Exhibit 99.1
Contact:
|
Jake Elguicze | |
| Treasurer and | ||
| Vice President of Investor Relations | ||
| 610-948-2836 |
| FOR IMMEDIATE RELEASE | October 25, 2011 |
TELEFLEX REPORTS THIRD QUARTER 2011 RESULTS
Revenue of $371.9 million — up 7.8%; up 3.2% constant currency
Limerick, PA — Teleflex Incorporated (NYSE: TFX) today announced financial results for the
third quarter and nine months ended September 25, 2011.
THREE MONTH RESULTS
Third quarter 2011 net revenues were $371.9 million, an increase of 7.8% over the prior year
period. Excluding the impact of foreign exchange, third quarter 2011 net revenues increased 3.2%
over the prior year period.
Third quarter 2011 GAAP diluted earnings per share from continuing operations was $0.82, an
increase of 203.7% over the prior year period. During the third quarter of 2010, Teleflex recorded
losses on the extinguishment of debt totaling $20.9 million, net of tax. Third quarter 2011
adjusted diluted earnings per share from continuing operations were $1.03, a increase of 4.0% over
the prior year period. The increase in adjusted diluted earnings per share is related to an
increase in sales volume, improved pricing, as well as a reduction in interest expense. This was
somewhat offset by higher manufacturing, raw material and fuel-related costs, and the continued
investment in sales, marketing and research and development activities.
“Despite operating within a challenging macro environment, our momentum continued to build during
the third quarter of 2011,” said Benson Smith, Chairman, President and CEO. “Our team’s renewed
focus led to revenue growth across nearly every region and product family. Improved sales volumes
contributed to our top line growth, as did select price increases within the Asia Pacific and North
American regions. In addition, during the third quarter, we were awarded 11 group purchasing
organization contracts, and we introduced five new products to the marketplace, positioning the
Company for sustainable and profitable future growth.”
Added Mr. Smith, “Our profitability during the quarter was favorably impacted by expanded gross and
operating margins on a sequential basis, as well as a lower tax rate. Overall, we are continuing
to make progress toward the achievement of our longer-term growth objectives.”
NINE MONTH RESULTS
Net revenues for the first nine months of 2011 were $1.1 billion, an increase of 6.7% over the
prior year period. Excluding the impact of foreign exchange, net revenues for the first nine
months of 2011 increased 3.4% over the prior year period.
GAAP diluted earnings per share from continuing operations for the first nine months of 2011 was
$1.94, an increase of 3.7% over the prior year period. Adjusted diluted earnings per share from
continuing operations for the first nine months of 2011 was $2.85, 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 and reduced interest expense.
THIRD QUARTER NET REVENUE BY PRODUCT GROUP
Critical Care third quarter 2011 net revenues were $245.1 million, an increase of 8.5% over the
prior year period on an as reported basis. Excluding the impact of foreign exchange, third quarter
2011 net revenues increased 3.6% over the prior year period. The increase in revenue was due to
higher sales of vascular access, anesthesia and urology products.
Surgical Care third quarter 2011 net revenues were $66.0 million, an increase of 7.1% over the
prior year period on an as reported basis. Excluding the impact of foreign exchange, third quarter
2011 net revenues increased 1.9% over the prior year period. The increase in revenue was due to
higher sales of ligation products.
Cardiac Care third quarter 2011 net revenues were $18.1 million, an increase of 4.0% over the prior
year period. Excluding the impact of foreign exchange, third quarter 2011 net revenues decreased
1.7% over the prior year period. The decrease in revenue was due to lower sales of intra-aortic
balloon pumps, due to a slight slowdown in the purchase of capital equipment.
