WAYNE, Pa., May 02, 2019 (GLOBE NEWSWIRE) -- Teleflex Incorporated (NYSE: TFX) today announced financial results for the first quarter ended March 31, 2019.
First quarter 2019 net revenues were $613.6 million, an increase of 4.5% compared to the prior year period. Excluding the impact of foreign currency exchange rate fluctuations, first quarter 2019 net revenues increased 7.6% over the year ago period.
First quarter 2019 GAAP earnings per share from continuing operations decreased 24.6% to $0.89, as compared to GAAP earnings per share of $1.18 in the prior year period. First quarter 2019 adjusted diluted earnings per share from continuing operations increased 4.2% to $2.24, compared to $2.15 in the prior year period.
Liam Kelly, President and Chief Executive Officer, said, “The first quarter of 2019 was an outstanding start to the year for Teleflex. We reported constant currency revenue growth of 7.6%, placing us in a strong position to achieve our full year constant currency revenue growth guidance range of between 6% and 7%. From a product perspective, our robust top line performance in the quarter was led by sales of our Interventional Urology, OEM, and Interventional products. While from a geographic standpoint, we achieved particularly strong growth within Asia and the Americas. In addition, during the quarter we continued to invest in driving the adoption of our high-growth, high-margin products, which puts us on track to deliver on both our near, and long-term, financial objectives.”
FIRST QUARTER NET REVENUE BY SEGMENT
The following table provides information regarding net revenues in each of the Company's reportable operating segments for the three months ended March 31, 2019 on both a GAAP and constant currency basis. The discussion below the table of the principal factors behind changes in net revenues for the three months ended March 31, 2019 as compared to the prior year period applies to both GAAP revenue and constant currency revenue, although GAAP revenue also was affected by foreign currency exchange rate fluctuations, as indicated in the "Currency Impact" column of the table.
Americas first quarter 2019 net revenues were $344.0 million, an increase of 6.4% compared to the prior year period. Excluding the impact of foreign currency exchange rate fluctuations, first quarter 2019 net revenues increased 6.7% compared to the prior year period. The increase in constant currency revenue is primarily attributable to an increase in sales volumes of existing products and an increase in new product sales.
EMEA first quarter 2019 net revenues were $154.6 million, a decrease of 3.3% compared to the prior year period. Excluding the impact of foreign currency exchange rate fluctuations, first quarter 2019 net revenues increased 4.5% compared to the prior year period. The increase in constant currency revenue is primarily attributable to an increase in sales volumes of existing products.
Asia first quarter 2019 net revenues were $60.8 million, an increase of 4.3% compared to the prior year period. Excluding the impact of foreign currency exchange rate fluctuations, first quarter 2019 net revenues increased 11.0% compared to the prior year period. The increase in constant currency revenue is primarily attributable to an increase in sales volumes of existing products and an increase in new product sales.
OEM first quarter 2019 net revenues were $54.2 million, an increase of 18.3% compared to the prior year period. Excluding the impact of foreign currency exchange rate fluctuations, first quarter 2019 net revenues increased 20.1% compared to the prior year period. The increase in constant currency revenue is primarily attributable to higher sales volumes of existing products.
First quarter 2019 net revenues from sales of Vascular Access products were $143.9 million, a decrease of 0.1% compared to the prior year period. Excluding the impact of foreign currency exchange rate fluctuations, first quarter 2019 net revenues increased 2.5% compared to the prior year period.
First quarter 2019 net revenues from sales of Interventional products were $103.2 million, an increase of 14.5% compared to the prior year period. Excluding the impact of foreign currency exchange rate fluctuations, first quarter 2019 net revenues increased 17.1% compared to the prior year period.
First quarter 2019 net revenues from sales of Anesthesia products were $80.3 million, a decrease of 5.5% compared to the prior year period. Excluding the impact of foreign currency exchange rate fluctuations, first quarter 2019 net revenues decreased 1.5% compared to the prior year period.
First quarter 2019 net revenues from sales of Surgical products were $86.7 million, an increase of 1.3% compared to the prior year period. Excluding the impact of foreign currency exchange rate fluctuations, first quarter 2019 net revenues increased 5.0% compared to the prior year period.
First quarter 2019 net revenues from sales of Interventional Urology products were $59.7 million, an increase of 41.2% compared to the prior year period. Excluding the impact of foreign currency exchange rate fluctuations, first quarter 2019 net revenues increased 41.5% compared to the prior year period.
First quarter 2019 net revenues from sales of OEM products were $54.2 million, an increase of 18.3% compared to the prior year period. Excluding the impact of foreign currency exchange rate fluctuations, first quarter 2019 net revenues increased 20.1% compared to the prior year period.
First quarter 2019 net revenues from sales of Other products were $85.6 million, a decrease of 9.3% compared to the prior year period. Excluding the impact of foreign currency exchange rate fluctuations, first quarter 2019 net revenues decreased 5.1% compared to the prior year period.
OTHER FINANCIAL HIGHLIGHTS AND KEY PERFORMANCE METRICS
Depreciation expense, amortization of intangible assets and deferred financing charges for the first three months of 2019 totaled $54.6 million compared to $53.8 million for the prior year period.
Cash and cash equivalents at March 31, 2019 were $271.2 million compared to $357.2 million at December 31, 2018.
Net accounts receivable at March 31, 2019 were $375.8 million compared to $366.3 million at December 31, 2018.
Net inventories at March 31, 2019 were $445.6 million compared to $427.8 million at December 31, 2018.
2019 OUTLOOK
On a GAAP basis, revenues in 2019 are expected to increase between 5% and 6% over the prior year, reflecting our estimate of an approximately 1% unfavorable impact of foreign currency exchange rate fluctuations. On a constant currency basis, the Company estimates that revenues for full year 2019 will increase between 6% and 7%.
The Company lowered its full year 2019 GAAP diluted earnings per share from continuing operations guidance from a range of between $6.90 and $7.05 to a range of between $6.72 and $6.84, reflecting the impact of additional restructuring, contingent consideration, intangible amortization expenses, and tax adjustments. The Company expects adjusted diluted earnings per share from continuing operations to be between $10.90 and $11.10 for full year 2019, representing an increase of between 10.1% and 12.1% over 2018, and reflecting our estimate of an approximately 2% negative impact from foreign currency exchange rate fluctuations.
ABOUT TELEFLEX INCORPORATED
Teleflex is a global provider of medical technologies designed to improve the health and quality of people’s lives. We apply purpose driven innovation - a relentless pursuit of identifying unmet clinical needs - to benefit patients and healthcare providers. Our portfolio is diverse, with solutions in the fields of vascular access, interventional cardiology and radiology, anesthesia, emergency medicine, surgical, urology and respiratory care. Teleflex employees worldwide are united in the understanding that what we do every day makes a difference. For more information, please visit teleflex.com.
Teleflex is the home of Arrow®, Deknatel®, Hudson RCI®, LMA®, Pilling®, Rusch®, UroLift®, and Weck® - trusted brands united by a common sense of purpose.
