Slide 1: Teleflex Incorporated Third Quarter 2020 Earnings Conference Call
Teleflex Incorporated Third Quarter 2020 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 is available by dialing (855) 859-2056 or for international calls, (404) 537-3406, pass code number 4987865 2
Slide 3: Today's Speakers
Today’s Speakers Liam Kelly Chairman, President and CEO Thomas Powell Executive VP and CFO Jake Elguicze Treasurer and VP, Investor Relations 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 our acquisition of Z-Medica, LLC will be immediately accretive to our normalized revenue growth, gross margin and operating margin profile and that the acquis
Slide 5: Executive Overview
Executive Overview Liam Kelly Chairman, President and CEO 5
Slide 6: Q3 2020 Highlights
Q3 2020 Highlights • Sequential improvement in Q3’20 constant currency revenue, and adjusted gross and operating margin performance, as compared to Q2’20 Q3 Summary • Q3 adjusted earnings per share significantly better than internal expectations • In October 2020, signed agreement to acquire Z-Medic
Slide 7: Q3 2020 Financial Results
Q3 2020 Financial Results Revenue Highlights • Q3'20 as reported revenue decreased 3.1% vs. Q3'19 • Q3'20 constant currency revenue decreased 4.1% vs. Q3'19 • Management estimates that COVID-19 had a net negative impact of approximately $78 million, or ~12% Global Product Revenue Drivers1 • Vascular
Slide 8: Q3'20 Segment Revenue Review
Q3'20 Segment Revenue Review Reported Constant Estimated Dollars in Q3'20 Q3'19 Currency Revenue Impact Currency COVID-19 Millions Revenue Revenue Growth Growth Impact Americas $375.0 $374.5 0.1% (0.3)% 0.4% (~9%) EMEA $135.7 $140.5 (3.5)% 3.5% (7.0)% (~4%) Asia $68.2 $77.9 (12.4)% 1.8% (14.2)% (~21
Slide 9: Q3'20 Global Product Category Revenue Review
Q3'20 Global Product Category Revenue Review Reported Constant Estimated Dollars in Q3'20 Q3'19 Currency Revenue Impact Currency COVID-19 Millions Revenue Revenue Growth Growth Impact Vascular Access $160.0 $148.7 7.6% 0.8% 6.8% ~1% Interventional $93.2 $106.9 (12.8)% 0.7% (13.5)% (~16%) Anesthesia
Slide 10: Clinical and Commercial Updates: UroLift System
Clinical and Commercial Updates Interventional Urology - UroLift® System KEY TAKEAWAYS Pilot National DTC Campaign Building Momentum • Began in early July 2020; in September advertising ramped to 100% • On pace to generate 6x the number of impressions of regional DTC campaigns over same time period
Slide 11: Clinical and Commercial Updates: EZ-IO
Clinical and Commercial Updates Anesthesia & Emergency Medicine - EZIO KEY TAKEAWAYS New 48-hour dwell indication • EZ-IO® System now available with the expanded indication stating use of the device may be extended for up to 48 hours when alternate intravenous access is not available or reliably est
Slide 12: Acquisition Update: Signs Agreement to Acquire Z-Medica, LLC
Acquisition Update Signs Agreement to Acquire Z-Medica, LLC KEY TAKEAWAYS Market Leader in hemostatic products for the pre-hospital and military markets • The QuikClot® family of products contain kaolin, which has been shown to accelerate the clotting cascade and stop bleeding fast; portfolio provid
Slide 13: Financial Overview
Financial Overview Thomas Powell Executive VP and CFO 13
Slide 14: Q3'20 Financial Review
Q3'20 Financial Review Global revenue generation of $628.3 million • Decreased 3.1% vs. prior year period on an as-reported basis • Decreased 4.1% vs. prior year period on a constant currency basis Gross margin performance • GAAP gross margin of 52.4%, down 240 bps vs. prior year period • Adjusted g
Slide 15: Key Takeaways
Key Takeaways • Teleflex delivered solid underlying performance in the third quarter of 2020 • Deployed capital for an exciting hemostat acquisition which is expected to improve company's weighted average market growth rate and margin profile • Poised to accelerate growth as interventional urology,
Slide 16: Question and Answer Section
Question and Answer Section 16
Slide 17: Thank You
THANK YOU 17
Slide 18: Appendices
Appendices Teleflex
Slide 19: 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 20: 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 21: Appendix A – Reconciliation of Adjusted Gross and Operating Margin, Income Tax and EPS
Appendix A – Reconciliation of Adjusted Gross and Operating Margin, Income Tax and EPS (Dollars in millions, except per share data) 21 See slide titled Non-GAAP Adjustments included at the beginning of the appendices to this presentation for Non-GAAP definitions.
