Document

EX-99.1 2 ex991to8-2x20238xkreq22023.htm EX-99.1 Document

Exhibit 99.1


FOR IMMEDIATE RELEASE			August 3, 2023

Teleflex Reports Second Quarter Financial Results and Full Year 2023 Outlook

Wayne, PA -- Teleflex Incorporated (NYSE: TFX) (the “Company”) today announced financial results for the second quarter ended July 2, 2023.

Second quarter financial summary

•Revenues of $743.3 million, up 5.5% compared to the prior year period; up 5.9% on a constant currency basis

•GAAP diluted EPS from continuing operations of $2.35, compared to $2.23 in the prior year period

•Adjusted diluted EPS from continuing operations of $3.41, compared to $3.39 in the prior year period

2023 guidance summary

•Raising GAAP revenue growth guidance to 5.80% to 6.55%

•Raising the low end of constant currency revenue growth guidance to 5.50% to 6.25%

•Lowering GAAP EPS from continuing operations guidance to $7.33 to $7.93

•Maintaining adjusted diluted EPS from continuing operations guidance of $13.00 to $13.60, reflecting estimated dilution from the acquisition of Palette Life Sciences AB

"Our solid second quarter performance reflects the strength of our diversified product portfolio and global execution" said Liam Kelly, Teleflex's Chairman, President and Chief Executive Officer. "The global environment was stable during the second quarter, and we expect a continuation in the second half of 2023. In addition, we took an important step forward in our durable growth strategy with the agreement to acquire Palette Life Sciences AB. The acquisition of Palette provides us with a high growth portfolio featuring a sculptable rectal spacer that will expand our Interventional Urology franchise with complementary adjunctive therapy for prostate cancer, which we expect will contribute meaningfully to our growth in the coming years.”

NET REVENUE BY SEGMENT

The following table provides information regarding net revenues in each of the Company's reportable operating segments for the three and six months ended July 2, 2023 and June 26, 2022 on both a GAAP and constant currency basis.


	Three Months Ended		% Increase / (Decrease)
	July 2, 2023	June 26, 2022	Reported Revenue Growth	Currency Impact	Constant Currency Revenue Growth
Americas	$424.7	$412.7	2.9%	(0.1)%	3.0%
EMEA	147.8	145.2	1.8%	1.1%	0.7%
Asia	86.7	76.6	13.1%	(6.0)%	19.1%
OEM	84.1	70.0	20.2%	0.4%	19.8%
Consolidated	$743.3	$704.5	5.5%	(0.4)%	5.9%


	Six Months Ended		% Increase / (Decrease)
	July 2, 2023	June 26, 2022	Reported Revenue Growth	Currency Impact	Constant Currency Revenue Growth
Americas	$836.5	$790.7	5.8%	(0.2)%	6.0%
EMEA	291.2	282.1	3.2%	(2.1)%	5.3%
Asia	165.4	145.8	13.5%	(7.3)%	20.8%
OEM	161.1	127.7	26.2%	(0.2)%	26.4%
Consolidated	$1,454.2	$1,346.3	8.0%	(1.3)%	9.3%

NET REVENUE BY GLOBAL PRODUCT CATEGORY

The following table provides information regarding net revenues in each of the Company's global product categories for the three and six months ended July 2, 2023 and June 26, 2022 on both a GAAP and constant currency basis.


	Three Months Ended		% Increase / (Decrease)
	July 2, 2023	June 26, 2022	Reported Revenue Growth	Currency Impact	Constant Currency Revenue Growth
Vascular Access	$173.8	$163.9	6.0%	(0.6)%	6.6%
Interventional	124.8	114.4	9.1%	(0.5)%	9.6%
Anesthesia	100.8	104.7	(3.7)%	(0.1)%	(3.6)%
Surgical	106.0	99.6	6.3%	(1.4)%	7.7%
Interventional Urology	77.8	79.8	(2.5)%	(0.2)%	(2.3)%
OEM	84.1	70.0	20.2%	0.4%	19.8%
Other	76.0	72.1	5.3%	0.5%	4.8%
Consolidated	$743.3	$704.5	5.5%	(0.4)%	5.9%


