TFX - Earnings call transcript Q4 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen and welcome to the Teleflex Incorporated Fourth Quarter 2018 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to Mr. Jake Elguicze, Treasurer and Vice President of Investor Relations. Sir, you may begin.

Jake Elguicze

welcome call. Teleflex and XXXX fourth everyone conference earnings morning, to Incorporated the quarter Good release slides press our The and website available call at on are www.teleflex.com. to accompany this on be available dialing reminder, will this passcode And calls, for by and XXXXXXX. as will be XXX-XXX-XXXX a available replay a our international call XXX-XXX-XXXX or website Participating Officer Financial Executive Powell, and Chief and Officer. call Vice Liam President Kelly, are today’s Thomas on and Executive Chief President the call then Liam up and we prepared and will Q&A. Tom will to provide remarks open

could materially. well Before in will be SEC, you events to materially events risks not differ matters statements Form can but accessed nature are we such slides. to some differ call The that and I results that are or uncertainties remind results and press XX-K, future that would website. may you the our statements including begin, factors I’d in on Liam. today the said, and to factors like over in We are of the caution forward-looking actual wish as regarding contain subject discussed our that outlined to or in call to with conference like forward-looking With events which the include, our in filings turn release to to cause limited our actual our referenced as as fact

Liam Kelly

everyone. pleasure speak to morning a with It’s and good again. Thank you, Jake you

second and our Urology This Interventional are business performance saw me our well Interventional North quarter North Let in many to executed businesses. how XXXX. We was within with America, and Access particularly fourth year. across the units, of by saying we pleased Asia America, finish our the the OEM start results led strong we by half of

first X.X%. top XX% revenue we gained restructuring the coupled second adjusted in earnings growth line growth as of with the continued currency year growth of organic drove year various moved expected, accelerated execution This XXXX. compared per the the approximately resulting share to organic momentum constant half, in revenue on year half As delivering during full throughout we as achievement, initiatives

also We us should important next well and that milestones regulatory several achieved position years. for several the clinical

Some of vascular fourth publishing receiving with obtaining real February that Percuvance, closure approval X and With UroLift; quarter in UroLift the Shonin overview data summary, and milestones provide world on include: results. XXX(k) you product. Japan; recently clinical for our PMA me let of receiving new large-bore acquired for those our as a on MANTA, an the

basis X.X% currency with NeoTract During by quarter strong families. in quarter from four, reported and was growth a a quarter growth four product constant organic basis, becoming on with currency a small revenue contribution organic driven only grew X.X% legacy on X.X% fourth constant revenue from combined M&A,

practices. awareness a the and we clinical relevant consistent physicians Interventional The their outcomes call nearly use among lobe compared an data our quarter the UroLift nearly four fourth in year. Turning continued team benign minimally treatment UroLift Urology, demonstrated LIFT business data were for were outstanding of with which XX-month of low with invasive X-year to men very as Fourth median showing level an continued separate it, year men adopt into to quarter study prostate XX% published prior full or publications hyperplasia. option And million, obstructive up conducted revenues rapidly with we $XXX.X from full million, in quarter XX% of while period. the year up revenues year-over-year a to NeoTract, survey, the also as had of $XX.X

to North year to again America was growth the of initiated revenue in continues $XX.X Vascular robust reached distributor growth half benefit second XXXX. over XX% global once to the of prior Solutions, Vascular which worldwide million, in conversions Turning from fourth period. both represented compared revenues Solutions and quarter the we EMEA, which

XX% up the were million, globally year-over-year. $XXX.X revenues year, full VSI For about

metrics, an to translated the $X.XX respectively earnings year Turning a XX.X% per basis year the share the our expanding quarter, key into was our operating XXXX With share four of revenue points adjusted overview, margins other quarter range. $X.XX that XXXX currency XX.X% growth, an revenue which increase X.X%. detail. is both up near previously we Fourth XX% with This in the of currency increase $XXX.X growth our reached saw approximately prior increased as perspective, of for XXXX. revenue some quarter quarter, four, an But XXX fourth quarter constant totaled adjusted look components million, on period. and at the and of during is over from constant top per let’s basis. over end during now quarter organic adjusted and revenue Beginning XX.X% a X.X% from of full guidance more which of earnings organic gross

line product from product in surgical by and which added shipping volumes, constant introductions. impact impact pricing, the product exit, This should contributors from X surgical line last day product had X.X% X.X% the new about of shipping of period consisted XX additional fourth we have added points. quarter, partially surgical were These which growth which divestiture. basis offset day positive line organic impact the excluding meaningful and which product X.X% exit from negatively XX quarter the four and be We basis any impacted the the Our about the by in growth X.X%, points.

four growth constant organically had M&A X.X%, in thereby currency In about growing points, quarter revenues of from addition contribution our XX X.X%. basis our we to revenue ‘XX, also making total

X.X% performance growth a and to million driven increased North Turning America $XX.X revenue Vascular by revenue in by to constant segment, on navigation quarter visual strong basis products currency fourth our PICC, next EZ-IO.

which quarter as the America, growth well The of North here is Interventional sales increase was million, in higher XX.X% of an OnControl. Solutions products Vascular currency result to Moving constant a as is increase approximately $XX.X fourth on revenue basis. primarily of

X% which X.X% products. on of our airway North increase Turning to currency is Surgical a $XX.X Anesthesia basis. an our revenue to America million. in constant driven $XX.X surgical by on of were was a segment in $X North low-margin Shifting this our four. in was a a America, fourth Growth million business, decreased and currency decision million, about basis impacted XXXX, constant headwind quarter to by Surgical product which to revenues exit quarter revenue EZ-IO caused

was fourth to convergence by to overseas quarter basis sales revenues on as driven in X.X% distributor access a well largely currency of as operations, Moving million. our were up EMEA $XXX.X EMEA products. Growth increased constant vascular

Japan growth a China quarter country year. and a by expanded on within revenue this X.X% growth to currency $XX.X product the basis was driven and access in difficult the products. region But revenue X.X% perspective, fourth approximately standpoint, Now revenues from Southeast constant comparison most to surgical interventional increased strong whose despite million. Asia, From of was Asia, a

our like would I on brief OEM to segment. Next, you

up sales quarter, fourth to XX.X% and constant the for currency quarter revenue basis UroLift. basis, constant Other businesses currency of quarter volumes performance a That is million. in million. was four attributable XX.X% here was revenue $XXX.X up revenues comments $XX.X completes was During on to category fourth fiber approximately continued All a due on reached totaling and my our products. increase lastly, performance. catheter strong on OEM The primarily Growth revenue the within And

not the nearly the regulatory year the for urology UroLift, brief quarter Turning important and achieved did to milestones a reimbursement in business but closed XX%, only spectacular fourth clinical, out UroLift, grow a on revenue by unit interventional categories. update

Shonin UroLift were Let received November, pleased In me a few we recent the very to more highlight Japan. of approval announce milestone achievements. in

some Given investments approval mid-XXXX. expected than key pre-commercial a accelerate expected, opinion to earlier to reimbursement work with that leading ahead this obtaining urologists and have our came decided of launch in bit limited we

