First Quarter Revenues from Continuing
Operations of $613.6 million, up 4.5% versus Prior Year Period; up
7.6% on a Constant Currency Basis
Teleflex Incorporated (NYSE: TFX) (the “Company”) today announced
financial results for the first quarter ended March 31, 2019.
First quarter 2019 net revenues were $613.6 million, an increase
of 4.5% compared to the prior year period. Excluding the
impact of foreign currency exchange rate fluctuations, first
quarter 2019 net revenues increased 7.6% over the year ago
period.
First quarter 2019 GAAP earnings per share from continuing
operations decreased 24.6% to $0.89, as compared to GAAP earnings
per share of $1.18 in the prior year period. First quarter
2019 adjusted diluted earnings per share from continuing operations
increased 4.2% to $2.24, compared to $2.15 in the prior year
period.
Liam Kelly, President and Chief Executive Officer, said, “The
first quarter of 2019 was an outstanding start to the year for
Teleflex. We reported constant currency revenue growth of 7.6%,
placing us in a strong position to achieve our full year constant
currency revenue growth guidance range of between 6% and 7%. From a
product perspective, our robust top line performance in the quarter
was led by sales of our Interventional Urology, OEM, and
Interventional products. While from a geographic standpoint, we
achieved particularly strong growth within Asia and the Americas.
In addition, during the quarter we continued to invest in driving
the adoption of our high-growth, high-margin products, which puts
us on track to deliver on both our near, and long-term, financial
objectives.”
FIRST QUARTER NET REVENUE BY SEGMENT
The following table provides information regarding net revenues
in each of the Company's reportable operating segments for the
three months ended March 31, 2019 on both a GAAP and constant
currency basis. The discussion below the table of the principal
factors behind changes in net revenues for the three months ended
March 31, 2019 as compared to the prior year period applies to both
GAAP revenue and constant currency revenue, although GAAP revenue
also was affected by foreign currency exchange rate fluctuations,
as indicated in the "Currency Impact" column of the table.
|
|
|
|
|
|
|
Three Months
Ended |
|
% Increase
/ (Decrease) |
| |
March 31,2019 |
|
April 1,2018 |
|
Total SalesGrowth |
|
CurrencyImpact |
|
Constant CurrencyRevenue Growth |
|
| Americas |
$ |
344.0 |
|
|
$ |
323.3 |
|
|
6.4 |
|
% |
|
(0.3 |
) |
% |
|
6.7 |
|
% |
|
| EMEA |
|
154.6 |
|
|
|
159.9 |
|
|
(3.3 |
) |
% |
|
(7.8 |
) |
% |
|
4.5 |
|
% |
|
| Asia |
|
60.8 |
|
|
|
58.2 |
|
|
4.3 |
|
% |
|
(6.7 |
) |
% |
|
11.0 |
|
% |
|
| OEM |
|
54.2 |
|
|
|
45.8 |
|
|
18.3 |
|
% |
|
(1.8 |
) |
% |
|
20.1 |
|
% |
|
|
Total |
$ |
613.6 |
|
|
$ |
587.2 |
|
|
4.5 |
|
% |
|
(3.1 |
) |
% |
|
7.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas first quarter 2019 net revenues were $344.0 million, an
increase of 6.4% compared to the prior year period. Excluding
the impact of foreign currency exchange rate fluctuations, first
quarter 2019 net revenues increased 6.7% compared to the prior year
period. The increase in constant currency revenue is
primarily attributable to an increase in sales volumes of existing
products and an increase in new product sales.
EMEA first quarter 2019 net revenues were $154.6 million, a
decrease of 3.3% compared to the prior year period. Excluding the
impact of foreign currency exchange rate fluctuations, first
quarter 2019 net revenues increased 4.5% compared to the prior year
period. The increase in constant currency revenue is primarily
attributable to an increase in sales volumes of existing
products.
Asia first quarter 2019 net revenues were $60.8 million, an
increase of 4.3% compared to the prior year period. Excluding
the impact of foreign currency exchange rate fluctuations, first
quarter 2019 net revenues increased 11.0% compared to the prior
year period. The increase in constant currency revenue is
primarily attributable to an increase in sales volumes of existing
products and an increase in new product sales.
OEM first quarter 2019 net revenues were $54.2 million, an
increase of 18.3% compared to the prior year period.
