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8-K - FORM 8-K - TELEFLEX INC | c03697e8vk.htm |
Exhibit 99.1
Contact: | Jake Elguicze Vice President Investor Relations 610-948-2836 |
FOR IMMEDIATE RELEASE | July 22, 2010 |
TELEFLEX REPORTS SECOND QUARTER 2010 RESULTS
Second Quarter revenues up 5% as reported; core revenue up 7%
Second Quarter diluted adjusted EPS from Continuing Operations of $1.04 per share, up 4%
Second Quarter diluted GAAP EPS from Continuing Operations of $1.04 per share, up 27%
CFG Approval Received from FDA
Limerick, PA Teleflex Incorporated (NYSE: TFX) today announced financial results for the second
quarter and year to date ended June 27, 2010.
Financial Highlights
Second quarter 2010 net revenues increased 5% to $461.7 million from $439.2 million in the second quarter of 2009.
Core revenues for the quarter increased 7%, offset by foreign currency translation which negatively impacted sales 1%,
and the deconsolidation of an entity which negatively impacted sales 1%.
Second quarter 2010 GAAP income from continuing operations attributable to common shareholders increased 28% to $42.0
million, or $1.04 per diluted share, compared to $32.8 million, or $0.82 per diluted share in the prior year quarter.
On an adjusted basis, as detailed in the reconciliation tables below, second quarter 2010 income from continuing
operations increased 5% to $41.9 million, or $1.04 per diluted share, compared to $39.9 million, or $1.00 per diluted
share, in the prior year quarter.
Second quarter 2010 GAAP net income attributable to common shareholders was $60.1 million compared to $6.5 million in
the prior year quarter. These results included income from discontinued operations of $18.1 million in the second
quarter of 2010, and a loss from discontinued operations of $26.4 million in the prior year quarter.
Net revenues for the first six months of 2010 increased 3% to $882.9 million from $854.3 million in 2009. Core
revenues increased 3%, foreign currency translation increased sales 1%, while the disposition of a product line and the
deconsolidation of an entity, together, accounted for a 1% decline in revenues.
GAAP income from continuing operations attributable to common shareholders for the first six months of 2010 increased
37% to $76.9 million, or $1.91 per diluted share, compared to $56.0 million, or $1.40 per diluted share, in the first
six months of 2009. On an adjusted basis, as detailed in the reconciliation tables below, income from continuing
operations for the first six months of 2010 increased 16% to $77.2 million, or $1.92 per diluted share, compared to
$66.8 million, or $1.67 per diluted share, in the first six months of 2009.
GAAP net income attributable to common shareholders for the first six months of 2010 was $97.8 million compared to
$222.0 million in the first six months of 2009. These results included income from discontinued operations of $20.9
million in the first six months of 2010, and income from discontinued operations of $166.0 million in the first six
months of 2009.
GAAP cash flow from continuing operations for the first six months of 2010 was $100.2 million as compared to cash used
in continuing operations of $27.8 million in the first six months of 2009. On an adjusted basis as detailed in the
reconciliation tables below, cash flow from continuing operations for the first six months of 2010 was $80.4 million as
compared to $69.8 million in 2009.
In the third quarter of 2010, the Company began submitting requests for certificates to foreign governments, or CFGs,
to the FDA for review, and recently received approval on one of its requests. The Company believes that the FDAs
approval of the CFG is a clear indication that it has substantially corrected the quality system issues identified in
the corporate warning letter. The Company has now submitted all of its currently eligible CFG requests to the FDA for
review and currently anticipates receiving the FDAs approval with respect to most of these requests in the third
quarter of 2010.
The Company also announced organizational and leadership changes associated with its continued transition to a medical
technology business. The new structure and leadership are designed to support strategic and financial objectives for
the growth of the medical business globally.
The Company has consolidated its Corporate and Medical executive management teams to create a single Teleflex
Leadership Team reporting directly to Jeff Black, Chairman and Chief Executive Officer. Teleflex also announced that
the position of President, Teleflex Medical has been eliminated and Ernest Waaser will be leaving the Company. Mr.
Waaser, who held this position for four years, will remain with the company through a transition period.
