Earnings call transcript Q2 2023

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

Operator

Good morning, ladies and gentlemen, and welcome to the Teleflex's Second Quarter 2023 Earnings Conference Call. [Operator Instructions].

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 second quarter 2023 earnings conference call. slides at this teleflex.com. and on are release website our press to call accompany available The own, with Please the through the their ability that the to follow note webcast advance presentation viewers call. slides we presentation as the will have simply proceed along on

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

Teleflex you in regarding matters Before Investor some in that in and we as that or wish begin, this the the call statements and uncertainties, forward-looking may of slides discussed to I'd actual of in We future subject risks contain you events are materially. the Relations differ forward-looking and will fact, outlined results remind to caution website. to section to are, events conference statements such nature the posted like

actual XX-K, but which events today can be factors Form results could differ on materially as to our website. include, well as The that in our factors SEC, the are our including cause to, limited release not or referenced press filings our with accessed

his to over for call remarks. the turn Liam will I Now

Liam Kelly

our of Thank Life this to call, the financial morning's everyone. our XXXX second discuss you, speak with XXXX. pending is for Palette and Larry, we good today. acquisition On and morning, results, you It Sciences guidance pleasure will a quarter

X.X% year-over-year reported revenues million, a on and basis. increase currency on a quarter, were second an Teleflex increase the X.X% to of a Turning constant basis $XXX.X of

of demonstrate per the with care earnings continue a the and geographic a X.X% adjusted to stabilizations $X.XX, second performance quarter trends we'll markets. broad in share in in XXXX. acute From our setting Teleflex's year-over-year. portfolio the to the We footprint. perspective, The stable inflation, balanced respect continues monitor macro and diversified saw sequential during was utilization to benefits quarter of global increase half we Second see material product to continue

remained second quarter, although levels. Our in yet still stable at chain not supply are the we normal

we expected, the This growth side hospital easing. As revenue our that of evident that persistent as quarter are office still a service, pockets geographic continued seeing more most exposed are products ASC Teleflex witnessed hospital and stabilization are the staffing. in are second to Conversely, encountering in but disruption was note we experiencing staffing some setting. in bottlenecks

referred basis quarter a Now are unless deeper revenues Americas year-over-year. saw dive constant results. our were In otherwise are to that in EMEA second our year-over-year. quarter. $XXX.X X.X% currency $XXX.X review begin a businesses. geographic which Vascular, All particular, our we revenues second growth let's with strong and Surgical revenue million, noted. Interventional increased growth represents million of X% performances rates segment revenues will into a the for turn I on of to

the saw we quarter, businesses. drainage our urology in During strength and vascular

$XX.X million, Asia. increasing to were year-over-year. Turning Revenues XX.X%

a Urology second in in Interventional the XX% product region. China. of From demand we in growth in across we excess perspectives, and Interventional During the Access region, saw including quarter, saw a double-digit stable the strong growth

Arrow Rhythm X.X% PICC and a have We next-generation NaviCurve to generated positive categories. Access. during the growth second the increased with our on be currency category Vascular on global discussion our Commentary quarter global for product will the Let's well activities Starting second now with VPS response. device move customer DLX new $XXX.X quarter. pre-loaded executed Stylet product a basis. on Revenue second also quarter the million. revenues by launch for constant Initial navigation to a Arrow

PICC the for term, with we new introductions. midlines, positioned novel Venous anticipated share long coated Central leadership gains and Catheters our and growth Over category with portfolio dependable in remain product

Moving the quarter, benefit and on diversified right growth we to our to year-over-year. from and rates. Interventional strong Access. access MANTA for at and Revenue in pumps, remained Procedure all stable million, portfolio. Balloon continue XXXX. up trajectory was double-digit grew heart in $XXX.X X.X% catheters a closure continues volumes double-digit

In $XXX.X orders year-over-year tough year-over-year. to timing in Turning period military the impacted million, A business, Anesthesia. was was prior revenue $XXX of due to results. Revenue X.X% our comp Surgical year the on million, we accelerating. up integration gastrorectomy SGS quarter, of Bariatrics of use is Stapler year-over-year. of Titan in advanced our sleeve X.X% the surgeons In Standard procedures training new the and down

was revenue with we the progress UroLift remains The of but million, for a witnessed setting, in launch year-over-year Urology, year-over-year. office Interventional representing again, expectations Japan activities growth service hospital challenging. of our to the side with with expectations. in X.X% decrease in usage overseas For line continue growing line $XX.X Once UroLift

portfolio, The our across the growth strength micro quarter all the including million. our $XX.X categories, to was year-over-year XX.X% in increased in revenues with product of catheters. double-digit OEM broad-based

business continue solid have throughout XXXX. good visibility demand into dynamics see We and to the

