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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,

Key Takeaway: In the third quarter of 2012, the impact of the amortization, net of tax, was approximately $2.3 million, or $0.06 per share. (C) The tax adjustment represents a net benefit resulting from the resolution of, or the expiration of statues of limitations with respect to various prio

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In the third quarter of 2012, the impact of the amortization, net of tax, was approximately $2.3 million, or $0.06 per share. (C) The tax adjustment represents a net benefit resulting from the resolution of, or the expiration of statues of limitations with respect to various prior years U.S. federal, state and foreign tax matters. Appendix G Reconciliation of 2013 Outlook Earnings per Share Guidance Low High Diluted earnings per share attributable to common shareholders $3.45 $3.60 Restructuring and impairment charges, net of tax $0.50 $0.50 Intangible amortization expense, net of tax $0.75 $0.75 Amortization of debt discount on convertible notes, net of tax $0.15 $0.15 Adjusted diluted earnings per share $4.85 $5.00 27 28 Appendix H Reconciliation of Teleflex Selling, General and Administrative Expenses September 29, 2013 September 30, 2012 Teleflex Selling, General and Administrative Expenses as Reported 115,228 $ 114,878 $ Add: Contingent Consideration Income 4,394 Less: Acquisition and Severance Costs (1,135) (9,862) Adjusted Teleflex Selling, General and Administrative Expenses 118,487 $ 105,016 $ $ thousands Three Months Ended 29 Appendix I Reconciliation of Teleflex Gross Profit September 29, 2013 September 30, 2012 Teleflex Gross Profit as Reported 203,992 $ 180,567 $ Add: Acquisition Costs 900 Add: North American Distribution Center and Severance Costs 898 Adjusted Teleflex Gross Profit 205,790 $ 180,567 $ $ thousands Three Months Ended
The interest rate swap was designated as a cash flow hedge against the term loan under the Company s senior credit facility. At the date of termination, the interest rate swap was in a liability position, resulting in a cash payment by the Company to the counterparty of approximately $14.8 million, which included $3.1 million of accrued interest. In accordance with GAAP, the Company amortized this amount as additional interest expense over the remainder of the original term of the interest rate swap, which expired in September 2012.
Under GAAP, the anti dilutive impact of the convertible note hedge agreements is not reflected in diluted shares. (A) In 2012, losses and other charges include approximately $8.4 million, net of tax, or $0.20 per share, related to acquisition costs. (B) In 2011, the Company terminated an interest rate swap that, at the date of termination, had a notional amount of $350 million.
(B) The tax adjustment represents a net benefit resulting from the resolution of, or the expiration of statues of limitations with respect to various prior years U.S. federal, state and foreign tax matters. 1.0 2.9 1,428 Appendix F EPS Reconciliation from Continuing Operations Quarter Ended September 30, 2012 26 Cost of goods sold Selling, general and administrative expenses Income taxes Net income (loss) attributable to common shareholders from continuing operations GAAP Basis $187.5 $114.9 $1.1 $18.2 $7.2 $24.3 $0.58 41,511 Adjustments Restructuring and other impairment charges Losses and other charges (A) 9.9 1.5 8.4 $0.20 Early termination of interest rate swap (B) 3.7 1.3 2.3 $0.06 Amortization of debt discount on convertible notes Intangible amortization expense 11.1 4.0 7.0 $0.17 Tax adjustment (C) Shares due to Teleflex under note hedge (D) Adjusted basis $187.5 $94.0 $11.8 $16.8 $43.0 $1.05 41,164 Restructuring and other impairment charges Loss on extinguishment of debt Interest expense, net Diluted earnings per share available to common shareholders Shares used in calculation of GAAP and adjusted earnings per share 1.1 0.4 0.7 $0.02 Loss on extinguishment of debt 2.7 1.0 1.7 $0.04 347 1.3 1.3 ($0.03) $0.01 (D) Adjusted diluted shares are calculated by giving effect to the anti dilutive impact of the convertible note hedge agreements, which reduce the potential economic dilution that otherwise would occur upon conversion of our senior subordinated convertible notes.
