EX-99.1 2 ex991to7-28x20168xk.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1
    
Jake Elguicze                         
Treasurer and Vice President of Investor Relations    
610-948-2836

FOR IMMEDIATE RELEASE      July 28, 2016

TELEFLEX REPORTS SECOND QUARTER 2016 RESULTS

Second Quarter Revenues of $473.6 million, Up 4.8% Versus Prior Year Period; Up 5.0% on Constant Currency Basis

Second Quarter GAAP Diluted EPS of $1.25, Up 34.4% Over the Prior Year Period

Second Quarter Adjusted Diluted EPS of $1.89, up 33.1%

Reaffirmed 2016 Guidance Ranges for As-Reported Revenue Growth of 3.0% to 4.0% and Constant Currency Revenue Growth of 5.0% to 6.0%

Raised 2016 Guidance Range for GAAP Diluted EPS from $5.32 to $5.37 to $5.34 to $5.41

Raised 2016 Guidance Range for Adjusted Diluted EPS from $7.10 to $7.25 to $7.20 to $7.32


Wayne, PA -- Teleflex Incorporated (NYSE: TFX) (the “Company”) today announced financial results for the second quarter ended June 26, 2016.

Second quarter 2016 net revenues were $473.6 million, an increase of 4.8% compared to the prior year period. Excluding the impact of foreign currency exchange rate fluctuations, second quarter 2016 net revenues increased 5.0% over the year ago period.

Second quarter 2016 GAAP diluted earnings per share from continuing operations increased 34.4% to $1.25, as compared to $0.93 in the prior year period. Second quarter 2016 adjusted diluted earnings per share from continuing operations increased 33.1% to $1.89, compared to $1.42 in the prior year period.

“As we anticipated, Teleflex's second quarter GAAP and constant currency revenue growth reflected improving trends on both a year-over-year and sequential basis, led by our key North American strategic business units,” said Benson Smith, Chairman and Chief Executive Officer. “The revenue growth performance in the quarter positions the Company to achieve our previously provided full year 2016 GAAP and constant currency revenue growth guidance ranges. In addition, we were particularly pleased with our strong earnings per share performance for the quarter, which was primarily due to our continued expansion of gross and operating margins."

Added Smith, "Based on this performance and our outlook for the remainder of the year, we are increasing our full year GAAP earnings per share guidance range from $5.32 to $5.37 to $5.34 to $5.41 and our adjusted diluted earnings per share guidance range from $7.10 to $7.25 to $7.20 to $7.32."




SECOND QUARTER NET REVENUE BY SEGMENT

The following table provides information regarding net revenues in each of the Company's reportable operating segments and all of its other operating segments for the three months ended June 26, 2016 and June 28, 2015 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 June 26, 2016 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 "Foreign Currency" column of the table.

 
Three Months Ended
 
% Increase/ (Decrease)
 
June 26, 2016
 
June 28, 2015
 
Constant Currency
 
Foreign Currency
 
Total Change
 
 
(Dollars in millions)
 
 
 
 
 
 
Vascular North America
$
88.2
 
$
81.2
 
8.8
%
 
(0.2)
%
 
8.6
%
Surgical North America
 
43.1
 
 
40.5
 
6.8
%
 
(0.3)
%
 
6.5
%
Anesthesia North America
 
49.2
 
 
45.6
 
8.2
%
 
(0.3)
%
 
7.9
%
EMEA
 
131.7
 
 
129.1
 
1.3
%
 
0.7
%
 
2.0
%
Asia
 
63.2
 
 
62.1
 
3.6
%
 
(1.7)
%
 
1.9
%
OEM
 
40.3
 
 
37.9
 
5.9
%
 
0.4
%
 
6.3
%
All Other
 
57.9
 
 
55.7
 
5.4
%
 
(1.4)
%
 
4.0
%
Total
$
473.6
 
$
452.1
 
5.0
%
 
(0.2)
%
 
4.8
%

Vascular North America second quarter 2016 net revenues were $88.2 million, an increase of 8.6% compared to the prior year period. Excluding the impact of foreign currency fluctuations, second quarter 2016 net revenues increased 8.8% compared to the prior year period. The increase in revenue was largely due to higher sales volumes of existing products, price increases and an increase in new product sales.

