Earnings call transcript Q3 2022

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Operator

Good morning, ladies and gentlemen and welcome to the Teleflex Third Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note that this conference call is being recorded and will be available on the company's website for replay shortly.

And now, I will turn the call over to Mr. Lawrence Keusch, Vice President of Investor Relations and Strategy Development.

Lawrence Keusch

Good morning, everyone and welcome to the Teleflex Incorporated Third Quarter 2022 Earnings Conference Call. slides at this teleflex.com. and on are release website our press to call accompany available The

provide be to As available morning replay. and also Participating on reminder, for our Please a this to then today's website Liam a call Kelly, details on Officer. Officer; will on Vice Powell, replay Thomas Chief call access from call Chairman, Financial Executive to press release and are President our will how be and Liam prepared open the will Tom and we available. President and this refer the remarks and Q&A. will Chief

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

hear statements and to intra-quarter not regarding trends will make in may business is management insights you investment the quarters. provide commentary occur call, community providing disclosures Management conference this this with During these subsequent concerning performance. additional

remarks. to will Liam With call his the I over that said, now turn for

Liam Kelly

good and morning, everyone. Thank you, Larry

revenue decline per an basis. $XXX.X growth on share of negatively X.X% were a increase of period, the implying X.X% under and and currency supply reported earnings Respiratory of year-over-year X.X% to X.X%. the For currency underlying a the declined constant growth with manufacturing quarter, in third revenues impacted agreement to year our constant associated million, quarter, on divestiture X.X% Adjusted prior of basis Compared a Teleflex $X.XX. by assets prior the transition by year-over-year the

majority at continues quarter, UroLift the Respiratory grew remaining the the the X.X% progressed and has This of and in portfolio We in of care of underlying business to August. purposely the third ill the of units reflect XX% the rate with third performance to over reviewing strengthening quarter. quarter patients. divestiture, executed benefit In Teleflex's When an September July that our the diversified of target adjusting excluding the well. been revenues saw critically built for solid improvement as business

Our OEM business unit drove year-over-year double-digit revenue growth. constant currency

approximately While the Interventional business unit grew X%.

Teleflex. constant Our for another solid growth turned driver mid-single-digit with be we a in results an strong to important Surgical geographic currency growth in Asia From performance perspective, continues which business year-over-year. saw

drivers. business urologists across Conversely, includes quarter Interventional missing Urology third In momentum controls maintained on by impacted PIC which continues patient EZ-IO, MANTA, internal revenue remain growth that to modestly revenues down staffing majority and to the year-over-year and be our the high-growth products, with of quarter, hemostatic UroLift, objectives. shortages,

For UroLift months, the X.X% declined X has year-over-year.

to high-growth While of continues the the products show with in remainder growth. gains XX% portfolio healthy

the durable XX% XXXX. X prior than has accounted X.X% in more In year compared Moving over durable revenues the of the revenues period. to to core of months for first generated XXXX, which growth core

In internal during the our with freight quarter Turning declined of in to some sea inflation; there are particular, improvement. with costs elements areas of stabilization expectations. line

the Vascular backorder raw Availability in to of quarter, during the elements components in businesses. select third third yet and of normal. to supply-chain especially dynamic quarter. levels We continue elevated resulted back our are greater-than-anticipated and materials not disruption This during see Interventional some

end a expect flush of to the orders those by through back we unanticipated portion of forward, XXXX. Looking

from quarter to the will third for year-over-year third our on Now, in a I results. for referred the begin of against offset let's associated year that of by All a million ago Vascular Respiratory negatively single-digit Interventional comp reportable Interventional a a period. tough supply-and-transition unless quarter. turn in review Lower with the quarter. were revenues recorded implying $XXX.X noted. rates flattish decline manufacturing the declines by I growth, growth revenue Americas represents to assets X.X% underlying are impacted which our revenue revenues growth divestiture dive and constant our a a prior into Americas high Urology. agreement with performance segment X.X%, the otherwise basis deeper currency

supply-chain some did quarter. experience third In addition, disruption during the we

of X.X% revenues increased $XXX.X year-over-year. EMEA million

see to continue We procedure year-over-year. volumes improve

were revenues XX.X% geographies across million, had a third all very the strong with the Asia; performance posting XX%. during growth region We to turning strength with exceeding China increasing growth year-over-year. robust Now quarter. $XX saw a

product will units. by Let's now by to Consistent of commentary global third business category. discussion product global currency and move our our category basis the quarter quarter in segments, on also a growth ranked prior a of constant comments third on regarding revenues our reportable my size be with

Access; part comp to the to year-over-year due States. million. a the The reduction in reflects unit in the revenue United $XXX.X the in decreased care patients tough Starting with Vascular intensive COVID performance X.X% quarter in in

our greatest Of supply due for backorder for confident packaging the abate We central exposure in comes position continued raw in business industry has coated midlines, quarter leadership that remain noted, PICC in to growth. tieback and catheters and note, along tieback additional We us the with dependable our was novel online. venous as to XXXX As the category previously there material shortages. during anticipate shortages kits that for to trays. some the elevation vascular portfolio our will

X.X% balloon diversified MANTA Interventional; across saw contributing portfolio million, all strong to during with third control, was catheters year-over-year. revenue Moving the complex quarter, and performances to on our We growth. up $XXX.X pumps

to during quarter. see of elements supply-chain We continue disruption some the

contributed Of growth the in larger regional third revenue $XX.X The all products, business up our year. double-digit anesthesia, was with franchises, challenging growth had last anesthesia; quarter. to comparison hemostatic Turning million, year-over-year. X.X% endotracheal tubes, a XX.X%

growth quarter, led was business; Surgical growth the our another our growth solid In skin product performance million, for X.X% accelerated sequentially, representing with metal China revenues Bariatrics revenue results no and second clip the Standard are during while Of stapling quarter the from in in there the note, categories, ligation year-over-year. acquisition. surgical the following Among lockdowns largest third COVID-related polymer $XX.X quarter.

