EX-99.1 2 q32015-earningspressreleas.htm EXHIBIT 99.1 Exhibit

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

FOR IMMEDIATE RELEASE      October 29, 2015

TELEFLEX REPORTS THIRD QUARTER 2015 RESULTS

Third Quarter Revenues of $443.7 million, Down 2.9% Versus Prior Year Period; Up 4.2% on Constant Currency Basis
 
Third Quarter GAAP Diluted EPS of $1.27, Up 7.6% Over the Prior Year Period

Third Quarter Adjusted Diluted EPS of $1.60, up 1.9%, Including the Unfavorable Impact From Foreign Currency of Approximately 17%

2015 Guidance Range for Constant Currency Revenue Growth Narrowed From a Range of 4.0% to 6.0% to a Range of 4.7% to 5.5%

2015 Guidance Range for Adjusted Diluted EPS Narrowed From a Range of $6.10 to $6.35 to a Range of $6.20 to $6.30

  
Wayne, PA -- Teleflex Incorporated (NYSE: TFX) (the “Company”) today announced financial results for the third quarter ended September 27, 2015.

Third quarter net revenues were $443.7 million, a decrease of 2.9% over the third quarter 2014. Excluding the impact of foreign currency fluctuations, third quarter net revenues increased 4.2% over the year ago quarter.

Third quarter GAAP diluted earnings per share from continuing operations increased 7.6% to $1.27, as compared to $1.18 in the prior year period. Third quarter adjusted diluted earnings per share from continuing operations increased 1.9% to $1.60, compared to $1.57 in the prior year period.

“During the third quarter of 2015, Teleflex's North American business units continued their strong performance," said Benson Smith, Chairman, President and Chief Executive Officer. "The investments we have been making in our key North American strategic business units are yielding returns, as our revenue growth was broad-based, and included volume growth of over 3%, increased revenue from new product introductions of approximately 1%, and the contribution from improved pricing and recently completed acquisitions, which together total approximately 1.5%. In addition to North American strength, constant currency revenue growth in Asia returned to double-digit levels. However, our top-line performance this quarter was adversely affected by a year-over-year revenue decline in Latin America due to macroeconomic factors impacting the region."

Added Smith, "In addition, despite softness in Latin America and significant foreign currency headwinds, the Company continued to grow adjusted earnings per share thanks to operational initiatives and a reduction in our tax rate. Looking forward, we anticipate a strong close to the year from the perspective of constant currency revenue growth and adjusted earnings per share, as our facility footprint restructuring remains on track."


THIRD QUARTER NET REVENUE BY SEGMENT AND GEOGRAPHY

Vascular North America third quarter net revenues were $82.6 million, an increase of 7.8% compared to the third quarter 2014. Excluding the impact of foreign currency fluctuations, third quarter net revenues


increased 8.6% compared to the year ago quarter. The increase in constant currency revenue was largely due to higher sales volume of existing products.

Surgical North America third quarter net revenues were $39.6 million, an increase of 9.6% compared to the third quarter 2014. Excluding the impact of foreign currency fluctuations, third quarter net revenues increased 11.1% compared to the year ago quarter. The increase in constant currency revenue was largely due to product sales resulting from acquisitions, an increase in new product sales, price increases and higher sales volume of existing products.

Anesthesia North America third quarter net revenues were $47.6 million, an increase of 0.9% compared to the third quarter 2014. Excluding the impact of foreign currency fluctuations, third quarter net revenues increased 1.6% compared to the year ago quarter. The increase in constant currency revenue was largely due to new product sales.

EMEA third quarter net revenues were $120.9 million, a decrease of 14.4% compared to the third quarter 2014. Excluding the impact of foreign currency fluctuations, third quarter net revenues increased 1.1% compared to the year ago quarter. The increase in constant currency revenue was largely due to new product sales.
    
Asia third quarter net revenues were $61.9 million, a decrease of 0.2% compared to the third quarter 2014. Excluding the impact of foreign currency fluctuations, third quarter net revenues increased 11.3% compared to the year ago quarter. The increase in constant currency revenue was largely due to price increases, product sales resulting from acquisitions and higher sales volume of existing products.

