Second Quarter 2024 Highlights:
- Record sales of $3.61 billion, up 18% in U.S. dollars and 11%
organically compared to the second quarter of 2023
- GAAP Diluted EPS of $0.41, up 11% compared to prior year
- Record Adjusted Diluted EPS of $0.44, up 22% compared to prior
year
- GAAP and record Adjusted Operating Margin of 19.4% and 21.3%,
respectively
- Operating and Free Cash Flow of $664 million and $528 million,
respectively
- Announces deal to acquire Lutze, with Lutze US closed during
the quarter and Lutze Europe expected to close in the third
quarter
- Completed previously announced acquisition of CIT and in July
signed deal to acquire CommScope’s mobile networks-related
businesses
- Increases quarterly dividend by 50% to $0.165 per share
Amphenol Corporation (NYSE: APH) today reported second quarter
2024 results.
“We are pleased to have closed the second quarter of 2024 with
record 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 18%,
primarily driven by growth in the IT datacom, defense, commercial
air, mobile devices, mobile networks and automotive markets, as
well as contributions from the Company’s acquisition program,
partially offset by organic moderations in the broadband and
industrial markets. During the quarter, we again realized strong
profitability with Adjusted Operating Margin reaching a record
21.3%. We are very proud of the Company’s outstanding performance
during the quarter.”
The Company continues to deploy its financial strength in a
variety of ways to increase shareholder value. During the quarter,
the Company purchased 3.1 million shares of its common stock for
$190 million and paid dividends of $132 million, resulting in total
capital returned to shareholders of more than $320 million.
Amphenol remains focused on expanding its 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, the Company is excited to have
closed the acquisition of Carlisle Interconnect Technologies (CIT)
on May 21, as previously announced. During the quarter, Amphenol
also signed a definitive agreement to acquire Lutze, a leading
provider of harsh environment cable and cable assembly solutions
for high-technology applications in the industrial market. The
acquisition includes two businesses: Lutze US, based in North
Carolina, and Lutze Europe, based in Germany. In May, we closed on
Lutze US, which has annual sales of approximately $75 million, and
we expect to close on Lutze Europe, which has annual sales of
approximately $100 million, by the end of the third quarter of
2024. Both the CIT and Lutze businesses are reported in our Harsh
Environment Solutions segment.
Finally, as disclosed last week, Amphenol has entered into a
definitive agreement to acquire CommScope’s mobile networks-related
businesses.
Increase in Quarterly Dividend
On July 23, 2024, Amphenol’s Board of Directors approved a 50%
increase in the Company’s quarterly dividend, from $0.11 per share
to $0.165 per share. The new dividend amount will be paid on
October 9, 2024 to shareholders of record as of September 17,
2024.
Third Quarter 2024 Outlook
Assuming the continuation of current market conditions as well
as constant exchange rates, for the third quarter of 2024, Amphenol
expects sales to be in the range of $3.70 billion to $3.80 billion.
This represents a 16% to 19% increase over the prior year quarter.
Adjusted Diluted EPS is expected to be in the range of $0.43 to
$0.45, representing a 10% to 15% increase from the third quarter of
2023. This guidance does not include the impact of acquisitions
that have not yet closed.
Mr. Norwitt continued, “I am very pleased with the Company’s
second quarter 2024 results. The revolution in electronics
continues 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.”
2-for-1 Stock Split
As announced on May 20, 2024, the Company’s Board of Directors
approved a 2-for-1 stock split, which was paid in the form of a
stock dividend to shareholders of record as of the close of
business on May 31, 2024. The additional shares were distributed on
June 11, 2024 and the Company’s common stock began trading on a
split-adjusted basis on June 12, 2024. The effect of the stock
split on the Company’s financial results, including all share and
per share data for both the current and prior year periods, as well
as the quarterly dividend is reflected in this press release.
