TFX - Earnings call transcript Q1 2019

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Operator

Good day, ladies and gentlemen, and welcome to the Teleflex Incorporated First Quarter 2019 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference, Mr. Jake Elguicze, Treasurer and Vice President of Investor Relations. Sir, you may begin.

Jake Elguicze

morning, good and you, everyone. Thank the And Earnings First XXXX Incorporated Call. welcome to Conference Quarter Teleflex The slides release our press and website available call at on are www.teleflex.com. who accompany this

prepared our available by are (XXX) this be call XXX-XXXX, As calls, for dialing a on passcode a be and President Chief available and XXXXXXX. XXX-XXXX, provide reminder, Participating Kelly, and Vice on Financial Officer; will open and we'll replay website the remarks, Executive Executive to international will and President Tom (XXX) or and call Officer. up Liam Liam Powell, Thomas Chief Q&A. today's will then call

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

Liam Kelly

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

for XXXX outstanding Teleflex. the of to an year quarter first was The start

This quarter above a reported growth. as one constant our on initial First currency quarter grew X.X% for basis and revenues X.X% revenue expectation on was basis. an

pleased perspective. was with broad-based We geographic from both quarter during a are product and growth one, the particularly how

currency the line growth Interventional Geographically, growth Our and growth in particularly within performance we achieved strong our Urology, and type constant deliver. XX.X% growth growth Access an by OEM. was in X.X%, We and Interventional Asia growth believe top of where led XX.X% strong the diverse, Americas, XX.X% in that can of respectively. revenue is performance example revenue QX accelerated XX% was excellent Teleflex

Turning XX.X% operating earnings of of metrics. X.X% an quarter adjusted key increase adjusted per XX.X%, of $X.XX, margin other to over gross We the adjusted and which of share margins XXXX. some represents reported of first

reaffirming and and SEC growth, currency are reportable in in Our achieve commitments per at margin to better disclosed adjusted than initial our our revenues give expectations, growth adjusted our employees. begin our guidance earnings QX and let's look results XXXX reviewing from our annual and quarter XX,XXX adjusted we slightly in deliver a to in customers our as now reported revenue summary, confidence and one segment, In revenue earnings filings. despite as detail, provided increases will This by constant I greater-than-expected doing per by With as share. as more ability performance that one share full guidance previously as on well quarter was our in patients, FX year-over-year year so, our headwind tariffs. increased for us our in ranges overview, morning, operating shareholders, financial an

Access by products. Interventional our currency EMEA which basis, Americas revenues X.X% a But momentarily. increase and This family. first on on is of Urology $XXX.X driven is we I delivered breakdown are $XXX we our quarter Vascular as The reported The the constant of of quarter and reminder, see product product you basis. also revenues global Interventional one our Access category on X.X% revenues reporting a million, million, of an discuss which segments Interventional As is will an a here. currency providing are constant led of a increase basis, by a

on XX% and business of revenues in increase our of of an in million, a China led million, a first also in $XX.X perspective, Interventional currency on increase and XX.X% the From and grew a and we of basis, saw products. geographical driven catheters Vascular, quarter, $XX.X our strength Surgical reported by constant revenues XX% Access reported basis, OEM lastly, fibers. business in constant currency an And Southeast by Korea Asia. strength performance Asia our

we pleased expect to in single for growth the our quarter full upper grow While one are in we the business the continue to with rate this OEM year. digits business,

by by discussion the increased PICCs driven product distributor orders. quarter CVCs, a first Starting to a certain revenue of in categories. $XXX.X and timing basis move Vascular me partially to on revenues Access, on constant strong with currency global growth let North by Now million, X.X% our a offset American-based

to Access. Moving Interventional

which areas these $XXX.X increases constant and XX.X% revenue with product part million, was product quarter intra-aortic lines, as was in as as as on an sales during products is OnControl approximately quarter growth increase Solutions consumables microcatheters marrow of extension the was product. business strength biologic that currency bone one were well with this and of portfolio. basis. pumps First of like Growth The in well Vascular coupled Teleflex in broad-based, legacy balloon a legacy our

the bore MANTA Interventional quarter. entered U.S. during market its product, through is limited large product release Our closure the which the Access reported category in second

further thought-leading continues to with invest MANTA's key support market be ensure physicians for we commercial a the release to rollout the strong strategy initial infrastructure Our building in long-term as to outcomes growth. methodical limited

of in our the continue the early MANTA contribution such, results. As to immaterial be XXXX expect to U.S. from revenue to the we commercialization

