Slide 1: Teleflex Third Quarter 2022 Earnings Conference Call
Teleflex Incorporated Third Quarter 2022 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 October 27, 2022 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 plans to conduct a limited commercial launch of the UroLift System across key cities in China alongside urological society engagement during the fourth quarter of 2022; our ex
Slide 5: Executive Overview
Executive Overview Liam Kelly - Chairman, President and CEO 5
Slide 6: Q3'22 Highlights
Q3'22 Highlights ◦ Q3'22 constant currency revenue grew 2.4% year-over-year, including impact of a 1.3% decline in MSTA revenue associated with respiratory divestiture Q3 Performance ◦ Q3'22 constant currency revenue included strong performances from Interventional, Summary Surgical, OEM, and Asia ◦
Slide 7: Q3'22 Segment Revenue Review
Q3'22 Segment Revenue Review Three Months Ended % Increase/ Decrease Reported Constant Currency Dollars in Millions September 25, 2022 September 26, 2021 Currency Impact Revenue Growth Growth Americas $405.1 $417.3 (2.9)% (0.2)% (2.7)%1 EMEA $128.4 $143.9 (10.7)% (14.1)% 3.4% Asia $82.0 $75.0 9.4% (
Slide 8: Q3'22 Global Product Category Revenue Review
Q3'22 Global Product Category Revenue Review Three Months Ended % Increase/ Decrease Reported Constant Currency Dollars in Millions September 25, 2022 September 26, 2021 Currency Impact Revenue Growth Growth Vascular Access $167.1 $175.5 (4.7)% (3.9)% (0.8)% Interventional $108.7 $104.3 4.3% (4.6)%
Slide 9: Clinical and Commercial Updates: Standard Bariatrics Acquisition
Clinical and Commercial Updates Standard Bariatrics Acquisition Adds Differentiated Stapling Technology • Acquired Standard Bariatrics for $170 million at closing, with additional consideration of up to $130 million payable upon the achievement of certain commercial milestones. Titan SGS® Stapler •
Slide 10: Clinical and Commercial Updates: Manta Device Real-World Study
Clinical and Commercial Updates Manta® Device Real-World Study • The Karolinska 1000 Consecutive MANTA® Device Study was presented at the TCT 2022 Conference. • This single-center, observational study reviewed 1048 consecutive, unselected subjects undergoing transfemoral Transcatheter Aortic Valve I
Slide 11: Clinical and Commercial Updates: UroLift in Japan and China
Clinical and Commercial Updates Japan Commercial Progress for UroLift® System • Following the launch in April 2022, cases continues to ramp up in Japan with positive feedback. • Commercial ramp tracking to plan. China Commercial Progress for UroLift® System • On track with early market development a
Slide 12: Financial Overview
Financial Overview Thomas Powell - Executive VP and CFO 12
Slide 13: Q3'22 Financial Review
Q3'22 Financial Review ◦ Revenue decreased 1.9% year-over-year on a GAAP basis Global revenue growth ◦ Revenue increased 2.4% year-over-year on a constant currency basis ◦ GAAP gross margin of 54.4%, down 100 bps year-over-year Gross margin ◦ Adjusted gross margin of 58.7%, down 80 bps year-over-yea
Slide 14: 2022 Financial Guidance Summary
2022 Financial Guidance Summary 2022 Guidance Low High GAAP Revenue Growth (0.75)% 0.25% Impact of Foreign Exchange Rate Fluctuations (4.00)% (4.00)% Constant Currency Revenue Growth (1) 3.25% 4.25% Adjusted Gross Margin 58.75% 59.25% Adjusted Operating Margin 26.50% 27.00% Adjusted EPS $12.80 $13.2
Slide 15: Key Takeaways
Key Takeaways Q3 results reflect the Augmented our growth Continue to execute on stability of our diversified drivers with the our strategy to drive product portfolio, and acquisition of Standard durable growth with our revenue progression Bariatrics and the Titan investment in organic during the qu
Slide 16: Thank You
Thank You 16 1616 Teleflex, the Teleflex logo, are trademarks or registered trademarks of Teleflex Incorporated or its affiliates, in the U.S. and/or other countries. © 2022 Teleflex Incorporated. All rights reserved. MCI-2021-0563.
Slide 17: Appendices
Appendices Veleflex:
Slide 18: 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 19: 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 20: Non-GAAP Adjustments
Non-GAAP Adjustments Intangible amortization expense - Certain intangible assets, including customer relationships, intellectual property, distribution rights, trade names and non-competition agreements, initially are recorded at historical cost and then amortized over their respective estimated use
Slide 21: 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 September 25, 2022 Selling, general Diluted Research and Effective earnings per Gross and Operating Income before Income tax development income tax share from margin
Slide 22: 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 26, 2021 Selling, general Diluted Gross and Research and Operating Income before Income tax Effective earnings per margin administrative development margin
Slide 23: 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 September 25, 2022 Selling, general Diluted Gross and Research and Operating Income before Income tax Effective earnings per development income tax share from margin
Slide 24: 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 26, 2021 Selling, general Diluted Gross and Research and Operating Income before Income tax Effective earnings per development income tax share from margin
Slide 25: Appendix A tickmarks
Appendix A tickmarks (A) Restructuring, restructuring related and impairment items – For the three months ended September 25, 2022, pre-tax restructuring charges were $0.6 million and restructuring related charges were $6.9 million. For the three months ended September 26, 2021, pre-tax restructurin
Slide 26: Appendix B - 2022 Adj. Gross and Operating Margin Guidance Reconciliation
Appendix B - 2022 Adj. Gross and Operating Margin Guidance Reconciliation Low High Forecasted GAAP Gross Margin 54.45% 54.95% Estimated restructuring, restructuring related and impairment items 1.10% 1.10% Estimated acquisition, integration, and divestiture related items —% —% Estimated intangible a
Slide 27: Appendix C – Reconciliation of 2022 Adjusted Earnings Per Share Guidance
Appendix C – Reconciliation of 2022 Adjusted Earnings Per Share Guidance Low High Forecasted GAAP Diluted Earnings Per Share from continuing operations $7.74 $8.14 Estimated restructuring, restructuring related and impairment items, net of tax $0.83 $0.83 Estimated acquisition, integration, and dive