第99.1展示文本
 |  | ||||
| 1049 Camino Dos Rios 加利福尼亞州千橡市91360-2362 | |||||
資訊發佈
Teledyne Technologies發佈報告
第三季度業績。
千橡加利福尼亞州-2024年10月23日-teledyne technologies公司（紐交所：TDY）
•連續四個季度訂單超過銷售額
•創下歷史新高的季度銷售額爲144350萬美元，比去年增長2.9%
•第三季度的財務會計淨營業利潤率爲18.8%，非財務會計淨營業利潤率爲22.5%
•第三季度按照通用會計準則計算的每股稀釋收益爲5.54美元，非通用會計準則計算的每股稀釋收益爲5.10美元
•第三季度經營活動現金流爲24980萬美元，自由現金流爲22870萬美元
•將2024全年GAAP攤薄每股收益預期上調至17.28至17.42美元，較之前的展望15.87至16.13美元，並將2024全年非GAAP每股收益展望調整至19.35至19.45美元，較之前的展望19.25至19.45美元
•2024年10月份目前的資本投入包括預計的約35400萬美元的股票回購。
•季度末綜合槓桿率爲1.7倍
Teledyne今天報告了2024年第三季度銷售額爲144350萬美元，相比2023年第三季度的銷售額爲140250萬美元，增長了2.9%。淨利潤歸屬於Teledyne的2024年第三季度爲26200萬美元（每股攤薄收益爲5.54美元），相比2023年第三季度的19860萬美元（每股攤薄收益爲4.15美元），增長了31.9%。2024年第三季度包括4980萬美元的稅前收購無形資產攤銷費用，370萬美元的稅前FLIR整合成本以及6170萬美元的FLIR收購相關離散所得稅收益。不計入這些項目，2024年第三季度歸屬於Teledyne的非GAAP淨收入爲24130萬美元（每股攤薄收益爲5.10美元）。2023年第三季度包括4910萬美元的稅前收購無形資產攤銷費用，580萬美元的稅前FLIR整合成本以及100萬美元的FLIR收購相關離散所得稅費用。不計入這些項目，2023年第三季度歸屬於Teledyne的非GAAP淨收入爲24190萬美元（每股攤薄收益爲5.05美元）。
營業利潤率分別爲2024年第三季度和2023年第三季度的18.8%。不計稅前收購無形資產攤銷費用和稅前FLIR整合成本，2024年第三季度的非GAAP營業利潤率爲22.5%，相比2023年第三季度的22.8%。
「Teledyne在第三季度實現了創紀錄的訂單和銷售額。」執行主席羅伯特·梅赫拉比安說。「每個板塊的營業收入都有順序增長，使我們能夠報告符合預期的整體年同比增長。我們繼續看到我們較長週期的軍工、空間和能源業務有強勁的需求。此外，我們大部分較短週期的商業板塊的銷售額已經穩定或者正在復甦，而年同比增長的對比剛剛開始放緩。在過去幾個月裏，我們有策略地回購了35400萬的股票，並且我們將繼續評估股份回購和收購之間的關係，最近收購渠道已經有所改善。」
1
運營回顧
與2023年第三季度相比，除非另有說明。
數字成像
數字成像板塊2024年第三季度淨銷售額爲76840萬美元，較77580萬美元下降1.0%。營業收入爲2024年第三季度12390萬美元，較13630萬美元下降9.1%。2024年第三季度包括370萬美元的稅前FLIR整合成本，而去年同期爲580萬美元。2024年第三季度收購的無形資產攤銷費用爲4600萬美元，而去年同期爲4540萬美元。除去這些項目，2024年第三季度的非GAAP營業收入爲17360萬美元，較18750萬美元下降7.4%。
2024年第三季度淨銷售額主要由於工業自動化成像系統和X射線產品銷售減少而下降，部分抵消了無人駕駛飛行系統、監視系統、紅外探測器和商用紅外成像系統銷售增加。2024年第三季度還包括最近收購所帶來的1080萬美元的額外銷售額。運營收入下降主要是由於銷售額減少和不利的產品組合，包括工業自動化成像系統銷售額降低。
儀器設備
儀器儀表部門2024年第三季度的淨銷售額爲34980萬美元，相比32910萬美元增長了6.3%。2024年第三季度的營業收入爲9630萬美元，相比8550萬美元增長了12.6%。
2024年第三季度淨銷售額增長主要源於海洋儀器銷售增加3190萬美元，主要因近海能源和軍工市場較強，部分抵消了電子測試和測量儀器銷售減少720萬美元以及環保儀器銷售減少400萬美元的影響。2024年第三季度還包括最近收購的公司帶來的720萬美元額外銷售收入。運營收入增長主要反映了海洋儀器銷售增加，海洋儀器產品組合和利潤率改善等因素的影響。
航空航天與國防電子
航空航天與國防電子部門2024年第三季度淨銷售額爲20020萬美元，相比18330萬美元，增長了9.2%。 第三季度2024年營業利潤爲5630萬美元，相比4940萬美元，增長了14.0%。
2024年第三季度淨銷售額反映出軍工電子銷售額增加1260萬美元，航空航天電子銷售額增加430萬美元。運營收入增加主要反映出銷售額增加和產品組合有利的影響。
特種系統
2024年第三季度，工程系統部門的淨銷售額爲12510萬美元，相比11430萬美元，增長了9.4%。2024年第三季度的營業利潤爲1290萬美元，相比1090萬美元，增長了18.3%。
2024年第三季度淨銷售額反映了工程產品銷售額增加1020萬美元，能源系統銷售額增加60萬美元。工程產品銷售額的增加主要反映了電子製造業-半導體產品銷售的增加。營業收入的增加主要是由淨銷售額上升導致的。
2
其他財務信息
現金流
2024年第三季度經營活動產生的現金爲24980萬元，較27820萬元下降，主要原因是2024年第三季度所繳納的所得稅較高。2024年第三季度和2019年的折舊及攤銷費用均爲7690萬元。2024年第三季度的股權報酬支出爲870萬元，而2019年爲800萬元。
Capital expenditures for the third quarter of 2024 were $21.1 million compared with $23.0 million. Teledyne received $5.0 million from the exercise of stock options in the third quarter of 2024 compared with $12.2 million.
During the third quarter of 2024, the Company repurchased approximately 0.3 million shares for $138.8 million, bringing the year-to-date repurchases to $332.6 million through the end of September 2024.
As of September 29, 2024, net debt was $2,237.0 million which is calculated as total debt of $2,798.0 million, net of cash and cash equivalents of $561.0 million. As of December 31, 2023, net debt was $2,596.6 million representing total debt of $3,244.9 million, net of cash and cash equivalents of $648.3 million.