Conference Call and Webcast Details
The Company will host a conference call to discuss its second
quarter results at 1:00 PM (EDT) on Wednesday, July 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 (EDT) on Saturday, August 24,
2024. The replay numbers are toll free 866-361-4757; International
toll number +1-203-369-0183; 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, the expected timing
for the closing of certain acquisitions or other matters. Although
the Company believes the expectations reflected in all
forward-looking statements, including those we may make regarding
third quarter 2024 sales and Adjusted Diluted EPS as well as the
expected timing for the closing of 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 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, credential harvesting, ransomware,
malfeasance by insiders, human or technological error and other
increasingly sophisticated attacks, that continue to expand and
evolve, including through the use of artificial intelligence and
machine learning, 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, and risks and impacts associated with
an increasingly demanding regulatory environment surrounding
information security and privacy, including additional fines,
penalties and costs; 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 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, 2023, 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. Our forward-looking statements may also
be impacted by, among other things, future tax, regulatory and
other legal changes that may arise in any of the jurisdictions in
which we operate. 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
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
Net sales
$
3,609.7
$
3,053.9
$
6,866.0
$
6,028.0
Cost of sales
2,396.6
2,062.2
4,563.9
4,092.9
Gross profit
1,213.1
991.7
2,302.1
1,935.1
Acquisition-related expenses
70.0
4.0
70.0
9.4
Selling, general and administrative
expenses
444.3
367.8
848.4
714.1
Operating income
698.8
619.9
1,383.7
1,211.6
Interest expense
(56.3)
(35.0)
(94.4)
(71.0)
Gain on bargain purchase acquisition
(1)
—
5.4
—
5.4
Other income (expense), net
21.3
5.6
37.3
9.8
Income before income taxes
663.8
595.9
1,326.6
1,155.8
Provision for income taxes (2)
(135.1)
(130.6)
(245.8)
(247.8)
Net income
528.7
465.3
1,080.8
908.0
Less: Net income attributable to
noncontrolling interests
(3.9)
(4.8)
(7.3)
(8.3)
Net income attributable to Amphenol
Corporation
$
524.8
$
460.5
$
1,073.5
$
899.7
Net income attributable to Amphenol
Corporation per common share — Basic
$
0.44
$
0.39
$
0.89
$
0.76
Weighted average common shares outstanding
— Basic
1,202.3
1,189.9
1,201.2
1,190.0
Net income attributable to Amphenol
Corporation per common share — Diluted (3)
$
0.41
$
0.37
$
0.85
$
0.73
Weighted average common shares outstanding
— Diluted
1,264.9
1,236.5
1,260.4
1,238.1
_______________________________________
Note 1
Reflects the non-cash gain of $5.4 million
($0.00 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 June 30, 2024 and 2023 includes excess tax benefits
related to stock-based compensation of $30.9 million ($0.02 per
share) and $11.9 million ($0.01 per share), respectively. Provision
for income taxes for the six months ended June 30, 2024 and 2023
includes excess tax benefits related to stock-based compensation of
$60.6 million ($0.05 per share) and $29.0 million ($0.02 per
share), respectively. Provision for income taxes for the six months
ended June 30, 2024 also includes a discrete tax benefit of $18.6
million ($0.01 per share) related to the settlement of tax audits
and associated lapses of statutes of limitation, along with a
difference in a non-U.S. tax filing position.
Note 3
Net income per share for the three months
ended June 30, 2024 and 2023 includes the excess tax benefits
related to stock-based compensation discussed in Note 2. Net income
per share for the three months ended June 30, 2024 also includes
acquisition-related expenses of $70.0 million ($59.9 million
after-tax, or $0.05 per share), comprised primarily of external
transaction costs associated with the 2024 acquisitions, as well as
the amortization related to the value associated with acquired
backlog and certain non-cash purchase accounting costs resulting
from the Carlisle Interconnect Technologies (“CIT”) acquisition.
Net income per share for the three months ended June 30, 2023 also
included the non-cash gain related to the bargain purchase
acquisition discussed in Note 1, as well as acquisition-related
expenses of $4.0 million ($3.8 million after-tax, or $0.00 per
share), comprised of external transaction costs related to
acquisitions.
