Exhibit 99.1
| | |
| Contact: | | Julie McDowell
Vice President
Corporate Communications
610-948-2836 |
| | |
| FOR IMMEDIATE RELEASE | | July 26, 2005 |
TELEFLEX REPORTS SECOND QUARTER 2005 RESULTS
Revenues Up 11%, Core Growth Up 4%; Record Quarterly Earnings from Continuing Operations;
Record First Half Cash Flow from Operations.
Limerick, PA — Teleflex Incorporated (NYSE: TFX) today reported that revenues from continuing operations for the second quarter of 2005 increased 11 percent to $658.0 million, compared to $593.1 million for the second quarter of 2004. Income from continuing operations for the quarter was $38.3 million or 93 cents per diluted share. Income from continuing operations excluding special charges related to the restructuring and divestiture program was $42.6 million or $1.04 per diluted share, an increase of 17 percent over the prior year quarter. Income from continuing operations for the second quarter of 2004 was $36.2 million or 89 cents per diluted share.
For the first half of 2005, cash flow from continuing operations increased to $162.9 million, up 48 percent compared to $110.0 million realized in the first six months of 2004. Free cash flow for the first six months was $117.4 million compared to $68.7 million in the same period of the prior year, an increase of 71 percent.
Jeffrey P. Black, president and chief executive officer said, “This was an outstanding quarter for Teleflex. Solid execution on our operating plans delivered a significant increase in our Medical Segment margins, a turnaround for the Aerospace Segment, and growth on both the top and bottom line. Our operating model is producing strong free cash flow and we continue to improve our balance sheet and fundamentals. As a result of the strong first half performance, we are narrowing the full year outlook for earnings from continuing operations excluding special charges to $3.65 to $3.80.”
Black continued, “We remain focused on the successful completion of our restructuring and divestiture initiatives and the Teleflex team has renewed its focus on the strategic actions we can take to position ourselves for future growth. With confidence in our potential for long-term growth and cash flow generation, the Board of Directors has authorized a $140 million share repurchase program also announced today.”
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Continuing Operations — First Six Months
For the first six months of 2005, revenues from continuing operations increased 9 percent to $1.28 billion compared to revenues of $1.17 billion for the same period in 2004. Income from continuing operations for the first six months was $63.4 million or $1.55 per diluted share. Income from continuing operations excluding special charges related to the restructuring and divestiture program for the first six months was $73.8 million or $1.81 per diluted share. Income from continuing operations for the prior year was $68.0 million or $1.68 per diluted share.
Discontinued Operations
Losses from discontinued operations for the second quarter of 2005 were $9.3 million or 23 cents per diluted share compared to a loss from discontinued operations of $2.1 million or 5 cents per diluted share in the second quarter of the prior year. These results include a further gain on sale of assets of $1.7 million related to the first quarter divestiture of Sermatech International. Results also include a charge of $11.1 million or 18 cents per diluted share related to a write down of assets planned for sale. The majority of this charge relates to the automotive pedal systems business with a smaller portion related to a small business in the Medical Segment that is planned for sale. After the end of the quarter, the Company announced the signing of an agreement to divest its automotive pedal systems business. This transaction is expected to close in the third quarter of 2005.
For the first six months of 2005, income from discontinued operations was $4.3 million or 11 cents per diluted share as compared to a loss of $4.3 million or 11 cents per diluted share for the first six months of 2004.
Net Income
Net income for the second quarter of 2005 was $29.0 million or 71 cents per diluted share compared to net income of $34.2 million or 84 cents per diluted share for the prior year period. Net income for the first six months of 2005 was $67.7 million or $1.66 per diluted share compared to net income of $63.6 million or $1.57 per diluted share for the same period of the prior year.
Second Quarter 2005 Results from Continuing and Discontinued Operations
The following table reconciles income and diluted earnings per share from continuing and discontinued operations as reported to income and diluted earnings per share from continuing and discontinued operations excluding special charges and gain on sale of assets.
