Slide 1: Teleflex Incorporated First Quarter 2014 Earnings Conference Call
TELEFLEX INCORPORATED FIRST QUARTER 2014 EARNINGS CONFERENCE CALL Exhibit 99.1
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 888-286-8010 or for international calls, 617- 801-6888, pass code number 11286884
Slide 3: Introductions
Benson Smith Chairman, President and CE O Thomas Powell Executive Vice President and CF O Jake Elguicze Treasurer and Vice President of Investor Relations Introductions
Slide 4: Forward-Looking Statements/Additional Notes
Forward-Looking Statements/Additional Notes This presentation and our discussion contain forward-looking information and statements including, but not limited to, the expected accretive impact of our acquisition of Mayo Healthcare Pty Ltd.; our expectations that actions related to our announced rest
Slide 5: First Quarter 2014 Highlights
FIRST QUARTER 2014 HIGHLIGHTS
Slide 6: First Quarter Highlights
First Quarter Highlights First quarter constant currency revenue growth and adjusted earnings per share achievement exceeded internal expectations Revenue of $438.5 million, up 6.5% vs. prior year period on an as- reported basis; up 6.0% vs. prior year period on a constant currency basis Adjusted EP
Slide 7: First Quarter Highlights
First Quarter Highlights Improvement in the average selling prices of products contributes 108 bps of top-line growth in Q1’14 compared to Q1’13 New product introductions contribute 78 bps of top-line growth in Q1’14 compared to Q1’13 Continue to expand GPO & IDN relationships • 5 new agreements (2
Slide 8: First Quarter Highlights: Vidacare contribution
First Quarter Highlights Vidacare contributes 4.9% to Teleflex’s constant currency revenue growth • Q1’14 revenue of $20.2 million, ahead of initial internal expectations • Q1’14 revenue up ~ 24% versus Q1’13 on an as-reported basis • Integration activities on schedule • Continue to invest in additi
Slide 9: EZ-IO Vascular Access System
EZ-IO® provides the medical professional immediate vascular access to the central circulation within seconds, delivering medications, intravenous fluids and blood products to adult and pediatric patients alike. PRODUCT DESCRIPTION PRODUCT UPDATE 510(k) clearance received for restated Indications for
Slide 10: Mayo Healthcare Pty Ltd.
Mayo Healthcare Pty Ltd. • Accretive, all-cash acquisition of one of Australia’s largest medical device distributors, completed in February 2014 • Contributed 99 bps to Teleflex’s constant currency revenue growth in Q1; mixture of additional volume and improved pricing • Integration activities on sc
Slide 11: Restructuring Plan to Improve Cost Structure Announced
Restructuring Plan to Improve Cost Structure Announced • Plan developed in response to continuing cost pressures in the healthcare industry and designed to enhance our competitive position and improve longer- term profitability • Focused on the consolidation of operations and a related reduction in
Slide 12: First Quarter 2014 Financial Review
FIRST QUARTER 2014 FINANCIAL REVIEW
Slide 13: Financial Results
Financial Results Revenue of $438.5 million • Up 6.5% vs. prior year period on an as-reported basis • Up 6.0% vs. prior year period on a constant currency basis Adjusted gross margin of 50.4% • Up 161 bps vs. prior year period Adjusted operating margin excluding amortization expense of 18.9%, up 113
Slide 14: First Quarter 2014 Segment Revenue Review
FIRST QUARTER 2014 SEGMENT REVENUE REVIEW
Slide 15: Segment Revenue Review
Q1’14 Q1’13 Constant Currency Revenue Commentary Segment Revenue Review Vascular N.A: $62.5 million, up 10.8% Anesthesia/Respiratory N.A: $54.7 million, down 5.6% Surgical N.A: $35.2 million, down 3.0% EMEA: $150.2 million, up 2.5% Asia: $49.6 million, up 20.3% OEM: $33.2 million, up 5.3% All Other:
Slide 16: Post First Quarter 2014 Events
POST FIRST QUARTER 2014 EVENTS
Slide 17: Vidacare Integration
Vidacare Integration • In April, we integrated Vidacare into the existing Teleflex legal entity structure • In connection with this integration, we restructured our foreign holdings which enabled us to efficiently repatriate $230 million of cash • On April 28 th we used the repatriated cash to parti
Slide 18: Restructuring Plan
