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8-K - FORM 8-K - TELEFLEX INC | c15983e8vk.htm |
Exhibit 99.1
Contact:
|
Jake Elguicze | |
Vice President Investor Relations | ||
610-948-2836 |
FOR IMMEDIATE RELEASE
|
April 26, 2011 |
TELEFLEX REPORTS FIRST QUARTER 2011 RESULTS
Revenue from continuing operations of $388.7 million up 6% as reported and on a constant currency basis
GAAP diluted earnings per share from continuing operations of $0.42; $0.96 on an adjusted basis
Limerick, PA Teleflex Incorporated (NYSE: TFX), a leading, global provider of medical technology
products, today reported financial results for the three months ended March 27, 2011.
First quarter 2011 net revenues were $388.7 million, an increase of 6% over the prior year period.
Excluding the impact of foreign exchange, first quarter 2011 net revenues increased 6% over the
prior year period.
First quarter 2011 GAAP diluted earnings per share from continuing operations was $0.42, a decrease
of 49% over the prior year period. First quarter 2011 adjusted diluted earnings per share from
continuing operations (previously referred to as adjusted diluted cash earnings per share from
continuing operations) was $0.96, a decrease of 5% over the prior year period.
In the first quarter, our team made significant progress towards completing our transition to a
global medical technology leader and executing on our strategic plan, said Benson Smith, Chairman,
President & CEO. We completed several transactions that allow us to redeploy resources to our
core medical business, while exiting non-medical segments and reducing debt. At the same time, we
increased the year over year revenue growth rate within our medical business and intend to build on
the first quarter momentum during the remainder of the year.
Added Mr. Smith, During the quarter, we enhanced our competitive position in the medical business
by acquiring the VasoNova VPS vascular positioning system, a central venous catheter tip
navigation system. In March, VasoNova received 510(k) clearance from the FDA for expanded use of
the VPS tip location technology as an alternative to chest x-ray or fluoroscopy in adult patients
during peripherally inserted central catheter procedures. This unique confirmation technology
eliminates the need for costly X-rays and revision procedures, which we believe is an important
advance in the evolution of vascular access. In addition, during the quarter, we received 510(k)
clearance from the FDA for our Arrow® NextStep Antegrade Chronic Hemodialysis catheter, which is
designed to attain long term vascular access for hemodialysis and apheresis.
We also reached several agreements that position us for increased medical product revenue growth
as the year progresses, continued Mr. Smith. For example, we expanded our vascular access
product offerings with a global distribution agreement for POLYSITE® intravenous implantable
infusion ports. In addition, we were awarded three new group purchasing organization (GPO)
contracts and received two GPO contract extensions for a combination of vascular access, surgical,
respiratory and anesthesia products. At the same time, we continue to focus resources on medical
product R&D and acquiring unique technologies in order to drive future introduction of new,
differentiated products designed to expand market share, increase growth opportunities and build
shareholder returns.
BUSINESS SEGMENT RESULTS
Medical Segment
First quarter 2011 net revenues were $354.0 million, an increase of 3% over the prior year period
on an as reported and on a constant currency basis.
Critical Care first quarter 2011 net revenues were $237.1 million, an increase of 5% on both a
reported and constant currency basis over the prior year period. The increase in revenue was due
to higher sales of vascular access, respiratory and urology products.
Surgical Care first quarter 2011 net revenues were $65.0 million, an increase of 3% on both a
reported and constant currency basis over the prior year period. The increase in revenue was due
to higher sales of ligation, closure and chest drainage products.
Cardiac Care first quarter 2011 net revenues were $17.7 million, a decrease of 3% over the prior
year period. Excluding the impact of foreign exchange, first quarter 2011 net revenues decreased
4% over the prior year period. The decrease in revenue was due to the voluntary recall of the 5800
series intra-aortic balloon catheters that was announced in December of 2010.
OEM and Development Services first quarter 2011 net revenues were $33.9 million, a decrease of 4%
on both a reported and constant currency basis over the prior year period. The decrease in revenue
was due to lower sales of specialty products.
