Fourth Quarter Revenues of $484.5 million,
Up 1.8% Versus Prior Year Period; Up 7.4% on Constant Currency
Basis
Fourth Quarter GAAP Diluted EPS of $1.88, Up
70.9% Over the Prior Year Period
Fourth Quarter Adjusted Diluted EPS of
$2.01, up 40.6%, net of the Unfavorable Impact From Foreign
Currency of Approximately 15.4%
Full Year 2015 Revenues of $1,809.7 million,
Down 1.6% Versus Prior Year; Up 5.4% on Constant Currency
Basis
Full year 2015 GAAP Diluted EPS of $4.91, Up
19.8% Over the Prior Year
Full Year 2015 Adjusted Diluted EPS of
$6.33, up 10.3%, net of the Unfavorable Impact From Foreign
Currency of Approximately 15.2%
2016 Guidance Range for Constant Currency
Revenue Growth of 5.0% to 6.0%
2016 Guidance Range for Adjusted Diluted EPS
of $7.00 to $7.15, up 10.6% to 13.0%, which reflects our
expectation of a negative foreign currency headwind of
approximately 2%
New Facilities Consolidation Restructuring
Plan to Further Improve Company Cost Structure Announced
Teleflex Incorporated (NYSE: TFX) (the “Company”) today
announced financial results for the fourth quarter and year ended
December 31, 2015.
Fourth quarter 2015 net revenues were $484.5 million, an
increase of 1.8% over the prior year period. Excluding the impact
of foreign currency exchange rate fluctuations, fourth quarter 2015
net revenues increased 7.4% over the year ago period.
Fourth quarter 2015 GAAP diluted earnings per share from
continuing operations increased 70.9% to $1.88, as compared to
$1.10 in the prior year period. Fourth quarter 2015 adjusted
diluted earnings per share from continuing operations increased
40.6% to $2.01, compared to $1.43 in the prior year period.
Full year 2015 net revenues were $1,809.7 million, a decrease of
1.6% from the prior year. Excluding the impact of foreign currency
exchange rate fluctuations, full year 2015 net revenues increased
5.4% over the prior year.
Full year 2015 GAAP diluted earnings per share from continuing
operations increased 19.8% to $4.91, as compared to $4.10 in the
prior year. Full year 2015 adjusted diluted earnings per share from
continuing operations increased 10.3% to $6.33, compared to $5.74
in the prior year. We estimate that foreign currency exchange rates
unfavorably impacted full year 2015 adjusted diluted earnings per
share from continuing operations by approximately 15.2%.
“2015 was a tremendous year for Teleflex, capped off by a very
strong fourth quarter,” said Benson Smith, Chairman, President and
Chief Executive Officer. “During the fourth quarter we delivered
constant currency revenue growth of 7.4%, and Teleflex's highest
adjusted gross and operating margins since transitioning to a
pure-play medical device company, reaching 54.1% and 23.7%,
respectively.”
Added Smith, "Following a successful 2015, one in which we
overcame significant foreign currency headwinds, we are well
positioned for 2016. Thanks in part to a robust product pipeline
and the benefits of our previously announced restructuring
initiatives, we expect to deliver between 5% to 6% constant
currency revenue growth and between 10.6% to 13.0% adjusted
earnings per share growth. Finally, the Company announced a new
restructuring plan that is intended to enhance our competitive
position and improve our longer-term profitability. This new plan
will focus on the consolidation of certain facilities and
relocation of manufacturing operations and will allow the Company
to invest in higher growth opportunities.”
FOURTH QUARTER NET REVENUE BY SEGMENT
Vascular North America fourth quarter 2015 net revenues were
$90.3 million, an increase of 9.6% compared to the prior year
period. Excluding the impact of foreign currency fluctuations,
fourth quarter 2015 net revenues increased 10.3% compared to the
prior year period. The increase in constant currency revenue was
largely due to higher sales volume of existing products, price
increases and new product sales.
Surgical North America fourth quarter 2015 net revenues were
$43.1 million, an increase of 5.6% compared to the prior year
period. Excluding the impact of foreign currency fluctuations,
fourth quarter 2015 net revenues increased 6.9% compared to the
prior year period. The increase in constant currency revenue was
largely due to product sales resulting from acquisitions, an
increase in new product sales and price increases.
