Slide 1: Teleflex Incorporated Second Quarter 2006 Earnings Conference Call
Teleflex Incorporated Second 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 97169452
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, Chairman and Chief Executive Officer
Jeff Black Chairman and Chief Executive Officer
Slide 5: Q2 2006 Financial Results at a Glance
Q2 2006 Financial Results at a Glance Revenues: $682.6 million, up 4% Core growth: 4% Income from continuing operations: $36.0 million, or 89 cents per share Income from continuing operations excluding special charges, loss on sale of assets, and tax benefit: $37.3 million, or 92 cents per share Cas
Slide 6: Q2 2006 Performance Factors
Q2 2006 Performance Factors Aerospace Segment revenues and operating profit ahead of expectations All three businesses perform well Commercial Segment revenues increase, operating profit relatively flat on a sequential basis $2 million charge for inventory shortfall Medical Segment good improvement
Slide 7: Second Half Outlook
Second Half Outlook Aerospace Segment: more cargo systems new build revenue, continued revenue growth but mix impact on margins Medical Segment: improvement sequentially through balance of the year Commercial Segment: seasonal downturn in Q3, strong rebound in Q4
Slide 8: 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 9: Martin Headley, Executive Vice President and Chief Financial Officer
Martin Headley Executive Vice President and Chief Financial Officer
Slide 10: Q2 2006 Summary Financial Results
Q2 2006 Summary Financial Results 4% core growth Positive core growth in Aerospace and Commercial Segments Aerospace Segment operating income up $5 million year over year Medical Segment - strong late-quarter performance
Slide 11: Q2 2006 Results - Aerospace Segment
Q2 2006 Results - Aerospace Segment + Core growth across all three businesses + Strong orders for cargo aftermarket parts in Q2 + Continued solid outlook for balance of 2006 and beyond Higher concentration of cargo systems new build revenue in Q3 Insourcing by key customers (beginning in Q2) Precisi
Slide 12: Q2 2006 Results - Medical Segment
Q2 2006 Results - Medical Segment + Better than expected recovery from operational issues offset modest volume declines and backorder + New product sales + OEM business - good demand for diagnostic/therapeutic devices offset by reduced demand for orthopedic instruments Operational issues Lower volum
Slide 13: Q2 2006 Results - Commercial Segment
Q2 2006 Results - Commercial Segment + Rising energy costs and emissions legislation increase demand for alternative fuel systems and auxiliary power units + Katrina repairs continue to drive demand for heavy duty rigging and cable + Good demand for automotive products in North America and Asia Mix
Slide 14: Asset Velocity
Asset Velocity Significant improvement in Q2 Asset velocity 16.1% at quarter end Note: Asset velocity is working capital (excluding cash, debt, and deferred taxes) as a percentage of annualized quarterly sales
Slide 15: Cash Flow
Cash Flow Second quarter cash flow from operations - solid rebound from first quarter low First quarter inventory and receivables spike in Aerospace Segment beginning to dissipate On target to hit 2006 cash flow from operations forecast of $300 million
Slide 16: Strong Balance Sheet for Future Growth
Strong Balance Sheet for Future Growth Strong well capitalized balance sheet
Slide 17: Teleflex 2006 Outlook
Teleflex 2006 Outlook Diluted earnings per share from continuing operations before restructuring and impairment charges, gain or loss on sale of assets and tax benefit: $3.75 to $3.90 Increase reflects lower expected tax rate in second half Restructuring charges and gain or loss on sale of assets: 4
Slide 18: Stock Buyback Update
Stock Buyback Update Authorization in place for a total of $140 million Stock buyback program extended to January 2007 Significant investment in stock buyback program to date 1,312,800 shares purchased $82.7 million invested
Slide 19: Second Half 2006 Objectives
Continue to improve Medical Segment execution Maintain consistent execution in Commercial Segment Continue to capitalize on cyclical upturn in Aerospace Segment Manage through seasonality in Q3 Invest in stock buyback program Expand acquisition pipeline Second Half 2006 Objectives
Slide 20: Question and Answer Session
Question and Answer Session
Slide 21: Appendix B - Summary from Continuing Operations, 2005
Appendix B - Summary from Continuing Operations, 2005
Slide 22: Appendix C - Reconciliation of Net Debt to Total Capital
Appendix C - Reconciliation of Net Debt to Total Capital
Slide 23: Appendix D - Reconciliation of EPS Guidance to GAAP Guidance
Appendix D - Reconciliation of EPS Guidance to GAAP Guidance before special charges and gain or loss Special charges and gain or loss on sale of assets Tax benefit Net earnings per share $3.75 - $3.90 $ 0.55 - $ 0.45 $0.12 $3.32 - $3.57