Three Months Ended | % Increase/ (Decrease) | |||||||||||||||||||
Constant | Foreign | Total | ||||||||||||||||||
March 27, 2011 | March 28, 2010 | Currency | Currency | Change | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Critical Care |
$ | 237.1 | $ | 225.9 | 5 | % | | 5 | % | |||||||||||
Surgical Care |
65.0 | 63.1 | 3 | % | | 3 | % | |||||||||||||
Cardiac Care |
17.7 | 18.3 | (4 | %) | 1 | % | (3 | %) | ||||||||||||
OEM |
33.9 | 35.3 | (4 | %) | | (4 | %) | |||||||||||||
Other |
0.3 | 0.9 | (67 | %) | | (67 | %) | |||||||||||||
Total |
$ | 354.0 | $ | 343.5 | 3 | % | | 3 | % | |||||||||||
Non-Core Assets
First quarter 2011 net revenues were $34.7 million, an increase of 46% over the prior year period.
Excluding the impact of foreign exchange, first quarter 2011 net revenues increased 42% over the
prior year period. The increase in revenue was due to higher sales of cargo spares and repairs
products.
BALANCE SHEET HIGHLIGHTS
Cash and cash equivalents at March 27, 2011 were $202.3 million compared to $208.5 million at
December 31, 2010, a decrease of 3%.
Net accounts receivable at March 27, 2011 were $289.8 million compared to $294.2 million at
December 31, 2010, a decrease of 1%.
Net inventories at March 27, 2011 were $319.9 million compared to $338.6 million at December 31,
2010, a decrease of 6%.
Net debt obligations at March 27, 2011 were $727.4 million compared to $788.6 million at December
31, 2010, a decrease of 8%.
2011 OUTLOOK
In the first quarter of 2011, management approved a plan to sell the Companys Aerospace
businesses. The Company has begun actively marketing the cargo container business, while it
continues to serve its customers and provide appropriate transition. For financial statement
purposes, the assets, liabilities, results of operations and cash flows of this business have been
segregated from those of continuing operations and are presented in the Companys condensed
consolidated financial statements as discontinued operations. The accompanying condensed
consolidated financial statements have been reclassified to reflect this presentation.
The cargo container business was expected to contribute annual revenue, adjusted earnings per
share, and cash flow from operations of $50 million, $0.05 per diluted share, and $5 million,
respectively. As a result, the Company is adjusting its financial estimates with respect to
forecasted 2011 revenue from a range of $1.625 billion to $1.655 billion to a range of $1.575
billion to $1.605 billion; adjusted earnings per share from a range of $4.50 to $4.70 to a range of
$4.45 to $4.65; and cash flow from continuing operations from $230 million to $225 million.
2011 Outlook earnings per share reconciliation
Low | High | |||||||
Diluted earnings per share attributable to common shareholders |
$ | 3.15 | $ | 3.35 | ||||
Special items, net of tax |
$ | 0.45 | $ | 0.45 | ||||
Intangible amortization expense, net of tax |
$ | 0.70 | $ | 0.70 | ||||
Amortization of debt discount on convertible notes, net of tax |
$ | 0.15 | $ | 0.15 | ||||
Adjusted diluted earnings per share1 |
$ | 4.45 | $ | 4.65 | ||||
(1) | This measure was previously referred to as adjusted diluted cash earnings per share. |
LONGER-TERM GROWTH AND PROFITABILITY OBJECTIVES
With the portfolio transition to healthcare largely complete, we have increased our focus on
delivering long-term growth and profitability. As such, we are targeting the achievement of the
following objectives within the next five years:
| Consolidated revenue growth of approximately 5% | ||
| Consolidated gross margins of approximately 55% |
| Consolidated research and development expense of approximately 5% | ||
| Consolidated operating margins of approximately 25% | ||
| Return on equity of approximately 15% |
We believe revenue growth will be achieved through the introduction of new products and product
line extensions, expansion of our geographic reach, leveraging our existing distribution channels,
further investment in our global sales and marketing groups and select acquisitions that enhance or
expedite our development initiatives and our ability to increase our market share. We anticipate
that margin expansion will be achieved through various initiatives which may include: consolidation
of distribution facilities; efficiencies gained from the reduction of third-party vendors;
consolidation and productivity improvements of manufacturing locations and customer service; and
further initiatives to realize increased efficiencies with respect to general and administrative
expenses. We expect that some of these benefits to be offset by increases in spending in research
and development.
