Amphenol Corporation Announces Record Fourth Quarter 2012 Results and New Stock Repurchase Program

  Amphenol Corporation Announces Record Fourth Quarter 2012 Results and New
  Stock Repurchase Program

Business Wire

WALLINGFORD, Conn. -- January 17, 2013

Amphenol Corporation (NYSE-APH) reported today fourth quarter 2012 record
diluted earnings per share, before one-time charges, of $.94 compared to $.73
per share for the comparable 2011 period. On an as reported basis, diluted
earnings per share were $.86 and $.69 for the fourth quarter of 2012 and 2011,
respectively. Such per share amount for the 2012 period includes one-time
charges of $.08 per share comprised of acquisition related transaction costs
(Acquisition Costs) of $2 million ($2 million after tax) or $.01 per share
relating to 2012 acquisitions; and income tax costs of $11 million or $.07 per
share resulting from the delay, by the U. S. government, in the reinstatement
of certain federal income tax provisions for the year 2012 relating primarily
to research and development credits and certain U.S. taxes on foreign income.
Such tax provisions were reinstated on January 2, 2013 with retroactive effect
to 2012. Under U.S. GAAP, the related benefit to the Company of $11 million or
$.07 per share relating to the 2012 tax year will be recorded as a one-time
benefit in the first quarter of 2013 at the date of reinstatement; as such,
between the two quarters, there is no net impact on the Company from an income
statement perspective. Such per share amount for the 2011 period included
one-time charges of $.04 comprised of $9 million ($5 million after tax), or a
$.03 per share charge relating to the previously reported flood damage at the
Company’s Sidney, New York facility (Flood Loss), and a $2 million ($2 million
after tax), or $.01 per share charge for Acquisition Costs. Sales for the
fourth quarter 2012 were a record $1.146 billion compared to $949 million for
the 2011 period. Currency translation had the effect of decreasing sales by
approximately $6 million in the fourth quarter 2012 compared to the 2011
period.

For the full year ended December 31, 2012, diluted earnings per share
excluding one-time charges was $3.47 compared to $3.05 for the 2011 period. On
an as reported basis, 2012 diluted earnings per share of $3.39 includes
one-time charges of $.08 per share described above and 2011 diluted earnings
per share of $3.05 includes the following one-time items: (1) a $21 million
($13 million after tax), or $.08 per share charge relating to the Flood Loss,
(2) a $2 million ($2 million after tax) or $.01 per share charge for
Acquisition Costs, (3) a $.03 per share ($4 million) benefit relating to a
reduction in international tax expense due to reserve adjustments and refunds
from the favorable settlement of certain tax positions and (4) a gain of $18
million ($11 million after tax), or $.06 per share benefit, related to the
adjustment of a contingent purchase obligation for a 2010 acquisition. Sales
for the full year ended December 31, 2012 were $4.292 billion compared to
$3.940 billion for the 2011 period. Currency translation had the effect of
decreasing sales by approximately $48 million for the full year 2012 period
compared to the 2011 period.

Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated “We
are pleased to report new records of performance in the fourth quarter of 2012
with sales of $1.146 billion and EPS before one-time items of $.94. Sales
increased by approximately 21% year-over-year and 4% sequentially. On a
year-over-year basis, we experienced growth in all markets with particular
strength in the mobile devices, wireless infrastructure, commercial aerospace
and broadband markets. Our strong growth is once again confirmation of the
significant benefits of the Company’s diversification, as well as our
management team’s ability to react quickly in a dynamic environment,
especially given the still high levels of uncertainty in most of the world’s
economies. In addition, it is extremely rewarding that the Company’s unique
entrepreneurial culture continues to drive an unwavering focus on
profitability resulting in another strong operating margin performance of
19.5%, (excluding one-time items) up 100 basis points from the prior year
quarter. Operating cash flow in the quarter was $207 million, an excellent
performance and confirmation of the quality of the Company’s earnings. I am
very proud of our organization as we continue to execute well.”

