Amphenol Corp. (APH, Financial) filed Quarterly Report for the period ended 2012-09-30.
Amphenol Corp has a market cap of $9.68 billion; its shares were traded at around $61.16 with a P/E ratio of 18.4 and P/S ratio of 2.5. The dividend yield of Amphenol Corp stocks is 0.7%. Amphenol Corp had an annual average earning growth of 16.3% over the past 10 years. GuruFocus rated Amphenol Corp the business predictability rank of 4-star.
Geographically, sales in the United States in the third quarter and first nine months of 2012 increased approximately 11% and 5%, respectively, compared to the same periods in 2011 ($352.4 and $1,021.5, respectively, in 2012 versus $318.7 and $976.2, respectively, in 2011). International sales both for the third quarter and first nine months of 2012 increased approximately 5% in U.S. dollars and 8% in local currencies, compared to the same periods in 2011 ($751.0 and $2,124.6, respectively, in 2012 versus $714.1 and $2,014.9, respectively, in 2011). The comparatively stronger U.S. dollar for the third quarter and first nine months of 2012 had the effect of decreasing sales by approximately $19.5 and $42.2, respectively, compared to foreign currency translation rates for the same periods in 2011.
Selling, general and administrative expenses increased to $128.7 and $380.6, or 11.7% and 12.1% of net sales, for the third quarter and first nine months of 2012, respectively, compared to $124.6 and $366.8, or 12.1% and 12.3% of net sales for the same periods in 2011. The increase in expense in the third quarter and first nine months of 2012 is primarily attributable to increases in selling expense resulting from higher sales volume, increased research and development spending relating to new product development, higher stock-based compensation expense, and an increase in amortization expense due to recent acquisitions. Selling, general and administrative expenses include stock-based compensation expense of $8.1 and $23.2 for the third quarter and first nine months of 2012, respectively, compared to $7.6 and $21.0 for the same periods in 2011.
The following describes the significant changes in the amounts as presented on the accompanying Condensed Consolidated Balance Sheets at September 30, 2012. Accounts receivable increased $136.2 to $903.3 primarily reflecting higher sales levels, the impact of acquisitions made during the period of $16.2 and to a lesser extent, translation resulting from the comparatively weaker U.S. dollar at September 30, 2012 compared to December 31, 2011 (Translation). Days sales outstanding was approximately 72 days at September 30, 2012 compared to 71 days at December 31, 2011. Inventories increased $62.3 to $712.2 to support higher sales levels and as a result of the impact of acquisitions made during the period of $27.2, and Translation. Inventory days decreased from 89 days at December 31, 2011 to 83 days at September 30, 2012. Other current assets increased $17.3 to $132.6 primarily due to an increase in other receivables and prepaid expenses. Land and depreciable assets, net, increased $27.1 to $407.6 primarily due to capital expenditures of $96.5 and the impact of acquisitions of $6.0, partially offset by depreciation of $72.9. Goodwill increased $130.4 to $1,876.5 primarily as a result of four acquisitions made during the period. Accounts payable increased $100.2 to $478.1, primarily as a result of an increase in purchasing activity during the period and the impact of acquisitions and Translation. Payable days were 56 at September 30, 2012 compared to 53 days at December 31, 2011. Total accrued expenses increased $28.1 to $292.4, primarily due to interest accrued and also due to the accrual of dividends declared in September 2012 that were paid in October 2012, which are declared at a rate of $0.105 per share compared to dividends declared in December 2011 and paid in January 2012, which were declared at a rate of $0.015. Other long-term liabilities increased $16.8 to $50.9 primarily due to an increase in deferred tax liabilities.
For the first nine months of 2012, cash flow provided by operating activities of $467.6, proceeds from the 4.00% Senior Notes offering (net of fees) of $494.7 and proceeds from the exercise of stock options including tax benefits from stock-based payment arrangements of $91.3 were used to fund net repayments on credit facilities of $270.4, purchases of treasury stock of $229.4, acquisitions (net of cash acquired) of $179.6, capital expenditures (net of disposals) of $92.3, dividend payments of $36.4, net purchases of short-term investments of $33.5, and payments to shareholders of noncontrolling interests of $4.7, which resulted in an increase in cash and cash equivalents of $210.5. For the first nine months of 2011, cash flow provided by operating activities of $396.6, net borrowings of $459.5, proceeds from the exercise of stock options including tax benefits from stock-based payment arrangements of $29.9 and net proceeds from sales of short-term investments of $7.6 were used to fund purchases of treasury stock of $534.0, capital expenditures (net of disposals) of $64.9, acquisitions (net of cash acquired) of $53.0, contingent acquisition-related obligation payments of $40.0, payments to shareholders of noncontrolling interests of $28.7 and dividend payments of $7.8, which resulted in an increase in cash and cash equivalents of $164.3.
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Amphenol Corp has a market cap of $9.68 billion; its shares were traded at around $61.16 with a P/E ratio of 18.4 and P/S ratio of 2.5. The dividend yield of Amphenol Corp stocks is 0.7%. Amphenol Corp had an annual average earning growth of 16.3% over the past 10 years. GuruFocus rated Amphenol Corp the business predictability rank of 4-star.
