Fourth Quarter 2023 Highlights:
- Record Sales of $3.33 billion, up 3% in U.S. dollars and down
1% organically compared to the fourth quarter of 2022
- GAAP Diluted EPS of $0.83, up 1% compared to prior year
- Record Adjusted Diluted EPS of $0.82, up 5% compared to prior
year
- GAAP Operating Margin of 20.7% and Record Adjusted Operating
Margin of 21.2%
- Record Operating and Free Cash Flow of $842 million and $739
million, respectively
- Acquired TPC Wire & Cable, Airmar, LID Technologies and
PCTEL
Full Year 2023 Highlights:
- Sales of $12.55 billion, down slightly in U.S. dollars and down
3% organically compared to the full year 2022
- Record GAAP Diluted EPS of $3.11, up 2% compared to prior
year
- Record Adjusted Diluted EPS of $3.01, up slightly compared to
prior year
- GAAP and Adjusted Operating Margin of 20.4% and 20.7%
- Record Operating and Free Cash Flow of $2.53 billion and $2.16
billion
- Completed ten acquisitions
- Returned nearly $1.1 billion to shareholders
Amphenol Corporation (NYSE: APH) today reported fourth quarter
and full year 2023 results.
“We are pleased to have closed 2023 with fourth quarter sales
and Adjusted Diluted EPS both exceeding the high end of our
guidance,” said Amphenol President and Chief Executive Officer, R.
Adam Norwitt. “Sales increased from prior year by 3%, driven by
growth in the commercial air, defense, automotive and IT datacom
markets, as well as contributions from the Company’s acquisition
program. For the full year, sales were down slightly compared to
2022, with growth in the commercial air, defense and automotive
markets as well as contributions from the Company’s acquisition
program, offset by moderations in the mobile networks, IT datacom,
mobile devices and broadband markets. Despite the moderating demand
in the communications-related markets during 2023, we again
realized strong profitability with Adjusted Operating Margin of
21.2% and 20.7% in the fourth quarter and full year, respectively.
Given the market environment, we are very proud of the Company’s
outstanding performance in 2023.”
Throughout 2023, Amphenol continued to deploy its financial
strength in a variety of ways to increase shareholder value. During
the fourth quarter, the Company purchased 1.3 million shares of its
common stock for $115 million and paid dividends of $126 million,
resulting in total capital returned to shareholders of $1.09
billion in 2023.
“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
four acquisitions during the fourth quarter of 2023: TPC Wire &
Cable (TPC), Airmar Technology Corporation (Airmar), LID
Technologies (LID) and PCTEL, Inc. (PCTEL). Based in Ohio and with
annual sales of approximately $110 million, TPC is a value-add
provider of harsh environment cable and cable assemblies for the
industrial market. Based in New Hampshire and with annual sales of
approximately $90 million, Airmar is a global leader in ultrasonic
sensors and sensor systems for marine and other industrial
applications. Based in France and with annual sales of
approximately $40 million, LID is a supplier of pressure sensor
products for the industrial and automotive markets. In December,
the Company also closed on the previously announced acquisition of
PCTEL, a global leader in the engineering and manufacturing of
antennas and wireless technology, including purpose-built
Industrial IoT products and test and measurement solutions, with
annual sales of approximately $85 million. TPC will be included in
our Harsh Environment Solutions Segment, Airmar and LID will be
included in our Interconnect and Sensor Systems Segment, and PCTEL
will be included in our Communications Solutions Segment. All of
these acquisitions further expand our offering of high-technology
interconnect products across a variety of our end markets, while
adding talented management teams to the Amphenol family.”
First Quarter 2024 Outlook
Assuming the continuation of current market conditions as well
as constant exchange rates, for the first quarter of 2024, Amphenol
expects sales to be in the range of $3.04 billion to $3.10 billion.
This represents a 2% to 4% increase over the prior year quarter.
Adjusted Diluted EPS is expected to be in the range of $0.71 to
$0.73, representing a 3% to 6% increase from the first quarter of
2023.
