16 slides from West Pharmaceutical Services's earnings presentation, Feb 20, 2014
Slide 1: Fourth-Quarter 2013 Analyst Conference Call
1 Speakers: Donald E. Morel, Jr. Chairman and Chief Executive Officer William J. Federici Senior Vice President and Chief Financial Officer All trademarks and registered trademarks are the property of West Pharmaceutical Services, Inc., unless noted otherwise. West Pharmaceutical Services, Inc. Four
Slide 2: Cautionary Statement
2 Cautionary Statement Under the Private Securities Litigation Reform Act of 1995 This presentation and any accompanying management commentary contain “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements include, but are not li
Slide 3: Quarterly Highlights
3 Quarterly Highlights 26.7% increase in adjusted diluted EPS to $0.38 Reported EPS of $0.33 Sales grew 5.1% (constant currency) Gross profit margin improved 80 basis-points Increased investments in R&D Adjusted operating profit improved 15.3%
Slide 4: Fourth-Quarter Summary Results
4 Fourth-Quarter Summary Results $ millions, except earnings per-share (EPS) data (1) These are Non-GAAP measurements. See “Non-GAAP Financial Measures” and “Notes to Non-GAAP Financial Measures” (Slides 15-16), “Cautionary Statement” (Slide 2) and see “Non-GAAP Financial Measures” in today’s press
Slide 5: Fourth-Quarter Operating Results
5 Fourth-Quarter Operating Results • Overall sales growth 5.1% • Pharmaceutical Packaging Systems sales grew 4.5% • High-value products grew 4.0%, led by coated closures and Envision™ • Backlog 5% lower than at December 31, 2012 • Demand is impacted by: • Sales that were accelerated into prior quart
Slide 6: 2013 Summary Results
6 2013 Summary Results $ millions, except earnings per-share (EPS) data (1) These are Non-GAAP measurements. See “Non-GAAP Financial Measures” and “Notes to Non-GAAP Financial Measures” (Slides 15-16), “Cautionary Statement” (Slide 2) and see “Non-GAAP Financial Measures” in today’s press release fo
Slide 7: Expansion and Product Development
7 Expansion and Product Development Geographic expansion: • China: Plant is operational, integrating capacity into global supply plan • India construction is progressing Metal seals production will commence in first-half 2014 Elastomer investment postponed Proprietary systems • Customer pr
Slide 8: 2014 Outlook
8 2014 Outlook Expect sales growth in 6% to 8% range, excluding currency PPS: • Shift to high-value expected to continue despite a slow start • Growth despite short-term challenges associated with Shorter lead-times & order cycle for high value products Drug-shortage-related activity abating
Slide 9: Change in Consolidated Sales Fourth-Quarter 2012 to 2013
9 Change in Consolidated Sales Fourth-Quarter 2012 to 2013 ($ millions) $342.7 $9.0 $7.4 $4.8 $321.5 2012 Sales Volume & Mix Sales Price Currency 2013 Sales
Slide 10: Change in Consolidated Gross Profit Margin %
10 Change in Consolidated Gross Profit Margin % Fourth-Quarter 2012 to 2013 31.1% (1.8%) 1.5% 0.8% 0.3% 30.3% 2013 2012
Slide 11: Change in SG&A Costs Fourth-Quarter 2012 to 2013
11 Change in SG&A Costs Fourth-Quarter 2012 to 2013 ($ millions) $60.0 ($1.5) ($0.4) ($0.3) $1.4 $2.2 $58.6
Slide 12: Cash Flow Metrics
12 Cash Flow Metrics ($ millions) Twelve Months Ended December 31, 2013 2012 Depreciation and amortization $85.2 $76.9 Operating cash flow $220.5 $187.4 Capital expenditures $151.9 (1) $131.3 (1) 2013 capital expenditures includes $35 million of 2013 funding associated with the Company’s new headqua
Slide 13: Summary Balance Sheet Information
13 Summary Balance Sheet Information ($ millions) † Net debt to total invested capital is a Non-GAAP measure, which management believes provides a useful measure of the comparative degree of West’s financial leverage. Net debt is determined by reducing total debt by the amount of cash and cash equiv
Slide 14: 2014 Full-year Financial Guidance
14 2014 Full-year Financial Guidance ($ millions, except EPS) Estimated 2014 Revenue(1) Estimated Gross Profit %(1) Pharmaceutical Packaging Systems Segment $1,050 - $1,070 36.2% to 36.7% Pharmaceutical Delivery Systems Segment $400 - $410 20.3% to 21.3% Consolidated $1,450 - $1,480 31.9% - 32.4% Ca
Slide 15: Non-GAAP Financial Measures
15 Non-GAAP Financial Measures(1) Three Months and Year Ended December 31, 2013 and 2012 (in millions, except per share data) (1) See “Notes to Non-GAAP Financial Measures” (Slide 16), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Th
Slide 16: Notes to Non-GAAP Financial Measures
16 NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see today’s press release and Safe Harbor Statement. Today’s press release, these presentation materials and associated presentation use the following financial measures that have not been calculated in accordance with generally