BERWYN, Pa., Feb. 4, 2021 /PRNewswire/ -- AMETEK, Inc. (NYSE:
AME) today announced its financial results for the fourth quarter
and full year ended December 31,
2020.
AMETEK's fourth quarter 2020 sales were $1.20 billion, an 8% decline compared to the
fourth quarter of 2019. Operating income in the quarter was
$298.1 million, up slightly versus
last year's fourth quarter and operating margins were a record
24.9%, up 210 basis points over the same period last year.
On a GAAP basis, fourth quarter earnings per diluted share were
$0.95. Adjusted earnings in the
quarter were $1.08 per diluted share,
equal to the fourth quarter of 2019. Adjusted earnings adds back
non-cash, after-tax, acquisition-related intangible amortization of
$0.13 per diluted share.
A reconciliation of reported GAAP results to adjusted results
is included in the financial tables accompanying this release and
on the AMETEK website.
"AMETEK completed a challenging year with an excellent fourth
quarter," said David A. Zapico, AMETEK Chairman and Chief
Executive Officer. "We continued to see solid sequential sales and
order improvements in the quarter despite the ongoing impacts of
the COVID-19 pandemic. Furthermore, we delivered record operating
results and substantial margin expansion in the fourth quarter,
with EBITDA margins a robust 30.1%."
"Additionally, our operational strength resulted in record
levels of cash flow in the fourth quarter with operating cash flow
up 13% to $386 million and free cash
flow up 16% to $349 million
representing 158% of net income, further strengthening our balance
sheet and liquidity position," noted Mr. Zapico.
Electronic Instruments Group (EIG)
EIG sales in the
fourth quarter were $819.4 million,
down 7% from the fourth quarter of 2019. EIG's operating income in
the quarter increased 3% to a record $236.0
million and operating income margins were a record 28.8%, up
270 basis points over the prior-year period.
"EIG delivered outstanding operating results in the fourth
quarter," noted Mr. Zapico. "While year over year sales were
down in line with expectations, we saw strong sequential sales
improvement. Additionally, EIG's operational initiatives drove
significant margin expansion and record operating margins."
Electromechanical Group (EMG)
Sales for EMG in the
fourth quarter were $379.5 million,
down 11% from the same quarter in 2019. EMG's fourth quarter
operating income was $79.8 million
and operating income margins were 21.0%, up 110 basis points versus
the same period last year.
"EMG also delivered strong operating results in the quarter,"
added Mr. Zapico. "As EMG's topline was negatively impacted by the
divestiture of Reading Alloys and weaker demand due to the global
pandemic, EMG drove impressive operating margin expansion through
our cost and asset management initiatives."
2021 Outlook
"This last year presented unprecedented
challenges, both personally and professionally, for everyone at
AMETEK. Our employees stepped up to these challenges and our
businesses delivered results that consistently exceeded our
expectations," continued Mr. Zapico.
"Our success in 2020 was a testament to the strength of the
AMETEK Growth Model, our ability to navigate through difficult
economic environments, and the tremendous efforts of our talented
workforce. We remain committed to investing in our businesses and
our people to drive long-term, sustainable growth," noted Mr.
Zapico.
"While uncertainty remains, our diverse end markets, record
backlog and solid order momentum provide a positive outlook for the
year ahead. For 2021, we expect overall sales to be up mid-single
digits on a percentage basis compared to 2020. Adjusted earnings
per diluted share are expected to be in the range of $4.18 to $4.30, an
increase of 6% to 9% over the comparable basis for 2020," he
added.
"For the first quarter of 2021, overall sales are expected to be
down low to mid-single digits compared to the same period last
year. Adjusted earnings in the quarter are anticipated to be in the
range of $0.97 to $1.02 per share," concluded Mr. Zapico.
Conference Call
AMETEK will webcast its fourth quarter
2020 investor conference call on Thursday, February 4, 2021,
beginning at 8:30 AM ET. The live
audio webcast will be available and later archived in the Investors
section of www.ametek.com.
About AMETEK
AMETEK is a leading global
manufacturer of electronic instruments and electromechanical
devices with 2020 sales of more than $4.5
billion. The AMETEK Growth Model integrates the Four Growth
Strategies - Operational Excellence, New Product Development,
Global and Market Expansion, and Strategic Acquisitions - with a
disciplined focus on cash generation and capital deployment.