Surgical North America second quarter 2016 net revenues were $43.1 million, an increase of 6.5% compared to the prior year period. Excluding the impact of foreign currency fluctuations, second quarter 2016 net revenues increased 6.8% compared to the prior year period. The increase in revenue was largely due to an increase in new product sales, higher sales volumes of existing products and price increases.

Anesthesia North America second quarter 2016 net revenues were $49.2 million, an increase of 7.9% compared to the prior year period. Excluding the impact of foreign currency fluctuations, second quarter 2016 net revenues increased 8.2% compared to the prior year period. The increase in revenue was largely due to higher sales volumes of existing products and an increase in new product sales.

EMEA second quarter 2016 net revenues were $131.7 million, an increase of 2.0% compared to the prior year period. Excluding the impact of foreign currency fluctuations, second quarter 2016 net revenues increased 1.3% compared to the prior year period. The increase in revenue was largely due to higher sales volumes of existing products and an increase in new product sales, somewhat offset by a decline in the average selling prices of products.
    




Asia second quarter 2016 net revenues were $63.2 million, an increase of 1.9% compared to the prior year period. Excluding the impact of foreign currency fluctuations, second quarter 2016 net revenues increased 3.6% compared to the prior year period. The increase in revenue was largely due to higher sales volumes of existing products.

OEM and Development Services (“OEM”) second quarter 2016 net revenues were $40.3 million, an increase of 6.3% compared to the prior year period. Excluding the impact of foreign currency fluctuations, second quarter 2016 net revenues increased 5.9% compared to the prior year period. The increase in revenue was largely due to an increase in new product sales and higher sales volumes of existing products.

OTHER FINANCIAL HIGHLIGHTS AND KEY PERFORMANCE METRICS

Depreciation expense, amortization of intangible assets and deferred financing charges for the first six months of 2016 aggregated $64.6 million compared to $60.6 million for the prior year period.
    
Cash and cash equivalents at June 26, 2016 were $476.5 million compared to $338.4 million at December 31, 2015.

Net accounts receivable at June 26, 2016 were $273.5 million compared to $262.4 million at December 31, 2015.

Net inventories at June 26, 2016 were $338.5 million compared to $330.3 million at December 31, 2015.

2016 OUTLOOK

The Company reaffirmed its estimates that revenues for full year 2016 are expected to increase 3.0% to 4.0% over prior year on a GAAP basis, and 5.0% to 6.0% on a constant currency basis.

The Company increased its full year 2016 GAAP diluted earnings per share from continuing operations guidance from a range of $5.32 to $5.37 to a range of $5.34 to $5.41. This new range represents an increase of 8.8% to 10.2% over 2015. In addition, the Company increased its full year 2016 adjusted diluted earnings per share from continuing operations guidance from a range of $7.10 to $7.25 to a range of $7.20 to $7.32. This new range represents an increase of 13.7% to 15.6% over 2015, which reflects our expectation that foreign currencies will have an approximately neutral impact on adjusted earnings per share.

FORECASTED 2016 CONSTANT CURRENCY REVENUE GROWTH RECONCILIATION

 
Low
High
 
 
 
Forecasted 2016 GAAP revenue growth
3.0
%
4.0
%
 
 
 
Estimated impact of foreign currency fluctuations
2.0
%
2.0
%
 
 
 
Forecasted 2016 constant currency revenue growth
5.0
%
6.0
%

FORECASTED 2016 ADJUSTED EARNINGS PER SHARE RECONCILIATION





 
Low
High
 
 
 
Diluted earnings per share attributable to common shareholders

$5.34

 

$5.41

 
 
 
 
Restructuring, impairment charges and special items, net of tax

$0.83

 

$0.86

 
 
 
 
Intangible amortization expense, net of tax

$0.95

 

$0.97

 
 
 
 
Amortization of debt discount on convertible notes, net of tax

$0.08

 

$0.08

 
 
 
 
Adjusted diluted earnings per share

$7.20

 

$7.32

 

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 2, 2016 at 11:59pm (ET), by calling 855-859-2056 (U.S./Canada) or 404-537-3406 (International), Passcode: 47983139.