OEM and Development Services (“OEM”) third quarter net revenues were $39.0 million, a decrease of 0.6% compared to the third quarter 2014. Excluding the impact of foreign currency fluctuations, third quarter net revenues increased 2.5% compared to the year ago quarter. The increase in constant currency revenue was largely due to an increase in new product sales.


 
Three Months Ended
 
% Increase/ (Decrease)
 
September 27, 2015
 
September 28, 2014
 
Constant Currency
 
Foreign Currency
 
Total Change
 
 
(Dollars in millions)
 
 
 
 
 
 
Vascular North America
$
82.6
 
$
76.7
 
8.6
%
 
(0.8
%)
 
7.8
%
Surgical North America
 
39.6
 
 
36.1
 
11.1
%
 
(1.5
%)
 
9.6
%
Anesthesia North America
 
47.6
 
 
47.2
 
1.6
%
 
(0.7
%)
 
0.9
%
EMEA
 
120.9
 
 
141.2
 
1.1
%
 
(15.5
%)
 
(14.4
%)
Asia
 
61.9
 
 
62.0
 
11.3
%
 
(11.5
%)
 
(0.2
%)
OEM
 
39.0
 
 
39.2
 
2.5
%
 
(3.1
%)
 
(0.6
%)
All Other
 
52.1
 
 
54.8
 
(2.7
%)
 
(2.3
%)
 
(5.0
%)
Total
$
443.7
 
$
457.2
 
4.2
%
 
(7.1
%)
 
(2.9
%)

OTHER FINANCIAL HIGHLIGHTS AND KEY PERFORMANCE METRICS

Depreciation expense, amortization of intangible assets and deferred financing costs for the first nine months of 2015 aggregated $92.0 million compared to $96.3 million for the prior year period.
    
Cash and cash equivalents at September 27, 2015 were $276.5 million compared to $303.2 million at December 31, 2014.

Net accounts receivable at September 27, 2015 were $273.0 million compared to $273.7 million at December 31, 2014.



Net inventories at September 27, 2015 were $345.9 million compared to $335.6 million at December 31, 2014.

Net debt obligations at September 27, 2015 were $812.6 million compared to $801.4 million at December 31, 2014.

2015 OUTLOOK

The Company narrowed its full year 2015 constant currency revenue growth guidance from a range of 4.0% to 6.0% to a range of 4.7% to 5.5%. On a GAAP basis, revenues are expected to decrease 1.5% to 2.3% compared to the prior year due to the unfavorable impact of foreign currency fluctuations. Previously, the Company estimated that GAAP revenue would range from flat to a 2.0% decrease compared to the prior year.

In addition, the Company narrowed its full year 2015 adjusted diluted earnings per share guidance from a range of $6.10 to $6.35 to a range of $6.20 to $6.30. Consistent with management's previous expectations, foreign currency fluctuations are anticipated to negatively impact adjusted earnings per share in 2015 by approximately 15%. The Company has updated its full year 2015 GAAP diluted earnings per share from continuing operations range from $4.23 to $4.38 to a range of $4.53 to $4.63, reflecting an expected reduction in 2015 forecasted restructuring, impairment charges and special items, net of tax.



FORECASTED 2015 CONSTANT CURRENCY REVENUE GROWTH RECONCILIATION

 
Low
High
 
 
 
Forecasted 2015 GAAP revenue growth
(2.3
%)
(1.5
%)
 
 
 
Estimated impact of foreign currency fluctuations
7.0
%
7.0
%
 
 
 
Forecasted 2015 constant currency revenue growth
4.7
%
5.5
%



FORECASTED 2015 ADJUSTED EARNINGS PER SHARE RECONCILIATION

 
Low
High
 
 
 
Diluted earnings per share attributable to common shareholders

$4.53


$4.63

 
 
 
Restructuring, impairment charges and special items, net of tax

$0.60


$0.60

 
 
 
Intangible amortization expense, net of tax

$0.90


$0.90

 
 
 
Amortization of debt discount on convertible notes, net of tax

$0.17


$0.17

 
 
 
Adjusted diluted earnings per share

$6.20


$6.30


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 November 3, 2015 at 11:59pm (ET), by calling 888-286-8010 (U.S./Canada) or 617-801-6888 (International), Passcode: 53575576.

