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 2017 Annual Report on Form 10-K. 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 first quarter earnings conference call will be held at 11:00 a.m. (Eastern) on Thursday, May 3, 2018. 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, May 3, 2018.
| TELEDYNE TECHNOLOGIES INCORPORATED | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| FOR THE THREE MONTHS ENDED | ||||||||
| APRIL 1, 2018 AND APRIL 2, 2017 | ||||||||
|
(Unaudited - in millions, except per share amounts) |
||||||||
|
First
|
First
|
|||||||
| 2018 | 2017(a) | |||||||
| Net sales | $ | 695.6 | $ | 566.1 | ||||
| Costs and expenses: | ||||||||
| Costs of sales (b) | 438.2 | 357.0 | ||||||
| Selling, general and administrative expenses (b) | 169.0 | 154.3 | ||||||
| Total costs and expenses | 607.2 | 511.3 | ||||||
| Operating income | 88.4 | 54.8 | ||||||
| Interest and debt expense, net (b) | (7.1 | ) | (8.2 | ) | ||||
| Non-service retirement benefit income | 3.4 | 3.3 | ||||||
| Other expense, net (b) | (2.5 | ) | (9.3 | ) | ||||
| Income before income taxes | 82.2 | 40.6 | ||||||
| Provision for income taxes | 15.7 | 10.1 | ||||||
| Net income | $ | 66.5 | $ | 30.5 | ||||
| Diluted earnings per common share | $ | 1.81 | $ | 0.84 | ||||
| Weighted average diluted common shares outstanding | 36.8 | 36.1 | ||||||
| (a) | The 2017 period has been adjusted to reflect the adoption of ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”. | |
| (b) | The first quarter of 2017 includes pretax charges of $21.2 million in acquisition costs related to the acquisition of e2v technologies plc, of which $1.4 million was recorded to cost of sales, $11.5 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. | |
| TELEDYNE TECHNOLOGIES INCORPORATED | ||||||||||||
| SUMMARY OF SEGMENT NET SALES AND OPERATING INCOME | ||||||||||||
| FOR THE THREE MONTHS ENDED | ||||||||||||
| APRIL 1, 2018 AND APRIL 2, 2017 | ||||||||||||
|
(Unaudited - in millions) |
||||||||||||
|
|
|
|
||||||||||
|
First
|
First
|
|||||||||||
|
2018 |
2017(a) |
%
|
||||||||||
| Net sales: | ||||||||||||
| Instrumentation | $ | 239.0 | $ | 232.8 | 2.7 |
|
% |
|||||
| Digital Imaging | 206.4 | 113.8 | 81.4 |
|
% |
|||||||
| Aerospace and Defense Electronics | 178.2 | 151.9 | 17.3 |
|
% |
|||||||
| Engineered Systems | 72.0 | 67.6 | 6.5 |
|
% |
|||||||
| Total net sales | $ | 695.6 | $ | 566.1 | 22.9 |
|
% |
|||||
| Operating income: | ||||||||||||
| Instrumentation | $ | 27.8 | $ | 30.2 | (7.9 |
) |
% |
|||||
| Digital Imaging (b) | 34.6 | 15.1 | 129.1 |
|
% |
|||||||
| Aerospace and Defense Electronics (b) | 31.7 | 24.8 | 27.8 |
|
% |
|||||||
| Engineered Systems | 7.2 | 7.4 | (2.7 |
) |
% |
|||||||
| Corporate expense (b) | (12.9 | ) | (22.7 | ) | (43.2 |
) |
% |
|||||
| Operating income | 88.4 | 54.8 | 61.3 |
|
% |
|||||||
| Interest and debt expense, net (b) | (7.1 | ) | (8.2 | ) | (13.4 |
) |
% |
|||||
| Non-service retirement benefit income | 3.4 | 3.3 | 3.0 |
|
% |
|||||||
| Other expense, net (b) | (2.5 | ) | (9.3 | ) | (73.1 |
) |
% |
|||||
| Income before income taxes | 82.2 | 40.6 | 102.5 |
|
% |
|||||||
| Provision for income taxes | 15.7 | 10.1 | 55.4 |
|
% |
|||||||
| Net income | $ | 66.5 | $ | 30.5 | 118.0 |
|
% |
|||||
