Exhibit 99.1
Contact:
|
Jake Elguicze | |
| Treasurer and | ||
| Vice President of Investor Relations | ||
| 610-948-2836 |
| FOR IMMEDIATE RELEASE | July 27, 2011 |
TELEFLEX REPORTS SECOND QUARTER 2011 RESULTS
Revenue of $391.3 million — up 9.2%; up 4.0% constant currency
Limerick, PA — Teleflex Incorporated (NYSE: TFX) today announced financial results for the
second quarter and six months ended June 26, 2011.
Second quarter 2011 net revenues were $391.3 million, an increase of 9.2% over the prior year
period. Excluding the impact of foreign exchange, second quarter 2011 net revenues increased 4.0%
over the prior year period.
Second quarter 2011 GAAP diluted earnings per share from continuing operations was $0.77, a
decrease of 3.8% over the prior year period. Second quarter 2011 adjusted diluted earnings per
share from continuing operations was $0.94, a decrease of 3.1% over the prior year period. The
decline in adjusted diluted earnings per share is related to higher manufacturing, raw material and
fuel-related freight costs, unfavorable product mix and the continued investment in sales,
marketing and research and development expenses. This was somewhat offset by an increase in sales
volume, improved pricing, as well as a reduction in interest expense.
Net revenues for the first six months of 2011 were $745.3 million, an increase of 6.2% over the
prior year period. Excluding the impact of foreign exchange, net revenues for the first six months
of 2011 increased 3.5% over the prior year period.
GAAP diluted earnings per share from continuing operations for the first six months of 2011 was
$1.11, a decrease of 31.1% over the prior year period. Adjusted diluted earnings per share from
continuing operations for the first six months of 2011 was $1.82, a decrease of 6.7% over the prior
year period. The decline in adjusted diluted earnings per share is related to higher
manufacturing, raw material and fuel-related freight costs, unfavorable product mix and the
continued investment in sales, marketing and research and development expenses. This was somewhat
offset by an increase in sales volume and reduced interest expense.
“Teleflex generated solid revenue results during the second quarter 2011, which reflect further
progress toward achieving our longer-term growth objectives,” said Benson Smith, Chairman,
President & CEO. “Our revenue growth of four percent was driven by a combination of market share
gains, selected price increases and improved traction of recently introduced products.”
Added Mr. Smith, “We resolved the FDA corporate warning letter related to our Arrow International
subsidiary, and we completed the transformation from a cyclical, diversified-industrial
conglomerate to a pure-play medical technology company. In addition, we refinanced our debt to
improve Teleflex’s long-term capital structure and increase our financial flexibility to pursue
unique, late-stage technology and strategic acquisitions to drive future growth. At the same time,
we strengthened our
competitive position during the quarter with new group purchasing organization contracts that
include our VasoNova® Vascular Positioning System and Rusch laryngoscope products.”
SECOND QUARTER NET REVENUE BY PRODUCT GROUP
Critical Care second quarter 2011 net revenues were $253.6 million, an increase of 8.5% over the
prior year period on an as reported basis. Excluding the impact of foreign exchange, second
quarter 2011 net revenues increased 3.2% over the prior year period. The increase in revenue was
due to higher sales across all product lines.
Surgical Care second quarter 2011 net revenues were $72.9 million, an increase of 10.1% over the
prior year period on an as reported basis. Excluding the impact of foreign exchange, second
quarter 2011 net revenues increased 4.3% over the prior year period. The increase in revenue was
due to higher sales of ligation products in Europe and Asia/Latin America.
Cardiac Care second quarter 2011 net revenues were $22.1 million, an increase of 17.6% over the
prior year period. Excluding the impact of foreign exchange, second quarter 2011 net revenues
increased 10.5% over the prior year period. The increase in revenue was due to higher sales of
intra-aortic balloon pumps and catheters.
