First Quarter 2024 Highlights:
- Sales of $3.26 billion, up 9% in U.S. dollars and 6%
organically compared to the first quarter of 2023
- GAAP Diluted EPS of $0.87, up 23% compared to prior year
- Adjusted Diluted EPS of $0.80, up 16% compared to prior
year
- GAAP and Adjusted Operating Margin of 21.0%
- Operating and Free Cash Flow of $599 million and $506 million,
respectively
- Announces a new three-year, $2 billion open market stock
repurchase program
Amphenol Corporation (NYSE: APH) today reported first quarter
2024 results. In addition, the Company is announcing a new
three-year, $2 billion stock repurchase program.
“We are pleased to have closed the first quarter of 2024 with
sales and Adjusted Diluted EPS both exceeding the high end of our
guidance,” said Amphenol President and Chief Executive Officer, R.
Adam Norwitt. “Sales increased from prior year by 9%, driven by
growth in the IT datacom, commercial air, automotive and defense
markets as well as contributions from the Company’s acquisition
program, partially offset by moderations in the mobile networks,
broadband and industrial markets. During the quarter, we again
realized strong profitability with Adjusted Operating Margin of
21.0%, a first-quarter record. We are very proud of the Company’s
outstanding performance during the quarter.”
During the first quarter of 2024, Amphenol continued to deploy
its financial strength in a variety of ways to increase shareholder
value. During the quarter, the Company purchased 1.4 million shares
of its common stock for $154 million and paid dividends of $132
million, resulting in total capital returned to shareholders of
$286 million.
New Stock Repurchase Program
In April 2024, the Company purchased the remaining authorized
amount of common stock under the existing three-year, $2 billion
stock repurchase plan. On April 23, 2024, the Company’s Board of
Directors approved a new three-year, $2 billion open market stock
repurchase plan.
Second Quarter 2024 Outlook
The current economic environment remains uncertain. Assuming the
continuation of current market conditions as well as constant
exchange rates, for the second quarter of 2024, Amphenol expects
sales to be in the range of $3.24 billion to $3.30 billion. This
represents a 6% to 8% increase over the prior year quarter.
Adjusted Diluted EPS is expected to be in the range of $0.79 to
$0.81, representing a 10% to 13% increase from the second quarter
of 2023.
Mr. Norwitt continued, “I am pleased with the Company’s first
quarter 2024 results. The revolution in electronics continues to
accelerate, with new innovations creating exciting growth
opportunities for Amphenol across each of our diversified end
markets. In turn, we have expanded our range of high-technology
interconnect products, both through our organic innovation efforts
as well as through our successful acquisition program. This
expanded technology position coupled with our unique
entrepreneurial culture has strengthened our competitive advantage.
Our ongoing drive to leverage that competitive advantage and
thereby create sustained financial strength has established an
excellent base for the Company’s future performance. I am confident
in the ability of our outstanding and growing entrepreneurial
management team to continue to dynamically adjust to changing
market conditions, to capitalize on the wide array of growth
opportunities that arise in all market cycles and to continue to
generate sustainable long-term value for our shareholders and other
stakeholders.”
Conference Call and Webcast Details
The Company will host a conference call to discuss its first
quarter results at 1:00 PM (EDT) on Wednesday, April 24, 2024. The
toll-free dial-in number is 888-455-0949; International dial-in
number is +1-773-799-3973; Passcode: LAMPO. A replay of the call
will be available until 11:59 PM (EDT) on Friday, May 24, 2024. The
replay numbers are toll free 888-282-0035; International toll
number +1-203-369-3602; Passcode: 7183.
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 Amphenol
Amphenol Corporation is one of the world’s largest designers,
manufacturers and marketers of electrical, electronic and fiber
optic connectors and interconnect systems, antennas, sensors and
sensor-based products and coaxial and high-speed specialty cable.
Amphenol designs, manufactures and assembles its products at
facilities in approximately 40 countries around the world and sells
its products through its own global sales force, independent
representatives and a global network of electronics distributors.