	Six Months Ended		% Increase / (Decrease)
	July 2, 2023	June 26, 2022	Reported Revenue Growth	Currency Impact	Constant Currency Revenue Growth
Vascular Access	$351.4	$330.1	6.5%	(1.4)%	7.9%
Interventional	241.7	211.3	14.4%	(1.5)%	15.9%
Anesthesia	194.2	191.6	1.3%	(1.1)%	2.4%
Surgical	205.0	189.3	8.3%	(2.5)%	10.8%
Interventional Urology	153.2	154.7	(1.0)%	(0.3)%	(0.7)%
OEM	161.1	127.7	26.2%	(0.2)%	26.4%
Other	147.6	141.6	4.2%	(1.4)%	5.6%
Consolidated	$1,454.2	$1,346.3	8.0%	(1.3)%	9.3%

OTHER FINANCIAL HIGHLIGHTS

•Depreciation expense, amortization of intangible assets and deferred financing charges for the six months ended July 2, 2023 totaled $122.0 million compared to $116.7 million for the prior year period.

•Cash and cash equivalents at July 2, 2023 were $250.8 million compared to $292.0 million at December 31, 2022.

•Net accounts receivable at July 2, 2023 were $429.3 million compared to $408.8 million at December 31, 2022.

•Inventories at July 2, 2023 were $631.6 million compared to $578.5 million at December 31, 2022.

2023 OUTLOOK

The Company increased its full year 2023 GAAP revenue growth outlook to 5.80% to 6.55%, reflecting our expectation that foreign exchange rate fluctuations will not have an impact on our results. On a constant currency basis, the Company increased the low end of the range for its full year 2023 revenue growth outlook for a revised range of 5.50% to 6.25% year-over-year.

The Company lowered its full year 2023 GAAP diluted earnings per share from continuing operations guidance to $7.33 to $7.93. The Company maintained its 2023 adjusted diluted earnings per share from continuing operations guidance of $13.00 to $13.60, representing growth of (0.5)% to 4.1% year-over-year and reflecting estimated dilution from the Palette acquisition.

Forecasted 2023 Constant Currency Revenue Growth Reconciliation


	Low	High
Forecasted 2023 GAAP revenue growth	5.80%	6.55%
Estimated impact of foreign currency exchange rate fluctuations	0.30%	0.30%
Forecasted 2023 constant currency revenue growth	5.50%	6.25%

Forecasted 2023 Adjusted Diluted Earnings Per Share From Continuing Operations Reconciliation


	Low	High
Forecasted GAAP diluted earnings per share from continuing operations	$7.33	$7.93
Restructuring, restructuring related and impairment items, net of tax	$0.61	$0.61
Acquisition, integration and divestiture related items, net of tax	$0.22	$0.22
Other items, net of tax	$0.10	$0.10
Pension termination and related charges, net of tax	$0.71	$0.71
ERP Implementation, net of tax	$0.05	$0.05
MDR, net of tax	$0.59	$0.59
Intangible amortization expense, net of tax	$3.39	$3.39
Forecasted adjusted diluted earnings per share from continuing operations, net of tax	$13.00	$13.60

CONFERENCE CALL WEBCAST AND ADDITIONAL INFORMATION

A webcast of Teleflex's second quarter 2023 investor conference call can be accessed live from a link on the Company's website at teleflex.com. The call will begin at 8:00 am ET on August 3, 2023.

An audio replay of the investor call will be available beginning at 11:00 am ET on August 3, 2023, either on the Teleflex website or by telephone. The call can be accessed by dialing 1 800 770 2030 (U.S.) or 1 647 362 9199 (all other locations). The confirmation code is 87648.

ADDITIONAL NOTES

References in this release to the impact of foreign currency exchange rate fluctuations on adjusted diluted earnings per share include both the impact of translating foreign currencies into U.S. dollars and the impact of foreign currency exchange rate fluctuations on foreign currency denominated transactions.

In the discussion of segment results, "new products" refers to products for which we initiated commercial sales within the past 36 months and "existing products" refers to products we have sold commercially for more than 36 months.

