Teleflex Reports Fourth Quarter and Full Year 2014 Results; Provides 2015 Guidance

Fourth Quarter Revenues of $476.0 million, up 5.7% over prior year period; up 9.0% on Constant Currency Basis

Fourth Quarter GAAP Diluted EPS of $1.10, up 41.0% over the prior year period

Fourth Quarter Adjusted Diluted EPS of $1.43, up 5.1% over the prior year period

Full Year 2014 Revenues of $1.84 billion, up 8.5% over the prior year period; up 8.8% on a Constant Currency Basis

Full Year 2014 GAAP Diluted EPS of $4.10, up 18.5% over the prior year period

Full Year 2014 Adjusted Diluted EPS of $5.74, up 14.1% over the prior year period

2015 Guidance Range for Constant Currency Revenue Growth of 4% to 6%

2015 Guidance Range for Adjusted Diluted EPS of $6.10 to $6.35, up 6.3% to 10.6%, which reflects our expectation of a negative foreign currency headwind of approximately 14%

WAYNE, Pa.--()--Teleflex Incorporated (NYSE: TFX) (the “Company”) today announced financial results for the fourth quarter and full year ended December 31, 2014.

Fourth quarter 2014 net revenues were $476.0 million, an increase of 5.7% over the prior year period. Excluding the impact of foreign currency fluctuations, fourth quarter 2014 net revenues increased 9.0% over the prior year period.

Fourth quarter 2014 GAAP diluted earnings per share from continuing operations were $1.10, as compared to $0.78 in the prior year period, an increase of 41.0%. Fourth quarter 2014 adjusted diluted earnings per share from continuing operations were $1.43, as compared to $1.36 in the prior year period, an increase of 5.1%.

Full year 2014 net revenues were $1.84 billion, an increase of 8.5% over the prior year period. Excluding the impact of foreign currency fluctuations, full year 2014 net revenues increased 8.8% over the prior year period.

Full year 2014 GAAP diluted earnings per share from continuing operations were $4.10, as compared to $3.46 in the prior year period, an increase of 18.5%. Full year 2014 adjusted diluted earnings per share from continuing operations were $5.74, as compared to $5.03 in the prior year period, an increase of 14.1%.

“Teleflex’s full year 2014 results demonstrate another successful year for the Company,” said Benson Smith, Chairman, President and Chief Executive Officer. “We integrated Vidacare and Mayo Healthcare Pty Ltd., delivered constant currency revenue growth near the upper end of our guidance range, and generated adjusted earnings per share well ahead of our initial expectations.”

Added Mr. Smith, “During 2015, we expect to continue to produce solid constant currency revenue growth and significant operating leverage. While we anticipate that our 2015 results will be negatively impacted by foreign exchange movements, we are committed to implementing operational measures to, in part, mitigate the earnings effect.”

FOURTH QUARTER NET REVENUE BY SEGMENT

Vascular North America fourth quarter 2014 net revenues were $68.7 million, an increase of 9.7% compared to the prior year period. Excluding the impact of foreign currency fluctuations, fourth quarter 2014 net revenues increased 10.2% compared to the prior year period. The increase in constant currency revenue was largely due to product sales resulting from our acquisition of Vidacare and higher sales volume of existing products.

Anesthesia/Respiratory North America fourth quarter 2014 net revenues were $58.2 million, an increase of 0.4% compared to the prior year period. Excluding the impact of foreign currency fluctuations, fourth quarter 2014 net revenues increased 0.7% compared to the prior year period. The increase in constant currency revenue was largely due to new product sales, somewhat offset by lower sales volume of existing products.

Surgical North America fourth quarter 2014 net revenues were $40.8 million, an increase of 8.9% compared to the prior year period. Excluding the impact of foreign currency fluctuations, fourth quarter 2014 net revenues increased 9.7% compared to the prior year period. The increase in constant currency revenue was largely due to higher sales volume of existing products and price increases.

EMEA fourth quarter 2014 net revenues were $146.9 million, an increase of 1.5% compared to the prior year period. Excluding the impact of foreign currency fluctuations, fourth quarter 2014 net revenues increased 8.9% compared to the prior year period. The increase in constant currency revenue was largely due to higher sales volume of existing products, Vidacare product sales, new product sales and price increases.

