Exhibit 99.1
| Contact: | Jake Elguicze |
| Treasurer and Vice President of Investor Relations |
| 610-948-2836 |
| FOR IMMEDIATE RELEASE | July 31, 2012 |
TELEFLEX REPORTS SECOND QUARTER 2012 RESULTS
Revenues Rise 0.6% to $383.3 million; up 4.7% on Constant Currency Basis
GAAP EPS of $1.14, up 52%
Adjusted EPS of $1.23, up 34%
Reaffirms 2012 Guidance for Constant Currency Revenue Growth and Adjusted EPS Ranges
Limerick, PA —Teleflex Incorporated (NYSE: TFX) today announced financial results for the second quarter ended July 1, 2012.
Second quarter 2012 net revenues were $383.3 million, an increase of 0.6% over the prior year period. Excluding the impact of foreign currency fluctuations, second quarter 2012 net revenues increased 4.7% over the prior year period.
Second quarter 2012 GAAP diluted earnings per share from continuing operations was $1.14, as compared to $0.75 in the prior year period. Second quarter 2012 adjusted diluted earnings per share from continuing operations was $1.23, an increase of 33.7% over the prior year period.
“Teleflex’s second quarter performance demonstrates continued steady progress in revenue growth, gross and operating margin improvement, and pipeline investment,” said Benson Smith, Chairman, President and CEO. “Revenue grew across all geographic regions on a constant currency basis, driven by additional sales volume and our pricing strategy. At the same time, we continued to invest in research and development, completing four late-stage technology acquisitions that will help position the Company for future growth. Furthermore, we are taking steps to expand margins through the divestiture of our OEM orthopedics business, as well as through the reduction of three U.S. based distribution centers into one centralized location. Looking forward, despite the impact of foreign currency headwinds, we remain comfortable with our previously provided constant currency revenue growth and adjusted earnings per share guidance ranges for 2012.”
SECOND QUARTER NET REVENUE BY PRODUCT GROUP AND SEGMENT
Critical Care second quarter 2012 net revenues were $254.1 million, an increase of 0.2% compared to the prior year period. Excluding the impact of foreign currency fluctuations, second quarter 2012 net revenues increased 4.4% compared to the prior year period. The increase in revenue was due to higher sales of anesthesia, urology and vascular access products, partially offset by a decline in sales of respiratory products.
Surgical Care second quarter 2012 net revenues were $72.5 million, a decrease of 0.5% compared to the prior year period. Excluding the impact of foreign currency fluctuations, second quarter 2012 net revenues increased 3.8% compared to the prior year period. The increase in revenue was due to higher sales of ligation and closure products, partially offset by a decline in sales of general surgical instruments and chest drainage products.
Cardiac Care second quarter 2012 net revenues were $20.5 million, a decrease of 7.6% compared to the prior year period. Excluding the impact of foreign currency fluctuations, second quarter 2012 net revenues decreased 2.3% compared to the prior year period. The decrease in revenue was due to a decline in sales of intra-aortic balloon pumps and catheters.
OEM and Development Services (“OEM”) second quarter 2012 net revenues were $36.0 million, an increase of 11.7% compared to the prior year period. Excluding the impact of foreign currency fluctuations, second quarter 2012 net revenues increased 13.6% compared to the prior year period. The increase in revenue was due to higher sales of specialty suture and catheter fabrication products. The OEM results, for all periods mentioned, reflect the OEM orthopedics business as a discontinued operation.
| Three Months Ended | % Increase/ (Decrease) | |||||||||||||||||||
| July 1, 2012 | June 26, 2011 | Constant Currency | Foreign Currency | Total Change | ||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||
Critical Care | $ | 254.1 | $ | 253.6 | 4.4 | % | (4.2 | %) | 0.2 | % | ||||||||||
Surgical Care | 72.5 | 72.9 | 3.8 | % | (4.3 | %) | (0.5 | %) | ||||||||||||
Cardiac Care | 20.5 | 22.1 | (2.3 | %) | (5.3 | %) | (7.6 | %) | ||||||||||||
OEM | 36.0 | 32.2 | 13.6 | % | (1.9 | %) | 11.7 | % | ||||||||||||
Other | 0.2 | 0.4 | 19.7 | % | (7.8 | %) | 11.9 | % | ||||||||||||
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Total | $ | 383.3 | $ | 381.2 | 4.7 | % | (4.1 | %) | 0.6 | % | ||||||||||
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North America second quarter 2012 net revenues were $160.3 million, an increase of 2.5% compared to the prior year period. Excluding the impact of foreign currency fluctuations, second quarter 2012 net revenues increased 2.7% compared to the prior year period. The increase in revenue was due to higher volume, new product sales, and price increases.