In planning for this transition, Ernest and I recognized some time ago that the position of President, Teleflex
Medical would likely be eliminated, stated Black. Ernest and I have worked closely together over the last four years
to execute integration plans, complete FDA audits related to the corporate warning letter, and enhance our quality
systems and information systems infrastructure. I very much want to thank him for his efforts and wish him well in his
new endeavors.
Added Black, I am extremely pleased by the recent approval by the FDA of one of our CFG requests. Over the past few
years there has been a tremendous amount of work put into FDA remediation efforts, and although we do not expect this
CFG approval to have a material impact on revenues for the remainder of 2010, this is clearly a positive sign for our
future. Looking ahead, we have set clear long term strategic and financial goals for Teleflex and we believe that we
have significant opportunity to stimulate sales growth, leverage our global sales channels, expand in emerging markets,
and create innovative new products that serve our customers and their patients.
Second Quarter Business Segment Commentary
Medical Segment
Medical Segment revenues in the second quarter of 2010 were $358.4 million as compared to $358.3
million in the prior year period. Core revenue growth of 2% was offset by an unfavorable currency
impact of 1%, and impact of the deconsolidation of an entity of 1%. Core revenue increases in
respiratory, urology, anesthesia, cardiac care and specialty products sold to medical OEMs were
offset by a decline in surgical and vascular access sales. The decline in vascular access sales
was due to the voluntary recall of custom IV tubing product that was announced in February of 2010.
Medical Segment sales by product group were comprised of the following:
Three Months Ended | % Increase/ (Decrease) | |||||||||||||||||||
Core | Currency/ | Total | ||||||||||||||||||
June 27, 2010 | June 28, 2009 | Growth | Other* | Change | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Critical Care |
$ | 233.7 | $ | 230.9 | 2 | % | (1 | %) | 1 | % | ||||||||||
Surgical |
66.2 | 67.5 | (1 | %) | (1 | %) | (2 | %) | ||||||||||||
Cardiac Care |
18.8 | 19.3 | 1 | % | (4 | %) | (3 | %) | ||||||||||||
OEM |
39.0 | 37.7 | 4 | % | (1 | %) | 3 | % | ||||||||||||
Other* |
0.7 | 2.9 | 75 | % | (152 | %) | (77 | %) | ||||||||||||
Total net sales |
$ | 358.4 | $ | 358.3 | 2 | % | (2 | %) | | |||||||||||
* | Other represents the impact of the deconsolidation of a variable interest entity as a result of the adoption of Accounting Standards Codification topic 810 Consolidations. |
Segment operating profit and margins in the second quarter of 2010 were $73.5 million, or 20.5%,
compared to $77.8 million, or 21.7%, in the prior year quarter. Excluding the $0.5 million impact
of integration costs not qualified for restructuring, segment operating profit and margins in the
second quarter of 2009 were $78.3 million, or 21.8%, as noted in the reconciliation tables below.
Aerospace Segment
Aerospace Segment revenues in the second quarter of 2010 increased 30% to $48.0 million from $37.0
million in the prior year period. Increases in sales of wide-body cargo handling systems to OEMs,
actuation product, and cargo containers and cargo spares and repair sales, more than offset lower
sales of narrow-body cargo handling systems, resulting in a 32% increase in core revenue during the
quarter. This was somewhat offset by an unfavorable currency impact of 2%.
Segment operating profit and margins in the second quarter of 2010 were $7.6 million, or 15.8%,
compared to $1.0 million, or 2.8%, in the prior year quarter.
Commercial Segment
Commercial Segment revenues in the second quarter of 2010 increased 26% to $55.3 million from $44.0
million in the same period last year. Core revenue growth of 25% was the result of increased sales
of Marine OEM and aftermarket sales. Foreign currency was favorable by 1%.
Segment operating profit and margins in the second quarter of 2010 were $7.5 million, or 13.6%,
compared to $3.3 million, or 7.5%, in the prior year quarter.
Balance Sheet Highlights
Cash and cash equivalents on hand at June 27, 1010 was $287.1 million compared to $188.3 million at
December 31, 2009, up 52%.
Net accounts receivable at June 27, 1010 were $291.4 million compared to $265.3 million at December
31, 2009, up 10%. Excluding the $39.7 million impact of the adoption of the amendment to
Accounting Standards Codification topic 860 Transfers and Servicing (ASC 860), net accounts
receivable declined 5%.
