West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Q3 2018 Earnings Presentation
16 slides from West Pharmaceutical Services's earnings presentation, Oct 25, 2018
Slide 1: Third-Quarter 2018 Analyst Conference Call
West Pharmaceutical Services, Inc. Third-Quarter 2018 Analyst Conference Call 9 a.m. Eastern Time, October 25, 2018 ▪ A webcast of today’s call can be accessed in the “Investors” section of the Company’s website: www.westpharma.com Speakers: ▪ To participate on the call, please dial: Eric M. Green −
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 inc
Slide 3: 2018 Third-Quarter Results & Full-Year Outlook
2018 Third-Quarter Results & Full-Year Outlook ▪ Q3 2018 reported net sales of $431.7 million, representing 9.6% organic sales growth ▪ Q3 2018 reported-diluted EPS was $0.73, compared to $0.67 for the same period last year ▪ Excluding restructuring-related and other charges, Q3 2018 adjusted- dilut
Slide 4: Organic Sales Growth
Abbreviations: LSD – low-single digit; MSD – mid-single digit; Organic Sales Growth HSD – high-single digit; DD – double digit Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Overall Organic 3.7% 4.5% 0.2% 9.0% 9.6% Sales Growth Biologics MSD DD (LSD) LSD (MSD) Generics LSD HSD HSD DD MSD Pharma (MSD) (MSD)
Slide 5: Self Injection Update
Self Injection Update ▪ SmartDose® Drug Delivery Platform ‒ FDA-approved with two full years of commercial experience ‒ Active clinical development programs ‒ Solid pipeline of customer interest ▪ SelfDose® Patient Controlled Injector ‒ Commercial launch in 2018 ‒ Award-winning technology ‒ Rising c
Slide 6: Integrated Solutions Program Launched
Integrated Solutions Program Launched Simplify the Journey™ PHARMA ▪ West’s Integrated Solutions Program BIOLOGICS offers suites of products, combined with GENERICS expert testing and support services for ▪ Reduce Development the unique needs of the drug product and Supply Risk and its delivery syst
Slide 7: Third-Quarter 2018 Summary Results
Third-Quarter 2018 Summary Results ($ millions, except earnings-per-share (EPS) data) Three Months Ended September 30, 2018 2017 Reported Net Sales $431.7 $398.2 Net Sales at Constant Currency (1) $436.5 $398.2 Gross Profit Margin 31.4% 31.4% Reported Operating Profit $60.8 $62.9 Adjusted Operating
Slide 8: Change in Consolidated Net Sales
Change in Consolidated Net Sales Third-quarter 2017 to 2018 ($ millions) $6.4 $37.4 ($4.8) ($5.5) $431.7 $398.2 2017 Volume & Mix Sales Price Currency Consumer 2018 8
Slide 9: Gross Profit Update
Gross Profit Update ($ millions) Three Months Ended September 30, 2018 2017 Proprietary Products: Gross Profit $120.4 $110.6 Gross Profit Margin 37.0% 35.8% Contract-Manufactured Products: Gross Profit $15.2 $14.5 Gross Profit Margin 14.3% 16.3% Consolidated Gross Profit $135.6 $125.1 Consolidated G
Slide 10: Cash Flow and Balance Sheet Metrics
Cash Flow and Balance Sheet Metrics ($ millions) CASH FLOW ITEMS (UNAUDITED) (in millions) Nine Months Ended September 30, 2018 2017 Depreciation and amortization $78.1 $71.8 Operating cash flow $215.4 $181.8 Capital expenditures $74.7 $101.3 FINANCIAL CONDITION (UNAUDITED) (in millions) As of As of
Slide 11: Full-Year 2018 Guidance
Full-Year 2018 Guidance ▪ Reaffirming full-year 2018 reported net sales guidance range of $1.720 billion to $1.730 billion* ▪ Reaffirming full-year 2018 adjusted-diluted EPS range of between $2.80 to $2.90(1,2) ▪ Capital spending is expected to be in a range of between $110 million to $120 million,
Slide 12: Notes to Non-GAAP Financial Measures
Notes to Non-GAAP Financial Measures For additional details, please see today’s press release & 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 accept
Slide 13: Reconciliation of Non-GAAP Measures
Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slides 12-16), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Reported and Adjusted Ope
Slide 14: Reconciliation of Non-GAAP Measures
Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slides 12-16), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Reported and Adjusted Ope
Slide 15: Reconciliation of Non-GAAP Measures
Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slides 12-16), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Net Sales to Net Sales at
Slide 16: Reconciliation of Non-GAAP Measures
Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slides 12-16), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Reported-Diluted EPS Guid
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