OEM and Development Services second quarter 2011 net revenues were $42.4 million, an increase of
8.7% over the prior year period on an as reported basis. Excluding the impact of foreign exchange,
second quarter 2011 net revenues increased 6.8% over the prior year period. The increase in
revenue was due to higher sales of specialty and orthopedic products.
| Three Months Ended | % Increase/ (Decrease) | |||||||||||||||||||
| Constant | Foreign | Total | ||||||||||||||||||
| June 26, 2011 | June 27, 2010 | Currency | Currency | Change | ||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||
Critical Care |
$ | 253.6 | $ | 233.7 | 3.2 | % | 5.3 | % | 8.5 | % | ||||||||||
Surgical Care |
72.9 | 66.2 | 4.3 | % | 5.8 | % | 10.1 | % | ||||||||||||
Cardiac Care |
22.1 | 18.8 | 10.5 | % | 7.1 | % | 17.6 | % | ||||||||||||
OEM |
42.4 | 39.0 | 6.8 | % | 1.9 | % | 8.7 | % | ||||||||||||
Other |
0.3 | 0.7 | (62.5 | %) | 5.4 | % | (57.1 | %) | ||||||||||||
Total |
$ | 391.3 | $ | 358.4 | 4.0 | % | 5.2 | % | 9.2 | % | ||||||||||
OTHER FINANCIAL HIGHLIGHTS AND KEY PERFORMANCE METRICS
Depreciation and amortization expense of intangible assets and deferred financing costs and debt
discount for the first six months of 2011 was $49.7 million compared to $44.6 million for the first
six months of 2010.
Cash and cash equivalents at June 26, 2011 were $365.8 million.
Net accounts receivable at June 26, 2011 were $283.2 million.
Net inventories at June 26, 2011 were $293.8 million.
Net debt obligations at June 26, 2011 were $688.9 million.
December 31, 2010 balance sheet amounts were not referenced above because businesses were either
sold or reclassified to discontinued operations during 2011 and the Company does not find
comparisons to the December 31, 2010 balance sheet amounts to be meaningful.
2011 OUTLOOK
The Company’s financial estimates for 2011 are as follows:
Revenue in the range of $1.44 billion to $1.47 billion
Adjusted earnings per share in the range of $4.05 to $4.25
Cash flow from continuing operations in the range of $180 to $210 million. This compares to the
Company’s prior expectation for full year 2011 cash flow from continuing operations of
approximately $210 million. The revised cash flow from operations guidance is associated with the
Company’s intention to increase inventory levels during 2011 as it continues to focus on gaining
additional market share and the reduction in the amount of time it takes to fulfill a customers’
order.
2011 OUTLOOK EARNINGS PER SHARE RECONCILIATION
| Low | High | |||||||
Diluted earnings per share attributable to common shareholders |
$ | 2.75 | $ | 2.95 | ||||
Special items, net of tax |
$ | 0.45 | $ | 0.45 | ||||
Intangible amortization expense, net of tax |
$ | 0.70 | $ | 0.70 | ||||
Amortization of debt discount on convertible notes, net of tax |
$ | 0.15 | $ | 0.15 | ||||
Adjusted earnings per share |
$ | 4.05 | $ | 4.25 | ||||
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 1, 2011, 12:00pm (ET), by calling 888-286-8010
(U.S./Canada) or 617-801-6888 (International), Passcode: 66816668.
ADDITIONAL NOTES
Constant currency revenue and growth exclude the impact of translating the results of international
subsidiaries at different currency exchange rates from period to period. Constant currency revenue
and growth include activity of a purchased company beyond the initial twelve months after the date
of acquisition.
Certain financial information is presented on a rounded basis, which may cause minor differences.
Product group results and commentary exclude the impact of discontinued operations, items included
in restructuring and impairment charges, and losses and other charges set forth in the condensed
consolidated statements of income.
NOTES ON NON-GAAP FINANCIAL MEASURES
This press release includes certain non-GAAP financial measures. These measures include (i)
adjusted diluted earnings per share, which excludes the effect of charges associated with our
restructuring programs and asset impairments, losses and other charges related to refinancing
transactions, costs associated with severance payments and benefits to be provided to our former
chief executive officer, intangible amortization expense and the amortization of debt discount on
convertible notes; and (ii) constant currency revenue and growth, which exclude the impact of
translating the results of international subsidiaries at different currency exchange rates from
period to period. Consistent with past practice, adjusted diluted earnings per share has not been
adjusted to exclude the benefit resulting from the forfeiture of equity awards. 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 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 GAAP and should not be relied upon as a substitute
for GAAP financial measures. Tables reconciling these non-GAAP measures to the most directly
comparable GAAP measures are set forth below.