Net inventory at June 27, 1010 was $337.4 million compared to $360.8 million at December 31, 2009,
a decline of 6%.
Net debt at June 27, 1010 was $882.5 million compared to $1,008.2 million at December 31, 2009, a
decline of 12%. Excluding the $39.7 million impact of ASC 860, net debt declined 16%.
Business Outlook for 2010
The Companys financial estimates for 2010 include total revenues of approximately $1.8 billion and
diluted earnings per share from continuing operations excluding special items in the range of $3.95
to $4.10. Cash flow from continuing operations, exclusive of the impact of the adoption of ASC
860, is expected to be in the range of $265 to $270 million. Restructuring and other special
charges related to the Arrow integration program are anticipated to be $0.05 per diluted share for
the year.
Conference Call Webcast and Additional Information
As previously announced, Teleflex will comment on its second quarter results on a conference call
to be held today at 4:30 p.m. (ET). The call will be available live and archived on the Companys
website at www.teleflex.com and the accompanying presentation will be posted prior to the call. An
audio replay will be available until July 29, 2010, 12:00pm (ET), by calling 888-286-8010
(U.S./Canada) or 617-801-6888 (International), Passcode: 80213544.
Additional Notes
Core revenue and growth include activity of a purchased company beyond the initial twelve months
after the date of acquisition. Core growth excludes the impact of translating the results of
international subsidiaries at different currency exchange rates from period to period, and the
activity of companies that have been divested within the most recent twelve month period.
Certain financial information is presented on a rounded basis, which may cause minor differences.
Segment operating profit includes a segments net revenues reduced by its materials, labor and
other product costs along with the segments selling, engineering and administrative expenses and
non-controlling interest. Unallocated corporate expenses, gains or losses on sales of assets,
restructuring and impairment charges, interest income and expense and taxes on income are excluded
from the measure.
Segment commentary excludes the impact of discontinued operations, items included in restructuring
and impairment charges, and losses and other charges as disclosed in the condensed consolidated
statements of income.
Notes on Non-GAAP Financial Measures
This press release includes financial measures which exclude the effect of charges associated with
our restructuring programs and asset impairments, charges related to the Arrow acquisition,
(gain)/loss on sale of assets and other charges, the impact of changes in accounting rules, an
income tax refund related to gains on a business divestiture, and intangible amortization expense.
Adjusted cash earnings per share from continuing operations is defined as adjusted earnings per
share from continuing operations plus intangible amortization expense. Management believes these
measures are useful to investors because they eliminate items that do not reflect Teleflexs
day-to-day operations. In addition, management uses these financial measures for internal
managerial purposes, when publicly providing guidance on possible future results, and to assist in
our evaluation of period-to-period comparisons. These financial measures are presented in addition
to results presented in accordance with GAAP and should not be relied upon as a substitute for GAAP
financial measures. Tables reconciling these non-GAAP measures to the most directly comparable GAAP
measures are set forth below.