UroLift Japan like build how will follow our a are market As plan a the we process in U.S. a market. for reminder, to building methodical

prostatic as they our team study X-year and PMDA-mandated for results men quality reimbursement of This improvements we of significant the the physician at many is We continue obtaining few will study. implanting medical disease, the years. centers showing obstructive lobe clinical their clinical physicians. symptoms commercialization real an in for moves life in will technique. is In Seeing from LIFT consistent and to on over devices achievement thrilled outcomes with academic we be have past commercial reimbursement XX-month published in UroLift in to study product a tool complete In to full established, cancer build are the BPH BPH provides will the with prostate training commercialization, lobe a an improve additional the clinical that to initial begin with with accomplished XX UroLift the as and a to postmarket clinical begin rare parallel this experience, median XX-month were using world a enrolling median followed commercial launch. from December, of Once with we believe by strong process. initial

and of options. survey BPH aware We commissioned the recently also BPH patients available. were that that demonstrated its awareness to available understand a were treatments treatment in minimally The for X% better surveyed of only U.S. survey invasive patient

approximately efficacious UroLift strong with completely an positive its More XXX,XXX announce year scratched into in total in this announced that for invasive and risk only minimally treatment solution has obvious thrilled carry UroLift milestone our of full objective multi-year incontinence. lastly, the that continued UroLift UroLift penetrating patient bringing to large likely of XXXX has were treatment care we the XXX of the positioned receiving of are only to less physicians revenues believe a covered continue as BPH more We of highly think clearly to by over minimally to Humana, over very lives, Interventional our And deeper if very their in confidence likely experience BPH. a XX% is we the incident Clearly, they new-onset said invasive reimbursement sexual States. the the X have X treating that XX% exceptionally shown surface approximately either UroLift procedures decision date, high somewhat BPH. lives men the business the coverage Additionally, United market. year-over-year helped adding Longer million treat Urology expect as symptoms practice. become from their the for we dysfunction, over of will have has that is in and BPH. financial seek for revolutionized term, or And we to large to leadership UroLift of or adopt of recently, covered prostate position they therapy impotence million grow standard that,

anticipated is X, biomechanical approval, we vascular now approval review. quarter pleased the closure to this With February our no access on that were to pre-market site received Turning arterial FDA. of femoral This MANTA panel device XXXX second available for large-bore FDA MANTA designed commercially MANTA, the announce ahead was XXXX, assuming first approval from specifically closure.

market for growth commercial include $XXX million the ensure commercial global the And initial building effort market XXXX million. believe in $XXX MANTA to our we in support long-term to physicians U.S. product. with quarter the to limited be release continue of in this We infrastructure to the outcomes that key approximately thought-leading to will strong further second invest a

not do amount we the revenues U.S. XXXX such, significant expect time the frame. As a MANTA in of in

several me of sales is is adopting significant strategic are list the growth. is organization will Let continued with The XXXX. initiatives our and now UroLift. of physicians momentum of for primary articulate another At deep as commercial the result coverage tailwinds and a plan starting to XXXX more body expand year go-deep think in that to in playbook motivated, well United moment proven UroLift unit Interventional continues strong strong penetration take methodically driving the is we We Urology We to revenue business the strategy The the in States. we practice, significantly don’t established. in broad organization their and XXXX. our UroLift’s continue the to clinical growth into plan businesses. executing is change grow invest of The to leverage next the our initiative commercial reimbursement simply evidence top

or constant We investments sustainable to have currency accelerate revenue support that organic XXXX is key growth period. a decided that will multi-year in either accelerated proactively expand over believe we

term, the near think right While we our operating company. this expansion long-term to headwinds strategic for some it margin the will decision create is in

on earlier $X market. the UroLift leading for focused given believe what be expected than opinion is such, country. address accelerating key investments pre-commercial investments we As a in to in Japan, we approval billion urologists that are These will

digital our expanding We in a are also following pilot positive marketing and XXXX. in initiatives XXXX direct-to-consumer

a of Following we its the infrastructure MANTA are to focus building XXXX. with XXXX further in revenue Medical, the Essential and acquisition commercial accelerating on support growth

through to are XXXX, Asia Next, and and meaningful business growth and region And continues be continue clinical EZ-IO behind to our expect that to resources a resources. driver lastly, support we putting drive we additional we to growth that product. additional sales with plan

the some focused key XXXX. for the quarter on third advancement we we be RePlas, in continue anticipate to of submission to completing which the pipeline products, occurring of Moving BLA

shift following the to RePlas to we Following approval. need complete submission, our focus that will TACs will

to First, we begin by that the in study the mandated enrollment is FDA. confirmatory need post-approval efficacy

Second, for very this outlook. capacity we enthusiastic commercial its and about and some RePlas building product will be to focused efficacy longer-term on support study scale. We remain initial this

X X, trained our sales Turning the latter expect full XXXX technique, UL the conversion UroLift to UL to of the to X base has XXXX. UroLift U.S. once half the physician we continue a of rollout in X, will lobe in force on the medium which begin from physician we of base with

U.S. our product key affects methodically with we assuming are our reintroduce to the Our thought-leading And longer non-revenue-dependent market be RePlas, line. initial for guidance continues revenue amount change no Like demand. key Teleflex. for focus revenue of to in is a in assumptions an priority this and Percuvance Percuvance the physicians XXXX for XXXX to margin in immaterial to expansion product lastly, term strategic

believe announced be and annual Teleflex further XXXX the with to provided related cost our begin and growth, operations of target. release. all tariffs between and should take facilities tax margin X% This deliver to announced program initiatives, geographies on previously million constant savings our between a new these When and XXXX growth investments X% growth business manufacturing confidence our for track, XXXX the million of our adjusted workforce growth. remain for long-term initiating we expect in reprocessing completed a will was of Vein work to reductions. last and initial are vein in fully certain step involves deliver you non-strategic is program we focus pre-tax at of once In earnings while ability headwind restructuring initiatives in of divestiture top beginning overcoming on our a total, Overall, reprocessing operating our long-term fit and conjunction came higher press long-term strategic us position in and acquisition cost to existing through and our realize sustainable business programs we was significant restructuring Our in business, Teleflex overcoming $XX XXXX. we One context deliver back our XXXX earnings make double-digit we look exchange, vision. and savings some from to while lower savings VSI. to the locations to quarter and our which first revenue of headwinds relocation not today’s achieve foreign in with achieve currency can $XX in previously supporting

to XXXX. $X.XX While in non-strategic, adjusted contributed earnings this business our

first Finally, earnings they On draw this as in in slide, an before our are the believe to the turning left. to you implemented structure, of over quarter to which the is I we see reported would what on we segments call Tom, improvement today’s release our like segment reporting your to have attention XXXX.

