BERWYN,
Pa., Feb. 2, 2023 /PRNewswire/ -- AMETEK, Inc.
(NYSE: AME) today announced its financial results for the fourth
quarter ended December 31, 2022.
AMETEK's fourth quarter 2022 sales were a record $1.63 billion, an 8% increase over the fourth
quarter of 2021, with organic sales growth of 9%. Operating income
increased 10% to a record $398
million and operating margins were 24.5%, up 50 basis points
from fourth quarter 2021 margins.
On a GAAP basis, fourth quarter earnings per diluted share were
$1.33. Adjusted earnings in the
quarter were a record $1.52 per
diluted share, up 11% from the fourth quarter of 2021. Adjusted
earnings adds back non-cash, after-tax, acquisition-related
intangible amortization of $0.19 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 completed a record year with an outstanding fourth
quarter," commented David A. Zapico,
AMETEK Chairman and Chief Executive Officer. "Our results in the
quarter were ahead of expectations driven by continued broad-based
sales growth and exceptional operating performance. AMETEK's
operating flexibility allowed us to deliver excellent margin
expansion, strong cash flows and outstanding earnings growth in the
quarter. Additionally, we ended the year with a record backlog of
$3.2 billion, positioning us well as
we look ahead to 2023."
For the full year, AMETEK's sales were $6.15 billion, an increase of 11% over 2021.
Organic sales were also up 11% in 2022. Operating income was
$1.50 billion, up 15% versus the
prior year, and operating income margins were 24.4%, expanding
80 basis points over last year's results.
On a GAAP basis, full year 2022 earnings were $5.01 per diluted share. Full year adjusted
earnings were $5.68 per share, an
increase of 17% over 2021's comparable adjusted earnings of
$4.85 per share. AMETEK established
annual records for sales, operating profit, operating margin, and
earnings per share.
Electronic Instruments Group (EIG)
EIG sales in
the fourth quarter were a record $1.16
billion, up 10% from the same quarter in 2021. EIG's
operating income in the quarter increased 10% to a record
$307 million and operating income
margins were 26.5%, an increase of 10 basis points versus the
fourth quarter of 2021.
"EIG delivered another excellent quarter to complete an
outstanding year," noted Mr. Zapico. "Strong and broad-based
organic sales growth and contributions from recent acquisitions
drove double digit sales growth while EIG's operating performance
resulted in record operating income in the quarter."
Electromechanical Group (EMG)
EMG sales in the
fourth quarter were $466 million, up
4% from the fourth quarter in 2021. EMG's fourth quarter operating
income was $115 million, up 9% versus
the prior year, while operating income margins were 24.6% in the
quarter, up 100 basis points versus the prior year.
"EMG's fourth quarter results were also outstanding with
continued strong sales growth and operating performance resulting
in very strong margin expansion," added Mr. Zapico.
2023 Outlook
"Our businesses delivered
exceptional results in 2022. AMETEK's success reflects the strength
and flexibility of the AMETEK Growth Model, the quality of our
niche, differentiated businesses, and the outstanding contributions
from all AMETEK colleagues. We are optimistic about the future
given our record backlog, proven operating capability and robust
cash flows. Additionally, we are well-positioned to continue to
invest in our organic growth initiatives, deploy capital on
strategic acquisitions and drive long-term sustainable growth,"
noted Mr. Zapico.
"For 2023, we expect overall sales to be up mid-single digits
compared to 2022. Adjusted earnings per diluted share are expected
to be in the range of $5.84 to
$6.00, an increase of 3% to 6% over
the comparable basis for 2022," he added.
"For the first quarter of 2023, overall sales are also expected
to be up mid-single digits compared to the same period last year.
Adjusted earnings in the quarter are anticipated to be in the range
of $1.38 to $1.42 per share, up 4% to 7% compared to the
first quarter of 2022," concluded Mr. Zapico.
Conference Call
AMETEK will webcast its fourth
quarter 2022 investor conference call on Thursday, February
2, 2023, 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 (NYSE: AME) is a
leading global provider of industrial technology solutions serving
a diverse set of attractive niche markets with annual sales over
$6.0 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. Founded in 1930, AMETEK has been listed on
the NYSE for over 90 years and is a component of the S&P 500.
For more information, visit www.AMETEK.com.
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:
Kevin Coleman
Vice President, Investor Relations and Treasurer
kevin.coleman@ametek.com
Phone: 610.889.5247
AMETEK,
Inc.
