Teledyne Technologies Incorporated (NYSE:TDY)
- Record quarterly sales of $1,502.3 million, an increase of
5.4% compared with last year
- Fourth quarter GAAP diluted earnings per share of $4.20 and
record non-GAAP diluted earnings per share of $5.52
- Fourth quarter GAAP operating margin of 15.8% and fourth
quarter non-GAAP operating margin of 22.7%
- Full year GAAP diluted earnings per share of $17.21 and
record non-GAAP diluted earnings per share of $19.73
- Full year GAAP operating margin of 17.4% and full year
non-GAAP operating margin of 22.0%
- Record full year cash from operations of $1,191.9 million
and record free cash flow of $1,108.2 million
- Full year capital deployment of $1.1 billion for debt
repayments, stock repurchases and acquisitions. Expect to deploy
approximately $770 million on acquisitions in the first quarter of
2025
- Quarter-end Consolidated Leverage Ratio of 1.5x
- Recently completed acquisition of Micropac Industries, Inc.
on December 30, 2024
- Announced pending acquisition of select aerospace and
defense electronics businesses from Excelitas Technologies
Corp.
- Issuing full year 2025 GAAP diluted earnings per share
outlook of $17.70 to $18.20 and full year 2025 non-GAAP earnings
per share outlook of $21.10 to $21.50, which includes Micropac but
excludes Excelitas
Teledyne today reported fourth quarter 2024 net sales of
$1,502.3 million, compared with net sales of $1,425.0 million for
the fourth quarter of 2023, an increase of 5.4%. The fourth quarter
of 2024 net sales included $17.3 million in incremental net sales
from acquisitions. Net income attributable to Teledyne was $198.5
million ($4.20 diluted earnings per share) for the fourth quarter
of 2024, compared with $323.1 million ($6.75 diluted earnings per
share) for the fourth quarter of 2023, a decrease of 38.6%. The
fourth quarter of 2024 included $49.7 million of pretax acquired
intangible asset amortization expense, $52.5 million of pretax,
non-cash trademark impairments, $1.5 million of pretax transaction
and integration costs and $16.6 million of income tax benefits from
FLIR acquisition-related tax matters. Excluding these items,
non-GAAP net income attributable to Teledyne for the fourth quarter
of 2024 was $260.9 million ($5.52 diluted earnings per share). The
fourth quarter of 2023 included $48.6 million of pretax acquired
intangible asset amortization expense, $3.0 million of pretax
transaction and integration costs and $102.2 million of income tax
benefits from FLIR acquisition-related tax matters. Excluding these
items, non-GAAP net income attributable to Teledyne for the fourth
quarter of 2023 was $260.5 million ($5.44 diluted earnings per
share). Operating margin was 15.8% for the fourth quarter of 2024
compared with 19.1% for the fourth quarter of 2023. Excluding the
items discussed above, non-GAAP operating margin was 22.7% for both
the fourth quarter of 2024 and 2023.
“In the fourth quarter, we achieved all-time record sales and
non-GAAP earnings per share,” said Robert Mehrabian, Executive
Chairman. “Year-over-year growth accelerated, as our shorter-cycle
businesses improved throughout 2024 coupled with strong demand in
our longer cycle defense, space, and energy businesses. Given our
record free cash flow in 2024, we ended the year with very low
leverage despite $1.1 billion of capital deployment. We
successfully closed the Micropac acquisition at the beginning of
fiscal 2025, and we expect the completion of the Excelitas
carve-out transaction in the first quarter. We begin 2025
optimistic about our performance and business portfolio;
nevertheless, we remain vigilant given the strong U.S. dollar and
unpredictable geopolitical environment.”
Full Year
Full year net sales for 2024 were $5,670.0 million, compared
with $5,635.5 million for 2023, an increase of 0.6%. Net income
attributable to Teledyne was $819.2 million ($17.21 diluted
earnings per share) for fiscal year 2024, compared with $885.7
million ($18.49 diluted earnings per share) for fiscal year 2023, a
decrease of 7.5%.
Full year 2024 net sales included $49.4 million in incremental
net sales from acquisitions. The full year of 2024 included $198.0
million of pretax acquired intangible asset amortization expense,
$8.4 million of pretax transaction and integration costs, $52.5
million of pretax, non-cash trademark impairments and $77.8 million
of income tax benefits from FLIR acquisition-related tax matters.
Excluding these items, non-GAAP net income attributable to Teledyne
for the full year of 2024 was $939.2 million ($19.73 diluted
earnings per share). The full year of 2023 included $196.7 million
of pretax acquired intangible asset amortization expense, $8.8
million of pretax transaction and integration costs and $100.5
million of income tax benefits from FLIR acquisition-related tax
matters. Excluding these items, non-GAAP net income attributable to
Teledyne for the full year of 2023 was $943.3 million ($19.69
diluted earnings per share). Operating margin was 17.4% for 2024,
compared with 18.4% for 2023. Excluding the items discussed above,
non-GAAP operating margin was 22.0% for both 2024 and 2023.
