UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): | October 27, 2015 |
AMETEK, Inc.
__________________________________________
(Exact name of registrant as specified in its charter)
Delaware | 1-12981 | 14-1682544 |
_____________________ (State or other jurisdiction |
_____________ (Commission |
______________ (I.R.S. Employer |
of incorporation) | File Number) | Identification No.) |
1100 Cassatt Road, Berwyn, Pennsylvania | 19312 | |
_________________________________ (Address of principal executive offices) |
___________ (Zip Code) |
Registrants telephone number, including area code: | 610-647-2121 |
Not Applicable
______________________________________________
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On October 27, 2015, AMETEK, Inc. issued a press release announcing its financial results for the three and nine months ended September 30, 2015. A copy of such press release is furnished as Exhibit 99.1 to this Current Report.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
99.1 Copy of press release issued by AMETEK, Inc. on October 27, 2015 (furnished but not filed pursuant to Item 2.02).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
AMETEK, Inc. | ||||
October 27, 2015 | By: |
/s/ William J. Burke
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Name: William J. Burke | ||||
Title: Senior Vice President - Comptroller & Treasurer |
Exhibit Index
Exhibit No. | Description | |
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99.1
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Copy of press release issued by AMETEK, Inc. on October 27, 2015. |
Exhibit 99.1
Contact: Kevin Coleman +1 610-889-5250
AMETEK ANNOUNCES THIRD QUARTER 2015 RESULTS
Delivers Record Quarterly Diluted Earnings per Share
BERWYN, PA, OCTOBER 27, 2015 AMETEK, Inc. (NYSE: AME) today announced its financial results for the three month period ended September 30, 2015.
AMETEK reported third quarter 2015 sales of $1.0 billion, down 3% from last years third quarter. Operating income increased 3% to $237.6 million, operating margins were up 130 basis points to 23.8%, and diluted earnings per share increased 5% to a record $0.65 per diluted share from the third quarter 2014 adjusted results.
I am very pleased with AMETEKs solid performance in the third quarter. Although the global economic environment remains challenging, we continue to deliver strong improvements in our operating margins and diluted earnings per share through the execution of our Four Growth Strategies, noted Frank S. Hermance, AMETEK Chairman and Chief Executive Officer.
Third quarter 2014 results exclude $13.7 million, or $0.05 per diluted share, in Zygo integration costs. A comparison of third quarter 2015 results to last years reported GAAP and adjusted results is included with the financial tables accompanying the release. All further references to 2014 results are on an adjusted basis.
Electronic Instruments Group (EIG)
In the third quarter of 2015, EIG sales were $598.5 million, down 5% versus $631.6 million in the
previous years comparable quarter. Operating income was $162.5 million in the quarter, up slightly
over last years third quarter, and operating margins were 27.2%, up 160 basis points over the prior
year.
EIG had a good third quarter in this difficult growth environment. The lower sales were driven largely by currency headwinds. Despite the lower sales, operating margins were very strong, increasing 160 basis points driven by our Operational Excellence initiatives, added Mr. Hermance.
(Continued)
AMETEK ANNOUNCES THIRD QUARTER 2015 RESULTS
Page 2
Electromechanical Group (EMG)
For the third quarter of 2015, EMG sales were $400.0 million, essentially flat with the third
quarter 2014. Operating income increased 6% to $86.7 million and operating margins were 21.7%, up
120 basis points from 20.5% in last years third quarter.
EMG also had a good quarter. Strong core growth in our Aerospace businesses and the contribution from the Global Tubes acquisition were offset by foreign currency headwinds and weakness within our Engineered Materials, Interconnects and Packaging business. Operating margins were very strong as a result of our Operational Excellence initiatives, notes Mr. Hermance.
2015 Outlook
As a result of the increasingly sluggish global macro environment, we now expect 2015 sales to be
down low single digits on a percentage basis versus 2014. Earnings for the year, excluding the
first quarter realignment costs, are anticipated to be approximately $2.55 per diluted share, up 5%
from last years adjusted diluted earnings per share, notes Mr. Hermance.
Fourth quarter sales are estimated to be down low single digits on a percentage basis from last years fourth quarter. We expect our diluted earnings per share to be approximately $0.63 in the fourth quarter, adds Mr. Hermance.
We remain confident in our ability to continue to deliver strong earnings due to our excellent portfolio of business, proven operational capabilities, on-going growth investments and a successful focus on strategic acquisitions, concluded Mr. Hermance.
(Continued)
AMETEK ANNOUNCES THIRD QUARTER 2015 RESULTS
Page 3
Conference Call
The Company will webcast its Third Quarter 2015 investor conference call on Tuesday, October 27,
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 annual sales of $4.0 billion. AMETEKs Corporate Growth Plan is based on Four Key Strategies:
Operational Excellence, Strategic Acquisitions, Global & Market Expansion and New Products.
