Slide 1: Teleflex Incorporated First Quarter 2006 Earnings Conference Call
Teleflex Incorporated First Quarter 2006 Earnings Conference Call Exhibit 99.1
Slide 2: Conference Call Logistics
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 43683247.
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation and our discussion contain forward-looking information and statements including, but not limited to, such matters as business strategies, market trends, future financial performance, forecast of diluted earnings per share, forecast of cash flow from opera
Slide 4: Jeff Black, President and Chief Executive Officer
Jeff Black President and Chief Executive Officer
Slide 5: Q1 2006 Financial Results at a Glance
Q1 2006 Financial Results at a Glance Revenues: $632 million, up 1% Core growth: 4% Income from continuing operations: $29 million, up 17% Income from continuing operations excluding special charges, gain on sale of assets, and options expense: $33 million, 81 cents per share Cash flow from operatio
Slide 6: Q1 2006 Segment Summary
Q1 2006 Segment Summary Medical operational issues and growth initiatives suppressed margins Medical outlook for balance of 2006 is solid; expect to return to 20% margins overall for the year Aerospace Segment outperformed plan All three businesses performing well Commercial Segment operating profit
Slide 7: Q2 2006 Objectives
Q2 2006 Objectives Execute on Medical Segment operational initiatives Continue Medical IT platform consolidation program Continue solid execution in Aerospace Segment Seasonal recovery of aftermarket marine business in Commercial Segment Execute on operational effectiveness initiatives in Commercial
Slide 8: Teleflex Returning Capital to Shareholders
Teleflex Returning Capital to Shareholders Significant investment in stock buyback program 279,400 shares purchased in Q1 2006 969,500 shares purchased to date $64.7 million invested in buyback to date Authorization in place for $140 million $10.1 million dividends paid Dividend action announced Div
Slide 9: Teleflex Moving Forward
Teleflex Moving Forward Enhance global presence Expand in new markets Leverage cost-effective manufacturing platforms Invest in new product development Focus on core growth Expand through acquisitions, partnerships New products, new growth platforms, new markets Continue to refine manufacturing plat
Slide 10: Martin Headley, Executive Vice President and Chief Financial Officer
Martin Headley Executive Vice President and Chief Financial Officer
Slide 11: Summary Financial Performance - Q1 2006
Summary Financial Performance - Q1 2006
Slide 12: Q1 2006 Results - Medical Segment
Q1 2006 Results - Medical Segment Revenues impacted by currency translation - $6.9 million Operating profit below plan for Q1 Currency - $1.6 million IT cost - $3.2 million Costs of expansion and operational inefficiencies in Medical OEM Outlook for 2006 remains solid
Slide 13: Q1 2006 Results - Commercial Segment
Q1 2006 Results - Commercial Segment Solid core revenue growth Marine OEM, new product contribution positive Slow marine aftermarket Industrial sales increase North American auto sales increase Decline in EU Auto market on lower sales in France Operating profit Q1 costs in new product production for
Slide 14: Q1 2006 Results - Aerospace Segment
Q1 2006 Results - Aerospace Segment Revenues up 13% Double digit increases in all three businesses Cargo handling systems improved on deliveries of wide body systems Operating profit Benefit of restructuring Increased volumes Positive order trend continues Strong backlog growth Note: Incremental $19
Slide 15: Asset Velocity
Asset Velocity Asset velocity - close to plan but impacted by inventory in Aerospace Segment Note: Asset velocity is working capital (excluding cash, debt, and deferred taxes) as a percentage of annualized quarterly sales
Slide 16: Cash Flow Overview
Cash Flow Overview Higher inventory and receivables in Aerospace Segment impacts first quarter cash flow from operations 2006 cash flow from operations expected to approach $300 million
Slide 17: Strong Balance Sheet for Future Growth
Strong Balance Sheet for Future Growth Balance sheet well capitalized, leverage remains near historic lows
Slide 18: Teleflex 2006 Outlook
Teleflex 2006 Outlook Diluted earnings per share from continuing operations before restructuring charges and options expense: $4.05 to $4.25 Non-cash expense related to accounting for stock options of $7 to $8 million pre-tax, or 12 to 14 cents per fully diluted share Restructuring charges: $13 to $
Slide 19: Q2 2006 Objectives
Re-establish sales momentum and margin expansion in Medical Segment Maintain consistent execution in Commercial Segment Continue to capitalize on cyclical upturn in Aerospace Segment Invest in stock buyback program Expand acquisition pipeline Q2 2006 Objectives
Slide 20: Question and Answer Session
Question and Answer Session
Slide 21: Appendix A - Reconciliation of Net Debt to Total Capital Calculation
Appendix A - Reconciliation of Net Debt to Total Capital Calculation