Full year 2024 income tax expense included $77.8 million of
income tax benefits from FLIR acquisition-related tax matters as
well as $12.7 million of income tax benefits related to share-based
accounting. Full year 2023 income tax expense included $100.5
million of income tax benefits from FLIR acquisition-related tax
matters as well as $20.1 million of income tax benefits related to
share-based accounting.
In the fourth quarter of 2024, Teledyne completed its annual
impairment testing of goodwill and indefinite-lived intangibles
assets. As a result of the testing, the company recorded pretax,
non-cash impairment charges of $52.5 million related to
indefinite-lived trademarks.
Review of Operations
Comparisons are with the fourth quarter of 2023, unless noted
otherwise.
Digital Imaging
The Digital Imaging segment’s fourth quarter 2024 net sales were
$822.2 million, compared with $802.5 million, an increase of 2.5%.
Operating income was $90.8 million for the fourth quarter of 2024,
compared with $134.3 million, a decrease of 32.4%. The fourth
quarter of 2024 included $1.5 million of pretax transaction and
integration costs compared with $3.0 million. Acquired intangible
amortization expense for the fourth quarter of 2024 was $46.1
million compared with $44.9 million. In the fourth quarter of 2024,
Teledyne recorded a $49.5 million pretax, non-cash trademark
impairment. Excluding these items, non-GAAP operating income for
the fourth quarter of 2024 was $187.9 million, compared with $182.2
million, an increase of 3.1%.
The fourth quarter of 2024 net sales increased primarily due to
higher sales of unmanned air systems, surveillance systems, and
commercial infrared imaging systems partially offset by lower sales
of X-ray products, industrial automation imaging systems, and
unmanned ground systems. The fourth quarter of 2024 also included
$12.2 million of incremental sales from a recent acquisition. The
decrease in operating income was primarily due to a $49.5 million
pretax, non-cash trademark impairment recorded in the fourth
quarter of 2024.
Instrumentation
The Instrumentation segment’s fourth quarter 2024 net sales were
$368.9 million, compared with $335.2 million, an increase of 10.1%.
Operating income was $100.8 million for the fourth quarter of 2024,
compared with $90.7 million, an increase of 11.1%. In the fourth
quarter of 2024, Teledyne recorded a $3.0 million pretax, non-cash
trademark impairment.
The fourth quarter of 2024 net sales increase resulted from a
$29.9 million increase in sales of marine instrumentation primarily
due to stronger offshore energy and defense markets, a $1.9 million
increase in sales of electronic test and measurement
instrumentation as well as a $1.9 million increase in sales of
environmental instrumentation. The fourth quarter of 2024 also
included $5.1 million of incremental sales from recent
acquisitions. The increase in operating income primarily reflected
the impact of higher marine instrumentation sales as well as
favorable marine instrumentation product mix and improved marine
instrumentation margins.
Aerospace and Defense Electronics
The Aerospace and Defense Electronics segment’s fourth quarter
2024 net sales were $196.5 million, compared with $184.0 million,
an increase of 6.8%. Operating income was $56.4 million for the
fourth quarter of 2024, compared with $50.0 million, an increase of
12.8%.
The fourth quarter of 2024 net sales reflected higher sales of
$15.3 million for defense electronics, partially offset by lower
sales of $2.8 million for aerospace electronics. The increase in
operating income primarily reflected the impact of higher sales and
favorable product mix.
Engineered Systems
The Engineered Systems segment’s fourth quarter 2024 net sales
were $114.7 million, compared with $103.3 million, an increase of
11.0%. Operating income was $9.8 million for the fourth quarter of
2024, compared with $12.3 million, a decrease of 20.3%.
The fourth quarter of 2024 net sales reflected higher sales of
$11.3 million for engineered products and $0.1 million for energy
systems. The higher sales for engineered products primarily
reflected increased sales from electronic manufacturing services
products. The decrease in operating income included $2.9 million of
unfavorable contract estimate changes related to electronic
manufacturing services products.
Additional Financial Information
Cash Flow
Cash provided by operating activities was $332.4 million for the
fourth quarter of 2024 compared with $164.4 million, with the
increase driven primarily by lower income tax payments in the
fourth quarter of 2024. In the prior year, the Internal Revenue
Service (“IRS”) announcements related to the California floods
postponed approximately $139 million of Teledyne’s second and third
quarter 2023 U.S. federal income tax payments, which the Company
paid in the fourth quarter of 2023. Depreciation and amortization
expense for the fourth quarter of 2024 was $77.1 million compared
with $77.4 million. Stock-based compensation expense for the fourth
quarter of 2024 was $7.7 million compared with $8.0 million.