Interventional our million, For a year-over-year representing and and $XX of was internal slightly flattish revenue Urology, X.X% performance sequentially a below decrease expectations.

not normal. overall yet BPH for procedures environment has to The returned elective

overall funnel procedures. for impacted urologists digits single down year-over-year Third-party quarter visits the data indicates that has the BPH were patient to which high in

significantly urologists, Teleflex year, XX% indicated this experienced staffing the August U.S.-based The patient hospital-based per survey remain urologists of are also than survey addition, XXX shortages conducted In in In a office-based constraint. urologists. week reported cancellations of having respondents a issues. more experiencing that of staffing

revenues last OEM XX.X% increased to comparison tough year-over-year year. million to $XX.X despite a

capabilities, well as ablation markets microcatheters with broad for our and sensing fine fast small competitive including remains positioned thin book recognize for technology. wall interventional and wire competencies customers order Our growth to assess vessels

Third to supply $XX.X year-over-year. revenue The quarter, declined transition and reflects year-over-year. other majority million X.X% decline revenues of lower agreement the manufacturing

the That the revenues to revenue expect completes We quarter comments end XXXX. of at third MSA all continue my performance. on cease to

updates. acquisition $XXX million an an up powered Bariatrics On clinical $XXX of some with upon gastrerectomy. has Bariatrics technology payment for designed of estimate XX, additional gastrectomy the commercial commercialized consideration SGS cash innovative Titan procedures for which payable certain the were on upfront of to stapler milestones. stapling achievement that specifically XXX,XXX September We in XXXX. Standard there sleeve is Standard to sleeve million commercial Turning we and closed our of

are We of the Bariatrics very number excited a about for reasons. acquisition Standard of

needs in sleep up unmet and pouch is and the help gastrectomy Titan anatomy, longest their First, of sleeve optimized offering achieve to more surgeons surgeons centimeters. It setting addresses symmetrical the staple continuous line stapler outcomes. push consistent patients for by XX designed

staples surgeons different, While and of long every cartridge associated in staple staple plan overlapping enables sometimes use line variations patient's one with anatomy minimizing firing. the Titan's is to short multiple firing, place the

design a pressures. higher as the leaks, secure evidenced of line Additionally, chances and staple fewer result may with more burst in

market. effectively the Second, we we share in stapling compete believe sleep can that gastrectomy

we U.S. $XX stapler in expect revenues quarter be XXXX third to a XXXX. Following Titan million launch, approximately

portfolio, into clip Stapler The portfolio. With Titan in EFx complements the surgery special call and point we now continued of going and the surgical percutaneous closure [indiscernible] bariatric business portfolio, Teleflex Titan MiniLap our ligation surgical existing forward. Surgical expect stapler our Weck products our part momentum system

In inclusion market. our gastrectomy Standard team the doubled sales addition, the the of addressing Bariatrics commercial sleeve team

stand-alone have We Teleflex than demand capability Standard with Bariatrics. of reps existing force grows the sales would to as which the triple flex more higher

to Finally, we our differentiation of the with over committees the stapler in years. see us analysis coming value carve-out expand gives due pathway our user base confidence the to ability which through a

can that perspective, and acquisition immediately gross time. complications to the of Teleflex's Stapler will revenue Titan patient the margin of growth overall in and our acquisition and efficacy, reflects operating From the lower the enhance innovative invest to comfort, strategy technologies and products financial over long-term accretive a enhance Teleflex's profile care. safety clinical reduce and cost is Third, meaningfully

in the into expect Dual XXXX. and quarter Lumen fourth Interventional; Langston to over ramp we to Catheter relaunched the Moving sales up and

learning by study mid-September the The was at sponsored Karolinska device and demonstrated patients the of Teleflex, the TAVI. not study XXXX represents curve. largest consecutive addition, complication device study. MANTA low MANTA short the In evaluation conference, real-world in rates which This a TCT we undergoing highlighted

MANTA of was IDE complications consistent Specifically, and the patients registry. the MARVEL MANTA occurred device-related study X.X% vascular with SAFE prospective in major which

year. with to progress live our on With the Summit States were we for third in during quarter. improving, market With respect continue training Training we not in quarter development into physicians surgeons objectives tap the of access and UroLift, on session as we to trained surgeons a to again reach the UroLift. are our recently to yet target the our track continued for pleased new United hosted BPH we

the We BPH an to fourth are excited Summit Japan quarter. during also host in upcoming

increased tissue receive to obstructive continue X, surgeons control in momentum UroLift regarding for We median while quarter. UroLift saw use the advanced from lobes third excellent in feedback

real-world utilization of to will median data and experienced our a end by that indications. us of and of lobes to the first with label's XXXX. both, track UroLift were two end trial UroLift drive customers three our obstructive the placebo convert treated endure those launch on obstructive the U.S. revealed of further controlled and Based the tissue largely our in progress advanced patients the the on remain third the those controlled clinical in consistent outcomes settings. that surgeons engage further in to to controlled We better patients improvement EuroFlow for reveals symptom in did adverse not Encouragingly, TURP and symptoms other men studies. Journal median serious The events. system of Endourology for New within published into in that of quarter, UroLift we with treatment months believe the vast of two at peer-reviewed deeper lobes, treated enable control the data compared majority high-grade

an on Now, strategy international for turning to UroLift. our update expansion

is early multigeography years. on the and be stages in driver UroLift to multiyear, which far. in the are and thus plan. expansion very to Japan of momentum continues X, the launch expected are are with market international is tracking of gain a April to we We which coming a results in growth of our meaningful up began to ramp Cases encouraged continuing The

Looking excited training to interactivity. to physician force reality and enhance implement our we forward, capabilities are our virtual sales

to to within in traction our key the as Given into reach well regions be increase country. XXXX expect we to expand our results we date, positioned

will commercial international in to acceptance. focus fourth with the Shifting we launch cities geographies. with We milestones. a with to expected UroLift on on In our build activities China, engagement and the other track our quarter society key commence remain urological initial

Italy fourth updated and and in still In France regions expect Spain the quarter. reimbursement in in launches during addition, we select