is While on and segment other. OEM our Americas, EMEA, reporting structure the right the new Asia,

to reporting product completes CEO. other the segment of on category global global Investors capturing provided investors as our addition prepared with interventional the quarterly and investors this a changes, including and our provides and of posting anesthesia, as into of believe like new which provide we messaging, you our performance supplemental our family with and also thank breakdown with surgical, first is my for family of XXXX, the beginning global website, defined urology In part visibility provide time, other of improvement At and conference urology, with call the we earnings tremendous information vascular year XX-K, concerning revenue, interventional will will family. global section the of Teleflex to structure our quarterly newly will quarter revenues. information these conjunction my during remarks. That access, amount OEM product and greater first I employees the respiratory financial our be product pipeline. of We access, historical this an our filing In would support have segment

for of turn provide XXXX review guidance. will and call the detailed XXXX financials and Tom our I Tom? a full fourth Now year to over our quarter to

Thomas Powell

everyone. Thanks, Liam and good morning

Given company’s I’ll the discussion performance, gross line. revenue the of profit previous at begin the

prior For period reflects from to the XXX versus increased higher Adjusted gross a Interventional quarter, and versus million impact and quarter foreign pricing the to The adjusted Access gross increase margin year approximately efficiencies of in points or XX.X%. basis prior the gross positive UroLift $XXX.X expansion million profit volumes, adjusted sales an related XX%. exchange. was favorable $XXX.X in margin primarily year

to Turning adjusted profit quarter XXXX the approximately versus is net decreased rates operating in quarter, of the decrease the our expense approximately the in from Adjusted rate to floating in an over on prior XXX increase was of this $X.X interest the interest XX%. or of cross-currency swap operating benefit higher quarter reflects $XXX.X the profit, was offset of million of year our $XX.X completed Adjusted million XX.X%, quarter. year basis million was operating for prior impact by debt. quarter transaction, points XXXX which $XX.X million and increase year provided $XXX.X fourth of interest an The the recently prior period. which in an million margin fourth

prior For adjusted versus rate quarter, period. tax our XX.X% year was in the the XX.X%

increased to bottom per line, $X.XX. the share On XX.X% earnings adjusted

favorable operating capital. year the totaled cash to the sheet and higher flow impact attributable from payments operations results increase year. now by X% to over partially and as cash unfavorable working in net offset compared changes to balance in income from approximately XXXX up XXXX a Turning prior million, tax for highlights, $XXX XXXX, flow is full The

outstanding debt unchanged our was that year at the third of quarter. Finally, largely from end

Our Teleflex. year solid operating each basis comments and a on and XXXX. approximately And margin organic leverage for stood points full adjusted credit my XX.X%. Overall, defined by this constant a as level XXX On XX.X%, facility by margin X.Xx. basis, by grew by gross was under at completes X.X% EPS our expanded year currency XXXX grew revenue and increased

guidance. of In Urology, constant revenue and and project X% will X% Interventional with between growth. Now, Interventional to Access currency move to key we growth being contributors Asia I XXXX XXXX,

divestiture caused MANTA. completed including acquisitions, decrease is that of be vein will the recently by Our reprocessing line revenue recent offset the expectation by product the

we X% exchange second quarters. the from During being a greatest expect foreign XXXX, the first headwind and with impact

As a increase result, dollar X% during $X.XXX X% XXXX. we range of to billion equate expect revenue between to between our and $X.XXX billion. as-reported a This and would

Turning XX XX.X%. will basis we a and between that range to margin margin, gross to next anticipate during points increase XX% XXXX, gross of adjusted to XXX

expect We expansion Interventional mix. product other margin to Access be gross and Interventional by driven Urology, favorable

from productivity and benefits Additionally, programs improvement previously manufacturing we announced continued expect footprint programs. restructuring from

anticipated the margin foreign from exchange. offsetting tariffs, are expansion, gross Somewhat incremental and headwinds inflation

EPS adjusted we operations earnings to our year slide $X.XX. standpoint, $X.XX in Moving between $X.XX our XX.X% increase of full XXXX approximately range our year and XXX MANTA, basis bridge core adjusted UroLift operating expansion we From of our with per the operating add an increase to includes me per will adjusted a development to takes adjusted to adjusted This as to or per campaigns share share of margin, points that XXXX range share an That and a market XXXX to full XXXX, XX result pre-commercial XX%. of earnings of U.S. beginning support to EPS outlook from adjusted Japan approximately in margin for serves launch during project U.S. in operating anticipate investments XX%. outlook of XXXX, UroLift and the XXXX direct-to-consumer in proactive this

The of a through and manufacturing to million an range and $XX expect expense to million level growth, In reduction will of We and estimated $XX $X.XX of significant interest our $X.XX to the largely reduction flow cost accelerated XXXX. two will leverage year-over-year planning rate between initiatives. reduction we operating $XX The hikes revenue is to accretion. contribute in expect assumption the generate that result $XX debt assumes million mix favorable million. October reduce earnings XXXX, to cash outstanding. cross-currency The interest swap completed U.S. used XXXX free interest be and of projection during year-over-year further to in also expense

receptive capital optimize markets the should remain structure. will opportunities Lastly, further capital we for look to

headwind that mix is higher of be rate adjusted of Moving will adjusted expected range to will of of $X.XX in rate XX% The in U.S. year-over-year to operating tax increase in income XX.X% taxes, result a we project our in result plan. XXXX, earnings adjusted to XXXX during and share tax taxable $X.XX. a the approximately a per

benefit is we assumption from level in our a at is normalized XXXX the that level atypically windfall Additionally, stock-based the compensation versus XXXX. high realized

for million reprocessing will a to year expected tariffs of be headwind to approximately remove estimate are full base. approximately of the EPS be of divestiture average XX.X is vein approximately share. finally, to XXXX, dilutive $X.XX exchange $X.XX. a the headwind And $X.XX which of weighted adjusted increased expected $X.XX increase our by that approximately business Foreign while shares is per will We

despite rate represents a or expected XX.X% headwinds, that of growth growth. for robust $XX.XX and remains XXXX revenue growth per versus our between double of our XXXX outlook earnings XX.X% and share of at to as-reported adjusted $XX.XX number So

our outset each at it to year been between has practice highlight considerations While the expectations. provide financial not to regarding it’s guidance, our quarterly some quarterly our specific variability of practice

total days in and as to in second XXXX. XXXX As fourth the for quarter. less quarter one one same day the has of the of number There’s number day days, shipping the more

currency Liam now from prepared call concludes adjusted that greatest remarks. earnings And to For like the year realize the approximately to our of the be reflect the return full estimates first that share. impact XX.X% of quarter during realize to would adverse I as-reported per These my will our back we expectation XX.X% expect expect full further first revenue. We closing of quarter. for approximately year to foreign the XXXX, commentary.