OEM and Development Services third quarter 2011 net revenues were $42.4 million, an increase of
7.3% over the prior year period on an as reported basis. Excluding the impact of foreign exchange,
third quarter 2011 net revenues increased 5.6% over the prior year period. The increase in revenue
was due to higher sales of specialty suture, catheter fabrication and orthopedic implant products.
| Three Months Ended | % Increase/ (Decrease) | |||||||||||||||||||
| September 25, | September 26, | Constant | Foreign | Total | ||||||||||||||||
| 2011 | 2010 | Currency | Currency | Change | ||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||
Critical Care |
$ | 245.1 | $ | 226.0 | 3.6 | % | 4.9 | % | 8.5 | % | ||||||||||
Surgical Care |
66.0 | 61.6 | 1.9 | % | 5.2 | % | 7.1 | % | ||||||||||||
Cardiac Care |
18.1 | 17.4 | (1.7 | %) | 5.7 | % | 4.0 | % | ||||||||||||
OEM |
42.4 | 39.5 | 5.6 | % | 1.7 | % | 7.3 | % | ||||||||||||
Other |
0.3 | 0.5 | (57.4 | %) | 17.4 | % | (40.0 | %) | ||||||||||||
Total |
$ | 371.9 | $ | 345.0 | 3.2 | % | 4.6 | % | 7.8 | % | ||||||||||
OTHER FINANCIAL HIGHLIGHTS AND KEY PERFORMANCE METRICS
Depreciation and amortization expense of intangible assets and deferred financing costs and debt
discount for the first nine months of 2011 was $74.5 million compared to $68.5 million for the
first nine months of 2010.
Cash and cash equivalents at September 25, 2011 were $371.7 million.
Net accounts receivable at September 25, 2011 were $277.3 million.
Net inventories at September 25, 2011 were $311.4 million.
Net debt obligations at September 25, 2011 were $683.0 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 $1.51 billion to $1.53 billion. This compares to the Company’s prior
expectation for full year 2011 revenue in the range of $1.44 billion to $1.47 billion. The revised
revenue guidance is associated with foreign currency fluctuations and the translation of foreign
revenues into U.S. dollars. In terms of constant currency revenue growth, the Company expects to
be between 3.0% to 3.5% for full year 2011. This compares to the Company’s prior expectation of
constant currency revenue growth between 2.5% to 3.5% for full year 2011.
Adjusted earnings per share in the range of $4.05 to $4.10. This compares to the Company’s prior
expectation for full year 2011 adjusted earnings per share in the range of $4.05 to $4.25. The
reduction in the high-end of the EPS guidance range is due to the Company’s nine month year-to-date
performance, as well as the Company’s expectations for the fourth quarter.
Cash flow from continuing operations for the full year is expected to be in the range of $150 to
$180 million. This compares to the Company’s prior expectation for full year 2011 cash flow from
continuing operations in the range of $180 to $210 million. The revised cash flow from operations
guidance is primarily related to higher than expected inventory levels associated with the
Company’s previously announced efforts to focus on gaining additional market share and reducing the
amount of time required to fulfill customer orders, as well as an increase in accounts receivable.
2011 OUTLOOK EARNINGS PER SHARE RECONCILIATION
| Low | High | |||||||
Diluted earnings per share attributable to common shareholders |
$ | 2.75 | $ | 2.80 | ||||
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 | $ | 4.10 | ||||
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 October 30, 2011, 12:00pm (ET), by calling 888-286-8010
(U.S./Canada) or 617-801-6888 (International), Passcode: 62497743.