As of September 29, 2024, $1,171.1 million was available under the $1.20 billion credit facility, after reductions of $28.9 million in outstanding letters of credit.
| Third Quarter | ||||||||||||||
| 2024 | 2023 | |||||||||||||
| Free Cash Flow | ||||||||||||||
| Cash provided by operating activities | $ | 249.8 | $ | 278.2 | ||||||||||
| Capital expenditures for property, plant and equipment | (21.1) | (23.0) | ||||||||||||
| Free cash flow | $ | 228.7 | $ | 255.2 | ||||||||||
Income Taxes
The effective tax rate for the third quarter of 2024 was negative 2.8%, compared with 19.2%. The third quarter of 2024 reflected net discrete income tax benefits of $62.3 million compared with $6.1 million, with the third quarter of 2024 benefits primarily related to the resolution of an uncertain tax position related to a pre-acquisition FLIR tax matter.
Other
Corporate expense was $18.7 million for the third quarter of 2024 compared with $17.8 million. Non-service retirement benefit income was $2.8 million for the third quarter of 2024 compared with $3.1 million. Interest expense, net of interest income, was $15.7 million for the third quarter of 2024 compared with $18.4 million, with the decrease due to reduced outstanding borrowings compared to the third quarter of 2023.
Outlook
Based on its current outlook, the company’s management believes that fourth quarter 2024 GAAP diluted earnings per share will be in the range of $4.27 to $4.41 and full year 2024 GAAP diluted earnings per share will be in the range of $17.28 to $17.42. The company’s management further believes that fourth quarter 2024 non-GAAP diluted earnings per share will be in the range of $5.13 to $5.23 and full year 2024 non-GAAP diluted earnings per share will be in the range of $19.35 to $19.45. The non-GAAP outlook excludes acquired intangible asset amortization for all acquisitions, FLIR integration costs and FLIR acquisition-related tax matters.
3
Use of Non-GAAP Financial Measures
We report our financial results in accordance with generally accepted accounting principles in the United States (“GAAP”). We supplement the reporting of our financial results determined under GAAP with certain non-GAAP financial measures. The non-GAAP financial measures presented provides management, financial analysts, and investors with additional useful information in evaluating the performance of the company. The non-GAAP financial measures should be considered in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP. Further details on reasons that we use non-GAAP financial measures, a reconciliation of these measures to the most directly comparable GAAP measures, and other information relating to these measures are included following our GAAP financial statements.
Forward-Looking Statements Cautionary Notice
This earnings release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, with respect to management’s beliefs about the financial condition, results of operations, acquisitions and product synergies, integration costs, tax matters and businesses of Teledyne in the future. Forward-looking statements involve risks and uncertainties, are based on the current expectations of the management of Teledyne and are subject to uncertainty and changes in circumstances.