Liam Kelly

excited Teleflex. are for closing, what for we In XXXX Tom. you, holds Thank

X%. long accelerate our between organic growth despite as-reported certain constant and We as-reported forecasted growth to X% the the double decision revenue and And as and term, tariff well of revenue X% that expect year growth. tax the another X% revenue we currency investments and earnings growth to rate between exchange, strong of over revenue support as adjusted of sustained is headwinds growth foreign expect of

over XXXX the between XX% of prepared previously and our adjusted timeframe, revenue XXXX gross of constant remarks. growth track. to of and adjusted X% margin average projections That Looking financial provided much organic and between of on my X%, XX% XX% operating and between currency margin XX% remain very concludes

Now turn the like call back for Q&A. operator to I would some the to

Operator

Instructions] Thank first Morgan comes Lewis you. question Our David [Operator from with Stanley.

open. line Your is

David Lewis

NeoTract. Good start with morning. then guidance and to a on maybe Liam, wanted follow-up I

sort realistic, gets X% about the yes, this follow-up. So Vidacare I think the X% X%, for question end to consider guess have and or want given of I impact end your for commentary the XXXX I the expectations RePlas, what constant currency that what guidance we X% morning? of ask of VSI the And commentary to if am I about range sort X% range of around your limited to low thinking to is and you you NeoTract, Percuvance, that of is the a and MANTA, quick I low

Liam Kelly

Yes.

in are way. can that Teleflex our our XXXX. a it we much and obviously, a made in David, we Bowl year the bit we are if with the put had Patriots. So very that first We And half in little I stronger Super like second half happy than progress

growth XXXX. will to of growth Those point the Access our few as see single-digit lot high estimate that. Interventional the I drivers to kind we single momentum X% a acceleration. main XX%, will in the mid- have accelerate delivering drivers we upper X.X% that revenue XXXX. will into that in we add get APAC XXXX, ‘XX three And to to will in And are that to currency So NeoTract the of of X% that growth. we constant approximately organic a will deliver get digits, just in

continued Vidacare. that growth in as well expect as also We we

We our and to to also surgical America. grow, in expect to continue Latin rebound continue obviously PICCs and OEM a business in our

So, feel to we bridging feel pretty also X% confident range to X.X% that of with the from David. in X%, X% comfortable and end, very lower we our the

David Lewis

Okay.

well of Tom gross can follow-up Liam contribution as margins give what assumptions you sort can push products, that where And then sense NeoTract, range. RePlas, I the wonder of for back about Percuvance, say, of I Just as to a much. the will made incremental X you if think MANTA, XXXX, it just to to prior last your upper queue. then growth NeoTract that end in I my Thanks to outlook emerging of so Neo us sit jump there will XX% competition? reflect and were ask

Liam Kelly

Okay.

of care very or everyday. the much had for that product the a we the treatment the it the UroLift pick track standard it’s that the continues the our will to competition easy clinical David for and Rezum the believe that product, of evidence makes very making We evidence a obviously, making the BPH. and many of support clinical of UroLift for So choice to down competitive urologists the world main is UroLift across are businesses, Rezum product the our we product. I say that continued

for product. continue UroLift in all sales example, behind We resources the organization, sales an to additional the spoke about sales we invest we’re the $XX investing investment, behind just in actually excluding about, other that so aspects million

Our in for at was heads. original to sales XX our model heads original plan sales be about at this point

BPH, good tide behind and that’s the when we about lot confident invest world. has that the minimally the aware as a aware. to boats, competitive my we minimal all And there is, there over see we rising even actually are or all as zero in we prepared talking sexual remain lifts have that more the a treatment why as there invasive being as heavily out men of And continue tide become heard sexual remarks, potential company is XXX crossing mark thing rising urologists dysfunction you a We’re also in another it, dysfunction. not that boat lifts

and surface penetration margin talking to product. urologists therefore, educating that educating David the the So UroLift men only do end by in the being having company up ultimately cover still we question and with asked? scratch another will you want of urologists, by educated that Tom,

Thomas Powell

certainly. Yes,

as David, we’ve the So, ULX. even ability seen volumes gross we’ve we with margin expand grow the also NeoTract, to go before seen

So, say, year, mid-XX% in I in the gross we finished would XXXX, margins. the

expect upper For a tick we, upper further the you up the XXs. if little of mid kind bit to towards range will, the of XXXX mid,

Operator

Thank you.

Leerink. comes Newitter SVB question next with Our from Rich

Your line open. is

Rich Newitter

questions. Hi thanks the for taking

saw off a organic, your start of with because of to to last but base is the ex tracking appreciate I Is lot wanted that you growth we Just where just growth X% business it outlook? contemplate to I still right kind fluctuations think drivers guidance, underlying X% business NeoTract the to think, important of X%, are VSI as a the the that growth that’s X% most as business, now X% and year.

Liam Kelly

thanks, Rich. Yes,

business even now as to we X% look will from excellent The VSI it, expect it, difficult a X.X% It look as be more out move unit becomes to year. it out as mean, a So, moving more VSI way into had X% gets we at point earlier, growth there to the break as And we’re expect we globally we will high embedded Teleflex that all And it’s that would at at organic Latin NeoTract and the year growth. are for as look product America I and XXXX. but Teleflex. Interventional breaking obviously to growth. we Access and spoken an we within that I of improvements we the OEM, PICCs, the to and be Surgical, is upper And to also to about, unit as the key will single-digit expect which for digit single would I said we other from. in drivers other such growth that we’ve mid- to expect our be APAC, see already, said that regions Vidacare, in business some XXXX. we

just double feel happier our be our med getting of giving step a in pretty X% think in revenue all, XX% that as comfortable an I as-reported a tech So, in growth in EPS or unique growth. take And organic think on which that a as X% is range, at company, a mind. currency to lower we asset EPS, constant we’re to couldn’t we revenue all on back, even we you X%, growth, very if

Rich Newitter

enough. tracing you been kind and tell from distributor even maybe of the Liam, lesson percentage directionally has the if to the fair been still of distributors. about exposed of your created then, for the lumpiness? that some I that factors kind in current lumpiness Okay, year past, period? year relevant it’s in patterns had the two, to the from what what a current quarter tracing data business erratic to is limit us last potentially your what future talked indicator of then, And one, And you’ve the can this ordering that Thanks. guess,

Liam Kelly

Yes.

in So, is Owens of past, Cardinals, business American to the of our the exposed, distributors, starting & much about the half business went Medlines, with Rich, how those Minors, our North the the distributors.

go about channel, go don’t normally and forward, X/X should become that VSI now through through organic distributors. Moving those that and our of business NeoTract

our very XXXX. Regarding consistent tracings tracings QX saw of that with the and we the in QX improved tracings, were

for strong demand to XXXX. to continue for confident feel good see we customer products, which also X% us our X% our end makes very So, about

Rich Newitter

thank you. Okay,

Operator

Thank you.

