10-K annual report · filed Feb 23, 2017

Teleflex Inc (TFX) FY2016 10-K Annual Report

Short answer

Teleflex Inc (TFX) filed its fiscal 2016 10-K annual report with the SEC on Feb 23, 2017. It reported revenue of $1.9B and net income of $237M.

  • Top risk flagged: FDA regulation: noncompliance could trigger manufacturing shutdowns, recalls, civil penalties, or Medicare and Medicaid exclusion

FY2016 key financial metrics · XBRL

Revenue
$1.9B
Net income
$237M
Operating margin
17.1%
Gross margin
53.3%
EPS (diluted)
$4.98
ROE
11.1%
Operating cash flow
$411M

Source: XBRL data from the Teleflex Inc (TFX) FY2016 10-K on SEC EDGAR. USD.

Teleflex Inc FY2016 10-K analysis

AI summary of each section, grounded in the filing text

Business Overview

  • Global medical-device model, single-use products sold to hospitals and providers through direct sales and distributors
  • Six reportable segments, with OEM providing custom-engineered devices and development services
  • 2016 emphasis on distributor-to-direct conversion in China, following similar initiatives in Australia, Korea, Japan and EMEA
  • 12,600 employees at year-end, including 9,700 outside the United States
  • R&D spending increased to $58.6 million from $52.1 million in 2015
  • Vascular Solutions acquisition announced February 17, 2017, expanding minimally invasive coronary and peripheral vascular capabilities

Management Discussion & Analysis

  • Revenue $1,868.0M, up 3.2% YoY from $1,809.7M, driven by existing products $37.3M and new products $24.2M
  • Gross margin 53.3% vs 52.2%; SG&A margin 30.2% vs 31.4%; effective tax rate 3.3% vs 3.2%
  • Best segment: Vascular North America revenue $350.5M, operating profit $97.1M, up 32.5%; worst: EMEA revenue $510.9M, down 0.7%, profit $84.4M, down 8.6%
  • Operating cash flow $410.6M; capex $53.1M; dividends $59.0M; acquisitions and intangibles $14.0M
  • 2017 Asia guidance: revenue decline $4M to $8M and operating profit decline $6M to $9M; Vascular Solutions acquisition $1.0B and economic risks in Europe remaining resurgent

Risk Factors

  • FDA regulation: noncompliance could trigger manufacturing shutdowns, recalls, civil penalties, or Medicare and Medicaid exclusion
  • European exposure: $51.1 million receivables in Italy, Spain, Portugal, and Greece amid constrained credit markets
  • Manufacturing vulnerability: key products rely on single facilities with limited alternate capacity and FDA approval requirements
  • Competitive disruption: faster medical-device innovation could produce superior clinical outcomes or economic value
  • Leverage: $1,046 million consolidated indebtedness constrained cash flow, borrowing capacity, and strategic flexibility

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