AMETEK : Reconciliations of Non-GAAP Financial Measures 2024

AMETEK, Inc.

Reconciliations of Non-GAAP Financial Measures (Unaudited)

EBITDA

EBITDA represents earnings before interest, income taxes, depreciation and amortization. EBITDA is presented because the Company is aware that it is used by rating agencies, securities analysts, investors and other parties in evaluating the Company.

It should not be considered, however, as an alternative to operating income as an indicator of the Company's operating performance

or as an alternative to cash flows as a measure of the Company's overall liquidity as presented in the Company's consolidated financial statements. The table below presents the reconciliation of net income reported in accordance with U.S. GAAP to EBITDA.

	Three Months Ended			Year Ended December 31,
(In millions)		March 31, 2024			2023		2022			2021
Net income…………………………………………………………… $	310.9		$	1,313.2	$ 1,159.5	$	990.1
Add (deduct):
Interest expense……………………………………………………	35.3				81.8	83.2			80.4
Interest income……………………………………………………	(1.8)				(11.1)	(1.7)			(1.4)
Income taxes………………………………………………………	70.4				293.2	269.2			233.1
Depreciation…………………………………………………………	35.3				122.5	113.7			108.5
Amortization…………………………………………………………		62.7				215.1		205.8			183.6
EBITDA………………………………………………………………… $	512.8		$	2,014.7	$ 1,829.7	$	1,594.3
Add: Paragon integration costs……………………………………		29.2				-		-			-
Adjusted EBITDA…………………………………………………… $	542.0		$	2,014.7	$ 1,829.7	$	1,594.3

FREE CASH FLOW

Free cash flow represents cash flow from operating activities less capital expenditures. Free cash flow is presented because the Company is aware that it is used by rating agencies, securities analysts, investors and other parties in evaluating the Compa ny. (Also see EBITDA headnote above). The table below presents the reconciliation of cash flow from operating activities reporte d in accordance with U.S. GAAP to free cash flow.

	Three Months Ended			Year Ended December 31,
(In millions)		March 31, 2024			2023		2022		2021
Cash provided by operating activities……………………………… $	410.2		$	1,735.3	$ 1,149.4	$ 1,160.5
Deduct: Capital expenditures………………………………………		(27.6)				(136.2)		(139.0)		(110.7)
Free cash flow………………………………………………………… $	382.6		$	1,599.1	$ 1,010.4	$ 1,049.8

NET DEBT AS A PERCENTAGE OF CAPITALIZATION

Net debt represents total debt, net minus cash and cash equivalents. Net debt is presented because the Company is aware that it is used by rating agencies, securities analysts, investors and other parties in evaluating the Company. (Also see EBITDA headnote above). The table below presents the reconciliation of total debt, net reported in accordance with U.S. GAAP to net debt.

								December 31,
(In millions)		March 31, 2024			2023		2022		2021
Total debt, net………………………………………………………… $	2,933.2		$	3,313.3	$ 2,385.0		$ 2,544.2
Less: Cash and cash equivalents…………………………………		(373.8)				(409.8)		(345.4)		(346.8)
Net debt………………………………………………………………	2,559.4				2,903.5	2,039.6		2,197.4
Stockholders' equity…………………………………………………		8,968.2				8,730.2		7,476.5		6,871.9
Capitalization (net debt plus stockholders' equity)……………… $	11,527.6		$	11,633.7	$ 9,516.1		$ 9,069.3
Net debt as a percentage of capitalization…………………………	22.2%				25.0%	21.4%		24.2%

Reconciliations of GAAP to Non-GAAP Financial Measures

(In thousands, except per share amounts)

(Unaudited)