Certain financial information is presented on a rounded basis, which may cause minor differences. Segment results and commentary exclude the impact of discontinued operations.

NOTES ON NON-GAAP FINANCIAL MEASURES

We report our financial results in accordance with accounting principles generally accepted in the United States, commonly referred to as “GAAP.” In this press release, we provide supplemental information, consisting of the following non-GAAP financial measures: constant currency revenue growth and adjusted diluted earnings per share. These non-GAAP measures are described in more detail below. Management uses these financial measures to assess Teleflex’s financial performance, make operating decisions, allocate financial resources, provide guidance on possible future results, and assist in its evaluation of period-to-period and peer comparisons. The non-GAAP measures may be useful to investors because they provide insight into management’s assessment of our business, and provide supplemental information pertinent to a comparison of period-to-period results of our ongoing operations. The non-GAAP financial measures are presented in addition to results presented in accordance with GAAP and should not be relied upon as a substitute for GAAP financial measures. Moreover, our non-GAAP financial measures may not be comparable to similarly titled measures used by other companies.

Tables reconciling changes in historical constant currency net revenues to historical GAAP net revenues are set forth above under “Net Revenue by Segment" and "Net Revenue by Global Product Category". Tables reconciling historical adjusted diluted earnings per share from continuing operations to historical GAAP diluted earnings per share from continuing operations are set forth below.

Constant currency revenue growth: This non-GAAP measure is based upon net revenues, adjusted to eliminate the impact of translating the results of international subsidiaries at different currency exchange rates from period to period. The impact of changes in foreign currency may vary significantly from period to period, and such changes generally are outside of the control of our management. We believe that this measure facilitates a comparison of our operating

performance exclusive of currency exchange rate fluctuations that do not reflect our underlying performance or business trends.

Adjusted diluted earnings per share: This non-GAAP measure is based upon diluted earnings per share from continuing operations, the most directly comparable GAAP measure, adjusted to exclude, depending on the period presented, the items described below. Management does not believe that any of the excluded items are indicative of our underlying core performance or business trends.

Restructuring, restructuring related and impairment items - Restructuring programs involve discrete initiatives designed to, among other things, consolidate or relocate manufacturing, administrative and other facilities, outsource distribution operations, improve operating efficiencies and integrate acquired businesses. Depending on the specific restructuring program involved, our restructuring charges may include employee termination, contract termination, facility closure, employee relocation, equipment relocation, outplacement and other exit costs associated with the restructuring program. Restructuring related charges are directly related to our restructuring programs and consist of facility consolidation costs, including accelerated depreciation expense related to facility closures, costs to transfer manufacturing operations between locations, and retention bonuses offered to certain employees as an incentive for them to remain with our company after completion of the restructuring program. Impairment charges occur if, due to events or changes in circumstances, we determine that the carrying value of an asset exceeds its fair value. Impairment charges do not directly affect our liquidity, but could have a material adverse effect on our reported financial results.

Acquisition, integration and divestiture related items - Acquisition and integration expenses are incremental charges, other than restructuring or restructuring related expenses, that are directly related to specific business or asset acquisition transactions. These charges may include, among other things, professional, consulting and other fees; systems integration costs; legal entity restructuring expense; inventory step-up amortization (amortization, through cost of goods sold, of the increase in fair value of inventory resulting from a fair value calculation as of the acquisition date); fair value adjustments to contingent consideration liabilities; and bridge loan facility and backstop financing fees in connection with loan facilities that ultimately were not utilized. Divestiture related activities involve specific business or asset sales. Depending primarily on the terms of a divestiture transaction, the carrying value of the divested business or assets on our financial statements and other costs we incur as a direct result of the divestiture transaction, we may recognize a gain or loss in connection with the divestiture related activities.

Other - These are discrete items that occur sporadically and can affect period-to-period comparisons.

