Third Quarter Revenues of $455.6 million, up
2.7% Versus Prior Year Period; up 3.1% on Constant Currency
Basis
Third Quarter GAAP Diluted EPS of $1.40, up
10.2% Over the Prior Year Period
Third Quarter Adjusted Diluted EPS of $1.80,
up 12.5%
Updated 2016 Guidance Ranges for GAAP
Revenue Growth from 3.0% to 4.0% to 2.4% to 2.8% and Constant
Currency Revenue Growth from 5.0% to 6.0% to 3.4% to 3.8%
Reaffirmed 2016 Guidance Range for GAAP
Diluted EPS of $5.34 to $5.41
Increased 2016 Guidance Range for Adjusted
Diluted EPS from $7.20 to $7.32 to $7.25 to $7.34
Teleflex Incorporated (NYSE: TFX) (the “Company”) today
announced financial results for the third quarter ended September
25, 2016.
Third quarter 2016 net revenues were $455.6 million, an increase
of 2.7% compared to the prior year period. Excluding the impact of
foreign currency exchange rate fluctuations, third quarter 2016 net
revenues increased 3.1% over the year ago period.
Third quarter 2016 GAAP diluted earnings per share from
continuing operations increased 10.2% to $1.40, as compared to
$1.27 in the prior year period. Third quarter 2016 adjusted diluted
earnings per share from continuing operations increased 12.5% to
$1.80, compared to $1.60 in the prior year period.
“Third quarter sales were below our expectations, driven in part
by weakness in certain Asian emerging markets, continued softness
in oil-based Latin American economies, the timing of distributor
purchases which negatively impacted some of our North American
product lines and a slower than initially anticipated contribution
from revenue associated with new products,” said Benson Smith,
Chairman and Chief Executive Officer. “Despite the softness in
revenue, non-revenue dependent financial leverage allowed the
Company's adjusted earnings per share performance in the third
quarter to exceed our expectations."
Added Smith, "Based on the performance during the third quarter,
as well as our expectations for the remainder of the year, we are
lowering our full year 2016 GAAP and constant currency revenue
growth ranges. We now expect our full year 2016 GAAP and constant
currency revenue to grow between 2.4% to 2.8% and 3.4% to 3.8%,
respectively. Despite the reduction in revenue growth expectations,
we are maintaining our full year GAAP earnings per share range of
$5.34 to $5.41 and increasing our full year adjusted earnings per
share range to be $7.25 to $7.34."
THIRD 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 September
25, 2016 and September 27, 2015 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
September 25, 2016 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)
September 25,
2016
September 27,
2015
Constant
Currency
Foreign
Currency
Total
Change
(Dollars in millions) Vascular North America $ 85.1 $ 82.6 3.0 % —
3.0 % Surgical North America 41.9 39.6 5.7 % (0.1 )% 5.6 %
Anesthesia North America 48.7 47.6 2.2 % — 2.2 % EMEA 121.4 120.9
2.2 % (1.7 )% 0.5 % Asia 64.0 61.9 2.1 % 1.4 % 3.5 % OEM 41.4 39.0
6.3 % — 6.3 % All Other 53.1 52.1 2.8 % (0.8 )% 2.0 %
Total $ 455.6 $ 443.7 3.1 % (0.4 )% 2.7 %
Vascular North America third quarter 2016 net revenues were
$85.1 million, an increase of 3.0% compared to the prior year
period on both a GAAP and constant currency basis. The constant
currency increase in revenue was largely due to an increase in new
product sales and price increases.
Surgical North America third quarter 2016 net revenues were
$41.9 million, an increase of 5.6% compared to the prior year
period. Excluding the impact of foreign currency exchange rate
fluctuations, third quarter 2016 net revenues increased 5.7%
compared to the prior year period. The constant currency increase
in revenue was largely due to an increase in new product sales and
price increases.