Mr. Norwitt continued, “I am encouraged by our strong finish to
2023. While we faced many challenges across the global marketplace,
the revolution in electronics has continued to accelerate, with new
innovations creating exciting growth opportunities for Amphenol
across each of our diversified end markets. In turn, we have
expanded our range of high technology interconnect products, both
through our organic innovation efforts as well as through our
successful acquisition program. This expanded technology position
coupled with our unique entrepreneurial culture has strengthened
our competitive advantage. Our ongoing drive to leverage that
competitive advantage and thereby create sustained financial
strength has established an excellent base for the Company’s future
performance. I am confident in the ability of our outstanding and
growing 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. Finally, 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 fourth
quarter and full year results at 1:00 PM (EST) on Wednesday,
January 24, 2024. 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, February 24, 2024. The replay numbers are toll free
866-510-4832; International toll number +1-203-369-1941; 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, Defense, Industrial,
Information Technology and Data Communications, 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 the United States of America (“GAAP” or “U.S. 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 Net
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. 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, 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. 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 are included for supplemental
purposes only and should not be considered in isolation or 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. 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 U.S. GAAP.
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
first quarter 2024 sales and Adjusted Diluted EPS, 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 the United States, as well as changes in general
economic conditions, geopolitical conditions, U.S. trade policies
(including, but not limited to, sanctions) and other factors beyond
the Company’s control; uncertainties associated with an economic
slowdown or recession in any of the Company’s end markets that
could negatively affect the financial condition of our customers
and could result in reduced demand; risks and impacts associated
with adverse public health developments, including epidemics and
pandemics; risks associated with our inability to obtain certain
raw materials and components, as well as the increasing cost of
certain of the Company’s raw materials and components;
cybersecurity threats and techniques used to disrupt operations and
gain unauthorized access to our information technology systems,
including, but not limited to, malware, social
engineering/phishing, adversarial artificial intelligence and
machine learning, credential harvesting, ransomware, malfeasance by
insiders, human or technological error and other increasingly
sophisticated attacks, that continue to expand and evolve, which
could, among other things, impair our information technology
systems and disrupt business operations, result in reputational
damage that may cause the loss of existing or future customers,
loss of our intellectual property, the loss of or inability to
access confidential information and critical business, financial or
other data, and/or cause the release of highly sensitive
confidential information, and potentially lead to litigation and/or
governmental investigations, fines and other penalties, among other
risks; negative impacts caused by extreme weather conditions and
natural catastrophic events, including those caused or intensified
by climate change and global warming; risks associated with the
increasing scrutiny and expectations regarding environmental,
social and corporate governance matters that could result in
additional costs or risks or otherwise adversely impact our
business; 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 risks associated with
the Company’s dependence on attracting, recruiting, hiring and
retaining skilled employees, including as part of our various
management teams; risks and difficulties in trying to compete
successfully on the basis of technology innovation, product quality
and performance, price, customer service and delivery time; the
Company’s dependence on end market dynamics to sell its products,
particularly in the communications, automotive and defense end
markets, pricing pressures resulting from large customers that
regularly exert pressure on their suppliers, including the Company,
and changes in defense expenditures of the U.S. and non-U.S.
governments, which are subject to political and budgetary
fluctuations and constraints, all of which could adversely affect
its operating results; 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 and other
covenants and requirements, which could result in a default under
the Company’s revolving credit facility, unsecured term loan credit
facility or any of our various senior notes; risks associated with
the Company’s inability to access the global 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 reporting obligations,
performance of government contracts and related risks associated
with conducting business with the U.S. and other foreign
governments or their suppliers (both directly and indirectly);
governmental export and import controls as well as sanctions and
trade embargoes that certain of our products may be subject to,
including export licensing, customs regulations, economic sanctions
and other laws; 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
enforcing and protecting the Company’s intellectual property
rights; litigation, customer claims, voluntary or forced product
recalls, governmental investigations, criminal liability or
environmental matters including changes to laws and regulations to
which the Company may be subject; and incremental costs, risks and
regulations associated with efforts to combat the negative effects
of climate change.
