News Release Details

AMETEK Announces Record Fourth Quarter and Full Year Results

February 3, 2022 at 6:55 AM EST
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BERWYN, Pa., Feb. 3, 2022 /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) today announced its financial results for the fourth quarter ended December 31, 2021.

AMETEK's fourth quarter 2021 sales were a record $1.50 billion, a 25% increase compared to the fourth quarter of 2020. Operating income in the quarter was a record $361.2 million, up 21% versus last year's fourth quarter, and operating margins were 24.0% in the quarter.

On a GAAP basis, fourth quarter earnings per diluted share were $1.21. Adjusted earnings in the quarter were a record $1.37 per diluted share, up 27% from the fourth quarter of 2020. Adjusted earnings adds back non-cash, after-tax, acquisition-related intangible amortization of $0.16 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 an outstanding year with record results in the fourth quarter," said David A. Zapico, AMETEK Chairman and Chief Executive Officer. "Our businesses again delivered strong organic sales growth ahead of expectations and excellent operating performance resulting in record adjusted earnings per share in the quarter."

"End demand remains strong across our diverse end markets resulting in robust orders growth and a record backlog. Additionally, our flexible operating model allowed us to successfully navigate a difficult and uncertain operating environment and deliver strong core margin expansion in the quarter," noted Mr. Zapico.

For the full year, AMETEK's sales were a record $5.55 billion, an increase of 22% over 2020. Operating income was $1.31 billion and operating income margins were 23.6%, both full year record results.

On a GAAP basis, full year 2021 earnings were $4.25 per diluted share. Full year adjusted earnings were $4.85 per share, an increase of 23% over 2020's comparable adjusted earnings of $3.95 per share. 

Electronic Instruments Group (EIG)
EIG sales in the fourth quarter were a record $1.06 billion, up 29% from the fourth quarter of 2020. EIG's operating income in the quarter increased 18% to a record $279.5 million and operating income margins were 26.4%.

"EIG performed exceptionally well in the fourth quarter and for the full year, delivering outstanding sales and operating profit growth," noted Mr. Zapico. "The sales growth was driven by very strong and broad-based organic sales and the contributions from the five acquisitions completed during the year."

Electromechanical Group (EMG)
Sales for EMG in the fourth quarter were $446.7 million, up 18% from the same quarter in 2020. EMG's fourth quarter operating income was $105.3 million, up 32% versus the prior year, while operating income margins were 23.6%, up 260 basis points year over year.  

"EMG delivered exceptional operating results in the quarter. Strong organic sales growth combined with excellent operational execution drove superb operating profit growth and margin expansion," added Mr. Zapico. 

2022 Outlook
"While this past year once again brought significant challenges, our colleagues stepped up and delivered results that exceeded expectations. I could not be prouder of our team and our accomplishments over the past year," continued Mr. Zapico.

"As a result of these efforts, AMETEK is well positioned as we enter 2022. Our businesses are operating at a very high level and demand remains strong across our niche markets. While the supply chain remains challenging, we are actively managing these issues. Additionally, our balance sheet and cash flows provide us meaningful opportunity to invest in our businesses and deploy capital on strategic acquisitions," commented Mr. Zapico.

"For 2022, we expect overall sales to be up approximately 10% compared to 2021. Adjusted earnings per diluted share are expected to be in the range of $5.30 to $5.42, an increase of 9% to 12% over the comparable basis for 2021," he added.

"For the first quarter of 2022, overall sales are expected to be up approximately 20% compared to the same period last year. Adjusted earnings in the quarter are anticipated to be in the range of $1.24 to $1.28 per share, up 16% to 20%," concluded Mr. Zapico.

