Amphenol Corporation (NYSE:APH) Q3 2019 Earnings Conference Call - Final Transcript

Oct 23, 2019 • 01:00 pm ET


Amphenol Corporation (NYSE:APH) Q3 2019 Earnings Conference Call - Final Transcript


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Craig A. Lampo

approximately $135 million, to fund net capital expenditures of $71 million and fund dividend payments of $68 million.

During the quarter, the Company repurchased 1.7 million shares of common stock at an average price of approximately $88 under the $2 billion three-year open stock repurchase plan.

At September 30, cash and short-term investments were approximately $987 million, the majority of which is held outside of the US. As previously announced on September 4, the Company launched a $900 million US bond offering, which has a 10-year term and bears interest at 2.8%. In conjunction with the US senior note issuance on September 11, the Company also tendered $147 million of its $375 million [Indecipherable] US senior notes and $205 million of its $500 million 4% US senior notes.

The Company used the proceeds from the note issuance to fund the tender offer, with the remaining funds being used for general corporate purposes, including the repayment of a portion of the borrowings under the US commercial paper program. This issuance and tender offer further strengthened our capital structure by extending our average debt maturities by approximately two years, while keeping our average effective interest rate on outstanding borrowings unchanged. At September 30, after giving effect to the new bond offering, the Company had issued approximately $754 million under its US and Euro commercial paper programs.

The Company's cash and availability under our credit facilities totaled approximately $2.7 billion. Total debt at September 30 was approximately $3.9 billion and net debt was approximately $3 billion. The third quarter 2019 adjusted EBITDA was approximately $501 million.

In summary, this was a very strong quarter for the Company financially, especially in light of moderating demand and continued uncertainty across global markets.

I will now turn it over to Adam, who will provide an overview of the business and comment on current trends.

R. Adam Norwitt

Well, Craig, thank you very much, and I'd like to extend my welcome to all of you here on the phone today. Thanks so much for spending a few of your precious minutes with us today.

As Craig mentioned, I'm going to highlight some of our achievements in the third quarter, I'll then discuss the trends and progress across our served markets. Finally, I'll comment on our outlook for the fourth quarter and the full year 2019 and of course, we'll have some time for questions at the end.

Our results in the third quarter exceeded the high end of the Company's guidance in both sales and earnings per share and that was despite continued elevated levels of uncertainty in the marketplace. Sales declined by 1% in US dollars and were flat in local currencies, reaching $2 billion -- just over $2.1 billion. Sales in the quarter were down by 6% organically.

Company booked just under $2.1 billion in orders, representing a book-to-bill also just under 1:1. Adjusted diluted EPS in the quarter reached $0.95, which was down 4% from prior year, was $0.07 above the high end of our guidance that