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Teledyne Technologies Annual Report, Year Ended Dec 30, 2012

Filing Date
Filed February 26, 2013
Period End
December 30, 2012
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 February 26, 2013. Cited figures are marked; the original filing is the authoritative source.

Teledyne Technologies Incorporated (NYSE: TDY) reported record 2012 results in this Form 10-K filed February 26, 2013.

Total sales were $2,127.3 milliona, up from $1,941.9 million in 2011, an increase of 9.5%. Net income attributable to Teledyne was $164.1 million ($4.39 per diluted share), compared with $255.2 million ($6.84 per diluted share) in 2011, which included a $113.8 million gain on the sale of the general aviation piston engine businesses. Net income from continuing operations rose 13.9% to $161.8 million ($4.33 per diluted share).

Segment operating profit and other segment income rose to $279.8 millionb from $260.9 million. Growth was driven largely by acquisitions, including LeCroy, DALSA-related businesses and Optech, which together contributed to the increase in sales. The company spent $389.2 million on five acquisitions in 2012.

The balance sheet and leverage increased materially. Total assets rose to $2,406.4 millionc from $1,826.1 million, and total outstanding indebtedness was $543.9 million at December 30, 2012. Teledyne made voluntary pretax contributions of $92.8 million to its domestic pension plan in 2012 and a further $83.0 million on January 7, 2013.

The company does not pay cash dividends and intends to retain earnings for growth and acquisitions. A pending acquisition of RESON A/S for approximately 53 million euros was announced January 29, 2013. Mix shifted toward commercial customers, which accounted for approximately 68%d of 2012 sales, while U.S. Government sales were approximately 32%.

International sales rose to approximately 39% of total sales. Backlog of confirmed orders was approximately $952.5 million at December 30, 2012, and the company expects to fulfill 99% of it during 2013.

02—Key points

Key Highlights

  1. Record 2012 sales of $2,127.3 million, up from $1,941.9 million in 2011; net income from continuing operations of $161.8 million ($4.33 per diluted share).
  2. Total net income attributable to Teledyne fell to $164.1 million ($4.39 per diluted share) from $255.2 million ($6.84 per diluted share), reflecting the 2011 gain of $113.8 million on the sale of piston engine businesses.
  3. Five acquisitions in 2012 for $389.2 million, led by LeCroy ($301.3 million net of cash acquired), funded primarily by credit facility borrowings and cash on hand.
  4. Commercial customers represented approximately 68% of 2012 sales versus about 32% to the U.S. Government; international sales were approximately 39% of total sales.
  5. Total debt rose to $543.9 million at December 30, 2012, including $200.0 million in term loans obtained in October 2012, and total assets increased to $2,406.4 million.
  6. Domestic pension plan received voluntary pretax contributions of $92.8 million in 2012 and $83.0 million on January 7, 2013, with accumulated other comprehensive loss rising to $273.4 million.
  7. Backlog of confirmed orders was approximately $952.5 million at December 30, 2012, with 99% expected to be fulfilled in 2013.

03—Questions

Frequently Asked Questions

  1. How did Teledyne perform in 2012 compared with 2011?

    Sales rose 9.5% to $2,127.3 million from $1,941.9 million, and net income from continuing operations increased 13.9% to $161.8 million. Total net income attributable to Teledyne was $164.1 million, down from $255.2 million in 2011, which included the $113.8 million gain on the sale of the general aviation piston engine businesses. Sales growth included incremental acquisition sales of $180.7 million.

  2. What drove the growth in Teledyne's segments?

    Instrumentation sales rose 21.5% to $749.4 million, reflecting $80.8 million from LeCroy. Digital Imaging sales rose 18.9% to $415.9 million, including $66.9 million from acquisitions. Aerospace and Defense Electronics sales fell 1.5% to $660.6 million, and Engineered Systems sales fell 1.1% to $301.4 million.

  3. How is Teledyne's debt and liquidity position?

    Total outstanding indebtedness was $543.9 million at December 30, 2012. The company had $458.6 million of available borrowing capacity under its $550.0 million credit facility, which expires in February 2016. The company was in compliance with its financial covenants, reporting a consolidated leverage ratio of 1.7 to 1 against a requirement of no more than 3.25 to 1.

  4. Does Teledyne pay dividends, and what are its capital priorities?

    Teledyne does not pay cash dividends and currently intends to retain future earnings to fund the development and growth of its businesses, including acquisitions. The company repurchased no shares in 2012, with 1,841,438 shares remaining under its October 2011 authorization.

  5. What are the main risks highlighted for government-related revenue?

    U.S. Government sales were approximately 32% of 2012 sales. The filing cites risks including funding cancellation or delay, potential sequestration of defense spending (approximately $40 to $50 billion in fiscal 2013 if triggered), contract termination for convenience (six contracts terminated in 2012), and fixed-price contracts, which were approximately 59% of U.S. Government contracts in 2012.

04—Continue

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