Engineered Systems

The Engineered Systems segment’s fourth quarter 2022 net sales were $107.4 million, compared with $100.7 million, an increase of 6.7%. Operating income was $9.3 million for the fourth quarter of 2022, compared with $11.2 million, a decrease of 17.0%. The fourth quarter 2022 net sales reflected higher sales of $4.7 million for energy systems and $2.0 million for engineered products. Operating income in the fourth quarter of 2022 primarily reflected the impact of lower margins for electronic manufacturing services products.

Additional Financial Information

Cash Flow

Cash provided by operating activities was $237.7 million for the fourth quarter of 2022, compared with $295.6 million. The fourth quarter of 2022 reflected greater interest payments due to the timing of fixed rate bond interest and increased inventory purchases compared with the fourth quarter of 2021. Depreciation and amortization expense for the fourth quarter of 2022 was $81.8 million compared with $86.2 million. Non-cash inventory step-up expense related to FLIR was $47.8 million for the fourth quarter of 2021, and there was no comparable amount recorded in the fourth quarter of 2022.

Capital expenditures for the fourth quarter of 2022 were $34.1 million compared with $34.0 million. Teledyne received $5.2 million from the exercise of stock options in the fourth quarter of 2022 compared with $4.0 million.

As of January 1, 2023, net debt was $3,282.5 million which is calculated as total debt of $3,920.6 million, net of cash and cash equivalents of $638.1 million. As of January 2, 2022, net debt was $3,624.7 million and included total debt of $4,099.4 million, net of cash and cash equivalents of $474.7 million. As of January 1, 2023, approximately $1,003.7 million was available under the $1.15 billion credit facility, after reductions of $125.0 million in outstanding borrowings and $21.3 million in outstanding letters of credit.