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| | | | | | | | | | | | | | | | | |
| | | 2Q Continuing Operations | | | 2Q Discontinued Operations | |
| | | (dollars in thousands, except per share) | |
| Income (loss) and diluted earnings (losses) per share | | $ | 38,315 | | | $ | 0.93 | | | $ | (9,342 | ) | | $ | (0.23 | ) |
| Special charges: | | | | | | | | | | | | | | | | |
| Restructuring and other costs | | | 6,653 | | | | | | | | 11,100 | | | | | |
| Income tax (benefit) on restructuring costs | | | (2,410 | ) | | | | | | | (3,725 | ) | | | | |
| | | | | | | | | | | | | | | |
| Restructuring costs net of tax | | | 4,243 | | | | 0.10 | | | | 7,375 | | | | 0.18 | |
| Gain on sale of assets | | | | | | | | | | | (1,687 | ) | | | | |
| Income tax on gain on sale of assets | | | | | | | | | | | 590 | | | | | |
| | | | | | | | | | | | | | | | |
| Gain on sale of assets, net of tax | | | | | | | | | | | (1,097 | ) | | | (0.03 | ) |
| Rounding | | | | | | | 0.01 | | | | | | | | 0.01 | |
| | | | | | | | | | | | | |
| Income (loss) and diluted earnings (losses) per share excluding special charges | | $ | 42,558 | | | $ | 1.04 | | | $ | (3,064 | ) | | $ | (0.07 | ) |
| | | | | | | | | | | | | |
Restructuring and Divestiture Program
The charges against continuing operations associated with the restructuring and divestiture program during the second quarter were $6.7 million and were incurred by segment as follows: Commercial $1.7 million, Medical $4.6 million and Aerospace $0.4 million.
In addition, the Company expects to incur future restructuring costs over the next four quarters primarily in the Medical Segment with expected costs of $27.2 million to $34.0 million, with some smaller actions to be completed in the Commercial Segment costing between $0.8 million to $2.0 million.
The projected total cost related to the restructuring and divestiture program continues to be in the range of $203 million to $211 million. The anticipated cash cost of the program is now expected to be between $68 million and $76 million a reduction from earlier projections of $83 million to $91 million due to the tight control of program costs.
Second Quarter 2005 Business Segment Commentary
The following segment discussion excludes the impact of discontinued operations and items included in restructuring costs as disclosed in the condensed consolidated statements of income. For the second quarter of 2005, the Company’s overall revenue growth of 11 percent consisted of 4 percent from core growth, 2 percent from currency, 1 percent from consolidation of variable interest entities, and 8 percent from acquisitions, which were offset by a 4 percent decline from dispositions.
Medical Segment
Medical Segment revenues increased 40 percent in the second quarter to $218.9 million from $156.8 million in the second quarter of 2004. The increase consisted of 4 percent from core growth, 3 percent from currency, 2 percent from the consolidation of variable interest entities, and 32 percent from acquisitions, offset by a 1 percent decline from dispositions.
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Medical Segment revenues increased primarily as a result of increased volume for respiratory care and other disposable medical products and increased sales of specialty devices for medical device manufacturers. Sales of respiratory care products in the European market were particularly strong in the quarter as the Company benefited from the integration of the HudsonRCI and Rüsch product lines. The Segment also benefited from strong sales of specialty devices for the orthopedic market and other new products.
Medical Segment operating profit increased 62 percent in the second quarter of 2005 to $43.4 million from $26.7 million in the second quarter of 2004. This increase was driven primarily by the strong contribution from the integration of HudsonRCI and also by improvements resulting from changes in the cost structure of the core Medical businesses.
Commercial Segment
Commercial Segment revenues declined 2 percent in the second quarter of 2005 to $314.7 million from $322.6 million in the second quarter of 2004. Increases of 1 percent in core growth and 2 percent in currency were more than offset by a 5 percent decrease resulting from the disposition of non-core businesses. The Segment benefited from continued strength in its industrial OEM markets and the contribution of new driver control and power and vehicle management products. Sales of power and vehicle management products for the marine and recreational markets slowed when compared to the strong performance in the prior year.
Commercial Segment operating profit declined 30 percent to $25.4 million from $36.2 million when compared to second quarter last year. This decline primarily reflects the impact of higher than expected costs incurred during the introduction of certain products in the recreational and industrial markets, the mix impact of increased volume for industrial products and lower-volume contributions from products for marine and recreational markets, and the impact of divestitures made in 2004.
