Skip to content
AnalystLens

Teledyne Technologies Annual Report, Year Ended Dec 31, 2017

Filing Date
Filed February 27, 2018
Period End
December 31, 2017
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. Material agreement8-K · Mar ’19Mar ’19
  2. Deal closed8-K · May ’21May ’21
  3. Leadership change8-K · Jan ’23Jan ’23
  4. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 10-K filed February 27, 2018. Cited figures are marked; the original filing is the authoritative source.

Teledyne Technologies Incorporated (TDY) reported 2017 net sales of $2,603.8 milliona, up from $2,149.9 million in 2016, with net income of $227.2 million ($6.26 per diluted share) versus $190.9 million ($5.37 per diluted share).

The increase in sales was driven largely by the March 2017 acquisition of e2v technologies plc, which contributed $273.7 millionb in net sales, and by acquisition-related growth in the Digital Imaging segment. Operating income rose to $335.6 million from $253.8 million, while the company absorbed $27.0 million in e2v-related pretax charges and $4.2 million in severance and facility consolidation costs. The company spent $774.1 million on acquisitions and investments in 2017, funded largely by borrowings.

Total debt rose to $1,068.2 millionc at December 31, 2017, from $611.7 million a year earlier, and total assets grew to $3,846.4 million from $2,774.4 million. Cash flow from operations was $374.7 million and free cash flow was $316.2 million. The company stated it does not anticipate paying cash dividends in the foreseeable future and intends to use earnings for growth and potential acquisitions, with no share repurchases made in 2017 or 2016.

Risk disclosures highlight exposure to U.S. Government contracts (about 24% of 2017 sales), international sales (about 46% of sales), currency fluctuations following the e2v acquisition, and cyclicality in the oil and gas markets. The company also noted a provisional Tax Cuts and Jobs Act charge of $4.7 milliond and a 2017 effective tax rate of 20.8%.

02—Key points

Key Highlights

  1. Net sales rose to $2,603.8 million in 2017 from $2,149.9 million in 2016, with the Digital Imaging segment rising to $693.5 million from $398.7 million, largely due to e2v.
  2. Net income increased to $227.2 million ($6.26 per diluted share) from $190.9 million ($5.37 per diluted share).
  3. Operating income was $335.6 million in 2017 versus $253.8 million in 2016, after $27.0 million of e2v acquisition-related pretax charges.
  4. Acquisitions and investments totaled $774.1 million in 2017, including e2v for $740.6 million net of cash acquired, funded primarily by borrowings.
  5. Total long-term debt increased to $1,068.2 million at December 31, 2017, from $611.7 million at January 1, 2017.
  6. Cash provided by operating activities was $374.7 million and free cash flow was $316.2 million in 2017.
  7. Teledyne does not expect to pay cash dividends in the foreseeable future and made no share repurchases in 2017 or 2016.

03—Questions

Frequently Asked Questions

  1. How did the e2v acquisition affect Teledyne's 2017 results?

    e2v contributed $273.7 million in net sales and $37.3 million in operating income to 2017 results, and Teledyne recorded $27.0 million in related pretax charges. The acquisition also increased international sales, foreign currency exposure, and total debt.

  2. What is Teledyne's exposure to U.S. Government spending?

    Approximately 24% of 2017 total sales were derived from contracts with agencies of, and prime contractors to, the U.S. Government, compared with 27% in 2016. About 58% of U.S. Government contracts were fixed-price type in 2017, which exposes the company to cost overrun risk.

  3. How much debt does Teledyne carry and how is it structured?

    Total outstanding indebtedness was $1,068.2 million at December 31, 2017. It includes $165.0 million drawn on a $750.0 million credit facility, $175.5 million in term loans, a $100.0 million term loan, $300.0 million in Euro-denominated notes in the private placement, and $325.0 million in senior unsecured notes. The company was in compliance with its covenants, with a reported leverage ratio of 2.3 to 1.

  4. Does Teledyne pay dividends or repurchase shares?

    Teledyne stated it does not anticipate paying cash dividends in the foreseeable future and intends to use earnings to fund growth, including acquisitions. It repurchased 2,561,815 shares in 2015 and made no repurchases in 2016 or 2017, though it has authorized repurchase programs that remain open.

04—Continue

← View all 10-K filings