ADDITIONAL NOTES

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

References in this release to the unfavorable 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 impairment charges; (ii) certain losses and other charges, including acquisition and integration costs, charges related to facility consolidations, net of specified reversals, including a reversal of liabilities related to certain contingent consideration arrangements and a reversal related to 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 from the resolution of, or expiration of the statute of limitations with respect to, prior years’ tax matters. 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 – September 27, 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
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

$215.5


$138.8


$12.6


$0.7


($0.4
)

$14.2


$0.8


$61.5


$1.27

48,532

Adjustments
 
 
 
 
 
 
 
 
 
 
Restructuring and other impairment charges
—

—

—

0.7

—

—

0.3

0.4


$0.01

—

Losses and other charges (A)
2.3

(0.5)

—

—

(0.4)

—

0.8

0.6


$0.01

—

Amortization of debt discount on convertible notes
—

—

—

—

—

3.3

1.2

2.1


$0.04

—

Intangible amortization expense
—

15.5

—

—

—

—

4.1

11.4


$0.23

—

Tax adjustment (B)
—

—

—

—

—

—

3.9

(3.9)


($0.08
)
—

Shares due to Teleflex under note hedge (C)
—

—

—

—

—

—

—

—


$0.11

(3,536)

Adjusted basis

$213.2


$123.9


$12.6

—

—


$10.8


$11.1


$72.1


$1.60

44,996

Quarter Ended – September 28, 2014
 
 
 
 
 
 
 
 
 
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
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

$221.0


$138.3


$14.9


$1.1

—


$17.0


$9.7


$55.1


$1.18

46,628

Adjustments
 
 
 
 
 
 
 
 
 
 
Restructuring and other impairment charges
—

—

—

1.1

—

—

0.1

1.0


$0.02

—

Losses and other charges (A)
1.9

(0.9)

0.0

—

—

—

1.1

(0.0)

—

—

Amortization of debt discount on convertible notes
—

—

—

—

—

3.1

1.1

2.0


$0.04

—

Intangible amortization expense
—

15.0

—

—

—

—

4.0

11.0


$0.24

—

Shares due to Teleflex under note hedge (C)
—

—

—

—

—

—

—

—


$0.09

(2,799)

Adjusted basis

$219.1


$124.2


$14.8

—

—


$13.9


$16.0


$69.0


$1.57

43,829




(A) In 2015, losses and other charges include approximately $1.9 million, net of tax, or $0.04 per share, related to acquisition and integration costs, and charges related to facility consolidations; approximately ($0.3) million, net of tax, or ($0.01) per share, related to a gain on sale of business and assets; reversals included approximately ($1.0) million, net of tax, or ($0.02) per share, related to contingent consideration liabilities. In 2014, losses and other charges include approximately $1.5 million, net of tax, or $0.03 per share, related to acquisition and integration costs; reversals included approximately ($1.5) million, net of tax, or ($0.03) per share, related to the reversal of contingent consideration liabilities.

(B) The tax adjustment represents a net benefit resulting from legislative tax law change impacting 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 our senior subordinated 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 – September 27, 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

$641.1


$420.8


$38.9


$5.7


($0.4
)

$47.2


$10.5


$15.4


$145.4


$3.03

47,969

Adjustments:
 
 
 
 
 
 
 
 
 
 
 
Restructuring and other impairment charges
—

—

—

5.7

—

—

—

2.1

3.6


$0.08

—

Losses and other charges (A)
7.6

(3.0)

—

—

(0.4)

—

—

2.2

1.9


$0.03

—

Amortization of debt discount on convertible notes
—

—

—

—

—

9.8

—

3.6

6.2


$0.13

—

Intangible amortization expense
—

45.3

—

—

—

—

—

12.0

33.3


$0.69

—

Loss on extinguishment of debt, net
—

—

—

—

—

—

10.5

3.8

6.6

$0.14
—

Tax adjustment (B)
—

—

—

—

—

—

—

4.1

(4.1)


