<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 26, 1994
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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Commission File Number 1-5353
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TELEFLEX INCORPORATED
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(Exact Name of Registrant as Specified in its Charter)
Delaware 23-1147939
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(State of Incorporation) (IRS Employer Identification Number)
630 West Germantown Pike, Suite 450
Plymouth Meeting, PA 19462
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(Address of Principal Executive Office) (Zip Code)
(610) 834-6301
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(Telephone Number Including Area Code)
None
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(Former Name, Former Address and Former Fiscal Year,
If Changed Since Last Report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
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Indicate the number of shares outstanding of each of the issuer's classes of
Common Stock as of the latest practicable date.
Class Outstanding at June 26, 1994
- - ----------------------------- ----------------------------
Common Stock, $1.00 Par Value 17,178,035
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Teleflex Incorporated
Condensed Consolidated Balance Sheet
(Dollars in Thousands)
<TABLE>
<CAPTION>
Assets
June 26, Dec. 26,
1994 1993
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<S> <C> <C>
Current assets
Cash and cash equivalents $17,025 $11,255
Accounts receivable less allowance for 175,310 143,489
doubtful accounts
Inventories
Raw materials and manufactured parts 71,974 67,979
Work-in-process and finished goods 86,076 91,308
Prepaid expenses 7,615 8,218
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358,000 322,249
Property, plant and equipment, at cost,
less accumulated depreciation 263,470 261,421
Investments in affiliates 7,132 5,297
Intangibles and other assets 50,130 51,609
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$678,732 $640,576
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</TABLE>
Liabilities and shareholders' equity
<TABLE>
<S> <C> <C>
Current liabilities
Current portion of borrowings and
demand loans $70,080 $70,739
Accounts payable and accrued expenses 86,284 77,259
Estimated income taxes payable 4,539 2,855
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160,903 150,853
Long-term borrowings 189,229 183,504
Deferred income taxes and other 37,021 36,429
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387,153 370,786
Shareholders' equity 291,579 269,790
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$678,732 $640,576
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</TABLE>
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Teleflex Incorporated
Condensed Consolidated Statement of Income
(Dollars in Thousands Except for Per Share Amounts)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
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June 26, June 27, June 26, June 27,
1994 1993 1994 1993
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues $209,456 $174,921 $400,540 $332,496
-------- -------- -------- --------
Cost of sales 144,691 120,500 277,267 228,818
Operating expenses 42,987 36,456 81,484 69,096
Interest expense 4,584 3,715 9,265 7,158
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192,262 160,671 368,016 305,072
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Income before taxes 17,194 14,250 32,524 27,424
Provision for taxes on income 6,018 4,987 11,383 9,598
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Net income $11,176 $9,263 $21,141 $17,826
======== ======== ======== ========
Earnings per share $0.64 $0.54 $1.21 $1.04
Dividends per share $0.135 $0.115 $0.250 $0.220
Average number of common and
common equivalent shares
outstanding 17,474 17,220 17,493 17,207
</TABLE>
<PAGE> 4
Teleflex Incorporated
Condensed Consolidated Statement of Cash Flows
(Dollars in Thousands)
<TABLE>
<CAPTION>
Six Months Ended
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June 26, June 27,
1994 1993
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<S> <C> <C>
Cash flows from operating activities:
Net income $21,141 $17,826
Adjustments to reconcile net income
to cash flows from operating
activities:
Depreciation and amortization 16,226 13,731
(Increase) in accounts receivable (26,205) (5,408)
Decrease in inventory 5,809 6,712
Decrease (increase) in prepaid expenses 603 (441)
Increase in accounts payable
and accrued expenses 6,582 5,234
Increase (decrease) in estimated income
taxes payable 1,430 (4,135)
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25,586 33,519
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Cash flows from financing activities:
Proceeds from new borrowings 10,667
Reduction in long-term borrowings (1,222) (3,221)
(Decrease) increase in current borrowings
and demand loans (2,090) 520
Proceeds from stock compensation plans
and distribution of treasury shares 2,359 1,628
Dividends (4,286) (3,722)
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(5,239) 5,872
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Cash flows from investing activities:
Expenditures for plant assets 10,293 10,703
Payments for businesses acquired 1,564 37,065
Investments in affiliates 2,109 1,395
Other 611 1,586
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14,577 50,749
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Net increase (decrease) in cash
and cash equivalents 5,770 (11,358)
Cash and cash equivalents at the
beginning of the period 11,255 36,331
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Cash and cash equivalents at the
end of the period $17,025 $24,973
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</TABLE>
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Teleflex Incorporated
Notes to Condensed Consolidated Financial Statements
Note 1 The accompanying unaudited condensed consolidated financial statements
for the three months ended June 26, 1994 and June 27, 1993 contain all
adjustments, consisting only of normal recurring adjustments, which
in the opinion of management are necessary to present fairly the
financial position, results of operations and cash flows for the
periods then ended in accordance with the current requirements for
Form 10-Q.
Note 2 At June 26, 1994, 1,262,234 shares of common stock were
reserved for issuance under the Company's stock compensation plans.
<PAGE> 6
Management's Analysis of Quarterly Financial Data
Revenues increased 20% to $209.5 million in the second quarter of 1994
compared to $174.9 million in 1993. The increase was the result of gains in
the Commercial Products and Medical Products segments which offset a decline in
Aerospace Products and Services Segment sales. The Commercial Segment increase
was brought about by improved market conditions for the Automotive, Marine and
Industrial product lines and increased sales of new marine electronics
products. Medical Segment sales increased primarily from the acquisition of
Edward Weck Incorporated in December 1993. The decline in Aerospace Segment
sales was attributable to continued weakness in the aerospace controls and
commercial aviation markets.
Overall gross product margin as a percentage of sales declined slightly
from 31.1% in 1993 to 30.9% in 1994 due to a decline in the Aerospace Segment
which was nearly offset by increases in Medical and Commercial Segment margins.
Operating expenses decreased to 20.5% of sales in 1994 from 20.8% of sales in
1993 resulting generally from a decline in the Commercial Segment while the
Medical Segment remained unchanged.
Working capital increased from $171.4 million at December 26, 1993 to
$197.1 million at June 26, 1994 due primarily to the increase in accounts
receivable associated with the increase in revenues. The ratio of current
assets to current liabilities was 2.2 to 1 at June 26, 1994 compared to 2.1 to
1 at December 26, 1993. Cash provided by operations decreased during the
second quarter of 1994 compared with 1993 due to the volume-related increase in
accounts receivable.
Long-term borrowings increased from $183.5 million at December 26, 1993 to
$189.2 million at June 26, 1994. The increase resulted principally from the
effects of translation on the Company's foreign currency denominated long-term
debt. Long-term debt to total capitalization was approximately 40% at both
December 26, 1993 and at June 26, 1994.
<PAGE> 7
Teleflex Incorporated
Part II Other Information
Item 6. Exhibits and Reports on Form 8-K
(A) Reports on Form 8-K.
No reports on Form 8-K were filed during the quarter.
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Teleflex Incorporated
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TELEFLEX INCORPORATED
/s/ Harold L. Zuber, Jr.
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Harold L. Zuber, Jr.
(Principal Financial and
Accounting Officer)
/s/ Steve K. Chance
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Steven K. Chance
(Vice President)
August 11, 1994