		2023			2022			2021			2020			2019			2018			2017			2016			2015 (1)			2014 (1)
EIG Segment operating income (GAAP)	$	1,310,962	$	1,089,729	$	958,183	$	770,620	$	865,307	$	782,144	$	671,646	$	571,077	$639,399	$612,992
Realignment costs		-			-			-			22,846			-			-			4,534			12,355			18,518			-
Indefinite-lived intangibles impairment		-			-			-			-			-			-			-			9,200			-			-
Zygo integration costs		-			-			-			-			-			-			-			-			-			18,877
Adjusted EIG Segment operating income (Non-GAAP)	$	1,310,962		$	1,089,729		$	958,183		$	793,466		$	865,307		$	782,144		$	676,180		$	592,632		$657,917		$631,869
EMG Segment operating income (GAAP)	$	496,569	$	503,593	$	437,378	$	324,962	$	387,931	$	363,765	$	306,779	$	274,234	$318,098	$335,046
Realignment costs		-			-			-			20,890			-			-			12,252			11,644			17,298			-
Indefinite-lived intangibles impairment		-			-			-			-			-			-			-			4,700			-			-
Adjusted EMG Segment operating income (Non-GAAP)	$	496,569		$	503,593		$	437,378		$	345,852		$	387,931		$	363,765		$	319,031		$	290,578		$335,396		$335,046
Operating income (GAAP)	$	1,707,459	$	1,500,692	$1,308,670	$	1,027,884	$	1,177,380	$1,075,540	$	903,620	$	790,979	$907,716	$898,586
Realignment costs		-			-			-			43,928			-			-			16,786			25,556			36,605			-
Charitable donations		-			-			-			-			-			-			5,000			-			-			-
Indefinite-lived intangibles impairment		-			-			-			-			-			-			-			13,900			-			-
Zygo integration costs		-			-			-			-			-			-			-			-			-			18,877
Adjusted Operating income (Non-GAAP)	$	1,707,459		$	1,500,692		$1,308,670		$	1,071,812		$	1,177,380		$1,075,540		$	925,406		$	830,435		$944,321		$917,463
Diluted earnings per share (GAAP)	$	5.67	$	5.01	$	4.25	$	3.77	$	3.75	$	3.34	$	2.94	$	2.19	$	2.45	$	2.37
Realignment costs		-			-			-			0.19			-			-			0.07			0.11			0.15			-
Income tax benefit on realignment costs		-			-			-			(0.04)			-			-			(0.02)			(0.04)			(0.05)			-
Charitable donations		-			-			-			-			-			-			0.02			-			-			-
Income tax benefit on charitable donations		-			-			-			-			-			-			(0.01)			-			-			-
Net deferred tax revaluation due to Tax Reform		-			-			-			-			-			(0.01)			(0.80)			-			-			-
Deemed repatriation of foreign earnings due to Tax Reform		-			-			-			-			-			(0.04)			0.41			-			-			-
Indefinite-lived intangibles impairment		-			-			-			-			-			-			-			0.06			-			-
Income tax benefit on indefinite-lived intangibles impairment		-			-			-			-			-			-			-			(0.02)			-			-
Zygo integration costs		-			-			-			-			-			-			-			-			-			0.07
Income tax benefit on Zygo integration costs		-			-			-			-			-			-			-			-			-			(0.02)
Gain from sale of Reading Alloys		-			-			-			(0.61)			-			-			-			-			-			-
Income tax charge on gain on sale of Reading Alloys		-			-			-			0.14			-			-			-			-			-			-
Pretax amortization of acquisition-related intangible assets		0.93			0.89			0.79			0.67			0.58			0.49			0.44			0.45			0.33			0.30
Income tax benefit on amortization of acquisition-related intangible assets		(0.22)			(0.22)			(0.19)			(0.16)			(0.14)			(0.12)			(0.15)			(0.16)			(0.11)			(0.10)
Rounding		-			-			-			(0.01)			-			-			-			-			-			-
Adjusted Diluted earnings per share (Non-GAAP)	$	6.38		$	5.68		$	4.85		$	3.95		$	4.19		$	3.66		$	2.90		$	2.59		$	2.77		$	2.62
EIG Segment operating margin (GAAP)		28.3%			25.8%			25.5%			25.8%			26.0%			25.8%			25.0%			24.2%			26.5%			25.3%
Realignment costs		-			-			-			0.7			-			-			0.1			0.5			0.7			-
Indefinite-lived intangibles impairment		-			-			-			-			-			-			-			0.4			-			-
Zygo integration costs		-			-			-			-			-			-			-			-			-			0.8
Adjusted EIG Segment operating margin (Non-GAAP)		28.3%			25.8%			25.5%			26.5%			26.0%			25.8%			25.1%			25.1%			27.2%			26.1%
EMG Segment operating margin (GAAP)		25.2%			26.2%			24.5%			21.0%			21.1%			20.0%			19.1%			18.5%			20.4%			20.9%
Realignment costs		-			-			-			1.3			-			-			0.8			0.8			1.1			-
Indefinite-lived intangibles impairment		-			-			-			-			-			-			-			0.3			-			-
Adjusted EMG Segment operating margin (Non-GAAP)		25.2%			26.2%			24.5%			22.3%			21.1%			20.0%			19.9%			19.6%			21.5%			20.9%
Operating income margin (GAAP)		25.9%			24.4%			23.6%			22.6%			22.8%			22.2%			21.0%			20.6%			22.8%			22.3%
Realignment costs		-			-			-			1.0			-			-			0.4			0.7			1.0			-
Charitable donations		-			-			-			-			-			-			0.1			-			-			-
Indefinite-lived intangibles impairment		-			-			-			-			-			-			-			0.3			-			-
Zygo integration costs		-			-			-			-			-			-			-			-			-			0.5
Adjusted Operating income margin (Non-GAAP)		25.9%			24.4%			23.6%			23.6%			22.8%			22.2%			21.5%			21.6%			23.8%			22.8%