RECONCILIATION OF INCOME FROM CONTINUING OPERATIONS
| Three Months Ended | Three Months Ended | |||||||
| June 26, 2011 | June 27, 2010 | |||||||
| (Dollars in thousands, except per share) | ||||||||
Income and diluted earnings per share attributable to common |
$ | 31,329 | $ | 32,087 | ||||
shareholders |
$ | 0.77 | $ | 0.80 | ||||
Restructuring and impairment charges |
115 | 75 | ||||||
Tax benefit |
(25 | ) | (157 | ) | ||||
Restructuring and impairment charges, net of tax |
90 | (82 | ) | |||||
| $ | 0.00 | $ | 0.00 | |||||
Losses and other charges (A) |
816 | — | ||||||
Tax benefit |
(297 | ) | — | |||||
Losses and other charges, net of tax |
519 | — | ||||||
| $ | 0.01 | — | ||||||
Amortization of debt discount on convertible notes |
2,394 | — | ||||||
Tax benefit |
(867 | ) | — | |||||
Amortization of debt discount on convertible notes, net of tax |
1,527 | — | ||||||
| $ | 0.04 | — | ||||||
Intangible amortization expense |
11,102 | 10,857 | ||||||
Tax benefit |
(4,044 | ) | (3,917 | ) | ||||
Intangible amortization expense, net of tax |
7,058 | 6,940 | ||||||
| $ | 0.17 | $ | 0.17 | |||||
Tax adjustments (B) |
(2,165 | ) | — | |||||
| $ | (0.05 | ) | — | |||||
Adjusted income and diluted earnings per share |
$ | 38,358 | $ | 38,945 | ||||
| $ | 0.94 | $ | 0.97 | |||||
| (A) | In 2011, losses and other charges include approximately $0.5 million, net of tax, or $0.01 per share, related to the loss on extinguishment of debt. | |
| (B) | The tax adjustment represents a net benefit resulting from the resolution (including the expiration of statutes of limitations) of various prior years’ U.S. federal, state and foreign tax matters. |
RECONCILIATION OF INCOME FROM CONTINUING OPERATIONS
| Six Months Ended | Six Months Ended | |||||||
| June 26, 2011 | June 27, 2010 | |||||||
| (Dollars in thousands, except per share) | ||||||||
Income and diluted earnings per share attributable to common |
$ | 45,103 | $ | 64,664 | ||||
shareholders |
$ | 1.11 | $ | 1.61 | ||||
Restructuring and impairment charges |
710 | 538 | ||||||
Tax benefit |
(250 | ) | (272 | ) | ||||
Restructuring and impairment charges, net of tax |
460 | 266 | ||||||
| $ | 0.01 | $ | 0.01 | |||||
Losses and other charges (A) |
20,913 | — | ||||||
Tax benefit |
(7,601 | ) | — | |||||
Losses and other charges, net of tax |
13,312 | — | ||||||
| $ | 0.33 | — | ||||||
Amortization of debt discount on convertible notes |
4,757 | — | ||||||
Tax benefit |
(1,729 | ) | — | |||||
Amortization of debt discount on convertible notes, net of tax |
3,028 | — | ||||||
| $ | 0.07 | — | ||||||
Intangible amortization expense |
22,115 | 21,385 | ||||||
Tax benefit |
(8,063 | ) | (7,744 | ) | ||||
Intangible amortization expense, net of tax |
14,052 | 13,641 | ||||||
| $ | 0.35 | $ | 0.34 | |||||
Tax adjustments (B) |
(2,165 | ) | — | |||||
| $ | (0.05 | ) | — | |||||
Adjusted income and diluted earnings per share |
$ | 73,790 | $ | 78,571 | ||||
| $ | 1.82 | $ | 1.95 | |||||
| (A) | In 2011, losses and other charges include approximately $9.8 million, net of tax, or $0.24 per share, related to the loss on extinguishment of debt; approximately $3.5 million, net of tax, or $0.09 per share, in charges related to severance payments and benefits to be provided to our former chief executive officer. | |
| (B) | The tax adjustment represents a net benefit resulting from the resolution (including the expiration of statutes of limitations) of various prior years’ U.S. federal, state and foreign tax matters. |
RECONCILIATION OF CASH FLOW FROM OPERATIONS
| Six Months Ended | Six Months Ended | |||||||
| June 26, 2011 | June 27, 2010 | |||||||
| (Dollars in thousands) | ||||||||
Cash flow from operations as reported |
$ | 39,634 | $ | 79,736 | ||||
Add: Impact of the adoption of the
amendment to Accounting Standards
Codification topic 860 “Transfers and
Servicing” |
— | 39,700 | ||||||
Less: Tax refund on sale of ATI business |
— | 59,499 | ||||||
Adjusted cash flow from operations |
$ | 39,634 | $ | 59,937 | ||||
RECONCILIATION OF NET DEBT OBLIGATIONS
| June 26, 2011 | December 31, 2010 | |||||||
| (Dollars in thousands) | ||||||||
Note payable and current
portion of long-term
borrowings |
$ | 29,700 | $ | 103,711 | ||||
Long term borrowings |
949,866 | 813,409 | ||||||
Unamortized debt discount |
75,134 | 79,891 | ||||||
Total debt obligations |
1,054,700 | 997,011 | ||||||
Less: cash and cash equivalents |
365,809 | 208,452 | ||||||
Net debt obligations |
$ | 688,891 | $ | 788,559 | ||||
ABOUT TELEFLEX INCORPORATED
Teleflex is a leading global provider of specialty medical devices for a range of procedures in
critical care and surgery. Our mission is to provide solutions that enable healthcare providers to
improve outcomes and enhance patient and provider safety. Headquartered in Limerick, PA, Teleflex
employs approximately 11,600 people worldwide and serves healthcare providers in more than 130
countries. For additional information about Teleflex please refer to
www.teleflex.com.
