Full Year 2007 Operating Cash Flow $283 Million, Up 43%
Full Year Net Income Increases to $146 Million or $3.73 per
diluted share
Full Year Diluted EPS from Continuing Operations Excluding Special
Items of $3.24, up 21%
Reiterates Full Year 2008 Guidance for Diluted EPS from Continuing
Operations Excluding Special Items of $3.70 to $3.90, up over 14%
LIMERICK, Pa.--(Business Wire)--
Teleflex Incorporated (NYSE:TFX) today announced financial results
for the fourth quarter and year ended December 31, 2007. Results for
the period include the operations of Arrow International since its
acquisition on October 1, 2007 and the operations of Nordisk Aviation
Products since its acquisition in November 2007. Results of the
automotive and industrial businesses divested at the end of 2007 are
reflected as discontinued operations for all periods presented.
Full Year 2007 Financial Highlights
For the full year 2007, revenues from continuing operations
increased 14% to $1.9 billion compared to revenues of $1.7 billion for
the same period in 2006. Revenues increased as a result of
acquisitions and currency translation.
Cash flow from continuing operations was $283 million, an increase
of 43% over the prior year. Free cash flow generated for the full year
2007 was $189 million (calculated as cash flow from continuing
operations minus capital expenditures of $45 million and dividends of
$49 million).
Full year 2007 income from continuing operations excluding special
charges, loss on sale of assets and a tax adjustment was $128.5
million or $3.24 per diluted share, up 21% over the prior year. Income
from continuing operations, excluding special charges, gain on sale,
and tax adjustment for the full year 2006 was $106.9 million or $2.67
per diluted share.
Results for 2007 included certain charges for purchased in-process
research and development, fair market value adjustments to inventory
and deferred financing costs in connection with the Arrow acquisition,
as well as special charges for restructuring costs taken in the fourth
quarter. Charges in the fourth quarter also included intangible asset
impairment charges primarily related to the company's power systems
business. Results for the full year also included a third quarter tax
charge related to current and future cash repatriations and losses on
sales of assets. These items reduced earnings by $170.8 million or
$4.32 per diluted share for the full year.
Loss from continuing operations for the full year was $42.4
million or $1.08 per diluted share which includes the
previously-discussed charges. This compares with income from
continuing operations for the prior year period of $96.1 million or
$2.40 per diluted share.
A reconciliation of income (loss) and diluted earnings (loss) per
share from continuing operations to income and diluted earnings per
share from continuing operations excluding special charges, (gain)
loss on sale of assets and tax adjustment for the three and twelve
month periods in 2007 and 2006 is included below.
Full year income from discontinued operations was $188.9 million
or $4.81 per diluted share compared to income from discontinued
operations of $43.3 million or $1.08 per diluted share in 2006. Income
from discontinued operations included gains on dispositions.
Net income for the full year was $146.5 million or $3.73 per
diluted share compared to $139.4 million or $3.49 per diluted share in
the prior year.
"The solid performance of our core operations reflects the
strength of our redefined portfolio and our ability to execute," said
Jeffrey P. Black, chairman and chief executive officer of Teleflex.
"We delivered another year of outstanding cash flow generation,
adjusted Medical Segment operating margins exceeded 20% for the full
year and Aerospace margins returned to double digits."
Added Black, "In 2007, we redefined our portfolio to deliver
greater consistency of performance, improved margins and sustainable
growth. We enter 2008 well positioned to deliver strong operating
margin improvement and cash flow from operations as we integrate
acquisitions, invest in new products and create opportunities for
future growth. We are reaffirming our previous 2008 guidance for
diluted earnings per share from continuing operations excluding
special items of $3.70 to $3.90, a more than 14% increase over
comparable 2007 earnings."
The company expects special items for 2008 to be in the range of
$0.60 to $0.67 per diluted share.
Fourth Quarter 2007 Financial Highlights
Fourth quarter revenues from continuing operations increased 30%
to $583.1 million from $448.8 million in the fourth quarter of 2006 as
a result of acquisitions and favorable currency. Core revenue growth
in the quarter declined 9% when compared with the prior year fourth
quarter which included an additional week.
