Teledyne Technologies Reports Fourth Quarter Results

Teledyne Technologies Incorporated TDY

• Record quarterly sales of $1,418.2 million, an increase of 3.1% compared with last year

• Record quarterly GAAP diluted earnings per share of $4.74 and non-GAAP diluted earnings per share of $4.94

• Record quarterly GAAP operating margin of 19.3%

• Fourth quarter non-GAAP operating margin of 22.4%

• Record annual sales of $5,458.6 million, an increase of 18.3% compared with last year

• Record full year GAAP diluted earnings per share of $16.53 and non-GAAP diluted earnings per share of $18.19

• Completed the acquisition of ETM; quarter-end Consolidated Leverage Ratio declined to 2.4x

• Issuing full year 2023 GAAP diluted earnings outlook of $15.80 to $16.10 per share and full year 2023 non-GAAP earnings outlook of $19.00 to $19.20 per share

• Acquired ChartWorld International after year-end on January 3, 2023

Teledyne today reported fourth quarter 2022 net sales of $1,418.2 million, compared with net sales of $1,375.7 million for the fourth quarter of 2021, an increase of 3.1%. Net income attributable to Teledyne was $226.4 million ($4.74 diluted earnings per share) for the fourth quarter of 2022, compared with $161.8 million ($3.39 diluted earnings per share) for the fourth quarter of 2021, an increase of 39.9%. The fourth quarter of 2022 included $47.9 million of pretax acquired intangible asset amortization expense, $4.0 million of pretax income related to the favorable resolution of certain FLIR integration-related costs and $24.1 million of acquisition related discrete income tax benefits. Excluding these charges, non-GAAP net income attributable to Teledyne for the fourth quarter of 2022 was $236.1 million ($4.94 diluted earnings per share). In the fourth quarter of 2021, Teledyne incurred pretax expenses of $100.0 million, which included $51.4 million in acquired intangible asset amortization expense, $47.8 million in acquired inventory step-up expense and $0.8 million of transaction and integration-related costs. In the fourth quarter of 2021, Teledyne also incurred $21.4 million of acquisition related discrete income tax benefits. Excluding these charges, non-GAAP net income attributable to Teledyne for the fourth quarter of 2021 was $217.4 million ($4.56 diluted earnings per share). Operating margin was 19.3% for the fourth quarter of 2022, compared with 14.2% for the fourth quarter of 2021. Excluding acquisition-related transaction and purchase accounting expenses, non-GAAP operating margin for the fourth quarter of 2022 was 22.4%, compared with 21.5% for the fourth quarter of 2021.