Slide 1: Teleflex Incorporated Q1 2023 Earnings Conference Call
Teleflex Incorporated Q1 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 May 4, 2023 either on the Teleflex website or by telephone. The call can be
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 with respect to the commercial launch of certain products within our Interventional product category; our expectation that we will continue to execute on our strat
Slide 5: Executive Overview
Executive Overview Liam Kelly - Chairman, President and CEO 5
Slide 6: Q1'23 Highlights
Q1'23 Highlights ◦ Q1'23 constant currency revenue grew 13.2% year-over-year, including five extra shipping days compared to the prior year period Q1 Performance ◦ Q1'23 adjusted gross margin increased 100 bps and adjusted operating margin improved Summary 10 bps year-over-year ◦ Q1'23 adjusted EPS
Slide 7: Q1'23 Segment Revenue Review
Q1'23 Segment Revenue Review Three Months Ended % Increase/ Decrease Reported Constant Currency Dollars in Millions April 2, 2023 March 27, 2022 Currency Impact Revenue Growth Growth Americas $411.9 $378.0 9.0% (0.2)% 9.2% EMEA $143.3 $136.9 4.7% (5.8)% 10.5% Asia $78.7 $69.2 13.8% (9.0)% 22.8% OEM
Slide 8: Q1'23 Global Product Category Revenue Review
Q1'23 Global Product Category Revenue Review Three Months Ended % Increase/ Decrease Reported Constant Currency Dollars in Millions April 2, 2023 March 27, 2022 Currency Impact Revenue Growth Growth Vascular Access $177.7 $166.1 6.9% (2.3)% 9.2% Interventional $116.9 $96.9 20.7% (2.6)% 23.3% Anesthe
Slide 9: Clinical and Commercial Updates
Clinical and Commercial Updates Expanding Titan SGS® Stapler portfolio • Supply agreement with W.L. Gore & Associates, Inc. to use GORE® SEAMGUARD® Bioabsorbable Staple Line Reinforcement buttress material with the Titan SGS® Stapler • GORE® SEAMGUARD® Bioabsorbabale Staple Line Reinforcement is a s
Slide 10: Clinical and Commercial Updates
Clinical and Commercial Updates Launched new devices to enhance PICC insertion procedures • Next-generation Arrow® VPS Rhythm® DLX Device provides real-time PICC catheter tip location information using patient’s cardiac electrical activity. Optional integrated ultrasound is available to assist with
Slide 11: Financial Overview
Financial Overview Thomas Powell - Executive VP and CFO 11
Slide 12: Q1'23 Financial Review
Q1'23 Financial Review ◦ Revenue increased 10.8% year-over-year on a GAAP basis Global revenue growth ◦ Revenue increased 13.2% year-over-year on a constant currency basis ◦ GAAP gross margin of 55.1% vs. 54.0% in the prior year period Gross margin ◦ Adjusted gross margin of 59.4%, up 100 bps year-o
Slide 13: 2023 Financial Guidance Summary
2023 Financial Guidance Summary 2023 Guidance Low High GAAP Revenue Growth 4.65% 5.90% Impact of Foreign Exchange Rate Fluctuations (0.35)% (0.35)% Constant Currency Revenue Growth (1) 5.00% 6.25% Adjusted Gross Margin 59.00% 59.50% Adjusted Operating Margin 26.00% 26.75% Adjusted EPS $13.00 $13.60
Slide 14: Key Takeaways
Key Takeaways Q1 results reflect a Solid start to the year Will continue to execute continuation of keeps us well-positioned on our strategy to drive momentum exiting 2022 to deliver on our durable growth with with a solid revenue financial guidance for investment in organic performance, stability o
Slide 15: Thank You
Thank You 15 1515 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 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: Non-GAAP Adjustments
Non-GAAP Adjustments Intangible amortization expense - Certain intangible assets, including customer relationships, intellectual property, distribution rights, trade names and non-competition agreements, initially are recorded at historical cost and then amortized over their respective estimated use
Slide 20: Appendix 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 April 2, 2023 Selling, general Diluted Research and Effective earnings per Gross and Operating Income before Income tax development income tax share from margin admi
Slide 21: Appendix 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 March 27, 2022 Diluted Selling, general Research and Effective earnings per Gross and Operating Income before Income tax development income tax share from margin adm
Slide 22: Appendix A tickmarks
Appendix A tickmarks (A) Restructuring, restructuring related and impairment items – For the three months ended April 2, 2023, pre-tax restructuring charges were $2.2 million and restructuring related charges were $9.8 million. For the three months ended March 27, 2022, pre-tax restructuring charges
Slide 23: Appendix B - 2023 Adj. Gross and Operating Margin Guidance Reconciliation
Appendix B - 2023 Adj. Gross and Operating Margin Guidance Reconciliation Low High Forecasted GAAP Gross Margin 55.10% 55.60% Estimated restructuring, restructuring related and impairment items 0.80% 0.80% Estimated acquisition, integration, and divestiture related items —% —% Estimated intangible a
Slide 24: Appendix C – Reconciliation of 2023 Adjusted Earnings Per Share Guidance
Appendix C – Reconciliation of 2023 Adjusted Earnings Per Share Guidance Low High Forecasted GAAP Diluted Earnings Per Share from continuing operations $8.14 $8.74 Estimated restructuring, restructuring related and impairment items, net of tax $0.60 $0.60 Estimated acquisition, integration, and dive