10-QPeriod: Q1 FY2015

AMETEK INC/ Quarterly Report for Q1 Ended Mar 31, 2015

Filed May 1, 2015For Securities:AME

Summary

AMETEK, Inc. reported modest revenue growth of 0.9% to $984.1 million for the first quarter of 2015, driven by internal growth and recent acquisitions, though partially offset by a strong U.S. dollar. Net income saw a slight increase of 1.1% to $142.1 million, translating to diluted earnings per share of $0.59, up from $0.57 in the prior year. This performance was achieved despite $15.9 million in pre-tax restructuring charges related to workforce reductions and a challenging global economic environment. The company's financial position remains robust, with total assets at $6.3 billion and total liabilities at $3.1 billion. Cash provided by operating activities was $121.9 million, though lower than the prior year due to increased pension plan contributions. AMETEK continued its commitment to shareholder returns through share repurchases and dividends, and announced a significant increase in its stock repurchase authorization shortly after the quarter ended. The company's strategic focus on operational excellence and integration of recent acquisitions are key drivers for future performance.

Financial Highlights

48 data points
Beta

Revenue

$984.06M

Net Income

$142.11M

14.4% Net Margin

EPS (Diluted)

$0.59

Total Assets

$6.34B

Cash & Equivalents

$406.59M

Free Cash Flow

$107.55M

Financial Statements
Beta
Revenue$984.06M
SG&A Expenses$110.88M
Operating Expenses$763.11M
Operating Income$220.95M
Interest Expense$22.69M
Net Income$142.11M
EPS (Basic)$0.59
EPS (Diluted)$0.59
Shares Outstanding (Basic)240.95M
Shares Outstanding (Diluted)242.80M

Key Highlights

  • 1Net sales increased by 0.9% to $984.1 million in Q1 2015 compared to $975.3 million in Q1 2014.
  • 2Net income rose by 1.1% to $142.1 million from $140.6 million in the prior year.
  • 3Diluted Earnings Per Share (EPS) increased to $0.59 from $0.57 in the prior year's first quarter.
  • 4The company incurred $15.9 million in pre-tax restructuring charges during Q1 2015, impacting profitability.
  • 5Cash from operations was $121.9 million, a decrease from $160.9 million in Q1 2014, largely due to higher pension contributions.
  • 6Total debt stood at $1,672.7 million at the end of Q1 2015, with a debt-to-capital ratio of 33.9%.
  • 7A significant increase of $350 million in the stock repurchase authorization was approved on April 1, 2015.

Frequently Asked Questions

In the first quarter of 2015, AMETEK reported net sales of $984.1 million, a slight increase of 0.9% compared to $975.3 million in the same period last year. Net income grew by 1.1% to $142.1 million, resulting in diluted earnings per share of $0.59, up from $0.57 in the first quarter of 2014.

AMETEK recorded $15.9 million in pre-tax restructuring charges in the first quarter of 2015, primarily related to workforce reductions due to a strong U.S. dollar and a weak global economy. These charges negatively impacted net income by $10.8 million, or $0.04 per diluted share. Despite this, the company saw growth from recent acquisitions and operational excellence initiatives.

Cash provided by operating activities was $121.9 million in Q1 2015, a decrease from $160.9 million in Q1 2014. This reduction was mainly due to a significant increase in defined benefit pension plan contributions. However, the company's overall liquidity remains strong, with cash and cash equivalents totaling $406.6 million at March 31, 2015. The debt-to-capital ratio was 33.9%, and the company affirmed its belief in sufficient cash-generating capabilities to meet future obligations.

AMETEK continued its practice of returning capital through share repurchases and dividends. In the first quarter of 2015, the company repurchased approximately 481,000 shares for $25.7 million. Importantly, shortly after the quarter ended, on April 1, 2015, the Board of Directors approved a significant increase of $350 million to the authorization for common stock repurchases, indicating a continued focus on shareholder value.