Now on driven distributor American-based primarily currency to which decrease is timing quarter laryngeal our The decrease products. first mask turning here seen the sales of of revenue X.X% impacted which North constant by was million, orders, $XX.X basis. Anesthesia, is a a of

the in RePlas, update brief on a For of continue quarter XXXX. third to on completing focused we the be BLA submission

million, to shifting sales by revenue of $XX.X Surgical, X% clips instruments. to currency constant a surgical basis increased and Now ligation on driven

no as, growth revenue global currency longer headwind we lines, the rate exit We rebound experienced during facing line constant of trocar are product are surgical in a our product see XXXX. we pleased XXXX, to the during

Moving increased currency million. constant Urology, XX.X% revenues to on basis Interventional $XX.X a to

of make progress driving in system. the to adoption physician sales force good continues Our UroLift

of As XX% of were sales force which approximately reps of just the XX% the at associates. stood sales sales quarter, first were field our and over end XXX,

this out in as to We build through we trained methodically commercial XXXX. total States. move just market a commercial will the has team the urologists, team continue From XX,XXX perspective, of over a X,XXX penetration United urologists of

and of that relief provides onset surface We BPH, this just no durable more new year, with invasive the commercial Every at offering physicians large dysfunction. a clearly think about rapid, sustained organization solution sexual proficient have scratched our treating way of minimally opportunity. market patients truly the changing becomes penetrating

median following We progress to this the training the of also U.S. the base removal lobe continue from contraindication to UroLift physician UroLift an make obstructive label. treat using on

to can in While low, to finish the the outcomes the of U.S. prevalence use deliver will we lobe median rollout in of good physicians now XXXX, with X, challenging the the UroLift lobe physician to mandated in in on lastly, we leaders for the anatomy. opinion is a UL launch of with latter clinical Once this half market base begin conversion PMDA see men Japan, U.S. obstructive continue training median actively for preparing UroLift full X of the expected from of the UL the we the XXXX. with And post-market to working trials. UroLift X key the

move through the UroLift the in over XXXX. lives, XXX mid-to body leadership Japan, United we the commanding XXXX, anticipate in sales million XXX,XXX over market covered XXX we of category, more release a with has States a market in patients limited the evidence UroLift force ramping largest in launching established we quality As position. highest clinical believe treated alone, and process, the U.S. a with of late revenues in reimbursement meaningfully With in

UroLift due and Anesthesia for Vascular basis, a gives products. respiratory X.X% are urology in and to our category, period. businesses to This Urology our attributable was products, OEM other growth confidence and increased in was And same revenue the in our expectations we comments reaffirming over down care our respiratory currency approximately ensure bladder completes quarter Interventional revenue first further positioning product million. were sales let dynamics our on XX%. of our and me lastly, of strengthening management $XX.X fact, our that the our covered North review, on in which annual within We segment performance. high on performance full-year in since totaling of to declines constant of growth The lines. the my consists one American-based of first impacted That quarter distributor Urology that guidance, sustainable XXXX purchasing multiyear focused summarize quarter us business a Revenues leadership Interventional of are

term meeting. AUA, invest we would the leadership planned data. the strengthening Association, position briefly our at clinical like or of A high-quality Urological to Next, things upcoming commitment to is significant to some over long I UroLift American highlight part discuss in

the the is will like tomorrow that first presentations of would UroLift. of Annual Meeting, clinical that to some showcase the takeaways the of Given important key provide I AUA day data XXXX

studies even on Results XX and those of System, X,XXX real-world clinical Australia. UroLift with North of received a seen the presentation sites population. previous the results in who First, more patient is across patients diverse in a UroLift with were America consistent

experienced with of symptom function including that types study at the obstructive all median sexual function. those a prostates, looks all that with is improvement and in of suggest from preservation prostate sexual of Findings type and Next, patients enlargements symptoms outcomes lobes. of study

on that third examined will readings three being patients results better cancer. if XX% condition six with bladder UroLift any screening. months, to demonstrated patients be in catheter from XX The obscure MRI the the cancer impact, at prostate urinary there the free is the Results with study lastly, study health. late-stage retention, acute a within patients often the much the that or MRI months. significant with much show UroLift study very patients readings poor UroLift in implants receiving found a use patients, were examines BPH System have The of XX% of and unlikely reported And for of

of XX As and efficacy. its [indiscernible] publications has on UroLift safety of end the

we you capabilities would results. are deepening body physicians pleased we believe care the evidence of and of the outcomes the building standard evidence and this in As drive broad-based. BPH. to contributes of continued invest this System reiterate was UroLift see, more clinical first making UroLift and to I Ultimately, Revenue understanding in can for we with by its physician quarter In our real-world growth how industry-leading continue closing, like to adoption settings. treatment of of will

year invest XXXX remainder exceeded we initial adjusted that proactively results which us full completes for of opportunities, our We over and call detailed to slightly our That continue the prepared XXXX share to well turn our quarter for the and Tom? Tom expectations, beyond. like earnings higher-margin would guidance. of review positions to per now in more my financial product and first remarks. I a achieved of all results an

