EX-99.1 2 d388208dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

 

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
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total

   $ 383.3       $ 381.2         4.7     (4.1 %)      0.6
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

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
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total

   $ 383.3       $ 381.2         4.7     (4.1 %)      0.6
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

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   
  

 

 

   

 

 

 

Adjusted earnings per share

   $ 4.25      $ 4.45   
  

 

 

   

 

 

 

CONFERENCE CALL WEBCAST AND ADDITIONAL INFORMATION

As previously announced, Teleflex will comment on its financial results on a conference call to be held today at 8:00 a.m. (ET). The call will be available live and archived on the company’s website at www.teleflex.com and the accompanying presentation will be posted prior to the call. An audio replay will be available until August 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
  

 

 

   

 

 

 

Restructuring and impairment charges, net of tax

     205        90   
  

 

 

   

 

 

 
   $ 0.00      $ 0.00   

Losses and other charges (A)

     280        816   

Tax benefit

     (223     (297
  

 

 

   

 

 

 

Losses and other charges, net of tax

     57        519   
  

 

 

   

 

 

 
   $ 0.00      $ 0.01   

Early termination of interest rate swap (B)

     3,643        —     

Tax benefit

     (1,312     —     
  

 

 

   

 

 

 

Early termination of interest rate swap, net of tax

     2,331        —     
  

 

 

   

 

 

 
   $ 0.06        —     

Amortization of debt discount on convertible notes

     2,584        2,394   

Tax benefit

     (941     (867
  

 

 

   

 

 

 

Amortization of debt discount on convertible notes, net of tax

     1,643        1,527   
  

 

 

   

 

 

 
   $ 0.04      $ 0.04   

Intangible amortization expense

     10,692        10,731   

Tax benefit

     (3,896     (3,904
  

 

 

   

 

 

 

Intangible amortization expense, net of tax

     6,796        6,827   
  

 

 

   

 

 

 
   $ 0.17      $ 0.17   

Tax adjustments (C)

     (7,654     (2,165
  

 

 

   

 

 

 
   ($ 0.19   ($ 0.05

Adjusted income and diluted earnings per share

   $ 50,358      $ 37,638   
  

 

 

   

 

 

 
   $ 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     —     
  

 

 

   

 

 

 

Goodwill impairment, net of tax

     315,145        —     
  

 

 

   

 

 

 
   $ 7.72        —     

Restructuring and impairment charges

     (1,003     710   

Tax benefit

     473        (250
  

 

 

   

 

 

 

Restructuring and impairment charges, net of tax

     (530     460   
  

 

 

   

 

 

 
   $ 0.01      $ 0.01   

Losses and other charges (A)

     280        20,913   

Tax benefit

     (223     (7,601
  

 

 

   

 

 

 

Losses and other charges, net of tax

     57        13,312   
  

 

 

   

 

 

 
   $ 0.00      $ 0.33   

Early termination of interest rate swap (B)

     7,394        —     

Tax benefit

     (2,677     —     
  

 

 

   

 

 

 

Early termination of interest rate swap, net of tax

     4,717        —     
  

 

 

   

 

 

 
   $ 0.12        —     

Amortization of debt discount on convertible notes

     5,136        4,757   

Tax benefit

     (1,870     (1,729
  

 

 

   

 

 

 

Amortization of debt discount on convertible notes, net of tax

     3,266        3,028   
  

 

 

   

 

 

 
   $ 0.08      $ 0.07   

Intangible amortization expense

     21,202        21,375   

Tax benefit

     (7,737     (7,783
  

 

 

   

 

 

 

Intangible amortization expense, net of tax

     13,465        13,592   
  

 

 

   

 

 

 
   $ 0.33      $ 0.33   

Tax adjustments (C)

     (7,654     (2,165
  

 

 

   

 

 

 
   ($ 0.19   ($ 0.05

Anti-dilutive effect on EPS (D)

   ($ 0.02     —     

Adjusted income and diluted earnings per share

   $ 91,106      $ 72,344   
  

 

 

   

 

 

 
   $ 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   
 

 

 

    

 

 

 