EMEA second quarter 2012 net revenues were $126.9 million, a decrease of 7.9% compared to the prior year period. Excluding the impact of foreign currency fluctuations, second quarter 2012 net revenues increased 2.3% compared to the prior year period. The increase in revenue was due to higher volume, new product sales, and price increases.
Asia & Latin America second quarter 2012 net revenues were $60.1 million, an increase of 9.9% compared to the prior year period. Excluding the impact of foreign currency fluctuations, second quarter 2012 net revenues increased 11.1% compared to the prior year period. The increase in revenue was due to higher volume and price increases.
OEM second quarter 2012 net revenues were $36.0 million, an increase of 11.7% compared to the prior year period. Excluding the impact of foreign currency fluctuations, second quarter 2012 net revenues increased 13.6% compared to the prior year period. The increase in revenue was due to higher sales of specialty suture and catheter fabrication products.
| Three Months Ended | % Increase/ (Decrease) | |||||||||||||||||||
| July 1, 2012 | June 26, 2011 | Constant Currency | Foreign Currency | Total Change | ||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||
North America | $ | 160.3 | $ | 156.5 | 2.7 | % | (0.2 | %) | 2.5 | % | ||||||||||
EMEA | 126.9 | 137.8 | 2.3 | % | (10.2 | %) | (7.9 | %) | ||||||||||||
Asia & Latin America | 60.1 | 54.7 | 11.1 | % | (1.2 | %) | 9.9 | % | ||||||||||||
OEM | 36.0 | 32.2 | 13.6 | % | (1.9 | %) | 11.7 | % | ||||||||||||
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Total | $ | 383.3 | $ | 381.2 | 4.7 | % | (4.1 | %) | 0.6 | % | ||||||||||
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SIX MONTH RESULTS
Net revenues for the first six months of 2012 were $763.9 million, an increase of 5.1% compared to the prior year period. Excluding the impact of foreign currency fluctuations, net revenues for the first six months of 2012 increased 7.9% compared to the prior year period.
GAAP loss per share from continuing operations was ($5.82) for the first six months of 2012, as compared to diluted earnings per share of $1.09 in the prior year period. The financial results for the first six months of 2012 reflect a goodwill impairment charge of $315.1 million, net of tax, or $7.72 per share, incurred in the first quarter of 2012.
Adjusted diluted earnings per share from continuing operations for the first six months of 2012 was $2.22, an increase of 24.7% over the prior year period. This increase reflects additional sales volume, improved pricing, gross profit expansion, and reduced tax expense. The improvement in profitability was partially offset by continuing investment in sales, marketing and research and development, and increased interest expense.
OTHER FINANCIAL HIGHLIGHTS AND KEY PERFORMANCE METRICS
Depreciation and amortization of intangible assets, deferred financing costs and debt discount for the first six months of 2012 were $45.4 million compared to $48.3 million for the prior year period.
Cash and cash equivalents at July 1, 2012 were $545.0 million compared to $584.1 million at December 31, 2011.
Net accounts receivable at July 1, 2012 were $275.2 million compared to $286.2 million at December 31, 2011.
Net inventories at July 1, 2012 were $284.6 million compared to $298.8 million at December 31, 2011.
Net debt obligations at July 1, 2012 were $484.7 million compared to $445.9 million at December 31, 2011.
2012 OUTLOOK
The Company’s financial estimates for 2012 are as follows:
Constant currency revenue growth between 4% and 6% for full year 2012.
Adjusted earnings per share in the range of $4.25 to $4.45.
