Slide 1: Teleflex Incorporated Fourth Quarter 2022 Earnings Conference Call
Teleflex Incorporated Fourth Quarter 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 February 23, 2023 either on the Teleflex website or by telephone. The call
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 and Non-GAAP Financial Measures
Note on Forward-Looking Statements This presentation contains forward-looking statements, including, but not limited to our expectation that momentum with respect to our launch of the UroLift System in Japan will continue into 2023; our forecasted 2023 GAAP and constant currency revenue growth, GAAP
Slide 5: Executive Overview
Executive Overview Liam Kelly - Chairman, President and CEO 5
Slide 6: Q4'22 Highlights
Q4'22 Highlights ◦ Q4'22 constant currency revenue grew 3.7% year-over-year, including impact of a 60bp decline in MSTA revenue associated with respiratory divestiture Q4 Performance ◦ Q4'22 constant currency revenue included strong performances from Interventional, Summary Surgical, and OEM ◦ Q4'22
Slide 7: Q4'22 Segment Revenue Review
Q4'22 Segment Revenue Review Three Months Ended % Increase/ Decrease Reported Constant Currency Dollars in Millions December 31, 2022 December 31, 2021 Currency Impact Revenue Growth Growth Americas $458.0 $451.7 1.4% (0.3)% 1.7%1 EMEA $147.8 $164.5 (10.2)% (11.6)% 1.4% Asia $78.5 $78.5 0.0% (13.3)%
Slide 8: Q4'22 Global Product Category Revenue Review
Q4'22 Global Product Category Revenue Review Three Months Ended % Increase/ Decrease Reported Constant Currency Dollars in Millions December 31, 2022 December 31, 2021 Currency Impact Revenue Growth Growth Vascular Access $186.4 $193.0 (3.4)% (3.9)% 0.5% Interventional $125.1 $114.9 8.8% (4.6)% 13.4
Slide 9: Clinical and Commercial Updates
Clinical and Commercial Updates Encouraging Progress with Surgical Stapling • Integration activities on track with Standard Bariatrics • Teleflex awarded a group purchasing agreement with Premier for the Titan SGS® Stapler Japan Commercial Progress for UroLift® System • 2022 revenue exceeded our exp
Slide 10: Financial Overview
Financial Overview Thomas Powell - Executive VP and CFO 10
Slide 11: Q4'22 Financial Review
Q4'22 Financial Review ◦ Revenue decreased 0.5% year-over-year on a GAAP basis Global revenue growth ◦ Revenue increased 3.7% year-over-year on a constant currency basis ◦ GAAP gross margin of 55.7% vs. 55.1% in the prior year period Gross margin ◦ Adjusted gross margin of 60.0%, up 120 bps year-ove
Slide 12: 2023 Financial Guidance Summary
2023 Financial Guidance Summary 2023 Guidance Low High GAAP Revenue Growth 4.25% 5.75% Impact of Foreign Exchange Rate Fluctuations (0.50)% (0.50)% Constant Currency Revenue Growth (1) 4.75% 6.25% Adjusted Gross Margin 59.00% 59.50% Adjusted Operating Margin 26.00% 26.75% Adjusted EPS $13.00 $13.60
Slide 13: Key Takeaways
Key Takeaways Q4 results reflect the 2023 financial guidance Will continue to execute stability of our diversified reflects an improving on our strategy to drive product portfolio, and macro backdrop, durable growth with our revenue progression durable revenue investment in organic during the quarte
Slide 14: Thank You
Thank You 14 1414 Teleflex, the Teleflex logo, are trademarks or registered trademarks of Teleflex Incorporated or its affiliates, in the U.S. and/or other countries. © 2023 Teleflex Incorporated. All rights reserved. MCI-2021-0563.
Slide 15: Appendices
Appendices Veleflex:
Slide 16: 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 17: 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 18: 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 19: 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 December 31, 2022 Selling, general Diluted Research and Effective earnings per Gross and Operating Income before Income tax development income tax share from margin
Slide 20: 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 December 31, 2021 Selling, general Diluted Gross and Research and Operating Income before Income tax Effective earnings per margin administrative development margin
Slide 21: Appendix A3 – Reconciliation of Consolidated Statement of Income Items
Appendix A3 – Reconciliation of Consolidated Statement of Income Items (Dollars in millions, except per share data) Year Ended December 31, 2022 Selling, general Diluted Gross and Research and Operating Income before Income tax Effective earnings per development income tax share from margin administ
Slide 22: Appendix A4 – Reconciliation of Consolidated Statement of Income Items
Appendix A4 – Reconciliation of Consolidated Statement of Income Items (Dollars in millions, except per share data) Year Ended December 31, 2021 Selling, general Diluted Gross and Research and Operating Income before Income tax Effective earnings per development income tax share from margin administ
Slide 23: Appendix A tickmarks
Appendix A tickmarks (A) Restructuring, restructuring related and impairment items – For the three months ended December 31, 2022, pre-tax restructuring charges were $17.3 million and restructuring related charges were $9.5 million. For the three months ended December 31, 2021, pre-tax restructuring
Slide 24: Appendix B - 2023 Adj. Gross and Operating Margin Guidance Reconciliation
Appendix B - 2023 Adj. Gross and Operating Margin Guidance Reconciliation Low High Forecasted GAAP Gross Margin 55.10% 55.60% Estimated restructuring, restructuring related and impairment items 0.80% 0.80% Estimated acquisition, integration, and divestiture related items —% —% Estimated intangible a
Slide 25: Appendix C – Reconciliation of 2023 Adjusted Earnings Per Share Guidance
Appendix C – Reconciliation of 2023 Adjusted Earnings Per Share Guidance Low High Forecasted GAAP Diluted Earnings Per Share from continuing operations $8.26 $8.86 Estimated restructuring, restructuring related and impairment items, net of tax $0.55 $0.55 Estimated acquisition, integration, and dive
Slide 26: 2022 Segment Revenue Review
2022 Segment Revenue Review Three Months Ended % Increase/ Decrease Reported Constant Currency Dollars in Millions December 31, 2022 December 31, 2021 Currency Impact Revenue Growth Growth Americas $1,653.7 $1,659.3 (0.3)% (0.2)% (0.1%)1 EMEA $558.4 $606.8 (8.0)% (10.8)% 2.8% Asia $306.3 $297.8 2.9%
Slide 27: 2022 Global Product Category Revenue Review
2022 Global Product Category Revenue Review Three Months Ended % Increase/ Decrease Reported Constant Currency Dollars in Millions December 31, 2022 December 31, 2021 Currency Impact Revenue Growth Growth Vascular Access $683.6 $700.2 (2.4)% (3.3)% 0.9% Interventional $445.0 $427.5 4.1% (3.5)% 7.6%
Slide 28: 2022 Financial Review
2022 Financial Review ◦ Revenue decreased (0.7)% year-over-year on a GAAP basis Global revenue growth ◦ Revenue increased 2.9% year-over-year on a constant currency basis ◦ GAAP gross margin of 54.9% vs. 55.2% in the prior year period Gross margin ◦ Adjusted gross margin of 59.2%, down 20 bps year-o