THOUSAND OAKS, Calif. - October 27, 2021 - Teledyne Technologies Incorporated (NYSE:TDY)
- Record sales of $1,311.9 million, an increase of 75.2% compared with last year
- Third quarter GAAP diluted earnings per share of $2.81, an increase of 13.3% compared with last year
- Third quarter non-GAAP diluted earnings per share of $4.34, excluding acquisition-related pretax transaction and purchase accounting expenses of $92.3 million and related tax matters ($1.53 per share)
- Third quarter GAAP operating margin of 14.5% and non-GAAP operating margin of 21.5%
- Record third quarter cash flow from operations
- Increasing full year 2021 GAAP earnings outlook to $9.13 to $9.29 per share, compared with the prior outlook of $8.05 to $8.45 per share and full year 2021 non-GAAP earnings outlook to $16.35 to $16.45 per share, compared with $15.25 to $15.50 per share, which excludes acquisition-related transaction and purchase accounting expenses and related tax matters
Teledyne today reported third quarter 2021 net sales of $1,311.9 million, compared with net sales of $749.0 million for the third quarter of 2020, an increase of 75.2%. Net income was $134.1 million ($2.81 diluted earnings per share) for the third quarter of 2021, compared with $93.9 million ($2.48 diluted earnings per share) for the third quarter of 2020, an increase of 42.8%. The third quarter of 2021 net sales included $473.6 million in incremental net sales from the acquisition of FLIR Systems, Inc. ("FLIR"). In connection with the FLIR acquisition, in the third quarter of 2021, Teledyne incurred pretax expenses of $82.6 million, which included $45.6 million in acquired intangible asset amortization expense, $35.2 million in acquired inventory step-up expense and $1.8 million of transaction and integration-related costs. The third quarter of 2021 also included $9.7 million of acquired intangible asset amortization expense for transactions completed in prior periods. Excluding these charges and related tax matters, non-GAAP net income for the third quarter of 2021 was $207.2 million ($4.34 per share). The third quarter of 2020 included pretax charges of $13.8 million which included $9.9 million in acquired intangible asset amortization expense and $3.9 million in severance, facility consolidation and other costs. Excluding acquired intangible asset amortization expense, non-GAAP net income for the third quarter of 2020 was $101.5 million ($2.68 per share). Operating margin was 14.5% for the third quarter of 2021, compared with 16.4% for the third quarter of 2020. Excluding acquisition-related transaction and purchase accounting expenses, non-GAAP operating margin for the third quarter of 2021 was 21.5%, compared with 17.7% for the third quarter of 2020. The third quarter of 2021 reflected net discrete income tax benefits of $6.3 million compared with net discrete income tax benefits of $1.2 million for the third quarter of 2020.
"Our record sales in the third quarter included organic growth just under 12 percent and operating margin increased 380 basis points excluding acquisition-related costs," said Robert Mehrabian, Chairman, President and Chief Executive Officer. "Cash flow was a third quarter record, allowing repayment of $300.0 million of debt, while our leverage ratio declined to 3.3x from 3.7x at the end of the second quarter. Sales increased in every major business category but were especially strong in our commercial imaging and electronic test and measurement instrumentation businesses. Our government businesses continued to grow, and we are beginning to see a recovery in some of our longer-cycle commercial markets such as aerospace and energy. We are also very pleased with the integration of Teledyne FLIR, as well as its performance in the first full quarter as part of Teledyne. Finally, while Teledyne is not immune to supply chain challenges and the current operating environment, we have been successfully navigating and managing these issues."
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