TFX - Earnings call transcript Q3 2024

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Operator

Good morning, ladies and gentlemen, and welcome to the Teleflex Third Quarter 2024 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. of and President Development. Vice Keusch, Investor Strategy Relations Lawrence Lawrence?

Lawrence Keusch

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

Third Quarter on Conference accompany teleflex.com. XXXX Earnings this slides release call to and are available our at Call. website The press

a Those to our website. press As on from this refer replay wishing a be access replay available reminder, morning our can release the to will for details.

Liam and and Liam call today's Chairman, President will Officer. Officer; call Chief Executive President Vice are we Kelly, Tom prepared Thomas on to provide Executive Participating Chief Powell, then will remarks, and Financial and Q&A. and the open

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

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

Liam Kelly

discuss the guidance update results, and morning, an for morning's quarter good we everyone. third Larry, you, will some this XXXX. Thank financial and commercial On review our on provide highlights call,

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

softness to $XXX slightly were reflects guidance our business. Third OEM which our quarter million $XXX in million revenues below unanticipated

the than per earnings on strong driven by will higher performance, expectations, share X.X% adjusted notably discuss quarter which was later Tom call. year-over-year, margin a but decrease $X.XX, Third

review with I basis of revenues for revenue to on deeper growth constant let's the into Now are our quarter All begin referred third unless turn our segment dive will adjusted I third quarter. a an results. to a noted. that geographic otherwise rates currency

X.X% booked Americas familiar Americas, MSA were the points will increase growth which year-over-year. revenues basis year be million, quarter. approximately impacted $XXX.X that the aware Teleflex in revenues prior in XXX were with a third Investors by

$XXX.X driven utilization EMEA strategy improving by be X.X% to of revenues growth the availability to of geographic million The our Europe. continues targeted increased products increase Teleflex year-over-year. and in

performance impacted $XX.X to growth Asia. continued the a doctor We our X% soft Korea that the the due million, approximately by to ongoing doctor the by quarter increase Now in estimate Revenues strike. strike APAC was impacted turning were South of primarily year-over-year. The X%. impact

strike XXXX. doctor through ongoing, remains to the forward, remainder implying are Looking likely linger of the headwinds

Global to our the a will move for let's a by Now revenues third basis. be Category. discussion third quarter Commentary quarter Product Product year-over-year on Global constant of currency growth adjusted on Category

products. the expand portfolio usage our including Access. Of peripheral Vascular revenue and increased execute strategy note, digits X.X% Revenue products. strong to Access quarter, we In with access Vascular as our $XXX.X to continue growth, PICC million. Starting central drove to year-over-year of global our as anticipated, and broad Teleflex double increased

balloon an portfolio fourth the from $XXX.X In was broad to million, We intra-aortic the of well. quarter, contribution Moving pump performed increase Interventional. Revenue in in revenues increase XX.X% expect year-over-year. the an still quarter.

products X.X% Revenue million. laryngeal Anesthesia. to products, led was mask. hemostatic single-use increased and intraosseous Turning Growth to $XXX.X year-over-year by

our revenue In million, decrease a $XXX.X business, of was Surgical year-over-year. X%

which our quarter-over-quarter trends, strategy, kit surgeons double-digit by growth the our tough basis roll we stapler instrumentation to solid by year-over-year drainage, be following and in In out year-over-year our were ligation largest expected. led trends a proctor franchise Our on growth surgical and core Consistent with a buttress our continue franchises, in comparison but our encouraged portfolio. underlying of in chest strong by to and continued growth with the as quarter, improved tightened earlier offset we XXXX. launch

by to encouraged coming growth are the We growth sequential the see product the years. continue over driver and a as

million, For Interventional Urology, increase of revenue was XX.X% year-over-year. $XX.X an representing

component service. expected, to continued million XXXX anticipated, increased year-over-year impacted X.X% We in revenue of and OEM notified which Palette we Barrigel expected. to challenges by growth large site revenue they And integrate resulted this have was As a that been October in were was recently of Sciences. as supplying, was the loss the stream. by $XX.X vertically growth decided driven softer a has following by UroLift that have acquisition than office Life customer a of revenue

In addition, delay see to orders increasingly focus they started we inventories. have some managing as on now customers

the loss, fastest-growing Looking share OEM. microcatheters, segments market for our forward, manufacturing not we for are have of and thin wall any aware purposefully of capacity one added

we resolved XXXX. the softness revenue that that we growth serve, unlikely continued in OEM be be the markets the to should anticipate in but Given of transitory, seen growth would

revenue year-over-year revenue the primarily basis by year-over-year exit million. to Third XXXX is XX.X% $XX.X a declined due MSA to quarter planned of the on other in Medline. The December decline

quarter third That completes my performance. comments on revenue the

acquisition. update Starting our Turning Palette, updates. with commercial on to some recent most and clinical an

and sequential expectations. acquisition I owned the with X strong that revenue year, for to to track the U.S. to continues am in have Barrigel traction now continues gain report ahead pleased Palette We momentum. about Life Sciences of