Consolidated
Statement of Income
(In thousands,
except per share amounts)
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net
sales
|
$
1,625,667
|
|
$ 1,503,745
|
|
$
6,150,530
|
|
$ 5,546,514
|
|
|
|
|
|
|
|
|
Cost of
sales
|
1,063,657
|
|
982,394
|
|
4,005,261
|
|
3,633,900
|
Selling, general and
administrative
|
163,920
|
|
160,200
|
|
644,577
|
|
603,944
|
Total operating
expenses
|
1,227,577
|
|
1,142,594
|
|
4,649,838
|
|
4,237,844
|
Operating
income
|
398,090
|
|
361,151
|
|
1,500,692
|
|
1,308,670
|
Interest
expense
|
(23,021)
|
|
(20,516)
|
|
(83,186)
|
|
(80,381)
|
Other income (expense),
net
|
3,435
|
|
(1,344)
|
|
11,186
|
|
(5,119)
|
Income before income
taxes
|
378,504
|
|
339,291
|
|
1,428,692
|
|
1,223,170
|
Provision for income
taxes
|
71,422
|
|
57,610
|
|
269,150
|
|
233,117
|
Net
income
|
$
307,082
|
|
$
281,681
|
|
$
1,159,542
|
|
$
990,053
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
1.33
|
|
$
1.21
|
|
$
5.01
|
|
$
4.25
|
Basic earnings per
share
|
$
1.34
|
|
$
1.22
|
|
$
5.04
|
|
$
4.29
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
Diluted shares
|
231,118
|
|
233,116
|
|
231,536
|
|
232,813
|
Basic shares
|
229,750
|
|
231,388
|
|
230,208
|
|
230,955
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
0.22
|
|
$
0.20
|
|
$
0.88
|
|
$
0.80
|
AMETEK,
Inc.
Information by
Business Segment
(In
thousands)
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net
sales:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
1,159,222
|
|
$ 1,057,086
|
|
$
4,229,353
|
|
$ 3,763,758
|
Electromechanical
|
466,445
|
|
446,659
|
|
1,921,177
|
|
1,782,756
|
Consolidated net
sales
|
$
1,625,667
|
|
$ 1,503,745
|
|
$
6,150,530
|
|
$ 5,546,514
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
307,126
|
|
$
279,531
|
|
$
1,089,729
|
|
$
958,183
|
Electromechanical
|
114,546
|
|
105,340
|
|
503,593
|
|
437,378
|
Total segment
operating income
|
421,672
|
|
384,871
|
|
1,593,322
|
|
1,395,561
|
Corporate
administrative expenses
|
(23,582)
|
|
(23,720)
|
|
(92,630)
|
|
(86,891)
|
Consolidated operating
income
|
$
398,090
|
|
$
361,151
|
|
$
1,500,692
|
|
$ 1,308,670
|
AMETEK,
Inc.
Condensed
Consolidated Balance Sheet
(In
thousands)
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
345,386
|
|
$
346,772
|
Receivables, net
|
919,335
|
|
829,213
|
Inventories, net
|
1,044,284
|
|
769,175
|
Other current
assets
|
219,053
|
|
183,605
|
Total current assets
|
2,528,058
|
|
2,128,765
|
|
|
|
|
Property, plant and
equipment, net
|
635,641
|
|
617,138
|
Right of use asset,
net
|
170,295
|
|
169,924
|
Goodwill
|
5,372,562
|
|
5,238,726
|
Other intangibles,
investments and other assets
|
3,724,564
|
|
3,743,634
|
Total assets
|
$
12,431,120
|
|
$
11,898,187
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$
226,079
|
|
$
315,093
|
Accounts payable and
accruals
|
1,338,123
|
|
1,248,221
|
Total current liabilities
|
1,564,202
|
|
1,563,314
|
|
|
|
|
Long-term debt,
net
|
2,158,928
|
|
2,229,148
|
Deferred income taxes
and other long-term liabilities
|
1,231,478
|
|
1,233,841
|
Stockholders'
equity
|
7,476,512
|
|
6,871,884
|
Total liabilities and stockholders' equity
|
$
12,431,120
|
|
$
11,898,187
|
AMETEK,
Inc.
|
Reconciliations of
GAAP to Non-GAAP Financial Measures
|
(Unaudited)
|
|
|
Diluted Earnings Per
Share
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
$
1.33
|
|
$
1.21
|
|
$
5.01
|
|
$
4.25
|
Pretax amortization of
acquisition-related intangible assets
|
0.25
|
|
0.21
|
|
0.89
|
|
0.79
|
Income tax benefit on
amortization of acquisition-related intangible assets
|
(0.06)
|
|
(0.05)
|
|
(0.22)
|
|
(0.19)
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
$
1.52
|
|
$
1.37
|
|
$
5.68
|
|
$
4.85
|
|
|
|
|
|
Forecasted Diluted
Earnings Per Share
|
|
Three Months
Ended
|
|
Year
Ended
|
|
March 31,
2023
|
|
December 31,
2023
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
$
1.21
|
|
$
1.25
|
|
$
5.18
|
|
$
5.34
|
Pretax amortization of
acquisition-related intangible assets
|
0.22
|
|
0.22
|
|
0.88
|
|
0.88
|
Income tax benefit on
amortization of acquisition-related intangible assets
|
(0.05)
|
|
(0.05)
|
|
(0.22)
|
|
(0.22)
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
$
1.38
|
|
$
1.42
|
|
$
5.84
|
|
$
6.00
|
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.