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): | April 28, 2016 |
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 April 28, 2016, AMETEK, Inc. issued a press release announcing its financial results for the three months ended March 31, 2016. 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 April 28, 2016 (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. | ||||
April 28, 2016 | 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 April 28, 2016. |
Exhibit 99.1
Contact: Kevin Coleman +1 610-889-5247
AMETEK ANNOUNCES FIRST QUARTER 2016 RESULTS
BERWYN, PA, APRIL 28, 2016 AMETEK, Inc. (NYSE: AME) today announced its financial results for the three month period ended March 31, 2016.
AMETEKs first quarter 2016 sales of $944.4 million were down 4% over the same period of 2015. Operating income was down 12% to $208.5 million and diluted earnings per share of $0.57 were down 10% from the first quarter 2015 adjusted results. Operating margins were 22.1% in the quarter.
As expected, demand remained weak in the quarter, said Chairman and Chief Executive Officer Frank S. Hermance. Ongoing softness in oil and gas, metals and global industrial markets continues to drive meaningful headwinds. Despite these challenges, we were able to deliver solid first quarter earnings in-line with our expectations.
First quarter 2015 results exclude realignment costs of $15.9 million, or approximately $0.04 per diluted share. A comparison of first quarter 2016 results to last years reported GAAP and adjusted results is included with the financial tables accompanying the release. All further references to 2015 results are on an adjusted basis.
Electronic Instruments Group (EIG)
For the first quarter of 2016, EIG sales decreased 4% to $569.0 million. Operating income was
$141.8 million, down 12% versus the first quarter 2015, and operating margins were 24.9% in the
quarter.
Overall sales in our Power & Industrial businesses were up approximately 10% driven by the contributions from the acquisitions of Brookfield Engineering Laboratories and ESP/SurgeX during the quarter. However, this strong growth was more than offset by lower sales in our Process business driven by weakness in our oil and gas businesses, adds Mr. Hermance.
(Continued)
AMETEK ANNOUNCES FIRST QUARTER 2016 RESULTS
Page 2
Electromechanical Group (EMG)
In the first quarter, EMG sales decreased 4% to $375.4 million. Operating income in the quarter
was $79.4 million, down 10% from last years first quarter, and operating margins were 21.2% in the
quarter.
The lower sales versus last year were largely driven by the impacts from commodity price deflation across our Engineered Materials, Interconnects and Packaging businesses. We expect these end market conditions to sequentially improve during 2016 with a stronger second half than first half, notes Mr. Hermance.
2016 Outlook
We have an excellent portfolio of differentiated businesses. We are confident in our ability to
successfully execute on our growth strategies in order to capitalize on the tremendous opportunity
we have to grow and expand these businesses. However, we are faced with the reality of a number of
challenging end markets, which will continue to impact us in 2016, notes Mr. Hermance.
We expect 2016 sales to be roughly flat versus last year with earnings expected to be in the range of $2.42 to $2.52 per diluted share, down 1% to 5% versus 2015 adjusted results, adds Mr. Hermance.
Second quarter 2016 sales are expected to be down low single digits compared to last years second quarter. We estimate our earnings in the second quarter to be approximately $0.58 to $0.59 per diluted share, down 8% to 9% over last years second quarter, concludes Mr. Hermance.
Conference Call
The Company will webcast its First Quarter 2016 investor conference call on Thursday, April 28,
2016 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.
(Continued)
AMETEK ANNOUNCES FIRST QUARTER 2016 RESULTS
Page 3
Corporate Profile
AMETEK is a leading global manufacturer of electronic instruments and electromechanical 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 | ||||||||
March 31, | ||||||||
2016 | 2015 | |||||||
Net sales |
$ | 944,398 | $ | 984,059 | ||||
Operating expenses: |
||||||||
Cost of sales, excluding depreciation |
605,356 | 635,965 | ||||||
Selling, general and administrative |
112,194 | 110,884 | ||||||
Depreciation |
18,325 | 16,258 | ||||||
Total operating expenses |
735,875 | 763,107 | ||||||
Operating income |
208,523 | 220,952 | ||||||
Other expenses: |
||||||||
Interest expense |
(23,401 | ) | (22,686 | ) | ||||
Other, net |
(2,080 | ) | (1,480 | ) | ||||
Income before income taxes |
183,042 | 196,786 | ||||||
Provision for income taxes |
48,872 | 54,679 | ||||||
Net income |
$ | 134,170 | $ | 142,107 | ||||
Diluted earnings per share |
$ | 0.57 | $ | 0.59 | ||||
Basic earnings per share |
$ | 0.57 | $ | 0.59 | ||||
Weighted average common shares outstanding: |
||||||||
Diluted shares |
236,216 | 242,797 | ||||||
Basic shares |
234,983 | 240,947 | ||||||
Dividends per share |
$ | 0.09 | $ | 0.09 | ||||
AMETEK, Inc.
