EX-99.1 3 w85742exv99w1.txt PRESS RELEASE DATED APRIL 16, 2003 Julie McDowell Vice President, Corporate Communications 610-834-6301 FOR IMMEDIATE RELEASE April 16, 2003 TELEFLEX ANNOUNCES FIRST QUARTER 2003 RESULTS; REVENUES INCREASED 7% TO $546 MILLION Plymouth Meeting, PA -- Teleflex Incorporated (NYSE: TFX) announced today that revenues for the first quarter ended March 30, 2003 increased 7% to $546.2 million compared to $508.4 million for the prior year. Net income in the quarter was $29.2 million and diluted earnings per share were 74 cents compared with 77 cents for the same period a year ago. During the quarter, the company completed the sale of an investment resulting in a pre-tax gain of $3.1 million, or 5 cents per share after tax. "Teleflex produced increased revenues for the first quarter based on strong performances in our Commercial and Medical businesses," stated Jeffrey P. Black, president and chief executive officer. "Our Commercial Segment increased revenues and operating profit across all three product lines with solid increases in sales of Automotive and Industrial products and our Medical Segment continued to grow with strong demand for Health Care Supply products. At the same time, our Aerospace businesses addressed difficult market conditions and results were negatively impacted by facility closures and sharply reduced volumes in the Industrial Gas Turbine product lines." Mr. Black added, "Overall, Teleflex businesses executed well in a tough environment. We continue to expect revenues and earnings will increase at a single digit percentage rate in 2003 with improved performance as new products are launched during the year." For the quarter, Commercial Segment sales increased 13% over last year with gains across the Automotive, Industrial and Marine product lines. Automotive and Industrial product lines reported double digit sales increases, while Marine sales increased modestly. Automotive sales benefited from a stronger Euro and increased volume in the adjustable pedal line. Industrial sales increased primarily as a result of acquisitions. Marine sales improved slightly with increased sales to original equipment manufacturers and of non-marine products. Commercial operating profit was up 13% with (MORE) all three product lines reporting improvement. Operating profit improved primarily on volume increases in all three product lines and prior year cost and capacity reduction efforts in the Automotive product line. Medical Segment sales and operating profit rose 10% in the first quarter. Health Care Supply reported higher sales due largely to currency effects and, to a lesser extent, increased volumes for anesthesia products. Surgical Devices sales improved slightly as a result of an acquisition. In Health Care Supply, operating profit and margin improved in the quarter as a result of higher volumes and the continuing shift to manufacturing in lower cost countries. Operating profit in Surgical Devices was relatively flat and margins declined as a result of product mix. Aerospace Segment sales declined 5% in the quarter and operating profit decreased over 80% as the commercial aerospace and power generation markets remained under pressure. Lower sales in Industrial Gas Turbine Services were partially offset by gains in Repair Services and Cargo Systems. Operating profit declined on the significantly lower volume in Industrial Gas Turbine Services and costs related to the closing of three facilities. Cash flow from operations in the first quarter was $27.2 million compared to $28.3 million a year ago. The balance sheet continues to provide a strong foundation for growth with total debt to capitalization of 32%. As previously announced, Teleflex will comment on first quarter 2003 results on a conference call to be held Thursday, April 17, at 11:15 a.m. (ET). The call will be archived and available on the company's website, WWW.TELEFLEX.COM. The figures are as follows: COMPARATIVE SUMMARY OF REVENUES AND EARNINGS (UNAUDITED)