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; (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; and (iii) cash flow from operations, excluding the impact of the adoption of an
amendment to Financial Accounting Standards Board Accounting Standards Codification topic 860,
“Transfers and Servicing”. 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 | |||||||
| September 25, 2011 | September 26, 2010 | |||||||
| (Dollars in thousands, except per share) | ||||||||
Income and diluted earnings per share attributable to common |
$ | 33,463 | $ | 10,761 | ||||
shareholders |
$ | 0.82 | $ | 0.27 | ||||
Restructuring and impairment charges |
— | 1,141 | ||||||
Tax benefit |
— | (380 | ) | |||||
Restructuring and impairment charges, net of tax |
— | 761 | ||||||
| — | $ | 0.02 | ||||||
Losses and other charges (A) |
— | 32,742 | ||||||
Tax benefit |
— | (11,866 | ) | |||||
Losses and other charges, net of tax |
— | 20,876 | ||||||
| — | $ | 0.52 | ||||||
Amortization of debt discount on convertible notes |
2,455 | 1,536 | ||||||
Tax benefit |
(892 | ) | (557 | ) | ||||
Amortization of debt discount on convertible notes, net of tax |
1,563 | 979 | ||||||
| $ | 0.04 | $ | 0.02 | |||||
Intangible amortization expense |
11,081 | 10,403 | ||||||
Tax benefit |
(4,054 | ) | (3,794 | ) | ||||
Intangible amortization expense, net of tax |
7,027 | 6,609 | ||||||
| $ | 0.17 | $ | 0.16 | |||||
Adjusted income and diluted earnings per share |
$ | 42,053 | $ | 39,986 | ||||
| $ | 1.03 | $ | 0.99 | |||||
| (A) | In 2010, losses and other charges include approximately $20.9 million, net of tax, or $0.52 per share, related to the loss on extinguishment of debt. |
RECONCILIATION OF INCOME FROM CONTINUING OPERATIONS
| Nine Months Ended | Nine Months Ended | |||||||
| September 25, 2011 | September 26, 2010 | |||||||
| (Dollars in thousands, except per share) | ||||||||
Income and diluted earnings per share attributable to common |
$ | 79,018 | $ | 75,425 | ||||
shareholders |
$ | 1.94 | $ | 1.87 | ||||
Restructuring and impairment charges |
710 | 1,679 | ||||||
Tax benefit |
(250 | ) | (652 | ) | ||||
Restructuring and impairment charges, net of tax |
460 | 1,027 | ||||||
| $ | 0.01 | $ | 0.03 | |||||
Losses and other charges (A) |
20,913 | 32,742 | ||||||
Tax benefit |
(7,601 | ) | (11,866 | ) | ||||
Losses and other charges, net of tax |
13,312 | 20,876 | ||||||
| $ | 0.33 | $ | 0.52 | |||||
Amortization of debt discount on convertible notes |
7,212 | 1,536 | ||||||
Tax benefit |
(2,621 | ) | (557 | ) | ||||
Amortization of debt discount on convertible notes, net of tax |
4,591 | 979 | ||||||
| $ | 0.11 | $ | 0.02 | |||||
Intangible amortization expense |
33,196 | 31,788 | ||||||
Tax benefit |
(12,117 | ) | (11,538 | ) | ||||
Intangible amortization expense, net of tax |
21,079 | 20,250 | ||||||
| $ | 0.52 | $ | 0.50 | |||||
Tax adjustments (B) |
(2,165 | ) | — | |||||
| $ | (0.05 | ) | — | |||||
Adjusted income and diluted earnings per share |
$ | 116,295 | $ | 118,557 | ||||
| $ | 2.85 | $ | 2.94 | |||||
| (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. In 2010, losses and other charges include approximately $20.9 million, net of tax, or $0.52 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 CASH FLOW FROM OPERATIONS
| Nine Months Ended | Nine Months Ended | |||||||
| September 25, 2011 | September 26, 2010 | |||||||
| (Dollars in thousands) | ||||||||
Cash flow from operations as reported |
$ | 64,693 | $ | 103,873 | ||||
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 |
$ | 64,693 | $ | 84,074 | ||||
RECONCILIATION OF NET DEBT OBLIGATIONS
| September 25, 2011 | December 31, 2010 | |||||||
| (Dollars in thousands) | ||||||||