Asia fourth quarter 2014 net revenues were $63.6 million, an increase of 7.4% compared to the prior year period. Excluding the impact of foreign currency fluctuations, fourth quarter 2014 net revenues increased 10.9% compared to the prior year period. The increase in constant currency revenue was largely due to product sales resulting from the acquisitions of Mayo Healthcare Pty Ltd., Vidacare and Ultimate Medical, price increases and new product sales, somewhat offset by lower sales volume of existing products.

OEM and Development Services (“OEM”) fourth quarter 2014 net revenues were $35.0 million, an increase of 3.1% compared to the prior year period. Excluding the impact of foreign currency fluctuations, fourth quarter 2014 net revenues increased 4.8% compared to the prior year period. The increase in constant currency revenue was largely due to higher sales volume of existing products and new product sales, somewhat offset by lower average selling prices.

   
Three Months Ended % Increase/ (Decrease)

December 31,
2014

 

December 31,
2013

Constant
Currency

 

Foreign
Currency

 

Total
Change

(Dollars in millions)
Vascular North America $ 68.7 $ 62.6 10.2% (0.5% ) 9.7%
Anesthesia/Respiratory North America 58.2 57.8 0.7% (0.3% ) 0.4%
Surgical North America 40.8 37.5 9.7% (0.8% ) 8.9%
EMEA 146.9 144.9 8.9% (7.4% ) 1.5%
Asia 63.6 59.1 10.9% (3.5% ) 7.4%
OEM 35.0 34.1 4.8% (1.7% ) 3.1%
All Other   62.8   54.5 16.3% (1.1% ) 15.2%
Total $ 476.0 $ 450.5 9.0% (3.3% ) 5.7%
 

OTHER FINANCIAL HIGHLIGHTS AND KEY PERFORMANCE METRICS

Depreciation expense and amortization of intangible assets and deferred financing costs for the full year of 2014 were $127.0 million compared to $107.9 million for the prior year period.

Cash and cash equivalents at December 31, 2014 were $303.2 million compared to $432.0 million at December 31, 2013. The decline in cash and cash equivalents is primarily due to a $235 million repayment of a portion of the outstanding principal amount of borrowings under the revolving credit facility, partially offset by cash generated from operations.

Net accounts receivable at December 31, 2014 were $273.7 million compared to $295.3 million at December 31, 2013.

Net inventories at December 31, 2014 were $335.6 million compared to $333.6 million at December 31, 2013.

Net debt obligations at December 31, 2014 were $801.4 million compared to $902.7 million at December 31, 2013.

2015 OUTLOOK

The Company estimates that revenues for full year 2015 will increase 4% to 6% on a constant currency basis. On a GAAP basis, revenues are expected to be flat to down 2% versus the prior year due to the unfavorable impact of foreign currency.

The Company expects adjusted diluted earnings per share from continuing operations to be between $6.10 and $6.35 for full year 2015, representing an increase of 6.3% to 10.6% over the prior year, which reflects our expectation of a negative foreign currency headwind of approximately 14%. The Company expects full year 2015 GAAP diluted earnings per share from continuing operations to be between $4.22 and $4.37.

FORECASTED 2015 CONSTANT CURRENCY REVENUE GROWTH RECONCILIATION

     
Low     High
 
Forecasted 2015 GAAP revenue growth (2 %)

 

 
Estimated impact of foreign currency fluctuations 6 %     6 %
 
Forecasted 2015 constant currency revenue growth 4 %    

6

%
 

FORECASTED 2015 ADJUSTED EARNINGS PER SHARE RECONCILIATION

     
Low     High
 
Diluted earnings per share attributable to common shareholders $4.22 $4.37
 
Restructuring, impairment charges and special items, net of tax $0.75 $0.80
 
Intangible amortization expense, net of tax $0.95 $1.00
 
Amortization of debt discount on convertible notes, net of tax $0.18     $0.18
 
Adjusted diluted earnings per share $6.10     $6.35
 

CONFERENCE CALL WEBCAST AND ADDITIONAL INFORMATION

As previously announced, Teleflex will comment on its financial results on a conference call to be held today at 8:00 a.m. (ET). The call will be available live and archived on the company’s website at www.teleflex.com and the accompanying presentation will be posted prior to the call. An audio replay will be available until February 27, 2015 at 11:59pm (ET), by calling 888-286-8010 (U.S./Canada) or 617-801-6888 (International), Passcode: 82954645.

