Second Quarter Revenues of $528.6 million,
up 11.6% Versus Prior Year Period; up 12.9% on Constant Currency
Basis
Second Quarter GAAP Diluted EPS of $1.67, up
33.6% Over Prior Year Period
Second Quarter Adjusted Diluted EPS of
$2.04, up 7.9% Versus Prior Year Period
Raised 2017 Guidance Range for GAAP Revenue
Growth from a Range of 10.0% to 11.5% to a Range of 11.5% to
13.0%
Reaffirmed 2017 Guidance Range for Constant
Currency Revenue Growth of 12.5% to 14.0%
Raised 2017 Guidance for GAAP Diluted EPS
from a Range of $5.59 to $5.66 to a Range of $5.91 to $5.98
Raised 2017 Guidance for Adjusted Diluted
EPS from a Range of $8.05 to $8.23 to a Range of $8.20 to
$8.35
Teleflex Incorporated (NYSE: TFX) (the “Company”) today
announced financial results for the second quarter ended July 2,
2017.
Second quarter 2017 net revenues were $528.6 million, an
increase of 11.6% compared to the prior year period. Excluding the
impact of foreign currency exchange rate fluctuations, second
quarter 2017 net revenues increased 12.9% over the year ago
period.
Second quarter 2017 GAAP diluted earnings per share from
continuing operations increased 33.6% to $1.67, as compared to
$1.25 in the prior year period. Second quarter 2017 adjusted
diluted earnings per share from continuing operations increased
7.9% to $2.04, compared to $1.89 in the prior year period.
“During the second quarter of 2017, Teleflex continued to
achieve solid results across our strategic business units and
geographies, positioning us to reaffirm our full year constant
currency revenue growth guidance range, while enabling us to once
again increase our full year 2017 GAAP and adjusted earnings per
share guidance ranges,” said Benson Smith, Chairman and Chief
Executive Officer. “Setting aside the impact of Vascular Solutions
and one fewer shipping day in the quarter as compared to the second
quarter of 2016, Teleflex posted solid growth on a constant
currency basis, driven by strong performance in our OEM, Vascular
North America, Surgical North America and EMEA segments. In
addition, Vascular Solutions continues to perform in-line with our
expectations and the integration activities associated with this
acquisition remain on-track. Also within the quarter, we made
significant progress with our distributor to direct conversion in
China, and as such, we anticipate an acceleration in revenue growth
in the second half of the year in China, as compared to the
headwind we experienced during the first half of 2017."
Added Mr. Smith, "During the second quarter of 2017, we
continued to execute on our margin expansion initiatives,
delivering solid gross and operating margins. Finally, the Company
continued to generate strong cash flow, enabling us to repay
borrowings equivalent to approximately ten percent of the Vascular
Solutions purchase price within only a few months after closing the
transaction."
SECOND QUARTER NET REVENUE BY SEGMENT
The following table provides information regarding net revenues
in each of the Company's reportable operating segments and all of
its other operating segments for the three months ended July 2,
2017 and June 26, 2016 on both a GAAP and constant currency basis.
The discussion below the table of the principal factors behind
changes in net revenues for the three months ended July 2, 2017 as
compared to the prior year period applies to both GAAP revenue and
constant currency revenue, although GAAP revenue also was affected
by foreign currency exchange rate fluctuations, as indicated in the
"Foreign Currency" column of the table.
