BERWYN,
Pa., May 2, 2023 /PRNewswire/ -- AMETEK, Inc.
(NYSE: AME) today announced its financial results for the first
quarter ended March 31, 2023.
AMETEK's first quarter 2023 sales were $1.60 billion, a 10% increase over the first
quarter of 2022, with organic sales growth of 9%. Operating income
increased 15% to a record $405.5
million and operating margins were a record 25.4%, up 120
basis points from first quarter 2022 margins. Operating cash flow
was a record $386.5 million, up 92%
versus the prior year.
On a GAAP basis, first quarter earnings per diluted share were
$1.32. Adjusted earnings in the
quarter were $1.49 per diluted share,
up 12% from the first quarter of 2022. Adjusted earnings adds back
non-cash, after-tax, acquisition-related intangible amortization of
$0.17 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's first quarter performance was exceptional," said
David A. Zapico, AMETEK Chairman and
Chief Executive Officer. "Strong organic sales growth coupled with
our focus on operational excellence, resulted in record operating
profit, robust margin expansion and outstanding free cash flow.
Moreover, demand remains strong resulting in solid orders growth in
the quarter and a record backlog. Given this outstanding
performance, we are raising our sales and earnings guidance for the
full year."
Electronic Instruments Group (EIG)
EIG sales in the
first quarter were $1.12 billion, up
13% from the same quarter in 2022. EIG's operating income in the
quarter increased 27% to a record $309.7
million and operating income margins were 27.7%, an increase
of 290 basis points compared to the first quarter of 2022.
"EIG delivered tremendous results in the first quarter with
strong sales growth and exceptional operating performance resulting
in sizeable operating profit growth and margin expansion," stated
Mr. Zapico. "EIG's sales growth was driven by broad-based organic
sales growth and the contributions from recent acquisitions, while
the operating performance reflects the quality of our
differentiated businesses and the strength of our operating
capabilities."
Electromechanical Group (EMG)
EMG sales in the first
quarter were $479.9 million, up 2%
from the first quarter in 2022. EMG's first quarter operating
income was $120.5 million and
operating income margins were 25.1% in the quarter.
"EMG's first quarter results demonstrated continued strong sales
growth and operating performance, resulting in solid core margin
expansion in the quarter," stated Mr. Zapico. "We also added to our
differentiated automation platform with the acquisition of Bison
Gear & Engineering in the first quarter."
2023 Outlook
"I am pleased with AMETEK's
results in the first quarter. Our businesses are performing
at a very high level and delivering exceptional results. We remain
well positioned given our record backlog, our leadership positions
across attractive niche markets, and the proven strength of
the AMETEK Growth Model. Additionally, our
balance sheet and strong cash flows provide us with meaningful
capital to deploy on strategic acquisitions," stated Mr.
Zapico.
"For 2023, we now expect overall sales to be up mid to high
single digits compared to 2022. Adjusted diluted earnings per share
are now expected to be in the range of $5.96 to $6.10, an
increase of 5% to 7% over the comparable basis for 2022. This is an
increase from our previous guidance range of $5.84 to $6.00 per
diluted share," he added.
"We expect overall sales in the second quarter to be up mid to
high single digits on a percentage basis versus the prior year.
Second quarter adjusted earnings per diluted share are anticipated
to be in the range of $1.49 to
$1.51, up 8% to 9% compared to
the second quarter of 2022," concluded Mr. Zapico.
Conference Call
AMETEK will webcast its first quarter
2023 investor conference call on Tuesday, May 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
March 31,
|
|
2023
|
|
2022
|
Net
sales
|
$
1,597,117
|
|
$ 1,458,525
|
|
|
|
|
Cost of
sales
|
1,022,525
|
|
948,833
|
Selling, general and
administrative
|
169,051
|
|
156,452
|
Total operating
expenses
|
1,191,576
|
|
1,105,285
|
Operating
income
|
405,541
|
|
353,240
|
Interest
expense
|
(20,569)
|
|
(19,570)
|
Other (expense) income,
net
|
(5,373)
|
|
2,552
|
Income before income
taxes
|
379,599
|
|
336,222
|
Provision for income
taxes
|
73,887
|
|
63,775
|
Net
income
|
$
305,712
|
|
$
272,447
|
|
|
|
|
Diluted earnings per
share
|
$
1.32
|
|
$
1.17
|
Basic earnings per
share
|
$
1.33
|
|
$
1.18
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
Diluted shares
|
231,229
|
|
233,065
|
Basic shares
|
230,126
|
|
231,481
|
|
|
|
|
Dividends per
share
|
$
0.25
|
|
$
0.22
|
AMETEK,
Inc.
