EX-99.2 3 exhibit2.htm EX-99.2 EX-99.2

Exhibit 99.2

TELEFLEX INCORPORATED AND SUBSIDIARIES
Adjusted Cash Flows
To Reflect Discontinued Operations
(Unaudited)

                                         
    For the Year Ending December 31,
    2007           2006
    (Dollars in thousands)
     
Cash Flows from Operating Activities of Continuing Operations:
                                        
Net income
           $ 175,433                     $ 164,387  
Adjustments to reconcile net income to net cash used in operating activities:
                                        
Income from discontinued operations
             (233,328 )                     (91,924 )
Depreciation expense
             44,691                       40,328  
Amortization expense of intangible assets
             20,688                       10,764  
Amortization expense of deferred financing costs
             6,946                       1,332  
In-process research and development charge
             30,000                       —  
Stock-based compensation
             7,515                       5,858  
Net loss on sales of businesses and assets
             1,110                       732  
Impairment of long-lived assets
             6,320                       8,305  
Impairment of goodwill
             18,896                       1,003  
Other
             6,964                       (544 )
Changes in operating assets and liabilities, net of effects of acquisitions:
                                        
Accounts receivable
             3,659                       26,352  
Inventories
             60,617                       977  
Prepaid expenses
             (1,067 )                     (8,989 )
Accounts payable and accrued expenses
             16,198                       (3,861 )
Income taxes payable and deferred income taxes
             70,741                       (7,832 )
 
                                        
Net cash provided by operating activities from continuing operations
             235,383                       146,888  
 
                                        
Cash Flows from Financing Activities of Continuing Operations:
                                        
Proceeds from long-term borrowings
             1,620,000                       —  
Reduction in long-term borrowings
             (463,391 )                     (7,031 )
Payments of debt issuance costs
             (21,565 )                     —  
Increase (decrease) in notes payable and current borrowings
             1,321                       (59,912 )
Proceeds from stock compensation plans
             24,171                       11,952  
Payments to noncontrolling interest shareholders
             (189 )                     (129 )
Purchase of treasury stock
             —                       (93,552 )
Dividends
             (48,929 )                     (44,096 )
 
                                        
Net cash provided by (used in) financing activities from continuing operations
             1,111,418                       (192,768 )
 
                                        
Cash Flows from Investing Activities of Continuing Operations:
                                        
Expenditures for property, plant and equipment
             (42,580 )                     (35,955 )
Proceeds from sales of businesses and assets
             702,314                       3,644  
Payments for businesses and intangibles acquired, net of cash acquired
             (2,174,517 )                     (37,370 )
Proceeds from affiliates
             446                       2,597  
Working capital payment for divested businesses
             —                       (6,029 )
 
                                        
Net cash used in investing activities from continuing operations
             (1,514,337 )                     (73,113 )
 
                                        
Cash Flows from Discontinued Operations:
                                        
Net cash provided by operating activities
             158,205                       197,774  
Net cash used in financing activities
             (25,959 )                     (57,337 )
Net cash used in investing activities
             (25,258 )                     (27,395 )
 
                                        
Net cash provided by discontinued operations
             106,988                       113,042  
 
                                        
Effect of exchange rate changes on cash and cash equivalents
             13,481                       14,824  
 
                                        
Net (decrease) increase in cash and cash equivalents
             (47,067 )                     8,873  
Cash and cash equivalents at the beginning of the period
             248,409                       239,536  
 
                                        
Cash and cash equivalents at the end of the period
           $ 201,342                     $ 248,409  
 
                                        

1

TELEFLEX INCORPORATED AND SUBSIDIARIES
Adjusted Cash Flows
To Reflect Discontinued Operations
(Unaudited)

                                                                                 
      2008 Year to Date
    March 30,   June 29,                                   December 31,
    2008   2008     September 28, 2008     2008
                            (Dollars in thousands)                        
Cash Flows from Operating Activities of Continuing Operations:
                                                     