ADDITIONAL NOTES

References in this release to the impact of foreign currency 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 we have sold for 36 months or less, and "existing products" refers to products we have sold 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

This press release includes certain non-GAAP financial measures, which include:

Adjusted diluted earnings per share. This measure excludes, depending on the period presented (i) restructuring and other impairment charges; (ii) certain losses and other charges, including charges related to facility consolidations and acquisitions and integration costs, net of the gain on sale of an asset and reversal of charges related to contingent consideration and a litigation verdict against the Company with respect to a non-operating joint venture; (iii) amortization of the debt discount on the Company’s convertible notes; (iv) intangible amortization expense; (v) loss on extinguishment of debt; and (vi) tax benefits resulting primarily from the resolution of audits of prior year returns and tax law changes affecting the Company's deferred tax liability. In addition, the calculation of diluted shares within adjusted earnings per share gives effect to the anti-dilutive impact of the Company’s convertible note hedge agreements, which reduce the potential




economic dilution that otherwise would occur upon conversion of the Company’s senior subordinated convertible notes (under GAAP, the anti-dilutive impact of the convertible note hedge agreements is not reflected in diluted shares).

Constant currency revenue growth. This measure excludes the impact of translating the results of international subsidiaries at different currency exchange rates from period to period.

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 believes that the calculation of non-GAAP diluted shares is useful to investors because it provides insight into the offsetting economic effect of the convertible note hedge against conversions of the convertible notes. 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 generally accepted accounting principles (“GAAP”) and should not be relied upon as a substitute for GAAP financial measures. Tables reconciling historical adjusted diluted earnings per share to historical GAAP earnings per share are set forth below. Tables reconciling constant currency net revenues to GAAP net revenues and reconciling forecasted non-GAAP measures to the most directly comparable forecasted GAAP measures are set forth above.



























RECONCILIATION OF CONSOLIDATED STATEMENT OF INCOME ITEMS




Dollars in millions, except per share amounts
Quarter Ended – June 26, 2016
 
 
 
 
 
 
 
 
 
Cost of goods sold
Selling, general and administrative expenses
Research and development expenses
Restructuring and other impairment charges
(Gain) loss on sale of business and assets
Interest expense, net
Loss on extinguishment of debt, net
Income taxes
Net income (loss) attributable to common shareholders from continuing operations
Diluted earnings per share available to common shareholders
Shares used in calculation of GAAP and adjusted earnings per share
GAAP Basis

$217.2


$143.0


$15.5


($0.1
)

($0.4
)

$11.8


$19.3


$8.0


$59.1


$1.25

47,246

Adjustments
 
 
 
 
 
 
 
 
 
 
 
Restructuring and other impairment charges
—

—

—

(0.1
)
—

—

—

0.1

(0.2
)
—

—

Losses and other charges, net (A)
4.0

1.2

0.0

—

(0.4
)
—

—

1.9

2.9


$0.07

—

Amortization of debt discount on convertible notes
—

—

—

—

—

1.4

—

0.5

0.9


$0.02

—

Intangible amortization expense
—

15.9

0.1

—

—

—

—

4.3

11.8


$0.25

—

Loss on extinguishment of debt, net
—

—

—

—

—

—

19.3

7.0

12.2


$0.26

—

Tax adjustment (B)
—

—

—

—

—

—

—

0.5

(0.5
)

