The first quarter 2016 sales reflected higher sales of engineered products and services of $3.7 million, partially offset by lower sales of energy systems products of $1.9 million and lower turbine engine sales of $0.6 million. The higher sales of engineered products and services primarily resulted from increased sales of nuclear and environmental programs. Operating income in the first quarter of 2016 reflected the impact of higher sales and higher pension income of $0.6 million.

Additional Financial Information

Cash Flow
Cash provided by operating activities was $69.1 million for the first quarter of 2016, compared with $16.7 million. The higher cash provided by operating activities in the first quarter of 2016 reflected lower annual bonus and regular payroll payments and lower income tax payments, partially offset by lower net income. The first quarter of 2015 amount also included payments for legal matters. Free cash flow (cash provided by operating activities less capital expenditures) was $54.9 million for the first quarter of 2016, compared with $9.0 million and reflected higher cash provided by operating activities, partially offset by higher capital expenditures. At April 3, 2016, total debt, including capital lease obligations, was $719.5 million, which included $99.0 million outstanding under the $750.0 million credit facility. Cash totaled $83.2 million at April 3, 2016. The company received $2.6 million from the exercise of stock options in the first quarter of 2016, compared with $2.7 million. Capital expenditures for the first quarter of 2016 were $14.2 million, compared with $7.7 million. Depreciation and amortization expense for the first quarter of 2016 was $21.1 million, compared with $23.2 million. On January 26, 2016, Teledyne’s Board of Directors authorized a stock repurchase program for up to an additional 3,000,000 shares of Teledyne common stock. No cash was used for stock repurchases in 2016. In the second quarter of 2016, Teledyne completed the acquisitions of two test and measurement instrumentation companies and one imaging software company for initial aggregate cash consideration of $60.0 million. In addition, Teledyne announced today an agreement to sell assets of Teledyne’s printed circuit technology business for $9.3 million in cash. The completion of the transaction, which is subject to certain conditions and approvals, is anticipated to occur in the second quarter of 2016.