Fourth Quarter Revenues Increase 7.5% to
$450.5 million; up 6.9% on Constant Currency Basis
Fourth Quarter GAAP Diluted EPS of $0.78;
Adjusted Diluted EPS of $1.36 up 18.3%
2014 Guidance Ranges for Constant Currency
Revenue Growth of 7% to 9% and Adjusted Diluted EPS of $5.35
to $5.55 Reaffirmed
Teleflex Incorporated (NYSE: TFX) today announced financial
results for the fourth quarter and full year ended December 31,
2013.
Fourth quarter 2013 net revenues were $450.5 million, an
increase of 7.5% over the prior year period. Excluding the impact
of foreign currency fluctuations, fourth quarter 2013 net revenues
increased 6.9% over the prior year period.
Fourth quarter 2013 GAAP diluted earnings per share from
continuing operations were $0.78, as compared to $0.72 in the prior
year period. Fourth quarter 2013 adjusted diluted earnings per
share from continuing operations were $1.36, as compared to $1.15
in the prior year period, an increase of 18.3%.
“Teleflex delivered a strong finish to 2013, both in terms of
constant currency revenue growth and adjusted earnings per share
achievement,” said Benson Smith, Chairman, President and Chief
Executive Officer. “Our fourth quarter performance was aided by the
contribution from the acquisitions of Vidacare and LMA
International, an improvement in the average selling price of
products, the introduction of new products to the marketplace and
one additional shipping day in the quarter as compared to the prior
year period.”
Added Mr. Smith, “As we turn to 2014, Teleflex is
well-positioned to continue to exceed industry revenue growth rates
and expand adjusted operating margin and earnings per share due to
recently concluded dealer negotiations, the acquisition of
Vidacare, the introduction of new products to the market, and the
continued integration of the LMA business.”
FOURTH QUARTER NET REVENUE BY PRODUCT GROUP AND
SEGMENT
Product Group Revenues
Critical Care fourth quarter 2013 net revenues were $316.7
million, an increase of 10.6% compared to the prior year period.
Excluding the impact of foreign currency fluctuations, fourth
quarter 2013 net revenues increased 10.2% compared to the prior
year period. The increase in constant currency revenue was due to
higher sales of anesthesia, interventional, vascular and urology
products. The growth in sales of anesthesia products was primarily
due to the contribution from the LMA International business
(“LMA”), which was acquired in October of 2012. The growth in sales
of vascular and interventional access products was primarily due to
the contribution from the Vidacare Corporation business
(“Vidacare”), which was acquired in December of 2013. Constant
currency sales growth was partially offset by a decline in sales of
respiratory products.
Surgical Care fourth quarter 2013 net revenues were $80.5
million, an increase of 5.2% compared to the prior year period.
Excluding the impact of foreign currency fluctuations, fourth
quarter 2013 net revenues increased 4.0% compared to the prior year
period. The increase in constant currency revenue was due to higher
sales of ligation, access and suture products, partially offset by
a decline in sales of general surgical instrument and chest
drainage products.
Cardiac Care fourth quarter 2013 net revenues were $19.2
million, a decrease of 6.0% compared to the prior year period on
both an as-reported and constant currency basis. The decrease in
revenue was due to a decline in sales of intra-aortic balloon
pumps.
OEM and Development Services (“OEM”) fourth quarter 2013 net
revenues were $34.1 million, a decrease of 4.8% compared to the
prior year period. Excluding the impact of foreign currency
fluctuations, fourth quarter 2013 net revenues decreased 5.7%
compared to the prior year period. The decrease in constant
currency revenue was primarily due to a decline in sales of
catheter and performance fiber products.
