Teleflex (TFX) 1 Aug 242024 Q2 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the Teleflex Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note this conference call is being recorded and will be available on the company's website for replay shortly. And now I will turn the call over to Mr. Lawrence Keusch, Vice President of Investor Relations and Strategy Development.

Good morning, everyone, and welcome to the Teleflex Incorporated Second Quarter 2024 Earnings Conference Call. The press release and slides to accompany this call are available on our website at teleflex.com.

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

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

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

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

to our the highlight Before I end subsequent review, normal the beginning second event following business a wanted of quarter.

disclosed measure by have primarily ceilings were for calculated based companies budget of payment are the year. Italian for the medical the each and to any the to related amount consideration unconstitutional. that while system on been the of goods exceeded. care supply basis law, medical XX, The On adverse the device portion funding ruling and As that required deficit the on an Italian companies that To the device SEC created device measure supported companies other courts. a was national July XXXX back proportional overspend which the constitutional companies. previously by our amounts health the date, we government that government challenged the have revenues in filings, services not was in their court medical to the contribute regional introduced enforceability legislation under requiring back pay Italian to amounts medical these to the on legislation payback by legislation given numerous issued year pay We to devices

truing accrued has reserves Teleflex to year Although expected each the government. be XXXX, up Italian full reflect now since invoiced by are we amounts to the amount our

operating in revenue of operating and ended contribute million million XX, $XX.X performance. For reduction corresponding the past to payback to we years a EMEA in $XX.X does increase X have segment to measure. to nature, recurring related the an prior recognized prior performance facilitate quarter to a is the adjustments a evaluation X our to we operating evaluation comparison related and our within XXXX, adjusted normal our of not to our excluded in years. prior reserves, June it The in a million years the amount months second our the our revenues reserves and to not $XX.X our difficult revenue meaningful represent increase to making total Of and performance. current Accordingly, related Italian for

basis. revenues year-over-year of up $XXX.X the For $XXX.X impact on revenues were payback quarter million, constant the second currency up When on year Italian year-over-year basis reported up a X.X% prior were million, for on excluding the Teleflex X.X% X.X% adjusted GAAP quarter, the a second a and basis. measure,

and million to Backing booked the $XX.X true-up in the revenue the of quarter unplanned quarter includes quarter came years, to million end the revenues. this our above increased revenues for quarter to previously. second second first provided the out implies for in reserves measure reserves prior slightly guidance addition $X the in $XXX the high measure In million $X in for million $XXX Italian million

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

dive let's that comparison. second aware Teleflex increase The of termination All revenues $XXX.X million increase deeper are in utilization revenues the revenue with products and X.X% noted. Americas was to Investors Now geographic was currency the turn The in I driven were I to for will second a year-over-year. with availability our will rates begin the geographic similar quarter. and the into constant results MSA million, a segment refer growth increased be an difficult basis our unless a Americas, were quarter the results. to that booked adjusted revenues on a MSA year-over-year. adjusted review in targeted impact second a first revenues year revenue X.X% prior quarter which familiar otherwise in growth by of Europe. improving of from the to quarter. EMEA year-over-year strategy $XXX.X Teleflex

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

headwinds we we to impact remainder linger Although diminish. strike the the doctors to through expect the anticipate year, of this

to a Asia the as expect see in growth continue region of XX% driver and approximately We for Teleflex for growth XXXX.

quarter, product comparisons a our access. XXXX. growth, our to access central be and constant of implying global currency the $XXX.X adjusted portfolio adjusted the quarter the portfolio including drove end second quarter, the Of note, the Endurance on on the normalized of discussion on broad recall with category increased in half a year-over-year to anniversaried towards vascular access. In move second million. PICC Revenue of for our year-over-year Commentary and revenue revenues product global X.X% second category. let's growth basis. Starting will quarter Now by vascular

balloon increase intra-aortic Revenue pumps. and contributions MANTA, of XX.X% to drivers regions or perform broad million, well, geographic the year-over-year. portfolio Moving an high to growth complex as including heart was the our growth, interventional. better In quarter, such $XXX.X right from single-digit had continues catheters, catheters as

and endotracheal year-over-year. anesthesia. increase an recalls Turning quarter. In the Growth revenue business, note, of tube $XXX.X ET the Revenue intraosseous. to end the million. we of anniversaried year-over-year X.X% to towards X.X% was led million, surgical increased $XXX.X Of was our tubes by

underlying Our to chest our and continued core growth largest solid, instrumentation be our franchises trends of with surgical drainage. led franchise by in

kit to growth the GLP-Xs gastrectomy earlier Although negatively revenue continued our proctor growth second the was impact our continued in in as to as surgeons buttress the quarter average. XXXX. the accretive with stapler Consistent to out well business and launch Titan sleeve our procedures, strategy, we of surgical following profile roll corporate

