Teleflex Announces Fourth Quarter and Full-Year 2021 Financial Results

February 24, 2022

WAYNE, Pa., Feb. 24, 2022 (GLOBE NEWSWIRE) -- Teleflex Incorporated (NYSE: TFX) (the “Company”) today announced financial results for the fourth quarter ended December 31, 2021.

Fourth quarter financial summary

  • Reported revenues of $761.9 million, up 7.1% year-over-year; up 7.9% on a constant currency basis
  • GAAP diluted EPS from continuing operations of $2.69 as compared to $1.62 in the prior year period
  • Adjusted diluted EPS from continuing operations of $3.60, up 10.8% year-over-year

2022 guidance summary

  • GAAP revenue growth expected to be 2.3% to 3.8%  
  • Constant currency revenue growth of 4.0% to 5.5% inclusive of a 1.6% headwind from the initial phase of the respiratory divestiture completed on June 28, 2021
  • GAAP diluted EPS from continuing operations of $8.90 to $9.50  
  • Adjusted diluted EPS from continuing operations guidance range of $13.70 to $14.30 inclusive of an estimated $0.17 headwind from the respiratory divestiture

Liam Kelly, Chairman, President and Chief Executive Officer, said, “Teleflex delivered solid fourth quarter and 2021 full year results reflecting strong execution, the benefits of our diversified product portfolio, and the dedication of our global team to serving our customers. For 2022, we believe Teleflex remains well-positioned to drive durable growth and manage the challenges of the current environment. We remain committed to our multi-year strategy to optimize our portfolio for growth, enhance margins, and advance our ESG initiatives."

NET REVENUE BY SEGMENT
The following tables provide information regarding net revenues in each of the Company's reportable operating segments for the three and twelve months ended December 31, 2021 and December 31, 2020 on a GAAP and constant currency basis.

  Three Months Ended   % Increase / (Decrease)
  December 31, 2021   December 31, 2020   Reported Revenue Growth   Currency Impact   Constant Currency Revenue Growth
Americas $ 451.7   $ 419.5   7.7 %   0.1 %   7.6 %
EMEA   164.5     161.4   1.9 %   (2.9 )%   4.8 %
Asia   78.5     78.6   (0.1 )%   (0.6 )%   0.5 %
OEM   67.2     51.7   30.0 %   (0.9 )%   30.9 %
Total $ 761.9   $ 711.2   7.1 %   (0.8 )%   7.9 %


  Twelve Months Ended   % Increase / (Decrease)
  December 31, 2021   December 31, 2020   Reported Revenue Growth   Currency Impact   Constant Currency Revenue Growth
Americas $ 1,659.3   $ 1,465.0   13.3 %   0.4 %   12.9 %
EMEA   606.8     584.9   3.8 %   4.4 %   (0.6 )%
Asia   297.8     267.0   11.5 %   4.9 %   6.6 %
OEM   245.7     220.3   11.5 %   1.0 %   10.5 %
Total $ 2,809.6   $ 2,537.2   10.7 %   1.9 %   8.8 %
                             

NET REVENUE BY GLOBAL PRODUCT CATEGORY
The following tables provide information regarding net revenues in each of the Company's global product categories for the three and twelve months ended December 31, 2021 and December 31, 2020 on a GAAP and constant currency basis.

  Three Months Ended   % Increase / (Decrease)
  December 31, 2021   December 31, 2020   Reported Revenue Growth   Currency Impact   Constant Currency Revenue Growth
Vascular Access $ 193.0   $ 182.5   5.8 %   (0.6 )%   6.4 %
Interventional   114.9     106.7   7.7 %   (0.5 )%   8.2 %
Anesthesia   102.8     86.1   19.4 %   (1.1 )%   20.5 %
Surgical   106.4     92.3   15.3 %   (0.8 )%   16.1 %
Interventional Urology   92.9     93.9   (1.0 )%   %   (1.0 )%
OEM   67.2     51.7   30.1 %   (0.8 )%   30.9 %
Other   84.7     98.1   (13.7 )%   (1.5 )%   (12.2 )%
Total $ 761.9   $ 711.2   7.1 %   (0.8 )%   7.9 %

