Slide 1: Teleflex Incorporated Third Quarter 2006 Earnings Conference Call
Teleflex Incorporated Third 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 35748260
Slide 3: Forward-Looking Statements and Other Information
Forward-Looking Statements and Other Information 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 o
Slide 4: Jeff Black, Chairman and Chief Executive Officer
Jeff Black Chairman and Chief Executive Officer
Slide 5: Q3 2006 Financial Results at a Glance
Q3 2006 Financial Results at a Glance Revenues: $639.1 million, up 9% Core growth: 6% Income from continuing operations: $36.3 million, or $0.92 per share Diluted EPS up 6% from Q3 2005 Income from continuing operations excluding special charges, gain on sale of assets: $38.0 million, or $0.96 per s
Slide 6: Fourth Quarter Outlook
Fourth Quarter Outlook Maintaining view of 2006 earnings performance Medical Segment: Seasonal revenue uptick, modest sequential margin expansion Commercial Segment: Continued good execution, continued softness in auto and marine markets, results in line with plan Aerospace Segment: End markets rema
Slide 7: Martin Headley, Executive Vice President and Chief Financial Officer
Martin Headley Executive Vice President and Chief Financial Officer
Slide 8: Q3 2006 Summary Financial Results
Q3 2006 Summary Financial Results 6% core growth Positive core growth in all three business segments Top line growth and margin expansion drive 6% increase in adjusted income
Slide 9: Q3 2006 Results - Medical Segment
Q3 2006 Results - Medical Segment + Solid recovery to 20%+ operating margins + European sales + OEM business - specialty devices + New products $2.2 million IT costs in Q3 ($8.6 million YTD)
Slide 10: Q3 2006 Results - Commercial Segment
Q3 2006 Results - Commercial Segment + Continued momentum for alternative fuel systems and auxiliary power units + Katrina repairs continue Push-outs and production schedule changes in automotive business Marine market remains soft
Slide 11: Q3 2006 Results - Aerospace Segment
Q3 2006 Results - Aerospace Segment + Continued positive topline and operating profit growth + Cargo system installs drive future aftermarket revenues Margin contraction from higher concentration of wide body installs Customer insourcing initiatives
Slide 12: Asset Velocity
Asset Velocity Asset velocity 16.6% at quarter end Long term target - asset velocity below 15% Note: Asset velocity defined as working capital (excluding cash, debt, and deferred taxes) as a percentage of annualized quarterly sales
Slide 13: Cash Flow
Cash Flow Strong cash flow Q3 - continue to catch up from first quarter low On target to hit 2006 cash flow from operations forecast of approximately $300 million
Slide 14: Cash Flow Conversion - Q3
Cash Flow Conversion - Q3 176% 152% Adjusted operating income defined as income from continuing operations excluding special charges CAPEX Amounts: Q3 2005: $19.3 million Q3 2006: $14.2 million ($ mil)
Slide 15: Cash Flow Conversion - YTD
Cash Flow Conversion - YTD 158% 183% ($ mil) Adjusted operating income defined as income from continuing operations excluding special charges CAPEX Amounts: YTD 2005: $45.7 million YTD 2006: $42.3 million
Slide 16: Strong Balance Sheet for Future Growth
Strong Balance Sheet for Future Growth Strong, well capitalized balance sheet $140 million stock buyback completed in third quarter 2,317,347 shares purchased
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 Special charges: 35 cents to 45 cents per fully diluted share Tax benefit (recognized in second quarter): $4.8 milli
Slide 18: Teleflex Today
Teleflex Today Each business segment well-positioned Current growth drivers Future growth plans Diversified manufacturing platform Strong management teams Solid capital base, debt capacity Strong cash flow generation Multiple options for adding shareholder value Acquisitions Return of capital to sha
Slide 19: Question and Answer Session
Question and Answer Session
Slide 20: Appendix A - Summary from Continuing Operations, 2006
Appendix A - Summary from Continuing Operations, 2006
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, one-time tax benefit, and gain or loss Special charges and gain or loss on sale of assets Tax benefit Net earnings per share $3.75 - $3.90 $ 0.45 - $ 0.35 $0.12 $3.42 - $3.67