10-QPeriod: Q1 FY2013

AMPHENOL CORP /DE/ Quarterly Report for Q1 Ended Mar 31, 2013

Filed May 3, 2013For Securities:APH

Summary

Amphenol Corporation (APH) reported a solid first quarter in 2013, demonstrating robust sales growth and improved profitability. Net sales increased by 10% year-over-year to $1,079.8 million, driven by strong performance in the Interconnect Products and Assemblies segment, which benefited from growth in mobile devices, commercial aerospace, and industrial markets. The Cable Products segment also saw a significant increase in sales, primarily in the broadband market, boosted by a recent acquisition. Profitability metrics showed improvement, with operating income rising to $207.0 million and net income attributable to Amphenol Corporation reaching $153.0 million. Diluted earnings per share increased to $0.94 from $0.77 in the prior year quarter. The company also managed its working capital effectively, with a slight increase in operating cash flow to $180.3 million. Amphenol continues to actively manage its capital structure, including a recently authorized stock repurchase program and maintaining compliance with its credit facility covenants, positioning it well for continued operational and financial strength.

Financial Highlights

49 data points
Beta

Revenue

$1.08B

31.3% Gross Margin

Net Income

$153.00M

14.2% Net Margin

EPS (Diluted)

$0.12

Total Assets

$5.21B

Cash & Equivalents

$734.99M

Free Cash Flow

$150.57M

Financial Statements
Beta
Revenue$1.08B
Cost of Revenue$741.91M
Gross Profit$337.90M
SG&A Expenses$130.94M
Operating Income$207.00M
Interest Expense$15.46M
Net Income$153.00M
EPS (Basic)$0.12
EPS (Diluted)$0.12
Shares Outstanding (Basic)1.28B
Shares Outstanding (Diluted)1.30B

Key Highlights

  • 1Net sales increased 10% year-over-year to $1,079.8 million.
  • 2Operating income grew to $207.0 million from $185.3 million in the prior year period.
  • 3Net income attributable to Amphenol Corporation rose to $153.0 million, a significant increase from $126.6 million in Q1 2012.
  • 4Diluted earnings per share (EPS) improved to $0.94, up from $0.77 in the comparable period last year.
  • 5Cash flow from operating activities increased to $180.3 million, indicating strong operational cash generation.
  • 6The company repurchased approximately $85.3 million of its common stock in Q1 2013 under a new stock repurchase program authorized in January 2013.
  • 7Amphenol reported strong compliance with financial covenants under its $1,000 million unsecured credit facility.

Frequently Asked Questions

Amphenol's sales growth was primarily driven by its Interconnect Products and Assemblies segment, which experienced increases across most served markets, notably mobile devices, commercial aerospace, and industrial applications. The Cable Products segment also contributed positively, largely due to a 2012 acquisition and growth in the broadband market.

Amphenol's profitability saw significant improvement. Gross profit margin was stable at around 31.3-31.5%. Operating income increased to $207.0 million, and net income attributable to Amphenol Corporation grew substantially to $153.0 million. This translated into higher diluted earnings per share of $0.94, up from $0.77 in the prior year quarter.

Amphenol maintains a strong liquidity position, with cash and cash equivalents totaling $735.0 million at the end of Q1 2013. The company has a $1,000 million unsecured credit facility with significant availability and is in compliance with its covenants. Long-term debt stood at $1,596.1 million. Amphenol is actively managing its debt, utilizing its credit facilities and also engaging in share repurchases, funded by operating cash flow and stock option exercises.

While Amphenol is involved in several legal actions and environmental matters arising from normal business activities, management believes these are not expected to have a material adverse effect on the company's financial condition, results of operations, or cash flows. Specifically, ongoing environmental remediation at certain sites is being reimbursed by Honeywell under an agreement from a 1987 acquisition.