Anesthesia North America fourth quarter 2015 net revenues were
$50.6 million, an increase of 6.1% compared to the prior year
period. Excluding the impact of foreign currency fluctuations,
fourth quarter 2015 net revenues increased 6.8% compared to the
prior year period. The increase in constant currency revenue was
largely due to higher sales volume of existing products, an
increase in new product sales and price increases.
EMEA fourth quarter 2015 net revenues were $135.2 million, a
decrease of 8.0% compared to the prior year period. Excluding the
impact of foreign currency fluctuations, fourth quarter 2015 net
revenues increased 3.6% compared to the prior year period. The
increase in constant currency revenue was largely due to higher
sales volume of existing products.
Asia fourth quarter 2015 net revenues were $69.2 million, an
increase of 9.0% compared to the prior year period. Excluding the
impact of foreign currency fluctuations, fourth quarter 2015 net
revenues increased 18.0% compared to the prior year period. The
increase in constant currency revenue was largely due to higher
sales volume of existing products, product sales resulting from
acquisitions and new product sales.
OEM and Development Services (“OEM”) fourth quarter 2015 net
revenues were $37.8 million, an increase of 8.0% compared to the
prior year period. Excluding the impact of foreign currency
fluctuations, fourth quarter 2015 net revenues increased 10.3%
compared to the prior year period. The increase in constant
currency revenue was largely due to higher sales volume of existing
products and an increase in new product sales.
Three Months Ended % Increase/
(Decrease) December 31, December 31,
Constant Foreign
Total 2015 2014 Currency
Currency Change (Dollars in millions) Vascular North
America $ 90.3 $ 82.3 10.3 % (0.7 ) % 9.6 % Surgical North America
43.1 40.8 6.9 % (1.3 ) % 5.6 % Anesthesia North America 50.6 47.7
6.8 % (0.7 ) % 6.1 % EMEA 135.2 147.0 3.6 % (11.6 ) % (8.0 ) % Asia
69.2 63.6 18.0 % (9.0 ) % 9.0 % OEM 37.8 35.0 10.3 % (2.3 ) % 8.0 %
All Other 58.3 59.6 0.2 % (2.3 ) % (2.1 ) % Total $
484.5 $ 476.0 7.4 % (5.6 ) % 1.8 %
OTHER FINANCIAL HIGHLIGHTS AND KEY PERFORMANCE
METRICS
Depreciation expense, amortization of intangible assets and
deferred financing costs for 2015 aggregated to $125.3 million
compared to $127.0 million for the prior year.
Cash and cash equivalents at December 31, 2015 were $338.4
million compared to $303.2 million at December 31, 2014.
Net accounts receivable at December 31, 2015 were $262.4 million
compared to $273.7 million at December 31, 2014.
Net inventories at December 31, 2015 were $330.3 million
compared to $335.6 million at December 31, 2014.
Net debt obligations at December 31, 2015 were $750.6 million
compared to $801.4 million at December 31, 2014.
2016 RESTRUCTURING PLAN
On February 23, 2016, the Board of Directors of the Company
approved a restructuring plan (the “Plan”) designed to reduce
costs, improve operating efficiencies and enhance the Company’s
long term competitive position. The Plan, which was developed in
response to continuing cost pressures in the healthcare industry,
involves the consolidation of operations and a related reduction in
workforce at certain of the Company’s facilities, and primarily
will include the relocation of certain manufacturing locations and
the relocation and outsourcing of certain distribution operations.
These actions will commence in the second quarter 2016 and are
expected to be substantially completed by the end of 2018.
The Company estimates that it will incur aggregate pre-tax
charges in connection with the Plan of between $34 million to $44
million, of which the Company expects approximately $21 million to
$23 million will be incurred in 2016 and most of the balance will
be incurred prior to the end of 2018. Generally, the Company
expects that it will exclude these charges from its adjusted
diluted earnings per share results. The Company estimates that $27
million to $31 million of the aggregate pre-tax charges will result
in future cash outlays, of which the Company expects approximately
$6 million to $8 million of the cash outlays will be made in 2016
and most of the balance will be made prior to the end of 2018.
Additionally, the Company expects to make capital expenditures of
$13 million to $17 million in connection with the Plan, of which,
the Company expects approximately $3 million to $5 million will be
made in 2016.