CAUTION CONCERNING FORWARD-LOOKING INFORMATION
This press release contains forward-looking statements, including, but not limited to, statements
relating to forecasted 2011 total revenue, adjusted earnings per share and cash flow from
continuing operations. 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; 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; and other factors described or incorporated in our filings with the Securities and
Exchange Commission, including our Annual Report on Form 10-K and the disclosure incorporated into
Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended June 26, 2011.
TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| Three Months Ended | ||||||||
| June 26, | June 27, | |||||||
| 2011 | 2010 | |||||||
| (Dollars and shares in thousands, | ||||||||
| except per share) | ||||||||
Net revenues |
$ | 391,286 | $ | 358,427 | ||||
Cost of goods sold |
207,254 | 184,126 | ||||||
Gross profit |
184,032 | 174,301 | ||||||
Selling, general and administrative expenses |
111,751 | 99,768 | ||||||
Research and development expenses |
12,456 | 10,288 | ||||||
Restructuring and other impairment charges |
3,176 | 75 | ||||||
Income from continuing operations before interest, loss on extinguishments of debt
and taxes |
56,649 | 64,170 | ||||||
Interest expense |
15,785 | 19,534 | ||||||
Interest income |
(253 | ) | (150 | ) | ||||
Loss on extinguishments of debt |
816 | — | ||||||
Income from continuing operations before taxes |
40,301 | 44,786 | ||||||
Taxes on income from continuing operations |
8,714 | 12,440 | ||||||
Income from continuing operations |
31,587 | 32,346 | ||||||
Operating income (loss) from discontinued operations (including gain (loss) on
disposal of ($4,504) in 2011 and $28,825 in 2010, respectively) |
(4,360 | ) | 45,634 | |||||
Taxes (benefit) on income from discontinued operations |
(7,260 | ) | 17,454 | |||||
Income from discontinued operations |
2,900 | 28,180 | ||||||
Net income |
34,487 | 60,526 | ||||||
Less: Income from continuing operations attributable to noncontrolling interest |
258 | 259 | ||||||
Income from discontinued operations attributable to noncontrolling interest |
159 | 119 | ||||||
Net income attributable to common shareholders |
$ | 34,070 | $ | 60,148 | ||||
Earnings per share available to common shareholders: |
||||||||
Basic: |
||||||||
Income from continuing operations |
$ | 0.77 | $ | 0.80 | ||||
Income from discontinued operations |
$ | 0.07 | $ | 0.70 | ||||
Net income |
$ | 0.84 | $ | 1.51 | ||||
Diluted: |
||||||||
Income from continuing operations |
$ | 0.77 | $ | 0.80 | ||||
Income from discontinued operations |
$ | 0.07 | $ | 0.70 | ||||
Net income |
$ | 0.83 | $ | 1.49 | ||||
Dividends per common share |
$ | 0.34 | $ | 0.34 | ||||
Weighted average common shares outstanding: |
||||||||
Basic |
40,536 | 39,913 | ||||||
Diluted |
40,872 | 40,356 | ||||||
Amounts attributable to common shareholders: |
||||||||
Income from continuing operations, net of tax |
$ | 31,329 | $ | 32,087 | ||||
Income from discontinued operations, net of tax |
2,741 | 28,061 | ||||||
Net income |
$ | 34,070 | $ | 60,148 | ||||
TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| Six Months Ended | ||||||||
| June 26, | June 27, | |||||||
| 2011 | 2010 | |||||||
| (Dollars and shares in thousands, | ||||||||
| except per share) | ||||||||
Net revenues |
$ | 745,290 | $ | 701,964 | ||||
Cost of goods sold |
396,754 | 356,852 | ||||||
Gross profit |
348,536 | 345,112 | ||||||
Selling, general and administrative expenses |
215,137 | 195,419 | ||||||
Research and development expenses |