Second Quarter and Year to Date Reconciliation of Adjusted Income and Earnings per Share from
Continuing Operations
Three Months | Three Months | |||||||
Ended | Ended | |||||||
June 27, 2010 | June 28, 2009 | |||||||
(Dollars in thousands, except per share) | ||||||||
Income and diluted earnings per share attributable
to common shareholders |
$ | 42,003 | $ | 32,834 | ||||
$ | 1.04 | $ | 0.82 | |||||
Restructuring and impairment charges |
75 | 12,894 | ||||||
Tax benefit |
(157 | ) | (1,844 | ) | ||||
Restructuring and impairment charges, net of tax |
(82 | ) | 11,050 | |||||
$ | 0.00 | $ | 0.28 | |||||
Losses and other charges (A) |
| 480 | ||||||
Tax benefit |
| (164 | ) | |||||
Losses and other charges net of tax |
| 316 | ||||||
$ | 0.01 | |||||||
Tax adjustments (B) |
| (4,305 | ) | |||||
| $ | (0.11 | ) | |||||
Income and diluted earnings per share excluding
restructuring and impairment charges, losses and
other charges, and tax adjustments |
$ | 41,921 | $ | 39,895 | ||||
$ | 1.04 | $ | 1.00 |
Three Months | Three Months | |||||||
Ended | Ended | |||||||
June 27, 2010 | June 28, 2009 | |||||||
(Dollars in thousands, except per share) | ||||||||
Income and diluted earnings
per share excluding
restructuring and impairment
charges, losses and other
charges, and tax adjustments |
$ | 41,921 | $ | 39,895 | ||||
$ | 1.04 | $ | 1.00 | |||||
Intangible amortization expense |
11,293 | 10,742 | ||||||
$ | 0.28 | $ | 0.27 | |||||
Cash income and diluted
earnings per share excluding
restructuring and impairment
charges, losses and other
charges, and tax adjustments |
$ | 53,214 | $ | 50,637 | ||||
$ | 1.32 | $ | 1.27 |
Six Months | Six Months | |||||||
Ended | Ended | |||||||
June 27, 2010 | June 28, 2009 | |||||||
(Dollars in thousands, except per share) | ||||||||
Income and diluted earnings per share attributable
to common shareholders |
$ | 76,936 | $ | 56,003 | ||||
$ | 1.91 | $ | 1.40 | |||||
Restructuring and impairment charges |
538 | 15,357 | ||||||
Tax benefit |
(272 | ) | (2,560 | ) | ||||
Restructuring and impairment charges, net of tax |
266 | 12,797 | ||||||
$ | 0.01 | $ | 0.32 | |||||
Losses and other charges (A) |
| 3,706 | ||||||
Tax benefit |
| (1,375 | ) | |||||
Losses and other charges net of tax |
| 2,331 | ||||||
$ | 0.06 | |||||||
Tax adjustments (B) |
| (4,305 | ) | |||||
| $ | (0.11 | ) | |||||
Income and diluted earnings per share excluding
restructuring and impairment charges, losses and
other charges, and tax adjustments |
$ | 77,202 | $ | 66,826 | ||||
$ | 1.92 | $ | 1.67 |
Six Months | Six Months | |||||||
Ended | Ended | |||||||
June 27, 2010 | June 28, 2009 | |||||||
(Dollars in thousands, except per share) | ||||||||
Income and diluted earnings
per share excluding
restructuring and impairment
charges, losses and other
charges, and tax adjustments |
$ | 77,202 | $ | 66,826 | ||||
$ | 1.92 | $ | 1.67 | |||||
Intangible amortization expense |
22,261 | 21,525 | ||||||
$ | 0.55 | $ | 0.54 | |||||
Cash income and diluted
earnings per share excluding
restructuring and impairment
charges, losses and other
charges, and tax adjustments |
$ | 99,463 | $ | 88,351 | ||||
$ | 2.47 | $ | 2.21 |
(A) | In 2009, losses and other charges principally related to the loss on sale of assets and restructuring related costs associated with the Arrow acquisition. | |
(B) | The tax adjustment represents a benefit from the net reduction in income tax reserves and discrete tax benefits related primarily to the resolution of various uncertain tax provisions; the settlement of tax audits; and other adjustments to taxes recorded with respect to prior years, principally resulting from changes to tax law and adjustments to previously filed income tax returns. |
Second Quarter and Year to Date Reconciliation of Adjusted Medical Segment Operating Profit and
Margin
Three Months Ended | Three Months Ended | |||||||
June 27, 2010 | June 28, 2009 | |||||||
(Dollars in thousands) | ||||||||
Medical Segment operating profit as reported |
$ | 73,467 | $ | 77,792 | ||||