Slide 22: Appendix B – Reconciliation of Adjusted EPS, Three Months Ended Sept 27, 2020
Appendix B – Reconciliation of Adjusted EPS from Continuing Operations Three Months Ended September 27, 2020 (Dollars in Millions, except per share data) 22 See slide titled Non-GAAP Adjustments included at the beginning of the appendices to this presentation for Non-GAAP definitions.
Slide 23: Appendix C – Reconciliation of Adjusted EPS, Three Months Ended Sept 29, 2019
Appendix C – Reconciliation of Adjusted EPS from Continuing Operations Three Months Ended September 29, 2019 (Dollars in Millions, except per share data) 23 See slide titled Non-GAAP Adjustments included at the beginning of the appendices to this presentation for Non-GAAP definitions.
Slide 24: Appendix D – Reconciliation of Adjusted EPS, Nine Months Ended Sept 27, 2020
Appendix D – Reconciliation of Adjusted EPS from Continuing Operations Nine Months Ended September 27, 2020 (Dollars in Millions, except per share data) See slide titled Non-GAAP Adjustments included at the beginning of the appendices to this presentation for Non-GAAP definitions. 24
Slide 25: Appendix E – Reconciliation of Adjusted EPS, Nine Months Ended Sept 29, 2019
Appendix E – Reconciliation of Adjusted EPS from Continuing Operations Nine Months Ended September 29, 2019 (Dollars in Millions, except per share data) Selling, Research & Restructuring (Gain) loss on Income (loss) Diluted earnings Cost of goods general & and sale of Income taxes from per share fro
Slide 26: Appendix A,B,C,D,E tickmarks
Appendix A,B,C,D,E tickmarks 1. Restructuring, restructuring related and impairment items – For the three months ended September 27, 2020, pre-tax restructuring credits were $3.7 million, pre-tax restructuring related charges were $7.7 million, and there were no pre-tax impairment charges. For the t
Slide 27: Appendix F – Restructuring and Similar Cost Savings Initiatives Summary
Appendix F – Restructuring and Similar Cost Savings Initiatives Summary During the second quarter of 2020, we committed to a workforce reduction designed to improve profitability and reduce cost primarily by streamlining certain sales and marketing functions in our EMEA segment and certain manufactu
Slide 28: Appendix F Footnotes
Appendix F Footnotes 1) Includes estimated charges associated with the 2020 Workforce reduction plan of $10 million to $13 million. 2) Represents charges that are directly related to restructuring programs and principally constitute costs to transfer manufacturing operations to existing lower-cost l
Slide 29: Appendix G – September 2020 Year-to-Date GPO and IDN Review
Appendix G – September 2020 Year-to-Date GPO and IDN Review Group Purchasing Organization Update Q1’20 Q2’20 Q3'20 Renewed agreements 2 8 8 New agreements 1 0 4 Existing agreements lost 0 0 1 IDN Update Q1’20 Q2’20 Q3'20 Renewed agreements 6 2 11 New agreements 7 6 4 Existing agreements lost 1 0 2 2