Amphenol Reports Record Third Quarter 2024 Results
Third Quarter 2024 Highlights:
-
Record sales of
$4.04 billion , up 26% inU.S. dollars and 15% organically compared to the third quarter of 2023 -
Record GAAP Diluted EPSof
$0.48 , up 17% compared to prior year -
Record Adjusted Diluted EPSof
$0.50 , up 28% compared to prior year - GAAP and record Adjusted Operating Marginof 20.3% and 21.9%, respectively
-
Operating and Free Cash Flow of
$704 million and$476 million , respectively -
Completed previously announced acquisition of Lütze
Europe in early October
“We are pleased to have closed the third quarter of 2024 with record sales and Adjusted Diluted EPS, both exceeding the high end of our guidance,” said
The Company continues to deploy its financial strength in a variety of ways to increase shareholder value. During the quarter, the Company purchased 2.7 million shares of its common stock for
Fourth Quarter and Full Year 2024 Outlook
Assuming the continuation of current market conditions as well as constant exchange rates, for the fourth quarter of 2024,
Conference Call and Webcast Details
The Company will host a conference call to discuss its third quarter results at
A live broadcast as well as a replay of the call can be accessed through the Investor Relations section of the company’s website at https://investors.amphenol.com.
About
Non-GAAP Financial Measures
The financial statements included within this press release are prepared in accordance with accounting principles generally accepted in
Forward-Looking Statements
This press release may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are based on our management’s assumptions and beliefs about future events or circumstances using information currently available, and as a result, they are subject to risks and uncertainties. Forward-looking statements address events or developments that
There are risks and uncertainties that could cause actual results to differ materially from these forward-looking statements, which include, but are not limited to, the following: political, economic, military and other risks related to operating in countries outside
A further description of these uncertainties and other risks can be found in the Company’s Annual Report on Form 10-K for the year ended
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
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(Unaudited) |
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(dollars and shares in millions, except per share data) |
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Three Months Ended |
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Nine Months Ended |
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2024 |
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2023 |
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2024 |
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2023 |
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Net sales |
|
$ |
4,038.8 |
|
|
$ |
3,199.2 |
|
|
$ |
10,904.9 |
|
|
$ |
9,227.2 |
|
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Cost of sales (1) |
|
|
2,681.9 |
|
|
|
2,150.7 |
|
|
|
7,245.9 |
|
|
|
6,243.5 |
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|
|
|
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|
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|
|
|
|
|
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Gross profit |
|
|
1,356.9 |
|
|
|
1,048.5 |
|
|
|
3,659.0 |
|
|
|
2,983.7 |
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|
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|
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Acquisition-related expenses |
|
|
45.4 |
|
|
|
9.0 |
|
|
|
115.4 |
|
|
|
18.4 |
|
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|
|
|
|
|
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Selling, general and administrative expenses |
|
|
492.0 |
|
|
|
381.6 |
|
|
|
1,340.4 |
|
|
|
1,095.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Operating income |
