BERWYN,
Pa., Aug. 3, 2021 /PRNewswire/ -- AMETEK, Inc.
(NYSE: AME) today announced its financial results for the second
quarter ended June 30, 2021.
AMETEK's second quarter 2021 sales were a record $1.39 billion, a 37% increase over the second
quarter of 2020, with organic sales growth of 25%. Operating income
increased 39% to a record $316.6
million and operating margins were 22.8%, up 40 basis points
over the prior-year period.
On a GAAP basis, second quarter earnings per diluted share were
$1.00. Adjusted earnings were a
record $1.15 per diluted share, up
37% versus the prior year's adjusted results. Adjusted earnings
adds back non-cash, after-tax, acquisition-related intangible
amortization of $0.15 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.
"AMETEK delivered outstanding results in the second quarter with
record sales, operating income and adjusted earnings," commented
David A. Zapico, AMETEK Chairman and Chief Executive
Officer. "Sales growth and operating performance were exceptionally
strong while earnings exceeded our expectations. Order growth
remains robust and broad-based resulting in a record $2.5 billion in backlog. Additionally, our
businesses generated outstanding levels of cash flow with free cash
flow conversion a strong 114% of net income."
Electronic Instruments Group (EIG)
Second quarter EIG
sales were a record $933.9 million,
up 44% compared to last year's second quarter. EIG's operating
income in the quarter was up 42% to $226.6
million, and operating margins were 24.3%.
"EIG performed exceptionally well in the quarter with a record
level of sales driven by strong organic growth and contributions
from the recent acquisitions," noted Mr. Zapico. "EIG also
delivered superb operating performance with operating income up
more than 40% and strong core operating margin expansion."
Electromechanical Group (EMG)
EMG sales in the second
quarter were $452.4 million, an
increase of 24% over the second quarter of 2020. Operating income
for EMG increased 33% over the prior-year period to a record
$112.4 million, and operating margins
were up 170 basis points to a record 24.9%.
"EMG had an exceptional quarter with strong sales growth and
outstanding operating performance," commented Mr. Zapico. "Our
team's tremendous efforts during the pandemic positioned us well to
benefit from the recovery resulting in robust margin
expansion."
2021 Outlook
"We are pleased with AMETEK's performance
through the first half of the year. Sales and orders growth has
been broad based as the global economy continues its recovery. Our
businesses are executing extremely well, generating strong levels
of cash flow which firmly position us to continue investing in
growth opportunities including strategic acquisitions. This
outstanding performance, along with our proven ability to manage
well through various economic cycles, reflects the strength and
sustainable nature of the AMETEK Growth Model," continued Mr.
Zapico.
"Following our second quarter results, we are increasing our
guidance for the year. For 2021, we now expect overall sales to be
up approximately 20% with organic sales up approximately 10%.
Adjusted earnings per diluted share are expected to be in the range
of $4.62 to $4.68, up 17% to 18% over 2020 and an increase
from our previous guidance range of $4.48 to $4.56 per
diluted share," he added.
"We expect overall sales in the third quarter to be up in the
mid-20% range compared to the third quarter of 2020. Adjusted
earnings per diluted share are anticipated to be in the range of
$1.16 to $1.18, up 15% to 17% over the same period in
2020," concluded Mr. Zapico.
Conference Call
AMETEK will webcast its second quarter
2021 investor conference call on Tuesday, August 3, 2021,
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 annualized sales of approximately $5.5 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,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
sales
|
$1,386,346
|
|
$1,011,922
|
|
$2,602,088
|
|
$2,214,140
|
|
|
|
|
|
|
|
|
Cost of
sales
|
912,712
|
|
669,195
|
|
1,702,104
|
|
1,493,842
|
Selling, general and
administrative
|
157,023
|
|
115,737
|
|
290,028
|
|
261,268
|
Total operating
expenses
|
1,069,735
|
|
784,932
|
|
1,992,132
|
|
1,755,110
|
|
|
|
|
|
|
|
|
Operating
income
|
316,611
|
|
226,990
|
|
609,956
|
|
459,030
|
|
|
|
|
|
|
|
|
Interest
expense
|
(20,442)
|
|
(22,669)
|
|
(39,389)
|
|
(45,410)
|
Other (expense)
income, net
|
(4,414)
|
|
2,131
|
|
(6,356)
|
|
143,907
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
291,755
|
|
206,452
|
|
564,211
|
|
557,527
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
60,076
|
|
40,235
|
|
113,299
|
|
110,694
|
|
|
|
|
|
|
|
|
Net
income
|
$
231,679
|
|
$
166,217
|
|
$
450,912
|
|
$
446,833
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
1.00
|
|
$
0.72
|
|
$
1.94
|
|
$
1.94
|
Basic earnings per
share
|
$
1.00
|
|
$
0.73
|
|
$
1.96
|
|
$
1.95
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Diluted shares
|
232,841
|
|
230,381
|
|
232,569
|
|
230,626
|
Basic shares
|
230,828
|
|
229,225
|
|
230,632
|
|
229,094
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
0.20
|
|
$
0.18
|
|
$
0.40
|
|
$
0.36
|
AMETEK,
Inc.
