Slide 1: Teleflex Incorporated Third Quarter 2019 Earnings Conference Call
Teleflex Incorporated Third Quarter 2019 Earnings Conference Call 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 (855) 859-2056 or for international calls, (404) 537-3406, pass code number 1185417 2
Slide 3: Today's Speakers
Today’s Speakers Liam Kelly President and CEO Thomas Powell Executive Vice President and CFO Jake Elguicze Treasurer and Vice President, Investor Relations 3
Slide 4: Note on Forward-Looking Statements and Non-GAAP Financial Measures
Note on Forward-Looking Statements This presentation contains forward-looking statements, including, but not limited to, our expectation with respect to the timing for the full market release of the MANTATM Vascular Closure Device; forecasted 2019 GAAP and constant currency revenue growth, GAAP and
Slide 5: 3Q19 Highlights
3Q19 Highlights Revenue Highlights • As-reported revenue increased 6.3% versus 3Q18 • Constant currency revenue increased 8.0% versus 3Q18 • Lowered full year 2019 as-reported revenue growth guidance range • Raised full year 2019 constant currency revenue growth guidance range Broad Based Product Ca
Slide 6: Segment Revenue Review
Segment Revenue Review Total Constant Dollars Q3’19 Q3’18 Currency Revenue Currency in Millions Revenue Revenue Impact Growth Growth Americas $374.5 $338.7 10.6% (0.1%) 10.7% EMEA $140.5 $139.6 0.7% (4.4%) 5.1% Asia $77.9 $76.5 1.7% (3.3%) 5.0% OEM $55.4 $54.9 1.1% (0.8%) 1.9% TOTAL $648.3 $609.7 6.
Slide 7: Global Product Category Revenue Review
Global Product Category Revenue Review Total Constant Dollars Q3’19 Q3’18 Currency Revenue Currency in Millions Revenue Revenue Impact Growth Growth Vascular Access $148.7 $142.1 4.6% (1.5%) 6.1% Interventional $106.9 $100.0 6.9% (1.3%) 8.2% Anesthesia $87.1 $87.5 (0.5%) (2.0%) 1.5% Surgical $92.6 $
Slide 8: Product Updates: UroLift System
Product Updates UroLift® System KEY TAKEAWAYS UroLift Receives Innovation Award – August 7, 2019 • The UroLift System won the 2019 James & Wells Medical Technology Association of New Zealand (MTANZ) Innovation Award • The MTANZ Innovation Award recognizes products that significantly contribute to im
Slide 9: Product Updates: MANTA Vascular Closure Device
Product Updates MANTA™ Vascular Closure Device KEY TAKEAWAYS Product Description • The MANTA™ Device is the first commercially available biomechanical vascular closure device designed specifically for large bore femoral arterial access site closure1 • Simple deployment that addresses the challenges
Slide 10: 3Q19 Financial Review
3Q19 Financial Review Revenue of $648.3 million • Up 6.3% vs. prior year period on an as-reported basis • Up 8.0% vs. prior year period on a constant currency basis Gross Margin • GAAP gross margin of 57.9%, up 170 bps vs. prior year period • Adjusted gross margin of 58.6%, up 160 bps vs. prior year
Slide 11: 2019 Financial Outlook
2019 Financial Outlook 2019 Revenue Guidance • Lowered as-reported revenue growth guidance from a range of between 6% and 6.5% to a range of between 5.75% and 6% • Increased constant currency revenue growth guidance from a range of between 7.5% and 8% to a range of between 8% and 8.25% 2019 Gross Ma
Slide 12: Question and Answer Section
Question and Answer Section 12
Slide 13: Thank You
THANK YOU 13 Veleflex:
Slide 14: Appendices
Appendices Veleflex:
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures The presentation to which these appendices are attached and the following appendices include, among other things, tables reconciling the following applicable non-GAAP financial measures to the most comparable GAAP financial measure: • Constant currency revenue growth. Thi
Slide 16: Non-GAAP Adjustments
Non-GAAP Adjustments The following is an explanation of certain of the adjustments that are applied with respect to one or more of the non-GAAP financial measures that appear in the presentation to which these appendices are attached: Restructuring, restructuring related and impairment items - Restr
Slide 17: Appendix A – Reconciliation of Adjusted Gross Profit and Margin
Appendix A – Reconciliation of Adjusted Gross Profit and Margin (Dollars in Thousands) Three Months Ended Nine Months Ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 Teleflex gross profit as-reported $ 375,680 $ 342,573 $ 1,093,346 $ 1,018,621 Teleflex gross margin