Capital expenditures for the fourth quarter of 2024 were $29.0
million compared with $40.2 million, with the decrease related to
timing of capital projects. Teledyne received $21.4 million from
the exercise of stock options in the fourth quarter of 2024
compared with $18.2 million.
During the fourth quarter and full year of 2024, the Company
repurchased approximately 47.9 thousand shares for $21.4 million,
and 885.3 thousand shares for $353.9 million, respectively.
As of December 29, 2024, net debt was $1,999.2 million which is
calculated as total debt of $2,649.0 million, net of cash and cash
equivalents of $649.8 million. As of December 31, 2023, net debt
was $2,596.6 million representing total debt of $3,244.9 million,
net of cash and cash equivalents of $648.3 million.
As of December 29, 2024, $1.17 billion was available under the
$1.20 billion credit facility, after reductions of $29.3 million in
outstanding letters of credit.
Fourth Quarter
Total Year
Free Cash Flow
2024
2023
2024
2023
Cash provided by operating activities
$
332.4
$
164.4
$
1,191.9
$
836.1
Capital expenditures for property, plant
and equipment
(29.0
)
(40.2
)
(83.7
)
(114.9
)
Free cash flow
$
303.4
$
124.2
$
1,108.2
$
721.2
Income Taxes
The effective tax rate for the fourth quarter of 2024 was 11.7%.
The fourth quarter of 2024 included certain income tax benefits of
$30.2 million compared with $123.4 million, with the benefits in
both years primarily due to FLIR acquisition-related tax
matters.
Other
Corporate expense was $20.7 million for the fourth quarter of
2024 compared with $15.8 million. Non-service retirement benefit
income was $2.6 million for the fourth quarter of 2024 compared
with $3.1 million. Interest expense, net of interest income, was
$13.7 million for the fourth quarter of 2024 compared with $15.6
million, with the decrease due to reduced outstanding borrowings
compared to the fourth quarter of 2023.
Outlook
Based on its current outlook, which includes Micropac but
excludes Excelitas, the company’s management believes that first
quarter 2025 GAAP diluted earnings per share will be in the range
of $3.90 to $4.04 and full year 2025 GAAP diluted earnings per
share will be in the range of $17.70 to $18.20. The company’s
management further believes that first quarter 2025 non-GAAP
diluted earnings per share will be in the range of $4.80 to $4.90
and full year 2025 non-GAAP diluted earnings per share will be in
the range of $21.10 to $21.50. The non-GAAP outlook excludes
acquired intangible asset amortization as well as acquisition and
integration costs.
Use of Non-GAAP Financial Measures
We report our financial results in accordance with generally
accepted accounting principles in the United States (“GAAP”). We
supplement the reporting of our financial results determined under
GAAP with certain non-GAAP financial measures. The non-GAAP
financial measures presented provides management, financial
analysts, and investors with additional useful information in
evaluating the performance of the company. The non-GAAP financial
measures should be considered in addition to, and not as a
substitute for, financial measures prepared in accordance with
GAAP. Further details on reasons that we use non-GAAP financial
measures, a reconciliation of these measures to the most directly
comparable GAAP measures, and other information relating to these
measures are included following our GAAP financial statements.
Forward-Looking Statements Cautionary Notice
This earnings release contains forward-looking statements, as
defined in the Private Securities Litigation Reform Act of 1995,
with respect to management’s beliefs about the financial condition,
results of operations, acquisitions and product synergies,
integration costs, tax matters and businesses of Teledyne in the
future. Forward-looking statements involve risks and uncertainties,
are based on the current expectations of the management of Teledyne
and are subject to uncertainty and changes in circumstances.
The forward-looking statements contained herein may include
statements relating to sales, sales growth, stock-based
compensation expense, tax rates, anticipated capital expenditures,
stock repurchases, product developments, completion of acquisitions
and other strategic options. Forward-looking statements generally
are accompanied by words such as “projects”, “intends”, “expects”,
“anticipates”, “targets”, “estimates”, “will” and words of similar
import that convey the uncertainty of future events or outcomes.
All statements made in this communication that are not historical
in nature should be considered forward-looking. By its nature,
forward-looking information is not a guarantee of future
performance or results and involves risks and uncertainties because
it relates to events and depends on circumstances that will occur
in the future.