|
Information by
Business Segment
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
sales:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
933,934
|
|
$
647,882
|
|
$1,724,858
|
|
$1,422,107
|
Electromechanical
|
452,412
|
|
364,040
|
|
877,230
|
|
792,033
|
Consolidated net sales
|
$1,386,346
|
|
$1,011,922
|
|
$2,602,088
|
|
$2,214,140
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
226,637
|
|
$
159,593
|
|
$
433,534
|
|
$
330,864
|
Electromechanical
|
112,434
|
|
84,287
|
|
217,467
|
|
160,851
|
Total segment operating income
|
339,071
|
|
243,880
|
|
651,001
|
|
491,715
|
Corporate administrative
expenses
|
(22,460)
|
|
(16,890)
|
|
(41,045)
|
|
(32,685)
|
Consolidated operating income
|
$
316,611
|
|
$
226,990
|
|
$
609,956
|
|
$
459,030
|
AMETEK,
Inc.
|
Condensed
Consolidated Balance Sheet
|
(In
thousands)
|
|
|
June
30,
|
|
December
31,
|
|
2021
|
|
2020
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
390,644
|
|
$
1,212,822
|
Receivables, net
|
754,045
|
|
597,472
|
Inventories, net
|
711,620
|
|
559,171
|
Other current
assets
|
185,772
|
|
153,005
|
Total current assets
|
2,042,081
|
|
2,522,470
|
|
|
|
|
Property, plant and
equipment, net
|
598,827
|
|
526,530
|
Right of use asset,
net
|
178,698
|
|
167,233
|
Goodwill
|
5,139,807
|
|
4,224,906
|
Other intangibles,
investments and other assets
|
3,795,851
|
|
2,916,344
|
Total assets
|
$11,755,264
|
|
$10,357,483
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$
699,996
|
|
$
132,284
|
Accounts payable and
accruals
|
1,157,633
|
|
943,631
|
Total current liabilities
|
1,857,629
|
|
1,075,915
|
|
|
|
|
Long-term debt,
net
|
2,262,100
|
|
2,281,441
|
Deferred income taxes
and other long-term liabilities
|
1,292,236
|
|
1,050,781
|
Stockholders'
equity
|
6,343,299
|
|
5,949,346
|
Total liabilities and stockholders' equity
|
$11,755,264
|
|
$10,357,483
|
AMETEK,
Inc.
|
Reconciliations of
GAAP to Non-GAAP Financial Measures
|
(In millions,
except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
FREE CASH
FLOW
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
June 30,
2021
|
|
|
|
|
|
|
Cash provided by
operating activities
|
$
287.0
|
|
|
|
|
|
|
Deduct: Capital
expenditures
|
(23.5)
|
|
|
|
|
|
|
Free cash
flow
|
$
263.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
Conversion
(Free cash flow divided by net income)
|
114%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED DILUTED
EARNINGS PER SHARE
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
Per Share
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
June 30,
|
|
|
|
|
|
|
2021
|
|
2020
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
$
1.00
|
|
$
0.72
|
|
|
|
|
|
Pretax amortization
of acquisition-related
intangible assets
|
0.20
|
|
0.16
|
|
|
|
|
|
Income tax benefit on
amortization of
acquisition-related intangible assets
|
(0.05)
|
|
(0.04)
|
|
|
|
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
$
1.15
|
|
$
0.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forecasted
Diluted Earnings Per Share
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
September
30,
|
|
December
31,
|
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
|
2021
|
|
2021
|
|
2021
|
|
2021
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
$
1.00
|
|
$
1.02
|
|
$
4.01
|
|
$
4.07
|
|
Pretax amortization
of acquisition-related
intangible assets
|
0.21
|
|
0.21
|
|
0.80
|
|
0.80
|
|
Income tax benefit on
amortization of
acquisition-related intangible assets
|
(0.05)
|
|
(0.05)
|
|
(0.19)
|
|
(0.19)
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
$
1.16
|
|
$
1.18
|
|
$
4.62
|
|
$
4.68
|
|
|
|
|
|
|
|
|
|
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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content:https://www.prnewswire.com/news-releases/ametek-announces-record-second-quarter-results-and-raises-2021-guidance-301346466.html
SOURCE AMETEK, Inc.