Amphenol has a diversified presence as a leader in high-growth
areas of the interconnect market including: Automotive, Broadband
Communications, Commercial Aerospace, Defense, Industrial,
Information Technology and Data Communications, Mobile Devices and
Mobile Networks. For more information, visit www.amphenol.com.
Non-GAAP Financial Measures
The financial statements included within this press release are
prepared in accordance with accounting principles generally
accepted in the United States of America (“GAAP” or “U.S. GAAP”).
This press release also contains certain non-GAAP financial
measures, including Adjusted Operating Income, Adjusted Operating
Margin, Adjusted Net Income attributable to Amphenol Corporation,
Adjusted Effective Tax Rate, Adjusted Diluted EPS, Organic Net
Sales Growth, and Free Cash Flow (collectively, “non-GAAP financial
measures”), which are intended to supplement the reported GAAP
results. Management utilizes these non-GAAP financial measures 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 operating income, operating margin, net income
attributable to Amphenol Corporation, effective tax rate and
diluted EPS exclude income and expenses that are not directly
related to the Company’s operating performance during the periods
presented. Items excluded in the presentation of these non-GAAP
financial measures in any period may consist of, without
limitation, acquisition-related expenses, refinancing-related
costs, 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. Non-GAAP
financial measures related to net sales exclude the impact related
to foreign currency exchange and acquisitions. Reconciliations of
non-GAAP financial measures to the most directly comparable GAAP
financial measures are included at the end of this press release.
However, such non-GAAP financial measures are included for
supplemental purposes only and should not be considered in
isolation or as a substitute for or superior to the related U.S.
GAAP financial measures. In addition, these non-GAAP financial
measures are 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. The non-GAAP
financial measures are defined within the “Supplemental Financial
Information” table at the end of this press release and should be
read in conjunction with the Company’s financial statements
presented in accordance with U.S. GAAP.
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
Amphenol Corporation expects or believes may or will occur in the
future. These forward-looking statements, which address the
Company’s expected business and financial performance and financial
condition, among other matters, may contain words and terms such
as: “anticipate,” “believe,” “continue,” “could,” “estimate,”
“expect,” “forecast,” “guidance,” “intend,” “look ahead,” “may,”
“ongoing,” “optimistic,” “plan,” “potential,” “predict,” “project,”
“seek,” “should,” “target,” “will” or “would” and other words and
terms of similar meaning. Forward-looking statements by their
nature address matters that are, to different degrees, uncertain,
such as statements about expected earnings, revenues, growth,
liquidity, effective tax rate, interest rates or other matters.
Although the Company believes the expectations reflected in all
forward-looking statements, including those we may make regarding
second quarter 2024 sales and Adjusted Diluted EPS, among other
matters, are based upon reasonable assumptions, the expectations
may not be attained or there may be material deviation. Readers and
investors are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date on
which they are made.
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 the United States, as well as changes in general
economic conditions, geopolitical conditions, U.S. trade policies
(including, but not limited to, sanctions) and other factors beyond
the Company’s control; uncertainties associated with an economic
slowdown or recession in any of the Company’s end markets that
could negatively affect the financial condition of our customers
and could result in reduced demand; risks and impacts associated
with adverse public health developments, including epidemics and
pandemics; risks associated with our inability to obtain certain
raw materials and components, as well as the increasing cost of
certain of the Company’s raw materials and components;
cybersecurity threats and techniques used to disrupt operations and
gain unauthorized access to our information technology systems,
including, but not limited to, malware, social
engineering/phishing, credential harvesting, ransomware,
malfeasance by insiders, human or technological error and other
increasingly sophisticated attacks, that continue to expand and
evolve, including through the use of artificial intelligence and
machine learning, which could, among other things, impair our
information technology systems and disrupt business operations,
result in reputational damage that may cause the loss of existing
or future customers, loss of our intellectual property, the loss of
or inability to access confidential information and critical
business, financial or other data, and/or cause the release of
highly sensitive confidential information, and potentially lead to
litigation and/or governmental investigations, fines and other
penalties, among other risks, and risks and impacts associated with
a demanding and evolving regulatory environment surrounding
information security and privacy, including additional costs;
negative impacts caused by extreme weather conditions and natural
catastrophic events, including those caused or intensified by
climate change and global warming; risks associated with the
increasing scrutiny and expectations regarding environmental,
social and corporate governance matters that could result in
additional costs or risks or otherwise adversely impact our
business; risks associated with the improper conduct by any of our
employees, customers, suppliers, distributors or any other business
partners which could impair our business reputation and financial
results and could result in our non-compliance with anti-corruption
laws and regulations of the U.S. government and various foreign
jurisdictions; changes in exchange rates of the various currencies
in which the Company conducts business; the risks associated with
the Company’s dependence on attracting, recruiting, hiring and
retaining skilled employees, including as part of our various
management teams; risks and difficulties in trying to compete
successfully on the basis of technology innovation, product quality
and performance, price, customer service and delivery time; the
Company’s dependence on end market dynamics to sell its products,
particularly in the communications, automotive and defense end
markets, pricing pressures resulting from large customers that
regularly exert pressure on their suppliers, including the Company,
and changes in defense expenditures of the U.S. and non-U.S.
