10-QPeriod: Q1 FY2013

AMETEK INC/ Quarterly Report for Q1 Ended Mar 31, 2013

Filed May 2, 2013For Securities:AME

Summary

AMETEK, Inc. reported strong first-quarter 2013 results, exceeding prior year performance across key metrics including net sales, operating income, net income, and diluted earnings per share. Net sales grew by 6.7% to $882.9 million, driven by contributions from recent acquisitions such as Micro-Poise and Dunkermotoren, alongside ongoing Operational Excellence initiatives. This growth was partially offset by a 2% internal sales decline. The company demonstrated improved profitability, with operating income increasing by 7.9% to $197.2 million and net income rising by 13.5% to $125.1 million. Diluted earnings per share saw a 13.3% increase, reaching $0.51. AMETEK's financial position remains robust, with a healthy free cash flow of $145.9 million and a decreasing debt-to-capital ratio of 33.5%. The company maintained strong liquidity with $177.3 million in cash and cash equivalents, and expressed confidence in its ability to meet future obligations and operating needs.

Financial Statements
Beta
Revenue$882.85M
SG&A Expenses$97.61M
Operating Expenses$685.62M
Operating Income$197.24M
Interest Expense$18.32M
Net Income$125.15M
EPS (Basic)$0.51
EPS (Diluted)$0.51
Shares Outstanding (Basic)243.28M
Shares Outstanding (Diluted)245.41M

Key Highlights

  • 1Net sales increased by 6.7% to $882.9 million in Q1 2013 compared to Q1 2012, driven by acquisitions and operational initiatives.
  • 2Operating income grew by 7.9% to $197.2 million, and net income rose by 13.5% to $125.1 million.
  • 3Diluted earnings per share (EPS) increased by 13.3% to $0.51.
  • 4International sales represented 54.9% of total net sales, showing a significant 16.0% increase.
  • 5Free cash flow for the quarter was $145.9 million, an increase from $132.5 million in the prior year.
  • 6The company repurchased 186,268 shares of common stock for $7.7 million in Q1 2013.
  • 7Total debt decreased to $1,323.7 million, and the debt-to-capital ratio improved to 33.5%.

Frequently Asked Questions

The primary drivers for AMETEK's net sales growth were contributions from recent acquisitions, specifically Micro-Poise Measurement Systems and Dunkermotoren GmbH, as well as the company's 'Operational Excellence' initiatives. These factors helped offset a slight internal sales decline of 2%.

AMETEK demonstrated improved profitability. Operating income increased by 7.9% to $197.2 million, and net income saw a substantial increase of 13.5% to $125.1 million. Diluted earnings per share also rose by 13.3% to $0.51, indicating enhanced operational efficiency and profitability.

AMETEK maintained strong liquidity with $177.3 million in cash and cash equivalents. Total debt decreased to $1,323.7 million, and the debt-to-capital ratio improved to 33.5% from 36.4% at the end of 2012. The company reported positive free cash flow of $145.9 million and believes it has sufficient resources to meet its operating needs and contractual obligations.

The company expects the full year impact of its 2012 acquisitions and continued focus on Operational Excellence initiatives to positively influence results for the remainder of 2013. The strong first-quarter performance sets a positive tone for the year.