The forward-looking statements contained herein may include statements relating to sales, sales growth, stock-based compensation expense, tax rates, anticipated capital expenditures, stock repurchases, product developments and other strategic options. Forward-looking statements generally are accompanied by words such as “projects”, “intends”, “expects”, “anticipates”, “targets”, “estimates”, “will” and words of similar import that convey the uncertainty of future events or outcomes. All statements made in this communication that are not historical in nature should be considered forward-looking. By its nature, forward-looking information is not a guarantee of future performance or results and involves risks and uncertainties because it relates to events and depends on circumstances that will occur in the future.
Actual results could differ materially from these forward-looking statements. Many factors could change anticipated results, including: changes in relevant tax and other laws; foreign currency exchange risks; rising interest rates; risks associated with indebtedness, as well as our ability to reduce indebtedness and the timing thereof; the impact of semiconductor and other supply chain shortages; higher inflation, including wage competition and higher shipping costs; labor shortages and competition for skilled personnel; the inability to develop and market new competitive products; inherent uncertainties involved in the estimates and judgments used in the preparation of financial statements and the providing of estimates of financial measures, in accordance with U.S. GAAP and related standards; disruptions in the global economy; the ongoing conflict in Israel and neighboring regions, including related protests, attacks on defense contractors and suppliers and the disruption to global shipping routes; the ongoing conflict between Russia and Ukraine, including the impact to energy prices and availability, especially in Europe; customer and supplier bankruptcies; changes in demand for products sold to the defense electronics, instrumentation, digital imaging, energy exploration and production, commercial aviation, semiconductor and communications markets; funding, continuation and award of government programs; cuts to defense spending resulting from existing and future deficit reduction measures or changes to U.S. and foreign government spending and budget priorities triggered by inflation, rising interest costs, and economic conditions; impacts from the United Kingdom’s exit from the European Union; uncertainties related to the 2024 U.S. Presidential election; the imposition and expansion of, and responses to, trade sanctions and tariffs; the continuing review and resolution of FLIR’s trade compliance and tax matters; escalating economic and diplomatic tension between China and the United States; threats to the security of our confidential and proprietary information, including cybersecurity threats; risks related to artificial intelligence; natural and man-made disasters, including those related to or intensified by climate change; and our ability to achieve emission reduction targets and decrease our carbon footprint. Lower oil and natural gas prices, as well as instability in the Middle East or other oil producing regions, and new regulations or restrictions relating to energy production, including those implemented in response to climate change, could further negatively affect our businesses that supply the oil and gas industry. Weakness in the commercial aerospace industry negatively affects the markets of our commercial aviation businesses. The recent machinist strike at Boeing as well as the ongoing issues with Boeing’s 737 MAX product line could result in manufacturing delays and lower sales of our products to Boeing. In addition, financial market fluctuations affect the value of the company’s pension assets. Changes in the policies of U.S. and foreign
4
governments, including economic sanctions, could result, over time, in reductions or realignment in defense or other government spending and further changes in programs in which the company participates.
While the company’s growth strategy includes possible acquisitions, we cannot provide any assurance as to when, if or on what terms any acquisitions will be made. Acquisitions involve various inherent risks, such as, among others, our ability to integrate acquired businesses, retain key management and customers and achieve identified financial and operating synergies. There are additional risks associated with acquiring, owning and operating businesses internationally, including those arising from U.S. and foreign government policy changes or actions and exchange rate fluctuations.
Additional factors that could cause results to differ materially from those described above can be found in Teledyne’s Annual Report on Form 10-K for the year ended December 31, 2023, as well as subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, all of which are on file with the SEC and available in the “Investors” section of Teledyne’s website, teledyne.com, under the heading “Investor Information” and in other documents Teledyne files with the SEC.
All forward-looking statements speak only as of the date they are made and are based on information available at that time. Teledyne assumes no obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.
A live webcast of Teledyne’s third quarter earnings conference call will be held at 11:00 a.m. (Eastern) on Wednesday, October 23, 2024. To access the call, go to www.teledyne.com/investors/events-and-presentations approximately ten minutes before the scheduled start time. A replay will also be available for one month starting at 12:00 p.m. (Eastern) on Wednesday, October 23, 2024.