Excluding the impact of foreign currency exchange rate
fluctuations, first quarter 2019 net revenues increased 20.1%
compared to the prior year period. The increase in constant
currency revenue is primarily attributable to higher sales volumes
of existing products.
FIRST QUARTER NET REVENUE BY GLOBAL PRODUCT
CATEGORY
The following table and commentary provides information
regarding net revenues in each of the Company's global product
categories for the three months ended March 31, 2019 on both a GAAP
and constant currency basis.
|
|
|
|
|
|
|
Three Months
Ended |
|
% Increase
/ (Decrease) |
| |
March 31,2019 |
|
April 1,2018 |
|
Total SalesGrowth |
|
CurrencyImpact |
|
Constant CurrencyRevenue Growth |
|
| Vascular Access |
$ |
143.9 |
|
|
$ |
144.0 |
|
|
(0.1 |
) |
% |
|
(2.6 |
) |
% |
|
2.5 |
|
% |
|
| Interventional |
|
103.2 |
|
|
|
90.1 |
|
|
14.5 |
|
% |
|
(2.6 |
) |
% |
|
17.1 |
|
% |
|
| Anesthesia |
|
80.3 |
|
|
|
84.9 |
|
|
(5.5 |
) |
% |
|
(4.0 |
) |
% |
|
(1.5 |
) |
% |
|
| Surgical |
|
86.7 |
|
|
|
85.6 |
|
|
1.3 |
|
% |
|
(3.7 |
) |
% |
|
5.0 |
|
% |
|
| Interventional
Urology |
|
59.7 |
|
|
|
42.3 |
|
|
41.2 |
|
% |
|
(0.3 |
) |
% |
|
41.5 |
|
% |
|
| OEM |
|
54.2 |
|
|
|
45.8 |
|
|
18.3 |
|
% |
|
(1.8 |
) |
% |
|
20.1 |
|
% |
|
| Other |
|
85.6 |
|
|
|
94.4 |
|
|
(9.3 |
) |
% |
|
(4.2 |
) |
% |
|
(5.1 |
) |
% |
|
|
Total |
$ |
613.6 |
|
|
$ |
587.2 |
|
|
4.5 |
|
% |
|
(3.1 |
) |
% |
|
7.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First quarter 2019 net revenues from sales of Vascular Access
products were $143.9 million, a decrease of 0.1% compared to the
prior year period. Excluding the impact of foreign currency
exchange rate fluctuations, first quarter 2019 net revenues
increased 2.5% compared to the prior year period.
First quarter 2019 net revenues from sales of Interventional
products were $103.2 million, an increase of 14.5% compared to the
prior year period. Excluding the impact of foreign currency
exchange rate fluctuations, first quarter 2019 net revenues
increased 17.1% compared to the prior year period.
First quarter 2019 net revenues from sales of Anesthesia
products were $80.3 million, a decrease of 5.5% compared to the
prior year period. Excluding the impact of foreign currency
exchange rate fluctuations, first quarter 2019 net revenues
decreased 1.5% compared to the prior year period.
First quarter 2019 net revenues from sales of Surgical products
were $86.7 million, an increase of 1.3% compared to the prior year
period. Excluding the impact of foreign currency exchange
rate fluctuations, first quarter 2019 net revenues increased 5.0%
compared to the prior year period.
First quarter 2019 net revenues from sales of Interventional
Urology products were $59.7 million, an increase of 41.2% compared
to the prior year period. Excluding the impact of foreign currency
exchange rate fluctuations, first quarter 2019 net revenues
increased 41.5% compared to the prior year period.
First quarter 2019 net revenues from sales of OEM products were
$54.2 million, an increase of 18.3% compared to the prior year
period. Excluding the impact of foreign currency exchange
rate fluctuations, first quarter 2019 net revenues increased 20.1%
compared to the prior year period.
First quarter 2019 net revenues from sales of Other products
were $85.6 million, a decrease of 9.3% compared to the prior year
period. Excluding the impact of foreign currency exchange
rate fluctuations, first quarter 2019 net revenues decreased 5.1%
compared to the prior year period.
OTHER FINANCIAL HIGHLIGHTS AND KEY PERFORMANCE
METRICS
Depreciation expense, amortization of intangible assets and
deferred financing charges for the first three months of 2019
totaled $54.6 million compared to $53.8 million for the prior year
period.
