First Quarter 2021 Highlights:
- Sales of $2.377 billion, up 28% in U.S. dollars and 23%
organically1 compared to the first quarter 2020
- GAAP diluted EPS of $0.53, up 33% compared to the prior year
period
- Adjusted Diluted EPS1 of $0.52, up 49% compared to the prior
year period
- Operating margin of 19.6%
- Operating Cash Flow of $321 million and Free Cash Flow1 of $243
million
- Announces closing of two new acquisitions during the quarter,
Euromicron and Cabelcon
- Closed on the acquisition of MTS Systems Corporation
- Announces a new three-year, $2 billion open market stock
repurchase program
Amphenol Corporation (NYSE: APH) today reported first quarter
2021 results and announced a new three-year, $2 billion stock
repurchase program.
“I am very proud that our team drove results that significantly
exceeded our expectations in the first quarter 2021, while still
prioritizing the safety and health of our employees worldwide
amidst the ongoing COVID-19 pandemic,” said Amphenol President and
Chief Executive Officer, R. Adam Norwitt.
“We are pleased to have closed the first quarter with sales and
Adjusted Diluted EPS exceeding the high end of our guidance. Sales
increased by a strong 28% in the quarter, with growth in nearly all
markets, driven in particular by the automotive, mobile devices,
industrial and IT datacom markets.”
“Amphenol continued to deploy its financial strength in a
variety of ways to increase shareholder value in the first quarter.
To that end, the Company purchased 2.4 million shares of its common
stock for $153 million, bringing total share repurchases under the
2018 stock repurchase program to 40.3 million shares, or $1.95
billion. The Company also paid dividends of $87 million, resulting
in total capital returned to shareholders during the first quarter
of $240 million.”
“We remain focused on expanding our 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.
To that end, and as previously announced on April 7, 2021, we are
excited to have closed the acquisition of MTS Systems Corporation
(“MTS”), and look forward to closing the sale of the MTS Test &
Simulation business to Illinois Tool Works Inc. (NYSE: ITW)
following the receipt of all required regulatory approvals and
satisfaction of other customary closing conditions.”
“In addition to the MTS acquisition, we are excited to have
closed two new acquisitions since January, Euromicron and Cabelcon.
In February, we closed on the acquisition of Euromicron Werkzeuge
GmbH and its sister company LWL-Sachsenkabel GmbH (collectively,
“Euromicron”) from the Gustav Zech Foundation. Based in Germany and
with annual sales of approximately $25 million, Euromicron is a
manufacturer of highly engineered fiber optic interconnect
solutions for the mobile networks and IT datacom markets. In March,
we closed on the acquisition of the Cabelcon business of Corning
Incorporated (NYSE: GLW). Based in Denmark with annual sales of
approximately $25 million, Cabelcon is a designer and manufacturer
of high-technology connectors and interconnect assemblies primarily
for the broadband market. The five acquisitions we have completed
so far this year strengthen the Company’s global capabilities and
enhance our product offerings, while adding talented management
teams to the Amphenol family. With our long-term, successful
acquisition program, we look forward to creating more value in the
future by bringing additional outstanding businesses into
Amphenol.”
New Stock Repurchase Program
During April 2021, the Company purchased the remaining
authorized amount of common stock under its existing three-year, $2
billion stock repurchase plan. As a result, on April 27, 2021, the
Company’s Board of Directors approved a new three-year, $2 billion
open market stock repurchase plan.
Second Quarter 2021 Outlook
Given the current dynamic market environment and assuming no new
material disruptions from the COVID-19 pandemic as well as constant
exchange rates, for the second quarter 2021, Amphenol expects sales
to be in the range of $2.415 billion to $2.475 billion,
representing 22% to 25% growth over the second quarter of 2020, and
Adjusted Diluted EPS from continuing operations in the range of
$0.53 to $0.55, representing 33% to 38% growth over the second
quarter of 2020. The Company’s guidance excludes cash and non-cash
costs related to the MTS acquisition. These costs are currently
expected to be approximately $85 million, or $0.12 per diluted
share, and include expenses related to the early extinguishment of
debt, non-cash purchase accounting related expenses, external
transaction expenses, severance and other costs.