        

  Twelve Months Ended   % Increase / (Decrease)
  December 31, 2021   December 31, 2020   Reported Revenue Growth   Currency Impact   Constant Currency Revenue Growth
Vascular Access $ 700.2   $ 657.7   6.5 %   1.9 %   4.6 %
Interventional   427.5     382.4   11.8 %   1.9 %   9.9 %
Anesthesia   380.1     302.3   25.8 %   3.2 %   22.6 %
Surgical   377.8     317.2   19.1 %   2.7 %   16.4 %
Interventional Urology   341.7     290.0   17.8 %   0.1 %   17.7 %
OEM   245.7     220.3   11.5 %   1.0 %   10.5 %
Other   336.6     367.3   (8.4 )%   2.2 %   (10.6 )%
Total $ 2,809.6   $ 2,537.2   10.7 %   1.9 %   8.8 %
                             

OTHER FINANCIAL HIGHLIGHTS

  • Depreciation expense, amortization of intangible assets and deferred financing charges for the year ended December 31, 2021 totaled $241.9 million compared to $231.7 million for the prior year period.
  • Cash and cash equivalents at December 31, 2021 were $445.1 million compared to $375.9 million at December 31, 2020.
  • Net accounts receivable at December 31, 2021 were $383.6 million compared to $395.1 million at December 31, 2020.
  • Inventories at December 31, 2021 were $477.6 million compared to $513.2 million at December 31, 2020.
  • Net cash provided by operating activities from continuing operations was $652.1 million for the year ended December 31, 2021, as compared to $437.1 million for 2020. The increase in cash from operations primarily reflects favorable operating results and lower contingent consideration payments.

2022 OUTLOOK
On a GAAP basis, full year 2022 revenues are expected to increase by 2.3% to 3.8%, reflecting our estimate of an approximately 1.7% negative impact of foreign exchange rate fluctuations. On a constant currency basis, the Company expects full year 2022 revenue growth of 4.0% to 5.5%, inclusive of an approximately 1.6% year-over-year headwind from the initial phase of the respiratory divestiture completed on June 28, 2021.

The Company expects full year 2022 GAAP diluted earnings per share from continuing operations of $8.90 to $9.50. The Company estimates 2022 adjusted diluted earnings per share from continuing operations of $13.70 to $14.30, representing a 2.8% to 7.3% increase year-over-year. The divestiture of the respiratory assets is estimated to be dilutive to 2022 adjusted earnings per share by $0.17.

Forecasted 2022 Constant Currency Revenue Growth Reconciliation

  Low   High
Forecasted 2022 GAAP revenue growth 2.30 %   3.80 %
Estimated impact of foreign currency exchange rate fluctuations (1.70 )%   (1.70 )%
Forecasted 2022 constant currency revenue growth 4.00 %   5.50 %
           

Forecasted 2022 Adjusted Diluted Earnings Per Share From Continuing Operations Reconciliation

  Low   High
Forecasted GAAP diluted earnings per share from continuing operations $ 8.90   $ 9.50
Restructuring, restructuring related and impairment items, net of tax $ 0.74   $ 0.74
Acquisition, integration and divestiture related items, net of tax $ 0.01   $ 0.01
Other items, net of tax $ 0.00   $ 0.00
MDR $ 0.79   $ 0.79
Intangible amortization expense, net of tax $ 3.26   $ 3.26
Forecasted adjusted diluted earnings per share from continuing operations $ 13.70   $ 14.30
           

CONFERENCE CALL WEBCAST AND ADDITIONAL INFORMATION
A webcast of Teleflex's fourth quarter 2021 investor conference call can be accessed live from a link on the company's website at teleflex.com. The call will begin at 8:00 am ET on February 24, 2022.