“We close 2012 having achieved revenues for the year in excess of $4 billion,
a major milestone in the progress of Amphenol. Our ongoing strategy of market
and geographic diversification combined with our strong commitment to
developing enabling technologies for our customers in all markets, both
through organic product development and through our acquisition program,
continues to expand the Company’s growth opportunities. Consistent with this
strategy, in the fourth quarter, the Company completed the acquisition of the
interconnect assembly business of Tel-Ad Electronics Ltd., a leading Israeli
supplier of value-added interconnect products for the communications,
industrial and medical markets with annual sales of approximately $60 million.
The acquisition significantly enhances the Company’s presence in this
strategic technology development location, and expands our value-add
capabilities in these significant end markets. In addition to our successful
acquisition program, the Company continues to deploy its financial strength in
a variety of other ways to increase shareholder value. These include the
purchase in this quarter of 2.5 million shares of the Company’s stock
completing the buyback authorized under the Company’s January 2011 20 million
share stock repurchase plan. As such, the Company’s Board of Directors has
authorized a new two year open market stock repurchase plan for up to 10
million shares of the Company’s common stock effective January 21, 2013.”

“The overall economic environment continues to be characterized by a high
level of market uncertainty. Considering such environment and assuming current
currency exchange rates, we expect first quarter 2013 revenues in the range of
$1.055 billion to $1.080 billion and diluted EPS (excluding one-time items) in
the range of $.84 to $.87. For the full year 2013, we expect to achieve
revenues and diluted EPS (excluding one-time items) in the range of $4.555
billion to $4.655 billion and $3.72 to $3.84, respectively, an increase in
revenues of 6% to 8% and in diluted EPS (excluding one-time items), of 7% to
11% over 2012. Despite the many uncertainties in the global economy, we
believe we can perform well in the dynamic electronics marketplace due to our
leading technology, increasing positions with our customers in diverse
markets, worldwide presence, lean cost structure, and agile, experienced and
entrepreneurial management team.”

“As we head into 2013, it is clear that the electronics revolution is
continuing, with new applications and higher performance requirements driving
increased demand for our leading interconnect technologies in all of our end
markets. This creates a significant, long-term growth opportunity for
Amphenol, as we continue to focus on enabling the electronics revolution
across the many diverse end markets we serve.  Importantly, our ongoing
actions to enhance our competitive advantages and build sustained financial
strength have created a solid base for future performance. I am  confident in
the ability of our outstanding management team to dynamically adjust to a
constantly changing market environment, to continue to generate strong
profitability and to further capitalize on the many opportunities to expand
our market position.”

The Company will host a conference call to discuss its fourth quarter results
at 1:00 PM (EST) January 17, 2013. The toll free dial-in number to participate
in this call is 888-395-9624; International dial-in number is 517-623-4547;
Passcode: Reardon. There will be a replay available until 11:59 P.M. (EST) on
January 20, 2013. The replay numbers are toll free 800-756-6235; International
toll number is 402-998-0454 Passcode: 5137.

A live broadcast as well as a replay will also be available on the Internet at
http://www.amphenol.com/investors/webcasts.php.

Amphenol Corporation is one of the world’s leading producers of electronic and
fiber optic connectors, cable and interconnect systems. Amphenol products are
engineered and manufactured in the Americas, Europe, Asia and Africa and sold
by a worldwide sales and marketing organization. Amphenol has a diversified
presence as a leader in high growth areas of the interconnect market
including: Military, Commercial Aerospace, Automotive, Broadband
Communications, Industrial, Telecommunications and Data Communications,
Wireless Devices and Wireless Infrastructure.

Statements in this press release which are other than historical facts are
intended to be “forward-looking statements” within the meaning of the
Securities Exchange Act of 1934, the Private Securities Litigation Reform Act
of 1995 and other related laws. While the Company believes such statements are
reasonable, the actual results and effects could differ materially from those
currently anticipated. Please refer to Part I, Item 1A  of the Company’s Form
10-K for the year ended December 31, 2011, for some factors that could cause
the actual results to differ from estimates. In providing forward-looking
statements, the Company is not undertaking any duty or obligation to update
these statements publicly as a result of new information, future events or
otherwise.

