Amphenol Corporation (NYSE: APH) reported today GAAP diluted
Earnings Per Share (“EPS”) for the second quarter 2020 of $0.85
compared to $0.93 for the comparable 2019 period. GAAP diluted EPS
for the second quarter 2020 included an excess tax benefit of $12
million ($0.04 per share) related to stock options exercised during
the quarter. Second quarter 2019 GAAP diluted EPS included an
excess tax benefit of $13 million ($0.04 per share) related to
stock options exercised during the quarter, partially offset by
acquisition-related costs of $9 million ($0.03 per share).
Excluding the effect of these items, Adjusted Diluted EPS1 for the
second quarter 2020 was $0.81 compared to $0.92 for the second
quarter 2019. Sales for the second quarter 2020 were $1.987 billion
compared to $2.015 billion for the comparable 2019 period. Currency
translation had the effect of decreasing sales by $22 million in
the second quarter 2020 compared to the 2019 period.
For the six months ended June 30, 2020, GAAP Diluted EPS was
$1.64, compared to $1.80 for the comparable 2019 period. GAAP
Diluted EPS for the six months ended June 30, 2020 included (i) a
discrete tax benefit of $20 million ($0.06 per share) related to
the settlements of refund claims in certain non-U.S. jurisdictions
and the resulting adjustments to deferred taxes and (ii) an excess
tax benefit of $17 million ($0.06 per share) related to stock
options exercised during the period. The comparable 2019 period
included acquisition-related costs of $25 million ($0.07 per
share), partially offset by an excess tax benefit of $20 million
($0.06 per share) related to stock options exercised during the
period. Excluding the effect of these items, Adjusted Diluted EPS
for the six months ended June 30, 2020 and 2019 was $1.52 and
$1.81, respectively. Sales for the six months ended June 30, 2020
were $3.850 billion compared to $3.974 billion for the 2019 period.
Currency translation had the effect of decreasing sales by $40
million for the first six months of 2020 compared to the 2019
period.
Amphenol President and Chief Executive Officer, R. Adam Norwitt,
stated, “The COVID-19 pandemic continued to negatively impact our
business in the second quarter 2020 as certain customers
experienced reduced demand and several of our facilities faced
production constraints related to government restrictions adopted
to mitigate the spread of the virus. Amidst these very challenging
conditions, our team drove results that exceeded our expectations,
all while prioritizing the safety and health of our employees
worldwide.”
“We are pleased to have closed the second quarter 2020 with
sales and Adjusted Diluted EPS reaching $1.987 billion and $0.81,
respectively. Compared to the second quarter 2019, sales decreased
by just 1%, primarily driven by the continued severe slowdown in
the automotive and commercial air markets largely offset by strong
growth in the information technology and data communications,
mobile devices and industrial markets.”
“It is extremely rewarding that even in this most challenging
environment the Company’s experienced management team continues to
react quickly to ensure that profitability, cash flow and liquidity
remain strong. Despite facing significant cost pressures related to
the COVID-19 pandemic, second quarter operating margins improved
sequentially to 18.0% and operating cash flow was $368 million, a
clear confirmation of the quality of the Company’s earnings. The
Company continues to deploy its financial strength in a variety of
ways to increase shareholder value. To that end, while the Company
did not make any purchases under its stock buyback program in the
second quarter, the Company paid dividends of $74 million and paid
down $1.3 billion of debt, resulting in $1.3 billion of cash and
cash equivalents on hand at the end of the quarter.”
“The Company continues to expand its growth opportunities
through a deep commitment to developing enabling technologies for
customers in all markets, an ongoing strategy of market and
geographic diversification and an active and successful acquisition
program. As part of that program, we are excited to have acquired
Onanon, Inc. (“Onanon”) in the last week. Based in California,
Onanon designs and manufactures a wide array of connectors and
cable assemblies for customers in the industrial market, with a
primary focus on medical applications. With annual sales of
approximately $20 million, this acquisition strengthens the
Company’s global capabilities and enhances our product offerings,
while adding an outstanding management team to the Amphenol
family.”
“As we look ahead, the continued and significant economic and
public health uncertainties created by the COVID-19 pandemic make
it difficult to accurately forecast our performance in the second
half of 2020. Accordingly, we are once again not providing
full-year sales and EPS guidance. However, considering the current
demand environment and assuming no new material disruptions from
the pandemic as well as constant exchange rates, for the third
quarter 2020, we expect sales to be in the range of $1.960 billion
to $2.000 billion and Adjusted Diluted EPS in the range of $0.84 to
$0.86.”
“Despite the significant challenges posed by the current
environment, we are encouraged by the platform of strength that has
been created by the Company’s consistent and superior performance.
We remain confident in the ability of our outstanding
entrepreneurial management team to dynamically adjust to changing
market conditions, to capitalize on the wide array of growth
opportunities that arise even in times of crisis and to continue to
generate strong financial performance. Most importantly, I am truly
grateful to our employees around the world for their incredible
efforts to protect the safety and health of our entire team and
support our local communities, all while ensuring that our
customers have a ready supply of our high-technology interconnect
products, many of which are being used in support of the fight
against the COVID-19 crisis.”
The Company will host a conference call to discuss its second
quarter results at 1:00 PM (EDT) Wednesday, July 22, 2020. The
toll-free dial-in number to participate in this call is
888-455-0949; International dial-in number is +1-773-799-3973;
Passcode: LAMPO. There will be a replay available until 11:59 PM
(EDT) on Saturday, August 22, 2020. The replay numbers are toll
free 800-835-4610; International toll number is +1-203-369-3352;
Passcode: 7183.
A live broadcast as well as a replay can be accessed through the
Investor Relations section of the company’s website at
https://investors.amphenol.com.
Amphenol Corporation is one of the world’s largest designers,
manufacturers and marketers of electrical, electronic and fiber
optic connectors and interconnect systems, antennas, sensors and
sensor-based products and coaxial and high-speed specialty cable.
Amphenol designs, manufactures and assembles its products at
facilities in the Americas, Europe, Asia, Australia and Africa and
sells its products through its own global sales force, independent
representatives and a global network of electronics distributors.
Amphenol has a diversified presence as a leader in high-growth
areas of the interconnect market including: Automotive, Broadband
Communications, Commercial Aerospace, Industrial, Information
Technology and Data Communications, Military, Mobile Devices and
Mobile Networks.
Forward-Looking Statements
This press release may include forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, which relate to future events and are subject to risks and
uncertainties. The forward-looking statements, which address the
Company’s expected business and financial performance and financial
condition, among other matters, may contain words or phrases such
as: “believe,” “continue,” “expect,” “look ahead,” “predict,” or
“will,” and other words and phrases of similar meaning.
Forward-looking statements by their nature address matters that
are, to different degrees, uncertain, such as statements about
expected earnings, revenues, growth, liquidity or other financial
matters, together with any statements related in any way to the
COVID-19 pandemic including its impact on the Company. Although the
Company believes the expectations reflected in such forward-looking
statements including regarding the third quarter 2020 sales and
Adjusted Diluted EPS expectations are based upon reasonable
assumptions, the expectations may not be attained or there may be
material deviation. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date on which they are made.
Factors that could cause actual results to differ materially
from these forward-looking statements, include, but are not limited
to, the following: future risks and existing uncertainties
associated with the COVID-19 pandemic, which continues to have an
adverse impact on our operations including, depending on the
specific location, government actions that limit our ability to
operate certain of our facilities at full capacity or at all,
government actions that limit our ability to adjust certain costs,
travel restrictions, “work-from-home” orders and the gradual
transition back to the workplace, limited availability of our
workforce in some locations, supplier constraints, supply-chain
interruptions, logistics challenges and limitations, and reduced
demand from certain customers; uncertainties associated with a
protracted economic slowdown that could negatively affect the
financial condition of our customers; uncertainties and volatility
in the global capital markets; political, economic, military and
other risks in countries outside of the United States; the impact
of general economic conditions, geopolitical conditions and U.S.
