Teledyne Technologies Reports Second Quarter Results

Use of Non-GAAP Financial Measures

We report our financial results in accordance with generally accepted accounting principles in the United States (“GAAP”). We supplement the reporting of our financial results determined under GAAP with certain non-GAAP financial measures. The non-GAAP financial measures presented provides management, financial analysts, and investors with additional useful information in evaluating the performance of the company. The non-GAAP financial measures should be considered in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP. Further details on reasons that we use 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 earnings release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, with respect to management’s beliefs about the financial condition, results of operations and businesses of Teledyne in the future. Forward-looking statements involve risks and uncertainties, are based on the current expectations of the management of Teledyne and are subject to uncertainty and changes in circumstances.

The forward-looking statements contained herein may include statements relating to stock option compensation expense, and about the continuing expected effects on Teledyne of the acquisition of FLIR and synergies related to the transaction, anticipated capital expenditures and product developments, and other strategic options. Forward-looking statements generally are accompanied by words such as “projects”, “intends”, “expects”, “anticipates”, “targets”, “estimates”, “will” and words of similar import that convey the uncertainty of future events or outcomes. All statements made in this communication that are not historical in nature should be considered forward-looking. By its nature, forward-looking information is not a guarantee of future performance or results and involves risks and uncertainties because it relates to events and depends on circumstances that will occur in the future.

Actual results could differ materially from these forward-looking statements. Many factors could change anticipated results, including ongoing challenges and uncertainties posed by the COVID pandemic for businesses and governments around the world, including production, supply, contractual and other disruptions, such as COVID related lockdowns, facility closures, furloughs and travel restrictions; the inability to achieve operating synergies with respect to the FLIR acquisition; changes in relevant tax and other laws; foreign currency exchange risks; rising interest rates; risks associated with indebtedness, as well as our ability to reduce indebtedness and the timing thereof; the impact of semiconductor and other supply chain shortages; higher inflation, including wage competition and higher shipping costs; labor shortages and competition for skilled personnel; the inability to develop and market new competitive products; inherent uncertainties involved in the estimates and judgments used in the preparation of financial statements and the providing of estimates of financial measures, in accordance with U.S. GAAP and related standards; operating results of FLIR being lower than anticipated; disruptions in the global economy; the ongoing conflict between Russia and Ukraine; customer and supplier bankruptcies; 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 or changes to U.S. and foreign government spending and budget priorities triggered by the COVID pandemic, inflation, rising interest costs, and economic conditions; impacts from the United Kingdom’s exit from the European Union; uncertainties related to the policies of the U.S. Presidential Administration; the imposition and expansion of, and responses to, trade sanctions and tariffs; the continuing review and resolution of FLIR’s export and tax matters; escalating economic and diplomatic tension between China and the United States; threats to the security of our confidential and proprietary information, including cybersecurity threats; and natural and man-made disasters, including those related to or intensified by climate change; and our ability to achieve emission reduction targets and decrease our carbon footprint. 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 those implemented in response to climate change, could further negatively affect our businesses that supply the oil and gas industry. Weakness in the commercial aerospace industry negatively affects 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.

Additional factors that could cause results to differ materially from those described above can be found in Teledyne’s Annual Report on Form 10-K for the year ended January 2, 2022, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, all of which are on file with the SEC and available in the “Investors” section of Teledyne’s website, teledyne.com, under the heading “Investor Information” and in other documents Teledyne files with the SEC.

All forward-looking statements speak only as of the date they are made and are based on information available at that time. Teledyne assumes no obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.

A live webcast of Teledyne’s second quarter earnings conference call will be held at 11:00 a.m. (Eastern) on Wednesday, July 27, 2022. To access the call, go to www.teledyne.com/investors/events-and-presentations 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 Wednesday, July 27, 2022.

TELEDYNE TECHNOLOGIES INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

FOR THE SECOND QUARTER AND SIX MONTHS ENDED

JULY 3, 2022 AND JULY 4, 2021

(Unaudited - in millions, except per share amounts)

 

 

 

Second
Quarter

 

Second
Quarter (a)

 

Six
Months

 

Six
Months (a)

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net sales

 

$

1,355.8

 

 

$

1,121.0

 

 

$

2,676.8

 

 

$

1,926.7

 

Costs and expenses:

 

 

 

 

 

 

 

 

Costs of sales

 

 

788.6

 

 

 

663.1

 

 

 

1,541.2

 

 

 

1,155.6

 

Selling, general and administrative expenses

 

 

286.4

 

 

 

320.7

 

 

 

577.7

 

 

 

488.9

 

Acquired intangible asset amortization (b)

 

 

51.3

 

 

 

32.8

 

 

 

104.9

 

 

 

42.6

 

Total costs and expenses

 

 

1,126.3

 

 

 

1,016.6

 

 

 

2,223.8

 

 

 

1,687.1

 

Operating income

 

 

229.5

 

 

 

104.4

 

 

 

453.0

 

 

 

239.6

 

Interest and debt expense, net

 

 

(22.5

)

 

 

(21.2

)

 

 

(44.8

)

 

 

(43.5

)

Gain (loss) on debt extinguishment

 

 

10.6

 

 

 

 

 

 

10.6

 

 

 

(13.4

)

Non-service retirement benefit income

 

 

2.9

 

 

 

2.8

 

 

 

5.7

 

 

 

5.6

 

Other income, net

 

 

1.0

 

 

 

6.1

 

 

 

 

 

 

5.1

 

Income before income taxes

 

 

221.5

 

 

 

92.1

 

 

 

424.5

 

 

 

193.4

 

Provision for income taxes (c)

 

 

50.2

 

 

 

27.4

 

 

 

40.6

 

 

 

44.0

 

Net income

 

$

171.3

 

 

$

64.7

 

 

$

383.9

 

 

$

149.4

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

 

$

3.59

 

 

$

1.48

 

 

$

8.05

 

 

$

3.66

 

 

 

 

 

 

 

 

 

 

Weighted average diluted common shares outstanding

 

 

47.7

 

 

 

43.6

 

 

 

47.7

 

 

 

40.8

 

a)

The second quarter of 2021 includes pretax charges of $150.7 million primarily related to the acquisition of FLIR. Of this amount, $23.7 million was recorded to cost of sales, $94.2 million was recorded to selling, general and administrative expenses and $32.8 million was recorded to acquired intangible asset amortization ($10.0 million related to prior acquisitions). The first six months of 2021 includes pretax charges of $197.0 million mostly related to the acquisition of FLIR, of which, $23.7 million was recorded to cost of sales, $100.1 million was recorded to selling, general and administrative expenses, $42.6 million was recorded to acquired intangible asset amortization, ($19.8 million related to prior acquisitions), $17.2 million was recorded to interest expense and $13.4 million was recorded to loss on debt extinguishment.

b)

The second quarter and first six months of 2022 includes pretax charges of $42.4 million and $86.5 million in acquired intangible asset amortization related to FLIR, respectively.

c)

The second quarter of 2022 includes net discrete income tax benefits of $1.0 million and the first six months of 2022 includes net discrete income tax benefits of $57.5 million. The second quarter of 2021 includes net discrete income tax expense of $4.1 million and the first six months of 2021 includes net discrete income tax benefits of $2.2 million.

 

 

 

This financial statement was prepared in accordance with U.S. GAAP.

TELEDYNE TECHNOLOGIES INCORPORATED

SUMMARY OF SEGMENT NET SALES AND OPERATING INCOME

FOR THE SECOND QUARTER AND SIX MONTHS ENDED

JULY 3, 2022 AND JULY 4, 2021

(Unaudited - $ in millions)

 

 

 

Second
Quarter

 

Second
Quarter

 

%
Change

 

Six
Months

 

Six
Months

 

%
Change

 

 

 

2022

 

 

 

2021

 

 

 

 

2022

 

 

 

2021

 

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

Digital Imaging

 

$

775.8

 

 

$

579.5

 

 

33.9

%

 

$

1,526.3

 

 

$

842.8

 

 

81.1

%

Instrumentation

 

 

312.5

 

 

 

291.1

 

 

7.4

%

 

 

621.4

 

 

 

577.6

 

 

7.6

%

Aerospace and Defense Electronics

 

 

168.8

 

 

 

152.4

 

 

10.8

%

 

 

335.0

 

 

 

303.6

 

 

10.3

%

Engineered Systems

 

 

98.7

 

 

 

98.0

 

 

0.7

%

 

 

194.1

 

 

 

202.7

 

 

(4.2

)%

Total net sales

 

$

1,355.8

 

 

$

1,121.0

 

 

20.9

%

 

$

2,676.8

 

 

$

1,926.7

 

 

38.9

%

Operating income:

 

 

 

 

 

 

 

 

 

 

 

 

Digital Imaging (a)

 

$

117.9

 

 

$

84.6

 

 

39.4

%

 

$

233.6

 

 

$

136.6

 

 

71.0

%

Instrumentation

 

 

73.6

 

 

 

64.6

 

 

13.9

%

 

 

145.2

 

 

 

124.0

 

 

17.1

%

Aerospace and Defense Electronics

 

 

44.1

 

 

 

28.4

 

 

55.3

%

 

 

87.0

 

 

 

56.7

 

 

53.4

%

Engineered Systems

 

 

8.6

 

 

 

11.0

 

 

(21.8

)%

 

 

18.0

 

 

 

25.9

 

 

(30.5

)%

Corporate expense (a)

 

 

(14.7

)

 

 

(84.2

)

 

(82.5

)%

 

 