ADDITIONAL NOTES

Constant currency revenue growth excludes the impact of translating the results of international subsidiaries at different currency exchange rates from period to period.

Certain financial information is presented on a rounded basis, which may cause minor differences.

Segment results and commentary exclude the impact of discontinued operations.

NOTES ON NON-GAAP FINANCIAL MEASURES

This press release includes certain non-GAAP financial measures, which include:

Adjusted diluted earnings per share. This measure excludes, depending on the period presented (i) the effect of charges associated with our restructuring programs, as well as goodwill and other asset impairment charges; (ii) losses and other charges, including acquisition and integration costs, charges related to facility consolidations, the establishment of a litigation reserve and a litigation verdict against the Company with respect to a non-operating joint venture, net of, where applicable, specified reversals, including a reversal of liabilities related to certain contingent consideration arrangements and a reversal of a reserve related to a previously announced stock keeping unit benefit program; (iii) amortization of the debt discount on the Company’s convertible notes; (iv) intangible amortization expense; (v) loss on extinguishment of debt; and (vi) tax benefits resulting from the resolution of, or expiration of the statute of limitations with respect to, prior years’ tax matters. In addition, the calculation of diluted shares within adjusted earnings per share gives effect to the anti-dilutive impact of the Company’s convertible note hedge agreements, which reduce the potential economic dilution that otherwise would occur upon conversion of the Company’s senior subordinated convertible notes (under GAAP, the anti-dilutive impact of the convertible note hedge agreements is not reflected in diluted shares).

Constant currency revenue growth. This measure excludes the impact of translating the results of international subsidiaries at different currency exchange rates from period to period.

Management believes these measures are useful to investors because they eliminate items that do not reflect Teleflex’s day-to-day operations. In addition, management believes that the calculation of non-GAAP diluted shares is useful to investors because it provides insight into the offsetting economic effect of the convertible note hedge against conversions of the convertible notes. Management uses these financial measures for internal managerial purposes, when publicly providing guidance on possible future results, and to assist in our evaluation of period-to-period comparisons. These financial measures are presented in addition to results presented in accordance with generally accepted accounting principles (“GAAP”) and should not be relied upon as a substitute for GAAP financial measures. Tables reconciling historical non-GAAP measures to the most directly comparable historical GAAP measures are set forth below. Tables reconciling forecasted non-GAAP measures to the most directly comparable forecasted GAAP measures are set forth above.

               
RECONCILIATION OF CONSOLIDATED STATEMENT OF INCOME ITEMS
Dollars in millions, except per share amounts
 
Quarter Ended – December 31, 2014
    Net income Shares used in
(loss) attributable Diluted calculation of
Cost Selling, Restructuring Loss on to common earnings per GAAP and
of general and Research and and other Interest extinguish- shareholders share available adjusted
goods administrative development impairment expense, ment of Income from continuing to common earnings per
sold expenses expenses charges net debt taxes operations shareholders share
GAAP Basis $235.0 $153.3 $17.2 $1.4 $16.6 $0.4 $51.8 $1.10 47,112
Adjustments

Restructuring and other impairment charges

1.4

0.5 0.8 $0.02

Losses and other charges (A)

2.1 1.0 0.0 1.1 2.0 $0.04

Amortization of debt discount on convertible notes

3.1 1.1 2.0 $0.04
Intangible amortization expense 13.9 3.5 10.4 $0.22
Tax adjustment (B) 3.8 (3.8) ($0.08)

Shares due to Teleflex under note hedge (C)

$0.09 (2,990)
Adjusted basis $232.9 $138.4 $17.2 $13.5 $10.5 $63.3 $1.43 44,122
               
Quarter Ended – December 31, 2013
    Net income Shares used in
(loss) attributable Diluted calculation of
Cost Selling, Restructuring Loss on to common earnings per GAAP and
of general and Research and and other Interest extinguish- shareholders share available adjusted
goods administrative Development impairment expense, ment of Income from continuing to common earnings per
sold expenses expenses charges net debt taxes operations shareholders share
GAAP Basis $225.6 $143.8 $17.9 $9.2 $14.2 $4.6 $35.1 $0.78 45,033
Adjustments

