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Teledyne Technologies Annual Report (Amendment), Year Ended Dec 28, 2003

Filing Date
Filed August 13, 2004
Period End
December 28, 2003
Security
TDY
In the record · 2016–202610-K1210-Q338-K120

TDY filed 12 annual reports (10-K), 33 quarterly reports (10-Q) and 120 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Jun ’17Jun ’17
  2. Material agreement8-K · Nov ’19Nov ’19
  3. Leadership change8-K · Jan ’22Jan ’22
  4. Leadership change8-K · Jan ’26Jan ’26

01—Abstract

Summary

Summary of the 10-K/A filed August 13, 2004. Cited figures are marked; the original filing is the authoritative source.

Teledyne Technologies Incorporated (TDY) filed this Form 10-K/A (Amendment No. 2) on August 13, 2004, amending its annual report for fiscal 2003 (year ended December 28, 2003).

For 2003, total sales were $840.7 milliona, up from $772.7 million in 2002, and net income was $29.7 million ($0.91 per diluted share), compared with $25.4 million ($0.77 per diluted share) in 2002. Growth was led by the Electronics and Communications segment, which reported sales of $446.9 million and operating profit of $33.0 million, down from $35.9 million in 2002 due to pension expense and other charges. Systems Engineering Solutions, Aerospace Engines and Components, and Energy Systems also grew sales, and aggregate segment operating profit rose to $61.9 million from $57.3 million.

The company had no long-term debt at year-end 2003, $37.8 millionb in cash, and $200 million of available committed credit under a revolving facility that the filing says terminates in November 2004 and is being replaced. The company's outlook calls for first-quarter and full-year 2004 earnings per share of approximately $0.15 to $0.17 and $0.80 to $0.86, respectively. Management cites pension expense of approximately $8.5 million ($0.16 per share) in 2004, compared with $6.9 million in 2003, and expects Systems Engineering Solutions margins to be lower in 2004 because of the finalization of prior-year fee negotiations.

Government contracts represented approximately 46%c of 2003 sales, and the company completed several acquisitions in 2003 and early 2004, including Tekmar, AIS, Filtronic Solid State and Leeman Labs. Key risks disclosed include dependence on U.S. Government contracts, aircraft product liability costs and insurance, a pension plan that was underfunded at year-end 2003, and the execution risk of integrating acquisitions. The filing also notes a pending False Claims Act civil action against the Electronic Safety Products unit that the company intends to defend vigorously.

02—Key points

Key Highlights

  1. Total sales rose to $840.7 million in 2003 from $772.7 million in 2002, with growth in all four segments.
  2. Net income was $29.7 million ($0.91 per diluted share) in 2003, versus $25.4 million ($0.77 per diluted share) in 2002.
  3. Electronics and Communications was the largest segment at $446.9 million in sales, though its operating profit fell to $33.0 million from $35.9 million.
  4. Pension expense increased to $6.9 million in 2003 from pension income of $2.3 million in 2002, and is expected to be about $8.5 million in 2004.
  5. Management's 2004 outlook projects full-year earnings per share of $0.80 to $0.86.
  6. The company had no long-term debt at year-end 2003 and $37.8 million in cash, with a $200 million revolving credit agreement scheduled to terminate in November 2004.
  7. U.S. Government sales were approximately 46% of total 2003 sales, and international sales were approximately 16%.

03—Questions

Frequently Asked Questions

  1. How did Teledyne perform financially in 2003?

    Sales increased to $840.7 million from $772.7 million, and net income rose to $29.7 million ($0.91 per diluted share) from $25.4 million ($0.77 per diluted share). Growth came from all four segments, supported by organic growth and acquisitions.

  2. What is the company's outlook for 2004?

    Management expects first-quarter 2004 earnings of about $0.15 to $0.17 per share and full-year 2004 earnings of about $0.80 to $0.86 per share. The outlook reflects anticipated defense electronics and instrumentation growth, a slight recovery in some commercial markets, and $0.16 per share of pension expense, with lower operating margin expected in Systems Engineering Solutions.

  3. How dependent is Teledyne on the U.S. Government?

    Sales under U.S. Government contracts were approximately 46% of total sales in 2003 and 2002. The filing notes that many government contracts can be terminated for convenience, and that a portion of contracts are fixed-price, which shifts cost-overrun risk to the company.

  4. What are the main risks related to the pension plan?

    The pension plan was underfunded at year-end 2003 because pension assets were less than the accumulated benefit obligation. The company expects to make an after-tax cash contribution of about $4.0 million in 2004, and further declines in asset values or interest rates could increase future required contributions.

04—Continue

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