TELEFLEX Reports Q4 and Year-End 1999 Results
9 February 2000
TELEFLEX REPORTS FOURTH QUARTER AND YEAR-END 1999 RESULTS
PLYMOUTH MEETING, Pa.--Feb. 9, 2000---- REVENUES TOP $1.6 BILLION
-- 25th CONSECUTIVE RECORD YEAR
Teleflex Incorporated today reported that revenues for the year ended December 26, 1999 increased 11% to $1.6 billion compared to $1.4 billion in 1998. Net income increased 15% to $95.2 million from $82.6 million the prior year. Diluted earnings per share increased to $2.47 in 1999 compared to $2.15 in 1998.
In the fourth quarter, revenues increased 6% to $410.4 million from $385.8 million in 1998. Net income increased 8% to $27.3 million. Diluted earnings per share were $.71 in 1999 compared to $.66 in 1998.
Teleflex finished 1999 in strong financial and operating condition. The company said that it sees good prospects for growth over the long term within each of its three segments. The management team is fully committed to growing Teleflex 15% to 20% through both internal and external means.
The Commercial Segment, which contributed 47% of total revenues in 1999, increased sales 17%, almost all from core growth. Automotive, Marine and Industrial product lines all reported double-digit sales increases. New products such as the adjustable pedal system were key contributors to sales growth. Operating profit jumped 22% in 1999 resulting in margin improvement over the prior year.
The Medical Segment accounted for 23% of total revenues in 1999. Sales increased 10% largely as a result of acquisitions. Both Hospital Supply and Surgical Devices achieved higher operating profits and operating margins in large part due to improved product mix.
The Aerospace Segment contributed 30% of total 1999 revenues. Sales rose 5% despite cyclical weakness in aircraft production. Increased sales in repairs and coatings offset declines in cargo and component manufacturing. Operating profits declined primarily as a result of lower volumes in cargo and component manufacturing.
The figures are as follows:
COMPARATIVE SUMMARY OF REVENUES AND EARNINGS
Percent
Three Months Ended December 26, 1999 December 27, 1998 Change
Revenues $410,362,000 $385,845,000 6%
Operating profit $48,920,000 $45,487,000 8%
Income before taxes $40,038,000 $37,054,000 8%
Net income $27,326,000 $25,271,000 8%
Earnings per share
Basic $.72 $.68 6%
Diluted $.71 $.66 8%
Average shares
outstanding
Basic 38,098,000 37,427,000
Diluted 38,561,000 38,482,000
Percent
Year Ended December 26, 1999 December 27, 1998 Change
Revenues $1,601,069,000 $1,437,578,000 11%
Operating profit $178,314,000 $159,052,000 12%
Income before taxes $142,756,000 $124,760,000 14%
Net income $95,220,000 $82,550,000 15%
Earnings per share
Basic $2.52 $2.21 14%
Diluted $2.47 $2.15 15%
Average shares
outstanding
Basic 37,857,000 37,347,000
Diluted 38,525,000 38,425,000
BUSINESS SEGMENT INFORMATION
Percent
Three Months Ended December 26, 1999 December 27, 1998 Change
Sales
Commercial Products $199,868,000 $169,349,000 18%
Medical Products 97,916,000 90,031,000 9%
Aerospace Products 112,578,000 126,465,000 -11%
------------- -------------
$410,362,000 $385,845,000 6%
Operating Profit
Commercial Products $22,050,000 $16,832,000 31%
Medical Products 14,210,000 12,120,000 17%
Aerospace Products 12,660,000 16,535,000 -23%
------------- -------------
$48,920,000 $45,487,000 8%
Percent
Year Ended December 26, 1999 December 27, 1998 Change
Sales
Commercial Products $757,720,000 $649,644,000 17%
Medical Products 372,282,000 338,305,000 10%
Aerospace Products 471,067,000 449,629,000 5%
------------- -------------
$1,601,069,000 $1,437,578,000 11%
Operating Profit
Commercial Products $75,823,000 $62,010,000 22%
Medical Products 49,551,000 41,879,000 18%
Aerospace Products 52,940,000 55,163,000 -4%
-------------- --------------
$178,314,000 $159,052,000 12%
CONDENSED CONSOLIDATED BALANCE SHEET
December 26, 1999 December 27, 1998
Assets
Current assets $605,000,000 $617,000,000
Property, plant and
equipment, net 466,000,000 432,000,000
Other assets and investments 192,000,000 167,000,000
----------- -----------
$1,263,000,000 $1,216,000,000
Liabilities and
shareholders' equity
Current liabilities $329,000,000 $312,000,000
Long-term borrowings 246,000,000 276,000,000
Other liabilities 86,000,000 94,000,000
------------ ------------
661,000,000 682,000,000
Shareholders' equity 602,000,000 534,000,000
----------- -----------
$1,263,000,000 $1,216,000,000
ABOUT TELEFLEX INCORPORATED:
Teleflex is a diversified industrial company with annual sales of $1.6 billion. The company designs, manufactures and distributes quality engineered products and services for the automotive, marine, industrial, medical and aerospace markets worldwide. Teleflex employs more than 14,000 people in over 80 units around the world. 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 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.