Cash and cash equivalents at March 31, 2019 were $271.2 million
compared to $357.2 million at December 31, 2018.
Net accounts receivable at March 31, 2019 were $375.8 million
compared to $366.3 million at December 31, 2018.
Net inventories at March 31, 2019 were $445.6 million compared
to $427.8 million at December 31, 2018.
2019 OUTLOOK
On a GAAP basis, revenues in 2019 are expected to increase
between 5% and 6% over the prior year, reflecting our estimate of
an approximately 1% unfavorable impact of foreign currency exchange
rate fluctuations. On a constant currency basis, the Company
estimates that revenues for full year 2019 will increase between 6%
and 7%.
The Company lowered its full year 2019 GAAP diluted earnings per
share from continuing operations guidance from a range of between
$6.90 and $7.05 to a range of between $6.72 and $6.84, reflecting
the impact of additional restructuring, contingent consideration,
intangible amortization expenses, and tax adjustments. The Company
expects adjusted diluted earnings per share from continuing
operations to be between $10.90 and $11.10 for full year 2019,
representing an increase of between 10.1% and 12.1% over 2018, and
reflecting our estimate of an approximately 2% negative impact from
foreign currency exchange rate fluctuations.
Forecasted 2019 Constant Currency Revenue Growth
Reconciliation
| |
Low |
High |
| |
|
|
| Forecasted 2019 GAAP
revenue growth |
5.0 |
|
% |
6.0 |
|
% |
| |
|
|
| Estimated
impact of foreign currency exchange rate fluctuations |
(1.0 |
) |
% |
(1.0 |
) |
% |
| |
|
|
|
Forecasted 2019 constant currency revenue growth |
6.0 |
|
% |
7.0 |
|
% |
|
|
|
|
|
|
|
|
Forecasted 2019 Adjusted Diluted Earnings Per Share From
Continuing Operations Reconciliation
| |
Low |
High |
| |
|
|
| Forecasted GAAP diluted
earnings per share from continuing operations |
$ |
6.72 |
|
|
$ |
6.84 |
|
|
| |
|
|
|
Restructuring, restructuring related and impairment items, net of
tax |
$ |
0.83 |
|
|
$ |
0.86 |
|
|
| |
|
|
|
Acquisition, integration and divestiture related items, net of
tax |
$ |
0.83 |
|
|
$ |
0.85 |
|
|
| |
|
|
|
|
| Other
items, net of tax |
$ |
0.11 |
|
|
$ |
0.12 |
|
|
| |
|
|
|
|
|
Intangible amortization expense, net of tax |
$ |
2.62 |
|
|
$ |
2.64 |
|
|
| |
|
|
|
|
| Tax
adjustments |
$ |
(0.21 |
) |
|
$ |
(0.21 |
) |
|
| |
|
|
|
|
|
Forecasted adjusted diluted earnings per share from continuing
operations |
$ |
10.90 |
|
|
$ |
11.10 |
|
|
|
|
|
|
|
|
|
|
|
|
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 May 7, 2019 at 11:00pm
(ET), by calling 855-859-2056 (U.S./Canada) or 404-537-3406
(International), Passcode: 6798477.
ADDITIONAL NOTES
References in this release to the impact of foreign currency
exchange rate fluctuations on adjusted diluted earnings per share
include both the impact of translating foreign currencies into U.S.
dollars and the impact of foreign currency exchange rate
fluctuations on foreign currency denominated transactions.
In the discussion of segment results, "new products" refers to
products for which we initiated commercial sales within the past 36
months and "existing products" refers to products we have sold
commercially for more than 36 months.
Certain financial information is presented on a rounded basis,
which may cause minor differences.
Segment results and commentary exclude the impact of
discontinued operations.
NOTES ON NON-GAAP FINANCIAL MEASURES
We report our financial results in accordance with accounting
principles generally accepted in the United States, commonly
referred to as “GAAP.” In this press release, we provide
supplemental information, consisting of the following non-GAAP
financial measures: constant currency revenue growth and adjusted
diluted earnings per share. These non-GAAP measures are described
in more detail below. Management uses these financial
measures to assess Teleflex’s financial performance, make operating
decisions, allocate financial resources, provide guidance on
possible future results, and assist in its evaluation of
period-to-period and peer comparisons. The non-GAAP measures may be
useful to investors because they provide insight into management’s
assessment of our business, and provide supplemental information
pertinent to a comparison of period-to-period results of our
ongoing operations. The non-GAAP 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. Moreover, our non-GAAP financial measures may not be
comparable to similarly titled measures used by other
companies.