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)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2023
2022
2023
2022
Net sales
$
3,327.5
$
3,239.2
$
12,554.7
$
12,623.0
Cost of sales
2,227.1
2,201.7
8,470.6
8,594.8
Gross profit
1,100.4
1,037.5
4,084.1
4,028.2
Acquisition-related expenses
16.3
9.5
34.6
21.5
Selling, general and administrative
expenses
394.1
361.8
1,489.9
1,420.9
Operating income
690.0
666.2
2,559.6
2,585.8
Interest expense
(35.0
)
(37.1
)
(139.5
)
(128.4
)
Gain on bargain purchase acquisition
(1)
—
—
5.4
—
Other income (expense), net
10.5
3.4
29.3
10.0
Income before income taxes
665.5
632.5
2,454.8
2,467.4
Provision for income taxes (2)
(146.3
)
(121.5
)
(509.3
)
(550.6
)
Net income
519.2
511.0
1,945.5
1,916.8
Less: Net income attributable to
noncontrolling interests
(4.7
)
(3.5
)
(17.5
)
(14.5
)
Net income attributable to Amphenol
Corporation
$
514.5
$
507.5
$
1,928.0
$
1,902.3
Net income attributable to Amphenol
Corporation per common share — Basic
$
0.86
$
0.85
$
3.23
$
3.19
Weighted average common shares outstanding
— Basic
598.2
594.9
596.5
596.2
Net income attributable to Amphenol
Corporation per common share — Diluted (3)
$
0.83
$
0.82
$
3.11
$
3.06
Weighted average common shares outstanding
— Diluted
622.3
619.5
620.6
621.0
Dividends declared per common share
$
0.22
$
0.21
$
0.85
$
0.81
____________________________
Note 1
Reflects the non-cash gain of $5.4 million
($0.01 per share) associated with a bargain purchase acquisition
closed during the second quarter of 2023.
Note 2
Provision for income taxes for the three
months ended December 31, 2023 and 2022 includes excess tax
benefits related to stock-based compensation of $15.1 million
($0.02 per share) and $34.1 million ($0.06 per share),
respectively. Provision for income taxes for the twelve
months ended December 31, 2023 and 2022 includes excess tax
benefits related to stock-based compensation of $82.4 million
($0.13 per share) and $56.0 million ($0.09 per share),
respectively.
Note 3
Net income per share for the three months
ended December 31, 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 December 31, 2023 also
includes acquisition-related expenses of $16.3 million ($14.0
million after-tax, or $0.02 per share), comprised primarily of
external transaction costs, as well as the amortization related to
the value associated with acquired backlog. Net income per
share for the three months ended December 31, 2022 also included
acquisition-related expenses of $9.5 million ($7.9 million
after-tax, or $0.01 per share), comprised primarily of the
amortization related to the value associated with acquired backlog
resulting from an acquisition that closed in 2022, along with
external transaction costs.
Net income per share for the twelve months
ended December 31, 2023 and 2022 includes the excess tax benefits
related to stock-based compensation discussed in Note 2. Net
income per share for the twelve months ended December 31, 2023 also
includes the non-cash gain related to the bargain purchase
acquisition discussed in Note 1, as well as acquisition-related
expenses of $34.6 million ($30.2 million after-tax, or $0.05 per
share), comprised primarily of external transaction costs, as well
as the amortization related to the value associated with acquired
backlog. Net income per share for the twelve months ended
December 31, 2022 also included acquisition-related expenses of
$21.5 million ($18.4 million after-tax, or $0.03 per share)
comprised primarily of the amortization related to the value
associated with acquired backlog resulting from two acquisitions
that closed in 2022, along with external transaction costs.
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 $0.82 and $0.78 for
the three months ended December 31, 2023 and 2022, respectively,
and $3.01 and $3.00 for the twelve months ended December 31, 2023
and 2022, respectively.