Highlight of Business Operations:
Net sales were $1,103.4 in the third quarter of 2012 compared to $1,032.8 in the prior year quarter, an increase of 7% in U.S. dollars, 9% in local currencies and 4% organically (excluding the impact of foreign exchange and acquisitions) over the prior year quarter. Net sales for the first nine months of 2012 were $3,146.1 compared to $2,991.1 for the same period in 2011, an increase of 5% in U.S. dollars, 7% in local currencies and 2% organically over the prior year period. Sales of interconnect products and assemblies in the third quarter of 2012 (approximately 94% of sales) increased 8% in U.S. dollars and 10% in local currencies compared to the same period in 2011 ($1,033.3 in 2012 versus $957.2 in 2011) primarily due to the impact of acquisitions as well as strong organic growth in the commercial aerospace, industrial and telecommunications and data communications markets. Sales of interconnect products and assemblies in the first nine months of 2012 increased 5% in U.S. dollars and 7% in local currencies compared to the same period in 2011 ($2,926.8 in 2012 versus $2,778.4 in 2011), due to the impact of acquisitions as well as strong organic growth in the commercial aerospace, industrial, automotive and telecommunications and data communications markets, partially offset by declines in the wireless infrastructure, defense and wireless device markets. Sales of cable products in the third quarter of 2012 (approximately 6% of sales) decreased 7% in U.S. dollars and 3% in local currencies compared to the same period in 2011 ($70.1 in 2012 versus $75.6 in 2011) primarily due to lower demand of specialty cable in international markets in the 2012 quarter. Sales of cable products in the first nine months of 2012 increased 3% in U.S. dollars and 7% in local currencies compared to the same period in 2011 ($219.3 in 2012 versus $212.7 in 2011) primarily due to increased demand in broadband markets globally.Geographically, sales in the United States in the third quarter and first nine months of 2012 increased approximately 11% and 5%, respectively, compared to the same periods in 2011 ($352.4 and $1,021.5, respectively, in 2012 versus $318.7 and $976.2, respectively, in 2011). International sales both for the third quarter and first nine months of 2012 increased approximately 5% in U.S. dollars and 8% in local currencies, compared to the same periods in 2011 ($751.0 and $2,124.6, respectively, in 2012 versus $714.1 and $2,014.9, respectively, in 2011). The comparatively stronger U.S. dollar for the third quarter and first nine months of 2012 had the effect of decreasing sales by approximately $19.5 and $42.2, respectively, compared to foreign currency translation rates for the same periods in 2011.
Selling, general and administrative expenses increased to $128.7 and $380.6, or 11.7% and 12.1% of net sales, for the third quarter and first nine months of 2012, respectively, compared to $124.6 and $366.8, or 12.1% and 12.3% of net sales for the same periods in 2011. The increase in expense in the third quarter and first nine months of 2012 is primarily attributable to increases in selling expense resulting from higher sales volume, increased research and development spending relating to new product development, higher stock-based compensation expense, and an increase in amortization expense due to recent acquisitions. Selling, general and administrative expenses include stock-based compensation expense of $8.1 and $23.2 for the third quarter and first nine months of 2012, respectively, compared to $7.6 and $21.0 for the same periods in 2011.
The following describes the significant changes in the amounts as presented on the accompanying Condensed Consolidated Balance Sheets at September 30, 2012. Accounts receivable increased $136.2 to $903.3 primarily reflecting higher sales levels, the impact of acquisitions made during the period of $16.2 and to a lesser extent, translation resulting from the comparatively weaker U.S. dollar at September 30, 2012 compared to December 31, 2011 (Translation). Days sales outstanding was approximately 72 days at September 30, 2012 compared to 71 days at December 31, 2011. Inventories increased $62.3 to $712.2 to support higher sales levels and as a result of the impact of acquisitions made during the period of $27.2, and Translation. Inventory days decreased from 89 days at December 31, 2011 to 83 days at September 30, 2012. Other current assets increased $17.3 to $132.6 primarily due to an increase in other receivables and prepaid expenses. Land and depreciable assets, net, increased $27.1 to $407.6 primarily due to capital expenditures of $96.5 and the impact of acquisitions of $6.0, partially offset by depreciation of $72.9. Goodwill increased $130.4 to $1,876.5 primarily as a result of four acquisitions made during the period. Accounts payable increased $100.2 to $478.1, primarily as a result of an increase in purchasing activity during the period and the impact of acquisitions and Translation. Payable days were 56 at September 30, 2012 compared to 53 days at December 31, 2011. Total accrued expenses increased $28.1 to $292.4, primarily due to interest accrued and also due to the accrual of dividends declared in September 2012 that were paid in October 2012, which are declared at a rate of $0.105 per share compared to dividends declared in December 2011 and paid in January 2012, which were declared at a rate of $0.015. Other long-term liabilities increased $16.8 to $50.9 primarily due to an increase in deferred tax liabilities.
For the first nine months of 2012, cash flow provided by operating activities of $467.6, proceeds from the 4.00% Senior Notes offering (net of fees) of $494.7 and proceeds from the exercise of stock options including tax benefits from stock-based payment arrangements of $91.3 were used to fund net repayments on credit facilities of $270.4, purchases of treasury stock of $229.4, acquisitions (net of cash acquired) of $179.6, capital expenditures (net of disposals) of $92.3, dividend payments of $36.4, net purchases of short-term investments of $33.5, and payments to shareholders of noncontrolling interests of $4.7, which resulted in an increase in cash and cash equivalents of $210.5. For the first nine months of 2011, cash flow provided by operating activities of $396.6, net borrowings of $459.5, proceeds from the exercise of stock options including tax benefits from stock-based payment arrangements of $29.9 and net proceeds from sales of short-term investments of $7.6 were used to fund purchases of treasury stock of $534.0, capital expenditures (net of disposals) of $64.9, acquisitions (net of cash acquired) of $53.0, contingent acquisition-related obligation payments of $40.0, payments to shareholders of noncontrolling interests of $28.7 and dividend payments of $7.8, which resulted in an increase in cash and cash equivalents of $164.3.
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