-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, T/egrvZ3Px7/yIqv5uceYvO6euwlYOQm8jTA/FCn6hvDmGM8HVs7ZfSilcwzRjBz ZiM7QGzx6+MtY0/l9vhDPQ== 0000893220-95-000324.txt : 19950511 0000893220-95-000324.hdr.sgml : 19950511 ACCESSION NUMBER: 0000893220-95-000324 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950326 FILED AS OF DATE: 19950509 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: TELEFLEX INC CENTRAL INDEX KEY: 0000096943 STANDARD INDUSTRIAL CLASSIFICATION: AIRCRAFT PART & AUXILIARY EQUIPMENT, NEC [3728] IRS NUMBER: 231147939 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-05353 FILM NUMBER: 95535842 BUSINESS ADDRESS: STREET 1: 630 W GERMANTOWN PK STE 450 STREET 2: SUITE 450 CITY: PLYMOUTH MEETING STATE: PA ZIP: 19462 BUSINESS PHONE: 2158346301 MAIL ADDRESS: STREET 1: 630 WEST GERMANTOWN PIKE STREET 2: SUITE 450 CITY: PLYMOUTH MEETING STATE: PA ZIP: 19462 10-Q 1 QUARTERLY REPORT 10-Q TELEFLEX INC. 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 26, 1995 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to -------- -------- Commission File Number 1-5353 ----------------------------- TELEFLEX INCORPORATED ------------------------------------------------------ (Exact Name of Registrant as Specified in its Charter) Delaware 23-1147939 - ------------------------ ------------------------------------ (State of Incorporation) (IRS Employer Identification Number) 630 West Germantown Pike, Suite 450 Plymouth Meeting, PA 19462 --------------------------------------- ---------- (Address of Principal Executive Office) (Zip Code) (610) 834-6301 -------------------------------------- (Telephone Number Including Area Code) None ---------------------------------------------------- (Former Name, Former Address and Former Fiscal Year, If Changed Since Last Report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ----- ----- Indicate the number of shares outstanding of each of the issuer's classes of Common Stock as of the latest practicable date. Class Outstanding at March 26, 1995 - ----------------------------- ----------------------------- Common Stock, $1.00 Par Value 17,394,544 2 Teleflex Incorporated Condensed Consolidated Balance Sheet (Dollars in Thousands)
Assets Mar. 26, Dec. 25, 1995 1994 -------- -------- Current assets Cash and cash equivalents $ 12,801 $ 24,094 Accounts receivable less allowance for doubtful accounts 199,759 183,745 Inventories Raw materials and manufactured parts 77,792 75,269 Work-in-process and finished goods 112,054 97,836 Prepaid expenses 5,744 9,273 -------- -------- 408,150 390,217 Property, plant and equipment, at cost, less accumulated depreciation 265,786 264,318 Investments in affiliates 7,337 7,980 Intangibles and other assets 47,524 48,274 -------- -------- $728,797 $710,789 ======== ======== Liabilities and shareholders' equity Current liabilities Current portion of borrowings and demand loans $ 69,397 $ 63,678 Accounts payable and accrued expenses 92,063 96,144 Estimated income taxes payable 15,405 9,851 -------- -------- 176,865 169,673 Long-term borrowings 189,217 190,499 Deferred income taxes and other 40,944 41,592 -------- -------- 407,026 401,764 Shareholders' equity 321,771 309,025 -------- -------- $728,797 $710,789 ======== ========
3 Teleflex Incorporated Condensed Consolidated Statement of Income (Dollars in Thousands Except for Per Share Amounts)
Three Months Ended ---------------------- Mar. 26, Mar. 27, 1995 1994 -------- -------- Revenues $226,893 $191,084 -------- -------- Cost of sales 155,119 132,576 Operating expenses 48,006 38,497 Interest expense 4,794 4,681 -------- -------- 207,919 175,754 -------- -------- Income before taxes 18,974 15,330 Provision for taxes on income 6,641 5,365 -------- -------- Net income $ 12,333 $ 9,965 ======== ======== Earnings per share $0.70 $0.57 Dividends per share $0.135 $0.115 Average number of common and common equivalent shares outstanding 17,633 17,512
4 Teleflex Incorporated Condensed Consolidated Statement of Cash Flows (Dollars in Thousands)
Three Months Ended ---------------------- Mar. 26, Mar. 27, 1995 1994 -------- -------- Cash flows from operating activities: Net income $12,333 $ 9,965 Adjustments to reconcile net income to cash flows from operating activities: Depreciation and amortization 8,733 7,936 (Increase) in accounts receivable (8,714) (23,794) (Increase) decrease in inventory (9,149) 2,650 Decrease in prepaid expenses 3,920 392 Increase (decrease) in accounts payable and accrued expenses (7,305) 708 Increase in estimated income taxes payable 5,052 3,153 ------- ------- 4,870 1,010 ------- ------- Cash flows from financing activities: Proceeds from new borrowings 3,580 Reduction in long-term borrowings (12,065) (1,474) Increase (Decrease) in current borrowings and demand loans 3,663 (349) Proceeds from stock compensation plans and distribution of treasury shares 2,747 1,262 Dividends (2,333) (1,990) ------- ------- (4,408) (2,551) ------- ------- Cash flows from investing activities: Expenditures for plant assets 7,187 4,104 Payments for businesses acquired 3,768 Investments in affiliates 127 1,370 Other 673 (137) ------- ------- 11,755 5,337 ------- ------- Net (decrease) in cash and cash equivalents (11,293) (6,878) Cash and cash equivalents at the beginning of the period 24,094 11,255 ------- ------- Cash and cash equivalents at the end of the period $12,801 $ 4,377 ======= =======