2012 OUTLOOK EARNINGS PER SHARE RECONCILIATION
| Low | High | |||||||
Loss per share attributable to common shareholders | ($ | 4.25 | ) | ($ | 4.05 | ) | ||
Goodwill impairment, net of tax | $ | 7.72 | $ | 7.72 | ||||
Special items, net of tax | ($ | 0.04 | ) | ($ | 0.04 | ) | ||
Intangible amortization expense, net of tax | $ | 0.66 | $ | 0.66 | ||||
Amortization of debt discount on convertible notes, net of tax | $ | 0.16 | $ | 0.16 | ||||
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Adjusted earnings per share | $ | 4.25 | $ | 4.45 | ||||
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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 atwww.teleflex.comand the accompanying presentation will be posted prior to the call. An audio replay will be available until August 7, 2012, 11:59pm (ET), by calling 888-286-8010 (U.S./Canada) or 617-801-6888 (International), Passcode: 46362185.
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, depending on the period presented, the effect of charges associated with a goodwill impairment, our restructuring programs and asset impairments, losses and other charges related to acquisition costs, gain on sale of businesses and assets, refinancing transactions and costs associated with severance payments and benefits to be provided to our former chief executive officer, charges associated with the amortization of additional interest expense related to an interest rate swap terminated in 2011, intangible amortization expense, the amortization of debt discount on convertible notes and certain tax adjustments; 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. This press release also includes forecasted constant currency revenue growth, which is also a Non-GAAP measure. A reconciliation of forecasted constant currency revenue growth to GAAP forecasted growth has not been provided as management is unable to forecast trends in foreign currency exchange rates.
RECONCILIATION OF INCOME FROM CONTINUING OPERATIONS
| Three Months Ended July 1, 2012 | Three Months Ended June 26, 2011 | |||||||
| (Dollars in thousands, except per share) | ||||||||
Income and diluted earnings per share attributable to common | $ | 46,980 | $ | 30,840 | ||||
shareholders | $ | 1.14 | $ | 0.75 | ||||
Restructuring and impairment charges | 322 | 115 | ||||||
Tax benefit | (117 | ) | (25 | ) | ||||
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Restructuring and impairment charges, net of tax | 205 | 90 | ||||||
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| $ | 0.00 | $ | 0.00 | |||||
Losses and other charges (A) | 280 | 816 | ||||||
Tax benefit | (223 | ) | (297 | ) | ||||
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Losses and other charges, net of tax | 57 | 519 | ||||||
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| $ | 0.00 | $ | 0.01 | |||||
Early termination of interest rate swap (B) | 3,643 | — | ||||||
Tax benefit | (1,312 | ) | — | |||||
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Early termination of interest rate swap, net of tax | 2,331 | — | ||||||
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| $ | 0.06 | — | ||||||
Amortization of debt discount on convertible notes | 2,584 | 2,394 | ||||||
Tax benefit | (941 | ) | (867 | ) | ||||
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Amortization of debt discount on convertible notes, net of tax | 1,643 | 1,527 | ||||||
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| $ | 0.04 | $ | 0.04 | |||||
Intangible amortization expense | 10,692 | 10,731 | ||||||
Tax benefit | (3,896 | ) | (3,904 | ) | ||||
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Intangible amortization expense, net of tax | 6,796 | 6,827 | ||||||
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| $ | 0.17 | $ | 0.17 | |||||
Tax adjustments (C) | (7,654 | ) | (2,165 | ) | ||||
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| ($ | 0.19 | ) | ($ | 0.05 | ) | |||
Adjusted income and diluted earnings per share | $ | 50,358 | $ | 37,638 | ||||
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| $ | 1.23 | $ | 0.92 | |||||
| (A) | In 2012, losses and other charges include approximately $0.4 million, net of tax, or $0.01 per share, related to acquisition costs; and ($0.3) million, net of tax, or ($0.01) per share related to a gain on sale of businesses and assets. In 2011, losses and other charges include approximately $0.5 million, net of tax, or $0.01 per share, related to loss on extinguishment of debt. |
| (B) | In 2011, the Company terminated an interest rate swap that, at the date of termination, had a notional amount of $350 million. The interest rate swap was designated as a cash flow hedge against the term loan under our senior credit facility. At the date of termination, the interest rate swap was in a liability position resulting in a cash payment by the Company of approximately $14.8 million, which included $3.1 million of accrued interest. In accordance with GAAP, the Company is amortizing this amount as additional interest expense over the remainder of the original term of the interest rate swap, which was scheduled to expire in September 2012. In the second quarter of 2012, the non-cash, net of tax impact was approximately $2.3 million, or $0.06 per share. |
