Slide 1: Teleflex Incorporated Second Quarter 2017 Earnings Conference Call
Teleflex Incorporated Second Quarter 2017 Earnings Conference Call 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 855-859-2056 or for international calls, 404- 537-3406, pass code number 56173289 2
Slide 3: Introductions
Introductions Benson Smith Chairman and CEO Liam Kelly President and COO Thomas Powell Executive Vice President and CFO Jake Elguicze Treasurer and Vice President of Investor Relations 3
Slide 4: Note on Forward-Looking Statements and Non-GAAP Financial Measures
Note on Forward-Looking Statements This presentation and our discussion contain forward-looking information and statements including, but not limited to, forecasted 2017 GAAP and constant currency revenue growth, GAAP and adjusted gross and operating margins and GAAP and adjusted earnings per share
Slide 5: Executive Summary
Executive Summary Second quarter 2017 revenue of $528.6 million • Up 11.6% vs. prior year period on an as-reported basis • Up 12.9% vs. prior year period on a constant currency basis Second quarter 2017 Earnings Per Share • GAAP EPS of $1.67, up 33.6% vs. prior year period • Adjusted EPS of $2.04, u
Slide 6: Second Quarter Highlights
Second Quarter Highlights Q2 2017 Constant Currency Revenue Growth Volume (excluding the impact of shipping days) 1.4% New product introductions 1.5% Price 0.6% M&A excluding Vascular Solutions 1.0% Shipping day impact (1.2%) Vascular Solutions 9.6% Constant currency revenue growth 12.9% June quarte
Slide 7: June Year-To-Date Highlights
June Year-To-Date Highlights June YTD 2017 Constant Currency Revenue Growth Volume (excluding the impact of shipping days) 1.4% New product introductions 1.7% Price 0.7% M&A excluding Vascular Solutions 0.8% Shipping day impact 2.3% Vascular Solutions 7.5% Constant currency revenue growth 14.4% June
Slide 8: Segment Revenue Review
Segment Revenue Review Q2’17 Q2’16 12% 19% 18% 19% 9% 8% 9% 9% 13% 9% 12% 10% 25% 28% Vascular North America Surgical North America Vascular North America Surgical North America Anesthesia North America EMEA Anesthesia North America EMEA Asia OEM Asia OEM All Other All Other Constant Currency Revenu
Slide 9: Group Purchasing Organization and IDN Review
Group Purchasing Organization and IDN Review Track record of expansion of contractual agreements continues in Q2’17 Group Purchasing Organization Update • 4 renewed agreements • 1 new agreement • 1 existing agreement not renewed IDN Update • 12 renewed agreements • 5 new agreements • 6 existing agre
Slide 10: Product Introductions and Regulatory Approvals: Arrow Seldinger Arterial Catheterization Device
Product Introductions and Regulatory Approvals Arrow® Seldinger Arterial Catheterization Device PRODUCT DESCRIPTION Recently received FDA 510(k) clearance for the Arrow® Seldinger Arterial Catheterization Device. The Arrow® Seldinger Arterial Catheterization Device is indicated for short-term use an
Slide 11: Product Introductions and Regulatory Approvals: RePlas Freeze-Dried Plasma Phase I Study
Product Introductions and Regulatory Approvals RePlas™ Freeze-Dried Plasma Phase I Clinical Study PRODUCT DESCRIPTION On May 15, 2017, Teleflex announced the commencement of a Phase I clinical study (FDP-1) of its RePlas™ Freeze-Dried Plasma. Replas™ Freeze-Dried Plasma is lyophilized fresh frozen p
Slide 12: Second Quarter Financial Review
Second Quarter Financial Review Revenue of $528.6 million • Up 11.6% vs. prior year period on an as-reported basis • Up 12.9% vs. prior year period on a constant currency basis Gross Margin • GAAP gross margin of 54.9%, up 80 bps vs. prior year period • Adjusted gross margin of 55.9%, up 90 bps vs.
Slide 13: 2017 Financial Outlook Assumptions
2017 Financial Outlook Assumptions 2017 Revenue Guidance • Raised as-reported revenue growth range from 10.0% - 11.5% to 11.5% - 13.0% • Reaffirmed constant currency revenue growth range of 12.5% - 14.0% 2017 Gross Margin Guidance • Raised GAAP gross margin range from 54.10% - 54.65% to 54.25% - 54.
Slide 14: Any Questions?