Net income per share for the six months
ended June 30, 2024 and 2023 includes the excess tax benefits
related to stock-based compensation discussed in Note 2. Net income
per share for the six months ended June 30, 2024 also includes the
discrete tax benefit discussed in Note 2, as well as the
acquisition-related expenses incurred during the second quarter of
2024 discussed above. Net income per share for the six months ended
June 30, 2023 also included the non-cash gain related to the
bargain purchase acquisition discussed in Note 1, as well as
acquisition-related expenses of $9.4 million ($7.8 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 the first quarter of
2023 and external transaction costs incurred in the second quarter
of 2023.
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 $0.44 and $0.36 for the three months ended June
30, 2024 and 2023, respectively, and $0.84 and $0.71 for the six
months ended June 30, 2024 and 2023, respectively.
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(dollars in millions)
June 30,
December 31,
2024
2023
ASSETS
Current Assets:
Cash and cash equivalents
$
1,252.5
$
1,475.0
Short-term investments
49.7
185.2
Total cash, cash equivalents and
short-term investments
1,302.2
1,660.2
Accounts receivable, less allowance for
doubtful accounts of $69.7 and $68.4, respectively
2,855.5
2,618.4
Inventories
2,398.8
2,167.1
Prepaid expenses and other current
assets
415.3
389.6
Total current assets
6,971.8
6,835.3
Property, plant and equipment, less
accumulated depreciation of $2,333.8 and $2,261.8, respectively
1,534.0
1,314.7
Goodwill
8,261.8
7,092.4
Other intangible assets, net
1,308.7
834.8
Other long-term assets
510.5
449.2
Total Assets
$
18,586.8
$
16,526.4
LIABILITIES, REDEEMABLE NONCONTROLLING
INTERESTS AND EQUITY
Current Liabilities:
Accounts payable
$
1,521.4
$
1,350.9
Accrued salaries, wages and employee
benefits
423.2
412.8
Accrued income taxes
104.3
166.0
Accrued dividends
132.4
131.7
Other accrued expenses
870.4
737.5
Current portion of long-term debt
404.1
353.8
Total current liabilities
3,455.8
3,152.7
Long-term debt, less current portion
5,035.3
3,983.5
Accrued pension and postretirement benefit
obligations
141.4
143.0
Deferred income taxes
445.7
367.0
Other long-term liabilities
458.1
453.7
Total Liabilities
9,536.3
8,099.9
Redeemable noncontrolling interests
19.9
30.7
Equity:
Common stock
1.2
1.2
Additional paid-in capital
3,349.2
3,100.6
Retained earnings
6,352.0
5,921.1
Treasury stock, at cost
(73.8)
(142.8)
Accumulated other comprehensive loss
(648.5)
(533.6)
Total stockholders’ equity attributable to
Amphenol Corporation
8,980.1
8,346.5
Noncontrolling interests
50.5
49.3
Total Equity
9,030.6
8,395.8
Total Liabilities, Redeemable
Noncontrolling Interests and Equity
$
18,586.8
$
16,526.4
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOW
(Unaudited)
(dollars in millions)
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
Cash from operating
activities:
Net income
$
528.7
$
465.3
$
1,080.8
$
908.0
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
123.6
94.1
227.4
190.4
Stock-based compensation expense
26.6
23.8
50.4
45.5