23,494 | 19,599 | ||||||
Restructuring and other impairment charges |
3,771 | 538 | ||||||
Income from continuing operations before interest, loss on extinguishments of debt
and taxes |
106,134 | 129,556 | ||||||
Interest expense |
31,931 | 38,454 | ||||||
Interest income |
(358 | ) | (356 | ) | ||||
Loss on extinguishments of debt |
15,413 | — | ||||||
Income from continuing operations before taxes |
59,148 | 91,458 | ||||||
Taxes on income from continuing operations |
13,564 | 26,363 | ||||||
Income from continuing operations |
45,584 | 65,095 | ||||||
Operating income from discontinued operations (including gain on disposal of
$52,269 in 2011 and $38,562 in 2010, respectively) |
59,576 | 60,009 | ||||||
Taxes (benefit) on income from discontinued operations |
(7,521 | ) | 26,620 | |||||
Income from discontinued operations |
67,097 | 33,389 | ||||||
Net income |
112,681 | 98,484 | ||||||
Less: Income from continuing operations attributable to noncontrolling interest |
481 | 431 | ||||||
Income from discontinued operations attributable to noncontrolling interest |
318 | 233 | ||||||
Net income attributable to common shareholders |
$ | 111,882 | $ | 97,820 | ||||
Earnings per share available to common shareholders: |
||||||||
Basic: |
||||||||
Income from continuing operations |
$ | 1.12 | $ | 1.62 | ||||
Income from discontinued operations |
$ | 1.66 | $ | 0.83 | ||||
Net income |
$ | 2.78 | $ | 2.45 | ||||
Diluted: |
||||||||
Income from continuing operations |
$ | 1.11 | $ | 1.61 | ||||
Income from discontinued operations |
$ | 1.64 | $ | 0.82 | ||||
Net income |
$ | 2.75 | $ | 2.43 | ||||
Dividends per common share |
$ | 0.68 | $ | 0.68 | ||||
Weighted average common shares outstanding: |
||||||||
Basic |
40,297 | 39,852 | ||||||
Diluted |
40,648 | 40,277 | ||||||
Amounts attributable to common shareholders: |
||||||||
Income from continuing operations, net of tax |
$ | 45,103 | $ | 64,664 | ||||
Income from discontinued operations, net of tax |
66,779 | 33,156 | ||||||
Net income |
$ | 111,882 | $ | 97,820 | ||||
TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| June 26, | December 31, | |||||||
| 2011 | 2010 | |||||||
| (Dollars in thousands) | ||||||||
ASSETS |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | 365,809 | $ | 208,452 | ||||
Accounts receivable, net |
283,181 | 294,196 | ||||||
Inventories, net |
293,822 | 338,598 | ||||||
Prepaid expenses and other current assets |
30,580 | 28,831 | ||||||
Income taxes receivable |
25,079 | 3,888 | ||||||
Deferred tax assets |
34,997 | 39,309 | ||||||
Assets held for sale |
115,460 | 7,959 | ||||||
Total current assets |
1,148,928 | 921,233 | ||||||
Property, plant and equipment, net |
255,253 | 287,705 | ||||||
Goodwill |
1,475,436 | 1,442,411 | ||||||
Intangible assets, net |
917,552 | 918,522 | ||||||
Investments in affiliates |
2,284 | 4,899 | ||||||
Deferred tax assets |
376 | 358 | ||||||
Other assets |
78,403 | 68,027 | ||||||
Total assets |
$ | 3,878,232 | $ | 3,643,155 | ||||
LIABILITIES AND EQUITY |
||||||||
Current liabilities |
||||||||
Current borrowings |
$ | 29,700 | $ | 103,711 | ||||
Accounts payable |
67,558 | 84,846 | ||||||
Accrued expenses |
114,753 | 117,488 | ||||||
Payroll and benefit-related liabilities |
68,655 | 71,418 | ||||||
Derivative liabilities |
15,498 | 15,634 | ||||||
Accrued interest |
13,355 | 18,347 | ||||||
Income taxes payable |
3,786 | 4,886 | ||||||
Deferred tax liabilities |
5,147 | 4,433 | ||||||
Liabilities held for sale |
45,827 | — | ||||||
Total current liabilities |
364,279 | 420,763 | ||||||
Long-term borrowings |
949,866 | 813,409 | ||||||