and compelling our use. to continue urologists marketing clinical are Spacing seeing and convert data in success radiation to use of the strategy oncologists ease to due We Rectal Barrigel's and the of

indications our see number the opportunities to of potential NASHA expand Longer for product term, a platform. we

was in post-prostatectomy Rectal States and for prostate. enrolled Rectal Based ranges in XX%. population. across segmentation in patient a men patients a from for XX% Spacing and undergoing with medium surgical on reoccurrence, cancer following study Spacer in Barrigel low, removal as radiation first therapy Barrigel reduces hypofractionated the cancer the Barrigel safe site example, to this and with side The patient that recently demonstrate the study the groups option For are will radiation between to the of trial after one Australia. of endpoints prostatectomy study prostate radical effective The effects United high risk prostate

to are revenue quarter, performance increase increasing the our the third to The Due quarter performance the the for we updated for from third assumptions million to quarter. million XXXX strong the reflects million $XX Palette guidance million in in $XX previously. fourth $XX in and guidance to $XX

our Although UroLift stabilized yet to has Palette continues in exceed States. United not expectations, the

approximately from and assumptions year early our growth shortages the guidance pressure recent Given Urology UroLift, X.X% reflect typical the quarter and third X% in saline the In hurricanes XXXX Interventional turn, on impact quarter now growth our versus fourth QX. performance experienced the revenue year-end continued previously. seasonality total assumes full

alternatives Now the to the we from biggest the intra-aortic comments the X will experience pump our following use levels possible. the balloon market. care balloon relation moving primary to the activity quality in to care to letter seek on facilities away devices pump from opportunity in market the market. regarding transition continue States health There competitor United above be historic our a is recommendation, to if of competitive the incremental the our and United FDA agency's following no view Teleflex for change intra-aortic that safety pump and quote States, In May in providers health

expect continued solid of from also share based the past team the execution over on Asia We in years. couple gains

remain Regarding Union, place balloon the of until intra-aortic announced recently notified body our its suspension for in European for the competitor will pumps the the mark X, temporary primary July XXXX. that CE

shift Europe. We that there continue be in any share to assume will meaningful not

will capacity catheters market We closely are help for and note, pumps and ramped monitor Of to an vendor. to customers to arise. should that manufacturing be in respond needs a they successfully seeking alternative our customer have we the position

in We our accordance will expand capacity manufacturing demand will modulate continue to through carefully XXXX and with signals. our capacity

balloon dynamics prior no global account, into to to of market guidance. the various quarter fourth the Taking as for there our pump outlook compared the XXXX is change

business, of variations provide supports study that sleeve of the as SGS our our data pouch effective I clinical compared Titan consistent use we update. Titan propensity data. announced found with with the foundation staplers. a In the SGS clinical that safe In continue laparoscopic enables undergoing to traditional patients Finally, a of will review August, of expand for surgical providing gastric potential Surgical gastrectomy. and center procedural we retrospective fewer efficiency clinical and enhanced publication the This formation single Stapler significant matching stapler outcomes

as simplified also the MultiFire The hospitals statistically and especially that Titan operative Stapler SGS median and efficient associated use XX-day less which the efficiency data to important for point was is study was was OR to the Stapler nausea process staplers, stapling optimize This with an readmissions, The statistically significant. was time. significant. than related vomiting, SGS those Titan X which fewer showed seek time minutes of

FDA more discharged for creation The SGS stapler stapler specific this be gastroectomy single In within the MultiFire likely surgery hours and fire for as addition, Stapler to staplers. cleared were indication. XX Stapler the sleeve to and SGS only surgical to surgical continues in the and Titan Titan by compared cohort first be designed patients indicated after the pouch only

will to clinical expanded supporting with continue SGS Stapler We data. on focus Titan the

That completes remarks. prepared my

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

Thomas Powell

Thanks, Liam, and good morning.

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

XX.X%, partially of a point was manufacturing the margin the XXX acquisition period. prior impact raw increase The and the favorable was gross versus offset MSA inefficiencies continued of basis by cost the the and year favorable including primarily adjusted labor For price, gross quarter, to due termination inflation, year-over-year of margin and the and Palette increase materials. from

primarily reflects prior the the interest Net investments quarter, Palette in from acquisition in an flow-through year-over-year $XX.X operating Adjusted expenses net of grow funding the the in Palette driven the the margin, million third in quarter. year-over-year million and operating increase for impact was partially the Life $XX.X gross offset XX.X% expense increase increase was margin Sciences The and XX year totaled basis share The third by quarter. increase period. interest point year-over-year by in third expense inclusion the repurchases business. of the the of to in

