Slide 1: Teleflex Incorporated Second Quarter 2022 Earnings Conference Call
Teleflex Incorporated Second 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 July 28, 2022 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 and Non-GAAP Financial Measures
Note on Forward-Looking Statements This presentation contains forward-looking statements, including, but not limited to, our expectations with regard to UroLift revenues and incremental foreign exchange headwinds for 2022; our expectation that we will transition the majority of our U.S. customers to
Slide 5: Executive Overview
Executive Overview Liam Kelly - Chairman, President and CEO 5
Slide 6: Q2'22 Highlights
Q2'22 Highlights ◦ Q2'22 constant currency revenue grew 2.3% year-over-year, despite a 13.2% decline in UroLift sales Q2 Performance ◦ Q2'22 adjusted gross margin declined just 30 bps, despite the lower UroLift revenues, Summary incremental inflation and unfavorable foreign exchange rates, as the va
Slide 7: Q2'22 Segment Revenue Review
Q2'22 Segment Revenue Review Three Months Ended % Increase/ Decrease Reported Constant Currency Dollars in Millions June 26, 2022 June 27, 2021 Currency Impact Revenue Growth Growth Americas $412.7 $414.8 (0.5)% (0.2)% (0.3)% EMEA $145.2 $157.1 (7.6)% (11.0)% 3.4% Asia $76.6 $80.6 (5.0)% (6.8)% 1.8%
Slide 8: Q2'22 Global Product Category Revenue Review
Q2'22 Global Product Category Revenue Review Three Months Ended % Increase/ Decrease Reported Constant Currency Dollars in Millions June 26, 2022 June 27, 2021 Currency Impact Revenue Growth Growth Vascular Access $163.9 $167.7 (2.3)% (3.3)% 1.0% Interventional $114.4 $112.1 2.0% (3.3)% 5.3% Anesthe
Slide 9: Clinical and Commercial Updates - Interventional Urology
Clinical and Commercial Updates - Interventional Urology UroLift® 2 System and UroLift ATC® System Progress • Remain on track for the majority of U.S. accounts to be transitioned by the end of 2022 • UroLift ATC® System is rolling out on schedule to targeted accounts • Feedback from surgeons on the
Slide 10: Clinical and Commercial Updates
Clinical and Commercial Updates Manta® Vascular Closure Device Ultrasound Study • Prospective, multi-center, single-arm trial • Site activations began in Q2, study is targeting up to 150 patients in up to 15 investigational locations across the US and Canada • The study intends to demonstrate that u
Slide 11: Financial Overview
Financial Overview Thomas Powell - Executive VP and CFO 11
Slide 12: Q2'22 Financial Review
Q2'22 Financial Review ◦ Revenue decreased 1.3% year-over-year on a GAAP basis Global revenue growth ◦ Revenue increased 2.3% year-over-year on a constant currency basis ◦ GAAP gross margin of 55.2%, down 50 bps year-over-year Gross margin ◦ Adjusted gross margin of 59.6%, down 30 bps year-over-year
Slide 13: 2022 Financial Guidance Summary
2022 Financial Guidance Summary 2022 Guidance Low High GAAP Revenue Growth (0.45)% 0.55% Impact of Foreign Exchange Rate Fluctuations (3.70)% (3.70)% Constant Currency Revenue Growth (1) 3.25% 4.25% Adjusted Gross Margin 59.00% 59.50% Adjusted Operating Margin 26.75% 27.25% Adjusted EPS $13.00 $13.4
Slide 14: Key Takeaways
Key Takeaways Diversified product Continue to execute on 2022 financial guidance portfolio enabled our strategy to drive contemplates potential Teleflex to deliver durable growth with gross margin expansion constant currency investment in organic despite meaningful growth, despite a slower growth op
Slide 15: Thank You
Thank You 15 1515 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 16: Appendices
Appendices Veleflex:
Slide 17: 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 18: 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 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 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 June 26, 2022 Selling, general Diluted Research and Effective earnings per Gross and Operating Income before Income tax development income tax share from margin admi
Slide 21: 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 June 27, 2021 Selling, general Diluted Gross and Research and Operating Income before Income tax Effective earnings per margin administrative development margin (2)
Slide 22: 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) Six Months Ended June 26, 2022 Selling, general Diluted Gross and Research and Operating Income before Income tax Effective earnings per development income tax share from margin admini
Slide 23: 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) Six Months Ended June 27, 2021 Selling, general Diluted Gross and Research and Operating Income before Income tax Effective earnings per development income tax share from margin admini
Slide 24: Appendix A tickmarks
Appendix A tickmarks (A) Restructuring, restructuring related and impairment items – For the three months ended June 26, 2022, pre-tax restructuring charges were $(0.1) million and restructuring related charges were $9.1 million. For the three months ended June 27, 2021, pre-tax restructuring charge
Slide 25: 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 54.80% 55.30% Estimated restructuring, restructuring related and impairment items 1.10% 1.10% Estimated acquisition, integration, and divestiture related items —% —% Estimated intangible a
Slide 26: 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 $8.04 $8.44 Estimated restructuring, restructuring related and impairment items, net of tax $0.84 $0.84 Estimated acquisition, integration, and dive