Justice investigation. one to in glad had subsidiaries, False Inc. Finally, am XXXX, an to with share us investors recall Department closed the of the in our Teleflex August that familiar U.S. under with I NeoTract Department July Claims the community Justice that, of investigation had of Civil the XXXX, Act advised that, of informed respect of investment it will the we opened that

look focus every world and pleased day. on We across this the continuing the prepared remarks. investigation have us completes patients serve are my to forward we our That behind to

our would Now, financial to call to turn Tom? a like I of Tom the over quarter review detailed for results. third more

Thomas Powell

morning. Liam and Thanks, good

with Given the I'll the begin previous performance, company's discussion of revenue margins.

favorable XX.X%, year-over-year totaled partially driven point pricing. The period. adjusted incremental XX-basis decrease by the quarter, the gross prior by versus For expected year decrease the inflation, was margin offset an

quarter. As improvement note, raw sea to expected, and availability in third yet have an maintain its traction material we have component our strategy normalize. seen the continued although pricing to Of through freight,

year-over-year partially Net point in as deleverage margin, for was the such in margin quarter. The the our decline inflation expense operating from drivers, gross planned growth XX.X% revenue investment was by quarter, partially $X.X expense the wages third outstanding. net year-over-year, base million an offset interest $XX.X $XX.X offset period. our interest expense The Adjusted debt in and disciplined lower million increase lower in XXX-basis third management reflects of the the in nonrevenue-generating business totaled by year-over-year year base in rates expense from result of average our the across expense. year, higher in interest reduction the prior increase expense million a versus prior

XXXX enhancements law our tax the arising XX.X% new for period. rate of bottom share adjusted global tax tax third line, was in in of decrease expense was tax of to year rate quarter capitalization primarily the X.X% adjusted The to adjusted the of tax requiring X.X% the $X.XX, Our of efficiencies structure, compared third decrease At in the quarter prior due our expenses. U.S. further is from year-over-year versus year. the earnings partially offset a per provision R&D certain by prior

to of higher Turning $XXX.X decrease compared million payments, was levels to from and results, the driven to and elevated by inventory an primarily in $XXX.X highlights. operations flow higher prior volatility. in unfavorable tax Cash sheet period. flow lower in maintain global changes select capital, during months due benefit-related purchases year payroll and period for X to increase cash The a the service customer supply-chain operating high was million payments balance working

Moving to sheet. balance the

payments a At senior healthy. third credit million was million the $XXX.X X.Xx end which total leverage for as rate remains compared $XXX.X debt net of the of remains our of in covenant. is financial million Reduction due forma to facility. debt year-end Bariatrics, quarter, the outstanding well net was our end of to below position XX% the XXXX. Standard end At third on On basis, and balance approximately quarter quarter, is including hand the pro cash Our of our on as accounted at our X.Xx cash floating X.Xx. $XXX leverage

turning Now our update. guidance XXXX to

We guidance XXXX day, midpoint the constant considering impact of When the growth shipping for over revenue constant Respiratory our our for of one projection normalizing divestiture growth to are underlying revenue X.XX%. the the of and excluding maintaining XXXX the currency X.XX% X% the business currency remains growth when life year-over-year guidance.

dollar of a reported the foreign our versus positive approximately The number million a approximately X% $X.XXX revised This $XXX to of outlook revenue currencies negative we dollar to prior that exchange. are has billion as the to guidance. to headwind X.XX% in growth as range foreign a to year-over-year revenue $XXX billion. XXXX, exchange, in previously. to our Considering reducing now foreign across X.X% guidance. now expect compared headwind compared prior X.XX% implying impact $X.XXX million in Turning to of approximately to reported further be We strengthened an broad XXXX expected the of revenue equates exchange will for

to the comments regarding revenue XXXX. additional for outlook Moving

Bariatrics revenue the to from million $X in $X Standard be of million quarter. in expect range fourth to We the incremental

the roughly million For XXXX assuming now of UroLift, million. guidance we revenue are be prior that $XXX will $XXX versus

had the Our UroLift in improving during a quarter second in half an fourth increase prior sequential guidance further for assumed a of sequential the increase and revenue quarter. XXXX the environment third with

revised the in underlying our headwinds, remainder of persistence improvement environment guidance the year. current the environment procedure for Given assumes the no of

the the to of statement. Turning middle income

We impact be margin outlook expect XX.X% to lower from previously. for to for gross The XX.XX% unfavorable slightly reflects versus margin to the XX% gross mix. XX.XX% XXXX

basis represents impact points. inflationary guidance which headwind pressure margin year-over-year approximately to reflect continues of incremental Our a the of gross XXX range

confident basis goods remain least year our XX our achieve points experiencing price in Importantly, the ability this which helps we in year. partially to of offset the are we at inflationary for that in line cost pressures

a of continue continue and assess arise. to As to our will matter opportunities pricing as we course, global adjustments make we'll

margin now XX.XX% XX.XX% to we to margin, of to within operating range operating previously. versus a XX% to Relative expect XX.X% fall

guidance, the gross was the margin Our operating by in offset which and in the partially from prior not operating expense the third expense quarter. Bariatrics contemplated impact guidance reflects incremental better-than-expected of Standard

items the line. to Turning below

for rate XX% to $XX net XXXX expect as the interest of now expect to We an with adjusted $XX million to outlook The associated debt interest for XXXX. increase We majority continue acquisition reflects approximately range Standard expense the tax in million to Bariatrics. XX.X% compared in net our previously. expense of the

from to earnings the dilution Standard our for by are foreign to and Under $XX.XX adjusted high we mix. $XX.XX in reducing from the guidance Bariatrics share per end to revised impact compared XXXX at revised QX, reflects guidance per the decline a the to share to $XX decline at amounts X% The low the the the offset performance to Moving $XX.XX earnings; impact earnings to X% from previously. margin earnings a $XX.XX and year-over-year exchange guidance, in of $XX.XX acquisition, reduction adjusted end.

acquisition for divestiture Normalizing from ability drivers growth single-digit XXXX year-over-year exchange, and grow challenges. the dilution high earnings in in diverse the period Standard at benefits our a foreign implies in Bariatrics adjusted to growth guidance significant the macro of of Respiratory of midpoint share range and reflects per and the underlying earnings inflation, the incremental

to now closing remarks. I to prepared commentary. back it would like turn my Liam concludes That for

