Amphenol Reports Third Quarter 2023 Results and Announces Dividend Increase
- Sales exceeded guidance, GAAP Diluted EPS up 4% YoY, quarterly dividend increased by 5%
- Sales down 3% YoY, Adjusted Diluted EPS down 3% YoY
Third Quarter 2023 Highlights:
-
Sales of
, down$3.19 9 billion3% inU.S. dollars and5% organically compared to the third quarter of 2022 -
GAAP Diluted EPS of
, up$0.83 4% compared to prior year -
Adjusted Diluted EPS of
, down$0.78 3% compared to prior year -
GAAP and Adjusted Operating Margin of
20.6% and20.8% , respectively -
Operating and Free Cash Flow of
and$618 million , respectively$544 million - Closed three acquisitions since July earnings call – Connor Manufacturing Services, Q Microwave and XMA Corporation – and signed an agreement to acquire PCTEL
-
Increased quarterly dividend by
5% to per share$0.22
“We are pleased to have closed the third quarter of 2023 with sales and Adjusted Diluted EPS both exceeding the high end of our guidance,” said Amphenol President and Chief Executive Officer, R. Adam Norwitt. “Sales decreased from prior year by
“During the third quarter of 2023, Amphenol continued to deploy its financial strength in a variety of ways to increase shareholder value. This included the repurchase of 1.7 million shares of its common stock for
“We remain focused on expanding our growth opportunities through a deep commitment to developing enabling technologies for customers across our served markets, an ongoing strategy of market and geographic diversification as well as an active and successful acquisition program. To that end, we are excited to have closed on three acquisitions since our July earnings call: Connor Manufacturing Services, Q Microwave and XMA Corporation. Based in
“We are also pleased that on October 13, 2023, we entered into a definitive agreement to acquire PCTEL, Inc. (Nasdaq: PCTI). PCTEL is a leading global provider of antennas, as well as purpose-built Industrial IoT products and test and measurement solutions. The transaction is expected to close by early 2024, subject to approval from PCTEL’s shareholders and other customary closing conditions. We are excited by the opportunities PCTEL brings to further expand the breadth of our already strong antenna offering.”
Increase in Quarterly Dividend
On October 24, 2023, the Company’s Board of Directors approved a
Fourth Quarter and Full Year 2023 Outlook
Assuming market conditions do not meaningfully worsen as well as constant exchange rates, for the fourth quarter of 2023, Amphenol expects sales to be in the range of
“Despite the ongoing challenges and uncertainties around the world, we are very pleased with the Company’s third quarter 2023 results,” Mr. Norwitt continued. “The revolution in electronics continues to accelerate, creating exciting long-term growth opportunities for Amphenol across each of our diversified end markets. Our ongoing drive to leverage our competitive advantages and create sustained financial strength, as well as our initiatives to expand our product offerings, both organically and through our acquisition program, have created an excellent base for the Company’s future performance. I am confident in the ability of our outstanding entrepreneurial management team to continue to dynamically adjust to changing market conditions, to capitalize on the wide array of growth opportunities that arise in all market cycles and to continue to generate sustainable long-term value for our shareholders and other stakeholders. Most importantly, I remain truly grateful to our team for their extraordinary efforts in navigating the many challenges around the world while continuing to strongly support our customers and drive outstanding operating performance.”
Conference Call and Webcast Details
The Company will host a conference call to discuss its third quarter results at 1:00 PM (EDT) on Wednesday, October 25, 2023. The toll-free dial-in number is 888-455-0949; International dial-in number is +1-773-799-3973; Passcode: LAMPO. A replay of the call will be available until 11:59 PM (EST) on Saturday, November 25, 2023. The replay numbers are toll free 800-813-5529; International toll number +1-203-369-3826; 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 approximately 40 countries around the world 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. For more information, visit www.amphenol.com.