Three Months Ended % Increase/
(Decrease)
December 31,2013
December 31,2012
ConstantCurrency
ForeignCurrency
TotalChange
(Dollars in millions) Critical Care $ 316.7 $ 286.5 10.2 % 0.4 %
10.6 % Surgical Care 80.5 76.5 4.0 % 1.2 % 5.2 % Cardiac Care 19.2
20.4 (6.0 %) — (6.0 %) OEM 34.1 35.7 (5.7 %) 0.9 %
(4.8 %) Total $ 450.5 $ 419.1 6.9 % 0.6 % 7.5 %
Segment Revenues
Americas fourth quarter 2013 net revenues were $212.4 million,
an increase of 6.2% compared to the prior year period. Excluding
the impact of foreign currency fluctuations, fourth quarter 2013
net revenues increased 6.6% compared to the prior year period. The
increase in constant currency revenue was largely due to LMA and
Vidacare product sales, new product sales and price increases,
partially offset by lower sales volume of existing products as
compared to the fourth quarter of 2012.
EMEA fourth quarter 2013 net revenues were $144.9 million, an
increase of 9.2% compared to the prior year period. Excluding the
impact of foreign currency fluctuations, fourth quarter 2013 net
revenues increased 5.2% compared to the prior year period. The
increase in constant currency revenue was due to LMA and Vidacare
product sales, price increases including the benefit of selling
direct to customers in some markets versus selling to a third party
distributor and higher sales volume of existing products as
compared to the fourth quarter of 2012.
Asia fourth quarter 2013 net revenues were $59.1 million, an
increase of 17.1% compared to the prior year period. Excluding the
impact of foreign currency fluctuations, fourth quarter 2013 net
revenues increased 21.6% compared to the prior year period. The
increase in constant currency revenue was due to LMA product sales,
higher sales volume of existing products and price increases.
Three Months Ended % Increase/
(Decrease)
December 31,2013
December 31,2012
ConstantCurrency
ForeignCurrency
TotalChange
(Dollars in millions) Americas $ 212.4 $ 200.1 6.6 % (0.4 %) 6.2 %
EMEA 144.9 132.8 5.2 % 4.0 % 9.2 % Asia 59.1 50.5 21.6 % (4.5 %)
17.1 % OEM 34.1 35.7 (5.7 %) 0.9 % (4.8 %) Total $
450.5 $ 419.1 6.9 % 0.6 % 7.5 %
FULL YEAR RESULTS
Net revenues for the full year 2013 were $1.696 billion, an
increase of 9.4% compared to the prior year period. Excluding the
impact of foreign currency fluctuations which had a positive impact
of 0.4%, net revenues for 2013 increased 9.0% compared to 2012.
GAAP diluted earnings per share from continuing operations were
$3.46 for the full year 2013, as compared to a loss per share of
($4.47) in the prior year period. The financial results for 2012
reflect a goodwill impairment charge of $315.1 million, net of tax,
or $7.71 per share, incurred in the first quarter of 2012.
Adjusted diluted earnings per share from continuing operations
for the full year of 2013 were $5.03, an increase of 13.5% over the
prior year.
OTHER FINANCIAL HIGHLIGHTS AND KEY PERFORMANCE
METRICS
Depreciation expense and amortization of intangible assets and
deferred financing costs for full year 2013 were $107.9 million
compared to $94.9 million for the prior year period.
Cash and cash equivalents at December 31, 2013 were $432.0
million compared to $337.0 million at December 31, 2012.
Net accounts receivable at December 31, 2013 were $295.3 million
compared to $298.0 million at December 31, 2012.
Net inventories at December 31, 2013 were $333.6 million
compared to $323.3 million at December 31, 2012.
Net debt obligations at December 31, 2013 were $902.7 million
compared to $692.7 million at December 31, 2012. During the fourth
quarter of 2013, as a result of the Company meeting a contingent
conversion threshold related to the Company’s stock price, the
Company’s convertible notes have been classified as a current
liability as of December 31, 2013. The determination of whether or
not the convertible notes are convertible must continue to be
performed on a quarterly basis until maturity or conversion.
Consequently, the convertible notes may not be convertible in
future quarters, and therefore may again be classified as long-term
debt, if the contingent conversion threshold is not met in such
quarters.