Anesthesia North America third quarter 2016 net revenues were
$48.7 million, an increase of 2.2% compared to the prior year
period on both a GAAP and constant currency basis. The constant
currency increase in revenue was largely due to an increase in new
product sales.
EMEA third quarter 2016 net revenues were $121.4 million, an
increase of 0.5% compared to the prior year period. Excluding the
impact of foreign currency exchange rate fluctuations, third
quarter 2016 net revenues increased 2.2% compared to the prior year
period. The constant currency increase in revenue was largely due
to higher sales volumes of both existing and new products.
Asia third quarter 2016 net revenues were $64.0 million, an
increase of 3.5% compared to the prior year period. Excluding the
impact of foreign currency exchange rate fluctuations, third
quarter 2016 net revenues increased 2.1% compared to the prior year
period. The constant currency increase in revenue was largely due
to price increases.
OEM and Development Services (“OEM”) third quarter 2016 net
revenues were $41.4 million, an increase of 6.3% compared to the
prior year period on both a GAAP and constant currency basis. The
constant currency increase in revenue was largely due to higher
sales volumes of existing products and revenues generated by
acquired businesses.
OTHER FINANCIAL HIGHLIGHTS AND KEY PERFORMANCE
METRICS
Depreciation expense, amortization of intangible assets and
deferred financing charges for the first nine months of 2016
aggregated $96.3 million compared to $92.0 million for the prior
year period.
Cash and cash equivalents at September 25, 2016 were $499.5
million compared to $338.4 million at December 31, 2015.
Net accounts receivable at September 25, 2016 were $261.8
million compared to $262.4 million at December 31, 2015.
Net inventories at September 25, 2016 were $341.8 million
compared to $330.3 million at December 31, 2015.
2014 MANUFACTURING FOOTPRINT REALIGNMENT PLAN
In April 2014, our Board of Directors approved a restructuring
plan (the "2014 Manufacturing Footprint Realignment Plan")
involving the consolidation of operations and a related reduction
in workforce at certain facilities, and the relocation of
manufacturing operations from certain higher-cost locations to
existing lower-cost locations. These actions commenced in the
second quarter 2014 and were initially expected to be substantially
completed by the end of 2017.
To date, we have completed the consolidation and relocation of a
significant portion of the operations subject to the 2014
Manufacturing Footprint Realignment Plan, and estimate that we will
achieve annualized savings of approximately $17 million by the end
of 2016 directly related to these actions. With respect to the
remaining actions to be taken under the plan, we revised our
savings, expense and timing estimates during the third quarter of
2016 to reflect the impact of changes we have implemented with
respect to medication delivery devices included in certain kits
primarily sold by our Vascular North America operating segment and,
to a lesser extent, certain kits primarily sold by our Anesthesia
North America operating segment. As a result of these changes, we
have reduced our estimate with respect to the overall annualized
savings we expect to realize under the plan from our prior estimate
of $28 million to $35 million to a range of $23 million to $27
million. We anticipate that this decrease in projected savings will
be offset, in large part, by an expected increase in annual
revenues resulting from improved pricing on the affected Vascular
kits directly related to the changes described above. We anticipate
that this projected increase in annual revenues, taken together
with the projected annualized savings we expect to realize under
the 2014 Manufacturing Footprint Realignment Plan, should enable us
to improve our pre-tax income on an annualized basis by
approximately $28 million to $33 million once the plan has been
completed.
As a result of the changes described above, we also revised our
estimates with respect to the charges we expect to incur in
connection with the plan. Specifically, we now estimate that we
will incur $43 million to $48 million in aggregate pre-tax charges
associated with the 2014 Manufacturing Footprint Realignment Plan,
compared to our prior estimate of approximately $37 million to $44
million. In addition, we expect cash outlays associated with the
plan to be in the range of $33 million to $38 million, compared to
our prior estimate of approximately $26 million to $31 million. We
continue to expect to incur $24 million to $30 million in aggregate
capital expenditures under the plan.