other year-over-year. and quarter revenue increased Second X.X% to million $XX

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

radiation acquire closing certain XX, million Life conditions July cash commercial an Stabilized of payment additional include and Hyaluronic a improve spacer Teleflex Urology at disorders, to patient Turning will NASHA $XX oncology outcomes acquisition up a of bulking fast-growing on Palette products urology, announced to for procedures. and milestones. The tissue Non-Animal that commercial in Interventional portfolio or we colorectal definitive upfront Acid and expand held Sciences urogynecology to million the to privately some updates. an achievement $XXX of On agreement

in to sales approximately coming stand-alone year range on will year-over-year to growth of $XX million in the a high-teens with contribute is Palette fiscal generate low-XX% We years to Palette basis our XXXX. the believe in estimated net XXXX. growth in revenue meaningfully

the The Palette and our on LRP to flagship ability objectives. cancer to the deliver spacer profile company's tumor The during quality for majority a a to the of XXXX rectum and is value further Barrigel for us the revenue. in delivered XXXX strong growth confidence life. growth product compelling in spacer increasing generates rectal by is with Palette gives prostate our radiation control a driven therapy, patient of proposition, while radiation NASHA reduction Barrigel

Sciences global high-growth includes points. Palette units The into us Sciences the this reflux allow vesicoureteral Solesta, treat Deflux respectively. our are Life Life designed pediatric addition, portfolio which Interventional high-margin fecal Palette and bulking Urology also incontinence, In call incorporate along our well-established technology will tissue NASHA-based exciting and to with to business agents acquisition of and

and patient care. can impact are specialists urologists on We bringing that other focused innovative more technologies positively

X of for is Palette primary reasons. attractive acquisition The

our of differentiated radiation in First, Interventional In uses strong doses a May spacer a XXXX a therapy, complementary following the rectal and profile Barrigel with years, recent growth treatment product business. utilized higher is prostate fewer which to FDA highly of treatments. of hypofractionated radiation cancer increasingly Urology existing clearance in has represents

grown of tissue In rectal launch sculpted adoption, way from order protect radiation associated allows radiation predictable Barrigel tissue rectal harmful comprehensive the protection The technologies, other to product features. prostates grown the to is radiation culpability healthy Unlike spacers easily complications, has by prior protection radiation. and from therapy. reduce to therapy. as healthy unique usage providing when between to rectum, placed physician its Barrigel since a its rectal market temporary due to has of expanding achieve

also highly accurate of is is visible delivery which service. an sites one-step and biodegradable placement offers all aids ultrasound, Barrigel transrectal device the in assembly on of

X% cases a new that is rectal prostate of there there XXX,XXX the States year. spacers. a market in global Second, Society Cancer large will growing with United be incidents estimates and growing for The the American cancer

In demand healthy spacers hypofractionated increasing of for addition, radiation therapy is tissue. use the to driving rectal protect

and for cleared is Marked. was the Australia CE United Barrigel marketing and in States

additional market in We coming clearance geographies gain the expect over to years.

also of that our broad a and cancer. sales of perspective, deployment is prostate of Third, rectal disciplined which our treat leverage Palette presence acquisition performed note, our space established treatment majority complements of the strategy. using capital benign Palette's urologists UroLift the prostate in will addition physicians organization. Of NASHA strategic replacements, of the XX% strong enlargement. reflective the Today, From portfolio

treatment the prostate of cancer is deferrable. addition, In not

we another growth adding our driver So are portfolio. durable to

a spacers transaction UroLift. are the to that acquire rate We to our margins. to strategy interest growth provide From assets view, accretive of opportunities with Teleflex's point in also consistent and rectal financial expect is to cross-sell

Urology adjusted Interventional gross and Palette's will margin average business be accretive the unit. both the to corporate

we expect average margin the addition, corporate enhance In operating term. Palette near to in the

sheet Finally, will on strategy. balance sound, post to close, our our continue to capital us long-term execute remain deployment allowing

customary conditions, quarter Palette welcoming regulatory to look certain is receipts employees expected closing including XXXX. The the is fourth completed be the of to forward in We subject to approvals Teleflex. of to acquisition and

update Titan on the stapler. Turning to an SGS

gastrorectomy power treat procedures for strategy commercial our for on execute to use sleeve the stapling SGS device continue in obesity. Titan We to

for and XX-centimeter for pouch proposition stapler staples common no the stapler. Titan with the creation that remain ideal overlapping continues The enables SGS staplers. Titan confident in Feedback are the we staple and powered positive, traditional remains line value

are over time, that We in able generate to a and meaningful be per time will savings we complications shows that data reduction optimistic procedure.

field, our positive has Titan XXXX, had taken expect Committee anticipated, in our to longer now for Value than the original lower which assumed. continued surgeons. XXXX has we to which Despite the ability guidance feedback we slowed be revenues the what train from clearance for stapler is high-teens than Analysis