Our European in in adjusted quarter. year and period. third The adjusted prior tax year-over-year year period additional enactment detriments quarter that Pillar benefits, arising X% the compared the rate due was of primarily third in tax nonrecurring of prior costs discrete the this discrete nonrecurring to is to XX.X% XXXX tax rate reform, not increase X for repeating the from our occurred

tax was the prior of and rate. Sciences Life line, dilution the year. bottom higher a of The $X.XX, per from termination the share share decrease of incremental per decrease related in year-over-year third Palette MSA adjusted At includes earnings earnings X.X% acquisition quarter versus and the the a borrowings,

continue and year-to-date Turning now sheet continue flow be results million Cash tax for compared payments. the proceeds and operating increase solid. levels inventory to months cash $XXX.X $XXX.X The million primarily inventories Cash a was from year from to favorable balance in net on plan. select a was the to in operations the as operating to flow partially cash in million to pension offset moderate the period. The our attributable cash activities provided was of decrease prior higher X from highlights. outflows $XX.X by increase we termination by flow

termination with end Moving which associated cash of approximately leverage cash, equivalents $XXX.X includes and sheet. was quarter compared the balance equivalents XXXX was end the at X.Xx. million, of our restricted Net million equivalents the to quarter, cash cash XXXX. year-end the $XX pension to At $XXX.X restricted as balance million as of third

$XXX under repurchase update terms of Under I the million will provide includes on our program. anticipate repurchase a the We August which program. authorization, near now XXX,XXX during third on million $XXX aggregate $XXX quarter of shares represent the ASR XX% ASR, the repurchased were the term. began the the which share in and accelerated completing share an X, million

remains have an In Anchored generation, to opportunistic strategy. capital strong by $XXX our repurchase of purchases. be left cash on we'll and important addition, our capital allocation to element we million disciplined future of authorization, return continue with currently shareholders our share

financial our updated for guidance to Turning XXXX.

this guidance range headwind XXXX from on X.X% to foreign second exchange. the of updated Our in million million discussed adjusted the $X X.XX% Italian earnings and constant quarter to call X%, previously. $XX.X Note, our negative currency changes a to impact assumes measure growth excludes revenue compared X.XX% of

including Interventional dynamics, year-to-date now our guidance fourth in Urology our OEM the Our both reflects performance quarter and lower-than-anticipated businesses. and revenue

stabilization As not seen mentioned we Liam previously, have yet in a UroLift.

the recent of In have early shortages billion. we basis, portion elective implying disruption in encountered billion X.X% to we addition, United of X.X% quarter $X.XXX the to saline reported on fourth expect of a range from GAAP southern to also revenue of procedures. On dollar cancellations growth and XXXX, States due hurricanes $X.XXX impact in procedure a in the the

measure, to true-up range, $X.XXX Excluding and specifically the reported X.X% of of impact for XXXX impact $XX.X of excluding dollar range we X.X% revenue a $X.XXX the billion guidance. the Italian anchors to in growth our billion. the revenue, expect GAAP of measure from This the revenue Italian XXXX million

$X the For quarter, your currency basis to XXXX representing of expected approximately of million million. excluding range million X.X% revenues for the modeling adjusted the X.X% purposes, includes an an on to assumption year-over-year outlook FX an constant $XXX growth of fourth $XXX in headwind in

points basis of the are to margin our low XX.X% gross range XX%. a XX by raising end of We to XXXX guidance

guidance of exchange reflects fourth the an balloon headwind The capital intra-aortic gross fourth from expectation our in our margin accelerated and the slightly to of is for performance quarter dilutive X operating quarter component the the from of equipment corporate XXXX sales first margin. pumps. in foreign months pumps Our increased and gross capital

disposables to margin sale profile in future the favorable more margin that of carry However, profile. a the catheters improve or we expect the with

of We XXXX. XX.X% low also our range a margin for are points end raising to by XX.XX% of guidance XX to basis the operating

business. guidance and offset grow Life margin flow-through Our positive by for and operating inclusion Sciences reflects the of of expenses the impact the restructuring investments the Palette to of gross

to million down $XX interest XXXX net as interest rate pay expense reflects for We now outlook net previously. million our to debt interest items well expect The line. reduction $XX versus approximately in the below Moving primarily expectations. lower as

the be expected to range of Our our the year-to-date of versus The rate tax and results XX%. expectations tax prior reflects the rate to XX% actual quarter. XXXX is now fourth for for for approximately XXXX in guidance XX.X%

earnings. Turning to

quarter. are now We performance $XX.XX the in end low of we third to range raising which per captures guidance earnings in be adjusted the XXXX to expect of $XX.XX. the by share $X.XX, turn, In a

average $XXX ASR Finally, reflects the we commenced quarter. shares during the are XXXX, XX.X for million million third assuming which weighted

