01—Abstract
Summary
Summary of the 10-K filed March 1, 2007. Cited figures are marked; the original filing is the authoritative source.
Teledyne Technologies Incorporated reported 2006 sales of $1,433.2 milliona, up 18.8% from $1,206.5 million in 2005, and net income of $80.3 million ($2.26 per diluted share), up 25.1% from $64.2 million ($1.85 per diluted share).
Growth came from the Electronics and Communications segment, which grew sales 25.3% to $899.4 millionb, largely through acquisitions. Segment operating profit and other segment income rose 22.7% to $155.3 million. The company spent $250.4 million, net of cash acquired, on 2006 acquisitions including Rockwell Scientific (Teledyne Scientific & Imaging), Benthos, Ocean Design, KW Microwave and CollaborX, and it reported $231.9 million of total outstanding indebtedness at December 31, 2006, including $216.9 million under its $400 million credit facility.
About 40%c of 2006 sales came from U.S. Government contracts, and the filing notes that 47% of U.S. Government sales were fixed-price type contracts. International sales were approximately 21% of total sales.
The filing flags risks tied to government funding and program changes, acquisition integration, product liability exposure at Teledyne Continental Motors, and pension underfunding. Management's 2007 outlook projects full-year earnings per diluted share of $2.33 to $2.38d, and the company does not anticipate paying cash dividends in the foreseeable future.
02—Key points
Key Highlights
- Total sales of $1,433.2 million in 2006, up 18.8% from $1,206.5 million in 2005.
- Net income of $80.3 million, or $2.26 per diluted share, compared with $64.2 million, or $1.85 per diluted share, in 2005.
- Electronics and Communications segment sales rose 25.3% to $899.4 million, representing 63% of total 2006 sales.
- Spent $250.4 million, net of cash acquired, on 2006 acquisitions, including Rockwell Scientific for $158.6 million net of cash acquired.
- Total outstanding indebtedness was $231.9 million at December 31, 2006, with $174.7 million of available committed credit under the $400 million facility.
- 2007 full-year earnings per diluted share outlook is $2.33 to $2.38, with a first-quarter range of $0.47 to $0.51.
- Approximately 40% of 2006 sales were to U.S. Government agencies and prime contractors, and international sales were about 21%.
03—Questions
Frequently Asked Questions
How did Teledyne perform in 2006 compared with 2005?
Sales grew 18.8% to $1,433.2 million and net income grew 25.1% to $80.3 million, or $2.26 per diluted share. The filing attributes the sales increase to organic growth and acquisitions across the three largest segments.
What acquisitions did Teledyne complete in 2006?
Teledyne acquired Benthos, Ocean Design (51% majority interest, with an additional 9.9% later in 2006), KW Microwave assets, CollaborX and Rockwell Scientific Company. The company spent $250.4 million, net of cash acquired, on these acquisitions.
How much debt does Teledyne carry and how is it financed?
At December 31, 2006, total outstanding indebtedness was $231.9 million, including $216.9 million under the $400 million amended and restated credit facility, which expires July 14, 2011. The company was in compliance with its covenants at year-end.
What is Teledyne's exposure to U.S. Government spending?
Approximately 40% of 2006 total sales were under contracts with the U.S. Government, and about 47% of those U.S. Government sales were fixed-price type contracts. The filing notes that government funding is subject to Congressional appropriations and that defense spending is currently expected to moderate over the next few years.
What is Teledyne's outlook and dividend policy?
Management expects full-year 2007 earnings per diluted share of $2.33 to $2.38. The company intends to retain future earnings to fund growth and does not anticipate paying cash dividends in the foreseeable future.
04—Continue