|
|
819.5 |
|
|
|
657.9 |
|
|
|
2,203.2 |
|
|
|
1,869.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Interest expense |
|
|
(55.7 |
) |
|
|
(33.6 |
) |
|
|
(150.1 |
) |
|
|
(104.5 |
) |
|
Gain on bargain purchase acquisition (2) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5.4 |
|
|
Other income (expense), net |
|
|
11.2 |
|
|
|
9.2 |
|
|
|
48.5 |
|
|
|
18.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Income before income taxes |
|
|
775.0 |
|
|
|
633.5 |
|
|
|
2,101.6 |
|
|
|
1,789.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Provision for income taxes (3) |
|
|
(166.1 |
) |
|
|
(115.2 |
) |
|
|
(412.0 |
) |
|
|
(363.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net income |
|
|
608.9 |
|
|
|
518.3 |
|
|
|
1,689.6 |
|
|
|
1,426.4 |
|
|
Less: Net income attributable to noncontrolling interests |
|
|
(4.5 |
) |
|
|
(4.4 |
) |
|
|
(11.8 |
) |
|
|
(12.8 |
) |
|
|
|
|
|
|
|
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|
|
|
|
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Net income attributable to |
|
$ |
604.4 |
|
|
$ |
513.9 |
|
|
$ |
1,677.8 |
|
|
$ |
1,413.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net income attributable to |
|
$ |
0.50 |
|
|
$ |
0.43 |
|
|
$ |
1.40 |
|
|
$ |
1.19 |
|
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|
|
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Weighted average common shares outstanding — Basic |
|
|
1,204.9 |
|
|
|
1,195.4 |
|
|
|
1,202.4 |
|
|
|
1,191.8 |
|
|
|
|
|
|
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Net income attributable to |
|
$ |
0.48 |
|
|
$ |
0.41 |
|
|
$ |
1.33 |
|
|
$ |
1.14 |
|
|
|
|
|
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|
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Weighted average common shares outstanding — Diluted |
|
|
1,265.5 |
|
|
|
1,244.1 |
|
|
|
1,262.1 |
|
|
|
1,240.1 |
|
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_________________ | ||
Note 1 |
For the three and nine months ended |
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Note 2 |
Reflects the non-cash gain of |
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|
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Note 3 |
Provision for income taxes for the three months ended |
|
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|
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Provision for income taxes for the nine months ended |
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Note 4 |
Net income per share for the three months ended |
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Net income per share for the nine months ended |
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Excluding these effects and the impact of rounding, Adjusted Diluted EPS, a non-GAAP financial measure which is defined and reconciled to its most comparable GAAP financial measure in this press release, was
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Unaudited) |
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(dollars in millions) |
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2024 |
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2023 |
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ASSETS |
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Current Assets: |
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|
|
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|
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Cash and cash equivalents |
|
$ |
1,563.0 |
|
|
$ |
1,475.0 |
|
|
Short-term investments |
|
|
20.3 |
|
|
|
185.2 |
|
|
Total cash, cash equivalents and short-term investments |
|
|
1,583.3 |
|
|
|
1,660.2 |
|
|
Accounts receivable, less allowance for doubtful accounts of |
|
|
3,130.3 |
|
|
|
2,618.4 |
|
|
Inventories |
|
|
2,578.8 |
|
|
|
2,167.1 |
|
|
Prepaid expenses and other current assets |
|
|
480.4 |
|
|
|
389.6 |
|
|
|
|
|
|
|
|
|
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||
Total current assets |
|
