Slide 1: Third Quarter 2021 Earnings Conference Call
Teleflex Incorporated Third Quarter 2021 Earnings Conference Call
Slide 2: Conference Call Logistics
Conference Call Logistics The release, accompanying slides, and replay webcast are available online at teleflex.com (click on “Investors”) An audio replay of the call will be available beginning at 11:00 am Eastern Time on October 28, 2021 either on the Teleflex website or by telephone. The call can
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
Note on Forward-Looking Statements This presentation contains forward-looking statements, including, but not limited to, our expectation that we will convert the majority of our Interventional Urology accounts to the UroLift® 2 System by the end of 2022; our intent to submit a 510(k) application for
Slide 5: Executive Overview
Executive Overview Liam Kelly - Chairman, President and CEO
Slide 6: Q3'21 Highlights
Q3'21 Highlights • Q3'21 constant currency revenue grew double-digits Q3 Performance • Q3'21 adjusted gross and operating margins expanded significantly year-over-year Summary • Q3'21 adjusted earnings per share increased 26.7% year-over-year • Reducing 2021 GAAP and constant currency revenue ranges
Slide 7: Q3'21 Financial Results
Q3'21 Financial Results Revenue Highlights • Q3'21 GAAP revenue increased 11.5% vs. Q3'20 • Q3'21 constant currency revenue increased 10.3% vs. Q3'20 Global Product Revenue Drivers1 • Vascular Access revenue of $175.5 million, up 8.5% vs. Q3'20 • Interventional revenue of $104.3 million, up 10.4% vs
Slide 8: Q3'21 Segment Revenue Review
Q3'21 Segment Revenue Review Q3'21 Q3'20 Reported Constant Currency Dollars in Millions Currency Impact Revenue Revenue Revenue Growth Growth Americas $417.3 $375.0 11.3% 0.4% 10.9% EMEA $143.9 $135.7 6.1% 2.5% 3.6% Asia $75.0 $68.2 9.9% 3.6% 6.3% OEM $64.1 $49.4 29.7% 0.3% 29.4% TOTAL $700.3 $628.3
Slide 9: Q3'21 Global Product Category Revenue Review
Q3'21 Global Product Category Revenue Review Q3'21 Q3'20 Reported Constant Currency Dollars in Millions Currency Impact Revenue Revenue Revenue Growth Growth Vascular Access $175.5 $160.0 9.7% 1.2% 8.5% Interventional $104.3 $93.2 11.9% 1.5% 10.4% Anesthesia $97.1 $75.7 28.3% 1.7% 26.6% Surgical $92
Slide 10: Clinical and Commercial Updates
Clinical and Commercial Updates Interventional Urology: 2021 National DTC Campaign Update ◦ Key performance metrics tracking as expected, targeting more than double the impressions of 2020 campaign ◦ Response to ads remains strong despite COVID barriers such as restrictions on elective procedures In
Slide 11: Clinical and Commercial Updates
Clinical and Commercial Updates Vascular: ErgoPack® Kit Launch Arrow® ◦ Strong traction with commercial launch, expands our leading market position in CVCs ErgoPack ◦ New configuration evolves clinical practice and includes a kink-resistant nitinol guidewire Anesthesia: Hemostat Label Expansion ◦ Co
Slide 12: Financial Overview
Financial Overview Thomas Powell - Executive VP and CFO
Slide 13: Q3'21 Financial Review
Q3'21 Financial Review • Revenue increased 11.5% vs. prior year period a GAAP basis Global revenue growth • Revenue increased 10.3% vs. prior year period on a constant currency basis • GAAP gross margin of 55.4%, up 300 bps vs. prior year period Gross margin • Adjusted gross margin of 59.5%, up 230
Slide 14: 2021 Financial Guidance Summary
2021 Financial Guidance Summary October Guidance July Guidance 2021 Guidance Low High Low High GAAP Revenue Growth 10.00% 11.00% 10.50% 11.75% Impact of Foreign Exchange Rate Fluctuations 2.00% 2.00 2.00% 2.00% Constant Currency Revenue Growth 8.00% 9.00% 8.50% 9.75% Adjusted Gross Margin 59.25% 59.