An audio replay of the investor call will be available beginning at 11:00 am ET on February 24, 2022, either on the Teleflex website or by telephone. The call can be accessed by dialing (800) 585-8367 (U.S./Canada) or (416) 621-4642 (International). The confirmation code is 1028958.

ADDITIONAL NOTES
References in this release to the impact of foreign currency exchange rate fluctuations on adjusted diluted earnings per share include both the impact of translating foreign currencies into U.S. dollars and the impact of foreign currency exchange rate fluctuations on foreign currency denominated transactions.

In the discussion of segment results, "new products" refers to products for which we initiated commercial sales within the past 36 months and "existing products" refers to products we have sold commercially for more than 36 months.

Certain financial information is presented on a rounded basis, which may cause minor differences.

Segment results and commentary exclude the impact of discontinued operations.

NOTES ON NON-GAAP FINANCIAL MEASURES
We report our financial results in accordance with accounting principles generally accepted in the United States, commonly referred to as “GAAP.” In this press release, we provide supplemental information, consisting of the following non-GAAP financial measures: constant currency revenue growth and adjusted diluted earnings per share. These non-GAAP measures are described in more detail below. Management uses these financial measures to assess Teleflex’s financial performance, make operating decisions, allocate financial resources, provide guidance on possible future results, and assist in its evaluation of period-to-period and peer comparisons. The non-GAAP measures may be useful to investors because they provide insight into management’s assessment of our business, and provide supplemental information pertinent to a comparison of period-to-period results of our ongoing operations. The non-GAAP financial measures are presented in addition to results presented in accordance with GAAP and should not be relied upon as a substitute for GAAP financial measures. Moreover, our non-GAAP financial measures may not be comparable to similarly titled measures used by other companies.

Tables reconciling changes in historical constant currency net revenues to historical GAAP net revenues are set forth above under “Net Revenue by Segment" and "Net Revenue by Global Product Category". Tables reconciling historical adjusted diluted earnings per share from continuing operations to historical GAAP diluted earnings per share from continuing operations are set forth below.

Constant currency revenue growth: This non-GAAP measure is based upon net revenues, adjusted to eliminate the impact of translating the results of international subsidiaries at different currency exchange rates from period to period. The impact of changes in foreign currency may vary significantly from period to period, and such changes generally are outside of the control of our management. We believe that this measure facilitates a comparison of our operating performance exclusive of currency exchange rate fluctuations that do not reflect our underlying performance or business trends.

Adjusted diluted earnings per share: This non-GAAP measure is based upon diluted earnings per share from continuing operations, the most directly comparable GAAP measure, adjusted to exclude, depending on the period presented, the items described below. Management does not believe that any of the excluded items are indicative of our underlying core performance or business trends.

Restructuring, restructuring related and impairment items - Restructuring programs involve discrete initiatives designed to, among other things, consolidate or relocate manufacturing, administrative and other facilities, outsource distribution operations, improve operating efficiencies and integrate acquired businesses. Depending on the specific restructuring program involved, our restructuring charges may include employee termination, contract termination, facility closure, employee relocation, equipment relocation, outplacement and other exit costs associated with the restructuring program.  Restructuring related charges are directly related to our restructuring programs and consist of facility consolidation costs, including accelerated depreciation expense related to facility closures, costs to transfer manufacturing operations between locations, and retention bonuses offered to certain employees as an incentive for them to remain with our company after completion of the restructuring program. Impairment charges occur if, due to events or changes in circumstances, we determine that the carrying value of an asset exceeds its fair value. Impairment charges do not directly affect our liquidity, but could have a material adverse effect on our reported financial results.

Acquisition, integration and divestiture related items - Acquisition and integration expenses are incremental charges, other than restructuring or restructuring related expenses, that are directly related to specific business or asset acquisition transactions.  These charges may include, among other things, professional, consulting and other fees; systems integration costs; legal entity restructuring expense; inventory step-up amortization (amortization, through cost of goods sold, of the increase in fair value of inventory resulting from a fair value calculation as of the acquisition date); fair value adjustments to contingent consideration liabilities; and bridge loan facility and backstop financing fees in connection with loan facilities that ultimately were not utilized. Divestiture related activities involve specific business or asset sales.  Depending primarily on the terms of a divestiture transaction, the carrying value of the divested business or assets on our financial statements and other costs we incur as a direct result of the divestiture transaction, we may recognize a gain or loss in connection with the divestiture related activities.