Restructuring and other impairment charges

9.2 1.7 7.6 $0.17
Losses and other charges (A) 0.3 8.2 0.5 2.5 6.5 $0.14

Amortization of debt discount on convertible notes

2.9 1.1 1.8 $0.04
Intangible amortization expense 13.5 4.5 9.0 $0.20
Loss on extinguishment of debt 0.0 0.0 $0.00

Tax adjustment (B)

1.5 (1.5) ($0.03)

Shares due to Teleflex under note hedge (C)

$0.06 (2,165)
Adjusted basis $225.3 $122.0 $17.3 $11.3 $15.8 $58.5 $1.36 42,868
 

(A) In 2014, losses and other charges include approximately $1.6 million, net of tax, or $0.03 per share, related to acquisition and integration costs, and charges related to facility consolidations; and approximately $0.4 million, net of tax, or $0.01 per share, related to a litigation verdict against the Company with respect to a non-operating joint venture. In 2013, losses and other charges include approximately $4.5 million, net of tax, or $0.10 per share, related to acquisition and integration costs; approximately $1.9 million, net of tax, or $0.04 per share, related to the establishment of a litigation reserve; reversals included approximately $0.1 million, net of tax, or $0.00 per share, related to the reversal of contingent consideration liabilities.

(B) The tax adjustment represents a net benefit resulting from the resolution of, or the expiration of statute of limitations with respect to various prior years’ U.S. federal, state and foreign tax matters.

(C) Adjusted diluted shares are calculated by giving effect to the anti-dilutive impact of the Company’s convertible note hedge agreements, which reduce the potential economic dilution that otherwise would occur upon conversion of our senior subordinated convertible notes. Under GAAP, the anti-dilutive impact of the convertible note hedge agreements is not reflected in diluted shares.

             
RECONCILIATION OF CONSOLIDATED STATEMENT OF INCOME ITEMS
Dollars in millions, except per share amounts
 
Twelve Months Ended – December 31, 2014
      Net income Shares used in
(loss) attributable Diluted calculation of
Cost Selling, Restructuring Loss on to common earnings per GAAP and
of general and Research and and other Interest extinguish- shareholders share available adjusted
goods administrative development impairment expense, ment of Income from continuing to common earnings per
sold expenses expenses charges net debt taxes operations shareholders share
GAAP Basis $897.4 $578.7 $61.0 $17.9 $64.8 $28.7 $190.4 $4.10 46,470
Adjustments

Restructuring and other impairment charges

17.9 5.2 12.7 $0.27

Losses and other charges (A)

4.9 (1.1) 0.1 3.1 0.9 $0.02

Amortization of debt discount on convertible notes

12.2 4.5 7.7 $0.17
Intangible amortization expense 60.9 17.4 43.5 $0.94
Tax adjustment (B) 4.0 (4.0) ($0.09)

Shares due to Teleflex under note hedge (C)

$0.33 (2,738)
Adjusted basis $892.5 $518.8 $60.9 $52.5 $62.8 $251.2 $5.74 43,732
             
Twelve Months Ended – December 31, 2013
      Net income Shares used in
(loss) attributable Diluted calculation of
Cost Selling, Restructuring Loss on to common earnings per GAAP and
of general and Research and and other Interest extinguish- shareholders share available adjusted
goods administrative Development impairment expense, ment of Income from continuing to common earnings per
sold expenses expenses charges net debt taxes operations shareholders share
GAAP Basis $857.3 $502.2 $65.0 $38.5 $56.3 $1.3 $23.5 $151.3 $3.46 43,693
Adjustments

Restructuring and other impairment charges

38.5 7.8 30.7 $0.71
Losses and other charges (A) 2.3 1.5 0.5 4.9 (0.6) ($0.02)

Amortization of debt discount on convertible notes

11.3 4.1 7.2 $0.16
Intangible amortization expense 50.6 17.3 33.4 $0.76
Loss on extinguishment of debt 1.3 0.5 0.8 $0.02

Tax adjustment (B)

11.1 (11.1) ($0.25)