|
7,772.8 |
|
|
|
6,835.3 |
|
|
|
|
|
|
|
|
|
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||
Property, plant and equipment, less accumulated depreciation of |
|
|
1,670.9 |
|
|
|
1,314.7 |
|
|
|
|
|
8,352.1 |
|
|
|
7,092.4 |
|
|
Other intangible assets, net |
|
|
1,247.0 |
|
|
|
834.8 |
|
|
Other long-term assets |
|
|
542.8 |
|
|
|
449.2 |
|
|
|
|
|
|
|
|
|
|
||
Total Assets |
|
$ |
19,585.6 |
|
|
$ |
16,526.4 |
|
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LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY |
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Current Liabilities: |
|
|
|
|
|
|
|
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Accounts payable |
|
$ |
1,763.0 |
|
|
$ |
1,350.9 |
|
|
Accrued salaries, wages and employee benefits |
|
|
480.2 |
|
|
|
412.8 |
|
|
Accrued income taxes |
|
|
124.4 |
|
|
|
166.0 |
|
|
Accrued dividends |
|
|
198.9 |
|
|
|
131.7 |
|
|
Other accrued expenses |
|
|
932.1 |
|
|
|
737.5 |
|
|
Current portion of long-term debt |
|
|
403.1 |
|
|
|
353.8 |
|
|
|
|
|
|
|
|
|
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Total current liabilities |
|
|
3,901.7 |
|
|
|
3,152.7 |
|
|
|
|
|
|
|
|
|
|
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Long-term debt, less current portion |
|
|
5,081.0 |
|
|
|
3,983.5 |
|
|
Accrued pension and postretirement benefit obligations |
|
|
147.4 |
|
|
|
143.0 |
|
|
Deferred income taxes |
|
|
439.7 |
|
|
|
367.0 |
|
|
Other long-term liabilities |
|
|
489.0 |
|
|
|
453.7 |
|
|
|
|
|
|
|
|
|
|
||
Total Liabilities |
|
|
10,058.8 |
|
|
|
8,099.9 |
|
|
|
|
|
|
|
|
|
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||
Redeemable noncontrolling interests |
|
|
20.7 |
|
|
|
30.7 |
|
|
|
|
|
|
|
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|
||
Equity: |
|
|
|
|
|
|
|
||
Common stock |
|
|
1.2 |
|
|
|
1.2 |
|
|
Additional paid-in capital |
|
|
3,457.6 |
|
|
|
3,100.6 |
|
|
Retained earnings |
|
|
6,750.5 |
|
|
|
5,921.1 |
|
|
|
|
|
(236.9 |
) |
|
|
(142.8 |
) |
|
Accumulated other comprehensive loss |
|
|
(519.9 |
) |
|
|
(533.6 |
) |
|
|
|
|
|
|
|
|
|
||
Total stockholders’ equity attributable to |
|
|
9,452.5 |
|
|
|
8,346.5 |
|
|
|
|
|
|
|
|
|
|
||
Noncontrolling interests |
|
|
53.6 |
|
|
|
49.3 |
|
|
|
|
|
|
|
|
|
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||
Total Equity |
|
|
9,506.1 |
|
|
|
8,395.8 |
|
|
|
|
|
|
|
|
|
|
||
Total Liabilities, Redeemable Noncontrolling Interests and Equity |
|
$ |
19,585.6 |
|
|
$ |
16,526.4 |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW |
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(Unaudited) |
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(dollars in millions) |
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|
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Three Months Ended |
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Nine Months Ended |
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|
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|
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|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
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Cash from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net income |
|
$ |
608.9 |
|
|
$ |
518.3 |
|
|
$ |
1,689.6 |
|
|
$ |
1,426.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
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Depreciation and amortization |
|
|
201.2 |
|
|
|
101.0 |
|
|
|
428.7 |
|
|
|
291.4 |
|
|
Stock-based compensation expense |
|
|
29.5 |
|
|
|
26.9 |
|
|
|
79.9 |
|
|
|
72.4 |
|
|
Deferred income tax benefit |
|
|
(14.3 |
) |
|
|
(1.7 |
) |
|
|
(33.6 |
) |
|
|
(7.1 |
) |
|
Gain on bargain purchase acquisition |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5.4 |
) |
|
Net change in components of working capital |
|
|
(127.8 |
) |
|
|
(23.5 |
) |
|
|
(197.6 |
) |
|
|
(81.2 |
) |
|
Net change in other long-term assets and liabilities |
|
|
6.5 |
|
|
|
(3.0 |
) |
|
|
0.6 |
|
|
|
