Slide 1: Teleflex Incorporated Third Quarter 2014 Earnings Conference Call
1 TELEFLEX INCORPORATED THIRD QUARTER 2014 EARNINGS CONFERENCE CALL 1 Exhibit 99.1
Slide 2: Conference Call Logistics
Conference Call Logistics The release, accompanying slides, and replay webcast are available online at www.teleflex.com (click on “Investors”) Telephone replay available by dialing 888-286-8010 or for international calls, 617- 801-6888, pass code number 14097601 2
Slide 3: Introductions
Introductions Benson Smith Chairman, President and CEO Thomas Powell Executive Vice President and CFO Jake Elguicze Treasurer and Vice President of Investor Relations 3
Slide 4: Forward-Looking Statements/Non-GAAP Financial Measures
Forward-Looking Statements/Non-GAAP Financial Measures This presentation and our discussion contain forward-looking information and statements including, but not limited to, estimates with respect to the amount and timing of pre-tax charges, capital expenditures and annualized savings with respect t
Slide 5: Third Quarter 2014 Highlights
5 THIRD QUARTER 2014 HIGHLIGHTS 5
Slide 6: Third Quarter Highlights
Third Quarter Highlights Third quarter constant currency revenue growth and adjusted earnings per share achievement exceeded our expectations Revenue of $457.2 million, up 10.5% vs. prior year period on an as- reported basis; up 10.2% vs. prior year period on a constant currency basis Adjusted EPS o
Slide 7: Third Quarter Highlights
Third Quarter Highlights 190 bps improvement in sales of existing products in Q3’14 compared to Q3’13 resulting from modest improvement in end-market utilization Improvement in the average selling prices of products contributes 111 bps of top-line growth in Q3’14 compared to Q3’13 New product introd
Slide 8: Third Quarter Highlights: Vidacare
Third Quarter Highlights Vidacare contributes 5.3% to Teleflex’s constant currency revenue growth • Q3’14 revenue of $22.0 million, ahead of initial internal expectations • Q3’14 revenue up ~ 24% versus Q3’13 on an as-reported basis • Integration activities on schedule • Continue to invest in additi
Slide 9: ARROW EZ-IO Vascular Access System
EZ-IO® provides the medical professional immediate vascular access to the central circulation within seconds, delivering medications, intravenous fluids and blood products to adult and pediatric patients alike. PRODUCT DESCRIPTION PRODUCT UPDATE 9 510(k) clearance received for restated Indications f
Slide 10: Semprus Sustain Technology
Semprus Sustain™ Technology Third Quarter Highlights 10 Awarded a $2.1 million research grant from the U.S. Army’s Telemedicine and Advanced Technology Research Center to support research and development of a surface- modified tibial intramedullary nail that combines the Sustain technology with anti
Slide 11: Third Quarter Highlights: Mayo Healthcare Pty Ltd.
Mayo Healthcare Pty Ltd. • Contributed 1.6% to Teleflex’s constant currency revenue growth in Q3; mixture of additional volume and improved pricing • Integration activities on schedule Third Quarter Highlights 11
Slide 12: Third Quarter 2014 Financial Review
12 THIRD QUARTER 2014 FINANCIAL REVIEW 12
Slide 13: Financial Results
Financial Results Revenue of $457.2 million • Up 10.5% vs. prior year period on an as-reported basis • Up 10.2% vs. prior year period on a constant currency basis Adjusted gross margin of 52.1%, up 234 bps vs. prior year period Adjusted operating margin of 21.7%, up 133 bps vs. prior year period Adj
Slide 14: Segment Revenue Review
Segment Revenue Review Q3’14 Vascular N.A: $63.8 million, up 16.1% Anesthesia/Respiratory N.A: $54.7 million, up 1.8% Surgical N.A: $36.1 million, up 6.2% EMEA: $141.2 million, up 5.6% Asia: $62.0 million, up 11.8% OEM: $39.2 million, up 15.9% All Other: $60.2 million, up 22.3% Note: Increases and d
Slide 15: Restructuring plan estimates
These estimates reflect a shift in the timing of certain costs from 2014 to 2015 as compared to the original plan, which did not impact the overall plan estimates Aggregate pre-tax charges of approximately $42 to $53 million1 , of which approximately $32 to $40 million will result in future cash out
Slide 16: 2014 Financial Outlook
2014 FINANCIAL OUTLOOK Teleflex:
Slide 17: 2014 Financial Outlook