The following table provides a summary of the Company’s current
cost estimates by major type of expense associated with the
Plan:
Total estimated amount Type of
cost expected to be incurred
Employee termination benefits $14 million to $18 million
Facility closure and other exit costs (1) $2 million to $3
million
Accelerated depreciation charges $10 million to $13
million
Other (2) $8 million to $10 million
Total
$34 million to $44 million (1) Includes costs
to transfer product lines among facilities and outplacement and
employee relocation costs. (2) Consists of other costs directly
related to the Plan, including project management, legal and other
regulatory costs.
The Company currently expects to achieve annualized savings of
$12 million to $16 million once the Plan is fully implemented, and
currently expects to realize Plan-related savings beginning in
2017.
As the Plan is implemented, management will reevaluate the
estimated expenses and charges set forth above, and may revise its
estimates as appropriate, consistent with generally accepted
accounting principles.
2016 OUTLOOK
The Company estimates that revenues for full year 2016 will
increase 5.0% to 6.0% on a constant currency basis. On a GAAP
basis, revenues are expected to increase 3.0% to 4.0% over prior
year, reflecting the anticipated unfavorable impact of foreign
currency.
The Company expects adjusted diluted earnings per share from
continuing operations to be between $7.00 and $7.15 for full year
2016, representing an increase of 10.6% to 13.0% over 2015, which
reflects our expectation of a negative foreign currency headwind of
approximately 2%. The Company expects full year 2016 GAAP diluted
earnings per share from continuing operations to be between $4.92
and $4.99.
FORECASTED 2016 CONSTANT CURRENCY
REVENUE GROWTH RECONCILIATION
Low High
Forecasted 2016 GAAP revenue growth 3.0 % 4.0 % Estimated
impact of foreign currency fluctuations 2.0 %
2.0 % Forecasted 2016 constant currency revenue
growth 5.0 % 6.0 %
FORECASTED 2016 ADJUSTED EARNINGS PER
SHARE RECONCILIATION
Low High Diluted earnings per
share attributable to common shareholders $ 4.92 $ 4.99
Restructuring, impairment charges and special items, net of tax $
1.00 $ 1.05 Intangible amortization expense, net of tax $
0.90 $ 0.93 Amortization of debt discount on convertible
notes, net of tax $ 0.18 $ 0.18
Adjusted diluted earnings per share $ 7.00 $
7.15
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 March 3, 2016 at 11:59pm (ET), by calling
888-286-8010 (U.S./Canada) or 617-801-6888 (International),
Passcode: 70373672.
ADDITIONAL NOTES
References in this release to the unfavorable impact of foreign
currency on adjusted diluted earnings per share include both the
impact of translating foreign currencies into U.S. dollars and the
impact of foreign currency exchange rate fluctuations on foreign
currency denominated transactions.
In the discussion of segment results, "new products" refers to
products we have sold for 36 months or less, and "existing
products" refers to products we have sold for more than 36
months.
Certain financial information is presented on a rounded basis,
which may cause minor differences.
Segment results and commentary exclude the impact of
discontinued operations.
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) restructuring and other
impairment charges; (ii) certain losses and other charges,
including charges related to facility consolidations; (iii)
amortization of the debt discount on the Company’s convertible
notes; (iv) intangible amortization expense; (v) loss on
extinguishment of debt; and (vi) tax benefits resulting primarily
from adjustments to prior years’ tax returns and tax law changes.
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 growth. 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 historical adjusted
diluted earnings per share to historical GAAP earnings per share
are set forth below. Tables reconciling constant currency net
revenues to GAAP net revenues and reconciling forecasted non-GAAP
measures to the most directly comparable forecasted GAAP measures
are set forth above.
