Attached files

file filename
8-K - FORM 8-K - TELEFLEX INCc03697e8vk.htm
Exhibit 99.1
(IMAGE)
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 FDA’s 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 FDA’s 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 OEM’s 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 OEM’s, 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 Company’s 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 Company’s 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 segment’s net revenues reduced by its materials, labor and other product costs along with the segment’s 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 Teleflex’s 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 Company’s 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)
                 
    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)
                 
    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)
                 
    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)
                 
    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  
 
           
###