Shares due to Teleflex under note hedge (C)

$0.19 (1,620)
Adjusted basis $855.1 $450.1 $64.5 $45.0 $69.2 $211.6 $5.03 42,073
 

(A) In 2014, losses and other charges include approximately $8.6 million, net of tax, or $0.19 per share, related to acquisition and integration costs, and charges related to facility consolidations; and approximately $0.4 million, net of tax, or $0.01 per share, related to a litigation verdict against the Company with respect to a non-operating joint venture; reversals include approximately ($8.1) million, net of tax, or ($0.18) per share, related to the reversal of contingent consideration liabilities. In 2013, losses and other charges include approximately $0.8 million, net of tax, or $0.02 per share, related to a litigation verdict against the Company with respect to a non-operating joint venture; $9.5 million, net of tax, or $0.21 per share, related to acquisition and integration costs; and approximately $1.9 million, net of tax, or $0.04 per share, related to the establishment of a litigation reserve; reversals include approximately ($12.4) million, net of tax, or ($0.28) per share, related to the reversal of contingent consideration liabilities and ($0.4) million, net of tax, or ($0.01) per share, related to reversal of a reserve with respect to a previously announced stock keeping unit (“SKU”) rationalization charge.

(B) The tax adjustment represents a net benefit resulting from the resolution of, or the expiration of statute of limitations with respect to various prior years’ U.S. federal, state and foreign tax matters.

(C) Adjusted diluted shares are calculated by giving effect to the anti-dilutive impact of the Company’s convertible note hedge agreements, which reduce the potential economic dilution that otherwise would occur upon conversion of our senior subordinated convertible notes. Under GAAP, the anti-dilutive impact of the convertible note hedge agreements is not reflected in diluted shares.

RECONCILIATION OF NET DEBT OBLIGATIONS

   
December 31, 2014 December 31, 2013
(Dollars in thousands)
 
Note payable and current portion of long term borrowings $ 368,401 $ 356,287
 
Long term borrowings 700,000 930,000
 
Unamortized debt discount 36,197 48,413
 
Total debt obligations 1,104,598 1,334,700
 
Less: cash and cash equivalents 303,236 431,984
 
Net debt obligations $ 801,362 $ 902,716
 

ABOUT TELEFLEX INCORPORATED

Teleflex is a leading global provider of specialty medical devices for a range of procedures in critical care and surgery. Our mission is to provide solutions that enable healthcare providers to improve outcomes and enhance patient and provider safety. Headquartered in Wayne, PA, Teleflex employs approximately 11,700 people and serves healthcare providers worldwide. For additional information about Teleflex please refer to www.teleflex.com.

CAUTION CONCERNING FORWARD-LOOKING INFORMATION

This press release contains forward-looking statements, including, but not limited to, forecasted 2015 GAAP and constant currency revenue growth and GAAP and adjusted diluted earnings per share, as well as expectations of significant operating leverage in 2015. Actual results could differ materially from those in the 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 sales growth, price increases or cost reductions; changes in the reimbursement practices of third party payors; our ability to realize efficiencies and to execute on our strategic initiatives; changes in material costs and surcharges; market acceptance and unanticipated difficulties in connection with the introduction of new products and product line extensions; product recalls; unanticipated difficulties in connection with the consolidation of manufacturing and administrative functions, including as a result of difficulties with various employees, labor representatives or regulators; the loss of skilled employees in connection with such initiatives; unanticipated difficulties, expenditures and delays in complying with government regulations applicable to our businesses; the impact of government healthcare reform legislation; our ability to meet our debt obligations; changes in general and international economic conditions; and other factors described or incorporated in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2014.