Aerospace Segment
Aerospace Segment revenues increased 9 percent in the second quarter of 2005 to $124.3 million from $113.7 million in the second quarter of 2004. Revenue growth was attributable to strong core growth in all three Aerospace businesses with increases in sales of repair products and services, cargo-handling systems and precision-machined components for aircraft engines.
Aerospace Segment operating profit improved in the second quarter of 2005 to a profit of $6.6 million from a loss of $5.5 million in the second quarter of 2004. This increase was primarily the result of improvements in the precision-machined components and the cargo systems businesses and a reduction in losses resulting from the exit of the industrial gas turbine aftermarket services.
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Outlook
Commenting on the outlook for 2005, Mr. Black said, “We are pleased with our performance in the first half and are looking to build on this momentum in the second half. On balance, we expect the second half to look a lot like the first half with additional gains coming from restructuring cost savings. With the restructuring program well underway, we have successfully controlled facility consolidation costs and made only minor adjustments to timing of the plan. We remain confident and look forward to continuing our progress in the coming months.”
The Company anticipates diluted earnings per share from continuing operations excluding special charges for the full year 2005 will be in the range of $3.65 to $3.80 and expects reported earnings per share from continuing operations including such charges to be in the range of $3.06 to $3.25.
The Company’s outlook does not take into consideration any potential impact of the $140 million share repurchase program also announced today.
As previously announced, Teleflex will comment on its second quarter 2005 results on a conference call to be held Wednesday, July 27, at 10:00 a.m. (ET). The call will be available live and archived on the Company’s website atwww.teleflex.comand accompanying charts will be posted prior to the call. An audio replay will be available from July 27 until August 1 by calling 888-286-8010 (US/Canada) or 617-801-6888 (International) and enter Passcode # 64887834.
Second Quarter Restructuring Costs from Continuing Operations
| | | | | | | | | | | | | | | | | |
| | | Commercial | | | Medical | | | Aerospace | | | Total | |
| | | (dollars in thousands) | |
| Severance and stay bonuses for terminated employees | | $ | 1,123 | | | $ | 1,052 | | | $ | 67 | | | $ | 2,242 | |
| Contract termination costs | | | 70 | | | | 451 | | | | — | | | | 521 | |
| Write down of certain asset values | | | 156 | | | | 120 | | | | — | | | | 276 | |
| Other restructuring costs | | | 300 | | | | 2,991 | | | | 323 | | | | 3,614 | |
| | | | | | | | | | | | | |
| Total | | $ | 1,649 | | | $ | 4,614 | | | $ | 390 | | | $ | 6,653 | |
| | | | | | | | | | | | | |
Total Projected Restructuring and Other Charges from Continuing and Discontinued Operations
(dollars in thousands)
| | | | | | | | | | | | | |
| Severance and stay bonuses for Terminated employees | | $ | 39,000 | | | To | | $ | 42,000 | |
| Write-down of certain asset values | | | 135,000 | | | To | | | 135,000 | |
| Contract termination costs | | | 11,000 | | | To | | | 13,000 | |
| Other restructuring costs | | | 18,000 | | | To | | | 21,000 | |
| | | | | | | | | | | |
| | | $ | 203,000 | | | | | | | $ | 211,000 | |
| | | | | | | | | | | |
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Additional Notes and Notes on Non-GAAP Financial Measures:
The Company has determined that it is appropriate to separately identify the following financial measures for all of its majority, but not wholly-owned subsidiaries. The minority interest in consolidated subsidiaries previously included in selling, engineering and administrative expenses totaled $4,764 and $8,876 for the three and six months ended June 27, 2004, respectively. These reclassifications have no impact on previously reported net income.
This press release addresses free cash flow and certain income measures which exclude the effect of restructuring and other costs associated with our restructuring and divestiture program, which may be considered non-GAAP financial measures. A table reconciling cash flow from operations to free cash flow is set forth below. A table reconciling income and diluted earnings per share from continuing and discontinued operations to income and diluted earnings per share from continuing and discontinued operations excluding special charges and gain on sale of assets is set forth above.
