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Teledyne Technologies Annual Report, Year Ended Jan 2, 2005

Filing Date
Filed March 2, 2005
Period End
January 2, 2005
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 filed March 2, 2005. Cited figures are marked; the original filing is the authoritative source.

Teledyne Technologies Incorporated's 10-K for fiscal 2004 (year ended January 2, 2005) reports total sales of $1,016.6 milliona, up from $840.7 million in 2003, and net income of $41.7 million ($1.24 per diluted share), compared with $29.7 million ($0.91 per diluted share) in 2003.

The company attributes the sales increase to growth in all four segments, with the Electronics and Communications segment the largest contributor, including $98.6 millionb of incremental revenue from acquisitions. Five acquisitions were completed in 2004, including Isco, Inc., Reynolds Industries, Incorporated, Celeritek's defense electronics business, Leeman Labs' assets and Filtronic Solid State's assets. Segment operating profit rose to $89.2 million from $61.9 million.

Government exposure remains significant: sales to U.S. Government agencies and prime contractors were about 43% of total sales in 2004, and international sales were about 19%. Backlog of confirmed orders was approximately $471.3 millionc at January 2, 2005, up from $369.7 million a year earlier. Cash fell to $11.4 million from $37.8 million, as acquisitions were funded in part with $70.5 million of net borrowings under a $280.0 million credit facility, with $203.0 million available at year-end.

Long-term debt and capital lease obligations were $74.4 million, and stockholders' equity increased to $262.1 milliond. Management guided to 2005 diluted earnings per share of approximately $1.35 to $1.43, and expects to begin expensing stock options from the third quarter of 2005. The company also notes ongoing risks including aircraft product liability costs, a pension plan that was underfunded at year-end 2004, and the Company's continued dependence on U.S. Government contracts.

02—Key points

Key Highlights

  1. Total sales rose to $1,016.6 million in 2004 from $840.7 million in 2003, and net income increased to $41.7 million from $29.7 million.
  2. Segment operating profit was $89.2 million in 2004, compared with $61.9 million in 2003; Electronics and Communications operating profit was $54.4 million, up from $33.0 million.
  3. Five acquisitions in 2004 contributed $98.6 million in incremental sales, with total purchase price net of cash acquired of $187.8 million.
  4. Backlog of confirmed orders was approximately $471.3 million at January 2, 2005, with 96% expected to be fulfilled during 2005.
  5. Approximately 43% of 2004 sales were to U.S. Government agencies and prime contractors, and approximately 19% were international sales.
  6. Total debt rose to $74.4 million of long-term debt and capital lease obligations, and available credit under the $280.0 million facility was $203.0 million at year-end.
  7. 2005 diluted EPS outlook is approximately $1.35 to $1.43, and the company expects to begin expensing stock options from the third quarter of 2005, reducing second-half earnings by about $0.05 per share.

03—Questions

Frequently Asked Questions

  1. How did Teledyne perform financially in 2004?

    Sales increased 21% to $1,016.6 million from $840.7 million, and net income rose to $41.7 million, or $1.24 per diluted share, from $29.7 million, or $0.91 per diluted share, in 2003. Growth was reported across all four segments, aided by acquisitions.

  2. What acquisitions did Teledyne complete in 2004?

    The company acquired Leeman Labs' assets (February 27, 2004), Isco, Inc. (June 18, 2004), Reynolds Industries, Incorporated (July 2, 2004), the defense electronics business of Celeritek, Inc. (October 22, 2004), and the Filtronic Solid State business (December 31, 2003). The filing states that the 2004 acquisitions added $98.6 million of incremental revenue.

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

    Approximately 43% of 2004 total sales came from contracts with U.S. Government agencies and prime contractors, down from 46% in 2003. The filing notes that government contracts are subject to Congressional appropriations and may be terminated for convenience, and that the company's largest U.S. Government program, the Ground-based Midcourse Defense contract with The Boeing Company, represented 5.4% of total sales.

  4. What is Teledyne's financial outlook for 2005?

    Management expects full-year 2005 diluted earnings per share from continuing operations in the range of approximately $1.35 to $1.43, and first-quarter 2005 earnings per share of approximately $0.37 to $0.40. The outlook assumes an effective tax rate of 39.6% and includes about $0.05 per share of stock option expense in the second half of 2005.

  5. What risks does the filing highlight regarding pensions and product liability?

    At year-end 2004, the pension plan's asset value was less than its accumulated benefit obligation, and the company recorded a $22.7 million non-cash reduction to stockholders' equity; net pension expense is expected to be about $6.0 million in 2005. For aircraft product liability, the self-insured retention for general aviation aircraft liabilities was increased to $25.0 million from $15.0 million, and the company accrued a reserve of $27.4 million at year-end 2004, with its current policy expiring in May 2005.

04—Continue

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