Amphenol Corporation (NYSE:APH) Q2 2019 Earnings Conference Call Transcript
Jul 24, 2019 • 01:00 pm ET
Craig A. Lampo
approximately $30 million, which compares to $26 million last year. And as discussed in our prior earnings call, this increase is due primarily to higher average interest rates as a result of the first quarter bond issuance and higher average debt levels.
The company's adjusted effective tax rate was approximately 24.5% for the second quarter of '19 compared to 25.5% in the second quarter of '18. The adjusted effective tax rate excludes the impact of the excess tax benefit associated with stock option exercises and the tax effect of acquisition-related costs incurred in both periods. The company's GAAP effective tax rate for the second quarter of '19 includes the items just mentioned -- including the items just mentioned was approximately 21.3% compared to 24.7% in the second quarter of 2018.
Adjusted net income was a strong 14% of sales in the second quarter of 2019. On a GAAP basis, diluted EPS grew 2% in the second quarter to $0.93 compared to $0.91 in the second quarter of 2018. And adjusted diluted EPS grew 2% to $0.92 in the second quarter of 2019 from $0.90 in the second quarter of 2018. Orders for the quarter were $2.019 billion which was flat compared to the second quarter of '18 resulting in a book-to-bill ratio of 1:1.
The company continues to be an excellent generator of cash. Cash flow from operations was $322 million in the second quarter or approximately 114% of adjusted net income. From a working capital standpoint, inventory, accounts received, receivable and accounts payable were approximately $1.3 billion, $1.7 billion and $815 million respectively at the end of June. And inventory days, days sales outstanding and payable days were 83, 75 and 53 days, respectively, all within the normal range.
The cash flow from operations of $322 million along with borrowings of $400 million from our commercial paper programs, proceeds from the exercise of stock options of $66 million and cash, cash equivalents and short-term investments on hand of approximately $10 million net of translation were used primarily to fund acquisitions of approximately $357 million, to repurchase approximately $249 million of the company's stock, to fund net capital expenditures of $74 million, to fund dividend payments of $69 million and to fund the purchase of minority interest related to a previous acquisition of $21 million.
During the quarter, the company repurchased 2.6 million shares of stock, at an average price of approximately $94. Under the $2 billion three-year open market stock repurchase plan. As mentioned in today's earnings release, the company's Board of Directors has approved a 9% increase in the quarterly dividend on the company's common stock from $0.23 to $0.25 per share. The increase is effective for payments beginning in October.
At June 30, cash and short-term investments were approximately $1 billion, the majority of which is held outside of the US. At June 30, the company had issued approximately $1.3 billion under its US and Euro commercial paper programs.
The company's cash and availability under our credit