Tables reconciling changes in historical constant currency net
revenues to historical GAAP net revenues are set forth above under
“First Quarter Net Revenue by Segment." Tables reconciling
historical adjusted diluted earnings per share from continuing
operations to historical GAAP diluted earnings per share from
continuing operations are set forth below. Tables reconciling
forecasted 2019 constant currency revenue growth and forecasted
2019 adjusted earnings per share from continuing operations to
their respective most directly comparable forecasted GAAP measures,
forecasted 2019 GAAP revenue growth and forecasted 2019 GAAP
diluted earnings per share from continuing operations,
respectively, are set forth above under “2019 Outlook.”
Constant currency revenue growth: This non-GAAP
measure is based upon net revenues, adjusted to eliminate the
impact of translating the results of international subsidiaries at
different currency exchange rates from period to period. The impact
of changes in foreign currency may vary significantly from period
to period, and generally are outside of the control of our
management. We believe that this measure facilitates a comparison
of our operating performance exclusive of currency exchange rate
fluctuations that do not reflect our underlying performance or
business trends.
Adjusted diluted earnings per share: This
non-GAAP measure is based upon diluted earnings per share from
continuing operations, the most directly comparable GAAP measure,
adjusted to exclude, depending on the period presented, the items
described below. Management does not believe that any of the
excluded items are indicative of our underlying core performance or
business trends.
Restructuring, restructuring related and impairment items -
Restructuring programs involve discrete initiatives designed to,
among other things, consolidate or relocate manufacturing,
administrative and other facilities, outsource distribution
operations, improve operating efficiencies and integrate acquired
businesses. Depending on the specific restructuring program
involved, our restructuring charges may include employee
termination, contract termination, facility closure, employee
relocation, equipment relocation, outplacement and other exit costs
associated with the restructuring program. Restructuring
related charges are directly related to our restructuring programs
and consist of facility consolidation costs, including accelerated
depreciation expense related to facility closures, costs to
transfer manufacturing operations between locations, and retention
bonuses offered to certain employees as an incentive for them to
remain with our company after completion of the restructuring
program. Impairment charges occur if, due to events or changes in
circumstances, we determine that the carrying value of an asset
exceeds its fair value. Impairment charges do not directly affect
our liquidity, but could have a material adverse effect on our
reported financial results.
Acquisition, integration and divestiture related items -
Acquisition and integration expenses are incremental charges, other
than restructuring or restructuring related expenses, that are
directly related to specific business or asset acquisition
transactions. These charges may include, among other things,
professional, consulting and other fees; systems integration costs;
legal entity restructuring expense; inventory step-up amortization
(amortization, through cost of goods sold, of the increase in fair
value of inventory resulting from a fair value calculation as of
the acquisition date); fair value adjustments to contingent
consideration liabilities; and bridge loan facility and backstop
financing fees in connection with loan facilities that ultimately
were not utilized. Divestiture related activities involve specific
business or asset sales. Depending primarily on the terms of
the divestiture transaction, the carrying value of the divested
business or assets on our financial statements and other costs we
incur as a direct result of the divestiture transaction, we may
recognize a gain or loss in connection with the divestiture related
activities.
Other items - These are discrete items that occur sporadically
and can affect period-to-period comparisons. See footnote C to the
reconciliation tables set forth below.
Intangible amortization expense - Certain intangible assets,
including customer relationships, intellectual property,
distribution rights, trade names and non-competition agreements,
initially are recorded at historical cost and then amortized over
their respective estimated useful lives. The amount of such
amortization can vary from period to period as a result of, among
other things, business or asset acquisitions or dispositions.
Tax adjustments - These adjustments represent the impact of the
expiration of applicable statutes of limitations for prior year
returns, the resolution of audits, the filing of amended returns
with respect to prior tax years and/or tax law changes affecting
our deferred tax liability.
