Slide 1: Teleflex Incorporated Fourth Quarter 2023 Earnings Conference Call
Teleflex Incorporated Fourth Quarter 2023 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 22, 2024 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 expectations that our ability to offer synthetic buttressing material alongside the unique features of the Titan SGS Stapler should enable us to further address surgeon prefere
Slide 5: Executive Overview
Executive Overview Liam Kelly - Chairman, President and CEO 5
Slide 6: Q4'23 Highlights
Q4'23 Highlights ◦ Q4'23 constant currency revenue grew 0.7% year-over-year, reflective of five fewer shipping days compared to the prior year period Q4 Performance Summary ◦ Q4'23 adjusted gross margin of 60.1% and adjusted operating margin of 26.3% ◦ Q4'23 adjusted EPS of $3.38, a 4.0% decrease ye
Slide 7: Q4'23 Segment Revenue Review
Q4'23 Segment Revenue Review Three Months Ended % Increase/ Decrease Reported Constant Currency Dollars in Millions December 31, 2023 December 31, 2022 Currency Impact Revenue Growth Growth Americas $450.6 $458.0 (1.6)% 0.3% (1.9)% EMEA $152.4 $147.8 3.1% 5.8% (2.7)% Asia $88.3 $78.5 12.5% (0.1)% 12
Slide 8: Q4'23 Global Product Category Revenue Review
Q4'23 Global Product Category Revenue Review Three Months Ended % Increase/ Decrease Reported Constant Currency Dollars in Millions December 31, 2023 December 31, 2022 Currency Impact Revenue Growth Growth Vascular Access $186.7 $186.4 0.1% 1.3% (1.2)% Interventional $135.6 $125.1 8.5% 1.3% 7.2% Ane
Slide 9: Clinical and Commercial Updates
Clinical and Commercial Updates Peer-reviewed BPH study • Results suggested that within one year of BPH surgery, approximately 1 in 20 patients may require retreatment regardless 1 of whether they receive a TURP, GreenLight, Rezum, or UroLift 2 • At one-year, post-procedural complication rate was lo
Slide 10: Financial Overview
Financial Overview Thomas Powell - Executive VP and CFO 10
Slide 11: Q4'23 Financial Review
Q4'23 Financial Review ◦ Revenue increased 2.1% year-over-year on a GAAP basis Global revenue growth ◦ Revenue increased 0.7% year-over-year on a constant currency basis ◦ GAAP gross margin of 55.7% vs. 55.7% in the prior year period Gross margin ◦ Adjusted gross margin of 60.1%, up 10 bps year-over
Slide 12: 2024 Financial Guidance Summary
2024 Financial Guidance Summary 2024 Guidance Low High GAAP Revenue Growth 3.60% 4.60% Impact of Foreign Exchange Rate Fluctuations (0.15)% (0.15)% Constant Currency Revenue Growth 3.75% 4.75% Adjusted Gross Margin 60.00% 60.75% Adjusted Operating Margin 26.25% 26.75% Adjusted EPS $13.55 $13.95 Adju
Slide 13: Key Takeaways
Key Takeaways We delivered on our The solid fourth quarter We will continue to financial commitments performance and stable focus on our strategy to for 2023 with our to improving macro drive durable growth. diversified portfolio and environment provides a We are progressing well global footprint dr
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 European medical device regulation - The European Union (“EU”) has adopted the EU Medical Device Regulation (“MDR”), which replaces the existing Medical Devices Directive (“MDD”) and imposes more stringent requirements for the marketing and sale of medical devices in the EU, inc
Slide 19: 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, 2023 Selling, general Diluted Research and Effective earnings per Gross and Operating Income before Income tax development income tax share from margin
Slide 20: 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, 2022 Diluted Selling, general Research and Effective earnings per Gross and Operating Income before Income tax development income tax share from margin
Slide 21: 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, 2023 Selling, general Diluted Research and Effective earnings per Gross and development Operating Income before Income tax income tax margin administrative marg
Slide 22: 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, 2022 Diluted Selling, general Research and Effective earnings per Gross and Operating Income before Income tax 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, 2023, pre-tax restructuring charges were $11.6 million and restructuring related charges were $3.8 million. For the three months ended December 31, 2022, pre-tax restructuri
Slide 24: B - 2024 Adj. Gross and Operating Margin Guidance Reconciliation
Appendix B - 2024 Adj. Gross and Operating Margin Guidance Reconciliation Low High Forecasted GAAP Gross Margin 56.20% 56.95% Estimated restructuring, restructuring related and impairment items 0.30% 0.30% Estimated acquisition, integration, and divestiture related items —% —% ERP Implementation —%
Slide 25: C – Reconciliation of 2024 Adjusted Earnings Per Share Guidance
Appendix C – Reconciliation of 2024 Adjusted Earnings Per Share Guidance Low High Forecasted GAAP Diluted Earnings Per Share from continuing operations $5.69 $6.09 Estimated restructuring, restructuring related and impairment items, net of tax $0.20 $0.20 Estimated acquisition, integration, and dive
Slide 26: D - 2023 Segment Revenue Review
Appendix D - 2023 Segment Revenue Review Year Ended % Increase/ Decrease Reported Constant Currency Dollars in Millions December 31, 2023 December 31, 2022 Currency Impact Revenue Growth Growth Americas $1,715.4 $1,653.7 3.7% —% 3.7% EMEA $586.2 $558.4 5.0% 2.2% 2.8% Asia $346.9 $306.3 13.2% (4.4)%
Slide 27: E - 2023 Global Product Category Revenue Review
Appendix E - 2023 Global Product Category Revenue Review Year Ended % Increase/ Decrease Reported Constant Currency Dollars in Millions December 31, 2023 December 31, 2022 Currency Impact Revenue Growth Growth Vascular Access $708.0 $683.6 3.6% 0.1% 3.5% Interventional $511.4 $445.0 14.9% (0.1)% 15.
Slide 28: F - 2023 Financial Review - Year Ended December 31, 2023
Appendix F - 2023 Financial Review - Year Ended December 31, 2023 ◦ Revenue increased 6.6% year-over-year on a GAAP basis Global revenue growth ◦ Revenue increased 6.5% year-over-year on a constant currency basis ◦ GAAP gross margin of 55.4% vs. 54.9% in the prior year period Gross margin ◦ Adjusted