10-QPeriod: Q3 FY2013

AMETEK INC/ Quarterly Report for Q3 Ended Sep 30, 2013

Filed November 4, 2013For Securities:AME

Summary

AMETEK Inc. (AME) reported strong financial results for the third quarter and the first nine months of 2013, demonstrating consistent growth and effective operational management. Net sales increased by 6.0% for the quarter and 6.4% year-to-date, driven by contributions from recent acquisitions and organic growth. The company highlighted record sales and operating income for the third quarter, bolstered by strategic acquisitions like Controls Southeast (CSI) and Micro-Poise Measurement Systems. AMETEK's strong performance is further supported by its Operational Excellence initiatives, which contribute to improved operating margins. The company also reported a significant increase in new orders and a record backlog, indicating positive future revenue potential.

Financial Highlights

49 data points
Beta

Revenue

$890.01M

Net Income

$127.86M

14.4% Net Margin

EPS (Diluted)

$0.52

Total Assets

$5.46B

Cash & Equivalents

$254.88M

Free Cash Flow

$150.60M

Financial Statements
Beta
Revenue$890.01M
SG&A Expenses$98.97M
Operating Expenses$685.32M
Operating Income$204.69M
Interest Expense$18.24M
Net Income$127.86M
EPS (Basic)$0.52
EPS (Diluted)$0.52
Shares Outstanding (Basic)244.05M
Shares Outstanding (Diluted)245.93M

Key Highlights

  • 1Net sales for the third quarter of 2013 increased by 6.0% to $890.0 million compared to $839.4 million in the prior year period.
  • 2For the first nine months of 2013, net sales grew by 6.4% to $2,651.7 million from $2,492.4 million in the same period of 2012.
  • 3The company achieved record sales and operating income for the third quarter, attributed to acquisitions and operational improvements.
  • 4Third-quarter new orders increased by 17.1% to $937.1 million, contributing to a record backlog of $1,170.5 million as of September 30, 2013.
  • 5Acquisitions, including Controls Southeast (CSI) in August 2013, played a significant role in driving revenue growth, particularly in the Electronic Instruments Group (EIG).
  • 6Diluted earnings per share increased to $0.52 for the third quarter of 2013, up from $0.47 in the prior year period.
  • 7Cash flow from operations for the nine months ended September 30, 2013, increased by 7.6% to $451.1 million, supporting free cash flow of $414.0 million.

Frequently Asked Questions

AMETEK's sales growth in the third quarter of 2013 was primarily driven by the contributions from recent acquisitions, such as Controls Southeast (CSI) and Micro-Poise Measurement Systems, along with approximately 1% of internal sales growth. Foreign currency translation had a neutral impact.

Acquisitions significantly boosted AMETEK's financial performance. The acquisition of CSI in August 2013, along with earlier acquisitions like Micro-Poise and Dunkermotoren, contributed to increased net sales and operating income, particularly within the Electronic Instruments Group (EIG).

The company's new orders for the third quarter of 2013 saw a substantial increase of 17.1% year-over-year, reaching $937.1 million. This led to a record backlog of $1,170.5 million as of September 30, 2013, suggesting a positive outlook for future revenue generation.

The increase in goodwill on the balance sheet, particularly from $2,208.2 million at the end of 2012 to $2,300.5 million at September 30, 2013, is primarily due to goodwill acquired through business acquisitions, such as the CSI acquisition, and purchase price allocation adjustments.