PERCENT THREE MONTHS ENDED MARCH 30, 2003 MARCH 31, 2002 CHANGE ------------------ -------------- -------------- ------ Sales Commercial $299,811,000 $265,752,000 13% Medical 118,145,000 107,303,000 10% Aerospace 128,265,000 135,341,000 (5%) ------------ ------------ Total $546,221,000 $508,396,000 7% Operating profit Commercial $29,127,000 $25,704,000 13% Medical 19,047,000 17,367,000 10% Aerospace 1,913,000 11,429,000 (83%) ------------ ------------ Total $50,087,000 $54,500,000 (8%)
(MORE) COMPARATIVE SUMMARY OF REVENUES AND EARNINGS (CONTINUED) (UNAUDITED)
PERCENT THREE MONTHS ENDED MARCH 30, 2003 MARCH 31, 2002 CHANGE ----------- ----------- ----------- Less: Interest expense 6,565,000 6,036,000 9% Corporate expenses 5,055,000 4,570,000 11% Non-operating gain (3,068,000) -- -- ----------- ----------- Income before taxes 41,535,000 43,894,000 (5%) Taxes on income 12,294,000 13,476,000 (9%) ----------- ----------- Net income $29,241,000 $30,418,000 (4%) =========== =========== Earnings per share: Basic $.74 $.78 (5%) Diluted $.74 $.77 (4%) Average common shares outstanding: Basic 39,446,000 39,038,000 Diluted 39,700,000 39,638,000
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
MARCH 30, 2003 DECEMBER 29, 2002 -------------- -------------- ASSETS Current assets Cash and cash equivalents $43,102,000 $44,494,000 Accounts receivable, net 444,576,000 401,888,000 Inventories 394,037,000 365,535,000 Prepaid expenses 27,329,000 25,978,000 -------------- -------------- 909,044,000 837,895,000 Property, plant and equipment, net 611,605,000 604,241,000 Goodwill 276,873,000 257,999,000 Intangibles and other assets 76,592,000 68,810,000 Investments in affiliates 37,674,000 44,439,000 -------------- -------------- $1,911,788,000 $1,813,384,000 ============== ============== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current borrowings $220,817,000 $182,776,000 Accounts payable and accrued expenses 293,640,000 276,938,000 Income taxes payable 49,088,000 38,769,000 -------------- -------------- 563,545,000 498,483,000 Long-term borrowings 226,810,000 240,123,000 Deferred income taxes and other 171,757,000 162,497,000 -------------- -------------- 962,112,000 901,103,000 Shareholders' equity 949,676,000 912,281,000 -------------- -------------- $1,911,788,000 $1,813,384,000 ============== ==============
(MORE) CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
THREE MONTHS ENDED MARCH 30, 2003 MARCH 31, 2002 ----------- ----------- Cash flows from operating activities $27,177,000 $28,300,000 Cash flows from financing activities: Reduction in long-term borrowings (6,292,000) (9,933,000) Increase in current borrowings and demand loans 25,206,000 21,481,000 Stock compensation plans 476,000 5,951,000 Dividends (7,100,000) (6,627,000) ----------- ----------- 12,290,000 10,872,000 ----------- ----------- Cash flows from investing activities: Expenditures for plant assets (21,831,000) (22,523,000) Payments for businesses acquired (22,916,000) (9,742,000) Proceeds from the sale of businesses and other 3,888,000 (1,990,000) ----------- ----------- (40,859,000) (34,255,000) ----------- ----------- Net (decrease) increase in cash and cash equivalents (1,392,000) 4,917,000 Cash and cash equivalents at the beginning of the period 44,494,000 46,900,000 ----------- ----------- Cash and cash equivalents at the end of the period $43,102,000 $51,817,000 =========== ===========
TELEFLEX AT A GLANCE: Teleflex is a diversified industrial company with annual revenues of more than $2 billion. The company designs, manufactures and distributes quality engineered products and services for the aerospace, medical, automotive, marine and industrial markets worldwide. Teleflex employs more than 18,000 people worldwide who focus on providing innovative solutions for customers. Additional information about Teleflex, including a recent archived conference call with analysts and investors, can be obtained from the company's website on the Internet at WWW.TELEFLEX.COM. FORWARD-LOOKING INFORMATION: Statements in this news release, other than historical data, are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks and uncertainties that could cause actual results to differ from those contemplated in the statements. These factors are discussed in the company's Securities and Exchange Commission filings. -30-