Total debt obligations

    1,029,700         1,029,986   

Less: cash and cash equivalents

    544,991         584,088   
 

 

 

    

 

 

 

Net debt obligations

  $ 484,709       $ 445,898   
 

 

 

    

 

 

 

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 to www.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
thousands,

except per share)

 

Net revenues

   $ 383,332      $ 381,168   

Cost of goods sold

     198,968        199,817   
  

 

 

   

 

 

 

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     —     
  

 

 

   

 

 

 

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   
  

 

 

   

 

 

 

Income from continuing operations before taxes

     46,988        39,534   

Taxes (benefit) on income from continuing operations

     (278     8,436   
  

 

 

   

 

 

 

Income from continuing operations

     47,266        31,098   
  

 

 

   

 

 

 

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
  

 

 

   

 

 

 

Income (loss) from discontinued operations

     (4,367     3,389   
  

 

 

   

 

 

 

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   
  

 

 

   

 

 

 

Net income attributable to common shareholders

   $ 42,613      $ 34,070   
  

 

 

   

 

 

 

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   
  

 

 

   

 

 

 

Net income

   $ 1.04      $ 0.84   
  

 

 

   

 

 

 

Diluted:

    

Income from continuing operations

   $ 1.14      $ 0.75   

Income (loss) from discontinued operations

   $ (0.10   $ 0.08   
  

 

 

   

 

 

 

Net income

   $ 1.04      $ 0.83   
  

 

 

   

 

 

 

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   
  

 

 

   

 

 

 

Net income

   $ 42,613      $ 34,070   
  

 

 

   

 

 

 


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   
  

 

 

   

 

 

 

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     —     
  

 

 

   

 

 

 

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   
  

 

 

   

 

 

 

Income (loss) from continuing operations before taxes

     (241,123     57,607   

Taxes (benefit) on income (loss) from continuing operations

     (4,276     13,009   
  

 

 

   

 

 

 

Income (loss) from continuing operations

     (236,847     44,598   
  

 

 

   

 

 

 

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
  

 

 

   

 

 

 

Income (loss) from discontinued operations

     (3,762     68,083   
  

 

 

   

 

 

 

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   
  

 

 

   

 

 

 

Net income (loss) attributable to common shareholders

   $ (241,122   $ 111,882   
  

 

 

   

 

 

 

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   
  

 

 

   

 

 

 

Net income (loss)

   $ (5.91   $ 2.78   
  

 

 

   

 

 

 

Diluted:

    

Income (loss) from continuing operations

   $ (5.82   $ 1.09   

Income (loss) from discontinued operations

   $ (0.09   $ 1.66   
  

 

 

   

 

 

 

Net income (loss)

   $ (5.91   $ 2.75   
  

 

 

   

 

 

 

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   
  

 

 

   

 

 

 

Net income (loss)

   $ (241,122   $ 111,882   
  

 

 

   

 

 

 


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   
  

 

 

    

 

 

 

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   
  

 

 

    

 

 

 

Total assets

   $ 3,606,822       $ 3,924,103   
  

 

 

    

 

 

 
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         —     
  

 

 

    

 

 

 

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   
  

 

 

    

 

 

 

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   
  

 

 

    

 

 

 

Total equity

     1,692,014         1,982,783   
  

 

 

    

 

 

 

Total liabilities and equity

   $ 3,606,822       $ 3,924,103   
  

 

 

    

 

 

 


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
  

 

 

   

 

 

 

Net cash provided by operating activities from continuing operations

     89,238        37,773   
  

 

 

   

 

 

 

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
  

 

 

   

 

 

 

Net cash (used in) provided by investing activities from continuing operations

     (74,365     55,214   
  

 

 

   

 

 

 

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
  

 

 

   

 

 

 

Net cash (used in) provided by financing activities from continuing operations

     (24,372     43,281   
  

 

 

   

 

 

 

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
  

 

 

   

 

 

 

Net cash (used in) provided by discontinued operations

     (10,312     11,765   
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     (19,286     9,324   
  

 

 

   

 

 

 

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   
  

 

 

   

 

 

 

Cash and cash equivalents at the end of the period

   $ 544,991      $ 365,809