| (C) | The tax adjustment represents a net benefit resulting from the resolution (including the expiration of statutes of limitations) of various prior years’ U.S. federal, state and foreign tax matters. |
RECONCILIATION OF INCOME FROM CONTINUING OPERATIONS
| Six Months Ended July 1, 2012 | Six Months Ended June 26, 2011 | |||||||
| (Dollars in thousands, except per share) | ||||||||
Loss/income and (basic)/diluted earnings per share attributable to common | ($ | 237,360 | ) | $ | 44,117 | |||
shareholders | ($ | 5.82 | ) | $ | 1.09 | |||
Goodwill impairment | 332,128 | — | ||||||
Tax benefit | (16,983 | ) | — | |||||
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Goodwill impairment, net of tax | 315,145 | — | ||||||
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| $ | 7.72 | — | ||||||
Restructuring and impairment charges | (1,003 | ) | 710 | |||||
Tax benefit | 473 | (250 | ) | |||||
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Restructuring and impairment charges, net of tax | (530 | ) | 460 | |||||
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| $ | 0.01 | $ | 0.01 | |||||
Losses and other charges (A) | 280 | 20,913 | ||||||
Tax benefit | (223 | ) | (7,601 | ) | ||||
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Losses and other charges, net of tax | 57 | 13,312 | ||||||
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| $ | 0.00 | $ | 0.33 | |||||
Early termination of interest rate swap (B) | 7,394 | — | ||||||
Tax benefit | (2,677 | ) | — | |||||
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Early termination of interest rate swap, net of tax | 4,717 | — | ||||||
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| $ | 0.12 | — | ||||||
Amortization of debt discount on convertible notes | 5,136 | 4,757 | ||||||
Tax benefit | (1,870 | ) | (1,729 | ) | ||||
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Amortization of debt discount on convertible notes, net of tax | 3,266 | 3,028 | ||||||
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| $ | 0.08 | $ | 0.07 | |||||
Intangible amortization expense | 21,202 | 21,375 | ||||||
Tax benefit | (7,737 | ) | (7,783 | ) | ||||
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Intangible amortization expense, net of tax | 13,465 | 13,592 | ||||||
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| $ | 0.33 | $ | 0.33 | |||||
Tax adjustments (C) | (7,654 | ) | (2,165 | ) | ||||
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| ($ | 0.19 | ) | ($ | 0.05 | ) | |||
Anti-dilutive effect on EPS (D) | ($ | 0.02 | ) | — | ||||
Adjusted income and diluted earnings per share | $ | 91,106 | $ | 72,344 | ||||
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| $ | 2.22 | $ | 1.78 | |||||
| (A) | In 2012, losses and other charges include approximately $0.4 million, net of tax, or $0.01 per share, related to acquisition costs; and ($0.3) million, net of tax, or ($0.01) per share related to a gain on sale of businesses and assets. In 2011, losses and other charges include approximately $9.8 million, net of tax, or $0.24 per share, related to loss on extinguishment of debt; and $3.5 million, net of tax, or $0.09 per share, in charges related to severance payments and benefits provided to our former chief executive officer. |
| (B) | In 2011, the Company terminated an interest rate swap that, at the date of termination, had a notional amount of $350 million. The interest rate swap was designated as a cash flow hedge against the term loan under our senior credit facility. At the date of termination, the interest rate swap was in a liability position resulting in a cash payment by the Company of approximately $14.8 million, which included $3.1 million of accrued interest. In accordance with GAAP, the Company is amortizing this amount as additional interest expense over the remainder of the original term of the interest rate swap, which was scheduled to expire in September 2012. In the first six months of 2012, the non-cash, net of tax impact was approximately $4.7 million, or $0.12 per share. |
| (C) | 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. |
| (D) | The Company has presented results using basic weighted average shares with the impact of dilution on adjusted income, separately. In accordance with ASC 260, if income from continuing operations is a loss no potential common shares are included in the computation of diluted per-share amounts because inclusion would result in an anti-dilutive per share amount. |
RECONCILIATION OF NET DEBT OBLIGATIONS
| July 1, 2012 | December 31, 2011 | |||||||
| (Dollars in thousands) | ||||||||
Note payable and current portion of long-term borrowings | $ | 4,700 | $ | 4,986 | ||||
Long term borrowings | 959,945 | 954,809 | ||||||
Unamortized debt discount | 65,055 | 70,191 | ||||||
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Total debt obligations | 1,029,700 | 1,029,986 | ||||||
Less: cash and cash equivalents | 544,991 | 584,088 | ||||||
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Net debt obligations | $ | 484,709 | $ | 445,898 | ||||
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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 11,200 people worldwide and serves healthcare providers in more than 130 countries. For additional information about Teleflex please refer towww.teleflex.com.