Income from continuing operations excluding special charges and
(gain)/loss on sale was $28.1 million or $0.71 per diluted share
declining from $33.1 million or $0.84 per diluted share in the prior
year quarter. Segment operating profit increases in the Medical and
Aerospace segments were more than offset by the decline in operating
profit in the Commercial Segment and the increase in interest expense.
Results for the period included certain charges described above and
noted in the reconciliation table below.
Fourth quarter loss from continuing operations, principally due to
the charges related to the Arrow acquisition and to restructuring and
impairment costs, was $46.2 million or $1.17 per diluted share,
compared to income from continuing operations of $29.1 million or
$0.74 per diluted share in the prior year quarter.
For the fourth quarter, income from discontinued operations was
$111.6 million or $2.83 per diluted share compared to $8.6 million or
$0.22 per diluted share in 2006. Results from discontinued operations
includes a gain, net of tax, of $107.5 million from the sale of the
automotive and industrial businesses.
Net income for the quarter was $65.4 million or $1.66 per diluted
share compared to $37.7 million or $0.96 per diluted share in the
prior year.
Fourth Quarter Business Segment Commentary
Medical Segment
Medical Segment revenues in the quarter increased 57% to $360.2
million from $230.1 million. The increase resulted from acquisitions
which accounted for 61% of revenue growth, and from a favorable
currency impact of 5%. Core revenue growth declined 9% when compared
with the prior year fourth quarter which included an additional week.
Adjusted segment operating profit (excluding acquisition related
charges) rose to $69.3 million from $49.9 million. Adjusted segment
operating margins in the quarter were 19.2%. A reconciliation of
adjusted segment operating profit and margins is provided in the table
below.
"In the first quarter following the acquisition, Arrow product
sales grew 6% over the comparable period," commented Black. "Our
success with the Arrow product line, and in our international markets,
was tempered by lower demand in North America for disposable products
sold to alternate sites, a decline in sales to medical device
manufacturers, and a negative comparison with the prior year quarter
which included an additional week."
"Revenues were up 14% in our Asia, Canada and Latin American
business where sales of both critical care disposables and surgical
products rose. In European markets sales of our critical care
disposables increased and in North America we had increased demand for
surgical products in the quarter."
Added Black, "We were pleased to see adjusted segment operating
margins reach 19.2% in the quarter, as we executed our integration
plans following the Arrow acquisition. We continue to benefit from
operational improvements in our manufacturing and distribution
centers. Our integration programs are progressing well and we are on
pace to deliver the synergies from the Arrow acquisition planned for
2008."
Aerospace Segment
Aerospace Segment revenues increased 9% to $120.4 million from
$110.4 million in the prior year. The increase resulted from a 10%
increase from an acquisition, offset by a 1% negative impact of
currency translation. Sales increases for cargo systems more than
offset a decline in engine repair services revenues for the quarter
which resulted from the phase out of certain product lines in
connection with facility consolidations. Segment operating profit
increased 12% to $14.8 million from $13.3 million in the prior year.
Segment operating margins were 12.3% in the quarter.
Black commented, "Cargo-handling system sales increased double
digits over the prior year quarter with the delivery of additional
wide-body and narrow-body systems and increased sales of aftermarket
parts. Aerospace Segment operating margins returned to over 12% in the
quarter as the engine repair services business continued to benefit
from facility consolidation and productivity programs. Overall, it was
a good quarter for the Segment."
Commercial Segment
Commercial Segment revenues were $102.5 million, a 5% decline
compared to the prior year. A 9% benefit from acquisitions and a 5%
benefit from currency translation was more than offset by a decline of
19% in core growth. The decline in core growth primarily resulted from
a significant decline in sales of auxiliary power units and related
products in the power systems business when compared to the record
sales and profits posted in the fourth quarter of 2006. Segment
operating profit was $5.0 million, compared to $8.3 million in the
prior year quarter. Segment operating margins declined to 4.9% from
7.7% in the prior year.