Medical Segment operating margin as reported |
20.5 | % | 21.7 | % | ||||
Add: Integration costs not qualified for restructuring |
| 480 | ||||||
Adjusted Medical Segment operating profit |
$ | 73,467 | $ | 78,272 | ||||
Adjusted Medical Segment operation margin |
20.5 | % | 21.8 | % |
Six Months Ended | Six Months Ended | |||||||
June 27, 2010 | June 28, 2009 | |||||||
(Dollars in thousands) | ||||||||
Medical Segment operating profit as reported |
$ | 146,965 | $ | 147,204 | ||||
Medical Segment operating margin as reported |
20.9 | % | 21.2 | % | ||||
Add: Integration costs not qualified for restructuring |
| 1,109 | ||||||
Adjusted Medical Segment operating profit |
$ | 146,965 | $ | 148,313 | ||||
Adjusted Medical Segment operation margin |
20.9 | % | 21.4 | % |
Year to Date Reconciliation of Cash Flow from Operations
Six Months Ended | Six Months Ended | |||||||
June 27, 2010 | June 28, 2009 | |||||||
(Dollars in thousands) | ||||||||
Cash flow from operations as reported |
$ | 100,154 | $ | (27,755 | ) | |||
Add: Impact of the adoption of the amendment to
Accounting Standards Codification topic 860
Transfers and Servicing |
39,700 | | ||||||
Add: Tax payments on gain on sale of ATI business |
| 97,536 | ||||||
Less: Tax
refund on sale of ATI business |
59,499 | | ||||||
Adjusted cash flow from operations |
$ | 80,355 | $ | 69,781 | ||||
Net Debt Reconciliation
June 27, 2010 | December 31, 2009 | |||||||
(Dollars in thousands) | ||||||||
Note payable and current
portion of long-term
borrowings |
$ | 41,464 | $ | 4,008 | ||||
Long term borrowings |
1,128,200 | 1,192,491 | ||||||
Total debt |
1,169,664 | 1,196,499 | ||||||
Less: cash and cash equivalents |
287,129 | 188,305 | ||||||
Net Debt |
$ | 882,535 | $ | 1,008,194 | ||||
About Teleflex Incorporated
Teleflex is a global provider of medical technology products that enable healthcare providers to
improve patient outcomes, reduce infections and support patient and provider safety. Teleflex,
which employs approximately 12,600 people worldwide, also has niche businesses that serve segments
of the aerospace and commercial markets with specialty engineered products. Additional information
about Teleflex can be obtained from the Companys website at www.teleflex.com.
Caution Concerning Forward-looking Information
This press release contains forward-looking statements, including, but not limited to, statements
relating to our 2010 forecast of total revenues; forecasted diluted earnings per share from
continuing operations excluding special items; forecasted cash flow from continuing operations,
excluding the impact of Accounting Standards Codification Topic 860 Transfers and Servicing;
expected restructuring and other special charges related to the Arrow restructuring for 2010.
Actual results could differ materially from those in the forward-looking statements due to, among
other things, conditions in the end markets we serve, customer reaction to new products and
programs, our ability to achieve sales growth, price increases or cost reductions; changes in the
reimbursement practices of third party payors; our ability to realize efficiencies and to execute
on our strategic initiatives; changes in material costs and surcharges; market acceptance and
unanticipated difficulties in connection with the introduction of new products and product line
extensions; unanticipated difficulties in connection with the consolidation of manufacturing and
administrative functions; unanticipated difficulties, expenditures and delays in complying with
government regulations applicable to our businesses, including unanticipated costs and difficulties
in connection with the resolution of issues related to the FDA corporate warning letter issued to
Arrow; the impact of government healthcare reform legislation; our ability to meet our debt
obligations; changes in general and international economic conditions; and other factors described
in our filings with the Securities and Exchange Commission, including our Annual Report on Form
10-K.
TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended | ||||||||
June 27, | June 28, | |||||||
2010 | 2009 | |||||||
(Dollars and shares in thousands, | ||||||||
except per share) | ||||||||
Net revenues |
$ | 461,675 | $ | 439,237 | ||||
Cost of goods sold |
252,874 | 241,185 | ||||||
Gross profit |
208,801 | 198,052 | ||||||
Selling, general and administrative expenses |
118,506 | 117,614 | ||||||
Research and development expenses |
10,867 | 8,420 | ||||||
Goodwill impairment |
| 6,728 | ||||||
Restructuring and other impairment charges |
75 | 6,166 | ||||||
Income from continuing operations before interest and taxes |
79,353 | 59,124 | ||||||
Interest expense |
19,585 | 21,999 | ||||||
Interest income |
(176 | ) | (1,459 | ) | ||||
Income from continuing operations before taxes |
59,944 | 38,584 | ||||||
Taxes on income from continuing operations |
17,563 | 5,448 | ||||||
Income from continuing operations |
42,381 | 33,136 | ||||||
Operating income (loss) from discontinued operations
(including gain on disposal of $28,825 in 2010) |
30,476 | (25,104 | ) | |||||
Taxes on income from discontinued operations |
12,331 | 1,260 | ||||||
Income (loss) from discontinued operations |
18,145 | (26,364 | ) | |||||
Net income |
60,526 | 6,772 | ||||||
Less: Net income attributable to noncontrolling interest |
378 | 302 | ||||||
Net income attributable to common shareholders |
$ | 60,148 | $ | 6,470 | ||||
Earnings per share available to common shareholders: |
||||||||
Basic: |
||||||||
Income from continuing operations |
$ | 1.05 | $ | 0.83 | ||||
Income (loss) from discontinued operations |
$ | 0.45 | $ | (0.66 | ) | |||
Net income |
$ | 1.51 | $ | 0.16 | ||||
Diluted: |
||||||||
Income from continuing operations |
$ | 1.04 | $ | 0.82 | ||||
Income (loss) from discontinued operations |
$ | 0.45 | $ | (0.66 | ) | |||
Net income |
$ | 1.49 | $ | 0.16 | ||||
Dividends per share |
$ | 0.34 | $ | 0.34 | ||||
Weighted average common shares outstanding: |
||||||||
Basic |
39,913 | 39,717 | ||||||
Diluted |
40,356 | 39,921 | ||||||
Amounts attributable to common shareholders: |
||||||||
Income from continuing operations, net of tax |
$ | 42,003 | $ | 32,834 | ||||
Income (loss) from discontinued operations, net of tax |
18,145 | (26,364 | ) | |||||
Net income |
$ | 60,148 | $ | 6,470 | ||||
TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Six Months Ended | ||||||||
June 27, | June 28, | |||||||
2010 | 2009 | |||||||
(Dollars and shares in thousands, | ||||||||
except per share) | ||||||||
Net revenues |
$ | 882,874 | $ | 854,280 | ||||
Cost of goods sold |
479,724 | 471,897 | ||||||
Gross profit |
403,150 | 382,383 | ||||||
Selling, general and administrative expenses |
233,794 | 232,535 | ||||||
Research and development expenses |
20,427 | 15,985 | ||||||
Net loss on sales of businesses and assets |
| 2,597 | ||||||
Goodwill impairment |
| 6,728 | ||||||
Restructuring and other impairment charges |
538 | 8,629 | ||||||
Income from continuing operations before interest and taxes |
148,391 | 115,909 | ||||||
Interest expense |
38,619 | 47,396 | ||||||
Interest income |
(394 | ) | (1,668 | ) | ||||
Income from continuing operations before taxes |
110,166 | 70,181 | ||||||
Taxes on income from continuing operations |
32,566 | 13,640 | ||||||
Income from continuing operations |
77,600 | 56,541 | ||||||
Operating income from discontinued operations (including gain on disposal of
$38,562 in 2010 and $275,787 in 2009) |
41,301 | 278,386 | ||||||
Taxes on income from discontinued operations |
20,417 | 102,548 | ||||||
Income from discontinued operations |
20,884 | 175,838 | ||||||
Net income |
98,484 | 232,379 | ||||||
Less: Net income attributable to noncontrolling interest |
664 | 538 | ||||||
Income from discontinued operations attributable to noncontrolling interest |
| 9,860 | ||||||