“Despite the ongoing challenges and uncertainties posed by the
COVID-19 pandemic, we are encouraged by the platform of strength
that has been created by the Company’s performance,” Mr. Norwitt
continued. “The electronics revolution continues to create exciting
long-term growth opportunities for Amphenol across each of our
diversified end markets, with customers driving their products and
networks to achieve ever higher levels of performance. We believe
these opportunities will enable a long-term increase in demand for
our expanded range of high-technology interconnect, sensor and
antenna products. Our ongoing actions to leverage our competitive
advantages and create sustained financial strength, as well as our
initiatives to expand our high-technology product offerings, both
organically and through our acquisition program, have created an
excellent base for the Company’s future performance. I 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
sustainable value for the long-term. Most importantly, I continue
to be truly grateful to our team for their extraordinary efforts to
protect the safety and health of our employees around the world,
while continuing to strongly support our customers and drive
outstanding operating performance.”
2-for-1 Stock Split
As announced on January 27, 2021, the Company’s Board of
Directors approved a 2-for-1 stock split, which was paid in the
form of a stock dividend to shareholders of record as of the close
of business on February 16, 2021. The additional shares were
distributed on March 4, 2021 and the Company’s common stock began
trading on a split-adjusted basis on March 5, 2021. The effect of
the stock split on the Company’s financial results, including all
share and per share data for both the current and prior year
periods, is reflected in this press release.
Conference Call and Webcast Details
The Company will host a conference call to discuss its first
quarter results at 1:00 PM (EDT) Wednesday, April 28, 2021. 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 Friday, May 28, 2021. The replay numbers are toll free
800-395-7443; International toll number +1-203-369-3271; Passcode:
7183.
A live broadcast as well as a replay of the call can be accessed
through the Investor Relations section of the company’s website at
https://investors.amphenol.com.
About Amphenol
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.
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 measures,
including Adjusted Operating Income, Adjusted Operating Margin,
Adjusted Net Income attributable to Amphenol Corporation, Adjusted
Effective Tax Rate, Adjusted Diluted EPS, Organic Sales Growth, and
Free Cash Flow (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, in addition to the reasons
noted later within this press release. Non-GAAP financial measures
related to operating income, operating margin, net income
attributable to Amphenol Corporation, effective tax rate and
diluted EPS 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. Non-GAAP financial
measures related to net sales exclude the impact related to foreign
currency exchange and acquisitions. 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.
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. All statements that address events or developments
that we expect or believe may or will occur in the future are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The forward-looking
statements, which address the Company’s expected business and
financial performance and financial condition as well as
expectations regarding the anticipated timing and estimated
expenses associated with the closing of certain acquisitions and
divestitures, among other matters, may contain words and terms such
as: “anticipate,” “believe,” “continue,” “could,” “estimate,”
“expect,” “forecast,” “guidance,” “intend,” “look ahead,” “may,”
“ongoing,” “optimistic,” “plan,” “potential,” “predict,” “project,”
“seek,” “should,” “target,” “will” or “would” and other words and
terms 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
forward-looking statements related in any way to (i) the COVID-19
pandemic including its future impact on the Company, (ii) the
expected acquisition costs associated with the MTS transaction and
(iii) the expected closing of the divestiture of the MTS Test &
Simulation business to Illinois Tool Works Inc., which divestiture
transaction may not be completed in a timely manner or at all.
Although the Company believes the expectations reflected in all
forward-looking statements, including those regarding second
quarter 2021 sales, Adjusted Diluted EPS from continuing operations
and acquisition-related costs associated with the MTS acquisition,
among other matters, 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.