VAC approval. and experience from for We have have strategies the early learned our gaining refined

of hold surgeons XXXX are pipeline Moreover, in efforts have with to Our than strong trained a first the versus surgeons number we second of proctored. in Xx queue the be of the quarter taking the year. quarter more of

through the So further we improvement expect year.

in continue our on it We the drugs GLP-Xs on treating our sense quarter. that usage of surgery Based impact checks, some had volumes second in monitor GLP-X obesity. bariatric to the market is

the acutely that on Titan large the in in period. assess the given too we remain excess of contributor very sleeve questions gasterectomy portfolio early We on the safety the is stapler interim, remains focused Titan through our stages impact stapler on market It In of confident the United the to given remain profile. long-term launch. be XXX,XXX to early high-growth procedures reimbursement meaningful that penetrating LRP a the will and market States a

completes That remarks. prepared my

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

Thomas Powell

Thanks, morning. Liam, and good

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

due to margin logistics adjusted due productivity cost period. gross to XX XX%, decrease decrease favorable material by continued basis product unfavorable cost price, was recalls costs year-over-year partially quarter, was lower primarily a from prior on versus supply, impact the and inflation, distribution-related initiatives. year raw point benefits offset and and The the For improvement

employee-related Turning to XX of year-over-year expenses, point investments basis at in decrease There basis and price in is and of points least the the flow-through of was Standard to the XXXX. The the margin our grow was Bariatrics. Adjusted for of XX margin, inclusion year-over-year to business expectation XX.X% operating positive no quarter. price. change increased second gross headcount result

expense Net average an interest reduction in second The totaled $XX.X net partially increase reflects debt year-over-year $XX.X prior expense by year, in offset increase the from rates in the in higher versus interest interest year quarter prior outstanding. million period. a the million

costs the X.X% U.S. law in increase was versus At and capitalization bottom quarter rate The second per year-over-year in share reduction of resulting in of year adjusted prior effect. requiring is the tax tax quarter for from second due adjusted year. adjusted XXXX period. was line, of rate tax $X.XX to earnings prior the the R&D an compared tax a Our our XX% XX.X% primarily to decrease

was operations The balance favorable in for primarily lower tax and highlights. flow million increase from million to Turning compared prior was $XXX.X now select capital. to year changes working the to months period. cash sheet the $XXX.X attributable and X flow in payments Cash

sheet. balance the to Moving

below the our our on Our of XXXX. is to Net business first The $XXX.X at compared to XXXX. approximately to and million financial the strategy. of leverage well X.Xx, offset cash primarily X.Xx our reduction partially generated execute hand the of allocation of remains cash continues was credit on X payments million to balance million $XXX.X At in flow disciplined it as end million which provide second $XXX quarter, quarter end senior was operate due covenant. its position months our by the capital during $XXX.X of facility, as on cash year-end flexibility free

Sciences. financial to Life guidance. the Palette Turning Starting with of acquisition

Life Palette is to sales net of approximately generate million in previously, mentioned As expected XXXX. Sciences $XX

below we acquisition significantly in XXXX, expected will achieve close Assuming Teleflex's X, high-teens, revenue. year-over-year XX% date, impact XXXX not business revenue In the is December XXXX to expect range. the growth the a

expects year the X, expected the adjusted XXXX December earnings thereafter, company's company and be XXXX to accretive per fiscal Assuming per in to in XXXX, respectively. acquisition the and approximately XXXX $X.XX close, diluted transaction adjusted in share increasingly $X.XX and is to Beginning the be share. earnings

forma finance the we long-term credit it's remain hand. the our is borrowings signing in change solid no leverage capital of pro deployment in to financial revolving of acquisition At and facilities a under there on Accordingly X.Xx. to position net plans cash Teleflex transaction, with approximately stated strategy.

to for XXXX. outlook Moving our

performance the operational quarter XXXX our second half outlook, our in we are guidance. financial our revising Given second and

guidance currency Specifically, X.X% we are points of increasing end basis our by X.XX%. the to revenue to XXXX bottom constant XX

foreign now growth Turning impact to to points translation from million of in exchange. positive approximately a or We basis XXXX. foreign $X assume exchange GAAP XX

year full is of over that prior changes second favorable assume point $X a quarter XXXX results XXXX. revenue balance previously or to million which in headwind exchange guidance, half a $XX second The This Note, compares of was rates exchange our XX that impact updated the million the to XXXX. basis what was foreign expected approximately reflect result foreign expected. our for of

Our revised $X.XX now in XXXX including exchange the foreign the second second the captures a in of exchange quarter guidance the rates, current half dollar assumes exchange for foreign rates rate euro of year. actual to and

incremental implying exchange foreign $XX the X.X% end reported we approximate and dollar outlook we under of revolver Below of dollar and acquisition which a and in $XX expense XXXX, are million. revenue XXXX. to $X.XXX changes low revised There margin for $XX Palette. for line, the end an X.XX% million expect reflects billion, $X.XXX expect headwinds, range of our to of net of implying in borrowings net no high interest million our XXXX, in the to of range the increase gross the growth to Considering now the billion operating

adjusted per for We $XX are to guidance of $XX.XX. maintaining XXXX earnings share our

in catheter EPS the acquisition outlook $X.XX with and performance, in including dilution quarter the of operating adjusted quarter the of better-than-expected benefit associated Our include the Palette; the Tubes and offset by updated the expected of higher growth half ET exchange been Endurance second second results foreign favorable of from of and $X.XX balance has during dilution from to second recall $X.XX the the year.