Three Months Ended %
Increase/ (Decrease) July 2, 2017 June
26, 2016
ConstantCurrency
ForeignCurrency
TotalChange
(Dollars in millions) Vascular North America $ 93.5 $
88.2 6.3 % (0.2 ) % 6.1 % Surgical North America 44.7 43.1 4.0 %
(0.3 ) % 3.7 % Anesthesia North America 49.1 49.2 (0.1 ) % (0.1 ) %
(0.2 ) % EMEA 132.0 131.7 3.2 % (3.0 ) % 0.2 % Asia 64.0 63.2 3.1 %
(1.8 ) % 1.3 % OEM 45.1 40.3 12.5 % (0.5 ) % 12.0 % All Other
100.2 57.9 73.1 % (0.1 ) % 73.0
% Total $ 528.6 $ 473.6 12.9 % (1.3 ) %
11.6 %
Vascular North America second quarter 2017 net revenues were
$93.5 million, an increase of 6.1% compared to the prior year
period. Excluding the impact of foreign currency exchange rate
fluctuations, second quarter 2017 net revenues increased 6.3%
compared to the prior year period. The increase in constant
currency revenue is primarily attributable to an increase in sales
volumes of existing products, which reflects the unfavorable impact
of one less shipping day in the second quarter 2017, and an
increase in new product sales.
Surgical North America second quarter 2017 net revenues were
$44.7 million, an increase of 3.7% compared to the prior year
period. Excluding the impact of foreign currency exchange rate
fluctuations, second quarter 2017 net revenues increased 4.0%
compared to the prior year period. The increase in constant
currency revenue is primarily attributable to an increase in new
product sales and price increases. Sales volumes of existing
products, which were marginally higher than in the prior year
period, were adversely affected by the impact of one less shipping
day in the second quarter 2017.
Anesthesia North America second quarter 2017 net revenues were
$49.1 million, a decrease of 0.2% compared to the prior year
period. Excluding the impact of foreign currency exchange rate
fluctuations, second quarter 2017 net revenues decreased 0.1%
compared to the prior year period. The decrease in constant
currency revenue is primarily attributable to a decrease in sales
volumes of existing products, which reflects the unfavorable impact
of one less shipping day in the second quarter 2017, partially
offset by an increase in net revenues generated by an acquired
business and an increase in new product sales.
EMEA second quarter 2017 net revenues were $132.0 million, an
increase of 0.2% compared to the prior year period. Excluding the
impact of foreign currency exchange rate fluctuations, second
quarter 2017 net revenues increased 3.2% compared to the prior year
period. The increase in constant currency revenue is primarily
attributable to an increase in sales volumes of existing products,
despite the unfavorable impact of one less shipping day in the
second quarter 2017, and an increase in new product sales.
Asia second quarter 2017 net revenues were $64.0 million, an
increase of 1.3% compared to the prior year period. Excluding the
impact of foreign currency exchange rate fluctuations, second
quarter 2017 net revenues increased 3.1%. The increase in constant
currency revenue is primarily attributable to price increases and
an increase in new product sales. Increases in sales volumes of
existing products were more than offset by volume declines
resulting from the distributor to direct sales conversion in
China.
OEM and Development Services (“OEM”) second quarter 2017 net
revenues were $45.1 million, an increase of 12.0% compared to the
prior year period. Excluding the impact of foreign currency
exchange rate fluctuations, second quarter 2017 net revenues
increased 12.5% compared to the prior year period. The increase in
constant currency revenue is primarily attributable to net revenues
generated by an acquired business and an increase in sales volumes
of existing products.
All Other second quarter 2017 net revenues were $100.2 million,
an increase of 73.0% compared to the prior year period. Excluding
the impact of foreign currency exchange rate fluctuations, second
quarter 2017 net revenues increased 73.1% compared to the prior
year period. The increase in constant currency revenue is primarily
attributable to net revenues generated by sales of Vascular
Solutions' products.
OTHER FINANCIAL HIGHLIGHTS AND KEY PERFORMANCE
METRICS
Depreciation expense, amortization of intangible assets and
deferred financing charges for the first six months of 2017 totaled
$72.3 million compared to $64.6 million for the prior year
period.
Cash and cash equivalents at July 2, 2017 were $676.2 million
compared to $543.8 million at December 31, 2016.
Net accounts receivable at July 2, 2017 were $303.7 million
compared to $272.0 million at December 31, 2016.
