Q4 2024 Performance - Adjusted constant currency revenue grew by 3.2% year-over-year[9, 11] - Adjusted gross margin was 60.1%[9, 10] - Adjusted operating margin was 27.6%, up 130 bps year-over-year[9, 10] - Adjusted EPS was $3.89, a 15.1% increase year-over-year[9, 10] 2024 Full Year Performance - Revenue increased 2.4% year-over-year on a GAAP basis[37, 60] - Adjusted constant currency revenue increased 3.1% year-over-year[37, 60] - Adjusted gross margin was 60.7%, up 120 bps year-over-year[60] - Adjusted operating margin was 27.1%, up 60 bps year-over-year[60] - Adjusted EPS was $14.01, up 3.6% year-over-year[60] 2025 Financial Guidance - Adjusted constant currency revenue growth is projected to be between 1.00% and 2.00%[9, 15] - Adjusted diluted EPS from continuing operations is guided to be between $13.95 and $14.35[9, 15]

Core Insights - Teleflex reported revenue of $795.41 million for Q4 2024, a year-over-year increase of 2.8%, with an EPS of $3.89 compared to $3.38 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $813.53 million by 2.23%, while the EPS exceeded the consensus estimate of $3.86 by 0.78% [1] Financial Performance - The company’s shares returned -1.6% over the past month, slightly outperforming the Zacks S&P 500 composite's -2.2% change [3] - Teleflex holds a Zacks Rank 4 (Sell), indicating potential underperformance against the broader market in the near term [3] Geographic Revenue Breakdown - Americas revenue reached $540.80 million, exceeding the average estimate of $468.16 million by 20% year-over-year [4] - Asia revenue was $93.60 million, below the average estimate of $99.25 million [4] - EMEA revenue totaled $161 million, slightly below the average estimate of $164.54 million [4] Segment Revenue Analysis - Interventional revenues were $160.40 million, surpassing the average estimate of $158.48 million, reflecting an 18.3% year-over-year increase [4] - Interventional Urology revenues were $84.90 million, falling short of the average estimate of $92.23 million, marking an 8.7% decline year-over-year [4] - OEM revenues were $85.40 million, slightly above the average estimate of $84.13 million, with a year-over-year increase of 3.4% [4] - Vascular Access revenues were $189.30 million, below the average estimate of $201.17 million, but showing a 1.4% increase year-over-year [4] - Anesthesia revenues were $95.30 million, below the average estimate of $104.17 million, reflecting a 3% decline year-over-year [4] - Other revenues were $58.20 million, exceeding the average estimate of $55.18 million, but showing a 14.7% decline year-over-year [4] - Surgical revenues were $121.90 million, above the average estimate of $118.18 million, with an 11.2% year-over-year increase [4]

Core Insights - Teleflex (TFX) reported quarterly earnings of $3.89 per share, exceeding the Zacks Consensus Estimate of $3.86 per share, and showing an increase from $3.38 per share a year ago, resulting in an earnings surprise of 0.78% [1] - The company posted revenues of $795.41 million for the quarter ended December 2024, which was below the Zacks Consensus Estimate by 2.23%, but an increase from $773.91 million year-over-year [2] - Teleflex has surpassed consensus EPS estimates in all four of the last quarters, but has only topped revenue estimates once in the same period [2] Earnings Outlook - The sustainability of Teleflex's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $3.52 on revenues of $769.15 million, and for the current fiscal year, it is $15.18 on revenues of $3.22 billion [7] Industry Context - The Medical - Instruments industry, to which Teleflex belongs, is currently ranked in the top 33% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The performance of Teleflex's stock may be influenced by the overall industry outlook, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financing and Credit Agreements - Teleflex Incorporated has requested a new term loan facility to finance the Bison Acquisition, with a portion of the Revolving Credit Commitments not exceeding $550,000,000 available on a limited conditionality basis[4] - The amendment to the Existing Credit Agreement will be effective upon satisfaction of certain conditions, including the execution of the Amendment by the Loan Parties and Required Lenders[7] - The Loan Parties reaffirm the terms and conditions of the Credit Agreement, ensuring that all Loan Documents remain in full force and effect[18] - The Administrative Agent will receive all fees and expenses due prior to the Amendment Effective Date, ensuring compliance with financial obligations[11] - The amendment includes provisions for