Other items - These are discrete items that occur sporadically and can affect period-to-period comparisons. See footnote C to the reconciliation tables set forth below.

European medical device regulation - The European Union (“EU”) has adopted the EU Medical Device Regulation (“MDR”), which replaces the existing Medical Devices Directive (“MDD”) and imposes more stringent requirements for the marketing and sale of medical devices in the EU, including requirements affecting clinical evaluations, quality systems and post-market surveillance.  The MDR requirements became effective in May 2021, although certain devices that previously satisfied MDD requirements can continue to be marketed in the EU until May 2024, subject to certain limitations. Significantly, the MDR will require the re-registration of previously approved medical devices.  As a result, Teleflex will incur expenditures in connection with the new registration of medical devices that previously had been registered under the MDD. Therefore, these expenditures are not considered to be ordinary course expenditures in connection with regulatory matters (in contrast, no adjustment has been made to exclude expenditures related to the registration of medical devices that were not registered previously under the MDD).

Intangible amortization expense - Certain intangible assets, including customer relationships, intellectual property, distribution rights, trade names and non-competition agreements, initially are recorded at historical cost and then amortized over their respective estimated useful lives. The amount of such amortization can vary from period to period as a result of, among other things, business or asset acquisitions or dispositions.

Tax adjustments - These adjustments represent the impact of the expiration of applicable statutes of limitations for prior year returns, the resolution of audits, the filing of amended returns with respect to prior tax years and/or tax law or certain other discrete changes affecting our deferred tax liability.

Reconciliation of Consolidated Statement of Income Items (Dollars in millions, except per share data)

Three Months Ended December 31, 2021
  Gross margin Selling, general and administrative expenses (1) Research and development expenses (1) Operating margin (2) Income before income taxes Income tax expense Effective income tax rate Diluted earnings per share from continuing operations
GAAP Basis 55.1 % 29.9 % 4.7 % 20.4 % $ 143.3   $ 15.8   11.0 % $ 2.69  
Adjustments                
Restructuring, restructuring related and impairment items (A) 1.1   (0.2 )   1.4     10.5     (0.1 )     0.22  
Acquisition, integration and divestiture related items (B)   0.3     (0.4 )   (2.7 )   0.0       (0.06 )
Other items (C) (0.3 )     (0.3 )   (2.2 )   (0.6 )     (0.03 )
MDR     (1.1 ) 1.1     8.7     0.0       0.18  
Intangible amortization expense 2.9   (2.4 )   5.4     40.8     4.6       0.76  
Tax adjustments           0.0     7.7       (0.16 )
Adjustments total 3.7   (2.3 ) (1.1 ) 7.2     55.1     11.6       0.91  
Adjusted basis 58.8 % 27.6 % 3.6 % 27.6 % $ 198.4   $ 27.4   13.8 % $ 3.60  


Three Months Ended December 31, 2020
  Gross margin Selling, general and administrative expenses (1) Research and development expenses (1) Operating margin (2) Income before income taxes Income tax expense Effective income tax rate Diluted earnings per share from continuing operations
GAAP Basis 53.9 % 32.7 % 4.7 % 13.4 % $ 76.6 $ 0.0   (0.1 )% $ 1.62  
Adjustments                
Restructuring, restructuring related and impairment items (A) 1.0       4.1     29.3   1.8       0.58  
Acquisition, integration and divestiture related items (B) 0.1   (2.9 )   2.9     20.7   0.5       0.43  
Other items (C)   (0.1 )   0.1     0.6   0.1       0.01  
MDR     (0.5 ) 0.5     3.8   (0.1 )     0.08  
Intangible amortization expense 3.0   (2.6 )   5.6     40.0   5.5       0.73  
Tax adjustments           0.0   9.5       (0.20 )
Adjustments total 4.1   (5.6 ) (0.5 ) 13.2     94.4   17.3       1.63  
Adjusted basis 58.0 % 27.1 % 4.2 % 26.6 % $ 171.0 $ 17.3   10.1 % $ 3.25  

Notes: (1) Selling, general and administrative expenses and research and development expenses are shown as a percentage of net revenues.
(2) Operating margin defined as Income from continuing operations before interest, loss on extinguishment of debt and taxes as a percentage of net revenues.

