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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 March 27, 1994
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from -------- to --------
Commission File Number 1-5353
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 -----
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 March 27, 1994
- ----------------------------- -------------------------------
Common Stock, $1.00 Par Value 17,140,450
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Teleflex Incorporated
Condensed Consolidated Balance Sheet
(Dollars in Thousands)
Assets
Mar. 27, Dec. 26,
1994 1993
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Current assets
Cash and cash equivalents $4,377 $11,255
Accounts receivable less allowance for
doubtful accounts 167,611 143,489
Inventories
Raw materials and manufactured parts 69,387 67,979
Work-in-process and finished goods 87,597 91,308
Prepaid expenses 7,826 8,218
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336,798 322,249
Property, plant and equipment, at cost,
less accumulated depreciation 258,358 261,421
Investments in affiliates 6,587 5,297
Intangibles and other assets 50,865 51,609
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$652,608 $640,576
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Liabilities and shareholders' equity
Current liabilities
Current portion of borrowings and
demand loans $70,064 $70,739
Accounts payable and accrued expenses 78,149 77,259
Estimated income taxes payable 6,009 2,855
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154,222 150,853
Long-term borrowings 182,301 183,504
Deferred income taxes and other 36,454 36,429
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372,977 370,786
Shareholders' equity 279,631 269,790
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$652,608 $640,576
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Teleflex Incorporated
Condensed Consolidated Statement of Income
(Dollars in Thousands Except for Per Share Amounts)
Three Months Ended
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Mar. 27, Mar. 28,
1994 1993
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Revenues $191,084 $157,575
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Cost of sales 132,576 108,318
Operating expenses 38,497 32,640
Interest expense 4,681 3,443
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175,754 144,401
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Income before taxes 15,330 13,174
Provision for taxes on income 5,365 4,611
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Net income $9,965 $8,563
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Earnings per share $0.57 $0.50
Dividends per share $0.115 $0.105
Average number of common and common
equivalent shares outstanding 17,512 17,195
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Teleflex Incorporated
Condensed Consolidated Statement of Cash Flows
(Dollars in Thousands)
Mar. 27 Mar. 28,
1994 1993
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Cash flows from operating activities:
Net income $9,965 $8,563
Adjustments to reconcile net income to cash
flows from operating activities:
Depreciation and amortization 7,936 6,392
(Increase) in accounts receivable (23,794) (6,113)
Decrease in inventory 2,650 4,036
(Increase) decrease in prepaid expenses 392 (567)
(Decrease) increase in accounts payable
and accrued expenses 708 (1,036)
Increase in estimated income
taxes payable 3,153 801
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1,010 12,076
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Cash flows from financing activities:
Proceeds from new borrowings 10,000
Reduction in long-term borrowings (1,474) (4,442)
Increase (decrease) in current borrowings
and demand loans (349) 6,428
Proceeds from stock option transactions
and distribution of treasury shares 1,262 155
Dividends (1,990) (1,773)
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(2,551) 10,368
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Cash flows from investing activities:
Expenditures for plant assets 4,104 4,836
Payments for businesses acquired 37,065
Investments in affiliates 1,370 370
Other (137) 690
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5,337 42,961
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Net (decrease) in cash
and cash equivalents (6,878) (20,517)
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 $4,377 $15,814
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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 March 27, 1994 and March 28, 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 March 27, 1994, 1,277,990 shares of common stock were reserved for
issuance under the Company's stock compensation plans.
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Management's Analysis of Quarterly Financial Data
Revenues increased 21% to $191.1 million in the first quarter of 1994
compared to $157.6 million in 1993, resulting from gains in all three segments:
Commercial, Medical and Aerospace. Improved market conditions in the
Automotive, Marine and Industrial product lines and new marine electronics
products sales resulted in the Commercial Segment increase. Medical Segment
revenues increased primarily from the acquisition of Edward Weck Incorporated
in December 1993. Aerospace Segment revenues increased solely from the
acquisition of Mal Tool & Engineering in March 1993.
Overall gross product margin as a percentage of sales declined from
31.3% in 1993 to 30.6% in 1994 due to declines in Aerospace Segment margins
which were offset partially by increases in the Commercial Segment. Operating
expenses declined to 20.1% of sales in 1994 from 20.7% of sales in 1993 due to
decreases, as a percentage of sales in the Commercial Segment offset by
increases in the Aerospace and Medical Segments.
Working capital increased from $171.4 million at December 26, 1993 to
$182.6 million at March 27, 1994 due primarily to increased accounts receivable
associated with the revenue gain. The ratio of current assets to current
liabilities was 2.2 to 1 at March 27, 1994 compared to 2.1 to 1 at December 26,
1993. Cash provided by operations decreased during the first quarter of 1994
compared with 1993 due principally to growth in accounts receivable related to
volume.
Long-term borrowings of $182.3 million remained relatively constant
with the level at December 26, 1993. Long-term debt to total capitalization
was approximately 40% at both December 26, 1993 and at March 27, 1994. The
decline in cash and cash equivalents resulted from the cash used to finance
working capital, primarily accounts receivable.
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Teleflex Incorporated
Part II Other Information
Item 6. Exhibits and Reports on Form 8-K
(A) Reports on Form 8-K.
A Form 8-K was filed on January 5,
1994, as amended February 24, 1994 in
connection with the acquisition of
certain assets and the assumption of
certain liabilities of Edward Weck
Incorporated.
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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)
May 10, 1994