AMPHENOL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(dollars in thousands, except per share data)


                   Three Months Ended                    Twelve Months Ended

                       December 31,                            December 31,
                        2012            2011              2012            2011        
                                                                                                 
Net sales              $ 1,145,978         $ 948,709           $ 4,292,065         $ 3,939,786
                                                                                                 
Cost of sales           790,527           653,872           2,948,853         2,696,126   
                                                                                                 
Gross profit             355,451             294,837             1,343,212           1,243,660
                                                                                                 
Casualty loss
related to               -                   8,648               -                   21,479
flood
                                                                                                 
Change in
contingent
acquisition              -                   -                   -                   (17,813     )
related
obligations
                                                                                                 
Acquisition
related                  2,000               2,000               2,000               2,000
expenses
                                                                                                 
Selling,
general and
administrative
expense                 132,231           119,529           512,867           486,316     
                                                                                                 
Operating                221,220             164,660             828,345             751,678
income
                                                                                                 
Interest                 (15,599     )       (11,144     )       (59,613     )       (43,029     )
expense
Other income,           2,652             2,014             10,109            8,103       
net
                                                                                                 
Income before            208,273             155,530             778,841             716,752
income taxes
                                                                                                 
Provision for           (66,706     )      (40,525     )      (219,333    )      (187,910    )
income taxes
                                                                                                 
Net income               141,567             115,005             559,508             528,842
Less: Net
income
attributable            (1,205      )      (1,146      )      (4,191      )      (4,651      )
to
noncontrolling
interests
                                                                                                 
Net income
attributable           $ 140,362          $ 113,859          $ 555,317          $ 524,191     
to Amphenol
Corporation
                                                                                                 
                                                                                                 
Net income per
common share -         $ 0.88             $ 0.69             $ 3.44             $ 3.09        
Basic
                                                                                                 
Weighted
average common
shares                  160,379,864       164,382,897       161,522,080       169,640,115 
outstanding -
Basic
                                                                                                 
Net income per
common share -         $ 0.86             $ 0.69             $ 3.39             $ 3.05        
Diluted (1)
(2)
                                                                                                 
Weighted
average common
shares                  162,789,858       166,179,596       163,947,111       171,825,588 
outstanding -
Diluted
                                                                                                 
Dividends
declared per           $ 0.105            $ 0.015            $ 0.420            $ 0.060       
common share

         Earnings per share in the fourth quarter of 2012 and the full year
         2012 includes one-time charges of $.08 per share comprised of
         acquisition related transaction costs of $2.0 million ($2.0 million
         after tax), or $.01 per share, relating to 2012 acquisitions and
         income tax costs of $11.3 million, or $.07 per share, relating to
         actions taken by the Company in anticipation of the reinstatement of
         certain federal income tax provisions for the year 2012 relating
         primarily to research and development credits and certain U.S. taxes
Note 1  on foreign income. Such tax provisions were reinstated on January 2,
         2013 with retroactive effect to 2012. Under U.S. GAAP, the related
         benefit to the Company of $11.3 million, or $.07 per share, relating
         to the 2012 tax year will be recorded as a one-time benefit in the
         first quarter of 2013 at the date of the reinstatement; as such
         between the two quarters, there is no net impact on the Company from
         an income statement perspective. Excluding these effects, diluted
         earnings per share was $.94 and $3.47 for the three months and twelve
         months ended December 31, 2012, respectively.

