BERWYN, Pa., Jan. 28, 2015 /PRNewswire/ -- AMETEK, Inc. (NYSE:
AME) today announced its financial results for the three month and
full year periods ended December 31,
2014.
AMETEK's fourth quarter 2014 sales of $1.02 billion were up 9% over the same period of
2013. Excluding Zygo integration costs of $5.2 million, or approximately $0.01 per diluted share, operating income
increased 10% to a record $232.3
million, operating margins were up 40 basis points, and
diluted earnings per share increased 15% to a record $0.63 per diluted share from the fourth quarter
2013.
"AMETEK had a strong fourth quarter to complete another
excellent year. Strong growth, record operating performance,
and the contributions from our acquired businesses allowed us to
exceed our fourth quarter earnings expectations. In addition,
our orders were very strong in the quarter, totaling $1.0 billion, up 10% from last year's fourth
quarter with 7% core growth," noted Frank
S. Hermance, AMETEK Chairman and Chief Executive
Officer.
"Cash flow was also very strong, with both the fourth quarter
and full year results representing records. Operating cash
flow was $213.3 million for the
quarter and $726.0 million for the
year," continued Mr. Hermance.
For the full year, AMETEK achieved record levels of orders,
sales, operating income, net income and diluted earnings per
share. Full year sales were $4.02
billion, up 12% from 2013. Excluding Zygo integration
costs of $18.9 million, or
approximately $0.05 per diluted
share, operating income in 2014 was $917.5
million, up 13%, and diluted earnings per share were
$2.42, up 15% from 2013.
On a GAAP basis, in the fourth quarter operating income was
$227.1 million and diluted earnings
per share were $0.62. For the
full year, operating income was $898.6
million, and diluted earnings per share were $2.37. A reconciliation of reported GAAP
results to adjusted results is included in the financial tables
accompanying the release.
Electronic Instruments Group (EIG)
For
the 2014 fourth quarter, EIG sales increased 14% to $644.4 million. Operating income, excluding the
Zygo integration costs, increased 11% to $168.1 million over the fourth quarter of
2013.
"EIG had a very solid fourth quarter. Strong sales growth
was driven by excellent organic growth in our Aerospace business,
combined with contributions from our recent acquisitions," notes
Mr. Hermance.
On a GAAP basis, EIG operating income was $162.9 million.
Electromechanical Group (EMG)
In the
fourth quarter, EMG sales increased 1% to $379.8 million. Operating income in the
fourth quarter increased 9% to $77.0
million. Operating margins for the quarter were 20.3%,
up 150 basis points from last year's fourth quarter.
"EMG performed very well in the quarter with excellent operating
performance and solid core growth in our Precision Motion Control
and Engineered Materials, Interconnects and Packaging
businesses. Operating margins were up sharply driven by the
sales growth and our continued Operational Excellence initiatives,"
adds Mr. Hermance.
2015 Outlook
"We expect our businesses overall
to show solid growth in 2015. AMETEK's strong portfolio of
differentiated businesses, proven operational capabilities,
continued investment in new product development and geographic
expansion, and a continued focus on strategic acquisitions should
enable us to perform well in 2015 and beyond," notes
Mr. Hermance.
"We anticipate 2015 revenue to be up mid-single digits on a
percentage basis from 2014. Earnings for 2015 are expected to
be in the range of $2.58 to $2.63 per
diluted share, up 7% to 9% over 2014, reflecting the leveraged
impact of core growth, continued operational excellence
initiatives, and the benefit of contributions from recent
acquisitions," adds Mr. Hermance.
"First quarter 2015 sales are expected to be up mid-single
digits from last year's first quarter. We estimate our
earnings to be approximately $0.61 to
$0.63 per diluted share, an increase of 7% to 11% over last
year's first quarter of $0.57 per
diluted share," concludes Mr. Hermance.
Conference Call
AMETEK will webcast its Fourth
Quarter 2014 investor conference call on Wednesday, January 28, 2015, beginning at
8:30 AM ET. The live audio webcast
will be available at the Investors section of www.ametek.com and at
www.streetevents.com. The call will also be archived at the
Investors section of www.ametek.com.
Corporate Profile
AMETEK is a leading
global manufacturer of electronic instruments and
electro-mechanical devices with 2014 sales of $4.0
billion. AMETEK's Corporate Growth Plan is based on Four
Key Strategies: Operational Excellence, Strategic Acquisitions,
Global & Market Expansion and New Products. AMETEK's
objective is double-digit percentage growth in earnings per share
over the business cycle and a superior return on total capital.