We currently expect that the 2014 Manufacturing Footprint
Realignment Plan will be substantially complete by the end of the
first half of 2020 rather than the end of 2017, which we previously
anticipated.
We currently are evaluating the feasibility of alternative
measures designed to mitigate the loss of expected savings and
accelerate the currently estimated timetable for completion of the
plan.
2016 OUTLOOK
The Company lowered its previous estimate that revenue for full
year 2016 would increase 3.0% to 4.0% over prior year revenue on a
GAAP basis; the Company now expects full year 2016 revenue to
increase 2.4% to 2.8% over prior year revenue on a GAAP basis. The
Company also lowered its previous estimate that revenue for full
year 2016 would increase 5.0% to 6.0% over prior year revenue on a
constant currency basis; the Company now expects full year 2016
revenue to increase 3.4% to 3.8% over prior year revenue on a
constant currency basis.
The Company reaffirmed its full year 2016 GAAP diluted earnings
per share from continuing operations guidance range of $5.34 to
$5.41. This estimate represents an increase of 8.8% to 10.2% over
2015 GAAP diluted earnings per share. In addition, the Company
increased its full year 2016 adjusted diluted earnings per share
from continuing operations guidance from a range of $7.20 to $7.32
to a range of $7.25 to $7.34. This new estimate represents an
increase of 14.5% to 16.0% over 2015 adjusted earnings per share
and reflects our expectation that foreign currency exchange rate
fluctuations will have an approximately neutral impact on adjusted
earnings per share for 2016.
FORECASTED 2016 CONSTANT CURRENCY
REVENUE GROWTH RECONCILIATION
Low High Forecasted 2016 GAAP
revenue growth 2.4 % 2.8 % Estimated impact of foreign
currency fluctuations 1.0 % 1.0 %
Forecasted 2016 constant currency revenue growth 3.4
% 3.8 %
FORECASTED 2016 ADJUSTED EARNINGS PER
SHARE RECONCILIATION
Low High Diluted earnings
per share attributable to common shareholders $ 5.34 $ 5.41
Restructuring, impairment charges and special items, net of tax $
0.84 $ 0.85 Intangible amortization expense, net of tax $
0.98 $ 0.99 Amortization of debt discount on convertible
notes, net of tax $ 0.09 $ 0.09
Adjusted diluted earnings per share $ 7.25 $
7.34
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 November 1, 2016 at 11:59pm
(ET), by calling 855-859-2056 (U.S./Canada) or 404-537-3406
(International), Passcode: 97714633.
ADDITIONAL NOTES
References in this release to the 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, for 2016, charges related to facility consolidations and
contingent consideration liabilities, net of the gain on sale of
assets and, for 2015, charges related to acquisition and
integration costs, and charges related to facility consolidations,
net of the gain on sale of assets and reversal of charges related
to contingent consideration and a litigation verdict against the
Company with respect to a non-operating joint venture; (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 the resolution of audits of prior year returns and tax law
changes affecting the Company's deferred tax liability. 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 - September 25, 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
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 $214.0 $139.8 $15.1 $3.0 ($2.8 ) $12.8 $7.5 $66.2 $1.40
47,446 Adjustments Restructuring and other impairment charges — — —
3.0 — — 1.0 2.1 $0.04 — Losses and other charges, net (A) 4.2 0.8
0.0 — (2.8 ) — 0.8 1.5 $0.03 — Amortization of debt discount on
