In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), this earnings announcement also contains non-GAAP financial measures. The reasons that we use these non-GAAP financial measures, a reconciliation of these measures to the most directly comparable GAAP measures, and other information relating to these measures are included following our GAAP financial statements.
Forward-Looking Statements Cautionary Notice
This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, relating to earnings, growth opportunities, acquisitions and divestitures, product sales, capital expenditures, pension matters, stock option compensation expense, interest expense, taxes, exchange rate fluctuations, cost reductions, facility consolidation costs, severance expenses and strategic plans. Forward-looking statements are generally accompanied by words such as “estimate”, “project”, “predict”, “believes” or “expect”, that convey the uncertainty of future events or outcomes. All statements made in this press release that are not historical in nature should be considered forward looking.
Actual results could differ materially from these forward-looking statements. Many factors could change the anticipated results, including: disruptions in the global economy; changes in demand for products sold to the defense electronics, instrumentation, digital imaging, energy exploration and production, commercial aviation, semiconductor and communications markets; funding, continuation and award of government programs; cuts to defense spending resulting from existing and future deficit reduction measures; risks associated with our acquisition of e2v, including failure to successfully integrate the business; impacts from the United Kingdom’s decision to exit the European Union; uncertainties related to the policies of the new U.S. Presidential Administration; and threats to the security of our confidential and proprietary information, including cyber security threats. Continued lower oil and natural gas prices, as well as instability in the Middle East or other oil producing regions, and new regulations or restrictions relating to energy production, including with respect to hydraulic fracturing, could further negatively affect the company’s businesses that supply the oil and gas industry. Increasing fuel costs could negatively affect the markets of our commercial aviation businesses. In addition, financial market fluctuations affect the value of the company’s pension assets.
Changes in the policies of U.S. and foreign governments, including economic sanctions, could result, over time, in reductions or realignment in defense or other government spending and further changes in programs in which the company participates.
While the company’s growth strategy includes possible acquisitions, we cannot provide any assurance as to when, if or on what terms any acquisitions will be made. Acquisitions involve various inherent risks, such as, among others, our ability to integrate acquired businesses, retain customers and achieve identified financial and operating synergies. There are additional risks associated with acquiring, owning and operating businesses internationally, including those arising from U.S. and foreign policy changes and exchange rate fluctuations.
While the company believes its internal and disclosure control systems are effective, there are inherent limitations in all control systems, and misstatements due to error or fraud may occur and may not be detected.
Readers are urged to read the company’s periodic reports filed with the Securities and Exchange Commission (“SEC”) for a more complete description of the company, its businesses, its strategies and the various risks that the company faces. Various risks are identified in Teledyne’s 2016 Annual Report on Form 10-K and subsequent Form 10-Q. The company assumes no duty to publicly update or revise any forward-looking statements, whether as a result of new information or otherwise.
A live webcast of Teledyne’s second quarter earnings conference call will be held at 11:00 a.m. (Eastern) on Thursday, August 3, 2017. To access the call, go to www.teledyne.com approximately ten minutes before the scheduled start time. A replay will also be available for one month starting at 12:00 p.m. (Eastern) on Thursday, August 3, 2017.
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TELEDYNE TECHNOLOGIES INCORPORATED CONSOLIDATED STATEMENTS OF INCOME FOR THE SECOND QUARTER AND SIX MONTHS ENDED JULY 2, 2017 AND JULY 3, 2016 (Unaudited – in millions, except per share amounts) |
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Second Quarter |
Second Quarter |
Six Months |
Six Months |
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| 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||
| Net sales | $ | 671.1 | $ | 539.7 | $ | 1,237.2 | $ | 1,070.2 | ||||||||||||||||
| Costs and expenses: | ||||||||||||||||||||||||
| Costs of sales (a) | 418.3 | 336.2 | 772.5 | 661.0 | ||||||||||||||||||||
| Selling, general and administrative expenses (a) | 166.6 | 149.9 | 320.4 | 294.7 | ||||||||||||||||||||
| Total costs and expenses | 584.9 | 486.1 | 1,092.9 | 955.7 | ||||||||||||||||||||
| Operating income | 86.2 | 53.6 | 144.3 | 114.5 | ||||||||||||||||||||
| Interest and debt expense, net (a) | (9.1 | ) | (5.9 | ) | (17.3 | ) | (11.6 | ) | ||||||||||||||||
| Other income/(expense), net (a) | (0.7 | ) | 17.2 | (10.0 | ) | 15.9 | ||||||||||||||||||
| Income before income taxes | 76.4 | 64.9 | 117.0 | 118.8 | ||||||||||||||||||||
| Provision for income taxes | 16.3 | 18.0 | 26.4 | 32.9 | ||||||||||||||||||||
| Net income | $ | 60.1 | $ | 46.9 | $ | 90.6 | $ | 85.9 | ||||||||||||||||
| Diluted earnings per common share | $ | 1.66 | $ | 1.33 | $ | 2.50 | $ | 2.44 | ||||||||||||||||
| Weighted average diluted common shares outstanding | 36.2 | 35.3 | 36.2 | 35.2 | ||||||||||||||||||||
| (a) | The second quarter of 2017 includes pretax charges of $4.0 million related to the acquisition of e2v technologies plc, of which $2.7 million was recorded to cost of sales and $1.3 million was recorded to selling, general and administrative expenses. The first six months of 2017 includes pretax charges of $25.2 million related to the acquisition of e2v technologies plc, of which $4.1 million was recorded to cost of sales, $12.8 million was recorded to selling, general and administrative expenses, $2.3 million was recorded to interest expense and $6.0 million was recorded as other expense. The second quarter and first six months of 2016 include a gain of $17.9 million on the sale of a former operating facility recorded as other income. |