Year ended December 31, 2021
  Gross margin Selling, general and administrative expenses (1) Research and development expenses (1) Operating margin (2) Income before income taxes Income tax expense Effective income tax rate Diluted earnings per share from continuing operations
GAAP Basis 55.2 % 30.6 % 4.7 % 22.4 % $ 559.5   $ 74.3   13.3 % $ 10.23  
Adjustments                
Restructuring, restructuring related and impairment items (A) 1.0   (0.1 )   1.9     52.9     4.3       1.03  
Acquisition, integration and divestiture related items (B) 0.1   (0.4 )   (2.7 )   (75.7 )   (14.6 )     (1.29 )
Other items (C) (0.1 ) 0.2     (0.3 )   4.5     2.2       0.04  
MDR     (0.9 ) 0.8     22.9     0.0       0.48  
Intangible amortization expense 3.2   (2.7 )   5.9     165.6     25.5       2.96  
Tax adjustments           0.0     5.8       (0.12 )
Adjustments total 4.2   (3.0 ) (0.9 ) 5.6     170.2     23.2       3.10  
Adjusted basis 59.4 % 27.6 % 3.8 % 28.0 % $ 729.7   $ 97.5   13.4 % $ 13.33  


Year ended December 31, 2020
  Gross margin Selling, general and administrative expenses (1) Research and development expenses (1) Operating margin (2) Income before income taxes Income tax expense Effective income tax rate Diluted earnings per share from continuing operations
GAAP Basis 52.2 % 29.3 % 4.7 % 16.7 % $ 357.7   $ 21.9 6.1 % $ 7.10  
Adjustments                
Restructuring, restructuring related and impairment items (A) 1.0       2.6     65.2     3.0     1.32  
Acquisition, integration and divestiture related items (B) 0.1   1.2     (1.1 )   (26.8 )   1.2     (0.59 )
Other items (C)           1.1     0.3     0.02  
MDR     (0.4 ) 0.4     11.3     0.0     0.24  
Intangible amortization expense 3.4   (3.0 )   6.3     158.7     24.3     2.83  
Tax adjustments           0.0     12.0     (0.25 )
Adjustments total 4.5   (1.8 ) (0.4 ) 8.2     209.5     40.8     3.57  
Adjusted basis 56.7 % 27.5 % 4.3 % 24.9 % $ 567.2   $ 62.7 11.1 % $ 10.67  

Notes: (1) Selling, general and administrative expenses and research and development expenses are shown as a percentage of net revenues.
(2) Operating margin defined as Income from continuing operations before interest, loss on extinguishment of debt and taxes as a percentage of net revenues.

Tickmarks to Reconciliation Tables

(A)    Restructuring, restructuring related and impairment items – For the three months ended December 31, 2021, pre-tax restructuring charges were $1.3 million; pre-tax restructuring related charges were $9.2 million. For the three months ended December 31, 2020, pre-tax restructuring charges were $0.4 million, pre-tax restructuring related charges were $7.5 million, and pre-tax impairment charges were $21.4 million. For the year ended December 31, 2021, pre-tax restructuring charges were $15.0 million, pre-tax restructuring related charges were $31.2 million; and pre-tax impairment charges were $6.7 million. For the year ended December 31, 2020, pre-tax restructuring charges were $17.1 million, pre-tax restructuring related charges were $26.7 million, and pre-tax impairment charges were $21.4 million.