CONFERENCE CALL WEBCAST AND ADDITIONAL INFORMATION
As previously announced, Teleflex will comment on its first quarter 2011 results on a conference
call to be held today at 8:00 a.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 May 3, 2011, 12:00pm (ET), by calling
888-286-8010 (U.S./Canada) or 617-801-6888 (International), Passcode: 32439030.
ADDITIONAL NOTES
Constant currency revenue and growth exclude the impact of translating the results of international
subsidiaries at different currency exchange rates from period to period. Constant currency revenue
and growth include activity of a purchased company beyond the initial twelve months after the date
of acquisition.
Certain financial information is presented on a rounded basis, which may cause minor differences.
Segment results and commentary exclude the impact of discontinued operations, items included in
restructuring and impairment charges, and losses and other charges set forth in the condensed
consolidated statements of income.
NOTES ON NON-GAAP FINANCIAL MEASURES
This press release includes certain non-GAAP financial measures. These measures include adjusted
diluted earnings per share (previously referred to as adjusted diluted cash earnings per share),
which excludes the effect of charges associated with our restructuring programs and asset
impairments, losses and other charges related to refinancing transactions, costs associated with
severance payments and benefits to be provided to our former chief executive officer, intangible
amortization expense and the amortization of debt discount on convertible notes; and constant
currency revenue and growth, which exclude the impact of translating the results of international
subsidiaries at different currency exchange rates from period to period. Consistent with past
practice, adjusted diluted earnings per share has not been adjusted to exclude the benefit
resulting from the forfeiture of equity awards. 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.
RECONCILIATION OF INCOME FROM CONTINUING OPERATIONS
Three Months Ended | Three Months Ended | |||||||
March 27, 2011 | March 28, 2010 | |||||||
(Dollars in thousands, except per share) | ||||||||
Income and diluted earnings per share attributable to common shareholders |
$ | 17,118 | $ | 33,234 | ||||
Restructuring and impairment charges |
595 | 463 | ||||||
Tax benefit |
(225 | ) | (115 | ) | ||||
Restructuring and impairment charges, net of tax |
370 | 348 | ||||||
$ | 0.01 | $ | 0.01 | |||||
Losses and other charges (A) |
20,097 | | ||||||
Tax benefit |
(7,304 | ) | | |||||
Losses and other charges, net of tax |
12,793 | | ||||||
$ | 0.32 | | ||||||
Amortization of debt discount on convertible notes |
2,363 | | ||||||
Tax benefit |
(862 | ) | | |||||
Amortization of debt discount on convertible notes, net of tax |
1,501 | | ||||||
$ | 0.04 | | ||||||
Intangible amortization expense |
11,220 | 10,732 | ||||||
Tax benefit |
(4,094 | ) | (3,901 | ) | ||||
Intangible amortization expense, net of tax |
7,126 | 6,831 | ||||||
$ | 0.18 | $ | 0.17 | |||||
Adjusted income and diluted earnings per share |
$ | 38,908 | $ | 40,413 | ||||
$ | 0.96 | $ | 1.01 |
(A) | In 2011, losses and other charges include approximately $9.3 million, net of tax, or $0.23 per share, related to the prepayment of Teleflexs outstanding senior notes issued in 2004, and related transaction fees and expenses; and approximately $3.5 million, net of tax, or $0.09 per share, in charges related to severance payments and benefits to be provided to our former chief executive officer. |
RECONCILIATION OF CASH FLOW FROM OPERATIONS
Three Months Ended | Three Months Ended | |||||||