Pension termination and related charges - These adjustments represent charges associated with the planned termination of the Teleflex Incorporated Retirement Income Plan, a frozen U.S. defined benefit pension plan, and related direct incremental costs. These charges and costs do not represent normal and recurring operating expenses, will be inconsistent in amounts and frequency, and are not expected to recur once the plan termination process has been completed. Accordingly, management has excluded these amounts to facilitate an evaluation of our current operating performance and a comparison to our past operating performance.

European medical device regulation - The European Union (“EU”) has adopted the EU Medical Device Regulation (“MDR”), which replaces the existing Medical Devices Directive (“MDD”) and imposes more stringent requirements for the marketing and sale of medical devices in the EU, including requirements affecting clinical evaluations, quality systems and post-market surveillance. The MDR requirements became effective in May 2021, although certain devices that previously satisfied MDD requirements can continue to be marketed in the EU until May 2024, subject to certain limitations. Significantly, the MDR will require the re-registration of previously approved medical devices. As a result, Teleflex will incur expenditures in connection with the new registration of medical devices that previously had been registered under the MDD. Therefore, these expenditures are not considered to be ordinary course expenditures in connection with regulatory matters (in contrast, no adjustment has been made to exclude expenditures related to the registration of medical devices that were not registered previously under the MDD).

Intangible amortization expense - Certain intangible assets, including customer relationships, intellectual property, distribution rights, trade names and non-competition agreements, initially are recorded at historical cost and then amortized over their respective estimated useful lives. The amount of such amortization can vary from period to period as a result of, among other things, business or asset acquisitions or dispositions.

ERP implementation - These adjustments represent direct and incremental costs incurred in connection with our implementation of a new global enterprise resource planning ("ERP") solution and related IT transition costs. An implementation of this scale is a significant undertaking and will require substantial time and attention of management and key employees. The associated costs do not represent normal and recurring operating expenses and will be inconsistent in amounts and frequency making it difficult to contribute to a meaningful evaluation of our operating performance.

Tax adjustments - These adjustments represent the impact of the expiration of applicable statutes of limitations for prior year returns, the resolution of audits, the filing of amended returns with respect to prior tax years and/or tax law or certain other discrete changes affecting our deferred tax liability.

Reconciliation of Consolidated Statement of Income Items (Dollars in millions, except per share data)


Three Months Ended July 2, 2023
	Gross margin	Selling, general and administrative expenses (1)	Research and development expenses (1)	Operating margin (2)	Income before income taxes	Income tax expense	Effective income tax rate	Diluted earnings per share from continuing operations
GAAP Basis	54.9%	30.0%	5.3%	19.3%	$127.0	$15.5	12.2%	$2.35
Adjustments
Restructuring, restructuring related and impairment items (A)	1.0	—	(0.2)	1.5	10.8	1.7		0.19
Acquisition, integration and divestiture related items (B)	—	1.0	—	(1.0)	(7.5)	—		(0.16)

ERP implementation	—	(0.2)	—	0.2	1.3	0.3		0.02
MDR	—	—	(1.0)	1.0	7.6	—		0.16
Intangible amortization expense	3.1	(2.5)	—	5.6	42.0	2.1		0.85
Tax adjustments	—	—	—	—	—	—		0.00
Adjustments total	4.1	(1.7)	(1.2)	7.3	54.2	4.1		1.06
Adjusted basis	59.0%	28.3%	4.1%	26.6%	$181.2	$19.6	10.8%	$3.41


Three Months Ended June 26, 2022
	Gross margin	Selling, general and administrative expenses (1)	Research and development expenses (1)	Operating margin (2)	Income before income taxes	Income tax expense	Effective income tax rate	Diluted earnings per share from continuing operations
GAAP Basis	55.2%	30.8%	5.2%	19.2%	$124.0	$18.4	14.9%	$2.23
Adjustments
Restructuring, restructuring related and impairment items (A)	1.3	—	—	1.3	9.0	0.8		0.17
Acquisition, integration and divestiture related items (B)	—	(0.1)	—	0.1	0.5	0.1		0.01

ERP Implementation	—	—	—	—	—	—		0.00
MDR	—	—	(1.2)	1.2	8.5	—		0.18
Intangible amortization expense	3.1	(2.6)	—	5.7	40.5	1.5		0.82
Tax adjustments	—	—	—	—	—	1.1		(0.02)
Adjustments total	4.4	(2.7)	(1.2)	8.3	58.5	3.5		1.16
Adjusted basis	59.6%	28.1%	4.0%	27.5%	$182.5	$21.9	12.0%	$3.39

Notes: (1) Selling, general and administrative expenses and research and development expenses are shown as a percentage of net revenues.

