Teleflex Reports Third Quarter Financial Results And Full

WAYNE, Pa., Oct. 27, 2022 (GLOBE NEWSWIRE) — Teleflex Incorporated (NYSE: TFX) (the “Company”) at the moment introduced monetary outcomes for the third quarter ended September 25, 2022.

Third quarter monetary abstract

• Revenues of $686.8 million, down 1.9% year-over-year; up 2.4% on a continuing forex foundation
• GAAP diluted EPS from persevering with operations of $2.16, in comparison with $4.20 within the prior 12 months interval
• Adjusted diluted EPS from persevering with operations of $3.27, in comparison with $3.51 within the prior 12 months interval

2022 steering abstract

• Lowering GAAP income development steering to (0.75)% to 0.25%
• Maintaining fixed forex income development steering of three.25% to 4.25%
• Lowering GAAP EPS from persevering with operations steering to $7.74 to $8.14 from $8.04 to $8.44 prior
  
• Lowering adjusted diluted EPS from persevering with operations steering to $12.80 to $13.20 from $13.00 to $13.40 prior

“Our third quarter financial results reflect revenue contributions from our high-growth portfolio and durable core” mentioned Liam Kelly, Teleflex’s Chairman, President and Chief Executive Officer. “We continue to execute on our long-term strategic objectives, deploying capital to purchase Standard Bariatrics, Inc. The acquisition of Standard Bariatrics is consistent with our long-standing M&A strategy, including an expectation for revenue and margin accretion over time. During the quarter, we saw stabilization in logistics and distribution, while supply chain challenges have yet to normalize.”

NET REVENUE BY SEGMENT
The following desk gives data concerning web revenues in every of the Company’s reportable working segments for the three and 9 months ended September 25, 2022 and September 26, 2021 on each a GAAP and fixed forex foundation.

NET REVENUE BY GLOBAL PRODUCT CATEGORY
The following desk gives data concerning web revenues in every of the Company’s international product classes for the three and 9 months ended September 25, 2022 and September 26, 2021 on each a GAAP and fixed forex foundation.

OTHER FINANCIAL HIGHLIGHTS

• Depreciation expense, amortization of intangible belongings and deferred financing expenses for the 9 months ended September 25, 2022 totaled $174.1 million in comparison with $182.1 million for the prior 12 months interval.
• Cash and money equivalents at September 25, 2022 had been $397.3 million in comparison with $445.1 million at December 31, 2021.
• Net accounts receivable at September 25, 2022 had been $391.3 million in comparison with $383.6 million at December 31, 2021.
• Inventories at September 25, 2022 had been $530.1 million in comparison with $477.6 million at December 31, 2021.

2022 OUTLOOK
On a GAAP foundation, full 12 months 2022 income development outlook is now anticipated to be (0.75)% to 0.25%, reflecting our estimate of an roughly 4.00% damaging influence of international change fee fluctuations. On a continuing forex foundation, the Company maintained its full 12 months 2022 income development steering of three.25% to 4.25%, inclusive of a year-over-year headwind from the preliminary part of the respiratory divestiture accomplished on June 28, 2021, anticipated to be roughly 1.10%.

The Company revised its full 12 months 2022 GAAP diluted earnings per share from persevering with operations outlook to $7.74 to $8.14 from $8.04 to $8.44. The Company lowered its 2022 adjusted diluted earnings per share from persevering with operations steering to $12.80 to $13.20 from $13.00 to $13.40, which features a headwind from the respiratory divestiture now anticipated to be $0.14, representing a 4.0% to 1.0% decline on a year-over-year foundation.

Forecasted 2022 Constant Currency Revenue Growth Reconciliation

Forecasted 2022 Adjusted Diluted Earnings Per Share From Continuing Operations Reconciliation

CONFERENCE CALL WEBCAST AND ADDITIONAL INFORMATION
A webcast of Teleflex’s third quarter 2022 investor convention name might be accessed reside from a hyperlink on the Company’s web site at teleflex.com. The name will start at 8:00 am ET on October 27, 2022.

An audio replay of the investor name shall be accessible starting at 11:00 am ET on October 27, 2022, both on the Teleflex web site or by phone. The name might be accessed by dialing 1 (866) 813-9403 (U.S.), 1 226 828 7578 (Canada), 0204 525 0658 (UK), 44 204 525 0658 (all different places).

The affirmation code is 716622.

ADDITIONAL NOTES
References on this launch to the influence of international forex change fee fluctuations on adjusted diluted earnings per share embrace each the influence of translating foreign exchange into U.S. {dollars} and the influence of international forex change fee fluctuations on international forex denominated transactions.

In the dialogue of phase outcomes, “new products” refers to merchandise for which we initiated business gross sales inside the previous 36 months and “existing products” refers to merchandise we’ve offered commercially for greater than 36 months.