trade policies, legislation, trade disputes, treaties and tariffs,
including those affecting China, on the Company’s business
operations; risks associated with the improper conduct by any of
our employees, customers, suppliers, distributors or any other
business partners which could impair our business reputation and
financial results and could result in our non-compliance with
anti-corruption laws and regulations of the U.S. government and
various foreign jurisdictions; changes in exchange rates of the
various currencies in which the Company conducts business; the
Company’s ability to obtain a consistent supply of materials, at
stable pricing levels; the Company’s dependence on sales to the
communications industry, which markets are dominated by large
manufacturers and operators who regularly exert significant
pressure on suppliers, including the Company; changes in defense
expenditures in the military market, including the impact of
reductions or changes in the defense budgets of U.S. and foreign
governments; the Company’s ability to compete successfully on the
basis of technology innovation, product quality and performance,
price, customer service and delivery time; the Company’s ability to
continue to conceive, design, manufacture and market new products
and upon continuing market acceptance of its existing and future
product lines; difficulties and unanticipated expenses in
connection with purchasing and integrating newly acquired
businesses, including the potential for the impairment of goodwill
and other intangible assets; events beyond the Company’s control
that could lead to an inability to meet its financial covenants
which could result in a default under the Company’s revolving
credit facility; the Company’s ability to access the capital
markets on favorable terms, including as a result of significant
deterioration of general economic or capital market conditions, or
as a result of a downgrade in the Company’s credit rating; changes
in interest rates; government contracting risks that the Company
may be subject to, including laws and regulations governing
performance of U.S. government contracts and related risks
associated with conducting business with the U.S. government or its
suppliers (both directly and indirectly); governmental export and
import controls that certain of our products may be subject to,
including export licensing, customs regulations, economic sanctions
or other laws; cybersecurity threats or incidents that could arise
on our information technology systems which could disrupt business
operations and adversely impact our reputation and operating
results and potentially lead to litigation and/or governmental
investigations; changes in fiscal and tax policies, audits and
examinations by taxing authorities, laws, regulations and guidance
in the United States and foreign jurisdictions, including related
interpretations of certain provisions of the Tax Cuts and Jobs Act
of 2017; any difficulties in protecting the Company’s intellectual
property rights; and litigation, customer claims, product recalls,
governmental investigations, criminal liability or environmental
matters. In addition, the extent to which the COVID-19 pandemic
will continue to impact our business and financial results going
forward will be dependent on future developments such as the length
and severity of the crisis, the potential resurgence of the crisis,
future government actions in response to the crisis and the overall
impact of the COVID-19 pandemic on the global economy and capital
markets, among many other factors, all of which remain highly
uncertain and unpredictable.
A further description of these uncertainties and other risks can
be found in the Company’s Annual Report on Form 10-K for the year
ended December 31, 2019, Quarterly Reports on Form 10-Q and the
Company’s other reports filed with the Securities and Exchange
Commission. These or other uncertainties may cause the Company’s
actual future results to be materially different from those
expressed in any forward-looking statements. The Company undertakes
no obligation to update or revise any forward-looking statements
except as required by law.
Non-GAAP Financial Measures
The financial statements included within this press release are
prepared in accordance with accounting principles generally
accepted in the United States of America (“GAAP”). This press
release also contains certain non-GAAP financial information,
including Adjusted Operating Income, Adjusted Operating Margin,
Adjusted Net Income attributable to Amphenol Corporation, Adjusted
Effective Tax Rate and Adjusted Diluted EPS (collectively,
“non-GAAP financial measures”), which are intended to supplement
the reported GAAP results. Management utilizes these non-GAAP
financial measures as part of its internal reviews for purposes of
monitoring, evaluating and forecasting the Company’s financial
performance, communicating operating results to the Company’s Board
of Directors and assessing related employee compensation measures.
Management believes that such non-GAAP financial measures may be
helpful to investors in assessing the Company’s overall financial
performance, trends and period-over-period comparative results.
Non-GAAP financial measures discussed within this press release
exclude income and expenses that are not directly related to the
Company’s operating performance during the periods presented. Items
excluded in the presentation of the non-GAAP financial measures in
any period may consist of, without limitation, acquisition-related
expenses, refinancing-related costs and certain discrete tax items
including but not limited to the excess tax benefits related to
stock-based compensation as well as the impact of significant
changes in tax law. Reconciliations of non-GAAP financial measures
to the most directly comparable GAAP financial measures are
included at the end of this press release. However, such non-GAAP
financial measures should not be considered in isolation, as a
substitute for or superior to the related GAAP financial measures.
