Slide 1: Teleflex Incorporated Second Quarter 2019 Earnings Conference Call
Teleflex Incorporated Second Quarter 2019 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 8346258 2
Slide 3: Today's Speakers
Today’s Speakers Liam Kelly President and CEO Thomas Powell Executive Vice President and CFO Jake Elguicze Treasurer and Vice President, Investor Relations 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, forecasted 2019 GAAP and constant currency revenue growth, GAAP and adjusted gross and operating profit and margins and GAAP and adjusted diluted earnings per share and the items
Slide 5: 2Q19 Highlights
2Q19 Highlights Revenue Highlights • As-reported revenue increased 7% versus 2Q18 • Constant currency revenue increased 9.6% versus 2Q18 • One less shipping day negatively impacted constant currency revenue growth by 1.2% • Increased full year 2019 as-reported and constant currency revenue growth gu
Slide 6: Segment Revenue Review
Segment Revenue Review Total Constant Dollars Q2’19 Q2’18 Currency Sales Currency in Millions Revenue Revenue Impact Growth Growth Americas $373.8 $331.5 12.8% (0.3%) 13.1% EMEA $147.1 $153.4 (4.2%) (6.1%) 1.9% Asia $75.2 $72.4 3.9% (6.1%) 10.0% OEM $56.4 $52.6 7.3% (1.2%) 8.5% TOTAL $652.5 $609.9 7
Slide 7: Global Product Category Revenue Review
Global Product Category Revenue Review Total Constant Dollars Q2’19 Q2’18 Currency Sales Currency in Millions Revenue Revenue Impact Growth Growth Vascular Access $153.6 $140.2 9.6% (2.4%) 12.0% Interventional $104.8 $98.2 6.7% (2.1%) 8.8% Anesthesia $85.7 $89.3 (4.0%) (3.1%) (0.9%) Surgical $95.6 $
Slide 8: Product Updates
Product Updates UroLift® System KEY TAKEAWAYS UroLift Coverage by Anthem – June 13, 2019 • Anthem BCBS, one of the nation’s leading health insurance providers, revised their Surgical and Minimally Invasive BPH medical policy to provide coverage for UroLift • UroLift has now achieved 100% Medicare ad
Slide 9: 2Q19 Financial Review
2Q19 Financial Review Revenue of $652.5 million • Up 7% vs. prior year period on an as-reported basis • Up 9.6% vs. prior year period on a constant currency basis Gross Margin • GAAP gross margin of 57.2%, up 70 bps vs. prior year period • Adjusted gross margin of 57.7%, up 60 bps vs. prior year per
Slide 10: 2019 Financial Outlook
2019 Financial Outlook 2019 Revenue Guidance • Increased as-reported revenue growth guidance from a range of between 5% and 6% to a range of between 6% and 6.5% • Increased constant currency revenue growth guidance from a range of between 6% and 7% to a range of between 7.5% and 8% 2019 Gross Margin
Slide 11: Question and Answer Section
Question and Answer Section 11
Slide 12: Thank You
THANK YOU 12 Veleflex:
Slide 13: Appendices
Appendices Veleflex:
Slide 14: 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 15: 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 - Rest
Slide 16: Appendix A – Reconciliation of Adjusted Gross Profit and Margin Dollars
Appendix A – Reconciliation of Adjusted Gross Profit and Margin Dollars in Thousands Three Months Ended Six Months Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 Teleflex gross profit as-reported $ 372,924 $ 344,778 $ 717,666 $ 676,048 Teleflex gross margin as-reported 57.2% 56.5% 56.7%
Slide 17: Appendix B – Reconciliation of Adjusted Operating Profit and Margin Dollars
Appendix B – Reconciliation of Adjusted Operating Profit and Margin Dollars in Thousands Three Months Ended Six Months Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 Teleflex income from continuing operations before interest, loss on extinguishment of debt and taxes $ 107,458 $ 33,490 $
Slide 18: Appendix C – Reconciliation of Adjusted Tax Rate
Appendix C – Reconciliation of Adjusted Tax Rate Dollars in Thousands Teleflex Incorporated GAAP to Non-GAAP Tax Rate Reconciliation Three Months Ended Six Months Ended Incom e from Taxes on Incom e from Taxes on continuing incom e from continuing incom e from operations continuing operations contin