Actual results could differ materially from these
forward-looking statements. Many factors could change anticipated
results, including: changes in relevant tax and other laws; foreign
currency exchange risks; rising interest rates; risks associated
with indebtedness, as well as our ability to reduce indebtedness
and the timing thereof; the impact of policies of the new
Presidential Administration, especially with respect to new and
higher tariffs, cutbacks in the funding of government agencies and
programs, and the scaling back of environmental and green energy
policies; the impact of semiconductor and other supply chain
shortages; higher inflation, including wage competition and higher
shipping costs; labor shortages and competition for skilled
personnel; the inability to develop and market new competitive
products; inherent uncertainties involved in the estimates and
judgments used in the preparation of financial statements and the
providing of estimates of financial measures, in accordance with
GAAP and related standards; disruptions in the global economy; the
ongoing conflict in Israel and neighboring regions, including
related protests, attacks on defense contractors and suppliers and
the disruption to global shipping routes; the ongoing conflict
between Russia and Ukraine, including the impact to energy prices
and availability, especially in Europe; customer and supplier
bankruptcies; changes in demand for products sold to the defense
electronics, instrumentation, digital imaging, energy exploration
and production, commercial aviation, semiconductor and
communications markets; funding, continuation and award of
government programs; cuts to defense spending resulting from
existing and future deficit reduction measures or changes to U.S.
and foreign government spending and budget priorities triggered by
inflation, rising interest costs, and economic conditions; the
imposition and expansion of, and responses to, trade sanctions and
tariffs; the continuing review and resolution of FLIR’s trade
compliance and tax matters; escalating economic and diplomatic
tension between China and the United States; threats to the
security of our confidential and proprietary information, including
cybersecurity threats; risks related to artificial intelligence;
natural and man-made disasters, including those related to or
intensified by climate change; and our ability to achieve emission
reduction targets and decrease our carbon footprint. Lower oil and
natural gas prices, as well as instability in the Middle East or
other oil producing regions, and new regulations or restrictions
relating to energy production, including those implemented in
response to climate change, could further negatively affect our
businesses that supply the oil and gas industry. Weakness in the
commercial aerospace industry negatively affects the markets of our
commercial aviation businesses. Lower aircraft production rates at
Boeing or Airbus could result in reduced sales of our commercial
aerospace products. In addition, financial market fluctuations
affect the value of the company’s pension assets. Changes in the
policies of U.S. and foreign governments, including economic
sanctions or in regard to support for Ukraine, could result, over
time, in reductions or realignment in defense or other government
spending and further changes in programs in which the company
participates.
While the company’s growth strategy includes possible
acquisitions, we cannot provide any assurance as to when, if or on
what terms any acquisitions will be made. Acquisitions involve
various inherent risks, such as, among others, our ability to
integrate acquired businesses, retain key management and customers
and achieve identified financial and operating synergies. There are
additional risks associated with acquiring, owning and operating
businesses internationally, including those arising from U.S. and
foreign government policy changes or actions and exchange rate
fluctuations.
Additional factors that could cause results to differ materially
from those described above can be found in Teledyne’s Annual Report
on Form 10-K for the year ended December 31, 2023, as well as
subsequent Quarterly Reports on Form 10-Q and Current Reports on
Form 8-K, all of which are on file with the U.S. Securities and
Exchange Commission (“SEC”) and available in the “Investors”
section of Teledyne’s website, teledyne.com, under the heading
“Investor Information” and in other documents Teledyne files with
the SEC.
All forward-looking statements speak only as of the date they
are made and are based on information available at that time.
Teledyne assumes no obligation to update forward-looking statements
to reflect circumstances or events that occur after the date the
forward-looking statements were made or to reflect the occurrence
of unanticipated events except as required by federal securities
laws. As forward-looking statements involve significant risks and
uncertainties, caution should be exercised against placing undue
reliance on such statements.
A live webcast of Teledyne’s fourth quarter earnings conference
call will be held at 11:00 a.m. (Eastern) on Wednesday, January 22,
2025. To access the call, go to
www.teledyne.com/investors/events-and-presentations approximately
ten minutes before the scheduled start time. A replay will also be
available for one month starting at 12:00 p.m. (Eastern) on
Wednesday, January 22, 2025.
