Teleflex Incorporated First Quarter 2025 Earnings Conference Call 5/1/2025 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 May 1, 2025 either on the Teleflex website or by telephone. The call can be accessed by dialing 1 800 770 2030 (U.S.) or 1 609 800 9909 (all other locations). The confirmation code is 69028. Today's Speakers Liam ...

Financial Performance - Revenues for Q1 2025 were $700.7 million, a decrease of 5.0% compared to the prior year period, and down 3.8% on an adjusted constant currency basis[5] - Consolidated net revenue for the three months ended March 30, 2025, was $700.7 million, a decrease of 5.0% compared to $737.8 million for the same period in 2024[34] - Revenue from the Americas segment was $475.7 million, down 3.7% from $494.0 million year-over-year[34] - The EMEA segment reported revenue of $151.2 million, reflecting a 5.3% decline from $159.6 million in the prior year[34] - Asia's revenue decreased by 12.4%, from $84.2 million to $73.8 million[34] - The Vascular Access product category saw a slight increase in revenue of 0.6%, totaling $182.4 million compared to $181.4 million in the previous year[35] - The OEM product category experienced a significant decline of 27.2%, with revenue dropping from $87.7 million to $63.9 million[35] - Gross profit for the same period was $389,439,000, down 6.4% from $416,134,000 year-over-year[47] - The company reported a net income of $95,002,000 for the three months ended March 30, 2025, compared to $15,289,000 in the same period last year, reflecting a significant year-over-year increase[51] Earnings Per Share (EPS) - GAAP diluted EPS from continuing operations was $2.07, compared to $0.33 in the prior year period; adjusted diluted EPS was $2.91, down from $3.21[5] - Earnings per share (EPS) from continuing operations for the three months ended March 30, 2025, was $2.08, compared to $0.33 for the same period in 2024, representing a 530.3% increase[47] - The company lowered its full year 2025 GAAP diluted EPS guidance to a range of $6.51 to $6.91, down from $8.85 to $9.25[12] - Adjusted diluted EPS guidance was lowered to a range of $13.20 to $13.60, reflecting a decrease of 5.8% to 2.9% year-over-year[13] Guidance and Projections - The company raised its full year 2025 GAAP revenue growth guidance to a range of 1.28% to 2.28%[11] - The expected impact from tariffs in 2025 is approximately $55 million, which will be recorded in cost of goods sold[5] Cash and Assets - Total cash, cash equivalents, and restricted cash equivalents at March 30, 2025, were $317.5 million, down from $327.7 million at December 31, 2024[12] - Total current assets rose to $1,538,914,000 as of March 30, 2025, compared to $1,471,124,000 at the end of 2024, indicating a 4.6% increase[49] - Cash and cash equivalents at the end of the period were $317,478,000, down from $327,650,000 at the beginning of the period, a decrease of 0.5%[51] Liabilities - Total liabilities increased to $3,068,126,000 from $2,819,774,000, marking an 8.8% rise[49] Restructuring and Acquisitions - The company incurred $1.5 million in pre-tax restructuring charges and $5.4 million in restructuring-related charges for the three months ended March 30, 2025[44] - The company incurred restructuring charges of $4,755,000 during the quarter, compared to $2,659,000 in the prior year, indicating increased costs associated with restructuring efforts[47] - Teleflex is in the process of acquiring the Vascular Intervention business of BIOTRONIK SE & Co. KG, with associated acquisition costs of $4.5 million[44] Accounts Receivable and Inventory - Net accounts receivable increased to $464.5 million at March 30, 2025, compared to $459.5 million at December 31, 2024[12] - Inventories rose to $644.0 million at March 30, 2025, compared to $600.1 million at December 31, 2024[12] Gross Margin - The adjusted gross margin for the three months ended March 30, 2025, was 60.4%, compared to 61.1% for the same period in 2024[36][37]