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(dollars in millions)
December 31,
December 31,
2023
2022
ASSETS
Current Assets:
Cash and cash equivalents
$
1,475.0
$
1,373.1
Short-term investments
185.2
61.1
Total cash, cash equivalents and
short-term investments
1,660.2
1,434.2
Accounts receivable, less allowance for
doubtful accounts of $68.4 and $63.9, respectively
2,618.4
2,631.3
Inventories
2,167.1
2,093.6
Prepaid expenses and other current
assets
389.6
320.0
Total current assets
6,835.3
6,479.1
Property, plant and equipment, less
accumulated depreciation of $2,261.8 and $2,019.3, respectively
1,314.7
1,204.3
Goodwill
7,092.4
6,446.1
Other intangible assets, net
834.8
734.1
Other long-term assets
449.2
462.6
Total Assets
$
16,526.4
$
15,326.2
LIABILITIES, REDEEMABLE NONCONTROLLING
INTERESTS AND EQUITY
Current Liabilities:
Accounts payable
$
1,350.9
$
1,309.1
Accrued salaries, wages and employee
benefits
412.8
416.7
Accrued income taxes
166.0
169.5
Accrued dividends
131.7
124.9
Other accrued expenses
737.5
653.2
Current portion of long-term debt
353.8
2.7
Total current liabilities
3,152.7
2,676.1
Long-term debt, less current portion
3,983.5
4,575.0
Accrued pension and postretirement benefit
obligations
143.0
127.9
Deferred income taxes
367.0
409.8
Other long-term liabilities
453.7
443.3
Total Liabilities
8,099.9
8,232.1
Redeemable noncontrolling interests
30.7
20.6
Equity:
Common stock
0.6
0.6
Additional paid-in capital
3,101.2
2,650.4
Retained earnings
5,921.1
4,979.4
Treasury stock, at cost
(142.8
)
(79.8
)
Accumulated other comprehensive loss
(533.6
)
(535.0
)
Total stockholders’ equity attributable to
Amphenol Corporation
8,346.5
7,015.6
Noncontrolling interests
49.3
57.9
Total Equity
8,395.8
7,073.5
Total Liabilities, Redeemable
Noncontrolling Interests and Equity
$
16,526.4
$
15,326.2
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOW
(Unaudited)
(dollars in millions)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2023
2022
2023
2022
Cash from operating
activities:
Net income
$
519.2
$
511.0
$
1,945.5
$
1,916.8
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
115.0
108.3
406.4
392.9
Stock-based compensation expense
26.6
25.3
99.0
89.5
Deferred income tax benefit
(51.7
)
(22.3
)
(58.8
)
(4.7
)
Gain on bargain purchase acquisition
—
—
(5.4
)
—
Net change in components of working
capital
231.0
81.2
149.8
(193.1
)
Net change in other long-term assets and
liabilities
1.8
1.8
(7.8
)
(26.8
)
Net cash provided by operating
activities
841.9
705.3
2,528.7
2,174.6
Cash from investing
activities:
Capital expenditures
(105.0
)
(93.6
)
(372.8
)
(383.8
)
Proceeds from disposals of property, plant
and equipment
1.8
1.1
4.0
5.6
Purchases of investments
(86.9
)
(4.8
)
(305.7
)
(309.4
)
Sales and maturities of investments
178.5
7.6
246.3
228.2
Acquisitions, net of cash acquired
(677.8
)
—
(970.4
)
(288.2
)
Other, net
—
9.1
4.9
16.5
Net cash used in investing activities
(689.4
)
(80.6
)
(1,393.7
)
(731.1
)
Cash from financing
activities:
Proceeds from issuance of senior notes and
other long-term debt
0.9
2.9
354.9
5.8
Repayments of senior notes and other
long-term debt
(5.4
)
(2.8
)
(15.7
)
(10.3
)
Proceeds from short-term borrowings
—
—
—
44.9
Repayments of short-term borrowings
—
—
—
(44.9
)
(Repayments) borrowings under commercial
paper programs, net
—
(271.2
)
(632.6
)
(159.3
)
Payment of costs related to debt
financing
—
—
(2.3
)
(0.4
)
Payment of deferred purchase price related
to acquisitions
—
—
(1.5
)
—
Purchase of treasury stock
(115.3
)
(170.4
)
(585.1
)
(730.5
)
Proceeds from exercise of stock
options
71.4
71.2
394.5
185.3
Distributions to and purchases of