the Term A-2 Loan Facility, which is part of the financing strategy for the Bison Acquisition[4] - The Loan Parties represent that no Default or Event of Default has occurred and is continuing as of the date of the Amendment[14] - The amendment is governed by the laws of the State of New York, ensuring legal compliance and enforceability[19] - The Administrative Agent will notify the Borrower and the Lenders of the Amendment Effective Date, which will be conclusive and binding[13] - The amendment allows for electronic signatures, facilitating the execution process for all parties involved[20] - The joint lead arrangers for the Term A-2 Loan Facility include JPMorgan Chase Bank, N.A., Bank of America, N.A., and others, indicating strong financial backing for the acquisition[4] Company Performance and Growth - The company reported a revenue increase of 15% year-over-year, reaching $1.5 billion for the quarter[46] - User data showed a growth of 20% in active users, totaling 10 million users by the end of the quarter[46] - The company provided a forward guidance of 10% revenue growth for the next quarter, projecting revenues of approximately $1.65 billion[46] - New product launches contributed to 25% of total revenue, with the latest product line generating $375 million[46] - The company is investing $200 million in R&D for new technologies aimed at enhancing user experience[46] - Market expansion efforts have led to a 30% increase in sales in the Asia-Pacific region[46] - The company announced a strategic acquisition of a smaller competitor for $500 million to enhance market share[46] - The gross margin improved to 45%, up from 42% in the previous quarter[46] - The company plans to reduce operational costs by 5% through efficiency improvements in the supply chain[46] - A new partnership with a leading tech firm is expected to drive additional revenue of $100 million over the next year[46] - The company reported a significant increase in revenue, achieving $1.5 billion in Q3 2023, representing a 20% year-over-year growth[110] - User data showed a total of 10 million active users, up from 8 million in the previous quarter, indicating a 25% increase[110] - The company provided guidance for Q4 2023, projecting revenue between $1.6 billion and $1.8 billion, which would represent a growth rate of 15% to 20%[110] - New product launches are expected to contribute an additional $200 million in revenue in the next quarter[110] - The company is investing $50 million in R&D for new technologies aimed at enhancing user experience[110] - Market expansion plans include entering three new international markets by the end of 2024, targeting a 10% increase in global market share[110] - The company completed a strategic acquisition for $300 million, expected to enhance its product offerings and market position[110] - Cost reduction strategies are projected to save approximately $30 million annually, improving overall profitability[110] - The company reported a net income of $300 million, with a net profit margin of 20% for the quarter[110] - The total debt-to-equity ratio improved to 0.5, reflecting a stronger balance sheet and reduced financial risk[110] Bison Acquisition Details - The Bison Acquisition involves a total commitment of up to $550 million for the closing date revolving credit commitments[114] - The Bison Closing Date is contingent upon the satisfaction of specific conditions outlined in Section 4.03 of the agreement[112] - The Bison Closing Date Commitments include both Term A-2 Loan Commitments and Bison Closing Date Revolving Credit Commitments[113] - The Bison Closing Date Revolving Credit Commitments will expire on December 2, 2025, unless certain conditions are met[115] - The Bison Acquisition is part of a strategic move to expand the Vascular Intervention business segment[111] - The quality of earnings report for the Bison Acquisition will be prepared by the Borrower's independent public accountants[113] - The Bison Closing Date Revolving Credit Commitments are subject to conditions set forth in Sections 2.01(a)(i), 2.01(a)(ii), and 4.03[114] - The Borrower has the option to abandon the Bison Acquisition, which would trigger the termination of the related agreements[115] - The Bison Assets include both the Business Assets and the Equity Interests of the Bison Targets[111] - The Bison Acquisition is expected to enhance the company's market position in the healthcare sector[111] - The Borrower, Teleflex Incorporated, is involved in the Bison Transactions, which include the entry into the Bison Purchase Agreement and the borrowing of Term A-2 Loans[123] - The Bison