Non-GAAP Financial Measures
The financial statements included within this press release are prepared in accordance with accounting principles generally accepted in
Forward-Looking Statements
This press release may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are based on our management’s assumptions and beliefs about future events or circumstances using information currently available, and as a result, they are subject to risks and uncertainties. Forward-looking statements address events or developments that Amphenol Corporation expects or believes may or will occur in the future. These forward-looking statements, which address the Company’s expected business and financial performance and financial condition, 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, effective tax rate, interest rates or other matters. Although the Company believes the expectations reflected in all forward-looking statements, including those we may make regarding fourth quarter and full year 2023 sales and Adjusted Diluted EPS as well as the expected timing for closing certain acquisitions, among other matters, are based upon reasonable assumptions, the expectations may not be attained or there may be material deviation. Readers and investors 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: political, economic, military and other risks related to operating in countries outside
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, 2022, Quarterly Reports on Form 10-Q and the Company’s other reports filed with the Securities and Exchange Commission. These or other uncertainties not identified in these documents (that we either currently do not expect to have an adverse effect on our business or that we are unable to predict or identify at this time) 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.
AMPHENOL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (dollars and shares in millions, except per share data) |
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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2023 |
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2022 |
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2023 |
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2022 |
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Net sales |
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$ |
3,199.2 |
|
$ |
3,295.2 |
|
$ |
9,227.2 |
|
$ |
9,383.8 |
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|
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Cost of sales |
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2,150.7 |
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2,235.2 |
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6,243.5 |
|
|
6,393.1 |
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|
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|
|
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|
|
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Gross profit |
|
|
1,048.5 |
|
|
1,060.0 |
|
|
2,983.7 |
|
|
2,990.7 |
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|
|
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|
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|
|
|
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Acquisition-related expenses |
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9.0 |
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12.0 |
|
|
18.4 |
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12.0 |
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|
|
|
|
|
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|
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Selling, general and administrative expenses |
|
|
381.6 |
|
|
366.9 |
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|
1,095.7 |
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|
1,059.0 |
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Operating income |
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657.9 |
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|
681.1 |
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|
1,869.6 |
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|
1,919.7 |
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Interest expense |
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|
(33.6) |
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|
(32.8) |
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|
(104.5) |
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|
(91.3) |
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Gain on bargain purchase acquisition (1) |
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— |
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— |
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5.4 |