Note payable and current
portion of long-term
borrowings |
$ | 29,700 | $ | 103,711 | ||||
Long term borrowings |
952,322 | 813,409 | ||||||
Unamortized debt discount |
72,678 | 79,891 | ||||||
Total debt obligations |
1,054,700 | 997,011 | ||||||
Less: cash and cash equivalents |
371,699 | 208,452 | ||||||
Net debt obligations |
$ | 683,001 | $ | 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 | ||||||||
| September 25, | September 26, | |||||||
| 2011 | 2010 | |||||||
| (Dollars and shares in thousands, | ||||||||
| except per share) | ||||||||
Net revenues |
$ | 371,891 | $ | 345,041 | ||||
Cost of goods sold |
193,617 | 178,477 | ||||||
Gross profit |
178,274 | 166,564 | ||||||
Selling, general and administrative expenses |
102,911 | 101,542 | ||||||
Research and development expenses |
12,325 | 10,571 | ||||||
Net gain on sales of businesses and assets |
— | (183 | ) | |||||
Restructuring and other impairment charges |
(173 | ) | 1,141 | |||||
Income from continuing operations before interest, loss
on extinguishments of debt and taxes |
63,211 | 53,493 | ||||||
Interest expense |
19,177 | 20,047 | ||||||
Interest income |
(318 | ) | (219 | ) | ||||
Loss on extinguishments of debt |
— | 30,354 | ||||||
Income from continuing operations before taxes |
44,352 | 3,311 | ||||||
Taxes (benefit) on income from continuing operations |
10,600 | (7,676 | ) | |||||
Income from continuing operations |
33,752 | 10,987 | ||||||
Operating income from discontinued operations (including
loss on disposal of $4 in 2011) |
13,282 | 14,143 | ||||||
Taxes on income from discontinued operations |
2,969 | 2,595 | ||||||
Income from discontinued operations |
10,313 | 11,548 | ||||||
Net income |
44,065 | 22,535 | ||||||
Less: Income from continuing operations attributable to
noncontrolling interest |
289 | 226 | ||||||
Income from discontinued operations
attributable to noncontrolling interest |
125 | 113 | ||||||
Net income attributable to common shareholders |
$ | 43,651 | $ | 22,196 | ||||
Earnings per share available to common shareholders: |
||||||||
Basic: |
||||||||
Income from continuing operations |
$ | 0.82 | $ | 0.27 | ||||
Income from discontinued operations |
$ | 0.25 | $ | 0.29 | ||||
Net income |
$ | 1.07 | $ | 0.56 | ||||
Diluted: |
||||||||
Income from continuing operations |
$ | 0.82 | $ | 0.27 | ||||
Income from discontinued operations |
$ | 0.25 | $ | 0.28 | ||||
Net income |
$ | 1.07 | $ | 0.55 | ||||
Dividends per common share |
$ | 0.34 | $ | 0.34 | ||||
Weighted average common shares outstanding: |
||||||||
Basic |
40,684 | 39,933 | ||||||
Diluted |
40,943 | 40,254 | ||||||
Amounts attributable to common shareholders: |
||||||||
Income from continuing operations, net of tax |
$ | 33,463 | $ | 10,761 | ||||
Income from discontinued operations, net of tax |
10,188 | 11,435 | ||||||
Net income |
$ | 43,651 | $ | 22,196 | ||||
TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| Nine Months Ended | ||||||||
| September 25, | September 26, | |||||||
| 2011 | 2010 | |||||||
| (Dollars and shares in thousands, | ||||||||
| except per share) | ||||||||
Net revenues |
$ | 1,117,181 | $ | 1,047,005 | ||||
Cost of goods sold |
590,371 | 535,329 | ||||||
Gross profit |
526,810 | 511,676 | ||||||
Selling, general and administrative expenses |
317,338 | 296,961 | ||||||
Research and development expenses |
35,819 | 30,170 | ||||||
Net gain on sales of businesses and assets |
— | (183 | ) | |||||
Restructuring and other impairment charges |
3,598 | 1,679 | ||||||
Income from continuing operations before interest, loss
on extinguishments of debt and taxes |
170,055 | 183,049 | ||||||
Interest expense |
51,108 | 58,501 | ||||||