2014 OUTLOOK
The Company reaffirmed full year 2014 financial estimates as
follows:
Constant currency revenue growth between 7% and 9% for the full
year 2014.
Adjusted diluted earnings per share in the range of $5.35 to
$5.55.
FORECASTED 2014 CONSTANT CURRENCY
REVENUE GROWTH RECONCILIATION
Low
High
Forecasted 2014 GAAP revenue growth
6.0%
8.0%
Foreign exchange
1.0%
1.0%
Forecasted 2014 constant currency revenue
growth
7.0%
9.0%
FORECASTED 2014 ADJUSTED EARNINGS PER
SHARE RECONCILIATION
Low High Forecasted 2014 diluted
earnings per share attributable to common shareholders $3.60 $3.75
Restructuring, impairment charges and special items, net of
tax $0.65 $0.70 Intangible amortization expense, net of tax
$0.93 $0.93 Amortization of debt discount on convertible
notes, net of tax $0.17 $0.17 Forecasted 2014
adjusted diluted earnings per share $5.35 $5.55
CONFERENCE CALL WEBCAST AND ADDITIONAL INFORMATION
As previously announced, Teleflex will comment on its financial
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 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 February 28, 2014 at 11:59pm (ET), by calling
888-286-8010 (U.S./Canada) or 617-801-6888 (International),
Passcode: 68453301.
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.
Certain financial information is presented on a rounded basis,
which may cause minor differences.
Product group 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 and in the
Reconciliation of Consolidated Statement of Income Items set forth
below.
NOTES ON NON-GAAP FINANCIAL MEASURES
This press release includes certain non-GAAP financial measures,
which include:
Adjusted diluted earnings per share. This measure excludes,
depending on the period presented (i) the effect of charges
associated with our restructuring programs, as well as goodwill and
other asset impairment charges; (ii) loss on extinguishment of
debt; (iii) the gain or loss on sales of businesses and assets;
(iv) losses and other charges related to acquisition costs, the
reversal of liabilities related to certain contingent consideration
arrangements and a previously announced stock keeping unit
rationalization program, the establishment of a litigation reserve
and a litigation verdict against the Company with respect to a
non-operating joint venture; (v) amortization of the debt discount
on the Company’s convertible notes; (vi) charges associated with
the amortization of additional interest expense related to an
interest rate swap terminated in 2011; (vii) intangible
amortization expense; and (viii) tax benefits resulting from the
resolution of prior years’ tax matters and the filing of prior
years’ amended tax returns. In addition, the calculation of diluted
shares within adjusted earnings per share gives effect to the
anti-dilutive impact of the Company’s convertible note hedge
agreements, which reduce the potential economic dilution that
otherwise would occur upon conversion of the Company’s senior
subordinated convertible notes (under GAAP, the anti-dilutive
impact of the convertible note hedge agreements is not reflected in
diluted shares).
Constant currency revenue. This measure excludes the impact of
translating the results of international subsidiaries at different
currency exchange rates from period to period.