March 27, 2011 | March 28, 2010 | |||||||
(Dollars in thousands) | ||||||||
Cash flow from operations as reported |
$ | 14,062 | $ | 34,377 | ||||
Add: Impact of the adoption of the
amendment to Accounting Standards
Codification topic 860 Transfers and
Servicing |
| 39,700 | ||||||
Less: Tax refund on sale of ATI business |
| 49,418 | ||||||
Adjusted cash flow from operations |
$ | 14,062 | $ | 24,659 | ||||
RECONCILIATION OF NET DEBT OBLIGATIONS
March 27, 2011 | December 31, 2010 | |||||||
(Dollars in thousands) | ||||||||
Note payable and current
portion of long-term
borrowings |
$ | 29,700 | $ | 103,711 | ||||
Long term borrowings |
822,473 | 813,409 | ||||||
Unamortized debt discount |
77,527 | 79,891 | ||||||
Total debt obligations |
929,700 | 997,011 | ||||||
Less: cash and cash equivalents |
202,298 | 208,452 | ||||||
Net debt obligations |
$ | 727,402 | $ | 788,559 | ||||
ABOUT TELEFLEX INCORPORATED
Teleflex is a leading global provider of specialty medical devices for a range of procedures in
critical care and surgery. Our mission is to provide solutions that enable healthcare providers to
improve outcomes and enhance patient and provider safety. Headquartered in Limerick, PA, Teleflex
employs approximately 12,000 people worldwide and serves healthcare providers in more than 130
countries. The company also has niche businesses which produce specialty engineered products for
the aerospace market. For additional information about Teleflex please refer to
www.teleflex.com.
CAUTION CONCERNING FORWARD-LOOKING INFORMATION
This press release contains forward-looking statements, including, but not limited to, statements
relating to forecasted 2011 total revenue and adjusted earnings per share; our longer-term growth
and profitability objectives with respect to consolidated annual organic revenue growth,
consolidated gross margins, consolidated research and development expense and consolidated
operating margins; our expectations that revenue growth will be achieved through the introduction
of new products and product line extensions, expansion of our geographic reach, leveraging our
existing distribution channels, further investment in our global sales and marketing groups and
select acquisitions that enhance or expedite our development initiatives and our ability to
increase our market share; our anticipation that margin expansion will be achieved through various
initiatives
which may include: consolidation of distribution facilities; efficiencies gained from the reduction
of third-party vendors; consolidation and productivity improvements of manufacturing locations and
customer service; and further initiatives to realize increased efficiencies with respect to general
and administrative expenses; and our expectation that increased spending in research and
development will offset some of the benefits we expect to achieve. 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; product recalls;
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 | ||||||||
March 27, | March 28, | |||||||
2011 | 2010 | |||||||
(Dollars and shares in thousands, | ||||||||
except per share) | ||||||||
Net revenues |
$ | 388,658 | $ | 367,332 | ||||
Cost of goods sold |
212,620 | 190,435 | ||||||
Gross profit |
176,038 | 176,897 | ||||||
Selling, general and administrative expenses |
109,831 | 100,568 | ||||||
Research and development expenses |
11,038 | 9,311 | ||||||
Restructuring and other impairment charges |
595 | 463 | ||||||
Income from continuing operations before interest, loss
on extinguishments of debt and taxes |
54,574 | 66,555 | ||||||
Interest expense |
16,157 | 18,994 | ||||||
Interest income |
(106 | ) | (206 | ) | ||||
