Slide 1: Teleflex Incorporated First Quarter 2005 Earnings Conference Call
Teleflex Incorporated First Quarter 2005 Earnings Conference Call
Slide 2: 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 3: Jeff Black, President and Chief Executive Officer
Jeff Black President and Chief Executive Officer
Slide 4: First Quarter Results
First Quarter Results Earnings from continuing operations - in line with plans for year Aerospace and Medical - double-digit operating profit improvement before restructuring and one-time charges Commercial operating profit declined as previously forecasted Accelerating cash flow 1Q 2005 1Q 2004 Ope
Slide 5: First Quarter Revenue
First Quarter Revenue Solid revenue growth 8% in Q1 (3% core growth) Orders for Teleflex overall up 11% Commercial 5% core revenue growth driven by marine OEM and industrial OEM products Automotive revenues decreased as planned Revenues down 3% on an absolute basis due primarily to divestitures Medi
Slide 6: 2005 Strategic Actions
2005 Strategic Actions Execution of restructuring and divestiture program (announced November 2004) Actively marketing automotive pedal systems business Facility consolidation plans continue on track - phased closures began in Q1 Benefit of restructuring actions expected in latter half of 2005
Slide 7: Restructuring Charges
Restructuring Charges First Quarter Restructuring Charges: Commercial Medical Aerospace Total
Slide 8: Portfolio Actions
Portfolio Actions Portfolio transition program Q1: Successful divestiture of Sermatech International (historical earnings of this business now reported as discontinued operations) Balance of 2005: Other businesses as appropriate
Slide 9: 2005 Outlook
2005 Outlook Core businesses performing well Commercial Moderate margin improvement 2004 divestitures impact top line Modest core revenue growth expectations Modest expectations from automotive Medical Strong and improving operating margins HudsonRCI integration ahead of schedule Phased restructurin
Slide 10: 2005 Outlook (Continued)
Range: $3.60 - $3.80 $2.76 - $3.00 2005 Outlook (Continued) Diluted earnings per share from continuing operations excluding special charges: Diluted earnings per share from continuing operations including special charges: Note: Outlook does not include gains, losses and other costs associated with f
Slide 11: Martin Headley, Executive Vice President and Chief Financial Officer
Martin Headley Executive Vice President and Chief Financial Officer
Slide 12: Q1 Summary of Continuing and Discontinued Operations
Q1 Summary of Continuing and Discontinued Operations
Slide 13: Restructuring and Divestiture Charges
$12.9 million of Q1 restructuring due to write down of net realizable value for pedal systems business Modest amount of restructuring recognized for continuing operations in Q1 as much of current activity was accrued in Q4 2004 Total charges, including discontinued ops, now expected in the $203 to $
Slide 14: Summary Financial Performance
Summary Financial Performance Solid revenue growth Stable gross margins and operating margins
Slide 15: 1Q 2005 - Strong Cash Flow
Continued careful management of working capital and capital expenditures Free cash flow reinvested in continued debt reduction 1Q 2005 - Strong Cash Flow
Slide 16: Asset Velocity
Asset Velocity Investment in inventory to support product line relocation
Slide 17: Strong Balance Sheet for Future Growth
Strong Balance Sheet for Future Growth
Slide 18: 1Q 2005 Results Commercial Segment
1Q 2005 Results Commercial Segment Revenues down 3% Down 10% due to 2004 divestitures Offset by core growth of 5% and 2% impact of currency Operating profits: Good operating results from OEM businesses Automotive as forecasted Significant improvement in alternative fuels business * Operating Profits
Slide 19: 1Q 2005 Results Medical Segment
1Q 2005 Results Medical Segment Revenues up 41% 7% core growth 30% acquisitions Gains in specialty devices, disposable medical products European sales strong Operating profits: HudsonRCI acquisition Core volume gains Modest impact of restructuring actions - major impact to come in 2H '05 * Operating
Slide 20: 1Q 2005 Results Medical Segment
1Q 2005 Results Medical Segment Revenues up 41% 7% core growth 30% acquisitions Gains in specialty devices, disposable medical products European sales strong Operating profits: HudsonRCI acquisition Core volume gains Modest impact of restructuring actions - major impact to come in 2H '05 * Operating
Slide 21: 1Q 2005 Results Aerospace Segment
- Revenues decline 5% Core growth in repairs New system sales for narrow and wide body cargo handling Revenues decline $9 million on wind-down of industrial gas turbine Adjusted operating profits: Pruning of problematic precision machined components business driving better operating results 1Q 2005
Slide 22: 2005 Plan
Deliver good operating results from continuing operations Continue transition to shared services model Position core businesses for growth Generate strong cash flow to invest in new opportunities Actions initiated in 2004 will drive strong financial results this year 2005 Plan