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— |
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Other income (expense), net |
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|
9.2 |
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|
2.6 |
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|
18.9 |
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|
6.6 |
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Income before income taxes |
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633.5 |
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650.9 |
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|
1,789.4 |
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|
1,835.0 |
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|
|
|
|
|
|
|
|
|
|
|
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Provision for income taxes (2) |
|
|
(115.2) |
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|
(150.4) |
|
|
(363.0) |
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|
(429.2) |
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Net income |
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518.3 |
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500.5 |
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|
1,426.4 |
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|
1,405.8 |
|
Less: Net income attributable to noncontrolling interests |
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|
(4.4) |
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|
(3.9) |
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|
(12.8) |
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|
(11.0) |
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Net income attributable to Amphenol Corporation |
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$ |
513.9 |
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$ |
496.6 |
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$ |
1,413.6 |
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$ |
1,394.8 |
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Net income attributable to Amphenol Corporation per common share — Basic |
|
$ |
0.86 |
|
$ |
0.83 |
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$ |
2.37 |
|
$ |
2.34 |
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Weighted average common shares outstanding — Basic |
|
|
597.7 |
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|
595.3 |
|
|
595.9 |
|
|
596.6 |
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Net income attributable to Amphenol Corporation per common share — Diluted (3) |
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$ |
0.83 |
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$ |
0.80 |
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$ |
2.28 |
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$ |
2.24 |
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Weighted average common shares outstanding — Diluted |
|
|
622.0 |
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|
619.3 |
|
|
620.1 |
|
|
621.5 |
|
Note 1 | Reflects the non-cash gain of |
Note 2 | Provision for income taxes for the three months ended September 30, 2023 and 2022 includes excess tax benefits related to stock-based compensation of |
Note 3 | Net income per share for the three months ended September 30, 2023 and 2022 includes the excess tax benefits related to stock-based compensation discussed in Note 2. Net income per share for the three months ended September 30, 2023 also includes acquisition-related expenses of |
Net income per share for the nine months ended September 30, 2023 and 2022 includes the excess tax benefits related to stock-based compensation discussed in Note 2. Net income per share for the nine months ended September 30, 2023 also includes the non-cash gain related to the bargain purchase acquisition discussed in Note 1, as well as acquisition-related expenses of |
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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 |
AMPHENOL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (dollars in millions) |
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September 30, |
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December 31, |
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2023 |
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2022 |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
|
$ |
1,481.5 |
|
$ |
1,373.1 |
|
Short-term investments |
|
|
252.5 |
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|
61.1 |
|
Total cash, cash equivalents and short-term investments |
|
|
1,734.0 |
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|
1,434.2 |
|
Accounts receivable, less allowance for doubtful accounts of |