| (a) | The 2017 period has been adjusted to reflect the adoption of ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”. | |
| (b) | The first quarter of 2017 includes pretax charges of $21.2 million in acquisition costs related to the acquisition of e2v technologies plc, of which $2.5 million was recorded in the Digital Imaging segment, $10.4 million was recorded to corporate expense, $2.3 million was recorded to interest expense and $6.0 million was recorded as other expense. | |
| TELEDYNE TECHNOLOGIES INCORPORATED | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
|
(Unaudited – in millions) |
||||||
| April 1, 2018 | December 31, 2017 | |||||
| ASSETS | ||||||
| Cash | $ | 79.9 | $ | 70.9 | ||
| Accounts receivable, net | 534.8 | 478.1 | ||||
| Inventories, net | 381.8 | 400.2 | ||||
| Prepaid expenses and other current assets | 63.7 | 62.7 | ||||
| Total current assets | 1,060.2 | 1,011.9 | ||||
| Property, plant and equipment, net | 441.9 | 442.8 | ||||
| Goodwill and acquired intangible assets, net | 2,193.3 | 2,175.6 | ||||
| Prepaid pension asset | 137.5 | 127.2 | ||||
| Other assets, net | 87.2 | 88.9 | ||||
| Total assets | $ | 3,920.1 | $ | 3,846.4 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Accounts payable | $ | 198.0 | $ | 191.7 | ||
| Accrued liabilities | 348.0 | 345.3 | ||||
| Current portion of long-term debt and capital leases and other debt | 9.2 | 3.6 | ||||
| Total current liabilities | 555.2 | 540.6 | ||||
| Long-term debt and capital lease obligations | 1,019.2 | 1,069.3 | ||||
| Other long-term liabilities | 289.8 | 289.2 | ||||
| Total liabilities | 1,864.2 | 1,899.1 | ||||
| Total stockholders’ equity | 2,055.9 | 1,947.3 | ||||
| Total liabilities and stockholders’ equity | $ | 3,920.1 | $ | 3,846.4 | ||
| TELEDYNE TECHNOLOGIES INCORPORATED | ||||||||||||||||||||
| SUMMARY OF QUARTERLY SEGMENT NET SALES, OPERATING INCOME AND INCOME BEFORE TAX | ||||||||||||||||||||
| FOR FISCAL YEAR 2017 (a) | ||||||||||||||||||||
|
(Unaudited - in millions) |
||||||||||||||||||||
| As Adjusted for ASU No. 2017-07 |
First
|
Second
|
Third
|
Fourth
|
Total Year
|
|||||||||||||||
| Net sales | $ | 566.1 | $ | 671.1 | $ | 662.2 | $ | 704.4 | $ | 2,603.8 | ||||||||||
| Costs and expenses: | ||||||||||||||||||||
| Costs of sales (a) | 357.0 | 421.2 | 408.6 | 437.2 | 1,624.0 | |||||||||||||||
| Selling, general and administrative expenses (a) | 154.3 | 167.1 | 164.1 | 172.6 | 658.1 | |||||||||||||||
| Total costs and expenses | 511.3 | 588.3 | 572.7 | 609.8 | 2,282.1 | |||||||||||||||
| Operating income | 54.8 | 82.8 | 89.5 | 94.6 | 321.7 | |||||||||||||||
| Interest and debt expense, net | (8.2 | ) | (9.1 | ) | (8.2 | ) | (7.6 | ) | (33.1 | ) | ||||||||||
| Non-service retirement benefit income | 3.3 | 3.4 | 3.4 | 3.8 | 13.9 | |||||||||||||||
| Other expense, net | (9.3 | ) | (0.7 | ) | (3.0 | ) | (2.5 | ) | (15.5 | ) | ||||||||||
| Income before income taxes | $ | 40.6 | $ | 76.4 | $ | 81.7 | $ | 88.3 | $ | 287.0 | ||||||||||
| (a) Adjusted to reflect the adoption of ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”. | ||||||||||||||||||||
| As Originally Reported (a) |
First
|
Second
|
Third
|
Fourth
|
Total Year
|
|||||||||||||||
| Net sales | $ | 566.1 | $ | 671.1 | $ | 662.2 | $ | 704.4 | $ | 2,603.8 | ||||||||||