| Contact: | Jason VanWees | ||||
| (805) 373-4542 | |||||
5
TELEDYNE TECHNOLOGIES INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THIRD QUARTER AND NINE MONTHS ENDED
SEPTEMBER 29, 2024 AND OCTOBER 1, 2023
(Unaudited - in millions, except per share amounts)
| Third Quarter | Third Quarter | Nine Months | Nine Months | |||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
| Net sales | $ | 1,443.5 | $ | 1,402.5 | $ | 4,167.7 | $ | 4,210.5 | ||||||||||||||||||
| Costs and expenses: | ||||||||||||||||||||||||||
| Costs of sales | 823.9 | 797.2 | 2,375.6 | 2,394.2 | ||||||||||||||||||||||
| Selling, general and administrative | 299.1 | 291.9 | 891.8 | 905.3 | ||||||||||||||||||||||
| Acquired intangible asset amortization | 49.8 | 49.1 | 148.3 | 148.1 | ||||||||||||||||||||||
| Total costs and expenses | 1,172.8 | 1,138.2 | 3,415.7 | 3,447.6 | ||||||||||||||||||||||
| Operating income (loss) | 270.7 | 264.3 | 752.0 | 762.9 | ||||||||||||||||||||||
| Interest and debt income (expense), net | (15.7) | (18.4) | (44.2) | (61.7) | ||||||||||||||||||||||
| Gain (loss) on debt extinguishment | — | — | — | 1.6 | ||||||||||||||||||||||
| Non-service retirement benefit income (expense), net | 2.8 | 3.1 | 8.2 | 9.3 | ||||||||||||||||||||||
| Other income (expense), net | (2.7) | (2.9) | (3.7) | (7.4) | ||||||||||||||||||||||
| Income (loss) before income taxes | 255.1 | 246.1 | 712.3 | 704.7 | ||||||||||||||||||||||
| Provision (benefit) for income taxes (a) | (7.1) | 47.3 | 90.7 | 141.6 | ||||||||||||||||||||||
| Net income (loss) including noncontrolling interest | 262.2 | 198.8 | 621.6 | 563.1 | ||||||||||||||||||||||
| Less: Net income (loss) attributable to noncontrolling interest | 0.2 | 0.2 | 0.9 | 0.5 | ||||||||||||||||||||||
| Net income (loss) attributable to Teledyne | $ | 262.0 | $ | 198.6 | $ | 620.7 | $ | 562.6 | ||||||||||||||||||
Diluted earnings per common share | $ | 5.54 | $ | 4.15 | $ | 13.01 | $ | 11.75 | ||||||||||||||||||
Weighted average diluted common shares outstanding | 47.3 | 47.9 | 47.7 | 47.9 | ||||||||||||||||||||||
(a) The third quarter of 2024 includes net discrete income tax benefits of $62.3 million and the first nine months of 2024 includes net discrete income tax benefits of $67.4 million. The third quarter of 2023 includes net discrete income tax benefits of $6.1 million and the first nine months of 2023 includes net discrete income tax benefits of $14.1 million.
This condensed consolidated financial statement was prepared in accordance with U.S. GAAP
6
TELEDYNE TECHNOLOGIES INCORPORATED
SUMMARY OF SEGMENT NET SALES AND OPERATING INCOME
FOR THE THIRD QUARTER AND NINE MONTHS ENDED
SEPTEMBER 29, 2024 AND OCTOBER 1, 2023
(Unaudited - $ in millions)
| Third Quarter | Third Quarter | % Change | Nine Months | Nine Months | % Change | |||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||
| Net sales: | ||||||||||||||||||||||||||||||||||||||
| Digital Imaging | $ | 768.4 | $ | 775.8 | (1.0) | % | $ | 2,248.6 | $ | 2,341.6 | (4.0) | % | ||||||||||||||||||||||||||
| Instrumentation | 349.8 | 329.1 | 6.3 | % | 1,013.7 | 991.0 | 2.3 | % | ||||||||||||||||||||||||||||||
| Aerospace and Defense Electronics | 200.2 | 183.3 | 9.2 | % | 580.3 | 542.5 | 7.0 | % | ||||||||||||||||||||||||||||||
| Engineered Systems | 125.1 | 114.3 | 9.4 | % | 325.1 | 335.4 | (3.1) | % | ||||||||||||||||||||||||||||||
| Total net sales | $ | 1,443.5 | $ | 1,402.5 | 2.9 | % | $ | 4,167.7 | $ | 4,210.5 | (1.0) | % | ||||||||||||||||||||||||||
| Operating income (loss): | ||||||||||||||||||||||||||||||||||||||
| Digital Imaging | $ | 123.9 | $ | 136.3 | (9.1) | % | $ | 351.2 | $ | 383.1 | (8.3) | % | ||||||||||||||||||||||||||