governments, which are subject to political and budgetary
fluctuations and constraints, all of which could adversely affect
its operating results; difficulties and unanticipated expenses in
connection with purchasing and integrating newly acquired
businesses, including the potential for the impairment of goodwill
and other intangible assets; events beyond the Company’s control
that could lead to an inability to meet its financial and other
covenants and requirements, which could result in a default under
the Company’s revolving credit facility or any of our various
senior notes; risks associated with the Company’s inability to
access the global capital markets on favorable terms, including as
a result of significant deterioration of general economic or
capital market conditions, or as a result of a downgrade in the
Company’s credit rating; changes in interest rates; government
contracting risks that the Company may be subject to, including
laws and regulations governing reporting obligations, performance
of government contracts and related risks associated with
conducting business with the U.S. and other foreign governments or
their suppliers (both directly and indirectly); governmental export
and import controls as well as sanctions and trade embargoes that
certain of our products may be subject to, including export
licensing, customs regulations, economic sanctions and other laws;
changes in fiscal and tax policies, audits and examinations by
taxing authorities, laws, regulations and guidance in the United
States and foreign jurisdictions and any other regulatory and other
legal changes that may arise in any of the jurisdictions in which
we operate; any difficulties in enforcing and protecting the
Company’s intellectual property rights; litigation, customer
claims, voluntary or forced product recalls, governmental
investigations, criminal liability or environmental matters
including changes to laws and regulations to which the Company may
be subject; and incremental costs, risks and regulations associated
with efforts to combat the negative effects of climate change.
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 December 31, 2023, Quarterly Reports on Form 10-Q and the
Company’s other reports filed with the Securities and Exchange
Commission. These or other uncertainties not identified in these
documents (that we either currently do not expect to have an
adverse effect on our business or that we are unable to predict or
identify at this time) may cause the Company’s actual future
results to be materially different from those expressed in any
forward-looking statements. The Company undertakes no obligation to
update or revise any forward-looking statements except as required
by law.
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(Unaudited)
(dollars and shares in
millions, except per share data)
Three Months Ended
March 31,
2024
2023
Net sales
$
3,256.3
$
2,974.0
Cost of sales
2,167.3
2,030.6
Gross profit
1,089.0
943.4
Acquisition-related expenses
—
5.4
Selling, general and administrative
expenses
404.2
346.3
Operating income
684.8
591.7
Interest expense
(38.1)
(35.9)
Other income (expense), net
16.0
4.1
Income before income taxes
662.7
559.9
Provision for income taxes (1)
(110.7)
(117.2)
Net income
552.0
442.7
Less: Net income attributable to
noncontrolling interests
(3.3)
(3.5)
Net income attributable to Amphenol
Corporation
$
548.7
$
439.2
Net income attributable to Amphenol
Corporation per common share — Basic
$
0.91
$
0.74
Weighted average common shares outstanding
— Basic
600.0
595.1
Net income attributable to Amphenol
Corporation per common share — Diluted (2)
$
0.87
$
0.71
Weighted average common shares outstanding
— Diluted
627.9
619.9
_____________________________
Note 1
Provision for income taxes for the three months ended March 31,
2024 and 2023 includes excess tax benefits related to stock-based
compensation of $29.7 million ($0.05 per share) and $17.1 million
($0.03 per share), respectively. Provision for income taxes for the
three months ended March 31, 2024 also includes a discrete tax
benefit of $18.6 million ($0.03 per share) related to the
settlement of tax audits and associated lapses of statutes of
limitation, along with a difference in a non-U.S. tax filing
position.