         Earnings per share in the fourth quarter of 2011 included one-time
         charges of $.04 per share comprised of $8.6 million ($5.4 million
         after tax), or a $.03 per share charge relating to the previously
         reported flood damage at the Company’s Sidney, New York facility
         (Flood Loss), and a $2.0 million ($2.0 million after tax), or $.01
         per share charge for acquisition related transaction costs
         (Acquisition Costs). Full year 2011 diluted earnings per share of
         $3.05 includes the following one-time items: (1) a $21.5 million
         ($13.5 million after tax), or $.08 per share charge relating to the
Note 2  Flood Loss, (2) a $2.0 million ($2.0 million after tax) or $.01 per
         share charge for Acquisition Costs, (3) a $.03 per share ($4.5
         million) benefit relating to a reduction in international tax expense
         due to reserve adjustments and refunds from the favorable settlement
         of certain tax positions and (4) a gain of $17.8 million ($11.2
         million after tax), or $.06 per share benefit, related to the
         adjustment of a contingent purchase obligation for a 2010
         acquisition. Excluding these effects, diluted earnings per share was
         $.73 and $3.05 for the three months and twelve months ended December
         31, 2011, respectively.
         

AMPHENOL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(dollars in thousands)
                                                           
                                                                 
                                               December 31,      December 31,

                                               2012              2011
ASSETS
                                                                 
Current Assets:
Cash and cash equivalents                      $ 690,850         $ 515,086
Short-term investments                          251,653         133,848   
Total cash, cash equivalents and                 942,503           648,934
short-term investments
Accounts receivable, less allowance
for doubtful accounts of $10,372
and $11,113, respectively                        910,711           767,181
Inventories, net                                 733,718           649,862
Other current assets                            119,983         115,260   
                                                                 
Total current assets                             2,706,915         2,181,237
                                                                 
Land and depreciable assets, less
accumulated depreciation of
$715,895 and $655,869, respectively              417,436           380,501
Goodwill                                         1,932,740         1,746,113
Other long-term assets                          158,372         137,374   
                                                                 
                                               $ 5,215,463      $ 4,445,225 
                                                                 
LIABILITIES & EQUITY
                                                                 
Current Liabilities:
Accounts payable                               $ 496,525         $ 377,867
Accrued salaries, wages and employee             89,142            83,810
benefits
Accrued income taxes                             94,341            87,315
Other accrued expenses                           108,213           93,125
Short-term debt                                 100,293         298       
                                                                 
Total current liabilities                        888,514           642,415
                                                                 
Long-term debt                                   1,606,204         1,376,831
Accrued pension and post employment
benefit obligations                              244,571           207,049
Other long-term liabilities                      33,992            34,144
                                                                 
Equity:
Common stock                                     160               163
Additional paid-in capital                       336,683           189,166
Accumulated earnings                             2,210,120         2,102,497
Accumulated other comprehensive loss            (117,004  )      (120,057  )
                                                                 
Total shareholders' equity attributable          2,429,959         2,171,769
to Amphenol Corporation
                                                                 
Noncontrolling interests                        12,223          13,017    
                                                                 
Total equity                                    2,442,182       2,184,786 
                                                                 
                                               $ 5,215,463      $ 4,445,225 
                                                                             


AMPHENOL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
(dollars in thousands)
                                                           
                                                                  
                                                 Twelve months ended

                                                 December 31,
                                                  2012           2011     
                                                                  
Cash flow from operating activities:
Net income                                       $ 559,508        $ 528,842
Adjustments for cash flow from operating
activities:
Depreciation and amortization                      121,779          119,439
Stock-based compensation expense                   31,412           28,679
Non-cash casualty loss related to flood            -                10,388
Change in contingent acquisition related           -                (17,813  )
obligations
Excess tax benefits from stock-based               (21,648  )       (5,995   )
compensation payment arrangements
Net change in components of working                (8,946   )       (110,253 )
capital
Net change in other long-term assets and          (7,426   )      11,920   
liabilities
                                                                  
Cash flow provided by operating                   674,679        565,207  
activities
                                                                  
Cash flow from investing activities:
Additions to property, plant and                   (129,099 )       (100,222 )
equipment
Proceeds from disposals of fixed assets            4,828            8,118
Purchases of short-term investments                (379,605 )       (181,880 )
Sales and maturities of short-term                 261,800          146,373
investments
Acquisitions, net of cash acquired                (251,523 )      (303,273 )
                                                                  