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

Liam Kelly

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

our and proved year-over-year gross First, In diversified although we and encountered global third we footprint income. some the portfolio the revenue operating quarter, headwinds quarter, our drove beneficial. expansion increased in margin

on range. our of we adjusted execution, remain margins and continue focus the raised We to healthy, low our end XXXX guidance EPS

approximately including foreign Pillar our share XXXX of reflects exchange. note, year-over-year and the from Life taxes in Of adjusted tax MSA primarily Palette per and to acquisition X increased of headwind, Sciences, dilution outlook due the the earnings termination $X.XX the minimum

high guidance is currency adjusting earnings the of end the year-over-year After adjusted on headwinds, for constant growth at these share end guidance. per approximately low of underlying XX% X% and and

return to in million period. and of cash growth over up at allocation invest investment expenditures track The on leaves operations cash $XXX year million the full million operations in prior capital the Second, $XXX healthy shareholders for year of back over cash inorganic free disciplined We cash flow And repayment. flow executing foundation X drive opportunities, our to generation strong remain including capital debt net the in it $XX business, approximately provides XXXX with to $XXX from remained on growth, million into a and strategy, cash strong from in flow flow. for capital performance flow of XXXX. months

growth. our continue strategy will to drive performing expectations. we our durable Palette is on above to Third, focus

catheter balloon growth. is on opportunity pump We are executing solid intra-aortic and Titan and generating the

to pursuing transform will internal our engine and expanding portfolio on our continuing including M&A. drive growth on opportunities are our and execute inorganic to We innovation journey

That prepared concludes my remarks.

answers. Now, I call turn the and would the operator to like back to for questions

Operator

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

Patrick Wood

I've then So and got one follow-up. one

be of things -- on at congrats and by the it. around top cut looks things. one, first of side the math, mean, sales of on top my roughly OEM, cut The line that to But on margin kind line, gross the the half of I sales least

I the going the guys side? -- effect the I residual in half Is in think the right Or of that there is weather the and fair? assuming on? you prepared predominantly remarks something solutions IV am other mentioned is else

Liam Kelly

No.

X the got You've buckets.

them, misallocated just Patrick. You've

to look we to OEM that with our below obviously, a happy the the quarter, $XXX So in we at particularly performed out, margin the that of -- allocation per provided free business even earnings strong back the execute if on would range pointed of we're put million of OEM. guidance OEM, rest place look the and the the exception quarter, disappointed million, you say in were we expansion, good with us I on share we're with which were -- strategy. of with of modestly the cash will very impact But $XXX as well. We the the our flow, and performance capital performance

is vertical it with the vertical is and integration inventory to with there's surprise question, and the million. The approximately were is expecting. regarding approximately pointed your The of larger to in year, due OEM order order change is result integration we buckets, the and specifically Urology. not out, that buckets OEM, the Interventional the that low to pushout The total X at as a it's Patrick, the you full total management. the full Now driven majority $XX customer by the $XX factors. being impact One million end of in guidance, of impact as of year X a

The is of it Urology. other Interventional component to down

really our seen in of the and we're with and assumed better continues quarter, it, to the have very fourth had guidance trends that. While we not previous well, happy Palette UroLift perform performance

assume does $XX normal approximately year, and from impact account and and is saline also million. trends seasonality, IV assumes total book, not UroLift better full Palette reflecting shortage million the impacted but of guidance Patrick, updated the being hurricanes $X approximately procedures. QX of that impact impacting the takes The performance into in the by improved the Our

have So provided. of we the those impact million. excluding within full are the we buckets $X And quarter, the that And handsomely year. approximately had the would OEM OEM, was for the ranges in been

Patrick Wood

That's a lot detail. follow-on. of The

the things, a between times how buyback How for interplay On the about potential then doing side you'd a X opportunities few M&A. potentially bit our you the conference of sheet balance $XXX about about M&A, of think thinking -- obviously the bolt-on residual and are charted other bolt-on and little do you there? million

Liam Kelly

So the good is sheet thing shape, that is excellent in balance Patrick. our

is from we And right Our $XXX an which outstanding of operations performance million, prepared up flow we cash our us confidence you lot million, X.Xx. now as can a on free free do saw, net as that $XX cash through our leverage went remarks, gives is flow, both.

$XXX now and the still million M&A repurchase use chasing of have in we and assets environment plan to right we that share We there are in marketplace. intend out pretty The is a ripe left private our number opportunistically.

We are gave free be hard. investment board, And know community get We flow continue the be asset cash active. the cash when working flow free we don't was would to I to from on like we're that ops, just going know an you clear. I to but to

parts lab. business. point, call very medicine tuck-ins assets of call We're in the We're intensive cath looking are point, that -- the on emergency that focused care within other at and

remain disciplined, dilutive remains and our will family. focus into bring to that want share Teleflex the we on nonearnings We per assets

with of returning that on intend in shareholders. repurchase would share So part capital allocation and continue to active to the our the area capital also

Operator

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

Matthew O'Brien

pretty areas or because a at it from still weakness, then into Maybe same I the contained are to just then ASC going is follow-up. OEM point. really just question. half are more pressure, to that either of hospital this small Or starting for just And first last to it you And feel office year? Liam, the still But the the physician's do UroLift, have office? physician's in other business $XX million-ish at see spread next little a you clarification bit the of is

Liam Kelly

Yes, Matt .

customer So surprise. with was been majority the the regard said, integration making of million, expecting a this for number a I year. will as customer QX the of from years, vertical and through to of That that by next in-house a OEM, ours. not We've who of business candidly it be to continue this of were it we $XX brought particular is large is

will unfortunately, continue. that, So

management The we'll of on destocking, we'll and as go year. through make our a monitor that closely that with determination we inventory customers, the the