Note 2
Net income per share for the three months ended March 31, 2024 and
2023 includes the excess tax benefits related to stock-based
compensation discussed in Note 1. Net income per share for the
three months ended March 31, 2024 also includes the discrete tax
benefit discussed in Note 1. Net income per share for the three
months ended March 31, 2023 also included acquisition-related
expenses of $5.4 million ($4.0 million after-tax, or $0.01 per
share), comprised of the amortization related to the value
associated with acquired backlog resulting from an acquisition that
closed in the first quarter of 2023.
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 $0.80 and $0.69 for the three
months ended March 31, 2024 and 2023, respectively.
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(dollars in millions)
March 31,
December 31,
2024
2023
ASSETS
Current Assets:
Cash and cash equivalents
$
1,857.1
$
1,475.0
Short-term investments
106.4
185.2
Total cash, cash equivalents and
short-term investments
1,963.5
1,660.2
Accounts receivable, less allowance for
doubtful accounts of $68.0 and $68.4, respectively
2,501.4
2,618.4
Inventories
2,152.9
2,167.1
Prepaid expenses and other current
assets
423.9
389.6
Total current assets
7,041.7
6,835.3
Property, plant and equipment, less
accumulated depreciation of $2,304.1 and $2,261.8, respectively
1,311.6
1,314.7
Goodwill
7,100.5
7,092.4
Other intangible assets, net
785.4
834.8
Other long-term assets
483.3
449.2
Total Assets
$
16,722.5
$
16,526.4
LIABILITIES, REDEEMABLE NONCONTROLLING
INTERESTS AND EQUITY
Current Liabilities:
Accounts payable
$
1,264.7
$
1,350.9
Accrued salaries, wages and employee
benefits
351.2
412.8
Accrued income taxes
150.9
166.0
Accrued dividends
132.1
131.7
Other accrued expenses
771.7
737.5
Current portion of long-term debt
752.5
353.8
Total current liabilities
3,423.1
3,152.7
Long-term debt, less current portion
3,556.9
3,983.5
Accrued pension and postretirement benefit
obligations
142.1
143.0
Deferred income taxes
371.0
367.0
Other long-term liabilities
464.8
453.7
Total Liabilities
7,957.9
8,099.9
Redeemable noncontrolling interests
30.9
30.7
Equity:
Common stock
0.6
0.6
Additional paid-in capital
3,224.1
3,101.2
Retained earnings
6,163.5
5,921.1
Treasury stock, at cost
(103.8)
(142.8)
Accumulated other comprehensive loss
(602.9)
(533.6)
Total stockholders’ equity attributable to
Amphenol Corporation
8,681.5
8,346.5
Noncontrolling interests
52.2
49.3
Total Equity
8,733.7
8,395.8
Total Liabilities, Redeemable
Noncontrolling Interests and Equity
$
16,722.5
$
16,526.4
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOW
(Unaudited)
(dollars in millions)
Three Months Ended
March 31,
2024
2023
Cash from operating
activities:
Net income
$
552.0
$
442.7
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
103.8
96.3
Stock-based compensation expense
23.8
21.7
Deferred income tax provision
1.9
0.1
Net change in components of working
capital
(73.9)
(23.8)
Net change in other long-term assets and
liabilities
(8.1)
(4.6)
Net cash provided by operating
activities
599.5
532.4
Cash from investing
activities:
Capital expenditures
(94.3)
(97.7)
Proceeds from disposals of property, plant
and equipment
0.5
0.8
Purchases of investments
(11.9)
(56.7)
Sales and maturities of investments
87.6
10.0
Acquisitions, net of cash acquired
—
(113.2)
Other, net
1.1
0.2
Net cash used in investing activities
(17.0)
(256.6)
Cash from financing
activities:
Proceeds from issuance of senior notes and
other long-term debt
—
350.2