Slide 18: Appendix B – Reconciliation of Adjusted Operating Profit and Margin
Appendix B – Reconciliation of Adjusted Operating Profit and Margin (Dollars in Thousands) (A) Restructuring, restructuring related and impairment items – For the three months ended September 29, 2019 pre-tax restructuring charges were $1.3 million, pre-tax restructuring related charges were $4.3 mi
Slide 19: Appendix C – Reconciliation of Adjusted Tax Rate
Appendix C – Reconciliation of Adjusted Tax Rate (Dollars in Thousands) Three Months Ended Nine Months Ended Incom e from Taxes on Incom e from Taxes on continuing incom e from continuing incom e from operations continuing operations continuing before taxes operations Tax rate before taxes operation
Slide 20: Appendix D – Reconciliation of Adjusted EPS, Three Months 2019
Appendix D – Reconciliation of Adjusted EPS from Continuing Operations Three Months Ended– September 29, 2019 (Dollars in Millions, except per share data) Selling, general Restructuring Diluted earnings Cost of Research and (Gain) loss on and and Incom e Incom e (loss) from per share from goods deve
Slide 21: Appendix E – Reconciliation of Adjusted EPS, Nine Months 2019
Appendix E – Reconciliation of Adjusted EPS from Continuing Operations Nine Months Ended–September 29, 2019 (Dollars in Millions, except per share data) Selling, general Restructuring Diluted earnings Cost of Research and (Gain) loss on and and Incom e Incom e (loss) from per share from goods develo
Slide 22: Appendix F – Reconciliation of Adjusted EPS, Three Months 2018
Appendix F – Reconciliation of Adjusted EPS from Continuing Operations Three Months Ended –September 30, 2018 (Dollars in Millions, except per share data) Selling, general Restructuring Diluted earnings Cost of Research and and and Incom e Incom e (loss) from per share from goods developm ent adm in
Slide 23: Appendix G – Reconciliation of Adjusted EPS, Nine Months 2018
Appendix G – Reconciliation of Adjusted EPS from Continuing Operations Nine Months Ended –September 30, 2018 (Dollars in Millions, except per share data) Selling, general Restructuring Diluted earnings Cost of Research and and and Incom e Incom e (loss) from per share from goods developm ent adm ini
Slide 24: Appendices D, E, F and G – tickmarks
Appendices D, E, F and G – tickmarks (A) Restructuring, restructuring related and impairment items – For the three months ended September 29, 2019, pre-tax restructuring charges were $1.3 million, and pre-tax restructuring related charges were $4.3 million; there were no pre-tax impairment charges.
Slide 25: Appendix H - Reconciliation of 2019 Revenue Guidance
Appendix H - Reconciliation of 2019 Revenue Guidance 2019 Guidance Low High Forecasted GAAP Revenue Growth 5.75% 6.00% Forecasted impact of foreign currency exchange rate fluctuations -2.25% -2.25% Forecasted Constant Currency Revenue Growth 8.00% 8.25% 25
Slide 26: Appendix I – Reconciliation of 2019 Adjusted Gross and Operating Margin Guidance
Appendix I – Reconciliation of 2019 Adjusted Gross and Operating Margin Guidance 2019 Guidance Low High Forecasted GAAP Gross Margin 57.25% 57.80% Estimated restructuring, restructuring related and impairment items 0.75% 0.70% Estimated acquisition, integration and divestiture related items 0.00% 0.
Slide 27: Appendix J – Reconciliation of 2019 Adjusted EPS Guidance
Appendix J – Reconciliation of 2019 Adjusted Earnings Per Share Guidance 2019 Guidance Low High Forecasted GAAP Diluted Earnings Per Share $9.85 $9.90 Estimated Restructuring, restructuring related and impairment items, net of tax $0.75 $0.76 Estimated acquisition, integration and divestiture relate
Slide 28: Appendix K – 2019 Financial Outlook Assumptions
Appendix K – 2019 Financial Outlook Assumptions Euro to U.S. Dollar exchange rate assumed to be approximately 1.12 for full year 2019 Adjusted weighted average shares expected to be approximately 47.1 million for full year 2019 2019 Calendar of shipping days: Q1’19 vs. Q1’18: no difference Q2’19 vs.
Slide 29: Appendix L – Teleflex Restructuring and Similar Cost Savings Initiatives Summary
Appendix L – Teleflex Restructuring and Similar Cost Savings Initiatives Summary In February 2019, we initiated a restructuring plan primarily involving the relocation of certain manufacturing operations to existing lower-cost locations and related workforce reductions (the “2019 Footprint realignme