(9.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net cash provided by operating activities |
|
|
704.0 |
|
|
|
618.0 |
|
|
|
1,967.6 |
|
|
|
1,686.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Cash from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
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Capital expenditures |
|
|
(230.0 |
) |
|
|
(74.7 |
) |
|
|
(465.6 |
) |
|
|
(267.8 |
) |
|
Proceeds from disposals of property, plant and equipment |
|
|
1.7 |
|
|
|
0.5 |
|
|
|
7.1 |
|
|
|
2.1 |
|
|
Purchases of investments |
|
|
(7.3 |
) |
|
|
(79.6 |
) |
|
|
(20.7 |
) |
|
|
(218.8 |
) |
|
Sales and maturities of investments |
|
|
35.9 |
|
|
|
4.0 |
|
|
|
181.7 |
|
|
|
67.8 |
|
|
Acquisitions, net of cash acquired |
|
|
— |
|
|
|
(179.4 |
) |
|
|
(2,099.8 |
) |
|
|
(292.6 |
) |
|
Other, net |
|
|
(2.8 |
) |
|
|
(0.1 |
) |
|
|
(0.9 |
) |
|
|
4.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net cash used in investing activities |
|
|
(202.5 |
) |
|
|
(329.3 |
) |
|
|
(2,398.2 |
) |
|
|
(704.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Proceeds from issuance of senior notes and other long-term debt |
|
|
— |
|
|
|
2.2 |
|
|
|
1,500.1 |
|
|
|
354.0 |
|
|
Repayments of senior notes and other long-term debt |
|
|
(1.9 |
) |
|
|
(3.2 |
) |
|
|
(353.7 |
) |
|
|
(10.3 |
) |
|
(Repayments) borrowings under commercial paper programs, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(632.6 |
) |
|
Payment of costs related to debt financing |
|
|
— |
|
|
|
— |
|
|
|
(14.7 |
) |
|
|
(2.3 |
) |
|
Payment of deferred purchase price related to acquisitions |
|
|
— |
|
|
|
(1.5 |
) |
|
|
— |
|
|
|
(1.5 |
) |
|
Purchase of treasury stock |
|
|
(176.2 |
) |
|
|
(149.3 |
) |
|
|
(520.4 |
) |
|
|
(469.8 |
) |
|
Proceeds from exercise of stock options |
|
|
85.6 |
|
|
|
160.0 |
|
|
|
320.3 |
|
|
|
323.1 |
|
|
Distributions to and purchases of noncontrolling interests |
|
|
(3.3 |
) |
|
|
(1.4 |
) |
|
|
(20.8 |
) |
|
|
(8.0 |
) |
|
Dividend payments |
|
|
(132.4 |
) |
|
|
(125.1 |
) |
|
|
(396.2 |
) |
|
|
(375.0 |
) |
|
Other, net |
|
|
0.6 |
|
|
|
— |
|
|
|
1.2 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net cash (used in) provided by financing activities |
|
|
(227.6 |
) |
|
|
(118.3 |
) |
|
|
515.8 |
|
|
|
(822.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents |
|
|
36.6 |
|
|
|
(14.0 |
) |
|
|
2.8 |
|
|
|
(51.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net increase in cash and cash equivalents |
|
|
310.5 |
|
|
|
156.4 |
|
|
|
88.0 |
|
|
|
108.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents balance, beginning of period |
|
|
1,252.5 |
|
|
|
1,325.1 |
|
|
|
1,475.0 |
|
|
|
1,373.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents balance, end of period |
|
$ |
1,563.0 |
|
|
$ |
1,481.5 |
|
|
$ |
1,563.0 |
|
|
$ |
1,481.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash paid for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest |
|
$ |
41.4 |
|
|
$ |
28.8 |
|
|
$ |
112.6 |
|
|
$ |
89.1 |
|
|
Income taxes, net |
|
|
156.8 |
|
|
|
99.4 |
|
|
|
516.0 |
|
|
|
423.8 |
|
|
|
|||||||||||||||||
SEGMENT INFORMATION |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
(dollars in millions) |
|||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
||||||||
Net sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Harsh Environment Solutions |
|
$ |
1,193.5 |
|
|
$ |
887.3 |
|
|
$ |
3,155.5 |
|
|
$ |
2,630.4 |
|
|
Communications Solutions |
|
|
1,685.5 |
|
|
|
1,279.2 |
|
|
|
4,395.8 |
|
|
|
3,567.6 |
|
|
Interconnect and Sensor Systems |
|
|
1,159.8 |
|
|
|
1,032.7 |
|
|
|
3,353.6 |
|
|
|
3,029.2 |
|
|
Consolidated Net sales |
|
$ |
4,038.8 |
|
|
$ |
3,199.2 |
|
|
$ |
10,904.9 |
|
|
$ |
9,227.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Harsh Environment Solutions |
|
$ |
283.7 |
|
|
$ |
239.1 |
|
|
$ |
787.8 |
|
|
$ |
705.7 |
|
|
Communications Solutions |
|
|
431.0 |
|
|
|
283.3 |
|
|
|
1,067.7 |
|
|
|
752.4 |
|
|
Interconnect and Sensor Systems |
|
|
217.6 |
|
|
|