convertible notes — — — — — 1.1 0.4 0.7 $0.02 — Intangible
amortization expense — 16.0 0.1 — — — 3.7 12.4 $0.26 — Tax
adjustment (B) — — — — — — 0.3 (0.3 ) ($0.01 ) — Shares due to
Teleflex under note hedge (C) — — — — — — — — $0.06 (1,463 )
Adjusted basis $209.8 $123.0 $14.9 — — $11.7 $13.7 $82.6 $1.80
45,983
Quarter Ended - September 27, 2015
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
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 $215.5 $138.8 $12.6 $0.7 ($0.4 ) $14.2 $0.8 $61.5 $1.27
48,532 Adjustments Restructuring and other impairment charges — — —
0.7 — — 0.3 0.4 $0.01 — Losses and other charges, net (A) 2.3 (0.5
) — — (0.4 ) — 0.8 0.6 $0.01 — Amortization of debt discount on
convertible notes — — — — — 3.3 1.2 2.1 $0.04 — Intangible
amortization expense — 15.5 — — — — 4.1 11.4 $0.23 — Tax adjustment
(B) — — — — — — 3.9 (3.9 ) ($0.08 ) — Shares due to Teleflex under
note hedge (C) — — — — — — — — $0.11 (3,536 ) Adjusted basis $213.2
$123.9 $12.6 — — $10.8 $11.1 $72.1 $1.60 44,996
(A) In 2016, losses and other charges, net related primarily to
facility consolidations, somewhat offset by the gain on sale of
assets. In 2015, losses and other charges, net related primarily to
facility consolidations, somewhat offset by reversals of charges
related to contingent consideration liabilities and a gain on sale
of assets.
(B) The tax adjustment represents a net benefit resulting
primarily from (1) the resolution of audits of 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 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 - September 25, 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 $630.9 $419.1 $42.9 $12.9 ($4.2 ) $38.3 $19.3 $18.1
$176.3 $3.69 47,824 Adjustments Restructuring and other impairment
charges — — — 12.9 — — — 3.4 9.5 $0.20 — Losses and other charges,
net (A) 10.9 2.7 0.1 — (4.2 ) — — 3.6 5.9 $0.12 — Amortization of
debt discount on convertible notes — — — — — 6.0 — 2.2 3.8 $0.08 —
Intangible amortization expense — 47.2 0.3 — — — — 12.1 35.4 $0.74
— Loss on extinguishment of debt, net — — — — — — 19.3 7.0 12.2
$0.26 — Tax adjustment (B) — — — — — — — 5.8 (5.8 ) ($0.12 ) —
Shares due to Teleflex under note hedge (C) — — — — — — — — — $0.25
(2,253 ) Adjusted basis $620.1 $369.3 $42.5 — — $32.2 — $52.2
$237.3 $5.21 45,571
Year-to-date Ended - September 27,
2015
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 $641.1 $420.8 $38.9 $5.7 ($0.4 ) $47.2 $10.5 $15.4
$145.4 $3.03 47,969 Adjustments Restructuring and other impairment
charges — — — 5.7 — — — 2.1 3.6 $0.08 — Losses and other charges,
net (A) 7.6 (3.0 ) — — (0.4 ) — — 2.2 1.9 $0.03 — Amortization of
debt discount on convertible notes — — — — — 9.8 — 3.6 6.2 $0.13 —
Intangible amortization expense — 45.3 — — — — — 12.0 33.3 $0.69 —
Loss on extinguishment of debt, net — — — — — — 10.5 3.8 6.6 $0.14
— Tax adjustment (B) — — — — — — — 4.1 (4.1 ) ($0.08 ) — Shares due
to Teleflex under note hedge (C) — — — — — — — — — $0.30 (3,319 )
Adjusted basis $633.5 $378.5 $38.9 — — $37.4 — $43.1 $193.0 $4.32
44,650
(A) In 2016, losses and other charges, net related primarily to
facility consolidations and charges related to contingent
consideration liabilities, somewhat offset by the gain on sale of
assets. In 2015, losses and other charges, net related primarily to
acquisition and integration costs, and charges related to facility
consolidations, somewhat offset by reversals of charges related to
contingent consideration liabilities, a litigation verdict against
the Company with respect to a non-operating joint venture and the
gain on sale of assets.