TELEDYNE TECHNOLOGIES
INCORPORATED
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
FOR THE FOURTH QUARTER AND
YEAR ENDED
DECEMBER 29, 2024 AND DECEMBER
31, 2023
(Unaudited - in millions, except
per share amounts)
Fourth Quarter
Fourth Quarter
Total Year
Total Year
2024
2023
2024
2023
Net sales
$
1,502.3
$
1,425.0
$
5,670.0
$
5,635.5
Costs and expenses:
Costs of sales
859.6
801.9
3,235.2
3,196.1
Selling, general and administrative
(a)
355.9
303.0
1,247.7
1,208.3
Acquired intangible asset amortization
49.7
48.6
198.0
196.7
Total costs and expenses
1,265.2
1,153.5
4,680.9
4,601.1
Operating income (loss)
237.1
271.5
989.1
1,034.4
Interest and debt income (expense),
net
(13.7
)
(15.6
)
(57.9
)
(77.3
)
Gain (loss) on debt extinguishment
—
—
—
1.6
Non-service retirement benefit income
(expense), net
2.6
3.1
10.8
12.4
Other income (expense), net
(0.4
)
(4.8
)
(4.1
)
(12.2
)
Income (loss) before income taxes
225.6
254.2
937.9
958.9
Provision (benefit) for income taxes
(b)
26.5
(69.3
)
117.2
72.3
Net income (loss) including noncontrolling
interest
199.1
323.5
820.7
886.6
Less: Net income (loss) attributable to
noncontrolling interest
0.6
0.4
1.5
0.9
Net income (loss) attributable to
Teledyne
$
198.5
$
323.1
$
819.2
$
885.7
Diluted earnings per common share
$
4.20
$
6.75
$
17.21
$
18.49
Weighted average diluted common shares
outstanding
47.3
47.9
47.6
47.9
(a) The fourth quarter and full year of 2024 includes pretax,
non-cash impairment charges of $52.5 million related to
indefinite-lived trademarks.
(b) The fourth quarter and full year of 2024 includes income tax
benefits from FLIR acquisition-related tax matters of $16.6 million
and $77.8 million, respectively. The fourth quarter and full year
of 2023 includes income tax benefits from FLIR acquisition-related
tax matters of $102.2 million and $100.5 million, respectively.
This condensed consolidated financial statements were prepared
in accordance with GAAP.
TELEDYNE TECHNOLOGIES
INCORPORATED
SUMMARY OF SEGMENT NET SALES
AND OPERATING INCOME
FOR THE FOURTH QUARTER AND
YEAR ENDED
DECEMBER 29, 2024 AND DECEMBER
31, 2023
(Unaudited - $ in millions)
Fourth
Quarter
Fourth
Quarter
%
Change
Total
Year
Total
Year
%
Change
2024
2023
2024
2023
Net sales:
Digital Imaging
$
822.2
$
802.5
2.5
%
$
3,070.8
$
3,144.1
(2.3
)%
Instrumentation
368.9
335.2
10.1
%
1,382.6
1,326.2
4.3
%
Aerospace and Defense Electronics
196.5
184.0
6.8
%
776.8
726.5
6.9
%
Engineered Systems
114.7
103.3
11.0
%
439.8
438.7
0.3
%
Total net sales
$
1,502.3
$
1,425.0
5.4
%
$
5,670.0
$
5,635.5
0.6
%
Operating income (loss):
Digital Imaging (a)
$
90.8
$
134.3
(32.4
)%
$
442.0
$
517.4
(14.6
)%
Instrumentation (a)
100.8
90.7
11.1
%
370.3
338.3
9.5
%
Aerospace and Defense Electronics
56.4
50.0
12.8
%
221.7
199.6
11.1
%
Engineered Systems
9.8
12.3
(20.3
)%
32.9
44.7
(26.4
)%
Corporate expense
(20.7
)
(15.8
)
31.0
%
(77.8
)
(65.6
)
18.6
%
Operating income (loss)
237.1
271.5
(12.7
)%
989.1
1,034.4
(4.4
)%
Interest and debt income (expense),
net
(13.7
)
(15.6
)
(12.2
)%
(57.9
)
(77.3
)
(25.1
)%
Gain (loss) on debt extinguishment
—
—
—
%
—
1.6
(100.0
)%
Non-service retirement benefit income
(expense), net
2.6
3.1
(16.1
)%
10.8
12.4
(12.9
)%
Other income (expense), net
(0.4
)
(4.8
)
(91.7
)%
(4.1
)
(12.2
)
(66.4
)%
Income (loss) before income taxes
225.6
254.2
(11.3
)%
937.9
958.9
(2.2
)%
Provision (benefit) for income taxes
(b)
26.5
(69.3
)
(138.2
)%
117.2
72.3
62.1
%
Net income (loss) including noncontrolling
interest
199.1
323.5
(38.5
)%
820.7
886.6
(7.4
)%
Less: Net income (loss) attributable to
noncontrolling interest
0.6
0.4
50.0
%
1.5
0.9
66.7
%
Net income (loss) attributable to
Teledyne
$
198.5
$
323.1
(38.6
)%
$
819.2
$
885.7
(7.5
)%
(a) The fourth quarter and full year of 2024 includes pretax,
non-cash impairment charges of $52.5 million related to
indefinite-lived trademarks, with $49.5 million recorded within
Digital Imaging and $3.0 million recorded within Marine
Instrumentation.
(b) The fourth quarter and full year of 2024 includes income tax
benefits from FLIR acquisition-related tax matters of $16.6 million
and $77.8 million, respectively. The fourth quarter and full year
of 2023 includes income tax benefits from FLIR acquisition-related
tax matters of $102.2 million and $100.5 million, respectively.