188.9 |
|
|
|
616.3 |
|
|
|
553.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Stock-based compensation expense |
|
|
(29.5 |
) |
|
|
(26.9 |
) |
|
|
(79.9 |
) |
|
|
(72.4 |
) |
|
Amortization of acquisition-related inventory step-up costs |
|
|
(18.2 |
) |
|
|
— |
|
|
|
(18.2 |
) |
|
|
— |
|
|
Acquisition-related expenses |
|
|
(45.4 |
) |
|
|
(9.0 |
) |
|
|
(115.4 |
) |
|
|
(18.4 |
) |
|
Other operating expenses |
|
|
(19.7 |
) |
|
|
(17.5 |
) |
|
|
(55.1 |
) |
|
|
(51.3 |
) |
|
Consolidated Operating income |
|
$ |
819.5 |
|
|
$ |
657.9 |
|
|
$ |
2,203.2 |
|
|
$ |
1,869.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating margin (%): |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Harsh Environment Solutions |
|
|
23.8 |
% |
|
|
26.9 |
% |
|
|
25.0 |
% |
|
|
26.8 |
% |
|
Communications Solutions |
|
|
25.6 |
% |
|
|
22.1 |
% |
|
|
24.3 |
% |
|
|
21.1 |
% |
|
Interconnect and Sensor Systems |
|
|
18.8 |
% |
|
|
18.3 |
% |
|
|
18.4 |
% |
|
|
18.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Stock-based compensation expense |
|
|
-0.7 |
% |
|
|
-0.8 |
% |
|
|
-0.7 |
% |
|
|
-0.8 |
% |
|
Amortization of acquisition-related inventory step-up costs |
|
|
-0.5 |
% |
|
|
0.0 |
% |
|
|
-0.2 |
% |
|
|
0.0 |
% |
|
Acquisition-related expenses |
|
|
-1.1 |
% |
|
|
-0.3 |
% |
|
|
-1.1 |
% |
|
|
-0.2 |
% |
|
Other operating expenses |
|
|
-0.5 |
% |
|
|
-0.5 |
% |
|
|
-0.5 |
% |
|
|
-0.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Consolidated Operating margin (%) |
|
|
20.3 |
% |
|
|
20.6 |
% |
|
|
20.2 |
% |
|
|
20.3 |
% |
|
|
SUPPLEMENTAL FINANCIAL INFORMATION |
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES |
(Unaudited) |
(dollars in millions, except per share data) |
|
Management utilizes the non-GAAP financial measures defined below as part of its internal reviews for purposes of monitoring, evaluating and forecasting the Company’s financial performance, communicating operating results to the Company’s Board of Directors and assessing related employee compensation measures. Management believes that such non-GAAP financial measures may be helpful to investors in assessing the Company’s overall financial performance, trends and period-over-period comparative results. Non-GAAP financial measures related to net sales exclude the impact of foreign currency exchange rates and acquisitions. Non-GAAP financial measures related to operating income, operating margin, net income attributable to |
|
The following are reconciliations of non-GAAP financial measures to the most directly comparable |
|
|
|
|
|
|
|
|
|
|
Percentage Growth (relative to same prior year period) (1) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
Net sales |
|
Foreign |
|
Constant |
|
|
|
Organic |
|||||||||
|
|
|
|
growth in |
|
currency |
|
Currency Net |
|
Acquisition |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
impact (3) |
|
Sales Growth (5) |
|
impact (4) |
|
Growth (5) |
|||||
Three Months Ended |
|
2024 |
|
2023 |
|
(GAAP) |
|
(non-GAAP) |
|
(non-GAAP) |
|
(non-GAAP) |
|
(non-GAAP) |
|||||||
Net sales by segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harsh Environment Solutions |
|
$ |
1,193.5 |
|
$ |
887.3 |
|
35 |
% |
|
— |
% |
|
34 |
% |
|
31 |
% |
|
3 |
% |
Communications Solutions |
|
|
1,685.5 |
|
|
1,279.2 |
|
32 |
% |
|
— |
% |
|
32 |
% |
|
1 |
% |
|
30 |
% |
Interconnect and Sensor Systems |
|
|
1,159.8 |
|
|
1,032.7 |
|
12 |
% |
|
1 |
% |
|
12 |
% |
|
6 |
% |
|
6 |
% |
Consolidated |
|
$ |
4,038.8 |
|
$ |
3,199.2 |
|
26 |
% |
|
— |
% |
|
26 |
% |
|
11 |
% |
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net sales by segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harsh Environment Solutions |
|
$ |
3,155.5 |
|
$ |
2,630.4 |
|
20 |
% |
|
— |
% |
|
20 |
% |
|
18 |
% |
|
2 |
% |
Communications Solutions |
|
|
4,395.8 |
|
|
3,567.6 |
|
23 |
% |
|
(1) |
% |
|
24 |
% |
|
2 |
% |
|
22 |
% |
Interconnect and Sensor Systems |
|
|
3,353.6 |
|
|
3,029.2 |
|
11 |
% |
|
— |
% |
|
11 |
% |
|
6 |
