Teleflex Incorporated · NYSE:TFX
Teleflex — Q2 2008 Earnings Presentation
31 slides from Teleflex's earnings presentation, Jul 29, 2008
Slide 1: Teleflex Incorporated Q2 2008 Financial Results
Teleflex Incorporated Q2 2008 Financial Results July 29, 2008 Exhibit 99.1
Slide 2: Forward-Looking Statements/Additional Notes
Forward-Looking Statements/Additional Notes This presentation and our discussion contain forward-looking information and statements including, but not limited to, such matters as expected synergies from acquisitions, business strategies, market trends, future business and financial performance, impa
Slide 3: 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 19203250
Slide 4: Jeff Black, Chairman and Chief Executive Officer
Jeff Black Chairman and Chief Executive Officer
Slide 5: Second Quarter Financial Highlights
Second Quarter Financial Highlights Strong performance from continuing operations: Sales increase 38% driven by acquisition Medical core growth 3%, Aerospace core growth 5% EPS excluding special charges of $1.05 - up 18% Operating margins before special charges of 15.9%, up 270 bps Medical & Aerospa
Slide 6: Medical Second Quarter Highlights
Medical Second Quarter Highlights Teleflex Medical Core growth of 3% on strong international and OEM sales Arrow product sales up 6% over prior year period Critical care - respiratory, anesthesia and urology sales up in EMEA, Asia/Latin America Surgical sales up across product lines in EMEA OEM - st
Slide 7: Medical Second Quarter Highlights
Medical Second Quarter Highlights Teleflex Medical FDA compliance program on schedule Accelerated spending on compliance to free up R&D resources On track to deliver $35 to $40 million in pre-tax synergies from Arrow integration in 2008 $70 to $75 million in annual pre-tax synergies from Arrow integ
Slide 8: Arrow Integration Progress
Arrow Integration Progress Completed activities to date: Consolidation/elimination of public company and corporate costs Realigned functional departments Focused R&D team Realigned European sales forces Created anesthesia/airway management sales team in U.S. Announced plans for product transfer, fac
Slide 9: Q2 Medical Revenue by Region & Product Summary
Q2 Medical Revenue by Region & Product Summary Note: Q2'07 excludes Arrow acquisition which occurred in Q4'07
Slide 10: Second Quarter Highlights Commercial and Aerospace
Second Quarter Highlights Teleflex Commercial Teleflex Aerospace Aerospace Core revenue growth of 5% Cargo aftermarket spare & repair sales increase positively impacting margins Narrow-body unit volume more than doubles Continue to invest in new platforms, capacity expansion Commercial Marine manage
Slide 11: Kevin Gordon, Executive Vice President and Chief Financial Officer
Kevin Gordon Executive Vice President and Chief Financial Officer
Slide 12: Three Month Summary from Continuing Operations
Three Month Summary from Continuing Operations
Slide 13: Three Month Summary from Continuing Operations
Three Month Summary from Continuing Operations Note: Q2'08 (gains)/losses and other charges includes integration costs of $2,357, net of tax
Slide 14: Year-to-Date Summary from Continuing Operations
Year-to-Date Summary from Continuing Operations
Slide 15: Year-to-Date Summary from Continuing Operations
Year-to-Date Summary from Continuing Operations Note: Year-to-date Q2'08 (gains)/losses and other charges includes integration costs of $2,564, net of tax
Slide 16: Medical Segment
Medical Segment Note: Year-to-date Operating Profit excludes $6.9M inventory step-up and $3.8M integration charges Critical Care Arrow adds revenues of $120 million New GPO contracts for Arrow CVC / PICC Pressure injectable CVC launch Respiratory sales up in EMEA, Asia & Latin America Anesthesia sal
Slide 17: Aerospace Segment
Cargo Handling Record aftermarket spare and repair sales Narrow-body unit volume more than doubles Nordisk acquisition adds $13M to revenues Airbus 330/340 system deliveries accelerated in 2008 will enhance core revenue growth First 747-8 to ship end of 2008 Repair Products and Services Core growth
Slide 18: Commercial Segment
Marine Revenues decline on weak markets Cost containment initiatives offset by negative currency impact Rigging Services Core growth of 12% Acquisition adds to growth Margin improvement due to mix Power Systems Continued weakness in truck APU order rate thru Q2 and technology investment in alternati
Slide 19: Year-to-Date Cash Flow From Continuing Operations
Year-to-Date Cash Flow From Continuing Operations ($ Millions) Capital Expenditures - $20.5 million; Dividends - $23.7 million Capital Expenditures - $17.8 Million; Dividends - $26.1 million Note: Q2'08 Year-to-Date Cash Flow from Operations excludes tax payments of $90M related to gain on sale of A
Slide 20: 2008 Outlook
Prior Estimate Low Prior Estimate High Current Estimate Low Current Estimate High Earnings per share from continuing operations including special charges $3.03 $3.30 $3.28 $3.45 Addback special charges1 $0.67 $0.60 $0.62 $0.55 Earnings per share from continuing operations before special charges $3.7
Slide 21: Jeff Black, Chairman and Chief Executive Officer
Jeff Black Chairman and Chief Executive Officer
Slide 22: Summary
Summary Building on strong first half New programs/products enhance Medical sales in 4Q Arrow integration on track to achieve 2008 synergies of $35 to $40 million Medical operating margins over 20% for the year Cargo systems delivery schedule ramps in 4Q Cautious on Commercial Marine outlook Rigging
Slide 23: Question and Answer Session
Question and Answer Session Teleflex
Slide 24: Appendices
Appendices Teleflex
Slide 25: Appendix A - QTD & YTD Reconciliation of Medical Operating Profit and Margins
Appendix A - QTD & YTD Reconciliation of Medical Operating Profit and Margins
Slide 26: Appendix B - QTD & YTD Reconciliation of Teleflex Gross Profit and Margins
Appendix B - QTD & YTD Reconciliation of Teleflex Gross Profit and Margins
Slide 27: Appendix C - QTD & YTD Reconciliation of Teleflex Operating Expenses
Appendix C - QTD & YTD Reconciliation of Teleflex Operating Expenses
Slide 28: Appendix D - Special Charge Income Statement Classification Summary
Appendix D - Special Charge Income Statement Classification Summary
Slide 29: Appendix E - QTD & YTD Reconciliation of Teleflex Cash Flow from Operations
Appendix E - QTD & YTD Reconciliation of Teleflex Cash Flow from Operations
Slide 30: Appendix F - Capital Structure
Appendix F - Capital Structure $ Millions
Slide 31: Appendix G - 2008 Outlook Assumptions
Annual effective tax rate: 27% +/- Capex: $50 - $55 million Depreciation & Amortization expense: $120 million +/- Favorable interest rates on floating rate borrowings Appendix G - 2008 Outlook Assumptions