The to incredibly regards see X% in happy it's that office this office side That year in question, downward reimbursement and impact still service be end of changes. of of Obviously, another final be end reimbursement side of trends Matt. and the is service, on XXXX, UroLift the into office we'll those challenged. year, side the your the reimbursement we're going of With the in the have will rate will in approximately reimbursement the for service. of to

show some So the it begin to end at stabilization. that, hopefully, of will signs of

Matthew O'Brien

and Got great And want error to guess hoping a I doing here. and year PICCs million 'XX guidance got then was like I this, about then headwind, some think better but well. you've are doing next doing $XX it are I because bars Barrigel's just other don't sounds about OEM for how it. things

how the I'm those can you plus top with think just to business operating line the be if away next factors the going mid-single all about about those what digits. back might think curious XXXX? underlying saw in margins can to And going influence of where So year to growth MSA we you get for

Liam Kelly

the is this quarter obviously, Matt, call. third So

earnings obviously. next So get QX which is we'll call, the guidance address XXXX we to our call, when our

if call. mind, that earnings to get when that address I'll we So don't you

Operator

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

Jayson Bedford

a numbers the been dynamic. couple on a thrown here. just around OEM few Maybe There's

lost guess OEM what's Just, annual And revenue been of mentioned. I the if I level it's the customer? apologize

Liam Kelly

Jayson. okay, that's No,

full of in of it coming the impact majority basically -- an the the our with from it's integration. on vertical guidance million So year $XX

in number. total from with We had -- so of $XX we of million QX year QX, full million to that's come So saw $X that a the $X on the OEM. it in another specific those million

Jayson Bedford

Okay.

And on all? the you that you the quarter dynamic, balloon in call your contribution XQ? Okay. second just kind on laid of have any underlying And at assumptions pump see did changed out

Liam Kelly

assumptions changed. underlying our not have So

will who As pump have FDA, be from we from a a competitor got advising has move aware, investors seek and notice the an their to away customers alternative.

Our be CE further been U.S. continues the quote to The extended on focused to then in it suspension, volume strong is change July and since only has XXXX. the U.S., the has been mark of that competitor

significant We EMEA. still anticipate of do Americas. a in come the that believe upside not in change We the majority the will

in uptick should it that rate you it in we So QX anticipate did hit with changed pumps, on will associated an is see anticipated growth to Interventional expectations. nothing line QX, the our and an balloon previous not We in our impact volume pumps has the that with in in the expectations QX, specifically QX. of in see Access also

Operator

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

Shagun Singh Chadha

I And guess upside Europe a to maybe year? you provide for and puts why will couple thoughts that in that QX? updated your provide next of any you even follow-ups. outlook IABP, XXXX then can into also don't and think opportunity any takes on On

Liam Kelly

in a anticipated call fourth balloon will QX was on of QX, so that to by said So revenue in large And million. our nothing intra-aortic outlook QX quarter. has it Shagun. into pumps, that we excess our the called of changed proportion the we call the up We hit the approximately call, $XX that million from down in $XX

Matt that our As half XXXX continue that and I our either. the pumps we'll the will impact first we get the we'll be opportunity earnings will the changed regard XXXX, go assumption said be. nothing of we of outline to balloon QX And with what call has into when as anticipate earlier, to us guidance anticipate in we to through in get to we obviously, and

share continue -- take -- much of Pacific. Asia and said, in We continue Europe, take to don't already we we in as we to an expect continue within I share impact,

Operator

Our comes Jefferies. of question Matt from with next Taylor the line

Matthew Taylor

on I did understand your things could forecast. order competitor, challenges. want the much how and up terms they just upside to you're different continue pump that of the just about to see already flow the you thinking in how seen follow trying if get predicting get you've And guideposts extended, balloon and to

on seen depending come just about upside that little more year So predicting you've date? you're through on how And thinking there? a happens color next what orders to the the

Liam Kelly

So as the competitor of I said see year. that half are the we quarter that of little anticipate still earlier, the be also, the excess fourth market a in And we of said million. next in I $XX as earlier, orders out the will through first

variable, represent the if is they would the Now longer opportunity. Matt, that that than out of a because longer-term stay market

the So that's really that yard assess stick, and through. we'll as we go

QX half first they be be have have executing quotation back Obviously, they will have we'll order out through the through QX. until -- continued rates pardon strong continued continued into peaked and the and market So least opportunity. right against that but QX. QX, the of at the they The XXXX we the anticipate rates of of end at strong me,

at anticipate for of opportunity Teleflex. would we the least year half next would be first So through an that this that

Matthew Taylor

from And that's Okay. I just Solutions IV so the and just Do beyond you've Can think you a how you you can ask temporary from on seen weather the spillover impact? talk Or expect QX? any about impact short solutions. do far? much IV

Liam Kelly

temporary we now hurricane So impact. and has in is short-term the through rebuilding it's a going And what obviously, are reading, we're people -- passed from Florida. to be down believe

So that was the impact in the Southeast.

saline that regions. some Central We Pacific. from From know and to do West believe the in the particular because normalize from saline, in we it's Europe seen in and their of that product plants moving in Asia we've is impact the an supplier going of

incrementally should it it to much be So see we through have go the as quarter. better and fourth that get is beginning we're better intel that that already we the

when Obviously, make use a for urology procedure And that that in order goes you've and in a fill you it through to the do done. of procedures, saline -- the because to UroLift procedures, lot of significant bladder, you use that's sure getting obviously, in got is procedure flush particular, saline well.