RECONCILIATION OF CONSOLIDATED STATEMENT OF INCOME
ITEMS Dollars in millions, except per share amounts
Quarter Ended –
December 31, 2015 Net income
Shares
(loss)
used in
attributable Diluted calculation to
common earnings per
of GAAP
Cost
Selling, Research Restructuring
shareholders share
and
of
general and and and other Interest
from available to
adjusted
goods administrative development
impairment expense, Income continuing
common
earnings
sold expenses expenses charges
net taxes operations shareholders
per share
GAAP Basis $ 224.2 $ 148.2 $ 13.2 $ 2.1 $ 13.6 ($7.6 ) $ 90.6 $
1.88 48,323 Adjustments Restructuring and other impairment charges
— — — 2.1 — 0.8 1.3 $ 0.03 — Losses and other charges, net (A) 1.9
(3.1 ) — — — 0.3 (1.5 ) ($0.03 ) — Amortization of debt discount on
convertible notes — — — — 3.4 1.2 2.1 $ 0.04 — Intangible
amortization expense — 17.1 — — — 4.6 12.5 $ 0.26 — Tax adjustment
(B) — — — — — 14.9 (14.9 ) ($0.31 ) — Shares due to Teleflex under
note hedge (C) — — — — — — — $ 0.14 (3,440 ) Adjusted basis $ 222.3
$ 134.2 $ 13.2 — $ 10.2 $ 14.2 $ 90.2 $ 2.01 44,883
Quarter Ended – December 31, 2014 Net income
Shares
(loss)
used in
attributable Diluted calculation to
common earnings per
of GAAP
Cost
Selling, Research Restructuring
shareholders share
and
of
general and and and other Interest
from available to
adjusted
goods administrative development
impairment expense, Income continuing
common
earnings
sold expenses expenses charges
net taxes operations shareholders
per share
GAAP Basis $ 235.0 $ 153.3 $ 17.2 $ 1.4 $ 16.6 $ 0.4 $ 51.8 $ 1.10
47,112 Adjustments Restructuring and other impairment charges — — —
1.4 — 0.5 0.8 $ 0.02 — Losses and other charges, net (A) 2.1 1.0 —
— — 1.1 2.0 $ 0.04 —
Amortization of debt discount on
convertible notes
— — — — 3.1 1.1 2.0 $ 0.04 — Intangible amortization expense — 13.9
— — — 3.5 10.4 $ 0.22 — Tax adjustment (B) — — — — — 3.8 (3.8 )
($0.08 ) — Shares due to Teleflex under note hedge (C) — — — — — —
— $ 0.09 (2,990 ) Adjusted basis $ 232.9 $ 138.4 $ 17.2 — $ 13.5 $
10.5 $ 63.3 $ 1.43 44,122
(A) In 2015 losses and other charges, net related primarily to
facility consolidations and reflect reversals of previously
recorded charges. In 2014, losses and other charges, net related
primarily to facility consolidations.
(B) The tax adjustment represents a net benefit resulting
primarily from (1) adjustments to prior year returns as a result of
amended returns, the resolution of audits of prior year returns
and/or the expiration of applicable statutes of limitations for
prior year returns, and (2) tax law changes affecting our deferred
tax liability.
(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 Adjusted Gross Profit and Margin
Dollars in millions
Quarter Ended – December 31, 2015
Teleflex gross profit as-reported $260.3 Teleflex gross
margin as-reported 53.7 % Losses and other charges, net (D)
1.9 Adjusted Teleflex gross profit $262.2 Adjusted
Teleflex gross margin 54.1 % Teleflex revenue as-reported
$484.5
Reconciliation of Adjusted Operating
Profit and Margin
Dollars in millions Quarter Ended – December 31, 2015
Teleflex income from continuing operations before interest and
taxes $96.7 Teleflex income from continuing operations
before interest and taxes margin 20.0 % Restructuring and
other impairment charges 2.1 Losses and other charges, net (D) (1.2
) Intangible amortization expense 17.1 Adjusted
Teleflex income from continuing operations before interest, taxes
and intangible amortization expense $114.8 Adjusted Teleflex
income from continuing operations before interest, taxes and
intangible amortization expense margin 23.7 % Teleflex
revenue as-reported $484.5
(D) In 2015, losses and other charges, net related primarily to
facility consolidations and reflect reversals of previously
recorded charges.
