TFX - Earnings call 3 2023 | Teleflex Incorporated

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Operator

Good morning, ladies and gentlemen, and welcome to the Teleflex Third Quarter 2023 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. Please go ahead.

Lawrence Keusch

Good morning, everyone, and welcome to the Teleflex Inc.

Conference Earnings XXXX Quarter Call. Third and The are accompany call to on press our release available website this slides at teleflex.com. Please ability to their viewers the call. have presentation proceed as webcast along on presentation follow own, note slides simply through the we advance that the with the

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

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

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

Liam Kelly

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

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

Third $X.XX, quarter year-over-year. XX.X% an was adjusted share increase earnings per

stable health returned third we which care macro experienced From primary the acute seasonality. stable utilization trends. to material chain normal to a a tracking basis. on are our witnessed third year. dynamics expectations the and generally quarter quarter the care setting, in macro These for a towards improving perspective, In improving and during is we the our inflation sequential quarter, During utilization environment the supply to third market, for

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

our During balanced across the to saw other led performance we while businesses. Interventional growth quarter,

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

quarter, of region. the in demand excess underlying During Revenues demand. solid third and year-over-year saw we China the stable across reflected of the in majority XX% increased

Given in of have initiated anticorruption impact as portfolio China products, our not any of a result seen business measures. on specific government we our

Commentary X.X% discussion on Vascular the currency basis. constant our revenues for a to category. quarter product third move with third global Revenue Let's be of $XXX.X growth also quarter global the now Access. Starting would product million. increased on by category to

and customer DLX new the for PICC announced the by a Rhythm Initial Endurance navigation quarter and device Stylet positive underlying NaviCurve we drove Arrow And catheter the previously the placements. generate our activities negatively response VPS our next-generation double-digit continue impacted to preloaded with PICC Arrow growth system expected, As recall. was business. in launch

in MANTA continue to complex structural access Balloon In to were quarter, million, heart we up $XXX.X uncontrolled PCI and growth year-over-year. the and enclosure, portfolios. was Revenue Access. quarter. Interventional to our the pumps, meaningful emerging drive contributors Moving XX.X%

Anesthesia. Revenue $XX.X X.X% to declined to Turning million. year-over-year

As up of In growth. notable our $XXX.X year-over-year. our the business, Surgical larger ET Among Tube revenue growth. million, previously was were year-over-year and expected, XX.X% drivers instruments impacted negatively franchises, recall announced ligation, staplers

we in For the stable now tightened Standard revenues expect teens. Bariatrics XXXX,

For representing U.S., a remains In revenue UroLift. decrease for million, biggest the Urology, $XX.X of Interventional year-over-year. was the office X.X% challenge the

with portfolio, revenue XX% to We tracked strength China, in driving including to we microcatheters. while side the are activities $XX.X year-over-year have focused initial our solid million. across stabilize the was continuing remain our in to of had efforts service. another on our In this international launch markets, revenues Japan quarter increasing The quarter broad-based UroLift plan. OEM in

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

revenues, to As anticipated. to rather give now previously We December in in exit in by are call. That MSA the quarter on position expect to will a been than we financial in cease earlier XX. the the on Medline update the impact earlier informed December have completes performance. than comments third now an XXXX Tom the my other the it revenue later relates that they MSA

care, the year. growing The of cancer U.S. million an Society is Cancer portfolio, XXX,XXX achievement and between rectal updates. close Palette's and prostate other of There tissue X% be October the market sculpted some therapy. there XX, of with commercial On of closing certain particularly milestones. Barrigel, when product covering that prostate the large to rectal prior a prostate UroLift an to top will payment cancer. Barrigel Sciences announced the Palette diseases American rectum healthy to protection spacers. the within business of the is million predictable the product spacer. rectal X of cases placed growing upon is a upfront will global differentiated easily additional the up estimates BPH radiation system, a urology complement $XX we incidents and and physician held privately The for $XXX achieve of cash and acquisition in the for allows Turning new Life to

call addition presence treatment of increasing landscape and rectal Palette's the Of strong enlargement business. the clinical the our perspective, will point. helps radiation of the spaces of portfolio therapy of is to demand rectal expand which complements Urology Interventional a replacements, addition, urologists our benign existing of space hypofractionation tissue. From our healthy driving note, the strategic majority perform In leverage protect use to for in prostate

have therapy which for Palette's and will engage to other and broad pediatric in urology prostate use acquisition spacing by the radiation specialists in including radiation organization. be female of enable augmented rectal expertise oncology, urology. clinical We Teleflex cancer a sales established also in urology treatment. will The with areas

awareness will We leverage patient focus practices. best education, peer-to-peer strong and implement a

to UroLift, although acquisition expect cross-sell We rectal in been model. in also included opportunities interest our provide spacers not synergies have to such

grow effectively enhance From a market. has perspective, significant growth near and invest brand to Finally, new adjusted which we in within operating success, established a accretive Teleflex Barrigel allows adjusted the margin term. gross immediately acquisition and our financial the revenue expect and margin to to in be

Moving past to the the couple of focus topic over quarters. which GLP-X drugs, been an of has investor

the We and monitor of assess exposure to data evaluate to clinical continue potential Teleflex. usage for GLP-Xs

We not have have significant time, diversified GLP-X we on a direct serve. to this do Teleflex's reviewed the markets And that product impact expect we at portfolio.

