Teleflex Reports Second Quarter Net Income Up 13%
13 July 2000
Solid Core Growth is Basis for 11% Increase in Revenues
PLYMOUTH MEETING, Pa. - Teleflex Incorporated today reported that net income increased 13% to $29.3 million in the second quarter ended June 25, 2000 from $25.9 million for the same period in 1999.Diluted earnings per share increased to 76 cents per share for the quarter compared to 67 cents per share a year ago. Revenues for the second quarter increased 11% to $465.6 million compared to $421.1 million for the same three months last year.Revenues for the first six months of 2000 increased 10% to $893.1 million compared to $813.3 million last year. Net income increased 15% to $56.1 million in the first six months compared with $48.9 million for the same period in 1999. Diluted earnings per share increased to $1.46 from $1.27 per share for the same period in 1999.
Lennox K. Black, chairman of the board, said, "Revenues in the second quarter and first half of 2000 were based on solid core growth supplemented by acquisitions. The strength in the Commercial and Medical segments, which account for 75% of the company's sales, more than offset weakness in Aerospace. We have good momentum as we enter the second half of the year."
The Commercial Segment increased sales 18% over the year-ago quarter, with the majority of the increase generated from existing businesses. The Segment contributed 52% of total revenues. Commercial operating margin improved slightly in the current quarter to 10.9% generally as a result of higher volume in Automotive. The Automotive product line benefited from a continued strong market for passenger cars and light trucks and from increased volume of adjustable pedal systems.
Medical Segment sales increased 12% in the quarter, mostly from acquisitions. Medical accounted for 23% of total corporate revenues. Operating profit grew 15% and margins improved to 14.1%, up from 13.7% a year ago. Gains in operating efficiencies and the acquisition of a urinary care product company in the Hospital Supply product line boosted profits.
Aerospace Segment sales which contributed 25% of total corporate revenues, declined 3% from the second quarter of 1999. A decline in the component manufacturing product line was nearly offset by gains in other product lines, as well as by acquisitions. Aerospace operating profits and operating margins declined from a year ago due to lower volume in manufactured components.
The figures are as follows:
COMPARATIVE SUMMARY OF REVENUES AND EARNINGS
(Unaudited)
Percent
Three Months Ended June 25, 2000 June 27, 1999 Change
Revenues $465,553,000 $421,126,000 11%
Operating profit $ 53,569,000 $ 48,318,000 11%
Income before taxes $ 43,572,000 $ 39,292,000 11%
Net income $ 29,324,000 $ 25,854,000 13%
Earnings per share
Basic $ .77 $ .69 12%
Diluted $ .76 $ .67 13%
Average shares
outstanding
Basic 38,180,000 37,743,000
Diluted 38,624,000 38,528,000
Percent
Six Months Ended June 25, 2000 June 27, 1999 Change
Revenues $893,143,000 $813,316,000 10%
Operating profit $102,947,000 $ 91,508,000 13%
Income before taxes $ 83,534,000 $ 73,907,000 13%
Net income $ 56,138,000 $ 48,908,000 15%
Earnings per share
Basic $ 1.47 $ 1.30 13%
Diluted $ 1.46 $ 1.27 15%
Average shares
outstanding
Basic 38,138,000 37,690,000
Diluted 38,519,000 38,459,000
BUSINESS SEGMENT INFORMATION
(Unaudited)
Percent
Three Months Ended June 25, 2000 June 27, 1999 Change
Sales
Commercial
Products $241,398,000 $204,301,000 18%
Medical
Products $105,376,000 $ 94,395,000 12%
Aerospace
Products $118,779,000 $122,430,000 (3%)
------------ ------------
Total $465,553,000 $421,126,000 11%
Operating Profit
Commercial
Products $ 26,273,000 $ 22,072,000 19%
Medical
Products $ 14,839,000 $ 12,952,000 15%
Aerospace
Products $ 12,457,000 $ 13,294,000 (6%)
------------ ------------
Total $ 53,569,000 $ 48,318,000 11%
Percent
Six Months Ended June 25, 2000 June 27, 1999 Change
Sales
Commercial
Products $460,214,000 $388,797,000 18%
Medical
Products $200,882,000 $182,952,000 10%
Aerospace
Products $232,047,000 $241,567,000 (4%)
------------ ------------
Total $893,143,000 $813,316,000 10%
Operating Profit
Commercial
Products $ 50,761,000 $ 41,691,000 22%
Medical
Products $ 27,048,000 $ 23,255,000 16%
Aerospace
Products $ 25,138,000 $ 26,562,000 (5%)
------------ ------------
Total $102,947,000 $ 91,508,000 13%
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
June 25, 2000 June 27, 1999
Assets
Current assets $ 641,537,000 $ 618,052,000
Property, plant and
equipment, net 483,640,000 445,497,000
Other assets and
investments 242,055,000 188,936,000
-------------- --------------
$1,367,232,000 $1,252,485,000
============== ==============
Liabilities and
shareholders'
equity
Current liabilities $ 366,008,000 $ 317,592,000
Long-term borrowings 261,182,000 275,672,000
Other liabilities 95,544,000 86,198,000
-------------- --------------
722,734,000 679,462,000
Shareholders' equity 644,498,000 573,023,000
-------------- --------------
$1,367,232,000 $1,252,485,000
============== ==============
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.