Slide 1: Teleflex Incorporated Q1 2022 Earnings Conference Call
Teleflex Incorporated Q1 2022 Earnings Conference Call
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) An audio replay of the call will be available beginning at 11:00 am Eastern Time on April 28, 2022 either on the Teleflex website or by telephone. The call can
Slide 3: Today's Speakers
Today’s Speakers Liam Kelly Chairman, President and CEO Thomas Powell Executive VP and CFO Lawrence Keusch VP, Investor Relations and Strategy Development 3
Slide 4: Note on Forward-Looking Statements
Note on Forward-Looking Statements This presentation contains forward-looking statements, including, but not limited to, our expectation that we remain on track to transition the majority of our U.S. customers to the UroLift® 2 System by the end of 2022; our forecasted 2022 GAAP and constant currenc
Slide 5: Executive Overview
Executive Overview Liam Kelly - Chairman, President and CEO 5
Slide 6: Q1'22 Highlights
Q1'22 Highlights ◦ Q1'22 constant currency revenue grew 3.2% year-over-year Q1 Performance Summary ◦ Despite significant inflation headwinds, Q1'22 adjusted earnings per share increased year-over-year 2022 Financial ◦ Reiterating 2022 GAAP and constant currency revenue growth and adjusted Guidance d
Slide 7: Q1'22 Segment Revenue Review
Q1'22 Segment Revenue Review Three Months Ended % Increase/ Decrease Dollars in Millions Reported Currency Impact Constant Currency March 27, 2022 March 28, 2021 Revenue Growth Growth Americas $378.0 $375.5 0.7% (0.1)% 0.8% EMEA $136.9 $141.2 (3.1)% (6.5)% 3.4% Asia $69.2 $63.7 8.6% (3.9)% 12.5% OEM
Slide 8: Q1'22 Global Product Category Revenue Review
Q1'22 Global Product Category Revenue Review Three Months Ended % Increase/ Decrease Dollars in Millions Reported Currency Impact Constant Currency March 27, 2022 March 28, 2021 Revenue Growth Growth Vascular Access $166.1 $164.0 1.3% (1.9)% 3.2% Interventional $96.9 $96.2 0.7% (1.6)% 2.3% Anesthesi
Slide 9: Clinical and Commercial Updates
Clinical and Commercial Updates Interventional Urology: National DTC Campaign Update • 2022 DTC campaign metrics tracking in-line or above internal targets Interventional Urology: UroLift® 2 System and UroLift ATC® Progress • Remain on track for the majority of U.S. accounts to be transitioned by th
Slide 10: Clinical and Commercial Updates
Clinical and Commercial Updates Arrow® ErgoPack® Complete CVC System Vascular: Entered Into New GPO Agreement • Re-negotiated single-source GPO contract for Teleflex’s leading portfolio of central venous catheters and added the recently launched ErgoPack® Complete CVC System Anesthesia: QuikClot Con
Slide 11: Financial Overview
Financial Overview Thomas Powell - Executive VP and CFO 11
Slide 12: Q1'22 Financial Review
Q1'22 Financial Review ◦ Revenue increased 1.2% year-over-year on a GAAP basis Global revenue growth ◦ Revenue increased 3.2% year-over-year on a constant currency basis ◦ GAAP gross margin of 54.0%, down 30 bps year-over-year Gross margin ◦ Adjusted gross margin of 58.4%, down 100 bps year-over-yea
Slide 13: 2022 Financial Guidance Summary
2022 Financial Guidance Summary 2022 Guidance Low High GAAP Revenue Growth 2.3% 3.8% Impact of Foreign Exchange Rate Fluctuations (1.7)% (1.7)% Constant Currency Revenue Growth (1) 4.0% 5.5% Adjusted Gross Margin 59.75% 60.25% Adjusted Operating Margin 27.75% 28.25% Adjusted EPS $13.70 $14.30 Adjust
Slide 14: Key Takeaways
Key Takeaways Diversified product Continue to execute on 2022 financial guidance portfolio enabled our strategy to drive contemplates gross Teleflex to deliver durable growth with margin expansion constant currency investment in organic despite meaningful growth even with greater growth opportunitie
Slide 15: Thank You
15 Thank You 1515 Teleflex, the Teleflex logo, are trademarks or registered trademarks of Teleflex Incorporated or its affiliates, in the U.S. and/or other countries. © 2022 Teleflex Incorporated. All rights reserved. MCI-2021-0563.
Slide 16: Appendices
Appendices Veleflex:
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures The presentation to which these appendices are attached and the following appendices include, among other things, tables reconciling the following applicable non-GAAP financial measures to the most comparable GAAP financial measure: ◦ Constant currency revenue growth. Thi
Slide 18: Non-GAAP Adjustments
Non-GAAP Adjustments The following is an explanation of certain of the adjustments that are applied with respect to one or more of the non-GAAP financial measures that appear in the presentation to which these appendices are attached: Restructuring, restructuring related and impairment items - Restr
Slide 19: Non-GAAP Adjustments
Non-GAAP Adjustments Intangible amortization expense - Certain intangible assets, including customer relationships, intellectual property, distribution rights, trade names and non-competition agreements, initially are recorded at historical cost and then amortized over their respective estimated use
Slide 20: Appendix A1 – Reconciliation of Consolidated Statement of Income Items
Appendix A1 – Reconciliation of Consolidated Statement of Income Items (Dollars in millions, except per share data) Three Months Ended March 27, 2022 Selling, general Diluted Research and Effective earnings per Gross and Operating Income before Income tax development income tax share from margin adm
Slide 21: Appendix A2 – Reconciliation of Consolidated Statement of Income Items
Appendix A2 – Reconciliation of Consolidated Statement of Income Items (Dollars in millions, except per share data) Three Months Ended March 28, 2021 Selling, general Diluted Research and Effective earnings per Gross and Operating Income before Income tax development income tax share from margin adm
Slide 22: Appendix A tickmarks
Appendix A tickmarks (A) Restructuring, restructuring related and impairment items – For the three months ended March 27, 2022, pre-tax restructuring charges were $0.9 million, restructuring related charges were $6.4 million, and impairment charges were $1.5 million. For the three months ended March
Slide 23: Appendix B - 2022 Adj. Gross and Operating Margin Guidance Reconciliation
Appendix B - 2022 Adj. Gross and Operating Margin Guidance Reconciliation Low High Forecasted GAAP Gross Margin 55.85% 56.35% Estimated restructuring, restructuring related and impairment items 0.90% 0.90% Estimated acquisition, integration, and divestiture related items —% —% Estimated intangible a
Slide 24: Appendix C – Reconciliation of 2022 Adjusted Earnings Per Share Guidance
Appendix C – Reconciliation of 2022 Adjusted Earnings Per Share Guidance Low High Forecasted GAAP Diluted Earnings Per Share from continuing operations $8.85 $9.45 Estimated restructuring, restructuring related and impairment items, net of tax $0.76 $0.76 Estimated acquisition, integration, and dive