($0.01
)
—

Shares due to Teleflex under note hedge (C)
—

—

—

—

—

—

—

—

—


$0.07

(1,675
)
Adjusted basis

$213.2


$125.9


$15.3

—

—


$10.3

—


$22.4


$86.2


$1.89

45,571

Quarter Ended – June 28, 2015
 
 
 
 
 
 
 
 
 
 
Cost of goods sold
Selling, general and administrative expenses
Research and development expenses
Restructuring and other impairment charges
(Gain) loss on sale of business and assets
Interest expense, net
Loss on extinguishment of debt, net
Income taxes
Net income (loss) attributable to common shareholders from continuing operations
Diluted earnings per share available to common shareholders
Shares used in calculation of GAAP and adjusted earnings per share
GAAP Basis

$218.8


$142.2


$13.4


$0.6

—


$16.1


$10.5


$5.3


$44.8


$0.93

48,081

Adjustments
 
 
 
 
 
 
 
 
 
 
 
Restructuring and other impairment charges
—

—

—

0.6

—

—

—

0.2

0.4


$0.01

—

Losses and other charges, net (A)
3.1

(3.4
)
—

—

—

—

—

0.6

(0.9
)

($0.03
)
—

Amortization of debt discount on convertible notes
—

—

—

—

—

3.3

—

1.2

2.1


$0.04

—

Intangible amortization expense
—

15.1

—

—

—

—

—

4.1

10.9


$0.23

—

Loss on extinguishment of debt, net
—

—

—

—

—

—

10.5

3.8

6.6


$0.14

—

Tax adjustment (B)
—

—

—

—

—

—

—

0.3

(0.3
)

($0.01
)
—

Shares due to Teleflex under note hedge (C)
—

—

—

—

—

—

—

—

—


$0.10

(3,366
)
Adjusted basis

$215.7


$130.6


$13.4

—

—


$12.8

—


$15.5


$63.5


$1.42

44,715







(A) In 2016, losses and other charges, net related primarily to facility consolidations. In 2015, adjustments to losses and other charges, net resulted in a small decrease in adjusted net income and diluted earnings per share because the GAAP financial statements included reversals of charges related to contingent consideration liabilities and a litigation verdict against the Company with respect to a non-operating joint venture; the sum of these reversals exceeded the sum of acquisition and integration costs, and charges related to facility consolidations.

(B) The tax adjustment represents a net benefit resulting primarily from (1) the resolution of audits of prior year returns and (2) tax law changes affecting our deferred tax liability.

(C) Adjusted diluted shares are calculated by giving effect to the anti-dilutive impact of the Company’s convertible note hedge agreements, which reduce the potential economic dilution that otherwise would occur upon conversion of the Company's convertible notes. Under GAAP, the anti-dilutive impact of the convertible note hedge agreements is not reflected in diluted shares.


































RECONCILIATION OF CONSOLIDATED STATEMENT OF INCOME ITEMS




Dollars in millions, except per share amounts
Year-to-date Ended – June 26, 2016
 
 
 
 
 
 
 
 
 
Cost of goods sold
Selling, general and administrative expenses
Research and development expenses
Restructuring and other impairment charges
(Gain) loss on sale of business and assets
Interest expense, net
Loss on extinguishment of debt, net
Income taxes
Net income (loss) attributable to common shareholders from continuing operations
Diluted earnings per share available to common shareholders
Shares used in calculation of GAAP and adjusted earnings per share
GAAP Basis

$416.9


$279.3


$27.8


$9.8


($1.4
)

$25.5


$19.3


$10.6


$110.1


$2.29

48,014

Adjustments
 
 
 
 
 
 
 
 
 
 
 
Restructuring and other impairment charges
—

—

—

9.8

—

—

—

2.4

7.4


$0.15

—

Losses and other charges, net (A)
6.6

1.8

0.0

—

(1.4
)
—

—

2.8

4.4


$0.08

—

Amortization of debt discount on convertible notes
—

—

—

—

—

4.9

—

1.8

3.1


$0.06

—

Intangible amortization expense
—

31.2

0.2

—

—

—

—

8.4

23.0


$0.48

—

Loss on extinguishment of debt, net
—

—

—

—

—

—

19.3

7.0

12.2


$0.25

—

Tax adjustment (B)
—

—

—

—

—

—

—

5.5

(5.5
)

