Slide 1: Teleflex Incorporated Q2 2007 Financial Results
Teleflex Incorporated Q2 2007 Financial Results July 31, 2007 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 business strategies, market trends, future financial performance, forecast of diluted earnings per share, forecast of cas
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 60978925
Slide 4: Jeff Black, Chairman and Chief Executive Officer
Jeff Black Chairman and Chief Executive Officer
Slide 5: Second Quarter Overview
Second Quarter Overview Solid quarter, continued positive momentum Significant improvements in year-over-year operating profits and margins Revenue growth and good cash flow Continued return of capital to shareholders Stock buyback program Dividend declared Teleflex positioned for growth
Slide 6: Financial Highlights From Continuing Operations
Financial Highlights From Continuing Operations ($ millions, except per share data) Q2 2007 Six Mos. 2007 Revenues $680 + 5% Core growth flat $1,347 + 8% 4% core growth GAAP income from continuing operations $43 + 26% $86 + 40% Adjusted income from continuing operations $45 DEPS $1.14 +31% $88 DEPS
Slide 7: Business Dynamics
Business Dynamics Teleflex Medical Teleflex Commercial Teleflex Aerospace Commercial: International truck and bus remains strong North American transportation market softening Marine aftermarket and international up; OEM flat; new products providing traction Tough automotive market continues Medical
Slide 8: Teleflex Second Half Objectives
Teleflex Second Half Objectives Well-executed launch of Medical Segment IT platform consolidation in early Q4 Continue solid execution in Aerospace Segment Operational effectiveness initiatives in Commercial Segment to maintain margins in tough end market Close Arrow International acquisition and qu
Slide 9: Kevin Gordon, Executive Vice President and Chief Financial Officer
Kevin Gordon Executive Vice President and Chief Financial Officer
Slide 10: Summary Second Quarter Financial Results From Continuing Operations
Summary Second Quarter Financial Results From Continuing Operations ($ millions, except per share data) Q2 '07 Q2 '06 Revenues $679.7 $650.2 + 4.5% Gross profit $212.8 $196.9 + 8.0% Gross profit margin 31.3% 30.3% +100bps Adjusted operating income $75.8 $69.6 + 8.9% Adjusted net income $45.1 $35.3 +
Slide 11: Summary Six Month Financial Results From Continuing Operations
Summary Six Month Financial Results From Continuing Operations ($ millions, except per share data) Six Mos. 2007 Six Mos. 2006 Revenues $1,347.1 $1,250.1 + 7.8% Gross profit $422.2 $375.9 + 12.3% Gross profit margin 31.3% 30.1% + 120bps Adjusted operating income $154.4 $127.8 + 20.8% Adjusted net in
Slide 12: Commercial Segment
Commercial Segment + Auxiliary power units + Fluid systems, driver controls for truck and bus markets + Marine aftermarket, engine products and international sales increase + Acquisition of Southern Wire Customer price reductions in automotive Higher investments in engineering to support product lau
Slide 13: Medical Segment
Medical Segment + Disposable medical product sales strong in international markets + Taut & SMD acquisitions Softness in North America surgical devices/OEM orthopedic instruments Exit low-margin guidewire business One-time costs bring Q2 margins below 20% Facility closure Acquisition-related expense
Slide 14: Aerospace Segment
Aerospace Segment Note: Results reflect move of components business to discontinued operations + Extended cyclical upturn continues + Strong execution across the business + Strong core growth for wide body cargo systems and narrow body systems + Cargo aftermarket up + Cost and productivity improveme
Slide 15: Asset Velocity
Asset Velocity Continued positive trend in asset velocity Note: Asset velocity defined as net working capital less cash, deferred taxes, and net assets held for sale plus current portion of long term debt and income tax payable divided by annualized quarterly sales
Slide 16: Cash Flow From Continuing Operations
Cash Flow From Continuing Operations 3 Mos 6 Mos 2006 89.4 121.3 2007 106.6 134.3 Trailing 12 month operating cash flow of nearly $340 million On target to hit 2007 cash flow from operations forecast of ~ $300 million
Slide 17: Strong Balance Sheet for Future Growth
Strong Balance Sheet for Future Growth Debt capacity to support Arrow acquisition Post closing debt to total capital in mid 60% range Rapid delevering enabled by strong combined cash flow, disciplined working capital management
Slide 18: Arrow Acquisition - Expectations
Arrow Acquisition - Expectations 2007 Dilutive to earnings in Q3 or Q4 Extent of dilution dependent on timing of close and permanent capital structure 2008 Dilutive on GAAP basis Could contribute to earnings on pro forma basis Combined medical margins return to 20% range by end of year 2009 Meaningf
Slide 19: 2007 Outlook - Current Operations (Before Arrow Acquisition)
2007 Outlook - Current Operations (Before Arrow Acquisition) Low High Earnings per share from continuing operations before special charges $4.05 $4.25 Special charges $(0.16) $(0.11) Earnings per share from continuing operations, including special charges $3.89 $4.14 Operating cash flow approaching
Slide 20: Summary
Summary Solid quarter Reaffirming 2007 guidance from current operations Continued consistent execution Redefining portfolio: Acquisition of Arrow International Strategic review of Commercial portfolio
Slide 21: Question and Answer Session
Question and Answer Session
Slide 22: Appendices
Appendices
Slide 23: Appendix A - Reconciliation of Net Debt to Total Capital
Appendix A - Reconciliation of Net Debt to Total Capital
Slide 24: Appendix B - Reconciliation of Summary Financial Performance - Q2 2007
Appendix B - Reconciliation of Summary Financial Performance - Q2 2007
Slide 25: Appendix D - Three Month Summary from Continuing Operations
Appendix D - Three Month Summary from Continuing Operations
Slide 26: Appendix E - Year-to-Date Summary from Continuing Operations
Appendix E - Year-to-Date Summary from Continuing Operations