CAUTION CONCERNING FORWARD-LOOKING INFORMATION
This press release contains forward-looking statements, including, but not limited to, statements relating to our expectation that the consolidation of three of our U.S. based distribution centers will generate improved operating efficiencies; and forecasted 2012 constant currency revenue growth and adjusted earnings per share. 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 for the year ended December 31, 2011.
TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| Three Months Ended | ||||||||
| July 1, 2012 | June 26, 2011 | |||||||
(Dollars and shares in except per share) | ||||||||
Net revenues | $ | 383,332 | $ | 381,168 | ||||
Cost of goods sold | 198,968 | 199,817 | ||||||
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Gross profit | 184,364 | 181,351 | ||||||
Selling, general and administrative expenses | 105,951 | 109,838 | ||||||
Research and development expenses | 13,702 | 12,455 | ||||||
Restructuring and other impairment charges | 321 | 3,176 | ||||||
Gain on sales of businesses and assets | (332 | ) | — | |||||
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Income from continuing operations before interest, loss on extinguishments of debt and taxes | 64,722 | 55,882 | ||||||
Interest expense | 18,240 | 15,785 | ||||||
Interest income | (506 | ) | (253 | ) | ||||
Loss on extinguishments of debt | — | 816 | ||||||
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Income from continuing operations before taxes | 46,988 | 39,534 | ||||||
Taxes (benefit) on income from continuing operations | (278 | ) | 8,436 | |||||
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Income from continuing operations | 47,266 | 31,098 | ||||||
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Operating loss from discontinued operations (including gain (loss) on disposal of 2,264 in 2012 and $(4,504) in 2011, respectively) | (8,049 | ) | (3,593 | ) | ||||
Benefit on loss from discontinued operations | (3,682 | ) | (6,982 | ) | ||||
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Income (loss) from discontinued operations | (4,367 | ) | 3,389 | |||||
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Net income | 42,899 | 34,487 | ||||||
Less: Income from continuing operations attributable to noncontrolling interest | 286 | 258 | ||||||
Income from discontinued operations attributable to noncontrolling interest | — | 159 | ||||||
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Net income attributable to common shareholders | $ | 42,613 | $ | 34,070 | ||||
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Earnings per share available to common shareholders: | ||||||||
Basic: | ||||||||
Income from continuing operations | $ | 1.15 | $ | 0.76 | ||||
Income (loss) from discontinued operations | $ | (0.11 | ) | $ | 0.08 | |||
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Net income | $ | 1.04 | $ | 0.84 | ||||
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Diluted: | ||||||||
Income from continuing operations | $ | 1.14 | $ | 0.75 | ||||
Income (loss) from discontinued operations | $ | (0.10 | ) | $ | 0.08 | |||
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Net income | $ | 1.04 | $ | 0.83 | ||||
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Dividends per common share | $ | 0.34 | $ | 0.34 | ||||
Weighted average common shares outstanding: | ||||||||
Basic | 40,834 | 40,536 | ||||||
Diluted | 41,076 | 40,872 | ||||||
Amounts attributable to common shareholders: | ||||||||
Income from continuing operations, net of tax | $ | 46,980 | $ | 30,840 | ||||
Income (loss) from discontinued operations, net of tax | (4,367 | ) | 3,230 | |||||
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Net income | $ | 42,613 | $ | 34,070 | ||||
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TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| Six Months Ended | ||||||||
| July 1, 2012 | June 26, 2011 | |||||||
| (Dollars and shares in thousands, except per share) | ||||||||
Net revenues | $ | 763,899 | $ | 726,749 | ||||
Cost of goods sold | 395,421 | 383,351 | ||||||
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Gross profit | 368,478 | 343,398 | ||||||
Selling, general and administrative expenses | 218,087 | 211,548 | ||||||
Research and development expenses | 25,255 | 23,486 | ||||||
Goodwill impairment | 332,128 | — | ||||||
Restructuring and other impairment charges | (1,004 | ) | 3,771 | |||||
Gain on sales of businesses and assets | (332 | ) | — | |||||
