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): | January 24, 2007 |
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.) |
| 37 North Valley Road, Paoli, Pennsylvania | 19301 | |
|
_________________________________ (Address of principal executive offices) |
___________ (Zip Code) |
| Registrant’s 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 January 24, 2007, AMETEK, Inc. issued a press release announcing its financial results for the fourth quarter and year-ended December 31, 2006. A copy of such press release is furnished as Exhibit 99.1 to this Current Report.
Item 9.01 Financial Statements and Exhibits.
(c) Exhibit
99.1 Copy of press release issued by AMETEK, Inc. on January 24, 2007 (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. | ||||
| January 25, 2007 | By: |
Robert R. Mandos, Jr.
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| Name: Robert R. Mandos, Jr. | ||||
| Title: Senior Vice President & Comptroller | ||||
Exhibit Index
| Exhibit No. | Description | |
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99.1
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Copy of press release issued by AMETEK, Inc. on January 24, 2007. |
Exhibit 99.1
CORPORATE OFFICE
37 North Valley Road, Building 4, P.O. Box 1764, PAOLI, PA 19301-0801
Contact: William J. Burke (610) 889-5249
AMETEK ACHIEVES RECORD FOURTH QUARTER AND FULL-YEAR RESULTS
Paoli, PA, January 24, 2007 — AMETEK Inc. (NYSE: AME) today announced fourth quarter and full-year results that established records for sales, operating income, net income and diluted earnings per share. All per share and share amounts in this release reflect the 3-for-2 stock split paid on November 27, 2006.
Fourth Quarter Results
AMETEK’s fourth quarter 2006 sales of $480.7 million were up 19% over the same period of 2005.
Operating income for the fourth quarter of 2006 was $79.3 million, a 25% increase from the $63.4
million recorded in the same period of 2005. Net income in the fourth quarter of 2006 increased
30% to $47.8 million, or $.45 per diluted share, from fourth quarter 2005 levels of $36.9 million,
or $.35 per diluted share. Operating income margins were up 80 basis points in the quarter.
Sales, operating income, net income, and diluted earnings per share were all quarterly records.
Full-Year Results
AMETEK achieved 2006 sales of $1.82 billion, up 27% from year 2005 results. Operating income of
$309.0 million was up 32% from $233.5 million for 2005. Net income grew to $181.9 million, up 33%
from the $136.4 million earned in 2005, and diluted earnings per share of $1.71 were up 33% from
$1.29 per share in 2005. Sales, operating income, net income, and diluted earnings per share were
full-year records.
“AMETEK had a great fourth quarter, bringing to a close an excellent 2006,” noted Frank S. Hermance, AMETEK Chairman and Chief Executive Officer. “Solid internal growth in each of our segments and a very good year of acquisitions drove the strong top-line growth. Operating income margins expanded 70 basis points for the full year and both net income and diluted earnings per share increased 33%. Our excellent earnings performance resulted from an improved mix of businesses and our focused operational excellence initiatives.”
Operating cash flow was very strong, totaling $65.3 million for the fourth quarter of 2006, up 44% from the fourth quarter of 2005. For the full year, operating cash flow was up 45% to $226.0 million.
Electronic Instruments Group (EIG)
For the 2006 fourth quarter, EIG sales increased 19% to $273.8 million. Operating income for the
fourth quarter was $53.3 million, compared with $45.7 million in the fourth quarter of 2005, an
increase of 17%. Operating margins for the quarter were 19.5%, as compared with 19.8% in the
fourth quarter of 2005.
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AMETEK ACHIEVES RECORD FOURTH QUARTER AND FULL-YEAR RESULTS
PAGE 2.
“EIG sales were up in the quarter on strong internal growth of 7% led by our process and aerospace businesses, combined with the contributions from the Land Instruments and Precitech acquisitions. EIG margins remained very strong,” added Mr. Hermance.
For the year, EIG sales of $1.02 billion were up 26% from 2005 sales of $808.5 million. Operating income was $203.4 million for 2006, up 24% versus $164.2 million earned in 2005.
Electromechanical Group (EMG)
For the fourth quarter of 2006, EMG’s sales were $206.9 million, a 20% increase over the same
period of 2005. Operating income of $35.0 million was up 36% from the $25.7 million recorded in
the same period of 2005. Operating margins for the quarter were 16.9%, up sharply from 14.9% in
the fourth quarter of 2005.