| Costs and expenses: | ||||||||||||||||||||
| Costs of sales | 354.2 | 418.3 | 405.8 | 433.9 | 1,612.2 | |||||||||||||||
| Selling, general and administrative expenses | 153.8 | 166.6 | 163.5 | 172.1 | 656.0 | |||||||||||||||
| Total costs and expenses | 508.0 | 584.9 | 569.3 | 606.0 | 2,268.2 | |||||||||||||||
| Operating income | 58.1 | 86.2 | 92.9 | 98.4 | 335.6 | |||||||||||||||
| Interest and debt expense, net | (8.2 | ) | (9.1 | ) | (8.2 | ) | (7.6 | ) | (33.1 | ) | ||||||||||
| Other expense, net | (9.3 | ) | (0.7 | ) | (3.0 | ) | (2.5 | ) | (15.5 | ) | ||||||||||
| Income before income taxes | $ | 40.6 | $ | 76.4 | $ | 81.7 | $ | 88.3 | $ | 287.0 | ||||||||||
| (a) As originally reported prior to the adoption of ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”. | ||||||||||||||||||||
| TELEDYNE TECHNOLOGIES INCORPORATED | ||||||||||||||||||||
| SUMMARY OF QUARTERLY SEGMENT NET SALES, OPERATING INCOME AND INCOME BEFORE TAX | ||||||||||||||||||||
| FOR FISCAL YEAR 2017 (a) | ||||||||||||||||||||
|
(Unaudited - in millions) |
||||||||||||||||||||
| As Adjusted for ASU No. 2017-07 |
First
|
Second
|
Third
|
Fourth
|
Total Year
|
|||||||||||||||
| Net sales: | ||||||||||||||||||||
| Instrumentation | $ | 232.8 | $ | 233.8 | $ | 232.5 | $ | 254.8 | $ | 953.9 | ||||||||||
| Digital Imaging | 113.8 | 188.5 | 191.5 | 199.7 | 693.5 | |||||||||||||||
| Aerospace and Defense Electronics | 151.9 | 172.8 | 165.1 | 180.4 | 670.2 | |||||||||||||||
| Engineered Systems | 67.6 | 76.0 | 73.1 | 69.5 | 286.2 | |||||||||||||||
| Net sales | $ | 566.1 | $ | 671.1 | $ | 662.2 | $ | 704.4 | $ | 2,603.8 | ||||||||||
| Operating income(a): | ||||||||||||||||||||
| Instrumentation | $ | 30.2 | $ | 30.5 | $ | 34.6 | $ | 30.7 | $ | 126.0 | ||||||||||
| Digital Imaging | 15.1 | 26.2 | 31.6 | 34.5 | 107.4 | |||||||||||||||
| Aerospace and Defense Electronics | 24.8 | 31.0 | 28.0 | 35.5 | 119.3 | |||||||||||||||
| Engineered Systems | 7.4 | 7.7 | 8.6 | 8.3 | 32.0 | |||||||||||||||
| Corporate expense | (22.7 | ) | (12.6 | ) | (13.3 | ) | (14.4 | ) | (63.0 | ) | ||||||||||
| Operating income | 54.8 | 82.8 | 89.5 | 94.6 | 321.7 | |||||||||||||||
| Interest and debt expense, net | (8.2 | ) | (9.1 | ) | (8.2 | ) | (7.6 | ) | (33.1 | ) | ||||||||||
| Non-service retirement benefit income | 3.3 | 3.4 | 3.4 | 3.8 | 13.9 | |||||||||||||||
| Other expense, net | (9.3 | ) | (0.7 | ) | (3.0 | ) | (2.5 | ) | (15.5 | ) | ||||||||||
| Income before income taxes | $ | 40.6 | $ | 76.4 | $ | 81.7 | $ | 88.3 | $ | 287.0 | ||||||||||
| (a) Adjusted to reflect the adoption of ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”. | ||||||||||||||||||||
| As Originally Reported(a) |
First
|
Second
|
Third
|
Fourth
|
Total Year
|
|||||||||||||||
| Net sales: | ||||||||||||||||||||
| Instrumentation | $ | 232.8 | $ | 233.8 | $ | 232.5 | $ | 254.8 | $ | 953.9 | ||||||||||
| Digital Imaging | 113.8 | 188.5 | 191.5 | 199.7 | 693.5 | |||||||||||||||
| Aerospace and Defense Electronics | 151.9 | 172.8 | 165.1 | 180.4 | 670.2 | |||||||||||||||
| Engineered Systems | 67.6 | 76.0 | 73.1 | 69.5 | 286.2 | |||||||||||||||
| Net sales | $ | 566.1 | $ | 671.1 | $ | 662.2 | $ | 704.4 | $ | 2,603.8 | ||||||||||
| Operating income: | ||||||||||||||||||||