The common stock of AMETEK is a component of
the S&P 500 Index.
Forward-looking Information
Statements
in this news release relating to future events, such as AMETEK's
expected business and financial performance are "forward-looking
statements." Forward-looking statements are subject to
various factors and uncertainties that may cause actual results to
differ significantly from expectations. These factors and
uncertainties include our ability to consummate and successfully
integrate future acquisitions; risks associated with international
sales and operations; our ability to successfully develop new
products, open new facilities or transfer product lines; the price
and availability of raw materials; compliance with government
regulations, including environmental regulations; changes in the
competitive environment or the effects of competition in our
markets; the ability to maintain adequate liquidity and financing
sources; and general economic conditions affecting the industries
we serve. A detailed discussion of these and other factors
that may affect our future results is contained in AMETEK's filings
with the U.S. Securities and Exchange Commission, including its
most recent reports on Form 10-K, 10-Q and 8-K. AMETEK
disclaims any intention or obligation to update or revise any
forward-looking statements.
Contact: Kevin Coleman (610)
889-5247
(Financial
Information Follows)
|
AMETEK,
Inc.
|
Consolidated
Statement of Income
|
(In thousands,
except per share amounts)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
Net
sales
|
$1,024,143
|
|
$ 942,468
|
|
$4,021,964
|
|
$3,594,136
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of sales, excluding
depreciation
|
663,463
|
|
609,845
|
|
2,597,017
|
|
2,323,642
|
Selling, general and
administrative
|
117,491
|
|
106,688
|
|
462,637
|
|
398,177
|
Depreciation
|
16,105
|
|
15,390
|
|
63,724
|
|
57,238
|
Total operating expenses
|
797,059
|
|
731,923
|
|
3,123,378
|
|
2,779,057
|
|
|
|
|
|
|
|
|
Operating
income
|
227,084
|
|
210,545
|
|
898,586
|
|
815,079
|
Other
expenses:
|
|
|
|
|
|
|
|
Interest expense
|
(22,566)
|
|
(18,852)
|
|
(79,928)
|
|
(73,572)
|
Other, net
|
3,016
|
|
(5,230)
|
|
(13,826)
|
|
(16,712)
|
Income before income
taxes
|
207,534
|
|
186,463
|
|
804,832
|
|
724,795
|
Provision for income
taxes
|
55,534
|
|
50,795
|
|
220,372
|
|
207,796
|
|
|
|
|
|
|
|
|
Net
income
|
$ 152,000
|
|
$ 135,668
|
|
$ 584,460
|
|
$ 516,999
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
0.62
|
|
$ 0.55
|
|
$
2.37
|
|
$ 2.10
|
Basic earnings per
share
|
$
0.62
|
|
$ 0.55
|
|
$
2.39
|
|
$ 2.12
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Diluted shares
|
246,132
|
|
246,816
|
|
247,102
|
|
246,065
|
Basic shares
|
243,990
|
|
244,659
|
|
244,885
|
|
243,915
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
0.09
|
|
$ 0.06
|
|
$
0.33
|
|
$ 0.24
|
AMETEK,
Inc.
|
Information by
Business Segment
|
(In
thousands)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
Net
sales:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$ 644,386
|
|
$ 566,907
|
|
$2,421,638
|
|
$2,034,594
|
Electromechanical
|
379,757
|
|
375,561
|
|
1,600,326
|
|
1,559,542
|
Consolidated net sales
|
$1,024,143
|
|
$ 942,468
|
|
$4,021,964
|
|
$3,594,136
|
|
|
|
|
|
|
|
|
Income:
|
|
|
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$ 162,861
|
|
$ 151,855
|
|
$ 612,992
|
|
$ 552,110
|
Electromechanical
|
77,032
|
|
70,528
|
|
335,046
|
|
309,402
|
Total segment operating income
|
239,893
|
|
222,383
|
|
948,038
|
|
861,512
|
Corporate administrative and
other expenses
|
(12,809)
|
|
(11,838)
|
|
(49,452)
|
|
(46,433)
|
Consolidated operating income
|
$ 227,084
|
|
$ 210,545
|
|
$ 898,586
|
|
$ 815,079
|
|
|
|
|
|
|
|
|
AMETEK,
Inc.