Interest income |
(676 | ) | (575 | ) | ||||
Loss on extinguishments of debt |
15,413 | 30,354 | ||||||
Income from continuing operations before taxes |
104,210 | 94,769 | ||||||
Taxes on income from continuing operations |
24,422 | 18,687 | ||||||
Income from continuing operations |
79,788 | 76,082 | ||||||
Operating income from discontinued operations (including
gain on disposal of $52,265 in 2011 and $38,562 in 2010,
respectively) |
72,148 | 74,152 | ||||||
Taxes (benefit) on income from discontinued operations |
(4,810 | ) | 29,215 | |||||
Income from discontinued operations |
76,958 | 44,937 | ||||||
Net income |
156,746 | 121,019 | ||||||
Less: Income from continuing operations attributable to
noncontrolling interest |
770 | 657 | ||||||
Income from discontinued operations
attributable to noncontrolling interest |
443 | 346 | ||||||
Net income attributable to common shareholders |
$ | 155,533 | $ | 120,016 | ||||
Earnings per share available to common shareholders: |
||||||||
Basic: |
||||||||
Income from continuing operations |
$ | 1.95 | $ | 1.89 | ||||
Income from discontinued operations |
$ | 1.89 | $ | 1.12 | ||||
Net income |
$ | 3.85 | $ | 3.01 | ||||
Diluted: |
||||||||
Income from continuing operations |
$ | 1.94 | $ | 1.87 | ||||
Income from discontinued operations |
$ | 1.88 | $ | 1.11 | ||||
Net income |
$ | 3.82 | $ | 2.98 | ||||
Dividends per common share |
$ | 1.02 | $ | 1.02 | ||||
Weighted average common shares outstanding: |
||||||||
Basic |
40,426 | 39,879 | ||||||
Diluted |
40,738 | 40,269 | ||||||
Amounts attributable to common shareholders: |
||||||||
Income from continuing operations, net of tax |
$ | 79,018 | $ | 75,425 | ||||
Income from discontinued operations, net of tax |
76,515 | 44,591 | ||||||
Net income |
$ | 155,533 | $ | 120,016 | ||||
TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| September 25, | December 31, | |||||||
| 2011 | 2010 | |||||||
| (Dollars in thousands) | ||||||||
ASSETS |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | 371,699 | $ | 208,452 | ||||
Accounts receivable, net |
277,340 | 294,196 | ||||||
Inventories, net |
311,417 | 338,598 | ||||||
Prepaid expenses and other current assets |
33,069 | 28,831 | ||||||
Prepaid taxes |
41,527 | 3,888 | ||||||
Deferred tax assets |
33,085 | 39,309 | ||||||
Assets held for sale |
118,293 | 7,959 | ||||||
Total current assets |
1,186,430 | 921,233 | ||||||
Property, plant and equipment, net |
250,582 | 287,705 | ||||||
Goodwill |
1,456,710 | 1,442,411 | ||||||
Intangible assets, net |
897,846 | 918,522 | ||||||
Investments in affiliates |
2,161 | 4,899 | ||||||
Deferred tax assets |
340 | 358 | ||||||
Other assets |
74,642 | 68,027 | ||||||
Total assets |
$ | 3,868,711 | $ | 3,643,155 | ||||
LIABILITIES AND EQUITY |
||||||||
Current liabilities |
||||||||
Current borrowings |
$ | 29,700 | $ | 103,711 | ||||
Accounts payable |
76,245 | 84,846 | ||||||
Accrued expenses |
112,575 | 117,488 | ||||||
Payroll and benefit-related liabilities |
66,544 | 71,418 | ||||||
Derivative liabilities |
15,330 | 15,634 | ||||||
Accrued interest |
13,623 | 18,347 | ||||||
Income taxes payable |
10,699 | 4,886 | ||||||
Deferred tax liabilities |
5,725 | 4,433 | ||||||
Liabilities held for sale |
53,531 | — | ||||||
Total current liabilities |
383,972 | 420,763 | ||||||
Long-term borrowings |
952,322 | 813,409 | ||||||
Deferred tax liabilities |
383,557 | 370,819 | ||||||
Pension and postretirement benefit liabilities |
110,501 | 141,769 | ||||||
Noncurrent liability for uncertain tax positions |
63,949 | 62,602 | ||||||
Other liabilities |
37,413 | 46,515 | ||||||
Total liabilities |
1,931,714 | 1,855,877 | ||||||
Commitments and contingencies |