Net inventories at July 2, 2017 were $368.5 million compared to
$316.2 million at December 31, 2016.
2017 OUTLOOK
The Company raised its full year 2017 GAAP revenue growth
guidance range from 10.0% to 11.5% to a range of 11.5% to 13.0%
over the prior year. The Company's previous 2017 GAAP revenue
growth guidance range reflected the anticipated 2.5% unfavorable
impact of foreign currency exchange rate fluctuations. The
Company's current 2017 GAAP revenue growth guidance range reflects
an anticipated 1.0% unfavorable impact of foreign currency exchange
rate fluctuations. On a constant currency basis, the Company
reaffirmed its estimate that revenues for full year 2017 will
increase 12.5% to 14.0%. The forecasted revenue growth includes the
impact of Vascular Solutions' product sales, which are expected to
contribute approximately 8.5% to 9.0% to our revenue growth on a
GAAP and constant currency basis.
The Company raised its full year 2017 GAAP diluted earnings per
share from continuing operations guidance from a range of $5.59 to
$5.66 to a range of $5.91 to $5.98. The Company raised its full
year 2017 adjusted diluted earnings per share from continuing
operations guidance from a range of $8.05 to $8.23 to a guidance
range of $8.20 to $8.35.
Forecasted 2017 Constant Currency Revenue
Growth Reconciliation
Low High Forecasted 2017 GAAP
revenue growth 11.5 % 13.0 % Estimated impact
of foreign currency exchange rate fluctuations 1.0 %
1.0 % Forecasted 2017 constant currency revenue
growth 12.5 % 14.0 %
Forecasted 2017 Adjusted Earnings Per
Share Reconciliation
Low High Diluted earnings per
share attributable to common shareholders $5.91 $5.98
Restructuring, impairment charges and special items, net of tax
$0.96 $1.00 Intangible amortization expense, net of tax
$1.32 $1.35 Amortization of debt discount on convertible
notes, net of tax $0.01 $0.02 Adjusted
diluted earnings per share $8.20 $8.35
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 August 10, 2017 at 11:59pm
(ET), by calling 855-859-2056 (U.S./Canada) or 404-537-3406
(International), Passcode: 56173289.
ADDITIONAL NOTES
References in this release to the impact of foreign currency
exchange rate fluctuations 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 non-GAAP measure is
based upon diluted earnings per share, adjusted to exclude,
depending on the period presented (i) restructuring and other
impairment charges; (ii) certain losses and other charges,
including, for 2017, costs related to the Company's acquisition of
Vascular Solutions, facility consolidation costs and income
associated with a litigation settlement and, for 2016, charges
primarily related to facility consolidation costs; (iii)
amortization of the debt discount on the Company’s convertible
notes; (iv) intangible amortization expense; (v) tax benefits
resulting primarily from the expiration of applicable statutes of
limitations for prior year returns, the resolution of audits, the
filing of amended returns with respect to prior tax years and/or
tax law changes affecting the Company's deferred tax liability; and
(vi) loss on extinguishment of debt. 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 non-GAAP measure is based
upon net revenues, adjusted to eliminate 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 and, as a result, they facilitate comparisons
of financial results exclusive of items that can fluctuate in a
manner that may not reflect the performance of our business. 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. A table reconciling historical constant currency net
revenues to GAAP net revenues is set forth above under “Second
Quarter Net Revenues by Segment.” Tables reconciling forecasted
2017 constant currency revenue growth and forecasted 2017 adjusted
earnings per share to their respective most directly comparable
forecasted GAAP measures are set forth above under “2017
Outlook.”