RECONCILIATION OF CONSOLIDATED STATEMENT OF INCOME
ITEMSDollars in millions, except per share
amounts
|
Quarter Ended - March 31, 2019 |
|
|
|
|
|
| |
Cost ofgoods sold |
Selling,generalandadministrative
expenses |
Researchanddevelopmentexpenses |
Restructuringandimpairmentcharges |
(Gain)/Losson sale ofbusinesses
&assets |
Incometaxes |
Income
(loss)fromcontinuingoperations |
Dilutedearningsper
sharefromcontinuingoperations |
| GAAP Basis |
$ |
268.8 |
|
$ |
227.7 |
|
$ |
27.2 |
|
$ |
17.4 |
|
$ |
(2.7 |
) |
$ |
11.0 |
|
$ |
41.9 |
|
$ |
0.89 |
|
| Adjustments |
|
|
|
|
|
|
|
|
| Restructuring,
restructuring related and impairment items (A) |
|
3.0 |
|
|
0.0 |
|
|
0.0 |
|
|
17.4 |
|
|
— |
|
|
1.9 |
|
|
18.5 |
|
$ |
0.39 |
|
| Acquisition,
integration and divestiture related items (B) |
|
— |
|
|
13.6 |
|
|
— |
|
|
— |
|
|
(2.7 |
) |
|
(1.9 |
) |
|
12.7 |
|
$ |
0.27 |
|
| Other items (C) |
|
— |
|
|
1.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
0.3 |
|
|
1.0 |
|
$ |
0.02 |
|
| Intangible amortization
expense |
|
— |
|
|
37.6 |
|
|
0.1 |
|
|
— |
|
|
— |
|
|
7.7 |
|
|
30.0 |
|
$ |
0.64 |
|
| Tax adjustments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.7 |
) |
|
0.7 |
|
$ |
0.01 |
|
| Adjusted basis |
$ |
265.8 |
|
$ |
175.2 |
|
$ |
27.0 |
|
|
— |
|
|
— |
|
$ |
18.3 |
|
$ |
105.0 |
|
$ |
2.24 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF CONSOLIDATED STATEMENT OF INCOME
ITEMSDollars in millions, except per share
amounts
|
Quarter Ended - April 1, 2018 |
|
|
|
|
| |
Cost ofgoods sold |
Selling,general andadministrativeexpenses |
Researchanddevelopmentexpenses |
Restructuringandimpairmentcharges |
Incometaxes |
Income
(loss)fromcontinuingoperations |
Dilutedearningsper
sharefromcontinuingoperations |
| GAAP Basis |
$ |
256.0 |
|
$ |
215.3 |
|
$ |
26.0 |
|
$ |
3.1 |
|
$ |
6.2 |
|
$ |
54.9 |
|
$ |
1.18 |
|
| Adjustments |
|
|
|
|
|
|
|
| Restructuring, restructuring
related and impairment items (A) |
|
2.0 |
|
|
0.1 |
|
|
0.1 |
|
|
3.1 |
|
|
0.7 |
|
|
4.5 |
|
$ |
0.10 |
|
| Acquisition,
integration and divestiture related items (B) |
|
0.4 |
|
|
11.5 |
|
|
0.2 |
|
|
— |
|
|
0.5 |
|
|
11.5 |
|
$ |
0.25 |
|
| Other items (C) |
|
(1.0 |
) |
|
0.1 |
|
|
— |
|
|
— |
|
|
(0.1 |
) |
|
(0.7 |
) |
$ |
(0.02 |
) |
| Intangible amortization
expense |
|
— |
|
|
37.7 |
|
|
0.1 |
|
|
— |
|
|
7.6 |
|
|
30.3 |
|
$ |
0.65 |
|
| Tax adjustments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.2 |
) |
|
0.2 |
|
$ |
0.00 |
|
| Adjusted basis |
$ |
254.6 |
|
$ |
165.9 |
|
$ |
25.7 |
|
|
— |
|
$ |
14.7 |
|
$ |
100.6 |
|
$ |
2.15 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Restructuring, restructuring related and impairment
items - For the three months ended March 31, 2019, pre-tax
restructuring charges were $14.4 million, pre-tax restructuring
related charges were $3.1 million, and pre-tax impairment charges
were $3.0 million. For the three months ended April 1, 2018,
pre-tax restructuring charges were $3.1 million and pre-tax
restructuring related charges were $2.1 million. There were
no impairment items during the three months ended April 1,
2018.
- Acquisition, integration and divestiture related
items - For the three months ended March 31, 2019,
these charges primarily related to contingent consideration
liabilities and our acquisition of NeoTract, somewhat offset by the
gain on sale of a divested business. For the three months ended
April 1, 2018, these charges primarily related to contingent
consideration liabilities and our acquisition of NeoTract.