So in the one that procedure heavy is a user marketplace. of is our that saline

Operator

the next Biegelsen Larry line with comes from Our question of WF.

Larry Biegelsen

to Tom, How this and could we one $XX pay -- financial like question think good opportunity you much interest about for much a one debt seems expense guiding I reduce follow-up. how million to have down should we you. you're next relative year? how And year. It do the

Thomas Powell

flow business potential To organic/inorganic cash to extent with opportunities going the of consider think debt we're potentially remaining use to pay way the as grow with to cash surplus along the retire authorization about got is investments prepayable a our that balance payment. then repurchase use would of shares, in share we of free debt. Well, or the to our down we've beyond the cash kind

X looking those we're equations next to So really balance year.

Larry Biegelsen

you you. big Got curious it. that's in for early, hear a And about product I'm has to space been growth that then, for you the a important but the approval given competitive it's how intraosseous know a know Liam, just announced I dynamics you're for guys Competitor guys. pretty driver thinking I strong device product of that, yesterday. new

Liam Kelly

and It the to the Larry. device marketplace. market able loyalty the Yes, to within customers. intraosseous we're efforts move ago the the were X.X previously The marketplace. competitor in perform has the incredible us. and was of their is continued in marketplace first product very for in well This we Obviously, over years has aware dynamics competitor combat to

to the product innovate coming idle, format the very hospital on to States, order We our use tray for that recently, the launched of has in gone we and disposable to continue in very, to market, competitors United launch a haven't that the just we product. market And convert in knowing and ease been intraosseous a continue well.

still monitoring have there, we're think So we very differentiation significant that closely. we out and situation the

Operator

Our next Anthony from question with Mizuho. comes Petrone

Anthony Petrone

I to on A and now it integration full one just and like it the on through then couple the an think teams UroLift. And -- feels selling bag. in I integrated, they're Asia on those position end maybe urology and be know Pacific. XXXX, a of are now goes Palette sales actually a update

of of you announcement Barrigel Barrigel? we one synergies that maybe on on integration what the Asia for both have that portfolio? And Pacific. prostatectomy today look with post-radical the opportunity ahead, I on update And an maybe as seeing UroLift. on So either and And sides one means or are

Liam Kelly

the for question. Anthony, Thanks, Yes.

done. So happier Palette almost much of a and is we be year, pretty the it for couldn't performance We've now of owned the product. integration the with

As again call to Palette. we up guidance a for once were we announced today, position in our

Sciences. And year you at investors $XX $XX the margins to better we're and on recall, than expecting the guidance gross know, the actually range for we million Palette If to are Palette $XX as million, margins of million $XX on million Life a began now UroLift. gross

to out that So much getting done. little is the cross-training in pretty anticipate fourth the done. of bit We're finish but a integration quarter, we

sales more halo the model now we effect in acquired actually build Palette into seen to selling actually have on for And didn't the has a We our Sciences. that been side we've out UroLift Palette because Life Barrigel the reps product. when the we halo there product

UroLift performance driven So on And the be service. was when obviously, said to of the I challenged that Palette answering continues earlier, as Matt's in question, I office has side. side increased

prostatectomy, radical which Anthony. other post question, your part of So was the

the prostatectomy, Teleflex men a cancer portfolio. and from to XX% that for is opportunity go significant XX% this through a Anything for So the of Palette radical returns.

around market million $XXX about XX% additional you of opportunity. a the market midpoint, take or of So an if

because not the is applicable intriguing other application. area compound it is of us NASHA be only opportunity will how this What will of very about this works, that this work will that technology spacing particular technologies in to Barrigel the be in spacing and

that, the years enrolling expanded of the million to really that looking X.X We've get spacing through the encouraging. study, writing radical to getting forward patients it if the indication. today patients market access And therapy that $XXX don't have first that us to and to we're you're between indication It radiation addressing we going the post So prostatectomy. spacing all about FDA, up will submitting enrolled that's patient. take feel to to

Operator

Our the with Newitter Securities. comes from of line Truist Richard

Unknown Analyst

It's in for Ravi, Rich.

on So M&A. IABP, one on two I have one questions,

us I is consumable? of see $XX you have million And out what you just with portion you help that consumable one, guess that fourth IABP, capital stream? do sight the cohort, quarter. So first tail kind long versus in line that of of the think the Could about what this of of on