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 believes that the
calculation of non-GAAP diluted shares is useful to investors
because it provides insight into the offsetting economic effect of
the convertible note hedge against conversions of the convertible
notes. 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 generally accepted accounting
principles (“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 CONSOLIDATED
STATEMENT OF INCOME ITEMS
Dollars in millions, except per share
amounts
Quarter Ended – December 31, 2013
Costof
goodssold
Selling,general
andadministrativeexpenses
Research
anddevelopmentexpenses
Restructuringand
otherimpairmentcharges
Interestexpense,net
Incometaxes
Net
income(loss)attributable
tocommonshareholdersfrom
continuingoperations
Diluted earningsper
shareavailable tocommonshareholders
Shares used incalculation
ofGAAP andadjustedearnings
pershare
GAAP Basis $ 225.6 $ 143.8 $ 17.9 $ 9.2 $ 14.2 $ 4.6 $ 35.1 $ 0.78
45,033 Adjustments
Restructuring and other impairment
charges
— — — 9.2 — 1.7 7.6 $ 0.17 —
Losses and other charges (A)
0.3 8.2 0.5 — — 2.5 6.5 $ 0.14 —
Amortization of debt discount on
convertible notes
— — — — 2.9 1.1 1.8 $ 0.04 — Intangible amortization expense — 13.5
— — — 4.5 9.0 $ 0.20 — Tax Adjustment (B) — — — — — 1.5 (1.5 )
($0.03 ) —
Shares due to Teleflex under note hedge
(C)
— — — — — — — $ 0.06 (2,165 ) Adjusted basis $ 225.3 $ 122.0 $ 17.3
— $ 11.3 $ 15.8 $ 58.5 $ 1.36 42,868
Quarter Ended -
December 31, 2012
Costof
goodssold
Selling,general
andadministrativeexpenses
Research
anddevelopmentexpenses
Restructuringand
otherimpairmentcharges
Interestexpense,net
Incometaxes
Net
income(loss)attributable
tocommonshareholdersfrom
continuingoperations
Diluted earningsper
shareavailable tocommonshareholders
Shares used incalculation
ofGAAP andadjustedearnings
pershare
GAAP Basis $ 219.9 $ 121.5 $ 16.3 $ 3.0 $ 14.4 $ 13.5 $ 30.4 $ 0.72
42,007 Adjustments
Restructuring and other impairment
charges
— — — 3.0 — 0.6 2.3 $ 0.06 — Losses and other charges (A) 0.5 3.0 —
— — (1.9 ) 5.4 $ 0.13 —
Amortization of debt discount on
convertible notes
— — — — 2.7 1.0 1.7 $ 0.04 — Intangible amortization expense — 12.0
— — — 4.2 7.8 $ 0.19 —
Tax adjustment (B)
— — — — — — — — —
Shares due to Teleflex under note hedge
(C)
— — — — — — — $ 0.02 (733 ) Adjusted basis $ 219.4 $ 106.5 $ 16.3 —
$ 11.7 $ 17.3 $ 47.6 $ 1.15 41,274 (A) In 2013, losses and
other charges include approximately $4.0 million, net of tax, or
$0.09 per share, primarily related to acquisition and integration
costs; $1.9 million, net of tax, or $0.04 per share related to the
establishment of a litigation reserve; and $0.6 million, net of
tax, or $0.01 per share related to costs incurred to relocate
facilities. In 2012, losses and other charges include approximately
$5.4 million, net of tax, or $0.13 per share, related to
acquisition costs. (B) The tax adjustment represents a net
benefit resulting from the resolution of, or the expiration of
statute of limitations with respect to various prior years’ U.S.
federal, state and foreign tax matters. (C) Adjusted diluted
shares are calculated by giving effect to the anti-dilutive impact
of the Company’s convertible note hedge agreements, which reduce
the potential economic dilution that otherwise would occur upon
conversion of our senior subordinated convertible notes. Under
GAAP, the anti-dilutive impact of the convertible note hedge
agreements is not reflected in diluted shares.
