Teleflex refines balance sheet, ends Q2 with net debt of $867 million

By Lisa Kerner

Charlotte, N.C., July 30 – Teleflex Inc. took steps during the second quarter “to further refine” its capital structure and to delever, said executive vice president and chief financial officer Thomas Powell.

Powell made his comments on Wednesday during a conference call to discuss the company’s results.

In April, Teleflex restructured its foreign holdings, repatriating $230 million of foreign cash. The cash was used to partially fund a $235 million repayment of borrowings under the company’s revolving credit facility.

In May, Teleflex issued $250 million of 5¼% senior unsecured notes due in 2024. Powell said the proceeds were used to partially fund an additional $245 million repayment of borrowings under the revolving credit facility.

“Through these actions, we were able to both reduce overall leverage and free up the revolver by terming out borrowings at an attractive 10-year rate,” said Powell.

Teleflex ended the quarter on June 29 with net debt of about $867 million compared to $903 million at year-end.

Cash and cash equivalents at quarter-end totaled about $237 million compared to $432 million at Dec. 31. Teleflex attributed the decline to the $235 million repayment on the revolver.

Financial highlights

“Despite the impact of one less selling day in the second quarter of 2014 as compared to the prior-year period, Teleflex delivered double-digit constant currency revenue and adjusted earnings per share growth,” chairman and chief executive officer Benson Smith.

For the first six months of the year, cash flow from operations increased 114% year over year to $120 million.

Second-quarter net revenues were up 11.4% from a year ago at about $468 million, according to the earnings news release.

Diluted earnings per share were $1.04 for the quarter as compared to $0.99 in the prior-year period, an increase of 5.1%. Adjusted diluted earnings per share were up 18.9% year over year at $1.51.

Teleflex increased its full-year adjusted diluted earnings per share guidance range to $5.45 to $5.60 from $5.35 to $5.55, said Benson.

Teleflex is a Limerick, Pa.-based surgical equipment manufacturer.

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