AMETEK Announces First Quarter Results and Raises 2019 Guidance

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May 1, 2019 at 6:55 AM EDT

AMETEK Announces First Quarter Results and Raises 2019 Guidance

- Reports first quarter sales up 10% over prior year
- Reports GAAP earnings of $0.89 per diluted share
- Delivers adjusted earnings of $1.00 per diluted share, up 15% over 2018 adjusted earnings
- Increases 2019 adjusted earnings guidance range to $3.98 to $4.08 per diluted share

BERWYN, Pa., May 1, 2019 /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) today announced its financial results for the first quarter ended March 31, 2019.

AMETEK's first quarter 2019 sales were a record $1.29 billion, up 10% compared to the first quarter of 2018, with organic sales growth of 5%. Operating income increased 10% over the prior-year period to a record $283.3 million, and operating income margins were 22.0%.

On a GAAP basis, first quarter earnings per diluted share were $0.89. Adjusted earnings, which adds back non-cash, after-tax, acquisition-related intangible amortization, were $1.00 per diluted share, an increase of 15% over the prior year's comparable period. A reconciliation of reported GAAP earnings to adjusted earnings is included in the financial tables accompanying this release and on the AMETEK website.

"AMETEK started 2019 with outstanding performance," said David A. Zapico, AMETEK Chairman and Chief Executive Officer. "Continued solid organic growth, strong contributions from recent acquisitions and excellent operating performance enabled us to exceed our expectations and deliver robust sales and earnings growth with excellent core margin expansion. Given the quarter's strong results, we have raised our guidance for 2019."

Electronic Instruments Group (EIG)
EIG sales in the quarter were $806.9 million, up 13% over the first quarter of 2018. EIG's operating income increased 11% over the same period to $203.1 million, and operating income margins were 25.2%.

"EIG delivered outstanding results in the quarter," noted Mr. Zapico. "Solid organic sales growth and contributions from the recent acquisitions of Soundcom, Motec, Forza, Telular and Spectro Scientific led to an impressive 13% increase in sales. EIG continues to capitalize on our Operational Excellence initiatives, which led to excellent operating performance in the quarter."

Electromechanical Group (EMG)
EMG sales in the first quarter were a record $480.8 million, up 5% over the same period in 2018.  Operating income in the quarter for EMG was a record $98.8 million, up 9% over last year's first quarter, and operating income margins were 20.6%, up 70 basis points over the prior year.

"EMG also delivered tremendous operating performance in the quarter with excellent organic sales growth," commented Mr. Zapico. "Operating margins increased nicely on higher sales and continued execution of our Operational Excellence initiatives."

2019 Outlook
"I am very pleased with AMETEK's results in the first quarter. Our businesses are performing at a very high level.  We remain well positioned to drive continued strong growth given our record backlog, our leadership position across attractive niche market segments and the strength of the AMETEK Growth Model," noted Mr. Zapico.

"For 2019, we continue to expect overall sales to be up high single digits on a percentage basis compared to 2018, driven by contributions from recent acquisitions, and 3% to 5% organic sales growth. Adjusted earnings are now expected to be in the range of $3.98 to $4.08 per diluted share, an increase of 9% to 11% over the prior year's comparable basis.  This is an increase from our previous adjusted guidance range of $3.95 to $4.05 per diluted share," he added.

"Overall sales in the second quarter are expected to be up high single digits on a percentage basis compared to the same quarter of 2018. Adjusted earnings are expected to be in the range of $1.00 to $1.02 per diluted share, up 9% to 11% on a comparable basis over last year's second quarter," concluded Mr. Zapico.

Conference Call
AMETEK will webcast its first quarter 2019 investor conference call on Wednesday, May 1, 2019, beginning at 8:30 AM ET. The live audio webcast will be available and later archived in the Investors section of www.ametek.com.

Corporate Profile
AMETEK is a leading global manufacturer of electronic instruments and electromechanical devices with annual sales of approximately $5.0 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 AMETEK's ability to consummate and successfully integrate future acquisitions; risks associated with international sales and operations; 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


 March 31,


2019


2018

Net sales

$   1,287,691


$    1,172,647





Cost of sales

851,307


776,800

Selling, general and administrative

153,125


137,679

     Total operating expenses

1,004,432


914,479





Operating income

283,259


258,168





Interest expense

(22,653)


(21,686)

Other income (expense), net

(3,668)


(658)





Income before income taxes

256,938


235,824





Provision for income taxes

52,670


54,484





Net income

$      204,268


$       181,340





Diluted earnings per share

$           0.89


$            0.78

Basic earnings per share

$           0.90


$            0.79





Weighted average common shares outstanding:




     Diluted shares

228,686


232,965

     Basic shares

226,861


230,928





Dividends per share

$           0.14


$            0.14



AMETEK, Inc.

Information by Business Segment

(In thousands)

(Unaudited)



 Three Months Ended


 March 31,


2019


2018

Net sales:




     Electronic Instruments

$      806,911


$       716,426

     Electromechanical

480,780


456,221

          Consolidated net sales

$   1,287,691


$    1,172,647





Operating income:




Segment operating income:




     Electronic Instruments

$      203,084


$       183,359

     Electromechanical

98,813


91,002

          Total segment operating income

301,897


274,361

     Corporate administrative expenses

(18,638)


(16,193)

          Consolidated operating income

$      283,259


$       258,168

 

AMETEK, Inc.

Condensed Consolidated Balance Sheet

(In thousands)



 March 31,


 December 31,


2019


2018


 (Unaudited)



ASSETS




Current assets:




     Cash and cash equivalents

$     368,065


$     353,975

     Receivables, net

763,156


732,839

     Inventories, net

640,580


624,744

     Other current assets

152,843


124,586

          Total current assets

1,924,644


1,836,144





Property, plant and equipment, net

542,679


554,130

Right of use asset, net

182,182


-

Goodwill

3,610,277


3,612,033

Other intangibles, investments and other assets

2,631,701


2,659,981

          Total assets

$  8,891,483


$  8,662,288





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




     Short-term borrowings and current portion of long-term debt, net

$     104,157


$     358,876

     Accounts payable and accruals

903,071


899,828

          Total current liabilities

1,007,228


1,258,704





Long-term debt, net

2,368,197


2,273,837

Deferred income taxes and other long-term liabilities

1,059,437


887,825

Stockholders' equity

4,456,621


4,241,922

          Total liabilities and stockholders' equity

$  8,891,483


$  8,662,288

 

AMETEK, Inc.

Reconciliations of GAAP to Non-GAAP Financial Measures

(Unaudited)








Diluted Earnings


 Forecasted Diluted Earnings


Per Share


 Per Share




Three Months Ended


Year Ended


Three Months Ended


June 30,


December 31,


March 31,


March 31,


Low


High


Low


High


2019


2018


2019


2019


2019


2019













Diluted earnings per share (GAAP)

$      0.89


$      0.78


$      0.89


$      0.91


$      3.55


$      3.65













Pretax amortization of acquisition-
related intangible assets

0.14


0.12


0.14


0.14


0.57


0.57













Income tax benefit on amortization
of acquisition-related intangible
assets

(0.03)


(0.03)


(0.03)


(0.03)


(0.14)


(0.14)













Adjusted Diluted earnings per share
(Non-GAAP)

$      1.00


$      0.87


$      1.00


$      1.02


$      3.98


$      4.08

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. 

Cision View original content:http://www.prnewswire.com/news-releases/ametek-announces-first-quarter-results-and-raises-2019-guidance-300841319.html

SOURCE AMETEK, Inc.

Stock Information

(Common Stock)

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