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

Liam Kelly

second highlight I quarter In Tom. XXXX. our takeaways will Thanks, key of closing, X the from

diversified our global First, and quarter. durable drove growth in the portfolio footprint second

strong. remains execution Our

We healthy. are launching products new and remain our margins

deliver financial XXXX. on performance guidance us quarter well Second, the solid positioned keeps second to for our

to half XXXX, As of we look into conditions. the macro second stable we anticipate improving

strategy Third, continue to drive to growth. we will durable our on focus

value We margins disciplined will expand organic and in growth opportunities strategy invest innovation, allocation enhance drive capital our our long-term and execute to creation. on

accretive in In We are the to the of a term. gross have be XXXX our objectives. will contributor be meaningful Life Palette revenue the immediately our growth that coming acquisition Sciences. on enhance in deliver and in operating ability We believe to LRP adjusted to further near will excited our to margins turn, margins years, we confidence acquisition XXXX about the our

That concludes my remarks. prepared

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

Operator

our And first Shagun question comes Singh of RBC. from Instructions]. [Operator

Shagun Chadha

math, about would basis XX Urology basis Teleflex XXX add the segment. overall growth Interventional points by points acquisition to and to So our

weakness in of offset that still is Or help X% your does intact? UroLift? ballpark? Just some in the X% And this to is LRP the

Liam Kelly

you it much relates for very I'll your to question, Thank LRP. with the the as question start Shagun.

X% growth are confidence will the Durable acquisition as the at achieving in And least our it As the LRP, out grow the of our blocks. Pallet here in to at LRP. emboldens relates X%. core laid building

this of we the given so X%. confident remainder in that and performance the expect year, think I feel what we year the far super for

that, at which X%. Palette, least Urology will growing business unit, at The will XX%. growing And high-growth Interventional be least be the include within portfolio will

ability, of our that to ensures believe, this growth achieve LRP our So our Markets we we laid X% out addition in Palette Capital Day.

growth well. With low-XXs I grow believe that what XXXX. high-teens, in that, of million your that XXXX it on. to do delivering sustainable mean, the future math I in addition the regards make of going kind the pretty is And will addition, as into should number year. this be to spot It's Teleflex, to a into the It's $XX

money. margins is is remarks, your from as important really a pretty So important on outlined point right note, I my math Palette in factor. it's think obviously, I prepared to the gross And an the

as is not It's Interventional And for Teleflex. far and to to unit accretive Urology to accretive alone it's high-growth the Shagun. so today portfolio. Thanks accretive question, business the the

Shagun Chadha

as this are you a trends a patient just on volume on little But you can And seeing? comp-adjusted trends you on a can follow-up the were on elaborate UroLift, seeing? I know just easier just quarter. that elaborate comps basis, you're

Liam Kelly

in the Yes. patient through the flow of year reduction urologists. first We're half a still seen the to

I quarter, I of to of that shoots, remains green some service, were see when office think that side somewhat and the you there growth the of from guess, continued. still We in -- see within challenge the still rate pressure hospital a us.

robust We a of but tick still Shagun. that in the side trained office quarter, in actually, of remains amount QX, train surgeons service up a a the we product amount saw in surgeons. continue to of this And we the for troublesome

Operator

next Jayson Bedford Our comes Raymond of James. from question

Jayson Bedford

I bit to the seem VAC guide in It committee wanted more. more on to the of a what's issue? the that kind approvals. Is on Just of source Stapler. follow-up love clinical in data? you need the on little the like And you Titan revision there? it longer wondering, there, dig the just I'm pushback price seemed depended on comments Do a

Liam Kelly

committees the proctoring. of end expect Titan effect impact knock-on high-teens. The It's committees the and a mean, be expectation as the the contributor I to $XX having obviously, still have was VAC on million. go Jayson. an significant LRP. pushback to at Yes, through the low We initial the our in the we VAC now

surgeons QX this that's the to The from functioning remarks, time, proctored do. encouraging. prepared issue. in Now QX, have because is it's would as what product Jayson, very of my I to supposed just number That's exceptionally biggest it's well. also exactly that we We encouraging. It's doubled we is said product doing thought so the what's

very a what's think I it's end important very, big $XXX also that is market, million.