AMETEKs 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 AMETEKs 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 AMETEKs 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.
# # #
(Financial Information Follows)
AMETEK, Inc.
Consolidated Statement of Income
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||
Net sales |
$ | 998,527 | $ | 1,031,811 | $ | 2,986,312 | $ | 2,997,821 | ||||||||||||
Operating expenses: |
||||||||||||||||||||
Cost of sales, excluding depreciation |
631,790 | 677,739 | 1,901,680 | 1,933,554 | ||||||||||||||||
Selling, general and administrative |
112,116 | 119,205 | 335,702 | 345,146 | ||||||||||||||||
Depreciation |
17,006 | 16,724 | 50,044 | 47,619 | ||||||||||||||||
Total operating expenses |
760,912 | 813,668 | 2,287,426 | 2,326,319 | ||||||||||||||||
Operating income |
237,615 | 218,143 | 698,886 | 671,502 | ||||||||||||||||
Other expenses: |
||||||||||||||||||||
Interest expense |
(23,684 | ) | (19,543 | ) | (69,048 | ) | (57,362 | ) | ||||||||||||
Other, net |
(2,325 | ) | (8,639 | ) | (6,298 | ) | (16,842 | ) | ||||||||||||
Income before income taxes |
211,606 | 189,961 | 623,540 | 597,298 | ||||||||||||||||
Provision for income taxes |
55,208 | 48,150 | 169,522 | 164,838 | ||||||||||||||||
Net income |
$ | 156,398 | $ | 141,811 | $ | 454,018 | $ | 432,460 | ||||||||||||
Diluted earnings per share |
$ | 0.65 | $ | 0.57 | $ | 1.87 | $ | 1.75 | ||||||||||||
Basic earnings per share |
$ | 0.65 | $ | 0.58 | $ | 1.89 | $ | 1.76 | ||||||||||||
Weighted average common shares outstanding: |
||||||||||||||||||||
Diluted shares |
241,238 | 247,643 | 242,552 | 247,425 | ||||||||||||||||
Basic shares |
239,959 | 245,439 | 240,801 | 245,184 | ||||||||||||||||
Dividends per share |
$ | 0.09 | $ | 0.09 | $ | 0.27 | $ | 0.24 | ||||||||||||
AMETEK, Inc.
Information by Business Segment
(In thousands)
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||
Net sales: |
||||||||||||||||||||
Electronic Instruments |
$ | 598,515 | $ | 631,569 | $ | 1,788,777 | $ | 1,777,252 | ||||||||||||
Electromechanical |
400,012 | 400,242 | 1,197,535 | 1,220,569 | ||||||||||||||||
Consolidated net sales |
$ | 998,527 | $ | 1,031,811 | $ | 2,986,312 | $ | 2,997,821 | ||||||||||||
Income: |
||||||||||||||||||||
Segment operating income: |
||||||||||||||||||||
Electronic Instruments |
$ | 162,530 | $ | 148,313 | $ | 477,740 | $ | 450,131 | ||||||||||||
Electromechanical |
86,671 | 82,001 | 257,929 | 258,014 | ||||||||||||||||
Total segment operating income |
249,201 | 230,314 | 735,669 | 708,145 | ||||||||||||||||
Corporate administrative and
other expenses |
(11,586 | ) | (12,171 | ) | (36,783 | ) | (36,643 | ) | ||||||||||||
Consolidated operating income |
$ | 237,615 | $ | 218,143 | $ | 698,886 | $ | 671,502 | ||||||||||||
AMETEK, Inc.
Condensed Consolidated Balance Sheet
(In thousands)
September 30, | December 31, | |||||||||||
2015 | 2014 | |||||||||||
(Unaudited) | ||||||||||||
ASSETS |
||||||||||||
Current assets: |
||||||||||||
Cash and cash equivalents |
$ | 328,034 | $ | 377,615 | ||||||||
Receivables, net |
610,019 | 585,462 | ||||||||||
Inventories, net |
541,994 | 495,896 | ||||||||||
Other current assets |
110,693 | 119,631 | ||||||||||
Total current assets |
1,590,740 | 1,578,604 | ||||||||||
Property, plant and equipment, net |
483,029 | 448,446 | ||||||||||
Goodwill |
2,722,871 | 2,614,030 | ||||||||||
Other intangibles, investments and other assets |
1,847,384 | 1,779,883 | ||||||||||
Total assets |
$ | 6,644,024 | $ | 6,420,963 | ||||||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||||||
Current liabilities: |
||||||||||||
Short-term borrowings and current portion of long-term debt |
$ | 295,259 | $ | 286,201 | ||||||||
Accounts payable and accruals |
630,218 | 649,943 | ||||||||||
Total current liabilities |
925,477 | 936,144 | ||||||||||
Long-term debt |
1,621,812 | 1,427,825 | ||||||||||
Deferred income taxes and other long-term liabilities |
781,466 | 817,433 | ||||||||||
Stockholders equity |
3,315,269 | 3,239,561 | ||||||||||
Total liabilities and stockholders equity |
$ | 6,644,024 | $ | 6,420,963 | ||||||||
AMETEK, Inc.