Liam Kelly

Yes, Ravi.

the States. I over that a vast majority you follow of of in tell is capital will time. United that The So will the consumable period

look catheters, overall pumps to your the other is of the answer half global markets, Half you question catheters, and the of it's of what balloon to and at the If part it pumps market for intra-aortic follow. would is as half half. approximately market and

using of Most the is will we manufacturer's majority I forward, the catheter as fiber optic. States, think United look with compelling. in of that the the pump today manufacturer's customers use the advantage them

Teleflex If with you that fiber Teleflex to optic you available a capacity have use you. catheter pump, a

a the use advantage. you competitor's If optic lose pump, catheter that fiber competing our with you --

will So our we think use it's pump. that compelling with customers our catheter

Unknown Analyst

pushed FDA seems given tail like bit the would And little managing presumably, secondly, kind on the it is the M&A. consumables the out? Great. of way on be more the this, a And then

a the sounds what than you It absorb said dilution at mean in non-EPS You Do here little a of bit the make be little might bit picking that a up that past. more bit now? dilutive like bit. look might M&A earnings as a your tolerance valuations is EPS or little the talked dilution guess, little be assets. lower repo a sounds boost and Does for it about, kind we opening neutral? M&A to different off and It market I

Liam Kelly

a think little back I I Ravi, with environment, bit valuations the going So up. push would

have for with also, last are of -- sink secondly, least the I it's with to our think our equal amount markets and that rates, We're are margin into accretive time not takes in public the op change the been private finally line the the in our growth. top accretive Obviously, gross to a is margin interest X-plus in that EPS valuation, for reasonable bring I months. that continue at more we'll and be and modulating And time. that not looking markets. And over what will accretive, in the to what's obviously, seeing improvement are to a in get we're It think accretion while a that if our change. is to, happening for to compelling assets that doing lot asset marketplace valuations an criteria dilutive. doesn't we're looking assets for to in

I are there think we're -- what I'm assets trying all also EPS to criteria that those say meet are are -- and is that dilutive. not out there

Operator

question of Citizens the with Turkaly comes from line JMP. next Dave Our

David Turkaly

geographically? is the primarily just business OEM the I confirm, in to Americas want

Liam Kelly

the the revenues That is majority of Americas. yes, within Dave, is the vast correct.

David Turkaly

rate procedures for? And I us one either wondering of used MANTA. wanted on to I you're if growth the give the like ask sort that's update what sort maybe underlying seeing in was and that's an you of how doing, could on

Liam Kelly

Yes.

So It's foreclosure TAVR in on used penetrate single-shot the the MANTA device out the that that's procedures marketplace product. all, only first there procedures, to of is EVAR. and continues so a market. on large it's the The

been the favorable. EVAR of sensitive noticed of Over equation. we And TAVR, the that the within EVAR year, as is same as lot on penetration that the what doing in pricing now the penetrate we've TAVR market house as we past side side more EVAR. continue our have to actually a has therefore, price focused the isn't And

continuing So perform. and to we penetrate, Dave, continue the is product to

Operator

Our BofA. from with next comes Bijou of question the line Craig

Craig Bijou

then one on and had follow-up IABP on I OEM. a

orders the they or pumps? seeing -- you you're from if orders replacement competitor are for I'm the normal their life actually or into if So cycle curious have for that have just those visibility seeing are useful reached what QX, pumps? Liam, hospitals you're you So the switch a a away assuming normal whether for

Liam Kelly

number, run -- away uplift normal business, accounts product. the Craig, our within we conversion. really converting pumps the driven. are recycled own you but being normal Well, seeing from is also of we the competing seeing the But have are the completely for a the That's our

I think we that's that. are and seeing your question,

Craig Bijou

guess wasn't I your is sorry, cycle. -- clear. The Yes. more on replacement it question competitors'

is winning? from you hospitals you're Are [indiscernible] cycle? that incremental the just revenue moving are your orders are competitor -- So or you natural expecting, the replacement in that that away coming from coming that

Liam Kelly

That's Craig. fair,

about Sorry that.

seeing come we're And then less seeing be swap also we're seeing X out replacement than is both. We're up So the replaced. what old. pumps completely in We're replacements. pumps are systems getting instances, some as years that, to

Craig Bijou

That's as million helpful. on back it. out you this that think mean would quarter OEM. I growth X%. follow-up the talked Got I then if been And about, a $X you just have

to digits? mid-single Is Is how way should think or of -- that So Just that think of the to it OEM single growth we the slow about underlying business. normal when about growth business? any digits? it high

Liam Kelly

Yes.

digits. and in QX of the is have double-digit integration. business is and was years going OEM an a outlook the well, accounts. get in to very integration we there impact the for next disruption, in still number obviously, is The growth the into you single gotten have The mid- seen So vertical the converted business have high where underlying We've that of team they've the executed supply chain When particular. the to growth year once beyond normal XXXX. positive

doing really the We're well capacity. in we microcatheter space, and have

of vertical onto even plants. have extensions this we both good capacity, thing the put with integration as we X -- So

build orders, as to we customers book for So of orders, order now new those order chasing our the team there projects in some up is doing into executing the XXXX. out against head R&D key

and XXXX, growth digits a you'll get for mid- year high So normalized see low in Craig, to once normalized and growth And you OEM single be a business to that sneak the beyond. would the to into 'XX good through doubles. in the