Teleflex's than are Stapler, Standard to Although less XXXX. our is Titan largest for product account with revenues expected of revenue in overall for this exposure X% Bariatrics the

the the in It sleeve from major in X over that the have note Society past Annual Meeting, adverse trial GLP-Xs. presented study been cardiac recent a Bariatric Surgery Metabolic for X associated is while American showed showed bariatric Clinic, and an Scientific Cleveland which the cardiac volumes lower surgery events. important at with a adverse of was major events that XX% on quarters, impact the SELECT from XX% XXXX to gastrectomy we Over seen reduction interest a has years, risk

the on While [ in GLP-Xs types the events for back X% mice Interventional we X some approvals focus points. and in We've SELECT X.X% reduction continue rate tens market the period, quarter. absolute X.X% to study basis and done follow-up the from softness is light expect measured this the believe events an ] annual bariatric possible in showed in of impact When We in to capturing the remain share. deep offset which to to training our surgeons gaining business of also into considering of major a we surgery these volumes, the the approximately dive of in study, to events basis cardiac years. we an over the defined our in adverse of will of active due the reduction results assess during on

So actually, a small impact. relatively

sells utilized admitted be discrete GLP-X a significant as not estimated develops specialty the sell devices. approximately GLP-X with sales Teleflex. for urology that products Teleflex we impacted for the use. is through include is addition, our exposure majority products Interventional patients kidney would powerful also usage. Teleflex some and other utilized in unlikely of Common majority to eliminate Interventional of X% account completely the do have the our to delay the impacted surgical in reduce AKI, total, increased business In total AKI in America revenues. low hemodialysis bariatric surgical products mentioned in exposed. have revenue by is than sales cardiac, significantly impact chronic North remain not disease. clips hospitalized may Accordingly, surgeons, GLP-X to products ligation majority to injury, to or hemodialysis of and by expect to not business. More could that patients X% blockages with renal less usage global to as AKI including as pressure catheter with products other in care of That of only the should be but are our patients is less considering and up surgeries In But expected immaterial when tract, and that gynecological use to Teleflex these closure GLP-X this the to and direct metal well catheters we vast general, surgical the GLP-X potential businesses expected intensive Indeed, for of broadly, with on categories, need assumptions unit associated for severe the which units. of vast the our revenues, live potential reversible. Between it said, infection, X% impact not it of drugs of to serve XX% GLP-Xs acute Vascular than demographics for longer, are cardiac drugs use treatment to aging. product driver populations be is with be the It that Also, may associated often and a events. kidney causes blood

result, portfolio as diversified a procedures. carrier of XX% product revenues should is not impacted drugs. over highly on And result directly usage primarily a focused critical of increased as we estimate GLP-X be that Our Teleflex of

of forward. and moving to to monitor will We Teleflex clinical GLP-Xs continue the evaluate to usage data potential exposure assess

our on Access update business. an to Moving Interventional

Wattson during of while pleased Pacing final stages used Temporary confidence launch to bipolar We completion are are to TAVR ventricular unique procedures share is the the in for for guidewire providing rapid risk of engineers in reduce we specifically capture and that help Guidewire. Wattson perforation pacing. BAV of and commercial the a

As delivery the and already Langston Wattson for and a dual wire, Vascular MANTA pressure expanding will complement structural device our and guidewire includes measurement. the delivery portfolio, which Closure Dual-Lumen contrast heart pacing

are note, on a we building and a prepared momentum drive continue to new in we'll of Of with focus heart. my structural over PCI years. That number engine, We the complex coming completes be innovation products launching remarks. our

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

Thomas Powell

Thanks, and good Liam, morning.

