Teleflex Announces Strong First Quarter Results
13 April 2000
Teleflex Announces Strong First Quarter Results; Net Income Increased 16%. Revenues Up 9% Over Last Year
PLYMOUTH MEETING, Pa.--April 12, 2000--Teleflex Incorporated announced today that revenues for the first quarter ended March 26, 2000 increased 9% to $427.6 million compared to $392.2 million for the first three months last year. Net income increased 16% to $26.8 million in the quarter from $23.1 million for the same period in 1999. Diluted earnings per share increased to 70 cents per share for the quarter compared to 60 cents per share a year ago.Lennox K. Black, chairman of the board, said, "We are off to a good start in 2000 with 17% growth in earnings per share in the first quarter. Teleflex is in excellent financial shape, and our operating businesses have good momentum from new products and market penetration. In addition, we completed several small acquisitions in the first quarter which made a contribution."
Double-digit sales growth in all three product lines -- Automotive, Marine and Industrial -- led to a 19% overall increase in Commercial Segment sales versus the prior year. A substantial portion of the growth was from core businesses. Operating profit rose 25% in the Segment and operating margin improved. Volume in the new Automotive adjustable pedal system (APS) grew and investment continued in engineering and the start up of the new APS plant in Kendallville, Indiana.
Medical Segment sales increased 8% in the quarter with growth in both the Hospital Supply and the Surgical Devices product lines. Sales were helped by acquisitions which expanded distribution and added new products. An 18% rise in operating profits came from strong year-over-year improvement in both product lines.
The Aerospace Segment recorded a modest 5% decrease in sales. Two product lines - cargo systems and coatings - achieved sales increases, partially offsetting a decline in component manufacturing. Operating profits in Aerospace declined 4% from a year ago due to lower volume in component manufacturing. Despite the dip in sales and operating profits, Aerospace margins held steady.
The figures are as follows:
COMPARATIVE SUMMARY OF REVENUES AND EARNINGS
(Unaudited)
Percent
Three Months Ended March 26, 2000 March 28, 1999 Change
Revenues $427,590,000 $392,190,000 9%
Operating profit $49,378,000 $43,190,000 14%
Income before taxes $39,962,000 $34,615,000 15%
Net income $26,814,000 $23,054,000 16%
Earnings per share:
Basic $.70 $.61 15%
Diluted $.70 $.60 17%
Average common shares
outstanding:
Basic 38,096,000 37,637,000
Diluted 38,415,000 38,390,000
BUSINESS SEGMENT INFORMATION
(Unaudited)
Percent
Three Months Ended March 26, 2000 March 28, 1999 Change
Sales
Commercial Products $218,816,000 $184,496,000 19%
Medical Products $95,506,000 $88,557,000 8%
Aerospace Products $113,268,000 $119,137,000 -5%
------------ ------------
Total $427,590,000 $392,190,000 9%
Operating Profit
Commercial Products $24,488,000 $19,619,000 25%
Medical Products $12,209,000 $10,303,000 18%
Aerospace Products $12,681,000 $13,268,000 -4%
------------ ------------
Total $49,378,000 $43,190,000 14%
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
March 26, 2000 March 28, 1999
Assets
Current assets $649,000,000 $630,000,000
Property, plant and
equipment, net 473,000,000 445,000,000
Other assets and investments 223,000,000 173,000,000
----------- -----------
$1,345,000,000 $1,248,000,000
============== ==============
Liabilities and
shareholders' equity
Current liabilities $368,000,000 $329,000,000
Long-term borrowings 268,000,000 271,000,000
Other liabilities 87,000,000 98,000,000
---------- ----------
723,000,000 698,000,000
Shareholders' equity 622,000,000 550,000,000
----------- -----------
$1,345,000,000 $1,248,000,000
============== ==============
Teleflex At A Glance:
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.