% |
|
5 |
% |
Consolidated |
|
$ |
10,904.9 |
|
$ |
9,227.2 |
|
18 |
% |
|
— |
% |
|
19 |
% |
|
8 |
% |
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_________________ | ||
(1) |
Percentages in this table were calculated using actual, unrounded results; therefore, the sum of the components may not add due to rounding. |
|
|
|
|
(2) |
Net sales growth in |
|
|
|
|
(3) |
Foreign currency translation impact, a non-GAAP measure, represents the percentage impact on net sales resulting from foreign currency exchange rate changes in the current reporting period(s) compared to the same respective period(s) in the prior year. Such amount is calculated by subtracting net sales for the current reporting period(s) translated at average foreign currency exchange rates for the respective prior year period(s) from net sales for the current reporting period(s), taken as a percentage of the respective prior year period(s) net sales. |
|
|
|
|
(4) |
Acquisition impact, a non-GAAP measure, represents the percentage impact on net sales resulting from acquisitions that have not been included in the Company’s consolidated results for the full current period(s) and/or prior comparable period(s) presented. Such net sales related to these acquisitions do not reflect the underlying growth of the Company on a comparative basis. Acquisition impact is calculated as a percentage of the respective prior year period(s) net sales. |
|
|
|
|
(5) |
The following are definitions of certain non-GAAP financial measures presented in the table(s) above, which may be referred to within this press release. For purposes of this press release, the terms “constant currencies” and “organically” have the same meaning as the following non-GAAP financial measures, respectively: |
|
|
||
Constant Currency Net Sales Growth is defined as the period-over-period percentage change in net sales growth, excluding the impact of changes in foreign currency exchange rates. The Company’s results are subject to volatility related to foreign currency translation fluctuations. As such, management evaluates the Company’s sales performance based on actual sales growth in |
||
|
||
Organic Net Sales Growth is defined as the period-over-period percentage change in net sales growth resulting from operating volume and pricing changes and excludes (i) the foreign currency translation impact, which is outside the control of the Company, and (ii) the acquisition impact, both as described above and which do not reflect the underlying growth of the Company on a comparative basis. Management evaluates the Company’s sales performance based on actual sales growth in |
|
||||||||||||||||||||||||||||||||||
SUPPLEMENTAL FINANCIAL INFORMATION |
||||||||||||||||||||||||||||||||||
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued) |
||||||||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||||||||
(dollars in millions, except per share data) |
||||||||||||||||||||||||||||||||||
OPERATING RESULTS |
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Three Months Ended |
||||||||||||||||||||||||||||||||
|
|
2024 |
|
2023 |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
Net Income |
|
|
|
|
|
|
|
|
Net Income |
|
|
|
||||||||||||||||
|
|
|
|
|
|
attributable to |
|
Effective |
|
|
|
|
|
|
attributable to |
|
Effective |
|
||||||||||||||||
|
|
Operating |
|
Operating |
|
|
Tax |
Diluted |
|
Operating |
|
Operating |
|
|
Tax |
Diluted |
||||||||||||||||||
|
|
Income |
|
Margin (i) |
Corporation |
|
Rate (i) |
EPS |
|
Income |
|
Margin (i) |
Corporation |
|
Rate (i) |
EPS |
||||||||||||||||||
Reported (GAAP) |
|
$ |
819.5 |
|
20.3 |
% |
$ |
604.4 |
|
|
21.4 |
% |
$ |
0.48 |
|
|
$ |
657.9 |
|
20.6 |
% |
$ |
513.9 |
|
|
18.2 |
% |
$ |
0.41 |
|
||||
Amortization of acquisition-related inventory step-up costs (ii) |
|
|
18.2 |
|
0.5 |
|
|
14.0 |
|
|
— |
|
|
0.01 |
|
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Acquisition-related expenses |
|
|
45.4 |
|
1.1 |
|
|
35.8 |
|
|
(0.2 |
) |
|
0.03 |