Under GAAP, the anti dilutive impact of the convertible note hedge agreements is not reflected in diluted shares. $0.13 1.8 3.3 0.9 $0.04 1.8 $0.04 (A) In 2013, losses and other charges include approximately ($4.4) million, net of tax, or ($0.10) per share, related to the reversal of a contingent consideration liability; $2.1 million, net of tax, or $0.05 per share, primarily related to acquisition and severance costs.
Reconciliation of these non GAAP measures to the most comparable GAAP measures is contained within this presentation. The following slides reflect continuing operations. THIRD QUARTER 2013 HIGHLIGHTS 5 Third Quarter Highlights Revenue of $413.8 million, up 11.6% constant currency vs. prior year Adjusted gross margin of 49.7%, up 67 bps vs. prior year Adjusted operating margins of 17.3%, up 80 bps vs. prior year Adjusted EPS of $1.33, up 26.7% vs. prior year 6 Third Quarter Highlights Price initiatives drove 109 bps of top line growth in Q3 2013 compared to Q3 2012 EMEA up 180 bps Americas up 103 bps Asia Pacific up 69 bps OEM down 34 bps Continue to expand GPO IDN relationships 9 new agreements (7 IDN; 2 GPO) 1 GPO agreement renewal 7 ARROW JACC with Chlorag+ard Technology First and only long term antimicrobial and antithrombogenic central venous catheter Designed for the placement of central venous catheters by Vascular Access Specialists Employs Chlorag+ard Technology as a weapon against thrombosis and infection for up to 30 days, effective against the full spectrum of bacterial and fungal pathogens PRODUCT DESCRIPTION Third Quarter Highlights LAUNCHED 8 Q3 2013 LMA International N.V. and affiliates Contributed revenue of approximately $34.0 million in Q3 2013 Integration and performance continues to be ahead of initial expectations Third Quarter Highlights 9 Leading provider of intraosseous (IO), or inside the bone, access devices for diagnostic monitoring and therapeutic applications Based in Shavano Park, TX 87 issued and 8 pending patent applications Unique platform technology for immediate vascular access and bone marrow biopsy based driver system Razor/Razor blade model (Driver and Needle) Patented technology with strong brand equity Expands vascular access product portfolio with a defining technology and moves TFX into the IO segment Strengthen EMS channel Nursing call points High gross and operating margin profile Strategic Acquisition Company Overview Strategic Fit Product Bone marrow aspirations, biopsies or harvesting Provides safe and rapid access to vertebrae during spinal surgery Strategic Acquisition Expected to contribute $68 to $72 million of Revenue and between $0.10 to $0.15 in Adjusted Earnings Per Share in 2014 Intraosseous Infusion System for immediate vascular access THIRD QUARTER 2013 FINANCIAL REVIEW 12 Financial Results Revenue of $413.8 million Up 12.4% vs. prior year on an as reported basis Up 11.6% vs. prior year on a constant currency basis Adjusted gross margin of 49.7% Up 67 bps vs. prior year Research development spending up 5.9% from prior year Adjusted operating margin of 17.3% Up 80 bps vs. prior year Up 145 bps vs. prior year when excluding medical device excise tax Adjusted EPS of $1.33 Up 26.7% vs. prior year 13 THIRD QUARTER PRODUCT SEGMENT REVENUE REVIEW 14 Product Revenue Review 70% 18% 4% 8% Critical Care Surgical Care Cardiac Care OEM Q3 13 Q3 12 Constant Currency Revenue Commentary 66% 19% 5% 10% Critical Care Surgical Care Cardiac Care OEM Critical Care: $289.3 million, up 17.9% Surgical Care: $73.2 million, up 3.9% Anesthesia up 66.9% Urology up 8.6% Vascular and interventional access up 4.9% Respiratory down 2.5% Cardiac Care: $17.6 million, down 1.6% OEM: $33.7 million, down 9.4% Note: Increases and decreases in revenue referred to above are as compared to results for the third quarter of 2012. 