“EMG fourth quarter sales were up 20% on excellent internal growth of 9%, driven by strength in our differentiated businesses and the contribution from the PennEngineering Motion Technologies acquisition made earlier this year. Operating margins increased 200 basis points as we saw strengthened results in both our cost driven and differentiated businesses,” noted Mr. Hermance.
For the year, EMG’s sales increased 28% to $802.8 million, compared with $626.0 million in 2005. Operating income was $139.9 million for 2006, up 41% from the $99.2 million earned in 2005.
2007 Outlook
“We expect 2007 to be another great year for AMETEK. Revenue is estimated to increase approximately 10%,” commented Mr. Hermance. “Earnings are expected to be approximately $1.93 to $1.97 per diluted share, an increase of 13% to 15% over the 2006 level of $1.71 per diluted share. The increase in estimated earnings reflects the benefits of the revenue growth and our continued focus on operational excellence.”
“First quarter 2007 sales are expected to be up mid teens on a percentage basis from last year’s first quarter. We estimate our earnings to be approximately $0.44 to $0.46 per diluted share, an increase of 16% to 21% over last year’s first quarter of $0.38,” concluded Mr. Hermance.
Accounting for Stock Options
The above operating results reflect the adoption of FAS 123R, effective January 1, 2006, for
expensing stock options under the modified retrospective method. Results for 2005 have been
adjusted on this basis.
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AMETEK ACHIEVES RECORD FOURTH QUARTER AND FULL-YEAR RESULTS
PAGE 3.
Conference Call
AMETEK, Inc. will Web cast its Fourth Quarter 2006 investor conference call on Wednesday, January
24, 2007, beginning at 8:30 AM ET. The live audio Web cast will be available at
www.ametek.com/investors and at www.streetevents.com. The call will also be
archived at www.ametek.com/investors.
Corporate Profile
AMETEK is a leading global manufacturer of electronic instruments and electromechanical devices
with 2006 sales of $1.8 billion. AMETEK’s Corporate Growth Plan is based on Four Key Strategies:
Operational Excellence, Strategic Acquisitions & Alliances, Global & Market
Expansion and New Products. 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 MidCap 400 Index and the Russell 1000 Index.
Forward-looking Information
Statements in this news release that are not historical are considered “forward-looking statements”
and are subject to change based on various factors and uncertainties that may cause actual results
to differ significantly from expectations. Those factors are contained in AMETEK’s Securities and
Exchange Commission filings.
# # #
(Financial Information Follows)
AMETEK, Inc.
CONSOLIDATED STATEMENT OF INCOME
(In thousands, except per share amounts)
| Three months ended | Twelve months ended | |||||||||||||||
| December31,(Unaudited) | December 31, | |||||||||||||||
| 2006 | 2005 (a) | 2006 | 2005 (a) | |||||||||||||
Net sales |
$ | 480,674 | $ | 403,781 | $ | 1,819,290 | $ | 1,434,457 | ||||||||
Expenses: |
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Cost of sales, excluding depreciation |
332,569 | 280,698 | 1,251,920 | 991,788 | ||||||||||||
Selling, general and administrative |
59,130 | 50,117 | 219,454 | 174,218 | ||||||||||||
Depreciation |
9,711 | 9,600 | 38,922 | 34,963 | ||||||||||||
Total expenses |
401,410 | 340,415 | 1,510,296 | 1,200,969 | ||||||||||||
Operating income |
79,264 | 63,366 | 308,994 | 233,488 | ||||||||||||
Other expenses: |
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Interest expense |
(10,616 | ) | (9,951 | ) | (42,167 | ) | (32,913 | ) | ||||||||
Other, net |
(1,832 | ) | (640 | ) | (3,141 | ) | (2,288 | ) | ||||||||
Income before income taxes |
66,816 | 52,775 | 263,686 | 198,287 | ||||||||||||
Provision for income taxes |
18,979 | 15,876 | 81,752 | 61,930 | ||||||||||||
Net income |
$ | 47,837 | $ | 36,899 | 181,934 | 136,357 | ||||||||||
Diluted earnings per share (b) |
$ | 0.45 | $ | 0.35 | $ | 1.71 | $ | 1.29 | ||||||||
Basic earnings per share (b) |
$ | 0.46 | $ | 0.35 | $ | 1.74 | $ | 1.31 | ||||||||
Average common shares outstanding: (b) |
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Diluted shares |
106,566 | 106,207 | 106,608 | 105,578 | ||||||||||||
Basic shares |
104,729 | 104,376 | 104,841 | 103,726 | ||||||||||||
Dividends per share (b) |
$ | 0.06 | $ | 0.04 | $ | 0.18 | $ | 0.16 | ||||||||
| (a) | Results for 2005 have been adjusted to reflect the retrospective application of FAS 123R to expense stock options, which was adopted effective January 1, 2006. The retrospective application reduced 2005 net income by $1.1 million, or $0.01 per diluted share, for the three months ended December 31, 2005, and by $4.3 million or $0.04 per diluted share, for the twelve months ended December 31, 2005. |
| (b) | Share and per share amounts have been adjusted to reflect a three-for-two stock split paid on November 27, 2006. |
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AMETEK, INC.