Liam Kelly

three outlook. key Thanks, Tom. our takeaways In closing, and I will third from quarter highlight our the XXXX

and quarter through the durable third revenues. drivers our stability reflect of of results portfolio the our of the combination diversification Teleflex First, core growth

on the focus drivers in investment future our growth for business. to costs continue overall will we Importantly, while managing

growth quarter, Second, acquisition Bariatrics our powered SGS Standard the drivers augmented Titan with the the of we in stapler.

we Teleflex constant long-term acquisition Standard this into innovative to Accordingly, effectively as margin expand the integrate revenue technology. the growth expect enhance our accretion stapling business and currency expect of Bariatrics growth. time we the Surgical Standard over reach We and Bariatrics

continue long-term Third, against we growth execute to strategy. our

dependable will portfolio. to invest and in We durable in continue incrementally portfolio high-growth our core expansion drive our

We margins. drive solid place priorities, have And further providing flexibility in our expansion M&A. to allocation in our for of including financial ample a position with pro levers X.Xx, in sheet leverage forma is capital our balance

That concludes my prepared remarks.

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

Operator

your comes [Operator Stanley. Morgan Cecilia Furlong first line with you. question open. Our Cecilia, is Instructions] Thank from

Cecilia Furlong

about patient where versus to then and also care questions. UroLift commentary in I that's thank on the wanted just terms for site about just you of and your talk role on Can DTC Liam, talked of the the morning And you just Good talked taking start flow really you're DTC, seeing How trended pre-COVID you going training. inpatient. about thinking forward? times? surgeon offices how about versus of you that you're

Liam Kelly

for you patient regard flow. flow the thank pre-COVID question. Cecilia, Hi, to post-COVID patient With and

XX%. flow that So we know in digits QX, approximately that below It patient in high we QX were XXXX, levels. pre-COVID was down down single and in know patient was visits also

significant a So those in and seeing you flow together patient add drop we're pre-COVID.

impact The is shortages. other obviously staffing

that, in the service. Now also our hospital levels see in UroLift side in staffing and within a did of portfolio business modest the rest of the we improvement included in

was that if quarter. continues continue to And be -- that will So somewhat that during the encouraging encouraging.

way With We're UroLift. regard continues to targets DTC, of patients we're the actually that the regard value. add TV our to urologists. ahead our that transferring about believe learn to first DTC we dominates men with to

it we continue. awareness definitely our continues So to for to a rise. UroLift is And want medium brand

that's brand and awareness and comparing that ahead well it the TURP it I'm to as comes TURP standard gold why to XX%, regard in seen at now is it So TURP. is of when

believe will we We We the does when the that So staffing positioned will to that that flow We DTC. encouraged we're recover. our well is results believe take market do improve. it eventually do happen, very improve. from of levels will And it. the that And expectation do continue we're advantage patient to that. believe by have

Cecilia Furlong

talk macro on outlook then And to contribution, the this comments thank 'XX, your for follow Analyst if at the you you. questions. beyond just current I And up, the laid your with you Great, seeing thank well, what think environment as earlier year? Japan initial you that you confidence, And date, could XQ? growth Day as the just just you're there. especially either your Can the to XX% launch taking through for given out

Liam Kelly

No, absolutely.

So in we're encouraged by Japan. what's happening

geography. to a with a urologists. will in for be And asking -- and for regards to the I LRP know, there the which in The market cases recover. was specifically the doesn't is, that And us. UroLift solid QX quarter, see China another you you're of LRP, we the UroLift a As in our begin I UroLift, to do opportunity with adoption very the within And X-year LRP met CAGR again, over number continues obviously, Obviously, our actually need good for do XX% to was this presume of think horizon. we months. X-and-a-bit I first

jump XXXX then off in jump It XXXX year. the then XXXX and was using and as first is to off as beginning a

that recovering. said we are need need Now when And to begin levels do as to do see We does see I we to back. do see need improve. the already, come we to markets prepared flows happen. patient end And that staffing

patients Our with The force continued. compelling. data that as we improve the DTC would still million level does There's environment the of for is BPH. patient continues fully staffed. States cancellations that that The United And massive. heightened that is did, expect has getting is a from we And procedures. survey in improve, also. XX still tell we suffer sales BPH men our market clinical are us to to The

Operator

from Thank Bedford you. of And Jayson next James. Raymond our comes question

open. is line Your

Jayson Bedford

the Tom or for group. Maybe morning. Good

about revenue in thoughts business. your specifically thinking bit LRP has pace Just on this in goals. environment, if the a margin your this of little Wondering slowed has the impacted expansion,

Thomas Powell

to margin we continue top leverage P&L. I say for moving. that us line that drive expansion, revenue you to see the Well, want do slows, will as And lose in to

the of for months. impacts have to the grow how a but restructuring you top our We'll start the line. remain I just key than higher of in Liam still touched have has place. And We is good been business, inflation expansion drag growth another as about are as on, margin to got in high-growth that think expectation our programs which, as know, certainly with us see do margin. look you think the LRP to continue portfolio well. doesn't if and has But couple tenets average

UroLift over growing America North horizon. achievement solid as that longer-term margin getting and a assure the So back in Liam will help pace mentioned, certainly at us

Liam Kelly

just of the Jayson, you year, are line take the got in the that have current for will would you that guidance we And laid you through that's I Obviously, which divestiture excess in you operating normalize But as our restructuring our it XX gross Respiratory add, of you And through through days has the that do we that that in to correct margin also will know. excess slowed. will with really pricing an we midpoint revenue in the benefit tell UroLift of remainder feel points out. the the for underlying margins. the of X%. us. will of the if that decline the programs environment growth $XX with we dropping the is help in discipline, And actually million revenue. and have basis well deliver good the LRP another And improvement we And even

happen inflationary see environment, this moving year. timeframe. we're and leverage in pieces we'll the we environment an will what and with lose potentially LRP improving will of lots an some So over But

Jayson Bedford

dollar a you quick attribute dynamic? And mentioned you as to Okay. follow-up. there Liam, amount backlog could an Is that quarter. just during this a elevated the

Liam Kelly

impacted. the but a were in want amount the Access too the most was it's to obviously, specifics the the Those of So two Interventional and clearly of get dollars many that business. millions into dollar business Access I Vascular were -- and it impacting in really don't

one Bariatrics. the the We quarter at providers being normalize a in the extrusion have in to causing it's would expect company part to guidance, our constant of businesses, we're other some We Standard of and currency of difficulties able fourth moment third-party that maintain us and reason addition that's and third-party in Tyvek the that those both being this time.