Deferred income tax benefit
(21.1)
(5.5)
(19.3)
(5.4)
Gain on bargain purchase acquisition
—
(5.4)
—
(5.4)
Net change in components of working
capital
4.1
(33.9)
(69.8)
(57.7)
Net change in other long-term assets and
liabilities
2.2
(2.0)
(5.9)
(6.6)
Net cash provided by operating
activities
664.1
536.4
1,263.6
1,068.8
Cash from investing
activities:
Capital expenditures
(141.3)
(95.4)
(235.6)
(193.1)
Proceeds from disposals of property, plant
and equipment
4.9
0.8
5.4
1.6
Purchases of investments
(1.5)
(82.5)
(13.4)
(139.2)
Sales and maturities of investments
58.2
53.8
145.8
63.8
Acquisitions, net of cash acquired
(2,099.8)
—
(2,099.8)
(113.2)
Other, net
0.8
4.8
1.9
5.0
Net cash used in investing activities
(2,178.7)
(118.5)
(2,195.7)
(375.1)
Cash from financing
activities:
Proceeds from issuance of senior notes and
other long-term debt
1,500.1
1.6
1,500.1
351.8
Repayments of senior notes and other
long-term debt
(350.7)
(4.0)
(351.8)
(7.1)
(Repayments) borrowings under commercial
paper programs, net
—
(245.1)
—
(632.6)
Payment of costs related to debt
financing
(11.8)
—
(14.7)
(2.3)
Purchase of treasury stock
(190.4)
(153.6)
(344.2)
(320.5)
Proceeds from exercise of stock
options
121.4
88.8
234.7
163.1
Distributions to and purchases of
noncontrolling interests
(17.5)
(1.3)
(17.5)
(6.5)
Dividend payments
(132.1)
(125.0)
(263.8)
(249.9)
Other, net
0.6
—
0.6
—
Net cash provided by (used in) financing
activities
919.6
(438.6)
743.4
(704.0)
Effect of exchange rate changes on cash
and cash equivalents
(9.6)
(45.3)
(33.8)
(37.7)
Net decrease in cash and cash
equivalents
(604.6)
(66.0)
(222.5)
(48.0)
Cash and cash equivalents balance,
beginning of period
1,857.1
1,391.1
1,475.0
1,373.1
Cash and cash equivalents balance, end of
period
$
1,252.5
$
1,325.1
$
1,252.5
$
1,325.1
Cash paid for:
Interest
$
38.4
$
25.4
$
71.2
$
60.3
Income taxes, net
229.1
208.3
359.2
324.4
AMPHENOL CORPORATION
SEGMENT INFORMATION
(Unaudited)
(dollars in millions)
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
Net
sales:
Harsh Environment Solutions
$
1,046.0
$
888.9
$
1,962.0
$
1,743.1
Communications Solutions
1,444.6
1,161.6
2,710.3
2,288.4
Interconnect and Sensor Systems
1,119.1
1,003.4
2,193.7
1,996.5
Consolidated Net sales
$
3,609.7
$
3,053.9
$
6,866.0
$
6,028.0
Operating
income:
Harsh Environment Solutions
$
259.6
$
240.3
$
504.1
$
466.6
Communications Solutions
350.6
238.5
636.8
469.1
Interconnect and Sensor Systems
203.3
185.9
398.7
364.7
Stock-based compensation expense
(26.6)
(23.8)
(50.4)
(45.5)
Acquisition-related expenses
(70.0)
(4.0)
(70.0)
(9.4)
Other operating expenses
(18.1)
(17.0)
(35.5)
(33.9)
Consolidated Operating income
$
698.8
$
619.9
$
1,383.7
$
1,211.6
Operating margin
(%):
Harsh Environment Solutions
24.8%
27.0%
25.7%
26.8%
Communications Solutions
24.3%
20.5%
23.5%
20.5%
Interconnect and Sensor Systems
18.2%
18.5%
18.2%
18.3%
Stock-based compensation expense
-0.7%
-0.8%
-0.7%
-0.8%
Acquisition-related expenses
-1.9%
-0.1%
-1.0%
-0.2%
Other operating expenses
-0.5%
-0.6%
-0.5%
-0.6%
Consolidated Operating margin (%)
19.4%
20.3%
20.2%
20.1%
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 June 30,