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Income (loss) from continuing operations before interest, loss on extinguishments of debt and taxes | (205,656 | ) | 104,593 | |||||
Interest expense | 36,451 | 31,931 | ||||||
Interest income | (984 | ) | (358 | ) | ||||
Loss on extinguishments of debt | — | 15,413 | ||||||
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Income (loss) from continuing operations before taxes | (241,123 | ) | 57,607 | |||||
Taxes (benefit) on income (loss) from continuing operations | (4,276 | ) | 13,009 | |||||
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Income (loss) from continuing operations | (236,847 | ) | 44,598 | |||||
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Operating income (loss) from discontinued operations (including gain on disposal of $2,264 in 2012 and $52,269 in 2011, respectively) | (7,120 | ) | 61,117 | |||||
Benefit on income (loss) from discontinued operations | (3,358 | ) | (6,966 | ) | ||||
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Income (loss) from discontinued operations | (3,762 | ) | 68,083 | |||||
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Net income (loss) | (240,609 | ) | 112,681 | |||||
Less: Income from continuing operations attributable to noncontrolling interest | 513 | 481 | ||||||
Income from discontinued operations attributable to noncontrolling interest | — | 318 | ||||||
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Net income (loss) attributable to common shareholders | $ | (241,122 | ) | $ | 111,882 | |||
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Earnings per share available to common shareholders: | ||||||||
Basic: | ||||||||
Income (loss) from continuing operations | $ | (5.82 | ) | $ | 1.09 | |||
Income (loss) from discontinued operations | $ | (0.09 | ) | $ | 1.69 | |||
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Net income (loss) | $ | (5.91 | ) | $ | 2.78 | |||
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Diluted: | ||||||||
Income (loss) from continuing operations | $ | (5.82 | ) | $ | 1.09 | |||
Income (loss) from discontinued operations | $ | (0.09 | ) | $ | 1.66 | |||
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Net income (loss) | $ | (5.91 | ) | $ | 2.75 | |||
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Dividends per common share | $ | 0.68 | $ | 0.68 | ||||
Weighted average common shares outstanding: | ||||||||
Basic | 40,801 | 40,297 | ||||||
Diluted | 40,801 | 40,648 | ||||||
Amounts attributable to common shareholders: | ||||||||
Income (loss) from continuing operations, net of tax | $ | (237,360 | ) | $ | 44,117 | |||
Income (loss) from discontinued operations, net of tax | (3,762 | ) | 67,765 | |||||
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Net income (loss) | $ | (241,122 | ) | $ | 111,882 | |||
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TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| July 1, 2012 | December 31, 2011 | |||||||
| (Dollars in thousands) | ||||||||
| ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 544,991 | $ | 584,088 | ||||
Accounts receivable, net | 275,166 | 286,226 | ||||||
Inventories, net | 284,555 | 298,775 | ||||||
Prepaid expenses and other current assets | 24,813 | 33,405 | ||||||
Prepaid taxes | 29,690 | 28,846 | ||||||
Deferred tax assets | 36,526 | 41,014 | ||||||
Assets held for sale | 53,890 | 7,902 | ||||||
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Total current assets | 1,249,631 | 1,280,256 | ||||||
Property, plant and equipment, net | 253,684 | 251,912 | ||||||
Goodwill | 1,095,591 | 1,438,542 | ||||||
Intangible assets, net | 938,129 | 879,787 | ||||||
Investments in affiliates | 1,669 | 2,008 | ||||||
Deferred tax assets | 275 | 278 | ||||||
Other assets | 67,843 | 71,320 | ||||||
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Total assets | $ | 3,606,822 | $ | 3,924,103 | ||||
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| LIABILITIES AND EQUITY | ||||||||
Current liabilities | ||||||||
Current borrowings | $ | 4,700 | $ | 4,986 | ||||
Accounts payable | 65,471 | 67,092 | ||||||
Accrued expenses | 83,177 | 78,160 | ||||||
Payroll and benefit-related liabilities | 58,921 | 64,386 | ||||||
Derivative liabilities | 1,669 | 633 | ||||||
Accrued interest | 9,155 | 10,960 | ||||||
Income taxes payable | 12,911 | 21,084 | ||||||
Current liability for uncertain tax positions | 3,910 | 22,656 | ||||||
Deferred tax liabilities | 1,011 | 1,050 | ||||||
Liabilities held for sale | 1,749 | — | ||||||
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Total current liabilities | 242,674 | 271,007 | ||||||