Restructuring Plan Aggregate pre-tax charges of approximately $42 to $53 million , of which approximately $32 to $40 million will result in future cash outlays • pre-tax charges of approximately $22 to $23 million , of which approximately $9 to $11 million will result in cash outlays Aggregate capit
Slide 19: 2014 Financial Outlook
2014 FINANCIAL OUTLOOK
Slide 20: 2014 Financial Outlook
2014 Financial Outlook Constant currency revenue growth expected to be between 7% and 9% • Full year impact of Vidacare and distributor - to - direct conversions, both completed and planned to be completed in 2014 • Growth from new product pipeline comparable to 2012-2013 levels • Assumption of mode
Slide 21: 2014 Financial Outlook
2014 Financial Outlook Adjusted operating margin excluding intangible amortization expense expected to be between 20% and 21% • Year - over - year gross margin gains tempered by investment in distributor - to - direct strategy and Vidacare’s higher relative SG&A Adjusted earnings per share anticipat
Slide 22: Question & Answer
QUESTION & ANSWER
Slide 23: Appendices
APPENDICES
Slide 24: Appendix A – Reconciliation of Segment Constant Currency Revenue Growth
Appendix A – Reconciliation of Segment Constant Currency Revenue Growth Dollars in Millions March 30, 2014 March 31, 2013 Constant Currency Currency Total Vascular North America 62.5 $ 56.7 $ 10.8% (0.5%) 10.3% Anesthesia/Respiratory North America 54.7 58.2 (5.6%) (0.3%) (5.9%) Surgical North Americ
Slide 25: Appendix B – Reconciliation of Constant Currency Revenue Growth
Appendix B – Reconciliation of Constant Currency Revenue Growth Dollars in Millions Year-over- year growth Three Months Ended March 31, 2013 Revenue As-Reported $411.9 Foreign Currency 1.9 0.47% Vidacare 20.2 4.90% Mayo 4.1 0.99% All other 0.5 0.11% Three Months Ended March 30, 2014 Revenue As-Repor
Slide 26: Appendix C – Reconciliation of Teleflex Gross Profit and Margin
Appendix C – Reconciliation of Teleflex Gross Profit and Margin Note: In 2013, losses and other charges primarily relate to acquisition and integration costs. March 30, 2014 March 31, 2013 Teleflex gross profit as-reported 221,159 $ 200,520 $ Teleflex gross margin as-reported 50.4% 48.7% Losses and
Slide 27: Appendix D – Reconciliation of Teleflex Operating Profit and Margin
Appendix D – Reconciliation of Teleflex Operating Profit and Margin Note: In 2014, losses and other charges primarily relate to the reversal of contingent consideration liabilities; and acquisition and integration costs. In 2013, losses and other charges primarily relate to the reversal of contingen
Slide 28: Appendix G – Reconciliation of Teleflex Tax Rate
Appendix G – Reconciliation of Teleflex Tax Rate Dollars in Thousands Three Months Ended March 30, 2014 Income from continuing operations before taxes Taxes on income from continuing operations Tax rate GAAP basis $43,803 $8,534 19.5% Restructuring and impairment charges 7,780 1,072 Losses and other
Slide 29: Appendix H – Reconciliation of 2014 Constant Currency Revenue Growth Guidance
Appendix H – Reconciliation of 2014 Constant Currency Revenue Growth Guidance Low High Forecasted GAAP Revenue Growth 6.0% 8.0% Estimated impact of foreign currency fluctuations 1.0% 1.0% Forecasted Constant Currency Revenue Growth 7.0% 9.0%
Slide 30: Appendix I – Reconciliation of 2014 Gross Margin Guidance
Appendix I – Reconciliation of 2014 Gross Margin Guidance Note: In 2014, losses and other charges relate to expenses associated with the Restructuring Plan approved by the Board of Directors on April 28, 2014. Low High GAAP Gross Margin 51.4% 51.8% Losses and other charges 0.65% 0.70% Adjusted Gross
Slide 31: Appendix J – Reconciliation of 2014 Operating Margin Guidance
Appendix J – Reconciliation of 2014 Operating Margin Guidance Note: In 2014, losses and other charges include expenses associated with the Restructuring Plan approved by the Board of Directors on April 28, 2014, acquisition costs and the reversal of contingent consideration liabilities. Low High GAA
Slide 32: Appendix K – Reconciliation of 2014 Adjusted Earnings per Share Guidance
Appendix K – Reconciliation of 2014 Adjusted Earnings per Share Guidance Low High Forecasted diluted earnings per share attributable to common shareholders $3.40 $3.55 Restructuring, impairment charges, and special items, net of tax $0.88 $0.93 Intangible amortization expense, net of tax $0.90 $0.90