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

versus from the partially and in versus a The XX.X%, partially flow-through operating increased primarily quarter, the to $XX.X rates the period. lower For quarter. Standard fluctuations acquisition increase year in improvement grow unfavorable in in increase partly the margin, expense higher gross the employee-related was of offset favorable to continued quarter, million from expenses, interest interest inflation the headcount fund exchange margin distribution-related XX year-over-year offset prior cost price, increase XX.X% the interest the offset expenses. Net XX million foreign $XX.X an by and third cost business of Bariatrics increase in benefits year to net year-over-year inclusion the and operating increase of basis by the prior prior was income. was third was margin utilized logistics reflects average interest basis period. rates. Adjusted and year result the initiatives Palette, adjusted point debt and of by outstanding investments and costs, totaled increased due point year-over-year The expense higher The gross

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

flow was SELECT sheet cash operations was the million primarily now $XXX.X Turning from $XXX.X prior to increase the balance in to attributable The compared highlights. period. million tax Cash year for and flow inventory to buildup in and $XXX were favorable X months favorable operating the due purchases capital. in in volatility. favorable chain supply lower working results, payments global lower year changes inventory working capital elevated by in to primarily the driven from The prior million stemming changes

to in cash strategy. balance of us to on million the at net to in of Sciences, million of flexibility end end October execute approximately Moving to X.Xx, third $XXX sheet sheet. the remains was with $XXX our fund leverage quarter the The third capital a X.Xx Sciences covenant. the is below quarter end Palette $XXX.X our financial acquisition compared Inclusive due XXXX. position provide primarily to remains On Life At continues cash pro Life the was increase of well Palette the million as X.Xx. Palette basis, sound our was XXXX. Net of of disciplined forma our on allocation as approximately balance balance the quarter, and cash to acquisition leverage which

the financial December Life of acquisition Starting turning with assumption. October closed ahead Now XX, of Sciences, guidance. and which to on X our Palette

dilution the million transaction be For a approximately We of expect $X.XX company's basis. continue expect the to adjusted XXXX, approximately year be the now full $XX to net to Palette revenue stand-alone we the expenses dilutive to earlier on XXXX is higher operating transaction. of of per previously. The of share versus the primarily expense associated as close in dilution $X.XX XXXX as earnings incremental in result the interest incremental with well

XX% there net high change to expectation achieve to teens range. for the year-over-year is For low growth no our in Palette revenue XXXX, or

Beginning earnings we XXXX, expect share is year to will expected continue EPS. accretive $X.XX transaction the be in to transaction in adjusted addition, per dilutive increasingly to XXXX. In the be the company's adjusted fiscal to

manufacturing agreement the certain on our assets. update of with sale an transition to associated Turning services with Medline respiratory

notified Medline our of earlier been date MSA XX, intend previous have end expected they by that in end the to We December XXXX.

as guidance. currency revenue million of to compared the Our the reflects our now $X revised a constant XXXX guidance early to sales in prior loss due approximately termination of MSA

Moving XXXX. outlook for to our updated

with in performance of less our revenue by MSA offset of the for XXXX and fourth quarter the incremental low is representing of Palette to increase our a in was guidance earlier-than-anticipated We the acquisition, point increase guidance half XXXX range currency of little are the early increase the revenue positive increasing constant the implying high the to the lost end revenues currency than third the a associated quarter. constant a the of XX basis operational termination X.X% range. unanticipated basis to and the at outlook note that It strong end X.X%, important the XX from majority point close at the driven in the the

exchange. approximately XX which This points $X in prior or assume an basis growth XXXX. We GAAP tailwind to approximately guidance, XXXX. revenue now exchange to million headwind from to $X foreign assumes foreign revenue to compares million in Turning our

the Our revised for captures euro-dollar $X.XXX exchange foreign of fourth growth billion expect dollar rates, $X.XXX of assumes exchange we rates the range to revised $X.XX in current including for outlook, exchange implying revenue Considering third XXXX, actual quarter a rate guidance and billion. exchange to the of for X.XX% foreign foreign a X.XX% now the reported XXXX quarter.

margins. to Turning

of points high raising XXXX low basis guidance end to the at to XX.XX%. by range the margin XX.XX% and gross We are XX

in and offset in million and range pay the the operating operating Palette expect in incremental the decrease now slight by acquisition we anticipate fourth earlier guidance net interest in to The now XX.X% the expense acquisition, approximate associated with to than the debt outperformance close in we quarter. XX.XX% the expected the higher quarter associated expenses, of down earlier-than-anticipated Palette $XX XXXX. Below of line, of net Given expense margin the close third XXXX. reflects for the interest XXXX

approximately is rate now expected to tax for XXXX. Our be XX%

We our per for to $XX.XX. range guidance are $XX.XX a of narrowing adjusted earnings share to XXXX

performance, acquisition the adjusted by to quarter, results from changes Palette partly operating earlier-than-expected of reflect versus and EPS to due exchange favorable incremental Our dilution in outlook updated an including of third early from the close $X.XX prior of and been offset MSA. has $X.XX guidance the termination better-than-expected the in foreign the the approximately rates

not to representing for a the guidance, million, approximately range do includes commentary. to $XXX impact benefit quarterly year-over-year. And purposes, reported quarter exchange would foreign of my concludes closing $X.X of days revenues fourth we your selling we Liam back now partially to to like in which the turn Although for $XXX a I by for offset modeling that be provide of million remarks. million, it expect $XX million prepared

Liam Kelly

our Thank will you, I takeaways quarter key Tom. the from XXXX. In of third closing, X highlight

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

execution strong. remains Our

We are and new remain healthy. products, launching margins our

third Second, environment to macro well quarter our financial stable updated to the positioned on strong keeps improving performance us guidance for deliver and XXXX.

