Attached files
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| 8-K - FORM 8-K - TELEFLEX INC | c23632e8vk.htm |
| 1 TELEFLEX INCORPORATED THIRD QUARTER 2011 EARNINGS CONFERENCE CALL Exhibit 99.1 |
| 2 Conference Call Logistics The release, accompanying slides, and replay webcast 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 62497743 |
| 3 Introductions Benson SmithChairman, President and CEO Randy MeierExecutive Vice President and CFO Jake ElguiczeTreasurer and Vice President of Investor Relations |
| 4 4 4 4 4 4 4 Forward-Looking Statements/Additional Notes This presentation and our discussion contain forward-looking information and statements including, but not limited to, the expected launch of the Taut universal balloon open access port in the fourth quarter of 2011; forecasted 2011 revenue, constant currency revenue growth, adjusted earnings per share and cash flow from operations; our expectation of continued top-line constant currency growth in the fourth quarter of 2011; our expectation that our gross and operating margins will continue to expand from third quarter 2011 levels; and other matters which inherently involve risks and uncertainties which could cause actual results to differ from those projected or implied in the forward-looking statements. These risks and uncertainties are addressed in the Company's SEC filings, including its most recent Form 10-K. This presentation includes certain non-GAAP financial measures, which include revenue growth on a constant currency basis; adjusted earnings per share; adjusted selling, general and administrative expenses; adjusted operating expenses; adjusted cash flow from operations; and adjusted free cash flow from operations. Adjusted earnings per share excludes the effect of charges associated with our restructuring programs and asset impairments, losses and other charges related to refinancing transactions, costs associated with severance payments and benefits to be provided to our former chief executive officer, intangible amortization expense and the amortization of debt discount on convertible notes. Consistent with past practice, adjusted earnings per share has not been adjusted to exclude the benefit resulting from the forfeiture of equity awards. Constant currency revenue growth excludes the impact of translating the results of international subsidiaries at different currency exchange rates from period to period and the comparable activity of companies acquired or divested within the most recent twelve-month period. Adjusted selling, general and administrative expenses, adjusted operating expenses and adjusted operating income exclude costs associated with severance payments and benefits to be provided to our former chief executive officer. Adjusted cash flow from operations excludes the impact of a tax refund and changes in certain accounting rules. Adjusted free cash flow reflects cash flow from operations minus capital expenditures and dividends and excludes the impact of the adoption of ASC topic 860 and a tax refund. Reconciliation of these non-GAAP measures to the most comparable GAAP measures is contained within this presentation. The following slides reflect continuing operations. |
| 5 THIRD QUARTER 2011 HIGHLIGHTS |
| 6 Financial Highlights Revenue of $371.9 million, up 3.2% constant currencyGross margin of 47.9%, up 90 bps sequentiallyOperating margin of 17.0%, up 170 bps sequentiallyAdjusted EPS of $1.03, up 4% vs. prior year |
| 7 Strategic Development Highlights Recently launched pricing initiatives performing as expectedAdoption of VasoNova VPS in U.S. market continues Definitive agreement reached to sell Aerospace assets for $280 million |
| 8 Product Development Update Critical CareArrowADVANTAGENew radio-opaque PICC catheter with slightly enlarged lumensAccommodates VasoNova VPS styletStimuQuick EchoLatest addition to our clinician-inspired line of single-shot peripheral nerve block needlesTargeted at Anesthesiologists and CRNAs that practice ultrasound-guided regional anesthesia EasyCricSeldinger based emergency cricothyrotomy set Expands existing tracheostomy portfolioVasoNova VPSFiled for CE Mark in late SeptemberAnti-Microbial PICC510(k) submitted in October to support anti-thrombogenic claim for anti-microbial coating; awaiting FDA response |