This condensed consolidated financial statements were prepared
in accordance with GAAP.
TELEDYNE TECHNOLOGIES
INCORPORATED
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in millions)
December 29, 2024
December 31, 2023
(Unaudited)
ASSETS
Cash and cash equivalents
$
649.8
$
648.3
Accounts receivable and unbilled
receivables, net
1,213.2
1,202.1
Inventories, net
914.4
917.7
Prepaid expenses and other current
assets
167.2
213.3
Total current assets
2,944.6
2,981.4
Property, plant and equipment, net
745.2
777.0
Goodwill and acquired intangible assets,
net
10,003.4
10,280.9
Prepaid pension assets
227.6
203.3
Other assets, net
279.7
285.3
Total assets
$
14,200.5
$
14,527.9
LIABILITIES AND EQUITY
Accounts payable
$
416.4
$
384.7
Accrued liabilities
844.9
781.3
Current portion of long-term debt
0.3
600.1
Total current liabilities
1,261.6
1,766.1
Long-term debt, net of current portion
2,648.7
2,644.8
Other long-term liabilities
734.8
891.2
Total liabilities
4,645.1
5,302.1
Redeemable noncontrolling interest
6.0
4.6
Total stockholders’ equity
9,549.4
9,221.2
Total liabilities and equity
$
14,200.5
$
14,527.9
This condensed consolidated financial statements were prepared
in accordance with GAAP.
TELEDYNE TECHNOLOGIES
INCORPORATED
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
FOR THE FOURTH QUARTER AND
YEAR ENDED
DECEMBER 29, 2024 AND DECEMBER
31, 2023
(Unaudited - $ in millions,
except per share amounts)
Fourth Quarter 2024
Fourth Quarter 2023
Income
(loss)
before
income
taxes
Net (loss)
income
attributable
to Teledyne
Diluted
earnings
per
common
share
Income
(loss)
before
income
taxes
Net (loss)
income
attributable
to Teledyne
Diluted
earnings
per
common
share
GAAP
$
225.6
$
198.5
$
4.20
$
254.2
$
323.1
$
6.75
Adjusted for specified items:
Transaction and integration costs
1.5
1.0
0.02
3.0
2.3
0.05
Non-cash trademark impairments
52.5
40.0
0.85
—
—
—
Acquired intangible asset amortization
49.7
38.0
0.80
48.6
37.3
0.77
FLIR acquisition-related tax matters
—
(16.6
)
(0.35
)
—
(102.2
)
(2.13
)
Non-GAAP
$
329.3
$
260.9
$
5.52
$
305.8
$
260.5
$
5.44
Total Year 2024
Total Year 2023
Income
(loss)
before
income
taxes
Net (loss)
income
attributable
to Teledyne
Diluted
earnings
per
common
share
Income
(loss)
before
income
taxes
Net (loss)
income
attributable
to Teledyne
Diluted
earnings
per
common
share
GAAP
$
937.9
$
819.2
$
17.21
$
958.9
$
885.7
$
18.49
Adjusted for specified items:
Transaction and integration costs
8.4
6.4
0.13
8.8
6.8
0.14
Non-cash trademark impairments
52.5
40.0
0.84
—
—
—
Acquired intangible asset amortization
198.0
151.4
3.18
196.7
151.3
3.16
FLIR acquisition-related tax matters
—
(77.8
)
(1.63
)
—
(100.5
)
(2.10
)
Non-GAAP
$
1,196.8
$
939.2
$
19.73
$
1,164.4
$
943.3
$
19.69
Fourth Quarter 2024
Fourth Quarter 2023
Operating
income (loss)
Operating
margin
Operating
income (loss)
Operating
margin
GAAP
$
237.1
15.8
%
$
271.5
19.1
%
Adjusted for specified items:
Transaction and integration costs
1.5
3.0
Non-cash trademark impairments
52.5
—
Acquired intangible asset amortization
49.7
48.6
Non-GAAP
$
340.8
22.7
%
$
323.1
22.7
%
Total Year 2024
Total Year 2023
Operating
income (loss)
Operating
margin
Operating
income (loss)
Operating
margin
GAAP
$
989.1
17.4
%
$
1,034.4
18.4
%
Adjusted for specified items:
Transaction and integration costs
8.4
8.8
Non-cash trademark impairments
52.5
—
Acquired intangible asset amortization
198.0
196.7
Non-GAAP
$
1,248.0
22.0
%
$
1,239.9
22.0
%
TELEDYNE TECHNOLOGIES
INCORPORATED
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(Unaudited - in millions)
Fourth Quarter 2024
GAAP
Operating
Income (loss)
Acquired
intangible asset
amortization
Non-cash
trademark
impairments
Transaction
and integration
costs
Non-GAAP
Operating
Income (loss)
Digital Imaging
$
90.8
$
46.1
$
49.5
$
1.5
$
187.9
Instrumentation
100.8
3.4
3.0
—
107.2
Aerospace and Defense Electronics
56.4
0.2
—
—
56.6
Engineered Systems
9.8
—
—
—
9.8
Corporate expense
(20.7
)
—
—
—
(20.7
)
Total
$
237.1
$
49.7
$
52.5
$
1.5
$
340.8
Fourth Quarter 2023
GAAP
Operating
Income (loss)
Acquired
intangible asset
amortization
Transaction
and integration
costs
Non-GAAP
Operating
Income (loss)