RECONCILIATION OF CONSOLIDATED
STATEMENT OF INCOME ITEMS
Dollars in millions, except per share
amounts
Twelve Months Ended – December 31, 2013
Costofgoodssold
Selling,general
andadministrativeexpenses
Research
anddevelopmentexpenses
Goodwillimpairment
Restructuringand
otherimpairmentcharges
Gain/(loss)on sales
ofbusinessesand assets
Loss onextinguishmentof
debt
Interestexpense,net
Incometaxes
Net income(loss)
attributableto commonshareholdersfrom
continuingoperations
Dilutedearnings pershare
availableto commonshareholders
Shares usedin
calculationof GAAP andadjustedearnings
pershare
GAAP Basis $ 857.3 $ 502.2 $ 65.0 — $ 38.5 — $ 1.3 $ 56.3 $ 23.5 $
151.3 $ 3.46 43,693 Adjustments
Restructuring and other impairment
charges
— — — — 38.5
—
— — 7.8 30.7 $ 0.71 — Loss on extinguishment of debt — — — — — —
1.3 — 0.5 0.8 $ 0.02 —
Losses and other charges (A)
2.3 1.5 0.5 — — — — — 4.9 (0.6 ) ($0.02 ) —
Amortization of debt discount on
convertible notes
— — —
—
— — — 11.3 4.1 7.2 $ 0.16 — Intangible amortization expense — 50.6
— — — — — — 17.3 33.4 $ 0.76 — Tax Adjustment (D) — — — — — — — —
11.1 (11.1 ) ($0.25 ) —
Shares due to Teleflex under note hedge
(E)
— — — — — — — — — — $ 0.19 (1,620 ) Adjusted basis $ 855.1 $ 450.1
$ 64.5 — — — — $ 45.0 $ 69.2 $ 211.6 $ 5.03 42,073
Twelve
Months Ended - December 31, 2012
Costofgoodssold
Selling,general
andadministrativeexpenses
Research
anddevelopmentexpenses
Goodwillimpairment
Restructuringand
otherimpairmentcharges
Gain/(loss)on sales
ofbusinessesand assets
Loss onextinguishmentof
debt
Interestexpense,net
Incometaxes
Net income(loss)
attributableto commonshareholdersfrom
continuingoperations
Dilutedearnings pershare
availableto commonshareholders
Shares usedin
calculationof GAAP andadjustedearnings
pershare
GAAP Basis $ 802.8 $ 454.5 $ 56.3 $ 332.1 $ 3.0 $ 0.3 — $ 68.0 $
16.4 ($182.7 ) ($4.47 ) 40,859 Adjustments Goodwill impairment — —
— 332.1 — — — — 17.0 315.1 $ 7.71 —
Restructuring and other impairment
charges
— — — — 3.0 — — — 0.6 2.5 $ 0.06 — Gain/(loss) on sales of
businesses and assets — — — — — (0.3 ) — — — (0.3 ) ($0.01 ) — Loss
on extinguish-
ment of debt
— — — — — — — — — — — — Losses and other charges (A) 0.5 14.2 — — —
— — — — 14.6 $ 0.36 — Early termination of interest rate swap (B) —
— — — — — — 11.1 4.0 7.0 $ 0.17 —
Amortization of debt discount on
convertible notes
— — — — — — — 10.5 3.8 6.7 $ 0.16 — Intangible amortization expense
— 44.3 — — — — — — 16.0 28.3 $ 0.69 — Anti-dilutive effect on EPS
(C) — — — — — — — — — — ($0.06 ) 542
Tax adjustment (D)
— — — — — — — — 9.0 (9.0 ) ($0.22 ) —
Shares due to Teleflex under note hedge
(E)
— — — — — — — — — — $ 0.03 (275 ) Adjusted basis $ 802.3 $ 396.0 $
56.3 — — — — $ 46.5 $ 66.7 $ 182.2 $ 4.43 41,126 (A) In
2013, losses and other charges include approximately ($12.4)
million, net of tax, or ($0.28) per share, related to the reversal
of contingent consideration liabilities; $7.8 million, net of tax,
or $0.18 per share, primarily related to acquisition and
integration costs; ($0.3) million, net of tax, or ($0.01) per
share, related to a reserve reversal associated with a previously
announced stock keeping unit (“SKU”) rationalization charge; $0.8
million, net of tax, or $0.02 per share, related to a litigation
verdict against the Company with respect to a non-operating joint
venture; $1.9 million, net of tax, or $0.04 per share related to
the establishment of a litigation reserve; and $1.6 million, net of
tax, or $0.04 per share related to costs incurred to relocate
facilities. In 2012, losses and other charges include approximately
$0.2 million, net of tax related to contingent consideration
liabilities; and $14.4 million, net of tax, or $0.36 per share,
related to acquisition costs. (B) In 2011, the Company
terminated an interest rate swap that, at the date of termination,
had a notional amount of $350 million. The interest rate swap was
designated as a cash flow hedge against the term loan under our