There were no divestiture related activities for the three months
ended April 1, 2018.
- Other items - For the three months ended March
31, 2019, other items included expenses associated with a franchise
tax audit, relabeling costs, and costs associated with European
Medical Device Regulation initiatives. For the three months
ended April 1, 2018, other items included the reversal of
previously recognized income due to distributor acquisitions
related to Vascular Solutions, and relabeling costs.
ABOUT TELEFLEX INCORPORATED
Teleflex is a global provider of medical technologies designed
to improve the health and quality of people’s lives. We apply
purpose driven innovation - a relentless pursuit of identifying
unmet clinical needs - to benefit patients and healthcare
providers. Our portfolio is diverse, with solutions in the fields
of vascular access, interventional cardiology and radiology,
anesthesia, emergency medicine, surgical, urology and respiratory
care. Teleflex employees worldwide are united in the understanding
that what we do every day makes a difference. For more information,
please visit teleflex.com.
Teleflex is the home of Arrow®, Deknatel®, Hudson RCI®, LMA®,
Pilling®, Rusch®, UroLift®, and Weck® - trusted brands united by a
common sense of purpose.
CAUTION CONCERNING FORWARD-LOOKING
INFORMATION
This press release contains forward-looking statements,
including, but not limited to, our expectation that our continued
investment in driving the adoption of our high-growth, high-margin
products puts us on track to deliver on both our near and long-term
financial objectives; forecasted 2019 GAAP and constant currency
revenue growth and GAAP and adjusted diluted earnings per share;
and our estimates regarding the projected impact of foreign
currency exchange rate fluctuations on our 2019 financial
results. Actual results could differ materially from those in
the forward-looking statements due to, among other things, changes
in business relationships with and purchases by or from major
customers or suppliers; delays or cancellations in shipments;
demand for and market acceptance of new and existing products; our
inability to integrate acquired businesses into our operations,
realize planned synergies and operate such businesses profitably in
accordance with our expectations; the inability of acquired
businesses to generate revenues in accordance with our
expectations; our inability to effectively execute our
restructuring programs; our inability to realize anticipated
savings from restructuring plans and programs; the impact of
healthcare reform legislation and proposals to amend or replace the
legislation; changes in Medicare, Medicaid and third party coverage
and reimbursements; the impact of tax legislation and related
regulations; competitive market conditions and resulting effects on
revenues and pricing; increases in raw material costs that cannot
be recovered in product pricing; global economic factors, including
currency exchange rates, interest rates, trade disputes, sovereign
debt issues and the impact of the United Kingdom's pending
departure from the European Union; difficulties in entering new
markets; general economic conditions; and other factors described
or incorporated in our filings with the Securities and Exchange
Commission, including our most recently filed Annual Report on Form
10-K. We expressly disclaim any obligation to update
forward-looking statements, except as otherwise specifically stated
by us or as required by law or regulation.
| |
| TELEFLEX INCORPORATED |
| CONDENSED CONSOLIDATED STATEMENTS OF
INCOME |
| (Unaudited) |
| |
| |
Three Months Ended |
| |
March 31, 2019 |
|