(B) The tax adjustment represents a net benefit resulting
primarily from (1) the resolution of audits of 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 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 2016 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, 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 the impact of the United Kingdom's vote to leave
the European Union; 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
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
(Unaudited)
Three Months Ended Nine Months
Ended
September 25,2016
September 27,2015
September 25,2016
September 27,2015
(Dollars and shares in thousands, except per share) Net
revenues $ 455,648 $ 443,714 $ 1,354,094 $ 1,325,189
Cost of goods sold 214,046 215,501
630,946 641,102 Gross profit 241,602
228,213 723,148 684,087 Selling, general and administrative
expenses 139,797 138,840 419,128 420,765 Research and development
expenses 15,067 12,571 42,892 38,898 Restructuring charges 3,027
660 12,876 5,688 Gain on sale of assets (2,776 ) (408
) (4,173 ) (408 ) Income from continuing operations
before interest, extinguishment of debt and taxes 86,487 76,550
252,425 219,144 Interest expense 12,888 14,306 38,579 47,685
Interest income (115 ) (130 ) (324 ) (453 ) Loss on extinguishment
of debt — — 19,261
10,454 Income from continuing operations before taxes 73,714
62,374 194,909 161,458 Taxes on income from continuing operations
7,514 803 18,134
15,415 Income from continuing operations 66,200
61,571 176,775 146,043
Operating income (loss) from discontinued operations 260
(788 ) (116 ) (1,432 ) (Benefit) taxes on income (loss) from
discontinued operations 138 (69 ) (119
) 180 Income (loss) from discontinued operations
122 (719 ) 3 (1,612 ) Net
income 66,322 60,852 176,778 144,431
Less: Income from continuing operations
attributable to noncontrolling interest
— 28 464 692
Net income attributable to common shareholders $ 66,322
$ 60,824 $ 176,314 $ 143,739 Earnings
per share available to common shareholders: Basic: Income from
continuing operations $ 1.50 $ 1.48 $ 4.09 $ 3.50 Income (loss)
from discontinued operations 0.01 (0.02 )
— (0.04 ) Net income $ 1.51 $ 1.46
$ 4.09 $ 3.46 Diluted: Income from continuing
operations $ 1.40 $ 1.27 $ 3.69 $ 3.03 Loss from discontinued
operations — (0.02 ) —
(0.03 ) Net income $ 1.40 $ 1.25 $ 3.69 $ 3.00
Dividends per share $ 0.34 $ 0.34 $ 1.02 $ 1.02 Weighted
average common shares outstanding Basic 44,045 41,597 43,081 41,542
Diluted 47,446 48,532 47,824 47,969 Amounts attributable to common
shareholders: Income from continuing operations, net of tax $
66,200 $ 61,543 $ 176,311 $ 145,351 Income (loss) from discontinued
operations, net of tax 122 (719 ) 3
(1,612 ) Net income $ 66,322 $ 60,824 $
176,314 $ 143,739
TELEFLEX INCORPORATED
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
September 25,2016
December 31,2015
(Dollars in thousands) ASSETS Current assets Cash and
cash equivalents $ 499,459 $ 338,366 Accounts receivable, net
261,833 262,416 Inventories, net 341,830 330,275 Prepaid expenses
and other current assets 34,354 34,915 Prepaid taxes 22,259 30,895
Assets held for sale 4,137 6,972 Total current assets
1,163,872 1,003,839 Property, plant and equipment, net 322,019
316,123 Goodwill 1,305,078 1,295,852 Intangible assets, net
1,164,644 1,199,975 Investments in affiliates 27 152 Deferred tax
assets 2,792 2,341 Other assets 43,237 53,492 Total
assets $ 4,001,669 $ 3,871,774
LIABILITIES AND EQUITY
Current liabilities Current borrowings $ 181,895 $ 417,350 Accounts
payable 70,246 66,305 Accrued expenses 68,972 64,017 Current
portion of contingent consideration 7,539 7,291 Payroll and
benefit-related liabilities 81,746 84,658 Accrued interest 12,611
