Integra Lifesciences Holdings Corporation · NASDAQ:IART
Integra Lifesciences — Q1 2024 Earnings Presentation
19 slides from Integra Lifesciences's earnings presentation, May 6, 2024
Slide 1: Q1 2024 Earnings Presentation
Q1 2024 Earnings Presentation May 6, 2024
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties and reflect the Company's judgment as of the date of this presentation. All statements, other than statements of
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures In addition to our GAAP results, we provide certain non-GAAP measures, including organic revenues, organic revenues excluding Boston, adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted net income, adjusted earnings per diluted sha
Slide 4: Executing On Our Strategy
Executing On Our Strategy Q1 Financial Performance Business Highlights Total revenue $368.9 million (exceeded high-end of guidance) • Strong demand for Integra's diverse portfolio of leading brands -2.5% organic growth (+1.6% excl. Boston) • Continued successful market uptake of CereLink® • CSS +4.4
Slide 5: 2024 Q1 Financial Highlights
2024 Q1 Financial Highlights Revenue & Growth Adj. EPS Q1 Revenue (in $M) $0.55 (25.7%) vs. 2023 $369 $381 Reported Adj. Gross Margin (3.1%) vs. 2023 64.4% (290bps) vs. 2023 ~ $4M above guidance Organic Adj. EBITDA Margin (2.5%) vs. 2023 19.5% (470bps) vs. 2023 +1.6% ex. Boston Q1'24 Q1'23 Operating
Slide 6: Codman Specialty Surgical Q1 Revenue
Codman Specialty Surgical Q1 Revenue Revenues Q1’24 Q1’23 Growth Reported $256.4M $248.1M 3.4% Q1 2024 Organic1 $258.9M $247.9M 4.4% Revenue Composition Q1 2024 Growth and Performance Drivers2 Instruments Neurosurgery Instruments International 23% 6.3% -2.0% High-Single-Digit growth • Neurosurgery:
Slide 7: Tissue Technologies Q1 Revenue
Tissue Technologies Q1 Revenue Growth excl. Revenues Q1’24 Q1’23 Growth Boston Reported $112.4M $132.7M -15.3% -4.4% Q1 2024 Organic $112.4M $132.7M -15.3% -4.4% Revenue Composition Q1 2024 Growth and Performance Drivers1 Private Label 28% Wound Reconstruction Private Label International -19.9% -0.6
Slide 8: Balance Sheet and Cash Flow Performance
Balance Sheet and Cash Flow Performance Operating Cash Flow, Free Cash Flow ($M) & Adj. FCF Conversion (%) Summary Balance Sheet ($M) 12/31/23 3/31/24 FCF Capex 300 Cash and Cash Equivalents $276 $592 250 $246.3 Short-term Investments $33 $71 $46.7 200 90 Total Debt $1,509 $1,865 80 $129.6 150 70 Ne
Slide 9: Q2 and FY 2024 Outlook
Q2 and FY 2024 Outlook Q2 2024 Reported Revenue Guidance Bridge ($M) Q2 2024 Organic Growth (at mid-point) ∼6.6% $411 - $416 • Revenue: $411M-$416M ∼2.0% ∼(0.3%) $381 ∼Flat • Reported Growth +7.8% to +9.1% • Organic Growth +1.3% to 2.6% • Adj. EPS $0.60 - $0.65 FY 2024 Reported Revenue Guidance Brid
Slide 10: Key 2024 Guidance Considerations and Assumptions
Key 2024 Guidance Considerations and Assumptions FY 2024 Boston relaunch SurgiMend and PriMatrix Advanced Energy Neuro Monitoring removed from 2024 guidance HSD1 HSD1 CUSA® Tissue Ablation • CereLink® ICP Monitor Aurora® Surgiscope and Sensors Acclarent acquisition Included in guidance beginning Apr
Slide 11: Committed to deliver on our purpose and promise
Committed to deliver on our purpose and promise Q1 results support path to sustainable mid-single digit organic growth • Demonstrated global demand strength across our diverse portfolio • Q1 Revenue ahead of guidance and adj. EPS at the mid-point • Updated 2024 FY Guidance reflects ∼9% reported gr
Slide 12: Appendix
Appendix Non-GAAP Reconciliations
Slide 13: First Quarter 2024 Financial Results
First Quarter 2024 Financial Results % of Revenues Q1 2024 Q1 2023 Change Total Revenues $368.9 $380.8 (3.1%) Gross Margin 56.1% 61.1% (500BPS) Adj. Gross Margin(1) 64.4% 67.3% (290BPS) Net Income ($3.3) $24.2 (113.5%) Adj. Net Income(1) $43.0 $60.7 (29.3%) Adj. EBITDA Margin(1) 19.5% 24.2% (470BPS)
Slide 14: Organic Growth Reconciliation
First Quarter 2024 Organic Growth Reconciliation (In millions) Q1 2024 Q1 2023 Neurosurgery $202.3 $192.9 Instruments $54.2 $55.3 Total Codman Specialty Surgical $256.4 $248.1 Wound Reconstruction and Care $80.9 $100.9 Private Label $31.6 $31.8 Total Tissue Technologies $112.4 $132.7 Total Reported
Slide 15: Adjusted Free Cash Flow Reconciliation
First Quarter 2024 and 2023 (TTM) Adjusted Free Cash Flow Reconciliation Note: Numbers may not add due to rounding (In millions) Q1 2024 Q1 2023 TTM 2024 TTM 2023 Net Cash from Operating Activities $15.8 $26.2 $129.6 $246.3 Purchases of Property and Equipment ($15.5) ($13.7) ($68.7) ($46.7) Free Cas
Slide 16: Adjusted EBITDA Margin Reconciliation
First Quarter 2024 Adjusted EBITDA Margin Reconciliation Note: Numbers may not add due to rounding (In millions) Q1 2024 Q1 2023 GAAP Net Income ($3.3) $24.2 Depreciation 9.9 10.2 Intangible asset amortization 27.7 20.6 Other (income), net 0.7 (0.9) Interest expense, net 8.6 8.0 Income tax expense/(
Slide 17: Adjusted Net Income & Adjusted EPS Reconciliation
First Quarter 2024 Adjusted Net Income & Adjusted EPS Reconciliation Note: Numbers may not add due to rounding (In millions) Q1 2024 Q1 2023 GAAP Net Income ($3.3) $24.2 Acquisition, divestiture and integration-related charges (1) 4.7 8.8 Structural optimization charges 6.5 4.3 Boston Recall 7.0 - E
Slide 18: Gross Margin Reconciliation
First Quarter 2024 Gross Margin Reconciliation Note: Numbers may not add due to rounding (In millions) Q1 2024 Q1 2023 Reported Gross Profit $206.8 $232.9 Structural optimization charges 5.4 3.1 Acquisition, divestiture and integration-related charges (1) 0.0 1.5 Boston Recall 6.1 - EU Medical Devic
Slide 19: Net Debt Reconciliation
First Quarter 2024 Net Debt Reconciliation Capitalization ($ in millions) 3/31/2024 12/31/2023 Short-term borrowings under senior credit facility 19.4 14.5 Long-term borrowings under senior credit facility 1,171.0 825.6 Borrowings under securitization facility 94.6 89.2 Long-term convertible securit
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