And $XX.X million, growth continued was driven October Life the the challenges urology, $XX.X [indiscernible] anticipated, impacted interventional was representing For side an Barrigel revenue XXXX as revenue in UroLift of by by sales following million. moving quarter during for the that training force of first year-over-year. Palette and reflects Sciences. year-over-year second previously Growth X.X% in was X.X% increase into quarter. Barrigel of acquisition service we increased the order communicated revenues timing anticipated revenue quarter quarter. OEM The activities with that had the the we to

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

catheter clinical updates, market. pump starting with now balloon to and the some Turning and commercial intra-aortic

to range; than and and catheter is to market which ill our condition health in with approximately from enough We approximately the an EMEA market. can't pump meet is shock, intra-aortic is the on body. to data, are XXXX pump where balloon share. of balloon low over of just consists the the heart is of about patients balloon blood Based duopoly, severely the market balloon X/X pumps therapy cardiogenic used pump million with is a which treat to primarily global slightly market sales balloon market. needs a acute are letter single-use Asia primary following in quote replacement The is catheters Intra-aortic year, safety currently used pump May experiencing the a pump XX%. increased intra-aortic and providers and competitors Teleflex X regarding $XXX growth and care relation patients. The market FDA X/X is single-digit activity quality North the a treat America to in X/X less in having

We our for help process and to are alternative seeking of pumps an manufacturing increasing are customers that vendor. in the capacity catheters

that in U.S. anticipate due opportunity Looking in be the market the manufacturing demand will with forward, incremental in we for FDA capacity language Teleflex will the carefully providers. signals. We modulate to accordance biggest the care letter our health to

care that from transition facilities of the and seek away the health devices recommended possible. if agency use competitive Specifically, alternatives

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

assuming meaningful given currently Europe suspension shift of any share Finally, are mark. CE in not their a we temporary

equipment are Based will in XXXX, half the pump Looking of discuss on seeing expect balloon cycle given this of fourth pump we into we intra-aortic at first the incremental XXXX. we sales implications revenue the quarter cover XXXX [indiscernible] activity, through of financial in for the updated currently minimum. guidance anticipate capital customer a catheter a training. of we and when the incremental what continuation second Tom and half revenue opportunity

Now recent I Palette, an move will on to our acquisition. update most

to ahead for is months, Life tracking the We Sciences that owned just Palette X am I now over report have and pleased of acquisition expectations.

the IT force on and progress, to First, product, training UroLift sales onboarding, proctoring to integration. sales the well, Barrigel continues Cross-functional including the of process the integration to the training our remain and employee of the progress dual-bag legacy continued use the integration end complete at tranche of force the by second of We end of reps XXXX. quarter. of sales with completed first track the on fully

strong Barrigel Second, in the continues U.S. revenue gain momentum. sequential to traction with

the continued market, over into no are in the technology to guidance our to an radiation $XX $XX half of seeing are revenue increasing $XX million from anticipate increasing we and Due penetration Palette previously. to change million Barrigel million of and expectations, utilize to We second million better-than-expected urologists first spacing performance will to the we oncologists half time. rectal number $XX XXXX for and our

year growth. guidance urology to full continues approximately assume interventional revenue total Our XXXX X.X%

Ringer which in with communicated access we Finally, update. clearance occur market product In our the timing. release is previously perfusion track catheter. FDA second balloon recently on a new I received will will for our limited August, interventional XXXX business, A half provide

balloon Ringer blood while incorporates allows that a balloon the design As a inflated. to through is reminder: vessel flow a unique

We expansion remarks. perforation of evaluate our with indication, prepared trial. That but my a opportunities expect to initially we'll completes vessel label PTCA the following launch for completion

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

And good Liam. morning. Thanks,

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

the price, point by the in expenses, second favorable was year-over-year primarily offset in increase Palette from employee-related life quarter. by cost improvement The of margin the operating of year-over-year and driven continued investments was fund For second from offset expense interest expenses the due by increase year-over-year $XX.X a the to primarily the versus quarter, period. gross partly year-over-year from increase XXX year and interest in margin MSA in gross of prior the gross the increased utilized impact an to year of higher the period. prior the reflects in increase margin science increase outstanding favorable margin, basis average Adjusted of $XX.X XX.X% business. Net acquisition partially versus to interest million The was The operating inclusion the rates initiatives, higher point inflation. the debt period benefits and prior quarter, by year million interest basis increase income. Palette, expense cost the partially net XX.X%, totaled was the offset of XX adjusted acquisition Palette, grow the termination flow-through

an borrowings, of The solutions termination adjusted items to Sciences tax year-over-year was per additional the $X.XX, adjusted was of tax enactment European related arising quarter foreign our year. year-over-year negative period. discrete exchange XX.X% the the the tax rate XXXX EPS from realization of compared reform prior incremental for rate higher ] the the due adjusted prior and second The year in increase XX.X% second and the is the quarter of in of bottom [ in and primarily Palette X.X% of a X MSA, Pillar to impact costs earnings includes increase acquisition line, and versus share tax of increase quarter. At rate. in Life the the Our