Thomas Powell

Thanks, Liam, everyone. and good morning,

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

quarter, the million XX.X%. year UroLift these adjusted prior programs increased approximately The gross profit $XXX.X foreign versus foreign year million that period. exchange, as from an first margin from X.X%. and primarily XX.X% operating the a the quarter million gross million in operating $XXX.X cost and or as XX from versus inflation. of restructuring of basis was in and our to prior to adjusted was prior Adjusted year volumes points margin negative The Adjusted in increase programs. $XXX.X Offsetting period profit the was basis expansion impacts the of flowed quarter gross impact decrease negative through margin the manufacturing For well Adjusted impacted $XXX incremental increased sales margin also inflation gains gross impact year. XX both reflects as benefits to margin. improvement continuous over adversely incremental compared exchange, prior in points operating were tariffs tariffs or

a quarter during the The On year swap net income down the planned, margin of completed interest fourth XXXX. Adjusted been Additionally, primarily investment MANTA as decreased the operating adjusted in UroLift was approximately increased we was impact currency reflects neutral and cross-currency expense XX.X%. Continuing quarter. to the statement. in prior in $XX.X decrease would $XX.X that basis, have of commercial the quarter. million from million the

$X.XX as the in jurisdictions higher For due result XXXX XX.X% the reprocessing amount rate first quarter, Adjusted of per of includes XX.X% XXXX $X.XX tax prior quarter was a per year-over-year per or in of earnings the headwind is share, first well $X.XX This tax headwind adjusted year of primarily in tariffs of the X.X% came as to divestiture earnings tax of increase the the contributed an business, the versus share rate mix a our which quarter from share as period. reduced our stock-based currency from at the quarter. catheter to increase The benefit during first of of XXXX. foreign the share to of to prior our compared in windfall per and quarter compared first adjusted incremental $X.XX compensation. as year a

now select Turning highlights. and to flow balance cash sheet

first quarter primarily increased year XXXX, $XX.X is the period. the flow million For operations from the $XX.X during to to prior million in of quarter. attributable consideration totaled cash The decrease payments compared

Finally, credit this at the maintain contains billion below revolving $X and requires the credit the fourth XXXX. the and facility and which first to the covenant, we a to the second largely gross million from our net credit for restated which leverage debt term the of outstanding a first an of amended of was which company week quarter entered maintain end a leverage leverage during quarter, X.X Of provides facility into quarter note, $XXX agreement, requires below times. times The company compares previous to X.X agreement, new credit loan. unchanged

net on the at end the under of defined credit the quarter completes results. new level comments Our the facility And stood quarter. first X.X as this approximately my at times first leverage

Now, update. to I'll move XXXX guidance

reported We're our reaffirming adjusted our of growth previously range. X% also ranges to margin as X% currency provided guidance GAAP previously operating well margin year We guidance revenue reaffirming are of X% provided and and our gross constant full X%. as adjusted to range guidance guidance our growth revenue range

as GAAP of our from certain XX.X% XX.X% have of reduced range XX.X% margin a to to a full value. is additional guidance as reduction contingent consideration intangibles XX.X%. year operating well revised have we The that an of no of longer we range However, result to impairment deem a expense to

expense. interest to Moving

to and We year expense million. be interest million $XX continue to $XX full between expect

Fed We Of expectation the at from previous end XXXX. that in rates versus late and for a $XXX to we include current of of note, levels current of million again increases closer swap rate rate March. the However, interest QX expect to projection our completed to benefit expectation low a the of be as interest range. projections in the in QX the reduced result maintain

me and EPS previously our Turning to We expect that our full range to $XX.XX EPS XX% GAAP to ranges. taxes, between we our of That rate adjusted tax XXXX EPS will year continue XX.X%. adjusted $XX.XX. takes adjusted range reaffirm and to provided

a reasons previously outlined connection the for margin, to reducing $X.XX our range of $X.XX. our $X.XX with EPS operating GAAP from in $X.XX are However, range we to full year GAAP revised to

range our As from contemplates to an of our level Teleflex. the catheter headwinds XX% of and categories. to a earnings reminder, offsetting quarter I'd investment business. the that and and headwinds In The our and range first to like XXXX Overall, full adjusted higher-growth exchange foreign of we excellent inflation to exchange, product our into perspective opportunities, tariff includes foreign EPS also XX% funding growth increased investment XXXX reprocessing also with while divestiture pleased higher-margin certain revenue an while year are tariffs. guidance key our was closing, beginning reiterate for behind by grow expectations also and

previously that are We year results with us up We strong to concludes earnings the guidance. X.X% prepared achieve expectation currency QX our our above revenue provided per remarks. nicely constant respectively. of financial pleased XXXX and believe sets and $X.XX, share And full my

the to for call over Now Q&A. back turn I'd like the to operator

Operator

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

Your line is now open.