Operator

from Shagun RBC. have Thank you. Please when We Singh go ahead now ready. you’re

Shagun Singh

so hear okay? you Can much. Thank you me,

Liam Kelly

can you, We hear Shagun.

Shagun Singh

Okay, great.

any surprised if you that specific was for little pace given I the the UroLift. So, once wondering, cancellations suggest a stabilizes. environment just patients that points might share return Liam, will can I'm data of

can 'XX So can what QX in your in us implied And the $XXX just the X% confidence Bariatrics know million now gives the acquisition remind that slow you million achieve your UroLift UroLift basis beyond. X% if about $XX in makes What confident? you and you the the does guidance of beyond? And XXXX of implied to versus LRP Surgical XX% and in you made points. prior confidence adds then XX then you guidance. I that [ph] CAGR

you So that some the about as about should about X% the if questions. thinking talk you overall? think can and you But you're just help offset the M&A of headwind. X% portfolio that to how Thank for taking

Liam Kelly

There's unpack. a to lot Shagun. that Okay. Thanks, in

begin. me let So

time. confident in the that begins I to the on As we CAGR X-and-a-bit I over my the I helps feel to of addition LRP Standard X% and in confidence think X% X% months, earlier, outlined of the X% said Bariatrics period

plan And on that. an easier the a first think Why that comparable probably us million where of for pill the I'm million have that, I longer reminding I the feel lot a confident Because should that encouraged improve again, also there that there's X-year to of is in hospital by There UroLift return? environment year that CAGR. XX% the X.X patients I also we see that in no take starting levels target going are and men improve. our market have patients XX staffing it. And people took BPH, do that will to help what is is out them. the

having are patient is urologists. patients some what from get to actually study see to the -- Some we've learned our making difficulty appointments in

obviously, back. So if come that is from year should also ASC, that math, it input markets the the in impact QX. you're moves deductible happens that of sees over there. just considered international imply office improvement $XX the your in hospital seasonality And that that an the one what would going number QX in to QX the that assist normal we And And UroLift. to in the as for and every is staffing from expand million correct because getting the for to

that million, it will isn't, we've there continued If in recovery. it's an that not So today. happens, as our implied our $XX implied guide help in but given

Operator

Thank you.

comes line of from Jefferies. Your next the Taylor of Matt question

proceed questions. with your You may

Matt Taylor

Hi, you okay? guys. me, good morning, Can hear

Liam Kelly

Good you, hear can We morning. Matt.

Matt Taylor

couple Hi, I’m to questions okay. I'll Great. a men. have [indiscernible]. keep my I questions. of

wanted points. to you of said about basis excess So, going you're in ask well to XX I you the -- be

can can So tracking? year? it more up view also, you Or Is as you you then durable? next us how much you're give onetime? something any is keep sense And better this it for that

Liam Kelly

So that Teleflex company environment. always XX over getting always carve to that the been companies number were were in out even XX nonpricing of basis points. last years, can peer When of pricing pricing I our think we none carve a a or able has out

We're repeat that I we ahead able do will XX do for tracking be excess think that in points of that quarters. year. basis again to this year of I And will least. first next three think Matt, we that, at the

it. are in We're environment. inflationary an living We being by impacted

very that that the thoughtful and our must of fine customers a by customers us us points it. are that are therefore, walk for the a And time, we costing Inflation in We're passed as seeing being Our trying being pass customer. to be we line same our result a basis of on this in way must impacted where maintains we're and customers. margin customers recognizing gross us but from partners relationship that to with that recognition that XXX business inflation. year getting at is in our with what's on way to there a some

Matt Taylor

then it And for high-growth I I like forward? it And expect is versus quarter-by-quarter is disclosures back And high-growth year-to-date, do else some digits looks Or going fluctuations UroLift. want QX. And double the excess low there what XX% like just then the the that And comps? are QX on correct? about -- on there? to you XX% QX, something going you. in portfolio I portfolio Got the went math. Okay. you low did check digits ex like the of think in looks then in double

Liam Kelly

quarter-by-quarter we of we've with outlined quarter clearance is it you cleared in The and QX, transcript issues really flushes in had backorders. go that a had the back isn't -- some through No, through backorder that's to as the Tyvek honestly, of what businesses, comps. one some few our quarter-by-quarter, if we some Matt,

the it's of backorders not particularly supply-chain constraints. these some as the we timing really comps. So overcome It's of of some clearing

remainder in at first year. UroLift correct do for staying ex you're it XX% for we the of quarters. that And that the your anticipate just in the And we running is obviously, math three over expect region that

Bariatrics UroLift high our their is be entire models, in performing recovers, forward. Standard for expectations. And with So ex well that included line high-growth bucket obviously, moving improve. working in will individuals growth once UroLift should And portfolio high-growth the

Operator

the the from question have go Wolfe line now of ready. on next Mike you’re We Polark ahead when Research. Please

Mike Polark

ramping was this from XQ Good I and asked just one morning. question. contribute How have of one Standard versus On into of the my Thank lift OUS that you more XQ? to is UroLift, U.S. much frame core you stuff kind what embedded meaningfully? the to Can I view and then know but up? $X starting XQ kind sequential the million UroLift the on for step taking OUS as differently business on Bariatrics. of of do efforts you some the

Liam Kelly

Yes.

in U.S. it, And been has that pickup X/X that. on Japan on in U.S. the a what Obviously, has So seasonality as and on to is done particular, X% business call that the size you see then $X And it's it $XX within of U.S. in that, deductible advised investors, million and the with of year, of U.S. ramping the OUS, based then size steadily. just and one, million phenomenon ramp expected goes $XX XX% first we the normally, the at X/X million so forth. and we to and of the the so in

is And of So very that if that, quarter. in China the within a metric Japan. good you continue would in fourth be contribution and take the modest all X/X we for transparency --

much So I building for wouldn't that. advise in

out but than to impact. within are in of XXXX We a would a we more and to XXXX of ramp do the people cases. in encouraged will It's get China difficult and be ramp XXXX country --