(B)    Acquisition, integration and divestiture related items – For the three months ended December 31, 2021, these charges primarily related to the reversal of contingent consideration liabilities, charges related to our divestiture of certain respiratory assets, and charges related to a legal entity restructuring. For the three months ended December 31, 2020, these charges primarily related to contingent consideration liabilities, reversal of previously recognized income related to a distributor conversion in Japan, and charges primarily related to our acquisition of Z-Medica, LLC. For the year ended December 31, 2021, these items primarily related to a net gain on our divestiture of certain respiratory assets, charges related to contingent consideration liabilities, charges incurred in connection with the Z-Medica, LLC acquisition, and a related legal entity restructuring. For the year ended December 31, 2020, these items primarily related to the reversal of contingent consideration liabilities, partially offset by charges primarily related to our acquisitions of IWG High Performance Conductors, Inc. and Z-Medica, LLC. and the reversal of previously recognized income related to a distributor conversion in Japan.

(C)    Other items – For the three months ended December 31, 2021 other items related to the reversal of a contingent liability related to a foreign tax matter. For the year ended December 31, 2021 other items related to charges incurred in connection with a debt extinguishment; the reversal of contingent liabilities related to tariffs and another foreign tax matter; and a benefit from a prior year tax matter. For the three months ended December 31, 2020, other items included expenses associated with a franchise audit. For the year ended December 31, 2020, other items included expenses associated with a franchise tax audit and prior year tax matters.

ABOUT TELEFLEX INCORPORATED

Teleflex is a global provider of medical technologies designed to improve the health and quality of people’s lives. We apply purpose driven innovation - a relentless pursuit of identifying unmet clinical needs - to benefit patients and healthcare providers. Our portfolio is diverse, with solutions in the fields of vascular access, interventional cardiology and radiology, anesthesia, emergency medicine, surgical, urology and respiratory care. Teleflex employees worldwide are united in the understanding that what we do every day makes a difference. For more information, please visit teleflex.com.

Teleflex is the home of Arrow®, Deknatel®, LMA®, Pilling®, QuikClot®, Rusch®, UroLift®, and Weck® - trusted brands united by a common sense of purpose.

CAUTION CONCERNING FORWARD-LOOKING INFORMATION
This press release contains forward-looking statements, including, but not limited to, statements regarding forecasted 2022 GAAP and constant currency revenue growth and GAAP and adjusted diluted earnings per share; our estimates regarding the projected impact of foreign currency exchange rate fluctuations on our 2022 financial results; and our estimates with regard to the projected impacts of the divestiture of a significant portion of our respiratory business on our financial results.   Actual results could differ materially from those in the forward-looking statements due to, among other things, the adverse economic conditions associated with the COVID-19 global health pandemic and the associated financial crisis, stay-at-home and other orders, which may significantly reduce customer spending and which may have a negative impact on the Company’s business, changes in business relationships with and purchases by or from major customers or suppliers; delays or cancellations in shipments; demand for and market acceptance of new and existing products; our inability to provide products to our customers, which may be due to, among other things, events that impact key distributors, suppliers and third-party vendors that sterilize our products; our inability to integrate acquired businesses into our operations, realize planned synergies and operate such businesses profitably in accordance with our expectations; the inability of acquired businesses to generate revenues in accordance with our expectations; our inability to effectively execute our restructuring plans and programs; our inability to realize anticipated savings from restructuring plans and programs; the impact of healthcare reform legislation and proposals to amend, replace or repeal the legislation; changes in Medicare, Medicaid and third party coverage and reimbursements; the impact of enacted tax legislation and related regulations; competitive market conditions and resulting effects on revenues and pricing; increases in raw material costs that cannot be recovered in product pricing; global economic factors, including currency exchange rates, interest rates, trade disputes, sovereign debt issues and the impact of the United Kingdom's departure from the European Union, commonly known as "Brexit"; public health epidemics; difficulties in entering new markets; general economic conditions; and other factors described or incorporated in our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K.   We expressly disclaim any obligation to update forward-looking statements, except as otherwise specifically stated by us or as required by law or regulation.