Mason Edward Oliva Austen

drivers out and you was segment. parse you just quarter in I one see if wondering a David. XXXX? strong then sustainable could And growth for just I Interventional, to this just here on Mason of how I do out follow-up. start out with wanted is the this pretty quick This had

Liam Kelly

it's here. Yes, Liam

the – What quarter. our Interventional very positive we're is business broad-based we So performed was. the how on in well very happy. We're increasingly growth

We the our with a the of and GuideLiners, the will latter particular, did performed I the pumps expect year that that microcatheters, stellar Interventional the the said high the we in basis sneaking our as VSI the even Interventional As double still catheters balloon had – quarter remarks, some from well, business legacy better or my and execution TrapLiners business acquired. in prepared old a biologics in the business singles, on grow digits the half into the maybe that into year. full intra-aortic

be So on areas off growth the I it our has pleased we what started bullish it would one is highlighted about strong. quite think in Interventional that Again, is incredibly year the of we're Access. driver I'm particularly a that and

David Lewis

Lewis. David it's Liam, Great.

question. to here Sorry about second in the of with just jump that. I want kind

half So, get harder, back a Liam, I when improves. the comps little pipeline think year but the the about of

for some half related to selling dynamics. outlook are that, about in think day that at versus here And half thinking think quarter. business about trend above have we back-half talked point? this just the year back You we about XX% year. you the of about NeoTract, second half as How NeoTract should you this That business into then first thinking growth? the well first growth about How

Liam Kelly

Yes.

QX for comps toughest QX I focus think, that comp look So our much should overall we're in David, year, back too a to sure very and was last you we the I'm last we business, happy our had if not that year, with because the on too year. very start. solid

around addressing tailwinds your your and guess, question a NeoTract extent. headwinds what for So large I is and I really expect,

during We got the So business at exited grow at to the year. OEM is going catheter that XX%. don't not expect XX% year. from the perspective, we in OEM a reprocessing we grow headwind to

of And had basis. some should distributors see and then a we Other digits to it category. of set a us year Anesthesia Vascular, destockings from down the single to we perspective in tailwind continue So on where full growth, higher

it the in into be will to high happy a the range mid-single-digit Interventional do on really Surgical and Access Surgical, to singles I that singles, As maybe high and doubles. said, see I'm sneak recover APAC basis. full-year should

it really, really NeoTract, and obviously started growth. posted Regarding strong XX.X%

for Now but we're get as we number, our I to our at be And sharpening year. pencils guidance got got year, by a ranges, of very setup on into the some look we've a will couldn't the the tell Obviously, and start. is full you David, full in encouraged year start. the with think XX% great the happier later I I we

half First the I a and second from comps at it's in half, start will a it's but we setup the – great don't have great David. tougher it, look where

David Lewis

so much, Thanks Great. Liam.

Operator

Thank you. Lawrence And with James. our next Keusch from comes question Raymond

line now is Your open.

John Hsu

This is the spend about start million John the in and just MANTA, about how Larry. just the do Hsu remainder If XQ? could that talked we think for the gating $XX much on on you was had And for incremental realized we UroLift year? how of

Thomas Powell

to as amount to $XX $X expect didn't X/X spend, So that for quarter. think it's amount, first we the about we overall I'd total little million the the continue say a that more in spend that spend certainly year. in million the we than full of quarter,

that out QX going we in of about year, think majority plays and the As see in how forward expect really you QX. the that should to

John Hsu

sounds specific scenario the Do year. mid-XXXX And think your later And where second Okay. one expectation? then a on X, just then could is than it where I it's on this launch like still I process – get you – in for Japan tracking UroLift. reimbursement With little see guess UroLift there Great. a you there bit faster a a UroLift.