Financial Performance - Company reported net revenues of $700.7 million for the first quarter of 2025, a decrease of 5.0% compared to $737.8 million in the prior year period [8][34] - GAAP diluted earnings per share (EPS) from continuing operations was $2.07, compared to $0.33 in the prior year period [8][46] - Adjusted diluted EPS from continuing operations was $2.91, down from $3.21 in the prior year period [8][46] Revenue by Segment - In the Americas, net revenue was $475.7 million, down 3.7% from $494.0 million [5][34] - EMEA segment reported net revenue of $151.2 million, a decrease of 5.3% from $159.6 million [5][34] - Asia segment saw a decline of 12.4%, with revenues of $73.8 million compared to $84.2 million [5][34] Revenue by Product Category - Vascular Access category reported revenues of $182.4 million, a slight increase of 0.6% from $181.4 million [7][34] - Interventional category revenues increased by 2.1% to $137.5 million from $134.7 million [7][34] - Anesthesia revenues decreased by 10.1% to $86.6 million from $96.4 million [9][34] Guidance and Outlook - Company raised its full-year 2025 revenue growth outlook on a GAAP basis to a range of 1.28% to 2.28% [10][11] - Adjusted diluted EPS guidance for 2025 was lowered to a range of $13.20 to $13.60, down from $13.95 to $14.35 [11][12] - Expected impact from tariffs in 2025 is approximately $55 million, which will be recorded in cost of goods sold [8][11] Strategic Initiatives - Company is evaluating strategies to mitigate exposure to tariffs and remains focused on executing its plan for the year [3] - Plans to separate Teleflex into two independent publicly traded companies, with significant third-party interest in acquiring NewCo [3]

Company Overview - Teleflex Incorporated is a global provider of medical technologies focused on improving health and quality of life [2] - The company aims to become the most trusted partner in healthcare, offering a diverse portfolio in various therapy areas including anesthesia, emergency medicine, interventional cardiology, radiology, surgical, vascular access, and urology [2] Product Portfolio - Teleflex is home to several trusted brands such as Arrow™, Barrigel™, Deknatel™, QuikClot™, LMA™, Pilling™, Rüsch™, UroLift™, and Weck™, all united by a common purpose [3] Upcoming Events - Management of Teleflex will present at the BofA Securities 2025 Health Care Conference on May 14, 2025, at 1:40 p.m. (PT) [1] - A live audio webcast of the conference presentation will be available on the investor section of the Teleflex website [1]

Core Insights - Teleflex Incorporated has received FDA 510(k) clearance for an expanded indication of the QuikClot Control+™ Hemostatic Device, now covering all grades of internal and external bleeding [1][2][3] Company Overview - Teleflex is a global provider of medical technologies, focusing on improving health and quality of life through innovative solutions in various therapy areas including anesthesia, emergency medicine, and surgical procedures [5][6] Product Expansion - The QuikClot Control+™ Device was previously limited to class III and IV internal organ space bleeding and has now been expanded to include mild, moderate, severe, and life-threatening bleeding [1][3] - The expansion is expected to add over $150 million to Teleflex's serviceable addressable market in the U.S. [2] Clinical Evidence - The FDA clearance was supported by real-world evidence from a study involving 603 patients, demonstrating the device's effectiveness and safety across multiple anatomical sites [2][3] Market Impact - The expanded indication allows Teleflex to target a broader range of surgical procedures, including general surgery, gynecologic surgery, and orthopedic surgery, enhancing the potential for improved clinical outcomes [2][3]

WAYNE, Pa., April 24, 2025 (GLOBE NEWSWIRE) -- Teleflex Incorporated (NYSE:TFX), a leading global provider of medical technologies, today announced the presentation of several clinical studies at the 2025 American Urological Association Annual Meeting, which is being held in Las Vegas from April 26 - 29, 2025. These studies contribute to the expanding body of clinical and real-world evidence supporting innovations in benign prostatic hyperplasia (BPH) treatment and rectal spacing to protect tissue during ra ...

NEW YORK, March 30, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Teleflex Incorporated ("Teleflex" or the "Company") (NYSE: TFX). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980. The investigation concerns whether Teleflex and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. Attorney advertising. Prior results do not guarantee similar outcomes. C ...