RECONCILIATION OF CONSOLIDATED
STATEMENT OF INCOME ITEMS
Dollars in millions, except per share
amounts
Quarter Ended - July 2, 2017
Cost of goods sold
Selling, general and administrative
expenses
Research and development
expenses
Restructuring and other impairment
charges
(Gain) loss on sale of business and
assets
Interest expense, net
Loss on extinguishment of debt,
net
Income taxes
Net income (loss) attributable to
common shareholders from continuing operations
Diluted earnings per share available to
common shareholders
Shares used in calculation of GAAP and
adjusted earnings per share
GAAP Basis $238.3 $158.9 $20.3 $0.9 — $19.7 $0.0 $12.1 $78.4 $1.67
46,818 Adjustments
Restructuring and other impairment
charges
— — — 0.9 — — — 0.5 0.3 $0.01 —
Losses and other charges, net (A)
5.0 (6.3 ) 0.3 — — — — (0.4 ) (0.5 ) ($0.02 ) —
Amortization of debt discount on
convertible notes
— — — — — 0.4 — 0.1 0.2 $0.01 —
Intangible amortization expense
— 22.5 0.1 — — — — 6.5 16.1 $0.34 —
Tax adjustment (B)
— — — — — — — — — — —
Loss on extinguishment of debt, net
— — — — — — 0.0 0.0 0.0 $0.00 —
Shares due to Teleflex under note hedge
(C)
— — — — — — — — — $0.02 (501 )
Adjusted basis
$233.3 $142.7 $19.8 — — $19.4 — $18.8 $94.6 $2.04 46,317
Quarter Ended - June 26, 2016
Cost of goods sold
Selling, general and administrative
expenses
Research and development
expenses
Restructuring and other impairment
charges
(Gain) loss on sale of business and
assets
Interest expense, net
Loss on extinguishment of debt,
net
Income taxes
Net income (loss) attributable to
common shareholders from continuing operations
Diluted earnings per share available to
common shareholders
Shares used in calculation of GAAP and
adjusted earnings per share
GAAP Basis $217.2 $143.0 $15.5 ($0.1) ($0.4 ) $11.8 $19.3 $8.0
$59.1 $1.25 47,246 Adjustments
Restructuring and other impairment
charges
— — — (0.1 ) — — — 0.1 (0.2 ) ($0.00) —
Losses and other charges, net (A)
4.0 1.2 0.0 — (0.4 ) — — 1.9 2.9 $0.07 —
Amortization of debt discount on
convertible notes
— — — — — 1.4 — 0.5 0.9 $0.02 —
Intangible amortization expense
— 15.9 0.1 — — — — 4.3 11.8 $0.25 —
Tax adjustment (B)
— — — — — — — 0.5 (0.5 ) ($0.01 ) —
Loss on extinguishment of debt, net
— — — — — — 19.3 7.0 12.2 $0.26 —
Shares due to Teleflex under note hedge
(C)
— — — — — — — — — $0.07 (1,675 ) Adjusted basis $213.2 $125.9 $15.3
— — $10.3 — $22.4 $86.2 $1.89 45,571
(A) In 2017, losses and other charges, net related primarily to
income associated with a litigation settlement, somewhat offset by
costs associated with the acquisition of Vascular Solutions and
facility consolidation costs. In 2016, losses and other charges,
net related primarily to facility consolidations.