Net income attributable to common shareholders |
$ | 97,820 | $ | 221,981 | ||||
Earnings per share available to common shareholders: |
||||||||
Basic: |
||||||||
Income from continuing operations |
$ | 1.93 | $ | 1.41 | ||||
Income from discontinued operations |
$ | 0.52 | $ | 4.18 | ||||
Net income |
$ | 2.45 | $ | 5.59 | ||||
Diluted: |
||||||||
Income from continuing operations |
$ | 1.91 | $ | 1.40 | ||||
Income from discontinued operations |
$ | 0.52 | $ | 4.16 | ||||
Net income |
$ | 2.43 | $ | 5.56 | ||||
Dividends per share |
$ | 0.68 | $ | 0.68 | ||||
Weighted average common shares outstanding: |
||||||||
Basic |
39,852 | 39,704 | ||||||
Diluted |
40,277 | 39,899 | ||||||
Amounts attributable to common shareholders: |
||||||||
Income from continuing operations, net of tax |
$ | 76,936 | $ | 56,003 | ||||
Income from discontinued operations, net of tax |
20,884 | 165,978 | ||||||
Net income |
$ | 97,820 | $ | 221,981 | ||||
TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 27, | December 31, | |||||||
2010 | 2009 | |||||||
(Dollars in thousands) | ||||||||
ASSETS |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | 287,129 | $ | 188,305 | ||||
Accounts receivable, net |
291,386 | 265,305 | ||||||
Inventories, net |
337,363 | 360,843 | ||||||
Prepaid expenses and other current assets |
21,277 | 21,872 | ||||||
Income taxes receivable |
34,418 | 100,733 | ||||||
Deferred tax assets |
55,774 | 58,010 | ||||||
Assets held for sale |
8,037 | 8,866 | ||||||
Total current assets |
1,035,384 | 1,003,934 | ||||||
Property, plant and equipment, net |
290,761 | 317,499 | ||||||
Goodwill |
1,409,197 | 1,459,441 | ||||||
Intangibles assets, net |
925,992 | 971,576 | ||||||
Investments in affiliates |
14,007 | 12,089 | ||||||
Deferred tax assets |
| 336 | ||||||
Other assets |
68,403 | 74,130 | ||||||
Total assets |
$ | 3,743,744 | $ | 3,839,005 | ||||
LIABILITIES AND EQUITY |
||||||||
Current liabilities |
||||||||
Current borrowings |
$ | 41,464 | $ | 4,008 | ||||
Accounts payable |
82,119 | 94,983 | ||||||
Accrued expenses |
76,414 | 97,274 | ||||||
Payroll and benefit-related liabilities |
66,732 | 70,537 | ||||||
Derivative liabilities |
15,108 | 16,709 | ||||||
Accrued interest |
21,330 | 22,901 | ||||||
Income taxes payable |
11,216 | 30,695 | ||||||
Deferred tax liabilities |
6,926 | | ||||||
Total current liabilities |
321,309 | 337,107 | ||||||
Long-term borrowings |
1,128,200 | 1,192,491 | ||||||
Deferred tax liabilities |
400,334 | 398,923 | ||||||
Pension and postretirement benefit
liabilities |
162,788 | 164,726 | ||||||
Other liabilities |
149,371 | 160,684 | ||||||
Total liabilities |
2,162,002 | 2,253,931 | ||||||
Commitments and contingencies |
||||||||
Total common shareholders equity |
1,577,232 | 1,580,241 | ||||||
Noncontrolling interest |
4,510 | 4,833 | ||||||
Total equity |
1,581,742 | 1,585,074 | ||||||
Total liabilities and equity |
$ | 3,743,744 | $ | 3,839,005 | ||||
TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended | ||||||||
June 27, 2010 | June 28, 2009 | |||||||
(Dollars in thousands) | ||||||||
Cash Flows from Operating Activities of Continuing Operations: |
||||||||
Net income |
$ | 98,484 | $ | 232,379 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating
activities: |
||||||||
Income from discontinued operations |
(20,884 | ) | (175,838 | ) | ||||
Depreciation expense |
24,444 | 27,573 | ||||||
Amortization expense of intangible assets |
22,261 | 21,525 | ||||||
Amortization expense of deferred financing costs |
1,890 | 3,610 | ||||||
Impairment of long-lived assets |
| 2,474 | ||||||
Impairment of goodwill |
| 6,728 | ||||||
Stock-based compensation |
4,901 | 4,000 | ||||||
Net loss on sales of businesses and assets |
| 2,597 | ||||||
Deferred income taxes, net |
23,120 | 27,141 | ||||||
Other |
427 | 2,932 | ||||||