XXXX As look we are out close better currency positioned growth X% the we our for than to constant guidance. under revised year,

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

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

close We will accretive the the growth gross prepared immediately that are margin excited near my remarks. operating years, concludes be of believe acquisition the in the be our term. That Palette meaningful to adjusted a in and acquisition. adjusted enhance our will about to We the contributor coming margin

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

Operator

of with your the question And Wood Patrick Morgan line Stanley. comes first Instructions] [Operator from

Patrick Wood

benefits? do some see quarter I'm any maybe very b, was obviously are in And peers the on the has their stocking any a bit of seeing of market. One Interventional Or things, of on strong benefit you kind A, sort a on because it's to you side Surgical. kind curious of the on guys your there business benefit? of of and degree balloon going numbers? guess of I any sort the recall a

if So bit little business I'm just there. a had you any better doing curious

Liam Kelly

question. much the you very thank Patrick, for

all I income which our really Just by Interventional and quarter's that this X. feel, start with pleased to aspects company, we saying a step Surgical just results, including taking we're quarter back, deliver as of We a outperformed. statement in want

is and our quarters the that is year. Many updated a purpose back in of acute improving. And deliver. more stable we're the and chain as performance think mentioned, confidence focus X finish our through key to well. to pre-pandemic for And each Our go our bullish ones it paying including performing date of our you utilization quarter, reflects is the are is in Inflation really guidance Health we levels. supply care strong I care ability to the confident the dividends. company to in franchises, to

One only have X.X%, I'd all backdrop, we to achieve of our seen in X.X% of that office ability really side with Urology in to areas the service, we remains revenue the improvement which as our updated the of is But it. challenge. a not say still probably that guidance feel confident and

company underlying to Access back very have well. Regard stocking, it's this stapling had businesses. balloon also growth regarding has are duopoly. quarter a traditionally and we and they Specifically that is the your happened they key outperformance And would portfolio starts, no and this a Surgical, and and quarter portfolios, had product And on pumps. the now fits recall, by in some including questions come market instrument Interventional as to have distributors, Surgical, month what our our of was have a third driven did -- these the in also -- would ligation, We for destocking expected. in to in in Interventional that's no,

totality of their benefit, wasn't So across really normally, on in It they some but may was broad portfolio. think company, range our really what one focus have for hospitals the -- a will I marginal that pump business. or And either the the use we seen drove upside Interventional pump. multifaceted

Patrick Wood

GLP-X thanks That commentary. Super clear. helpful. really the as And was well thoughtful for

Operator

the Your Jayson from next line question with James. Raymond of comes Bedford

Jayson Bedford

of start to for on maybe both hate the fourth and but boring in the a there Access an impact And Vascular I the financial recalls, revenue quarter? what and impact with question, Anesthesia? is EPS Tom, was

Liam Kelly

talking revenue, So are about you Jayson?

Jayson Bedford

you of just way Was quarter. I'm just there third mentioned -- in And both. recalls to if was impact the there's the well? was impact the will Well, that as quarter. fourth there revenue a in a wondering recur a an there I if I'm wondering then quantify think that? EPS

Liam Kelly

Yes.

together, something quarter would Jayson, the both the added there. if around would of of below probably what that of be just or at a recalls modestly dropping impacted, you you're gross you margin looking If of around of company million, be I it So $X-ish of revenue both would impact the average in products in looking think the through be.

So less just dropping than through. XX% gross margin

So agree, could say, out EPS impact would figure I on you would you Tom? that, the

Thomas Powell

largely I of That's recall, minimal accrued of quarter second year. the Yes. would revenue we're with the agree third in the impact the And very with quarter. the in the then impact. cost

Jayson Bedford

then are between Okay. on it's UroLift. a you here just I know and Liam, cross-selling only been opportunities any month, And UroLift? seeing Palette but more

Liam Kelly

and Teleflex together. that are in welcome that There the sales early the palette. companies actually of stages the to back pulling integration team a So very joined X we're are the just very of number

product. they the know So already UroLift

our into the Jayson, of UroLift into house. And Palette have in the XX% cancer. way haven't Yes, again, there organization asking urologists urologists halo considered And Jayson, to had model, will products. Barrigel that remarks, see any Barrigel some an said do We too we when And a prepared very, product, we UroLift the of the them plethora that of UroLift, impact go UroLift will inquiries as built our the encouraging. early, from side you're Barrigel yet think have into of cross-selling are which a prostate our the to other only some? very we effect you our be potentially, use as we of urologists do us trial that base But may -- of in is existing sales it's from use XX% past the to option. not expect that able of base do BPH also so as know, the that

early lot with base from a very of space to inbounds So the us indications our is an white into encouraging. for grow