Mike Polark

$XX structured its and year a to full you've Bariatrics, million Standard first year, $XX product $XX guiding, market this million a on earnout. the then I for believe, you're in million And year, a ramp. Helpful. sizable healthy It's in sizable next very

So How of time is what the if is implied? And rate upside run framed that does they here? sellers that what's I'm and horizon, of up? curious, the dream kind the much what their earn-out, achieve mean over for revenue

Liam Kelly

the have out I Liam better will way think that because will I would that have Mike, will is one pays mean $XXX that no done be I'd Kelly Teleflex anticipated. the than full the than that happier business million, frame Yes,

and they into at think that be it's revolution. we of that look And this tend gain I unique look evolution when And this share, that at I these to than fits business, rather a lot this technology. technologies really category. a

you gastrectomy And every the higher get it's that procedure, adopted conduct there. It right out the the pressure up It's sleeve rapidly you all leaks, being it. market all, complete surgeons day. less when into pretty speeds burst in

the that already that's we the of and your sleeves us a number technology the someone for And moving a delighted. But $XXX the a have high-volume would way We forward. to by user question, encouraged very doing if high-volume pay users have XX million, we're out be will be Teleflex it's month. adopted

Operator

Bijou Thank Merrill is Please Craig you. of Bank now have your America ahead, Lynch. line We of open. go

Craig Bijou

for Good questions. Thanks guys. morning, taking my

that so down visits Liam you -- And to UroLift. doc made, believe specifically year-over-year ask comments you on the wanted on all were appreciate I QX. said couple a I I but XX% in Just

were, But flat Now for down sales high sequentially. just digits call guys let's you single it, QX. they're in

QX is there embedded of QX? those then, may them And the staffing that as in that hospitals. did in But at from dynamic. QX worse? to get the Or wanted QX? to getting did kind I you it procedure look was we I And numbers mentioned So in office that to to a improve staffing better from sequentially know factor timing be setting from visit reconcile

Liam Kelly

a last of answer I'll bit Yes, definitely the lag. it first, Craig. Yes, there's

see takes weeks in, slated region it to to do score. work got They've They've they've got to a to the their X come cystoscope. through do in got for of IPSS procedure. And the do. then and a a So get a the funnel procedure urologist. that of you somewhere for X to that got They've have acute. to in in category of But more staffing survey the with were we are urologists did general, of staffing We shortages August. in service, urologists of side XX% know if urologists with our XX% at suffering staffing look that, And of their shortages. them office shortages. they said are suffering patient the

think I as the staffing an the From level, in office was that in So side see hospital was -- improvement. the no significant QX, service. did a improvement I of it

say, that of Craig, and ASC does hospital office capacity for though, -- will to side I up as the improve, service the approve. frees improve

would in also other a lag the ago. much to anticipate because labor, will couple of hospital is as flowing I there be aren't the So for of quarters a improvement were the they two contract sites as down service paying

positioned earlier, other well that into but up all of is lag. And take labor advantage does So there will to will of be Teleflex a some service I happen, of help the it. said when sites free these as actually dynamics definitely

Craig Bijou

for overall July the for Thanks then Liam. business that guys and And you in But August. was than Okay. mentioned granular here. getting stronger color, apologize September

to wanted for the on within but monthly quarter trends color was I maybe June know specifically UroLift. UroLift So a tough ask any UroLift on sales? month for the

Liam Kelly

Yes, sure.

by and to day going August September also we expected, rate uptick impacted in in happen. was did So an expected. the that vacation we as as see knew season But the was was

staffing -- we as and the levels. said, I improvement So in saw

coming guidance the and day QX. the So what the by season uptick in is our holiday that's encouraged for out September of we're our in rate basis for

Craig Bijou

taking my for questions, thanks guys. Okay,

Liam Kelly

Sure.

Operator

ready, Please Piper when Matthew have O'Brien ahead now you’re Matthew. Sandler. We go of

Unidentified Analyst

is Hi, you good taking Phil hear Thanks for Matt. on guys all me my Can morning. right? This for questions.

Liam Kelly

We can you. you, hear Phil. Thank

Unidentified Analyst

then again. on here? of understand you through into of expect as the continue visit recovery bit in patients a step to little slower ramp I you Just timeline more strength once they that a touch trainings the and UroLift return return? And fourth more of the terms do quarter is I Or XXXX mean, to air of a a be function up will it but in do slowly? expect bit do visits additionally,

Liam Kelly

the regard the with was So our in line training, with training -- QX expectations. in was right to

So the in train that docs given we to would traditional we're ramping any XXX-ish year.

that We're interested for that take us adopter procedure. procedure. follower the They us quite And So encouraging encouraging. that. in it early is moving want the that we're on because is track the lets from still to for are know docs and the fast to

for to XX, year gone this We've me, Phil, a get minus regards with digits. milestone to minus With first the to visits, is high through minus XX, year-over-year. visit flat single

cadence to is have of the the that we even before we're get flat pre-COVID. So And when flat get increase. XXXX first we still normal below year-over-year,

flow once to So to should And to there the ways are lag visits. see And momentum patient be there a is a go urologists. come correct. their Once patient should patients back, build then begin back, thereafter. the starts you in visiting you are

Unidentified Analyst

just broadly need acquisition. ratios? your current -- would just that color. exist asset? if are pieces its I state? Standard congratulations Or more that if what given on you it's was valuations And to for thanks the and own -- Bariatrics additional that I any pullback shifting thoughts in can guess I Great gears, and it wondering you on guess in broadly M&A, believe leverage And your surround

Liam Kelly

Yes.

a first, and lap, closure acquisition EFx We system. We obviously, great sell our Bariatrics mini in we point our -- We sell Standard our ligation us. surgical the sell Weck So a the have it's bariatric significant already the cold percutaneous call with products. for surgeon.