senior credit facility. At the date of termination, the interest
rate swap was in a liability position resulting in a cash payment
by the Company to the counterparty of approximately $14.8 million,
which included $3.1 million of accrued interest. In accordance with
GAAP, the Company amortized this amount as additional interest
expense over the remainder of the original term of the interest
rate swap, which expired in September 2012. In the first nine
months of 2012, the impact of the amortization, net of tax, was
approximately $7.0 million, or $0.17 per share. (C) The
Company presents per share results using basic weighted average
shares, and separately presents diluted per share results, which
reflect with the impact of dilution on income. Under applicable
accounting guidance, if a company has a net loss from continuing
operations, as was the case for the Company in 2012, no common
shares that potentially may be issued are included in the
computation of diluted per-share amounts because such inclusion
would result in an anti-dilutive per share amount. However, the
Company had net income on an adjusted basis in 2012. Therefore,
common shares that would have a dilutive effect on adjusted net
income are deemed to be outstanding for purposes of the calculation
of 2012 adjusted diluted earnings per share. (D) The tax
adjustment represents a net benefit resulting from the resolution
of, or the expiration of statutes of limitations with respect to
various prior years’ U.S. federal, state and foreign tax matters.
(E) Adjusted diluted shares are calculated by including the
anti-dilutive impact of the Company’s convertible note hedge
agreements, which reduce the potential economic dilution that
otherwise would occur upon conversion of our senior subordinated
convertible notes. Under GAAP, the anti-dilutive impact of the
convertible note hedge agreements is not reflected in diluted
shares.
RECONCILIATION OF NET DEBT
OBLIGATIONS
December 31, 2013 December 31, 2012 (Dollars
in thousands) Note payable and current portion of long-term
borrowings $ 356,287 $ 4,700 Long term borrowings 930,000
965,280 Unamortized debt discount 48,413
59,720 Total debt obligations 1,334,700 1,029,700
Less: cash and cash equivalents 431,984 337,039
Net debt obligations $ 902,716 $ 692,661
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
11,400 people worldwide and serves healthcare providers in more
than 150 countries. 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, forecasted 2014 GAAP and constant
currency revenue growth and GAAP and adjusted diluted earnings per
share and the anticipated expansion of operating margins and
earnings per share as a result of recently concluded dealer
negotiations, the acquisition of Vidacare, the introduction of new
products to the market and the continued integration of the LMA
business. 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; 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 or incorporated in our filings with the Securities and
Exchange Commission, including our Annual Report on Form 10-K for
the year ended December 31, 2012.
TELEFLEX INCORPORATED AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
INCOME
Three Months Ended December 31,
December 31, 2013 2012 (Dollars and shares
in thousands, except per share) Net revenues $
450,539 $ 419,056 Cost of goods sold 225,596
219,876 Gross profit 224,943 199,180 Selling, general and
administrative expenses 143,756 121,524 Research and development
expenses 17,876 16,263 Restructuring and other impairment charges
9,247 2,953 Income from continuing
operations before interest and taxes 54,064 58,440 Interest expense
14,339 14,621 Interest income (166 ) (247 ) Income
from continuing operations before taxes 39,891 44,066 Taxes on
income from continuing operations 4,589 13,452
Income from continuing operations 35,302
30,614 Operating loss from discontinued operations
(including loss on disposal of $21 in 2012) (459 ) (1,256 ) Tax
