Slide 1: Teleflex Incorporated Second Quarter 2021 Earnings Conference Call
Teleflex Incorporated Second Quarter 2021 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 (investors link) An audio replay of the call will be available beginning at 11:00 am Eastern Time on July 29, 2021 either on the Teleflex website or by telephone. The call can be a
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 with respect to the commercialization of, and a decision on reimbursement with respect to, the UroLift® System in Japan; our forecasted 2021 GAAP and constant cur
Slide 5: Executive Overview
Executive Overview Liam Kelly Chairman, President and CEO 5
Slide 6: Q2'21 Highlights
Q2'21 Highlights • Q2'21 constant currency revenue growth showed continued sequential improvement on a day-sales adjusted basis Q4 Summary Q2 Performance Summary • Q2'21 adjusted gross and operating margins expanded significantly year-over-year • Q2'21 adjusted earnings per share increased 73.6% yea
Slide 7: Q2'21 Financial Results
Q2'21 Financial Results Revenue Highlights • Q2'21 GAAP revenue increased 25.8% vs. Q2'20 • Q2'21 constant currency revenue increased 21.0% vs. Q2'20 Global Product Revenue Drivers1 • Vascular Access revenue of $167.7 million, down 2.1% vs Q2'20 • Interventional Urology revenue of $92.2 million, up
Slide 8: Q2'21 Segment Revenue Review
Q2'21 Segment Revenue Review Reported Constant Dollars in Q2'21 Q2'20 Currency Revenue Currency Millions Revenue Revenue Impact Growth Growth Americas $414.8 $312.5 32.7% 0.9% 31.8% EMEA $157.1 $131.6 19.4% 11.0% 8.4% Asia $80.6 $67.1 20.2% 9.9% 10.3% OEM $61.0 $55.8 9.2% 2.3% 6.9% TOTAL $713.5 $567
Slide 9: Q2'21 Global Product Category Revenue Review
Q2'21 Global Product Category Revenue Review Reported Constant Dollars in Q2'21 Q2'20 Currency Revenue Currency Millions Revenue Revenue Impact Growth Growth Vascular Access $167.7 $164.9 1.7% 3.8% (2.1)% Interventional $112.1 $82.6 35.7% 4.8% 30.9% Anesthesia $95.4 $64.9 47.1% 8.3% 38.8% Surgical $
Slide 10: Clinical and Commercial Updates: UroLift System
Clinical and Commercial Updates Interventional Urology - UroLift® System KEY TAKEAWAYS 2021 National DTC Campaign Update ◦ Modest incremental investment for 2H ◦ Key performance metrics tracking as expected ◦ Builds upon successful 2020 campaign that doubled brand awareness for targeted men w/ BPH ◦
Slide 11: Clinical and Commercial Updates: UroLift Papers at EAU
Clinical and Commercial Updates Interventional Urology - UroLift® System KEY TAKEAWAYS UroLift System Papers Highlighted at European Association UroLift® System of Urology Meeting • Multiple real-world studies presented at EAU • A retrospective observational study presented was the largest U.S. heal
Slide 12: Respiratory Divestiture Overview
Respiratory Divestiture Overview Background • Cash proceeds were $286 million, reduced by $12 million of working capital not transferring to Medline • The divested Teleflex respiratory product lines generated $139 million in revenue in 2020, with 2021 net revenue contribution expected to be approxim
Slide 13: Financial Overview
Financial Overview Thomas Powell Executive VP and CFO 13
Slide 14: Q2'21 Financial Review
Q2'21 Financial Review Global revenue generation of $713.5 million • Revenue increased 25.8% vs. prior year period on an as-reported basis • Revenue increased 21.0% vs. prior year period on a constant currency basis Gross margin performance • GAAP gross margin of 55.7%, up 660 bps vs. prior year per
Slide 15: 2021 Financial Guidance Summary