Commented Black, "Our marine business delivered a solid
performance in the quarter, with increased aftermarket and
international sales and strong operating profit improvement. However,
the power systems business declined on both sales and profitability as
a result of weakness in the North American truck market."
Fourth Quarter Conference Call Webcast and Additional Information
As previously announced, Teleflex will comment on its fourth
quarter results on a conference call to be held Friday, February 29,
2008, at 10:00 a.m. (ET). The call will be available live and archived
on the company's website at www.teleflex.com and accompanying
presentations will be posted prior to the call. An audio replay will
be available until March 5, 2008 by calling 888-286-8010 (U.S./Canada)
or 617-801-6888 (International), Passcode: 30859245.
Additional Notes:
Core growth includes activity of a purchased company beyond the
initial twelve months after the date of acquisition. Core growth
excludes the impact of translating the results of international
subsidiaries at different currency exchange rates from year to year,
and the activity of companies that have been divested within the most
recent twelve month period.
Certain financial information is presented on a rounded basis,
which may cause minor differences.
Notes on Non-GAAP Financial Measures
This press release addresses certain non-GAAP income measures. We
use these financial measures for internal managerial purposes, when
publicly providing guidance on possible future results, and as a means
to evaluate period-to-period comparisons. These financial measures are
used in addition to and in conjunction with results presented in
accordance with GAAP and should not be relied upon to the exclusion of
GAAP financial measures. These financial measures reflect an
additional way of viewing aspects of our operations that, when viewed
with our GAAP results and the accompanying reconciliations to the
corresponding GAAP financial measure, provide a more complete
understanding of factors and trends affecting our business. Management
strongly encourages investors to review our financial statements and
publicly-filed reports in their entirety and to not rely on any single
financial measure.
This press release includes financial measures which exclude the
effect of charges associated with our restructuring programs,
intangible assets impairment charges, charges related to the Arrow
acquisition, a tax adjustment, and (gain) loss on sale of assets.
Management believes these measures are useful to investors because it
eliminates accounting and tax charges that do not reflect Teleflex's
day-to-day operations. A table reconciling income and diluted earnings
per share from continuing operations to income and diluted earnings
per share from continuing operations excluding special charges, (gain)
loss on sale of assets and tax adjustment is set forth below.
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Quarter Ended Quarter Ended
Dec '07 Dec '06
------------------- --------------------
(dollars in thousands, except per share)
(Loss)/income and
(basic)/diluted earnings per
share $ (46,221) $ (1.17) $ 29,093 $ 0.74
Restructuring & impairment
charges, net of tax 22,375 $ 0.57 4,002 $ 0.10
(Gains)/losses on sale of
assets and other charges,
net of tax 3,390 $ 0.09 -- $ --
Fair market value inventory
adjustment, net of tax 18,550 $ 0.47 -- $ --
In-process research &
development charge 30,000 $ 0.76 -- $ --
Anti-dilutive effect on EPS -- $ (0.01) -- $ --
----------------------------------------
Income and diluted earnings
per share excluding
restructuring & impairment
charges, (gains)/losses and
other charges, fair market
value inventory adjustment,
and in-process research &
development charge $ 28,094 $ 0.71 $ 33,095 $ 0.84
========== ======== ========== =========
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Year Ended Year Ended
Dec '07 Dec '06
-------------------- --------------------
(dollars in thousands, except per share)
(Loss)/income and
(basic)/diluted earnings
per share $ (42,368) $ (1.08) $ 96,088 $ 2.40
Restructuring & impairment
charges, net of tax 28,011 $ 0.71 15,808 $ 0.40
(Gains)/losses on sale of
assets and other charges,
net of tax 4,108 $ 0.10 (119) $ (0.00)
Fair market value inventory
adjustment, net of tax 18,550 $ 0.47 -- $ --
In-process research &
development charge 30,000 $ 0.76 -- $ --
Tax adjustment 90,162 $ 2.30 (4,843) $ (0.12)
Anti-dilutive effect on EPS -- $ (0.03) -- $ --
-----------------------------------------
Income and diluted earnings
per share excluding
restructuring & impairment
charges, (gains)/losses and
other charges, fair market
value inventory adjustment,
in-process research &
development charge and tax
adjustment $ 128,463 $ 3.24 $ 106,934 $ 2.67
=========== ======== ========== =========
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The company has presented results using basic weighted average
shares with the impact of dilution on income excluding special charges
and (gain)/loss on sale of assets, separately. In accordance with SFAS
128, if income from continuing operations is a loss no potential
common shares are included in the computation of diluted per-share
amounts because inclusion would result in an anti-dilutive per-share
amount.