(B) The tax adjustment represents a net benefit resulting
primarily from the expiration of applicable statutes of limitations
for prior year returns, the resolution of audits, the filing of
amended returns with respect to prior tax years and/or 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 the Company's 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
Year-to-date Ended - July 2, 2017
Cost of goods sold
Selling, general and administrative
expenses
Research and development
expenses
Restructuring and other impairment
charges
(Gain) loss on sale of business and
assets
Interest expense, net
Loss on extinguishment of debt,
net
Income taxes
Net income (loss) attributable to
common shareholders from continuing operations
Diluted earnings per share available to
common shareholders
Shares used in calculation of GAAP and
adjusted earnings per share
GAAP Basis $470.7 $322.9 $38.1 $13.8 — $37.3 $5.6 $9.4 $118.7 $2.54
46,716 Adjustments
Restructuring and other impairment
charges
— — — 13.8 — — — 3.5 10.3 $0.22 —
Losses and other charges, net (A)
16.6 3.3 0.6 — — 2.1 — 7.3 15.2 $0.33 —
Amortization of debt discount on
convertible notes
—
— — — — 0.8 — 0.3 0.5 $0.01 —
Intangible amortization expense
— 41.2 0.2 — — — — 11.6 29.8 $0.64 —
Tax adjustment (B)
— — — — — — — 0.5 (0.5 ) ($0.01) —
Loss on extinguishment of debt, net
— — — — — — 5.6 2.0 3.5 $0.08 —
Shares due to Teleflex under note hedge
(C)
— — — — — — — — — $0.04 (489 )
Adjusted basis
$454.1 $278.4 $37.3 — — $34.5 — $34.7 $177.5 $3.84 46,227
Year-to-date Ended - June 26, 2016
Cost of goods sold
Selling, general and administrative
expenses
Research and development
expenses
Restructuring and other impairment
charges
(Gain) loss on sale of business and
assets
Interest expense, net
Loss on extinguishment of debt,
net
Income taxes
Net income (loss) attributable to
common shareholders from continuing operations
Diluted earnings per share available to
common shareholders
Shares used in calculation of GAAP and
adjusted earnings per share
GAAP Basis $416.9 $279.3 $27.8 $9.8 ($1.4 ) $25.5 $19.3 $10.6
$110.1 $2.29 48,014 Adjustments
Restructuring and other impairment
charges
— — — 9.8 — — — 2.4 7.4 $0.15 —
Losses and other charges, net (A)
6.6 1.8 0.0 — (1.4 ) — — 2.8 4.4 $0.08 —
Amortization of debt discount on
convertible notes
—
—
— — — 4.9 — 1.8 3.1 $0.06 —
Intangible amortization expense
— 31.2 0.2 — — — — 8.4 23.0 $0.48 —
Tax adjustment (B)
— — — — — — — 5.5 (5.5 ) ($0.11 ) —
Loss on extinguishment of debt, net
— — — — — — 19.3 7.0 12.2 $0.25 —
Shares due to Teleflex under note hedge
(C)
— — — — — — — — — $0.19 (2,648 ) Adjusted basis $410.3 $246.3 $27.6
— — $20.6 — $38.5 $154.7 $3.41 45,366
(A) In 2017, losses and other charges, net related primarily to
costs associated with the acquisition of Vascular Solutions and
facility consolidation costs, somewhat offset by income associated
with a litigation settlement. In 2016, losses and other charges,
net related primarily to facility consolidations.
(B) The tax adjustment represents a net benefit resulting
primarily from the expiration of applicable statutes of limitations
for prior year returns, the resolution of audits, the filing of
amended returns with respect to prior tax years and/or 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 the Company's convertible
notes. Under GAAP, the anti-dilutive impact of the convertible note
hedge agreements is not reflected in diluted shares.
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 2017 GAAP and constant
currency revenue growth and GAAP and adjusted diluted earnings per
share. Actual results could differ materially from those in the
forward-looking statements due to, among other things, changes in
business relationships with and purchases by or from major
customers or suppliers; delays or cancellations in shipments;
demand for and market acceptance of new and existing products; our
inability to integrate acquired businesses into our operations,
realize planned synergies and operate such businesses profitably in
accordance with our expectations; our inability to effectively
execute our restructuring programs; our inability to realize
anticipated savings from restructuring plans and programs; the
impact of healthcare reform legislation and proposals to amend the
legislation; changes in Medicare, Medicaid and third party coverage
and reimbursements; competitive market conditions and resulting
effects on revenues and pricing; increases in raw material costs
that cannot be recovered in product pricing; global economic
factors, including currency exchange rates, interest rates,
sovereign debt issues and the impact of the United Kingdom's vote
to leave the European Union; difficulties in entering new markets;
general economic conditions; and other factors described or
incorporated in our filings with the Securities and Exchange
Commission, including our most recently filed Annual Report on Form
10-K.
