Slide 1: Teleflex Incorporated Third Quarter 2023 Earnings Conference Call
Teleflex Incorporated Third Quarter 2023 Earnings Conference Call
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) An audio replay of the call will be available beginning at 11:00 am Eastern Time on November 2, 2023 either on the Teleflex website or by telephone. The call c
Slide 3: Today's Speakers
Today’s Speakers Liam Kelly Chairman, President and CEO Thomas Powell Executive VP and CFO Lawrence Keusch VP, Investor Relations and Strategy Development 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 expectations that we will be able to leverage our urologist call point with respect to the Palette business and that the Palette business will provide us with access to radiati
Slide 5: Executive Overview
Executive Overview Liam Kelly - Chairman, President and CEO 5
Slide 6: Q3'23 Highlights
Q3'23 Highlights ◦ Q3'23 constant currency revenue grew 7.4% year-over-year Q3 Performance ◦ Q3'23 adjusted gross margin of 59.4% and adjusted operating margin of 27.2% Summary ◦ Q3'23 adjusted EPS of $3.64, an 11.3% increase year-over-year ◦ Increased 2023 constant currency revenue growth guidance
Slide 7: Q3'23 Segment Revenue Review
Q3'23 Segment Revenue Review Three Months Ended % Increase/ Decrease Reported Constant Currency Dollars in Millions October 1, 2023 September 25, 2022 Currency Impact Revenue Growth Growth Americas $428.2 $405.1 5.7% 0.2% 5.5% EMEA $142.7 $128.4 11.1% 7.1% 4.0% Asia $93.2 $82.0 13.6% (3.5)% 17.1% OE
Slide 8: Q3'23 Global Product Category Revenue Review
Q3'23 Global Product Category Revenue Review Three Months Ended % Increase/ Decrease Reported Constant Currency Dollars in Millions October 1, 2023 September 25, 2022 Currency Impact Revenue Growth Growth Vascular Access $169.9 $167.1 1.7% 1.4% 0.3% Interventional $134.1 $108.7 23.3% 0.9% 22.4% Anes
Slide 9: Acquisition of Palette Life Sciences AB
Acquisition of Palette Life Sciences AB TRANSACTION DETAILS • $600 million cash upfront payment • $50 million in contingent consideration payments upon the achievement of certain commercial milestones • Acquisition closed October 10, 2023 9 CAUTION: Federal (USA) law restricts these devices to sale
Slide 10: Acquisition of Palette Life Sciences AB: Key Takeaways
Acquisition of Palette Life Sciences AB KEY TAKEAWAYS Expands interventional urology portfolio into adjunctive therapy for prostate cancer • Barrigel™ Hyaluronic Acid Rectal Spacer is easily sculpted, highly visible on transrectal ultrasound (TRUS), biodegradable, reversible, and offers one-step ass
Slide 11: Clinical and Commercial Updates
Clinical and Commercial Updates PRODUCT LAUNCH Expanding Structural Heart portfolio • In the final stages of completion for the commercial launch for the Wattson™ Temporary Pacing Guidewire (“TPG”) • The Wattson™ TPG is a unique bipolar guidewire used specifically for TAVR and BAV procedures • Watts
Slide 12: Financial Overview
Financial Overview Thomas Powell - Executive VP and CFO 12
Slide 13: Q3'23 Financial Review
Q3'23 Financial Review ◦ Revenue increased 8.7% year-over-year on a GAAP basis Global revenue growth ◦ Revenue increased 7.4% year-over-year on a constant currency basis ◦ GAAP gross margin of 55.8% vs. 54.4% in the prior year period Gross margin ◦ Adjusted gross margin of 59.4%, up 70 bps year-over
Slide 14: Acquisition of Palette Life Sciences AB: Financial Guidance
Acquisition of Palette Life Sciences AB FINANCIAL GUIDANCE • On a standalone basis, Palette is expected to generate net sales of $56 million in 2023. For 2024, the acquired business is expected to deliver a high-teens to low 20% revenue growth profile. • Acquisition will be immediately accretive to
Slide 15: 2023 Financial Guidance Summary
2023 Financial Guidance Summary 2023 Guidance Low High GAAP Revenue Growth 6.25% 6.45% Impact of Foreign Exchange Rate Fluctuations (0.15)% (0.15)% Constant Currency Revenue Growth 6.40% 6.60% Adjusted Gross Margin 59.25% 59.75% Adjusted Operating Margin 26.25% 26.50% Adjusted EPS $13.30 $13.50 Adju
Slide 16: Key Takeaways
Key Takeaways Our diversified portfolio The solid third quarter We believe that Palette and global footprint performance and stable Life Sciences AB will be drove durable growth in to improving macro a meaningful contributor the third quarter. Our environment keeps us to our growth and execution rem
Slide 17: Thank You
Thank You 17 1717 Teleflex, the Teleflex logo, are trademarks or registered trademarks of Teleflex Incorporated or its affiliates, in the U.S. and/or other countries. © 2023 Teleflex Incorporated. All rights reserved. MCI-2021-0563.