($0.11
)
—

Shares due to Teleflex under note hedge (C)
—

—

—

—

—

—

—

—

—


$0.19

(2,648
)
Adjusted basis

$410.3


$246.3


$27.6

—

—


$20.6

—


$38.5


$154.7


$3.41

45,366

Year-to-date Ended – June 28, 2015
 
 
 
 
 
 
 
 
 
 
Cost of goods sold
Selling, general and administrative expenses
Research and development expenses
Restructuring and other impairment charges
(Gain) loss on sale of business and assets
Interest expense, net
Loss on extinguishment of debt, net
Income taxes
Net income (loss) attributable to common shareholders from continuing operations
Diluted earnings per share available to common shareholders
Shares used in calculation of GAAP and adjusted earnings per share
GAAP Basis

$425.6


$281.9


$26.3


$5.0

—


$33.1


$10.5


$14.6


$83.8


$1.76

47,688

Adjustments
 
 
 
 
 
 
 
 
 
 
 
Restructuring and other impairment charges
—

—

—

5.0

—

—

—

1.8

3.2


$0.07

—

Losses and other charges, net (A)
5.2

(2.5
)
—

—

—

—

—

1.4

1.3


$0.02

—

Amortization of debt discount on convertible notes
—

—

—

—

—

6.5

—

2.4

4.1


$0.09

—

Intangible amortization expense
—

29.8

—

—

—

—

—

7.9

21.9


$0.46

—

Loss on extinguishment of debt, net
—

—

—

—

—

—

10.5

3.8

6.6


$0.14

—

Tax adjustment (B)
—

—

—

—

—

—

—

0.2

(0.2
)

$0.00

—

Shares due to Teleflex under note hedge (C)
—

—

—

—

—

—

—

—

—


$0.19

(3,211
)
Adjusted basis

$420.4


$254.6


$26.3

—

—


$26.6

—


$32.1


$120.8


$2.72

44,477





(A) In 2016, losses and other charges, net related primarily to facility consolidations. In 2015, losses and other charges, net related primarily to acquisition and integration costs, and charges related to facility consolidations, somewhat offset by reversals of charges related to contingent consideration liabilities and a litigation verdict against the Company with respect to a non-operating joint venture.

(B) The tax adjustment represents a net benefit resulting primarily from (1) the resolution of audits of prior year returns and (2) tax law changes affecting our deferred tax liability.

(C) Adjusted diluted shares are calculated by giving effect to the anti-dilutive impact of the Company’s convertible note hedge agreements, which reduce the potential economic dilution that otherwise would occur upon conversion of the Company's convertible notes. Under GAAP, the anti-dilutive impact of the convertible note hedge agreements is not reflected in diluted shares.


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 and interventional access, surgical, anesthesia, cardiac care, urology, emergency medicine 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® 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, forecasted 2016 GAAP and constant currency revenue growth and GAAP and adjusted diluted 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, including as a result of difficulties with various employees, labor representatives or regulators; the loss of skilled employees in connection with such initiatives; 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, including fluctuations in foreign currency exchange rates and the impact of the United Kingdom's vote to leave the European Union; 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, 2015.