Loss on extinguishments of debt |
14,597 | | ||||||
Income from continuing operations before taxes |
23,926 | 47,767 | ||||||
Taxes on income from continuing operations |
6,426 | 14,247 | ||||||
Income from continuing operations |
17,500 | 33,520 | ||||||
Operating income from discontinued operations
(including gain on disposal of $56,773 and $9,737,
respectively) |
58,857 | 13,280 | ||||||
Taxes (benefit) on income from discontinued operations |
(1,837 | ) | 8,842 | |||||
Income from discontinued operations |
60,694 | 4,438 | ||||||
Net income |
78,194 | 37,958 | ||||||
Less: Net income attributable to noncontrolling interest |
382 | 286 | ||||||
Net income attributable to common shareholders |
$ | 77,812 | $ | 37,672 | ||||
Earnings per share available to common shareholders: |
||||||||
Basic: |
||||||||
Income from continuing operations |
$ | 0.43 | $ | 0.84 | ||||
Income from discontinued operations |
$ | 1.52 | $ | 0.11 | ||||
Net income |
$ | 1.94 | $ | 0.95 | ||||
Diluted: |
||||||||
Income from continuing operations |
$ | 0.42 | $ | 0.83 | ||||
Income from discontinued operations |
$ | 1.50 | $ | 0.11 | ||||
Net income |
$ | 1.92 | $ | 0.94 | ||||
Dividends per share |
$ | 0.34 | $ | 0.34 | ||||
Weighted average common shares outstanding: |
||||||||
Basic |
40,057 | 39,791 | ||||||
Diluted |
40,424 | 40,199 | ||||||
Amounts attributable to common shareholders: |
||||||||
Income from continuing operations, net of tax |
$ | 17,118 | $ | 33,234 | ||||
Income from discontinued operations, net of tax |
60,694 | 4,438 | ||||||
Net income |
$ | 77,812 | $ | 37,672 | ||||
TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 27, | December 31, | |||||||
2011 | 2010 | |||||||
(Dollars in thousands) | ||||||||
ASSETS |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | 202,298 | $ | 208,452 | ||||
Accounts receivable, net |
289,788 | 294,196 | ||||||
Inventories, net |
319,905 | 338,598 | ||||||
Prepaid expenses and other current assets |
29,019 | 28,831 | ||||||
Income taxes receivable |
10,392 | 3,888 | ||||||
Deferred tax assets |
34,351 | 39,309 | ||||||
Assets held for sale |
40,165 | 7,959 | ||||||
Total current assets |
925,918 | 921,233 | ||||||
Property, plant and equipment, net |
274,328 | 287,705 | ||||||
Goodwill |
1,468,990 | 1,442,411 | ||||||
Intangible assets, net |
927,636 | 918,522 | ||||||
Investments in affiliates |
4,723 | 4,899 | ||||||
Deferred tax assets |
370 | 358 | ||||||
Other assets |
76,838 | 68,027 | ||||||
Total assets |
$ | 3,678,803 | $ | 3,643,155 | ||||
LIABILITIES AND EQUITY |
||||||||
Current liabilities |
||||||||
Current borrowings |
$ | 29,700 | $ | 103,711 | ||||
Accounts payable |
82,675 | 84,846 | ||||||
Accrued expenses |
116,577 | 117,488 | ||||||
Payroll and benefit-related liabilities |
67,626 | 71,418 | ||||||
Derivative liabilities |
15,315 | 15,634 | ||||||
Accrued interest |
8,952 | 18,347 | ||||||
Income taxes payable |
4,630 | 4,886 | ||||||
Deferred tax liabilities |
4,802 | 4,433 | ||||||
Liabilities held for sale |
11,629 | | ||||||
Total current liabilities |
341,906 | 420,763 | ||||||
Long-term borrowings |
822,473 | 813,409 | ||||||
Deferred tax liabilities |
387,001 | 370,819 | ||||||
Pension and postretirement benefit liabilities |
117,590 | 141,769 | ||||||
Noncurrent liability for uncertain tax positions |
73,697 | 62,602 | ||||||
Other liabilities |
47,148 | 46,515 | ||||||
Total liabilities |
1,789,815 | 1,855,877 | ||||||
Commitments and contingencies |
||||||||
Total common shareholders equity |
1,884,710 | 1,783,376 | ||||||
Noncontrolling interest |
4,278 | 3,902 | ||||||
Total equity |
1,888,988 | 1,787,278 | ||||||
Total liabilities and equity |