2014 Financial Outlook 17 2014 guidance ranges reaffirmed: • Adjusted gross margin of 52.0% to 52.5% • Adjusted operating margin excluding intangible amortization expense of 20% to 21% 2014 guidance ranges increased: • Constant currency revenue growth increased from 7% to 9% to 7.5% to 9% • Adjusted
Slide 18: Question & Answer
QUESTION & ANSWER Teleflex:
Slide 19: Appendices
APPENDICES Teleflex:
Slide 20: Appendix A – Reconciliation of Segment Constant Currency Revenue Growth
Appendix A – Reconciliation of Segment Constant Currency Revenue Growth Dollars in Millions 20 September 28, 2014 September 29, 2013 Constant Currency Currency Total Vascular North America 63.8$ 55.1$ 16.1% (0.2%) 15.9% Anesthesia/Respiratory North America 54.7 53.8 1.8% (0.2%) 1.6% Surgical North A
Slide 21: Appendix B – Reconciliation of Revenue Growth
Appendix B – Reconciliation of Revenue Growth Dollars in Millions 21 Year-over- year growth Three Months Ended September 29, 2013 Revenue As-Reported $413.8 Foreign Currency 1.1 0.27% Vidacare 22.0 5.33% Mayo 6.5 1.56% All other 13.8 3.32% Three Months Ended September 28, 2014 Revenue As-Reported $4
Slide 22: Appendix C – Reconciliation of Teleflex Gross Profit and Margin
22 Appendix C – Reconciliation of Teleflex Gross Profit and Margin September 28, 2014 September 29, 2013 Teleflex gross profit as-reported 236,166$ 203,992$ Teleflex gross margin as-reported 51.7% 49.3% Losses, other charges and charge reversals (A) 1,897 1,797 Adjusted Teleflex gross profit 238,063
Slide 23: Appendix D – Reconciliation of Teleflex Operating Profit and Margin
23 Appendix D – Reconciliation of Teleflex Operating Profit and Margin September 28, 2014 September 29, 2013 Teleflex income from continuing operations before interest and taxes 81,935$ 66,042$ Teleflex income from continuing operations before interest and taxes margin 17.9% 16.0% Restructuring and
Slide 24: Appendix E – EPS Reconciliation, Quarter Ended September 28, 2014
Appendix E – EPS Reconciliation from Continuing Operations Quarter Ended – September 28, 2014 Dollars in millions, except per share data 24 Cost of goods sold Selling, general and administrative expenses Research and development expenses Restructuring and other impairment charges Interest expense, n
Slide 25: Appendix F – EPS Reconciliation, Quarter Ended September 29, 2013
Appendix F – EPS Reconciliation from Continuing Operations Quarter Ended – September 29, 2013 Dollars in millions, except per share data 25 Cost of goods sold Selling, general and administrative expenses Research and Development expenses Restructuring and other impairment charges Interest expense, n
Slide 26: Appendix G – Reconciliation of Teleflex Tax Rate
26 Appendix G – Reconciliation of Teleflex Tax Rate Dollars in Thousands Three Months Ended September 28, 2014 Income from continuing operations before taxes Taxes on income from continuing operations Tax rate GAAP basis $64,912 $9,684 14.9% Restructuring and impairment charges 1,108 140 Losses, oth
Slide 27: Appendix H – Reconciliation of 2014 Constant Currency Revenue Growth Guidance
Appendix H – Reconciliation of 2014 Constant Currency Revenue Growth Guidance 27 Low High Forecasted GAAP Revenue Growth 7.5% 9.0% Estimated impact of foreign currency fluctuations Forecasted Constant Currency Revenue Growth 7.5% 9.0%
Slide 28: Appendix I – Reconciliation of 2014 Gross Margin Guidance
Appendix I – Reconciliation of 2014 Gross Margin Guidance 28 Note: In 2014, losses, other charges and charge reversals relate to expenses associated with the Restructuring Plan approved by the Board of Directors on April 28, 2014. Low High GAAP Gross Margin 51.62% 52.06% Losses, other charges and ch
Slide 29: Appendix J – Reconciliation of 2014 Operating Margin Guidance
Appendix J – Reconciliation of 2014 Operating Margin Guidance 29 Note: In 2014, losses, other charges and charge reversals include expenses associated with the Restructuring Plan approved by the Board of Directors on April 28, 2014, acquisition costs and the reversal of contingent consideration liab
Slide 30: Appendix K – Reconciliation of 2014 Adjusted Earnings per Share Guidance
Appendix K – Reconciliation of 2014 Adjusted Earnings per Share Guidance 30 Low High Forecasted diluted earnings per share attributable to common shareholders $3.83 $3.88 Restructuring, impairment charges, and special items, net of tax $0.65 $0.70 Intangible amortization expense, net of tax $0.95 $0