Segment commentary excludes the impact of discontinued operations,
(gain) loss on sale of assets, items included in restructuring,
impairment and other costs, the impact of transaction-related charges
for in-process research and development costs and fair market
adjustments for inventory as disclosed in the condensed consolidated
statements of income.
Adjusted Medical Segment Operating Profit and Margins
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Quarter Ended Quarter Ended
Dec '07 Dec '06
------------- -------------
(dollars in thousands)
Medical Segment Operating Profit as
Reported $ 40,361 $ 49,888
Medical Segment Operating Margin as
Reported 11.2% 21.7%
Add: Fair Market Value Inventory
Adjustment 28,916 --
------------- -------------
Adjusted Medical Segment Operating Profit $ 69,277 $ 49,888
Adjusted Medical Segment Operating Margin 19.2% 21.7%
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Year Ended Year Ended
Dec '07 Dec '06
------------ -----------
(dollars in thousands)
Medical Segment Operating Profit as Reported $ 182,636 $ 161,707
Medical Segment Operating Margin as Reported 17.5% 18.8%
Add: Fair Market Value Inventory Adjustment 28,916 --
------------ -----------
Adjusted Medical Segment Operating Profit $ 211,552 $ 161,707
Adjusted Medical Segment Operating Margin 20.3% 18.8%
*T
Free cash flow is calculated by reducing net cash provided by
operating activities from continuing operations by capital
expenditures and dividends. Free cash flow may be considered a
non-GAAP financial measure. Management believes that free cash flow is
a useful measure to investors because it provides an indication of the
amount of our cash flow currently available to service debt and to
support our ongoing operations.
Free Cash Flow
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2007 2006
----------- -----------
(Dollars in thousands)
Free cash flow $ 189,425 $ 113,595
Capital expenditures 44,734 40,772
Dividends 48,929 44,096
----------- -----------
Net cash provided by operating activities from
continuing operations $ 283,088 $ 198,463
=========== ===========
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About Teleflex Incorporated
Teleflex is a diversified company that designs, manufactures and
distributes quality engineered products and services for the medical,
aerospace and commercial markets worldwide. Teleflex employs
approximately 14,000 people worldwide who focus on providing
innovative solutions for customers. Additional information about
Teleflex can be obtained from the company's website at
www.teleflex.com.
Caution Concerning Forward-looking Information
This press release contains forward-looking statements, including,
but not limited to, statements relating to our business performance
outlook for 2008, expected benefits from cost-reduction efforts and
the launch of new products and programs; the anticipated impact on our
financial results of the acquisition and integration of Arrow
International; investment in new products; and expected business and
financial performance of our business operations. Actual results could
differ materially from those in these forward-looking statements due
to, among other things, conditions in the end markets we serve,
customer reaction to new products and programs, our ability to achieve
projected sales growth, price increases or cost reductions, and
efficiencies, changes in material costs and surcharges, unanticipated
difficulties in connection with consolidation of manufacturing and
administrative functions; unanticipated difficulties, expenditures and
delays in connection with the integration of Arrow International,
including unanticipated costs and difficulties in connection with
integration programs and customer and shareholder reaction; changes in
general and international economic conditions; and other factors
described in Teleflex's filings with the Securities and Exchange
Commission, including our Annual Report on Form 10K.