analysis we the taking a It's thought. and early once adopted It's it's us well. So market. than value longer going get just product the in big It's committees, ramp. we through the pretty gets

there what to also a an entire have buttress as that through know I XXXX the taking us think go it's We And path It's forward. that need do. for get us. be we for a -- having We to material just we adoption curve. will year longer important factor the

will our they Technically, when of because of And care. I night. And surgeon buttress product need surgeons major it's data got want product doesn't no There's of having But XX% us Jayson. I it's the do sleeve issue. help a the complete also time, and just because a we standard XXXX Bariatric It's that that We've a pushback. need. get care. performance a of staples. in tell pricing you, through. a gastric line sleep clinical And use buttress it's not a to It's I issue. is think buttress it will simply use standard But not at

together have we to VAC through for longer we it's through, taking these to the So but system. come need get just everything that allow us and committees

Jayson Bedford

which or assume Liam, be that Can number OEM? double-digit quickly onetime should a very of growth strong there's strong outlook kind And you're in Okay. OEM as still helpful. stocking in confident that's we be follow-up. there. and continues a for just nothing to

Liam Kelly

Yes.

just answer no is is not It's of coming I years shy performance. year, really This other performed your last the in well, good into. over one-time stocking items from business pure this taking market. exceptionally that stellar think but There major to X have directly. competitors share This XX% in a question performance. as are visibility OEM well, we has just the

foreseeable year, I that the the us good this do have that And by I really team visibility future also over the but acquisition future the we have. with go entire in double-digit believe helping it's OEM is of number growth division. a we solid that the OEM believe that did will good It for that do and good Greg is ago, years really performance and along,

Operator

of Our next question comes Mizuho from Petrone Anthony Americas.

Anthony Petrone

Maybe, Standard Liam, just to Bariatrics. pivot to

the end year hearing expectations on update in the for GLP-Xs some quarter, from an the Intuitive. Just the Standard. obviously on noise through of We've impacting been traction Bariatric

update earnings. follow-up bariatric on an just I'll So a on then and have

Liam Kelly

absolutely, Standard the now remarks, expecting as our Bariatrics. said prepared And Yes, high-teens our during Anthony. we we're for

committees. we think get is have I GLP-Xs. there's that getting you answered Product I question, some And before us. you from the from of help Jayson's through we to But the main impact And buttress performing introduction will QX that QX. VAC VAC issue committee therefore, surgeons well. these proctored through is the number proctor. doubled to to very, very of as The

And but some not do have I views the And mixed the for GLP-Xs, shorter-term if mean on they believe don't you this having on do it think in curve. I long-term period stacking it But impact, big sleeve time. impact reimbursements, most they just ramp see impact. to we're shorter that talk that Bariatric GLP-Xs they therefore, it's having surgeries. think I term, within it's a is longer the to impact. of a gastric there's Surgeons, get a

watching Anthony, weight from and it thanks Just than sleeve for significant gastric very, we're so the is question. GLP-Xs. it closely, But from the is very more loss the

Anthony Petrone

on margin for XX.XX%. we or the according translate through that just earnings XX% in looking layering LRP And forward what's 'XX, can there be here, the how maybe for to And recap power? Tom, look and 'XX, out expansion LRP revised progression we on margins then to just still just should how a on maybe based the we out to into and as

with the moving acquisition sort some line the little down the a Palette parts. confounded of it's of to Now below-the-line bit and earnings

we do on have in LRP? from here that lines? additional does And play that the out think through the current the we nonoperating how expansion we based drivers do in? earnings in an now layer So how margin the guidance How power about

Thomas Powell

year, basis. time. earlier that reaffirmed point the about do guidance is I addition think about of we that in Okay. Palette next Obviously, be to the mentioned, had the the way this couple years. product at to units in high-teens would over for it But of a portfolio. in The a revenue to of wouldn't year expect have Well, in the on we in we accretive year. the million then year And to margin to low-XXs that the full we is high-growth it to IUBU as spoke expect Teleflex it we we LRP entire grow the as business $XX all

So we we see this our as slotting some in the years progression. as in very additional nicely future margin and comfort into out providing look

Operator

from Our of F. will next come question Biegelsen Larry W.

Nathan Treybeck

market? This on so share? Nathan how with you Treybeck is is Can or the talk overlap UroLift is U.S. like taking for market Barrigel the Palette expanding far, position, it Larry. penetrated the just about And

Liam Kelly

for very question. you much thank the Nathan, Yes,

So a we as opportunity. this see development market

at look of existing prostate Barrigel of only cancer. actually urology them you treat today spacing customer our interventional XX% and If XX% base, them the technology use

us for opportunity the the domestic expansion States. market within market United a is in this So