Keusch with comes question James. Larry from next Raymond Our

Your line open. is

Larry Keusch

Tom just Good you, sheet billion morning as M&A. question, Certainly, to want of math, which around your strength X.Xx on gives levered. Liam, the I at indicated, $X our start bigger-picture one is everyone. firepower for least of balance with

the a just activity I also thought most take sort more on so thinking a little So, opened on temperature do you’re wanted is, how some focus to potentially again, to M&A. I your been de-leveraging tuck-in bit size? the larger deal, about, and you’ve to and a I about question talking like door always but recently, M&A was think, of able potential

Liam Kelly

Yes.

you’re So, absolutely correct, Larry.

down X to the We’re end below of the at year.

we we can it. do look the improve a like. M&A, find we The an have do Larry, continue way that normally, if Assuming we leverage XXXX. environment The to at follow-up scaled what’s is the next during it, our Larry, is capacity XXXX, I transaction of in don’t question to will the

held So, well companies that. credit full get had M&A at for Francisco. recently that at We We was with rich the But med moment. over only a the we tech environment is we realize, that XX big team good met the in pretty conference San do a Larry, at transactions.

a ‘XX, MANTA, we’re answer and So, capacity assets yes, question any transactions. M&A continue to smaller world actually scaled it in we to do in do at basis. scaled still other go-direct if the we we capacity going find Larry, active But look be having transaction directly, capital nearly continue does million but to Even not can didn’t do in to work we the very tuck-in ongoing a to mean an of transaction, your $XXX the have and on put we XXXX, in but transaction XXXX. between to we

Larry Keusch

any like, may just we XQ, of for to thoughts Okay, Tom there? so then think early had thoughts through a under quick comp with And the provide flu it timing the XQ, as, any It us looks two relative looks of submission in trying of around that now the of issues have XQ, terms secondly, ones, the the sort impression RePlas end to bit. you about the was again, like I can notes, least, like then more XQ, been that? and associated think it’s BLA my just maybe at perfect. And slipped

Liam Kelly

and to given the believe begin and that didn’t The also little due fee. largely we went shutdown correct, get a as in that shutdown lot QX. Tom, on of new have engagement the are originally Teleflex did that’s ironically, it But the And shutdown driven paid will government and didn’t on and communication a fact the was that an reason as the And longer we for correct fact now yes, fast-track So, question the down, primary would simply the agency for with up other the more Larry. we’re that is delay, the are you were happen we question? the remarks, RePlas we I over-and-back delay. able what part we’d the and the the this process the anticipated already our bit that the longer in expect a shutdown. process, delays went you that In to the submission we impact than Initially, and be less QX the with Larry. would FDA the with required that’s the agency said for

Thomas Powell

flu, So, on you’re the asking versus about the comparability the year year of is question? that this last

Larry Keusch

Correct.

Thomas Powell

off moved should of fairly now at stay, Yes, full year flu but we to swing or bit season start slower a we end and a flu comparison. has year-over-year XXXX, on got the season into I comparable it last the little see

Larry Keusch

Okay terrific. Thank you.

Operator

Thank you.

comes Our Matthew from KeyBanc. Mishan next question with

is open. line Your

Matthew Mishan

Tom, Does Hi Liam go headwinds or good on tariffs morning that X? incremental had it and questions. mentioned thank you tariffs. What that assuming? for XX% the Hi, March you is taking assume from

Liam Kelly

So, Tom, mind? you if don’t

Thomas Powell

assume actually we tariffs, increase, this in those in do increased through is XXXX and that So, yes, XXXX. a tariffs continuation and fact, of

So we the about to of we sat level impact XXXX. greater had updated the essentially, and at for reassessed tariffs as we previously down spoken expectation a year-end,

Matthew Mishan

over elevated? about it you And how long investment the the areas, spending in growth be do expect of how we to it XXXX? And that you’re think should phasing doing

Liam Kelly

Yes.

the we’re investments of actually some moving So, forward.

approval It’s for doing Japanese a moving anticipated got our forward investments we’re to Shonin quite We good NeoTract. much the than So, some that anticipated, LRP actually within earlier so market. the frankly. have, problem investment had in we we

XXXX. of have very that successful investment been very, campaigns other is The the direct-to-consumer really NeoTract behind on in the area

are begin to will top XXXX we want remain the the because QX and investment, So, line cadence accelerator continue they from of they an year. growth. throughout in The for those

Matthew Mishan

Thank you.

Operator

you. Thank

Our from UBS. next Taylor question comes Matt with

is open. line Your

Matt Taylor

for good taking thanks Hi question. morning the

about MANTA, So, things. I wanted ask two to

a Can that I separate the you or leverage for First, the teams given actually to in And in infrastructure have in some team guess uptake going of commercial so uptake do need approval, already that you’re actually surprised revenue any And projecting place? the the Europe? long that why XXXX. you was is? had why early cardio to little with material to a just this you I some build, not talk about build see you’ve

Liam Kelly

Yes, thanks, Matt.

prepared of approval remarks, mentioned, the commence in my all, first panel say review not we’ll QX. in limited to required. in to we’re receive now I PMA I And as pleased want So, market very XXXX. the was release A

account our taking approach for we rolling business launch. incredibly we’re reasonably our and force. will a the utilize our we the need be where what out successful out unit sales clinical UroLift heads, in in it both And will with then hunter/farmer has additional a a now business we our begin which We and of this continue clinical utilization to sold think force the cautious us I sales support experienced roll Interventional and the to will but sales recruit the convert product. to are through to model Urology some unit, Interventional been Vascular business is to unit function

stage, the of bit QX. it’s goal the at see We QX will the in U.S. and the we better in marketplace. Matt, but being conservative, the of were just begin in this be until revenue, in SAFE little product of that’s MANTA and think maybe going the conservative And aggressive a study, we’re our traction part we a expectations off our XX the that for to to than be sites clinical IDE

for over in these an XXXX $XX,XXX as anything and from cost and data seconds success with to hemostasis are the X X study, to a to who hemostasis And from result. to continues hospitals, is the the reduction continue rate according this likely complications. but in minutes. the time to reduced very vascular XX is twice a We And about major JMAT have product, be compelling average, die. a in as on additional MANTA XX And significant median clinical a to of excited require patients to XX% days hospital product XX% a

clinical So, compelling. is data the

very lot in to very about baked We’re the revenue enthusiastic not that have enthusiastic. of a that we product. our don’t take we’re Don’t comments think

be think time. long this could acquisitions in in nicer one proven be tuck-in a time to I our of

Matt Taylor

on Thank then what UroLift, What hoping you. just might time. on able making I follow-up I to as by mean And be from the one of therapy. today it think And think a you was care standard you care? expound exactly mean get to where that you over do that? meaning by most what do you are people of first-line standard do to you of to need

already PMA. follow-up robust really a You’ve had with X-year

opportunity expand point? need how And when you you time? do more that get it need So, you to evidence? more Do the will

Liam Kelly

I so where Yes, improvement we get to need make are it think a today. of care, we an on that to standard

take look let’s urologist. your step So, standard back at and a

Your every patients standard urologist will month. are trained month. we’ve every of urologists see On the XX X unique those BPH treating average, patients

in the I growth very a long this the at and penetration we’re way is for early think headway time. still in moment

And of making So have over the a portion, getting care. see significant we of of we more care. penetration BPH that the larger headroom patients. XX call getting significant and of time, more portion would us once way it the those a further then become we a be would become we ones We’ve to will deeper so standard the when those once becoming standard just treat we the it will early And care. therapy and along of urologists the of get urologists front-line XX,XXX Again, we’re only within Matt, of standard see on for X,XXX let’s the the United just urologists trained And penetration. over a it also so XX patients, patients, of it, are have, growth. over XX% which States, trained, future X,XXX that we see

Matt Taylor

lot. a Thanks Great.