Operator

Your comes line next Singh RBC. question from the with Shagun of

Shagun Singh Chadha

I'm just trying growth to rate understand better underlying here. the

I For gets QX, XXX MSA, implies basis points XX XXX your of could basis maybe based day X.X% XX think about about headwind, I a believe on X.X% FX which ex be selling which just math, basis headwind, underlying there's decline. points points, us Palette is in about to our QX. versus

So underlying from an Back that QX imply growth. your is QX to correct? It does to on firstly, deceleration basis? math

wondering sorry, it XXXX what there for of and all is for Just -- conservatism? then implies growth Is driving some that? those numbers? And LRP X% what

Liam Kelly

that's the and thank Shagun, No, okay, you question. again for

So I'll of go it. pieces through a few

guidance updated to X.X% X.X%. our So is

that you basis, a that's look X.X% or you to million underlying X.X%. remarks, have you the X%, the into account closed to leaves also billing also of as earlier on if Then days constant but in from take that currency $XX is Tom's X.X%. Then X.X% added would earlier. heard an Palette at you the that that MSA Tom, we've around that If in as growth heard is

million, and $X is MSA acquisition. we in the approximately of Palette is shy slightly bring from half what that of the So

it. So that's look at I would how

decelerating. all at not it's that say would I So

today's of the obviously to into QX guidance end we've X.X%, lower X.X% significant to our -- in a account think we've And quarter, days, low a the one a us our pretty At I acceleration. And step row, said what X the a from I think of year, year, of our would we end in well third opening, is end as through the up that call of and is If to range fourth in through truly, I and employ was would been executed number. I the up you the front some the beginning the enthusiasm take I show X.XX%. reflection like the for of see This the we of revenue. more our think, quarters in throw performance just Shagun, and position in guidance of beginning the my quarters. quarter the X out upper have

our As quarter, significant end now the the go fourth of range uptick. guidance X.X%, we low into a is

Shagun Singh Chadha

of really a margin And the guys just dilution you in $X.XX absorbing side, 'XX. then Palette helpful. That's are about as on follow-up

You've guidance. EPS raised your

is think driving this consensus And the how of for any we should XX I your color underlying 'XX? margin expansion. basis about So improvement? what LRP? on looking of think in context And points 'XX

Thomas Powell

margin, the in manufacturing-related mix pricing, we're is. in favorable on seeing Largely, results what's third driving some Well, it variances and the quarter.

As expected, both in and inflation improves the year-over-year. sequentially third quarter,

sorts. if Foreign actually a a of in was headwind back in of candidly, earlier bit the exchange was go quarter it in a headwind has benefit and, time, you the year shifted a to

it quarter, and providing macro third and point. will, this the logistics play see working So if that expect improvement and for quarter really and costs planning fourth to regards timing with at stabilization in we saw we we as to still the the continued today and those environment, are drivers we're in of in year, position the you some next that into our process a to guidance year be margins as through relates then well. for through annual And aren't next to inflation

Operator

Your Newitter with from comes Truist Securities. the line of next question Richard

Unknown Analyst

Rich. ] [ This for is on Allaine

recall last of you I for committee item. pinned question, approval longer first quarter, VAC kind So on

Just provide wondering there? can if the any like you improving on trend Or it's color there?

Liam Kelly

absolutely. Yes,

doubled it you the QX, proctoring. in that getting looking committees we had you technology while cadence value surgeons of QX really value of we surgeon do quarter, objective lots and demonstrate we reasonable of Titan And for market I pathway GLP-Xs, these to that other compelling, a save there's getting continue space, will But just can QX. share. Titan of into will remarks, Titan we the take proctor that that and growth do is compared of we indication driver all, into analysis a still the within fact that strong a our you've share value us that stapler be ultimately, of we we we that but it through over growth performing to a maintained than and what the said here and general, in take have a of won't believe GLP-Xs. a end And for will and growing process is time from first share. The will with that analysis be that overall it compared efficiency because good the thought technologies. analysis a regards period of until at we tell the matter think driver. Probably impacted to outcomes the initially for as patient gotten There very, Titan, to procedure, in be are will a originally, that be the market to better proctoring prepared be as is we're very ability surgeon number longer the to and number as at were anticipated QX that committees. through the of will that's given day, big studies in you're clinical regarding this That's now in taking the that QX, Surgical So to to is a product cannot And well. level have to through specifically, time a to take XX.X%. better we And Teleflex is just the multiyear the to market there is you recall the the of room life. our because grow will by belief our impacted believe committee. It's

