Teleflex Reports Third Quarter Net Income Increased 2% On an 11% Increase in Revenues
PLYMOUTH MEETING, Pa.--Oct. 17, 2001--Teleflex Incorporated today reported revenues in the third quarter ended September 30, 2001 increased 11% to $466.0 million compared to $420.4 million for the year-ago quarter. Net income increased 2% to $22.1 million in the quarter from $21.7 million for the same period in 2000. Diluted earnings per share were 56 cents, equal to earnings per share a year ago.Revenues in the first nine months of 2001 increased 10% to $1.4 billion compared to $1.3 billion last year. Net income increased 7% to $83.1 million compared to $77.9 million for the same period in 2000. Diluted earnings per share increased to $2.12 compared to $2.02 per share for the same period a year ago.
Lennox K. Black, chairman, said, "We expended tremendous energy in the third quarter to streamline operations of the company affected by the slowdown in the economy. At the same time we launched many new products during the quarter which will be a positive factor next year. This is a time when we are thankful for the global diversification of our business portfolio which will provide Teleflex with healthy cash flow and increased earnings this year and in 2002. Teleflex is in very strong financial condition and we are confident of our strategy for long-term growth."
Commercial Segment sales grew 12% in the quarter as a result of the acquisition in February 2001 of Morse Controls. Operating profits declined 2% as a result of lower unit volumes in the automotive and marine markets as well as investments in new products.
Medical Segment sales were equal to those in the third quarter a year ago. An increase in core growth plus a contribution from acquisitions was offset by weaker currencies and the divestiture of two small product lines in the fourth quarter of 2000. Hospital Supply and Surgical Devices both increased operating margins by improving product mix and gaining operating efficiencies.
Aerospace Segment sales increased 18%. Sales of cargo systems, repair services and industrial gas turbine (IGT) services drove top line growth. Core growth and acquisitions both contributed meaningfully to the increase in sales which resulted in an operating profit increase of 17%. Sales and profits in component manufacturing were lower.
The figures are as follows:
COMPARATIVE SUMMARY OF REVENUES AND EARNINGS
(Unaudited)
Percent
Three Months Ended Sept. 30, 2001 Sept. 24, 2000 Change
Sales
Aerospace Products $ 143,224,000 $ 121,809,000 18%
Medical Products $ 104,537,000 $ 104,418,000 --
Commercial Products $ 218,253,000 $ 194,178,000 12%
-------------- --------------
Total $ 466,014,000 $ 420,405,000 11%
Operating Profit
Aerospace Products $ 15,049,000 $ 12,851,000 17%
Medical Products $ 15,238,000 $ 14,148,000 8%
Commercial Products $ 14,048,000 $ 14,363,000 (2%)
-------------- --------------
Total $ 44,335,000 $ 41,362,000 7%
Less:
Interest expense 7,263,000 5,209,000 39%
Corporate expenses 4,807,000 3,972,000 21%
-------------- --------------
Income before taxes 32,265,000 32,181,000 --
Taxes on income 10,163,000 10,459,000 (3%)
-------------- --------------
Net income $ 22,102,000 $ 21,722,000 2%
============== ==============
Earnings per share
Basic $ .57 $ .57 --
Diluted $ .56 $ .56 --
Average shares
outstanding
Basic 38,847,000 38,240,000
Diluted 39,379,000 38,714,000
Percent
Nine Months Ended Sept. 30, 2001 Sept. 24, 2000 Change
Sales
Aerospace Products $ 433,776,000 $ 353,856,000 23%
Medical Products $ 318,307,000 $ 305,300,000 4%
Commercial Products $ 687,669,000 $ 654,392,000 5%
-------------- --------------
Total $1,439,752,000 $1,313,548,000 10%
Operating Profit
Aerospace Products $ 47,228,000 $ 37,989,000 24%
Medical Products $ 45,687,000 $ 41,196,000 11%
Commercial Products $ 64,304,000 $ 65,124,000 (1%)
-------------- --------------
Total $ 157,219,000 $ 144,309,000 9%
Less:
Interest expense 21,352,000 15,670,000 36%
Corporate expenses 14,100,000 12,924,000 9%
-------------- --------------
Income before taxes 121,767,000 115,715,000 5%
Taxes on income 38,623,000 37,855,000 2%
-------------- --------------
Net income $ 83,144,000 $ 77,860,000 7%
============== ==============
Earnings per share
Basic $ 2.15 $ 2.04 5%
Diluted $ 2.12 $ 2.02 5%
Average shares
outstanding
Basic 38,700,000 38,172,000
Diluted 39,258,000 38,584,000
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
Sept. 30, 2001 Dec. 31, 2000
Assets
Current assets
Cash and cash
equivalents $ 44,581,000 $ 45,139,000
Accounts receivable, net 386,355,000 334,346,000
Inventories 315,546,000 259,845,000
Prepaid expenses 31,322,000 22,708,000
-------------- --------------
777,804,000 662,038,000
Property, plant and
equipment, net 554,155,000 489,503,000
Investments in
affiliates 41,040,000 39,515,000
Intangibles and
other assets 283,973,000 210,232,000
-------------- --------------
$1,656,972,000 $1,401,288,000
============== ==============
Liabilities and shareholders'
equity
Current liabilities
Current borrowings $ 218,596,000 $ 118,037,000
Accounts payable and
accrued expenses 258,282,000 235,704,000
Income taxes payable 37,969,000 30,131,000
-------------- --------------
514,847,000 383,872,000
Long-term borrowings 261,622,000 220,557,000
Deferred income taxes
and other 121,827,000 106,437,000
-------------- --------------
898,296,000 710,866,000
Shareholders' equity 758,676,000 690,422,000
-------------- --------------
$1,656,972,000 $1,401,288,000
============== ==============
-0-
Teleflex At A Glance:
Teleflex is a diversified industrial company with annual sales of more than $1.8 billion. The company designs, manufactures and distributes quality engineered products and services for the aerospace, medical, automotive, marine and industrial markets worldwide. Teleflex employs more than 16,000 people worldwide who focus on providing innovative solutions for customers. Additional information about Teleflex 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 may cause actual results to differ from those contemplated in the statements. These factors are discussed in the company's Securities and Exchange Commission filings.