
|
|
$
1.00
|
|
$
1.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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-third-quarter-results-and-provides-fourth-quarter-2020-guidance-301162247.html
SOURCE AMETEK, Inc.