|
|
2,571.2 |
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|
2,631.3 |
|
Inventories |
|
|
2,099.1 |
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|
2,093.6 |
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Prepaid expenses and other current assets |
|
|
369.0 |
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320.0 |
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Total current assets |
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|
6,773.3 |
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|
6,479.1 |
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Property, plant and equipment, less accumulated depreciation of |
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1,246.6 |
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|
1,204.3 |
|
Goodwill |
|
|
6,574.5 |
|
|
6,446.1 |
|
Other intangible assets, net |
|
|
744.2 |
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|
734.1 |
|
Other long-term assets |
|
|
420.4 |
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|
462.6 |
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Total Assets |
|
$ |
15,759.0 |
|
$ |
15,326.2 |
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LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY |
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Current Liabilities: |
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Accounts payable |
|
$ |
1,248.9 |
|
$ |
1,309.1 |
|
Accrued salaries, wages and employee benefits |
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|
360.9 |
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|
416.7 |
|
Accrued income taxes |
|
|
113.6 |
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|
169.5 |
|
Accrued dividends |
|
|
125.6 |
|
|
124.9 |
|
Other accrued expenses |
|
|
704.2 |
|
|
653.2 |
|
Current portion of long-term debt |
|
|
355.6 |
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|
2.7 |
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Total current liabilities |
|
|
2,908.8 |
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|
2,676.1 |
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|
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|
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Long-term debt, less current portion |
|
|
3,936.4 |
|
|
4,575.0 |
|
Accrued pension and postretirement benefit obligations |
|
|
129.1 |
|
|
127.9 |
|
Deferred income taxes |
|
|
413.0 |
|
|
409.8 |
|
Other long-term liabilities |
|
|
433.4 |
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|
443.3 |
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|
|
|
|
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Total Liabilities |
|
|
7,820.7 |
|
|
8,232.1 |
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Redeemable noncontrolling interest |
|
|
21.8 |
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|
20.6 |
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Equity: |
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Common stock |
|
|
0.6 |
|
|
0.6 |
|
Additional paid-in capital |
|
|
3,015.0 |
|
|
2,650.4 |
|
Retained earnings |
|
|
5,669.7 |
|
|
4,979.4 |
|
Treasury stock, at cost |
|
|
(170.6) |
|
|
(79.8) |
|
Accumulated other comprehensive loss |
|
|
(657.9) |
|
|
(535.0) |
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|
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Total stockholders’ equity attributable to Amphenol Corporation |
|
|
7,856.8 |
|
|
7,015.6 |
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|
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|
|
|
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|
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Noncontrolling interests |
|
|
59.7 |
|
|
57.9 |
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|
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|
|
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Total Equity |
|
|
7,916.5 |
|
|
7,073.5 |
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|
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Total Liabilities, Redeemable Noncontrolling Interest and Equity |
|
$ |
15,759.0 |
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$ |
15,326.2 |
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AMPHENOL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) (dollars in millions) |
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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2023 |
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2022 |
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2023 |
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2022 |
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Cash from operating activities: |
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Net income |