In addition, these non-GAAP financial measures are not necessarily
the same or comparable to similar measures presented by other
companies, as such measures may be calculated differently or may
exclude different items. The non-GAAP financial measures are
defined within the “Supplemental Financial Information” table at
the end of this press release and should be read in conjunction
with the Company’s financial statements presented in accordance
with GAAP.
1 All referenced non-GAAP financial measures are defined in the
tables at the end of this press release.
AMPHENOL CORPORATION CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (dollars and shares
in millions, except per share data)
Three Months Ended
Six Months Ended
June 30,
June 30,
2020
2019
2020
2019
Net sales
$
1,987.5
$
2,015.3
$
3,849.5
$
3,973.8
Cost of sales
1,383.7
1,367.7
2,685.9
2,698.4
Gross profit
603.8
647.6
1,163.6
1,275.4
Acquisition-related expenses
—
8.9
—
25.4
Selling, general and administrative
expenses
246.4
239.2
489.3
474.3
Operating income
357.4
399.5
674.3
775.7
Interest expense
(30.2
)
(30.0
)
(59.0
)
(59.7
)
Other income, net
1.3
0.1
2.4
3.1
Income before income taxes
328.5
369.6
617.7
719.1
Provision for income taxes (1)
(68.0
)
(78.7
)
(114.0
)
(158.3
)
Net income
260.5
290.9
503.7
560.8
Less: Net income attributable to
noncontrolling interests
(2.8
)
(2.5
)
(3.9
)
(4.8
)
Net income attributable to Amphenol
Corporation
$
257.7
$
288.4
$
499.8
$
556.0
Net income per common share - Basic
$
0.87
$
0.97
$
1.68
$
1.87
Weighted average common shares outstanding
- Basic
296.6
298.0
297.0
298.1
Net income per common share - Diluted
(2)
$
0.85
$
0.93
$
1.64
$
1.80
Weighted average common shares outstanding
- Diluted
304.0
308.7
305.2
308.7
_______________________________
Note 1
Provision for income taxes for the three
months ended June 30, 2020 and 2019 includes excess tax benefits
related to stock-based compensation of $12.4 million ($0.04 per
share) and $12.9 million ($0.04 per share), respectively. Provision
for income taxes for the six months ended June 30, 2020 and 2019
includes excess tax benefits related to stock-based compensation of
$17.4 million ($0.06 per share) and $19.7 million ($0.06 per
share), respectively. Provision for income taxes for the six months
ended June 30, 2020 also includes a discrete tax benefit of $19.9
million ($0.06 per share) related to the settlements of refund
claims in certain non-U.S. jurisdictions and the resulting
adjustments to deferred taxes.
Note 2
Net income per share for the three months
ended June 30, 2020 includes the excess tax benefits related to
stock-based compensation discussed in Note 1. Net income per share
for the three months ended June 30, 2019 includes the excess tax
benefits related to stock-based compensation discussed in Note 1,
partially offset by acquisition-related expenses of $8.9 million
($7.8 million after-tax or $0.03 per share) comprising of external
transaction costs of $5.7 million and the amortization of $3.2
million related to the value associated with acquired backlog from
an acquisition that closed in the second quarter of 2019.
Net income per share for the six months
ended June 30, 2020 includes (i) the discrete tax benefit and (ii)
excess tax benefits related to stock-based compensation, each
discussed in Note 1. Net income per share for the six months ended
June 30, 2019 includes acquisition-related expenses of $25.4
million ($21.0 million after-tax or $0.07 per share) comprising of
the amortization of $15.7 million related to the value associated
with acquired backlog primarily from the SSI acquisition, as well
as external transaction costs of $9.7 million, partially offset by
the excess tax benefits related to stock-based compensation
discussed in Note 1.
Excluding these effects, Adjusted Diluted
EPS, a non-GAAP financial measure which is defined and reconciled
to its most comparable GAAP financial measure in this press
release, was $0.81 and $0.92 for the three months ended June 30,
2020 and 2019, respectively, and $1.52 and $1.81 for the six months
ended June 30, 2020 and 2019, respectively.