Cash flow used in investing activities            (493,599 )      (430,884 )
                                                                  
Cash flow from financing activities:
Borrowings under senior notes                      498,730          -
Borrowings under credit facilities                 819,556          873,200
Repayments under credit facilities                 (988,800 )       (301,900 )
Payment of fees and expenses related to            (4,318   )       (2,125   )
debt financing
Proceeds from exercise of stock options            95,451           26,086
Excess tax benefits from stock-based               21,648           5,995
compensation payment arrangements
Payment of contingent                              -                (40,000  )
acquisition-related obligations
Payments to shareholders of                        (5,206   )       (29,931  )
noncontrolling interests
Purchase and retirement of treasury                (380,023 )       (672,191 )
stock
Dividend payments                                 (70,122  )      (10,282  )
                                                                  
Cash flow used in financing activities            (13,084  )      (151,148 )
                                                                  
Effect of exchange rate changes on cash            7,768            6,023
and cash equivalents
                                                                  
Net change in cash and cash
equivalents                                        175,764          (10,802  )
Cash and cash equivalents
balance, beginning of period                      515,086        525,888  
                                                                  
Cash and cash equivalents
balance, end of period                           $ 690,850       $ 515,086  
                                                                             


AMPHENOL CORPORATION
SEGMENT INFORMATION
(dollars in thousands)
(Unaudited)
                                                
                                                       
                     Three months ended                Twelve months ended

                     December 31,                      December 31,
                     2012          2011          2012          2011      
                                                                         
Trade Sales:
Interconnect         $ 1,060,452       $ 887,624       $ 3,987,286       $ 3,666,042
Products
Cable                 85,526          61,085        304,779         273,744   
Products
Consolidated         $ 1,145,978      $ 948,709      $ 4,292,065      $ 3,939,786 
                                                                         
                                                                         
Operating
income:
Interconnect         $ 230,104         $ 184,220       $ 858,066         $ 787,323
Products
Cable                  11,308            7,980           41,139            34,813
Products
Stock-based
compensation           (8,244    )       (7,667  )       (31,411   )       (28,678   )
expense
Other
operating             (9,948    )      (9,225  )      (37,449   )      (36,114   )
expenses
Operating
income
excluding              223,220           175,308         830,345           757,344
one-time
items
                                                                         
Change in
contingent
acquisition            -                 -               -                 17,813
related
obligations
Casualty
loss related           -                 (8,648  )       -                 (21,479   )
to flood
Acquisition
related               (2,000    )      (2,000  )      (2,000    )      (2,000    )
expenses
Consolidated         $ 221,220        $ 164,660      $ 828,345        $ 751,678   
                                                                         
                                                                         
ROS%:
Interconnect           21.7      %       20.8    %       21.5      %       21.5      %
Products
Cable                  13.2      %       13.1    %       13.5      %       12.7      %
Products
Stock-based            -0.7      %       -0.8    %       -0.7      %       -0.7      %
compensation
Other
operating              -0.9      %       -1.0    %       -0.9      %       -0.9      %
expenses
                                                                         
ROS%
excluding              19.5      %       18.5    %       19.3      %       19.2      %
one-time
items
                                                                         
Change in
contingent
acquisition            0.0       %       0.0     %       0.0       %       0.5       %
related
obligations
Casualty
loss related           0.0       %       -0.9    %       0.0       %       -0.5      %
to flood
Acquisition
related                -0.2      %       -0.2    %       0.0       %       -0.1      %
expenses
                                                                         
Consolidated           19.3      %       17.4    %       19.3      %       19.1      %
                                                                                     

Contact:

Amphenol Corporation
Diana G. Reardon, 203-265-8630
Executive Vice President and Chief Financial Officer
www.amphenol.com
 
Press spacebar to pause and continue. Press esc to stop.