||||||||
Total common shareholders’ equity |
1,932,151 | 1,783,376 | ||||||
Noncontrolling interest |
4,846 | 3,902 | ||||||
Total equity |
1,936,997 | 1,787,278 | ||||||
Total liabilities and equity |
$ | 3,868,711 | $ | 3,643,155 | ||||
TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Nine Months Ended | ||||||||
| September 25, | ||||||||
| 2011 | September 26, 2010 | |||||||
| (Dollars in thousands) | ||||||||
Cash Flows from Operating Activities of Continuing Operations: |
||||||||
Net income |
$ | 156,746 | $ | 121,019 | ||||
Adjustments to reconcile net income to net cash provided by operating
activities: |
||||||||
Income from discontinued operations |
(76,958 | ) | (44,937 | ) | ||||
Depreciation expense |
31,244 | 32,267 | ||||||
Amortization expense of intangible assets |
33,196 | 31,789 | ||||||
Amortization expense of deferred financing costs and debt discount |
10,064 | 4,425 | ||||||
Loss on extinguishments of debt |
15,413 | 30,354 | ||||||
Gain on call options and warrants |
— | (407 | ) | |||||
Debt modification costs |
— | 2,795 | ||||||
Stock-based compensation |
2,469 | 6,946 | ||||||
Impairment of investments in affiliates |
3,060 | — | ||||||
Net gain on sales of businesses and assets |
— | (183 | ) | |||||
Deferred income taxes, net |
(2,561 | ) | 29,754 | |||||
Other |
(2,125 | ) | (27,099 | ) | ||||
Changes in operating assets and liabilities, net of effects of
acquisitions and disposals: |
||||||||
Accounts receivable |
(41,260 | ) | (48,436 | ) | ||||
Inventories |
(40,539 | ) | (17,544 | ) | ||||
Prepaid expenses and other current assets |
(7,380 | ) | 1,845 | |||||
Accounts payable and accrued expenses |
5,614 | (22,149 | ) | |||||
Income taxes, net |
(22,290 | ) | 3,434 | |||||
Net cash provided by operating activities from continuing operations |
64,693 | 103,873 | ||||||
Cash Flows from Investing Activities of Continuing Operations: |
||||||||
Expenditures for property, plant and equipment |
(27,561 | ) | (21,263 | ) | ||||
Proceeds from sales of businesses and assets, net of cash sold |
100,905 | 75,943 | ||||||
Payments for businesses and intangibles acquired, net of cash acquired |
(30,570 | ) | (82 | ) | ||||
Net cash provided by investing activities from continuing operations |
42,774 | 54,598 | ||||||
Cash Flows from Financing Activities of Continuing Operations: |
||||||||
Proceeds from long-term borrowings |
515,000 | 400,000 | ||||||
Repayment of long-term borrowings |
(455,800 | ) | (460,770 | ) | ||||
Increase in notes payable and current borrowings |
— | 34,700 | ||||||
Proceeds from stock compensation plans |
32,930 | 8,470 | ||||||
Payments to noncontrolling interest shareholders |
— | (637 | ) | |||||
Dividends |
(41,278 | ) | (40,704 | ) | ||||
Debt and equity issuance and amendment fees |
(18,510 | ) | (48,041 | ) | ||||
Purchase of call options |
— | (88,000 | ) | |||||
Proceeds from sale of warrants |
— | 59,400 | ||||||
Net cash provided by (used in) financing activities from continuing
operations |
32,342 | (135,582 | ) | |||||
Cash Flows from Discontinued Operations: |
||||||||
Net cash provided by operating activities |
25,446 | 42,223 | ||||||
Net cash used in investing activities |
(1,744 | ) | (2,722 | ) | ||||
Net cash used in financing activities |
— | (1,124 | ) | |||||
Net cash provided by discontinued operations |
23,702 | 38,377 | ||||||
Effect of exchange rate changes on cash and cash equivalents |
(264 | ) | (1,814 | ) | ||||
Net increase in cash and cash equivalents |
163,247 | 59,452 | ||||||
Cash and cash equivalents at the beginning of the period |
208,452 | 188,305 | ||||||
Cash and cash equivalents at the end of the period |
$ | 371,699 | $ | 247,757 | ||||