(1) - Amounts do not include the adoption of ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.

AMETEK, Inc.

Reconciliations of GAAP to Non-GAAP Financial Measures

(Unaudited)

																							Diluted Earnings																										Forecasted Diluted Earnings
																							Per Share																											Per Share
																																															Three		Three Months Ended			Year Ended
					Three Months Ended						Year					Three Months Ended						Year					Three Months Ended						Year		Months Ended		June 30,				December 31,
	March 31,			June 30,			Sep. 30,			Dec. 31,			Ended	March 31,		June 30,			Sep. 30,			Dec. 31,			Ended		March 31,			June 30,			Sep. 30,			Dec. 31,			Ended		March 31,		Low			High			Low		High
		2021			2021			2021			2021			2021			2022			2022			2022			2022			2022			2023			2023			2023			2023			2023			2024			2024			2024			2024			2024
Diluted earnings per share (GAAP)	$	0.94	$	1.00	$	1.10	$	1.21	$	4.25		$	1.17	$	1.22	$	1.29	$	1.33	$	5.01		$	1.32	$	1.40	$	1.47	$	1.48	$	5.67	$	1.34		$	1.42	$	1.44	$	5.82		$	5.94
Pretax amortization of acquisition-related intangible
assets		0.17			0.20			0.21			0.21			0.79			0.21			0.21			0.21			0.25			0.89			0.22			0.22			0.22			0.26			0.93			0.27			0.27			0.27			1.08			1.08
Income tax benefit on amortization of acquisition-
related intangible assets		(0.04)			(0.05)			(0.05)			(0.05)			(0.19)			(0.05)			(0.05)			(0.05)			(0.06)			(0.22)			(0.05)			(0.05)			(0.05)			(0.06)			(0.22)			(0.06)			(0.06)			(0.06)			(0.26)			(0.26)
Paragon integration costs		-			-			-			-			-			-			-			-			-			-			-			-			-			-			-			0.13			-			-			0.13			0.13
Income tax benefit on Paragon integration costs		-			-			-			-			-			-			-			-			-			-			-			-			-			-			-			(0.03)			-			-			(0.03)			(0.03)
Rounding		-			-			-			-			-			-			-			-			-			-			-			-			-			-			-			(0.01)			-			-			-			-
Adjusted Diluted earnings per share (Non-GAAP)
$	1.07		$	1.15		$	1.26		$	1.37		$	4.85		$	1.33		$	1.38		$	1.45		$	1.52		$	5.68		$	1.49		$	1.57		$	1.64		$	1.68		$	6.38		$	1.64		$	1.63		$	1.65		$	6.74		$	6.86

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.