Digital Imaging
$
134.3
$
44.9
$
3.0
$
182.2
Instrumentation
90.7
3.5
—
94.2
Aerospace and Defense Electronics
50.0
0.2
—
50.2
Engineered Systems
12.3
—
—
12.3
Corporate expense
(15.8
)
—
—
(15.8
)
Total
$
271.5
$
48.6
$
3.0
$
323.1
Total Year 2024
GAAP
Operating
Income (loss)
Acquired
intangible asset
amortization
Non-cash
trademark
impairments
Transaction
and integration
costs
Non-GAAP
Operating
Income (loss)
Digital Imaging
$
442.0
$
183.3
$
49.5
$
8.4
$
683.2
Instrumentation
370.3
13.9
3.0
—
387.2
Aerospace and Defense Electronics
221.7
0.8
—
—
222.5
Engineered Systems
32.9
—
—
—
32.9
Corporate expense
(77.8
)
—
—
—
(77.8
)
Total
$
989.1
$
198.0
$
52.5
$
8.4
$
1,248.0
Total Year 2023
GAAP
Operating
Income (loss)
Acquired
intangible asset
amortization
Transaction
and integration
costs
Non-GAAP
Operating
Income (loss)
Digital Imaging
$
517.4
$
181.7
$
8.8
$
707.9
Instrumentation
338.3
14.2
—
352.5
Aerospace and Defense Electronics
199.6
0.8
—
200.4
Engineered Systems
44.7
—
—
44.7
Corporate expense
(65.6
)
—
—
(65.6
)
Total
$
1,034.4
$
196.7
$
8.8
$
1,239.9
TELEDYNE TECHNOLOGIES
INCORPORATED
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(Unaudited - in millions, except
per share amounts)
December 29, 2024
December 31, 2023
Current portion of long-term debt
$
0.3
$
600.1
Long-term debt
2,648.7
2,644.8
Total debt - non-GAAP
2,649.0
3,244.9
Less cash and cash equivalents
(649.8
)
(648.3
)
Net debt - non-GAAP
$
1,999.2
$
2,596.6
First Quarter 2025
Total Year 2025
Low
High
Low
High
GAAP Diluted Earnings Per Common Share
Outlook
$
3.90
$
4.04
$
17.70
$
18.20
Adjusted for specified items:
Transaction and integration costs
$
0.07
$
0.05
$
0.07
$
0.05
Acquired intangible asset amortization
$
0.83
$
0.81
$
3.33
$
3.25
Non-GAAP Diluted Earnings Per Common
Share Outlook
$
4.80
$
4.90
$
21.10
$
21.50
Explanation of Non-GAAP Financial Measures
We report our financial results in accordance with GAAP.
However, management believes that, in order to more fully
understand our short-term and long-term financial and operational
trends, and to aid in comparability with our competitors, investors
and financial analysts may wish to consider the impact of certain
items resulting from our acquisitions which have an infrequent or
non-recurring impact on operations or assist in understanding our
operations pre-acquisition. Accordingly, we present non-GAAP
financial measures as a supplement to the financial measures we
present in accordance with GAAP. These non-GAAP financial measures
provide management, investors and financial analysts with
additional means to understand and evaluate the operating results
and trends in our ongoing business by adjusting for certain
expenses and benefits. Management believes these non-GAAP financial
measures also provide additional means of evaluating
period-over-period operating performance. In addition, management
understands that some investors and financial analysts find this
information helpful in analyzing our financial and operational
performance and comparing this performance to our peers and
competitors. The company’s diluted earnings per common share
outlook guidance is also presented on a non-GAAP basis.
The non-GAAP financial measures are not meant to be considered
superior to, or a substitute for, our financial statements prepared
in accordance with GAAP. There are material limitations associated
with non-GAAP financial measures because they exclude charges that
have an effect on our reported results and, therefore, should not
be relied upon as the sole financial measures by which to evaluate
our financial results. Management compensates and believes that
investors should compensate for these limitations by viewing the
non-GAAP financial measures in conjunction with the GAAP financial
measures. In addition, the non-GAAP financial measures included in
this earnings announcement may be different from, and therefore may
not be comparable to, similar measures used by other companies. The
non-GAAP financial measures are also used by our management to
evaluate our operating performance and benchmark our results
against our historical performance and the performance of our
peers.
