8-K
Ametek Inc/ (AME)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
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CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 2, 2023
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AMETEK, Inc.
(Exact name of registrant as specified in its charter)
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| Delaware | 1-12981 | 14-1682544 | |
|---|---|---|---|
| (State or other jurisdiction<br><br>of incorporation) | (Commission<br><br>File Number) | (IRS Employer<br><br>Identification No.) | |
| 1100 Cassatt Road | |||
| Berwyn, | Pennsylvania | 19312 | |
| (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 (see General Instructions A.2. below):
☐ 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))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $0.01 Par Value (voting) | AME | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02 Results of Operations and Financial Condition.
On February 2, 2023, AMETEK, Inc. (the “Company”) issued a press release announcing its financial results for the three months and year ended December 31, 2022. A copy of the release is furnished as Exhibit 99.1 and incorporated by reference herein. This Current Report on Form 8-K and the press release attached hereto are being furnished pursuant to Item 2.02 of Form 8-K.
The information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description |
|---|---|
| 99.1 | Press release, dated February 2, 2023, “AMETEK AnnouncesRecordFourth Quarter and Full Year Results” |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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. | ||
|---|---|---|
| February 2, 2023 | By: | /s/ THOMAS M. MONTGOMERY |
| Name: Thomas M. Montgomery | ||
| Title: Senior Vice President – Comptroller |
Document
Exhibit 99.1
AMETEK Announces Record Fourth Quarter and Full Year Results
Berwyn, Pa., Feb. 2, 2023 – AMETEK, Inc. (NYSE: AME) today announced its financial results for the fourth quarter ended December 31, 2022.
AMETEK’s fourth quarter 2022 sales were a record $1.63 billion, an 8% increase over the fourth quarter of 2021, with organic sales growth of 9%. Operating income increased 10% to a record $398 million and operating margins were 24.5%, up 50 basis points from fourth quarter 2021 margins.
On a GAAP basis, fourth quarter earnings per diluted share were $1.33. Adjusted earnings in the quarter were a record $1.52 per diluted share, up 11% from the fourth quarter of 2021. Adjusted earnings adds back non-cash, after-tax, acquisition-related intangible amortization of $0.19 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 a record year with an outstanding fourth quarter,” commented David A. Zapico, AMETEK Chairman and Chief Executive Officer. “Our results in the quarter were ahead of expectations driven by continued broad-based sales growth and exceptional operating performance. AMETEK’s operating flexibility allowed us to deliver excellent margin expansion, strong cash flows and outstanding earnings growth in the quarter. Additionally, we ended the year with a record backlog of $3.2 billion, positioning us well as we look ahead to 2023.”
For the full year, AMETEK’s sales were $6.15 billion, an increase of 11% over 2021. Organic sales were also up 11% in 2022. Operating income was $1.50 billion, up 15% versus the prior year, and operating income margins were 24.4%, expanding 80 basis points over last year’s results.
On a GAAP basis, full year 2022 earnings were $5.01 per diluted share. Full year adjusted earnings were $5.68 per share, an increase of 17% over 2021’s comparable adjusted earnings of $4.85 per share. AMETEK established annual records for sales, operating profit, operating margin, and earnings per share.
Electronic Instruments Group (EIG)
EIG sales in the fourth quarter were a record $1.16 billion, up 10% from the same quarter in 2021. EIG’s operating income in the quarter increased 10% to a record $307 million and operating income margins were 26.5%, an increase of 10 basis points versus the fourth quarter of 2021.
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“EIG delivered another excellent quarter to complete an outstanding year,” noted Mr. Zapico. “Strong and broad-based organic sales growth and contributions from recent acquisitions drove double digit sales growth while EIG’s operating performance resulted in record operating income in the quarter.”
Electromechanical Group (EMG)
EMG sales in the fourth quarter were $466 million, up 4% from the fourth quarter in 2021. EMG’s fourth quarter operating income was $115 million, up 9% versus the prior year, while operating income margins were 24.6% in the quarter, up 100 basis points versus the prior year.