7,480 Income taxes payable 11,271 8,059 Other current liabilities
18,122 8,960 Total current liabilities 452,402
664,120 Long-term borrowings 849,967 641,850 Deferred tax
liabilities 311,390 315,983 Pension and postretirement benefit
liabilities 131,222 149,441 Noncurrent liability for uncertain tax
positions 26,693 40,400 Other liabilities 60,073
48,887 Total liabilities 1,831,747 1,860,681 Commitments and
contingencies Total common shareholders' equity 2,169,922 2,009,272
Noncontrolling interest — 1,821 Total equity
2,169,922 2,011,093 Total liabilities and equity $ 4,001,669
$ 3,871,774
TELEFLEX INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited)
Nine Months Ended
September 25, 2016
September 27, 2015
(Dollars in thousands) Cash flows from operating activities
of continuing operations: Net income $ 176,778 $ 144,431
Adjustments to reconcile net income to net cash provided by
operating activities: Loss (income) from discontinued operations (3
) 1,612 Depreciation expense 40,272 34,035 Amortization expense of
intangible assets 47,486 45,278 Amortization expense of deferred
financing costs and debt discount 8,506 12,662 Loss on
extinguishment of debt 19,261 10,454 Gain on sale of assets (4,173
) (408 ) Changes in contingent consideration 1,672 (3,260 )
Stock-based compensation 12,540 10,379 Deferred income taxes, net
(8,699 ) (21,960 ) Other (15,132 ) (18,329 ) Changes in operating
assets and liabilities, net of effects of acquisitions and
disposals: Accounts receivable 4,316 (8,714 ) Inventories (5,617 )
(19,904 ) Prepaid expenses and other current assets 1,184 1,636
Accounts payable and accrued expenses 17,390 (2,855 ) Income taxes
receivable and payable, net 5,817 (8,297 ) Net
cash provided by operating activities from continuing operations
301,598 176,760 Cash flows from
investing activities of continuing operations: Expenditures for
property, plant and equipment (35,912 ) (45,566 ) Proceeds from
sale of assets 9,792 408 Payments for businesses and intangibles
acquired, net of cash acquired (14,040 ) (63,451 )
Net cash used in investing activities from continuing operations
(40,160 ) (108,609 ) Cash flows from financing
activities of continuing operations: Proceeds from new borrowings
671,700 288,100 Reduction in borrowings (714,487 ) (303,627 ) Debt
extinguishment, issuance and amendment fees (8,958 ) (9,017 ) Net
proceeds from share based compensation plans and the related tax
impacts 7,647 4,815 Payments to noncontrolling interest
shareholders (464 ) (833 ) Payments for contingent consideration
(133 ) (7,974 ) Payments for acquisition of noncontrolling interest
(9,231 ) — Dividends paid (43,980 ) (42,382 ) Net
cash used in financing activities from continuing operations
(97,906 ) (70,918 ) Cash flows from discontinued operations:
Net cash used in operating activities (1,451 ) (1,954
) Net cash used in discontinued operations (1,451 )
(1,954 ) Effect of exchange rate changes on cash and cash
equivalents (988 ) (22,052 ) Net increase (decrease)
in cash and cash equivalents 161,093 (26,773 ) Cash and cash
equivalents at the beginning of the period 338,366
303,236 Cash and cash equivalents at the end of the
period $ 499,459 $ 276,463 Non cash financing
activities of continuing operations: Settlement and exchange of
convertible notes with common or treasury stock $ 35,205 $ 62
Acquisition of treasury stock associated with settlement and
exchange of convertible note hedge and warrant agreements $ 85,909
$ 125
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161027005119/en/
Teleflex IncorporatedJake ElguiczeTreasurer and Vice President
of Investor Relations610-948-2836
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