April 1, 2018 |
| |
(Dollars and shares in thousands,except per
share) |
| Net revenues |
$ |
613,584 |
|
|
$ |
587,230 |
|
| Cost of goods sold |
268,842 |
|
|
255,960 |
|
| Gross
profit |
344,742 |
|
|
331,270 |
|
| Selling, general and
administrative expenses |
227,693 |
|
|
215,337 |
|
| Research and
development expenses |
27,150 |
|
|
26,027 |
|
| Restructuring and
impairment charges |
17,395 |
|
|
3,063 |
|
| Gain on sale of
assets |
(2,739 |
) |
|
— |
|
| Income
from continuing operations before interest and taxes |
75,243 |
|
|
86,843 |
|
| Interest expense |
22,692 |
|
|
25,943 |
|
| Interest income |
(339 |
) |
|
(273 |
) |
| Income
from continuing operations before taxes |
52,890 |
|
|
61,173 |
|
| Taxes on income from
continuing operations |
10,972 |
|
|
6,242 |
|
| Income
from continuing operations |
41,918 |
|
|
54,931 |
|
| Operating income (loss)
from discontinued operations |
(1,343 |
) |
|
1,235 |
|
| Benefit on income
(loss) from discontinued operations |
(322 |
) |
|
(18 |
) |
| Income
(loss) from discontinued operations |
(1,021 |
) |
|
1,253 |
|
| Net
income |
$ |
40,897 |
|
|
$ |
56,184 |
|
| Earnings per
share: |
|
|
|
|
Basic: |
|
|
|
| Income
from continuing operations |
$ |
0.91 |
|
|
$ |
1.21 |
|
| Income
(loss) from discontinued operations |
(0.02 |
) |
|
0.03 |
|
| Net income |
$ |
0.89 |
|
|
$ |
1.24 |
|
|
Diluted: |
|
|
|
| Income
from continuing operations |
$ |
0.89 |
|
|
$ |
1.18 |
|
| Income
(loss) from discontinued operations |
(0.02 |
) |
|
0.02 |
|
| Net income |
$ |
0.87 |
|
|
$ |
1.20 |
|
| Dividends per
share |
$ |
0.34 |
|
|
$ |
0.34 |
|
| Weighted average common
shares outstanding |
|
|
|
|
Basic |
46,050 |
|
|
45,329 |
|
|
Diluted |
46,942 |
|
|
46,695 |
|
|
|
|
|
|
|
|
| |
| TELEFLEX INCORPORATED |
| CONDENSED CONSOLIDATED BALANCE
SHEETS |
| (Unaudited) |
| |
| |
March 31, 2019 |
|
December 31, 2018 |
| |
(Dollars in thousands) |
|
ASSETS |
|
|
|
| Current assets |
|
|
|
| Cash and cash
equivalents |
$ |
271,212 |
|
|
$ |
357,161 |
|
| Accounts
receivable, net of allowances of $9,225 and $9,348,
respectively |
375,756 |
|
|
366,286 |
|
|
Inventories, net |
445,566 |
|
|
427,778 |
|
| Prepaid
expenses and other current assets |
79,595 |
|
|
72,481 |
|
| Prepaid
taxes |
10,485 |
|
|
12,463 |
|
| Total
current assets |
1,182,614 |
|
|
1,236,169 |
|
| Property, plant and
equipment, net |
409,963 |
|
|
432,766 |
|
| Operating lease
assets |
112,278 |
|
|
— |
|
| Goodwill |
2,247,768 |
|
|
2,246,579 |
|
| Intangible assets,
net |
2,274,488 |
|
|
2,325,052 |
|
| Deferred tax
assets |
2,500 |
|
|
2,446 |
|
| Other assets |
38,458 |
|
|
34,979 |
|
| Total
assets |
$ |
6,268,069 |
|
|
$ |
6,277,991 |
|
| LIABILITIES AND
EQUITY |
|
|
|
| Current
liabilities |
|
|
|
| Current
borrowings |
$ |
86,625 |
|
|
$ |
86,625 |
|
| Accounts
payable |
103,532 |
|
|
106,709 |
|
| Accrued
expenses |
93,649 |
|
|
97,551 |
|
| Current
portion of contingent consideration |
99,686 |
|
|
136,877 |
|
| Payroll
and benefit-related liabilities |
76,261 |
|
|
104,670 |
|
| Accrued
interest |
23,245 |
|
|
6,031 |
|
| Income
taxes payable |
6,641 |
|
|
5,943 |
|
| Other
current liabilities |
31,277 |
|
|
38,050 |
|
| Total
current liabilities |
520,916 |
|
|
582,456 |
|
| Long-term
borrowings |
2,072,939 |
|
|
2,072,200 |
|
| Deferred tax
liabilities |
610,606 |
|
|
608,221 |
|
| Pension and
postretirement benefit liabilities |
89,287 |
|
|
92,914 |
|
| Noncurrent liability
for uncertain tax positions |
10,833 |
|
|
10,718 |
|
| Noncurrent contingent
consideration |
80,676 |
|
|
167,370 |
|
| Noncurrent operating
lease liabilities |
100,708 |
|
|
— |
|
| Other liabilities |
212,226 |
|
|
204,134 |
|
| Total