TELEFLEX INCORPORATED
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

  Three Months Ended   Twelve Months Ended
  December 31, 2021   December 31, 2020   December 31, 2021   December 31, 2020
  (Dollars and shares in thousands, except per share)
Net revenues $ 761,914     $ 711,179     $ 2,809,563     $ 2,537,156  
Cost of goods sold   342,182       327,625       1,259,961       1,212,282  
Gross profit   419,732       383,554       1,549,602       1,324,874  
Selling, general and administrative expenses   227,584       232,906       860,085       743,568  
Research and development expenses   35,795       33,769       130,841       119,747  
Restructuring and impairment charges   1,287       21,799       21,738       38,491  
Gain on sale of business and assets               (91,157 )      
Income from continuing operations before interest, loss on extinguishment of debt and taxes   155,066       95,080       628,095       423,068  
Interest expense   12,011       18,721       56,969       66,494  
Interest income   (222 )     (202 )     (1,328 )     (1,158 )
Loss on extinguishment of debt               12,986        
Income from continuing operations before taxes   143,277       76,561       559,468       357,732  
Taxes (benefit) on income from continuing operations   15,814       (40 )     74,349       21,931  
Income from continuing operations   127,463       76,601       485,119       335,801  
Income (loss) from discontinued operations   801       (610 )     331       (621 )
Taxes (benefit) on operating loss from discontinued operations   185       (140 )     76       (144 )
Income (loss) from discontinued operations   616       (470 )     255       (477 )
Net income $ 128,079     $ 76,131     $ 485,374     $ 335,324  
Earnings per share:              
Basic:              
Income from continuing operations $ 2.72     $ 1.64     $ 10.37     $ 7.22  
Income (loss) from discontinued operations   0.01       (0.01 )     0.01       (0.01 )
Net income $ 2.73     $ 1.63     $ 10.38     $ 7.21  
Diluted:              
Income from continuing operations $ 2.69     $ 1.62     $ 10.23     $ 7.10  
Income (loss) from discontinued operations   0.01       (0.01 )           (0.01 )
Net income $ 2.70     $ 1.61     $ 10.23     $ 7.09  
Weighted average shares outstanding:              
Basic   46,849       46,599       46,774       46,488  
Diluted   47,417       47,343       47,427       47,287  
                               

TELEFLEX INCORPORATED
CONSOLIDATED BALANCE SHEETS
(Unaudited)

  December 31, 2021   December 31, 2020
  (Dollars in thousands)
ASSETS
Current assets      
Cash and cash equivalents $ 445,084     $ 375,880  
Accounts receivable, net   383,569       395,071  
Inventories   477,643       513,196  
Prepaid expenses and other current assets   117,277       115,436  
Prepaid taxes   5,545       22,842  
Total current assets   1,429,118       1,422,425  
Property, plant and equipment, net   443,758       473,912  
Operating lease assets   129,653       100,635  
Goodwill   2,504,202       2,585,966  
Intangibles assets, net   2,289,067       2,519,746  
Deferred tax assets   6,820       8,073  
Other assets   69,104       41,802  
Total assets $ 6,871,722     $ 7,152,559  
LIABILITIES AND EQUITY      
Current liabilities      
Current borrowings $ 110,000     $ 100,500  
Accounts payable   118,236       102,520  
Accrued expenses   163,441       136,276  
Payroll and benefit-related liabilities   143,657       122,366  
Accrued interest   5,209       7,135  
Income taxes payable   83,943       17,361  
Other current liabilities   55,633       53,869  
Total current liabilities   680,119       540,027  
Long-term borrowings   1,740,102       2,377,888  
Deferred tax liabilities   370,124       484,678  
Pension and postretirement benefit liabilities   45,185       74,499  
Noncurrent liability for uncertain tax positions   8,646       10,127  
Noncurrent operating lease liabilities   116,033       86,097  
Other liabilities   156,765       242,786  
Total liabilities   3,116,974       3,816,102  
Commitments and contingencies      
Shareholders’ equity      
Common shares, $1 par value Issued: 2021 — 47,929 shares; 2020 — 47,812 shares   47,929       47,812  
Additional paid-in capital   693,090       652,305  
Retained earnings   3,517,954       3,096,228  
Accumulated other comprehensive loss   (346,959 )     (297,298 )
    3,912,014       3,499,047  
Less: Treasury stock, at cost   157,266       162,590  
Total shareholders' equity   3,754,748       3,336,457  
Total liabilities and shareholders' equity $ 6,871,722     $ 7,152,559  
               