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TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
-------------------------
December 31, December 31,
2007 2006
------------ ------------
(Dollars and shares in
thousands,
except per share)
Net revenues $ 583,113 $ 448,804
Materials, labor and other product costs 381,514 291,755
------------ ------------
Gross profit 201,599 157,049
Selling, engineering and administrative
expenses 147,768 96,824
In-process research and development charge 30,000 --
Goodwill impairment 16,448 1,003
Restructuring and other impairment charges 7,341 5,562
Net gain on sales of businesses and assets (11) --
------------ ------------
Income from continuing operations before
interest, taxes and minority interest 53 53,660
Interest expense 46,308 11,115
Interest income (2,560) (1,483)
------------ ------------
(Loss) income from continuing operations
before taxes and minority interest (43,695) 44,028
Taxes (benefit) on income (loss) from
continuing operations (5,407) 8,690
------------ ------------
(Loss) income from continuing operations
before minority interest (38,288) 35,338
Minority interest in consolidated
subsidiaries, net of tax 7,933 6,245
------------ ------------
(Loss) income from continuing operations (46,221) 29,093
------------ ------------
Operating income from discontinued
operations (including a gain (loss) on
disposal of $224,241 and ($481),
respectively) 231,508 13,828
Taxes on income from discontinued operations 119,902 5,202
------------ ------------
Income from discontinued operations 111,606 8,626
------------ ------------
Net income $ 65,385 $ 37,719
============ ============
Earnings (losses) per share:
Basic:
(Loss) income from continuing operations $ (1.17) $ 0.75
Income from discontinued operations $ 2.83 $ 0.22
------------ ------------
Net income $ 1.66 $ 0.97
============ ============
Diluted:
(Loss) income from continuing operations $ (1.17) $ 0.74
Income from discontinued operations $ 2.83 $ 0.22
------------ ------------
Net income $ 1.66 $ 0.96
============ ============
Dividends per share $ 0.32 $ 0.285
Weighted average common shares outstanding:
Basic 39,417 38,983
Diluted 39,417 39,227
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TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Year Ended
-------------------------
December 31, December 31,
2007 2006
------------ ------------
(Dollars and shares in
thousands,
except per share)
Net revenues $ 1,934,332 $ 1,690,809
Materials, labor and other product costs 1,253,978 1,105,652
------------ ------------
Gross profit 680,354 585,157
Selling, engineering and administrative
expenses 445,254 374,961
In-process research and development charge 30,000 --
Goodwill impairment 18,896 1,003
Restructuring and other impairment charges 11,352 21,320
Net loss on sales of businesses and assets 1,110 732
------------ ------------
Income from continuing operations before
interest, taxes and minority interest 173,742 187,141
Interest expense 74,876 41,200
Interest income (10,482) (6,277)
------------ ------------
Income from continuing operations before
taxes and minority interest 109,348 152,218
Taxes on income from continuing operations 122,767 32,919
------------ ------------
Income (loss) from continuing operations
before minority interest (13,419) 119,299
Minority interest in consolidated
subsidiaries, net of tax 28,949 23,211
------------ ------------
Income (loss) from continuing operations (42,368) 96,088
------------ ------------
Operating income from discontinued
operations (including net gain on
disposal of $299,456 and $182, respectively) 349,917 64,580
Taxes on income from discontinued operations 161,065 21,238
------------ ------------
Income from discontinued operations 188,852 43,342
------------ ------------
Net income $ 146,484 $ 139,430
============ ============
Earnings (losses) per share:
Basic:
Income (loss) from continuing operations $ (1.08) $ 2.42
Income from discontinued operations $ 4.81 $ 1.09
------------ ------------
Net income $ 3.73 $ 3.51
============ ============
Diluted:
Income (loss) from continuing operations $ (1.08) $ 2.40
Income from discontinued operations $ 4.81 $ 1.08
------------ ------------
Net income $ 3.73 $ 3.49
============ ============
Dividends per share $ 1.245 $ 1.105
