Slide 1: Teleflex Incorporated First Quarter 2017 Earnings Conference Call
Teleflex Incorporated First Quarter 2017 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 12639722 2
Slide 3: Introductions
Introductions Benson Smith Chairman and CEO Liam Kelly President and COO Thomas Powell Executive Vice President and CFO Jake Elguicze Treasurer and Vice President of 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 2017 GAAP and constant currency revenue growth, GAAP and adjusted gross and operating margins and adjusted earnings per share and the i
Slide 5: Executive Summary
Executive Summary First quarter 2017 revenue of $487.9 million • Up 14.8% vs. prior year period on an as-reported basis • Up 16.0% vs. prior year period on a constant currency basis • Q1’17 results include a partial quarter of contribution from Vascular Solutions which added approximately 5% towards
Slide 6: First Quarter Highlights
First Quarter Highlights First quarter 2017 constant currency revenue growth of 16.0% • Sales volume of existing products contributed 7.8% of constant currency growth, including impact of five additional selling days in the quarter which contributed approximately 6% • Acquisitions contributed 5.8% o
Slide 7: Segment Revenue Review
Segment Revenue Review Q1’17 Q1’16 16% 12% 19% 19% 8% 9% 9% 9% 12% 10% 10% 11% 27% 29% Vascular North America Surgical North America Vascular North America Surgical North America Anesthesia North America EMEA Anesthesia North America EMEA Asia OEM Asia OEM All Other All Other Constant Currency Reven
Slide 8: Group Purchasing Organization and IDN Review
Group Purchasing Organization and IDN Review Track record of expansion of contractual agreements continues in Q1’17 Group Purchasing Organization Update • 9 renewed agreements • 1 new agreement • 1 existing agreement not renewed IDN Update • 7 renewed agreements • 13 new agreements 8
Slide 9: Product Introductions and Regulatory Approvals: Spectre Guidewire
Product Introductions and Regulatory Approvals Spectre™ Guidewire PRODUCT DESCRIPTION Recently received FDA 510(k) clearance and initiated U.S. commercial launch of the Spectre™ Guidewire, which is designed for premium performance in coronary and peripheral interventions with enhanced trackability a
Slide 10: Product Introductions and Regulatory Approvals: Twin-Pass Torque Dual Access Catheter
Product Introductions and Regulatory Approvals Twin-Pass® Torque Dual Access Catheter PRODUCT DESCRIPTION Recently received FDA 510(k) clearance and initiated both U.S. and international commercial launch of the Twin-Pass® Torque Dual Access Catheter. The Twin-Pass® Torque Dual Access Catheter conta
Slide 11: Product Introductions and Regulatory Approvals: TrapLiner Catheter
Product Introductions and Regulatory Approvals TrapLiner™ Catheter PRODUCT DESCRIPTION Recently received FDA 510(k) clearance and initiated U.S. commercial launch of the TrapLiner™ Catheter. The TrapLiner™ Catheter is similar in design to Vascular Solutions’ popular GuideLiner Guide Extension Cathet
Slide 12: Product Introductions and Regulatory Approvals: Arrow AC3 Optimus Intra-Aortic Balloon Pump
Product Introductions and Regulatory Approvals Arrow® AC3 Optimus™ Intra-Aortic Balloon Pump PRODUCT DESCRIPTION Recently received FDA 510(k) clearance for the AC3 Optimus™ Intra-Aortic Balloon Pump (IABP). This device helps a weakened heart pump blood and can deliver IABP therapy to a broad range o
Slide 13: Acquisition Update
Acquisition Update Completed acquisition of Pyng Medical • Pyng Medical commercializes trauma and resuscitation products for front-line critical care and emergency medical personnel • Product portfolio includes a variety of innovative, lifesaving tools, including intraosseous infusion, pelvic stabil
Slide 14: Restructuring Update
Restructuring Update 2017 Vascular Solutions Integration Program During the first quarter 2017, we committed to a restructuring program related to the integration of Vascular Solutions' operations with our operations. We initiated the program in the first quarter 2017 and expect the program to be su
Slide 15: Restructuring Update
Restructuring Update In addition to the restructuring programs initiated during the first quarter 2017, we have other ongoing restructuring programs related to the consolidation of our manufacturing operations (referred to as our 2016 and 2014 footprint realignment plans) as well as restructuring pr
Slide 16: First Quarter Financial Review
First Quarter Financial Review Revenue of $487.9 million • Up 14.8% vs. prior year period on an as-reported basis • Up 16.0% vs. prior year period on a constant currency basis Gross Margin • GAAP gross margin of 52.4%, down 60 bps vs. prior year period • Adjusted gross margin of 54.7%, up 110 bps vs
Slide 17: 2017 Financial Outlook Assumptions
2017 Financial Outlook Assumptions 2017 Revenue Guidance • Reaffirmed as-reported revenue growth range of 10.0% - 11.5% • Reaffirmed constant currency revenue growth range of 12.5% - 14.0% 2017 Gross Margin Guidance • Lowered GAAP gross margin range from 54.15% - 54.70% to 54.10% - 54.65% • Reaffirm
Slide 18: Any Questions?