Contribution is capped at an aggregate amount not to exceed the Dollar Equivalent of €50,000,000[119] - The Bison Purchase Agreement relates to the sale and purchase of the Vascular Intervention Business of Bison Seller, MS Holding II SE[120] - The Bison Closing Date Revolving Credit Loans are subject to conditions precedent as outlined in Section 4.03[117] - The Bison Closing Date Revolving Credit Loans Availability Period extends from the Amendment No. 1 Effective Date to the Bison Closing Date Revolving Credit Commitments Expiration Date[118] - The Bison Transactions involve the consummation of the Bison Acquisition and other related transactions[123] - The Borrower is required to comply with representations made by Bison Seller that are material to the interests of the Term A-2 Lenders[121] - The Borrower has the right to terminate obligations under the Bison Purchase Agreement if there is a breach of representations[121] - The Bison Seller is defined as MS Holding II SE, and the Bison Targets are the Target Companies as defined in the Bison Purchase Agreement[122] - The Bison Transactions include the payment of fees, costs, and expenses incurred in connection with the transactions[123] Financial Metrics and Ratios - The company reported a consolidated net income of $X million for the last fiscal quarter, reflecting a Y% increase compared to the previous quarter[165] - Consolidated EBITDA for the period was $X million, representing a Z% growth year-over-year[157] - The consolidated interest coverage ratio improved to A, indicating stronger ability to meet interest obligations[163] - The company achieved a consolidated total funded indebtedness of $X billion, with a consolidated total net leverage ratio of B[170] - User data showed an increase of C% in active users, reaching a total of D million users[1] - The company plans to launch new products in Q1 2024, aiming for a revenue contribution of $X million in the first year[1] - Market expansion efforts are underway in the E region, targeting a market share increase of F% by the end of 2024[1] - The company is exploring strategic acquisitions with a budget of up to $G million to enhance its product portfolio[1] - Research and development expenses increased by H%, focusing on innovative technologies to drive future growth[1] - The company provided guidance for the next quarter, expecting revenue between $X and $Y million, with an anticipated growth rate of Z%[1] Definitions and Terms - The aggregate amount of the Dollar Revolving Credit Lenders' Dollar Revolving Credit Sub-Commitments is $500,000,000 as of the Effective Date[190] - "Credit Exposure" for any Lender at any time is the sum of the Lender's Revolving Credit Exposure plus the aggregate principal amount of its Term Loans outstanding[175] - "Dollar LC Exposure" at any time is the sum of the aggregate undrawn amount of all outstanding Dollar Letters of Credit plus the aggregate amount of all LC Disbursements that have not yet been reimbursed[186] - "Defaulting Lender" is defined as any Lender that fails to fund any portion of its Loans within two Business Days of the required date[180] - "Environmental Liability" includes any liability resulting from violations of Environmental Laws or the handling of Hazardous Materials[198] - "Equity Interests" encompass corporate stock, partnership interests, and any other interests that confer rights to profits and losses[200] - "Covered Entity" includes entities defined under specific U.S. regulations related to financial institutions[174] - "Convertible Notes" refers to the notes issued by the Borrower as per the specified section[172] - "Daily Simple SOFR" is the interest rate per annum equal to SOFR for a specific day, determined five RFR Business Days prior[177] - "Designated Obligations" include all obligations of the Borrower related to principal and interest on Revolving Credit Loans and other fees[182]

Core Viewpoint - Teleflex Incorporated reported strong financial results for Q4 2024, highlighting double-digit adjusted earnings per share growth and a diversified portfolio that mitigated revenue softness in certain segments [4][6]. Financial Summary - Q4 2024 net revenue was $795.4 million, a 2.8% increase from Q4 2023, with adjusted revenue growth of 3.2% on a constant currency basis [7][9]. - Full year 2024 GAAP revenue reached $3,047.3 million, up 2.4% year-over-year, while adjusted revenue was $3,061.1 million, reflecting a 3.1% increase [8][9]. Segment Performance - In Q4 2024, the Americas segment generated $540.8 million in revenue, a 1.4% increase; EMEA segment revenue was $161.0 million, up 5.7%; and Asia