 
TELEFLEX INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 
Three Months Ended

December 31,
2014

 

December 31,
2013

(Dollars and shares in thousands,
except per share)

 
Net revenues $ 476,008 $ 450,539
Cost of goods sold   234,993   225,596
Gross profit 241,015 224,943
Selling, general and administrative expenses 153,265 143,756
Research and development expenses 17,237 17,876
Restructuring and other impairment charges   1,358   9,247
Income from continuing operations before interest and taxes 69,155 54,064
Interest expense 16,808 14,339
Interest income   (212 )   (166 )
Income from continuing operations before taxes 52,559 39,891
Taxes on income from continuing operations   426   4,589
Income from continuing operations   52,133   35,302
Loss from discontinued operations before taxes (1,541 ) (459 )
Tax benefit on loss from discontinued operations   (353 )   (223 )
Loss from discontinued operations   (1,188 )   (236 )
Net income 50,945 35,066

Less: Income from continuing operations attributable to noncontrolling interest

  307   238
Net income attributable to common shareholders $ 50,638 $ 34,828
 
Earnings per share available to common shareholders:
Basic:
Income from continuing operations $ 1.25 $ 0.85
Loss from discontinued operations   (0.03 )  
Net income $ 1.22 $ 0.85
 
Diluted:
Income from continuing operations $ 1.10 $ 0.78
Loss from discontinued operations   (0.03 )   (0.01 )
Net income $ 1.07 $ 0.77
 
Dividends per share $ 0.34 $ 0.34
 
Weighted average common shares outstanding:
Basic 41,425 41,161
Diluted 47,112 45,033
 
Amounts attributable to common shareholders:
Income from continuing operations, net of tax $ 51,826 $ 35,064
Loss from discontinued operations, net of tax   (1,188 )   (236 )
Net income $ 50,638 $ 34,828
 

TELEFLEX INCORPORATED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 
Year Ended

December 31,
2014

 

December 31,
2013

(Dollars and shares in thousands,
except per share)

 
Net revenues $ 1,839,832 $ 1,696,271
Cost of goods sold   897,404   857,326
Gross profit 942,428 838,945
Selling, general and administrative expenses 578,657 502,187
Research and development expenses 61,040 65,045
Restructuring and other impairment charges   17,869   38,452
Income from continuing operations before interest and taxes 284,862 233,261
Interest expense 65,458 56,905
Interest income (706 ) (624 )
Loss on extinguishments of debt     1,250
Income from continuing operations before taxes 220,110 175,730
Taxes on income from continuing operations   28,650   23,547
Income from continuing operations   191,460   152,183
Loss from discontinued operations before taxes (3,407 ) (2,205 )
Tax benefit on loss from discontinued operations   (698 )   (1,770 )
Loss from discontinued operations   (2,709 )   (435 )
Net income 188,751 151,748

Less: Income from continuing operations attributable to noncontrolling interest

  1,072   867
Net income attributable to common shareholders $ 187,679 $ 150,881
 
Earnings per share available to common shareholders:
Basic:
Income from continuing operations $ 4.60 $ 3.68
Loss from discontinued operations   (0.06 )   (0.01 )
Net income $ 4.54 $ 3.67
 
Diluted:
Income from continuing operations $ 4.10 $ 3.46
Loss from discontinued operations   (0.06 )   (0.01 )
Net income $ 4.04 $ 3.45
 
Dividends per share $ 1.36 $ 1.36
 
Weighted average common shares outstanding:
Basic 41,366 41,105
Diluted 46,470 43,693
 
Amounts attributable to common shareholders:
Income from continuing operations, net of tax $ 190,388 $ 151,316
Loss from discontinued operations, net of tax   (2,709 )   (435 )
Net income $ 187,679 $ 150,881
 