5 Teleflex Incorporated Notes to Condensed Consolidated Financial Statements Note 1 The accompanying unaudited condensed consolidated financial statements for the three months ended March 26, 1995 and March 27, 1994 contain all adjustments, consisting only of normal recurring adjustments, which in the opinion of management are necessary to present fairly the financial position, results of operations and cash flows for the periods then ended in accordance with the current requirements for Form 10-Q. Note 2 At March 26, 1995, 1,079,932 shares of common stock were reserved for issuance under the Company's stock compensation plans. Note 3 Business segment information:
Three months ended (000) March 26, 1995 March 27, 1994 Sales Commercial Products $107,309 $ 88,584 Medical Products 68,269 57,381 Aerospace Products and Services 51,315 45,119 -------- -------- Total $226,893 $191,084 ======== ======== Operating profit Commercial Products $ 17,234 $ 14,281 Medical Products 7,639 7,005 Aerospace Products and Services 1,727 776 -------- -------- Total $ 26,600 $ 22,062 ======== ========
6 Management's Analysis of Quarterly Financial Data Results of operations: Overall Revenues increased 19% in the first quarter of 1995 to $226,893 from $191,084 in 1994. The increase was the result of gains in all three segments, Commercial, Medical and Aerospace. The company generated over 80% of the increase internally while the remainder was the result of several small acquisitions made over the last year. Increases in foreign currency translation rates had a small favorable impact on the overall revenue growth of the company. The Commercial, Medical and Aerospace segments comprised 47%, 30% and 23% of the company's net sales, respectively. Gross product margin improved from 30.6% in 1994 to 31.6% in 1995 due primarily to an increase in the Aerospace Segment. The increase in operating expenses from 20.1% of sales in 1994 to 21.2% in 1995 resulted primarily from an increase in the Medical Segment which offset a decline in the Aerospace Segment. Operating profit increased 21% in the first quarter of 1995 from $22,062 to $26,600 and operating margin improved from 11.5% of sales to 11.7%. All three segments reported increases in operating profit while the gain in operating margin was the result of an increase in the Aerospace Segment. The 1995 increase in interest expense was due primarily to the effects of translation of the company's foreign currency denominated borrowings and, to a lesser extent, an increase in average borrowings. The effective tax rate was 35% in both 1995 and 1994. Net income in 1995 increased 24% to $12,333 compared with $9,965 in 1994 while earnings per share increased 23% to $.70 per share from $.57 in 1994. Industry Segment Review Sales in the Commercial Segment increased 21% from $88,584 in 1994 to $107,309 in 1995. All three product lines, Automotive, Marine and Industrial, reported higher sales from continuing improvements in market conditions and sales of new products. Operating profit increased 21% from $14,281 to $17,234 while operating margin remained constant at 16% of sales. Operating profit increased on the higher volume while expansion costs in the United States and Europe kept operating margin at the prior year's level. 7 The Medical Segment sales increased 19% from $57,381 in 1994 to $68,269 in 1995. The increase was generated primarily internally and, to a lesser extent, from several small acquisitions made in 1994 and increases in foreign currency translation rates. Operating profit increased 9% from $7,005 in 1994 to $7,639 in 1995 while operating margin declined from 12.2% in 1994 to 11.2% in 1995. The decline in operating margin resulted from additional expenses associated with assimilating the 1994 acquisitions into the existing Medical businesses and from new product development costs. The Aeropsace Segment sales increased 14% from $45,119 in 1994 to $51,315 in 1995 due to gains in aerospace controls product line sales. Operating profit increased 123% from $776 in 1994 to $1,727 in 1995 and operating margin increased from 1.7% to 3.4% of sales. Both increases were the result of the higher volume and the capactiy consolidation and productivity improvements made during 1994. Cash Flow and Financial Position Cash flow from operations increased $3,860 in the first quarter of 1995 compared with 1994. The gain was the result of higher net income and slower growth in accounts receivable offset by increases in inventories and the timing of other cash payments. Working capital increased from $220,544 at December 25, 1994, to $231,285 at March 26, 1995. The ratio of current assets to current liabilities was 2.3 to 1 at both period ends. Long-term borrowings decreased by $1,282 from $190,499 at December 25, 1994, to $189,217 at March 26, 1995. The decline was the result of payments on long-term borrowings which were substantially offset by the effects of translation rates on the company's foreign currency denominated debt. Primarily as a result of the increase in shareholders' equity, long-term borrowings to total capitalization improved from 38% at December 25, 1994, to 37% at March 26, 1995. 8 Teleflex Incorporated Part II Other Information Item 6. Exhibits and Reports on Form 8-K (A) Reports on Form 8-K. No reports on Form 8-K were filed during the quarter. 9 Teleflex Incorporated Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. TELEFLEX INCORPORATED /s/ Harold L. Zuber, Jr. ------------------------ Harold L. Zuber, Jr. (Principal Financial and Accounting Officer) /s/ Steven K. Chance ------------------------ Steven K. Chance (Vice President) May 8, 1995 EX-27 2 FINANCIAL DATA SCHEDULE
5 1,000 3-MOS DEC-31-1995 DEC-26-1994 MAR-26-1995 12,801 0 199,759 0 189,846 408,150 265,786 0 728,797 176,865 189,217 17,395 0 0 304,376 728,797 226,893 226,893 155,119 155,119 48,006 0 4,794 18,974 6,641 12,333 0 0 0 12,333 .70 .70
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