10-QPeriod: Q1 FY2012

AMETEK INC/ Quarterly Report for Q1 Ended Mar 31, 2012

Filed May 3, 2012For Securities:AME

Summary

AMETEK, Inc. reported a strong first quarter for 2012, exceeding previous year's performance across key metrics. Net sales increased by 15.2% to $827.2 million, driven by robust organic growth and contributions from recent acquisitions. Diluted earnings per share saw a significant rise of 21.4% to $0.68 from $0.56 in the prior year's first quarter. This performance reflects the company's successful acquisition strategy and operational efficiency initiatives, with both the Electronic Instruments Group and Electromechanical Group segments demonstrating solid growth in sales and operating income. The company's financial position remains solid, with a healthy increase in cash provided by operating activities and a strong free cash flow of $132.5 million. AMETEK also expanded its credit facilities to support future growth and completed a significant acquisition of O'Brien Corporation in January 2012, which is expected to enhance its offerings in fluid and gas handling solutions. Management expressed confidence in the company's ability to meet its financial obligations and pursue strategic growth opportunities.

Financial Highlights

49 data points
Beta

Revenue

$827.15M

Net Income

$110.15M

13.3% Net Margin

EPS (Diluted)

$0.45

Total Assets

$4.61B

Cash & Equivalents

$219.30M

Free Cash Flow

$132.49M

Financial Statements
Beta
Revenue$827.15M
SG&A Expenses$95.04M
Operating Expenses$644.38M
Operating Income$182.78M
Interest Expense$18.84M
Net Income$110.15M
EPS (Basic)$0.46
EPS (Diluted)$0.45
Shares Outstanding (Basic)240.19M
Shares Outstanding (Diluted)243.31M

Key Highlights

  • 1Net sales increased by 15.2% to $827.2 million for Q1 2012 compared to Q1 2011.
  • 2Diluted earnings per share grew by 21.4% to $0.68 in Q1 2012 from $0.56 in Q1 2011.
  • 3The company completed the acquisition of O'Brien Corporation in January 2012 for $179.4 million, adding to its Electronic Instruments Group.
  • 4Both Electronic Instruments Group and Electromechanical Group segments reported increased net sales and operating income.
  • 5Cash provided by operating activities increased by 36.0% to $140.9 million in Q1 2012.
  • 6Free cash flow was $132.5 million in Q1 2012, a significant increase from $93.3 million in Q1 2011.
  • 7AMETEK secured a new five-year revolving credit facility of $700 million, enhancing financial flexibility.

Frequently Asked Questions

AMETEK's revenue growth in the first quarter of 2012 was driven by a combination of strong internal sales growth of approximately 6%, excluding foreign currency impacts, and contributions from recent acquisitions including O'Brien Corporation. Both the Electronic Instruments Group and Electromechanical Group segments experienced increased net sales.

The acquisition of O'Brien Corporation, completed in January 2012 for $179.4 million, was a significant factor in AMETEK's performance. O'Brien is now part of the Electronic Instruments Group and is expected to enhance AMETEK's offerings in process analysis needs. While the acquisition had an immaterial impact on reported net sales, net income, and diluted EPS for the first quarter itself, it contributed to the overall growth strategy and expanded AMETEK's market position.

AMETEK demonstrated strong liquidity in the first quarter of 2012, with cash and cash equivalents increasing to $219.3 million. Cash provided by operating activities rose significantly to $140.9 million, resulting in a healthy free cash flow of $132.5 million. The company also expanded its credit facilities, securing a new $700 million revolving credit facility. Total debt stood at $1,360.3 million with a debt-to-capital ratio of 38.3%, indicating a manageable leverage profile. The company is in compliance with all debt covenants.