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.
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 risks related to COVID-19 and its potential impact on
AMETEK's operations, supply chain, and demand across key end
markets; AMETEK's ability to consummate and successfully integrate
future acquisitions; risks with international sales and operations,
including supply chain disruptions; AMETEK's 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:
AMETEK, Inc.
Kevin Coleman
Vice President, Investor Relations
1100 Cassatt Road
Berwyn, Pennsylvania 19312
kevin.coleman@ametek.com
Phone: 610.889.5247
|
AMETEK,
Inc.
|
|
Consolidated
Statement of Income
|
|
(In thousands,
except per share amounts)
|
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Net
sales
|
$1,198,947
|
|
$1,304,821
|
|
$4,540,029
|
|
$5,158,557
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
769,968
|
|
858,175
|
|
2,996,515
|
|
3,370,897
|
|
Selling, general and
administrative
|
130,866
|
|
148,991
|
|
515,630
|
|
610,280
|
|
Total operating
expenses
|
900,834
|
|
1,007,166
|
|
3,512,145
|
|
3,981,177
|
|
|
|
|
|
|
|
|
|
Operating
income
|
298,113
|
|
297,655
|
|
1,027,884
|
|
1,177,380
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(19,465)
|
|
(23,045)
|
|
(86,062)
|
|
(88,481)
|
|
Other (expense)
income, net
|
(1,941)
|
|
(6,630)
|
|
140,487
|
|
(19,151)
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
276,707
|
|
267,980
|
|
1,082,309
|
|
1,069,748
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
55,682
|
|
47,203
|
|
209,870
|
|
208,451
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
221,025
|
|
$
220,777
|
|
$
872,439
|
|
$
861,297
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
0.95
|
|
$
0.96
|
|
$
3.77
|
|
$
3.75
|
|
Basic earnings per
share
|
$
0.96
|
|
$
0.97
|
|
$
3.80
|
|
$
3.78
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Diluted shares
|
231,890
|
|
230,006
|
|
231,150
|
|
229,395
|
|
Basic shares
|
229,978
|
|
228,557
|
|
229,435
|
|
227,759
|
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
0.18
|
|
$
0.14
|
|
$
0.72
|
|
$
0.56
|
|
AMETEK,
Inc.
|
|
Information by
Business Segment
|
|
(In
thousands)
|
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Net
sales:
|
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
819,449
|
|
$
880,171
|
|
$2,989,928
|
|
$3,322,881
|
|
Electromechanical
|
379,498
|
|
424,650
|
|
1,550,101
|
|
1,835,676
|
|
Consolidated net sales
|
$1,198,947
|
|
$1,304,821
|
|
$4,540,029
|
|
$5,158,557
|
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
236,007
|
|
$
229,859
|
|
$
770,620
|
|
$
865,307
|
|
Electromechanical
|
79,808
|
|
84,602
|
|
324,962
|
|
387,931
|
|
Total segment operating income
|
315,815
|
|
314,461
|
|
1,095,582
|
|
1,253,238
|
|
Corporate administrative
expenses
|
(17,702)
|
|
(16,806)
|
|
(67,698)
|
|
(75,858)
|
|
Consolidated operating income
|
$
298,113
|
|
$
297,655
|
|
$1,027,884
|
|
$1,177,380
|
|
AMETEK,
Inc.
|
|
Condensed
Consolidated Balance Sheet
|
|
(In
thousands)
|
|
|
December
31,
|
|
December
31,
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
1,212,822
|
|
$
393,030
|
|
Receivables, net
|
597,472
|
|
744,760
|
|
Inventories, net
|
559,171
|
|
624,567
|
|
Other current
assets
|
153,005
|
|
263,414
|
|
Total current assets
|
2,522,470
|
|
2,025,771
|
|
|
|
|
|
Property, plant and
equipment, net
|
526,530
|
|
548,908
|
|
Right of use asset,
net
|
167,233
|
|
179,679
|
|
Goodwill
|
4,224,906
|
|
4,047,539
|
|
Other intangibles,
investments and other assets
|
2,916,344
|
|
3,042,662
|
|
Total assets
|
$10,357,483
|
|
$
9,844,559
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$
132,284
|
|
$
497,449
|
|
Accounts payable and
accruals
|
943,631
|
|
928,409
|
|
Total current liabilities
|
1,075,915
|
|
1,425,858
|
|
|
|
|
|
Long-term debt,
net
|
2,281,441
|
|
2,271,292
|
|
Deferred income taxes
and other long-term liabilities
|
1,050,781
|
|
1,031,917
|
|
Stockholders'
equity
|
5,949,346
|
|
5,115,492
|
|
Total liabilities and stockholders' equity
|
$10,357,483
|
|
$
9,844,559
|
|
AMETEK,
Inc.
