Teleflex First Quarter Results
PLYMOUTH MEETING, Pa.--April 18, 2001--Teleflex Incorporated announced today that revenues for the first quarter ended April 1, 2001 increased 10% to $470.7 million compared to $427.6 million for the first three months last year. Net income increased 12% to $30.0 million in the quarter from $26.8 million for the same period in 2000. Diluted earnings per share increased to 77 cents per share for the quarter compared to 70 cents per share a year ago.Lennox K. Black, chairman and CEO, said, "The results for the first quarter of 2001 are gratifying and typical of Teleflex as gains in the Aerospace and Medical segments more than offset a slight decline in Commercial. Through the remainder of the year, we expect the Morse Controls acquisition, which was completed in February, to temper the softer conditions in our Commercial Segment."
In the Commercial Segment, sales and operating profit were relatively constant with the prior year despite weaker end market conditions. Sales growth in the Industrial product line and the acquisition of Morse Controls more than offset a decline in Automotive sales, due to a sharp drop in North American vehicle production, and softness in leisure marine volume. Operating profit gains in Marine and Industrial effectively offset a decline in Automotive due to lower volume.
Medical Segment sales increased 11% in the quarter with growth in both the Hospital Supply and the Surgical Devices product lines. Acquisitions and core product growth more than compensated for continued weakness in the European currencies. A 22% rise in operating profits came from strong improvement in both product lines and operating margin improved from increased sales of higher margin products.
The Aerospace Segment recorded a 25% increase in sales. Three product lines - cargo systems, industrial gas turbine and repair services - achieved sales increases, offsetting a decline in component manufacturing. Operating profits in Aerospace improved 27% from a year ago primarily due to core product growth and acquisitions in industrial gas turbine services.
The figures are as follows:
COMPARATIVE SUMMARY OF REVENUES AND EARNINGS
(Unaudited)
Percent
Three Months Ended April 1, 2001 March 26, 2000 Change
Sales
Commercial $222,818,000 $218,816,000 2%
Medical 106,404,000 95,506,000 11%
Aerospace 141,512,000 113,268,000 25%
------------ ------------
Total $470,734,000 $427,590,000 10%
Operating Profit
Commercial $ 24,358,000 $ 24,488,000 -1%
Medical 14,933,000 12,209,000 22%
Aerospace 16,089,000 12,681,000 27%
------------ ------------
Total 55,380,000 49,378,000 12%
Less:
Interest expense 6,711,000 5,034,000 33%
Corporate expenses 4,644,000 4,382,000 6%
------------ ------------
Income before taxes 44,025,000 39,962,000 10%
Taxes on income 14,044,000 13,148,000 7%
------------ ------------
Net income $ 29,981,000 $ 26,814,000 12%
============ ============
Earnings per share:
Basic $ .78 $ .70 11%
Diluted $ .77 $ .70 10%
Average common shares
outstanding:
Basic 38,497,000 38,096,000
Diluted 39,036,000 38,415,000
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
April 1, 2001 December 31, 2000
Assets
Current assets
Cash and cash
equivalents $ 42,384,000 $ 45,139,000
Accounts receivable,
net 387,825,000 334,346,000
Inventories 302,872,000 259,845,000
Prepaid expenses 25,230,000 22,708,000
-------------- --------------
758,311,000 662,038,000
Property, plant and
equipment, net 510,031,000 489,503,000
Investments in
affiliates 39,886,000 39,515,000
Intangibles and other
assets 290,983,000 210,232,000
-------------- --------------
$1,599,211,000 $1,401,288,000
============== ==============
Liabilities and
shareholders' equity
Current liabilities
Current borrowings $ 175,946,000 $ 118,037,000
Accounts payable and
accrued expenses 255,461,000 235,704,000
Income taxes payable 35,091,000 30,131,000
-------------- --------------
466,498,000 383,872,000
Long-term borrowings 308,853,000 220,557,000
Deferred income taxes
and other 114,498,000 106,437,000
-------------- --------------
889,849,000 710,866,000
Shareholders' equity 709,362,000 690,422,000
-------------- --------------
$1,599,211,000 $1,401,288,000
============== ==============
Teleflex At A Glance:
Teleflex is a diversified industrial company with annual sales of $1.8 billion. The company designs, manufactures and distributes quality engineered products and services for the automotive, marine, industrial, medical and aerospace markets worldwide. Teleflex has more than 80 business units worldwide that focus on providing innovative solutions for customers. Additional information about Teleflex, including a recent archived conference call with analysts and investors, can be obtained from the company's Web site on the Internet at www.teleflex.com.
Forward-looking information:
Statements in this news release, other than historical data, are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks and uncertainties that could cause actual results to differ from those contemplated in the statements. These factors are discussed in the company's Securities and Exchange Commission filings.