segment revenue reached $93.6 million, a 5.9% increase [7][9]. - For the full year 2024, the Americas segment reported $2,066.3 million, a 1.2% increase; EMEA segment revenue was $618.0 million, up 5.4%; and Asia segment revenue was $363.0 million, a 4.7% increase [8][9]. Product Category Revenue - In Q4 2024, the Interventional category saw significant growth with revenues of $160.4 million, an 18.2% increase; Surgical revenues were $121.9 million, up 11.3%; while Interventional Urology revenues declined by 8.7% to $84.9 million [10][36]. - For the full year 2024, the Interventional category reported $586.0 million, a 14.6% increase; Surgical revenues were $450.5 million, up 5.4%; and Vascular Access revenues reached $732.7 million, a 3.5% increase [10][36]. 2025 Guidance - The company anticipates full year 2025 GAAP revenue growth of (0.35)% to 0.65%, with an adjusted constant currency revenue growth forecast of 1.0% to 2.0% [11][12]. - Expected GAAP diluted earnings per share for 2025 is projected to be between $8.85 and $9.25, while adjusted diluted earnings per share is expected to range from $13.95 to $14.35 [12][14]. Strategic Developments - Teleflex announced plans to acquire BIOTRONIK's Vascular Intervention business, enhancing its product offerings in coronary and peripheral intervention devices [4]. - The company intends to separate into two publicly traded entities, RemainCo and NewCo, to streamline operations and enhance management focus [4]. Share Repurchase Program - An accelerated share repurchase program of $300 million is set to commence, completing the previously authorized $500 million share repurchase program [15]. Goodwill Impairment - A non-cash goodwill impairment charge of $240 million was recognized in the Interventional Urology segment due to updated revenue forecasts reflecting market challenges [16].

Core Points - Teleflex Incorporated announced the retirement of Thomas E. Powell as Chief Financial Officer, effective April 1, 2025, with John R. Deren set to succeed him on April 2, 2025 [1][2] - Liam Kelly, Chairman and CEO, praised Powell's contributions, highlighting an 800 basis points increase in adjusted operating margin from 2012 to 2024, and emphasized the importance of succession planning for a smooth transition [2] - John Deren has over 30 years of financial management experience and has held various finance leadership roles within Teleflex since joining in 2013 [3] Company Overview - Teleflex is a global provider of medical technologies focused on improving health and quality of life, with a diverse portfolio in areas such as anesthesia, emergency medicine, interventional cardiology, and urology [4] - The company aims to be the most trusted partner in healthcare, driven by innovation and world-class products [4][5]

Core Viewpoint - Teleflex Incorporated plans to separate its Urology, Acute Care, and OEM businesses into a new independent publicly traded company, referred to as NewCo, through a tax-free distribution of newly issued shares to shareholders, expected to be completed by mid-2026 [1][5][13]. Group 1: Separation Details - The separation is driven by active portfolio management aimed at enhancing shareholder value and will allow RemainCo to focus on high-growth, hospital-centric end markets [2][5]. - RemainCo is projected to generate approximately $2.1 billion in revenue for 2024 and is expected to achieve constant currency revenue growth of over 6% post-separation [3][4]. - The transaction will streamline operations, reducing the number of manufacturing facilities from 19 to 7 for RemainCo, which will enhance operational efficiency and margin improvement opportunities [4][5]. Group 2: Business Focus Post-Separation - RemainCo will concentrate on Vascular Access, Interventional, and Surgical businesses, targeting high-acuity procedures primarily in hospital settings [3][5]. - NewCo will focus on Urology, Acute Care, and OEM markets, with an expected revenue of approximately $1.4 billion in 2024 and a mid-50% adjusted gross margin profile [10][11]. - NewCo anticipates low-single digit constant currency revenue growth, with potential for improvement as specific product lines recover and expand [11]. Group 3: Management and Financial Strategy - Liam Kelly will continue to lead RemainCo as its Chairman, President, and CEO [9]. - RemainCo aims for double-digit EPS growth in the first full year following the separation and plans to maintain a net leverage ratio below 3.0x through 2026 [7][8]. - NewCo will initiate an executive search for key management positions to ensure focused leadership in its specialized markets [12].