RECONCILIATION OF CONSOLIDATED STATEMENT OF INCOME
ITEMS Dollars in millions, except per share amounts
Year Ended – December 31, 2015
Net income
Shares
(loss)
used in
attributable
Diluted
calculation
to common
earnings per
of GAAP
Cost
Selling,
Research Restructuring
(Gain) loss
Loss on
shareholders
share
and
of
general and
and and other
on sale of
Interest
extinguishment
from
available to adjusted goods
administrative development impairment
business
expense,
of
Income
continuing
common earnings sold expenses
expenses charges
and assets
net
debt, net
taxes operations shareholders per share
GAAP Basis $ 865.3 $ 569.0 $ 52.1 $ 7.8 ($0.4 ) $ 60.8 $ 10.5 $ 7.8
$ 236.0 $ 4.91 48,058 Adjustments: Restructuring and other
impairment charges — — — 7.8 — — — 2.9 4.9 $ 0.10 — Losses and
other charges, net (E) 9.4 (6.1 ) — — (0.4 ) — — 2.5 0.4 $ 0.01 —
Amortization of debt discount on convertible notes — — — — — 13.2 —
4.8 8.4 $ 0.17 — Intangible amortization expense — 62.4 — — — — —
16.6 45.8 $ 0.95 —
Loss on extinguishment of debt, net
— — — — — — 10.5 3.8 6.6 $ 0.14 — Tax adjustment (F) — — — — — — —
19.0 (19.0 ) ($0.39 ) — Shares due to Teleflex under note hedge (G)
— — — — — — — — — $ 0.44 (3,350 ) Adjusted basis $ 855.8 $ 512.7 $
52.1 — — $ 47.6 — $ 57.4 $ 283.2 $ 6.33 44,708
Year Ended
– December 31, 2014 Net income
Shares
(loss)
used in
attributable Diluted
calculation
to common earnings per
of GAAP
Cost Selling,
Research
Restructuring (Gain) loss
Loss on
shareholders share
and
of general and
and
and other on sale of Interest
extinguishment
from available to adjusted goods
administrative development impairment
business expense,
of
Income continuing common earnings
sold expenses expenses charges and
assets net
debt, net
taxes operations shareholders per share
GAAP Basis $ 897.4 $ 578.7 $ 61.0 $ 17.9 — $ 64.8 — $ 28.7 $ 190.4
$ 4.10 46,470 Adjustments: Restructuring and other impairment
charges — — — 17.9 — — — 5.2 12.7 $ 0.27 — Losses and other
charges, net (E) 4.9 (1.1 ) 0.1 — — — — 3.1 0.9 $ 0.02 —
Amortization of debt discount on convertible notes — — — — — 12.2 —
4.5 7.7 $ 0.17 — Intangible amortization expense — 60.9 — — — — —
17.4 43.5 $ 0.94 —
Loss on extinguishment of debt, net
— — — — — — — — — — — Tax adjustment (F) — — — — — — — 4.0 (4.0 )
($0.09 ) — Shares due to Teleflex under note hedge (G) — — — — — —
— — — $ 0.33 (2,738 ) Adjusted basis $ 892.5 $ 518.8 $ 60.9 — — $
52.5 — $ 62.8 $ 251.2 $ 5.74 43,732
(E) In 2015 losses and other charges, net primarily related to
facility consolidations and reflect reversals of previously
recorded charges. In 2014, losses and other charges, net primarily
related to facility consolidations.
(F) The tax adjustment represents a net benefit resulting
primarily from (1) adjustments to prior year returns as a result of
amended returns, the resolution of audits of prior year returns
and/or the expiration of applicable statutes of limitations for the
prior year returns, and (2) tax law changes affecting our deferred
tax liability.
(G) 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 NET DEBT
OBLIGATIONS
December 31, 2015
December 31, 2014
(Dollars in thousands) Note payable and current portion of long
term borrowings $ 419,942 $ 368,401 Long term borrowings
646,000 700,000 Unamortized debt discount 22,999
36,197 Total debt obligations 1,088,941 1,104,598
Less: cash and cash equivalents 338,366
303,236 Net debt obligations $ 750,575 $ 801,362
ABOUT TELEFLEX INCORPORATED
Teleflex is a global provider of medical technologies designed
to improve the health and quality of people’s lives. We apply
purpose driven innovation - a relentless pursuit of identifying
unmet clinical needs - to benefit patients and healthcare
providers. Our portfolio is diverse, with solutions in the fields
of vascular and interventional access, surgical, anesthesia,
cardiac care, urology, emergency medicine and respiratory care.
Teleflex employees worldwide are united in the understanding that
what we do every day makes a difference. For more information,
please visit teleflex.com.
Teleflex is the home of Arrow®, Deknatel®, Hudson RCI®, LMA®,
Pilling®, Rusch® and Weck® - trusted brands united by a common
sense of purpose.