The reconciliation of cash flow from operations to free cash flow is as follows :
| | | | | | | | | |
| | | YTD June 2005 | | | YTD June 2004 | |
| | | (dollars in thousands) | |
| Cash flow from operations | | $ | 162,912 | | | $ | 109,978 | |
| Capital expenditures | | | (26,387 | ) | | | (24,613 | ) |
| Dividends | | | (19,097 | ) | | | (16,635 | ) |
| | | | | | | |
| Free cash flow | | $ | 117,428 | | | $ | 68,730 | |
| | | | | | | |
Certain financial information is presented on a rounded basis which may cause minor differences.
Teleflex at a Glance:
Teleflex is a diversified industrial company with annual revenues of more than $2.4 billion. The Company designs, manufactures and distributes quality engineered products and services for the automotive, medical, aerospace, marine and industrial markets worldwide. Teleflex employs more than 20,000 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 atwww.teleflex.com.
Caution Concerning Forward-looking information:
This press release contains forward-looking statements, including, but not limited to, statements relating to projected costs of the restructuring program; anticipated divestitures and portfolio adjustments; forecasted 2005 diluted earnings from continuing operations excluding special charges related to restructuring and divestiture; forecasted 2005 diluted earnings per share from continuing operations; anticipated cash flow from operations and improving financial performance; and anticipated benefits from the restructuring and divestiture program; the integration of HudsonRCI and previously discussed portfolio actions. Actual results could differ materially from those in these forward-looking statements due to, among other things, inability to sell businesses at prices, or within time-periods, anticipated by management; unanticipated expenditures in connection with the effectuation of restructuring programs; costs and length of time required to comply with legal requirements applicable to certain aspects of the restructuring program; unanticipated difficulties in connection with consolidation of manufacturing and administrative functions; customer reaction to the program; and other factors described in Teleflex’s filings with the Securities and Exchange Commission.
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TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| | | | | | | | | |
| | | Three Months Ended | |
| | | June 26, | | | June 27, | |
| | | 2005 | | | 2004 | |
| | | (Dollars and shares in thousands, | |
| | | except per share) | |
| Revenues | | $ | 657,959 | | | $ | 593,111 | |
| Materials, labor and other product costs | | | 467,441 | | | | 423,466 | |
| | | | | | | |
| Gross profit | | | 190,518 | | | | 169,645 | |
| Selling, engineering and administrative expenses | | | 116,219 | | | | 114,014 | |
| Gain on sales of businesses and assets | | | — | | | | (5,083 | ) |
| Restructuring costs | | | 6,653 | | | | — | |
| | | | | | | |
| Income from continuing operations before interest, taxes and minority interest | | | 67,646 | | | | 60,714 | |
| Interest expense, net | | | 10,565 | | | | 6,145 | |
| | | | | | | |
| Income from continuing operations before taxes and minority interest | | | 57,081 | | | | 54,569 | |
| Taxes on income from continuing operations | | | 13,585 | | | | 13,561 | |
| | | | | | | |
| Income from continuing operations before minority interest | | | 43,496 | | | | 41,008 | |
| Minority interest in consolidated subsidiaries | | | 5,181 | | | | 4,764 | |
| | | | | | | |
| Income from continuing operations | | | 38,315 | | | | 36,244 | |
| | | | | | | |
| Operating loss from discontinued operations (including gain on disposal of $1,687 and $0, respectively) | | | (13,708 | ) | | | (2,354 | ) |
| Tax (benefit) from discontinued operations | | | (4,366 | ) | | | (275 | ) |
| | | | | | | |
| Loss from discontinued operations | | | (9,342 | ) | | | (2,079 | ) |
| | | | | | | |
| Net income | | $ | 28,973 | | | $ | 34,165 | |