There are risks and uncertainties that could cause actual
results to differ materially from these forward-looking statements,
which include, but are not limited to, the following: future risks
and existing uncertainties associated with adverse public health
developments, including epidemics and pandemics such as the
COVID-19 pandemic, which continues to disrupt our operations
including, depending on the specific location, government
regulations that limit our ability to operate certain of our
facilities at full capacity and to adjust certain costs, travel
restrictions, “work-from-home” orders, 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 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 or cause the release of highly sensitive confidential
information 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; any difficulties in
protecting the Company’s intellectual property rights; and
litigation, customer claims, product recalls, governmental
investigations, criminal liability or environmental matters
including changes to laws and regulations to which the Company may
be subject. 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, future government regulations and
actions in response to the crisis, the timing, availability and
effectiveness of vaccines, 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, 2020, 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.
____________________________________ 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
March 31,
2021
2020
Net sales
$
2,377.1
$
1,862.0
Cost of sales
1,649.6
1,302.2
Gross profit
727.5
559.8
Selling, general and administrative
expenses
262.7
242.9
Operating income
464.8
316.9
Interest expense
(28.6)
(28.8)
Other (expense) income, net
(0.3)
1.1
Income before income taxes
435.9
289.2
Provision for income taxes (1)
(104.1)
(46.0)
Net income
331.8
243.2
Less: Net income attributable to
noncontrolling interests
(2.2)
(1.1)
Net income attributable to Amphenol
Corporation
$
329.6
$
242.1
Net income per common share - Basic
$
0.55
$
0.41
Weighted average common shares outstanding
- Basic
598.5
594.9
Net income per common share - Diluted
(2)
$
0.53
$
0.40
Weighted average common shares outstanding
- Diluted
624.1
612.9
__________________________________
Note 1 Provision
for income taxes for the three months ended March 31, 2021 and 2020
includes excess tax benefits related to stock-based compensation of
$2.6 million ($0.00 per share) and $5.0 million ($0.01 per share),
respectively. Provision for income taxes for the three months ended
March 31, 2020 also includes a discrete tax benefit of $19.9
million ($0.03 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 March 31, 2021 and 2020 includes
excess tax benefits related to stock-based compensation discussed
in Note 1. Net income per share for the three months ended March
31, 2020 also includes the discrete tax benefit discussed in Note
1. Excluding these effects and the impact of rounding,
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 $0.52 and $0.35 for the three months ended
March 31, 2021 and 2020, respectively.
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(dollars in millions)
March 31,
December 31,
2021
2020
ASSETS
Current Assets:
Cash and cash equivalents
$
2,327.6
$
1,702.0
Short-term investments
33.6
36.1
Total cash, cash equivalents and
short-term investments
2,361.2
1,738.1
Accounts receivable, less allowance for
doubtful accounts of $43.3 and $44.8, respectively
1,931.8
1,951.6
Inventories
1,565.1
1,462.2
Prepaid expenses and other current
assets
328.6
338.9
Total current assets
6,186.7
5,490.8
Property, plant and equipment, less
accumulated depreciation of $1,767.5 and $1,738.6, respectively
1,076.2
1,054.6
Goodwill
5,093.0
5,032.1
Other intangible assets, net
410.3
397.5
Other long-term assets
