Slide 1: Fourth Quarter & Full Year 2011 & 2012 Outlook Earnings Conference Call
1 TELEFLEX INCORPORATED FOURTH QUARTER & FULL YEAR 2011 & 2012 OUTLOOK EARNINGS CONFERENCE CALL
Slide 2: Conference Call Logistics
2 Conference Call Logistics The release, accompanying slides, and replay webcast available online at www.teleflex.com (click on "Investors") Telephone replay available by dialing 888-286-8010 or for international calls, 617- 801-6888, pass code number 36708812
Slide 3: Introductions
3 Introductions Benson Smith Chairman, President and CEO Randy Meier Executive Vice President and CFO Jake Elguicze Treasurer and Vice President of Investor Relations
Slide 4: Forward-Looking Statements/Additional Notes
4 4 4 4 4 4 4 Forward-Looking Statements/Additional Notes This presentation and our discussion contain forward-looking information and statements including, but not limited to, forecasted 2011 constant currency revenue growth and adjusted earnings per share; our expectations with respect to our gros
Slide 5: Fourth Quarter 2011 Highlights
5 FOURTH QUARTER 2011 HIGHLIGHTS
Slide 6: Financial Highlights
6 Financial Highlights Revenue of $411.7 million, up 6.8% constant currency Adjusted gross margin of 47.1%, down 20 bps vs. prior year Adjusted operating margins of 16.8%, up 200 bps vs. prior year Adjusted EPS of $1.07, up 29% vs. prior year Adjusted earnings impacted ($0.17) due to acceleration of
Slide 7: Strategic Development Highlights
7 Strategic Development Highlights Marketplace continues to accept pricing initiatives Up 50 bps versus prior year Up 40 bps sequentially Adoption of VasoNova VPS in U.S. market continues 20 accounts won since limited market release in 2011 Approximately 30 trials per month scheduled through June 20
Slide 8: Full Year 2011 Highlights
8 FULL YEAR 2011 HIGHLIGHTS
Slide 9: Summary
9 Summary CEO leadership change Completed portfolio transformation to medical device company VasoNova acquisition Revenue of $1.529 billion, up 4.3% constant currency Shift from regional to strategic business unit market approach FDA Corporate warning letter resolved Adjusted EPS of $3.93, up 4% vs.
Slide 10: Product Development Update
10 Product Development Update Research & Development spending up 14% in 2011 versus 2010 Over 20 new products and line extensions brought to market Anesthesia Respiratory Surgical Specialty Urology Vascular 0.136 0.136 0.136 0.136 0.136 0.32 New product introductions and line extensions contribute ~
Slide 11: Group Purchasing Organization Update
11 Group Purchasing Organization Update Significant progress made in 2011 Awarded 37 GPO Contracts 10 new awards won 27 award renewals Annualized 2011 revenue through GPOs up 6% versus prior year
Slide 12: Fourth Quarter 2011 Financial Review
12 FOURTH QUARTER 2011 FINANCIAL REVIEW
Slide 13: Fourth Quarter - Financial Results
13 Fourth Quarter - Financial Results Revenue of $411.7 million Up 6.6% Up 6.8% constant currency Adjusted gross margin of 47.1% Down 20 bps vs. prior year Down 80 bps sequentially Research & development spending up 4% from prior year Adjusted operating margin of 16.8% Up 200 bps vs. prior year Down
Slide 14: Fourth Quarter 2011 Product & Geographic Revenue Review
14 FOURTH QUARTER 2011 PRODUCT & GEOGRAPHIC REVENUE REVIEW
Slide 15: Product Revenue Review
15 Product Revenue Review Critical Care Surgical Care Cardiac Care OEM 0.65 0.18 0.05 0.12 Q4'11 Q4'10 Constant Currency Revenue Commentary Critical Care Surgical Care Cardiac Care OEM 0.67 0.19 0.04 0.1 Critical Care: $268.2 million, up 4.3% Surgical Care: $73.5, up 2.7% Vascular access - up 2.2% R