GM do the long the for how XX% to product? So it realize higher plus UroLift or the second high-XXs think take will you

Liam Kelly

conversion X. deal so with of will I UroLift Yes, the

full we we fully said XXXX, margin we're pickup. and then, XXXX. XXXX right will market remarks, see will for gross at late in said, as roll already the margin U.S we have conversion by XXXX. converted the As gross I I stage the prepared and of get XXXX. my you'll to total and that prepared it in that we realized as But in And aiming have in completed benefit up pickup we'll the expect in markets to when expect we're in later to From approval. said midyear Obviously, will start ramp we ceding the see be we in mid- in XXXX. that you Japan the here XXXX mid-to by remarks, that my benefiting particular, the – out But perspective, today, reimbursement as late of

our Now XXXX, had little tell we I very to practically in got LRP, – revenue that Japan in for in you none.

a is So us. if this positive anything, for

John Hsu

more? year? the about are see if And Okay. could this flow Great. the then just those cash LRP? free you the you that one in I generation masking how And the us of remind items sneak progressing through remainder Can

Thomas Powell

look Well, at cash results, from impact first ops the of really, quarter contingents the is from you when coming flow increased consideration.

in in change estimates quarter, of our result $XX reduced million. from a as flow by cash the that's So about ops actually

to our as change. so year full consideration on it's compared And full we be ago, year, the versus at a expect contingent look we still year a But again, plan.

John Hsu

Okay. much. Great. Thank you so

Operator

And our SVB comes Newitter Leerink. from next Richard from question

now is line open. Your

Jaime Lynn

Jaime on you guys question guys is I have some timings. distributor that Rich. first guess you experienced mentioned decreases have had order to due Hi, I this the for

that then the that a is the you greater expect if just So I And what quarter? year? was that up you of happened a with throughout us little kind something the remainder to sense of bit in of give wondering of make can

Liam Kelly

what to cord think, I of the Well, with roll businesses you'd about let Teleflex organic, we the the as see into saying we've is is – been expect distributors. all that's what

distributor great in able in cushion moving our through movements. think a So from these about this Teleflex perspective that and we're half a business past, quarter, now against ourselves And thing the one-third. of distributors about to these went is forward I

was a did thereby number had overcoming remainder were in distributors, the offset of in think more perspective, saw growth with than to very that expect we're destocking performance within we – some even a we anticipated. to and from post businesses that the but during and encouraged that the XXXX, excellent our to we I that would by. able We we the back that year what exposed are to definitely So quarter not come

Jaime Lynn

just Great. I And you sorry give the I'm the for then dollar was thing, what but amount actual if quarter? Okay. did UroLift housekeeping in a missed it,

Liam Kelly

we Yes, that... did. said We

Thomas Powell

million. $XX.X

Liam Kelly

We million quarter. $XX.X posted the that in Interventional said Urology the business

Jaime Lynn

Thank Okay. you.

Operator

next Thank you. from with question Matthew And our comes Mishan KeyBanc.

Your open. line is now

Matthew Mishan

to Kind previous are distributors their question. levels think? destocking? you this lower they're has seeing even taking persistent that of follow-up than a why would Is it – inventory been just Liam, you where

Liam Kelly

So think much of it's them taking I don't a their levels inventory lower. question

dynamic some You distributors. see a different with

Some hold more stock than others.

Some will XX big hold with basis, it in below flows. XX days, as night. rolls ebbs impact Teleflex and XX XXXX it, in with but our have full of as always it just business night some Matt, about on not as Tuesday by stocking might and orders whether to I'm in contract – an be you and to depending the customers. On XXXX. to America. out. all I years. hold Tuesday that can't year going have a to level. as will confidence they than And And with it's not up of on as their – their previous will a overnight They and days that quarter-over-quarter on us It Matt, less It's been may XXXX balances XX concerned comes exposed as customers or distributors and go see it not think, they throughout you these place some centers organized, have their What

Matthew Mishan

sustainable the you've in count forward? with that moving the by on you're can Asia growth, the double-digit UroLift obviously, then, something seeing Is in given Okay. how you on XXXX? investments And growth And some then Japan made? stronger coming is of

Liam Kelly

growing some of Obviously, And double maybe the have the Yes. levers it into accelerate those single, years. the With still Asia, our NRP in our would expectation. that's high is for digits. in would sneaking we that outer that

is this year, So singles. our high expectation

encouraged. to was products. is products, Surgical products very Again, pretty Matt, from coming Interventional and the Asia-Pacific it start. a great broad-based Vascular Access And again, off we're

since So half. we've again, we've XXXX. been Matt, And X.X% encouraging posted geographically QX a what momentum our since half of and that perspective. see been from second business of now ramping, all And as building most product second the is that's we and the broad-based in like a

Matthew Mishan

Right, thank you.

