01—Abstract
Summary
Summary of the 10-K filed February 20, 2020. Cited figures are marked; the original filing is the authoritative source.
AMETEK, Inc. reported a record year in 2019, with significant growth across key financial metrics including sales, operating income, and diluted earnings per share.
The company's success was driven by a combination of organic growth within its Electronic Instruments Group (EIG) and Electromechanical Group (EMG), contributions from strategic acquisitions completed in 2018 and 2019, and the ongoing implementation of its Operational Excellence initiatives. AMETEK continues to execute its 'AMETEK Growth Model,' which prioritizes operational excellence, strategic acquisitions, global and market expansion, and new product development. The company successfully integrated several acquisitions, contributing to its revenue growth and expanding its technological capabilities.
Strong cash flow generation remains a priority, supporting its acquisition strategy and a commitment to returning value to shareholders through dividends and share repurchases. Looking ahead, AMETEK is well-positioned to continue its growth trajectory, driven by its diversified business segments and ongoing focus on innovation and operational efficiency.
02—Key points
Key Highlights
- Record sales of $5.16 billion in 2019, a 6.5% increase from 2018, driven by 2% organic sales growth and contributions from recent acquisitions.
- Diluted Earnings Per Share (EPS) increased by 12.3% to $3.75 in 2019, up from $3.34 in 2018.
- Operating income grew by 9.5% to $1.18 billion in 2019, reflecting strong operational performance.
- The company completed two strategic acquisitions in 2019: Pacific Design Technologies, Inc. (PDT) and Gatan, further strengthening its market positions.
- Operating cash flow increased by 20.4% to $1.11 billion in 2019, demonstrating robust cash generation.
- AMETEK continues to invest in Research, Development, and Engineering (R&D), with $260.3 million spent in 2019 to drive innovation and new product development.
- The company maintained a solid financial position with a net debt-to-capitalization ratio of 31.7% at year-end 2019.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2019, Ametek Inc kept $0.17.
- Revenue$5.16B100.0%
- Cost of revenue−$3.37B65.3%
- Gross profit$1.79B34.7%
- Operating costs−$610.3M11.8%
- Operating income$1.18B22.8%
- Interest, other & tax−$316.1M6.1%
- Net income$861.3M16.7%
04—Financials
Financial Highlights
Figures from 10-KFY2019filed February 20, 2020Financial Statements
FY2019 against FY2018
| Line item | FY2019FY2018 | Change |
|---|---|---|
| Revenue | $5.16B$4.85B | +6.5% |
| Cost of Revenue | $3.37B$3.19B | +5.8% |
| Gross Profit | $1.79B$1.66B | +7.7% |
| R&D Expenses | $161.90M$141.00M | +14.8% |
| SG&A Expenses | $610.28M$584.02M | +4.5% |
| Operating Expenses | $3.98B$3.77B | +5.6% |
| Operating Income | $1.18B$1.08B | +9.5% |
| Interest Expense | $88.48M$82.18M | +7.7% |
| Net Income | $861.30M$777.93M | +10.7% |
| EPS (Basic) | $3.78$3.37 | +12.2% |
| EPS (Diluted) | $3.75$3.34 | +12.3% |
| Shares Outstanding (Basic) | 227.76M230.82M | −1.3% |
| Shares Outstanding (Diluted) | 229.40M232.71M | −1.4% |
05—Questions
Frequently Asked Questions
What were AMETEK's key financial performance indicators for 2019?
In 2019, AMETEK reported record net sales of $5.16 billion, a 6.5% increase from the prior year. Diluted Earnings Per Share (EPS) rose by 12.3% to $3.75. Operating income also saw a significant increase of 9.5% to $1.18 billion. The company generated strong operating cash flow of $1.11 billion.
How did AMETEK's acquisition strategy contribute to its 2019 results?
AMETEK's strategic acquisition model continued to be a key growth driver. In 2019, the company acquired Pacific Design Technologies, Inc. (PDT) and Gatan, which contributed to a 5% increase in net sales. These acquisitions expanded AMETEK's capabilities in thermal management solutions and electron microscopy instrumentation, respectively.
What is AMETEK's approach to research and development?
AMETEK maintains a strong commitment to innovation, investing $260.3 million in research, development, and engineering in 2019. This investment fuels the development of new products and solutions across its Electronic Instruments Group (EIG) and Electromechanical Group (EMG), ensuring it stays at the forefront of technological advancements in its niche markets.
How does AMETEK manage its financial resources and debt?
AMETEK generated substantial operating cash flow in 2019, which supports its strategic initiatives, including acquisitions and share repurchases. The company maintained a healthy financial position, ending 2019 with a net debt-to-capitalization ratio of 31.7%. Management also highlighted a credit facility providing additional financial flexibility for growth plans.
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