CAUTION CONCERNING FORWARD-LOOKING INFORMATION
This press release contains forward-looking statements,
including, but not limited to, forecasted 2016 GAAP and constant
currency revenue growth and GAAP and adjusted diluted earnings per
share; the timing of commencement and completion of the
restructuring plan approved by the Board of Directors on February
23, 2016 (the "2016 Restructuring Plan"); estimated pre-tax charges
and future cash outlays under the 2016 Restructuring Plan;
anticipated annualized savings under the 2016 Restructuring Plan;
and the expected general exclusion of charges in connection with
the 2016 Restructuring Plan from our adjusted earnings per share
results. 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, including as a result of difficulties
with various employees, labor representatives or regulators; the
loss of skilled employees in connection with such initiatives;
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, including fluctuations in foreign currency
exchange rates; 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,
2015.
TELEFLEX INCORPORATED
CONSOLIDATED STATEMENTS OF
INCOME
(unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2015 2014 2015
2014
(Dollars and shares in thousands,
except per share)
Net revenues $ 484,501 $ 476,008 $ 1,809,690
$ 1,839,832 Cost of goods sold 224,185
234,993 865,287 897,404 Gross
profit 260,316 241,015 944,403 942,428 Selling, general and
administrative expenses 148,217 153,265 568,982 578,657 Research
and development expenses 13,221 17,237 52,119 61,040 Restructuring
and other impairment charges 2,131 1,358 7,819 17,869 Gain on sale
of assets — — (408 ) —
Income from continuing operations before interest, loss on
extinguishment of debt and taxes 96,747 69,155 315,891 284,862
Interest expense 13,638 16,808 61,323 65,458 Interest income (79 )
(212 ) (532 ) (706 ) Loss on extinguishment of debt —
— 10,454 — Income from
continuing operations before taxes 83,188 52,559 244,646 220,110
Taxes on income from continuing operations (7,577 )
426 7,838 28,650 Income from
continuing operations 90,765 52,133
236,808 191,460 Operating loss from
discontinued operations (298 ) (1,541 ) (1,730 ) (3,407 ) Tax
(benefit) on loss from discontinued operations (10,815 )
(353 ) (10,635 ) (698 ) Gain (loss) on
discontinued operations 10,517 (1,188 )
8,905 (2,709 ) Net income 101,282 50,945 245,713
188,751 Less: Income from continuing operations attributable to
noncontrolling interest 158 307
850 1,072 Net income attributable to common
shareholders $ 101,124 $ 50,638 $ 244,863 $
187,679 Earnings per share available to common shareholders:
Basic: Income from continuing operations $ 2.18 $ 1.25 $ 5.68 $
4.60 Income (loss) on discontinued operations 0.25
(0.03 ) 0.21 (0.06 ) Net income $ 2.43
$ 1.22 $ 5.89 $ 4.54 Diluted: Income
from continuing operations $ 1.88 $ 1.10 $ 4.91 $ 4.10 Income
(loss) on discontinued operations 0.21 (0.03 )
0.19 (0.06 ) Net income $ 2.09 $ 1.07
$ 5.10 $ 4.04
Dividends per share
$ 0.34 $ 0.34 $ 1.36 $ 1.36
Weighted average common shares
outstanding:
Basic 41,606 41,425 41,558 41,366 Diluted 48,323 47,112 48,058
46,470
Amounts attributable to common
shareholders:
Income from continuing operations, net of tax $ 90,607 $ 51,826 $
235,958 $ 190,388 Income (loss) from discontinued operations, net
of tax 10,517 (1,188 ) 8,905
(2,709 ) Net income $ 101,124 $ 50,638 $
244,863 $ 187,679
TELEFLEX INCORPORATED
CONSOLIDATED BALANCE SHEETS
(unaudited)
December 31, 2015 2014
(Dollars and shares in thousands) ASSETS Current
assets Cash and cash equivalents $ 338,366 $ 303,236 Accounts
receivable, net 262,416 273,704 Inventories, net 330,275 335,593
Prepaid expenses and other current assets 37,507 35,697 Prepaid
taxes 30,895 40,256 Assets held for sale 6,972
7,422 Total current assets 1,006,431 995,908 Property, plant
and equipment, net 316,123 317,435 Goodwill 1,295,852 1,323,553
Intangibles assets, net 1,199,975 1,216,720 Investments in
affiliates 152 1,150 Deferred tax assets 2,341 4,011 Other assets
57,642 64,010 Total assets $ 3,878,516
$ 3,922,787
LIABILITIES AND EQUITY Current
liabilities Current borrowings $ 419,942 $ 368,401 Accounts payable