Liam Kelly

Matt. Sure. Thanks

Operator

Thank you.

Blair. William with Weinstein Brian from comes question next Our

Your is line open.

Brian Weinstein

guys. question. Thanks the Hi taking for

in spending just you’re similar can we’re again to leverage question I a to from times, about of impact to plan, the you additional seeing I that that the asked mean, the you this no and you but just all quantify different gross can margin from margin bunch was no long-range forward QX. that operating thought but there’s here, pulling I bit recognize a more back this little earlier, said know bit be was Going little specific a

in might ex margin leverage So, what’s these I want been understand to investments, gross XXXX. of some of just of kind operating have to kind from the

Liam Kelly

then the with the start and investments I’ll let leverage. I’ll in So, Tom with chime

invest that continue to to investments there’s get to had or investments drop-through order not we’re free, for about and we I’ve all and the in of we’re clinical top in Brian. that, said, ain’t spoke of question growth if so question top to always behind let on sales growth contemplated big buckets is additional $XX and So, we UroLift heads putting of the just $XX X the areas a papers UroLift so line in there we’ve in million we making originally MANTA, leverage about, in in that all addition in the continue those just to there. addition invest so I’ll as and in product. forth investment in that there. On got answer drive Tom that wasn’t million

Thomas Powell

Sure, sure.

operating investment for U.S. of Liam margin for expected our relates market largely just basis investments know, points. the development The that UroLift as being million expand is you the as So, outlined XXX currently to $XX to by MANTA. in as to the XX Japan well

to margin from NeoTract. XXX to that points made XXX to to the were XXX increase sales that and Liam operating XX back that the relative to just force basis in for the points factor basis in you point go that doesn’t out, If would

So, it expansion. would margin nice a show

continue investments drive of I think obviously expansion. to and as and pulling forward. as And the to those grow, we’ll Liam investment are that offset margin begin some businesses revenue we mentioned,

Brian Weinstein

improve start And the follow-up, call? rates much Anesthesia, just about Thanks. a a Perfect. to talk be to obviously but do been corporate to businesses average, those businesses haven’t particular. have on of you then as covered couple they bit that you growth a Surgical, little weaker as in in continue opportunities than potentially Can

Liam Kelly

was Absolutely, we start anticipated. negative had I by negative, actually, than Brian. less it originally Surgical, in though saying even QX it was And will that

and be earnings to we as year X.X% there I of go grew of with versus more first to If profound Surgical the actually in expected could answer in mentioned you longer the was QX. have will that business the second XXXX, the the no made regarding the and Vascular within And Surgical QX in those year. combined business think decision headwind this X.X% That X grow the we businesses, to But half that we the into exit. I half question Interventional we of improvements one your recall on OEM that call, QX Urology. of

that in grew and in I business Anesthesia shown has by this over Anesthesia our think improvement quarter an Our XXXX business gone X.X% just XXXX.

to grew unit the a on recognized. we So, business where on which we continue revenue improvement as is to the shows XXXX actually right RePlas it for X.X%, into go don’t in forget, it’s basis, that full year And be basis, continue about in. will XXXX space and believe a and Anesthesia business that be by that, is year-over-year business a we

the that a well, future. would So, for driver growth within be

We in laryngoscope in growth continue business blades. to our see that

portfolio to continue others. mask work with We our laryngeal and

on I at that growth annual about think for is business, Brian. X.X% So, an right basis

Brian Weinstein

thank Okay you.

Operator

you. Thank

Anthony Our Jefferies. Petrone question comes next with from

is line Your open.

Anthony Petrone

on one Thanks. couple Good morning. have a on restructuring. and I then UroLift

at for out thoughts Japan make in when Just some like and Liam, around sense relation then will X sort Japan $XXX I drivers in can these of opportunity, that you to you maybe targeting many on a how that, urologists a settled million would you’re of is just XXXX, look Thanks. give UroLift, it Tom? follow-up on market then the of have UroLift there? sort and X seems pricing and that And a the Maybe how follow-up achievable. UroLift in milestone be more

Liam Kelly

Okay.

key we the opinion the get leaders, we will we’re be the what that leaders Initially, to in to So, is opinion we reimbursement. that investment total putting estimate some the in billion. of $X probably is that Japanese target market order targeting will require podium-speaking

to write then that priority to approval product and as they a for cases urologists a product will begin this we that the So, identifying it to them. can have use as product the so now the take we in selected get can authorities priority

the There would States the in be pricing, by are determined Regarding the urologists urologists United trained pricing United the within States. the approximately X,XXX reimbursement.

urologists will we we within get marketplace. that start Japan, the So, data as the penetrating within

the will I by that be reimbursement. said, determined the pricing, I think as

doing we which We work There we’re in within that will months to ensure time the Shonin. in Anthony, have. is. significant an quite important in United that reimbursement between this authorities would expect be the U.S. get but that the think get the We determined, to after now XX that technology we realize Japan States, Japanese reimbursement what society, is connection the be society the reimbursement. XX urology to what to is should the the that urology similar get The and a

Anthony Petrone

follow-up Helpful. that like seems to some And in milestone thoughts certainly UroLift a then the this maybe probable relation there, just in just probable more Japan million target, a and it more there? XXXX, makes $XXX X

Liam Kelly

and say, expect many of would a Japan has my generated I thinking. be we Anthony, So, full before of always the in thought very I payout latter target. even that The milestone. begin in that times this, will that changed said Nothing I was XXXX a probable that We and in half there. revenues will it anticipate

are and ahead that obviously, original so correct, should you that And of be milestone. will call-out, that help our

Anthony Petrone

Thanks. existing wrap related not with and recap on annualized up, and of and And to you you expect when programs cost then completed for do you of that sort Tom, to restructuring the programs, of seems to the new where be to the all announced Thanks the just just happen? total one of to be but again. release new are savings do all maybe when once expect today these this sort

Thomas Powell

course. $XX and program Sure. to outstanding, once But any million of recently terms XXXX. in would realized, implemented. fully ran in Well, or more to start program that from of savings have that and remaining of those the total $XXX are operational say $XX two $XXX morning off announced million programs realize and ranging that are morning their expect XXXX that that’s this is that some of launched to savings frankly we we until The kicked have to be savings still that million I outstanding initiated and the a range million. this that really of won’t we currently

Liam Kelly

answer I question are X,XXX apologize, in And There didn’t Anthony, Japan. approximately urologists your directly. I

Anthony Petrone

Thank you. Thanks again.

Operator

you. Thank

Our Isaac Goldman next from question with Sachs. Ro comes

Your line is open.

