Teledyne Technologies Reports First Quarter Results

Income Taxes

The effective tax rate for the first quarter of 2023 was 20.1%, compared with negative 4.7%. The first quarter of 2023 reflected net discrete income tax benefits of $6.6 million. The first quarter of 2022 reflected net discrete income tax benefits of $56.5 million, including $50.0 million of income tax benefits for acquisition-related tax matters primarily related to the resolution of certain FLIR tax reserves. Excluding the net discrete income tax items in both periods, the effective tax rates would have been 23.0% for the first quarter of 2023, compared with 23.1%.

Other

Corporate expense was $17.4 million for the first quarter of 2023, compared with $16.1 million, with the increase primarily related to higher professional fees during the first quarter of 2023. Non-service retirement benefit income was $3.3 million for the first quarter of 2023, compared with $2.8 million. Interest expense, net of interest income, was $21.0 million for the first quarter of 2023, compared with $22.3 million.

Outlook

Based on its current outlook, the company’s management believes that second quarter 2023 GAAP diluted earnings per share will be in the range of $3.76 to $3.88 and full year 2023 GAAP diluted earnings per share will be in the range of $15.80 to $16.05. The company's management further believes that second quarter 2023 non-GAAP diluted earnings per share will be in the range of $4.56 to $4.66 and full year 2023 non-GAAP diluted earnings per share will be in the range of $19.00 to $19.20. The non-GAAP outlook excludes acquired intangible asset amortization for all acquisitions and benefits or charges for acquisition-related tax matters. The company’s annual expected tax rate for 2023 is 23.0%, before discrete tax items.

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, 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 stock-based compensation expense, tax rates, anticipated capital expenditures and 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 ongoing challenges and uncertainties posed by the COVID pandemic for businesses and governments around the world, including production, supply, contractual and other disruptions, such as COVID related lockdowns, facility closures, furloughs and travel restrictions; 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 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 the COVID pandemic, inflation, rising interest costs, and economic conditions; impacts from the United Kingdom’s exit from the European Union; uncertainties related to the policies of the U.S. Presidential Administration; the imposition and expansion of, and responses to, trade sanctions and tariffs; the continuing review and resolution of FLIR’s export 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; and 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. In addition, financial market fluctuations affect the value of the company’s pension assets. Changes in the policies of U.S. and foreign 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, including the recent acquisition of ChartWorld, involve various inherent risks, such as, among others, our ability to integrate acquired businesses, retain 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 January 1, 2023, 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 first quarter earnings conference call will be held at 11:00 a.m. (Eastern) on Wednesday, April 26, 2023. 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, April 26, 2023.

TELEDYNE TECHNOLOGIES INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

FOR THE FIRST QUARTER ENDED

APRIL 2, 2023 AND APRIL 3, 2022

(Unaudited - in millions, except per share amounts)

 

 

 

First Quarter

 

First Quarter

 

 

 

2023

 

 

 

2022

 

Net sales

 

$

1,383.3

 

 

$

1,321.0

 

Costs and expenses:

 

 

 

 

Costs of sales

 

 

790.7

 

 

 

752.6

 

Selling, general and administrative

 

 

300.4

 

 

 

291.3

 

Acquired intangible asset amortization

 

 

49.7

 

 

 

53.6

 

Total costs and expenses

 

 

1,140.8

 

 

 

1,097.5

 

Operating income (loss)

 

 

242.5

 

 

 

223.5

 

Interest and debt income (expense), net

 

 

(21.0

)

 

 

(22.3

)

Non-service retirement benefit income (expense), net

 

 

3.3

 

 

 

2.8

 

Other income (expense), net

 

 

(1.1

)

 

 

(1.0

)

Income (loss) before income taxes

 

 

223.7

 

 

 

203.0

 

Provision (benefit) for income taxes (a)

 

 

44.9

 

 

 

(9.6

)

Net income (loss) including noncontrolling interest

 

 

178.8

 

 

 

212.6

 

Less: Net income (loss) attributable to noncontrolling interest

 

 

0.1

 

 

 

 

Net income (loss) attributable to Teledyne

 

$

178.7

 

 

$

212.6

 

 

 

 

 

 

Diluted earnings per share attributable to Teledyne common shareholders

 

$

3.73

 

 

$

4.46

 

 

 

 

 

 

Weighted average diluted Teledyne common shares outstanding

 

 

47.9

 

 

 

47.7

 


« Previous Page 1 | 2 | 3 | 4 | 5 | 6  Next Page »
Featured Video
Latest Blog Posts
Sanjay GangalAECCafe Today
by Sanjay Gangal
AEC Industry Predictions for 2025 — vGIS
Sanjay GangalIndustry Predictions
by Sanjay Gangal
AEC Industry Predictions for 2025 — QeCAD
Jobs
Business Development Manager for Berntsen International, Inc. at Madison, Wisconsin
Upcoming Events
Consumer Electronics Show 2025 - CES 2025 at Las Vegas Convention Center Las Vegas NV - Jan 7 - 10, 2025
Commercial UAV Expo 2025 at Amsterdam Netherlands - Apr 8 - 10, 2025
Commercial UAV Expo 2025 at RAI Amsterdam Amsterdam Netherlands - Apr 8 - 11, 2025
Geospatial World Forum 2025 at Madrid Marriott Auditorium Madrid Spain - Apr 22 - 25, 2025



© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
TechJobsCafe - Technical Jobs and Resumes EDACafe - Electronic Design Automation GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise