Slide 1: Fourth Quarter & Year-End 2009 Conference Call
TELEFLEX INCORPORATED FOURTH QUARTER & YEAR-END 2009 CONFERENCE CALL Exhibit 99.1
Slide 2: Forward-Looking Statements/Additional Notes
Forward-Looking Statements/Additional Notes This presentation and our discussion contain forward-looking information and statements including, but not limited to, expected core revenue growth by our Aerospace Segment in 2010; expected continued expansion of operating margins within our Aerospace Seg
Slide 3: Conference Call Logistics
Conference Call Logistics The release, accompanying slides, and replay webcast 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 53763506
Slide 4: Jeff Black, Chairman and Chief Executive Officer
JEFF BLACK Chairman and Chief Executive Officer
Slide 5: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights Medical segment core revenue growth of 2% led by increases in vascular access, respiratory, and anesthesia Core revenue declines in Aerospace & Commercial segments slow to 7% and 4%, respectively Gross Margin excluding special charges of 42.8%, up 170 bps Segment
Slide 6: Full Year Financial Highlights
Full Year Financial Highlights Consolidated core revenue decline of 6% due to Aerospace and Commercial Segments Gross Margin excluding special charges of 43.2%, up 140 bps Segment operating margins before special charges of 15.7%, up 90 bps Adjusted Segment Operating Margins 2009 2008 Medical 21.1%
Slide 7: Medical Segment
Medical Segment Critical Care - Q4 Core Revenue Growth of 4% Vascular core growth in Q4 due to strong CVC & PICC demand Anesthesia core growth in Q4 driven by regional anesthesia product offerings Respiratory core growth in Q4 led by EMEA & Asian / Latin American markets Urology sales flat during th
Slide 8: Medical Segment Outlook - Research & Development Trend
Medical Segment Outlook - Research & Development Trend Dollars in Millions 2007 Actual 2008 Actual 2009 Actual R&D - $ 21.9563 42.485778 52.26466 R&D - % of Revenue 0.021 0.028 0.036 Note: excludes $1.5M, $21.5M and $3.3M of FDA remediation expense in '07, '08, '09 respectively
Slide 9: FDA Update
FDA Update At the end of 2009, the FDA began its re-inspections of the former-Arrow facilities covered under the corporate warning letter These inspections have been substantially completed, and the FDA has issued certain written observations as a result of those re-inspections The Company is curren
Slide 10: Aerospace Segment - Cargo Handling
Cargo Handling OEM wide-body sales up in Q4 due to increased shipments of cargo loading systems to Boeing & Airbus offset by significant decline in aftermarket conversions Narrow-body cargo loading system unit volume up 5% from Q4'08 High margin spares sales up approximately $3M from Q4'08 Expect co
Slide 11: Commercial Segment
Commercial Segment Marine Core revenues up 17% versus prior year quarter Aftermarket revenue up 7% vs. Q4'08 OEM revenue down versus prior year quarter; up sequentially Gauge divestiture impacts revenue by approx. $2M Cost containment initiatives, mix of marine aftermarket vs. OEM sales, and higher
Slide 12: Randy Meier, Executive Vice President and Chief Financial Officer
RANDY MEIER Executive Vice President and Chief Financial Officer
Slide 13: Three Month Summary from Continuing Operations
Three Month Summary from Continuing Operations
Slide 14: Three Month Summary from Continuing Operations
Three Month Summary from Continuing Operations Note: Q4'09 losses and other charges include integration costs of $0.4m, net of tax Q4'09 tax adjustments represent a benefit from the net reduction in income tax reserves and discrete tax benefits related primarily to the resolution of various uncertai
Slide 15: Year-to-Date Summary from Continuing Operations
Year-to-Date Summary from Continuing Operations
Slide 16: Year-to-Date Summary from Continuing Operations
Year-to-Date Summary from Continuing Operations Note: Q4'09 year-to-date restructuring & impairment charges, include goodwill & intangible impairments of approx $8.2m, net of tax Q4'09 year-to-date losses and other charges includes loss on sale of Gauge business of $1.6m, net of tax & integration co
Slide 17: Year-to-Date Adjusted Cash Flow From Continuing Operations
Year-to-Date Adjusted Cash Flow From Continuing Operations ($ Millions) Capital Expenditures - $35 million Capital Expenditures - $30 million Note: 2008 & 2009 Cash Flow from Operations & Free Cash Flow exclude tax payments of $90.2M & $97.5M, respectively related to gain on sale of businesses
Slide 18: Capital Structure
Capital Structure ($ Millions) 10/1/2007 12/31/2007 12/31/2008 12/31/2009 Net Debt 2117.6 1482.9 1439.1 1008 Net Debt to Total Capital 0.621 0.527 0.536 0.389 Weighted Average Interest Rate 0.0685 0.0686 0.0574 0.059 6.9% 6.9% 5.7% 5.9%
Slide 19: 2010 Outlook
2010 Outlook Low High Earnings per share from continuing operations available to common shareholders on a GAAP basis $4.05 $4.20 Add-back special items $0.05 $0.05 Earnings per share from continuing operations before special items $4.10 $4.25 Amortization expense $1.12 $1.12 Earnings per share from
Slide 20: Jeff Black, Chairman and Chief Executive Officer
JEFF BLACK Chairman and Chief Executive Officer
Slide 21: Summary
Summary 2009 Results EPS excluding special items growth of 16% Adjusted cash flow from operations growth of 47% Continue to transform portfolio to be pure-play Medical device company 2010 Expectations Medical core revenue growth of 3% to 4% Continued expansion of operating margins EPS excluding spec
Slide 22: Question & Answer
QUESTION & ANSWER Teleflex:
Slide 23: Appendices
APPENDICES Teleflex:
Slide 24: Appendix A - Reconciliation of Medical Operating Profit and Margins
Appendix A - Reconciliation of Medical Operating Profit and Margins
Slide 25: Appendix B - Reconciliation of Teleflex Gross Profit and Margins
Appendix B - Reconciliation of Teleflex Gross Profit and Margins
Slide 26: Appendix C - Reconciliation of Teleflex Operating Expenses
Appendix C - Reconciliation of Teleflex Operating Expenses
Slide 27: Appendix D - Special Charge Income Statement Classification Summary
Appendix D - Special Charge Income Statement Classification Summary
Slide 28: Appendix E - Reconciliation of Teleflex Cash Flow from Continuing Operations
Appendix E - Reconciliation of Teleflex Cash Flow from Continuing Operations
Slide 29: Appendix F - Net Debt to Total Capital Reconciliation
Appendix F - Net Debt to Total Capital Reconciliation ($ Millions) * * = no quarterly installments due under credit agreement until September 2011