Unknown Analyst

it Great. it's appeared That's OEM, on very that helpful. strong. Also

trend confidence XXXX? So do have going you into in this

Liam Kelly

Yes.

of we based sight is would visibility has of all of our candidly. microcatheter the the And we've we is through our feel within whole the And and the double-digit will development -- also we the continued confident that within best you of Teleflex business. I world backdrop of of the that line the our we're and us what centers seen future, advance be OEM -- year our that OEM key very, are just QX, business, some in doing the nature have to gives the therefore, technologies grower QX, in that OEM given see of quarter. a into the to that the tell in So happening with will on for first what product month part booked have innovation guidance of very business what's we that the well of because that businesses, perform unique the customers. continue foreseeable work orders and some around greater are just in to third of business for

Operator

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

Michael Sarcone

for on Sarcone today. Matt is This Mike

you just Standard would expect what do gastrectomy on your to versus and expectations thanks seeing need the you on And the offset share you quantification follow-up in can a more prior for then a GLP-X impact. all sleeve your think you on volumes? you're reduction Just be volumes? Any gain Do little at color least commentary helpful. Bariatrics, of given for that, kind reduction the give the

Liam Kelly

market $XXX roughly, million a So Mike. it was

nearer with the pharma impact will people all There's to the longer-term be view compared the the significant how ever effects I is of And outcomes don't cost the That's of the a reduction option. starting to bear heated surgical it pocket underestimate SELECT what GLP-Xs. And everybody of cost. got I the about reduce And in a air events GLP-Xs of up have in study. depend to know knows the a term. obviously XX% major that options side it's that outcomes, will these ultimately point. GLP-Xs, is the an going if So sleeves on who depending be. to

as that's X% going to we put X.X%. from remarks, that in context, at to prepared our said into Just

something terms. And will the So of a in a out measure in X.X% around analyst this know, prepared to the same XX% true every reduction study on of events which call Cleveland is remarks, as is it's absolute Clinic came the as gastric in the X%, way showed that reduction said dangerous sleeves. X% I from my

balance. market. I that procedures are customers back What reduction is to said, doing will million are was a population you for a $XXX So start seeing if is bariatric this believe that sleeves a gastric because the obese think we exist sleeves, $XXX this firmly that take number Mike, the in on But What to talk for step clinicians you a of plenty most that million at converted to it is of surgeons, they us and as grow we've opportunity, the now will you in about sleeve. And market gastric and if surgeons, I that into talking sure. gastric the tell will they to talk I morbidly look for we're future.

a it, significant that, Teleflex. for to into therefore, call million is so let's still grow $XXX opportunity market And

Michael Sarcone

of that how level my in And taking. on your year pricing Great. you just XX with it taking the possible price the board on your we're that take bps in you're just price of thoughts about XXXX is kind to Liam, is? beyond? sustainable ASP Or XX impact. question to ability second and quantify and Is to per that you're

Liam Kelly

it's good question. a yes, So

of through I a years and contracts on our X-year now and think we're cycle cycle. go X most the tenders

plan I had We're that. do So laid to doing XX our did year. that we similar better tell what last points, a of than through good this we you to can year, points. basis out XX bit we're basis north

then good off X-year positive been assess have that, we'll little think So bit in we'll tenders. Mike, the I in us. And environment. position trail XX next will your cycle, another least be the of points, basis normal pricing it a through do that XXXX. at in that's we'll a And a the because cycle well story a I After year, to for think

Operator

Wells from Fargo. with comes of question next the line Your Biegelsen Larry

Vikramjeet Chopra

I'm closed recently for M&A changes question ask curious and XX% you have to laws. deals capacity of the about recent do This the strategy, M&A much in left wanted I is just for the rate is as additional Larry. your tax your strategy? And sustainability Vik environment in on impacting the higher me, Palette how given to is on Two you my rate to the deal. one tax follow-up just the how interest XXXX, the

Liam Kelly

the you tax that to question the first, So cover and Tom then ask I'll M&A I'll cover had, Vik.

So prepared pro remarks, on levered. the at X.Xx M&A, as we we're said our forma, in

lots $X available would Teleflex Depending that the you firepower would to So on of mark of billion firepower. we today. what sit bring, asset as we towards up put EBITDA here have the

transformation you rates It's interest going the we've cost attractive to could able time through to the twice. at high we We when a of still execute We capital would blink were we're X. internal Palette in find previously. year attractive all rate It's I And wouldn't on interest bought the still continue really that augment environment, I as morning, going of our our the asset to Palette, top asset. margins is get really an got by if found another Regarding to still been line Teleflex. be to that. in growth. found

from the going are on of to disciplined. interest I We've to to to I purchase change range over interest like here question in And talking rates price $XXX sheet if handful balance you rates, think cycle. When interest have million ask don't Tom. through tax, always in companies. $X mind, regard. And still be than the today, execute. price. is were They As Obviously, from companies will potential we'll more Tom we're to answer remain rates we're sit who attractive disciplined were a that higher, potential I'll Nothing the every the anything pretty Teleflex remained disciplined. When environment we billion to low, disciplined.

