TIDMMOL
Molex Incorporated (NASDAQ: MOLX) and (NASDAQ: MOLXA), a global
electronic components company, today reported results for its first
quarter ended September 30, 2013.
First Quarter Results
Three Months Ended
Sep 30, Jun 30, Sep 30,
USD millions, except per share data 2013 2013 2012
Net revenue $ 936.4 $ 882.9 $ 916.9
Net income 84.1 57.1 71.3
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.
Merger Agreement
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.
Forward-Looking Statements
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.
Molex Incorporated
Condensed Consolidated Balance Sheets
(in thousands)
Sep 30, Jun 30,
2013 2013
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 665,156 $ 711,561
Marketable securities 11,083 10,378
Accounts receivable, less allowances of 736,983 703,434
$41,376 and $40,855, respectively
Inventories 580,481 531,810
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
Goodwill 231,050 191,053
Non-current deferred income taxes 51,735 52,543
Other assets 187,034 185,282
Total assets $ 3,686,017 $ 3,586,854
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings and current $ 42,458 $ 54,283
portion of long-term debt
Accounts payable 354,565 347,700
Accrued expenses:
Salaries, commissions and bonuses 123,729 113,433
Other 144,866 127,652
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 74,431 76,275
postretirement benefits
Long-term debt 315,000 310,000
Total liabilities 1,096,584 1,063,691
Commitments and contingencies
Total stockholders' equity 2,589,433 2,523,163
Total liabilities and stockholders' equity $ 3,686,017 $ 3,586,854
Molex Incorporated
Condensed Consolidated Statements of Income
(Unaudited)
(in thousands, except per share data)
Three Months Ended
Sep 30,
2013 2012
Net revenue $ 936,367 $ 916,921
Cost of sales 633,816 648,504
Gross profit 302,551 268,417
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
Income taxes 34,298 31,807
Net income $ 84,079 $ 71,314
Earnings per share:
Basic $ 0.47 $ 0.40
Diluted $ 0.46 $ 0.40
Dividends declared per share $ 0.24 $ 0.22
Average common shares outstanding:
Basic 178,247 176,621
Diluted 181,545 178,564
Molex Incorporated
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
Three Months Ended
Sep 30,
2013 2012
Operating activities:
Net income $ 84,079 $ 71,314
Add (deduct) non-cash items
included in net income:
Depreciation and amortization 57,245 57,742
Share-based compensation 6,195 6,160
Other non-cash items (206 ) 3,767
Changes in assets and liabilities:
Accounts receivable (14,881 ) (7,903 )
Inventories (32,900 ) (28,902 )
Accounts payable (1,359 ) 49,569
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
Investing activities:
Capital expenditures (47,018 ) (69,413 )
Acquisitions (62,993 ) -
Proceeds from sales of property, 131 1,914
plant and equipment
Proceeds from sales or maturities 1,789 3,168
of marketable securities
Purchases of marketable securities (2,574 ) (4,099 )
Insurance proceeds and other (920 ) 9,722
investing activities
Cash used for investing activities (111,585 ) (58,708 )
Financing activities:
Proceeds from revolving credit facility, 63,510 10,000
short-term loans and debt
Payments on revolving credit facility, (70,557 ) (41,611 )
short-term loans and debt
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 (46,405 ) 48,555
cash and cash equivalents
Cash and cash equivalents, beginning of period 711,561 637,417
Cash and cash equivalents, end of period $ 665,156 $ 685,972
Molex IncorporatedSteve Martens, VP Investor
Relations630-527-4344
This information is provided by Business Wire
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