Teleflex Incorporated (TFX) has reported a 9.04 percent rise in profit for the quarter ended Sep. 25, 2016. The company has earned $66.32 million, or $1.40 a share in the quarter, compared with $60.82 million, or $1.25 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $82.60 million, or $1.80 a share compared with $72.10 million or $1.60 a share, a year ago. Revenue during the quarter went up marginally by 2.69 percent to $455.65 million from $443.71 million in the previous year period. Gross margin for the quarter expanded 159 basis points over the previous year period to 53.02 percent. Total expenses were 81.02 percent of quarterly revenues, down from 82.75 percent for the same period last year. This has led to an improvement of 173 basis points in operating margin to 18.98 percent.
Operating income for the quarter was $86.49 million, compared with $76.55 million in the previous year period.
"Third quarter sales were below our expectations, driven in part by weakness in certain Asian emerging markets, continued softness in oil-based Latin American economies, the timing of distributor purchases which negatively impacted some of our North American product lines and a slower than initially anticipated contribution from revenue associated with new products," said Benson Smith, chairman and chief executive officer. "Despite the softness in revenue, non-revenue dependent financial leverage allowed the Company's adjusted earnings per share performance in the third quarter to exceed our expectations."
For financial year 2016, Teleflex Incorporated projects diluted earnings per share to be in the range of $5.34 to $5.41. The company projects diluted earnings per share to be in the range of $7.25 to $7.34 on adjusted basis.
Operating cash flow improves significantly
Teleflex Incorporated has generated cash of $300.15 million from operating activities during the nine month period, up 71.70 percent or $125.34 million, when compared with the last year period. The company has spent $40.16 million cash to meet investing activities during the nine month period as against cash outgo of $108.61 million in the last year period. It has incurred net capital expenditure of $26.12 million on net basis during the nine month period, down 42.16 percent or $19.04 million from year ago period.
The company has spent $97.91 million cash to carry out financing activities during the nine month period as against cash outgo of $70.92 million in the last year period.
Cash and cash equivalents stood at $499.46 million as on Sep. 25, 2016, up 80.66 percent or $223 million from $276.46 million on Sep. 27, 2015.
Working capital increases sharply
Teleflex Incorporated has recorded an increase in the working capital over the last year. It stood at $711.47 million as at Sep. 25, 2016, up 87.88 percent or $332.79 million from $378.68 million on Sep. 27, 2015. Current ratio was at 2.57 as on Sep. 25, 2016, up from 1.58 on Sep. 27, 2015.
Cash conversion cycle (CCC) has decreased to 97 days for the quarter from 174 days for the last year period. Days sales outstanding went down to 55 days for the quarter compared with 57 days for the same period last year.
Days inventory outstanding has decreased to 73 days for the quarter compared with 146 days for the previous year period. At the same time, days payable outstanding was almost stable at 31 days for the quarter, when compared with the previous year period.
Debt comes down marginally
Teleflex Incorporated has recorded a decline in total debt over the last one year. It stood at $1,031.86 million as on Sep. 25, 2016, down 2.90 percent or $30.82 million from $1,062.68 million on Sep. 27, 2015. Total debt was 25.79 percent of total assets as on Sep. 25, 2016, compared with 27.19 percent on Sep. 27, 2015. Debt to equity ratio was at 0.48 as on Sep. 25, 2016, down from 0.55 as on Sep. 27, 2015. Interest coverage ratio improved to 6.71 for the quarter from 5.35 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