| 9 Product Development Update Surgical Care Taut Cone Access PortExpands the access line to deliver primary port access for initial insertion during laparoscopic surgery with enhanced visualization and optimal length Low-flow Pleur EvacChest drainage line upgrade to provide new low-flow technology to a broader base of facilitiesTaut Universal Balloon Open Access PortReceived FDA 510(k) approval late SeptemberProvides greater visual access and better seal Expected launch in late Q4'11 |
| 10 Third Quarter - Group Purchasing Organization Update Group Purchasing Organization ContractsAwarded 11 GPO contracts, including 3 new awards 6 in Respiratory Therapy 2 in Anesthesia 1 in Vascular Access 1 in Cardiac Care 1 in Dialysis Access Provides additional access and sustainability of future revenue growth |
| 11 THIRD QUARTER 2011 FINANCIAL REVIEW |
| 12 Third Quarter - Financial Results Revenue of $371.9 millionUp 7.8%Up 3.2% constant currencyGross margin of 47.9%Down 40 bps vs. prior yearUp 90 bps sequentiallyResearch & development spending up 17% from prior year to 3.3% of revenueOperating margin of 17.0%Up 120 bps vs. prior yearUp 170 bps sequentiallyAdjusted EPS of $1.03, up 4% vs. prior year |
| 13 THIRD QUARTER 2011 PRODUCT & GEOGRAPHIC REVENUE REVIEW |
| 14 Product Revenue Review Critical Care Surgical Care Cardiac Care OEM 0.66 0.18 0.05 0.11 Q3'11 Q3'10 Constant Currency Revenue Commentary Critical Care Surgical Care Cardiac Care OEM 0.66 0.18 0.05 0.11 Critical Care: $245.1 million, up 3.6% Surgical Care: $66.0, up 1.9%Vascular access - up 6.5%Respiratory - down 5.2%Urology - up 7.4%Anesthesia - up 2.7% Cardiac Care: $18.1 million, down 1.7% OEM: $42.4 million, up 5.6% Note: increases and decreases in revenue referred to above are as compared to results for the third quarter of 2010. |
| 15 Geographic Revenue Review North America EMEA Asia Pacific Latin America Japan OEM 0.41 0.34 0.07 0.04 0.03 0.11 Q3'11 Q3'10 Constant Currency Revenue Commentary North America EMEA Asia Pacific Latin America Japan OEM 0.44 0.32 0.06 0.04 0.03 0.11 North America: $152.5 million, up 1.4% EMEA: $127.1, up 3.3% Asia Pacific: $25.3 million, up 12.7% Latin America: $14.7 million, up 11.1%Japan: $9.8 million, down 12.3% OEM: $42.4 million, up 5.6% Note: increases and decreases in revenue referred to above are as compared to results for the third quarter of 2010. |
| 16 2011 OUTLOOK |
| 17 2011 Outlook |
| 18 CLOSING REMARKS |
| 19 Summary Good performance in third quarter, despite difficult macro environmentExpect continued top-line constant currency growth in Q4'11Expect gross and operating margins to expand from Q3'11 levels |
| 20 QUESTION & ANSWER |
| 21 APPENDICES |
| 22 Appendix A - Reconciliation of Teleflex Selling, General and Administrative Expenses |
| 23 Appendix B - Reconciliation of Teleflex Operating Expenses |
| 24 Appendix C - Special Charge Income Statement Classification Summary |
| 25 Appendix D - Quarter & Year-to-Date Reconciliation of Medical Constant Currency Revenue Growth |
| 26 Appendix E - Third Quarter Income Statement from Continuing Operations Amounts in Millions, except per share |
| 27 Appendix F - Third Quarter EPS Reconciliation from Continuing Operations In 2010, losses and other charges include approximately $20.9 million, net of tax, or $0.52 per share, related to the loss on extinguishment of debt. |
| 28 Appendix G - Year-to-Date Cash Flow Summary ($ in Millions) |
| 29 Appendix H - Reconciliation of 2011 Outlook Earnings per Share Guidance |
| 30 Appendix I - Quarter-to-Date Reconciliation of Critical Care Product Constant Currency Revenue Growth |
| 31 Appendix J - Quarter-to-Date Reconciliation of Regional Constant Currency Revenue Growth |