Changes in operating assets and liabilities, net of effects of acquisitions and disposals: |
||||||||
Accounts receivable |
(56,797 | ) | 568 | |||||
Inventories |
(4,392 | ) | (11,228 | ) | ||||
Prepaid expenses and other current assets |
921 | 1,341 | ||||||
Accounts payable and accrued expenses |
(20,169 | ) | (31,260 | ) | ||||
Income taxes receivable and payable, net |
25,948 | (142,297 | ) | |||||
Net cash provided by (used in) operating activities from continuing operations |
100,154 | (27,755 | ) | |||||
Cash Flows from Investing Activities of Continuing Operations: |
||||||||
Expenditures for property, plant and equipment |
(15,315 | ) | (14,197 | ) | ||||
Proceeds from sales of businesses and assets, net of cash sold |
74,734 | 300,000 | ||||||
Payments for businesses and intangibles acquired, net of cash acquired |
(81 | ) | (541 | ) | ||||
Net cash provided by investing activities from continuing operations |
59,338 | 285,262 | ||||||
Cash Flows from Financing Activities of Continuing Operations: |
||||||||
Proceeds from long-term borrowings |
| 10,000 | ||||||
Reduction in long-term borrowings |
(64,170 | ) | (249,178 | ) | ||||
Increase (decrease) in notes payable and current borrowings |
39,700 | (651 | ) | |||||
Proceeds from stock compensation plans |
8,032 | 367 | ||||||
Payments to noncontrolling interest shareholders |
(637 | ) | (295 | ) | ||||
Dividends |
(27,120 | ) | (27,014 | ) | ||||
Net cash used in financing activities from continuing operations |
(44,195 | ) | (266,771 | ) | ||||
Cash Flows from Discontinued Operations: |
||||||||
Net cash (used in) provided by operating activities |
(680 | ) | 26,126 | |||||
Net cash used in investing activities |
(189 | ) | (1,984 | ) | ||||
Net cash used in financing activities |
| (11,075 | ) | |||||
Net cash (used in) provided by discontinued operations |
(869 | ) | 13,067 | |||||
Effect of exchange rate changes on cash and cash equivalents |
(15,604 | ) | 3,192 | |||||
Net increase in cash and cash equivalents |
98,824 | 6,995 | ||||||
Cash and cash equivalents at the beginning of the period |
188,305 | 107,275 | ||||||
Cash and cash equivalents at the end of the period |
$ | 287,129 | $ | 114,270 | ||||
Information about continuing operations by business segment is as follows:
Three Months Ended | ||||||||
June 27, | June 28, | |||||||
2010 | 2009 | |||||||
(Dollars in thousands) | ||||||||
Segment data: |
||||||||
Medical |
$ | 358,427 | $ | 358,278 | ||||
Aerospace |
47,995 | 36,961 | ||||||
Commercial |
55,253 | 43,998 | ||||||
Segment net revenues |
$ | 461,675 | $ | 439,237 | ||||
Medical |
$ | 73,467 | $ | 77,792 | ||||
Aerospace |
7,561 | 1,020 | ||||||
Commercial |
7,487 | 3,286 | ||||||
Segment operating profit |
88,515 | 82,098 | ||||||
Less: Corporate expenses |
9,465 | 10,382 | ||||||
Goodwill impairment |
| 6,728 | ||||||
Restructuring and impairment charges |
75 | 6,166 | ||||||
Noncontrolling interest |
(378 | ) | (302 | ) | ||||
Income from continuing operations before interest and taxes |
$ | 79,353 | $ | 59,124 | ||||
Six Months Ended | ||||||||
June 27, | June 28, | |||||||
2010 | 2009 | |||||||
(Dollars in thousands) | ||||||||
Segment data: |
||||||||
Medical |
$ | 701,964 | $ | 693,063 | ||||
Aerospace |
84,868 | 80,690 | ||||||
Commercial |
96,042 | 80,527 | ||||||
Segment net revenues |
$ | 882,874 | $ | 854,280 | ||||
Medical |
$ | 146,965 | $ | 147,204 | ||||
Aerospace |
9,305 | 4,057 | ||||||
Commercial |
9,461 | 3,636 | ||||||
Segment operating profit |
165,731 | 154,897 | ||||||
Less: Corporate expenses |
17,466 | 21,572 | ||||||
Net loss on sales of businesses and assets |
| 2,597 | ||||||
Goodwill impairment |
| 6,728 | ||||||
Restructuring and impairment charges |
538 | 8,629 | ||||||
Noncontrolling interest |
(664 | ) | (538 | ) | ||||
Income from continuing operations before interest and taxes |
$ | 148,391 | $ | 115,909 | ||||
###