Slide 18: Appendices
Appendices Veleflex:
Slide 19: 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 20: 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 21: Non-GAAP Adjustments
Non-GAAP Adjustments European medical device regulation - The European Union (“EU”) has adopted the EU Medical Device Regulation (“MDR”), which replaces the existing Medical Devices Directive (“MDD”) and imposes more stringent requirements for the marketing and sale of medical devices in the EU, inc
Slide 22: Appendix A1 – Reconciliation of Consolidated Statement of Income Items
Appendix A1 – Reconciliation of Consolidated Statement of Income Items (Dollars in millions, except per share data) Three Months Ended October 1, 2023 Selling, general Diluted Research and Effective earnings per Gross and Operating Income before Income tax development income tax share from margin ad
Slide 23: Appendix A2 – Reconciliation of Consolidated Statement of Income Items
Appendix A2 – Reconciliation of Consolidated Statement of Income Items (Dollars in millions, except per share data) Three Months Ended September 25, 2022 Diluted Selling, general Research and Effective earnings per Gross and Operating Income before Income tax development income tax share from margin
Slide 24: Appendix A3 – Reconciliation of Consolidated Statement of Income Items
Appendix A3 – Reconciliation of Consolidated Statement of Income Items (Dollars in millions, except per share data) Nine Months Ended October 1, 2023 Selling, general Diluted Research and Effective earnings per Gross and development Operating Income before Income tax income tax margin administrative
Slide 25: Appendix A4 – Reconciliation of Consolidated Statement of Income Items
Appendix A4 – Reconciliation of Consolidated Statement of Income Items (Dollars in millions, except per share data) Nine Months Ended September 25, 2022 Diluted Selling, general Research and Effective earnings per Gross and Operating Income before Income tax development income tax share from margin
Slide 26: Appendix A tickmarks
Appendix A tickmarks (A) Restructuring, restructuring related and impairment items – For the three months ended October 1, 2023, pre-tax restructuring charges were $0.2 million and restructuring related charges were $4.5 million. For the three months ended September 25, 2022, pre-tax restructuring c
Slide 27: Appendix B - 2023 Adj. Gross and Operating Margin Guidance Reconciliation
Appendix B - 2023 Adj. Gross and Operating Margin Guidance Reconciliation Low High Forecasted GAAP Gross Margin 55.30% 55.80% Estimated restructuring, restructuring related and impairment items 0.85% 0.85% Estimated acquisition, integration, and divestiture related items —% —% Estimated intangible a
Slide 28: Appendix C – Reconciliation of 2023 Adjusted Earnings Per Share Guidance
Appendix C – Reconciliation of 2023 Adjusted Earnings Per Share Guidance Low High Forecasted GAAP Diluted Earnings Per Share from continuing operations $7.95 $8.15 Estimated restructuring, restructuring related and impairment items, net of tax $0.61 $0.61 Estimated acquisition, integration, and dive
Slide 29: 2023 Segment Revenue Review
2023 Segment Revenue Review Nine Months Ended % Increase/ Decrease Reported Constant Currency Dollars in Millions October 1, 2023 September 25, 2022 Currency Impact Revenue Growth Growth Americas $1,264.7 $1,195.7 5.8% —% 5.8% EMEA $433.9 $410.5 5.7% 0.8% 4.9% Asia $258.6 $227.8 13.5% (5.9)% 19.4% O
Slide 30: 2023 Global Product Category Revenue Review
2023 Global Product Category Revenue Review Nine Months Ended % Increase/ Decrease Reported Constant Currency Dollars in Millions October 1, 2023 September 25, 2022 Currency Impact Revenue Growth Growth Vascular Access $521.3 $497.2 4.9% (0.4)% 5.3% Interventional $375.8 $319.9 17.5% (0.6)% 18.1% An
Slide 31: 2023 Financial Review - Nine Months Ended October 1, 2023
2023 Financial Review - Nine Months Ended October 1, 2023 ◦ Revenue increased 8.2% year-over-year on a GAAP basis Global revenue growth ◦ Revenue increased 8.7% year-over-year on a constant currency basis ◦ GAAP gross margin of 55.2% vs. 54.5% in the prior year period Gross margin ◦ Adjusted gross m