($0.08
)
—

Shares due to Teleflex under note hedge (C)
—

—

—

—

—

—

—

—

—


$0.30

(3,319)

Adjusted basis

$633.5


$378.5


$38.9

—

—


$37.4

—


$43.1


$193.0


$4.32

44,650

Year-to-date Ended – September 28, 2014
 
 
 
 
 
 
 
 
 
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

$662.4


$425.4


$43.8


$16.5

—


$48.2

—


$28.2


$138.6


$3.00

46,256

Adjustments:
 
 
 
 
 
 
 
 
 
 
 
Restructuring and other impairment charges
—

—

—

16.5

—

—

—

4.7

11.8


$0.26

—

Losses and other charges (A)
2.8

(2.1)

0.1

—

—

—

—

1.9

(1.1)

($0.02)
—

Amortization of debt discount on convertible notes
—

—

—

—

—

9.1

—

3.3

5.8

$0.12
—

Intangible amortization expense
—

47.1

—

—

—

—

—

13.9

33.1


$0.72

—

Loss on extinguishment of debt, net
—

—

—

—

—

—

—

—

—

—

—

Tax adjustment (B)
—

—

—

—

—

—

—

0.2

(0.2
)
($0.01)
—

Shares due to Teleflex under note hedge (C)
—

—

—

—

—

—

—

—

—


$0.25

(2,654)

Adjusted basis

$659.6


$380.4


$43.7

—

—


$39.1

—


$52.3


$187.9


$4.31

43,602




(A) In 2015, losses and other charges include approximately $5.8 million, net of tax, or $0.12 per share, related to acquisition and integration costs, and charges related to facility consolidations; approximately ($0.3) million, net of tax, or ($0.01) per share, related to a gain on sale of business and assets; reversals included approximately ($3.4) million, net of tax, or ($0.07) per share, related to contingent consideration liabilities and approximately ($0.2) million, net of tax, or ($0.01) per share, related to a litigation verdict against the Company with respect to a non-operating joint venture. In 2014, losses and other charges include approximately $7.0 million, net of tax, or $0.16 per share, related to acquisition and integration costs; reversals included approximately ($8.1) million, net of tax, or ($0.18) per share, related to the reversal of contingent consideration liabilities.

(B) In 2015, the tax adjustment represents a net benefit resulting from legislative tax law change impacting our deferred tax liability. In 2014, the tax adjustment represents a benefit resulting from the expiration of statute of limitations with respect to a foreign tax matter.

(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 our senior subordinated convertible notes. Under GAAP, the anti-dilutive impact of the convertible note hedge agreements is not reflected in diluted shares.



RECONCILIATION OF NET DEBT OBLIGATIONS
 
 
September 27, 2015
 
December 31, 2014

 
 
(Dollars in thousands)
Note payable and current portion of long term borrowings
 
$
416,685
 
 
$
368,401
 
 
 
 
 
 
 
 
 
 
Long term borrowings
 
 
646,000
 
 
 
700,000
 
 
 
 
 
 
 
 
 
 
Unamortized debt discount
 
 
26,386
 
 
 
36,197
 
 
 
 
 
 
 
 
 
 
Total debt obligations
 
 
1,089,071
 
 
 
1,104,598
 
 
 
 
 
 
 
 
 
 
Less: cash and cash equivalents
 
 
276,463
 
 
 
303,236
 
 
 
 
 
 
 
 
 
 
Net debt obligations
 
$
812,608
 
 
$
801,362
 
 
 
 
 
 
 
 
 
 


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, our expectation of a strong close to the year from the perspective of constant currency revenue growth and adjusted earnings per share; and forecasted 2015 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 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, 2014.









TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 
Three Months Ended
 
Nine Months Ended
 
September 27, 2015
 
September 28, 2014
 
September 27, 2015
 
September 28, 2014
 
(Dollars and shares in thousands, except per share)
Net revenues
$
443,714

 
$
457,173

 
$
1,325,189

 
$
1,363,824

Cost of goods sold
215,501

 
221,007

 
641,102

 
662,411

Gross profit
228,213

 
236,166

 
684,087

 
701,413

Selling, general and administrative expenses
138,840

 
138,252

 
420,765

 
425,392

Research and development expenses
12,571

 
14,871

 
38,898

 
43,803

Restructuring charges
660

 
1,108

 
5,688

 
16,511

Gain on sale of assets
(408
)
 
—

 
(408
)
 
—

Income from continuing operations before interest, extinguishment of debt and taxes
76,550

 
81,935

 
219,144

 
215,707

Interest expense
14,306

 
17,184

 
47,685

 
48,650

Interest income
(130
)
 
(161
)
 
(453
)
 
(494
)
Loss on extinguishment of debt
—

 
—

 
10,454

 
—

Income from continuing operations before taxes
62,374

 
64,912

 
161,458

 
167,551

Taxes on income from continuing operations
803

 
9,684

 
15,415

 
28,224

Income from continuing operations
61,571

 
55,228

 
146,043

 
139,327

Operating loss from discontinued operations
(788
)
 
(247
)
 
(1,432
)
 
(1,866
)
(Benefit) taxes on loss from discontinued operations
(69
)
 
24

 
180

 
(345
)
Loss from discontinued operations
(719
)
 
(271
)
 
(1,612
)
 
(1,521
)
Net income
60,852

 
54,957

 
144,431

 
137,806

Less: Income from continuing operations attributable to
noncontrolling interest
28

 
126

 
692

 
765

Net income attributable to common shareholders
$
60,824

 
$
54,831

 
$
143,739

 
$
137,041

Earnings per share available to common shareholders:
 
 
 
 
 
 
 
Basic:
 
 
 
 
 
 
 
Income from continuing operations
$
1.48

 
$
1.33

 
$
3.50

 
$
3.35

Loss from discontinued operations
(0.02
)
 
(0.01
)
 
(0.04
)
 
(0.04
)
Net income
$
1.46

 
$
1.32

 
$
3.46

 
$
3.31

Diluted:
 
 
 
 
 
 
 
Income from continuing operations
$
1.27

 
$
1.18

 
$
3.03

 
$
3.00

Loss from discontinued operations
(0.02
)
 
—

 
(0.03
)
 
(0.04
)
Net income
$
1.25

 
$
1.18

 
$
3.00

 
$
2.96

Dividends per share
$
0.34

 
$
0.34

 
$
1.02

 
$
1.02

Weighted average common shares outstanding
 
 
 
 
 
 
 
Basic
41,597

 
41,399

 
41,542

 
41,347

Diluted
48,532

 
46,628

 
47,969

 
46,256

Amounts attributable to common shareholders:
 
 
 
 
 
 
 
Income from continuing operations, net of tax
$
61,543

 
$
55,102

 
$
145,351

 
$
138,562

Loss from discontinued operations, net of tax
(719
)
 
(271
)
 
(1,612
)
 
(1,521
)
Net income
$
60,824

 
$
54,831

 
$
143,739

 
$
137,041












TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
September 27, 2015
 
December 31, 2014
 
(Dollars in thousands)
ASSETS
 
 
 
Current assets
 
 
 
Cash and cash equivalents
$
276,463

 
$
303,236

Accounts receivable, net
272,996

 
273,704

Inventories, net
345,899

 
335,593

Prepaid expenses and other current assets
33,798

 
35,697

Prepaid taxes
43,966

 
40,256

Deferred tax assets
55,981

 
57,301

Assets held for sale
7,044

 
7,422

Total current assets
1,036,147

 
1,053,209

Property, plant and equipment, net
313,244

 
317,435

Goodwill
1,303,175

 
1,323,553

Intangible assets, net
1,192,364

 
1,216,720

Investments in affiliates
324

 
1,150

Deferred tax assets
940

 
1,178

Other assets
61,507

 
64,010

Total assets
$
3,907,701

 
$
3,977,255

LIABILITIES AND EQUITY
 
 
 
