Teleflex Incorporated (NYSE:TFX) Q4 2022 Earnings Call Transcript

Liam Kelly: Yes. As we said in our prepared remarks, and as I said a couple of times already, the changes that we’re making is we’re revising the high-growth bucket and the UroLift component of that high-growth bucket, and we’re adding Standard Bariatrics. So that’s it. That’s correct.

Matt Mishan: Okay. And then just for Tom, on the tax rate, 10.25% to 10.75% for 2023 is pretty low, especially compared to historical standards. What’s driving that for 2023? And how should people think about the sustainability of that tax rate moving forward into the next couple of years?

Thomas Powell: Well, I would say that, as you look at 2023, there’s two drivers of the tax rate. One is the change in the tax law related to the capitalization of R&D expenses. We’ll start to provide some ability to amortize in 2023. So we have a less of an expense impact as a result of that. And the other driver would be the IT consolidation projects or consolidation projects that we’ve undertaken will begin to show a higher benefit in 2023. And those benefits will continue throughout the LRP time frame. So you should think about the rate as being sustainable. I would say that there is one caveat in that the EU is currently assessing a minimum tax, if that were to become legislation, that could have an adverse impact on our tax rate.

Liam Kelly: And Matt, I just want…

Thomas Powell: And I should say that’s contemplated for 2024, no 2023 impact.

Liam Kelly: Sorry, Tom. Yes. And Matt, I just want to circle back on the Standard Bariatrics question. The difference between pro forma and Standard Bariatrics as is isn’t that significant, given that the product is only recently on the market and the growth has been driven by Teleflex, following the training of our sales force. So we’ve doubled the sales force. So, it isn’t that significant, the difference one way or the other, Matt, is what I would tell you.

Operator: Those are all the questions we have time for today. So I’ll now turn the call back to Lawrence for any concluding remarks.

Lawrence Keusch: Thank you, Emily, and thank you to everyone that joined us on the call today. This concludes the Teleflex Incorporated Fourth Quarter 2022 Earnings Conference Call.

Operator: Thank you, everyone, for joining us today. Our conference call for today is now concluded. Thank you for your participation. You may now disconnect your lines.