Slide 1: Teleflex Incorporated First Quarter 2018 Earnings Conference Call
Teleflex Incorporated First Quarter 2018 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 2698233 2
Slide 3: Introductions
Introductions Liam Kelly President and CEO Thomas Powell Executive Vice President and CFO Jake Elguicze Treasurer and Vice President of Investor Relations 3
Slide 4: Note on Forward-Looking Statements
Note on Forward-Looking Statements This presentation and our discussion contain forward-looking information and statements including, but not limited to, the expected timing for the submission of a biologics license application related to RePlas®; statements related to the restructuring plan we init
Slide 5: 1Q18 Highlights
1Q18 Highlights Revenue Growth Accelerates in 1Q18 As-reported revenue increased 20.4% versus 1Q17 Constant currency revenue increased 14.6% versus 1Q17 Rebound in distributor buying patterns occurred in 1Q18 Acceleration in organic constant currency revenue growth during 1Q18 as compared to 4Q17 le
Slide 6: 1Q Constant Currency Revenue Growth
1Q Constant Currency Revenue Growth Q1 2018 Constant Currency Revenue Growth Volume (excluding surgical product line exit and shipping day impact) 1.6% New product introductions 1.5% Price 0.6% Shipping day impact (1.3%) Surgical product line exit (0.6%) M&A NeoTract 8.3% Vascular Solutions (for per
Slide 7: Segment Revenue Review
Segment Revenue Review Total Constant Dollars Q1’18 Q1’17 Sales Currency Currency in Millions Revenue Revenue Growth Impact Growth Vascular NA $83.0 $79.0 5.1% 0.2% 4.9% Interventional NA $60.2 $39.9 50.7% 0.1% 50.6% Anesthesia NA $50.6 $48.2 4.9% 0.2% 4.7% Surgical NA $40.7 $46.0 (11.5%) 0.2% (11.7
Slide 8: GPO and IDN Review
GPO and IDN Review Group Purchasing Organization Update • 2 renewed agreements • 1 new agreements • 0 existing agreements lost IDN Update • 4 renewed agreements • 8 new agreements • 2 existing agreements lost 8
Slide 9: Clinical Data Announcements: UroLift Real World Retrospective Study
Clinical Data Announcements UroLift® Real World Retrospective Study KEY TAKEAWAYS Data from >800 patients in “real world” setting consistent with randomized, five- year L.I.F.T. study across all major measurements Retention Cohort: 96% of catheterized patients who entered study in retention no longe
Slide 10: Clinical Data Announcements: LMA Gastro Airway Study
Clinical Data Announcements LMA® Gastro Airway Study KEY TAKEAWAYS Study of 292 patients concluded that endoscope and LMA® Gastro™ Airway insertion success was 99%, indicating LMA® Gastro™ Airway efficacy Respiratory depression from sedative drugs and airway obstruction requiring intervention are kn
Slide 11: RePlas Freeze-Dried Plasma Regulatory Update
RePlas® Freeze-Dried Plasma Regulatory Update Dec 2017 Jan 2018 2019 FDA and DoD launch joint program to FDA confirms accelerated BLA BLA submission expedite medical products intended to save approval pathway; confirmatory expected early 2019 lives of US Military; including freeze-dried efficacy stu
Slide 12: 2018 Restructuring Plan
2018 Restructuring Plan On May 1, 2018, we initiated a restructuring plan involving the relocation of certain manufacturing operations to an existing lower-cost location, the outsourcing of certain distribution operations and related workforce reductions. These actions are expected to commence in th
Slide 13: First Quarter Financial Review
First Quarter Financial Review Revenue of $587.2 million • Up 20.4% vs. prior year period on an as-reported basis • Up 14.6% vs. prior year period on a constant currency basis Gross Margin • GAAP gross margin of 56.4%, up 400 bps vs. prior year period • Adjusted gross margin of 56.6%, up 190 bps vs.
Slide 14: 2018 Financial Outlook
2018 Financial Outlook 2018 Revenue Guidance • Raised as-reported revenue growth guidance from a range of between 14% and 15% to a range of between 15% and 16% • Reaffirmed constant currency revenue growth guidance range of between 12% and 13% • Reaffirmed organic constant currency revenue growth gu
Slide 15: Any Questions?
