Slide 1: Teleflex Incorporated Second Quarter 2014 Earnings Conference Call
TELEFLEX INCORPORATED SECOND QUARTER 2014 EARNINGS CONFERENCE CALL Exhibit 99.1
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”) Telephone replay available by dialing 888-286-8010 or for international calls, 617- 801-6888, pass code number 18970797
Slide 3: Introductions
Benson Smith Chairman, President and CEO Thomas Powell Executive Vice President and CFO Jake Elguicze Treasurer and Vice President of Investor Relations Introductions
Slide 4: Forward-Looking Statements/Non-GAAP Financial Measures
Forward-Looking Statements/Non-GAAP Financial Measures This presentation and our discussion contain forward-looking information and statements including, but not limited to, forecasted constant currency revenue growth, adjusted gross margins, adjusted operating margins excluding intangible amortizat
Slide 5: Second Quarter 2014 Highlights
SECOND QUARTER 2014 HIGHLIGHTS
Slide 6: Second Quarter Highlights
Second Quarter Highlights Second quarter constant currency revenue growth and adjusted earnings per share achievement exceeded our expectations Revenue of $468.1 million, up 11.4% vs. prior year period on an as- reported basis; up 10.1% vs. prior year period on a constant currency basis Adjusted EPS
Slide 7: Second Quarter Highlights
Second Quarter Highlights Improvement in the average selling prices of products contributes 193 bps of top-line growth in Q2’14 compared to Q2’13 102 bps improvement in sales of existing products in Q2’14 compared to Q2’13 resulting from modest improvement in end-market utilization New product intro
Slide 8: Second Quarter Highlights: Vidacare
Second Quarter Highlights Vidacare contributes 5.1% to Teleflex’s constant currency revenue growth • Q2’14 revenue of $21.3 million, ahead of initial internal expectations • Q2’14 revenue up ~ 30% versus Q2’13 on an as-reported basis • Integration activities on schedule • Continue to invest in addit
Slide 9: ARROW-Clark VectorFlow Chronic Hemodialysis Catheter
Received FDA 510(k) clearance to market the ARROW-Clark ™ VectorFlow ™ Chronic Hemodialysis Catheter. PRODUCT UPDATE ARROW-Clark ™ VectorFlow ™ Chronic Hemodialysis Catheter features a symmetrical tip design that allows ease of placement and sustained high flows with minimal recirculation. The ARROW
Slide 10: LMA SureSeal PreCurved
LMA SureSeal™ PreCurved was developed from the assets acquired from Ultimate Medical and benefits the LMA™ portfolio by giving customers the option of a first generation, fixed curve device for ease of insertion, with a silicone cuff for improved patient comfort. PRODUCT DESCRIPTION PRODUCT UPDATE A
Slide 11: ARROW GPSCath Balloon Dilatation Catheters
Received FDA 510(k) clearance to market the ARROW® GPSCath® Balloon Dilatation Catheters designed for use with .014” guide wires and in 150 cm length. PRODUCT UPDATE ARROW® GPSCath® Balloon Dilatation Catheters combine angioplasty and targeted injection in one device for use in below the knee periph
Slide 12: Mayo Healthcare Pty Ltd.
Mayo Healthcare Pty Ltd. • Contributed 2.24% to Teleflex’s constant currency revenue growth in Q2; mixture of additional volume and improved pricing • Integration activities on schedule Second Quarter Highlights
Slide 13: Second Quarter 2014 Financial Review
SECOND QUARTER 2014 FINANCIAL REVIEW
Slide 14: Financial Results
Financial Results Revenue of $468.1 million • Up 11.4% vs. prior year period on an as-reported basis • Up 10.1% vs. prior year period on a constant currency basis Adjusted gross margin of 52.3% • Up 254 bps vs. prior year period Adjusted operating margin excluding intangible amortization expense of
Slide 15: Financial Results: Improved Balance Sheet
Financial Results • Up 114% vs. prior year period • Repatriated $230 million of foreign cash; used repatriated cash to partially fund a $235 million repayment of borrowings under revolving credit facility • Issued $250 million of 5.25% senior unsecured notes due in 2024; used proceeds to partially f
Slide 16: Second Quarter 2014 Segment Revenue Review
SECOND QUARTER 2014 SEGMENT REVENUE REVIEW
Slide 17: Segment Revenue Review
Q2’14 Q2’13 Constant Currency Revenue Commentary Segment Revenue Review Vascular N.A: $64.2 million, up 13.5% Anesthesia/Respiratory N.A: $55.0 million, down 5.7% Surgical N.A: $38.0 million, up 1.3% EMEA: $154.7 million, up 7.3% Asia: $62.5 million, up 25.2% OEM: $36.6 million, up 13.1% All Other:
Slide 18: 2014 Financial Outlook
2014 FINANCIAL OUTLOOK
Slide 19: Financial Outlook
Financial Outlook 2014 guidance ranges reaffirmed: 2014 adjusted earnings per share guidance range increased: • Constant currency revenue growth of 7% to 9% • Adjusted gross margin of 52.0% to 52.5% • Adjusted operating margin excluding intangible amortization expense of 20% to 21% • 2014 guidance r
Slide 20: Question & Answer
QUESTION & ANSWER
Slide 21: Appendices
APPENDICES
Slide 22: Appendix A – Reconciliation of Segment Constant Currency Revenue Growth
Appendix A – Reconciliation of Segment Constant Currency Revenue Growth Dollars in Millions June 29, 2014 June 30, 2013 Constant Currency Currency Total Vascular North America 64.2 $ 56.8 $ 13.5% (0.4%) 13.1% Anesthesia/Respiratory North America 55.0 58.5 (5.7%) (0.2%) (5.9%) Surgical North America
Slide 23: Appendix B – Reconciliation of Revenue Growth
Appendix B – Reconciliation of Revenue Growth Dollars in Millions Year-over- year growth Three Months Ended June 30, 2013 Revenue As-Reported $420.1 Foreign Currency 5.5 1.32% Vidacare 21.3 5.07% Mayo 9.4 2.24% All other 11.8 2.80% Three Months Ended June 29, 2014 Revenue As-Reported $468.1 11.4%
Slide 24: Appendix C – Reconciliation of Teleflex Gross Profit and Margin
Appendix C – Reconciliation of Teleflex Gross Profit and Margin June 29, 2014 June 30, 2013 Teleflex gross profit as-reported 244,088 $ 209,490 $ Teleflex gross margin as-reported 52.1% 49.9% Losses and other charges (A) (319) Adjusted Teleflex gross profit 244,968 $ 209,171 $ Adjusted Teleflex gros
Slide 25: Appendix D – Reconciliation of Teleflex Operating Profit and Margin
Appendix D – Reconciliation of Teleflex Operating Profit and Margin June 29, 2014 June 30, 2013 Teleflex income from continuing operations before interest and taxes 74,752 $ 63,751 $ Teleflex income from continuing operations before interest and taxes margin 16.0% 15.2% Restructuring and other impai
Slide 26: Appendix E – EPS Reconciliation from Continuing Operations
Appendix E – EPS Reconciliation from Continuing Operations Quarter Ended – June 29, 2014 Dollars in millions, except per share data Cost of goods sold Research and development expenses Restructuring and other impairment charges Interest expense, net Income taxes Net income (loss) attributable to com
Slide 27: Appendix F – EPS Reconciliation from Continuing Operations
Appendix F – EPS Reconciliation from Continuing Operations Quarter Ended – June 30, 2013 Dollars in millions, except per share data Selling, general and administrative expenses Research and development expenses Restructuring and other impairment charges Interest expense, net Income taxes Net income
Slide 28: Appendix G – Reconciliation of Teleflex Tax Rate
Appendix G – Reconciliation of Teleflex Tax Rate Dollars in Thousands Three Months Ended June 29, 2014 Income from continuing operations before taxes Taxes on income from continuing operations Tax rate GAAP basis $58,836 $10,006 17.0% Restructuring and impairment charges 7,623 3,467 Losses and other
Slide 29: Appendix H – Reconciliation of 2014 Constant Currency Revenue Growth Guidance
Appendix H – Reconciliation of 2014 Constant Currency Revenue Growth Guidance Low High Forecasted GAAP Revenue Growth 7.0% 9.0% Estimated impact of foreign currency fluctuations Forecasted Constant Currency Revenue Growth 7.0% 9.0%
Slide 30: Appendix I – Reconciliation of 2014 Gross Margin Guidance
Appendix I – Reconciliation of 2014 Gross Margin Guidance Note: In 2014, losses and other charges relate to expenses associated with the Restructuring Plan approved by the Board of Directors on April 28, 2014. Low High GAAP Gross Margin 51.35% 51.80% Losses and other charges 0.65% 0.70% Adjusted Gro
Slide 31: Appendix J – Reconciliation of 2014 Operating Margin Guidance
Appendix J – Reconciliation of 2014 Operating Margin Guidance Note: In 2014, losses and other charges include expenses associated with the Restructuring Plan approved by the Board of Directors on April 28, 2014, acquisition costs and the reversal of contingent consideration liabilities. Low High GAA
Slide 32: Appendix K – Reconciliation of 2014 Adjusted Earnings per Share Guidance
Appendix K – Reconciliation of 2014 Adjusted Earnings per Share Guidance Low High Forecasted diluted earnings per share attributable to common shareholders $3.50 $3.60 Restructuring, impairment charges, and special items, net of tax $0.85 $0.90 Intangible amortization expense, net of tax $0.93 $0.93