noncontrolling interests
(16.0
)
(5.5
)
(24.0
)
(9.9
)
Dividend payments
(125.6
)
(119.0
)
(500.6
)
(477.4
)
Net cash used in financing activities
(190.0
)
(494.8
)
(1,012.4
)
(1,196.7
)
Effect of exchange rate changes on cash
and cash equivalents
31.0
54.2
(20.7
)
(70.8
)
Net (decrease) increase in cash and cash
equivalents
(6.5
)
184.1
101.9
176.0
Cash and cash equivalents balance,
beginning of period
1,481.5
1,189.0
1,373.1
1,197.1
Cash and cash equivalents balance, end of
period
$
1,475.0
$
1,373.1
$
1,475.0
$
1,373.1
Cash paid for:
Interest
$
40.1
$
37.4
$
129.2
$
123.7
Income taxes, net
136.6
89.9
560.4
477.7
AMPHENOL CORPORATION
SEGMENT INFORMATION
(Unaudited)
(dollars in millions)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2023
2022
2023
2022
Net
sales:
Harsh Environment Solutions
$
900.3
$
795.4
$
3,530.8
$
3,107.2
Communications Solutions
1,345.3
1,435.9
4,912.8
5,652.4
Interconnect and Sensor Systems
1,081.9
1,007.9
4,111.1
3,863.4
Consolidated Net sales
$
3,327.5
$
3,239.2
$
12,554.7
$
12,623.0
Operating
income:
Harsh Environment Solutions
$
238.2
$
204.8
$
943.9
$
801.6
Communications Solutions
311.1
318.5
1,063.5
1,245.7
Interconnect and Sensor Systems
200.2
193.8
753.7
716.5
Stock-based compensation expense
(26.6
)
(25.3
)
(99.0
)
(89.5
)
Acquisition-related expenses
(16.3
)
(9.5
)
(34.6
)
(21.5
)
Other operating expenses
(16.6
)
(16.1
)
(67.9
)
(67.0
)
Consolidated Operating income
$
690.0
$
666.2
$
2,559.6
$
2,585.8
Operating margin
(%):
Harsh Environment Solutions
26.5
%
25.7
%
26.7
%
25.8
%
Communications Solutions
23.1
%
22.2
%
21.6
%
22.0
%
Interconnect and Sensor Systems
18.5
%
19.2
%
18.3
%
18.5
%
Stock-based compensation expense
-0.8
%
-0.8
%
-0.8
%
-0.7
%
Acquisition-related expenses
-0.5
%
-0.3
%
-0.3
%
-0.2
%
Other operating expenses
-0.5
%
-0.5
%
-0.5
%
-0.5
%
Consolidated Operating margin (%)
20.7
%
20.6
%
20.4
%
20.5
%
AMPHENOL CORPORATION SUPPLEMENTAL
FINANCIAL INFORMATION RECONCILIATIONS OF GAAP TO NON-GAAP
FINANCIAL MEASURES (Unaudited) (dollars in millions,
except per share data)
Management utilizes the non-GAAP financial measures defined
below as part of its internal reviews for purposes of monitoring,
evaluating and forecasting the Company’s financial performance,
communicating operating results to the Company’s Board of Directors
and assessing related employee compensation measures. Management
believes that such non-GAAP financial measures may be helpful to
investors in assessing the Company’s overall financial performance,
trends and period-over-period comparative results. 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 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) (1)
Net sales
Foreign
Constant
Organic
growth in
currency
Currency Net
Acquisition
Net Sales
U.S. Dollars (2)
impact (3)
Sales Growth (5)
impact (4)
Growth (5)
Three Months
Ended December 31,
2023
2022
(GAAP)
(non-GAAP)
(non-GAAP)
(non-GAAP)
(non-GAAP)
Net sales by
segment:
Harsh Environment Solutions
$
900.3
$
795.4
13
%
1
%
12
%
6
%
6
%
Communications Solutions
1,345.3
1,435.9
(6
)%
—
%
(6
)%
1
%
(7
)%
Interconnect and Sensor Systems
1,081.9
1,007.9
7
%
1
%
6
%
4
%
2
%
Consolidated
$
3,327.5
$
3,239.2
3
%
1
%
2
%
3
%
(1
)%
Twelve Months
Ended December 31,
Net sales by
segment:
Harsh Environment Solutions
$
3,530.8
$
3,107.2
14
%
—
%
14
%
5
%
9
%
Communications Solutions
4,912.8
5,652.4
(13
)%
(1
)%
(12
)%
1
%
(13
)%
Interconnect and Sensor Systems
4,111.1
3,863.4
6
%
—
%
7
%
3
%
3
%
Consolidated
$
12,554.7
$
12,623.0
(1
)%
—
%
—
%
3
%
(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 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.