Australia. approved product The is in it's also EMEA, approved and in

We leverage a that will other under opportunity. force sales we into But wing. leverage an definitely this as opportunity approvals and there's our be expanding to this And our existing channel. we take margin see expansion we definitely see geographies as

technologies urologist, that other super channel There's have a the we there. we spacing the market. expand into can and We global now out believe

to excellent sculptable. than is quickly. is it's I another anything It the that's company believe out raising market think and better awareness. clinical We've other easy about visible. product inject. we It today. data. a company spacing It's a It had reversible. having process. It's one-step in between doesn't overly solidify talking have We

adverse profile. margin There profile our product. UroLift. into it our not not support expanding we a this but the we're the to been like robust have have halo that data for love zero is new into been and the love We also growth going within that build we urologists that synergies and the potential effect And embolisms clinical been trying have the could force. device-related may events, have love We UroLift X to technology have there open previously a model, to in sales

Nathan Treybeck

give your if which on EPS light thoughts I is street absorb next ability And be to mean, has acquisition, to of dilution? an in you to what at dilutive, $X.XX could just high-level Okay. year? you your expected us is the like the $XX.XX XXXX this

Liam Kelly

second Nathan, we're the XXXX We've on confident row. that's the guidance year's quarter in a really at earnings We've call. coming about year. even We're per today's to Yes. as not going We our Palette. halfway into share get from where feel raised $X.XX dilution with the also maintained we've a revenue for company. we're this through -- guidance

components into our X% we're So and when just really and get all the and where XXXX comments revenue about on within laid next had within at, we our achieve out. to good able that LRP the I've I feel being already confidence guidance we'll all Palette get made aspects we February to year. about in LRP belief the of with profile

Operator

line Piper comes Matthew of question from Sandler. next of Our O'Brien the

Matthew O'Brien

last talking Barrigel here in Palette May Liam, that the just bit in product year. got about approved of a little

total at per it least Palette saying You're the of revenue now. majority

in $XX $XX they've of year So but revenue the numbers, it's or a I'm already. basically that I generated don't assuming have million million

in able low-XX% And think to year. would next that kind rate. you're to I to at of to then if high-teens similar Teleflex be saying quickly for they've a grow just guys growth that grow at you it been able that

how higher why isn't it high-teens, they but significantly given be right their just wouldn't that, XX%? did it, is I XX%, why to it XX%, own? low-XX% the So with on is it integrate know have you well than number? Why

Liam Kelly

it's strong to We're more everything Well, Matt, the there. say, very definitely too I going United to think, point. that, is got States right I I probably mean high-teens than We've think back a have and than now. it's everyone's number happy. you If sales it's force call better push the within the reps right me better globally hard and for us hard. that for for out this low-XXs sales

think we number. right us, that's now the right for that I feel

point, the call through the toughest big You're methodology for the point. clinical addition not And It's of us with integrate obviously, X it. all then an correct. in address to a addition is integration We've this the we have X the of on It's to hypothesis And [indiscernible], that investment planet call got large trainers. transparency. Palette.

are the continue better let know, But transaction. of than there. and dynamics market. we everything we it's expect and that from We then expect, -- it's And it than expect. it's expand we better multiple better you is low-XXs, the And and a going we'll grow to we'll is great and it better this feel high-teens market it's if than grow within if in this to we

Jayson Bedford

Got the is likely that about most be And recovered setting UroLift, is that Hence, business, understandable. office especially just women's have overall category probably a not this let in that X% happen it. from just different think to areas of just as can part a probably it That's Is physician's the future? setting quarter, of I you will outpatient tech and pandemic. it's area. appreciate health on one in that the other I going to there's that. smaller getting talked structurally reaccelerate? X% last to to from I and of know now but the med the back the then not

Liam Kelly

Yes.

grow thought when I that somewhere transparency, going X%. year, around region the all in was we recover. Now to it to I the expected UroLift in began of

right to as around single-digit something Now include full would I Palette Interventional Urology, which would now. low I the a year, forward X% look have decline, expect to

think changed. is market loads men The what's huge. BPH. have are that of there out The I There progressive. condition is

I look pressure it the the office, in today, think at real Matt, is the I issue. as

dropout the time. were back bring the that men to were in go period and using we the to 'XX, drug the drug we those we market convert from and point men category, 'XX, growing you If during were 'XX, call office because able to of

With the lack with with in change patient and market. of in challenged pulling those channel the men reimbursement, is flow, in now the the expanding staffing, for that

in being need addressed So addressed. next can't I that think quarters office the getting see just channel And the I honest. totally get that we to X

So I at time take think it's going to some recover. to

number we of trained than had docs before that, quarter, the having Now for this more quarters. said we quarter a

of for trained. the domestically, international what's overseas. get excellent. The putting I think profile I the are And quarter do I minus happening X% going their to There Last it is shoots. the this remainder to minus year, it couple be it's green that minus docs do. to So said was X.X% going in are it's It couldn't up think year, what quarter. happier was first hands X%. of was a with I

shoots So that right all playing call here think now office positivity there. some that I it. factors couple that it's point with of are green challenged there's of a in the a into But