Repayments of senior notes and other
long-term debt
(1.1)
(3.1)
(Repayments) borrowings under commercial
paper programs, net
—
(387.5)
Payment of costs related to debt
financing
(2.9)
(2.3)
Purchase of treasury stock
(153.8)
(166.9)
Proceeds from exercise of stock
options
113.3
74.3
Distributions to and purchases of
noncontrolling interests
—
(5.2)
Dividend payments
(131.7)
(124.9)
Net cash used in financing activities
(176.2)
(265.4)
Effect of exchange rate changes on cash
and cash equivalents
(24.2)
7.6
Net increase in cash and cash
equivalents
382.1
18.0
Cash and cash equivalents balance,
beginning of period
1,475.0
1,373.1
Cash and cash equivalents balance, end of
period
$
1,857.1
$
1,391.1
Cash paid for:
Interest
$
32.8
$
34.9
Income taxes, net
130.1
116.1
AMPHENOL CORPORATION
SEGMENT INFORMATION
(Unaudited)
(dollars in millions)
Three Months Ended
March 31,
2024
2023
Net
sales:
Harsh Environment Solutions
$
916.0
$
854.2
Communications Solutions
1,265.7
1,126.7
Interconnect and Sensor Systems
1,074.6
993.1
Consolidated Net sales
$
3,256.3
$
2,974.0
Operating
income:
Harsh Environment Solutions
$
244.4
$
226.3
Communications Solutions
286.2
230.6
Interconnect and Sensor Systems
195.4
178.8
Stock-based compensation expense
(23.8)
(21.7)
Acquisition-related expenses
—
(5.4)
Other operating expenses
(17.4)
(16.9)
Consolidated Operating income
$
684.8
$
591.7
Operating margin
(%):
Harsh Environment Solutions
26.7%
26.5%
Communications Solutions
22.6%
20.5%
Interconnect and Sensor Systems
18.2%
18.0%
Stock-based compensation expense
-0.7%
-0.7%
Acquisition-related expenses
0.0%
-0.2%
Other operating expenses
-0.5%
-0.6%
Consolidated Operating margin (%)
21.0%
19.9%
AMPHENOL CORPORATION 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 Amphenol Corporation, effective tax rate
and diluted EPS exclude 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, 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. The following non-GAAP financial information is
included for supplemental purposes only and should not be
considered in isolation or as a substitute for or superior to the
related U.S. GAAP financial measures. In addition, these non-GAAP
financial measures are 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 U.S.
GAAP.
The following are reconciliations of non-GAAP financial measures
to the most directly comparable U.S. GAAP financial measures for
the periods presented:
NET
SALES
Percentage Growth (relative to
same prior year period) (1)
Net sales
Foreign
Constant
Organic
growth in
currency
Currency Net
Acquisition
Net Sales
U.S. Dollars (2)
impact (3)
Sales Growth (5)
impact (4)
Growth (5)
Three Months Ended March 31,
2024
2023
(GAAP)
(non-GAAP)
(non-GAAP)
(non-GAAP)
(non-GAAP)
Net sales by segment:
Harsh Environment Solutions
$
916.0
$
854.2
7
%
—
%
7
%
4
%
3
%
Communications Solutions
1,265.7
1,126.7
12
%
(1)
%
13
%
3
%
11
%
Interconnect and Sensor Systems
1,074.6
993.1
8
%
—
%
9
%
6
%
2
%
Consolidated
$
3,256.3
$
2,974.0
9
%
(1)
%
10
%
4
%
6
%
_______________________________________________________________________
(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 U.S. dollars is calculated based on Net
sales as reported in the Condensed Consolidated Statements of
Income. While the term “net sales growth in U.S. dollars” is not
considered a U.S. GAAP financial measure, for purposes of this
table, we derive the reported (GAAP) measure based on GAAP results,
which serves as the basis for the reconciliation to its comparable
non-GAAP financial measures.
