10-QPeriod: Q3 FY2013

AMPHENOL CORP /DE/ Quarterly Report for Q3 Ended Sep 30, 2013

Filed November 1, 2013For Securities:APH

Summary

Amphenol Corporation (APH) reported solid financial results for the third quarter and the first nine months of 2013, demonstrating revenue growth and improved profitability. For the third quarter, net sales increased by 5% year-over-year to $1.15 billion, driven by the Interconnect Products and Assemblies segment which grew 3%. The Cable Products segment saw significant growth of 28%, largely due to a 2012 acquisition. The company also experienced positive sales growth in the US, Europe, and Asia. Profitability improved with gross profit margin at 31.6% and operating income up across both segments. Net income attributable to Amphenol Corporation shareholders rose to $160.8 million, or $1.01 per diluted share, compared to $147.5 million, or $0.91 per diluted share, in the prior year. For the first nine months of 2013, net sales increased by 7% to $3.37 billion. Net income attributable to Amphenol Corporation shareholders grew to $467.8 million, or $2.88 per diluted share, up from $415.0 million, or $2.53 per diluted share, in the same period of 2012. The company generated strong operating cash flow of $557.7 million. Amphenol also executed a substantial stock repurchase program, buying back approximately $297 million worth of shares, and increased its quarterly dividend, signaling confidence in its financial health and commitment to returning value to shareholders.

Financial Highlights

50 data points
Beta

Revenue

$1.15B

31.5% Gross Margin

Net Income

$160.80M

13.9% Net Margin

EPS (Diluted)

$0.13

Total Assets

$5.64B

Cash & Equivalents

$889.37M

Free Cash Flow

$157.22M

Financial Statements
Beta
Revenue$1.15B
Cost of Revenue$789.21M
Gross Profit$363.80M
SG&A Expenses$136.83M
Operating Income$224.50M
Interest Expense$16.05M
Net Income$160.80M
EPS (Basic)$0.13
EPS (Diluted)$0.13
Shares Outstanding (Basic)1.27B
Shares Outstanding (Diluted)1.29B

Key Highlights

  • 1Net sales for Q3 2013 increased 5% to $1.15 billion; nine-month sales grew 7% to $3.37 billion.
  • 2Net income attributable to Amphenol Corporation shareholders increased to $160.8 million ($1.01/share) for Q3 2013 and $467.8 million ($2.88/share) for the nine months.
  • 3Gross profit margin remained strong at approximately 31.6% for Q3 2013.
  • 4Operating income for the Interconnect Products and Assemblies segment and Cable Products segment both showed year-over-year increases.
  • 5The company repurchased approximately $297 million of its common stock in the first nine months of 2013 under a new authorized program.
  • 6The quarterly dividend was increased to $0.20 per share, up from $0.105 per share.
  • 7Operating cash flow was robust, reaching $557.7 million for the first nine months of 2013.

Frequently Asked Questions

Amphenol reported a 5% increase in net sales for the third quarter of 2013, reaching $1.15 billion, compared to $1.10 billion in the same period of 2012. This growth was driven by increases in the commercial aerospace, automotive, industrial, and IT/data communications markets, with contributions from both organic growth and acquisitions.

Profitability improved in the third quarter of 2013. Net income attributable to Amphenol Corporation shareholders increased by approximately 9% to $160.8 million, resulting in diluted earnings per share of $1.01, up from $0.91 in the prior year's third quarter. The gross profit margin was maintained at a healthy 31.6%.

As of September 30, 2013, Amphenol maintained a strong financial position with total assets of $5.64 billion and total shareholders' equity of $2.67 billion. The company had $1.28 billion in cash, cash equivalents, and short-term investments. Operating cash flow remained strong, and the company had significant availability under its revolving credit facility, indicating robust liquidity.

Yes, Amphenol was active in capital allocation. The company repurchased approximately $297 million of its common stock during the first nine months of 2013 under a new stock repurchase program. Additionally, Amphenol increased its quarterly dividend by nearly double, from $0.105 to $0.20 per share, reflecting confidence in its ongoing financial performance.