Certain monetary data is offered on a rounded foundation, which can trigger minor variations. Segment outcomes and commentary exclude the influence of discontinued operations.

NOTES ON NON-GAAP FINANCIAL MEASURES
We report our monetary leads to accordance with accounting rules usually accepted within the United States, generally known as “GAAP.” In this press launch, we offer supplemental data, consisting of the next non-GAAP monetary measures: fixed forex income development and adjusted diluted earnings per share. These non-GAAP measures are described in additional element under. Management makes use of these monetary measures to evaluate Teleflex’s monetary efficiency, make working choices, allocate monetary assets, present steering on doable future outcomes, and help in its analysis of period-to-period and peer comparisons. The non-GAAP measures could also be helpful to buyers as a result of they supply perception into administration’s evaluation of our business, and supply supplemental data pertinent to a comparability of period-to-period outcomes of our ongoing operations. The non-GAAP monetary measures are offered along with outcomes offered in accordance with GAAP and shouldn’t be relied upon as an alternative choice to GAAP monetary measures. Moreover, our non-GAAP monetary measures might not be akin to equally titled measures utilized by different firms.

Tables reconciling modifications in historic fixed forex web revenues to historic GAAP web revenues are set forth above beneath “Net Revenue by Segment” and “Net Revenue by Global Product Category”. Tables reconciling historical adjusted diluted earnings per share from continuing operations to historical GAAP diluted earnings per share from continuing operations are set forth below.

Constant currency revenue growth: This non-GAAP measure is based upon net revenues, adjusted to eliminate the impact of translating the results of international subsidiaries at different currency exchange rates from period to period. The impact of changes in foreign currency may vary significantly from period to period, and such changes generally are outside of the control of our management. We believe that this measure facilitates a comparison of our operating performance exclusive of currency exchange rate fluctuations that do not reflect our underlying performance or business trends.

Adjusted diluted earnings per share: This non-GAAP measure is based upon diluted earnings per share from continuing operations, the most directly comparable GAAP measure, adjusted to exclude, depending on the period presented, the items described below. Management does not believe that any of the excluded items are indicative of our underlying core performance or business trends.

Restructuring, restructuring related and impairment items – Restructuring programs involve discrete initiatives designed to, among other things, consolidate or relocate manufacturing, administrative and other facilities, outsource distribution operations, improve operating efficiencies and integrate acquired businesses. Depending on the specific restructuring program involved, our restructuring charges may include employee termination, contract termination, facility closure, employee relocation, equipment relocation, outplacement and other exit costs associated with the restructuring program.  Restructuring related charges are directly related to our restructuring programs and consist of facility consolidation costs, including accelerated depreciation expense related to facility closures, costs to transfer manufacturing operations between locations, and retention bonuses offered to certain employees as an incentive for them to remain with our company after completion of the restructuring program. Impairment charges occur if, due to events or changes in circumstances, we determine that the carrying value of an asset exceeds its fair value. Impairment charges do not directly affect our liquidity, but could have a material adverse effect on our reported financial results.

Acquisition, integration and divestiture related items – Acquisition and integration expenses are incremental charges, other than restructuring or restructuring related expenses, that are directly related to specific business or asset acquisition transactions.  These charges may include, among other things, professional, consulting and other fees; systems integration costs; legal entity restructuring expense; inventory step-up amortization (amortization, through cost of goods sold, of the increase in fair value of inventory resulting from a fair value calculation as of the acquisition date); fair value adjustments to contingent consideration liabilities; and bridge loan facility and backstop financing fees in connection with loan facilities that ultimately were not utilized. Divestiture related activities involve specific business or asset sales.  Depending primarily on the terms of a divestiture transaction, the carrying value of the divested business or assets on our financial statements and other costs we incur as a direct result of the divestiture transaction, we may recognize a gain or loss in connection with the divestiture related activities.

European medical device regulation – The European Union (“EU”) has adopted the EU Medical Device Regulation (“MDR”), which replaces the existing Medical Devices Directive (“MDD”) and imposes more stringent requirements for the marketing and sale of medical devices in the EU, including requirements affecting clinical evaluations, quality systems and post-market surveillance.  The MDR requirements became effective in May 2021, although certain devices that previously satisfied MDD requirements can continue to be marketed in the EU until May 2024, subject to certain limitations. Significantly, the MDR will require the re-registration of previously approved medical devices.  As a result, Teleflex will incur expenditures in connection with the new registration of medical devices that previously had been registered under the MDD. Therefore, these expenditures are not considered to be ordinary course expenditures in connection with regulatory matters (in contrast, no adjustment has been made to exclude expenditures related to the registration of medical devices that were not registered previously under the MDD).

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 useful lives. The amount of such amortization can vary from period to period as a result of, among other things, business or asset acquisitions or dispositions.

Tax adjustments – These adjustments represent the impact of the expiration of applicable statutes of limitations for prior year returns, the resolution of audits, the filing of amended returns with respect to prior tax years and/or tax law or certain other discrete changes affecting our deferred tax liability.