(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 U.S. dollars, as well as Organic Net Sales
Growth (defined below) and Constant Currency Net Sales Growth, and
believes that such information is useful to investors to assess the
underlying sales trends.
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 U.S. dollars, as well as Constant Currency Net Sales
Growth (defined above) and Organic Net Sales Growth, and believes
that such information is useful to investors to assess the
underlying sales trends.
AMPHENOL CORPORATION 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 March
31,
2024
2023
Net Income
Net Income
attributable to
Effective
attributable to
Effective
Operating
Operating
Amphenol
Tax
Diluted
Operating
Operating
Amphenol
Tax
Diluted
Income
Margin (i)
Corporation
Rate (i)
EPS
Income
Margin (i)
Corporation
Rate (i)
EPS
Reported (GAAP)
$
684.8
21.0
%
$
548.7
16.7
%
$
0.87
$
591.7
19.9
%
$
439.2
20.9
%
$
0.71
Acquisition-related expenses
—
—
—
—
—
5.4
0.2
4.0
—
0.01
Excess tax benefits related to stock-based
compensation
—
—
(29.7)
4.5
(0.05)
—
—
(17.1)
3.1
(0.03)
Discrete tax items
—
—
(18.6)
2.8
(0.03)
—
—
—
—
—
Adjusted (non-GAAP) (ii) (iii)
$
684.8
21.0
%
$
500.4
24.0
%
$
0.80
$
597.1
20.1
%
$
426.1
24.0
%
$
0.69
FREE CASH
FLOW
Three Months Ended
March 31,
2024
2023
Operating Cash Flow (GAAP)
$
599.5
$
532.4
Capital expenditures (GAAP)
(94.3)
(97.7)
Proceeds from disposals of property, plant
and equipment (GAAP)
0.5
0.8
Free Cash Flow (non-GAAP) (iii)
$
505.7
$
435.5
__________________________________________________________________________
(i) While the terms “operating margin” and “effective tax rate” are
not considered U.S. GAAP financial measures, for purposes of this
table, we derive the reported (GAAP) measures based on GAAP
results, which serve as the basis for the reconciliation to their
comparable non-GAAP financial measures. (ii) 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. (iii) The following are definitions of non-GAAP
financial measures presented in the tables above, which may be
referred to within this press release:
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.
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).
Adjusted Net Income attributable to
Amphenol Corporation is defined as Net income attributable to
Amphenol Corporation (as reported in the Condensed Consolidated
Statements of Income), excluding income and expenses and their
specific tax effects that are not directly related to the Company’s
operating performance during the periods presented.
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.
Adjusted Diluted EPS is defined as
diluted earnings per share (as reported in accordance with U.S.
GAAP), excluding income and expenses and their specific tax effects
that are not directly related to the Company’s operating
performance during the periods presented. Adjusted Diluted EPS is
calculated as Adjusted Net Income attributable to Amphenol
Corporation, as defined above, divided by the weighted average
outstanding diluted shares (as reported in the Condensed
Consolidated Statements of Income).
Free Cash Flow is defined as (i)
Net cash provided by operating activities (“Operating Cash Flow” -
as reported in accordance with U.S. GAAP) less (ii) capital
expenditures (as reported in accordance with U.S. GAAP), net of
proceeds from disposals of property, plant and equipment (as
reported in accordance with U.S. GAAP), all of which are derived
from the Condensed Consolidated Statements of Cash Flow. Free Cash
Flow is an important liquidity measure for the Company, as we
believe it is useful for management and investors to assess our
ability to generate cash, as well as to assess how much cash can be
used to reinvest in the growth of the Company or to return to
stockholders through either stock repurchases or dividends.
AMPHENOL CORPORATION 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, 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 U.S.
GAAP.
The Company excludes the above items in its guidance for the
upcoming quarter only to the extent that the Company reasonably
expects to record such items in the forward-looking period
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 June 30, 2024.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240424471430/en/
Sherri Scribner Vice President, Strategy and Investor Relations
203-265-8820 IR@amphenol.com
Amphenol (NYSE:APH)
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