| | | | | | | |
| Earnings per share: | | | | | | | | |
| Basic: | | | | | | | | |
| Income from continuing operations | | $ | 0.94 | | | $ | 0.90 | |
| Loss from discontinued operations | | $ | (0.23 | ) | | $ | (0.05 | ) |
| | | | | | | |
| Net income | | $ | 0.71 | | | $ | 0.85 | |
| | | | | | | |
| Diluted: | | | | | | | | |
| Income from continuing operations | | $ | 0.93 | | | $ | 0.89 | |
| Loss from discontinued operations | | $ | (0.23 | ) | | $ | (0.05 | ) |
| | | | | | | |
| Net income | | $ | 0.71 | | | $ | 0.84 | |
| | | | | | | |
| Dividends per share | | $ | 0.25 | | | $ | 0.22 | |
| Weighted average common shares outstanding: | | | | | | | | |
| Basic | | | 40,635 | | | | 40,195 | |
| Diluted | | | 41,031 | | | | 40,538 | |
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TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| | | | | | | | | |
| | | Six Months Ended | |
| | | June 26, | | | June 27, | |
| | | 2005 | | | 2004 | |
| | | (Dollars and shares in thousands, | |
| | | except per share) | |
| Revenues | | $ | 1,282,502 | | | $ | 1,171,243 | |
| Materials, labor and other product costs | | | 917,946 | | | | 837,131 | |
| | | | | | | |
| Gross profit | | | 364,556 | | | | 334,112 | |
| Selling, engineering and administrative expenses | | | 232,566 | | | | 224,683 | |
| Gain on sales of businesses and assets | | | — | | | | (5,083 | ) |
| Restructuring costs | | | 13,947 | | | | — | |
| | | | | | | |
| Income from continuing operations before interest, taxes and minority interest | | | 118,043 | | | | 114,512 | |
| Interest expense, net | | | 21,653 | | | | 12,920 | |
| | | | | | | |
| Income from continuing operations before taxes and minority interest | | | 96,390 | | | | 101,592 | |
| Taxes on income from continuing operations | | | 23,148 | | | | 24,761 | |
| | | | | | | |
| Income from continuing operations before minority interest | | | 73,242 | | | | 76,831 | |
| Minority interest in consolidated subsidiaries | | | 9,879 | | | | 8,876 | |
| | | | | | | |
| Income from continuing operations | | | 63,363 | | | | 67,955 | |
| | | | | | | |
| Operating income (loss) from discontinued operations (including gain on disposal of $36,121 and $0, respectively) | | | 7,364 | | | | (4,332 | ) |
| Taxes (benefit) on income (loss) from discontinued operations | | | 3,028 | | | | (14 | ) |
| | | | | | | |
| Income (loss) from discontinued operations | | | 4,336 | | | | (4,318 | ) |
| | | | | | | |
| Net income | | $ | 67,699 | | | $ | 63,637 | |
| | | | | | | |
| Earnings per share: | | | | | | | | |
| Basic: | | | | | | | | |
| Income from continuing operations | | $ | 1.56 | | | $ | 1.69 | |
| Income (loss) from discontinued operations | | $ | 0.11 | | | $ | (0.11 | ) |
| | | | | | | |
| Net income | | $ | 1.67 | | | $ | 1.59 | |
| | | | | | | |
| Diluted: | | | | | | | | |
| Income from continuing operations | | $ | 1.55 | | | $ | 1.68 | |
| Income (loss) from discontinued operations | | $ | 0.11 | | | $ | (0.11 | ) |
| | | | | | | |
| Net income | | $ | 1.66 | | | $ | 1.57 | |
| | | | | | | |
| Dividends per share | | $ | 0.47 | | | $ | 0.42 | |
| Weighted average common shares outstanding: | | | | | | | | |
| Basic | | | 40,544 | | | | 40,093 | |
| Diluted | | | 40,865 | | | | 40,498 | |
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TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| | | | | | | | | |
| | | June 26, | | | December 26, | |
| | | 2005 | | | 2004 | |
| | | (Dollars in thousands) | |
ASSETS
|
| Current assets | | | | | | | | |
| Cash and cash equivalents | | $ | 212,456 | | | $ | 115,955 | |
| Accounts receivable, net | | | 434,580 | | | | 514,179 | |
| Inventories | | | 412,131 | | | | 431,399 | |
| Prepaid expenses | | | 34,941 | | | | 32,525 | |
| Assets held for sale | | | 60,337 | | | | 54,384 | |
| | | | | | | |
| Total current assets | | | 1,154,445 | | | | 1,148,442 | |
| | | | | | | |
| Property, plant and equipment, net | | | 476,143 | | | | 584,252 | |