|
$ |
518.3 |
|
$ |
500.5 |
|
$ |
1,426.4 |
|
$ |
1,405.8 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
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|
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Depreciation and amortization |
|
|
101.0 |
|
|
102.7 |
|
|
291.4 |
|
|
284.6 |
|
Stock-based compensation expense |
|
|
26.9 |
|
|
23.6 |
|
|
72.4 |
|
|
64.2 |
|
Deferred income tax (benefit) provision |
|
|
(1.7) |
|
|
(0.9) |
|
|
(7.1) |
|
|
17.6 |
|
Gain on bargain purchase acquisition |
|
|
— |
|
|
— |
|
|
(5.4) |
|
|
— |
|
Net change in components of working capital |
|
|
(23.5) |
|
|
(45.1) |
|
|
(81.2) |
|
|
(274.3) |
|
Net change in other long-term assets and liabilities |
|
|
(3.0) |
|
|
(4.8) |
|
|
(9.6) |
|
|
(28.6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
618.0 |
|
|
576.0 |
|
|
1,686.9 |
|
|
1,469.3 |
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Cash from investing activities: |
|
|
|
|
|
|
|
|
|
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Capital expenditures |
|
|
(74.7) |
|
|
(121.0) |
|
|
(267.8) |
|
|
(290.2) |
|
Proceeds from disposals of property, plant and equipment |
|
|
0.5 |
|
|
1.7 |
|
|
2.1 |
|
|
4.5 |
|
Purchases of investments |
|
|
(79.6) |
|
|
(101.3) |
|
|
(218.8) |
|
|
(304.6) |
|
Sales and maturities of investments |
|
|
4.0 |
|
|
153.2 |
|
|
67.8 |
|
|
220.6 |
|
Acquisitions, net of cash acquired |
|
|
(179.4) |
|
|
(213.7) |
|
|
(292.6) |
|
|
(288.2) |
|
Other, net |
|
|
(0.1) |
|
|
7.9 |
|
|
4.9 |
|
|
7.4 |
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Net cash used in investing activities |
|
|
(329.3) |
|
|
(273.2) |
|
|
(704.4) |
|
|
(650.5) |
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|
|
|
|
|
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|
|
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Cash from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of senior notes and other long-term debt |
|
|
2.2 |
|
|
1.2 |
|
|
354.0 |
|
|
2.9 |
|
Repayments of senior notes and other long-term debt |
|
|
(3.2) |
|
|
(2.7) |
|
|
(10.3) |
|
|
(7.5) |
|
Proceeds from short-term borrowings |
|
|
— |
|
|
— |
|
|
— |
|
|
44.9 |
|
Repayments of short-term borrowings |
|
|
— |
|
|
(24.8) |
|
|
— |
|
|
(44.9) |
|
(Repayments) borrowings under commercial paper programs, net |
|
|
— |
|
|
(18.8) |
|
|
(632.6) |
|
|
111.9 |
|
Payment of costs related to debt financing |
|
|
— |
|
|
— |
|
|
(2.3) |
|
|
(0.4) |
|
Payment of deferred purchase price related to acquisitions |
|
|
(1.5) |
|
|
— |
|
|
(1.5) |
|
|
— |
|
Purchase of treasury stock |
|
|
(149.3) |
|
|
(170.1) |
|
|
(469.8) |
|
|
(560.1) |
|
Proceeds from exercise of stock options |
|
|
160.0 |
|
|
71.8 |
|
|
323.1 |
|
|
114.1 |
|
Distributions to and purchases of noncontrolling interests |
|
|
(1.4) |
|
|
(0.3) |
|
|
(8.0) |
|
|
(4.4) |
|
Dividend payments |
|
|
(125.1) |
|
|
(119.1) |
|
|
(375.0) |
|
|
(358.4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities |
|
|
(118.3) |
|
|
(262.8) |
|
|
(822.4) |
|
|
(701.9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
(14.0) |
|
|
(66.2) |
|
|
(51.7) |
|
|
(125.0) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
|
|
156.4 |
|
|
(26.2) |
|
|
108.4 |
|
|
(8.1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents balance, beginning of period |
|
|
1,325.1 |
|
|
1,215.2 |
|
|
1,373.1 |
|
|
1,197.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents balance, end of period |
|
$ |
1,481.5 |
|
$ |
1,189.0 |
|
$ |
1,481.5 |
|
$ |
1,189.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
$ |
28.8 |
|
$ |
32.9 |
|
$ |
89.1 |
|
$ |
86.3 |
|
Income taxes, net |
|
|
99.4 |
|
|
140.4 |
|
|
423.8 |
|
|
387.8 |
|
AMPHENOL CORPORATION SEGMENT INFORMATION (Unaudited) (dollars in millions) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
||||
Net sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Harsh Environment Solutions |
|
$ |
887.3 |
|
$ |
793.8 |
|
$ |
2,630.4 |
|
$ |
2,311.9 |
|
Communications Solutions |
|
|
1,279.2 |
|
|
1,518.0 |
|
|
3,567.6 |
|
|
4,216.5 |
|
Interconnect and Sensor Systems |
|
|
1,032.7 |
|
|
983.4 |
|
|
3,029.2 |
|
|
2,855.4 |
|
Consolidated Net sales |
|
$ |
3,199.2 |
|
$ |
3,295.2 |
|
$ |
9,227.2 |
|
$ |
9,383.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Harsh Environment Solutions |
|
$ |
239.1 |
|
$ |
207.1 |
|
$ |
705.7 |
|
$ |
596.8 |
|
Communications Solutions |
|
|
283.3 |
|
|
341.6 |
|
|
752.4 |
|
|
927.2 |
|
Interconnect and Sensor Systems |
|
|
188.9 |
|
|
185.3 |
|
|
553.6 |
|
|
522.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
(26.9) |
|
|
(23.6) |
|
|
(72.4) |
|
|
(64.2) |
|
Acquisition-related expenses |
|
|
(9.0) |
|
|
(12.0) |
|
|
(18.4) |
|
|
(12.0) |
|
Other operating expenses |
|
|
(17.5) |
|
|
(17.3) |
|
|
