WAYNE, PA — Teleflex Incorporated (NYSE: TFX) recently announced financial results for the first quarter ended April 2, 2023.
First quarter financial summary
- Revenues of $710.9 million, inclusive of five extra shipping days year-over-year, up 10.8% compared to the prior year period; up 13.2% on a constant currency basis
- GAAP diluted EPS from continuing operations of $1.63, compared to $1.63 in the prior year period
- Adjusted diluted EPS from continuing operations of $3.09, compared to $2.88 in the prior year period
2023 guidance summary
- Increasing GAAP revenue growth guidance to 4.65% to 5.90%
- Increasing constant currency revenue growth guidance to 5.00% to 6.25%
- Lowering GAAP EPS from continuing operations guidance to $8.14 to $8.74
- Reiterating adjusted diluted EPS from continuing operations guidance of $13.00 to $13.60
“We had a strong start to 2023 as our broad business momentum exiting last year continued into the first quarter” said Liam Kelly, Teleflex’s Chairman, President and Chief Executive Officer. “In the quarter, we drove revenue growth in all global product categories and expanded our overall margins year-over-year. We also executed against our new product launch objectives and continued our integration of Standard Bariatrics. Our first quarter performance keeps us well-positioned to deliver on our updated financial guidance for 2023 and on our long-term durable growth objectives.”
NET REVENUE BY SEGMENT
The following table provides information regarding net revenues in each of the Company’s reportable operating segments for the three months ended April 2, 2023 and March 27, 2022 on both a GAAP and constant currency basis.
| Three Months Ended | % Increase / (Decrease) | |||||||||
| April 2, 2023 | March 27, 2022 | Reported Revenue Growth | Currency Impact |
Constant Currency Revenue Growth | ||||||
| Americas | $411.9 | $378.0 | 9.0% | (0.2)% | 9.2% | |||||
| EMEA | 143.3 | 136.9 | 4.7% | (5.8)% | 10.5% | |||||
| Asia | 78.7 | 69.2 | 13.8% | (9.0)% | 22.8% | |||||
| OEM | 77.0 | 57.6 | 33.5% | (1.0)% | 34.5% | |||||
| Consolidated | $710.9 | $641.7 | 10.8% | (2.4)% | 13.2% | |||||
NET REVENUE BY GLOBAL PRODUCT CATEGORY
The following table provides information regarding net revenues in each of the Company’s global product categories for the three months ended April 2, 2023 and March 27, 2022 on both a GAAP and constant currency basis.
| Three Months Ended | % Increase / (Decrease) | |||||||||
| April 2, 2023 | March 27, 2022 | Reported Revenue Growth | Currency Impact |
Constant Currency Revenue Growth |
||||||
| Vascular Access | $177.7 | $166.1 | 6.9% | (2.3)% | 9.2% | |||||
| Interventional | 116.9 | 96.9 | 20.7% | (2.6)% | 23.3% | |||||
| Anesthesia | 93.3 | 86.9 | 7.3% | (2.6)% | 9.9% | |||||
| Surgical | 99.0 | 89.7 | 10.4% | (3.9)% | 14.3% | |||||
| Interventional Urology | 75.4 | 74.9 | 0.6% | (0.3)% | 0.9% | |||||
| OEM | 77.0 | 57.7 | 33.5% | (1.0)% | 34.5% | |||||
| Other | 71.6 | 69.5 | 3.1% | (3.3)% | 6.4% | |||||
| Consolidated | $710.9 | $641.7 | 10.8% | (2.4)% | 13.2% | |||||
- Depreciation expense, amortization of intangible assets and deferred financing charges for the three months ended April 2, 2023 totaled $60.7 million compared to $59.0 million for the prior year period.
- Cash and cash equivalents at April 2, 2023 were $264.1 million compared to $292.0 million at December 31, 2022.
- Net accounts receivable at April 2, 2023 were $410.0 million compared to $408.8 million at December 31, 2022.
- Inventories at April 2, 2023 were $614.1 million compared to $578.5 million at December 31, 2022.
2023 OUTLOOK
The company raised its full year 2023 GAAP revenue growth outlook to 4.65% to 5.90%, reflecting its estimate of an approximately 0.35% negative impact of foreign exchange rate fluctuations. On a constant currency basis, the Company raised its full year 2023 revenue growth outlook to 5.00% to 6.25% year-over-year.
The Company lowered its full year 2023 GAAP diluted earnings per share from continuing operations guidance to $8.14 to $8.74. The Company maintained its 2023 adjusted diluted earnings per share from continuing operations guidance of $13.00 to $13.60, representing growth of (0.5)% to 4.1% year-over-year.
Forecasted 2023 Constant Currency Revenue Growth Reconciliation
| Low | High | ||
| Forecasted 2023 GAAP revenue growth | 4.65% | 5.90% | |
| Estimated impact of foreign currency exchange rate fluctuations | (0.35)% | (0.35)% | |
| Forecasted 2023 constant currency revenue growth | 5.00% | 6.25% |
Forecasted 2023 Adjusted Diluted Earnings Per Share From Continuing Operations Reconciliation
| Low | High | ||||
| Forecasted GAAP diluted earnings per share from continuing operations | $8.14 | $8.74 | |||
| Restructuring, restructuring related and impairment items, net of tax | $0.60 | $0.60 | |||
| Acquisition, integration and divestiture related items, net of tax | $0.19 | $0.19 | |||
| Other items, net of tax | $0.10 | $0.10 | |||
| ERP Implementation | $0.05 | $0.05 | |||
| MDR | $0.61 | $0.61 | |||
| Intangible amortization expense, net of tax | $3.31 | $3.31 | |||
| Forecasted adjusted diluted earnings per share from continuing operations | $13.00 | $13.60 | |||
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