Long-term borrowings | 959,945 | 954,809 | ||||||
Deferred tax liabilities | 397,454 | 420,833 | ||||||
Pension and postretirement benefit liabilities | 182,461 | 194,984 | ||||||
Noncurrent liability for uncertain tax positions | 60,226 | 61,688 | ||||||
Other liabilities | 72,048 | 37,999 | ||||||
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Total liabilities | 1,914,808 | 1,941,320 | ||||||
Commitments and contingencies | ||||||||
Total common shareholders’ equity | 1,689,470 | 1,980,588 | ||||||
Noncontrolling interest | 2,544 | 2,195 | ||||||
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Total equity | 1,692,014 | 1,982,783 | ||||||
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Total liabilities and equity | $ | 3,606,822 | $ | 3,924,103 | ||||
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TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Six Months Ended | ||||||||
| July 1, 2012 | June 26, 2011 | |||||||
| (Dollars in thousands) | ||||||||
Cash Flows from Operating Activities of Continuing Operations: | ||||||||
Net income (loss) | $ | (240,609 | ) | $ | 112,681 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Loss (income) from discontinued operations | 3,762 | (68,083 | ) | |||||
Depreciation expense | 17,148 | 20,326 | ||||||
Amortization expense of intangible assets | 21,202 | 21,375 | ||||||
Amortization expense of deferred financing costs and debt discount | 7,098 | 6,642 | ||||||
Loss on extinguishments of debt | — | 15,413 | ||||||
Stock-based compensation | 4,003 | 965 | ||||||
Impairment of investments in affiliates | — | 3,061 | ||||||
Gain on sales of businesses and assets | (332 | ) | — | |||||
Goodwill impairment | 332,128 | — | ||||||
Deferred income taxes, net | (21,480 | ) | 941 | |||||
Other | (2,771 | ) | 658 | |||||
Changes in operating assets and liabilities, net of effects of acquisitions and disposals: | ||||||||
Accounts receivable | (13,225 | ) | (36,957 | ) | ||||
Inventories | 2,698 | (18,058 | ) | |||||
Prepaid expenses and other current assets | 8,476 | (3,707 | ) | |||||
Accounts payable and accrued expenses | (5,192 | ) | (1,923 | ) | ||||
Income taxes receivable and payable, net | (23,668 | ) | (15,561 | ) | ||||
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Net cash provided by operating activities from continuing operations | 89,238 | 37,773 | ||||||
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Cash Flows from Investing Activities of Continuing Operations: | ||||||||
Expenditures for property, plant and equipment | (28,893 | ) | (15,132 | ) | ||||
Proceeds from sales of businesses and assets, net of cash sold | 17,155 | 100,916 | ||||||
Payments for businesses and intangibles acquired, net of cash acquired | (62,627 | ) | (30,570 | ) | ||||
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Net cash (used in) provided by investing activities from continuing operations | (74,365 | ) | 55,214 | |||||
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Cash Flows from Financing Activities of Continuing Operations: | ||||||||
Proceeds from long-term borrowings | — | 515,000 | ||||||
Repayment of long-term borrowings | — | (455,800 | ) | |||||
Decrease in notes payable and current borrowings | (707 | ) | — | |||||
Proceeds from stock compensation plans | 4,091 | 30,577 | ||||||
Dividends | (27,756 | ) | (27,438 | ) | ||||
Debt extinguishment, issuance and amendment fees | — | (19,058 | ) | |||||
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Net cash (used in) provided by financing activities from continuing operations | (24,372 | ) | 43,281 | |||||
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Cash Flows from Discontinued Operations: | ||||||||
Net cash (used in) provided by operating activities | (8,191 | ) | 13,151 | |||||
Net cash used in investing activities | (2,121 | ) | (1,386 | ) | ||||
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Net cash (used in) provided by discontinued operations | (10,312 | ) | 11,765 | |||||
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Effect of exchange rate changes on cash and cash equivalents | (19,286 | ) | 9,324 | |||||
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Net (decrease) increase in cash and cash equivalents | (39,097 | ) | 157,357 | |||||
Cash and cash equivalents at the beginning of the period | 584,088 | 208,452 | ||||||
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Cash and cash equivalents at the end of the period | $ | 544,991 | $ | 365,809 | ||||
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