are Titan an the double SGS opportunity around point call call the point that this have And that and is it. already Standard our that for the to Bariatrics salespeople we in well. of sales selling force us So number as as double

levered. at we're M&A, pro X.Xx forma, Regarding

So we're shape. pretty good in

sheet do out active on analysis of marketplace the taking for holder question, X, it acquisition a our than ran share a from actually, is preferable. buyback, might internally sure, the And horizon, long-term The short-term because stock where Teleflex do is X-year if buyback given Bariatrics a to buyback staff better Teleflex, there holder be are the We if your over it's some team today. should price do you're at? with using their X, year a you're in a rather return first the X, where on M&A, the But assets. Standard X, your stock looking you I'm even balance for in significantly stock

run we've analysis. So that

we going reach Teleflex's give mantra can feel into the into to confident We M&A to would attractive better shareholders to we're our new forward and in execute towards. what and continuing be aligned going continue return expand by that company, procedures bring that's a and

Operator

you. Thank

go ready. next Biegelsen comes Wells you’re Please when ahead Lawrence question from Your Fargo. of

Unidentified Analyst

Vick in morning. This for is Larry. good Hi,

don't share that any for Just provide you're not from but asking Thanks. you'll P&L And with guidance the thoughts you at to for why any items you framework like have XXXX, through specific a us Can or us. FX inflation of of can follow-up. a X%? your And a X% then you think couple reason running be a preliminary aware sort on? now I

Liam Kelly

one year. to -- that's We particular, is the know to rate. euro in euro P&L and we of QX the we regard was up that with the We that year. next set brought our realigned call plan exposure. be we impact. parity the an that reasons remainder down updated the is through in So to And dollar brought on FX we've for $XX million moving the other to now, currencies our because the flow what had going year. biggest Obviously, and this for of which to the going And for that

stays That for XXX to at approximately the be an parity, And or going year obvious would to give you of it for year. headwind the an euro. next if parity that's the below average

the but the LRP XXXX we'll the heightened that your a on our February. inflation get in Bariatrics still to X% overall the me confidence year, when gives we on we when Standard of incremental And future. to we'll for February, first first get in over And into horizon. inflation X%. built I as more seeing confident to question, X% the to the had very year of are earlier, just But LRP LRP give to get guidance We said the I'm addition even that little we X%

Unidentified Analyst

penetration MANTA thinking how And you you and next a Great. of Thanks year? about quarter? are the just the so much. And talk Can in this year potentially, rest follow-up. about

Liam Kelly

Yes.

with procedures XX% MANTA, the there XX% to is focus to procedures, and continues So where about our are a TAVR us. really of the penetration be for into done that

was one a we call of clinical spoke excited one we've As the it because quick into even excellent done Karolinska head basically and got I next in year, the shows, the curve really complication right adoption line on for top in SAFE about, we being study is that better, we're rate what did, the with study. really Karolinska is And about our MANTA. original the the study that

So that's really encouraging.

Now and use surgeons easier should level have very regard $XXX to ramp. product it the It's million $XXX market we the those a to adoption the for Doppler the use early to ultrasound position on obviously another MANTA we of the the and of even with in penetration, positioning continue we're trial million to going product. to With continuing make see which going help penetration to to curve. that that's

continue over that won't why a multiyear period. So reason we no see

Operator

Thank have now Mizuho. Anthony you. We of Petrone

now line Your open. is

Anthony Petrone

everyone hope and name. Thanks And will doing the well. hearing be after

UroLift. you it early Thanks. proceed? contribution Is cadence follow-up. I'll expect So from your cadence China, doing China in maybe, thoughts markets. have a do those Japan just of markets? and a in You're you same XXX in those maybe bit the physician one And And on little quarter actually on the XXXX Liam, really on in just U.S.? to Japan think urologist about and training How training, when the that about

Liam Kelly

back. Yes, on Good to story. the you have back Anthony, welcome

in we'll be to Japan, In we're a United just in So clear, early quarter. around than rather the the XXX States the do year very cycle.

So major them. areas. metropolitan in being one Tokyo a we're few Obviously, really of

size ramp in confident I for reps at U.S. the as sales to quarter of XXXX. additional really feel market. some we added continue X/X have of the the again, on And this prepare We

of Japan. $XX be So should expect region about in next X/X it should from of year, the we something million, what

private we'll major the the case start in China, again, quarter. we're our in centers. hospital first we'll do metropolitan And this starting Obviously, sector.

on. we out many in and key But in number the have identified color We trainings Beijing too China leaders QX. I docs said, on we as then Excited bring training opinion a about that. like that would place and initial we'll the will of and give beyond during both. can much take expand -- China get will how more will to I Shanghai, we in before start Guangzhou done

large the that I reimbursement. can They're really think -- got those are good UroLift. They've the for enough. move Japan has markets needle

We build do private us traction put regional to in few in and that. will take on tenders that China, the we years get a the reimbursement some markets to it once and will

Anthony Petrone

then And Tom. Great. the maybe follow-up for

I year, year. there should that about Just we about into next be dollar that will was previously, when think number thinking a for think roll next inflation we

Some given dollar companies have that amount.

how programs again. next on Thanks some So just provide wondering on and rolls we updated view can you the if offsets? there's offsets, year? inflation in, color about an And when restructuring potential if think

Thomas Powell

as remarks, mentioned us. our prepared we Well, in inflation exist Sure. continues for to

the had all of year. some this and about components sea we along As think freight expected actually in it, improvement that seeing we we're

continue And be so of to freight rates. however, elevated at Materials, the going quarter-over-quarter. we're down seeing costs

haven't We stabilize that to seen or level. yet return normalized quite a

this typical. of And to it numbers. that year, expect would say always we had level I have in continue inflation than higher historically, we've So to our a will inflation. was

our of that We now, year. give to inventory guidance for specific sheet. into next as rolling a pressures next But we're how right some and not how in rolls will just position have inflationary a we year the balance result off capitalize for

couple expansion next a point the couple expect to from with margin full years, year. And realize we restructuring over look years. provide about Restructuring next that getting offsets. to offset said, with of also benefit were will year are pressures. year being currently successful we of very programs in talked this next of Now out of there the in We in some that the we inflation a announced point there help as X.X -- out next about just number which to are are pricing pricing a

is business, faster benefit we from benefit and mix a seeing pricing. through have nice margin. a nice carry a a in still from there at come So portfolio, restructuring, that from our our grow They rate Underlying mentioned. higher we're high-growth as

to and that number continues to and the continue LRP. on to to So line. unit we more as that's business of And an underlying the see more benefit contribution years as see for that margin UroLift we'll expect well see the over mix expect from recover,

on get give we'll we to inflation as numbers XXXX. the specific again, So guidance for

Operator

Thank you.