Operator

you. Taylor from UBS. And Matt with question our comes next Thank

line Your is open. now

Matt Taylor

Hi, thank the you question. for takng

ever mean So about to just the guidance year. question on little you wanted in just really have you forecast? being UroLift guidance. that the raise strong the you're first given to here, confidence start the philosophically, I and QX Can of more out you totally your overall ask you're just was get conservative well talk picture I I or bit a annual the on ahead about, because start would here, in

Liam Kelly

feel Matt. great really about Yes, business. we look, so Thanks, the

performance see as think the it's you that remainder the this As the from of again, in QX, I said, broad-based. continues We year.

our work very our or As our think we've a to XXXX intend shareholders. we position to think put revenue delivering on in about I to ourselves commitments strong on guidance, meet exceed our projection. we And

our take through an all have another and we our we'll As as been revenue we sharpen year, but we won't have quarter. pencils, look the excellent We're very down opportunity an bullish Matt, growth. for go to water year

year tucked think great approximately the under UroLift, Regarding a first XX% The UroLift, belt. looking great start. It's is a full great good it's quarter again, growth number. it's – that I a start, at a

year. We have went do in this through addressed be to a actually QX. comp encourages a Matt. UroLift if the did again of we as the you recall QX, weaker we promising And that also very in position actually we'll in the hopefully, year, a voluntary revenue UroLift last recall in which start, It's year. us growth And we because

Matt Taylor

doing the could some of that highlighted well? And was pieces you growth talk maybe those different growth? I are just you hoping unpack the of Interventional Can that you about Access

Liam Kelly

was, So as I broad-based. said, business the again, Interventional

you I'll if want think of cover nearly couple to a I at of I But XX%. the here, that the grew weeds some Matt. get them. into look we OnControl, too many the – saw don't

If you grew extensions, around catheter the look it at XX%.

If microcatheters, biologics in at those was you and above look XX% well that numbers. was too up up

– over start, a around at that If business, up in look intra-aortic up our very had solid digits, double well you XX%. the

So broad-based, Matt.

Matt Taylor

very you Thank much.

Operator

from And you. our with Matt Jaffray. comes Thank Piper O'Brien question next

is open. now line Your

Kevin Farshchi

utilization And wanted This comps. Matt on different is the previous do those of NeoTract DTC metrics outperformance. expanding the I to tough there you're than one that from the this off about putting that talk fronts you're looking for ones how point provide of on from And for again, year? momentum. Congrats the you of Farshchi just those the nice second, Was perspective, specifically you today. Any Kevin going accounts? back quarter. start, bit kind two perspective, on to have the exceptional I could rest as additional growth, the a if trend something contributed put at quarter and existing to follow-up. that you behind I a can a finer think to little wanted resources on in program about

Liam Kelly

Yes.

that So of metric trained. urologists that think we've we look the I most important is at the number

we've trained within just only We've over $XX of in in urologists trained the States. the X/X United with generated urologists United revenue urologists X,XXX XX,XXX So States. million are United There within States. almost

either outside in is on we question where from revenue from, your perspective, the XX% the the continue see the to the hospital office. revenue of or environment account coming Regarding ASC coming an of

momentum see to area. continue we that building So in

from, over out the in where the positive coming on No change of X,XXX revenue of very to continue we and change service. training see XX,XXX. size urologists of no metric the So we of in the getting be

increase same-store the lastthreeyears we've in we continue sales quarter-over-quarter. And for the that's category. product see this within I to what think seen same-store an sales,

Kevin Farshchi

that business I super just you. a well. Thank had as That's follow-up helpful. on

kind a on today? as productivity call for of of Could numbers that they XXX year? color rep in they And on any on bit you mentioned then the increasing group could You if Thanks. demand. increase trending stand that RePlas associates the reps? provide bag UroLift us that you're the expectations versus to remind How little the X the product those you are last to additional with meet and

Liam Kelly

the it part answer So I'll of first. last

rep, But in reduce improve reduce a launching or just it about, sales obviously, per The a per X. $X during the which clinical fast-growing of product. representative, around UroLift you wouldn't there costs investment doing a but any And isn't It The The number one productivity of waste we did doubling million for will than the year. during margins. will will UroLift is would You is at a expect will that play that annualizes reps the rep rep this or we're waste DTCs there. to is that pricing by end obviously, positive. urologists, productivity their year. disposing higher from go DTC very of add our which asked the to expect continue continued X the we

said that to around sales we've is Our normal expect add every year. XX we that heads cadence

in two Now we've equal and last above we Access, Asia. that is so is our gone as one so all not better. we've we're them, said, asset are years margins behind since for where areas because Teleflex, the is of this owned growth just And is – we're the this investing Interventional definitely

some are leverage and that better can expect where therefore you our income in getting margins statement. – So in our investment continued Teleflex areas that from

Kevin Farshchi

again. Thanks congrats Okay, And quarter. on the Thanks. perfect.