(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 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
(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 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 December
31,
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)
$
690.0
20.7
%
$
514.5
22.0
%
$
0.83
$
666.2
20.6
%
$
507.5
19.2
%
$
0.82
Acquisition-related expenses
16.3
0.5
14.0
(0.3
)
0.02
9.5
0.3
7.9
(0.1
)
0.01
Excess tax benefits related to stock-based
compensation
—
—
(15.1
)
2.3
(0.02
)
—
—
(34.1
)
5.4
(0.06
)
Adjusted (non-GAAP) (ii) (iii)
$
706.3
21.2
%
$
513.4
24.0
%
$
0.82
$
675.7
20.9
%
$
481.3
24.5
%
$
0.78
Twelve Months Ended December
31,
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)
$
2,559.6
20.4
%
$
1,928.0
20.7
%
$
3.11
$
2,585.8
20.5
%
$
1,902.3
22.3
%
$
3.06
Acquisition-related expenses
34.6
0.3
30.2
(0.2
)
0.05
21.5
0.2
18.4
(0.1
)
0.03
Gain on bargain purchase acquisition
—
—
(5.4
)
0.1
(0.01
)
—
—
—
—
—
Excess tax benefits related to stock-based
compensation
—
—
(82.4
)
3.4
(0.13
)
—
—
(56.0
)
2.3
(0.09
)
Adjusted (non-GAAP) (ii) (iii)
$
2,594.2
20.7
%
$
1,870.4
24.0
%
$
3.01
$
2,607.3
20.7
%
$
1,864.7
24.5
%
$
3.00
FREE
CASH FLOW
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2023
2022
2023
2022
Operating Cash Flow (GAAP)
$
841.9
$
705.3
$
2,528.7
$
2,174.6
Capital expenditures (GAAP)
(105.0
)
(93.6
)
(372.8
)
(383.8
)
Proceeds from disposals of property, plant
and equipment (GAAP)
1.8
1.1
4.0
5.6
Free Cash Flow (non-GAAP) (iii)
$
738.7
$
612.8
$
2,159.9
$
1,796.4
____________________________________________________________
(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
measures.
(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 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
stockholders 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, 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 U.S. GAAP.
The following is a reconciliation of current guidance for GAAP
Diluted earnings per share (Diluted EPS) to Adjusted Diluted EPS
(non-GAAP) for the first quarter of 2024:
GUIDANCE (1)
FIRST QUARTER 2024
Diluted EPS (GAAP)
$0.69 - $0.71
Acquisition-related costs, net of tax
$0.02
Adjusted Diluted EPS (non-GAAP) (2)
$0.71 - $0.73
____________________________________________________________ (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 first quarter of 2024 of
approximately $0.02 per share primarily related to the amortization
of purchase accounting backlog associated with recent
acquisitions.
(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/20240124424302/en/
Sherri Scribner Vice President, Strategy and Investor Relations
203-265-8820 IR@amphenol.com
Grafico Azioni Amphenol (NYSE:APH)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Amphenol (NYSE:APH)
Storico
Da Gen 2024 a Gen 2025