AMPHENOL CORPORATION CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited) (dollars in
millions)
June 30,
December 31,
2020
2019
ASSETS
Current Assets:
Cash and cash equivalents
$
1,288.3
$
891.2
Short-term investments
25.7
17.4
Total cash, cash equivalents and
short-term investments
1,314.0
908.6
Accounts receivable, less allowance for
doubtful accounts of $43.6 and $33.6, respectively
1,658.3
1,736.4
Inventories
1,361.9
1,310.1
Prepaid expenses and other current
assets
283.8
256.1
Total current assets
4,618.0
4,211.2
Property, plant and equipment, less
accumulated depreciation of $1,578.7 and $1,487.2, respectively
1,001.7
999.0
Goodwill
4,867.0
4,867.1
Other intangible assets, net
416.2
442.0
Other long-term assets
301.0
296.2
$
11,203.9
$
10,815.5
LIABILITIES & EQUITY
Current Liabilities:
Accounts payable
$
928.0
$
866.8
Accrued salaries, wages and employee
benefits
179.0
171.8
Accrued income taxes
119.1
127.9
Accrued dividends
74.6
74.4
Other accrued expenses
482.2
488.5
Current portion of long-term debt
2.3
403.3
Total current liabilities
1,785.2
2,132.7
Long-term debt, less current portion
3,763.8
3,203.4
Accrued pension and postretirement benefit
obligations
187.3
198.8
Deferred income taxes
270.7
260.4
Other long-term liabilities
396.6
424.0
Equity:
Common stock
0.3
0.3
Additional paid-in capital
1,834.5
1,683.3
Retained earnings
3,419.4
3,348.4
Treasury stock, at cost
(21.0
)
(70.8
)
Accumulated other comprehensive loss
(494.6
)
(430.9
)
Total shareholders’ equity attributable to
Amphenol Corporation
4,738.6
4,530.3
Noncontrolling interests
61.7
65.9
Total equity
4,800.3
4,596.2
$
11,203.9
$
10,815.5
AMPHENOL CORPORATION CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) (dollars in
millions)
Six Months Ended
June 30,
2020
2019
Cash from operating activities:
Net income
$
503.7
$
560.8
Adjustments to reconcile net income to
cash provided by operating activities:
Depreciation and amortization
143.6
163.4
Stock-based compensation expense
32.0
29.8
Deferred income tax provision
(benefit)
5.1
(23.6
)
Net change in components of working
capital
70.8
(66.6
)
Net change in other long-term assets and
liabilities
(2.8
)
2.2
Net cash provided by operating
activities
752.4
666.0
Cash from investing activities:
Capital expenditures
(128.3
)
(149.9
)
Proceeds from disposals of property, plant
and equipment
1.9
5.5
Purchases of short-term investments
(49.1
)
(36.9
)
Sales and maturities of short-term
investments
40.3
34.4
Acquisitions, net of cash acquired
(16.5
)
(756.2
)
Net cash used in investing activities
(151.7
)
(903.1
)
Cash from financing activities:
Proceeds from issuance of senior notes
942.3
499.5
Repayments of senior notes and other
long-term debt
(401.3
)
(757.8
)
Borrowings under credit facilities
1,567.4
—
Repayments under credit facilities
(1,568.1
)
—
(Repayments) borrowings under commercial
paper programs, net
(385.2
)
667.5
Payment of costs related to debt
financing
(8.7
)
(7.2
)
Payment of acquisition-related contingent
consideration
(75.0
)
—
Proceeds from exercise of stock
options
152.5
113.5
Distributions to and purchases of
noncontrolling interests
(9.7
)
(24.6
)
Purchase of treasury stock
(257.2
)
(408.7
)
Dividend payments
(148.4
)
(137.2
)
Net cash used in financing activities
(191.4
)
(55.0
)
Effect of exchange rate changes on cash
and cash equivalents
(12.2
)
(4.9
)
Net change in cash and cash
equivalents
397.1
(297.0
)
Cash and cash equivalents balance,
beginning of period
891.2
1,279.3
Cash and cash equivalents balance, end of
period
$
1,288.3
$
982.3
Cash paid for:
Interest
$
47.2
$
57.8
Income taxes, net
141.6
241.7
AMPHENOL CORPORATION SEGMENT
INFORMATION (Unaudited) (dollars in millions)
Three Months Ended
Six Months Ended
June 30,
June 30,
2020
2019
2020
2019
Net
sales:
Interconnect Products and Assemblies
$
1,898.5
$
1,925.6
$
3,677.5
$
3,788.3
Cable Products and Solutions
89.0
89.7
172.0
185.5
Consolidated Net sales
$
1,987.5
$
2,015.3
$
3,849.5
$
3,973.8
Operating
income:
Interconnect Products and Assemblies
$
379.5
$
428.4
$
719.2
$
838.5
Cable Products and Solutions
8.4
8.7
14.8
19.1
Stock-based compensation expense