Weighted average common shares outstanding:
Basic 39,259 39,760
Diluted 39,259 39,988
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TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31, December 31,
2007 2006
------------ ------------
(Dollars in thousands)
ASSETS
Current assets
Cash and cash equivalents $ 201,342 $ 248,409
Accounts receivable, net 341,963 376,404
Inventories 419,188 415,879
Prepaid expenses 31,051 27,689
Deferred tax assets 12,025 60,963
Assets held for sale 4,241 10,185
------------ ------------
Total current assets 1,009,810 1,139,529
Property, plant and equipment, net 430,976 422,178
Goodwill 1,502,256 514,006
Intangibles and other assets 1,211,172 259,229
Investments in affiliates 26,594 23,076
Deferred tax assets 7,189 3,419
------------ ------------
Total assets $ 4,187,997 $ 2,361,437
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Notes payable $ 47,572 $ 24,324
Current portion of long-term borrowings 137,557 6,698
Accounts payable 133,654 210,890
Accrued expenses 180,110 115,657
Payroll and benefit-related liabilities 84,251 74,407
Income taxes payable 85,805 16,125
Deferred tax liabilities 21,733 164
------------ ------------
Total current liabilities 690,682 448,265
Long-term borrowings 1,499,130 487,370
Deferred tax liabilities 379,467 25,272
Pension and postretirement benefit
liabilities 78,910 97,191
Other liabilities 168,782 71,861
------------ ------------
Total liabilities 2,816,971 1,129,959
Minority interest in equity of consolidated
subsidiaries 42,183 42,057
Commitments and contingencies
Shareholders' equity 1,328,843 1,189,421
------------ ------------
Total liabilities and shareholders'
equity $ 4,187,997 $ 2,361,437
============ ============
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TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Year Ended
--------------------------
December 31, December 31,
2007 2006
------------ ------------
(Dollars in thousands)
Cash Flows from Operating Activities of
Continuing Operations:
Net income $ 146,484 $ 139,430
Adjustments to reconcile net income to
net cash provided by operating
activities:
Income from discontinued operations (188,852) (43,342)
Depreciation expense 50,958 47,023
Amortization expense of intangible
assets 20,856 10,939
Amortization expense of deferred
financing costs 6,946 1,332
In-process research and development
charge 30,000 --
Stock-based compensation 7,515 5,858
(Gain) loss on sales of businesses
and assets 1,110 732
Impairment of long-lived assets 6,912 8,444
Impairment of goodwill 18,896 1,003
Deferred income taxes 83,154 (2,792)
Minority interest in consolidated
subsidiaries 28,949 23,211
Other 6,898 960
Net change in operating assets and
liabilities, net of effects of
acquisitions 63,262 5,665
------------ ------------
Net cash provided by operating
activities from continuing
operations 283,088 198,463
------------ ------------
Cash Flows from Financing Activities of
Continuing Operations:
Proceeds from long-term borrowings 1,620,000 --
Reduction in long-term borrowings (463,391) (55,031)
Payments of debt issuance costs (21,565) --
Increase (decrease) in notes payable and
current borrowings 1,321 (59,912)
Proceeds from stock compensation plans 24,171 11,952
Payments to minority interest
shareholders (21,259) (129)
Purchases of treasury stock -- (93,552)
Dividends (48,929) (44,096)
------------ ------------
Net cash provided by (used in)
financing activities from
continuing operations 1,090,348 (240,768)
------------ ------------
Cash Flows from Investing Activities of
Continuing Operations:
Expenditures for property, plant and
equipment (44,734) (40,772)
Payments for businesses acquired, net of
cash acquired (2,174,517) (37,370)
Proceeds from sales of businesses and
assets 702,314 3,644
Proceeds from (investments in)
affiliates (5,554) 2,597
Working capital payment for divested
business -- (6,029)
------------ ------------
Net cash provided by (used in)
investing activities from
continuing operations (1,522,491) (77,930)
------------ ------------
Cash Flows from Discontinued Operations:
Net cash provided by operating
activities 110,500 146,199
Net cash used in financing activities (4,889) (9,337)
Net cash used in investing activities (17,104) (22,578)
------------ ------------
Net cash provided by discontinued
operations 88,507 114,284