INFORMATION BY BUSINESS SEGMENT
(In thousands)
| Three months ended | Twelve months ended | |||||||||||||||
| December 31, (Unaudited) | December 31, | |||||||||||||||
| 2006 | 2005 (a) | 2006 | 2005 (a) | |||||||||||||
Net sales |
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Electronic Instruments |
$ | 273,783 | $ | 230,716 | $ | 1,016,503 | $ | 808,493 | ||||||||
Electromechanical |
206,891 | 173,065 | 802,787 | 625,964 | ||||||||||||
Total Consolidated |
$ | 480,674 | $ | 403,781 | $ | 1,819,290 | $ | 1,434,457 | ||||||||
Operating income |
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Electronic Instruments |
$ | 53,319 | $ | 45,707 | $ | 203,430 | $ | 164,248 | ||||||||
Electromechanical |
34,983 | 25,733 | 139,926 | 99,244 | ||||||||||||
Total segments |
88,302 | 71,440 | 343,356 | 263,492 | ||||||||||||
Corporate and other |
(9,038 | ) | (8,074 | ) | (34,362 | ) | (30,004 | ) | ||||||||
Total Consolidated |
$ | 79,264 | $ | 63,366 | $ | 308,994 | $ | 233,488 | ||||||||
| (a) | Operating income for 2005 has been adjusted to reflect the retrospective application of FAS 123R to expense stock options, which was adopted effective January 1, 2006. The retrospective application reduced 2005 operating income by $1.5 million for the three months ended December 31, 2005, and by $5.9 million for the twelve months ended December 31, 2005. |
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AMETEK, Inc.
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
(In thousands)
| December 31, | December 31, | |||||||
| 2006 | 2005 | |||||||
ASSETS |
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Current assets: |
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Cash, cash equivalents |
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and marketable securities |
$ | 58,220 | $ | 43,788 | ||||
Receivables, net |
328,762 | 269,395 | ||||||
Inventories |
236,283 | 193,099 | ||||||
Other current assets |
60,298 | 50,025 | ||||||
Total current assets |
683,563 | 556,307 | ||||||
Property, plant and equipment, net |
257,968 | 228,450 | ||||||
Goodwill |
886,697 | 785,185 | ||||||
Other intangibles, investments and other assets |
307,372 | 210,658 | ||||||
Total assets |
$ | 2,135,600 | $ | 1,780,600 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Short-term borrowings and current |
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portion of long-term debt |
$ | 163,608 | $ | 156,130 | ||||
Accounts payable and accruals |
322,016 | 249,662 | ||||||
Total current liabilities |
485,624 | 405,792 | ||||||
Long-term debt |
518,267 | 475,309 | ||||||
Deferred income taxes and |
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other long-term liabilities (a) |
164,135 | 89,978 | ||||||
Stockholders’ equity (a)(b) |
967,574 | 809,521 | ||||||
Total liabilities and stockholders’ equity |
$ | 2,135,600 | $ | 1,780,600 | ||||
| (a) | Amounts for 2005 have been adjusted to reflect the retrospective application of FAS 123R, which was adopted effective January 1, 2006. The retrospective application reduced deferred income taxes and increased stockholders’ equity by $4.0 million. |
| (b) | The adoption of FAS 158 as of December 31, 2006 resulted in a decrease in stockholders’ equity of approximately $29 million. |
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