tfx-20230702

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


(Mark One)
☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 2, 2023


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission file number 1-5353

TELEFLEX INCORPORATED

(Exact name of registrant as specified in its charter)


Delaware						23-1147939
(State or other jurisdiction of incorporation or organization)						(I.R.S. employer identification no.)

550 E. Swedesford Rd., Suite 400 Wayne, PA 19087

(Address of principal executive offices and zip code)

(610) 225-6800

(Registrant’s telephone number, including area code)

(None)

(Former Name, Former Address and Former Fiscal Year,

If Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $1.00 per share

TFX

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The registrant had 46,992,159 shares of common stock, par value $1.00 per share, outstanding as of August 1, 2023 .

TELEFLEX INCORPORATED

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTER ENDED JULY 2, 2023

TABLE OF CONTENTS

Page

PART I — FINANCIAL INFORMATION

Item 1:

Financial Statements (Unaudited):

Condensed Consolidated Statements of Income

Condensed Consolidated Statements of Comprehensive Income

Condensed Consolidated Balance Sheets

Condensed Consolidated Statements of Cash Flows

Condensed Consolidated Statements of Changes in Equity

Notes to Condensed Consolidated Financial Statements

Item 2:

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 3:

Quantitative and Qualitative Disclosures About Market Risk

Item 4:

Controls and Procedures

PART II — OTHER INFORMATION

Item 1:

Legal Proceedings

Item 1A:

Risk Factors

Item 2:

Unregistered Sales of Equity Securities and Use of Proceeds

Item 3:

Defaults Upon Senior Securities

Item 4:

Mine Safety Disclosures

Item 5:

Other Information

Item 6:

Exhibits

SIGNATURES

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

TELEFLEX INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	Three Months Ended				Six Months Ended
	July 2, 2023		June 26, 2022		July 2, 2023		June 26, 2022
	(Dollars and shares in thousands, except per share)
Net revenues	$	743,259	$	704,542	$	1,454,191	$	1,346,257
Cost of goods sold	335,436		315,709		654,988		611,191
Gross profit	407,823		388,833		799,203		735,066
Selling, general and administrative expenses	223,306		216,825		456,022		420,757
Research and development expenses	39,448		36,934		80,917		73,294
Restructuring and impairment charges (credits)	1,508		(83)		3,729		2,322

Income from continuing operations before interest and taxes	143,561		135,157		258,535		238,693
Interest expense	17,762		11,419		36,099		21,837
Interest income	(1,156)		(229)		(1,999)		(451)

Income from continuing operations before taxes	126,955		123,967		224,435		217,307
Taxes on income from continuing operations	15,532		18,412		35,716		34,385
Income from continuing operations	111,423		105,555		188,719		182,922
Operating loss from discontinued operations	(114)		(54)		(825)		(348)
Tax benefit on operating loss from discontinued operations	(26)		(13)		(189)		(81)
Loss from discontinued operations	(88)		(41)		(636)		(267)
Net income	$	111,335	$	105,514	$	188,083	$	182,655
Earnings per share:
Basic:
Income from continuing operations	$	2.37	$	2.25	$	4.02	$	3.90
Loss from discontinued operations	—		—		(0.02)		—
Net income	$	2.37	$	2.25	$	4.00	$	3.90
Diluted:
Income from continuing operations	$	2.35	$	2.23	$	3.99	$	3.86
Loss from discontinued operations	—		—		(0.01)		—
Net income	$	2.35	$	2.23	$	3.98	$	3.86
Weighted average common shares outstanding
Basic	46,981		46,901		46,965		46,889
Diluted	47,329		47,347		47,307		47,374

The accompanying notes are an integral part of the condensed consolidated financial statements.

TELEFLEX INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	Three Months Ended				Six Months Ended
	July 2, 2023		June 26, 2022		July 2, 2023		June 26, 2022
	(Dollars in thousands)
Net income	$	111,335	$	105,514	$	188,083	$	182,655
Other comprehensive (loss) income, net of tax:
Foreign currency translation, net of tax of $1,263, $(6,688), $4,233, and $(7,823) for the three and six months periods, respectively	(2,521)		(45,053)		16,049		(68,382)
Pension and other postretirement benefit plans adjustment, net of tax of $(352), $(647), $(706), and $(1,146) for the three and six months periods, respectively	1,195		2,026		2,408		3,612
Derivatives qualifying as hedges, net of tax of $330, $(104), $450, and $(134) for the three and six months periods, respectively	793		2,577		3,201		3,034
Other comprehensive (loss) income, net of tax:	(533)		(40,450)		21,658		(61,736)
Comprehensive income	$	110,802	$

SEC Form 10-Q filed by Teleflex Incorporated