$ | 3,678,803 | $ | 3,643,155 | ||||
TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended | ||||||||
March 27, 2011 | March 28, 2010 | |||||||
(Dollars in thousands) | ||||||||
Cash Flows from Operating Activities of Continuing Operations: |
||||||||
Net income |
$ | 78,194 | $ | 37,958 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Income from discontinued operations |
(60,694 | ) | (4,438 | ) | ||||
Depreciation expense |
10,849 | 11,274 | ||||||
Amortization expense of intangible assets |
11,220 | 10,731 | ||||||
Amortization expense of deferred financing costs and debt discount |
3,300 | 945 | ||||||
Loss on extinguishments of debt |
14,597 | | ||||||
Stock-based compensation |
(1,055 | ) | 1,695 | |||||
Deferred income taxes, net |
(1,701 | ) | 10,130 | |||||
Other |
903 | 444 | ||||||
Changes in operating assets and liabilities, net of effects of acquisitions and
disposals: |
||||||||
Accounts receivable |
(20,951 | ) | (43,023 | ) | ||||
Inventories |
(10,656 | ) | 493 | |||||
Prepaid expenses and other current assets |
(1,032 | ) | (1,914 | ) | ||||
Accounts payable and accrued expenses |
(8,189 | ) | (33,777 | ) | ||||
Income taxes receivable and payable, net |
(723 | ) | 43,859 | |||||
Net cash provided by operating activities from continuing operations |
14,062 | 34,377 | ||||||
Cash Flows from Investing Activities of Continuing Operations: |
||||||||
Expenditures for property, plant and equipment |
(6,444 | ) | (6,737 | ) | ||||
Proceeds from sales of businesses and assets, net of cash sold |
101,600 | 24,750 | ||||||
Payments for businesses and intangibles acquired, net of cash acquired |
(30,570 | ) | (81 | ) | ||||
Net cash provided by investing activities from continuing operations |
64,586 | 17,932 | ||||||
Cash Flows from Financing Activities of Continuing Operations: |
||||||||
Proceeds from long-term borrowings |
265,000 | | ||||||
Reduction in long-term borrowings |
(330,800 | ) | (51,090 | ) | ||||
Increase in notes payable and current borrowings |
| 39,700 | ||||||
Proceeds from stock compensation plans |
6,764 | 3,670 | ||||||
Dividends |
(13,614 | ) | (13,536 | ) | ||||
Debt extinguishment, issuance and amendment fees |
(14,838 | ) | | |||||
Net cash used in financing activities from continuing operations |
(87,488 | ) | (21,256 | ) | ||||
Cash Flows from Discontinued Operations: |
||||||||
Net cash used in operating activities |
(5,109 | ) | (3,314 | ) | ||||
Net cash used in investing activities |
(249 | ) | (611 | ) | ||||
Net cash used in discontinued operations |
(5,358 | ) | (3,925 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents |
8,044 | (4,714 | ) | |||||
Net (decrease) increase in cash and cash equivalents |
(6,154 | ) | 22,414 | |||||
Cash and cash equivalents at the beginning of the period |
208,452 | 188,305 | ||||||
Cash and cash equivalents at the end of the period |
$ | 202,298 | $ | 210,719 | ||||
Information about continuing operations by business segment is as follows:
Three Months Ended | ||||||||
March 27, | March 28, | |||||||
2011 | 2010 | |||||||
(Dollars in thousands) | ||||||||
Segment data: |
||||||||
Medical |
$ | 354,004 | $ | 343,537 | ||||
Aerospace |
34,654 | 23,795 | ||||||
Segment net revenues |
$ | 388,658 | $ | 367,332 | ||||
Medical |
$ | 60,537 | $ | 73,498 | ||||
Aerospace |
4,986 | 1,171 | ||||||
Segment operating profit |
65,523 | 74,669 | ||||||
Less: Corporate expenses |
10,736 | 7,937 | ||||||
Restructuring and impairment charges |
595 | 463 | ||||||
Noncontrolling interest |
(382 | ) | (286 | ) | ||||
Income from continuing operations
before interest, loss
on extinguishments of debt and taxes |
$ | 54,574 | $ | 66,555 | ||||