367.3
352.3
$
13,133.5
$
12,327.3
LIABILITIES & EQUITY
Current Liabilities:
Accounts payable
$
1,070.7
$
1,120.7
Accrued salaries, wages and employee
benefits
191.9
195.4
Accrued income taxes
129.4
112.6
Accrued dividends
86.6
86.8
Other accrued expenses
542.9
558.5
Current portion of long-term debt
526.4
230.3
Total current liabilities
2,547.9
2,304.3
Long-term debt, less current portion
4,110.3
3,636.2
Accrued pension and postretirement benefit
obligations
224.8
228.6
Deferred income taxes
314.8
299.1
Other long-term liabilities
414.0
407.2
Equity:
Common stock
0.6
0.6
Additional paid-in capital
2,105.7
2,068.1
Retained earnings
3,807.1
3,705.4
Treasury stock, at cost
(117.4)
(111.1)
Accumulated other comprehensive loss
(335.0)
(278.1)
Total shareholders’ equity attributable to
Amphenol Corporation
5,461.0
5,384.9
Noncontrolling interests
60.7
67.0
Total equity
5,521.7
5,451.9
$
13,133.5
$
12,327.3
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOW
(Unaudited)
(dollars in millions)
Three Months Ended
March 31,
2021
2020
Cash from operating activities:
Net income
$
331.8
$
243.2
Adjustments to reconcile net income to
cash provided by operating activities:
Depreciation and amortization
76.7
72.1
Stock-based compensation expense
19.1
15.4
Deferred income tax provision
14.2
13.4
Net change in components of working
capital
(114.6)
43.8
Net change in other long-term assets and
liabilities
(6.2)
(3.6)
Net cash provided by operating
activities
321.0
384.3
Cash from investing activities:
Capital expenditures
(78.4)
(60.8)
Proceeds from disposals of property, plant
and equipment
0.9
1.2
Purchases of short-term investments
(46.2)
(12.0)
Sales and maturities of short-term
investments
48.5
17.7
Acquisitions, net of cash acquired
(185.6)
(16.5)
Other
(2.4)
—
Net cash used in investing activities
(263.2)
(70.4)
Cash from financing activities:
Proceeds from issuance of senior notes and
other long-term debt
1.2
399.3
Repayments of senior notes and other
long-term debt
(0.8)
(0.3)
Borrowings under credit facilities
—
1,567.4
Repayments under credit facilities
—
(215.0)
Borrowings (repayments) under commercial
paper programs, net
811.9
(250.4)
Payment of costs related to debt
financing
—
(3.9)
Proceeds from exercise of stock
options
21.1
30.0
Distributions to and purchases of
noncontrolling interests
(7.6)
(8.1)
Purchase of treasury stock
(152.8)
(257.2)
Dividend payments
(86.8)
(74.4)
Net cash provided by financing
activities
586.2
1,187.4
Effect of exchange rate changes on cash
and cash equivalents
(18.4)
(20.2)
Net change in cash and cash
equivalents
625.6
1,481.1
Cash and cash equivalents balance,
beginning of period
1,702.0
891.2
Cash and cash equivalents balance, end of
period
$
2,327.6
$
2,372.3
Cash paid for:
Interest
$
28.1
$
22.0
Income taxes, net
75.2
64.2
AMPHENOL CORPORATION
SEGMENT INFORMATION
(Unaudited)
(dollars in millions)
Three Months Ended
March 31,
2021
2020
Net
sales:
Interconnect Products and Assemblies
$
2,280.0
$
1,779.0
Cable Products and Solutions
97.1
83.0
Consolidated Net sales
$
2,377.1
$
1,862.0
Operating
income:
Interconnect Products and Assemblies
$
489.4
$
339.8
Cable Products and Solutions
8.5
6.3
Stock-based compensation expense
(19.1)
(15.4)
Other operating expenses
(14.0)
(13.8)
Consolidated Operating income
$
464.8
$
316.9
Operating margin
(%):
Interconnect Products and Assemblies
21.5%
19.1%
Cable Products and Solutions
8.8%
7.6%
Stock-based compensation expense
-0.8%
-0.8%
Other operating expenses
-0.6%
-0.7%
Consolidated Operating margin (%)
19.6%
17.0%
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. Non-GAAP
financial measures related to net sales exclude the impact of
foreign currency exchange rates and acquisitions. Non-GAAP
financial measures related to operating income, operating margin,
