Slide 1: Teleflex Incorporated First Quarter 2019 Earnings Conference Call
Teleflex Incorporated First Quarter 2019 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 available by dialing (855) 859-2056 or for international calls, (404) 537-3406, pass code number 6798477 2
Slide 3: Today's Speakers
Today’s Speakers Liam Kelly President and CEO Thomas Powell Executive Vice President and CFO Jake Elguicze Treasurer and Vice President, Investor Relations 3
Slide 4: Note on Forward-Looking Statements and Non-GAAP Financial Measures
Note on Forward-Looking Statements This presentation and our discussion contain forward-looking information and statements including, but not limited to, forecasted 2019 GAAP and constant currency revenue growth, GAAP and adjusted gross and operating margins, GAAP and adjusted earnings per share and
Slide 5: 1Q19 Highlights
1Q19 Highlights Revenue Highlights • As-reported revenue increased 4.5% versus 1Q18 • Constant currency revenue increased 7.6% versus 1Q18 • Reaffirmed full year 2019 as-reported and constant currency revenue growth guidance ranges Broad Based Product Category and Geographic Performance1 • Intervent
Slide 6: Segment Revenue Review
Segment Revenue Review Total Constant Dollars Q1’19 Q1’18 Currency Sales Currency in Millions Revenue Revenue Impact Growth Growth Americas $344.0 $323.3 6.4% (0.3%) 6.7% EMEA $154.6 $159.9 (3.3%) (7.8%) 4.5% Asia $60.8 $58.2 4.3% (6.7%) 11.0% OEM $54.2 $45.8 18.3% (1.8%) 20.1% TOTAL $613.6 $587.2 4
Slide 7: Global Product Category Revenue Review
Global Product Category Revenue Review Total Constant Dollars Q1’19 Q1’18 Currency Sales Currency in Millions Revenue Revenue Impact Growth Growth Vascular Access $143.9 $144.0 (0.1%) (2.6%) 2.5% Interventional $103.2 $90.1 14.5% (2.6%) 17.1% Anesthesia $80.3 $84.9 (5.5%) (4.0%) (1.5%) Surgical $86.
Slide 8: Product and Clinical Updates
Product and Clinical Updates UroLift® System Real-World Clinical Presentations at 2019 American Urological Association, Chicago KEY TAKEAWAYS Presentations on Saturday May 4th, 2019 • “Real World Outcomes of Prostatic Urethral Lift Confirm Clinical Study Results” to be presented by Steven Gange, M.D
Slide 9: 1Q19 Financial Review
1Q19 Financial Review Revenue of $613.6 million • Up 4.5% vs. prior year period on an as-reported basis • Up 7.6% vs. prior year period on a constant currency basis Gross Margin • GAAP gross margin of 56.2%, down 20 bps vs. prior year period • Adjusted gross margin of 56.7%, up 10 bps vs. prior year
Slide 10: 2019 Financial Outlook
2019 Financial Outlook 2019 Revenue Guidance • Reaffirmed as-reported revenue growth guidance range of between 5% and 6% • Reaffirmed constant currency revenue growth guidance range of between 6% and 7% 2019 Gross Margin Guidance • Reaffirmed GAAP gross margin guidance range of between 57.2% and 57.