Net income
           $ 29,997           $ 74,038                   $ 125,984               $ 154,602
Adjustments to reconcile net income to net cash used in operating activities:
                                                            
Income from discontinued operations
           (14,789 )           (29,957 )                   (49,548 )                   (56,727 )
Depreciation expense
       16,266       31,115               45,384               60,388
Amortization expense of intangible assets
       11,716       23,503               34,936               46,061
Amortization expense of deferred financing costs
       1,468       2,510               3,931               5,330
Stock-based compensation
           1,797           4,241                   6,578                   8,643
Net loss (gain) on sales of businesses and assets
           18           18                   18                   (296 )
Impairment of long-lived assets
           —           —                   —                   10,399
Other
           2,206           1,811                   16,968                   13,236
Changes in operating assets and liabilities, net of effects of acquisitions:
                                                                
Accounts receivable
       (29,155 )       (10,417 )               (9,040 )               4,519
Inventories
       15,999       1,855               (14,592 )               (17,103 )
Prepaid expenses
       669       5,537               9,867               5,539
Accounts payable and accrued expenses
       1,395       10,653               5,731               5,557
Income taxes payable and deferred income taxes
       (57,837 )       (129,679 )               (135,772 )               (137,862 )
 
                                                                                
Net cash (used in) provided by operating activities from continuing operations
       (20,250 )       (14,772 )               40,445               102,286
 
                                                                                
Cash Flows from Financing Activities of Continuing Operations:
                                                                
Proceeds from long-term borrowings
           —           —                   77,000                   92,897
Reduction in long-term borrowings
       (13,421 )       (38,983 )               (185,345 )               (226,687 )
Payment of debt amendment costs
           —           —                   —                   (656 )
Increase (decrease) in notes payable and current borrowings
       10,159       (1,340 )               2,386               (492 )
Proceeds from stock compensation plans
       1,602       5,586               7,717               7,955
Payments to noncontrolling interest shareholders
           (442 )           (442 )                   (739 )                   (739 )
Dividends
       (12,622 )       (26,086 )               (39,568 )               (53,047 )
 
                                                                                
Net cash used in financing activities from continuing operations
       (14,724 )       (61,265 )               (138,549 )               (180,769 )
 
                                                                                
Cash Flows from Investing Activities of Continuing Operations:
                                                                
Expenditures for property, plant and equipment
       (7,468 )       (16,782 )               (26,421 )               (36,371 )
Proceeds from sales of businesses and assets
       —       —               6,681               8,464
Payments for businesses and intangibles acquired, net of cash acquired
           (350 )           (6,083 )                   (6,083 )                   (6,083 )
Investments in affiliates
       (100 )       (250 )               (320 )               (320 )
 
                                                                                
Net cash used in investing activities from continuing operations
       (7,918 )       (23,115 )               (26,143 )               (34,310 )
 
                                                                                
Cash Flows from Discontinued Operations:
                                                                                
Net cash provided by operating activities
           14,283           31,111                   52,087                   68,883
Net cash used in financing activities
           (12,250 )           (24,500 )                   (32,340 )                   (37,240 )
Net cash used in investing activities
           (291 )           (1,023 )                   (1,871 )                   (5,141 )
 
                                                                                
Net cash provided by discontinued operations
       1,742       5,588               17,876               26,502
 
                                                                                
Effect of exchange rate changes on cash and cash equivalents
           (6,085 )           (4,536 )                   (3,574 )                   (7,776 )
 
                                                                                
Net decrease in cash and cash equivalents
       (47,235 )       (98,100 )               (109,945 )               (94,067 )
Cash and cash equivalents at the beginning of the period
       201,342       201,342               201,342               201,342
 
                                                                                
Cash and cash equivalents at the end of the period
   $   154,107           $ 103,242                   $ 91,397                   $ 107,275
 
                                                                                

2