Operator

Bank of will question next from Our Securities. of America Bijou Craig come

Craig Bijou

I X%, underlying wanted with down. step grow So the at longer-term the LRP. a components takes least including mean you said of expect which start you And I namely, think Urology, would Pallet to of Liam, to growth Interventional now some that UroLift,

years several sure also, maybe the over make to is but wanted what correct. U.S. a then what's next color that, it just little side, I So And -- it's maybe you Bariatrics. the UroLift? that's that see the bit sounds for Standard driving on that, like And more

know some you're years. pretty good next the So growth several for I expecting

level 'XX, understand about wanted we in you what growth relative to how that had expected 'XX should Just to before? think

Liam Kelly

Teleflex, domestic great our Yes. for expecting and I'm your not great with is any start it's I'm expecting margin I'm from for I LRP is, within the LRP. -- UroLift math your assumption anything I And strong. it's not market question. your now. I confident for why correct. think is or X% mean recovers, in it, profile international that's fault right LRP. market you're great But investors. strong. absolutely so and of first If can't part The The I'll here the the the It's

regards this in takes in the LRP. UroLift basically So off mind, to table in the my effect,

market. Bariatrics, With earlier, VAC the I said and Once a regard it's we huge Standard like to the surgeons. get of the proctoring through committees

be with there There Our share the GLP-Xs, continue forever. to take goal isn't of bariatric performance our market. to is market to to is because in place it's this. a continue the product sleeve away sleeve appreciated going for Bariatric here of the going

If you surgeons, any they talk you will to that. tell

to for we the 'XX huge market. contributor going to believe be grow and I that 'XX into LRP do a So it's our meaningful that as

Craig Bijou

hear have Obviously, guys to about Street rolling of going you 'XX, the 'XX. the to any or talk as and to follow-up affect are going know off. you Palette takes provide love But just it. And MSA Got the I would a estimated. have what puts guidance has aren't acquisition, on the that you

should you given reflected messaging So what have quite to guys fully that the we estimates? the in previously thinking about on 'XX Street's specifically ask I just when we're want be not thinking about you maybe and EPS is if

Liam Kelly

I high-teens the then the revenue the million I EPS. an year, the the you obviously about Obviously, ones main in that that's adds on layer the next Palette then goes think about. on in comment back growing million very acquisition, of then $XX Tom needs at I of you've $XX let that mean, and hit Palette acquisition $X.XX. -- to away MSA, and of in low-XXs. I'll of and impact year low the has course, base revenue X to layer think think margins Street and you EPS So at But on

on are those not main Tom the aren't details XXXX and get takes real are the those I'm puts expecting line. -- I EPS, that X to any think the they? So top -- Tom, but ones, I don't into about And

Thomas Powell

things well. will that a that couple watching are. of They as we're say I

inflation. improvement in next give us Our and foreign rates, should so of starting shown benefit exchange some have a we're year to improvements areas the see nice And half also which a recently, that year.

changing which dramatically, out level sea help obviously do of come our inventories, able bringing couple which we're those to Palette times manage are to will yes, shipping of are already but could and the be to will watching seeing continue FX down I improving allow the So are closely, freight we things, back has inflation us our a including things MSA, as to key flows us. down. those some cash then -- and and for the that think, we're tailwinds But be

Operator

CL comes Our King. from Stewart next of Kristen question

Kristen Stewart

on Tom, tightening than I the bottom range? the the why reiterate wondering rather line, guidance just was just

Thomas Powell

question. fair a it's Well,

and that end think what's are of is quarter about happened As of we takes and we looked the the puts at year. there all the

expense. if if with the about the had in dilution And on, think then recalls really we've range you was second of in so commented by And what quarter, incremental associated we of the the from Palette adding EPS driven -- $X.XX. another you $X.XX

The as half. combination expected And then of the is a both and I second benefit. second of quarter improved the year and as full improved. That performance result a of mentioned, actually FX, operating in And second has quarter is offset $X.XX. balance an

out. since much that So guidance, our last changes number pretty essentially, a net of

the commented, dilution acquisition guidance. and are covering Palette Liam with As associated the we still maintaining

look the we're the -- from you that continue we're monitor we're in will, range we'll But So covering new. raising, effectively we at reevaluate if third to something it and quarter. the year, that standpoint as

Operator

of will question Our from Richard next Newitter come Securities. Truist

Unidentified Analyst

It's for Rich. on Ling

So wondering high-growth including on MANTA some maybe you could provide if trends color I'm cetera.? portfolio, your like the thermostatic devices, in et

Liam Kelly

Yes.