favorable flow operations and was increase $XXX.X million in cash for activities and net compared The dynamics. supply results in decrease as operating we outflows Turning flow million the Cash select by X primarily The was tax improving to provided now to moderate cash $XX.X increase $XXX.X sheet prior year levels by higher months was inventory payments. offset to from operating to highlights. inventories balance attributable from period. the due in partially chain a cash our million

earnings cash of Board intend allocation end second for on In commence million the by hand with increase as $XXX we common the we program of cash debt million, share to sheet. year-end CapEx stock. Moving our leverage a balance balance $XXX.X to on payments. Net on X.Xx. And was release, was of due cash for At program approximately the and end as at to our compared quarter, share today quarter The which to the partly is XXXX. in strategy. an repurchase capital August update Under will operating $XXX.X our offset $XXX flows primarily has second to Directors quarter up announced conjunction execute million, X. our accelerated authorized million repurchase an that our for authorization, we of now

have our in discussed routinely and assessed the continuously allocation Over the share capital years, repurchase we past.

care foremost continues portfolio business our a of business priority, our are necessary to procedures. evolve. that critical While broad the medically products investing in has remains Teleflex to Today, tied

portfolio expand reach. add another appropriate disciplined launching capital growth in dimension our process. allocation our now offering to investing believe to are We new is that and refresh an products geographic to our time We drivers,

of profile cash allocation strategy strong capital Our is many and over confidence the going years our reflective free flow forward.

of shareholders. years, of allocation to return of the sheet; allows of ensuing payment share our the our authorization consistent to dividend. Today, capital capital has intended ASR the strong to been thoughtful capital initiation through opportunities, M&A; repurchase balance allocation high-return including Teleflex stewardship Over of and targeted our augment and strategy the

to strong continue leverage strategy and to we this opportunistically profile. have QX the debt opportunities in of return. capacity Importantly, authorization articulated us cash a drive previously. leverage provides see our for sheet while flow share maintaining capital meaningful approximately $XXX for core accelerated X.Xx, as Pro repurchase, is million should the viewed allocation shareholder to our our which a M&A allows focus M&A be areas we complementary forma and conservative balance available that to And

XXXX. Turning for financial guidance to our updated

from X.XX% X.XX% in is revenues XXXX years. guidance better-than-expected increasing which to half fourth growth growth incremental previously, driven by first currency X.XX% the the pump intra-aortic the measure balloon to prior are to from impact The We of increase excludes constant revenue adjusted quarter. X.XX% Italian the in revenue and in

revenues, [ our incremental I comparability that in will [ addition, impacted In a investors by Palette. by MSA partly $XX.X revenues to million ] is up ] year-over-year remind offset loss from the

incremental this guidance. fourth quarter, contemplated on are We opportunity, time. the ] is updated are we balloon [ in but IAB executing our focused real point, on revenue pump is At in it revenue evolving the expecting in XXXX which

XXXX, we catheter into and the expect duration quarters. will develops incremental demand revenue, but over Looking and the IABP magnitude depend on how coming

update dynamic as continue We get opportunity half more pump first an into the are on at this least will of clarity currently assuming balloon that the provide At we situation. this we will XXXX. time,

Turning to foreign exchange.

rate measure, assumes a a impact implying point Italian to exchange in approximately to million of and negative assume euro range million, X.X% the basis a GAAP for in XXXX. On X.X% for growth XXXX, to to expect basis, headwind XX a currency which from continue billion exchange representing $X.XX $XX.X dollar The of foreign foreign growth the XXXX. guidance We we $X.XXX of revenue billion. impact of $X.XX includes $XX GAAP average the approximately reported

XXXX Excluding guidance. the range, revenue Italian the to Italian the of anchors we billion impact revenue of $X.XX X.XX% range This growth XXXX billion. expect measure, of dollar [ which to reported or our measure, $X.XXX ] in excludes a X.XX%

in $XXX headwind outlook to million modeling growth year-over-year, your range $X third For assumption FX million for excess of in representing slightly X.X% purposes. the of in an million. excluding X.X% quarter, $XXX includes The XXXX for an the to revenue

low The at half reflects of the increase accelerated to to XX.XX% gross and fourth guidance from sales of performance raising basis operating dilutive the our of are a end, in high in Capital XX%. equipment and We for gross margin our to pumps. XX strong pumps the range component by balloon points expectation first the capital XXXX our slightly margin. quarter intra-aortic corporate is XXXX

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

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

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

partially below with the majority of line. now $XX by The our Moving borrowings of acquisition, outlook a is items the assumes expense rates, to associated reflects higher year-over-year XXXX, the net debt interest incremental million increase borrowings interest in Net the today's during repayments impact approximate ASR. to interest which the announcement planned expense offset Palette of XXXX. expected million for for $XXX

approximately our expect X the to reflects Pillar minimum tax to the be continue global for of tax. which rate XX% impact We XXXX,

Turning to earnings.

raising $X.XX earnings the ] previously we and performance. discussed end high of the of by of opportunities reflects in to range $XX.XX raising our share adjusted are guidance now IABP addition per half to low in We guidance be which $X.XX, to a turn, the XXXX expect by $XX.XX. end [ first In

outlook for EPS EPS of high the headwinds. adjusted to it Our closing approximately concludes $X.XX adjusting currency on for prepared headwinds, Liam and I in is constant reflect remarks. growth to turn back end XXXX guidance. That X% to the would on low underlying continues After adjusted now end like of year-over-year XX% guidance my commentary. year-over-year these

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

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

execution Our strong. remains

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

in revenue gives from half to share and per the of contribution guidance XXXX. the our Second, balloon confidence the the intra-aortic year for increase solid pumps earnings quarter the first and us performance in expected the fourth

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

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

margins. in expand and invest growth innovation drive our organic opportunities will and We

our a to Finally, includes strategy, now repurchase we creation. That shareholders and to execute disciplined my which long-term concludes share allocation capital return remarks. on enhance prepared will cash program value

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

And with our question first Mizuho comes Instructions] [Operator Anthony line Petrone from Group. of the

Congratulations on a here. great quarter

Thanks, Anthony.

Maybe lot balloon out of bit start a little pumps, with noise intra-aortic Liam. there, a

there on May the the notice look hearing X results much It mentioned movement competitor. second You what like, at the the not you seems just quarter. Maybe competitor, ground. the from when you're the in on was

what for calling maybe you're that the the XXXX. to can, half you if ground looks size the is second And then year, starting on balloon in market maybe months. outlook shift, intra-aortic to Your into XX perhaps over to just hearing And this pumps. a of extending it follow-up. as just relates like some opportunity But next have XX I'll what

Anthony. Yes,

a had marketplace what Anthony, real point. based in of is the this to significant the on now always have QX, share expect take the expect So really from able our to until that the the XXXX. up all, have quarter. The suspended contributor too much expect -- enough guidance least the we the to a the into been We and a system time, customers. evolving that is quote U.S. today first the we're on north over in taking been first really to pump is past strong opportunity specifically, the position; balloon balloon the to by revenue variety to their is continuing which from and total time. that points. of the very, we have those and regard pumps were from the for in multiyear basis The this bulk year intra-aortic Anthony, has the to be And it period call over get we majority mark period. a catheters reactions of robust specifically, of the rate at do X.X know to intra-aortic that very ship the will years, delighted up impact orders. ground for inbounds North within going right as share we Pacific, of XX announcement and vast Europe and realize half been market for -- timing, for With because takes fourth a them the we I only and not just we hit the come tell people to you continue we've pumps from you us opportunity have, to encouraging of to on And and shorter competitor Asia will not place America, since through has CE our visibility

pumps a over share catheter term meaningful more goal second over the so us catheters is we term, we about long period. the will that with goal that Our in market. maintain that, take, those ensure And that, it's just pumps, we and that longer balloon to the our the not that multiyear player is be to ensure the follow become intra-aortic over pump a for

share quick be buyback. That's margin you that on relative tailwind you a helpful. when then And shift do there How think of the toward recap incremental share question more A of we just tuck-in quick about buyback? X strategy, away quick category, one, M&A the buyback share capital margin on that to priorities? gains follow-up just how just here; in from signaling expect a those profile do strategy much the And just would gain. this a pumps? balance just a tuck-in from allocation, Is between maybe to

cover our going as I in company, to as generation both because prepared first, addition strong. it's second said this think question, I look Anthony, Tom our remarks, our M&A at And we I'm ongoing Thanks, important really, our flow to Anthony. is really in Right the free one. and cash now, is an strategy.

Our current leverage is X.Xx.

call want million And that looking of in a improve takes to the continuing to in miss return. M&A also strategy and continue us a to M&A we us be position. to to not I business the ASR, listening X.Xx, invest cause there for investor active out our heartbeat every this market healthy in With this opportunities. really reassure the does shareholder $XXX to the to

buckets should in about X the Anthony, look asked, would say at margin first really. On that you you the profile, questions it I

dilutive beginning bucket margin our that's X first comes That in follow but our equal to The to accretive particular our to entirety, said. are will average. business it corporate pump in in stages. to in us, average, going is as I so corporate its volume is catheters QX, that average, hit The the already that is gross

then uplift core our our accretive, how You'll on basis catheters to that driving well, the so multiyear update you that volume performing get and operating that's I guidance an Even model are the an to over outlined you in so margin with should his additional EPS obviously pumps it. first, despite XX QX, that the business coming send of and have points pump been the really that: able points still points in get we margin signal the and from strong period, comments. basis next just will the Tom community in XX should business, basis XX make gross point want in the that coming And our the gross a investment margin exceptionally driving to core is

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

States. follow-up on million. think IABPs. $XX of then on Just the -- here I to fair the opportunity think that's that guidance for already IABP $XX the about Liam, guys Maybe is for specifically, the million year range in have market, a million like is Anthony's, as something is that the $XX look and at you is you that it U.S. I don't only for And

opportunity of that year. X/X and next in So it QX get then thinking about you're of more into here going to you're

opportunity? think And opportunity the I guess, that why that be way an wouldn't suspended? CE to right is the being mark about Europe with So

Yes. Thank you.

at think I I the time. it's that would is this, Matt, evolving look way in that real

to this May have just on happened remember X. You

well start June. of first And August. volume the Our you in back got inbound day sitting we end the increase didn't really here are cold ] to [ until into of

develop of just I the take So further majority you the tell at later. pumps. line. in is XXXX. a balloon that assessment is minimum time give would The to way half agree look opportunity with would will more it that is the and catheters share to call-up there intra-aortic The with that at will trying first come market your of associated you. I'm the a I

suspensions Europe, the question the -- your been short-term competitor, where they've past Regarding the had market. of on we've in short with out and the term

expectations XXXX, If that our months. time, to Matt. they period for what's unless the X switches why in a you short And extended we're mark withholding to for go make happen there's out time. match back evolving Europe would That's also manufacturing in to that scale little an would were out the going very of volume of continue up our change. as scaling we tempering I begun is CE and demand. And beyond that in up then we've situation, that I to said, point can the sure

and the match today, from As both we I to that comfortable nature the here demand pumps really sit just process for able that I of are the any manufacturing catheters. feel comes this opportunity because the of

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

onetime-use to pump to million disposables? any out here, balloon continue this there $XXX talked but hate I market just break trend you on quickly, way about, versus the is capital

of look cycle. an the catheters you about about So and way annual half. it, to the to is I would say $XXX you Because X at the last just comes over on the remember Half years, for capital and break that get Jayson, out will used half it million, wanted the easiest that, basis. if pumps from

rule reasonable the thumb $XXX a that's of for So million.

guidance, maybe Okay. EPS. on the for And Tom,

XQ. beat You

to You buyback? lifted raise, related how much is guidance, to the that of EPS $X.XX the of the margin $X.XX but

organic $X.XX really raise, think to performance about an the as coming that's from we just $X.XX increase. the of It's Well, the business. underlying

the offset share reduction in to minuses, get to is of offset we some we incremental increase we're associated the expense the the going that's assume then pluses going interest the revenues, As IABP And and the the payback. at Italy buyback in look with some impact by which being from count.

is buyback be to shares average the in additional expected the offset reduction being EPS neutral a result in being XXXX outstanding. of itself expense weighted as So interest by and that incurred

to $X.XX is of the really the business. $X.XX again, organic due So strength the to underlying

repurchase share the would XXXX. from benefit the in that Jayson, be add, just I'll seen

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

the I was update business you can you was doctor's wondering us a side give interventional in for detail. if office the what this UroLift? an on quarter? Liam, from are seeing more M&A contribution And What urology bit little on

Shagun. Absolutely,

profile continues the full in On tell to the biggest are no I of it to hospital the year, -- Shagun, be QX, rep, the million performance profile now at definition, the in-line, X.X% will million. and the those of change, outlined of case we Sciences and of Barrigel, our back performing no prepared change sales really Palette, And selling the we're in revenue we for The no to the as $XX from I half XX of guidance very, doctor's dual-bag pleased Palette, in with in Palette broadly urology. into year an and really tell the was by field really performance the office. to first ramp to in very being has updating of $XX the of those pleased holding been second -- we're $XX so growth remarks, that the in $XX little challenged; to sales remain year it's the similar and half reps, still on of year change the Life done amount been through cross-training million, sites the UroLift is where full Life to you always completed, products. our change reps. get improvement the reps, no we're both Sciences our procedures the in the Barrigel. side, but dual-bag has you no office office service interventional the continues growth And continues performance with and challenged. our on as based particular Palette in guidance as of sales in anticipate change It that, will guidance we versus million,

end you which do component us And cadence XX.XX%? margins of impact. mentioned margins stand you it. for where for the an gross capital follow-up And Tom: as half? the at low to IABP. Got relative just with a prior then operating is going was and and you Especially, Can your have in LRP, XX.X back help to the margins, The

stable profile that, our of average. Well, we'll gross a what of the we're Liam's QX in stronger given on I that QX. say slightly back leverage the is is on expecting operating the gross revenue just and pretty from half margin to And point, to to the the going margin dilutive revenues. line, incremental further IABPs fairly fourth year the line quarter the margin the we're And would margin in some see overall see

-- get of get they there. sites there for that pathway longer We're business. the there, we'll margin, gross but appropriate the IABP in to to targets to the an we're again, going still the about from towards. some as see continuing for to company. I'd the start it profile believe I targets as continue update to catheters, manufacturing sell as our on the And into XXXX, is inflation be say, good we a are to that, we as So XXXX mix, strong of get margin you see working are to performance we'll think term that appropriate and would improving LRP, guidance. more that to we on the say able opportunity, need that for out us improve we

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

shifts the any a existing that for are how maybe catheter that, over give us little on cannibalization and portfolio; and device expectations what that fits; share just balloon on portfolio what more your existing where discussion. balloon you augments of detail catheters? Maybe sort your time Ringer maybe to your of Could

has It an ] growing in our complex sales the point is approximately Ringer for $XX The is our I market. [ indication, And part of that catheters. force PTCA. is PTCA right call sell the indication million George. into biggest a its which as Thanks, said,

completed of which to $XX be And pretty Our the market. And in we've part the no know, cardiologists There to tell as with there thinking current the we case they next their peripheral. continue much product is accidental puncture regard in Ringer in the all it's us And just where interventional your it and peripheral. it product is do allows the our may heart helps will vessel. your perforation, this and of to will is there George, what that into an so procedure them does one surgeons the cannibalization, market be the question a additional on effect hands, product get on When portfolio. we've X innovative will next is. study by this that the a for indications a million as catheter. interventional to is product. application indication cardiologists legs, where be into this we to the And the My that the grow using in continue the bigger expectation is got

again innovation interventional example within business. another So of access the the

the products particular business interventional cardiology. New of is the into in lifeblood this

the ongoing of want in interaction the wire. seen cath You products with MANTA new that and the an clinician within we've bag basis. it having allows lab, your and with it front seen Wattson in to on be We've

product happy Now we're in to was it that ahead with see little time of And going bit line. really Ringer. this a its we're --

execution with that organization well, So as the unit of George. we're the R&D happy within business

Okay, segment complete. was we really back to that any talked I much segment, about impact interventional forward? in potential helpful of How with to just switching headwind, sequential think How there's headwinds that. appreciate great. quantifiable And that's maybe training if color. going any, if about urology training that? that I'm should a you tailwinds now that That's curious the or

what the we cross-training. of hard the knew the in half to the impact year, but of always quantify planned of for be back go it's it's therefore, think improving back we I been to the you the of it had first urology that, an the half in half going year, And the would was Well, year. interventional have We that anticipated towards as impact.

will in come the tailwinds think George. I X my in buckets, mind,

really an Now ramping as back reps And performance, million you the want half on that's is Palette first have we of again we're improvement year X.X%, as the that have our guide And through. sales an would our know, the interventional you just talking tailwind ability have that for and about -- of to And the at and X think confident for Barrigel, quarter more opportunity. out there we tied surgeons, training in the to expect but maintained so half you well, other that. the so UroLift so up in Barrigel portfolio as reps I as their one and I to reiterate on in was these Barrigel on expect were based there George. somewhat quarter positioning X always get go out road then anticipated, in pleased X deliver back to call we're we'd urology the up the we back also

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

This in is for Larry. Vik

been has EBIT-to-EBITDA revenue seeing you M&A you a what or more to about a major your had then Can M&A talk And historically. ] on what one, growth are so, First you're just if the on And And front? focused I price-to-sales deals? areas? contributor [ follow-up.

Honestly, are close that always we're and we one chasing out assets have time, active of very any At we Yes, active Vik. attention paying number to. there. there. out We're a

for environment, at M&A X.Xx on mind, ASR. has in pro And my private Our forma the the leverage million helps We're assets. $XXX even I with think improved the that us.

that vascular we and We to a areas expectations area we for cath valuations, medicine. for team a as like the repurchase is is restate tempering kept the I've focus a OEM that do. -- think, in like is worst care unit cold surgical on, The not really like day, the emergency us; I intensive secret that I in our would share lab really could we're the In tuck-ins focused substitute valuation somewhat. of M&A. an the it's seen point. every for single in

and And generation And do do flow for capital M&A the way to repurchase, to return the our us, to share can going we are just both do both. is shareholders. to repurchase. have We we alongside the cash share another

support dividend. We continue to our

and sure, intend to to reinvest We good M&A. we continue in really do continue for the business, to

line available. are are The assets the you a on the that your are both "Are to assets earnings, spectrum hard top and aware value dilutive that or question is accretive?" that other dilution are look Vik. at assets and of If that we favorable add to we're answer, there part is not covering, looking chasing to we outcome. And and at those continue out you

does Great. you ASR say, in the heard you I you growth think the had get an When that expect follow-up more be of completed? heard a I say, or year? it's to just And to Tom I ASR. next do I on maybe impact double-digit XXXX.

