Teleflex second quarter net revenues increase 9.2% to $391.3 million

Teleflex Incorporated (NYSE: TFX) today announced financial results for the second quarter and six months ended June 26, 2011.

Second quarter 2011 net revenues were $391.3 million, an increase of 9.2% over the prior year period. Excluding the impact of foreign exchange, second quarter 2011 net revenues increased 4.0% over the prior year period.

Second quarter 2011 GAAP diluted earnings per share from continuing operations was $0.77, a decrease of 3.8% over the prior year period. Second quarter 2011 adjusted diluted earnings per share from continuing operations was $0.94, a decrease of 3.1% over the prior year period. The decline in adjusted diluted earnings per share is related to higher manufacturing, raw material and fuel-related freight costs, unfavorable product mix and the continued investment in sales, marketing and research and development expenses. This was somewhat offset by an increase in sales volume, improved pricing, as well as a reduction in interest expense.

Net revenues for the first six months of 2011 were $745.3 million, an increase of 6.2% over the prior year period. Excluding the impact of foreign exchange, net revenues for the first six months of 2011 increased 3.5% over the prior year period.

GAAP diluted earnings per share from continuing operations for the first six months of 2011 was $1.11, a decrease of 31.1% over the prior year period. Adjusted diluted earnings per share from continuing operations for the first six months of 2011 was $1.82, a decrease of 6.7% over the prior year period. The decline in adjusted diluted earnings per share is related to higher manufacturing, raw material and fuel-related freight costs, unfavorable product mix and the continued investment in sales, marketing and research and development expenses. This was somewhat offset by an increase in sales volume and reduced interest expense.

"Teleflex generated solid revenue results during the second quarter 2011, which reflect further progress toward achieving our longer-term growth objectives," said Benson Smith, Chairman, President & CEO. "Our revenue growth of four percent was driven by a combination of market share gains, selected price increases and improved traction of recently introduced products."

Added Mr. Smith, "We resolved the FDA corporate warning letter related to our Arrow International subsidiary, and we completed the transformation from a cyclical, diversified-industrial conglomerate to a pure-play medical technology company. In addition, we refinanced our debt to improve Teleflex's long-term capital structure and increase our financial flexibility to pursue unique, late-stage technology and strategic acquisitions to drive future growth. At the same time, we strengthened our competitive position during the quarter with new group purchasing organization contracts that include our VasoNova® Vascular Positioning System and Rusch laryngoscope products."

SECOND QUARTER NET REVENUE BY PRODUCT GROUP

Critical Care second quarter 2011 net revenues were $253.6 million, an increase of 8.5% over the prior year period on an as reported basis. Excluding the impact of foreign exchange, second quarter 2011 net revenues increased 3.2% over the prior year period. The increase in revenue was due to higher sales across all product lines.

Surgical Care second quarter 2011 net revenues were $72.9 million, an increase of 10.1% over the prior year period on an as reported basis. Excluding the impact of foreign exchange, second quarter 2011 net revenues increased 4.3% over the prior year period. The increase in revenue was due to higher sales of ligation products in Europe and Asia/Latin America.

Cardiac Care second quarter 2011 net revenues were $22.1 million, an increase of 17.6% over the prior year period. Excluding the impact of foreign exchange, second quarter 2011 net revenues increased 10.5% over the prior year period. The increase in revenue was due to higher sales of intra-aortic balloon pumps and catheters.

OEM and Development Services second quarter 2011 net revenues were $42.4 million, an increase of 8.7% over the prior year period on an as reported basis. Excluding the impact of foreign exchange, second quarter 2011 net revenues increased 6.8% over the prior year period. The increase in revenue was due to higher sales of specialty and orthopedic products.

OTHER FINANCIAL HIGHLIGHTS AND KEY PERFORMANCE METRICS

Depreciation and amortization expense of intangible assets and deferred financing costs and debt discount for the first six months of 2011 was $49.7 million compared to $44.6 million for the first six months of 2010.

Cash and cash equivalents at June 26, 2011 were $365.8 million.

Net accounts receivable at June 26, 2011 were $283.2 million.

Net inventories at June 26, 2011 were $293.8 million.

Net debt obligations at June 26, 2011 were $688.9 million.

December 31, 2010 balance sheet amounts were not referenced above because businesses were either sold or reclassified to discontinued operations during 2011 and the Company does not find comparisons to the December 31, 2010 balance sheet amounts to be meaningful.

2011 OUTLOOK

The Company's financial estimates for 2011 are as follows:

Revenue in the range of $1.44 billion to $1.47 billion

Adjusted earnings per share in the range of $4.05 to $4.25

Cash flow from continuing operations in the range of $180 to $210 million. This compares to the Company's prior expectation for full year 2011 cash flow from continuing operations of approximately $210 million. The revised cash flow from operations guidance is associated with the Company's intention to increase inventory levels during 2011 as it continues to focus on gaining additional market share and the reduction in the amount of time it takes to fulfill a customers' order.