Any Questions? Veleflex:
Slide 15: Thank You
Thank You Veleflex:
Slide 16: Appendices
—=———— Appendices Veleflex:
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures The following appendices include, among other things, tables reconciling the following non-GAAP financial measures to the most comparable GAAP financial measure: • Constant currency revenue growth. This measure excludes the impact of translating the results of internation
Slide 18: Appendix A – Reconciliation of Constant Currency Revenue Growth
APPENDIX A – RECONCILIATION OF CONSTANT CURRENCY REVENUE GROWTH DOLLARS IN MILLIONS Three Months Ended % Increase / (Decrease) July 2, 2017 June 26, 2016 Constant Currency Currency Total Vascular North America $ 93.5 $ 88.2 6.3% (0.2%) 6.1% Anesthesia North America 49.1 49.2 (0.1%) (0.1%) (0.2%) Sur
Slide 19: Appendix B – Revenue Growth, Three Months
APPENDIX B – RECONCILIATION OF REVENUE GROWTH DOLLARS IN MILLIONS Year-over-year grow th % Basis Points Three Months Ended June 26, 2016 Revenue As-Reported $473.6 Foreign Currency (5.5) -1.3% (130) Volume (excluding the impact of shipping days) 6.5 1.4% 140 Shipping day impact (5.7) -1.2% (120) Acq
Slide 20: Appendix C – Revenue Growth, Six Months
APPENDIX C – RECONCILIATION OF REVENUE GROWTH DOLLARS IN MILLIONS Year-over-year grow th % Basis Points Six Months Ended June 26, 2016 Revenue As-Reported $898.4 Foreign Currency (9.8) -1.3% (130) Volume (excluding the impact of shipping days) 12.7 1.4% 140 Shipping day impact 21.0 2.3% 230 Acquisit
Slide 21: Appendix D – Adjusted Gross Profit and Margin
APPENDIX D – RECONCILIATION OF ADJUSTED GROSS PROFIT AND MARGIN DOLLARS IN THOUSANDS Three Months Ended July 2, 2017 June 26, 2016 Teleflex gross profit as-reported $ 290,284 $ 256,399 Teleflex gross margin as-reported 54.9% 54.1% Losses and other charges, net (A) 5,013 3,975 Adjusted Teleflex gross
Slide 22: Appendix E – Reconciliation of Adjusted Operating Profit and Margin
APPENDIX E – RECONCILIATION OF ADJUSTED OPERATING PROFIT AND MARGIN DOLLARS IN THOUSANDS Three Months Ended July 2, 2017 June 26, 2016 Teleflex incom e from continuing operations before interest and taxes $ 110,202 $ 98,441 Teleflex incom e from continuing operations before interest and taxes m argi
Slide 23: Appendix F – Reconciliation of Adjusted EPS, Quarter Ended July 2, 2017
APPENDIX F – RECONCILIATION OF ADJUSTED EPS FROM CONTINUING OPERATIONS QUARTER ENDED – JULY 2, 2017 DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA Selling, general Restructuring Net income (loss) Diluted earnings Shares used in Cost of Research and (Gain) loss on Loss on and and other Interest Income at
Slide 24: Appendix G – Reconciliation of Adjusted EPS, Quarter Ended June 26, 2016
APPENDIX G – RECONCILIATION OF ADJUSTED EPS FROM CONTINUING OPERATIONS QUARTER ENDED – JUNE 26, 2016 DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA Selling, general Restructuring (Gain) loss Net incom e (loss) Diluted earnings Shares used in Cost of Research and Interest Loss on and and other on sale of
Slide 25: Appendix H – Reconciliation of Adjusted Tax Rate
APPENDIX H – RECONCILIATION OF ADJUSTED TAX RATE DOLLARS IN THOUSANDS Three Months Ended July 2, 2017 Incom e from Taxes on continuing incom e from operations continuing before taxes operations Tax rate GAAP basis $90,458 $12,095 13.4% Restructuring and impairment charges 870 533 Losses and other ch
Slide 26: 2017 Constant Currency Revenue Growth Guidance
APPENDIX I – RECONCILIATION OF 2017 CONSTANT CURRENCY REVENUE GROWTH GUIDANCE Low High Forecasted GAAP Revenue Grow th 11.5% 13.0% Estimated Impact of Foreign Currency Exchange Rate Fluctuations 1.0% 1.0% Forecasted Constant Currency Revenue Grow th 12.5% 14.0% 26
Slide 27: 2017 Adjusted Gross Margin Guidance
APPENDIX J – RECONCILIATION OF 2017 ADJUSTED GROSS MARGIN GUIDANCE Low High Forecasted GAAP Gross Margin 54.25% 54.80% Estimated losses and other charges, net 1.15% 1.20% Forecasted Adjusted Gross Margin 55.40% 56.00% Note: In 2017, estimated losses and other charges, net relate primarily to facilit
Slide 28: 2017 Adjusted Operating Margin Guidance
APPENDIX K – RECONCILIATION OF 2017 ADJUSTED OPERATING MARGIN GUIDANCE Low High Forecasted GAAP Operating Margin 18.80% 19.40% Estimated losses and other charges, net 2.68% 2.73% Estimated intangible amortization expense 4.12% 4.17% Forecasted Adjusted Operating Margin 25.60% 26.30% Note: In 2017, e
Slide 29: 2017 Adjusted Earnings Per Share Guidance
APPENDIX L – RECONCILIATION OF 2017 ADJUSTED EARNINGS PER SHARE GUIDANCE Low High Forecasted diluted earnings per share attributable to common shareholders $5.91 $5.98 Restructuring, impairment charges and special items, net of tax $0.96 $1.00 Intangible amortization expense, net of tax $1.32 $1.35