2021 Financial Guidance Summary July Guidance April Guidance 2021 Guidance Low High Low High GAAP Revenue Growth 10.50% 11.75% 10.50% 11.75% Impact of Foreign Exchange Rate Fluctuations 2.00% 2.00% 2.00% 2.00% Constant Currency Revenue Growth 8.50% 9.75% 8.50% 9.75% Adjusted Gross Margin 59.25% 59.7
Slide 16: Key Takeaways
KEY TAKEAWAYS • Delivered a strong second quarter 2021 with revenue and adjusted earnings per share exceeding our expectations • Remain encouraged by our growth trajectory and confident in our outlook for the second half of 2021, assuming a stable environment • Maintained as reported and constant cu
Slide 17: Thank You
THANK YOU 17
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: Appendix A – Reconciliation of Adjusted Gross and Operating Margins, Income Tax and EPS
Appendix A – Reconciliation of Adjusted Gross and Operating Margins, Income Tax and EPS (Dollars in millions, except per share data) Three Months Ended June 27, 2021 Three Months Ended June 28, 2020 Income Income Diluted Diluted Gross Operating Before Income Tax Income Gross Operating Before Income
Slide 22: Appendix A tickmarks
Appendix A tickmarks A. Restructuring, restructuring related and impairment items – For the three months ended June 27, 2021, pre-tax restructuring charges were $4.8 million; pre-tax restructuring related charges were $8.0 million; and pre-tax impairment charges were $6.7 million. For the three mont
Slide 23: Appendix B – Restructuring and Other Similar Cost Savings Initiatives
Appendix B – Restructuring and Other Similar Cost Savings Initiatives Actual Results through Estimated Dollars in Millions Estimated Total December 31, 2020 remaining Restructuring charges - ongoing restructuring plans $102 - $118 $89 $13 - $29 Restructuring charges - Respiratory divestiture plan 5-
Slide 24: Appendix B – Disclosure
Appendix B – Disclosure Respiratory divestiture plan During the second quarter of 2021, in connection with our divestiture of a significant portion of our respiratory business, we committed to a restructuring plan designed to separate the manufacturing operations that will be transferred to Medline,
Slide 25: Appendix C – Year-to-Date GPO and IDN Review
Appendix C – June 27, 2021 Year-to-Date GPO and IDN Review Group Purchasing Organization Update Q1’21 Q2'21 Renewed agreements 6 9 New agreements 1 0 Existing agreements lost 1 1 IDN Update Q1’21 Q2'21 Renewed agreements 13 8 New agreements 7 13 Existing agreements lost 0 0 25
Slide 26: Appendix D - 2021 Adj. Gross Margin Guidance Reconciliation
Appendix D - 2021 Adj. Gross Margin Guidance Reconciliation 2021 Guidance Low High Forecasted GAAP Gross Margin 54.95% 55.60% Estimated restructuring, restructuring related and impairment items 1.05% 1.00% Estimated acquisition, integration, and divestiture related items 0.20% 0.15% Estimated intang
Slide 27: Appendix E – Reconciliation of 2021 Adjusted EPS Guidance
Appendix E – Reconciliation of 2021 Adjusted Earnings Per Share Guidance 2021 Guidance Low High Forecasted GAAP Diluted Earnings Per Share from continuing operations $9.50 $9.60 Estimated restructuring, restructuring related and impairment items, net of tax $0.95 $0.96 Estimated acquisition, integra
Slide 28: Appendix F – Revenue Schedules for Divested Respiratory Assets
Appendix F – Revenue Schedules for Divested Respiratory Assets Divested respiratory ($000s) As Reported Adjusted business 2019 Q1 613.6 33.6 580.0 Q2 652.5 32.4 620.1 Q3 648.3 30.1 618.2 Q4 681.0 33.9 647.1 FY $2,595.4 $130.0 $2,465.4 2020 Q1 630.6 36.7 593.9 Q2 567.0 35.8 531.2 Q3 628.3 29.8 598.5