Integra Lifesciences Holdings Corporation · NASDAQ:IART
Integra Lifesciences — Q4 2023 Earnings Presentation
21 slides from Integra Lifesciences's earnings presentation, Feb 28, 2024
Slide 1: Q4 & Full Year 2023 Earnings Presentation
Q4 & Full Year 2023 Earnings Presentation February 28, 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 release. All statements, other than statements of hist
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: Boston Update and Strategic Highlights
Boston Update and Strategic Highlights Strategic Highlights Boston Status Update • Full-year mid-single digit growth in CSS and high-single digit growth in TT, • Relaunch remains on track for mid-to-late Q2 2024 ex Boston • Completed global CereLink® relaunch with 510K clearance and US Factory rest
Slide 5: 2023 Full Year Financial Results
2023 Full Year Financial Results Revenue & Growth Adj. EPS FY Revenue (in $M) $3.10 (7.7%) vs. 2022 $1,558 Reported Adj. Gross Margin $1,5 50.0 $1,542 (1.0%) vs. 2022 $1,5 30.0 66.1% (110bps) vs. 2022 $1,5 10.0 $1,4 90.0 Organic Adj. EBITDA margin Flat vs. 2022 $1,4 70.0 $1,4 50.0 +5.5% ex. Boston 2
Slide 6: 2023 Q4 Financial Results
2023 Q4 Financial Results Revenue & Growth Adj. EPS Q4 Revenue (in $M) $0.89 (5.3%) vs. 2022 $397 $398 Reported Adj. Gross Margin (0.2%) vs. 2022 64.7% (160bps) vs. 2022 Organic Adj. EBITDA Margin (1.2%) vs. 2022 +3.6% ex. Boston 25.3% (230bps) vs. 2022 Q4'23 Q4'22 Operating Cash Flow $58.7M and 49.
Slide 7: Codman Specialty Surgical Q4 Revenue
Codman Specialty Surgical Q4 Revenue Revenues Q4’23 Q4 Growth FY Growth Reported $271.6M 2.7% 3.9% Q4 2023 Organic1 $268.8M 2.3% 4.8% Revenue Composition Q4 2023 Growth and Performance Drivers2 Instruments Neurosurgery Instruments International 23% 2.0% 3.0% Low double-digits • Neurosurgery – Mid-si
Slide 8: Tissue Technologies Q4 Revenue
Tissue Technologies Q4 Revenue Q4 Growth excl. FY Growth excl. Revenues Q4’23 Q4 Growth Boston Boston Reported $125.4M (6.0%) 9.3% 5.5% Q4 2023 Revenue Composition Organic1 $122.7M (8.0%) 6.9% 7.2% Q4 2023 Growth and Performance Drivers2 Private Wound Reconstruction Private Label International Label
Slide 9: Balance Sheet and Cash Flow Performance
Balance Sheet and Cash Flow Performance Operating Cash Flow, Free Cash Flow ($M) & Adj. FCF Conversion (%) Summary Balance Sheet ($M) 12/31/22 12/31/23 FCF Capex 350 .0 Cash and Cash Equivalents $457 $276 300 .0 $264.5 Short-term Investments $0 33 $42.3 250 .0 Total Debt $1,455 $1,509 90.0 $85.3 200
Slide 10: Q1 and FY 2024 Outlook
Q1 and FY 2024 Outlook Q1 2024 Reported Revenue Guidance Bridge ($M) Q1 2024 Organic Growth (at mid-point) $381 ~(0.4%) ~(4.0%) • Revenue: $360M-$365M $360 - $365 • Reported Growth (5.5%) to (4.1%) ~(0.1%) ~(0.3%) • Organic Growth (5.1%) to (3.7%) • Adj. EPS $0.53 - $0.57 FY 2024 Reported Revenue Gu
Slide 11: Key Guidance Assumptions and Considerations
Key Guidance Assumptions and Considerations Q1 2024 FY 2024 Guidance considerations Boston relaunch Boston portfolio revenue starting June 30th • Slow ramp for the Boston portfolio in 2H • Q1 Revenue Headwinds: CereLink US Monitor revenue included for 10 • Unfavorable comp from Q1’23 Boston revenue
Slide 12: 2023 Summary