|
|
|
9.0 |
|
0.3 |
|
|
8.4 |
|
|
(0.2 |
) |
|
0.01 |
|
||||
Excess tax benefits related to stock-based compensation |
|
|
— |
|
— |
|
|
(21.4 |
) |
|
2.8 |
|
|
(0.02 |
) |
|
|
— |
|
— |
|
|
(38.3 |
) |
|
6.0 |
|
|
(0.03 |
) |
||||
Adjusted (non-GAAP) (iii) (iv) |
|
$ |
883.1 |
|
21.9 |
% |
$ |
632.8 |
|
|
24.0 |
% |
$ |
0.50 |
|
|
$ |
666.9 |
|
20.8 |
% |
$ |
484.0 |
|
|
24.0 |
% |
$ |
0.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Nine Months Ended |
||||||||||||||||||||||||||||||||
|
|
2024 |
|
2023 |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
Net Income |
|
|
|
|
|
|
|
|
Net Income |
|
|
|
||||||||||||||||
|
|
|
|
|
|
attributable to |
|
Effective |
|
|
|
|
|
|
attributable to |
|
Effective |
|
||||||||||||||||
|
|
Operating |
|
Operating |
|
|
Tax |
Diluted |
|
Operating |
|
Operating |
|
|
Tax |
Diluted |
||||||||||||||||||
|
Income |
|
Margin (i) |
Corporation |
|
Rate (i) |
EPS |
|
Income |
|
Margin (i) |
Corporation |
|
Rate (i) |
EPS |
|||||||||||||||||||
Reported (GAAP) |
|
$ |
2,203.2 |
|
20.2 |
% |
$ |
1,677.8 |
|
|
19.6 |
% |
$ |
1.33 |
|
|
$ |
1,869.6 |
|
20.3 |
% |
$ |
1,413.6 |
|
|
20.3 |
% |
$ |
1.14 |
|
||||
Amortization of acquisition-related inventory step-up costs (ii) |
|
|
18.2 |
|
0.2 |
|
|
14.0 |
|
|
— |
|
|
0.01 |
|
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Acquisition-related expenses |
|
|
115.4 |
|
1.1 |
|
|
95.7 |
|
|
(0.4 |
) |
|
0.08 |
|
|
|
18.4 |
|
0.2 |
|
|
16.2 |
|
|
(0.1 |
) |
|
0.01 |
|
||||
Gain on bargain purchase acquisition |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
— |
|
|
(5.4 |
) |
|
0.1 |
|
|
— |
|
||||
Excess tax benefits related to stock-based compensation |
|
|
— |
|
— |
|
|
(82.0 |
) |
|
3.9 |
|
|
(0.06 |
) |
|
|
— |
|
— |
|
|
(67.3 |
) |
|
3.8 |
|
|
(0.05 |
) |
||||
Discrete tax items |
|
|
— |
|
— |
|
|
(18.6 |
) |
|
0.9 |
|
|
(0.01 |
) |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Adjusted (non-GAAP) (iii) (iv) |
|
$ |
2,336.8 |
|
21.4 |
% |
$ |
1,686.9 |
|
|
24.0 |
% |
$ |
1.34 |
|
|
$ |
1,888.0 |
|
20.5 |
% |
$ |
1,357.1 |
|
|
24.0 |
% |
$ |
1.09 |
|
FREE CASH FLOW |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Operating Cash Flow (GAAP) |
|
$ |
704.0 |
|
|
$ |
618.0 |
|
|
$ |
1,967.6 |
|
|
$ |
1,686.9 |
|
Capital expenditures (GAAP) |
|
|
(230.0 |
) |
|
|
(74.7 |
) |
|
|
(465.6 |
) |
|
|
(267.8 |
) |
Proceeds from disposals of property, plant and equipment (GAAP) |
|
|
1.7 |
|
|
|
0.5 |
|
|
|
7.1 |
|
|
|
2.1 |
|
Free Cash Flow (non-GAAP) (iv) |
|
$ |
475.7 |
|
|
$ |
543.8 |
|
|
$ |
1,509.1 |
|
|
$ |
1,421.2 |
|
_________________ | ||
(i) |
While the terms “operating margin” and “effective tax rate” are not considered |
|
|
|
|
(ii) |
Amortization of acquisition-related inventory step-up costs, which is reported within Cost of sales in the Condensed Consolidated Statements of Income. |
|
|
|
|
(iii) |
All percentages and per share amounts in this table were calculated using actual, unrounded results; therefore, the sum of the components may not add due to rounding. |
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|
|
|
(iv) |
The following are definitions of non-GAAP financial measures presented in the tables above, which may be referred to within this press release: |
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Adjusted Operating Income is defined as Operating income (as reported in the Condensed Consolidated Statements of Income), excluding income and expenses that are not directly related to the Company’s operating performance during the periods presented. |
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||
Adjusted Operating Margin is defined as Adjusted Operating Income (as defined above) expressed as a percentage of Net sales (as reported in the Condensed Consolidated Statements of Income). |
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Adjusted Net Income attributable to |
||
|
||
