14 slides from West Pharmaceutical Services's earnings presentation, Jul 31, 2014
Slide 1: Second-Quarter 2014 Analyst Conference Call
1 Speakers: Donald E. Morel, Jr. Chairman and Chief Executive Officer William J. Federici Senior Vice President and Chief Financial Officer All trademarks and registered trademarks are the property of West Pharmaceutical Services, Inc., unless noted otherwise. West Pharmaceutical Services, Inc. Seco
Slide 2: Cautionary Statement
2 Cautionary Statement Under the Private Securities Litigation Reform Act of 1995 This presentation and any accompanying management commentary contain “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements include, but are not li
Slide 3: Second-Quarter 2014 Summary Results
3 Second-Quarter 2014 Summary Results $ millions, except earnings per-share (EPS) data (1) 2013 EPS figures are adjusted for the stock split that occurred on September 26, 2013. ($ millions, except per-share data) Three Months Ended June 30, 2014 2013 Net Sales $ 368.9 $ 344.5 Gross Profit Margin 33
Slide 4: Second-Quarter Operating Results
4 Second-Quarter Operating Results • Sales growth and stronger mix • Pharmaceutical Packaging Systems sales grew 4.5% High-value product sales grew 8.5% Led by Westar and Daikyo RS and RU products Standard product mix positive • Pharmaceutical Delivery Systems sales grew 7.2% • Proprietary pro
Slide 5: Expansion and Product Development
5 Expansion and Product Development Geographic expansion: • China elastomer facility is operating • India facility began commercial production of metal seals Dedication ceremony was held on July 16, 2014 Proprietary delivery systems • Daikyo CZ® products: 1ml syringe pre-commercial testing c
Slide 6: 2014 Outlook
6 2014 Outlook Confirming prior EPS guidance • Diluted EPS estimate in the range of $1.77 to $1.89 PPS: • High-value product growth expected to drive profitability • Expect sales growth to be moderate • Price is not expected to be a significant contributor PDS: • Proprietary products expected
Slide 7: Change in Consolidated Sales Second-Quarter 2013 to 2014
7 Change in Consolidated Sales Second-Quarter 2013 to 2014 ($ millions) $368.9 $15.8 $2.5 $6.1 $344.5 2013 Sales Volume & Mix Sales Price Currency 2014 Sales
Slide 8: Change in Consolidated Gross Profit Margin %
8 Change in Consolidated Gross Profit Margin % Second-Quarter 2013 to 2014 33.0% 1.3% 1.5% 0.5% 0.1% 32.2% 2014 2013
Slide 9: Change in SG&A Costs
9 Change in SG&A Costs Second-Quarter 2013 to 2014 ($ millions) $57.5 $1.9 $1.8 $1.2 $0.3 $59.7
Slide 10: Cash Flow Metrics
10 Cash Flow Metrics ($ millions) (1) 2013 capital expenditures includes $35 million of 2013 funding associated with the Company’s new headquarters and research facility, most of which was incurred and recorded in earlier years Six Months Ended June 30, 2014 2013 Depreciation and amortization $44.9
Slide 11: Summary Balance Sheet Information
11 Summary Balance Sheet Information ($ millions) † Net debt to total invested capital is a Non-GAAP measure, which management believes provides a useful measure of the comparative degree of West’s financial leverage. Net debt is determined by reducing total debt by the amount of cash and cash equiv
Slide 12: 2014 Full-year Financial Guidance
12 2014 Full-year Financial Guidance ($ millions, except EPS) Estimated 2014 Revenue(1) Estimated Gross Profit %(1) Pharmaceutical Packaging Systems Segment $1,030 - $1,050 36.8% to 37.3% Pharmaceutical Delivery Systems Segment $400 - $410 19.5% to 20.5% Consolidated $1,430 - $1,460 32.0% - 32.5% Ca
Slide 13: Notes to Non-GAAP Financial Measures
13 NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see today’s press release and Safe Harbor Statement. Today’s press release, these presentation materials and associated presentation use the following financial measures that have not been calculated in accordance with generally
Slide 14: Non-GAAP Financial Measures
14 Non-GAAP Financial Measures(1) Six Months Ended June 30, 2013 (in millions, except per share data) (1) See “Notes to Non-GAAP Financial Measures” (Slide 13), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Operating profit Income ta