Conference Call
AMETEK will webcast its fourth quarter 2021 investor conference call on Thursday, February 3, 2022, 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 2021 sales of $5.5 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:
Kevin Coleman
Vice President, Investor Relations and Treasurer
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,

2021

2020

2021

2020

Net sales

$1,503,745

$1,198,947

$5,546,514

$4,540,029








Cost of sales

982,394

769,968

3,633,900

2,996,515

Selling, general and administrative

160,200

130,866

603,944

515,630

     Total operating expenses

1,142,594

900,834

4,237,844

3,512,145








Operating income

361,151

298,113

1,308,670

1,027,884








Interest expense

(20,516)

(19,465)

(80,381)

(86,062)

Other (expense) income, net

(1,344)

(1,941)

(5,119)

140,487








Income before income taxes

339,291

276,707

1,223,170

1,082,309








Provision for income taxes

57,610

55,682

233,117

209,870








Net income

$281,681

$221,025

$990,053

$872,439








Diluted earnings per share

$1.21

$0.95

$4.25

$3.77

Basic earnings per share

$1.22

$0.96

$4.29

$3.80








Weighted average common shares outstanding:






     Diluted shares

233,116

231,890

232,813

231,150

     Basic shares

231,388

229,978

230,955

229,435








Dividends per share

$0.20

$0.18

$0.80

$0.72











 

AMETEK, Inc.

Information by Business Segment

(In thousands)

(Unaudited)


 Three Months Ended


 Year Ended


 December 31,


 December 31,


2021

2020

2021

2020

Net sales:






     Electronic Instruments

$1,057,086

$819,449

$3,763,758

$2,989,928

     Electromechanical

446,659

379,498

1,782,756

1,550,101

          Consolidated net sales

$1,503,745

$1,198,947

$5,546,514

$4,540,029








Operating income:






Segment operating income:






     Electronic Instruments

$279,531

$236,007

$958,183

$770,620

     Electromechanical

105,340

79,808

437,378

324,962

          Total segment operating income

384,871

315,815

1,395,561

1,095,582

     Corporate administrative expenses

(23,720)

(17,702)

(86,891)

(67,698)

          Consolidated operating income

$361,151

$298,113

$1,308,670

$1,027,884

 

AMETEK, Inc.

Condensed Consolidated Balance Sheet

(In thousands)


 December 31,


 December 31,


2021

2020

 (Unaudited)



ASSETS


Current assets:


     Cash and cash equivalents

$346,772

$1,212,822

     Receivables, net

829,213

597,472

     Inventories, net

769,175

559,171

     Other current assets

183,605

153,005

          Total current assets

2,128,765

2,522,470




Property, plant and equipment, net

617,138

526,530

Right of use asset, net

169,924

167,233

Goodwill

5,238,726

4,224,906

Other intangibles, investments and other assets

3,743,634

2,916,344

          Total assets

$11,898,187

$10,357,483




LIABILITIES AND STOCKHOLDERS' EQUITY


Current liabilities:


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

$315,093

$132,284

     Accounts payable and accruals

1,248,221

943,631

          Total current liabilities

1,563,314

1,075,915




Long-term debt, net

2,229,148

2,281,441

Deferred income taxes and other long-term liabilities

1,233,841

1,050,781

Stockholders' equity

6,871,884

5,949,346

          Total liabilities and stockholders' equity

$11,898,187

$10,357,483

 

AMETEK, Inc.

Reconciliations of GAAP to Non-GAAP Financial Measures

(Unaudited)


























  Diluted Earnings Per Share



Three Months Ended

Year Ended


December 31,

December 31,


2021

2020

2021

2020









Diluted earnings per share (GAAP)

$1.21

$0.95

$4.25

$3.77

Pretax amortization of acquisition-related intangible assets

0.21

0.17

0.79

0.67

Income tax benefit on amortization of acquisition-related intangible assets

(0.05)

(0.04)

(0.19)

(0.16)

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)

$1.37

$1.08

$4.85

$3.95



















 














 Forecasted Diluted Earnings Per Share



Three Months Ended

Year Ended


March 31, 2022

December 31, 2022


Low

High

Low

High









Diluted earnings per share (GAAP)

$1.08

$1.12

$4.66

$4.78

Pretax amortization of acquisition-related intangible assets

0.21

0.21

0.85

0.85

Income tax benefit on amortization of acquisition-related intangible assets

(0.05)

(0.05)

(0.21)

(0.21)

Adjusted Diluted earnings per share (Non-GAAP)

$1.24

$1.28

$5.30

$5.42



















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.

 

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SOURCE AMETEK, Inc.