benefit on loss from discontinued operations (223 )
(219 ) Loss from discontinued operations (236 )
(1,037 ) Net income 35,066 29,577 Less: Income from continuing
operations attributable to noncontrolling interest 238
254 Net income attributable to common
shareholders $ 34,828 $ 29,323 Earnings per
share available to common shareholders: Basic: Income from
continuing operations $ 0.85 $ 0.74 Loss from discontinued
operations — (0.02 ) Net income $ 0.85
$ 0.72 Diluted: Income from continuing operations $
0.78 $ 0.72 Loss from discontinued operations (0.01 )
(0.02 ) Net income $ 0.77 $ 0.70 Dividends per
common share $ 0.34 $ 0.34 Weighted average common shares
outstanding: Basic 41,161 40,945 Diluted 45,033 42,007
Amounts attributable to common shareholders: Income from continuing
operations, net of tax $ 35,064 $ 30,360 Loss from discontinued
operations, net of tax (236 ) (1,037 ) Net income $
34,828 $ 29,323
TELEFLEX INCORPORATED AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(LOSS)
Twelve Months Ended December 31,
December 31, 2013 2012 (Dollars and shares
in thousands, except per share) Net revenues $
1,696,271 $ 1,551,009 Cost of goods sold 857,326
802,784 Gross profit 838,945 748,225 Selling, general
and administrative expenses 502,187 454,489 Research and
development expenses 65,045 56,278 Goodwill impairment — 332,128
Restructuring and other impairment charges 38,452 3,037 Gain on
sales of businesses and assets — (332 ) Income
(loss) from continuing operations before interest, loss on
extinguishments of debt and taxes 233,261 (97,375
)
Interest expense 56,905 69,565 Interest income (624 ) (1,571 ) Loss
on extinguishments of debt 1,250 —
Income (loss) from continuing operations before taxes 175,730
(165,369 ) Taxes on income (loss) from continuing operations
23,547 16,413 Income (loss) from continuing
operations 152,183 (181,782 ) Operating loss
from discontinued operations (including gain on disposal of $2,205
in 2012) (2,205 ) (9,207 ) Tax benefit on loss from discontinued
operations (1,770 ) (1,887 ) Loss from discontinued
operations (435 ) (7,320 ) Net income (loss) 151,748
(189,102 ) Less: Income from continuing operations attributable to
noncontrolling interest 867 955 Net
income (loss) attributable to common shareholders $ 150,881
$ (190,057 ) Earnings per share available to common
shareholders: Basic: Income (loss) from continuing operations $
3.68 $ (4.47 ) Loss from discontinued operations (0.01 )
(0.18 ) Net income (loss) $ 3.67 $ (4.65 )
Diluted: Income (loss) from continuing operations $ 3.46 $ (4.47 )
Loss from discontinued operations (0.01 ) (0.18 ) Net
income (loss) $ 3.45 $ (4.65 ) Dividends per common
share $ 1.36 $ 1.36 Weighted average common shares
outstanding: Basic 41,105 40,859 Diluted 43,693 40,859
Amounts attributable to common shareholders: Income (loss) from
continuing operations, net of tax $ 151,316 $ (182,737 ) Loss from
discontinued operations, net of tax (435 ) (7,320 )
Net income (loss) $ 150,881 $ (190,057 )
TELEFLEX INCORPORATED AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, December 31, 2013
2012 (Dollars in thousands) ASSETS Current
assets Cash and cash equivalents $ 431,984 $ 337,039 Accounts
receivable, net 295,290 297,976 Inventories, net 333,621 323,347
Prepaid expenses and other current assets 39,810 28,712 Prepaid
taxes 36,504 27,160 Deferred tax assets 52,917 51,025 Assets held
for sale 10,428 7,963 Total current
assets 1,200,554 1,073,222 Property, plant and equipment, net
325,900 297,945 Goodwill 1,354,203 1,238,452 Intangible assets, net
1,255,597 1,058,792 Investments in affiliates 1,715 2,066 Deferred
tax assets 943 1,347 Other assets 70,095
61,863 Total assets $ 4,209,007 $ 3,733,687
LIABILITIES AND EQUITY Current liabilities Notes
payable $ 356,287 $ 4,700 Accounts payable 71,967 75,165 Accrued
expenses 74,868 65,064 Current portion of contingent consideration