Adjusted Effective Tax Rate is defined as Provision for income taxes (as reported in the Condensed Consolidated Statements of Income) expressed as a percentage of Income before income taxes (as reported in the Condensed Consolidated Statements of Income), each excluding income and expenses and their specific tax effects that are not directly related to the Company’s operating performance during the periods presented. |
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Adjusted Diluted EPS is defined as diluted earnings per share (as reported in accordance with |
||
|
||
Free Cash Flow is defined as (i) Net cash provided by operating activities (“Operating Cash Flow” - as reported in accordance with |
|
SUPPLEMENTAL FINANCIAL INFORMATION |
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES - GUIDANCE |
(Unaudited) |
(dollars in millions, except per share data) |
|
|
Management utilizes the non-GAAP financial measures defined earlier as part of its internal reviews for purposes of monitoring, evaluating and forecasting the Company’s financial performance, communicating operating results to the Company’s Board of Directors and assessing related employee compensation measures. Management believes that such non-GAAP financial measures may be helpful to investors in assessing the Company’s overall financial performance, trends and period-over-period comparative results. Adjusted Diluted EPS, a non-GAAP financial measure, excludes income and expenses that are not directly related to the Company’s operating performance during the periods presented. Items excluded from such non-GAAP financial measures in any period may consist of, without limitation, acquisition-related expenses, refinancing-related costs, gains associated with bargain purchase acquisitions, and certain discrete tax items including, but not limited to, (i) the excess tax benefits related to stock-based compensation and (ii) the impact of significant changes in tax law. Adjusted Diluted EPS is not necessarily the same or comparable to similar measures presented by other companies as such measures may be calculated differently or may exclude different items. Such non-GAAP financial measures should be read in conjunction with the Company’s financial statements presented in accordance with |
|
The following are reconciliations of current guidance for GAAP Diluted earnings per share (Diluted EPS) to Adjusted Diluted EPS (non-GAAP) for both the fourth quarter and the full year 2024: |
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|
GUIDANCE (1) |
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|
|
FOURTH QUARTER 2024 |
|
FULL YEAR 2024 |
|
|
|
|
|
Diluted EPS (GAAP) |
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related inventory step-up costs |
|
- |
|
|
|
|
|
|
|
Acquisition-related costs, net of tax |
|
- |
|
|
|
|
|
|
|
Excess tax benefits related to stock-based compensation |
|
- |
|
( |
|
|
|
|
|
Discrete tax items |
|
- |
|
( |
|
|
|
|
|
Adjusted Diluted EPS (non-GAAP) (2) |
|
|
|
|
(1) |
Forward-looking Adjusted Diluted EPS reflected in our guidance excludes certain income and expenses, described above, that are not directly related to the Company’s operating performance. Such items are excluded from our guidance for the forward-looking periods only to the extent that such items have either (i) already been reflected in periods reported and are therefore included in the forward-looking full-year period or (ii) the Company reasonably expects to record such items in the forward-looking periods presented and such amounts are estimable. As the Company has not yet identified any such items for the forward-looking period presented, there are currently no reconciling items for the three months ended |
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|
|
|
(2) |
Per share amounts in this table were calculated using actual, unrounded results; therefore, the sum of the components may not add due to rounding. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241023139704/en/
Vice President, Strategy and Investor Relations
203-265-8820
IR@amphenol.com
Source: