Teleflex (TFX) 23 Feb 232022 Q4 Earnings call transcript

Good morning ladies and gentlemen and welcome to the Teleflex Fourth Quarter 2022 Earnings Conference Call. At this time, all participants have been placed in a listen-only mode. At the end of the company's prepared remarks, we will conduct a question-and-answer session. Please note that this conference call is being recorded and will be available on the company's website for replay shortly.

And now I'll turn the call over to Mr. of and President Development. Vice Keusch, Investor Strategy Relations Lawrence

accompany Teleflex welcome quarter follow through presentation press call. Good that available webcast to to Please and Simply the the at the our release call Inc. we website as the on slides viewers The morning everyone own. note call. the presentation to proceed slides fourth along teleflex.com. their are with conference XXXX and ability have this advance earnings on

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

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

we of some Teleflex the will events you posted the I'd the conference website. like forward-looking slides matters as statements Before to call remind of the the future Relations section regarding in contain in that begin outlined Investor discussed to

our cause in include, included materially our materially. We factors that today, events in are in forward-looking or our Form fact and subject such as may limited and and you are results which but press website. differ differ wish to SEC to, in XX-K nature to events could actual or be statements release that with risks filings well not are factors to on accessed actual the referenced as caution can results our uncertainties The

concerning and subsequent to with Management occur not hear business provide these is commentary disclosures management this quarters. conference make trends this may insights statements performance. will community During the additional investment intra-quarter you providing call, in regarding

will over I turn said, remarks. his Liam to that call for the With now

Thank everyone. Larry and good morning you,

quarter, prior agreement transition of of divestiture manufacturing $XXX currency the were assets revenues Compared basis. currency Teleflex and year revenue growth our increase to and an X.X% Respiratory impacted reported decline quarter, period, associated underlying supply of negatively of a the million, on fourth prior growth the a X.X% with the on under implying a in constant year-over-year basis our For X.X% X.X%. by constant

Adjusted earnings despite quarter, business approximately growth reviewing during chain unexpected Surgical per $X.X subcomponent In fourth an to the revenue our year-over-year currency issue by remained in $X.XX. headwind quarter constant in declined an that share X.X% durable million the quarter. supply resulted our

of built the solid been The in to Teleflex's the has target performance demonstrate benefits portfolio to quarter patients. critically-ill of purposely that continues the diversified care

double-digit Surgical December as quarter product with currency strongest we Interventional year-over-year generated our a on during month of fourth continues the the representing revenue OEM monthly to and constant categories health normalize. witnessed basis growth note, sequential Encouragingly, Of improving growth utilization the care quarter.

growth continues results Asia for a generated Teleflex. perspective, and strong From be geographic driver an important to

Raw material our short quarter. supply fourth challenges Tyvek headwinds impacted continues and and primarily in business remained the be and inflation has chain during businesses. supply for to Interventional Vascular the

constant divestiture for products year currency through utilization assets less as healthcare revenue and the Respiratory one full to accelerated. Turning day, XXXX. was Teleflex the and for XXXX adjusting shipping year the of for demand growth X.X% When the of improved

momentum portfolio revenue high-growth across majority growth maintained drivers. the Our of

year. XX% to for year-over-year Although remainder in in show constant the revenue continued high-growth constant the growth products currency portfolio gains X% currency healthy UroLift declined XXXX, the approximately of with

improvement period, XXXX, strong and approximately core a Moving revenues. durable the prior positive global revenue execution, as in product X% durable price. year currency In reflecting basis to compared new volumes, procedural core to introductions on constant over grew

XXXX. just the well with MSA, in revenue into the of declined respiratory and from catheter Respiratory as XX% as drainage Our our connection sale year-over-year with business other category which entered includes in we our business midlines under

rates noted. a tough our Americas geographic to otherwise year-over-year fourth ago $XXX will referred currency segment basis which revenues fourth All were turn revenues for a comp period. begin against of year unless growth million growth are represents constant into review the are deeper let's X.X% in quarter. our results. quarter with Now, that revenue a I the to dive on a

growth increased Excluding MSA Interventional other the of declines Interventional the business year-over-year including of $XXX.X Surgical impact Americas revenue X.X% recorded in Urology. quarter. revenues in and of in areas X.X% decline grew sales, year-over-year. the the million by double-digit EMEA offset

procedure year-over-year. improve see volumes to continue We

Asia. turning We quarter. disruptions end solid year-over-year. X% during saw fourth to quarter. posting with China COVID-associated strength geographies the the growth $XX.X approached the XX.X% Revenues the increasing Now growth despite all of million across were region towards

now to category. Commentary a Let's growth on also the global revenues be our a product basis. fourth constant fourth category quarter product currency quarter by move on global will discussion for of

Starting with Access. X.X% $XXX.X increased Vascular to million. Revenue

venous COVID quarter in reductions performance As United to a the catheters return comp units for we tough year-over-year a despite in patients intensive anticipated, care in central the the demonstrated the Vascular States. growth due per Access in to

made back Although normal. not is chain we to sequential supply on orders, still yet back progress

for discussed, As kits industry half Tyvek and XXXX, comes packaging the greatest are trays. in business the the the our shortages vascular of has anticipated to second for previously Tyvek online. exposure additional as improve to supply

and leadership portfolio dependable midlines growth. for coated to our remain we central category with continued venous PICC confident along us position our novel long-term, the catheters Over in that

MANTA up currency Moving the levels. OnControl quarter, moved pre-pandemic year-over-year. well contributing to XXXX Revenue We procedures to diversified to sequential through Interventional was our as Access. Balloon revenue improvements us portfolio growth In Pumps, back constant saw and in growth. all $XXX.X served XX.X% with million,

hemostatic was million quarter, LMA our fourth in anesthesia. endotracheal all products, up Anesthesia. masks by and offset tubes the franchises to had regional strong year-over-year. X% performances larger $XX.X single-use partially Of Turning Revenue

Stapler closed significant a the acquisition was our and In our business. portion XX.X% we Surgical our the a growth quarter subcomponent aforementioned the Surgical specific disruption representing developments, chain million supply due largest business, with other of skin revenue despite Standard In supplier. another performance revenue and drove in early of year-over-year, solid in growth. to categories, the the $XXX.X to year-over-year contributed portfolio product Bariatrics ligation growth Titan Among fourth stapling

For Interventional increase to decrease in urologists continued an Urology and of to staffing impacted XX.X% Urology year-over-year of was patient X.X% $XX.X visits a shortages. by sequentially decline and million, be year-over-year. a representing Interventional revenue

the quarter. environment for has Although, returned of to normal, overall elective BPH during signs procedures fourth were not there the yet improvement

$XX.X quarter, X% X% improvement year-over-year OEM year. a to Third-party in data urologists decline indicates from comparison marks the revenues the to difficult witnessed sequential quarter to to despite XXXX. a very XX% increased the which down last high that overall third year-over-year in were patient business of range fourth in the million single-digit year-over-year

to small Our order positioned, sensing capabilities, vessels to $XX.X for growth our recognize declined fine ablation wire competitive book walls Fourth as and access including X.X% remains year-over-year. fast thin well technology. quarter revenue million customers with broad for and interventional microcatheters other markets competencies

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

Turning and updates. to commercial some clinical

the Teleflex procedures to and mentioned of Bariatrics have commercialized quarter Standard we the in the As gastrectomy the completed Surgical for morbid we fourth SGS treat in in Bariatrics of sleeve the are obesity, Stapler use early to excited acquisition earlier Titan product portfolio. XXXX. Standard

our on activities track We remain with are with proceeding and objectives. our integration

on have basis. to as the double compared the stand-alone Bariatrics selling we on the training us the note, organization completed enabling of force size Standard to a the Teleflex Stapler of sales Of Titan

to We group Premier will the also with innovative Teleflex Titan affiliated agreement provide available recently sleeve purchasing Premier technology Stapler. this was and agreement that Titan the use announced with gastric rewarded Stapler a access The in for for surgeons make surgeries. to

of dedicate time to physicians activities objective users number for convert our XXXX. of hosted during our physician Turning to in the we historic consistent UroLift sessions market to development the year. BPH XXXX, remains reached targets in free which interest the new to organization treatment to implying Training US, XXXX time support training BPH UroLift. largely Australia in for will XXXX. vast levels of for paradigm. with two our Of to To in reached physicians we new live Japan onboarding and adding during trained quarter, the UroLift note, and summit UroLift in We fourth majority continued the the continued up sales increased

and for remains its XXXX. an program investment metrics achieved direct-to-consumer Our pre-specified performance important

to continue refreshed UroLift television digital will in DTC that of including a campaign February in invest XXXX. initiatives launched We and for

considerable Now including XXXX moving We in to the entry an made expansion update China. progress during geographic into for UroLift. UroLift with of our strategy international markets for new Japan several and

Revenues Starting launch We Japan. exceeded our gaining traction with strong momentum see and the XXXX. XXXX. continued through for we expectations year, UroLift with into sequential execution had

China. initiated quarter Turning in anticipated. as fourth the We cases to UroLift

XXXX engage served Japan. training the us key Society activities in follow and In Chinese cities with a we We building will Urological turn, continuing acceptance. spend methodical that to will presence be one our launch the in and well has in similar playbook surgeons, to to build our

Vascular update with partner business Now and zero a Vascular of catheter-related clinicians Vascular on as to for portfolio business. needs. align is serve to offering access Today, their customer the clinical trusted with an Teleflex evolving in education its goal complications. unit The well-positioned continues

a comply insertion revenue successful with CVC vascular portfolio standardize help after guidelines the process to hospital. offering the We standards. helping drive and a share significant our providing predictable system to highly are This and ErgoPack continues complete outcomes access CVCs launch the and of across insertion growth market approach vascular solidify by clinicians to in and access complete current procedures during establishing through designed protection

and the risk Arrow offering quarter of The alleviate advancement to prioritize with of Midline continue the growth in misidentification. North the also help with PICC Injectable in categories launch fourth Pressure being America We the line in midline to is the designed portfolio new recent most associated XXXX. new

through potentially Without between may through access in be complications a that and quick mistakenly patient only causing infused PICCs, central medication therapy. infused venous easy device be midlines should and and identification disruption midlines

the the have of level in still are customers far. early phase from thus seen of great We a interest but launch,

expected PICC this Additional XXXX drive innovation be toward in in we and gain share placement to and devices continue as can segment. growth and positioning

through the am with Canada I in the product has the pleased US, relaunch that of availability Turning fourth Interventional quarter and business. to catheter New Australia Access Langston the Zealand. progressed the

The is TAVR has diagnostic stenosis, that might clinicians a result subsequent a aortic procedure. in degree unique tool the catheter which Langston determine of

webinar held team medical panel on and reeducate TCT the in product December. and at this affairs a clinical through to including a Our discussion market works

The clinicians space. the for continues heart to build with our relevance value in our customers, our enhance demonstrates TAVR Langston and catheter structural in engagement

years; expect structural in over interventional further including business launches coming in the our catheters complex We market. the product part

some XXXX. healthcare stabilization in on utilization of and the over in healthcare sequential comments would XXXX. further We expect improving the XXXX witnessed stabilization a course outlook in Finally, for utilization

reflects states that ease that patient visits the now XXXX some patients at serve staffing shortage markets urology. we has the endemic anticipate including increasingly Indeed deferrable of procedure seek Conversely, are become above levels increasingly back levels. pre-pandemic gradually the We will disease bottlenecks XXXX. physicians medical of during below to that COVID majority remain and interventions more or as

macro and Turning disruptions. of XXXX share operational to the had its supply challenges chain including inflation environment.

For volatility continued would be are for although at lower of inflation through XXXX, than incremental year. XXXX challenges level to improve supply some we to levels we chain prepared the expect and

look operations ways We we become more through environment. we'll and remain focused on work efficient as our the global macro to for

my prepared remarks. completes That

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

and Liam Thanks, morning. good

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

increase prior adjusted incremental XX% year gross margin exchange the inflation. driven versus quarter, by partly was basis a price, offset mix point year-over-year by totaled the For period. foreign The XXX and increase

note, year-over-year maintained of points quarter, fourth the strategy price more improvement to enabling Of during XX than price for traction drive its XXXX. basis our us

freight disruption normalize. raw an sea to in continued expectations. supply During our remained Conversely, we elevated have the and yet line see chain costs and quarter, with improvement in material to

the The increase lower our Adjusted as partly non-revenue-generating growth in base business XX expense by disciplined revenue gross and the was investment the higher expense, planned such of inflation base year-over-year expense margin was XX.X% result operating for quarter. deleverage management year-over-year; from drivers. of offset wages; fourth in margin point our and in expense our basis across

purchase interest the Net by Standard a $XX.X period. to the fourth expense rates on increased in quarter, average increase an revolver the versus outstanding. year-over-year our The million and million interest in in the borrowings fund higher offset prior net year reduction increase $XX.X in reflects Bariatrics, partially debt prior interest totaled year of from expense

was rate new of the our adjusted and line, XX.X% of the Our in rate the tax of versus for from earnings by bottom expenses. XXXX year-over-year fourth tax of a period. the decrease requiring year expense tax R&D of efficiencies XX.X% The quarter to global structure, adjusted was quarter offset partly capitalization $X.XX, fourth decrease is our law due provision further year. prior in to adjusted the compared the primarily arising per and share US enhancements prior At tax X.X% tax certain

to higher Turning flow payments, compared payments, million highlights. and elevated flow volatility. and the unfavorable a $XXX.X in due in results, balance was was to select capital tax The maintain by million sheet period now cash operating in XXXX Cash levels working prior higher changes high year from customer service period. payroll increase benefit-related an and chain of to for during operations inventory driven global supply purchases lower decrease to $XXX.X primarily

Moving to the balance sheet.

cash $XXX.X in and million the on cash for fourth is position the our of quarter, million of was Standard acquisition of Our due payments million our XXXX. $XXX to as to hand year-end $XXX credit financial on remains $XX end Reduction senior facility compared as million Bariatrics. At balance the healthy. of

the Additionally, the $XXX quarter below X.X was million for remains facility approximately which we our Bariatrics Net credit borrowed leverage covenant. end well times, Standard acquisition. under senior times X.X at

guidance our XXXX Now update. turning to

constant currency revenue to X.XX% X.XX%. expect XXXX of We growth

is range we X.X X.XX% a approximately a of point X.XX% to of in the dollar implying Considering billion foreign reported XXXX, growth XXXX. $X.XX for expected of revenue headwind to exchange $X.XXX headwind, to Foreign billion. exchange be expect

to revenue Standard We of to from continue million. $XX within to a million range $XX expect Bariatrics be

income to middle Turning the the of statement.

for margin XXXX XX.X%. We be expect to XX% gross to

impacts efficiencies, mix manufacturing product of guidance largely inflation. offset margin positive year-over-year range by and price, reflects gross the Our

utilities the costs Although, we freight with XXXX sea XXXX, of our inflation May line Analyst second at saw our moderation time material XXXX year. continued we in in and that headwinds to for gross forecast, to this raw materials, Meeting. a have the labor raw represent persist half was inflation during macro assumed will and in than margin of And our volatility greater expected

Moving to margin. operating

XX% of range a expect We to XX.XX%.

flow Our of inclusion employee the of the the reflects and Standard partly guidance headcount Bariatrics, the and impact restructuring. margin, investments grow expenses, to gross by positive through related offset of business

items the to below line. Turning

expense million an interest our offset rate XX.XX% interest higher The for outlook XXXX. debt We XX.XX% rates Net adjusted is the range $XX reflects the to increase XXXX. in net to expect tax partially repayment. by majority for expected expense year-over-year in of approximate interest

Moving to earnings.

at headwind half to $XX.XX, foreign will of year your half of XXXX the to guidance for which exchange Our meaningful a X.X point for increasingly low exchange first X.X% adjusted increase rates earnings per share the the second the in then foreign as is represents and the end models high a of a tailwind $XX revenue in and beginning be decrease year-over-year to XXXX. at end. considering When turn the assuming XXXX a

quarter. result However the through fourth our to will a exchange in it foreign would through EPS as become of headwinds be flows the how quarter inventory, then and third neutral there

note shipping fourth XXXX, this in be shipping number while versus there difference five the will and days there also quarter that first the five days quarter shipping in less of year-over-year year. extra XXXX We in days is the in of no

the benefit to revenue a change is Historically fiscal GAAP in X% year-over-year headwind shipping a growth our or from approximately quarter. day

of quarter expect we five growth quarterly from revenue days provide of your do range in X.X% X%. when a the modeling benefit to not approximately guidance purposes, would the we constant shipping approximately first excluding currency Although, for extra X.X%

commentary provided our Analyst strategy XXXX pillars We Finally, confident Meeting. our of at I'll the durable growth remain provide long-range that our some on we in plan. foundational May

on well margin plans as per earnings XXXX Our share XXXX revenue anchored as for discrete drivers expansion. growth and long-range remain to

opportunity generation since improve long-term XXXX in flow there are the our macro allocation number the dynamic objectives business achieving for cash of and been on drive period Analyst greater see With strategy Teleflex. been environment and capital our highly continue said, on Meeting. disciplined that have execution XXXX for the to focused has headwinds to a We unanticipated May a scale, profitability, on strong and

higher in margins. we and costs at on their raw of XXXX, of than Analyst has our gross impact from Meeting, the XXXX in Inflation and material the a First, projected second at particular level persistent been half time related

Second, headwinds patient through improvement a environment to the office we urologists were for throughout In the although anticipated setting. sequential visits XXXX remained UroLift procedure XXXX, especially in for year. year-over-year in shortages particular, persisted staffing down the a bottleneck and in procedures,

against as dollar larger currencies basket was expected exchange was of strengthened a broad Third, in of the second foreign headwind the half a XXXX. than

second of in increased also half rising rates XXXX. expected Interest continue in and to XXXX are the dramatically

in the we assumptions recast of related to and interest Although, exchange not we have provided updated entirety inflation, XXXX, have foreign LRP the May rates.

are quarter a have CAGR And global we the incorporated to in finally, business we In assuming for long-range acquired since the of Standard in addition, now the Bariatrics X-year revenues. range we early plan. UroLift X% X% into fourth XXXX, the

We to in LRP Analyst that total the we for year will Teleflex CAGR believe XXXX deliver updates, XXXX XXXX. margin the the provided end Meeting the expansion. vision base to view of for revenue ranges at continue With the incorporating we XXXX as at the targets the XXXX, now and as low in

portfolio, the in of the more XXXX, represented XX% a we expect XX% XX% For to approximately little LRP. than CAGR revenues high-growth for which

revenue, to over X% the For respect a approximately in expect XX% of we other which of X% refer we we category, as expect the portion grow durable CAGR the due remaining core, total negative LRP. slightly With which to X% CAGR. the represents to to revenues to at XXXX, the a

concludes Liam prepared to closing it like turn I'd remarks. that now my commentary. for And to back

the from our takeaways XXXX key fourth three our highlight will I closing, quarter XXXXoutlook. In Tom. and you, of Thank

improving businesses. majority solid results and market end of fourth driven for First, our the by an were quarter our

for confident in outlook are XXXX. Second, our we

through growth the portfolio diversification Teleflex Our stability durable of outlook combination the of reflects drivers the of revenues. and core our

long-term Importantly, creation. we our on growth investment enhance will in continue future to focus to drivers value

objectives XXXX. are our focused achieving Third, in on we

have margin a durable expansion capital allocation through focus M&A on approach invest our as the in in We our optimize our drive performance finally, mix balanced to see with strategy. we we core. remain and executing We to strategy, drivers on growth line disciplined the shift, And will top of and growth restructuring price. opportunities a

That concludes my remarks. prepared

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

with Furlong ahead, Thank from you. go question Stanley. [Operator first Our Instructions] Cecilia Please come will Morgan Cecilia.

about Good Great. guidance those to taking you how think and walk 'XX from high-growth and the the both contributions Liam, the the on we X% specifically with updated core you assets thank CAGR, three relative you're if cadence LRP morning, with over X% durable should UroLift could and thinking question. wanted start I about UroLift. for through years? next CAGRs, in the to how And to

you and the Yes. for Cecilia, good morning. thank question,

obviously the obviously, a So, I'll therefore, which of you an is This a to gate where Tom's guidance X%, start at on midpoint growth comments, one in with our an so X.X%. as be heard cadence And 'XX midpoint year, seeing revenue, quarter X.XX% X.X%. XXXX, to prepared of revenue. with in which the had will an overarching of the core X.XX% represents X.X% with X.X% right within improvement over out underlying regards for improvement rate

of growth for guide they contribute the we're Teleflex on natural evolution our other buckets growth the company. company, to part to of core, these to high is your to a But the rate and the As overall as question. durable continuing efforts focus

declining bucket for that flat the grow to core other assumption high XX%; to and Cecilia, assumes XXXX, growth grow to will X.X%; will in guidance Our be XXXX. X.X% will durable X%

in our the for revenues As guided 'XX we will not year we $XX this, environment incredibly we carry Interventional $XX acquisition year first The with categories. UroLift, guidance and will Standard product on 'XX, of to Cecilia. is Obviously, every would million And the have transparent to of Stapler, XXXX, this all the we guiding we're UroLift, and full other principles within year. specifically consistent would to report with guidance million. our company. quarter Bariatrics know, an and be exception This consistent Titan giving an an expect improving that as while will Urology past into you be

then Thank alongside you I just out on benefit you're as could if from expecting outlook Great. for if that gross conversion well, through both And could you, impact the Liam. of up also having then UroLift continued put you what Bariatrics? inflation just gross follow Standard X margin walk that's pricing. margin on 'XX, And

rest X margin of Okay. I'll through cover stage and at UroLift UroLift margins, to on X Tom this and US your the converted market UroLift X, go the of the Tom topics on will have just the gross conversion the we will line. Cecilia. pretty other questions the cover

Okay.

realize margin basis guidance footprint our So or XXXX manufacturing for points meaningful cost midpoint. five of mix restructuring from the is XX XX.X expect price about and programs And the programs. to combination XXXX, improvement accretion for at our we to

in the headwind we accretion, to inflation cost and However the price the of at some we to drivers as exchange. of margin a of expect XXXX, continue increase. the XX% we've were each expecting about gains. XX% And are about programs footprint and If modest gross spoken improvement for these accounting mix the largest largely look being positives we're from additionally the what then the offset to foreign

accounts XX% mentioned that, items. largely little we as it's then is which at offsetting And from then foreign bit for exchange other as look miscellaneous of and some the inflation, And it's what well as a offset. the

opportunities. really it's of story margin a So underlying expansion really good

the As we long-term feel still prospects. good about we've very mentioned

impact is the nice However, inflation gains having business. largely offsetting those underlying an and in

comes Our Matt, from ahead. please next with go Jefferies. question Matt Taylor

Hey, thank Good you. everyone. for morning, Mike is today. Matt This on Sarcone

Good morning.

Good morning.

Cecilia's on follow-ups two just questions. So

chance could versus first growth Just you're the CAGR By US three parse thinking of X% to you the about growth? OUS on over how growth UroLift out any years. X% next

UroLift that the grow the guidance the that will we UroLift YeahSo coming tell to are you I assuming comes during years, to over will for XX% when LRP it XX%.

UroLift to the X%. -- go will high XX%. And grow growth two that. within comments on that We will So, X% XX%

on that. comments of couple a So

in that our is Japan. the assumptions. First confident in changed are still international of the to rollout We has product nothing

we've geographies Italy, board Taiwan, as our Brazil, in prepared in There cadence. through Germany on China. As ultimately as said are the we remarks, LRP and go coming such Spain begun other you India, France,

it I it's we in company than and procedural our Teleflex of our anticipated XX% had the growth played if that bucket out a slower XXXX, say recovery for be at By durable XXXX, will XX% you US lot to within our position would as anticipated XX% due shortages. will a attractive also of differently to flow XX%. that And a staffing within at I with little XX%, we patient And one-third with Teleflex this think growing in that XXXX company company along a bit as still growing than at think growth overarching high-growth company. UroLift I as long-term look

then XXXX. flow margin helpful. we the just Do one you should very And how through and That's just the year margins on could help the for gross cadence it. us through? think follow-up Got you about gross think quarterly

Yeah.

quarters pluses others. some see expectation. how what result quarter as minuses higher stable in there's should attractive margin with or comes then more gross the a expansion expect say and relatively expect three I'd of first you exchange So the But margin in fourth to and further a some a and foreign expansion volume for is mix

RBC. Our Please Singh next with go question Shagun ahead. from comes

open. is line Your

much so taking you Thank Great. the question. for

will are what year? that backlog you is I UroLift, wanted confidence to And LRP X% for thoughts to just about So on continuing that your patients ballpark the just return. get Do X%. to tap on single-digit Is guidance gives physicians encouraging a It to into? train. this is you a have the mid reasonable

on wide And pretty it's then my with respect a question to EPS, range. second

the the for Thanks taking the gets what factors are to questions. here? swing end? top versus the what you bottom So And biggest

Okay. answer Shagun, range Tom in but I'll begin with a questions. let let UroLift. me the you thank moment, for the EPS

assumptions well. will on will in X% and UroLift obviously, changed So the anticipate to X% improving, be continue We LRP. it has do nothing international earlier, our And go as that within the for the international I to we the LRP. as for believe through markets markets our said confident we feel do we

do improving that is us LRP UroLift on the environment the confidence staffing And remarks. in the our we this elements that think patient And the account to of anticipate, good in XXXX. global regarding going growth all to said your we into based of gives is, about for based, X% returns, we regard franchise two With prepared as on feel the to growth shortages. be now CAGR, and to taken patient and X% there's need returns between question I and

That fourth fourth see across our And we to as the went as -- we QX in our quarter, stated that improvement through did all an -- We of quarter. seen in in we as remarks. said sequential a saw fourth XX% quarter businesses from QX. of have also improvement, the was you prepared true through our UroLift, you went

the went fourth you as improvements, the through of months quarter. three saw You

UroLift week, I in quarters urology levels -- the quarter, with a as with spent expectations forward. it the for seeing by in we're done move encouragement ASC seeing last excess road sales force -- our meeting ultimately and still we've us in days now, beat in UroLift the environment. $X customers. million on out in improvement that is of few some and the hospitals, while UroLift, And we some which office was the a we I first in we're fourth actually and gives time in was which of I our the staffing with couple not

train We're I also have, And begin continuing We're close around to patient our that the control, trained we're launched. urologists, our go And last managing that that's as through campaign. within to XXX I DTC that year will to going we just improve And with new we urologists. a Everything to ad really that going continue year. we anticipate think well. flow I we office. XXXX. by that this to return do believe, will to help

the treatment market let's forget for are away. it's over product the gives BPH. the leader of isn't us And million And And CAGR but BPH, the in still for not we XX men treatment that gone. for remain confidence deferrable, which not are effect of going UroLift we LRP. It's premier the BPH in with BPH, there.

to regard is less bottom. with then which versus than And X% little top EPS $X.XX a range, the bit

that well certain to year, the our the could top push sales the be the drivers So mix at favorable level. as staying us a in range, end as of for inflation would

largest well go. So would pretty the be to there, which the the can I past in year swing what as foreign exchange have to been factors as factor if just proven were over characterize, rates, be inflation volatile does be probably where swing

two probably, those biggest that's the are the swing guide. factors So -- in

comes The next Polark go from Mike Research. Mike. ahead, with Wolfe question Please

Thank two the morning. On revenue have to the heard on and X% company-wide I the taking described level. Good updated the the then CAGR first LRP X% margin. was questions. at around comments prior end low for I as you revenue,

there additional that in So the it are My let's contribution? no X%. question and Bariatrics update. Standard now, call considered Or is of unannounced base it is, acquisitions plus any kind M&A unannounced

So, Mike, thanks for the question.

You is change, absolutely, It Bariatrics. of with is base the accurate. That and revised CAGR we've Standard are made. correct. the inclusion the only UroLift the That's

expansion, prior from commentary, on XXXX. follow-up set to just for it to the end jumping the and level as margin relates on gross The Cool. operating margin goals updated low LRP off

Have done of margin bps gross XX% margin on XXXX basis correct? and operating in and XXXX plus XXXX. add then If points XXX south math I the XX% just XXX I'm I XX.X. on So in XX%

You have.

Okay. Thank you.

Mike. Thanks,

James. please Jason, Jayson go from ahead. with comes Bedford question Raymond Next

morning. Good

ask the It I margin So was but my margin wanted the XXXX be was quarter operating the guidance implies in a strong heaviness bit operating OpEx. a the I or this discretionary? And line op and where fourth softer. some helps much line. seems to kind OpEx inflation-driven all about how I to occurring. of question structural in step-up is assume the guess And sharp But is of is restructuring reinvestment this the pretty of

Well the typically to benefit I we margin point exchange foreign lesser your we're op just would first margin look point the at that for is inflationary as a and getting get. than XXXX, pressures gross think the given we

– characterize them guess as count-related that XXXX. that I you starting benefit were we're at as XXXX in then, in the back So of not would gross the head are the are But OpEx, there from we're off in adding structural there there's couple that, expenses last in margin. that look things a with I

a Variable we've compensation the of a and those were labor environment there open XXX%. given and was market positions tight that took resetting a we're and we're to variable the quite comp lower number positions than few fill filled to target while back

So there's that. a pretty a as of big of structural kind result move

grow some continuing got continued we've well our our one into be markets in XXXX. build would Expansion out and of as systems international as to capabilities high-growth the investments drivers. to investments behind otherwise Now

of Part benefit. margin, of a and provide and in about is in does is XXXX. of XXXX that is benefit in two-thirds will part XXXX restructuring gross balance that OpEx, restructuring it some and Now, in the

say, would structure. cost XXXX OpEx is not into not part reason were the overall XXXX. higher margin in cost the the a structural were these of that the impact benefited I back there in costs in biggest the So a at why just putting that's as we And

Standard Bariatrics from impact What's the in dilutive XXXX? expected

Jayson So stated it's $X.XX. before that's – as we

it So – was

$X.XX $X.XX. to

$X.XX for in to the this year fourth $X.XX was It and in last it is year. $X.XX

Biegelsen with Fargo. ahead. please go from Wells question next comes Lawrence, Lawrence Our

morning. Thanks on the Good XXXX, for on Yeah. the One taking question. one LRP.

on of QX of here. help the the midpoint slightly think year. X%, Just The currency. with me I math guidance It's below the constant maybe Tom the adjusted day XXXX, rest

for the QX, if than would Just QX why correctly? lower math doing would QX the growth through I'm be – why

So if Tom, I'll instead mind take that one you of don't Larry.

year-over-year, for a the have comp is it. you one reasons really of So

on slight had year a If the you procedures getting which of recall, done. there we're was Omicron some that last impact

performance a so in prior year the in period. – We expect in just – that, as see also markets overseas of and because solid good in OEMs the QX impact to

And little front-end plan that So, to prefer in in regard Larry. loaded would experience think at loaded most investors see a I least. it's plans bit loaded back-end and that's front-end revenue a why a my revenue

I pretty coming that think full I with a at with for X.X% seen be think investment our at X% a midpoint well the of as year out of positive community. growth should So the the – guidance guidance blocks the

Okay. Yeah.

loaded right about on if it's about LRP, thinking guess, about the that And comment. then -- organic math XXXX, the for agree I'm for this maybe in Liam the I'm the that revenue, think the the if I midpoint two-parts. just on LRP. X% but I X% now right So with year front-end I thanks. thinking One, X%

XXXX acceleration XXXX and in implies about it right. an if thinking I'm that, So

on the XXX are And at about margin this points. basis look pretty operating goal the a people step-up for question, midpoint earlier to big margins, now the That's XXXX. of at XX% approximately follow-up on to going at XX.X example, XXXX for in and

in XXX gives XXXX year, about points XXXX both What what the acceleration revenue my in gives that XXXX. XXXX and on the you here? questions. those I'm basis confidence in taking of thinking Thanks and basically for a confidence? basically margins the And then, if correctly you So,

Okay.

what But will in. to it's the the I'll should So Tom's the that to be and is cover be cover answer focused on anybody know, question. inflation surprise Tom really no Larry, going margin which we're I environment given LRP,

But revenue. let constant all It's currency. me the cover

constant I'm what currency. So to going is talk about

our the guiding So low LRP the the of -- will first is the of year X%. be end at We're we're LRP which to X.X%.

So you are correct.

expect is this as XXXX see in XXXX. environment to as And go reasons One of that up-tick continuing is you improving we modest and that? XXXX a for the XXXX macro main and go beginning the to XXXX. XXXX from is There we into and year why and through that revenue

of international help just the products LRP. of portfolio of also the factor in the our latter the second intraosseous of The international not will the some the expansion high-growth the of that expansion half hemostatic UroLift expansion growth the will that international international of bring PICCs expansion that accelerated but is portfolio

in has pretty is, of step-up. a the to X% nobody picked feel questioning that we I durable going It's managed that to make, the horizon And not the We're in core CAGR confident was LRP. on X%. from X% that. other will X.X% far a I think comment over so And up their

Teleflex durable all time. LRP the And been guide the by core micro-focused of has the core businesses original excellent of of now through this been X%, to we've the X% for globally. on one the is improving While end durable now element execution X% at upper the

helpful margins a to for and it's and high-growth only durable the the X% billion Teleflex. a core of we're $XX substantive And high-portion on fairly TAM, penetrated. are that global And

that I'll to So margin to question let the questions. And into address continue grow for opportunities us you that for But the Tom had significant. thanks are Larry. the

Sure, Larry.

the -- So from accretion price. driver to is of the come you that margin. the margin due op gross and we're from expecting largely as really continued And to margin down, mix break expansion going

of ends have at and the a as end close adds that. we Medline with point to which XXXX of MSA the full that Additionally, of margin a result

in do to operations -- in as offset the then, area productivity than That's we is into not dilutive the and to to go inflation. XXXX. in case And that, third XXXX some a result once becomes We again our case That enough more have versus gross XXXX typically, inflation. wasn't XXXX. we productivity as expect operations XXXX that and improvement accretive see And on XXXX. margin in the

those key kind the gross of the of drivers are So margin.

revenues a cost margin in We increasing structure. the result also see some operating allowing to as leverage leverage that of expect to us

that the four I'd So the would reference. points if components I think about key be

ahead. with please Matson from & Michael, The Needham Michael Company. go question comes next

thanks. Yeah,

on I to So ask pricing. want one

was be of said that I of guidance Is level? points XXXX? at higher had have think you full in What it Could assumed XXXX. that think it basis kind you for remaining for XX over the even and I the year maybe? you kind

expecting XXXX, year in So, positive we points that pricing in of exceeded we began Mike. basis goal XXXX, XX the and

we points. a would XX above basis that. deliver to of pricing this expect the came and XX above again comfortably points points basis year. to to we And So We basis of a minimum XX be in pathway have

pricing some which have some executed. from -- that prior the carryover some have of already We opportunities we've year and additional we

it. think, some on out Got Tom his restructuring And then, I Thanks. margin. in did comments call Okay. the

that you new programs, or are planning existing there? is So anything

That is existing programs.

number finalizing quarter that And largely and complete introduced of footprint XXXX. XXXX. will We program by have the in be will programs done new a we be that a of then are XXXX still fourth by

So to we're and programs spoke expectations. about that frankly managing everything are I known existing

O'Brien next with question Matthew, please Piper Matthew The comes Sandler. go ahead. from

question. taking Good the for morning. Thanks

to UroLift and about think of as $XX to through I think that's time this about new X% million X% LRP, that frame XXXX. million by So, the revenue through Liam, CAGR $XXX incremental I

than. in that little So million I Japan were if maybe pretty to supposed out to maybe think, $XX remember of China the be years, I sizable more $XXX correctly, contributors, and half million, a bit

here fairly improvement imply would it some modest So domestically.

think making if Does how that? several the years? I can business really am this is don't all, conservative then, spend, secondly, doing that? of these sense the or it about DTC, be make DTC to over domestic First right next you accelerate And

So, Matt, the with three-year the fairly good, in horizon. your is regard overall growth over to UroLift math

the I drive US the of the reliant think growth, that because big we are still on bulk enough. aren't overseas to markets just the

international, the better. the of smaller be the And will percentage we're and portion we're course, we on get a by overseas Clearly, bigger encouraged much XXXX, to be end doing. of growth it base, revenue. a going of the by And what to time is

in get us so carry not to good forth, but Spain, good enough Taiwan, We're growth Italy, a do on job really the going to just X% of Germany, really to Japan. so they're big job a France, done in China, Brazil and CAGR We've that XX%. to India, to and

question. part think DTC your the I answer of that sense, make does to other the

based If expectations, you number up strong responses XXXX, number our by very were double double back digits. impressions The XX%. go the -- up were to of on of

that So an we feel is factor. that encouraging

campaigns asking they for UroLift And the when are the out on week, time was see. patients every road, I And them into coming was talk them on to the true that ad same based urologists. last I

campaign. we for with us will very to we think as And So I XX% believe is a the DTC X% achievable that continue company.

is think, coming rest XX% of I portfolio XX%, XX% XX% well, Appreciate as down was its strong. that, far the implies a still UL the Okay. goes And as from bit the to portfolio it of now as -- Liam. outside little and high-growth to then, before

next several reiterate the Can of segment some seeing about you the over that that years? what EZ-IO, confidence talk strength those from the you. PICCs, cetera, MANTA, Thank are you're of to business et giving the in components, you

Yes.

XX%, really the growth quarter, it of ex fourth UroLift. In full So XX%. the grew well. The is it the approximately year high approximately grew doing contributions

there elements the elements there are that are average the high of high that and are expect slightly that it. obviously, the growth we within above be So, growth will below

will comes the average. fastest-growing. MANTA Standard now Then will you Bariatrics, have grow the the above which which from be Obviously, Titan,

So able to XX% we being feel really in XX% deliver to the feel able We really growth being XXXX. good really about XX% over about to the high to growth we about good LRP from high the of high-growth the feel and good X% portfolio. deliver

been to the than And for one, ahead performance the as into for the entirety expectations And XXXX, XXXX. our line, head build out. you XXXX nothing as not, except high there's growth, momentum, continue all have you you as if Matt of aspects in right and of of other of that better XXXX know

very well as as high And massive for about into we the There lot opportunities growth. growth a but we growing market. domestic same high I significant And UroLift, TAM it talk said is also the earlier is know into growth. where the this international is underpenetrated, a tap is that expansion thing with the sales rest of of we're international but all market growth for as encouraging I expansion as

next ahead, comes Mizuho. Our Anthony. from question Petrone Anthony with Please go

terms this contribution, Standard LRP into just of Thanks. Hope clean the the assume next later it that bit everyone to year. rolls would is of organic kind I a sometime early up Bariatrics in year doing in well. just Maybe top-line or

from within actually couple end be the I'll So of LRP have contribution the LRP? a that And follow-ups. maybe Bariatrics Standard and the accretive of the margin by can

Anthony. Yes. for done And asking. well Thanks

your part LRP. the end of the margin-accretive by will of it the be answer Yes last I'll first. So question

is XXXX. Bariatrics as to prepared we What Teleflex our an remarks. should thereafter $XX basis perspective. And from then we points exit as that you stated it we expect it this in year XX Standard will million to organic from become and previously growth margin-accretive between million it add expect deliver $XX said approximately year-over-year should We as of

from should be $XX million Standard expect Bariatrics. end should the So around XXXX. that's math what by Rough you of

Obviously, end throw when I'll I'm One just a then of maybe quick think normalization and of Thanks. year. US early your UroLift of what queue. M&A? I'll we normalize you here? about this and sort in saw patient Is views there two At shifts follow-up it then in having patient we things level discussions there think behavior. in do let's And the of high-level M&A through point the say what on maybe talking a updated next at sort XXXX. some Teleflex on just get views is And on year path to about behavior. landscape just your back

Yes. Sure, Anthony.

the for I fairness. continue When me expect patients as do Anthony, normal it's environment improve. through So go all in XXXX. to now to XXX% anticipate we staffing for But overall I urology going to improve and be to to to actually that it's difficult continue pinpoint right

still expect ultimately that? I And say begin to that I levels improve continue in I began in million do there's ultimately earlier into thereafter. hospitals I will said then the men staffing it patient think suffering and in from start BPH. levels in QX ASCs flow improve to XX offices as in to once QX. year. improve And staffing why to And hospitals this The

the roughly. If they a in are men into there's XXX urologist you walk room, them and there because waiting office got of urology BPH XX

reason one it's number man still goes why a the So to urologist. the

return belief at stage. my of that a market to So we through as the is normal the the driver to LRP will size significant go some it

most M&A, thing that regard the we clearly, have need. to you important With

We have balance strong a very sheet.

quarter. the M&A, levered at times For we're the X.XX of fourth end about

active there opportunities. are looking We at out

and actively well are there in. family. would that that lines a Teleflex assets lot there the we pursuing. on the going say very difficult out are fishing in are We're of out to targets attractive we interested we're and are in for we do there Very boat. There fit and hook there water. me that hard a that an the have we acquirer to feel are fish the believe we into Anthony. But targets are We get And

Craig, go Bank ahead. Bijou with comes of next Our from question Craig America Merrill please Lynch.

And ask million was -- by versus UroLift. Japan that Thanks what One know I to was XX taking with US questions. me was you your than the I Was start quarter side? the that that guys. the just in if morning, let better few Was expected. on want just Good the for XX did beat. kind on I implied comment was international guidance or or Japan, could the drove Japan guess

the we for the both Craig US getting point at beat UroLift I have of $X.X carry that stage can that. back overall proportion saw the keep would of million good we by substantive been this enough the to Atlantic. international able in delivering are And the improvement to not So sides a growth. not the markets to

has encouraged gone go we're through doing China. in starting We them am first on I and to exceptionally we what though earlier the as well. did by India to regards We're all that cases out said expansion in won't I regards are our rollout. what overseas. to Japan see again, with other geographies. encouraged roll we in I but

up years? and that the driving your next Liam. Thanks, appreciate LRP core you products in mean it. the of driving that on several are really growth. growth see how the are kind -- what I that of on durable comments Got Maybe, that And moved categories the terms that LRP and the some of then that's for

Yes.

Tyvek understand where We of simple forth. a an see in I had of components to an is had and shortages we improving so supply you we I chain on lot shortages have in think first as improvement environment, of what look and all, so at XXXX of issues.

you're see. to of that that's early to So going the drive some improvements going

in our business. So you Vascular should see an improvement

and through about in coming is for currency. to that we've lovely Access the new and suite accelerate. Access, grew year would As growth business believe a Interventional normal mid I go entire of continue digits. through that beyond that the XXXX business. will anticipate blood we that's in of single Access, also late constant Interventional X% Vascular you products in the The got Interventional And

years on to double We grow has guess, thin-walled of low a top that of called couple the HPC single the the our high a of the bought in durable That underappreciated one I OEM assets of ago. business continued does grow is catheters. our digits -- company this core It historically our rest OEM One used more X%. or business. business X% from to around than of

to will drive anticipate flourish operating I And LRP real will forget margin continue accelerate that. to a OEM its that our accretive and continue it's the to growth and contributor. be over So will never

APAC obviously, for franchise key a And is growth us.

We have that are be launching region we the very APAC that there. into of a lot we products believe will successful

earlier to So of those I LRP. as areas I are would would some Interventional the key that will as Urology the the anticipate improve also we go through as LRP, we believe through grow. said we that And go continue

Our with Sellers George, next question from comes go please Stephens. George ahead.

you that deploy a you have color potentially in capital Hi. recently? quick here Thanks Could here could you what one little near of in just how me are here. confident maybe those how term? for And I'll private us seeing Thank squeezing terms ask in give valuations some you. on one. you're trended market the and

married. So know it George, get you to two takes as

-- are but us we're But can and will they're So you assets remain we to George put of somewhat. assets are whichever of tell can – high-quality to XXXX the I investors assets high-quality bride finding we're heady still question or disciplined from those will remain the you days and valuations party. the a have that willing it's you a not And want groom why way inexpensive, the other And us. disciplined. going that's moderated expect after.

assets assets for assets accretive our look accretive acquire to earnings margins look we are for look our them. We that op and become will quickly pretty top after are margins. to gross to that will accretive We that for We line growth. our

internal segments to on disciplined within four. same assets core year in getting that than We five. them for are able that the Teleflex that hurdles integrating assets, will return We've into remain that unique faster of obviously, in finding them least our always on capital bringing Teleflex. year growing cost But in are the into will marketplace -- and capital Teleflex very in at the and above the our we're by and been do segments good family

with Please ahead. from comes Matt question Mishan KeyBanc. next go Our

Your line is open.

taking Thanks questions. Great. for the

a I'll follow-up Just for have quick and for clarification a then Tom. Liam,

in from of inorganic does the X% On the end 'XX, to to contribution the low that XXXX? of X% Bariatrics 'XX include Standard

Yes.

as revising that and we're of a of and remarks, and couple prepared adding changes our the is Standard in said times Bariatrics. already, we're component we making I high-growth UroLift that high-growth As bucket bucket, the said the we're

So that's That's correct. it.

for tax for just Okay. how that that rate, And for the compared couple then think forward low, the next should into of the is on especially to tax XXXX? XX.XX% XXXX What's And Tom, years? people pretty about historical to standards. sustainability XX.XX% rate driving of moving

Well, provide amortize of that, tax to as I would to at drivers in say We'll capitalization expenses. there's change start law XXXX, R&D rate. the ability tax the look XXXX. to in of the you related One some is the two

consolidation that. will result So benefits projects as impact a we've the higher IT we undertaken consolidation the LRP of time an a in benefit continue show a projects have to And begin the be expense that driver less frame. XXXX. throughout of would And will those other or

tax, sustainable. in impact I an have adverse that about would one is the tax EU there become caveat rate. on being were minimum So you as that is could should a if assessing currently that say rate our legislation, think to the that

And Matt, want... I just

XXXX, XXXX contemplated that's no say should impact. for I And

the of that isn't pro circle as Standard been the Matt, on And has the given training product recently to by the Yes. growth difference sales market our on Bariatrics significant, question. and the just Tom. and is want driven Sorry, is between following only forma force. I Standard Bariatrics The that Teleflex, back

force. doubled we've So sales the

that So, the what you. I isn't one is other, the way difference significant, or would tell it Matt,

Those we are the for time questions today. have all

Lawrence any to for concluding back call the turn now I'll remarks. So

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

joining for today. Thank us you, everyone,

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

now may lines. disconnect your You