net income attributable to Amphenol Corporation, effective tax rate
and diluted EPS exclude income and expenses that are not directly
related to the Company’s operating performance during the periods
presented. Items excluded from such 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:
NET
SALES
Percentage Growth (relative to
same prior year period)
Net sales
Foreign
Constant
Organic
growth in
currency
Currency Net
Acquisition
Net Sales
U.S. Dollars (1)
impact (2)
Sales Growth (4)
impact (3)
Growth (4)
Three Months Ended March 31:
2021
2020
(GAAP)
(non-GAAP)
(non-GAAP)
(non-GAAP)
(non-GAAP)
Net sales:
Interconnect Products and Assemblies
$
2,280.0
$
1,779.0
28
%
3
%
25
%
2
%
23
%
Cable Products and Solutions
97.1
83.0
17
%
(1)
%
18
%
—
%
18
%
Consolidated
$
2,377.1
$
1,862.0
28
%
3
%
25
%
2
%
23
%
(1)
Net sales growth in U.S. dollars is calculated based
on Net sales as reported in the Condensed Consolidated Statements
of Income. While the term “net sales growth in U.S. dollars” is not
considered a U.S. GAAP financial measure, for purposes of this
table, we derive the reported (GAAP) measure based on GAAP results,
which serves as the basis for the reconciliation to its comparable
non-GAAP financial measures.
(2)
Foreign currency translation impact, a non-GAAP
measure, represents the impact on net sales resulting from foreign
currency exchange rate changes in the current year period(s)
compared to the same period(s) in the prior year. Such amount is
calculated by subtracting current year net sales translated at
average foreign currency exchange rates for the respective prior
year period(s) from current year reported net sales, taken as a
percentage of the respective prior period net sales.
(3)
Acquisition impact, a non-GAAP measure, represents
the impact on net sales resulting from acquisitions closed since
the beginning of the prior calendar year, which were not included
in the Company’s results as of the comparable prior year periods
and which do not reflect the underlying growth of the Company on a
comparative basis.
(4)
The following are definitions of certain non-GAAP financial
measures presented in the table(s) above, which may be referred to
within this press release. For purposes of this press release, the
terms “constant currencies” and “organically” have the same
meaning, respectively, as the following non-GAAP financial
measures, respectively:
Constant Currency
Net Sales Growth is defined as the period-over-period
percentage change in net sales growth, excluding the impact of
changes in foreign currency exchange rates. The Company’s results
are subject to volatility related to foreign currency translation
fluctuations. As such, management evaluates the Company’s sales
performance based on actual sales growth in U.S. dollars, as well
as Organic Net Sales Growth (defined below) and Constant Currency
Net Sales Growth, and believes that such information is useful to
investors to assess the underlying sales trends.
Organic Net Sales Growth is defined as the
period-over-period percentage change in net sales growth resulting
from operating volume and pricing changes, and excludes the impact
of (i) changes in foreign currency exchange rates, which directly
impact the Company’s operating results and are outside the control
of the Company and (ii) acquisitions closed since the beginning of
the prior calendar year, which were not included in the Company’s
results as of the comparable prior year periods and which do not
reflect the underlying growth of the Company on a comparative
basis. Management evaluates the Company’s sales performance based
on actual sales growth in U.S. dollars, as well as Constant
Currency Net Sales Growth (defined above) and Organic Net Sales
Growth, and believes that such information is useful to investors
to assess the underlying sales trends.