TELEFLEX INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
(Unaudited)
Three Months Ended Six Months Ended July 2,
2017 June 26, 2016 July 2, 2017
June 26, 2016 (Dollars and shares in
thousands, except per share) Net revenues $ 528,613 $ 473,553 $
1,016,494 $ 898,446 Cost of goods sold 238,329
217,154 470,650 416,900 Gross
profit 290,284 256,399 545,844 481,546 Selling, general and
administrative expenses 158,934 142,983 322,903 279,331 Research
and development expenses 20,278 15,472 38,105 27,825 Restructuring
charges 870 (119 ) 13,815 9,849 Gain on sale of assets —
(378 ) — (1,397 ) Income from
continuing operations before interest, loss on extinguishment of
debt and taxes 110,202 98,441 171,021 165,938 Interest expense
19,894 11,907 37,620 25,691 Interest income (161 ) (129 ) (330 )
(209 ) Loss on extinguishment of debt 11
19,261 5,593 19,261 Income from
continuing operations before taxes 90,458 67,402 128,138 121,195
Taxes on income from continuing operations 12,095
8,007 9,426 10,620 Income
from continuing operations 78,363 59,395
118,712 110,575 Operating income
(loss) from discontinued operations (566 ) 6 (848 ) (376 ) Benefit
on income (loss) from discontinued operations (206 )
(187 ) (309 ) (257 ) Income (loss) from discontinued
operations (360 ) 193
(539 ) (119 ) Net income 78,003 59,588 118,173 110,456 Less:
Income from continuing operations attributable to noncontrolling
interest — 285 —
464 Net income attributable to common shareholders $ 78,003
$ 59,303 $ 118,173 $ 109,992 Earnings
per share available to common shareholders: Basic: Income from
continuing operations $ 1.74 $ 1.36 $ 2.64 $ 2.58 Income (loss)
from discontinued operations (0.01 ) —
(0.01 ) — Net income $ 1.73 $ 1.36 $
2.63 $ 2.58 Diluted: Income from continuing
operations $ 1.67 $ 1.25 $ 2.54 $ 2.29 Loss from discontinued
operations — 0.01 (0.01 )
— Net income $ 1.67 $ 1.26 $ 2.53 $
2.29 Dividends per share $ 0.34 $ 0.34 $ 0.68 $ 0.68
Weighted average common shares outstanding Basic 44,996 43,549
44,945 42,598 Diluted 46,818 47,246 46,716 48,014 Amounts
attributable to common shareholders: Income from continuing
operations, net of tax $ 78,363 $ 59,110 $ 118,712 $ 110,111 Income
(loss) from discontinued operations, net of tax (360 )
193 (539 ) (119 ) Net income $ 78,003
$ 59,303 $ 118,173 $ 109,992
TELEFLEX INCORPORATED
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
July 2, 2017 December 31, 2016 (Dollars in
thousands) ASSETS Current assets Cash and cash
equivalents $ 676,214 $ 543,789 Accounts receivable, net 303,702
271,993 Inventories, net 368,526 316,171 Prepaid expenses and other
current assets 47,298 40,382 Prepaid taxes 11,878 8,179 Assets held
for sale — 2,879 Total current assets 1,407,618 1,183,393
Property, plant and equipment, net 369,301 302,899 Goodwill
1,854,076
1,276,720 Intangible assets, net
1,612,904
1,091,663 Deferred tax assets 1,963 1,712 Other assets 44,162
34,826 Total assets $
5,290,024
$ 3,891,213
LIABILITIES AND EQUITY Current
liabilities Current borrowings $ 112,039 $ 183,071 Accounts payable
81,973 69,400 Accrued expenses 85,050 65,149 Current portion of
contingent consideration 584 587 Payroll and benefit-related
liabilities 78,951 82,679 Accrued interest 5,294 10,450 Income
taxes payable 3,438 7,908 Other current liabilities 8,722
8,402 Total current liabilities 376,051 427,646 Long-term
borrowings 1,887,716 850,252 Deferred tax liabilities 468,034
271,377 Pension and postretirement benefit liabilities 128,335