| Goodwill | | | 518,187 | | | | 524,134 | |
| Intangibles and other assets | | | 232,714 | | | | 244,859 | |
| Investments in affiliates | | | 23,516 | | | | 24,194 | |
| Deferred tax assets | | | 105,890 | | | | 108,555 | |
| | | | | | | |
| Total assets | | $ | 2,510,895 | | | $ | 2,634,436 | |
| | | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
| Current liabilities | | | | | | | | |
| Current borrowings | | $ | 46,679 | | | $ | 101,856 | |
| Accounts payable | | | 193,062 | | | | 183,700 | |
| Accrued expenses | | | 183,843 | | | | 210,027 | |
| Income taxes payable | | | 12,888 | | | | 11,853 | |
| Liabilities held for sale | | | 28,925 | | | | 27,811 | |
| | | | | | | |
| Total current liabilities | | | 465,397 | | | | 535,247 | |
| Long-term borrowings | | | 615,144 | | | | 685,912 | |
| Deferred tax liabilities | | | 134,562 | | | | 137,349 | |
| Other liabilities | | | 99,274 | | | | 100,717 | |
| | | | | | | |
| Total liabilities | | | 1,314,377 | | | | 1,459,225 | |
| Minority interest in equity of consolidated subsidiaries | | | 61,524 | | | | 65,478 | |
| Commitments and contingencies | | | | | | | | |
| Shareholders’ equity | | | 1,134,994 | | | | 1,109,733 | |
| | | | | | | |
| Total liabilities and shareholders’ equity | | $ | 2,510,895 | | | $ | 2,634,436 | |
| | | | | | | |
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TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| | | | | | | | | |
| | | Six Months Ended | |
| | | June 26, | | | June 27, | |
| | | 2005 | | | 2004 | |
| | | (Dollars in thousands) | |
| Cash Flows from Operating Activities: | | | | | | | | |
| Net income | | $ | 67,699 | | | $ | 63,637 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | |
| (Income) loss from discontinued operations | | | (4,336 | ) | | | 4,318 | |
| Depreciation expense | | | 43,716 | | | | 41,917 | |
| Amortization expense of intangible assets | | | 7,368 | | | | 5,371 | |
| Amortization expense of deferred financing costs | | | 481 | | | | — | |
| Gain on sale of businesses and assets | | | — | | | | (5,083 | ) |
| Impairment of long-lived assets | | | 2,664 | | | | — | |
| Minority interest in consolidated subsidiaries | | | 9,879 | | | | 8,876 | |
| Net change in operating assets and liabilities | | | 35,441 | | | | (9,058 | ) |
| | | | | | | |
| Net cash provided by operating activities | | | 162,912 | | | | 109,978 | |
| | | | | | | |
| Cash Flows from Financing Activities: | | | | | | | | |
| Proceeds from long-term borrowings | | | 16,000 | | | | — | |
| Reduction in long-term borrowings | | | (69,768 | ) | | | (28,990 | ) |
| Decrease in notes payable and current borrowings | | | (53,524 | ) | | | (51,031 | ) |
| Proceeds from stock compensation plans | | | 11,455 | | | | 12,225 | |
| Dividends | | | (19,097 | ) | | | (16,635 | ) |
| | | | | | | |
| Net cash used in financing activities | | | (114,934 | ) | | | (84,431 | ) |
| | | | | | | |
| Cash Flows from Investing Activities: | | | | | | | | |
| Expenditures for property, plant and equipment | | | (26,387 | ) | | | (24,613 | ) |
| Payments for businesses acquired | | | (6,701 | ) | | | — | |
| Proceeds from sale of businesses and assets | | | 88,948 | | | | 23,793 | |
| Investments in affiliates | | | (11 | ) | | | 899 | |
| Other | | | (2,600 | ) | | | (1,219 | ) |
| | | | | | | |
| Net cash provided by (used in) investing activities | | | 53,249 | | | | (1,140 | ) |
| | | | | | | |
| Cash Flows from Discontinued Operations: | | | | | | | | |
| Net cash provided by (used in) operating activities | | | (2,702 | ) | | | 6,363 | |
| Expenditures for property, plant and equipment | | | (2,024 | ) | | | (5,828 | ) |
| | | | | | | |
| Net cash provided by (used in) discontinued operations | | | (4,726 | ) | | | 535 | |
| | | | | | | |
| Net increase in cash and cash equivalents | | | 96,501 | | | | 24,942 | |
| Cash and cash equivalents at the beginning of the period | | | 115,955 | | | | 56,580 | |
| | | | | | | |