Market Overview - Major U.S. equities indexes experienced declines as investors reacted to new tariff announcements and a drop in Nvidia shares, which fell 8.5% despite solid earnings [1] - The S&P 500 decreased by 1.6%, while the Nasdaq fell 2.8% due to weakness in technology stocks, and the Dow Jones Industrial Average ended 0.5% lower [2] Company-Specific Developments - Teleflex (TFX) shares dropped 21.7% after announcing plans to split into two companies [2] - Super Micro Computer (SMCI) fell 16% following reports of two officers filing to sell shares, alongside a delayed annual report [3] - Viatris (VTRS) stock declined by 15.2% due to weaker-than-expected earnings and a disappointing outlook, impacted by regulatory actions affecting profits [3] - Vistra Corp. (VST) shares decreased by 12.3% despite better-than-expected earnings, as other AI-related stocks also lost ground [4] - Invitation Homes (INVH) stock rose by 5.5% after reporting quarterly revenue and net income that exceeded analyst estimates [5] - Warner Bros. Discovery (WBD) shares increased by 4.7% after reporting weaker-than-expected earnings but providing a positive streaming outlook [6] - Allstate (ALL) shares rose 3.5% following the announcement of a dividend increase and a $1.5 billion share buyback program [6] - Universal Health Services (UHS) saw a 3.3% increase in shares after reporting better-than-expected earnings and a positive revenue outlook [7]

Financial Data and Key Metrics Changes - For Q4 2024, Teleflex reported revenues of $795.4 million, an increase of 2.8% year-over-year on a GAAP basis and 3.2% on an adjusted constant currency basis [11] - Adjusted earnings per share grew 15.1% to $3.89 [13] - For the full year 2024, adjusted constant currency revenues increased 3.1% year-over-year, while adjusted earnings per share was $14.01 [18] Business Line Data and Key Metrics Changes - Interventional and Surgical businesses showed strong performance with adjusted constant currency growth of 18.7% and 12.3% respectively in Q4 [11] - Interventional Urology revenue increased 3.7% on an adjusted constant currency basis, with growth in Palette offset by softness in the UroLift business [19] Market Data and Key Metrics Changes - Adjusted gross margin for Q4 was 60.1%, flat year-over-year, while adjusted operating margin was 27.6%, up 130 basis points [17] - Cash flow from operations increased 24.7% year-over-year to $638.3 million in 2024 [20] Company Strategy and Development Direction - Teleflex announced a definitive agreement to acquire the Vascular Intervention business from BIOTRONIK for approximately EUR760 million, aimed at enhancing growth and market presence in the cath lab [32] - The company plans to separate into two independent publicly traded companies, RemainCo and NewCo, to optimize product portfolios and drive growth [48][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 6%+ revenue growth for RemainCo post-separation, despite current challenges in the UroLift and OEM businesses [106] - The guidance for 2025 anticipates adjusted constant currency growth of 1% to 2%, reflecting headwinds from UroLift and inventory management by customers [24][103] Other Important Information - A noncash goodwill impairment charge of $240 million was recognized for the Interventional Urology North America reporting unit due to subdued revenue growth [21] - The company plans to finance the acquisition through a new term-loan and revolving borrowings under its existing senior credit facility [47] Q&A Session Summary Question: What prompted the review and timing for the separation? - Management indicated that continuous portfolio reviews led to the conclusion that separating the businesses would maximize shareholder value, especially with the addition of the BIOTRONIK business [78][80] Question: How will the sales force be structured post-acquisition? - The acquisition allows for leveraging Teleflex's strong presence in the Americas and BIOTRONIK's strength in EMEA, creating opportunities for synergy [84] Question: What is the growth outlook for the acquired assets? - The acquired portfolio is expected to deliver a constant currency revenue CAGR of 5.4% since 2022, with expectations for growth to exceed 6% post-acquisition [94] Question: What are the expected margins for RemainCo and NewCo? - RemainCo is expected to grow at 6%+ with mid-60s gross margins, while NewCo is anticipated to grow in the low single digits with mid-50s gross margins [118] Question: How will the capital structure be managed post-separation? - The capital structure for both companies will be defined in the coming quarters, with a focus on ensuring both have strong, viable futures [121]

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]