Information by
Business Segment
(In
thousands)
(Unaudited)
|
|
|
Three Months
Ended
March
31,
|
|
2023
|
|
2022
|
Net
sales:
|
|
|
|
Electronic
Instruments
|
$
1,117,247
|
|
$
987,759
|
Electromechanical
|
479,870
|
|
470,766
|
Consolidated net
sales
|
$
1,597,117
|
|
$ 1,458,525
|
|
|
|
|
Operating
income:
|
|
|
|
Segment operating
income:
|
|
|
|
Electronic
Instruments
|
$
309,747
|
|
$
244,774
|
Electromechanical
|
120,504
|
|
128,209
|
Total segment
operating income
|
430,251
|
|
372,983
|
Corporate
administrative expenses
|
(24,710)
|
|
(19,743)
|
Consolidated operating
income
|
$
405,541
|
|
$
353,240
|
AMETEK,
Inc.
Condensed
Consolidated Balance Sheet
(In
thousands)
|
|
|
March
31,
|
|
December
31,
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
399,873
|
|
$
345,386
|
Receivables, net
|
901,506
|
|
919,335
|
Inventories, net
|
1,117,051
|
|
1,044,284
|
Other current
assets
|
247,512
|
|
219,053
|
Total current assets
|
2,665,942
|
|
2,528,058
|
|
|
|
|
Property, plant and
equipment, net
|
637,672
|
|
635,641
|
Right of use asset,
net
|
166,985
|
|
170,295
|
Goodwill
|
5,430,493
|
|
5,372,562
|
Other intangibles,
investments and other assets
|
3,714,930
|
|
3,724,564
|
Total assets
|
$
12,616,022
|
|
$
12,431,120
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$
70,017
|
|
$
226,079
|
Accounts payable and
accruals
|
1,382,650
|
|
1,338,123
|
Total current liabilities
|
1,452,667
|
|
1,564,202
|
|
|
|
|
Long-term debt,
net
|
2,175,880
|
|
2,158,928
|
Deferred income taxes
and other long-term liabilities
|
1,230,350
|
|
1,231,478
|
Stockholders'
equity
|
7,757,125
|
|
7,476,512
|
Total liabilities and stockholders' equity
|
$
12,616,022
|
|
$
12,431,120
|
AMETEK,
Inc.
Reconciliations of
GAAP to Non-GAAP Financial Measures
(Unaudited)
|
|
|
Diluted Earnings Per
Share
|
|
Three Months
Ended
|
|
March
31,
|
|
2023
|
|
2022
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
$
1.32
|
|
$
1.17
|
Pretax amortization of
acquisition-related intangible assets
|
0.22
|
|
0.21
|
Income tax benefit on
amortization of acquisition-related intangible assets
|
(0.05)
|
|
(0.05)
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
$
1.49
|
|
$
1.33
|
|
Forecasted Diluted
Earnings Per Share
|
|
Three Months
Ended
|
|
Year
Ended
|
|
June 30,
2023
|
|
December 31,
2023
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
$
1.32
|
|
$
1.34
|
|
$
5.28
|
|
$
5.42
|
Pretax amortization of
acquisition-related intangible
assets
|
0.22
|
|
0.22
|
|
0.89
|
|
0.89
|
Income tax benefit on
amortization of acquisition-
related intangible assets
|
(0.05)
|
|
(0.05)
|
|
(0.21)
|
|
(0.21)
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
$
1.49
|
|
$
1.51
|
|
$
5.96
|
|
$
6.10
|
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.