Thomas Powell

Sure.

tax I working and we're the And year. currently plans of next So in say. approximately our XX% current is through a rate of would XXXX rate, the for very AOP attractive process

specific are we're expectation the be provide say than in a XXXX. I point. So this XXXX we at that would not the be higher modestly guidance where that tax in for rate would to position would

Operator

the question line Sellers George of Inc. next from Stephens Your with comes

George Sellers

selling some that specifically the the would users breakout versus And you think us I process looks But you more of radiation details mentioned a like? Barrigel For the specifically from of Palette just the acquisition and urologists? give majority Barrigel, urologists. could on be what's oncologists that what

Liam Kelly

Thanks, George.

So let of that. assure we're me you not ignoring the radiation oncologists,

urologist oncs service. We compared go around sides through the have are the that of XX-plus oncs, percent this we're are training dedicated to the the actually a rad procedures rad team exclusively of the done both we as to of dedicated addressing by but process. as It's

of about anus. important Barrigel means can what's then trying George. the think protect trying protect that the and around you the uniqueness the product area -- you're to is most actually prostate, sculptable, for the I the It's to product, you're mold which

It's you that dissection. any high-risk constraints. you're assembly. It's able one-step -- to you're mold There's it a have sure to make injectable getting to do protectability. around So the visible. no prostate highly don't time It's

of which this it into think time reversible, on is of go the happens the that compelling. you unfortunately, market. area, If some I particular all to time from And It's with the wrong unique products it makes to product.

of I You're right it's and earlier, customers as only use our said current XX% that Barrigel. UroLift

share. about really and the it's us, the for market growing taking rather So expanding market than

then they product. proctored rad comes I anatomy think of unique would process, and a for little our they're Teleflex qualified to cases. the or a place a footprint over given and that in there's this The sales training, forward, helped urologist be is or a opportunity onc trained bit that X area. once point, And after be and X then deemed fully to

George Sellers

say maybe opportunity? you penetrating market one color. Great. a then would seen I that you was What internationally? helpful little the you're bit, from QuickClot. of And on Okay. appreciate on conflicts gears That impact to on really switching some maybe it. inning And any going have demand in

Liam Kelly

We So and split expanded it's market each. the a by new indication $XX about got $XXX George. half internal for million cardiac external of about market just a that million,

would X first expect now though because our what's that, the quarters expectations kind of of the on So market. of Because around been million different year. I in rectify ours. of of of key itself the is world. going parts might that up of customer through that it us general a under some takes Miltec $XXX the budgetary constraints, in unfortunately, ] to has [

will that we anticipated that's would outlined. that fourth quarter, imagine in our get to the guidance and our we that, back within just So plan original

Operator

with line Mizuho next question the Group. Anthony from of Your Petrone comes

Anthony Petrone

the a growth 'XX from I'll we when can and as Barrigel stick stack up guess the other couple and Barrigel I'll the portfolio? about how And overall know you flux anything average? $X.XX with SELECT in $X.XX. products ask well. then well, transaction, accretive know the perspective, you pediatric What at to I is margin of X I overall time is And in growing? it there a pipeline just of is actually in it is mentioned have of and there profile indications. and on growth I the margin share follow-ups. they also have as corporate the

Liam Kelly

Thanks, Yes. Anthony.

full teens the in Palette from what what expect $XX in profile is XXXX. low expect year and high So million it growth XXs in would The is of that's we XXXX. and we

Regarding That's should from. heavily on a lot That's on think of the is different all where that's very and it growth has of things the since you historically, market the of I coming where Barrigel we went where components through bring Barrigel. majority just your focus in -- growth came product the has a to growth, just I question moment on the the because the the value been it ago. been the of

portfolio to UroLift say. of margins as high-growth be accretive said accretive it were accretive most is we Teleflex. portfolio. gross the is high XXs, the or margins not high-growth Regarding within the it would accretive and only high gross familiar with, Not UroLift to And XXs as to in the accretive in investors should it's are of the the portfolio, Teleflex, I margins the only high-growth product, it's it's to the but to previously, the

it's So warranted that's part asset. EPS from for dilution because candidly for of a is an an question. expect the really nice gross price to why a $X.XX high a other formula we XXXX, margins still transaction. And then your multiple nice from really a it high margin perspective, perspective higher on And growth, of the