Current liabilities
 
 
 
Current borrowings
$
416,685

 
$
368,401

Accounts payable
67,906

 
64,100

Accrued expenses
67,027

 
72,383

Current portion of contingent consideration
545

 
11,276

Payroll and benefit-related liabilities
77,435

 
85,442

Accrued interest
7,490

 
9,169

Income taxes payable
9,728

 
13,768

Other current liabilities
10,655

 
10,360

Total current liabilities
657,471

 
634,899

Long-term borrowings
646,000

 
700,000

Deferred tax liabilities
406,101

 
451,541

Pension and postretirement benefit liabilities
148,514

 
167,241

Noncurrent liability for uncertain tax provisions
50,817

 
50,884

Other liabilities
57,737

 
58,991

Total liabilities
1,966,640

 
2,063,556

Commitments and contingencies
 
 
 
Total common shareholders' equity
1,938,891

 
1,911,309

Noncontrolling interest
2,170

 
2,390

Total equity
1,941,061

 
1,913,699

Total liabilities and equity
$
3,907,701

 
$
3,977,255






TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
Nine Months Ended
 
September 27, 2015
 
September 28, 2014
 
(Dollars in thousands)
Cash Flows from Operating Activities of Continuing Operations
 
 
 
Net income
$
144,431

 
$
137,806

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Loss from discontinued operations
1,612

 
1,521

Depreciation expense
34,035

 
37,409

Amortization expense of intangible assets
45,278

 
47,053

Amortization expense of deferred financing costs and debt discount
12,662

 
11,792

Loss on extinguishment of debt
10,454

 
—

Gain on sale of assets
(408
)
 
—

Changes in contingent consideration
(3,260
)
 
(7,670
)
Stock-based compensation
10,379

 
9,125

Deferred income taxes, net
(21,960
)
 
(2,808
)
Other
(18,329
)
 
(4,310
)
Changes in operating assets and liabilities, net of effects of acquisitions and disposals:
 
 
 
Accounts receivable
(8,714
)
 
2,442

Inventories
(19,904
)
 
(23,084
)
Prepaid expenses and other current assets
1,636

 
(4,087
)
Accounts payable and accrued expenses
(2,855
)
 
14,258

Income taxes receivable and payable, net
(8,297
)
 
(10,649
)
   Net cash provided by operating activities from continuing operations
176,760

 
208,798

Cash Flows from Investing Activities of Continuing Operations:
 
 
 
Expenditures for property, plant and equipment
(45,566
)
 
(48,220
)
Proceeds from sale of assets
408

 
5,251

Payments for businesses and intangibles acquired, net of cash acquired
(63,451
)
 
(28,535
)
Investment in affiliates
—

 
(40
)
Net cash used in investing activities from continuing operations
(108,609
)
 
(71,544
)
Cash Flows from Financing Activities of Continuing Operations:
 
 
 
Proceeds from new borrowings
288,100

 
250,000

Reduction in borrowings
(303,627
)
 
(480,009
)
Debt extinguishment, issuance and amendment fees
(9,017
)
 
(3,689
)
Net proceeds from share based compensation plans and the related tax impacts
4,815

 
2,936

Payments to noncontrolling interest shareholders
(833
)
 
(1,094
)
Payments for contingent consideration
(7,974
)
 
—

Dividends paid
(42,382
)
 
(42,174
)
Net cash used in financing activities from continuing operations
(70,918
)
 
(274,030
)
Cash Flows from Discontinued Operations:
 
 
 
Net cash used in operating activities
(1,954
)
 
(1,946
)
Net cash used in discontinued operations
(1,954
)
 
(1,946
)
Effect of exchange rate changes on cash and cash equivalents
(22,052
)
 
(6,880
)
Net decrease in cash and cash equivalents
(26,773
)
 
(145,602
)
Cash and cash equivalents at the beginning of the period
303,236

 
431,984

Cash and cash equivalents at the end of the period
$
276,463

 
$
286,382