Any Questions? Veleflex:
Slide 19: Thank You
Thank You Veleflex:
Slide 20: Appendices
—=———— Appendices Veleflex:
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures The following appendices include, among other things, tables reconciling the following non-GAAP financial measures to the most comparable GAAP financial measure: • Constant currency revenue growth. This measure excludes the impact of translating the results of internation
Slide 22: Appendix A – Reconciliation of Constant Currency Revenue Growth
APPENDIX A – RECONCILIATION OF CONSTANT CURRENCY REVENUE GROWTH DOLLARS IN MILLIONS Three Months Ended % Increase / (Decrease) April 2, 2017 March 27, 2016 Constant Currency Currency Total Vascular North America $ 93.8 $ 81.5 14.8% 0.2% 15.0% Anesthesia North America 48.2 46.0 4.7% 0.2% 4.9% Surgica
Slide 23: Appendix B – Reconciliation of Revenue Growth
APPENDIX B – RECONCILIATION OF REVENUE GROWTH DOLLARS IN MILLIONS Year-over-year grow th % Basis Points Three Months Ended March 27, 2016 Revenue As-Reported $424.9 Foreign Currency (4.3) -1.2% (120) Sales Volume Existing Products 32.8 7.8% 780 Acquisitions 1 24.2 5.8% 580 New Product Sales 7.5 1.8%
Slide 24: Appendix C – Reconciliation of Adjusted Gross Profit and Margin
APPENDIX C – RECONCILIATION OF ADJUSTED GROSS PROFIT AND MARGIN DOLLARS IN THOUSANDS Three Months Ended April 2, 2017 March 27, 2016 Teleflex gross profit as-reported $ 255,560 $ 225,147 Teleflex gross margin as-reported 52.4% 53.0% Losses and other charges, net (A) 11,541 2,651 Adjusted Teleflex gr
Slide 25: Appendix D – Reconciliation of Adjusted Operating Profit and Margin
APPENDIX D – RECONCILIATION OF ADJUSTED OPERATING PROFIT AND MARGIN DOLLARS IN THOUSANDS Three Months Ended April 2, 2017 March 27, 2016 Teleflex incom e from continuing operations before interest and taxes $ 60,819 $ 67,497 Teleflex incom e from continuing operations before interest and taxes m arg
Slide 26: Appendix E – Reconciliation of Adjusted EPS, Quarter Ended April 2, 2017
APPENDIX E – RECONCILIATION OF ADJUSTED EPS FROM CONTINUING OPERATIONS QUARTER ENDED – APRIL 2, 2017 DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA Selling, general Restructuring Net incom e (loss) Diluted earnings Shares used in Cost of Research and (Gain) loss on Loss on and and other Interest Incom e
Slide 27: Appendix F – Reconciliation of Adjusted EPS, Quarter Ended March 27, 2016
APPENDIX F – RECONCILIATION OF ADJUSTED EPS FROM CONTINUING OPERATIONS QUARTER ENDED – MARCH 27, 2016 DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA (Gain) loss Selling, general Restructuring Net incom e (loss) Diluted earnings Shares used in Cost of Research and on sale of Interest and and other Incom
Slide 28: Appendix G – Reconciliation of Adjusted Tax Rate
APPENDIX G – RECONCILIATION OF ADJUSTED TAX RATE DOLLARS IN THOUSANDS Three Months Ended April 2, 2017 Incom e from Taxes on continuing incom e from operations continuing before taxes operations Tax rate GAAP basis $37,680 ($2,669) -7.1% Restructuring and impairment charges 12,945 2,961 Losses and o
Slide 29: Appendix H – Reconciliation of 2017 Constant Currency Revenue Growth Guidance
APPENDIX H – RECONCILIATION OF 2017 CONSTANT CURRENCY REVENUE GROWTH GUIDANCE Low High Forecasted GAAP Revenue Grow th 10.0% 11.5% Estimated Impact of Foreign Currency Exchange Rate Fluctuations 2.5% 2.5% Forecasted Constant Currency Revenue Grow th 12.5% 14.0% 29
Slide 30: Appendix I – Reconciliation of 2017 Adjusted Gross Margin Guidance
APPENDIX I – RECONCILIATION OF 2017 ADJUSTED GROSS MARGIN GUIDANCE Low High Forecasted GAAP Gross Margin 54.10% 54.65% Estimated losses and other charges, net 1.30% 1.35% Forecasted Adjusted Gross Margin 55.40% 56.00% Note: In 2017, estimated losses and other charges, net relate primarily to facilit
Slide 31: Appendix J – Reconciliation of 2017 Adjusted Operating Margin Guidance
APPENDIX J – RECONCILIATION OF 2017 ADJUSTED OPERATING MARGIN GUIDANCE Low High Forecasted GAAP Operating Margin 18.20% 18.80% Estimated losses and other charges, net 3.35% 3.40% Estimated intangible amortization expense 4.05% 4.10% Forecasted Adjusted Operating Margin 25.60% 26.30% Note: In 2017, e
Slide 32: Appendix K – Reconciliation of 2017 Adjusted Earnings Per Share Guidance
APPENDIX K – RECONCILIATION OF 2017 ADJUSTED EARNINGS PER SHARE GUIDANCE Low High Forecasted diluted earnings per share attributable to common shareholders $5.59 $5.66 Restructuring, impairment charges and special items, net of tax $1.15 $1.20 Intangible amortization expense, net of tax $1.30 $1.35