Reconciliation of Consolidated Statement of Income Items (Dollars in millions, except per share data)

Tickmarks to Reconciliation Tables

(A)   Restructuring, restructuring related and impairment items – For the three months ended September 25, 2022, pre-tax restructuring charges were $0.6 million and restructuring related charges were $6.9 million. For the three months ended September 26, 2021, pre-tax restructuring charges were $1.0 million; and pre-tax restructuring related charges were $7.4 million. For the nine months ended September 25, 2022, pre-tax restructuring charges were $1.5 million, restructuring related charges were $22.4 million, and impairment charges were $1.5 million. For the nine months ended September 26, 2021, pre-tax restructuring charges were $13.7 million; pre-tax restructuring related charges were $22.0 million; and pre-tax impairment charges were $6.7 million.

(B)   Acquisition, integration and divestiture related items – For the three months ended September 25, 2022, these charges related to the acquisition of Standard Bariatrics, Inc. and the gain related to a sale of a building. For the three months ended September 26, 2021, these charges primarily related to contingent consideration liabilities and charges primarily related to our divestiture of certain respiratory assets.   For the nine months ended September 25, 2022, these charges related to the acquisition of Standard Bariatrics, Inc., the divestiture of respiratory assets, and the gain related to a sale of a building. For the nine months ended September 26, 2021, these charges primarily related to our divestiture of certain respiratory assets, contingent consideration liabilities, and an inventory step up for the Z-Medica, LLC acquisition.

(C)   Other – For the three months ended September 26, 2021, other items were associated with expenses for tax matters and a benefit from the reversal of a contingent liability related to tariffs. For the nine months ended September 26, 2021, other items were associated with debt extinguishment and a benefit from the reversal of a contingent liability related to tariffs and expenses associated with tax matters.

ABOUT TELEFLEX INCORPORATED

Teleflex is a global provider of medical technologies designed to improve the health and quality of people’s lives. We apply purpose driven innovation – a relentless pursuit of identifying unmet clinical needs – to benefit patients and healthcare providers. Our portfolio is diverse, with solutions in the fields of vascular access, interventional cardiology and radiology, anesthesia, emergency medicine, surgical, urology and respiratory care. Teleflex employees worldwide are united in the understanding that what we do every day makes a difference. For more information, please visit teleflex.com.

Teleflex is the home of Arrow^®, Deknatel^®, LMA^®, Pilling^®, QuikClot^®, Rusch^®, UroLift^®, and Weck^® – trusted brands united by a common sense of purpose.

CAUTION CONCERNING FORWARD-LOOKING INFORMATION
This press release contains forward-looking statements, including, but not limited to, statements regarding our expectation that our acquisition of Standard Bariatrics will be accretive to our revenues and margins over time; forecasted 2022 GAAP and constant currency revenue growth and GAAP and adjusted diluted earnings per share; our estimates regarding the projected impact of foreign currency exchange rate fluctuations on our 2022 financial results; and our estimates with regard to the projected impacts of the divestiture of a significant portion of our respiratory business on our financial results.   Actual results could differ materially from those in the forward-looking statements due to, among other things, the adverse economic conditions associated with the COVID-19 global health pandemic and the associated financial crisis, stay-at-home and other orders, which may significantly reduce customer spending and which may have a negative impact on the Company’s business, changes in business relationships with and purchases by or from major customers or suppliers; delays or cancellations in shipments; demand for and market acceptance of new and existing products; our inability to provide products to our customers, which may be due to, among other things, events that impact key distributors, suppliers and third-party vendors that sterilize our products; our inability to integrate acquired businesses into our operations, realize planned synergies and operate such businesses profitably in accordance with our expectations; the inability of acquired businesses to generate revenues in accordance with our expectations; our inability to effectively execute our restructuring plans and programs; our inability to realize anticipated savings from restructuring plans and programs; the impact of healthcare reform legislation and proposals to amend, replace or repeal the legislation; changes in Medicare, Medicaid and third party coverage and reimbursements; the impact of enacted tax legislation and related regulations; competitive market conditions and resulting effects on revenues and pricing; increases in raw material costs that cannot be recovered in product pricing; global economic factors, including currency exchange rates, interest rates, trade disputes, sovereign debt issues and international conflicts and hostilities, such as the ongoing geopolitical conflict between Russia and Ukraine; public health epidemics; difficulties in entering new markets; general economic conditions; and other factors described or incorporated in our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K. We expressly disclaim any obligation to update forward-looking statements, except as otherwise specifically stated by us or as required by law or regulation.

Contacts:
Teleflex Incorporated:
Lawrence Keusch
Vice President, Investor Relations and Strategy Development

John Hsu, CFA
Vice President, Investor Relations

investors.teleflex.com
610-948-2836