133,062 Noncurrent liability for uncertain tax positions 18,378
17,520 Other liabilities 52,981 52,015 Total liabilities
2,931,495 1,751,872 Commitments and contingencies Convertible notes
- redeemable equity component — 1,824 Mezzanine equity —
1,824 Total shareholders' equity
2,358,529
2,137,517 Total liabilities and shareholders' equity $
5,290,024
$ 3,891,213
TELEFLEX INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited)
Six Months Ended July 2, 2017
June 26, 2016 (Dollars in thousands) Cash flows from
operating activities of continuing operations: Net income $ 118,173
$ 110,456 Adjustments to reconcile net income to net cash provided
by operating activities: Loss from discontinued operations 539 119
Depreciation expense 28,084 26,609 Amortization expense of
intangible assets 41,375 31,397 Amortization expense of deferred
financing costs and debt discount 2,825 6,554 Loss on
extinguishment of debt 5,593 19,261 Gain on sale of assets — (1,397
) Fair value step up of acquired inventory sold 10,442 — Changes in
contingent consideration (237 ) 1,242 Stock-based compensation
9,534 7,949 Deferred income taxes, net (8,779 ) (1,292 ) Other
(3,300 ) (1,970 ) Changes in operating assets and liabilities, net
of effects of acquisitions and disposals: Accounts receivable 5,071
(10,237 ) Inventories (12,187 ) (3,284 ) Prepaid expenses and other
current assets 4 238 Accounts payable and accrued expenses 6,541
(3,500 ) Income taxes receivable and payable, net (5,988 )
(657 ) Net cash provided by operating activities from
continuing operations 197,690 181,488
Cash flows from investing activities of continuing operations:
Expenditures for property, plant and equipment (36,833 ) (19,535 )
Proceeds from sale of assets 6,332 3,985 Payments for businesses
and intangibles acquired, net of cash acquired (993,459 )
(3,117 ) Net cash used in investing activities from
continuing operations (1,023,960 ) (18,667 ) Cash
flows from financing activities of continuing operations: Proceeds
from new borrowings 1,194,500 665,000 Reduction in borrowings
(228,273 ) (656,479 ) Debt extinguishment, issuance and amendment
fees (19,114 ) (8,182 ) Net proceeds from share based compensation
plans and the related tax impacts 1,305 6,593 Payments for
contingent consideration (153 ) (133 ) Dividends paid
(30,590 ) (28,998 ) Net cash provided by (used in) financing
activities from continuing operations 917,675
(22,199 ) Cash flows from discontinued operations: Net cash used in
operating activities (961 ) (1,183 ) Net cash used in
discontinued operations (961 ) (1,183 ) Effect of
exchange rate changes on cash and cash equivalents 41,981
(1,315 ) Net increase in cash and cash equivalents
132,425 138,124 Cash and cash equivalents at the beginning of the
period 543,789 338,366 Cash and cash
equivalents at the end of the period $ 676,214 $ 476,490
Non cash financing activities of continuing
operations: Settlement and exchange of convertible notes with
common or treasury stock $ 983 $ 35,197 Acquisition of treasury
stock associated with settlement and exchange of convertible note
hedge and warrant agreements $ 19,361 $ 85,895
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version on businesswire.com: http://www.businesswire.com/news/home/20170803005050/en/
Teleflex IncorporatedJake ElguiczeTreasurer and Vice President
of Investor Relations610-948-2836
Teleflex (NYSE:TFX)
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