TELEFLEX INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

  Year ended
  December 31, 2021   December 31, 2020
  (Dollars in thousands)
Cash flows from operating activities of continuing operations:      
Net income $ 485,374     $ 335,324  
Adjustments to reconcile net income to net cash provided by operating activities:      
(Income) loss from discontinued operations   (255 )     477  
Depreciation expense   71,758       68,567  
Intangible asset amortization expense   165,604       158,685  
Deferred financing costs and debt discount amortization expense   4,493       4,430  
Loss on extinguishment of debt   12,986        
Fair value step up of acquired inventory sold   3,993       1,707  
Changes in contingent consideration   8,475       (38,164 )
Impairment of long-lived assets   6,739       21,388  
Stock-based compensation   22,937       20,739  
Net gain on sales of business and assets   (91,157 )      
Deferred income taxes, net   (110,239 )     (32,675 )
Payments for contingent consideration   (230 )     (79,801 )
Interest benefit on swaps designated as net investment hedges   (19,296 )     (19,178 )
Other   (36,388 )     (26,636 )
Changes in operating assets and liabilities, net of effects of acquisitions and disposals:      
Accounts receivable   (600 )     44,748  
Inventories   (11,138 )     (5,497 )
Prepaid expenses and other current assets   (28,410 )     (4,323 )
Accounts payable, accrued expenses and other liabilities   94,020       646  
Income taxes receivable and payable, net   73,473       (13,294 )
Net cash provided by operating activities from continuing operations   652,139       437,143  
Cash flows from investing activities of continuing operations:      
Expenditures for property, plant and equipment   (71,618 )     (90,694 )
Payments for businesses and intangibles acquired, net of cash acquired   (4,590 )     (767,830 )
Proceeds from sales of business and assets   224,909       1,400  
Net interest proceeds on swaps designated as net investment hedges   19,154       19,341  
Proceeds from sales of investments   7,300        
Purchase of investments   (18,418 )      
Net cash provided by (used in) investing activities from continuing operations   156,737       (837,783 )
Cash flows from financing activities of continuing operations:      
Proceeds from new borrowings   400,000       1,513,807  
Reduction in borrowings   (1,034,500 )     (938,807 )
Debt extinguishment, issuance and amendment fees   (9,774 )     (8,440 )
Net proceeds from share based compensation plans and the related tax impacts   12,451       18,994  
Payments for contingent consideration   (31,448 )     (67,170 )
Dividends paid   (63,648 )     (63,221 )
Proceeds from sale of treasury stock   11,097        
Net cash (used in) provided by financing activities from continuing operations   (715,822 )     455,163  
Cash flows from discontinued operations:      
Net cash (used in) provided by operating activities   (720 )     (737 )
Net cash (used in) provided by discontinued operations   (720 )     (737 )
Effect of exchange rate changes on cash and cash equivalents   (23,130 )     21,011  
Net increase (decrease) in cash and cash equivalents   69,204       74,797  
Cash and cash equivalents at the beginning of the year   375,880       301,083  
Cash and cash equivalents at the end of the year $ 445,084     $ 375,880  
               

Contacts:
Teleflex Incorporated:
Lawrence Keusch
Vice President, Investor Relations and Strategy Development

John Hsu, CFA
Vice President, Investor Relations

investors.teleflex.com
610-948-2836


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Source: Teleflex Incorporated