Isaac Ro

you. guys Hi thank good morning

question UroLift. Another on

timing you that of going reasonable in of thing, X for could ramp you out? sense the have talk line think think training hurdles seems about of UroLift quickly year contribution I’m like force on sight you a around of could sales your us whether would maybe key a little given said sales there’s how Can you of a that just from swing to pace that’s and your this if key give revenue and the bit the there? that it is comments factor, reps the kind expect curious on, good about that to but you a straightforward comment, to curious, be the force. I as play pretty range Specifically, that

Liam Kelly

So, the pricing roll the out X, we because There same that of as pickup to it won’t UroLift latter is in the expect UroLift XXXX. be revenue X. from half for X a UroLift the

So, we to roll a but begin a it anticipate get don’t we have to as wouldn’t pickup margin out. we big

the here So, year. will in this gross XXXX, move is we the we out from UroLift margin half begin X and to real XXs in of as play to mid-XXs roll the the the latter high

we answer training, allow of more to new UroLift indication which the the the we was got to in urologists X on one on rollout a train training the median Just reasons XXXX. the your lobe, was salespeople was that the question our to snowballed

to from having the the X. median on and time, want and take by force the at the UL X them lobe away didn’t do training out we growth one engine So, distract our rolling sales things

lobe UL the our free roll half it hope on resources of that makes the median training halfway with X, to that the the by should latter the as out of in we most ‘XX. clear. said, would XXXX I up have I urologists Now through completed and

Isaac Ro

company performance just Thanks. extent bit here. the cash restructuring a more those to if you question could rate? be on that the some the that makes quantify and helpful for a have which could of follow-up if to longer-term a to Yes, here maybe the sense. taking play maybe And might wondering benefit out. the of then you. maybe program, It’d you’re tax Thank steps little I’m

Thomas Powell

obviously earnings is for into accretion continue So, well. to and focus play real as drive us the that’ll flow to cash

million program it’s top deliver outstanding. that already of the With on were that to expecting initiated, the programs $XX to $XX of recent million we’ve savings

tax as driving So, terms would play will, if our to this you it a of of we way cash kind in not flow. see cash savings. It’s flow solidify, is of free a much as

Isaac Ro

you Thank it. guys. Got

Operator

you. Thank

from Our Securities. next comes Dave JMP question with Turkaly

open. is line Your

Dave Turkaly

want Thanks. that make to sure heard I just I restructuring, part, last the right.

one, of in to thoughts million, could need just gross getting to million on already case, that announced that. you programs, guess, that’s that if any want to north $XX $XX from the So, you’ve with savings confirm long-term coming I million have identified million or already that new sort million your talked yourself ones. And would then that. about the margin prior you’ve plan. just, $XX It pretax in But program $XX this would of your $XX wouldn’t you I other put range technically seem

Thomas Powell

Well, making I a is think the point you’re one. valid

to sight million. We $XX million good have of target line to our $XX gross margin of

includes to and of impact of this that the close for the year guiding We’re pretty that tariffs. within range

and place yes, place that can we line to the in perhaps sight that another to tariffs get clear target. benefit. activities those have with future But in currently gross that is of aren’t margin hope the in Our do provide very

Liam Kelly

that I’ll programs Not out, true. completed XXXX. just all the is point will Dave, restructuring that, be by

Thomas Powell

That’s a fair point.

Dave Turkaly

Got bucket the in or And those. it. that that still comment just more there then of to imagine several facilities? footprint? I exact to many consolidate years, have manufacturing footprint any manufacturing may I over category. the guess, on as And opportunities along realignment, have opportunities announce we that are you seen not

Liam Kelly

our that time as restructuring is ongoing we not our in we all of opportunities. but only of is Liam in the look do part continue manufacturing business business at more our across, And it’s about look is scaled So, here, acquisition, identify to interesting and for a every right manufacturing, thing the David, process. alignment potential areas always to there

and saw to little opportunities like We that VSI do dealer like well the acquisition it’s it identifies in a down XXXX. we direct. are road with our So we than to dealer and bit other think we in direct

and on a at basis. So, fairly something process it’s we it’s an regular look ongoing

Dave Turkaly

Thanks.

Operator

you. Thank

Barclays. Our with Stewart from comes next Kristen question

Your open. line is

Kristen Stewart

like this Hey, sales as I letting which the little NeoTract to basically the looks good question. quarter legacy doing products at for the X in If it look combined business morning that those was everybody. contributed math? doing which this right, take Am would math strong, as the a two a I quite percentage Thanks the from from over well line, points top about thinking me the incremental am really guess imply I correctly if incremental I flat? VSI quarter, were sales

Liam Kelly

quarter, the So X.X%. our currency growth within growth constant our was

bridged basis we with improvement X.X% to X.X% through into in growth UroLift run-rate will M&A. the we When was and points, think. X%, would bridged, and QX would X.X% Our add – our add [indiscernible] be XX the we I it said

And go you If modestly at core point to VSI becomes what trying basis happened, the when improvement. improvement and better, where the points actually did XX difficult and to that the just it it. more was Kristen, gets from the we UroLift basis than of but exact business core through more points look XX better actually, better did

core or few is So we’re moving our to don’t continue think pieces. non-core, to want I people to because going a business there talk about in that

that with had an overall the XXXX XXXX. our that had our strong to the in And in and we we’re year X% within half quarter. But was expectations up line our to core business, that much think of also in business impact. have second You a X% a great line in our exited I do to really very we with fact spot

Kristen Stewart

Should or new that just the for of distributor pricing less believe ended components more year distributor dynamics of next on then up to effect from still of come points we guys more thinking the relying you have basis benefit kind price. think maybe favorable that about I conversion? will And growth the you products? Do go about of XX with Okay. the growth includes I year, still conversion. of think this

Liam Kelly

talk to ahead, I mean Go Sorry. Kristen. didn’t sorry.

go So direct. pricing I the correct, guess, basically of came all you that from of our are almost – most

and or So go don’t go same core you and pricing the anticipate any could XXXX we our in was neutral in XXXX, seeing haven’t significant neutral we direct in been expect XXXX. very pricing or overall pricing in direct

Kristen Stewart

very you much. Thank

Liam Kelly

half was we I core year. in business answer question the on business, reinforce Yes, just the point went second ‘XX improvement the my the through to approximately as the expect would in to business on core your core of X.X% the

Kristen Stewart

I Okay. that offline. will take

Operator

Thank you.

Our comes Needham. next Matson Mike with from question

line Your open. is

Mike Matson

me in. there to just guess it of for UroLift same treating types can etcetera? Thanks. there in talk laser to there U.S., products I are the to back go other BPH, thanks for the words, Hi, market squeezing in you wanted similar and just Japan, is about

Liam Kelly

the world and it’s very, largest outside the Yes, they very market device Mike, second medical the are in developed. U.S.

have They would more States actually they would the technologies and therapies. United within do all that do the So use have surgeries than the we similar we in traditionally United States. They the Western anomaly think other a the area highlighted is within Japanese it probably culture. which whole more than the dysfunction in would culture, I sexual us, is help that will of be

something and they be life the So the Western in our stay that that, active because later in partners will much promoting world. be think do traditionally than urologists Japan urology sexually that we in I will with men can

Mike Matson

the Thanks. to this that you be is that this sales? mentioned where to of bunch with of to do RePlas efficacy can order is that you you or a really things it particularly And full expecting quarter, trial implied a in in there pushed it are is and once be year. Okay, come of post-approval like of – then selling gradual a from and launch, kind revenue in this get a you a kind to going no before more being just And just the lumpy you the really military ramp off not going have then they thanks. start a any kind fairly other to because by meaningful