Anthony Petrone

be, Titan and go to GLP-X. maybe I'll Okay. follow-up And then would back the

headwinds end but the there may think at Bariatrics patients upper contraindicated Mounjaro, a of GLP-X. as gate out that of is to BMI Ozempic cetera, scale, the lot the to into et when the very course, the chatter in of about some take you come the folks or fold of be here, able those Of they near term, in talking folks from of are the space

a to Bariatrics? your tailwind, expand of plays do potentially some as think market are could So What the cycle this although, time? see the actually potential course, views on out GLP-Xs you you in for that take will it

Liam Kelly

as think of Anthony, and years, market. us impacts company. a bit will is my telling is market smaller, a away bring sleeve the bariatric at as technology our number I'm I've you to I've to the said it gastric to hard at reading So I'm short-term grow Titan might have as at to to take they in all and for coverage how next least a of also and being it's I a looking is on for to us away. to spoken for that into to It none the goal better focus, of from it honestly, a have used GLP-Xs the going surgeons little forever, team looking clinical that conduit perspective the spoken and spoken see have our And find the likelihood in impact I stay a but there's And gastric going are and surgeries. But where is it on sleeve a me the of number is Teleflex going GLP-Xs is to as on bariatric be I not to of as perspective, it a ample GLP-Xs, group. a impact that earlier, still expanding market, long-lasting which to you not unlikely. surgeons see it And be is afford have forever. Everything the as lot an because honesty. that the as to are that pharma pharma be able these to if take to prices way. the

our pocket was for we'll Teleflex, growth So have not. longer term, to Standard not happening with had has penetration the into whether the and air an going I market. And grow it's to still see point, it's what's GLP-Xs, we though the nice it or time we think start to even still going think by get have, driver to I be it that wanted would a

that more no plus of has more Teleflex's of think GLP-X. by broadly, portfolio XX% what I impact encouraged percent is I'm from Teleflex XX% --

of right hype you the of branding we are probably investors So components impacted But all down I right just company the it. what not see impacted. plus we because as now different about think know as as and our XX% can company break it now, GLP-X everybody

Operator

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

Unknown Analyst

on top what What the A bit question This line, bottom about little quick top potential revenue and both us the think do on on about of financials MSA. talked you line? for you is from lost but -- Samantha Matt. a on the

Liam Kelly

just -- to from clear, be MSA, agreement? the manufacturing the the service So

Unknown Analyst

right. that's Yes,

Liam Kelly

Okay.

as Tom it's an revenue. will early about in EPS in his prepared or the impact, lose $X So close said around From remarks, million $X.XX thereabout.

Thomas Powell

minimal. Very

Liam Kelly

Minimal, yes.

now -- around around minimal. So full that From year. year, gone know completely, revenue in year and it's in and will a $XX this most around million and EPS $X.XX there the fairly perspective, has was a in earnings an MSA full it's investors in

So that will modeling. their with help individuals

the year Tom, cost So I of us, close $X.XX. another I think around the think early there. which greater impact approximately to earnings share per costs in has then this Palette, $X.XX is, And obviously, FX or

Thomas Powell

That's correct.

Operator

line the question from of Bijou Bank of next Securities. Your comes with America Craig

Craig Bijou

a it the keep you your in so one ask know Liam, mentioned topic. to we've think while. talked MANTA. end, it I'll don't it Wanted we're in I at I remarks. to think about on prepared I

will in? adoption? of the some years? plan your then are it used Or the MANTA growth is over Was wanted how next your or on strength part that some couple the comments just So of of contribute better seeing in maybe there? just the to And recovery as see to long-term procedures MANTA you

Liam Kelly

Yes.

many any product. high-growth still a MANTA we still absolutely So us. honestly, uniqueness customers. And right for us be believe the type a we're the of driver procedural significant of multiyear bringing think to gaining We're we've is unique penetrating new will it from it it through still gives and don't because the a in portfolio. in the rebound quarters Craig. within it gone It's be market, product, for And benefit now. the I as strength we're It's some and us, a jurisdictions obviously We saw Asia. geographies X driver launching -- multiyear nice will

got some If -- the products you've within you Vidacare you've MANTA, look their really you've portfolio. it, nice got got at

You got got our you PICCs, Z-Medica.

You've got had the Titan along that a bump road. little

growth. now ahead Barrigel bump, and got Interventional whole that Urology of got and high but the Palette You within UroLift you've

it MANTA. really suppose feel its as it you're And doesn't I when about get good right, attention as it started used much So journey.

Operator

is morning. have this all we the time for That questions

you for call now your concluded. today conference Our for all Thank participation. is

may You disconnect. now

Teleflex (TFX) 2 Nov 232023 Q3 Earnings call transcript