(2) Operating margin defined as Income from continuing operations before interest, loss on extinguishment of debt and taxes as a percentage of net revenues.

Totals may not sum due to rounding.


Six Months Ended July 2, 2023
	Gross margin	Selling, general and administrative expenses (1)	Research and development expenses (1)	Operating margin (2)	Income before income taxes	Income tax expense	Effective income tax rate	Diluted earnings per share from continuing operations
GAAP Basis	55.0%	31.4%	5.6%	17.8%	$224.4	$35.7	15.9%	$3.99
Adjustments
Restructuring, restructuring related and impairment items (A)	1.1	—	(0.2)	1.6	22.8	3.5		0.41
Acquisition, integration and divestiture related items (B)	—	0.3	—	(0.3)	(4.4)	0.1		(0.10)

ERP Implementation	—	(0.2)	—	0.2	2.5	0.6		0.04
MDR	—	—	(1.2)	1.2	17.9	—		0.38
Intangible amortization expense	3.1	(2.6)	—	5.7	83.6	4.1		1.68
Tax adjustments	—	—	—	—	—	(4.8)		0.10
Adjustments total	4.2	(2.5)	(1.4)	8.4	122.4	3.5		2.51
Adjusted basis	59.2%	28.9%	4.2%	26.2%	$346.8	$39.2	11.3%	$6.50


Six Months Ended June 26, 2022
	Gross margin	Selling, general and administrative expenses (1)	Research and development expenses (1)	Operating margin (2)	Income before income taxes	Income tax expense	Effective income tax rate	Diluted earnings per share from continuing operations
GAAP Basis	54.6%	31.3%	5.4%	17.7%	$217.3	$34.4	15.8%	$3.86
Adjustments
Restructuring, restructuring related and impairment items (A)	1.1	—	—	1.3	17.8	1.9		0.34
Acquisition, integration and divestiture related items (B)	—	—	—	—	0.6	—		0.01

ERP Implementation	—	—	—	—	—	—		0.00
MDR	—	—	(1.5)	1.6	20.6	—		0.43
Intangible amortization expense	3.3	(2.9)	—	6.1	81.2	3.0		1.65
Tax adjustments	—	—	—	—	—	1.1		(0.02)
Adjustments total	4.4	(2.9)	(1.5)	9.0	120.2	6.0		2.41
Adjusted basis	59.0%	28.4%	3.9%	26.7%	$337.5	$40.4	12.0%	$6.27

Notes: (1) Selling, general and administrative expenses and research and development expenses are shown as a percentage of net revenues.

(2) Operating margin defined as Income from continuing operations before interest, loss on extinguishment of debt and taxes as a percentage of net revenues.

Totals may not sum due to rounding.

Tickmarks to Reconciliation Tables

(A)Restructuring, restructuring related and impairment items – For the three months ended July 2, 2023, pre-tax restructuring charges were $1.5 million and restructuring related charges were $9.3 million. For the three months ended June 26, 2022, pre-tax restructuring charges were $(0.1) million and restructuring related charges were $9.1 million. For the six months ended July 2, 2023, pre-tax restructuring charges were $3.7 million and restructuring related charges were $19.1 million. For the six months ended June 26, 2022, pre-tax restructuring charges were $0.8 million; restructuring related charges were $15.5 million; and impairment charges were $1.5 million.

(B)Acquisition, integration and divestiture related items – For the three and six months ended July 2, 2023, these charges primarily related to a decrease in contingent consideration expense and the pending acquisition of Palette Life Sciences AB. For the three and six months ended June 26, 2022, these charges related to the divestiture of respiratory assets.