| Instrumentation | $ | 30.4 | $ | 30.8 | $ | 34.8 | $ | 31.4 | $ | 127.4 | ||||||||||
| Digital Imaging | 15.3 | 26.4 | 31.9 | 34.8 | 108.4 | |||||||||||||||
| Aerospace and Defense Electronics | 26.2 | 32.4 | 29.4 | 36.9 | 124.9 | |||||||||||||||
| Engineered Systems | 8.9 | 9.1 | 10.0 | 9.7 | 37.7 | |||||||||||||||
| Corporate expense | (22.7 | ) | (12.5 | ) | (13.2 | ) | (14.4 | ) | (62.8 | ) | ||||||||||
| Operating income | 58.1 | 86.2 | 92.9 | 98.4 | 335.6 | |||||||||||||||
| Interest and debt expense, net | (8.2 | ) | (9.1 | ) | (8.2 | ) | (7.6 | ) | (33.1 | ) | ||||||||||
| Other expense, net | (9.3 | ) | (0.7 | ) | (3.0 | ) | (2.5 | ) | (15.5 | ) | ||||||||||
| Income before income taxes | $ | 40.6 | $ | 76.4 | $ | 81.7 | $ | 88.3 | $ | 287.0 | ||||||||||
| (a) As originally reported prior to the adoption of ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”. | ||||||||||||||||||||
| TELEDYNE TECHNOLOGIES INCORPORATED | ||||||||||||||||||||
| SUMMARY OF QUARTERLY SEGMENT NET SALES, OPERATING INCOME AND INCOME BEFORE TAX | ||||||||||||||||||||
| FOR FISCAL YEAR 2016 | ||||||||||||||||||||
|
(Unaudited - in millions) |
||||||||||||||||||||
| As Adjusted for ASU No. 2017-07 |
First
|
Second
|
Third
|
Fourth
|
Total Year
|
|||||||||||||||
| Net sales | $ | 530.5 | $ | 539.7 | $ | 526.8 | $ | 552.9 | $ | 2,149.9 | ||||||||||
| Costs and expenses: | ||||||||||||||||||||
| Costs of sales(a) | 327.7 | 339.0 | 319.9 | 342.9 | 1,329.5 | |||||||||||||||
| Selling, general and administrative expenses(a) | 145.2 | 150.4 | 141.4 | 142.9 | 579.9 | |||||||||||||||
| Total costs and expenses | 472.9 | 489.4 | 461.3 | 485.8 | 1,909.4 | |||||||||||||||
| Operating income | 57.6 | 50.3 | 65.5 | 67.1 | 240.5 | |||||||||||||||
| Interest and debt expense, net | (5.7 | ) | (5.9 | ) | (5.6 | ) | (6.0 | ) | (23.2 | ) | ||||||||||
| Non-service retirement benefit income | 3.3 | 3.3 | 3.3 | 3.4 | 13.3 | |||||||||||||||
| Other income/(expense), net | (1.3 | ) | 17.2 | (0.8 | ) | (4.4 | ) | 10.7 | ||||||||||||
| Income before income taxes | $ | 53.9 | $ | 64.9 | $ | 62.4 | $ | 60.1 | $ | 241.3 | ||||||||||
| (a) Adjusted to reflect the adoption of ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”. | ||||||||||||||||||||
| As Originally Reported(a) |
First
|
Second
|
Third
|
Fourth
|
Total Year
|
|||||||||||||||
| Net sales | $ | 530.5 | $ | 539.7 | $ | 526.8 | $ | 552.9 | $ | 2,149.9 | ||||||||||
| Costs and expenses: | ||||||||||||||||||||
| Costs of sales | 324.8 | 336.2 | 317.0 | 340.0 | 1,318.0 | |||||||||||||||
| Selling, general and administrative expenses | 144.8 | 149.9 | 141.0 | 142.4 | 578.1 | |||||||||||||||
| Total costs and expenses | 469.6 | 486.1 | 458.0 | 482.4 | 1,896.1 | |||||||||||||||
| Operating income | 60.9 | 53.6 | 68.8 | 70.5 | 253.8 | |||||||||||||||
| Interest and debt expense, net | (5.7 | ) | (5.9 | ) | (5.6 | ) | (6.0 | ) | (23.2 | ) | ||||||||||
| Other income/(expense), net | (1.3 | ) | 17.2 | (0.8 | ) | (4.4 | ) | 10.7 | ||||||||||||
| Income before income taxes | $ | 53.9 | $ | 64.9 | $ | 62.4 | $ | 60.1 | $ | 241.3 | ||||||||||
| (a) As originally reported prior to the adoption of ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”. | ||||||||||||||||||||
| TELEDYNE TECHNOLOGIES INCORPORATED | ||||||||||||||||||||