------------ ------------
Effect of exchange rate changes on cash and
cash equivalents 13,481 14,824
------------ ------------
Net increase (decrease) in cash and cash
equivalents (47,067) 8,873
Cash and cash equivalents at the beginning
of the period 248,409 239,536
------------ ------------
Cash and cash equivalents at the end of the
period $ 201,342 $ 248,409
============ ============
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TELEFLEX INCORPORATED AND SUBSIDIARIES
SUMMARY OF SEGMENT RESULTS
(Unaudited)
Three Months Ended
-------------------------
December 31, December 31,
2007 2006
------------ ------------
(Dollars in thousands)
Revenues:
Medical $ 360,207 $ 230,072
Aerospace 120,437 110,435
Commercial 102,469 108,297
------------ -----------
Total revenues 583,113 448,804
------------ -----------
Segment operating profit (1):
Medical 40,361 49,888
Aerospace 14,790 13,255
Commercial 4,980 8,334
------------ -----------
Total segment operating profit 60,131 71,477
Corporate expenses 14,233 17,497
In-process research and development charge 30,000 --
Goodwill impairment 16,448 1,003
Restructuring and other impairment charges 7,341 5,562
Net gain on sales of businesses and assets (11) --
Minority interest in consolidated
subsidiaries (2) (7,933) (6,245)
------------ -----------
Income from continuing operations before
interest, taxes and minority interest $ 53 $ 53,660
============ ===========
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(1) Segment operating profit includes a segment's revenues reduced
by its materials, labor and other product costs along with the
segment's selling, engineering and administrative expenses and
minority interest. Unallocated corporate expenses, (gain)/
loss on sales of businesses and assets, restructuring and
other impairment charges, in-process research and development
charges, interest income and expense and taxes on income are
excluded from the measure.
(2) Minority interest in consolidated subsidiaries is included in
segment operating profit presented above and must be removed
in order to calculate income from continuing operations before
interest, taxes and minority interest, as presented on the
company's condensed consolidated statements of income for the
three months ended December 31, 2007 and 2006, respectively.
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TELEFLEX INCORPORATED AND SUBSIDIARIES
SUMMARY OF SEGMENT RESULTS
(Unaudited)
Year Ended
--------------------------
December 31, December 31,
2007 2006
------------ -------------
(Dollars in thousands)
Revenues:
Medical $ 1,041,349 $ 858,676
Aerospace 451,788 405,372
Commercial 441,195 426,761
------------ -------------
Total revenues 1,934,332 1,690,809
------------ -------------
Segment operating profit (1):
Medical 182,636 161,707
Aerospace 46,964 40,224
Commercial 22,990 30,498
------------ -------------
Total segment operating profit 252,590 232,429
Corporate expenses 46,439 45,444
In-process research and development charge 30,000 --
Goodwill impairment 18,896 1,003
Restructuring and other impairment charges 11,352 21,320
Net loss on sales of businesses and assets 1,110 732
Minority interest in consolidated
subsidiaries (2) (28,949) (23,211)
------------ -------------
Income from continuing operations before
interest, taxes and minority interest $ 173,742 $ 187,141
============ =============
*T
-0-
*T
(1) Segment operating profit includes a segment's revenues reduced
by its materials, labor and other product costs along with the
segment's selling, engineering and administrative expenses and
minority interest. Unallocated corporate expenses, (gain)/
loss on sales of businesses and assets, restructuring and
other impairment charges, in-process research and development
charges, interest income and expense and taxes on income are
excluded from the measure.
(2) Minority interest in consolidated subsidiaries is included in
segment operating profit presented above and must be removed
in order to calculate income from continuing operations before
interest, taxes and minority interest, as presented on the
company's condensed consolidated statements of income for the
years ended December 31, 2007 and 2006, respectively.
*T
Teleflex Incorporated
Julie McDowell
Vice President
Corporate Communications
610-948-2836
Copyright Business Wire 2008