Liam Kelly

much. very you Thank

Operator

And Weinstein our William from with comes next question Blair. Brian

Your line is open. now

Brian Weinstein

and type quarters do guys know see of there? it products, that just guys, Starting share you within those maybe Haven't of category? my do PICC continuing to just what update have on CVCs, PICCs for the you a bit think lot guys a you from so going of the on maybe gain you're couple on pretty little whole there, questions. clip. a just at I now commentary you heard Hi in just more And healthy what general. in guys last taking what's with in thanks

Liam Kelly

for PICCs. thanks the start with question. look, Brian, I'll Yes,

the was within growth PICC quarter. almost Our XX%

We that believe are and behind Bard, take continue two to within we're share we growing now become a two. markets. continuing key we We continue we'll in the number believe particular, and take American to number North to strong share, and

areas of growth the top in in that me, that that accretive or growth destocking. can't enough our had again, statement areas Our and are pardon and to even we not our earlier. in drive PICC on And grew on CVC with succeeding X.X% state to, all trying – quarter expand allow place. is mentioned nice quarter driving within programs income to business. And I have margins us Teleflex I growth these within leverage we're reiterate therefore are the our in margins solid we a the around philosophy CVC again, the the equal, are and in business help business areas is that our our restructuring all we

Brian Weinstein

for that. Great. Thank here. you question And then obligatory the M&A

of guys maybe funnel about have the that and on you internally? clearly how update give kind pace are just You us doing you. of you talk you're thinking the about things and an capacity thinking M&A, guys to Can be about Thank something.

Liam Kelly

net end, Thanks, the X.XX down us ratio X Brian. obviously our at times leverage It think below Yes, gives ability and we're so the times. capacity. the I is

to track got good excellent get would and We that envision aware of excellent we've continuing. record we M&A, the are we credit that deals, an acutely doing for want and

continue have this to patients, be We we space. active in

that do feel with with acquisition. we're in to to The will to we to assets. perspective also but think make our do M&A. Teleflex we M&A, to I as and need look comment we – great And, at that We any don't that obviously, very performance accelerator, We to where like mean obviously, to progress business an area. thing from an is take continue of don't without continue going not or see a a continue comfortable would the continue patient

them and are core It's few bringing And of serial assets think our identifying organization. company. We I Teleflex better a these a acquisition of there's competence than ours. into

Brian Weinstein

you. Thank

Liam Kelly

Brian. Thanks

Operator

Jefferies. And our question with from comes Anthony Petrone next

line now Your open. is

Anthony Petrone

year to Thanks. UroLift have here. one and on the a Congrats MANTA. on I good one start on

quarter in first ahead was for here. competitor. First reimbursement numbers I a there were The a earlier UroLift year the of UroLift. shift for one in our on expectations the know

the any in I'll wondering with the there? reimbursement is the out Just if follow-up. landscape come back impact in shift And having

Liam Kelly

significant the on rather impact believe a So I competitor the an any impact And always I've clinical think the way. don't in speak and the building really outcomes the We're had growth. procedure. right or and the going this quarter, reimbursement is see themselves. believed it our for having any has business growth. in for for the first actually our competitor fastly just growth I from deep still will going our on office-based win on that think don't And and made we're better. We material I seven wide than least, treatment of And that our twice Sundays. competitor, for days on week becoming from very our numbers procedure understanding impact focused a are as you the of It's the see can outcomes care clinical standard simple. BPH.

Anthony Petrone

the The off maybe pretty update, know follow-up still that in on benefit only coming showing an very then that your in there just TAVR are with benefits I MANTA, just healthy. year data suggest minimal there. a of from cycle data comments think we're I low risk And that is This TAVR heavy numbers product.

kind MANTA? as So to I'm year that look of just thoughts this again. market kind from of can Thanks on wondering, contribution as But what have updated outward, you the contribute? expand, do TAVR what continues any you

Liam Kelly

Yes. very about MANTA. Look, we're Thanks, excited Anthony.

commencing nice QX. U.S. another did. one think in my prepared those limited in And I I time mentioned release in of Teleflex we're market that seen very just the acquisitions as will marks, be this as

TAVR the sure making right very we're sticky our we it's that the product very level centers. get great to training focused also pricing a some The is testing within becomes the so market. that are We thing

XXX market we're we as we'll back Anthony. as additional the which release. vascular should don't into growing in XX,XXX. And Again, is data, we guidance less around testing go hospital we XX%. save know, five out the as to States. days And expect XX% within revenue that's scenarios release, TAVR centers the it's And to very But MANTA. XXXX U.S. major compelling, what roll in hospital more got You've get give than from as we a clinical XXXX for United reduction market, those the significant complications expect major and in the why TAVR in market some limited complications pricing the we in limited I'll that

Anthony Petrone

again. Thanks

Operator

you. our Stewart comes Kristen Thank Barclays. question next with And from

is line Your now open.