| Instrumentation | 96.3 | 85.5 | 12.6 | % | 269.5 | 247.6 | 8.8 | % | ||||||||||||||||||||||||||||||
| Aerospace and Defense Electronics | 56.3 | 49.4 | 14.0 | % | 165.3 | 149.6 | 10.5 | % | ||||||||||||||||||||||||||||||
| Engineered Systems | 12.9 | 10.9 | 18.3 | % | 23.1 | 32.4 | (28.7) | % | ||||||||||||||||||||||||||||||
| Corporate expense | (18.7) | (17.8) | 5.1 | % | (57.1) | (49.8) | 14.7 | % | ||||||||||||||||||||||||||||||
| Operating income (loss) | 270.7 | 264.3 | 2.4 | % | 752.0 | 762.9 | (1.4) | % | ||||||||||||||||||||||||||||||
| Interest and debt income (expense), net | (15.7) | (18.4) | (14.7) | % | (44.2) | (61.7) | (28.4) | % | ||||||||||||||||||||||||||||||
| Gain (loss) on debt extinguishment | — | — | — | % | — | 1.6 | (100.0) | % | ||||||||||||||||||||||||||||||
| Non-service retirement benefit income (expense), net | 2.8 | 3.1 | (9.7) | % | 8.2 | 9.3 | (11.8) | % | ||||||||||||||||||||||||||||||
| Other income (expense), net | (2.7) | (2.9) | (6.9) | % | (3.7) | (7.4) | (50.0) | % | ||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 255.1 | 246.1 | 3.7 | % | 712.3 | 704.7 | 1.1 | % | ||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes (a) | (7.1) | 47.3 | (115.0) | % | 90.7 | 141.6 | (35.9) | % | ||||||||||||||||||||||||||||||
| Net income (loss) including noncontrolling interest | 262.2 | 198.8 | 31.9 | % | 621.6 | 563.1 | 10.4 | % | ||||||||||||||||||||||||||||||
| Less: Net income (loss) attributable to noncontrolling interest | 0.2 | 0.2 | — | % | 0.9 | 0.5 | 80.0 | % | ||||||||||||||||||||||||||||||
| Net income (loss) attributable to Teledyne | $ | 262.0 | $ | 198.6 | 31.9 | % | $ | 620.7 | $ | 562.6 | 10.3 | % | ||||||||||||||||||||||||||
(a) The third quarter of 2024 includes net discrete income tax benefits of $62.3 million and the first nine months of 2024 includes net discrete income tax benefits of $67.4 million. The third quarter of 2023 includes net discrete income tax benefits of $6.1 million and the first nine months of 2023 includes net discrete income tax benefits of $14.1 million.
This condensed consolidated financial statement was prepared in accordance with U.S. GAAP.
7
TELEDYNE TECHNOLOGIES INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited – in millions)
| September 29, 2024 | December 31, 2023 | |||||||||||||
| ASSETS | ||||||||||||||
| Cash and cash equivalents | $ | 561.0 | $ | 648.3 | ||||||||||
| Accounts receivable and unbilled receivables, net | 1,261.1 | 1,202.1 | ||||||||||||
| Inventories, net | 964.8 | 917.7 | ||||||||||||
| Prepaid expenses and other current assets | 203.3 | 213.3 | ||||||||||||
| Total current assets | 2,990.2 | 2,981.4 | ||||||||||||
| Property, plant and equipment, net | 758.3 | 777.0 | ||||||||||||
| Goodwill and acquired intangible assets, net | 10,279.3 | 10,280.9 | ||||||||||||
| Prepaid pension assets | 215.6 | 203.3 | ||||||||||||
| Other assets, net | 287.5 | 285.3 | ||||||||||||
| Total assets | $ | 14,530.9 | $ | 14,527.9 | ||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||
| Accounts payable | $ | 445.7 | $ | 384.7 | ||||||||||
| Accrued liabilities | 900.6 | 781.3 | ||||||||||||
| Current portion of long-term debt | 150.1 | 600.1 | ||||||||||||
| Total current liabilities | 1,496.4 | 1,766.1 | ||||||||||||
| Long-term debt, net of current portion | 2,647.9 | 2,644.8 | ||||||||||||
| Other long-term liabilities | 786.9 | 891.2 | ||||||||||||
| Total liabilities | 4,931.2 | 5,302.1 | ||||||||||||
| Redeemable noncontrolling interest | 5.5 | 4.6 | ||||||||||||
Total stockholders’ equity | 9,594.2 | 9,221.2 | ||||||||||||
| Total liabilities and equity | $ | 14,530.9 | $ | 14,527.9 | ||||||||||
This condensed consolidated financial statement was prepared in accordance with U.S. GAAP.