liabilities |
3,698,191 |
|
|
3,738,013 |
|
| Commitments and
contingencies |
|
|
|
| Total shareholders'
equity |
2,569,878 |
|
|
2,539,978 |
|
| Total
liabilities and shareholders' equity |
$ |
6,268,069 |
|
|
$ |
6,277,991 |
|
|
|
|
|
|
|
|
|
|
| |
| TELEFLEX INCORPORATED |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
| (Unaudited) |
| |
| |
Three Months Ended |
| |
March 31, 2019 |
|
April 1, 2018 |
| |
(Dollars in thousands) |
| Cash flows from
operating activities of continuing operations: |
|
|
|
| Net income |
$ |
40,897 |
|
|
$ |
56,184 |
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
| (Income)
loss from discontinued operations |
1,021 |
|
|
(1,253 |
) |
|
Depreciation expense |
15,645 |
|
|
14,832 |
|
|
Amortization expense of intangible assets |
37,751 |
|
|
37,816 |
|
|
Amortization expense of deferred financing costs and debt
discount |
1,179 |
|
|
1,178 |
|
| Gain on
sale of assets |
(2,739 |
) |
|
— |
|
| Changes
in contingent consideration |
13,057 |
|
|
9,592 |
|
| Asset
impairment |
3,030 |
|
|
— |
|
|
Stock-based compensation |
5,781 |
|
|
4,787 |
|
| Deferred
income taxes, net |
2,603 |
|
|
(1,472 |
) |
| Payments
for contingent consideration |
(25,935 |
) |
|
— |
|
|
Other |
654 |
|
|
(1,272 |
) |
| Changes
in assets and liabilities, net of effects of acquisitions and
disposals: |
|
|
|
| Accounts
receivable |
(14,102 |
) |
|
(3,402 |
) |
|
Inventories |
(19,200 |
) |
|
32 |
|
| Prepaid
expenses and other assets |
(11,524 |
) |
|
(3,406 |
) |
| Accounts
payable, accrued expenses and other liabilities |
8,856 |
|
|
(27,185 |
) |
| Income
taxes receivable and payable, net |
3,192 |
|
|
417 |
|
|
Net cash provided by operating activities from continuing
operations |
60,166 |
|
|
86,848 |
|
| Cash flows from
investing activities of continuing operations: |
|
|
|
|
Expenditures for property, plant and equipment |
(23,494 |
) |
|
(15,747 |
) |
| Proceeds
from sale of assets |
991 |
|
|
— |
|
| Payments
for businesses and intangibles acquired, net of cash acquired |
(1,025 |
) |
|
(3,684 |
) |
| Net cash
used in investing activities from continuing operations |
(23,528 |
) |
|
(19,431 |
) |
| Cash flows from
financing activities of continuing operations: |
|
|
|
| Reduction
in borrowings |
— |
|
|
(18,500 |
) |
| Debt
extinguishment, issuance and amendment fees |
— |
|
|
(74 |
) |
| Net
proceeds from share based compensation plans and the related tax
impacts |
2,242 |
|
|
1,400 |
|
| Payments
for contingent consideration |
(110,953 |
) |
|
(91 |
) |
| Dividends
paid |
(15,650 |
) |
|
(15,447 |
) |
| Net cash
provided by (used in) financing activities from continuing
operations |
(124,361 |
) |
|
(32,712 |
) |
| Cash flows from
discontinued operations: |
|
|
|
| Net cash
used in operating activities |
3,610 |
|
|
(206 |
) |
| Net cash
used in discontinued operations |
3,610 |
|
|
(206 |
) |
| Effect of exchange rate
changes on cash and cash equivalents |
(1,836 |
) |
|
10,815 |
|
| Net (decrease) increase
in cash and cash equivalents |
(85,949 |
) |
|
45,314 |
|
| Cash and cash
equivalents at the beginning of the period |
357,161 |
|
|
333,558 |
|
| Cash and cash
equivalents at the end of the period |
$ |
271,212 |
|
|
$ |
378,872 |
|
| |
|
|
|
| Non cash financing
activities of continuing operations: |
|
|
|
| Acquisition of treasury
stock associated with settlement and exchange of convertible note
hedge and warrant agreements |
$ |
— |
|
|
$ |
17,872 |
|
| |
|
|
Contact: |
Jake
Elguicze Treasurer and Vice President of Investor
Relations 610-948-2836 |
Teleflex (NYSE:TFX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Teleflex (NYSE:TFX)
Historical Stock Chart
From Apr 2023 to Apr 2024