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®, LMA®, Pilling®, QuikClot®, Rusch®, UroLift® and Weck® - trusted brands united

by a common sense of purpose.

CAUTION CONCERNING FORWARD-LOOKING INFORMATION

This press release contains forward-looking statements, including, but not limited to, our expectation that the global environment will remain stable during the second half of 2023; our expectations regarding the impacts our acquisition of Palette Life Sciences AB. will have on our business, financial results and future growth; forecasted 2023 GAAP and constant currency revenue growth and GAAP and adjusted diluted earnings per share; our estimates regarding the projected impact of foreign currency exchange rate fluctuations on our 2023 financial results; and our estimates regarding the projected impact of the Palette acquisition on our 2023 financial results. Actual results could differ materially from those in the forward-looking statements due to, among other things, delays or cancellations in shipments; demand for and market acceptance of new and existing products; our inability to provide products to our customers, which may be due to, among other things, events that impact key distributors, suppliers and third-party vendors that sterilize our products; our inability to integrate acquired businesses into our operations, realize planned synergies and operate such businesses profitably in accordance with our expectations; the inability of acquired businesses to generate revenues in accordance with our expectations; our inability to effectively execute our restructuring plans and programs; our inability to realize anticipated savings from restructuring plans and programs; the impact of healthcare reform legislation and proposals to amend, replace or repeal the legislation; changes in Medicare, Medicaid and third party coverage and reimbursements; the impact of enacted tax legislation and related regulations; competitive market conditions and resulting effects on revenues and pricing; increases in raw material costs that cannot be recovered in product pricing; global economic factors, including currency exchange rates, interest rates, trade disputes, sovereign debt issues and international conflicts and hostilities, such as the ongoing geopolitical conflict between Russia and Ukraine; public health epidemics, including COVID-19; difficulties in entering new markets; general economic conditions; and other factors described or incorporated in our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K. We expressly disclaim any obligation to update forward-looking statements, except as otherwise specifically stated by us or as required by law or regulation.

TELEFLEX INCORPORATED

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	Three Months Ended				Six Months Ended
	July 2, 2023		June 26, 2022		July 2, 2023		June 26, 2022
	(Dollars and shares in thousands, except per share)
Net revenues	$	743,259	$	704,542	$	1,454,191	$	1,346,257
Cost of goods sold	335,436		315,709		654,988		611,191
Gross profit	407,823		388,833		799,203		735,066
Selling, general and administrative expenses	223,306		216,825		456,022		420,757
Research and development expenses	39,448		36,934		80,917		73,294
Restructuring and impairment charges (credits)	1,508		(83)		3,729		2,322

Income from continuing operations before interest and taxes	143,561		135,157		258,535		238,693
Interest expense	17,762		11,419		36,099		21,837
Interest income	(1,156)		(229)		(1,999)		(451)

Income from continuing operations before taxes	126,955		123,967		224,435		217,307
Taxes on income from continuing operations	15,532		18,412		35,716		34,385
Income from continuing operations	111,423		105,555		188,719		182,922
Operating loss from discontinued operations	(114)		(54)		(825)		(348)
Tax benefit on operating loss from discontinued operations	(26)		(13)		(189)		(81)
Loss from discontinued operations	(88)		(41)		(636)		(267)
Net income	$	111,335	$	105,514	$	188,083	$	182,655
Earnings per share:
Basic:
Income from continuing operations	$	2.37	$	2.25	$	4.02	$	3.90
Loss from discontinued operations	—		—		(0.02)		—
Net income	$	2.37	$	2.25	$	4.00	$	3.90
Diluted:
Income from continuing operations	$	2.35	$	2.23	$	3.99	$	3.86
Loss from discontinued operations	—		—		(0.01)		—
Net income	$	2.35	$	2.23	$	3.98	$	3.86
Weighted average common shares outstanding
Basic	46,981		46,901		46,965		46,889
Diluted	47,329		47,347		47,307		47,374

TELEFLEX INCORPORATED

CONSOLIDATED BALANCE SHEETS

(Unaudited)