Slide 11: Question and Answer Section
Question and Answer Section 11
Slide 12: Thank You
THANK YOU 12 Veleflex:
Slide 13: Appendices
Appendices Veleflex:
Slide 14: 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 15: 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 16: Appendix A – Reconciliation of Adjusted Gross Profit and Margin Dollars
Appendix A – Reconciliation of Adjusted Gross Profit and Margin Dollars in Thousands Three Months Ended March 31, 2019 April 1, 2018 Teleflex gross profit as-reported $ 344,742 $ 331,270 Teleflex gross margin as-reported 56.2% 56.4% Restructuring, restructuring related and impairment items (A) 3,013
Slide 17: Appendix B – Reconciliation of Adjusted Operating Profit and Margin Dollars
Appendix B – Reconciliation of Adjusted Operating Profit and Margin Dollars in Thousands Three Months Ended March 31, 2019 April 1, 2018 Teleflex income from continuing operations before interest, loss on extinguishment of debt and taxes $ 75,243 $ 86,843 Teleflex income from continuing operations b
Slide 18: Appendix C – Reconciliation of Adjusted Tax Rate
Appendix C – Reconciliation of Adjusted Tax Rate Dollars in Thousands Teleflex Incorporated GAAP to Non-GAAP Tax Rate Reconciliation Three Months Ended Incom e from Taxes on continuing incom e from operations continuing before taxes operations Tax rate March 31, 2019 GAAP basis $52,890 $10,972 20.7%
Slide 19: D – Reconciliation of Adjusted EPS from Continuing Operations, Q1 2019
Appendix D – Reconciliation of Adjusted EPS from Continuing Operations Three Months Ended– March 31, 2019 Dollars in Millions, except per share data Three Months Ended March 31, 2019 Selling, general Restructuring Diluted earnings Cost of Research and (Gain) loss on and and Incom e Incom e (loss) fr
Slide 20: E – Reconciliation of Adjusted EPS from Continuing Operations, Q1 2018
Appendix E – Reconciliation of Adjusted EPS from Continuing Operations Three Months Ended – April 1, 2018 Dollars in Millions, except per share data Three Months Ended April 1, 2018 Selling, general Restructuring Diluted earnings Cost of Research and and and Incom e Incom e (loss) from per share fro
Slide 21: Appendices D and E – tickmarks
Appendices D and E – tickmarks (A) Restructuring, restructuring related and impairment items - For the three months ended March 31, 2019, pre-tax restructuring charges were $14.4 million, pre-tax restructuring related charges were $3.1 million, and pre-tax impairment charges were $3.0 million. For t
Slide 22: F - Reconciliation of 2019 Revenue Guidance
Appendix F - Reconciliation of 2019 Revenue Guidance 2019 Guidance Low High Forecasted GAAP Revenue Growth 5.0% 6.0% Estimated impact of foreign currency exchange rate fluctuations (1.0%) (1.0%) Forecasted Constant Currency Revenue Growth 6.0% 7.0% 22
Slide 23: G – Reconciliation of 2019 Adjusted Gross and Operating Margin Guidance
Appendix G – Reconciliation of 2019 Adjusted Gross and Operating Margin Guidance 2019 Guidance Low High Forecasted GAAP Gross Margin 57.20% 57.75% Estimated restructuring, restructuring related and impairment items 0.80% 0.75% Estimated acquisition, integration and divestiture related items 0.00% 0.
Slide 24: H – Reconciliation of 2019 Adjusted Earnings Per Share Guidance
Appendix H – Reconciliation of 2019 Adjusted Earnings Per Share Guidance 2019 Guidance Low High Forecasted GAAP Diluted Earnings Per Share $6.72 $6.84 Estimated Restructuring, restructuring related and impairment items, net of tax $0.83 $0.86 Estimated acquisition, integration and divestiture relate
Slide 25: I – 2019 Financial Outlook Assumptions
Appendix I – 2019 Financial Outlook Assumptions Euro to U.S. Dollar exchange rate assumed to be approximately 1.15 for full year 2019 Adjusted weighted average shares expected to be approximately 47.2 million for full year 2019 2019 Calendar of shipping days: Q1’19 vs. Q1’18: no difference Q2’19 vs.
Slide 26: J – Teleflex Restructuring and Similar Cost Savings Initiatives Summary
Appendix J – Teleflex Restructuring and Similar Cost Savings Initiatives Summary In February 2019, we initiated a restructuring plan primarily involving the relocation of certain manufacturing operations to existing lower-cost locations and related workforce reductions (the “2019 Footprint realignme