(51.3) |
|
|
(50.9) |
|
Consolidated Operating income |
|
$ |
657.9 |
|
$ |
681.1 |
|
$ |
1,869.6 |
|
$ |
1,919.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin (%): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Harsh Environment Solutions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Communications Solutions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interconnect and Sensor Systems |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Acquisition-related expenses |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Other operating expenses |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Operating margin (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
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, gains associated with bargain purchase acquisitions, 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 or as a substitute for or superior to the related
The following are reconciliations of non-GAAP financial measures to the most directly comparable
NET SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage Growth (relative to same prior year period) (1) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
Net sales |
|
Foreign |
|
Constant |
|
|
|
Organic |
|||||||||
|
|
|
|
growth in |
|
currency |
|
Currency Net |
|
Acquisition |
|
Net Sales |
|||||||||
|
|
|
|
|
|
|
|
|
|
impact (3) |
|
Sales Growth (5) |
|
impact (4) |
|
Growth (5) |
|||||
Three Months Ended September 30, |
|
2023 |
|
2022 |
|
(GAAP) |
|
(non-GAAP) |
|
(non-GAAP) |
|
(non-GAAP) |
|
(non-GAAP) |
|||||||
Net sales by segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harsh Environment Solutions |
|
$ |
887.3 |
|
$ |
793.8 |
|
12 |
% |
|
1 |
% |
|
11 |
% |
|
4 |
% |
|
7 |
% |
Communications Solutions |
|
|
1,279.2 |
|
|
1,518.0 |
|
(16) |
% |
|
(1) |
% |
|
(15) |
% |
|
1 |
% |
|
(16) |
% |
Interconnect and Sensor Systems |
|
|
1,032.7 |
|
|
983.4 |
|
5 |
% |
|
1 |
% |
|
4 |
% |
|
3 |
% |
|
1 |
% |
Consolidated |
|
$ |
3,199.2 |
|
$ |
3,295.2 |
|
(3) |
% |
|
— |
% |
|
(3) |
% |
|
2 |
% |
|
(5) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net sales by segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harsh Environment Solutions |
|
$ |
2,630.4 |
|
$ |
2,311.9 |
|
14 |
% |
|
(1) |
% |
|
14 |
% |
|
4 |
% |
|
10 |
% |
Communications Solutions |
|
|
3,567.6 |
|
|
4,216.5 |
|
(15) |
% |
|
(1) |
% |
|
(14) |
% |
|
1 |
% |
|
(15) |
% |
Interconnect and Sensor Systems |
|
|
3,029.2 |
|
|
2,855.4 |
|
6 |
% |
|
(1) |
% |
|
7 |
% |
|
3 |
% |
|
4 |
% |
Consolidated |
|
$ |
9,227.2 |
|
$ |
9,383.8 |
|
(2) |
% |
|
(1) |
% |
|
(1) |
% |
|
2 |
% |
|
(3) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Percentages in this table were calculated using actual, unrounded results; therefore, the sum of the components may not add due to rounding. |
(2) |
Net sales growth in |
(3) |
Foreign currency translation impact, a non-GAAP measure, represents the percentage impact on net sales resulting from foreign currency exchange rate changes in the current reporting period(s) compared to the same respective period(s) in the prior year. Such amount is calculated by subtracting net sales for the current reporting period(s) translated at average foreign currency exchange rates for the respective prior year period(s) from net sales for the current reporting period(s), taken as a percentage of the respective prior year period(s) net sales. |
(4) |
Acquisition impact, a non-GAAP measure, represents the percentage impact on net sales resulting from acquisitions that have not been included in the Company’s consolidated results for the full current period(s) and/or prior comparable period(s) presented. Such net sales related to these acquisitions do not reflect the underlying growth of the Company on a comparative basis. Acquisition impact is calculated as a percentage of the respective prior year period(s) net sales. |
(5) |
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 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 |
|
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 (i) the foreign currency translation impact, which is outside the control of the Company, and (ii) the acquisition impact, both as described above 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 |
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 September 30, |
||||||||||||||||||||||||
|
|
2023 |
|
2022 |
||||||||||||||||||||||
|
|
|
|
|
|
|
Net Income |
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
|
|
||||
|
|
|
|
|
|
|
attributable to |
|
Effective |
|
|
|
|
|
|
|
|
attributable to |
|
Effective |
|
|
||||
|
|
Operating |
|
Operating |
|
Amphenol |
|
Tax |
|
Diluted |
|
Operating |
|
Operating |
|
Amphenol |
|
Tax |
|
Diluted |
||||||
|
|
Income |
|
Margin (i) |
|
Corporation |
|