TELEFLEX INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 
Three Months Ended
 
Six Months Ended
 
June 26, 2016
 
June 28, 2015
 
June 26, 2016
 
June 28, 2015
 
(Dollars and shares in thousands, except per share)
Net revenues
$
473,553

 
$
452,045

 
$
898,446

 
$
881,475

Cost of goods sold
217,154

 
218,808

 
416,900

 
425,601

Gross profit
256,399

 
233,237

 
481,546

 
455,874

Selling, general and administrative expenses
142,983

 
142,228

 
279,331

 
281,925

Research and development expenses
15,472

 
13,443

 
27,825

 
26,327

Restructuring charges
(119
)
 
580

 
9,849

 
5,028

Gain on sale of assets
(378
)
 
—

 
(1,397
)
 
—

Income from continuing operations before interest and taxes
98,441

 
76,986

 
165,938

 
142,594

Interest expense
11,907

 
16,207

 
25,691

 
33,379

Interest income
(129
)
 
(154
)
 
(209
)
 
(323
)
Loss on extinguishment of debt
19,261

 
10,454

 
19,261

 
10,454

Income from continuing operations before taxes
67,402

 
50,479

 
121,195

 
99,084

Taxes on income from continuing operations
8,007

 
5,280

 
10,620

 
14,612

Income from continuing operations
59,395

 
45,199

 
110,575

 
84,472

Operating income (loss) from discontinued operations
6

 
(145
)
 
(376
)
 
(644
)
(Benefit) taxes on loss from discontinued operations
(187
)
 
45

 
(257
)
 
249

Income (loss) from discontinued operations
193

 
(190
)
 
(119
)
 
(893
)
Net income
59,588

 
45,009

 
110,456

 
83,579

Less: Income from continuing operations attributable to
noncontrolling interest
285

 
446

 
464

 
664

Net income attributable to common shareholders
$
59,303

 
$
44,563

 
$
109,992

 
$
82,915

Earnings per share available to common shareholders:
 
 
 
 
 
 
 
Basic:
 
 
 
 
 
 
 
Income from continuing operations
$
1.36

 
$
1.08

 
$
2.58

 
$
2.02

Income (loss) from discontinued operations
—

 
(0.01
)
 
—

 
(0.02
)
Net income
$
1.36

 
$
1.07

 
$
2.58

 
$
2.00

Diluted:
 
 
 
 
 
 
 
Income from continuing operations
$
1.25

 
$
0.93

 
$
2.29

 
$
1.76

Income (loss) from discontinued operations
0.01

 
—

 
—

 
(0.02
)
Net income
$
1.26

 
$
0.93

 
$
2.29

 
$
1.74

Dividends per share
$
0.34

 
$
0.34

 
$
0.68

 
$
0.68

Weighted average common shares outstanding
 
 
 
 
 
 
 
Basic
43,549

 
41,560

 
42,598

 
41,514

Diluted
47,246

 
48,081

 
48,014

 
47,688

Amounts attributable to common shareholders:
 
 
 
 
 
 
 
Income from continuing operations, net of tax
$
59,110

 
$
44,753

 
$
110,111

 
$
83,808

Income (loss) from discontinued operations, net of tax
193

 
(190
)
 
(119
)
 
(893
)
Net income
$
59,303

 
$
44,563

 
$
109,992

 
$
82,915





TELEFLEX INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
 
June 26, 2016
 
December 31, 2015
 
(Dollars in thousands)
ASSETS
 
 
 
Current assets
 
 
 
Cash and cash equivalents
$
476,490

 
$
338,366

Accounts receivable, net
273,530

 
262,416

Inventories, net
338,465

 
330,275

Prepaid expenses and other current assets
35,841

 
34,915

Prepaid taxes
30,369

 
30,895

Assets held for sale
7,026

 
6,972

Total current assets
1,161,721

 
1,003,839

Property, plant and equipment, net
314,665

 
316,123

Goodwill
1,301,348

 
1,295,852

Intangible assets, net
1,175,098

 
1,199,975

Investments in affiliates
244

 
152

Deferred tax assets
1,985

 
2,341

Other assets
45,146

 
53,492

Total assets
$
4,000,207

 
$
3,871,774

LIABILITIES AND EQUITY
 
 
 
Current liabilities
 
 
 