Slide 15: Key Takeaways
Key Takeaways Diversified product Continue to execute on Increased 2021 portfolio enabled our strategy to drive EPS guidance for the Teleflex to deliver durable growth with third consecutive double-digit constant investment in organic quarter, more than currency growth even growth opportunities and
Slide 16: Thank You
16 Thank You 16 Teleflex, the Teleflex logo, are trademarks or registered trademarks of Teleflex Incorporated or its affiliates, in the U.S. and/or other countries. © 2021 Teleflex Incorporated. All rights reserved. MCI-2021-0563.
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures The presentation to which these appendices are attached and the following • Adjusted operating profit and margin. These measures exclude, depending on the appendices include, among other things, tables reconciling the following period presented, the impact of (i) restruct
Slide 18: Non-GAAP Adjustments
Non-GAAP Adjustments The following is an explanation of certain of the adjustments that are applied value of inventory resulting from a fair value calculation as of the acquisition date); fair with respect to one or more of the non-GAAP financial measures that appear in value adjustments to continge
Slide 19: 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 20: 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 September 26, 2021 Three Months Ended September 27, 2020 Income Income Diluted Gross Operating Before Income Tax Income Diluted Earnings Gross Operat
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) Nine Months Ended September 26, 2021 Nine Months Ended September 27, 2020 Income Income Diluted Gross Operating Before Income Tax Income Diluted Earnings Gross Operatin
Slide 22: Appendix A: tickmarks
Appendix A: tickmarks A. Restructuring, restructuring related and impairment items – For the Z-Medica, LLC and the reversal of previously recognized income related to three months ended September 26, 2021, pre-tax restructuring charges a distributor conversion in Japan. were $1.0 million and pre-tax
Slide 23: Appendix B: Restructuring and Other Similar Cost Savings Initiatives
Appendix B: Restructuring and Other Similar Cost Savings Initiatives Actual Results through Dollars in Millions Estimated Total Estimated remaining December 31, 2020 Restructuring charges - ongoing restructuring plans $102 - $118 $89 $13 - $29 Restructuring charges - Respiratory divestiture plan 5-8
Slide 24: Appendix B: Disclosure
Appendix B: Disclosure Respiratory divestiture plan incurred or estimated to be incurred and estimated annual pre-tax savings to be During the second quarter of 2021, in connection with the Respiratory business realized: divestiture, we committed to a restructuring plan designed to separate the manu
Slide 25: Appendix B: Disclosure
Appendix B: Disclosure It is likely that estimates of charges and pre-tax savings will change from time to time, and the table in the prior slide may reflect changes from amounts previously estimated. In addition, the table in the prior slide reflects the estimated charges and pre-tax savings relate
Slide 26: Appendix C: September 26, 2021 Year-to-Date GPO and IDN Review
Appendix C: September 26, 2021 Year-to-Date GPO and IDN Review Group Purchasing Organization Update Q1’21 Q2'21 Q3'21 Renewed agreements 6 9 10 New agreements 1 0 3 Existing agreements lost 1 1 2 IDN Update Q1’21 Q2'21 Q3'21 Renewed agreements 13 8 4 New agreements 7 13 5 Existing agreements lost 0
Slide 27: Appendix D: 2021 Adj. Gross Margin Guidance Reconciliation
Appendix D: 2021 Adj. Gross Margin Guidance Reconciliation 2021 Guidance Low High Forecasted GAAP Gross Margin 54.85% 55.10% Estimated restructuring, restructuring related and impairment items 1.10% 1.10% Estimated acquisition, integration, and divestiture related items 0.10% 0.10% Estimated intangi
Slide 28: Appendix E: Reconciliation of 2021 Adjusted Earnings Per Share Guidance
Appendix E: Reconciliation of 2021 Adjusted Earnings Per Share Guidance 2021 Guidance Low High Forecasted GAAP Diluted Earnings Per Share from continuing operations $9.86 $10.06 Estimated restructuring, restructuring related and impairment items, net of tax $1.00 $1.00 Estimated acquisition, integra
Slide 29: Appendix F: Revenue Schedules for Divested Respiratory Assets
Appendix F: Revenue Schedules for Divested Respiratory Assets ($000s) As Reported Divested respiratory business Adjusted Q1 613.6 33.6 580.0 Q2 652.5 32.4 620.1 2019 Q3 648.3 30.1 618.2 Q4 681.0 33.9 647.1 FY $2,595.4 $130.0 $2,465.4 Q1 630.6 36.7 593.9 Q2 567.0 35.8 531.2 2020 Q3 628.3 29.8 598.5 Q