my As for market I MANTA real said growth. is track on continues in prepared the to remarks, double-digit solid penetrate

the portfolio those look we've of be for would to you If already. we them of at within discussed the areas the other high-growth high UroLift growth. well And single-digit high-growth X that portfolio, expect

to you moment durable want a don't the mind. take I do if core, on

that as company. performance investors had Asia Interventional strong solidly. We've Teleflex from the core margins really has for performance familiar will great was And have performing Access I but with that earlier, very Interventional gross really, of excellent had aware has be APAC OEM both think the as has a mentioned durable Pacific. been and

believe believe really, we well. quarters So improvement is a the we whole for in seen have high-growth. year. the From core last of portfolio we really And in that X up to from And working quarters called our the row, revenue significant X row. forecast durable a Teleflex, we

has for we guidance at almost Look this X.X%. I think back at last year, our grew X.X%. year, midpoint the

significant is sense. when the going to Not company. solid advantage global think you -- everything all diversified it a I of and think. to of it's Palette it this improvement. you us. going it's performance, seen really makes And is add help way we've again, the addition But a together, all the go So And is

Unidentified Analyst

great. That's

operating follow-up margins. walk year? you throughout through So margin maybe margin I'll the gross the us cadence Could on of

Liam Kelly

You and margin margin throughout want year? the gross cadence of operating this

Unidentified Analyst

Correct.

Liam Kelly

to that. Okay. cover Tom I might ask

Thomas Powell

may got a -- all, of how then we even greater to one meaningful be meaningful after think I first in margins. is pretty should gross impact the I say the understand We negative Well, in thing you want on And that out. quarter absolutely. fourth foreign margin. second or the actually the that saw slightly turned to we FX first It third FX impact as and quarter. positive actually play have exchange impact Yes, gross a has it impact quarter, margins FX expect just to impacts expect the

the impact, to again strip year is to So the gross if what a sequentially the to the margin foreign first with exchange see out second improvement fourth then a you were improving third fairly throughout the you'd sizable from quarter the from and quarter.

bit that in here experienced see a the stronger each softer third, second as If there, a to about we maintain the is little gross margin to a going quarter. same the is you little FX what were you're the in what quarter, in in bit the fourth

the a couple expense. Obviously, and In of had puts we takes. recall quarter, the second had we

negative from countries favorable and I had as some impact, some exchange, that provided mentioned, Foreign pricing foreign but modestly was we also benefit. credits

margin. pay say to strip were out, I on you overall, out. attention the play And that it's would FX if see may So very that sequentially And similar operating you'd gross how to improving margin.

bit saw the throughout impact, in have the quarter softer little going If improving by sequentially we bit And strip a margin FX. the FX to do fourth is same Obviously, or in in see the little a something out stronger third year. would you result, the as as second. to and quarter a we see gross margin what consider what you op the you're

Operator

question next will Sellers George come Our Stephens. from of

George Sellers

quickly. guess I to switching back Palette

already Barrigel. also prostate space are used And I Or using With or treating Are you a already this opportunity? of more is users, white cancer. they a also UroLift that XX% of product? the XX% said believe space

Liam Kelly

space opportunity would there XX%. There about be great of George, would So a -- question. white

So of Barrigel. an using of XX% total, are them a of them addition product spacing -- sort, in using about XX% some

XX% at you white be And around space. of so therefore, would left

And will reiterate. again, I

spacer, This prostate. is from attacking XX%, and the ones of remove the other XX%. other benefits the attacking the the about physicians toxicity about benefits Barrigel as already not is the of to spacing, educating around on that using outlined this I the us, organs a For

white to growing by into around the call us space, point an used get where is into those existing is really for of which customer the George, oncologists, an it's product excellent some individuals. So urology,

So really opportunity. a and that, nice it's I encouraged by think

George Sellers

to over driving continuing really Switching like well. give additional about thinking But on That's how perform it Okay. visibility LRP? sustainability remainder you should detail be we helpful. OEM really the that just continues the pieces And you've some that outperformance? And the that to of segment, got this the to year. exceptionally sounds the could

Liam Kelly

Yes.

George. I think question great again,

is that's double the the beauty strong We in in the completed digit got think about suture a really right the I double-digit got the OEM this a strong Board. business. catheter businesses digit double business. the really business. got product across in We've really We've strong

across the within catheters catheters performing are those complex right obviously, And well. the exceptionally It's Board.

correct. You're

that's we one This one our tuck-in have have really by margins? another the to got I in margins. base. I again, within capital to to morning growth the is in and what -- this And is great to booked. God, encouraged is We they -- performing long accretive order that do where got well available, see. It OEM, have there business And ahead could and dilutive a customer put But This us strong op sure visibility. if I solid is it gross we're for well into make visibility find capacity a business. it's business we advance great to customers we've it our the with really because exceptionally we've think

Operator

we for turn questions Keusch would morning. to Lawrence this the remarks. to for conference I the that all closing back time is like That have

Lawrence Keusch

Conference Quarter you everyone Second you, This joined that Earnings to Thank and Jayal, Call. Incorporated thank call the concludes Teleflex today. XXXX on the us

Operator

disconnect. now may You

Teleflex (TFX) 3 Aug 232023 Q2 Earnings call transcript