4,131 23,693 Payroll and benefit-related liabilities 73,090 74,586
Accrued interest 8,725 9,418 Income taxes payable 23,821 16,895
Other current liabilities 22,231 5,779
Total current liabilities 635,120 275,300 Long-term borrowings
930,000 965,280 Deferred tax liabilities 514,715 418,874 Pension
and postretirement benefit liabilities 109,498 170,946 Noncurrent
liability for uncertain tax positions 55,152 61,979 Other
liabilities 48,506 59,771 Total
liabilities 2,292,991 1,952,150 Common
shareholders’ equity Common shares, $1 par value Issued: 2013 —
43,243 shares; 2012 — 43,102 shares 43,243 43,102 Additional
paid-in capital 409,338 394,384 Retained earnings 1,696,424
1,601,460 Accumulated other comprehensive loss (110,855 )
(132,048 ) 2,038,150 1,906,898 Less: Treasury stock, at cost
124,623 127,948 Total common
shareholders’ equity 1,913,527 1,778,950
Noncontrolling interest 2,489 2,587
Total equity 1,916,016 1,781,537
Total liabilities and equity $ 4,209,007 $ 3,733,687
TELEFLEX INCORPORATED AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH
FLOWS
Twelve Months Ended December 31,
December 31, 2013 2012 (Dollars in
thousands) Cash Flows from Operating Activities of Continuing
Operations: Net income (loss) $ 151,748 $ (189,102 ) Adjustments to
reconcile net income to net cash provided by operating activities:
Loss from discontinued operations 435 7,320 Depreciation expense
42,368 36,204 Amortization expense of intangible assets 50,608
44,264 Amortization expense of deferred financing costs and debt
discount 14,959 14,416 Loss on extinguishments of debt 1,250 —
Impairment of long-lived assets 3,460 — In-process research and
development impairment 7,381 — Change in contingent consideration
(12,642 ) 263 Stock-based compensation 11,871 8,623 Gain on sales
of businesses and assets — (332 ) Goodwill impairment — 332,128
Deferred income taxes, net (8,925 ) (39,178 ) Other (8,700 ) (3,776
)
Changes in operating assets and
liabilities, net of effects of acquisitions and disposals:
Accounts receivable (1,294 ) (2,932 ) Inventories (8,931 ) (1,970 )
Prepaid expenses and other current assets (5,926 ) 9,595 Accounts
payable and accrued expenses (684 ) (1,412 ) Income taxes
receivable and payable, net (7,107 ) (20,258 ) Net
cash provided by operating activities from continuing operations
229,871 193,853 Cash Flows from
Investing Activities of Continuing Operations: Expenditures for
property, plant and equipment (63,580 ) (65,394 ) Payments for
businesses and intangibles acquired, net of cash acquired (309,008
) (369,444 ) Proceeds from sales of businesses and assets, net of
cash sold — 66,660 Investments in affiliates (50 )
(80 ) Net cash used in investing activities from continuing
operations (372,638 ) (368,258 ) Cash Flows from
Financing Activities of Continuing Operations: Proceeds from
long-term borrowings 680,000 — Repayment of long-term borrowings
(375,000 ) — Debt extinguishment, issuance and amendment fees
(6,400 ) — Decrease in notes payable and current borrowings — (706
) Proceeds from stock compensation plans 7,609 9,003 Payments to
noncontrolling interest shareholders (736 ) — Payments for
contingent consideration (16,958 ) (17,596 ) Dividends
(55,917 ) (55,589 ) Net cash provided by (used in) financing
activities from continuing operations 232,598
(64,888 ) Cash Flows from Discontinued Operations: Net cash used in
operating activities (3,327 ) (7,799 ) Net cash used in investing
activities — (2,351 ) Net cash used in
discontinued operations (3,327 ) (10,150 ) Effect of
exchange rate changes on cash and cash equivalents 8,441
2,394 Net increase (decrease) increase in cash
and cash equivalents 94,945 (247,049 ) Cash and cash equivalents at
the beginning of the period 337,039 584,088
Cash and cash equivalents at the end of the period $ 431,984
$ 337,039
Teleflex IncorporatedJake ElguiczeTreasurer and Vice President
of Investor Relations610-948-2836
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