Deferred tax liabilities |
392,557 | 370,819 | ||||||
Pension and postretirement benefit liabilities |
114,911 | 141,769 | ||||||
Noncurrent liability for uncertain tax positions |
65,005 | 62,602 | ||||||
Other liabilities |
41,277 | 46,515 | ||||||
Total liabilities |
1,927,895 | 1,855,877 | ||||||
Commitments and contingencies |
||||||||
Total common shareholders’ equity |
1,945,625 | 1,783,376 | ||||||
Noncontrolling interest |
4,712 | 3,902 | ||||||
Total equity |
1,950,337 | 1,787,278 | ||||||
Total liabilities and equity |
$ | 3,878,232 | $ | 3,643,155 | ||||
TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Six Months Ended | ||||||||
| June 26, 2011 | June 27, 2010 | |||||||
| (Dollars in thousands) | ||||||||
Cash Flows from Operating Activities of Continuing Operations: |
||||||||
Net income |
$ | 112,681 | $ | 98,484 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Income from discontinued operations |
(67,097 | ) | (33,389 | ) | ||||
Depreciation expense |
20,928 | 21,359 | ||||||
Amortization expense of intangible assets |
22,115 | 21,384 | ||||||
Amortization expense of deferred financing costs and debt discount |
6,642 | 1,890 | ||||||
Loss on extinguishments of debt |
15,413 | — | ||||||
Stock-based compensation |
955 | 4,320 | ||||||
Impairment of investment in affiliates |
3,061 | — | ||||||
Deferred income taxes, net |
941 | 24,262 | ||||||
Other |
1,391 | 378 | ||||||
Changes in operating assets and liabilities, net of effects of acquisitions and
disposals: |
||||||||
Accounts receivable |
(37,870 | ) | (50,870 | ) | ||||
Inventories |
(17,098 | ) | (5,258 | ) | ||||
Prepaid expenses and other current assets |
(3,640 | ) | 1,667 | |||||
Accounts payable and accrued expenses |
(3,635 | ) | (28,082 | ) | ||||
Income taxes receivable and payable, net |
(15,153 | ) | 23,591 | |||||
Net cash provided by operating activities from continuing operations |
39,634 | 79,736 | ||||||
Cash Flows from Investing Activities of Continuing Operations: |
||||||||
Expenditures for property, plant and equipment |
(15,277 | ) | (13,658 | ) | ||||
Proceeds from sales of businesses and assets, net of cash sold |
100,916 | 74,734 | ||||||
Payments for businesses and intangibles acquired, net of cash acquired |
(30,570 | ) | (81 | ) | ||||
Net cash provided by investing activities from continuing operations |
55,069 | 60,995 | ||||||
Cash Flows from Financing Activities of Continuing Operations: |
||||||||
Proceeds from long-term borrowings |
515,000 | — | ||||||
Repayment of long-term borrowings |
(455,800 | ) | (64,170 | ) | ||||
Increase in notes payable and current borrowings |
— | 39,700 | ||||||
Proceeds from stock compensation plans |
30,577 | 8,032 | ||||||
Payments to noncontrolling interest shareholders |
— | (637 | ) | |||||
Dividends |
(27,438 | ) | (27,120 | ) | ||||
Debt extinguishment, issuance and amendment fees |
(19,058 | ) | — | |||||
Net cash provided by (used in) financing activities from continuing operations |
43,281 | (44,195 | ) | |||||
Cash Flows from Discontinued Operations: |
||||||||
Net cash provided by operating activities |
13,068 | 19,738 | ||||||
Net cash used in investing activities |
(1,241 | ) | (1,846 | ) | ||||
Net cash provided by discontinued operations |
11,827 | 17,892 | ||||||
Effect of exchange rate changes on cash and cash equivalents |
7,546 | (15,604 | ) | |||||
Net increase in cash and cash equivalents |
157,357 | 98,824 | ||||||
Cash and cash equivalents at the beginning of the period |
208,452 | 188,305 | ||||||
Cash and cash equivalents at the end of the period |
$ | 365,809 | 287,129 | |||||