LISLE, Ill.--(BUSINESS WIRE)--
First Quarter Results
|Three Months Ended|
|Sep 30,||Jun 30,||Sep 30,|
USD millions, except per share data
|Earnings per share||0.46||0.32||0.40|
Net revenue for the September 2013 quarter was $936.4 million, an increase of 6.1% from the June 2013 quarter and an increase of 2.1% from the September 2012 quarter. In local currencies, net revenue increased 6.1% compared with the June 2013 quarter and 4.0% compared with the September 2012 quarter. Orders for the September 2013 quarter were $939.1 million, an increase of 6.7% from the June 2013 quarter and a decrease of 0.5% from the September 2012 quarter.
Net income for the September 2013 quarter was $84.1 million, an increase of 47.1% from the June 2013 quarter and an increase of 17.9% from the September 2012 quarter. Earnings per share was $0.46 for the September 2013 quarter, $0.32 for the June 2013 quarter and $0.40 for the September 2012 quarter. Net income for the September 2013 quarter was impacted by an after-tax charge of $5.4 million ($0.03 per share) for costs associated with the pending merger with Koch Industries.
“Continued improvement in our core markets drove solid sequential revenue growth during the September quarter, as we exceeded the top end of our guidance range for both revenue and earnings per share. The automotive, telecom and mobile devices markets were very strong during the quarter, and are areas where Molex has exceptional technology and a breadth of innovative product offerings,” commented Martin P. Slark, Chief Executive Officer. “Higher revenue, favorable product mix, lower material costs, and increased equipment utilization drove margins and earnings per share above expectation, despite merger-related expenses.”
Other financial highlights for the quarter ended September 30, 2013:
- Gross profit margin was 32.3%, compared with 29.1% in the June 2013 quarter and 29.3% in the September 2012 quarter.
- SG&A expense was $179.4 million, compared with $174.0 million in the June 2013 quarter and $163.1 million in the September 2012 quarter. The current quarter includes $8.0 million of pre-tax costs associated with the pending merger. Excluding the merger-related costs, SG&A expense would be $171.4 million or 18.3% of revenue.
- Backlog was $471.6 million, an increase of 4.2% from the June 2013 quarter and an increase of 5.9% from the September 2012 quarter.
- The book-to-bill ratio was 1 to 1 compared with 1 to 1 for the June 2013 quarter and 1.03 to 1 for the September 2012 quarter.
- Capital expenditures were $47.0 million or 5.0% of revenue.
- Inventory days outstanding was 88 days compared with 84 days in the June 2013 quarter and 84 days in the September 2012 quarter.
- Accounts receivable days outstanding was 68 days compared with 69 days in the June 2013 quarter and 69 days in the September 2012 quarter.
- The effective tax rate was 29.0%, which included a $1.2 million benefit due to the release of a valuation reserve resulting from improved operating performance.
On September 9, 2013, the Company entered into an Agreement and Plan of Merger (Merger Agreement) with Koch Industries, Inc. which, if completed, will result in Molex stockholders receiving $38.50 per share in cash or a total purchase price of approximately $7.2 billion. Final consideration will also include a dividend adjustment amount.
The transaction is subject to customary closing conditions, approval by the holders of a majority of common voting shares (Common Stock and Class B Common Stock, voting separately as a class) and regulatory approvals, but is not subject to any condition with regard to the financing of the transaction. Additional details are included in the Company’s 2013 Proxy Statement.
The Annual Meeting of Stockholders has been scheduled for November 15, 2013, and regulatory approvals are pending with the following jurisdictions: the European Union, China, Israel, Japan, Mexico, South Korea, Turkey and Ukraine.
Earnings Conference Call Information
A conference call will be held on Wednesday, October 23, 2013 at 8:30 a.m. central time. Please dial (888) 680-0865 to participate in the call. International callers should dial (617) 213-4853. Please dial in at least five minutes prior to the start of the call and refer to participant pass code 94153617. Internet users will be able to access the webcast, including slide materials, live and in replay in the “Investors” section of the Company’s website at www.molex.com. A 48-hour telephone replay will be available at approximately 10:30 a.m. central time at (888) 286-8010 or (617) 801-6888 / pass code 49270509.