(30.8

)

 

 

(103.6

)

 

(70.3

)%

Operating income

 

 

229.5

 

 

 

104.4

 

 

119.8

%

 

 

453.0

 

 

 

239.6

 

 

89.1

%

Interest and debt expense, net (a)

 

 

(22.5

)

 

 

(21.2

)

 

6.1

%

 

 

(44.8

)

 

 

(43.5

)

 

3.0

%

Gain (loss) on debt extinguishment (a)

 

 

10.6

 

 

 

 

 

*

 

 

10.6

 

 

 

(13.4

)

 

(179.1

)%

Non-service retirement benefit income

 

 

2.9

 

 

 

2.8

 

 

3.6

%

 

 

5.7

 

 

 

5.6

 

 

1.8

%

Other income, net

 

 

1.0

 

 

 

6.1

 

 

(83.6

)%

 

 

 

 

 

5.1

 

 

(100.0

)%

Income before income taxes

 

 

221.5

 

 

 

92.1

 

 

140.5

%

 

 

424.5

 

 

 

193.4

 

 

119.5

%

Provision for income taxes (b)

 

 

50.2

 

 

 

27.4

 

 

83.2

%

 

 

40.6

 

 

 

44.0

 

 

(7.7

)%

Net income

 

$

171.3

 

 

$

64.7

 

 

164.8

%

 

$

383.9

 

 

$

149.4

 

 

157.0

%

* not meaningful

a)

The second quarter and first six months of 2022 includes pretax charges of $42.4 million and $86.5 million in acquired intangible asset amortization related to FLIR, respectively. The second quarter of 2021 includes pretax charges of $140.7 million related to the acquisition of FLIR, of which, $70.2 million was recorded in the Digital Imaging segment and $70.5 million was recorded to corporate expense. The first six months of 2021 includes pretax charges of $177.2 million related to the acquisition of FLIR, of which, $70.2 million was recorded in the Digital Imaging segment, $76.4 million was recorded to corporate expense, $17.2 million was recorded to interest expense and $13.4 million was recorded to loss on debt extinguishment.

b)

The second quarter of 2022 includes net discrete income tax benefits of $1.0 million and the first six months of 2022 includes net discrete income tax benefits of $57.5 million. The second quarter of 2021 includes net discrete income tax expense of $4.1 million and the first six months of 2021 includes net discrete income tax benefits of $2.2 million.

 

 

 

This financial statement was prepared in accordance with U.S. GAAP.

TELEDYNE TECHNOLOGIES INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited – in millions)

 

 

 

July 3, 2022

 

January 2, 2022

ASSETS

 

 

 

 

Cash and cash equivalents

 

$

278.8

 

$

474.7

Accounts receivable and unbilled receivables, net

 

 

1,129.3

 

 

1,083.8

Inventories, net

 

 

821.5

 

 

752.9

Prepaid expenses and other current assets

 

 

107.8

 

 

118.0

Total current assets

 

 

2,337.4

 

 

2,429.4

Property, plant and equipment, net

 

 

774.2

 

 

827.5

Goodwill and acquired intangible assets, net

 

 

10,523.3

 

 

10,728.3

Prepaid pension assets

 

 

135.5

 

 

123.7

Other assets, net

 

 

287.0

 

 

321.4

Total assets

 

$

14,057.4

 

$

14,430.3

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Accounts payable

 

$

483.0

 

$

469.5

Accrued liabilities

 

 

620.0

 

 

1,028.9

Current portion of long-term debt

 

 

300.0

 

 

Total current liabilities

 

 

1,403.0

 

 

1,498.4

Long-term debt, net of current portion

 

 

3,645.7

 

 

4,099.4

Other long-term liabilities

 

 

1,136.9

 

 

1,210.5

Total liabilities

 

 

6,185.6

 

 

6,808.3

Total stockholders’ equity

 

 

7,871.8

 

 

7,622.0

Total liabilities and stockholders’ equity

 

$

14,057.4

 

$

14,430.3

This financial statement was prepared in accordance with U.S. GAAP.

TELEDYNE TECHNOLOGIES INCORPORATED

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

FOR THE SECOND QUARTER AND SIX MONTHS ENDED JULY 3, 2022 AND JULY 4, 2021

(Unaudited - in millions, except per share amounts)

 

 

Second Quarter 2022

 

Second Quarter 2021

 

Income
before
income
taxes

 

Net
income

 

Diluted
earnings
per
common
share

 

Income
before
income
taxes

 

Net
income

 

Diluted
earnings
per
common
share

GAAP

$

221.5

 

$

171.3

 

$

3.59

 

$

92.1

 

$

64.7

 

$

1.48

Adjusted for specified items:

 

 

 

 

 

 

 

 

 

 

 

FLIR transaction and integration costs

 

 

 

 

 

 

 

94.5

 