 
TELEFLEX INCORPORATED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
 

December 31,
2014

December 31,
2013

(Dollars in thousands)
ASSETS
Current assets
Cash and cash equivalents $ 303,236 $ 431,984
Accounts receivable, net 273,704 295,290
Inventories, net 335,593 333,621
Prepaid expenses and other current assets 35,697 39,810
Prepaid taxes 40,256 36,504
Deferred tax assets 57,301 52,917
Assets held for sale   7,422   10,428
Total current assets 1,053,209 1,200,554
Property, plant and equipment, net 317,435 325,900
Goodwill 1,323,553 1,354,203
Intangible assets, net 1,216,720 1,255,597
Investments in affiliates 1,150 1,715
Deferred tax assets 1,178 943
Other assets   64,010   70,095
Total assets $ 3,977,255 $ 4,209,007
LIABILITIES AND EQUITY
Current liabilities
Current borrowings $ 368,401 $ 356,287
Accounts payable 64,100 71,967
Accrued expenses 72,383 74,868
Current portion of contingent consideration 11,276 4,131
Payroll and benefit-related liabilities 85,442 73,090
Accrued interest 9,169 8,725
Income taxes payable 13,768 23,821
Other current liabilities   10,360   22,231
Total current liabilities 634,899 635,120
Long-term borrowings 700,000 930,000
Deferred tax liabilities 451,541 514,715
Pension and postretirement benefit liabilities 167,241 109,498
Noncurrent liability for uncertain tax provisions 50,884 55,152
Other liabilities   58,991   48,506
Total liabilities 2,063,556 2,292,991
Commitments and contingencies
Common shareholders’ equity
Common shares, $1 par value Issued: 2014 – 43,420 shares; 2013 – 43,243 shares 43,420 43,243
Additional paid-in capital 422,394 409,338
Retained earnings 1,827,845 1,696,424
Accumulated other comprehensive loss   (260,895 )   (110,855 )
2,032,764 2,038,150
Less: Treasury stock, at cost   121,455   124,623
Total common shareholders’ equity   1,911,309   1,913,527
Noncontrolling interest   2,390   2,489
Total equity   1,913,699   1,916,016
Total liabilities and equity $ 3,977,255 $ 4,209,007
 
 
TELEFLEX INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
Year Ended

December 31,
2014

 

December 31,
2013

(Dollars in thousands)
Cash Flows from Operating Activities of Continuing Operations:
Net income $ 188,751 $ 151,748
Adjustments to reconcile net income to net cash provided by operating activities:
Loss from discontinued operations 2,709 435
Depreciation expense 50,207 42,368
Amortization expense of intangible assets 60,926 50,608
Amortization expense of deferred financing costs and debt discount 15,897 14,959
Loss on extinguishments of debt 1,250
Impairment of long-lived assets 3,460
Changes in contingent consideration (7,418 ) (12,642 )
Stock-based compensation 12,227 11,871
Deferred income taxes, net (14,153 ) (10,182 )
Other (8,968 ) (1,319 )

Changes in operating assets and liabilities, net of effects of acquisitions and disposals:

Accounts receivable 9,394 (1,294 )
Inventories (15,531 ) (8,931 )
Prepaid expenses and other current assets 1,422 (5,926 )
Accounts payable and accrued expenses 9,818 2,001
Income taxes receivable and payable, net   (15,040 )   (7,107 )
Net cash provided by operating activities from continuing operations   290,241   231,299
 
Cash Flows from Investing Activities of Continuing Operations:
Expenditures for property, plant and equipment (67,571 ) (63,580 )
Payments for businesses and intangibles acquired, net of cash acquired (45,777 ) (309,008 )
Proceeds from sales of businesses and assets, net of cash sold 5,251
Investment in affiliates   (40 )   (50 )
Net cash used in investing activities from continuing operations   (108,137 )   (372,638 )
 
Cash Flows from Financing Activities of Continuing Operations:
Proceeds from long-term borrowings 250,000 680,000
Repayment of long-term borrowings (480,102 ) (375,000 )
Debt extinguishment, issuance and amendment fees (4,494 ) (6,400 )
Proceeds from share based compensation plans and the related tax impacts 4,245 6,181
Payments to noncontrolling interest shareholders (1,094 ) (736 )
Payments for contingent consideration (16,958 )
Dividends   (56,258 )   (55,917 )

Net cash (used in) provided by financing activities from continuing operations

  (287,703 )   231,170
 
Cash Flows from Discontinued Operations:
Net cash used in operating activities   (3,676 )   (3,327 )
Net cash used in discontinued operations   (3,676 )   (3,327 )
 
Effect of exchange rate changes on cash and cash equivalents   (19,473 )   8,441
Net (decrease) increase in cash and cash equivalents (128,748 ) 94,945
Cash and cash equivalents at the beginning of the period   431,984   337,039
Cash and cash equivalents at the end of the period $ 303,236 $ 431,984
 

Contacts

Teleflex Incorporated
Jake Elguicze
Treasurer and Vice President of Investor Relations
610-948-2836

Release Summary

Teleflex Reports Fourth Quarter and Full Year 2014 Results; Provides 2015 Guidance

Contacts

Teleflex Incorporated
Jake Elguicze
Treasurer and Vice President of Investor Relations
610-948-2836