West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Q3 2012 Earnings Presentation
17 slides from West Pharmaceutical Services's earnings presentation, Nov 1, 2012
Slide 1: Third-Quarter 2012 Analyst Conference Call
1 Speakers: Donald E. Morel, Jr. Chairman and Chief Executive Officer William J. Federici Vice President and Chief Financial Officer All trademarks and registered trademarks are the property of West Pharmaceutical Services, Inc., unless noted otherwise. West Pharmaceutical Services, Inc. Third-Quart
Slide 2: Cautionary Statement
2 Cautionary Statement Under the Private Securities Litigation Reform Act of 1995 This presentation and any accompanying management commentary contain “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements include, but are not li
Slide 3: Summary Results
3 Summary Results (1) These are Non-GAAP measurements. See “Non-GAAP Financial Measures” and “Notes to Non-GAAP Financial Measures” (Slides 14-17), “Cautionary Statement” (Slide 2) and see “Non-GAAP Financial Measures” in today’s press release for an explanation and reconciliation of these items. ($
Slide 4: Third-Quarter Operating Results
4 Third-Quarter Operating Results • Sales Grew 3.5% (9.2% at constant currency) – Pharmaceutical Packaging Systems 3.3% (10.4% at constant currency) •High-value products grew 17.0% at constant currency • Backlog continues to grow – Pharmaceutical Delivery Systems up 4.4% (6.7% at constant currency)
Slide 5: Expansion and Product Development
5 Expansion and Product Development • Q3 results reinforce value of investments in capacity and products – FluroTec® coating, Envision™ inspection and Westar ® components • Asian expansions remain on schedule • Daikyo Crystal Zenith® resin products – Existing capacity fully utilized • SmartDose™ ele
Slide 6: Long-term Planning Goals
6 Long-term Planning Goals • No fundamental changes in long-term growth strategies and drivers. • 2017 revenue target range: $1.8 billion to $2.0 billion. • Operating profit margin % in the upper teens is achievable.
Slide 7: Change in Consolidated Sales Third-Quarter 2011 to 2012
7 Change in Consolidated Sales Third-Quarter 2011 to 2012 ($ millions) $303.8 ($16.8) $19.2 $7.8 $293.6 2011 Sales Volume & Mix Sales Price Currency 2012 Sales
Slide 8: Change in Consolidated Gross Profit Margin % Third-Quarter 2011 to 2012
8 Change in Consolidated Gross Profit Margin % Third-Quarter 2011 to 2012 29.8% (0.6%) 1.9% 0.8% 27.7%
Slide 9: Change in Third-Quarter SG&A Costs 2011 to 2012
9 Change in Third-Quarter SG&A Costs 2011 to 2012 ($ millions) $53.7 $1.8 $4.6 $2.3 $1.8 $1.1 $45.7
Slide 10: Cash Flow Metrics
10 Cash Flow Metrics ($ millions) Nine Months Ended September 30, 2012 2011 Depreciation and amortization $56.7 $57.3 Operating cash flow $117.6 $88.9 Capital expenditures $98.4 $62.0
Slide 11: Summary Balance Sheet Information
11 Summary Balance Sheet Information ($ millions) As of September 30, 2012 December 31, 2011 Cash and cash equivalents $143.2 $91.8 Debt $401.4 $349.4 Equity $717.1 $654.9 Net debt to total invested capital† 26.5% 28.2% Working capital $281.7 $228.8 † Net debt to total Invested capital is a Non-GAAP
Slide 12: 2012 Full-year Financial Guidance
12 2012 Full-year Financial Guidance ($ millions, except EPS) Estimated 2012 Revenue(1) Estimated Gross Profit %(1) Pharmaceutical Packaging Systems Segment $910 - $920 34.4% Pharmaceutical Delivery Systems Segment $340 - $350 19.8% Consolidated $1,250 - $1,270 30.4% 2012 Adjusted Diluted EPS(1)(2)
Slide 13: Selected Factors Expected to Impact Fourth Quarter 2012 and Comparisons
13 Selected Factors Expected to Impact Fourth Quarter 2012 and Comparisons See “Cautionary Statement” on slide 2. This is not an exclusive list of risks associated with the forward looking statements included in today’s press release, analyst call and this presentation. • Strong operating performanc
Slide 14: Non-GAAP Financial Measures
14 Non-GAAP Financial Measures(1) Three Months Ended September 30, 2012 and 2011 (in millions, except per share data) (1) See “Notes to Non-GAAP Financial Measures” (Slides 15-17), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. As Rep
Slide 15: Notes to Non-GAAP Financial Measures
15 NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see today’s press release and Safe Harbor Statement. (continued on following slide) These presentation materials and associated presentation use the following financial measures that have not been calculated in accordance with ge
Slide 16: Notes to Non-GAAP Financial Measures
16 NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see today’s press release and Safe Harbor Statement. The following is a description of the items excluded from adjusted operating profit, adjusted net income and adjusted diluted EPS for the three-month periods presented in the a
Slide 17: Notes to Non-GAAP Financial Measures
17 NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see today’s press release and Safe Harbor Statement. Full Year 2012 Guidance (1) Adjusted diluted EPS guidance $2.67 to $2.72 Restructuring & impairment, net of tax (0.10) Acquisition-related contingencies (0.03) to (0.02) Exting
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