Any Questions? Veleflex:
Slide 16: Thank You
Thank You Veleflex:
Slide 17: Appendices
—=————s Appendices Veleflex:
Slide 18: 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 non-GAAP financial measures to the most comparable GAAP financial measure: • Constant currency revenue growth. This measure e
Slide 19: Appendix A – Constant Currency and Organic Constant Currency Revenue Growth
APPENDIX A – RECONCILIATION OF CONSTANT CURRENCY AND ORGANIC CONSTANT CURRENCY REVENUE GROWTH DOLLARS IN MILLIONS Three Months Ended % Increase / (Decrease) Total Currency Constant Currency April 1, 2018 April 2, 2017 Revenue Growth Impact Revenue Growth Vascular North America $ 83.0 $ 79.0 5.1% 0.2
Slide 20: Appendix B – Revenue Growth
APPENDIX B – RECONCILIATION OF REVENUE GROWTH DOLLARS IN MILLIONS Year-Over-Year Growth % Basis Points Three Months Ended April 2, 2017 Revenue As-Reported $ 487.9 Foreign currency $ 24.5 5.8% 580 Volume (excluding Surgical product line exit and the impact of shipping days) $ 8.3 1.6% 160 Shipping d
Slide 21: Appendix C – Adjusted Gross Profit and Margin
APPENDIX C – RECONCILIATION OF ADJUSTED GROSS PROFIT AND MARGIN DOLLARS IN THOUSANDS Three Months Ended April 1,2018 April 2, 2017 Gross profit as-reported $ 331,270 $ 255,560 Gross margin as-reported 56.4% 52.4% Restructuring, restructuring related and impairment items (A) 1,959 3,663 Acquisition,
Slide 22: Appendix D – Adjusted Operating Profit and Margin
APPENDIX D – RECONCILIATION OF ADJUSTED OPERATING PROFIT AND MARGIN DOLLARS IN THOUSANDS Three Months Ended April 1, 2018 April 2, 2017 Incom e from continuing operations before interest, loss on extinguishm ent of debt and taxes $ 86,843 $ 60,819 Incom e from continuing operations before interest,
Slide 23: Appendix E – Adjusted EPS, Quarter Ended April 1, 2018
APPENDIX E – RECONCILIATION OF ADJUSTED EPS FROM CONTINUING OPERATIONS QUARTER ENDED – APRIL 1, 2018 DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA Selling, general Restructuring Shares used in Cost of Research and Loss on and and Interest Incom e Incom e (loss) from Diluted earnings calculation of GAAP
Slide 24: Appendix F – Adjusted EPS, Quarter Ended April 2, 2017
APPENDIX F – RECONCILIATION OF ADJUSTED EPS FROM CONTINUING OPERATIONS QUARTER ENDED – APRIL 2, 2017 DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA Selling, general Restructuring Shares used in Cost of Research and Loss on and and Interest Incom e Incom e (loss) from Diluted earnings calculation of GAAP
Slide 25: Appendices E and F – Tickmarks
APPENDICES E AND F – TICKMARKS (A) Restructuring, restructuring related and impairment items - Restructuring programs involve discrete initiatives designed to, among other things, consolidate or relocate manufacturing, administrative and other facilities, outsource distribution operations, improve o
Slide 26: Appendix G – Adjusted Tax Rate
APPENDIX G – RECONCILIATION OF ADJUSTED TAX RATE DOLLARS IN THOUSANDS Three Months Ended April 1, 2018 Incom e from Taxes on continuing incom e from operations continuing before taxes operations Tax rate GAAP basis $61,173 $6,242 10.2% Restructuring, restructuring related and impairment charges 5,14
Slide 27: Appendix H – 2018 Constant Currency Revenue Growth Guidance
APPENDIX H – RECONCILIATION OF 2018 CONSTANT CURRENCY REVENUE GROWTH GUIDANCE Low High Forecasted GAAP Revenue Grow th 15.0% 16.0% Estimated Impact of Foreign Currency Exchange Rate Fluctuations -3.0% -3.0% Forecasted Constant Currency Revenue Grow th 12.0% 13.0% 27
Slide 28: Appendix I – 2018 Constant Currency and Organic Revenue Growth Guidance
APPENDIX I – RECONCILIATION OF 2018 CONSTANT CURRENCY AND ORGANIC CONSTANT CURRENCY REVENUE GROWTH GUIDANCE 2018 Guidance Low High GAAP Revenue Growth 15.0% 16.0% Impact of Foreign Currency Exchange Rate Fluctuations 3.0% 3.0% Constant Currency Revenue Growth 12.0% 13.0% M&A 7.0% 7.5% Organic Consta
Slide 29: Appendix J – 2018 Adjusted Gross Margin Guidance
APPENDIX J – RECONCILIATION OF 2018 ADJUSTED GROSS MARGIN GUIDANCE Low High Forecasted GAAP Gross Margin 56.85% 57.50% Restructuring, restructuring related and impairment items (A) 0.60% 0.55% Acquisition, integration and divestiture related items (B) 0.05% 0.00% Other items (C) 0.00% -0.05% Forecas
Slide 30: Appendix K – 2018 Adjusted Operating Margin Guidance
APPENDIX K – RECONCILIATION OF 2018 ADJUSTED OPERATING MARGIN GUIDANCE Low High Forecasted GAAP Operating Margin 16.40% 17.00% Estimated restructuring, restructuring related and impairment items (A) 3.15% 3.10% Estimated acquisition, integration and divestiture related items (B) 0.60% 0.55% Estimate
Slide 31: Appendix L – 2018 Adjusted Earnings Per Share Guidance
APPENDIX L – RECONCILIATION OF 2018 ADJUSTED EARNINGS PER SHARE GUIDANCE Low High Forecasted GAAP diluted earnings per share $5.45 $5.55 Restructuring, restructuring related and impairment items, net of tax (A) $1.51 $1.55 Acquisition, integration and divestiture items, net of tax (B) $0.26 $0.28 Ot
Slide 32: Appendix M – 2018 Financial Outlook Assumptions
APPENDIX M – 2018 FINANCIAL OUTLOOK ASSUMPTIONS Euro to U.S. Dollar exchange rate assumed to be approximately 1.22 for full year 2018 Adjusted weighted average shares expected to be approximately 46.9 million for full year 2018 2018 Calendar of shipping days: • Q1’18 vs. Q1’17: 1 less day • Q2’18 vs
Slide 33: Appendix N – Teleflex Restructuring Plan Summary
APPENDIX N – TELEFLEX RESTRUCTURING PLAN SUMMARY In addition to the 2018 Manufacturing Footprint Realignment Plan, we have ongoing restructuring programs related to (i) the integration of Vascular Solutions into Teleflex; (ii) the centralization of certain administrative functions in our EMEA segmen