The first quarter 2015 sales increase reflected higher sales of engineered products and services of $1.5 million, which primarily reflected higher sales of space and marine manufacturing programs, and higher sales of energy systems products of $2.7 million. Turbine engine sales were lower by $0.5 million. Operating profit in the first quarter of 2015 primarily reflected the impact of higher sales.

Additional Financial Information

Cash Flow

Cash provided by operating activities was $16.7 million for the first quarter of 2015, compared with $27.1 million. The lower cash provided by operating activities in the first quarter of 2015 reflected payments of legal matters, the payment of a scheduled earn-out and the timing of accounts payable payments, partially offset by lower income tax payments. Free cash flow (cash provided by operating activities less capital expenditures) was $9.0 million for the first quarter of 2015, compared with $15.4 million and reflected lower cash provided by operating activities, partially offset by lower capital expenditures. At March 29, 2015, total debt was $830.0 million, which included $233.0 million drawn on the $750.0 million credit facility. Cash and cash equivalents were $110.2 million at March 29, 2015. The company received $2.7 million from the exercise of stock options in the first quarter of 2015, compared with $6.7 million. Capital expenditures for the first quarter of 2015 were $7.7 million, compared with $11.7 million. Depreciation and amortization expense for both the first quarter of 2015 and the first quarter of 2014 was $23.2 million. In February 2015, Teledyne acquired Bowtech Products Limited for $18.8 million in cash. On February 2, 2015, Teledyne entered into a $142.0 million accelerated stock repurchase (“ASR”) agreement with a financial institution in a privately negotiated transaction for 1,500,000 shares of the company’s common stock at an initial price of $94.68 per share. Pursuant to the ASR agreement, in February 2015, Teledyne advanced $142.0 million to the ASR counterparty and received 1,425,000 shares of common stock, which used $134.9 million of the $142.0 million advanced, representing 95% of the estimated shares to be repurchased under the ASR agreement. The ASR agreement was funded by cash on hand and floating rate borrowings of $120.0 million under the $750 million credit facility. On April 29, 2015, Teledyne DALSA, Inc. acquired the remaining 49% minority interest in the parent company of Optech Incorporated. Terms of the transaction were not disclosed.