Liam Kelly

prohibit not expectation we you The we correct study mandated a just will us in have selling are post-launch in don’t post-market The we still for be XXXX. from or products. study will phase. that do RePlas that the Mike, FDA launch Yes, revenue

expect blanket the and we not in lumpiness Regarding one your it, and come order. the of the to do question military place military on

offerings some will in We the in need there year. [indiscernible] either be back technology. this and of to the gradual Special of product relevance incredible field environment, of a because ordering to an you and is that within plasma adoption has them type Forces require where not last the soldiers are this believe would expect that follow begin in We the current applicable always this plasma activity they

a it would somewhat I then we expression, once pickup see the can lumpy, fill to they be So it’s there because modest and will beginning Then ramp. bags. kit established, believe would your out

of timing filling Air that they’re try the Force, manage time. one kickbacks Marines the we the the out so for and Navy, the to not will Now all the the in military

that smooth should it So help out.

area our have we we that EZ-IO amount So have of through good and business. that the a Vidacare into reasonable of point military goes a business currently call

Mike Matson

Thank Okay, great. you.

Operator

Thank you. is next Keusch Instructions] with question Our a James. follow-up Raymond [Operator from Larry

is line open. Your

Larry Keusch

thanks. Okay,

Just two quick guys. ones

the in fourth quarter. APAC in was X.X% Just third so X.X% constant on quarter, the growth region, currency the

direct We go have there obviously now anniversaried in China. the over

of So about But way just will think the about what’s prior can right go? the influence to where guys the I other are at get that that as wanted growth what’s some that? and out I about free think sort just And was right we if to to I looking see launch, thinking just in point remember generation wanted you flow LRP free UroLift on that for some to question of XXXX? are the then sense how recognize and quick billion APAC that course to and way the cash over think of the $X.X cash correctly, come you flow, of Tom, the

Liam Kelly

will first. I Larry, APAC Okay, take

grew mid in from are upper APAC, is in a right, on X.X%. year in that to longer APAC So ‘XX It grow grew four, you expect actually single-digits. basis and the What quarter in X.X% XXXX. it I horizon the will by

year. up quarter, have have XX.X%, It We through as but gone it grew prior the was comparator. tough the QX. almost think continue I China to the in by in against momentum really was XX% we fourth X.X% a

we momentum UroLift the the continue then register anniversaried in other China. go-direct that, and in to build But with will along have we geographies. We

we the Shonin are register three identified have the received that we that’s and above Japan. for UroLift geographies product working We beyond to APAC that within and

accelerator also an out as We believe Asia-Pac different are initiatives and well. in geographies around rolling clinical be that we education some within will

old Urology. Asia-Pac Access philosophy, the of China all I free cash areas growth Interventional feel, key Those it drivers term we of – to And with are back Then with not our our equal. Japan three growth gross is all Teleflex our one So our objectives. mean, Interventional – again, flow? margin goes accretive longer and to is

Thomas Powell

Sure.

the on impacts we to over that that had discussion the track So we initial had as would is in if you we of to cash point, standpoint. One reduction the say just the out performance are kind of and flow cash flow then. free since NeoTract yes, up flow, an contingent two are as from timeframe I on more acquisitions your impact accounting estimates pay consideration billion XXXX that towards operating outperforming prior will cash to in extent have free approximately a the Larry, from XXXX such cash the we flow is come so from free on operations. and non-operating will still $X.X there guided that the

guidance, target. yes, cash that term. contingent that all for contemplated that But was longer a the in $X.X but meaningful were the you to isn’t that Additionally, are not flow program restructuring from we that consideration payments, still if free adjust just announced track on we billion for

Larry Keusch

Okay, terrific. Thank you.

Thomas Powell

Yes.

Operator

you. Thank

Our next follow-up with from Barclays. a is question Kristen Stewart

is line Your open.

Kristen Stewart

for thanks follow-up. taking the Hey,

long how the little small reiterate Just as that you that realizing was just how that restructuring plays XXXX, assume well, about am said I guys would maybe I the then in making out programs – in in and they pacings wondering I today, getting kind confidence also higher start anticipating that the business? which tax announced year plan. well term the that’s rate, just the there? of range operating came of you are longer end performance the this lower savings some you heard think pretty investments bit And a end the guys real tax the you to I your of margin I given quickly, which that if still into where you are or below guidance the feel do just the

Thomas Powell

Sure.

more tax move rate recent we think just the due of subsequent we the to average. rate, tax and that And expecting U.S. in as the still Cuts about will than continue I income be rate, is So Jobs our That’s to largely upwards are in the a reduced to more where tax and that expectation mix we the Act, shift think years. in higher although still Tax generated are in

the Now that solutions the in drivers predominantly of is businesses in growth U.S. above products that is as UroLift such and increase income catheter as as growing the the well are U.S. margins the average have

we rate has more our of So and the a a initial little than that to of of interpretation our we say so I and Act will seeing the act Jobs do favorability that. little tax still from the move expect assessment as up favorable Cuts bit Tax been time bit progresses. are

them in still refine term so just is I assume area first the line well the projection. the would say would moving the tax right And focus with wash term, the now fairly maybe the... two then out over I rate So help longer longer of

Liam Kelly

Kristen. the in this The impact XXXX has – I XXXX, a program, inputs so are the think restructuring modest program restructuring

that So see that’s this restructuring going the it’s beyond where be to of benefit new to – going program. will we

Kristen Stewart

Okay.

in it’s of operating just end more higher confidence upside So the greater margin given any be like or the going it’s there significant modest? not level should that to be of LRP

Liam Kelly

I upside this is the from program. on coming going the improvement so latest mix in think LRP said, from as come restructuring than more to Tom

very if significant about very LRP gross bullish I of RePlas for very upside bullish in they UroLift, about think like deliver very and about be And continue operating and on will things bullish those, the margin. better, VSI, and about Asia to perform very MANTA, a that potential we Vidacare. mix be bullish bullish about all Pacific could our

Thomas Powell

$XXX Yes. program the of those $XXX announced kind clarify to that million of about had And the I is in think the to the just inclusive today. that cadence total of to of program just just million and savings mentioned savings,

million $XX of outstanding. still is that half to And timeframe So $XX million about we through of $XX that to million. the to million $XX about expect realize XXXX, savings,

beyond as So can benefit some LRP see, timeframe. creating the to are extend we you

Kristen Stewart

much guys. Okay, perfect. Thanks very

Thomas Powell

you. Thank

Operator

no Thank the further turn closing you. for call showing to I’d this at to Elguicze Jake over back am like time. questions I remarks.

Jake Elguicze

earnings call conference you Teleflex us for thank and quarter This concludes operator the fourth joining XXXX Thanks, Incorporated everyone on today. the call.

Operator

Ladies a this today’s wonderful gentlemen, your for day. concludes conference. Thanks and participation. Have

Teleflex (TFX) 22 Feb 192018 Q4 Earnings call transcript