Information by Business Segment
(In thousands)
(Unaudited)
Three Months Ended | ||||||||
March 31, | ||||||||
2016 | 2015 | |||||||
Net sales: |
||||||||
Electronic Instruments |
$ | 568,956 | $ | 593,798 | ||||
Electromechanical |
375,442 | 390,261 | ||||||
Consolidated net sales |
$ | 944,398 | $ | 984,059 | ||||
Income: |
||||||||
Segment operating income: |
||||||||
Electronic Instruments |
$ | 141,832 | $ | 151,217 | ||||
Electromechanical |
79,426 | 81,964 | ||||||
Total segment operating income |
221,258 | 233,181 | ||||||
Corporate administrative and
other expenses |
(12,735 | ) | (12,229 | ) | ||||
Consolidated operating income |
$ | 208,523 | $ | 220,952 | ||||
AMETEK, Inc.
Condensed Consolidated Balance Sheet
(In thousands)
March 31, | December 31, | |||||||
2016 | 2015 | |||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 386,940 | $ | 381,005 | ||||
Receivables, net |
606,888 | 603,295 | ||||||
Inventories, net |
548,777 | 514,451 | ||||||
Other current assets |
119,985 | 120,076 | ||||||
Total current assets |
1,662,590 | 1,618,827 | ||||||
Property, plant and equipment, net |
488,331 | 484,548 | ||||||
Goodwill |
2,857,999 | 2,706,633 | ||||||
Other intangibles, investments and other assets |
1,985,782 | 1,850,442 | ||||||
Total assets |
$ | 6,994,702 | $ | 6,660,450 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Short-term borrowings and current portion of long-term debt, net |
$ | 665,686 | $ | 384,924 | ||||
Accounts payable and accruals |
624,868 | 639,097 | ||||||
Total current liabilities |
1,290,554 | 1,024,021 | ||||||
Long-term debt, net |
1,552,674 | 1,553,116 | ||||||
Deferred income taxes and other long-term liabilities |
854,788 | 828,687 | ||||||
Stockholders equity |
3,296,686 | 3,254,626 | ||||||
Total liabilities and stockholders equity |
$ | 6,994,702 | $ | 6,660,450 | ||||
AMETEK, Inc.
Reconciliations of GAAP to Non-GAAP Financial Measures
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2016 | 2015 | |||||||||||
EIG Segment operating income (GAAP) |
$ | 141,832 | $ | 151,217 | ||||||||
Realignment costs |
| 9,251 | ||||||||||
Adjusted EIG Segment operating income (Non-GAAP) |
$ | 141,832 | $ | 160,468 | ||||||||
EMG Segment operating income (GAAP) |
$ | 79,426 | $ | 81,964 | ||||||||
Realignment costs |
| 6,534 | ||||||||||
Adjusted EMG Segment operating income (Non-GAAP) |
$ | 79,426 | $ | 88,498 | ||||||||
Operating income (GAAP) |
$ | 208,523 | $ | 220,952 | ||||||||
Realignment costs |
| 15,894 | ||||||||||
Adjusted Operating income (Non-GAAP) |
$ | 208,523 | $ | 236,846 | ||||||||
Net income (GAAP) |
$ | 134,170 | $ | 142,107 | ||||||||
Realignment costs |
| 10,808 | (1) | |||||||||
Adjusted Net income (Non-GAAP) |
$ | 134,170 | $ | 152,915 | ||||||||
(1) Represents adjustments at 32.0% tax rate. |
||||||||||||
Diluted earnings per share (GAAP) |
$ | 0.57 | $ | 0.59 | ||||||||
Realignment costs |
| 0.04 | ||||||||||
Adjusted Diluted earnings per share (Non-GAAP) |
$ | 0.57 | $ | 0.63 | ||||||||
EIG Segment operating margin (GAAP) |
24.9 | % | 25.5 | % | ||||||||
Realignment costs |
| 1.5 | ||||||||||
Adjusted EIG Segment operating margin (Non-GAAP) |
24.9 | % | 27.0 | % | ||||||||
EMG Segment operating margin (GAAP) |
21.2 | % | 21.0 | % | ||||||||
Realignment costs |
| 1.7 | ||||||||||
Adjusted EMG Segment operating margin (Non-GAAP) |
21.2 | % | 22.7 | % | ||||||||
Operating income margin (GAAP) |
22.1 | % | 22.5 | % | ||||||||
Realignment costs |
| 1.6 | ||||||||||
Adjusted Operating income margin (Non-GAAP) |
22.1 | % | 24.1 | % | ||||||||
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 and increased transparency, and to 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.