to kick it to months quickly to to X expect pretty we take potentially we off complete ASR. And So the here. expect that X

the in given but that for we're that the our just how to talk wait XXXX, shares growth far point its more in are calculated number. year, going beginning as to weighted average to about guidance as in So just next just that's really entirety, wasn't XXXX it benefit due until

that As more to we Liam comprehensively be year. the And seeing as guidance we'll but XXXX, see in earnings Call Earnings provide as pointed of Quarter we than again for out, XXXX. share get are discuss into we impact the I'll in a benefit at XXXX, will Fourth our

the Rich with from line Truist. comes of question Newitter next Our

strong apologize, your about I confidence opportunity, is If conversions pumps, start, sure of talked earnings impact. share into the was to So What I'm the margin versus juggling that this would couple gains? revenue but you to or quote on answered, quote calls. could I activity. make convert and love a just want you on activity hear the understanding I that. to just just I'm impact then actual And the IABP

So that of going because IABP share lower right? be piece. margin Is gains to capital upfront are the

its to the catheter business business. not above, the intra-aortic because It's margins. the the and a slightly sure make is want ] I margins on margins realize equal and it's on gross balloon the the pumps. the margins. core driven really are that on drag the margins, to by just gross just -- business to op big but core the the points, people call-up [ the attributable that is to despite and Rich, XX it's entirety, of performance below, correct. company's slightly not but below is so gross the The actually in The capital that call-up equal, is Yes, is slightly overall It's basis

there around with our is X good to conversion -- relation were but product X%. in rate overall your of share, quotes, at market growing the to and growing. convert marketplace. potential is the And in The ability market those suppliers X% one, Regarding in in which well, was question, past, a or line was it our the

last intra-aortic pump over Our share market growing catheter has that double and number at the than balloon been business growth. more of years

in referred taking So share Pacific. the U.S. quote advised our to where we customers Asia volume supplier. have Rich, And The continued to, I been particular that to in is and we're States, based have quote high, been by incredibly -- that in in with is QX FDA alternative the exclusively in converting the the on call-up the level activity in associated confidence volume an United strongly seek seeing.

on then back mechanics adjusted a just reserve item payback you the added to getting And add-back, just explain back that's the revenue, why Okay. adding the adjustment? Italian of can you're that,

cover that, Rich. to I'm going to Tom ask just

sure. Yes,

XXXX. how the of being be to reserves answers XXXX, $XX.X to year the that's reserves of color. to adds If And back performance [indiscernible] reserves reserve, question. so it $X operating behind additional Hopefully, million I'm done as the is remaining the $XX.X year. impact that related additional performing million. $XX.X in provide It's Rich, kind the not, is part from we visibility prior The of happy related So wanted more largely ongoing we periods. provide million And to to because to your business prior-period the million. the taking second add-back able the quarter, is don't are it. this true-up of see that are total this we logic of to to of the related that that

current as we July. add million people we X our just our I booking of the up in after we're sure to is because the good the be related by to closed And company. in quarter booked that, $XXX be something the end make real prior current we million And year, range took rolled another in until the the million said; in the we we aware because when $XX.X you to should the didn't top half impact that a representation ever a When as back there's of And happen and X million numbers slightly year the in time -- is a that Tom year. -- booking other that that's then think said, Tom I wouldn't and of late above $XXX July. in this million. to what Rich, guidance are And performance QX, were that the company. periods just year And of QX, to therefore realize, to -- the want and of in just of of

Polark of question next the our comes with line from Mike Wolfe. And

A follow-up and then one on other. balloon pumps

to sole teetering there challenges, relative balloon your price this with you pump, a to the market? kind On the convert the then captive to for these market sourcing market be is pumpers, history consumable the as expect is given orders here, component consumable That's the competitors' do open? you on of And question. one

all, on actual the incredibly the of high. to the of First rate is attachment catheters, brand pump the

catheter the it that mean at By and -- what you catheter. the the and the I If because it work adapters you The if within companies process. catheter. that's pump pump, fiber you optic It's pump, part all by ]. reasonably have the how of used how competitor well not And you use Teleflex sensor catheters traditionally, the used Both syncs the sensor that our is the decision-making of used competitor the a Teleflex good work a catheters, as [ differently. catheter has has competitor catheter pulses. tip converting that's

work fiber many dual the that IDN. to customer for catheter the incredibly lasers, you'll price, where So rate of IDNs, so pump attachment don't of as an on the relation normally the they we therefore, brand on hospitals In optic high have uses. the brand are to well these within is sourced

competitor Some pumps. use will

Some use our pump. will

and we're market catheters multiyear a not the over maintaining share trying So maintaining the a agreements we really term increases so already a relation position to I'm in place, at and over this convert to stronger position period look much XX-month in as period. converting anticipating have the And pricing price long market. significant we and maintaining that

Helpful, Liam.

