Slide 1: Teleflex Incorporated First Quarter 2020 Earnings Conference Call
Teleflex Incorporated First 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 7545905 2
Slide 3: Today's Speakers
Today’s Speakers Liam Kelly 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, statements with respect to which of our primary product categories we expect to be adversely impacted due to non-emergent/elective procedure deferrals; estimated pre-tax charges w
Slide 5: Executive Overview
Executive Overview Liam Kelly President and CEO 5
Slide 6: 1Q 2020 Highlights
1Q 2020 Highlights • 1Q as-reported and constant currency revenue growth of 2.8% and 4.0%, respectively Q1 Summary • Adjusted gross and operating margins of 57.3% and 25.6%, respectively • Adjusted EPS of $2.72, up 21.4% versus prior year period • Strong start to 2020, with results ahead of initial
Slide 7: COVID-19 Update
COVID-19 Update • No significant disruptions in global supply chain for products in high demand, but delivery times lengthened • Significant demand for certain products across Respiratory, Airway Management, and Vascular Access portfolios • Primary product categories that are expected to be adversel
Slide 8: 1Q20 Segment Revenue Review
1Q20 Segment Revenue Review As-Reported Constant Dollars 1Q’20 1Q’19 Currency Revenue Currency in Millions Revenue Revenue Impact Growth Growth Americas $358.0 $344.0 4.1% (0.2%) 4.3% EMEA $156.1 $154.6 1.0% (2.8%) 3.8% Asia $53.1 $60.8 (12.6%) (3.4%) (9.2%) OEM $63.4 $54.2 16.9% (0.6%) 17.5% TOTAL
Slide 9: 1Q20 Global Product Category Revenue Review
1Q20 Global Product Category Revenue Review As-Reported Constant Dollars 1Q’20 1Q’19 Currency Revenue Currency in Millions Revenue Revenue Impact Growth Growth Vascular Access $150.3 $143.9 4.4% (1.2%) 5.6% Interventional $99.9 $103.2 (3.2%) (0.9%) (2.3%) Anesthesia $75.7 $80.3 (5.7%) (1.8%) (3.9%)
Slide 10: Financial Overview
Financial Overview Tom Powell Executive VP and CFO 10
Slide 11: 1Q20 Financial Review
1Q20 Financial Review Revenue of $630.6 million • Increased 2.8% vs. prior year period on an as-reported basis • Increased 4.0% vs. prior year period on a constant currency basis Gross Margin • GAAP gross margin of 52.9%, up 10 bps vs. prior year period • Adjusted gross margin of 57.3%, up 60 bps vs
Slide 12: 1Q20 Liquidity and Covenant Review
1Q20 Liquidity and Covenant Review 1Q’20 1Q’19 B/(W) Cash Flow from Operations ($11.5) $60.2 ($71.7) Explanatory items included in cash flow from operations: Contingent consideration payments $79.8 $25.9 ($53.9) Pension Contribution $10.0 − ($10.0) Leverage 1 2.63x 2.75x 0.12x 12 1 = calculated in a
Slide 13: Key Takeaways
Key Takeaways • Teleflex delivered solid performance during the first quarter of 2020 • Committed to managing business resources prudently during COVID-19 global pandemic • Strong underlying fundamentals and global leadership in growing, high-margin markets remain intact 13
Slide 14: Question and Answer Section
Question and Answer Section 14
Slide 15: Thank You
THANK YOU 15 Veleflex:
Slide 16: Appendices
Appendices Veleflex:
Slide 17: 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 18: 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 19: Appendix A – Reconciliation of Adjusted Gross Profit and Margin
Appendix A – Reconciliation of Adjusted Gross Profit and Margin (Dollars in Thousands) Three Months Ended March 29, 2020 March 31, 2019 Teleflex gross profit as-reported $333,624 $323,970 Teleflex gross margin as-reported 52.9% 52.8% Restructuring, restructuring related and impairment items (A) 4,86
Slide 20: Appendix B – Reconciliation of Adjusted Operating Profit and Margin
Appendix B – Reconciliation of Adjusted Operating Profit and Margin (Dollars in Thousands) Three Months Ended March 29, 2020 March 31, 2019 Teleflex income from continuing operations before interest and taxes $157,086 $75,243 Teleflex income from continuing operations before interest and taxes margi
Slide 21: Appendix C – Reconciliation of Adjusted Tax Rate
Appendix C – Reconciliation of Adjusted Tax Rate (Dollars in Thousands) Three Months Ended Income from Taxes on continuing income from operations continuing Tax before taxes operations rate March 29, 2020 GAAP basis $142,226 $11,074 7.8% Restructuring, restructuring related and impairment charges $6
Slide 22: Appendix D – Reconciliation of Adjusted EPS from Continuing Operations
Appendix D – Reconciliation of Adjusted EPS from Continuing Operations Three Months Ended– March 29, 2020 (Dollars in Millions, except per share data) Cost of goods sold, Selling, general and Research and Restructuring (Gain) loss on Diluted earnings per Incom e Incom e (loss) from excluding intangi
Slide 23: Appendix E – Reconciliation of Adjusted EPS from Continuing Operations
Appendix E – Reconciliation of Adjusted EPS from Continuing Operations Three Months Ended– March 31, 2019 (Dollars in Millions, except per share data) Selling, general Restructuring Cost of goods sold, Research and (Gain) loss on Diluted earnings per and and Incom e Incom e (loss) from excluding int
Slide 24: Appendices D and E – tickmarks
Appendices D and E– tickmarks (A) Restructuring, restructuring related and impairment items - For the three months ended March 29, 2020, pre-tax restructuring charges were $1.3 million, pre-tax restructuring related charges were $5.1 million; there were no pre-tax impairment charges. For the three m
Slide 25: Appendix F – Teleflex Restructuring and Similar Cost Savings Initiatives Summary
Appendix F – Teleflex Restructuring and Similar Cost Savings Initiatives Summary We have ongoing restructuring programs primarily related to the consolidation of our manufacturing operations (referred to as our 2019, 2018 and 2014 Footprint realignment plans). We also have similar ongoing activities
Slide 26: Appendix G – 1Q 2020 GPO and IDN Review
Appendix G – 1Q 2020 GPO and IDN Review Group Purchasing Organization Update 1Q20 Renewed agreements 2 New agreements 1 Existing agreements lost 0 IDN Update 1Q20 Renewed agreements 6 New agreements 7 Existing agreements lost 1 26