(16.6
)
(15.4
)
(32.0
)
(29.8
)
Acquisition-related expenses
—
(8.9
)
—
(25.4
)
Other operating expenses
(13.9
)
(13.3
)
(27.7
)
(26.7
)
Consolidated Operating income
$
357.4
$
399.5
$
674.3
$
775.7
Operating margin
(%):
Interconnect Products and Assemblies
20.0
%
22.2
%
19.6
%
22.1
%
Cable Products and Solutions
9.4
%
9.7
%
8.6
%
10.3
%
Stock-based compensation expense
-0.8
%
-0.8
%
-0.8
%
-0.7
%
Acquisition-related expenses
0.0
%
-0.5
%
0.0
%
-0.7
%
Other operating expenses
-0.7
%
-0.7
%
-0.7
%
-0.7
%
Consolidated Operating margin (%)
18.0
%
19.8
%
17.5
%
19.5
%
AMPHENOL CORPORATION SUPPLEMENTAL FINANCIAL
INFORMATION RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited) (dollars in millions, except per share data)
Management utilizes the non-GAAP financial measures defined
below as part of its internal reviews for purposes of monitoring,
evaluating and forecasting the Company’s financial performance,
communicating operating results to the Company’s Board of Directors
and assessing related employee compensation measures. Management
believes that such non-GAAP financial measures may be helpful to
investors in assessing the Company’s overall financial performance,
trends and period-over-period comparative results. The following
non-GAAP financial measures exclude income and expenses that are
not directly related to the Company’s operating performance during
the periods presented. Items excluded in the presentation of these
non-GAAP financial measures in any period may consist of, without
limitation, acquisition-related expenses, refinancing-related
costs, and certain discrete tax items including but not limited to
(i) the excess tax benefits related to stock-based compensation and
(ii) the impact of significant changes in tax law. The following
non-GAAP financial information is included for supplemental
purposes only and should not be considered in isolation, as a
substitute for or superior to the related U.S. GAAP financial
measures. In addition, these non-GAAP financial measures are not
necessarily the same or comparable to similar measures presented by
other companies, as such measures may be calculated differently or
may exclude different items. Such non-GAAP financial measures
should be read in conjunction with the Company’s financial
statements presented in accordance with U.S. GAAP.
The following are reconciliations of non-GAAP financial measures
to the most directly comparable U.S. GAAP financial measures for
the periods presented:
Three Months Ended June
30,
2020
2019
Net Income
Net Income
attributable
Effective
attributable
Effective
Operating
Operating
to Amphenol
Tax
Diluted
Operating
Operating
to Amphenol
Tax
Diluted
Income
Margin (1)
Corporation
Rate (1)
EPS
Income
Margin (1)
Corporation
Rate (1)
EPS
Reported (GAAP)
$
357.4
18.0
%
$
257.7
20.7
%
$
0.85
$
399.5
19.8
%
$
288.4
21.3
%
$
0.93
Acquisition-related expenses
-
-
-
-
-
8.9
0.5
7.8
(0.3
)
0.03
Excess tax benefits related to stock-based
compensation
-
-
(12.4
)
3.8
(0.04
)
-
-
(12.9
)
3.5
(0.04
)
Adjusted (non-GAAP) (2)
$
357.4
18.0
%
$
245.3
24.5
%
$
0.81
$
408.4
20.3
%
$
283.3
24.5
%
$
0.92
Six Months Ended June
30,
2020
2019
Net Income
Net Income
attributable
Effective
attributable
Effective
Operating
Operating
to Amphenol
Tax
Diluted
Operating
Operating
to Amphenol
Tax
Diluted
Income
Margin (1)
Corporation
Rate (1)
EPS
Income
Margin (1)
Corporation
Rate (1)
EPS
Reported (GAAP)
$
674.3
17.5
%
$
499.8
18.5
%
$
1.64
$
775.7
19.5
%
$
556.0
22.0
%
$
1.80
Acquisition-related expenses
-
-
-
-
-
25.4
0.7
21.0
(0.2
)
0.07
Excess tax benefits related to stock-based
compensation
-
-
(17.4
)
2.8
(0.06
)
-
-
(19.7
)
2.7
(0.06
)
Discrete tax item
-
-
(19.9
)
3.2
(0.06
)
-
-
-
-
-
Adjusted (non-GAAP) (2)
$
674.3
17.5
%
$
462.5
24.5
%
$
1.52
$
801.1
20.2
%
$
557.3
24.5
%
$
1.81
______________________________
(1)
While the terms “operating margin” and “effective tax rate” are
not considered U.S. GAAP financial measures, for purposes of this
table, we derive the reported (GAAP) measures based on GAAP
results, which serve as the basis for the reconciliation to their
comparable non-GAAP financial measure.
