Slide 1: Teleflex Incorporated Second Quarter 2005 Earnings Conference Call
Teleflex Incorporated Second Quarter 2005 Earnings Conference Call Exhibit 99.1
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 Half Summary
First Half Summary Restructuring/divestiture program delivering results First six months: $1.81 for diluted EPS from continuing operations excluding special charges Teleflex is on track to meet 2005 financial objectives First half milestones: Medical Segment restructuring ongoing; operating margins
Slide 5: Second Quarter Results
Second Quarter Results Excellent momentum exiting second quarter Medical - HudsonRCI integration delivering results Commercial - in line with expectations for the year Aerospace - turnaround, continued improvement Accelerating cash flow: Strong balance sheet Cash: $212.5 million Net debt to total ca
Slide 6: Portfolio Actions
Portfolio Actions Exits and divestitures: 2Q '04: Techsonic, National Strand, Uniflex 3Q '04: IGT parts product line, auto parts product line 4Q '04: Medical product line 1Q '05: IGT services, Sermatech, industrial cables product line, medical product lines 2Q '05: Agreement to sell automotive pedal
Slide 7: Summary
Summary Teleflex continues to make excellent progress on all fronts: Restructuring actions on plan and delivering results Exit/divestiture plan - winding down Core businesses performing well Strong financial results: Operating margins improving Balance sheet very strong at quarter end Cash flow acce
Slide 8: Martin Headley, Executive Vice President and Chief Financial Officer
Martin Headley Executive Vice President and Chief Financial Officer
Slide 9: Q2 Summary of Continuing and Discontinued Operations
Q2 Summary of Continuing and Discontinued Operations
Slide 10: Summary Financial Performance
Summary Financial Performance
Slide 11: Q2 2005 Results Medical Segment
Q2 2005 Results Medical Segment Revenues up 40% 4% core growth: Hudson strength - particularly in Europe Increased volume - respiratory care Increased sales of specialty devices for medical device manufacturers New product introductions continue to drive top line growth Operating profits: Up 62% Hud
Slide 12: Q2 2005 Results Commercial Segment
Q2 2005 Results Commercial Segment Revenues down 2% 1% core growth: Impact of divestitures (5%) Strong industrial OEM business New driver control and power and vehicle management products Operating profits: Shift in mix toward industrial markets adversely impacted margins Costs incurred on recently
Slide 13: Q2 2005 Results Aerospace Segment
Q2 2005 Results Aerospace Segment - Revenues up 9% 9% core growth: Orders up 15% on core business Cargo-loading systems deliveries on passenger to freighter conversions, new products Increased sales of precision- machined components for aircraft engines Operating profits: Moves from loss to profit E
Slide 14: Restructuring Charges
Restructuring Charges Second Quarter Restructuring Charges ($millions): Second Quarter Restructuring Charges ($millions): Commercial $ 1.7 Medical 4.6 Aerospace 0.4 Total $ 6.7 Overall program cost forecast unchanged at $203 million to $211 million Cash cost forecast reduced to $68 to $76 million (f
Slide 15: Cash Flow Continues to Accelerate
Cash Flow Continues to Accelerate... (Trailing 12 Mo. (ttm) Cash flow from continuing operations, $millions) Amounts exclude automotive pedals business, the Sermatech business divested in Q1 2005, and a small medical business which are reported as discontinued operations. These discontinued operatio
Slide 16: While CAPEX Moderates and Dividends Increase
....While CAPEX Moderates and Dividends Increase (Trailing 12 mo. CAPEX and Dividends, $ millions) Full year expectation: $70 - $75 million Full year expectation: $39 - $40 million Amounts exclude automotive pedals business, the Sermatech business divested in Q1 2005, and a small medical business wh
Slide 17: Strong Balance Sheet for Future Growth
Strong Balance Sheet for Future Growth Note: HudsonRCI acquisition closed in Q3 '04
Slide 18: Working Capital Management Continues to Improve
Working Capital Management Continues to Improve Note: Asset velocity is working capital as a percentage of annualized quarterly sales
Slide 19: Second Half Outlook
Second Half Outlook Key factors we are monitoring: Impact of restructuring program Strengthening dollar Raw material prices Marine/recreational business trends Automotive model year shift Seasonality in medical business Revised guidance: Diluted earnings per share from continuing operations excludin
Slide 20: Second Half Plan
Maintain focus on execution at core business units Deliver cost savings from manufacturing integration and facility consolidation Transition continues to shared services model Use cash/capacity to accelerate acquisition initiatives Continued incremental improvements in operating performance Hit fina
Slide 21: Appendix A - Reconciliation of diluted EPS from continuing operations
Appendix A - Reconciliation of diluted EPS from continuing operations before restructuring charges for first six months
Slide 22: Appendix B - Reconciliation of Net Debt to Capital Calculation
Appendix B - Reconciliation of Net Debt to Capital Calculation
Slide 23: Appendix C - Reconciliation of Trailing Twelve Month Cash Flow
Appendix C - Reconciliation of Trailing Twelve Month Cash Flow from Continuing Operations to Trailing Twelve Month Free Cash Flow