Current borrowings
$
173,952

 
$
417,350

Accounts payable
72,787

 
66,305

Accrued expenses
63,396

 
64,017

Current portion of contingent consideration
7,453

 
7,291

Payroll and benefit-related liabilities
71,059

 
84,658

Accrued interest
5,688

 
7,480

Income taxes payable
12,957

 
8,059

Other current liabilities
16,512

 
8,960

Total current liabilities
423,804

 
664,120

Long-term borrowings
907,930

 
641,850

Deferred tax liabilities
317,327

 
315,983

Pension and postretirement benefit liabilities
143,992

 
149,441

Noncurrent liability for uncertain tax positions
26,415

 
40,400

Other liabilities
59,171

 
48,887

Total liabilities
1,878,639

 
1,860,681

Commitments and contingencies

 

Total common shareholders' equity
2,119,350

 
2,009,272

Noncontrolling interest
2,218

 
1,821

Total equity
2,121,568

 
2,011,093

Total liabilities and equity
$
4,000,207

 
$
3,871,774





TELEFLEX INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
Six Months Ended
 
June 26, 2016
 
June 28, 2015
 
(Dollars in thousands)
Cash flows from operating activities of continuing operations:
 
 
 
Net income
$
110,456

 
$
83,579

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Loss from discontinued operations
119

 
893

Depreciation expense
26,609

 
22,385

Amortization expense of intangible assets
31,397

 
29,826

Amortization expense of deferred financing costs and debt discount
6,554

 
8,421

Loss on extinguishment of debt
19,261

 
10,454

Gain on sale of assets
(1,397
)
 
—

Changes in contingent consideration
1,242

 
(2,293
)
Stock-based compensation
7,949

 
7,126

Deferred income taxes, net
(1,292
)
 
625

Other
(1,970
)
 
(6,301
)
Changes in operating assets and liabilities, net of effects of acquisitions and disposals:
 
 
 
Accounts receivable
(10,237
)
 
(17,984
)
Inventories
(3,284
)
 
(16,895
)
Prepaid expenses and other current assets
238

 
921

Accounts payable and accrued expenses
(3,500
)
 
(2,966
)
Income taxes receivable and payable, net
(657
)
 
(8,203
)
   Net cash provided by operating activities from continuing operations
181,488

 
109,588

Cash flows from investing activities of continuing operations:
 
 
 
Expenditures for property, plant and equipment
(19,535
)
 
(31,321
)
Proceeds from sale of assets
3,985

 
—

Payments for businesses and intangibles acquired, net of cash acquired
(3,117
)
 
(37,559
)
Investment in affiliates
—

 
—

Net cash used in investing activities from continuing operations
(18,667
)
 
(68,880
)
Cash flows from financing activities of continuing operations:
 
 
 
Proceeds from new borrowings
665,000

 
288,100

Reduction in borrowings
(656,479
)
 
(250,981
)
Debt extinguishment, issuance and amendment fees
(8,182
)
 
(8,746
)
Net proceeds from share based compensation plans and the related tax impacts
6,593

 
4,843

Payments to noncontrolling interest shareholders
—

 
(832
)
Payments for contingent consideration
(133
)
 
(3,989
)
Dividends paid
(28,998
)
 
(28,234
)
Net cash (used in) provided by financing activities from continuing operations
(22,199
)
 
161

Cash flows from discontinued operations:
 
 
 
Net cash used in operating activities
(1,183
)
 
(1,363
)
Net cash used in discontinued operations
(1,183
)
 
(1,363
)
Effect of exchange rate changes on cash and cash equivalents
(1,315
)
 
(17,732
)
Net increase in cash and cash equivalents
138,124

 
21,774

Cash and cash equivalents at the beginning of the period
338,366

 
303,236

Cash and cash equivalents at the end of the period
$
476,490

 
$
325,010

 
 
 
 
Non cash financing activities of continuing operations:
 
 
 
Settlement and exchange of convertible notes with common or treasury stock  
$
35,197

 
$
38

Acquisition of treasury stock associated with settlement and exchange of convertible note hedge and warrant agreements                                                    
$
85,895

 
$
71