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