“EMG’s fourth quarter results were also outstanding with continued strong sales growth and operating performance resulting in very strong margin expansion,” added Mr. Zapico.
2023 Outlook
“Our businesses delivered exceptional results in 2022. AMETEK’s success reflects the strength and flexibility of the AMETEK Growth Model, the quality of our niche, differentiated businesses, and the outstanding contributions from all AMETEK colleagues. We are optimistic about the future given our record backlog, proven operating capability and robust cash flows. Additionally, we are well-positioned to continue to invest in our organic growth initiatives, deploy capital on strategic acquisitions and drive long-term sustainable growth,” noted Mr. Zapico.
“For 2023, we expect overall sales to be up mid-single digits compared to 2022. Adjusted earnings per diluted share are expected to be in the range of $5.84 to $6.00, an increase of 3% to 6% over the comparable basis for 2022,” he added.
"For the first quarter of 2023, overall sales are also expected to be up mid-single digits compared to the same period last year. Adjusted earnings in the quarter are anticipated to be in the range of $1.38 to $1.42 per share, up 4% to 7% compared to the first quarter of 2022," concluded Mr. Zapico.
Conference Call
AMETEK will webcast its fourth quarter 2022 investor conference call on Thursday, February 2, 2023, 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 (NYSE: AME) is a leading global provider of industrial technology solutions serving a diverse set of attractive niche markets with annual sales over $6.0 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. Founded in 1930, AMETEK has been listed on the NYSE for over 90 years and is a component of the S&P 500. For more information, visit www.AMETEK.com.
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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
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AMETEK, Inc.
Consolidated Statement of Income
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended December 31, | Year Ended December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||||
| Net sales | $ | 1,625,667 | $ | 1,503,745 | $ | 6,150,530 | $ | 5,546,514 |
| Cost of sales | 1,063,657 | 982,394 | 4,005,261 | 3,633,900 | ||||
| Selling, general and administrative | 163,920 | 160,200 | 644,577 | 603,944 | ||||
| Total operating expenses | 1,227,577 | 1,142,594 | 4,649,838 | 4,237,844 | ||||
| Operating income | 398,090 | 361,151 | 1,500,692 | 1,308,670 | ||||
| Interest expense | (23,021) | (20,516) | (83,186) | (80,381) | ||||
| Other income (expense), net | 3,435 | (1,344) | 11,186 | (5,119) | ||||
| Income before income taxes | 378,504 | 339,291 | 1,428,692 | 1,223,170 | ||||
| Provision for income taxes | 71,422 | 57,610 | 269,150 | 233,117 | ||||
| Net income | $ | 307,082 | $ | 281,681 | $ | 1,159,542 | $ | 990,053 |
| Diluted earnings per share | $ | 1.33 | $ | 1.21 | $ | 5.01 | $ | 4.25 |
| Basic earnings per share | $ | 1.34 | $ | 1.22 | $ | 5.04 | $ | 4.29 |
| Weighted average common shares outstanding: | ||||||||
| Diluted shares | 231,118 | 233,116 | 231,536 | 232,813 | ||||
| Basic shares | 229,750 | 231,388 | 230,208 | 230,955 | ||||
| Dividends per share | $ | 0.22 | $ | 0.20 | $ | 0.88 | $ | 0.80 |
AMETEK, Inc.