| SUMMARY OF QUARTERLY SEGMENT NET SALES, OPERATING INCOME AND INCOME BEFORE TAX | ||||||||||||||||||||
| FOR FISCAL YEAR 2016 | ||||||||||||||||||||
|
(Unaudited - in millions) |
||||||||||||||||||||
| As Adjusted for ASU No. 2017-07 |
First
|
Second
|
Third
|
Fourth
|
Total Year
|
|||||||||||||||
| Net sales: | ||||||||||||||||||||
| Instrumentation | $ | 223.7 | $ | 220.1 | $ | 208.3 | $ | 224.6 | $ | 876.7 | ||||||||||
| Digital Imaging | 89.9 | 99.4 | 98.5 | 110.9 | 398.7 | |||||||||||||||
| Aerospace and Defense Electronics | 152.6 | 158.0 | 153.5 | 151.8 | 615.9 | |||||||||||||||
| Engineered Systems | 64.3 | 62.2 | 66.5 | 65.6 | 258.6 | |||||||||||||||
| Total net sales | $ | 530.5 | $ | 539.7 | $ | 526.8 | $ | 552.9 | $ | 2,149.9 | ||||||||||
| Operating income(a): | ||||||||||||||||||||
| Instrumentation | $ | 31.3 | $ | 20.0 | $ | 28.0 | $ | 30.1 | $ | 109.4 | ||||||||||
| Digital Imaging | 7.8 | 10.3 | 11.2 | 14.8 | 44.1 | |||||||||||||||
| Aerospace and Defense Electronics | 22.8 | 26.6 | 30.2 | 27.1 | 106.7 | |||||||||||||||
| Engineered Systems | 6.6 | 4.2 | 7.2 | 8.5 | 26.5 | |||||||||||||||
| Corporate expense | (10.9 | ) | (10.8 | ) | (11.1 | ) | (13.4 | ) | (46.2 | ) | ||||||||||
| Operating income | 57.6 | 50.3 | 65.5 | 67.1 | 240.5 | |||||||||||||||
| Interest and debt expense, net | (5.7 | ) | (5.9 | ) | (5.6 | ) | (6.0 | ) | (23.2 | ) | ||||||||||
| Non-service retirement benefit income | 3.3 | 3.3 | 3.3 | 3.4 | 13.3 | |||||||||||||||
| Other income/(expense), net | (1.3 | ) | 17.2 | (0.8 | ) | (4.4 | ) | 10.7 | ||||||||||||
| Income before income taxes | $ | 53.9 | $ | 64.9 | $ | 62.4 | $ | 60.1 | $ | 241.3 | ||||||||||
| (a) Adjusted to reflect the adoption of ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”. | ||||||||||||||||||||
| As Originally Reported(a) |
First
|
Second
|
Third
|
Fourth
|
Total Year
|
|||||||||||||||
| Net sales: | ||||||||||||||||||||
| Instrumentation | $ | 223.7 | $ | 220.1 | $ | 208.3 | $ | 224.6 | $ | 876.7 | ||||||||||
| Digital Imaging | 89.9 | 99.4 | 98.5 | 110.9 | 398.7 | |||||||||||||||
| Aerospace and Defense Electronics | 152.6 | 158.0 | 153.5 | 151.8 | 615.9 | |||||||||||||||
| Engineered Systems | 64.3 | 62.2 | 66.5 | 65.6 | 258.6 | |||||||||||||||
| Total net sales | $ | 530.5 | $ | 539.7 | $ | 526.8 | $ | 552.9 | $ | 2,149.9 | ||||||||||
| Operating income: | ||||||||||||||||||||
| Instrumentation | $ | 31.4 | $ | 20.1 | $ | 28.1 | $ | 30.2 | $ | 109.8 | ||||||||||
| Digital Imaging | 8.2 | 10.7 | 11.7 | 15.3 | 45.9 | |||||||||||||||
| Aerospace and Defense Electronics | 24.1 | 28.0 | 31.5 | 28.5 | 112.1 | |||||||||||||||
| Engineered Systems | 8.0 | 5.6 | 8.6 | 9.9 | 32.1 | |||||||||||||||
| Corporate expense | (10.8 | ) | (10.8 | ) | (11.1 | ) | (13.4 | ) | (46.1 | ) | ||||||||||
| Operating income | 60.9 | 53.6 | 68.8 | 70.5 | 253.8 | |||||||||||||||
| Interest and debt expense, net | (5.7 | ) | (5.9 | ) | (5.6 | ) | (6.0 | ) | (23.2 | ) | ||||||||||
| Other income/(expense), net | (1.3 | ) | 17.2 | (0.8 | ) | (4.4 | ) | 10.7 | ||||||||||||
| Income before income taxes | $ | 53.9 | $ | 64.9 | $ | 62.4 | $ | 60.1 | $ | 241.3 | ||||||||||
| (a) As originally reported prior to the adoption of ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”. | ||||||||||||||||||||