Slide 16: Geographic Revenue Review
16 Geographic Revenue Review North America EMEA Asia Pacific Latin America Japan OEM 0.41 0.33 0.07 0.04 0.03 0.12 Q4'11 Q4'10 Constant Currency Revenue Commentary North America EMEA Asia Pacific Latin America Japan OEM 0.43 0.33 0.07 0.04 0.03 0.1 North America: $168.8 million, up 2.4% EMEA: $134.9
Slide 17: 2012 Outlook
17 2012 OUTLOOK
Slide 18: 2012 Outlook
18 2012 Outlook Constant currency revenue growth range of 4.0% to 6.0% Pricing growth of 50 to 75 bps New product sales growth of 100 to 150 bps Increased volume of 250 to 375 bps Adjusted operating margins expand by approximately 100bps Gross margin expansion Acceleration of investments in research
Slide 19: Question & Answer
19 QUESTION & ANSWER
Slide 20: Appendices
20 APPENDICES
Slide 21: Appendix A - Reconciliation of Teleflex Gross Profit
21 Appendix A - Reconciliation of Teleflex Gross Profit
Slide 22: Appendix B - Reconciliation of Teleflex Selling, General and Administrative Expenses
22 Appendix B - Reconciliation of Teleflex Selling, General and Administrative Expenses
Slide 23: Appendix C - Reconciliation of Teleflex Operating Expenses
23 Appendix C - Reconciliation of Teleflex Operating Expenses
Slide 24: Appendix D - Special Charge Income Statement Classification Summary
24 Appendix D - Special Charge Income Statement Classification Summary
Slide 25: Appendix E - Quarter & Year-to-Date Reconciliation of Constant Currency Revenue Growth
25 Appendix E - Quarter & Year-to-Date Reconciliation of Constant Currency Revenue Growth
Slide 26: Appendix F - Fourth Quarter Income Statement from Continuing Operations
26 Appendix F - Fourth Quarter Income Statement from Continuing Operations Amounts in Millions, except per share
Slide 27: Appendix G - Fourth Quarter EPS Reconciliation from Continuing Operations
27 Appendix G - Fourth Quarter EPS Reconciliation from Continuing Operations In 2011, losses and other charges include costs attributed to a stock keeping unit ("SKU") rationalization to eliminate SKUs based on low sales volume or insufficient margins to help improve future profitability. The net of
Slide 28: Appendix H - Full Year Income Statement from Continuing Operations
28 Appendix H - Full Year Income Statement from Continuing Operations Amounts in Millions, except per share
Slide 29: Appendix I - Full Year EPS Reconciliation from Continuing Operations
29 Appendix I - Full Year EPS Reconciliation from Continuing Operations In 2011, losses and other charges include approximately $9.8 million, net of tax, or $0.24 per share, related to the loss on extinguishment of debt; approximately $3.5 million, net of tax, or $0.09 per share, in charges related
Slide 30: Appendix J - Year-to-Date Cash Flow Summary
30 Appendix J - Year-to-Date Cash Flow Summary ($ in Millions)
Slide 31: Appendix K - Quarter-to-Date Reconciliation of Critical Care Product Constant Currency Revenue Growth
31 Appendix K - Quarter-to-Date Reconciliation of Critical Care Product Constant Currency Revenue Growth
Slide 32: Appendix L - Quarter-to-Date Reconciliation of Regional Constant Currency Revenue Growth
32 Appendix L - Quarter-to-Date Reconciliation of Regional Constant Currency Revenue Growth
Slide 33: Appendix M - Reconciliation of 2012 Outlook Earnings per Share Guidance
33 Appendix M - Reconciliation of 2012 Outlook Earnings per Share Guidance Note: In 2012, special items include approximately $7.0 million, net of tax, or $0.17 per share related to the acceleration of an interest rate swap; and approximately $3.0 million, net of tax, or $0.08 per share related to f