2023 Summary Positive underlying organic growth and value returned to shareholders; Boston weighed on 2023 results • Delivered 5.5% organic growth ex. Boston • Returned value to shareholders through $275M of share repurchases • 1Boston recall represented a full year headwind of ~$67M of revenue, ~
Slide 13: Appendix
Appendix Non-GAAP Reconciliations
Slide 14: Fourth Quarter and FY 2023 Financial Results
Fourth Quarter and FY 2023 Financial Results Note: Numbers may not add due to rounding % of Revenues Q4 2023 Q4 2022 Change FY 2023 FY 2022 Change Total Revenues $397.0 $398.0 (0.2%) $1,541.6 $1,557.7 (1.0%) Gross Margin 57.0% 62.8% (580BPS) 57.4% 62.3% (490BPS) Adj. Gross Margin(1) 64.7% 66.3% (160
Slide 15: Fourth Quarter and FY 2023 Organic Growth Reconciliation
Fourth Quarter and FY 2023 Organic Growth Reconciliation Note: Numbers may not add due to rounding (In millions) Q4 2023 Q4 2022 FY 2023 FY 2022 Neurosurgery $210.2 $205.2 $818.1 $794.0 Instruments $61.4 $59.4 $240.9 $225.5 Total Codman Specialty Surgical $271.6 $264.6 $1,059.0 $1,019.6 Wound Recons
Slide 16: Fourth Quarter and FY 2023 Adjusted EBITDA Margin Reconciliation
Fourth Quarter and FY 2023 Adjusted EBITDA Margin Reconciliation Note: Numbers may not add due to rounding (In millions) Q4 2023 Q4 2022 FY 2023 FY 2022 GAAP Net Income $19.8 $52.9 $67.7 $180.6 Depreciation 9.8 9.9 39.7 39.9 Intangible asset amortization 20.7 19.6 82.8 78.3 Other (income), net (1.9)
Slide 17: Fourth Quarter and FY 2023 Adjusted EPS Reconciliation
Fourth Quarter and FY 2023 Adjusted EPS Reconciliation Note: Numbers may not add due to rounding (In millions) Q4 2023 Q4 2022 FY 2023 FY 2022 GAAP Net Income $19.8 $52.9 $67.7 $180.6 Acquisition, divestiture and integration-related charges (1) 7.1 0.7 25.2 (18.8) Structural optimization charges 8.0
Slide 18: Fourth Quarter and FY 2023 Adjusted Free Cash Flow Reconciliation
Fourth Quarter and FY 2023 Adjusted Free Cash Flow Reconciliation Note: Numbers may not add due to rounding (In millions) Q4 2023 Q4 2022 FY 2023 FY 2022 Net Cash from Operating Activities $58.7 $85.3 $140.0 $264.5 Purchases of Property and Equipment ($24.6) ($14.5) ($67.0) ($42.3) Free Cash Flow $3
Slide 19: Fourth Quarter and FY 2023 Adjusted Gross Margin Reconciliation
Fourth Quarter and FY 2023 Adjusted Gross Margin Reconciliation Note: Numbers may not add due to rounding (In millions) Q4 2023 Q4 2022 FY 2023 FY 2022 Reported Gross Profit $226.5 $250.1 $884.7 $970.3 Structural optimization charges 4.9 (4.2) 15.1 5.6 Acquisition, divestiture and integration-relate
Slide 20: Fourth Quarter and FY 2023 Adjusted SG&A Reconciliation
Fourth Quarter and FY 2023 Adjusted SG&A Reconciliation Note: Numbers may not add due to rounding (In millions) Q4 2023 Q4 2022 FY 2023 FY 2022 Reported SG&A $163.1 $151.9 $656.6 $616.3 Structural optimization charges 3.2 2.7 7.9 17.4 Acquisition, divestiture and integration-related charges (1) 8.0
Slide 21: Fourth Quarter 2023 Net Debt Reconciliation
Fourth Quarter 2023 Net Debt Reconciliation Capitalization ($ in millions) 12/31/2023 12/31/2022 Short-term borrowings under senior credit facility 14.5 38.1 Long-term borrowings under senior credit facility 825.6 733.1 Borrowings under securitization facility 89.2 104.7 Long-term convertible securi
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