the I It anything to there understand For in so per earnings looks of want call the reduction guidance. just substance? there share line, GAAP follow-up, restructuring increase out to is to an the in be

the mind. I'll just go gap, Tom ask if you to don't over

No, really Yes, to call there's nothing out, yes.

the Okay, business as usual, Mike. questions. Thanks for

is And of with the Craig our next question from BofA. line Bijou

a M&A. a then I just interventional and on quick on had follow-up urology follow-up

mid-XXs million. appreciate business, guidance growth and success the suggest do guidance was, Or change? urology that midpoint. for I down it's flat X Palette's at adding which growth think kept that know And of to maybe -- that I Palette just X that Does by there, wanted it with there's maybe I were potential expecting million a with raised or you the if So then goes would interventional it upside. but UroLift more, you've what profile

international of I So you mean, would call anything side UroLift with maybe the that out?

think, fact, So better, doing Craig, by. right. very Palette your math is That's encouraged a we're but I

million. as the pro this what XXs that rate be expecting. had is will in you're correct greater we at think year High I you year, forma, -- would be than of look teens, were as you if thought we And originally $XX also did We low insofar the last growth it XXs. that the in excess we anticipated.

educating existing convert from we're seeing do entirety, I we on XX% With space, encouraging. what's the its there If so in customer will that's that to regard think to oncologists bring encouraging midpoint, that results for are our incredibly And so tell continuing spacing, I positive. the you overseas, in product understand the also very, need that million, you is is to UroLift are to important the spacing. base and very aspect. take around going $XX are radiation growing, white for so urology the this interventional Japan growth, you we're And to that

us And next Japan, the I and XXXX. to of specifically is nice expand to within that Barrigel. for represent continue the talk approved of biggest in enrollment would on continue market And first that Also, would we opportunity beginning a to internationally, Japan We out because that also are call we penetrate is would what that market half in the market. Barrigel it we anticipate getting I overseas the that patients for China. for market the for as we it get by is in system, Thanks we the the product provinces million. continue larger And the market that, biggest The And some expand trial seed will to to market study Barrigel an the indication. Craig. probably continue potential with $XXX for next approximately there, believe probably tender expanded the the to of on Chinese question.

the it. quickly, repurchase are Maybe, If or you just Vik's make line dilution potentially Got share take as just on question. how can more it authorization actual bottom and ASR, I you to, to on does offset the I impact? from thinking on, because the follow-up M&A could believe was, maybe some repurchase M&A share you -- a add willing the

M&A, So a fact that's seen I mean, if of craig; you've just you've life. one seen M&A, and one

now and as excess also different. dilutive, margins very We and well assets, all look look call-up we're on acutely the of a at at asset about any handful on its looking per they're X is at at factor be acquisitions. know in million that are all would share focused the accretion, on specific margins every but dilution company I of Palette, look we're don't an So returns. and UroLift as We of in that time, in asset We earnings M&A; Palette the merits. of And chasing And a excess its was a on view think each one share doing we're We own metrics repurchase at offset. merits. at average. that we

now EPS but his with marketplace. X% the does see to shareholders actually to to year growth, Tom you a And EPS for line sight So in that -- become to of in when a been to be XX%, we apologize to underlying now, so XXXX, in contributor it can wait good EPS. has accretive prepared will the outlined Palette solid that have accretion, is in as remarks, that

and questions, the -- thanks Craig. again for So

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

on Just largest ones EMEA. your X geography, second quick

and increased you I how called out if either think utilization, and that I posted, rate I do you wondering or you yes. comment you where, on is? guess, better how then then, that supply was sustainable growth could And that. think like, capacity

think hasn't year $X really growth; for part but had EMEA what States, tell at grown is the that's in encouraged We Yes, guidance booked from? Germany, moving Dave, which we well. year. had longer -- a in really quarter, these mid-singles. and And it this be you interventional strong will we'll I MANTA encouraging million are strong lift higher interventional lower -- really took as forever. levels, really We remainder level. we EMEA emergency access. term, seeing. those to that sustainable in the executing, be the we're From strong, a France strong is for to within these the our it expect product-specific that actually our that question. very the map solid X.X%. we thanks couple Where as we [ much, the through next in years medicine, the maybe the But mid-single-digit come to market. market. What's would Dave. ]. over that the we quarter, way before within this we even levels EMEA urology Europe it is would your United were we're the to I of But maybe grown seeing interventional Is in And and geographies, up does performance that into we then a area, at down were by to in the a encouraging very Spain. go and penetrate of access, with And team not me the other came And very so quite quite that the the expect continues there within were Italy of in

question, the asked to I hear. it's but good why yes, That's

call Lawrence turn And Keusch. to the Mr. over I will back now

the you, This to us Second that joined everyone Conference Thank Kayla. today. thank Incorporated Earnings the on concludes call Call. you Teleflex XXXX And Quarter

you your And lines. now may disconnect