8
TELEDYNE TECHNOLOGIES INCORPORATED
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
FOR THE THIRD QUARTER AND NINE MONTHS ENDED
SEPTEMBER 29, 2024 AND OCTOBER 1, 2023
(Unaudited - $ in millions, except per share amounts)
Third Quarter 2024 | Third Quarter 2023 | ||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | Net (loss) income attributable to Teledyne | Diluted earnings per common share | Income (loss) before income taxes | Net (loss) income attributable to Teledyne | Diluted earnings per common share | ||||||||||||||||||||||||||||||
| GAAP | $ | 255.1 | $ | 262.0 | $ | 5.54 | $ | 246.1 | $ | 198.6 | $ | 4.15 | |||||||||||||||||||||||
| Adjusted for specified items: | |||||||||||||||||||||||||||||||||||
FLIR integration costs | 3.7 | 2.8 | 0.06 | 5.8 | 4.5 | 0.09 | |||||||||||||||||||||||||||||
| Acquired intangible asset amortization | 49.8 | 38.2 | 0.80 | 49.1 | 37.8 | 0.79 | |||||||||||||||||||||||||||||
| FLIR acquisition-related tax matters | — | (61.7) | (1.30) | — | 1.0 | 0.02 | |||||||||||||||||||||||||||||
| Non-GAAP | $ | 308.6 | $ | 241.3 | $ | 5.10 | $ | 301.0 | $ | 241.9 | $ | 5.05 | |||||||||||||||||||||||
| Nine Months 2024 | Nine Months 2023 | ||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | Net (loss) income attributable to Teledyne | Diluted earnings per common share | Income (loss) before income taxes | Net (loss) income attributable to Teledyne | Diluted earnings per common share | ||||||||||||||||||||||||||||||
| GAAP | $ | 712.3 | $ | 620.7 | $ | 13.01 | $ | 704.7 | $ | 562.6 | $ | 11.75 | |||||||||||||||||||||||
| Adjusted for specified items: | |||||||||||||||||||||||||||||||||||
| FLIR integration costs | 6.9 | 5.3 | 0.11 | 5.8 | 4.5 | 0.09 | |||||||||||||||||||||||||||||
| Acquired intangible asset amortization | 148.3 | 113.5 | 2.38 | 148.1 | 114.0 | 2.37 | |||||||||||||||||||||||||||||
| FLIR acquisition-related tax matters | — | (61.2) | (1.28) | — | 1.7 | 0.04 | |||||||||||||||||||||||||||||
| Non-GAAP | $ | 867.5 | $ | 678.3 | $ | 14.22 | $ | 858.6 | $ | 682.8 | $ | 14.25 | |||||||||||||||||||||||
Third Quarter 2024 | Third Quarter 2023 | |||||||||||||||||||||||||
| Operating income (loss) | Operating margin | Operating income (loss) | Operating margin | |||||||||||||||||||||||
| GAAP | $ | 270.7 | 18.8 | % | $ | 264.3 | 18.8 | % | ||||||||||||||||||
| Adjusted for specified items: | ||||||||||||||||||||||||||
FLIR integration costs | 3.7 | 5.8 | ||||||||||||||||||||||||
| Acquired intangible asset amortization | 49.8 | 49.1 | ||||||||||||||||||||||||
| Non-GAAP | $ | 324.2 | 22.5 | % | $ | 319.2 | 22.8 | % | ||||||||||||||||||
| Nine Months 2024 | Nine Months 2023 | |||||||||||||||||||||||||
| Operating income (loss) | Operating margin | Operating income (loss) | Operating margin | |||||||||||||||||||||||
| GAAP | $ | 752.0 | 18.0 | % | $ | 762.9 | 18.1 | % | ||||||||||||||||||
| Adjusted for specified items: | ||||||||||||||||||||||||||
FLIR integration costs | 6.9 | 5.8 | ||||||||||||||||||||||||
| Acquired intangible asset amortization | 148.3 | 148.1 | ||||||||||||||||||||||||
| Non-GAAP | $ | 907.2 | 21.8 | % | $ | 916.8 | 21.8 | % | ||||||||||||||||||
9
TELEDYNE TECHNOLOGIES INCORPORATED
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited - in millions)
Third Quarter 2024 | |||||||||||||||||||||||
| GAAP Operating Income (loss) | Acquired intangible asset amortization | FLIR integration costs | Non-GAAP Operating Income (loss) | ||||||||||||||||||||
| Digital Imaging | $ | 123.9 | $ | 46.0 | $ | 3.7 | $ | 173.6 | |||||||||||||||
| Instrumentation | 96.3 | 3.6 | — | 99.9 | |||||||||||||||||||
| Aerospace and Defense Electronics | 56.3 | 0.2 | — | 56.5 | |||||||||||||||||||
| Engineered Systems | 12.9 | — | — | 12.9 | |||||||||||||||||||
| Corporate expense | (18.7) | — | — | (18.7) | |||||||||||||||||||
| Total | $ | 270.7 | $ | 49.8 | $ | 3.7 | $ | 324.2 | |||||||||||||||
Third Quarter 2023 | |||||||||||||||||||||||
| GAAP Operating Income (loss) | Acquired intangible asset amortization | FLIR integration costs | Non-GAAP Operating Income (loss) | ||||||||||||||||||||
| Digital Imaging | $ | 136.3 | $ | 45.4 | $ | 5.8 | $ | 187.5 | |||||||||||||||