AMPHENOL CORPORATION SUPPLEMENTAL
FINANCIAL INFORMATION RECONCILIATIONS OF GAAP TO NON-GAAP
FINANCIAL MEASURES (continued) (Unaudited) (dollars
in millions, except per share data)
OPERATING
RESULTS
Three Months Ended March
31,
2021
2020
Net Income
Net Income
attributable
Effective
attributable
Effective
Operating
Operating
to Amphenol
Tax
Diluted
Operating
Operating
to Amphenol
Tax
Diluted
Income
Margin (i)
Corporation
Rate (i)
EPS
Income
Margin (i)
Corporation
Rate (i)
EPS
Reported (GAAP)
$
464.8
19.6
%
$
329.6
23.9
%
$
0.53
$
316.9
17.0
%
$
242.1
15.9
%
$
0.40
Excess tax benefits related to stock-based
compensation
—
—
(2.6)
0.6
—
—
—
(5.0)
1.7
(0.01)
Discrete tax item
—
—
—
—
—
—
—
(19.9)
6.9
(0.03)
Adjusted (non-GAAP) (ii) (iii)
$
464.8
19.6
%
$
327.0
24.5
%
$
0.52
$
316.9
17.0
%
$
217.2
24.5
%
$
0.35
FREE CASH
FLOW
Three Months Ended
March 31,
2021
2020
Operating Cash Flow (GAAP)
$
321.0
$
384.3
Capital expenditures (GAAP)
(78.4)
(60.8)
Proceeds from disposals of property, plant
and equipment (GAAP)
0.9
1.2
Free Cash Flow (non-GAAP) (iii)
$
243.5
$
324.7
(i) 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. (ii) All percentages
and per share amounts in this table were calculated using actual,
unrounded results; therefore, the sum of the components may not add
due to rounding. (iii) The following are definitions of
non-GAAP financial measures presented in the tables above, which
may be referred to within this press release:
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).
Free Cash
Flow is defined as (i) Net cash provided by operating
activities (“Operating Cash Flow” - as reported in accordance with
U.S. GAAP) less (ii) capital expenditures (as reported in
accordance with U.S. GAAP), net of proceeds from disposals of
property, plant and equipment (as reported in accordance with U.S.
GAAP), all of which are derived from the Condensed Consolidated
Statements of Cash Flow. Free Cash Flow is an important liquidity
measure for the Company, as we believe it is useful for management
and investors to assess our ability to generate cash, as well as to
assess how much cash can be used to reinvest in the growth of the
Company or to return to shareholders through either stock
repurchases or dividends.
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 from such
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. All non-GAAP
financial measures and their most directly comparable U.S. GAAP
financial measures presented in the following table are on a
continuing operations basis and exclude any discontinued
operations. 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 following is a reconciliation from GAAP Diluted earnings per
share (Diluted EPS) to Adjusted Diluted EPS (non-GAAP) as it
relates to current guidance for the second quarter of 2021:
GUIDANCE (1)
SECOND QUARTER 2021
Diluted EPS (GAAP)
$0.41 - $0.43
Estimated acquisition-related expenses,
net of tax
0.12
Adjusted Diluted EPS (non-GAAP)
$0.53 - $0.55
____________________________________
(1)
Forward-looking guidance included
in this press release and related to Net sales and/or Adjusted
Diluted EPS reflects only the Company’s results on a continuing
operations basis and does not include the anticipated results
associated with the MTS Test & Simulation (“MTS T&S”)
business which we expect to divest later in 2021. Forward-looking
Adjusted Diluted EPS reflected in our guidance excludes certain
income and expenses, described above, that are not directly related
to the Company's operating performance, only to the extent that
such items have either (i) already been reflected in periods
reported and are therefore included in the forward-looking
full-year period or (ii) the Company reasonably expects to record
such items in the forward-looking periods presented and such
amounts are estimable. The Company expects to incur
acquisition-related expenses associated with the MTS acquisition
related to the early extinguishment of debt, non-cash purchase
accounting expenses, external transaction expenses, severance and
other costs, which are currently expected to be approximately $85
million, or $0.12 per diluted share, for the upcoming second
quarter of 2021.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210428005252/en/
Sherri Scribner Vice President, Strategy and Investor Relations
203-265-8820 IR@amphenol.com
Amphenol (NYSE:APH)
Historical Stock Chart
From Mar 2024 to Apr 2024
Amphenol (NYSE:APH)
Historical Stock Chart
From Apr 2023 to Apr 2024