 

80.7

 

 

1.85

FLIR inventory step-up expense

 

 

 

 

 

 

 

23.4

 

 

18.0

 

 

0.41

Acquired intangible asset amortization

 

51.3

 

 

39.4

 

 

0.83

 

 

32.8

 

 

25.2

 

 

0.59

Acquisition-related tax matters

 

 

 

0.6

 

 

0.01

 

 

 

 

12.4

 

 

0.28

Non-GAAP

$

272.8

 

$

211.3

 

$

4.43

 

$

242.8

 

$

201.0

 

$

4.61

 

Six Months 2022

 

Six Months 2021

 

Income
before
income
taxes

 

Net
income

 

Diluted
earnings
per
common
share

 

Income
before

income
taxes

 

Net
income

 

Diluted
earnings
per
common
share

GAAP

$

424.5

 

$

383.9

 

 

$

8.05

 

 

$

193.4

 

$

149.4

 

$

3.66

Adjusted for specified items:

 

 

 

 

 

 

 

 

 

 

 

FLIR transaction and integration costs

 

 

 

 

 

 

 

 

 

100.4

 

 

86.5

 

 

2.12

FLIR inventory step-up expense

 

 

 

 

 

 

 

 

 

23.4

 

 

18.0

 

 

0.44

Acquired intangible asset amortization

 

104.9

 

 

80.7

 

 

 

1.69

 

 

 

42.6

 

 

32.7

 

 

0.80

Acquisition-related tax matters

 

 

 

(49.4

)

 

 

(1.04

)

 

 

 

 

12.4

 

 

0.31

Bridge loan and debt extinguishment fees

 

 

 

 

 

 

 

 

 

30.6

 

 

23.3

 

 

0.57

Non-GAAP

$

529.4

 

$

415.2

 

 

$

8.70

 

 

$

390.4

 

$

322.3

 

 

7.90

 

 

Second Quarter 2022

 

Second Quarter 2021

 

 

Operating
income

 

Operating
margin

 

Operating
income

 

Operating
margin

GAAP

 

$

229.5

 

16.9

%

 

$

104.4

 

9.3

%

Adjusted for specified items:

 

 

 

 

 

 

 

 

FLIR transaction and integration costs

 

 

 

 

 

 

94.5

 

 

FLIR inventory step-up expense

 

 

 

 

 

 

23.4

 

 

Acquired intangible asset amortization

 

 

51.3

 

 

 

 

32.8

 

 

Non-GAAP

 

$

280.8

 

20.7

%

 

$

255.1

 

22.8

%

 

 

Six Months 2022

 

Six Months 2021

 

 

Operating
income

 

Operating
margin

 

Operating
income

 

Operating
margin

GAAP

 

$

453.0

 

16.9

%

 

$

239.6

 

12.4

%

Adjusted for specified item:

 

 

 

 

 

 

 

 

FLIR transaction and integration costs

 

 

 

 

 

 

100.4

 

 

FLIR inventory step-up expense

 

 

 

 

 

 

23.4

 

 

Acquired intangible asset amortization

 

 

104.9

 

 

 

 

42.6

 

 

Non-GAAP

 

$

557.9

 

20.8

%

 

$

406.0

 

21.1

%

TELEDYNE TECHNOLOGIES INCORPORATED

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited - in millions, except per share amounts)

 

 

 

July 3, 2022

 

January 2, 2022

Current portion of long-term debt - GAAP

 

$

300.0

 

 

$

 

Long-term debt - GAAP

 

 

3,645.7

 

 

 

4,099.4

 

Total debt - non-GAAP

 

 

3,945.7

 

 

 

4,099.4

 

Less cash and cash equivalents - GAAP

 

 

(278.8

)

 

 

(474.7

)

Net debt - non-GAAP

 

$

3,666.9

 

 

$

3,624.7

 

 

 

Third Quarter 2022

 

Twelve Months 2022

 

 

Low

 

High

 

Low

 

High

GAAP Diluted Earnings Per Common Share Outlook

 

$

3.36

 

$

3.54

 

$

15.13

 

 

$

15.45

 

Adjusted for specified non-GAAP item:

 

 

 

 

 

 

 

 

Acquired intangible asset amortization

 

 

0.84

 

 

0.81

 

 

3.35

 

 

 

3.30

 

Acquisition-related tax matters

 

 

 

 

 

 

(1.03

)

 

 

(1.05

)

Non-GAAP Diluted Earnings Per Common Share Outlook

 

$

4.20

 

$

4.35

 

$

17.45

 

 

$

17.70

 


« Previous Page 1 | 2 | 3 | 4 | 5 | 6  Next Page »



© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us
ShareCG™ is a trademark of Internet Business Systems, Inc.

Report a Bug Report Abuse Make a Suggestion About Privacy Policy Contact Us User Agreement Advertise