Slide 19: Appendix D – Reconciliation of Adjusted EPS, Three Months Ended June 30, 2019
Appendix D – Reconciliation of Adjusted EPS from Continuing Operations Three Months Ended– June 30, 2019 Dollars in Millions, except per share data Three Months Ended June 30, 2019 Selling, general Restructuring Diluted earnings Cost of Research and and and Incom e Incom e (loss) from per share from
Slide 20: Appendix E – Reconciliation of Adjusted EPS, Six Months Ended June 30, 2019
Appendix E – Reconciliation of Adjusted EPS from Continuing Operations Six Months Ended– June 30, 2019 Dollars in Millions, except per share data Six Months Ended June 30, 2019 Selling, general Restructuring Net incom e (loss) Diluted earnings Cost of Research and (Gain) loss on and and Incom e attr
Slide 21: Appendix F – Reconciliation of Adjusted EPS, Three Months Ended July 1, 2018
Appendix F – Reconciliation of Adjusted EPS from Continuing Operations Three Months Ended – July 1, 2018 Dollars in Millions, except per share data Three Months Ended July 1, 2018 Selling, general Restructuring Diluted earnings Shares used in Cost of Research and and and Incom e Incom e (loss) from
Slide 22: Appendix G – Reconciliation of Adjusted EPS, Six Months Ended July 1, 2018
Appendix G – Reconciliation of Adjusted EPS from Continuing Operations Six Months Ended – July 1, 2018 Dollars in Millions, except per share data Six Months Ended July 1, 2018 Selling, general Restructuring Net incom e (loss) Diluted earnings Cost of Research and and and Incom e attributable to com
Slide 23: Appendices D, E, F and G – tickmarks
Appendices D, E, F and G – tickmarks (A) Restructuring, restructuring related and impairment items - For the three months ended June 30, 2019 pre-tax restructuring charges reflected a net restructuring credit of $2.2 million, primarily related to changes in estimates with respect to termination bene
Slide 24: Appendix H - Reconciliation of 2019 Revenue Guidance
Appendix H - Reconciliation of 2019 Revenue Guidance 2019 Guidance Low High Forecasted GAAP Revenue Growth 6.0% 6.5% Estimated impact of foreign currency exchange rate fluctuations (1.5%) (1.5%) Forecasted Constant Currency Revenue Growth 7.5% 8.0% 24
Slide 25: Appendix I – Reconciliation of 2019 Adjusted Gross and Operating Margin Guidance
Appendix I – Reconciliation of 2019 Adjusted Gross and Operating Margin Guidance 2019 Guidance Low High Forecasted GAAP Gross Margin 57.20% 57.75% Estimated restructuring, restructuring related and impairment items 0.80% 0.75% Estimated acquisition, integration and divestiture related items 0.00% 0.
Slide 26: Appendix J – Reconciliation of 2019 Adjusted EPS Guidance
Appendix J – Reconciliation of 2019 Adjusted Earnings Per Share Guidance 2019 Guidance Low High Forecasted GAAP Diluted Earnings Per Share $6.82 $6.94 Estimated Restructuring, restructuring related and impairment items, net of tax $0.83 $0.86 Estimated acquisition, integration and divestiture relate
Slide 27: Appendix K – 2019 Financial Outlook Assumptions
Appendix K – 2019 Financial Outlook Assumptions Euro to U.S. Dollar exchange rate assumed to be approximately 1.136 for full year 2019 Adjusted weighted average shares expected to be approximately 47.1 million for full year 2019 2019 Calendar of shipping days: Q1’19 vs. Q1’18: no difference Q2’19 vs
Slide 28: Appendix L – Teleflex Restructuring and Similar Cost Savings Initiatives Summary
Appendix L – Teleflex Restructuring and Similar Cost Savings Initiatives Summary In February 2019, we initiated a restructuring plan primarily involving the relocation of certain manufacturing operations to existing lower-cost locations and related workforce reductions (the “2019 Footprint realignme