| Instrumentation | 85.5 | 3.5 | — | 89.0 | |||||||||||||||||||
| Aerospace and Defense Electronics | 49.4 | 0.2 | — | 49.6 | |||||||||||||||||||
| Engineered Systems | 10.9 | — | — | 10.9 | |||||||||||||||||||
| Corporate expense | (17.8) | — | — | (17.8) | |||||||||||||||||||
| Total | $ | 264.3 | $ | 49.1 | $ | 5.8 | $ | 319.2 | |||||||||||||||
| Nine Months 2024 | |||||||||||||||||||||||
| GAAP Operating Income (loss) | Acquired intangible asset amortization | FLIR integration costs | Non-GAAP Operating Income (loss) | ||||||||||||||||||||
| Digital Imaging | $ | 351.2 | $ | 137.2 | $ | 6.9 | $ | 495.3 | |||||||||||||||
| Instrumentation | 269.5 | 10.5 | — | 280.0 | |||||||||||||||||||
| Aerospace and Defense Electronics | 165.3 | 0.6 | — | 165.9 | |||||||||||||||||||
| Engineered Systems | 23.1 | — | — | 23.1 | |||||||||||||||||||
| Corporate expense | (57.1) | — | — | (57.1) | |||||||||||||||||||
| Total | $ | 752.0 | $ | 148.3 | $ | 6.9 | $ | 907.2 | |||||||||||||||
| Nine Months 2023 | |||||||||||||||||||||||
| GAAP Operating Income (loss) | Acquired intangible asset amortization | FLIR integration costs | Non-GAAP Operating Income (loss) | ||||||||||||||||||||
| Digital Imaging | $ | 383.1 | $ | 136.8 | $ | 5.8 | $ | 525.7 | |||||||||||||||
| Instrumentation | 247.6 | 10.7 | — | 258.3 | |||||||||||||||||||
| Aerospace and Defense Electronics | 149.6 | 0.6 | — | 150.2 | |||||||||||||||||||
| Engineered Systems | 32.4 | — | — | 32.4 | |||||||||||||||||||
| Corporate expense | (49.8) | — | — | (49.8) | |||||||||||||||||||
| Total | $ | 762.9 | $ | 148.1 | $ | 5.8 | $ | 916.8 | |||||||||||||||
10
TELEDYNE TECHNOLOGIES INCORPORATED
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited - in millions, except per share amounts)
| September 29, 2024 | December 31, 2023 | |||||||||||||
| Current portion of long-term debt | $ | 150.1 | $ | 600.1 | ||||||||||
| Long-term debt | 2,647.9 | 2,644.8 | ||||||||||||
| Total debt - non-GAAP | 2,798.0 | 3,244.9 | ||||||||||||
| Less cash and cash equivalents | (561.0) | (648.3) | ||||||||||||
| Net debt - non-GAAP | $ | 2,237.0 | $ | 2,596.6 | ||||||||||
| Fourth Quarter 2024 | Twelve Months 2024 | |||||||||||||||||||||||||
| Low | High | Low | High | |||||||||||||||||||||||
| GAAP Diluted Earnings Per Common Share Outlook | $ | 4.27 | $ | 4.41 | $ | 17.28 | $ | 17.42 | ||||||||||||||||||
| Adjusted for specified items: | ||||||||||||||||||||||||||
| FLIR integration costs | $ | 0.04 | $ | 0.02 | $ | 0.15 | $ | 0.13 | ||||||||||||||||||
| Acquired intangible asset amortization | $ | 0.82 | $ | 0.80 | $ | 3.20 | $ | 3.18 | ||||||||||||||||||
| FLIR acquisition-related tax matters | $ | — | $ | — | $ | (1.28) | $ | (1.28) | ||||||||||||||||||
| Non-GAAP Diluted Earnings Per Common Share Outlook | $ | 5.13 | $ | 5.23 | $ | 19.35 | $ | 19.45 | ||||||||||||||||||
11
Explanation of Non-GAAP Financial Measures
We report our financial results in accordance with GAAP. However, management believes that, in order to more fully understand our short-term and long-term financial and operational trends, and to aid in comparability with our competitors, investors and financial analysts may wish to consider the impact of certain items resulting from our acquisitions which have an infrequent or non-recurring impact on operations or assist in understanding our operations pre-acquisition. Accordingly, we present non-GAAP financial measures as a supplement to the financial measures we present in accordance with GAAP. These non-GAAP financial measures provide management, investors and financial analysts with additional means to understand and evaluate the operating results and trends in our ongoing business by adjusting for certain expenses and benefits. Management believes these non-GAAP financial measures also provide additional means of evaluating period-over-period operating performance. In addition, management understands that some investors and financial analysts find this information helpful in analyzing our financial and operational performance and comparing this performance to our peers and competitors. The company’s diluted earnings per common share outlook guidance is also presented on a non-GAAP basis.