	July 2, 2023		December 31, 2022
	(Dollars in thousands)
ASSETS
Current assets
Cash and cash equivalents	$	250,816	$	292,034
Accounts receivable, net	429,309		408,834
Inventories	631,555		578,507
Prepaid expenses and other current assets	120,190		125,084
Prepaid taxes	13,929		6,524

Total current assets	1,445,799		1,410,983
Property, plant and equipment, net	464,609		447,205
Operating lease assets	123,215		131,211
Goodwill	2,546,130		2,536,730
Intangible assets, net	2,227,947		2,306,165
Deferred tax assets	6,278		6,402
Other assets	81,747		89,367

Total assets	$	6,895,725	$	6,928,063
LIABILITIES AND EQUITY
Current liabilities
Current borrowings	$	87,500	$	87,500
Accounts payable	142,081		126,807
Accrued expenses	127,861		140,644

Payroll and benefit-related liabilities	106,177		133,092
Accrued interest	5,793		5,332
Income taxes payable	20,184		24,736
Other current liabilities	65,853		63,381

Total current liabilities	555,449		581,492
Long-term borrowings	1,470,674		1,624,023
Deferred tax liabilities	385,113		388,886
Pension and postretirement benefit liabilities	30,686		31,394
Noncurrent liability for uncertain tax positions	6,534		5,805

Noncurrent operating lease liabilities	112,229		120,437
Other liabilities	119,948		154,058
Total liabilities	2,680,633		2,906,095
Commitments and contingencies
Total shareholders' equity	4,215,092		4,021,968
Total liabilities and shareholders' equity	$	6,895,725	$	6,928,063

TELEFLEX INCORPORATED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Six Months Ended
	July 2, 2023		June 26, 2022
	(Dollars in thousands)
Cash flows from operating activities of continuing operations:
Net income	$	188,083	$	182,655
Adjustments to reconcile net income to net cash provided by operating activities:
Loss from discontinued operations	636		267
Depreciation expense	36,723		33,499
Intangible asset amortization expense	83,600		81,137
Deferred financing costs and debt discount amortization expense	1,700		2,103



Changes in contingent consideration	(6,776)		145
Assets impairment charges	—		1,497
Stock-based compensation	14,020		12,801

Deferred income taxes, net	460		937
Payments for contingent consideration	—		(2,722)
Interest benefit on swaps designated as net investment hedges	(10,288)		(10,145)
Other	2,824		(1,779)
Changes in assets and liabilities, net of effects of acquisitions and disposals:
Accounts receivable	(16,587)		(43,939)
Inventories	(45,630)		(48,682)
Prepaid expenses and other assets	12,120		15,464
Accounts payable, accrued expenses and other liabilities	(53,766)		(38,722)
Income taxes receivable and payable, net	(36,501)		(82,657)
Net cash provided by operating activities from continuing operations	170,618		101,859
Cash flows from investing activities of continuing operations:
Expenditures for property, plant and equipment	(39,374)		(32,445)
Proceeds from sale of business and assets	—		530
Payments for businesses and intangibles acquired, net of cash acquired	(129)		(22,971)

Net interest proceeds on swaps designated as net investment hedges	10,275		10,314


Net cash used in investing activities from continuing operations	(29,228)		(44,572)
Cash flows from financing activities of continuing operations:

Reduction in borrowings	(154,500)		(135,500)

Net payments from share based compensation plans and related tax impacts	572		(4,366)
Payments for contingent consideration	(121)		(3,012)
Dividends paid	(31,941)		(31,892)

Net cash used in financing activities from continuing operations	(185,990)		(174,770)
Cash flows from discontinued operations:
Net cash used in operating activities	(454)		(280)
Net cash used in discontinued operations	(454)		(280)
Effect of exchange rate changes on cash and cash equivalents	3,836		(19,200)
Net decrease in cash and cash equivalents	(41,218)		(136,963)
Cash and cash equivalents at the beginning of the period	292,034		445,084
Cash and cash equivalents at the end of the period	$	250,816	$	308,121

Contacts:

Teleflex Incorporated:

Lawrence Keusch

Vice President, Investor Relations and Strategy Development

investors.teleflex.com

610-948-2836