(2)
The definitions of non-GAAP financial measures used are as follows:
Adjusted Operating Income is defined
as Operating Income (as reported in the Condensed Consolidated
Statements of Income), excluding income and expenses that are not
directly related to the Company’s operating performance during the
periods presented.
Adjusted Operating Margin is defined
as Adjusted Operating Income (as defined above) expressed as a
percentage of Net sales (as reported in the Condensed Consolidated
Statements of Income).
Adjusted Net Income attributable to
Amphenol Corporation is defined as Net Income attributable to
Amphenol Corporation (as reported in the Condensed Consolidated
Statements of Income), excluding income and expenses and their
specific tax effects that are not directly related to the Company’s
operating performance during the periods presented.
Adjusted Effective Tax Rate is defined
as Provision for income taxes (as reported in the Condensed
Consolidated Statements of Income) expressed as a percentage of
Income before income taxes (as reported in the Condensed
Consolidated Statements of Income), each excluding the income and
expenses and their specific tax effects that are not directly
related to the Company’s operating performance during the periods
presented.
Adjusted Diluted EPS is defined as
diluted earnings per share (as reported in accordance with U.S.
GAAP), excluding income and expenses and their specific tax effects
that are not directly related to the Company’s operating
performance during the periods presented. Adjusted Diluted EPS is
calculated as Adjusted Net Income attributable to Amphenol
Corporation, as defined above, divided by the weighted average
outstanding diluted shares (as reported in the Condensed
Consolidated Statements of Income).
AMPHENOL CORPORATION SUPPLEMENTAL FINANCIAL
INFORMATION RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
- GUIDANCE (Unaudited) (dollars in millions, except per share
data)
Management utilizes the non-GAAP financial measures defined
earlier as part of its internal reviews for purposes of monitoring,
evaluating and forecasting the Company’s financial performance,
communicating operating results to the Company's Board of Directors
and assessing related employee compensation measures. Management
believes that such non-GAAP financial measures may be helpful to
investors in assessing the Company’s overall financial performance,
trends and period-over-period comparative results. Adjusted Diluted
EPS, a non-GAAP financial measure, excludes income and expenses
that are not directly related to the Company's operating
performance during the periods presented. Items excluded in the
presentation of this non-GAAP financial measure in any period may
consist of, without limitation, acquisition-related expenses,
refinancing-related costs, and certain discrete tax items including
but not limited to (i) the excess tax benefits related to
stock-based compensation and (ii) the impact of significant changes
in tax law. Adjusted Diluted EPS is not necessarily the same or
comparable to similar measures presented by other companies, as
such measures may be calculated differently or may exclude
different items. Such non-GAAP financial measure should be read in
conjunction with the Company’s financial statements presented in
accordance with U.S. GAAP.
The Company excludes the above items in its guidance for the
upcoming quarter only to the extent that the Company reasonably
expects to record such items in the forward-looking period
presented and such amounts are estimable. As the Company has not
yet identified any such items for the forward-looking period
presented, there are currently no reconciling items for the three
months ended September 30, 2020.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200722005183/en/
Craig A. Lampo Senior Vice President and Chief Financial Officer
203-265-8625 www.amphenol.com
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