Kristen Stewart

just guys. of was Hey, clarification in for I I good wondering, – Tom. morning had a terms just

was will impaired? be I just lower think that he going was GAAP impaired, intangible mentioned EPS impairment. or of had guess, I because number an What the

Thomas Powell

$X impairment, minor size. in It's a million

with included in connection acquisition, in off option that for the So not option. product. future transaction, decided pursue QT product future a And as to Vascular the was we've result, that we've written an and a

Liam Kelly

with coatings, that be an we'll It [indiscernible] future. announcement, recent Yes. exercising and the into we the was just auction believe don't

So impairment. that��s a modest fairly

Kristen Stewart

Got you.

to will you for year, as the out right? in that guess, day the Okay. And of to do one then looking balance out that about just I growth. less points have correct? selling XXX just you're, So XQ, Is point I be basis guess,

Liam Kelly

about have again points, to up that quarter QX, in It's pick in going to we basis just is And I XXX a Yes. pick to be if going about – and billing am it's QX. be the and back quarter, normally day day if want a to clear. I'm ever I

Kristen Stewart

long roll more basis to bit on year, little that you're of Is year you another kind other of take expansion? roll follow-up On could why a it does a questions. take then so would margin could one why full drive later that question, from to this X, something And if good. U.S.? kind help of out? of it it sounds expedited a That kind And in do last UroLift possibly the just the Okay. starting it more out

Thomas Powell

to this. be this on product. a the we're divisions taking reason So it We we impact to of can are I do our that because to is And growth new any that product time, the – training thoughtful under being we methodical. again, want of want way, circumstances, trying on we're be if put not, –

over it every a as are reminder the do doing to a And going the years level growth while So we month those the who keep to of we want physicians. next some that cases to new on as to urologists what champions. clinicians said those them converting only are retrain back can to of at a also number develop the previously, number of accelerating I smaller also technology

BPH treatment get use to of they UroLift care. that the more and trends Now it adoption for encouraged be the standard seen of become I have of the think as product, UroLift champions the becomes not rapid the behind growing they'll to

Kristen Stewart

much Okay. so guys. Thanks

Thomas Powell

you. Thank

Operator

[Operator Instructions] Our with Mike from next question Needham Company. & Matson comes

is line Your now open.

Mike Matson

question. taking for thanks morning, Good my

Just have UroLift. another on one

the selling kind So a with product or distributor? pricing a to you are And U.S. or line be force lower? you of the sales in higher do through or Japan, expect direct the in

Liam Kelly

we to work opinion reimbursement the in reimbursement, don't our to with In development to question, market your is With some regards this envision know the be intention force remarks. I to will Japan. Japan is some Mike, to out my answer first as feet on be going sales do street rate we build prepared such would we putting it XXXX, that that to in that in leaders way. within what a in So key close said until year, Japanese a Japan we the that close we that reimbursement have a that alignment Japanese would level me and envision it. it Association, States, is the would Urology authorities, United with result, – We that there is the American given feel would get Urology we reasonably happy which between Association of be put in let the we and be

Mike Matson

we could agreement And for do the have your the away, if add how impact, that the to just wondering you here quantify and tariff trade a would remainder much then, and Thanks. go margins Tom, if the of tariffs Okay. year?

Thomas Powell

Sure.

impact the look estimating to million about a As currently at the we on year full tariffs basis. XXXX, we're for $X be

four. to we'd away quarters you'd tariffs get two. again, a million in estimate quarter go if And $X of So benefit two, were and assuming three, those for potentially quarters, all future that's

Mike Matson

Thanks. Great.

Operator

to you. am closing now over questions for like further remarks. call Elguicze any I would Thank time. showing to turn back this the any I not at Jake

Jake Elguicze

for to Quarter XXXX Conference the Teleflex Incorporated and This concludes call everyone the Call. First today. Thank Earnings on thanks operator, us you, joining

Operator

program, participating have Everyone, today's and for a today's you you wonderful disconnect. conclude all does in This thank gentlemen, and day. may Ladies conference.

Teleflex (TFX) 3 May 192019 Q1 Earnings call transcript