2024
2023
(GAAP)
(non-GAAP)
(non-GAAP)
(non-GAAP)
(non-GAAP)
Net sales by
segment:
Harsh Environment Solutions
$
1,046.0
$
888.9
18
%
(1)
%
18
%
17
%
1
%
Communications Solutions
1,444.6
1,161.6
24
%
(1)
%
25
%
2
%
23
%
Interconnect and Sensor Systems
1,119.1
1,003.4
12
%
(1)
%
13
%
5
%
7
%
Consolidated
$
3,609.7
$
3,053.9
18
%
(1)
%
19
%
8
%
11
%
Six Months Ended
June 30,
Net sales by
segment:
Harsh Environment Solutions
$
1,962.0
$
1,743.1
13
%
—
%
13
%
11
%
2
%
Communications Solutions
2,710.3
2,288.4
18
%
(1)
%
19
%
2
%
17
%
Interconnect and Sensor Systems
2,193.7
1,996.5
10
%
(1)
%
11
%
6
%
5
%
Consolidated
$
6,866.0
$
6,028.0
14
%
(1)
%
15
%
6
%
9
%
______________________________________________________
(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 June
30,
2024
2023
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)
$
698.8
19.4
%
$
524.8
20.4
%
$
0.41
$
619.9
20.3
%
$
460.5
21.9
%
$
0.37
Acquisition-related expenses
70.0
1.9
59.9
(1.0)
0.05
4.0
0.1
3.8
(0.1)
—
Gain on bargain purchase acquisition
—
—
—
—
—
—
—
(5.4)
0.2
—
Excess tax benefits related to stock-based
compensation
—
—
(30.9)
4.7
(0.02)
—
—
(11.9)
2.0
(0.01)
Adjusted (non-GAAP) (ii) (iii)
$
768.8
21.3
%
$
553.8
24.0
%
$
0.44
$
623.9
20.4
%
$
447.0
24.0
%
$
0.36
Six Months Ended June
30,
2024
2023
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)
$
1,383.7
20.2
%
$
1,073.5
18.5
%
$
0.85
$
1,211.6
20.1
%
$
899.7
21.4
%
$
0.73
Acquisition-related expenses
70.0
1.0
59.9
(0.5)
0.05
9.4
0.2
7.8
(0.1)
0.01
Gain on bargain purchase acquisition
—
—
—
—
—
—
—
(5.4)
0.1
—
Excess tax benefits related to stock-based
compensation
—
—
(60.6)
4.6
(0.05)
—
—
(29.0)
2.5
(0.02)
Discrete tax items
—
—
(18.6)
1.4
(0.01)
—
—
—
—
—
Adjusted (non-GAAP) (ii) (iii)
$
1,453.7
21.2
%
$
1,054.2
24.0
%
$
0.84
$
1,221.0
20.3
%
$
873.1
24.0
%
$
0.71
FREE
CASH FLOW
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
Operating Cash Flow (GAAP)
$
664.1
$
536.4
$
1,263.6
$
1,068.8
Capital expenditures (GAAP)
(141.3)
(95.4)
(235.6)
(193.1)
Proceeds from disposals of property, plant
and equipment (GAAP)
4.9
0.8
5.4
1.6
Free Cash Flow (non-GAAP) (iii)
$
527.7
$
441.8
$
1,033.4
$
877.3
____________________________________________________________
(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 third quarter of 2024:
GUIDANCE (1)
THIRD QUARTER 2024
Diluted EPS (GAAP)
$0.40 - $0.42
Acquisition-related costs, net of tax
$0.03
Adjusted Diluted EPS (non-GAAP) (2)
$0.43 - $0.45
___________________________
(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 third quarter of 2024 of
approximately $50 million ($0.03 per share) comprised primarily of
the amortization related to the value associated with acquired
backlog and certain non-cash purchase accounting costs resulting
from the CIT acquisition that closed in the second quarter of 2024.
(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/20240724220482/en/
Sherri Scribner Vice President, Strategy and Investor Relations
203-265-8820 IR@amphenol.com
Grafico Azioni Amphenol (NYSE:APH)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni Amphenol (NYSE:APH)
Storico
Da Dic 2023 a Dic 2024