Statements in this release that are not historical are forward-looking and are subject to various risks and uncertainties that could cause actual results to vary materially from those stated. Words such as “expect,” “anticipate,” “outlook,” “forecast,” “could,” “project,” “intend,” “plan,” “continue,” “believe,” “seek,” “estimate,” “should,” “may,” “assume,” “potential,” variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are based on currently available information. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Respective risks, uncertainties and assumptions that could affect the outcome or results of operations are described in Part 1, Item 1A of our Annual Report on Form 10-K for the year ended June 30, 2013, which is incorporated by reference and in other reports that Molex files or furnishes with the Securities and Exchange Commission. Among other risks and uncertainties, there can be no guarantee that the pending merger with Koch Industries, Inc. will be completed, or if it is completed, the time frame in which it will be completed. The pending merger is subject to the satisfaction of certain conditions contained in the Merger Agreement. Pursuing the pending merger could disrupt certain of our current plans, operations, business, and employee relationships. We have based our forward-looking statements on our management’s beliefs and assumptions based on information available to management at the time the statements are made. We caution you that actual outcomes and results may differ materially from what is expressed, implied, or forecast by our forward-looking statements. Reference is made in particular to forward-looking statements regarding growth strategies, industry trends, global economic conditions, success of customers, cost of raw materials, value of inventory, currency exchange rates, labor costs, protection of intellectual property, cost reduction initiatives, acquisition synergies, manufacturing strategies, product development introduction and sales, regulatory changes, competitive strengths, natural disasters, unauthorized access to data, government investigations and outcomes of legal proceedings. Except as required under the federal securities laws, we do not have any intention or obligation to update publicly any forward-looking statements after the distribution of this report, whether as a result of new information, future events, changes in assumptions, or otherwise.
Molex Incorporated is a 75-year-old global manufacturer of electronic, electrical and fiber optic interconnection systems. Based in Lisle, Illinois, USA, the Company operates 45 manufacturing locations in 17 countries. The Molex website is www.molex.com.
Editor’s note: Molex is traded on the NASDAQ Global Select Market (MOLX and MOLXA) in the United States and on the London Stock Exchange (MOL, MOLA). The Company’s voting common stock (MOLX) is included in the S&P 500 Index.
Condensed Consolidated Balance Sheets
|Sep 30,||Jun 30,|
|Cash and cash equivalents||$||665,156||$||711,561|
|Accounts receivable, less allowances of $41,376 and $40,855, respectively||736,983||703,434|
|Deferred income taxes||54,100||54,163|
|Other current assets||39,901||32,538|
|Total current assets||2,087,704||2,043,884|
|Property, plant and equipment, net||1,128,494||1,114,092|
|Non-current deferred income taxes||51,735||52,543|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|Short-term borrowings and current portion of long-term debt||$||42,458||$||54,283|
|Salaries, commissions and bonuses||123,729||113,433|
|Income taxes payable||20,833||15,966|
|Total current liabilities||686,451||659,034|
|Other non-current liabilities||20,702||18,382|
|Accrued pension and other postretirement benefits||74,431||76,275|
|Commitments and contingencies|
|Total stockholders’ equity||2,589,433||2,523,163|
|Total liabilities and stockholders’ equity||$||3,686,017||$||3,586,854|
Condensed Consolidated Statements of Income
|(in thousands, except per share data)|
|Three Months Ended|
|Cost of sales||633,816||648,504|
|Selling, general and administrative||179,429||163,121|
|Unauthorized activities in Japan||-||2,561|
|Total operating expenses||179,429||165,682|
|Income from operations||123,122||102,735|
|Interest expense, net||(1,827||)||(810||)|
|Other (expense) income, net||(2,918||)||1,196|
|Total other (expense) income, net||(4,745||)||386|
|Income before income taxes||118,377||103,121|
|Earnings per share:|
|Dividends declared per share||$||0.24||$||0.22|
|Average common shares outstanding:|
Condensed Consolidated Statements of Cash Flows
|Three Months Ended|
|Add (deduct) non-cash items included in net income:|
|Depreciation and amortization||57,245||57,742|
|Other non-cash items||(206||)||3,767|
|Changes in assets and liabilities:|
|Other current assets and liabilities||10,521||4,326|
|Other assets and liabilities||(9,843||)||11,331|
|Cash provided from operating activities||98,851||167,404|
|Proceeds from sales of property, plant and equipment||131||1,914|
|Proceeds from sales or maturities of marketable securities||1,789||3,168|
|Purchases of marketable securities||(2,574||)||(4,099||)|
|Insurance proceeds and other investing activities||(920||)||9,722|
|Cash used for investing activities||(111,585||)||(58,708||)|
|Proceeds from revolving credit facility, short-term loans and debt||63,510||10,000|
|Payments on revolving credit facility, short-term loans and debt||(70,557||)||(41,611||)|
|Cash dividends paid||(42,723||)||(38,827||)|
|Exercise of stock options||7,680||1,715|
|Other financing activities||(1,112||)||(1,026||)|
|Cash used for financing activities||(43,202||)||(69,749||)|
|Effect of exchange rate changes on cash||9,531||9,608|
|Net (decrease) increase in cash and cash equivalents||(46,405||)||48,555|
|Cash and cash equivalents, beginning of period||711,561||637,417|
|Cash and cash equivalents, end of period||$||665,156||$||685,972|
- Investment & Company Information
- Earnings per share
Steve Martens, VP Investor Relations