THOUSAND OAKS, Calif. - January 27, 2022 - Teledyne Technologies Incorporated (NYSE:TDY)
- Record quarterly sales of $1,375.7 million, an increase of 70.0% compared with last year
- Fourth quarter GAAP diluted earnings per share of $3.39 and non-GAAP diluted earnings per share of $4.56
- Fourth quarter GAAP operating margin of 14.2% and non-GAAP operating margin of 21.5%
- Record annual sales of $4,614.3 million, an increase of 49.5% compared with last year
- Full year GAAP diluted earnings per share of $10.05 and non-GAAP diluted earnings per share of $16.86
- Full year GAAP operating margin of 13.5% and non-GAAP operating margin of 21.3%
- Record quarterly and annual cash flow from operations
- Year-end Consolidated Leverage Ratio declined to 2.9x from 3.8x in May 2021
- Issuing full year 2022 GAAP diluted earnings outlook of $14.10 to $14.55 per share and full year 2022 non-GAAP earnings outlook of $17.60 to $18.00 per share
Teledyne today reported fourth quarter 2021 net sales of $1,375.7 million, compared with net sales of $809.3 million for the fourth quarter of 2020, an increase of 70.0%. Net income was $161.8 million ($3.39 diluted earnings per share) for the fourth quarter of 2021, compared with $132.1 million ($3.48 diluted earnings per share) for the fourth quarter of 2020, an increase of 22.5%. The fourth quarter of 2021 net sales included $498.6 million in incremental net sales from the acquisition of FLIR Systems, Inc. ("FLIR"). In connection with the FLIR acquisition, in the fourth quarter of 2021, Teledyne incurred pretax expenses of $90.5 million, which included $47.8 million in acquired inventory step-up expense, $41.9 million in acquired intangible asset amortization expense and $0.8 million of transaction and integration-related costs. The fourth quarter of 2021 also included $9.5 million of pretax acquired intangible asset amortization expense for transactions completed in prior periods. Excluding these charges and related tax matters, non-GAAP net income for the fourth quarter of 2021 was $217.4 million ($4.56 per share). The fourth quarter of 2020 included pretax charges of $20.0 million which included $9.6 million in acquired intangible asset amortization expense and $10.4 million in severance, facility consolidation and other costs. Excluding acquired intangible asset amortization expense, non-GAAP net income for the fourth quarter of 2020 was $139.5 million ($3.68 per share). Operating margin was 14.2% for the fourth quarter of 2021, compared with 17.8% for the fourth quarter of 2020. Excluding acquisition-related transaction and purchase accounting expenses, non-GAAP operating margin for the fourth quarter of 2021 was 21.5%, compared with 19.0% for the fourth quarter of 2020. The fourth quarter of 2021 reflected net discrete income tax benefits of $26.2 million compared with net discrete income tax benefits of $18.8 million for the fourth quarter of 2020.
"2021 was a defining year for Teledyne with record sales and adjusted earnings, operating margin and cash flow. Furthermore, with the successful acquisition and integration of Teledyne FLIR, Teledyne has further evolved into a global sensing and decision-support technology company," said Robert Mehrabian, Chairman, President and Chief Executive Officer. "Organic sales growth in the fourth quarter and full year was over eight percent in each period. In addition, fourth quarter and full year adjusted operating margins increased approximately 250 and 450 basis points, respectively. When Teledyne first announced the FLIR acquisition, we projected that leverage would decline to 3.0x by the end of 2022, and we exited 2021 with a leverage ratio of just 2.9x. We also projected that the acquisition would be accretive to GAAP earnings in the first full calendar year following the transaction. Today's full year 2022 GAAP earnings per share outlook is over 30% greater than any pre-acquisition period, and excluding only intangible asset amortization, our 2022 non-GAAP earnings outlook is over 50% greater than 2019 or 2020."
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