Rate (i) |
|
EPS |
|
Income |
|
Margin (i) |
|
Corporation |
|
Rate (i) |
|
EPS |
||||||
Reported (GAAP) |
|
$ |
657.9 |
|
20.6 |
% |
$ |
513.9 |
|
18.2 |
% |
$ |
0.83 |
|
$ |
681.1 |
|
20.7 |
% |
$ |
496.6 |
|
23.1 |
% |
$ |
0.80 |
Acquisition-related expenses |
|
|
9.0 |
|
0.3 |
|
|
8.4 |
|
(0.2) |
|
|
0.01 |
|
|
12.0 |
|
0.4 |
|
|
10.5 |
|
(0.2) |
|
|
0.02 |
Excess tax benefits related to stock-based compensation |
|
|
— |
|
— |
|
|
(38.3) |
|
6.0 |
|
|
(0.06) |
|
|
— |
|
— |
|
|
(10.6) |
|
1.6 |
|
|
(0.02) |
Adjusted (non-GAAP) (ii) (iii) |
|
$ |
666.9 |
|
20.8 |
% |
$ |
484.0 |
|
24.0 |
% |
$ |
0.78 |
|
$ |
693.1 |
|
21.0 |
% |
$ |
496.5 |
|
24.5 |
% |
$ |
0.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
||||||||||||||||||||||||
|
|
2023 |
|
2022 |
||||||||||||||||||||||
|
|
|
|
|
|
|
Net Income |
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
|
|
||||
|
|
|
|
|
|
|
attributable to |
|
Effective |
|
|
|
|
|
|
|
|
attributable to |
|
Effective |
|
|
||||
|
|
Operating |
|
Operating |
|
Amphenol |
|
Tax |
|
Diluted |
|
Operating |
|
Operating |
|
Amphenol |
|
Tax |
|
Diluted |
||||||
|
Income |
|
Margin (i) |
|
Corporation |
|
Rate (i) |
|
EPS |
|
Income |
|
Margin (i) |
|
Corporation |
|
Rate (i) |
|
EPS |
|||||||
Reported (GAAP) |
|
$ |
1,869.6 |
|
20.3 |
% |
$ |
1,413.6 |
|
20.3 |
% |
$ |
2.28 |
|
$ |
1,919.7 |
|
20.5 |
% |
$ |
1,394.8 |
|
23.4 |
% |
$ |
2.24 |
Acquisition-related expenses |
|
|
18.4 |
|
0.2 |
|
|
16.2 |
|
(0.1) |
|
|
0.03 |
|
|
12.0 |
|
0.1 |
|
|
10.5 |
|
(0.1) |
|
|
0.02 |
Gain on bargain purchase acquisition |
|
|
— |
|
— |
|
|
(5.4) |
|
0.1 |
|
|
(0.01) |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
Excess tax benefits related to stock-based compensation |
|
|
— |
|
— |
|
|
(67.3) |
|
3.8 |
|
|
(0.11) |
|
|
— |
|
— |
|
|
(21.9) |
|
1.2 |
|
|
(0.04) |
Adjusted (non-GAAP) (ii) (iii) |
|
$ |
1,888.0 |
|
20.5 |
% |
$ |
1,357.1 |
|
24.0 |
% |
$ |
2.19 |
|
$ |
1,931.7 |
|
20.6 |
% |
$ |
1,383.4 |
|
24.5 |
% |
$ |
2.23 |
FREE CASH FLOW
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
|
September 30, |
|
September 30, |
||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Operating Cash Flow (GAAP) |
|
$ |
618.0 |
|
$ |
576.0 |
|
$ |
1,686.9 |
|
$ |
1,469.3 |
Capital expenditures (GAAP) |
|
|
(74.7) |
|
|
(121.0) |
|
|
(267.8) |
|
|
(290.2) |
Proceeds from disposals of property, plant and equipment (GAAP) |
|
|
0.5 |
|
|
1.7 |
|
|
2.1 |
|
|
4.5 |
Free Cash Flow (non-GAAP) (iii) |
|
$ |
543.8 |
|
$ |
456.7 |
|
$ |
1,421.2 |
|
$ |
1,183.6 |
(i) |
While the terms “operating margin” and “effective tax rate” are not considered |
(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 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 |
|
Free Cash Flow is defined as (i) Net cash provided by operating activities (“Operating Cash Flow” - as reported in accordance with |
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, gains associated with bargain purchase acquisitions, 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 measures should be read in conjunction with the Company’s financial statements presented in accordance with
The following are reconciliations of current guidance for GAAP Diluted earnings per share (Diluted EPS) to Adjusted Diluted EPS (non-GAAP) for both the fourth quarter and the full year 2023:
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GUIDANCE (1) |
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FOURTH QUARTER 2023 |
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FULL YEAR 2023 |
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Diluted EPS (GAAP) |
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Acquisition-related costs, net of tax |
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Gain on bargain purchase acquisition |
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- |
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Excess tax benefits related to stock-based compensation |
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Adjusted Diluted EPS (non-GAAP) (2) |
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(1) |
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. Such items are excluded from our guidance for the forward-looking periods 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 estimates acquisition-related costs in the fourth quarter of 2023 of approximately |
(2) |
Per share amounts in this table were calculated using actual, unrounded results; therefore, the sum of the components may not add due to rounding. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20231025547421/en/
Sherri Scribner
Vice President, Strategy and Investor Relations
203-265-8820
IR@amphenol.com
Source: Amphenol Corporation
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