Core Viewpoint - Teleflex Incorporated has announced a definitive agreement to acquire the Vascular Intervention business of BIOTRONIK SE & Co. KG for approximately €760 million, aiming to enhance its presence in the interventional cardiology and peripheral vascular market, which is estimated to be worth $10 billion [1][2]. Group 1: Acquisition Details - The acquisition is expected to close by the end of the third quarter of 2025, subject to customary closing conditions and regulatory approvals [1]. - The acquired business will expand Teleflex's portfolio to include a range of vascular intervention devices, with 75% of the acquired revenues coming from coronary interventions and 25% from peripheral procedures [2][3]. - Key products in the acquired portfolio include drug-coated balloons, drug-eluting stents, and various stent types for both coronary and peripheral interventions [2]. Group 2: Strategic Implications - The acquisition is anticipated to significantly enhance Teleflex's global presence in the cath lab and improve patient care through an expanded suite of innovative technologies [2]. - The integration of BIOTRONIK's products is expected to complement Teleflex's existing complex percutaneous coronary intervention (PCI) platform and diversify its geographic revenue mix, with 50% of the acquired revenues generated in EMEA [2][3]. - Teleflex plans to leverage its established education and clinical platforms to further enhance the offerings to cardiac and peripheral care specialists [4][5]. Group 3: Financial Outlook - The acquired products are projected to generate approximately €91 million in revenues in the fourth quarter of 2025, with expected constant currency revenue growth of 6% or better starting in 2026 [6][7]. - The transaction is expected to be approximately $0.10 accretive to Teleflex's adjusted earnings per share in the first year of ownership, with increasing accretion thereafter [8]. - Teleflex intends to finance the acquisition through a new term loan, revolving borrowings, and cash on hand, while also entering into foreign exchange derivative contracts to hedge against currency exposure [9][8].

WAYNE, Pa., Feb. 27, 2025 (GLOBE NEWSWIRE) -- Teleflex Incorporated (NYSE:TFX), a leading global provider of medical technologies, today announced it has entered into a definitive agreement to acquire substantially all of the Vascular Intervention business of BIOTRONIK SE & Co. KG for an estimated cash payment on closing of approximately €760 million, less certain adjustments as provided in the purchase agreement including certain working capital not transferring and other customary adjustments. The acquisi ...

WAYNE, Pa., Feb. 18, 2025 (GLOBE NEWSWIRE) -- Management of Teleflex Incorporated (NYSE: TFX), will be presenting at the Raymond James & Associates 46th Annual Institutional Investors Conference at the JW Marriott Grande Lakes, Orlando, FL, on Tuesday, March 4, 2025, at 3:25 p.m. (ET). A live audio webcast of the conference presentation, along with the accompanying slide presentation, will be available on the investor section of the Teleflex website at teleflex.com. About Teleflex IncorporatedAs a global pr ...