Teleflex Inc. (TFX, Financial) filed Quarterly Report for the period ended 2010-06-27.
Teleflex Inc. has a market cap of $2.19 billion; its shares were traded at around $54.8 with a P/E ratio of 14.6 and P/S ratio of 1.2. The dividend yield of Teleflex Inc. stocks is 2.5%. Teleflex Inc. had an annual average earning growth of 6.5% over the past 10 years.TFX is in the portfolios of Robert Olstein of Olstein Financial Alert Fund, David Dreman of Dreman Value Management, Manning & Napier Advisors, Inc, Chuck Royce of Royce& Associates, Bruce Kovner of Caxton Associates, Murray Stahl of Horizon Asset Management, Steven Cohen of SAC Capital Advisors.
Net revenues for the first six months of 2010 increased approximately 3% to $882.9 million from $854.3 million in 2009. Revenues from core business increased 3%, foreign currency translation increased sales 1%, while the disposition of a product line in the Commercial Segment during the first quarter of 2009 and the deconsolidation of an entity in the Medical Segment in the first quarter of 2010 resulted in an aggregate 1% decline in revenues. Each of our three segments report higher core revenues: Medical (1%), Aerospace (4%) and Commercial (21%).
Selling, general and administrative expenses as a percentage of revenues for the second quarter of 2010 decreased to 25.7% from 26.8% in 2009. The $1 million increase in costs was due to approximately $3 million of higher spending, principally related to Medical Segment sales and marketing activities, offset by a $2 million reduction caused by foreign currency exchange fluctuations.
Interest expense decreased in the second quarter of 2010 compared to the same period of 2009 due to a reduction of approximately $126 million in average outstanding debt. For the first six months of 2010, average outstanding debt was approximately $215 million lower compared to the corresponding period of 2009.
In December 2008, we began certain restructuring initiatives that affected the Commercial Segment. These initiatives involved the consolidation of operations and a related reduction in workforce at three of our facilities in Europe and North America. We determined to undertake these initiatives to improve operating performance and to better leverage our existing resources in light of expected weakness in the marine and industrial markets. By December 31, 2009, we had completed the 2008 Commercial Segment restructuring program and all costs associated with the program were fully paid during 2009. Therefore, no charges were recorded under this program in 2010. We expect to realize annual pre-tax savings of between $3.5 $4.5 million in 2010 as a result of actions taken in connection with this program.
In connection with the acquisition of Arrow in 2007, we formulated a plan related to the integration of Arrow and our other Medical businesses. The integration plan focused on the closure of Arrow corporate functions and the consolidation of manufacturing, sales, marketing and distribution functions in North America, Europe and Asia. Costs related to actions that affected employees and facilities of Arrow have been included in the allocation of the purchase price of Arrow. Costs related to actions that affected employees and facilities of Teleflex are charged to earnings and included in restructuring and impairment charges within the condensed consolidated statement of operations. These costs amounted to approximately $0.1 million and $0.5 million during the three and six months ended June 27, 2010, respectively. As of June 27, 2010, we estimate that, for the remainder of 2010, the aggregate of future restructuring and impairment charges that we will incur in connection with the Arrow integration plan are approximately $0.9 $1.7 million. Of this amount, $0.5 $1.0 million relates to employee termination costs, $0.3 $0.5 million relates to facility closure costs and $0.1 $0.2 million relates to contract termination costs associated with the termination of a European distributor agreement. We expect to have realized aggregate annual pre-tax savings of between $70 $75 million after these integration and restructuring actions are complete.
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Teleflex Inc. has a market cap of $2.19 billion; its shares were traded at around $54.8 with a P/E ratio of 14.6 and P/S ratio of 1.2. The dividend yield of Teleflex Inc. stocks is 2.5%. Teleflex Inc. had an annual average earning growth of 6.5% over the past 10 years.TFX is in the portfolios of Robert Olstein of Olstein Financial Alert Fund, David Dreman of Dreman Value Management, Manning & Napier Advisors, Inc, Chuck Royce of Royce& Associates, Bruce Kovner of Caxton Associates, Murray Stahl of Horizon Asset Management, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
During the third quarter of 2009, we completed the sale of our Power Systems operations to Fuel Systems Solutions, Inc. for $14.5 million and realized a loss of $3.3 million, net of tax. During the second quarter of 2009, we recognized a non-cash goodwill impairment charge of $25.1 million to adjust the carrying value of the Power Systems operations to their estimated fair value.Net revenues for the first six months of 2010 increased approximately 3% to $882.9 million from $854.3 million in 2009. Revenues from core business increased 3%, foreign currency translation increased sales 1%, while the disposition of a product line in the Commercial Segment during the first quarter of 2009 and the deconsolidation of an entity in the Medical Segment in the first quarter of 2010 resulted in an aggregate 1% decline in revenues. Each of our three segments report higher core revenues: Medical (1%), Aerospace (4%) and Commercial (21%).
Selling, general and administrative expenses as a percentage of revenues for the second quarter of 2010 decreased to 25.7% from 26.8% in 2009. The $1 million increase in costs was due to approximately $3 million of higher spending, principally related to Medical Segment sales and marketing activities, offset by a $2 million reduction caused by foreign currency exchange fluctuations.
Interest expense decreased in the second quarter of 2010 compared to the same period of 2009 due to a reduction of approximately $126 million in average outstanding debt. For the first six months of 2010, average outstanding debt was approximately $215 million lower compared to the corresponding period of 2009.
In December 2008, we began certain restructuring initiatives that affected the Commercial Segment. These initiatives involved the consolidation of operations and a related reduction in workforce at three of our facilities in Europe and North America. We determined to undertake these initiatives to improve operating performance and to better leverage our existing resources in light of expected weakness in the marine and industrial markets. By December 31, 2009, we had completed the 2008 Commercial Segment restructuring program and all costs associated with the program were fully paid during 2009. Therefore, no charges were recorded under this program in 2010. We expect to realize annual pre-tax savings of between $3.5 $4.5 million in 2010 as a result of actions taken in connection with this program.
In connection with the acquisition of Arrow in 2007, we formulated a plan related to the integration of Arrow and our other Medical businesses. The integration plan focused on the closure of Arrow corporate functions and the consolidation of manufacturing, sales, marketing and distribution functions in North America, Europe and Asia. Costs related to actions that affected employees and facilities of Arrow have been included in the allocation of the purchase price of Arrow. Costs related to actions that affected employees and facilities of Teleflex are charged to earnings and included in restructuring and impairment charges within the condensed consolidated statement of operations. These costs amounted to approximately $0.1 million and $0.5 million during the three and six months ended June 27, 2010, respectively. As of June 27, 2010, we estimate that, for the remainder of 2010, the aggregate of future restructuring and impairment charges that we will incur in connection with the Arrow integration plan are approximately $0.9 $1.7 million. Of this amount, $0.5 $1.0 million relates to employee termination costs, $0.3 $0.5 million relates to facility closure costs and $0.1 $0.2 million relates to contract termination costs associated with the termination of a European distributor agreement. We expect to have realized aggregate annual pre-tax savings of between $70 $75 million after these integration and restructuring actions are complete.
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