15 Segment Revenue Review 47% 32% 13% 8% Americas EMEA Asia OEM Q3 13 Q3 12 Constant Currency Revenue Commentary 46% 32% 12% 10% Americas EMEA Asia OEM Americas: $192.5 million, up 13.8% EMEA: $132.3 million, up 9.6% Asia: $55.3 million, up 25.2% OEM: $33.7 million, down 9.4% Note: Increases and decreases in revenue referred to above are as compared to results for the third quarter of 2012. 16 2013 FINANCIAL OUTLOOK 17 2013 Financial Outlook Constant currency revenue growth of between 8.5% to 10% Previously provided constant currency revenue growth range of 10% to 12% Adjusted gross margin of approximately 49.5% to 50% Previously provided adjusted gross margin range of 50% to 51% Including impact of medical device tax, adjusted operating margin expected to be between 16.0% to 17.0% Medical device tax expected to negatively impact year over year adjusted operating margin by ~ 1% Adjusted earnings per share expected to be between $4.85 to $5.00 Previously provided adjusted earnings per share range of $4.70 to $4.90 18 QUESTION ANSWER 19 APPENDICES 20 Appendix A Reconciliation of Product Constant Currency Revenue Growth Dollars in Millions 21 September 29, 2013 September 30, 2012 Constant Currency Currency Total Critical Care 289.3 $ 243.7 $ 17.9% 0.8% 18.7% Surgical Care 73.2 69.6 3.9% 1.3% 5.2% Cardiac Care 17.6 17.9 (1.6%) 0.0% (1.6%) OEM 33.7 36.9 (9.4%) 0.9% (8.5%) Net Revenues 413.8 $ 368.1 $ 11.6% 0.8% 12.4% Three Months Ended % Increase / (Decrease) Appendix B Reconciliation of Segment Constant Currency Revenue Growth Dollars in Millions 22 September 29, 2013 September 30, 2012 Constant Currency Currency Total Americas 192.5 $ 169.6 $ 13.8% (0.3%) 13.5% EMEA 132.3 116.0 9.6% 4.4% 14.0% Asia 55.3 45.6 25.2% (4.0%) 21.2% OEM 33.7 36.9 (9.4%) 0.9% (8.5%) Net Revenues 413.8 $ 368.1 $ 11.6% 0.8% 12.4% Three Months Ended % Increase / (Decrease) Appendix C Reconciliation of Critical Care Product Constant Currency Revenue Growth Dollars in Millions 23 September 29, 2013 September 30, 2012 Constant Currency Currency Total Vascular Interventional Access 112.6 $ 108.1 $ 4.9% (0.7%) 4.2% Anesthesia 91.0 54.0 66.9% 1.7% 68.6% Respiratory 42.9 43.4 (2.5%) 1.4% (1.1%) Urology 42.8 38.3 8.6% 3.2% 11.8% Critical Care Net Sales 289.3 $ 243.7 $ 17.9% 0.8% 18.7% Three Months Ended % Increase / (Decrease) Appendix D Third Quarter Income Statement from Continuing Operations Dollars in millions, except per share 24 Q3'13 Q3'12 Revenues 413.8 $ 368.1 $ 12.4% Adjusted gross profit 205.8 180.6 14.0% Adjusted gross margin 49.7% 49.1% Adjusted selling, general and administrative expenses 118.5 105.0 12.8% Research and development expenses 15.6 14.8 5.9% Adjusted operating expenses 134.1 119.8 12.0% 32.4% 32.5% Adjusted operating income 71.7 60.8 17.9% Adjusted operating margin 17.3% 16.5% (Income) / losses and other charges (1.5) 9.9 NA Restructuring and impairment charges 7.1 1.1 NA Operating income 66.0 49.8 32.5% Operating margin 16.0% 13.5% Interest expense, net 13.8 18.2 24.0% Loss on extinguishments of debt, net 1.3 NA Net income attributable to noncontrolling interest 0.2 0.2 24.5% Taxes / (benefit) on income from continuing operations 5.2 7.2 NA Income from continuing operations attributable to common shareholders 45.5 $ 24.3 $ 87.7% Diluted earnings per share available to common shareholders 1.05 $ 0.58 $ Appendix E EPS Reconciliation from Continuing Operations Quarter Ended September 29, 2013 25 Cost of goods sold Selling, general and administrative expenses Income taxes Net income (loss) attributable to common shareholders from continuing operations GAAP Basis $209.8 $115.2 $7.1 $1.3 $13.8 $5.2 $45.5 $1.05 43,264 Adjustments Restructuring and other impairment charges Loss on extinguishment of debt 1.3 0.5 0.8 $0.02 Losses and other charges (A) Amortization of debt discount on convertible notes Intangible amortization expense 12.5 4.2 8.3 $0.19 Tax Adjustment (B) 4.1 4.1 ($0.09) Shares due to Teleflex under note hedge (C) Adjusted basis $208.0 $106.0 $10.9 $17.4 $55.6 $1.33 41,836 Restructuring and other impairment charges Loss on extinguishment of debt Shares used in calculation of GAAP and adjusted earnings per share 7.1 1.5 5.6 2.3 ($0.05) Interest expense, net Diluted earnings per share available to common shareholders (C) Adjusted diluted shares are calculated by giving effect to the anti dilutive impact of the convertible note hedge agreements, which reduce the potential economic dilution that otherwise would occur upon conversion of our senior subordinated convertible notes.
Constant currency revenue growth excludes the impact of translating the results of international subsidiaries at different currency exchange rates from period to period. Adjusted selling, general and administrative expenses and adjusted operating expenses exclude income related to contingent consideration and costs associated with acquisitions. Adjusted operating income and margin exclude certain losses and other charges, restructuring and impairment charges and (gain) loss on sale of businesses and assets.
In addition, the calculation of diluted shares within adjusted earnings per share gives effect to the anti dilutive impact of the Company s convertible note hedge agreements, which reduce the potential economic dilution that otherwise would occur upon conversion of the Company s senior subordinated convertible notes (under GAAP, the anti dilutive impact of the convertible note hedge agreements is not reflected in diluted shares).
Adjusted diluted earnings per share excludes, depending on the period presented, (i) the effect of charges associated with our restructuring program, as well as goodwill and other asset impairment charges; (ii) loss on extinguishment of debt; (iii) the gain or loss on sales of businesses and assets; (iv) losses and other charges related to acquisition costs, the reversal of reserves related to certain contingent consideration liabilities and a previously announced stock keeping unit rationalization program, and a litigation verdict against the Company with respect to a non operating joint venture; (v) the amortization of the debt discount on the Company s convertible notes; (vi) charges associated with the amortization of additional interest expense related to an interest rate swap terminated in 2011; (vii) intangible amortization expense; and (viii) tax benefits resulting from the resolution of prior years tax matters and the filing of prior years amended tax returns.
These risks and uncertainties are addressed in our SEC filings, including our most recent Form 10 K. This presentation includes certain non GAAP financial measures, which include revenue growth on a constant currency basis; adjusted gross profit and margin; adjusted operating income and margins; adjusted earnings per share; adjusted selling, general and administrative expenses; and adjusted operating expenses.
1 TELEFLEX INCORPORATED THIRD QUARTER 2013 EARNINGS CONFERENCE CALL Exhibit 99.1 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 49689482 2 Introductions Benson Smith Chairman, President and CEO Thomas Powell Executive Vice President and CFO Jake Elguicze Treasurer and Vice President of Investor Relations 3 Forward Looking Statements/Additional Notes 4 This presentation and our discussion contain forward looking information and statements including, but not limited to, our acquisition of Vidacare Corporation and its expected contribution to our 2014 revenue and adjusted earnings per share results; forecasted 2013 constant currency revenue growth; forecasted 2013 gross and adjusted operating margins; expected impact of the medical device tax on adjusted operating margin; forecasted 2013 adjusted earnings per share; 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.
Last updated: Oct 30, 2013