|
|
|
Reconciliations of
GAAP to Non-GAAP Financial Measures
|
|
|
(In thousands,
except per share amounts)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
|
(In
millions)
|
|
2020
|
|
2019
|
|
|
|
|
|
|
Net income
|
|
$
221.0
|
|
$
220.8
|
|
|
|
|
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
19.5
|
|
23.0
|
|
|
|
|
|
|
Interest
income
|
|
(0.4)
|
|
(1.4)
|
|
|
|
|
|
|
Income
taxes
|
|
55.7
|
|
47.2
|
|
|
|
|
|
|
Depreciation
|
|
26.1
|
|
27.4
|
|
|
|
|
|
|
Amortization
|
|
38.8
|
|
36.8
|
|
|
|
|
|
|
EBITDA
|
|
$
360.7
|
|
$
353.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA Margin
(EBITDA divided by net sales)
|
|
30.1%
|
|
27.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FREE CASH
FLOW
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
|
(In
millions)
|
|
2020
|
|
2019
|
|
|
|
|
|
|
Cash provided by
operating activities
|
|
$
385.9
|
|
$
342.2
|
|
|
|
|
|
|
Deduct: Capital
expenditures
|
|
(37.0)
|
|
(40.8)
|
|
|
|
|
|
|
Free cash
flow
|
|
$
348.9
|
|
$
301.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
Conversion (Free cash flow divided by net income)
|
|
158%
|
|
137%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED DILUTED
EARNINGS PER SHARE
|
|
|
|
|
|
|
|
Diluted
Earnings Per Share
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
Diluted earnings per
share (GAAP)
|
|
$
0.95
|
|
$
0.96
|
|
$
3.77
|
|
$
3.75
|
|
|
Pretax amortization of
acquisition-related intangible assets
|
|
0.17
|
|
0.16
|
|
0.67
|
|
0.58
|
|
|
Income tax benefit on
amortization of acquisition-related intangible
assets
|
|
(0.04)
|
|
(0.04)
|
|
(0.16)
|
|
(0.14)
|
|
|
Realignment
costs
|
|
-
|
|
-
|
|
0.19
|
|
-
|
|
|
Income tax benefit on
realignment costs
|
|
-
|
|
-
|
|
(0.04)
|
|
-
|
|
|
Gain from sale of
Reading Alloys
|
|
-
|
|
-
|
|
(0.61)
|
|
-
|
|
|
Income tax charge on
gain on sale of Reading Alloys
|
|
-
|
|
-
|
|
0.14
|
|
-
|
|
|
Rounding
|
|
-
|
|
-
|
|
(0.01)
|
|
-
|
|
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
|
$
1.08
|
|
$
1.08
|
|
$
3.95
|
|
$
4.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED DILUTED
EARNINGS PER SHARE
|
|
|
|
|
|
|
|
Forecasted
Diluted Earnings Per Share
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
|
|
2021
|
|
2021
|
|
2021
|
|
2021
|
|
|
Diluted earnings per
share (GAAP)
|
|
$
0.84
|
|
$
0.89
|
|
$
3.68
|
|
$
3.80
|
|
|
Pretax amortization of
acquisition-related intangible assets
|
|
0.17
|
|
0.17
|
|
0.66
|
|
0.66
|
|
|
Income tax benefit on
amortization of acquisition-related intangible assets
|
|
(0.04)
|
|
(0.04)
|
|
(0.16)
|
|
(0.16)
|
|
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
|
$
0.97
|
|
$
1.02
|
|
$
4.18
|
|
$
4.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
View original
content:http://www.prnewswire.com/news-releases/ametek-announces-fourth-quarter-and-full-year-results-301221731.html
SOURCE AMETEK, Inc.