The non-GAAP financial measures are not meant to be considered superior to, or a substitute for, our financial statements prepared in accordance with GAAP. There are material limitations associated with non-GAAP financial measures because they exclude charges that have an effect on our reported results and, therefore, should not be relied upon as the sole financial measures by which to evaluate our financial results. Management compensates and believes that investors should compensate for these limitations by viewing the non-GAAP financial measures in conjunction with the GAAP financial measures. In addition, the non-GAAP financial measures included in this earnings announcement may be different from, and therefore may not be comparable to, similar measures used by other companies. The non-GAAP financial measures are also used by our management to evaluate our operating performance and benchmark our results against our historical performance and the performance of our peers.
Our non-GAAP measures are as follows:
Non-GAAP income before income taxes, net income and diluted earnings per common share
These non-GAAP measures provided a supplemental view of income before taxes, net income, and diluted earnings per common share. These non-GAAP measures exclude certain FLIR acquisition integration-related costs, acquired intangible asset amortization, the remeasurement of deferred taxes related to acquired intangible assets due to changes in tax laws, and the tax benefits or costs related to the settlement or other resolution of the FLIR tax reserves. We also adjust for any post-acquisition interest on certain income tax reserves related to FLIR. We adjust for any income tax impact related to these items to take into account the tax treatment and related tax rate and changes in tax rates that apply to each adjustment in the applicable tax jurisdiction. Generally, this results in the tax impact at the U.S. marginal tax rate for certain adjustments, including the majority of amortization of intangible assets, whereas the tax impact of other adjustments, including transaction expenses, depend on whether the amounts are deductible in the respective tax jurisdictions and the applicable tax rates in those jurisdictions. We believe these measures provide investors and management with additional means to understand and evaluate the operating results of our business by adjusting for certain expenses and benefits and present an alternative view of our performance compared to prior periods.
Non-GAAP operating income and operating margin
We define non-GAAP operating margin as non-GAAP operating income divided by net sales. These non-GAAP measures exclude certain FLIR acquisition integration-related costs and acquired intangible asset amortization. We believe these measures provide investors and management with additional means to understand and evaluate the operating results of our business by adjusting for certain expenses and other items and present an alternative view of our performance compared to prior periods.
12
Non-GAAP total debt and net debt
We define non-GAAP total debt as the sum of current portion of long-term debt and other debt and long-term debt. We define net debt as the difference between non-GAAP total debt less cash and cash equivalents. The company believes that this non-GAAP information is useful to assist investors and management in analyzing the company’s liquidity.
Non-GAAP diluted earnings per common share outlook
These non-GAAP measures represent our earnings per common share outlook for the third quarter of 2024 and total year 2024 on a fully diluted basis, excluding certain FLIR integration costs, acquired intangible asset amortization for all acquisitions and FLIR acquisition-related tax matters.
Non-GAAP cash provided by operations and free cash flow
We define free cash flow as cash provided by operating activities (a measure prescribed by GAAP) less capital expenditures for property, plant and equipment. We believe that this non-GAAP information is useful to assist management and the investment community in analyzing the company’s ability to generate cash flow.
Non-GAAP line items used in tables
Management excludes the effect of each of the acquisition related items identified below to arrive at the applicable non-GAAP financial measure referenced in the tables for the reasons set forth below with respect to that item:
•Acquired intangible asset amortization – We believe that excluding the amortization of acquired intangible assets, which primarily represents purchased technology and customer relationships, as well as purchase order and contract backlog, provides an alternative way for investors to compare our operations pre-acquisition to those post-acquisition and to those of our competitors that have pursued internal growth strategies. However, we note that companies that grow internally will incur costs to develop intangible assets that will be expensed in the period incurred, which may make a direct comparison more difficult.
•FLIR integration costs – Included in our GAAP presentation of cost of sales and selling, general and administrative expenses are expenses (or benefits) incurred in connection with further integration-related costs related to the FLIR acquisition such as facility consolidation costs, facility lease impairments and employee separation costs. We exclude these costs from our non-GAAP measures because we believe it does not reflect our ongoing financial performance.
•FLIR acquisition-related tax matters – Included in our tax provision is post-acquisition interest on certain income tax reserves related to FLIR, as well as the tax benefits or costs related to the settlement or other resolution of the FLIR tax reserves. We exclude these impacts from our non-GAAP measures because we believe it does not reflect our ongoing financial performance.
13