|
Condensed
Consolidated Balance Sheet
|
(In
thousands)
|
|
|
December
31,
|
|
December
31,
|
|
2014
|
|
2013
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$ 377,615
|
|
$ 295,203
|
Receivables, net
|
585,462
|
|
536,701
|
Inventories
|
495,896
|
|
452,848
|
Other current
assets
|
128,853
|
|
84,377
|
Total current assets
|
1,587,826
|
|
1,369,129
|
|
|
|
|
Property, plant and
equipment, net
|
448,446
|
|
402,790
|
Goodwill
|
2,611,270
|
|
2,408,363
|
Other intangibles,
investments and other assets
|
1,766,976
|
|
1,697,620
|
Total assets
|
$ 6,414,518
|
|
$ 5,877,902
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt
|
$ 286,201
|
|
$ 273,315
|
Accounts payable and
accruals
|
658,194
|
|
601,230
|
Total current liabilities
|
944,395
|
|
874,545
|
|
|
|
|
Long-term
debt
|
1,427,825
|
|
1,141,750
|
Deferred income taxes
and other long-term liabilities
|
800,482
|
|
725,486
|
Stockholders'
equity
|
3,241,816
|
|
3,136,121
|
Total liabilities and stockholders' equity
|
$ 6,414,518
|
|
$ 5,877,902
|
AMETEK,
Inc.
|
Reconciliations of
GAAP to Non-GAAP Financial Measures
|
(In millions,
except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
EIG Segment operating
income (GAAP)
|
|
$ 162.9
|
|
$ 151.9
|
|
$ 613.0
|
|
$ 552.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zygo integration
costs
|
|
5.2
|
|
-
|
|
18.9
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EIG Segment
operating income (Non-GAAP)
|
$ 168.1
|
|
$ 151.9
|
|
$ 631.9
|
|
$ 552.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(GAAP)
|
|
$ 227.1
|
|
$ 210.5
|
|
$ 898.6
|
|
$ 815.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zygo integration
costs
|
|
5.2
|
|
-
|
|
18.9
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
income (Non-GAAP)
|
|
$ 232.3
|
|
$ 210.5
|
|
$ 917.5
|
|
$ 815.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
|
$ 152.0
|
|
$ 135.7
|
|
$ 584.5
|
|
$ 517.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zygo integration
costs
|
|
3.2
|
(1)
|
-
|
|
13.9
|
(2)
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net income
(Non-GAAP)
|
|
$ 155.2
|
|
$ 135.7
|
|
$ 598.4
|
|
$ 517.0
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents fourth
quarter adjustments at 39.2% tax rate.
|
(2) Represents full
year adjustments at 26.4% tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
|
$ 0.62
|
|
$ 0.55
|
|
$ 2.37
|
|
$ 2.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zygo integration
costs
|
|
0.01
|
|
-
|
|
0.05
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted
earning per share (Non-GAAP)
|
|
$ 0.63
|
|
$ 0.55
|
|
$ 2.42
|
|
$ 2.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
margin (GAAP)
|
|
22.2%
|
|
22.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zygo integration
costs
|
|
0.5%
|
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
income margin (Non-GAAP)
|
|
22.7%
|
|
22.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Use of Non-GAAP
Financial Information
The Company supplements its consolidated financial statements
presented on a U.S. generally accepted accounting principles
("GAAP") basis with certain non‑GAAP financial information to
provide investors with greater insight, increased transparency and
allow for a more comprehensive understanding of the information
used by management in its financial and operational
decision-making. Reconciliation of non‑GAAP measures to their
most directly comparable GAAP measures are included in the
accompanying financial tables. These non‑GAAP financial measures
should be considered in addition to, and not as a replacement for,
or superior to, the comparable GAAP measure, and may not be
comparable to similarly titled measures reported by other
companies.
The Company believes that these measures provide useful information
to investors by reflecting additional ways of viewing AMETEK's
operations that, when reconciled to the comparable GAAP measure,
helps our investors to better understand the long-term
profitability trends of our business, and facilitates easier
comparisons of our profitability to prior and future periods and to
our peers. The items described above have been excluded from
this measure because items of this nature and/or size occur with
inconsistent frequency, occur for reasons that may be unrelated to
AMETEK's commercial performance during the period and/or we believe
are not indicative of AMETEK's ongoing operating costs or gains in
a given period, which we believe may obscure underlying business
trends and make comparisons of long-term performance
difficult.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ametek-announces-record-fourth-quarter-2014-results-300026730.html
SOURCE AMETEK, Inc.