Teleflex’s Third Quarter Numbers Are In

Wayne, Pa.-based Teleflex Inc. reported its third quarter financial results on Oct. 29. The quarter ended Sept. 27.

Third quarter net revenues were $443.7 million, a decrease of 2.9 percent over the third quarter 2014. Excluding the impact of foreign currency fluctuations, third quarter net revenues increased 4.2 percent over the year ago quarter.

Third quarter generally accepted accounting principles (GAAP) diluted earnings per share from continuing operations increased 7.6 percent to $1.27, as compared to $1.18 in the prior year period. Third quarter adjusted diluted earnings per share from continuing operations increased 1.9 percent to $1.60, compared to $1.57 in the prior year period.

“During the third quarter of 2015, Teleflex’s North American business units continued their strong performance,” said Benson Smith, chairman, president and CEO. “The investments we have been making in our key North American strategic business units are yielding returns, as our revenue growth was broad-based, and included volume growth of over 3 percent, increased revenue from new product introductions of approximately 1 percent, and the contribution from improved pricing and recently completed acquisitions, which together total approximately 1.5 percent. In addition to North American strength, constant currency revenue growth in Asia returned to double-digit levels. However, our top-line performance this quarter was adversely affected by a year-over-year revenue decline in Latin America due to macroeconomic factors impacting the region.

“In addition, despite softness in Latin America and significant foreign currency headwinds, the company continued to grow adjusted earnings per share thanks to operational initiatives and a reduction in our tax rate. Looking forward, we anticipate a strong close to the year from the perspective of constant currency revenue growth and adjusted earnings per share, as our facility footprint restructuring remains on track.”

Vascular North America third quarter net revenues were $82.6 million, an increase of 7.8 percent compared to the third quarter 2014. Excluding the impact of foreign currency fluctuations, third quarter net revenues increased 8.6 percent compared to the year ago quarter. The increase in constant currency revenue was largely due to higher sales volume of existing products.

Surgical North America third quarter net revenues were $39.6 million, an increase of 9.6 percent compared to the third quarter 2014. Excluding the impact of foreign currency fluctuations, third quarter net revenues increased 11.1 percent compared to the year ago quarter. The increase in constant currency revenue was largely due to product sales resulting from acquisitions, an increase in new product sales, price increases and higher sales volume of existing products.

Anesthesia North America third quarter net revenues were $47.6 million, an increase of 0.9 percent compared to the third quarter 2014. Excluding the impact of foreign currency fluctuations, third quarter net revenues increased 1.6 percent compared to the year ago quarter. The increase in constant currency revenue was largely due to new product sales.

EMEA (Euope, the Middle East and Asia) third quarter net revenues were $120.9 million, a decrease of 14.4 percent compared to the third quarter 2014. Excluding the impact of foreign currency fluctuations, third quarter net revenues increased 1.1 percent compared to the year ago quarter. The increase in constant currency revenue was largely due to new product sales.

Asia third quarter net revenues were $61.9 million, a decrease of 0.2 percent compared to the third quarter 2014. Excluding the impact of foreign currency fluctuations, third quarter net revenues increased 11.3 percent compared to the year ago quarter. The increase in constant currency revenue was largely due to price increases, product sales resulting from acquisitions and higher sales volume of existing products.

OEM and Development Services third quarter net revenues were $39 million, a decrease of 0.6 percent compared to the third quarter 2014. Excluding the impact of foreign currency fluctuations, third quarter net revenues increased 2.5 percent compared to the year ago quarter. The increase in constant currency revenue was largely due to an increase in new product sales.

2015 Outlook

Teleflex narrowed its full year 2015 constant currency revenue growth guidance from a range of 4.0 percent to 6.0 percent to a range of 4.7 percent to 5.5 percent. On a GAAP basis, revenues are expected to decrease 1.5 percent to 2.3 percent compared to the prior year due to the unfavorable impact of foreign currency fluctuations. Previously, the Company estimated that GAAP revenue would range from flat to a 2.0 percent decrease compared to the prior year.

In addition, the company narrowed its full year 2015 adjusted diluted earnings per share guidance from a range of $6.10 to $6.35 to a range of $6.20 to $6.30. Consistent with management’s previous expectations, foreign currency fluctuations are anticipated to negatively impact adjusted earnings per share in 2015 by approximately 15 percent. Teleflex has updated its full year 2015 GAAP diluted earnings per share from continuing operations range from $4.23 to $4.38 to a range of $4.53 to $4.63, reflecting an expected reduction in 2015 forecasted restructuring, impairment charges and special items, net of tax.