Information by Business Segment
(In thousands)
(Unaudited)
| Three Months Ended December 31, | Year Ended December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||||
| Net sales: | ||||||||
| Electronic Instruments | $ | 1,159,222 | $ | 1,057,086 | $ | 4,229,353 | $ | 3,763,758 |
| Electromechanical | 466,445 | 446,659 | 1,921,177 | 1,782,756 | ||||
| Consolidated net sales | $ | 1,625,667 | $ | 1,503,745 | $ | 6,150,530 | $ | 5,546,514 |
| Operating income: | ||||||||
| Segment operating income: | ||||||||
| Electronic Instruments | $ | 307,126 | $ | 279,531 | $ | 1,089,729 | $ | 958,183 |
| Electromechanical | 114,546 | 105,340 | 503,593 | 437,378 | ||||
| Total segment operating income | 421,672 | 384,871 | 1,593,322 | 1,395,561 | ||||
| Corporate administrative expenses | (23,582) | (23,720) | (92,630) | (86,891) | ||||
| Consolidated operating income | $ | 398,090 | $ | 361,151 | $ | 1,500,692 | $ | 1,308,670 |
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AMETEK, Inc.
Condensed Consolidated Balance Sheet
(In thousands)
| December 31, | December 31, | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | |||||||||
| (Unaudited) | ||||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 345,386 | $ | 346,772 | ||||||
| Receivables, net | 919,335 | 829,213 | ||||||||
| Inventories, net | 1,044,284 | 769,175 | ||||||||
| Other current assets | 219,053 | 183,605 | ||||||||
| Total current assets | 2,528,058 | 2,128,765 | ||||||||
| Property, plant and equipment, net | 635,641 | 617,138 | ||||||||
| Right of use asset, net | 170,295 | 169,924 | ||||||||
| Goodwill | 5,372,562 | 5,238,726 | ||||||||
| Other intangibles, investments and other assets | 3,724,564 | 3,743,634 | ||||||||
| Total assets | $ | 12,431,120 | $ | 11,898,187 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Short-term borrowings and current portion of long-term debt, net | $ | 226,079 | $ | 315,093 | ||||||
| Accounts payable and accruals | 1,338,123 | 1,248,221 | ||||||||
| Total current liabilities | 1,564,202 | 1,563,314 | ||||||||
| Long-term debt, net | 2,158,928 | 2,229,148 | ||||||||
| Deferred income taxes and other long-term liabilities | 1,231,478 | 1,233,841 | ||||||||
| Stockholders' equity | 7,476,512 | 6,871,884 | ||||||||
| Total liabilities and stockholders' equity | $ | 12,431,120 | $ | 11,898,187 | Page | 5 | ||||
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| AMETEK, Inc. | ||||||||||
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| Reconciliations of GAAP to Non-GAAP Financial Measures | ||||||||||
| (Unaudited) | Diluted Earnings Per Share | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||
| Three Months Ended | Year Ended | |||||||||
| December 31, | December 31, | |||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||
| Diluted earnings per share (GAAP) | $ | 1.33 | $ | 1.21 | $ | 5.01 | $ | 4.25 | ||
| Pretax amortization of acquisition-related intangible assets | 0.25 | 0.21 | 0.89 | 0.79 | ||||||
| Income tax benefit on amortization of acquisition-related intangible assets | (0.06) | (0.05) | (0.22) | (0.19) | ||||||
| Adjusted Diluted earnings per share (Non-GAAP) | $ | 1.52 | $ | 1.37 | $ | 5.68 | $ | 4.85 | ||
| Forecasted Diluted Earnings Per Share | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||
| Three Months Ended | Year Ended | |||||||||
| March 31, 2023 | December 31, 2023 | |||||||||
| Low | High | Low | High | |||||||
| Diluted earnings per share (GAAP) | $ | 1.21 | $ | 1.25 | $ | 5.18 | $ | 5.34 | ||
| Pretax amortization of acquisition-related intangible assets | 0.22 | 0.22 | 0.88 | 0.88 | ||||||
| Income tax benefit on amortization of acquisition-related intangible assets | (0.05) | (0.05) | (0.22) | (0.22) | ||||||
| Adjusted Diluted earnings per share (Non-GAAP) | $ | 1.38 | $ | 1.42 | $ | 5.84 | $ | 6.00 |
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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