FIRST QUARTER 2011 EARNINGS CALL April 28 2011 April 28, 2011 - - PDF document

first quarter 2011 earnings call
SMART_READER_LITE
LIVE PREVIEW

FIRST QUARTER 2011 EARNINGS CALL April 28 2011 April 28, 2011 - - PDF document

1 FIRST QUARTER 2011 EARNINGS CALL April 28 2011 April 28, 2011 FORWARD-LOOKING STATEMENTS Some of the statements made in the presentation whether written or Some of the statements made in the presentation whether written or oral may be


slide-1
SLIDE 1

FIRST QUARTER 2011 EARNINGS CALL

April 28 2011

1

April 28, 2011

slide-2
SLIDE 2

Some of the statements made in the presentation whether written or

FORWARD-LOOKING STATEMENTS

Some of the statements made in the presentation whether written or

  • ral may be “forward-looking statements” within the meaning of Section

27A of the Securities Act of 1933, as amended, and Section 21E of Securities Exchange Act of 1934, as amended, and involve a number

  • f risks and uncertainties. These statements can be identified by

terminology such as “may,” “will,” “should,” “could,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are based on the company’s current

  • expectations. The company’s actual results could differ materially from

those stated or implied in such forward looking statements The those stated or implied in such forward-looking statements. The company assumes no

  • bligations

to update forward-looking information, including information in this presentation, to reflect changed assumptions the occurrence of unanticipated events or

2

changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial conditions or prospects.

slide-3
SLIDE 3

EARNINGS CALL PARTICIPANTS

› Thomas J Hook › Thomas J. Hook

  • President & CEO

› Thomas J. Mazza

  • Senior Vice President & CFO

› Marco F. Benedetti

C t C t ll & T

  • Corporate Controller & Treasurer

3

slide-4
SLIDE 4

AGENDA

› First Quarter 2011 Review – Tom Hook › First Quarter 2011 Review – Tom Hook

  • Financial Highlights
  • Strategic Initiatives Update

g p

› First Quarter 2011 Financial Results - Tom Mazza › Question & Answer

4

slide-5
SLIDE 5

FIRST QUARTER 2011 FINANCIAL HIGHLIGHTS

› Record Sales of $148 8 Million › Record Sales of $148.8 Million

  • 13% increase over the prior year
  • Double-digit Vascular Access, Orthopaedic and

g , p Electrochem growth

  • First sales of medical devices developed by Greatbatch

› Operating Results

  • 25% increase in adjusted operating income
  • 25% increase in adjusted operating income
  • Driven by higher sales and gross profit
  • Continued RD&E investment

5

Continued RD&E investment

slide-6
SLIDE 6

STRATEGIC INITIATIVES UPDATE

› Grow & Diversify Revenue › Grow & Diversify Revenue

  • Diversified revenue offsetting slower CRM growth
  • Investments in Orthopaedics and medical device

strategy starting to provide returns D i O ti P f

› Drive Operating Performance

  • Adjusted operating income 12.6% of sales
  • Lean initiatives offset pricing concessions
  • Lean initiatives offset pricing concessions

6

slide-7
SLIDE 7

STRATEGIC INITIATIVES UPDATE

› Deliver Innovative Solutions › Deliver Innovative Solutions

  • First sales of medical devices developed by Greatbatch
  • Design verification testing started on neuromodulation

platform

  • CE Mark received on bi-directional guiding sheath

(previous FDA 510(k) clearance in November 2010) (previous FDA 510(k) clearance in November 2010)

  • CE Mark received on transradial access introducer
  • Customer cost reimbursements received on two

Customer cost reimbursements received on two medical device projects

  • Gain from sale of IntElect Medical

7

slide-8
SLIDE 8

FIRST QUARTER 2011 SALES

› Stable CRM & Neuromodulation revenue › 28% Vascular Access growth › Energy customers rebuilt depleted

inventory levels

› 28% Vascular Access growth

  • Customer inventory reduction

programs complete

› 34% Orthopaedics growth

M d t k t th inventory levels

› Environmental pipeline pulls earlier than

anticipated

› Higher oil price not expected to impact

  • Moderate market growth
  • Customer inventory builds & product

launches

  • Expanded capabilities generating

b i revenue unless sustained for longer periods of time

› Portable Medical growth dependent on

customer regulatory qualifications

8

new business g y q

slide-9
SLIDE 9

FIRST QUARTER 2011 FINANCIAL RESULTS

9

slide-10
SLIDE 10

APPENDIX

10 10

slide-11
SLIDE 11

GAAP RECONCILIATION

11 11

slide-12
SLIDE 12

GAAP RECONCILIATION

12 12

slide-13
SLIDE 13

CONTACT INFORMATION

M F B d tti Marco F. Benedetti Corporate Controller & Treasurer G tb t h Greatbatch 10000 Wehrle Drive Clarence, NY 14031 T l 716 759 5856 Tel 716-759-5856 mbenedetti@greatbatch.com www.greatbatch.com

13 13