17 slides from West Pharmaceutical Services's earnings presentation, Oct 31, 2013
Slide 1: Third-Quarter 2013 Analyst Conference Call
1 Speakers: Donald E. Morel, Jr. Chairman and Chief Executive Officer William J. Federici Senior Vice President and Chief Financial Officer All trademarks and registered trademarks are the property of West Pharmaceutical Services, Inc., unless noted otherwise. West Pharmaceutical Services, Inc. Thir
Slide 2: Cautionary Statement
2 Cautionary Statement Under the Private Securities Litigation Reform Act of 1995 This presentation and any accompanying management commentary contain “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements include, but are not li
Slide 3: Quarterly Highlights
3 Quarterly Highlights High-value packaging products lead sales growth Growth, mix add 100 basis-points to gross profit margin Improved SG&A efficiency 50% increase in adjusted diluted EPS Stock split took effect September 26, 2013
Slide 4: Third-Quarter Summary Results
4 Third-Quarter Summary Results $ millions, except earnings per-share (EPS) data (1) These are Non-GAAP measurements. See “Non-GAAP Financial Measures” and “Notes to Non-GAAP Financial Measures” (Slides 15-17), “Cautionary Statement” (Slide 2) and see “Non-GAAP Financial Measures” in today’s press r
Slide 5: Third-Quarter Operating Results
5 Third-Quarter Operating Results Overall sales growth 10.9% • Pharmaceutical Packaging Systems up 14.7% High-value products grew 23.4%, led by coated closures and Westar® Customer requirements accelerated sales into the quarter Backlog 12% higher than at September 30, 2012 • Pharmaceutical
Slide 6: Expansion and Product Development
6 Expansion and Product Development Geographic expansion: • China: Sales in Q3 were for customer sampling and validation Producing for first commercial sales, expected in Q4 • India plans revised Metals production in 2014 Global capacity utilization improvements expected to postpone elasto
Slide 7: 2013 Outlook
7 2013 Outlook Expect sales growth in 6-8% range, excluding currency PPS: • Narrowing annual revenue estimate • Some Q3 sales growth expected to limit opportunities in Q4 • Improved gross profit margins on mix, efficiency, price PDS: • Efficiencies, mix-shift expected to improve contract margi
Slide 8: 2014 and Long-term Outlook
8 2014 and Long-term Outlook Expect 2014 sales growth to be in the 6% to 8% range, ex-currency No fundamental changes in long-term growth strategies and drivers • Growth in high-value components • Efficiency in operations • Commercialize proprietary device products 2018 planning objective: Rev
Slide 9: Change in Consolidated Sales Third-Quarter 2012 to 2013
9 Change in Consolidated Sales Third-Quarter 2012 to 2013 ($ millions) $341.8 $27.2 $5.9 $4.9 $303.8 2012 Sales Volume & Mix Sales Price Currency 2013 Sales
Slide 10: Change in Consolidated Gross Profit Margin %
10 Change in Consolidated Gross Profit Margin % Third-Quarter 2012 to 2013 30.8% (0.1%) (0.1%) (1.3%) 1.2% 1.3% 29.8% 2013 2012
Slide 11: Change in SG&A Costs Third-Quarter 2012 to 2013
11 Change in SG&A Costs Third-Quarter 2012 to 2013 ($ millions) $56.1 $0.9 $1.5 $0.8 $0.8 $0.2 $53.7
Slide 12: Cash Flow Metrics
12 Cash Flow Metrics ($ millions) Nine Months Ended September 30, 2013 2012 Depreciation and amortization $63.1 $56.7 Operating cash flow $151.7 $117.6 Capital expenditures $113.1 $98.4
Slide 13: Summary Balance Sheet Information
13 Summary Balance Sheet Information ($ millions) As of September 30, 2013 December 31, 2012 Cash and cash equivalents $221.7 $161.9 Debt $400.0 $411.5 Equity $836.7 $728.9 Net debt to total invested capital† 17.6% 25.5% Working capital $396.7 $295.5 † Net debt to total invested capital is a Non-GAA
Slide 14: 2013 Full-year Financial Guidance
14 2013 Full-year Financial Guidance ($ millions, except EPS) Estimated 2013 Revenue(1) Estimated Gross Profit %(1) Pharmaceutical Packaging Systems Segment $1,000 - $1,010 35.7% to 36.2% Pharmaceutical Delivery Systems Segment $360 - $370 20.0% to 21.0% Consolidated $1,360 - $1,380 31.5% - 32.0% 20
Slide 15: Non-GAAP Financial Measures
15 Non-GAAP Financial Measures(1) Three Months Ended September 30, 2013 and 2012 (in millions, except per share data) (1) See “Notes to Non-GAAP Financial Measures” (Slides 16-17), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Three-
Slide 16: Notes to Non-GAAP Financial Measures
16 NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see today’s press release and Safe Harbor Statement. Today’s press release, these presentation materials and associated presentation use the following financial measures that have not been calculated in accordance with generally
Slide 17: Notes to Non-GAAP Financial Measures
17 NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see today’s press release and Safe Harbor Statement. Reconciliation of 2013 Adjusted Diluted EPS Guidance to 2013 Reported Guidance Full Year 2013 Guidance (1) (2) Adjusted diluted EPS guidance $1.58 to $1.63 2012 R&D tax credit