| Cash and cash equivalents at the end of the period | | $ | 212,456 | | | $ | 81,522 | |
| | | | | | | |
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TELEFLEX INCORPORATED AND SUBSIDIARIES
SUMMARY OF SEGMENT RESULTS
(Unaudited)
| | | | | | | | | |
| | | Three Months Ended | |
| | | June 26, | | | June 27, | |
| | | 2005 | | | 2004 | |
| | | (Dollars in thousands) | |
| Revenues: | | | | | | | | |
| Commercial | | $ | 314,706 | | | $ | 322,568 | |
| Medical | | | 218,906 | | | | 156,846 | |
| Aerospace | | | 124,347 | | | | 113,697 | |
| | | | | | | |
| Total revenues | | | 657,959 | | | | 593,111 | |
| | | | | | | |
Operating profit(1): | | | | | | | | |
| Commercial | | | 25,361 | | | | 36,201 | |
| Medical | | | 43,352 | | | | 26,708 | |
| Aerospace | | | 6,570 | | | | (5,515 | ) |
| | | | | | | |
| Total operating profit | | | 75,283 | | | | 57,394 | |
| Corporate expenses | | | 6,165 | | | | 6,527 | |
| Gain on sale of businesses and assets | | | — | | | | (5,083 | ) |
| Restructuring costs | | | 6,653 | | | | — | |
Minority interest in consolidated subsidiaries(2) | | | (5,181 | ) | | | (4,764 | ) |
| | | | | | | |
| Income from continuing operations before interest, taxes and minority interest | | $ | 67,646 | | | $ | 60,714 | |
| | | | | | | |
| | |
| (1) | | Segment operating profit is defined as a segment’s revenues reduced by its materials, labor and other product costs along with the segment’s selling, engineering and administrative expenses and minority interest. Corporate expenses, gain on sale of businesses and assets, restructuring costs, interest expense and taxes on income are excluded from the measure. |
| |
| (2) | | Minority interest in consolidated subsidiaries is included in segment operating profit presented above and must be removed in order to calculate income from continuing operations before interest, taxes and minority interest, as presented on the Company’s condensed consolidated statements of income for the three months ended June 26, 2005 and June 27, 2004, respectively. |
(MORE)
TELEFLEX INCORPORATED AND SUBSIDIARIES
SUMMARY OF SEGMENT RESULTS
(Unaudited)
| | | | | | | | | |
| | | Six Months Ended | |
| | | June 26, | | | June 27, | |
| | | 2005 | | | 2004 | |
| | | (Dollars in thousands) | |
| Revenues: | | | | | | | | |
| Commercial | | $ | 618,514 | | | $ | 635,915 | |
| Medical | | | 429,750 | | | | 305,889 | |
| Aerospace | | | 234,238 | | | | 229,439 | |
| | | | | | | |
| Total revenues | | | 1,282,502 | | | | 1,171,243 | |
| | | | | | | |
Operating profit(1): | | | | | | | | |
| Commercial | | | 50,178 | | | | 67,917 | |
| Medical | | | 76,520 | | | | 49,792 | |
| Aerospace | | | 8,533 | | | | (4,068 | ) |
| | | | | | | |
| Total operating profit | | | 135,231 | | | | 113,641 | |
| Corporate expenses | | | 13,120 | | | | 13,088 | |
| Gain on sale of businesses and assets | | | — | | | | (5,083 | ) |
| Restructuring costs | | | 13,947 | | | | — | |
Minority interest in consolidated subsidiaries(2) | | | (9,879 | ) | | | (8,876 | ) |
| | | | | | | |
| Income from continuing operations before interest, taxes and minority interest | | $ | 118,043 | | | $ | 114,512 | |
| | | | | | | |
| | |
| (1) | | Segment operating profit is defined as a segment’s revenues reduced by its materials, labor and other product costs along with the segment’s selling, engineering and administrative expenses and minority interest. Corporate expenses, gain on sale of businesses and assets, restructuring costs, interest expense and taxes on income are excluded from the measure. |
| |
| (2) | | Minority interest in consolidated subsidiaries is included in segment operating profit presented above and must be removed in order to calculate income from continuing operations before interest, taxes and minority interest, as presented on the Company’s condensed consolidated statements of income for the six months ended June 26, 2005 and June 27, 2004, respectively. |
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