Operator

next question Our of the Polark Research. from comes line Wolfe with Michael

Michael Polark

customers? big by and products? customer. Do that themselves? the I'm for then being up a Is after the is customer product this decision Sorry, customer make want you will in-sourcing risk this better you for to other customers surprise. other is reason And category this this why behind what this in-sourced, a who OEM. question, bit is this understand to a this why make complicated moving and understand for Sorry but little I there better the do other that's better on to this the this -- customer do with And How hoping work I follow exit? you Can product this for? I now for

Liam Kelly

a this this component question. in-source. it only it is this This product, your of many customer Mike. making to we've it's for decision product, specific question, a many, we And make a fair for and a it's years that product a Yes, customer, is that to branded and significant as sells of the answer been part

did question they of is why part move it Second your internally.

issue complex the capability bit are felt themselves make the in-house. unique. from have product this and particular it they're assumption moving they our absorption pretty that Our products the plants that their that their was we within they of could is have plant in this It's by complex, they do an not addressing company and pretty little and microcatheters, that team This product. Most one inside, therefore, of a complex for extrusions.

Operator

the Our Mike of next question comes from Needham. with line Matson

Michael Matson

Just one on Titan and bariatric surgery.

but So are you signs doing good Any surgery And while. with procedure I there? been it's seeing what know better, of regard bariatric product hear volumes? to the stabilization a declining for to

of the you declines think that think start as -- you it do lap maybe off? level to market that kind So procedures generally, will we the Do sorry. those start to just

Liam Kelly

the that think decline. we We're call today today study it really market with of is the we So look What Mike, for on $XXX modestly, better. but that out is rate announced us. matter will doesn't product slowed penetrating demonstrates has that level a But there candidly, think clinical I off. the million in market they're a still the decline marketplace see the as in that I you forward,

a hospital So faster. the quicker. staplers, people for the because about after of exiting line also the technologies, we delta of single group compared efficiency and get day much There's out the patient hospital it's it's XX% a a other our to

you to operating room which use to reduces technology can make to a that's it as appreciate. decision key for So hospitals driver and as time,

grew it and stabilize, So or we're but within it quarter-on-quarter. does to really matter strong double whether doesn't grew will it the Titan quarter think sequentially -- us I not, digits

through it growth And years. a be encouraging. is of will that driver number next for So us the

Operator

comes from line King. question of CL with next Our the Kristen Stewart

Kristen Stewart

to little gross the performance. a margin on wanted just I bit focus in

gross year XXX guidance points for implies XXX your year. for full full basis margins think to I the the up

points. I think was basis the about exit XXX of MSAs

gross should about check on terms to wanted kind ahead, any takes there puts think of math that. performance the Just And that we margin are year? in think next for as we then of and

Thomas Powell

to sure. our close XX%. to have going that year margin did have to away this fourth our will we a in a be in your an it run Well, MSA of as gross guidance point, come XX.X% quarter The impact, to range impact raised will the Well, and of rate.

margin we So expansion still restructuring looking to savings have cost through do programs. had as initiatives through year, we're drive that is positive been all seeing it what to seeing what we're it We from moderate and inflation think was been. about combination using continue offset what of still from next to pre-COVID, really than to inflation. moderate. start a but price improvement It's And higher we've that of to

on get year the gross with that past of we we're the headwinds from loss to margin this Palette. saw we're going So -- of some

Kristen Stewart

with should about And How that? about think the intra-aortic balloons. then we opportunity the just thinking

Thomas Powell

sorry, the MSA, of misspoke. the just I I'm loss

Kristen Stewart

of flowing back the should in to Sure. Or just business? bottom then intra-aortic to the about opportunity at likely to looking upside what through line? about as you that will think kind of How XXXX. and guys some you into the balloon thinking see the And just pumps with we opportunity there look we're reinvest

Liam Kelly

is opportunity longer on for depending with at as that, that we'll XXXX. from going is going as assess the we're we half we it potential the least So at of than what go outcome us have that but be look a goes through. to is it, first said as There the the FDA earlier, I -- to

like would approach that's also and to it it of through a future. to regard, try With of would to it see flow that good opportunity. balanced into like think take earnings. And some we with portion growth we invest take for would I the to we that But a

Operator

will over Q&A I the for remarks. our Lawrence to closing turn concludes call back That Lawrence? now session.

Lawrence Keusch

concludes us Thank Inc. on Teleflex that everyone joined the Thank you This today. you, call Mark. the to

Conference Quarter Call. Third XXXX Earnings

Operator

you That for concludes call. Thank today's joining. all

now may disconnect. You

Teleflex (TFX) 31 Oct 242024 Q3 Earnings call transcript