Our non-GAAP measures are as follows:
Non-GAAP income before income taxes, net income and diluted
earnings per common share
These non-GAAP measures provided a supplemental view of income
before taxes, net income, and diluted earnings per common share.
These non-GAAP measures exclude certain acquisition and
integration-related costs, acquired intangible asset amortization,
the remeasurement of deferred taxes related to acquired intangible
assets due to changes in tax laws, and the tax benefits or costs
related to the settlement or other resolution of the FLIR tax
reserves. We also adjust for any post-acquisition interest on
certain income tax reserves related to FLIR. We adjust for any
income tax impact related to these items to take into account the
tax treatment and related tax rate and changes in tax rates that
apply to each adjustment in the applicable tax jurisdiction.
Generally, this results in the tax impact at the U.S. marginal tax
rate for certain adjustments, including the majority of
amortization of intangible assets, whereas the tax impact of other
adjustments, including transaction expenses, depend on whether the
amounts are deductible in the respective tax jurisdictions and the
applicable tax rates in those jurisdictions. We believe these
measures provide investors and management with additional means to
understand and evaluate the operating results of our business by
adjusting for certain expenses and benefits and present an
alternative view of our performance compared to prior periods.
Non-GAAP operating income and operating margin
We define non-GAAP operating margin as non-GAAP operating income
divided by net sales. These non-GAAP measures exclude certain
acquisition and integration-related costs and acquired intangible
asset amortization. We believe these measures provide investors and
management with additional means to understand and evaluate the
operating results of our business by adjusting for certain expenses
and other items and present an alternative view of our performance
compared to prior periods.
Non-GAAP total debt and net debt
We define non-GAAP total debt as the sum of current portion of
long-term debt and other debt and long-term debt. We define net
debt as the difference between non-GAAP total debt less cash and
cash equivalents. The company believes that this non-GAAP
information is useful to assist investors and management in
analyzing the company’s liquidity.
Non-GAAP diluted earnings per common share outlook
These non-GAAP measures represent our earnings per common share
outlook for the first quarter of 2025 and total year 2025 on a
fully diluted basis, excluding certain acquisition and integration
costs, acquired intangible asset amortization for all acquisitions
and FLIR acquisition-related tax matters.
Non-GAAP cash provided by operations and free cash
flow
We define free cash flow as cash provided by operating
activities (a measure prescribed by GAAP) less capital expenditures
for property, plant and equipment. We believe that this non-GAAP
information is useful to assist management and the investment
community in analyzing the company’s ability to generate cash
flow.
Non-GAAP line items used in tables
Management excludes the effect of each of the
acquisition-related items identified below to arrive at the
applicable non-GAAP financial measure referenced in the tables for
the reasons set forth below with respect to that item:
- Acquired intangible asset
amortization – We believe that excluding the amortization of
acquired intangible assets, which primarily represents purchased
technology and customer relationships, as well as purchase order
and contract backlog, provides an alternative way for investors to
compare our operations pre-acquisition to those post-acquisition
and to those of our competitors that have pursued internal growth
strategies. However, we note that companies that grow internally
will incur costs to develop intangible assets that will be expensed
in the period incurred, which may make a direct comparison more
difficult.
- Non-cash trademark impairments –
Included in selling, general and administrative expenses is
non-cash trademark impairment expense. Similar to the amortization
of acquired intangible assets, we believe excluding the non-cash
trademark impairments provides an alternative way for investors to
compare our operations.
- Transaction and integration costs
– Included in our GAAP presentation of cost of sales and selling,
general and administrative expenses are substantial expenses (or
benefits) incurred with acquisitions and primarily include legal,
accounting, other professional fees as well as integration-related
costs such as employee separation costs, facility consolidation
costs and facility lease impairments. Employee separation costs
include required change-in-control payments, cash settlement of
employee and director stock awards, as well as other employee
severance amounts. We exclude these costs from our non-GAAP
measures because we believe it does not reflect our ongoing
financial performance.
- FLIR acquisition-related tax
matters – Included in our tax provision is post-acquisition
interest on certain income tax reserves related to FLIR, as well as
the tax benefits or costs related to the settlement or other
resolution of the FLIR tax reserves. We exclude these impacts from
our non-GAAP measures because we believe it does not reflect our
ongoing financial performance.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250122535885/en/
Jason VanWees (805) 373-4542
Teledyne Technologies (NYSE:TDY)
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Teledyne Technologies (NYSE:TDY)
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From Jan 2024 to Jan 2025