Newitter next Our question Please comes Truist. from ahead. Richard go of

Richard Newitter

to Hi, thanks UroLift I there on important just of for on already taking focus but a here, sorry harp two I for actually know it's the investors. left. questions. it's lot Maybe our think so your --

to the off the U.S. of a CAGR, lower that starting point. level don't double-digit to in if it's you need the the follow-up. you rely over do is curious, that us you lower there? And that to XX%, the to other get to Or room there? starting be off one In enough growth to even a portion back get of of mentioned You've give words, contention CAGR potentially have just granted I can it that to needs U.S. is of minimum I'm point, what need international sense on then there order grow? the in

Liam Kelly

greater because than Well, in base, a the U.S. the percentage is such Rich, be international lower going growth to significantly international clearly has

CAGR, in an with XX% BPH tell I that growth regard. million organization. logic, within by lower that definition, number will XX be that BPH the the there, that to the United that is get U.S. that believe than U.S., So the is you still that going have to think as to I that by men are category, in with out a reach States the our just you the still XX% and X.X within are well dropout the drug in and of

the call, well did doing a And more then interest. live have one. a them got going our year to times BPH we'll quarter we're Japan us inflection a going. just a get And number as We fully one a we're DTC positioned. few force sales for have I've and We Summit. We are next the to of again. said staffed. got in nice in back fourth in That's We normally

grow me the that at So normal, for more regard, in regarding CAGR your answer U.S., to And seem access. question, have towards the to to like to XX%. XX% things at be least for so doesn't getting sure,

Richard Newitter

understanding that. have staffing more question, was I to tend issues answer can on to was, was, UroLift for I Yes. digits, I the me to just days. procedures on setting. want double I second you schedule their get asking back make in the Okay. because to or one understand My But the doctors if sure just two office UroLift operating too,

sense setting talking I'm more the scheduling can't levels a many of week Or where their to that higher to coming Thanks. the just from office get just accounts for back? multiple volumes am management it Is the about they doing what mix So operations? and should a -- are UroLift’s, the get how missing because patient days that if standpoint? exactly easier they're trying per demand the of more -- you're back be might doing maybe so meet be volume UroLift's I

Liam Kelly

missing, that's because the why from easier procedure of happens that everything is before urologists control do and there you're It's Rich. right, scheduling think, to the a scheduled. what analysis, I gets Rich, But it. like your appointment in you're Yes, in they're

see that's have they them bladder the an all will in, out And They of determine to diagnostics in has additional So patient. along come urologists. score on may labor. it's causing the the about they definitely to patient the way procedure do has fill their some the as cystoscope, IPSS the card. order what what's the flow They of do health itself, to to that to then the requires work endpoint It's about way the impact. to of step to happens patient procedure labor. get and the just Every requires through not

they I one staffing them I had every urologists staffing in clearly visiting charges. office-based one And in every was over survey XX% of ago, about month said, just mentioned our south urologists, of -- of a just them. with As down identified, shortages,

Operator

you. Thank

next Michael Company. question comes Your & from of Needham Matson

line Your open. is

Michael Matson

you two go and give I'll questions. to Yes, thanks. I guess now. both just have I

headcount regard is with Bariatrics, second first, is this changes, been disruption, mean, sales with any And added you question -- So the this in force, the I force? that UroLift, just Standard understand a range sales on there then kind of to has turnover to products Have stapling technology gastrectomy the would that offer like opportunity on you over totally I of of sleeve full that platform this the and market but to enter enable duopoly bariatrics a market? is time sort year?

Liam Kelly

I market that continue Well, think to that more fast-growing society we as we to point. it's stuff. continue of have call to grow of eat series market. already that's products a as a within Obviously, wrong a going It's the a

of facial our technologies as in and mini as force in continue bariatric So our to penetration this. for us and deeper clips our area We has opportunity there -- cold earlier, be got got an for of the always market this there our closure ligation interest that there. got that we may that to we've we do in aligned we we I within as are see into sales some there. us said is go It is interest Teleflex lab an been,

companies, all Right heightened experienced sales device force XXXX a Regarding the area. in turnover, now, in the very medical we in and turnover stable like border across in we UroLift. UroLift Teleflex right have

four when for think We the open be here really business poised I now And the as the confident to I feel that we today, ready well we're or territories within think, -- have, we sit units. about have recovers. I right market for five

Michael Matson

thanks. Okay,

bariatrics, was market? outside the Just at what broader used can would staples stapling I like offering of of be at staple that look the kind you getting surgical question, on I guess is,

Liam Kelly

question. I missed Mike, the sorry, I'm

Michael Matson

Yes, no problem.

Liam Kelly

skin surgical already they're are cold portfolio general and We Hemo-lok, our ligation staplers. And our in sell Horizon our but obviously, staples both, clips. metal

it's So speeds really and broad better the and outcome outcome is to so the the try this the in docs. the went big more up ourselves It procedure. guys a patient don't for reason gives It take for stapling, up see one going differentiated. a against on, because Mike. into better It's them -- gives we

So stapling. we this area reason of is probably into this the went

Operator

Thank you.

You have questions. no further

it So I final Keusch would to hand for like remarks. some back Lawrence to

Lawrence Keusch

quarter call earnings that everyone us conference and on joined to Abrika you, thank This the today. Inc. Thank you Teleflex third concludes the call. XXXX

Operator

joining. joining your Thank participation. This call. thank Thank does conclude you for for today's you you and for

You may now disconnect your lines.

Teleflex (TFX) 27 Oct 222022 Q3 Earnings call transcript