66,305 64,100 Accrued expenses 64,017 72,383 Current portion of
contingent consideration 7,291 11,276 Payroll and benefit-related
liabilities 84,658 85,442 Accrued interest 7,480 9,169 Income taxes
payable 8,059 13,768 Other current liabilities 8,960
8,230 Total current liabilities 666,712 632,769
Long-term borrowings 646,000 700,000 Deferred tax liabilities
315,983 399,203 Pension and postretirement benefit liabilities
149,441 167,241 Noncurrent liability for uncertain tax positions
40,400 50,884 Other liabilities 48,887 58,991
Total liabilities 1,867,423 2,009,088 Commitments and
contingencies Common shareholders’ equity Common shares, $1 par
value Issued: 2015 — 43,517 shares; 2014 — 43,420 shares 43,517
43,420 Additional paid-in capital 440,127 422,394 Retained earnings
2,016,176 1,827,845 Accumulated other comprehensive loss
(371,124 ) (260,895 ) 2,128,696 2,032,764 Less: Treasury
stock, at cost 119,424 121,455 Total
common shareholders’ equity 2,009,272
1,911,309 Noncontrolling interest 1,821
2,390 Total equity 2,011,093 1,913,699
Total liabilities and equity $ 3,878,516 $ 3,922,787
TELEFLEX INCORPORATED
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(unaudited)
Year Ended December 31,
2015 2014 (Dollars in thousands)
Cash flows from operating activities of continuing operations: Net
income $ 245,713 $ 188,751 Adjustments to reconcile net income to
net cash provided by operating activities: (Income) loss from
discontinued operations (8,905 ) 2,709 Depreciation expense 46,013
50,207 Amortization expense of intangible assets 62,380 60,926
Amortization expense of deferred financing costs and debt discount
16,941 15,897 Loss on extinguishment of debt 10,454 — Changes in
contingent consideration (4,576 ) (7,418 ) Impairment of long-lived
assets — — Stock-based compensation 14,467 12,227 Net gain on sales
of businesses and assets (408 ) — Deferred income taxes, net
(54,413 ) (14,153 ) Other (20,775 ) (8,968 ) Changes in operating
assets and liabilities, net of effects of acquisitions and
disposals: Accounts receivable 398 9,394 Inventories (8,371 )
(15,531 ) Prepaid expenses and other current assets (3,027 ) 1,422
Accounts payable and accrued expenses (117 ) 9,818 Income taxes
receivable and payable, net 7,672 (15,040 )
Net cash provided by operating activities from continuing
operations 303,446 290,241 Cash flows
from investing activities of continuing operations: Expenditures
for property, plant and equipment (61,448 ) (67,571 ) Payments for
businesses and intangibles acquired, net of cash acquired (93,808 )
(45,777 ) Proceeds from sales of businesses and assets 408 5,251
Investments in affiliates — (40 ) Net cash
used in investing activities from continuing operations
(154,848 ) (108,137 ) Cash flows from financing activities
of continuing operations: Proceeds from new borrowings 288,100
250,000 Reduction in borrowings (303,757 ) (480,102 ) Debt
extinguishment, issuance and amendment fees (9,017 ) (4,494 )
Proceeds from share based compensation plans and the related tax
impacts 4,994 4,245 Payments to noncontrolling interest
shareholders (1,343 ) (1,094 ) Payments for contingent
consideration (8,028 ) — Dividends (56,532 ) (56,258
) Net cash (used in) financing activities from continuing
operations (85,583 ) (287,703 ) Cash flows from
discontinued operations: Net cash used in operating activities
(2,636 ) (3,676 ) Net cash used in discontinued
operations (2,636 ) (3,676 ) Effect of exchange rate
changes on cash and cash equivalents (25,249 )
(19,473 ) Net increase (decrease) in cash and cash equivalents
35,130 (128,748 ) Cash and cash equivalents at the beginning of the
year 303,236 431,984 Cash and cash
equivalents at the end of the year $ 338,366 $ 303,236
Supplemental Cash Flow Information: Cash interest paid $
45,973 $ 49,797 Income taxes paid, net of refunds $
56,079 $ 52,869
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version on businesswire.com: http://www.businesswire.com/news/home/20160225005167/en/
Teleflex IncorporatedJake ElguiczeTreasurer and Vice President
of Investor Relations610-948-2836
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