Reconciliations of GAAP to Non-GAAP Financial Measures
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||
EIG Segment operating income (GAAP) |
$ | 162,530 | $ | 148,313 | $ | 477,740 | $ | 450,131 | ||||||||||||
Realignment costs |
| | 9,251 | | ||||||||||||||||
Zygo integration costs |
| 13,655 | | 13,655 | ||||||||||||||||
Adjusted EIG Segment operating income (Non-GAAP) |
$ | 162,530 | $ | 161,968 | $ | 486,991 | $ | 463,786 | ||||||||||||
EMG Segment operating income (GAAP) |
$ | 86,671 | $ | 82,001 | $ | 257,929 | $ | 258,014 | ||||||||||||
Realignment costs |
| | 6,534 | | ||||||||||||||||
Zygo integration costs |
| | | | ||||||||||||||||
Adjusted EMG Segment operating income (Non-GAAP) |
$ | 86,671 | $ | 82,001 | $ | 264,463 | $ | 258,014 | ||||||||||||
Operating income (GAAP) |
$ | 237,615 | $ | 218,143 | $ | 698,886 | $ | 671,502 | ||||||||||||
Realignment costs |
| | 15,894 | | ||||||||||||||||
Zygo integration costs |
| 13,655 | | 13,655 | ||||||||||||||||
Adjusted Operating income (Non-GAAP) |
$ | 237,615 | $ | 231,798 | $ | 714,780 | $ | 685,157 | ||||||||||||
Net income (GAAP) |
$ | 156,398 | $ | 141,811 | $ | 454,018 | $ | 432,460 | ||||||||||||
Realignment costs |
| | 10,808 | (1) | | |||||||||||||||
Zygo integration costs |
| 10,717 | (2) | | 10,717 | (2) | ||||||||||||||
Adjusted Net income (Non-GAAP) |
$ | 156,398 | $ | 152,528 | $ | 464,826 | $ | 443,177 | ||||||||||||
(1) Represents adjustments at 32.0% tax rate. |
||||||||||||||||||||
(2) Represents adjustments at 21.5% tax rate. |
||||||||||||||||||||
Diluted earnings per share (GAAP) |
$ | 0.65 | $ | 0.57 | $ | 1.87 | $ | 1.75 | ||||||||||||
Realignment costs |
| | 0.05 | | ||||||||||||||||
Zygo integration costs |
| 0.05 | | 0.04 | ||||||||||||||||
Adjusted Diluted earnings per share (Non-GAAP) |
$ | 0.65 | $ | 0.62 | $ | 1.92 | $ | 1.79 | ||||||||||||
EIG Segment operating margin (GAAP) |
27.2 | % | 23.5 | % | 26.7 | % | 25.3 | % | ||||||||||||
Realignment costs |
| | 0.5 | | ||||||||||||||||
Zygo integration costs |
| 2.1 | | 0.8 | ||||||||||||||||
Adjusted EIG Segment operating margin (Non-GAAP) |
27.2 | % | 25.6 | % | 27.2 | % | 26.1 | % | ||||||||||||
EMG Segment operating margin (GAAP) |
21.7 | % | 20.5 | % | 21.5 | % | 21.1 | % | ||||||||||||
Realignment costs |
| | 0.6 | | ||||||||||||||||
Zygo integration costs |
| | | | ||||||||||||||||
Adjusted EMG Segment operating margin (Non-GAAP) |
21.7 | % | 20.5 | % | 22.1 | % | 21.1 | % | ||||||||||||
Operating income margin (GAAP) |
23.8 | % | 21.1 | % | 23.4 | % | 22.4 | % | ||||||||||||
Realignment costs |
| | 0.5 | | ||||||||||||||||
Zygo integration costs |
| 1.4 | | 0.5 | ||||||||||||||||
Adjusted Operating income margin (Non-GAAP) |
23.8 | % | 22.5 | % | 23.9 | % | 22.9 | % | ||||||||||||
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 AMETEKs 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 AMETEKs commercial performance during the period and/or we believe are not indicative of AMETEKs 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.