Integer Holdings Corporation · NYSE:ITGR
Integer — Debt Investor Presentation (November 2019)
35 slides from Integer's debt investor presentation, Nov 12, 2019
Slide 1: Public Lender Presentation: Term Loan B Repricing
Public Lender Presentation Term Loan B Repricing November 12, 2019
Slide 2: Presentation of Financial Information & Forward-Looking Statements
Presentation of Financial Information & Forward-Looking Statements Important Information This presentation contains summarized information concerning Integer Holdings Corporation (the “Company”) and its business, operations, financial performance and trends. The historical financial and operating da
Slide 3: Agenda
Agenda • Transaction Overview • Financial Results • Product Line Review • 2019 Outlook • Question & Answer Period ITGR: Term Loan B Repricing – Public Lender Presentation / November 12, 2019 / Page 2
Slide 4: Presenters
Presenters Joe Dziedzic Jason Garland Tony Borowicz President and Chief Executive Vice President, Senior Vice President, Strategy, Executive Officer Chief Financial Officer Corporate Development & Investor Relations ITGR: Term Loan B Repricing – Public Lender Presentation / November 12, 2019 / Page
Slide 5: Transaction Overview
Transaction Overview
Slide 6: Transaction Overview
Transaction Overview • On November 7th, Integer Holdings Corporation (“Integer” or the “Company”) received commitments for a private transaction relating to its existing Revolving Credit Facility and Term Loan A • Extend RCF and TLA maturities to October 27, 2022 (coterminous with the Senior Secured
Slide 7: Capitalization
Capitalization ($ in millions) Pro forma LIBOR 9/27/2019 Rate Floor Maturity (2) Cash and Cash Equivalents $14 $200m Revolver due 2022 – L + 200 – Oct-22 Term Loan A due 2022 277 L + 200 – Oct-22 Term Loan B due 2022 563 L + 250 1.00% Oct-22 Total Secured Debt $840 Net Debt $826 Market Capitalizatio
Slide 8: Overview of Proposed Term Loan B Repricing
Overview of Proposed Term Loan B Repricing Integer is seeking to reprice its ~$563 million Term Loan B with the summary terms outlined below: Borrower: Greatbatch Ltd. (the “Company” or the “Borrower”) Parent: Integer Holdings Corporation (the “Parent”) Facility: $563 million Senior Secured Term Loa
Slide 9: Transaction Timeline
Transaction Timeline November 2019 S M T W T F S 1 2 3 4 5 6 7 8 9 Key dates 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Holidays 24 25 26 27 28 29 30 Date: Event Tuesday, November 12th Launch Term Loan B Repricing with Public Lender Call (2:15PM ET) Friday, November 15th Commitments Due (12:00PM ET)
Slide 10: Financial Results
Financial Results
Slide 11: Third Quarter Financial Highlights
Third Quarter Financial Highlights 3Q Financial Results Integer delivered • Sales flat improved profitability on • Adjusted EBITDA +4%, Adjusted Net Income +14% flat revenue • Paid $36 million of debt 4Q Financial Outlook Expect strong 4th Quarter • Expect double digit sales growth, up 10% to 15% •
Slide 12: 3Q19 Adjusted Financial Results
3Q19 Adjusted Financial Results(1) ($ in millions, except per share amounts) Sales Adjusted EBITDA Adjusted Net Income 0% organic(2) 1% organic(3) 9% organic(3) % Growth 0% reported 4% reported 14% reported $40 $69 $35 $305 $304 $67 Adj. Reported $1.06 $1.20 EPS FX $1.10 $1.19 Adjusted (1) Refer to
Slide 13: Product Line Review
Product Line Review
Slide 14: Year-over-Year Sales Growth Continues
Year-over-Year Sales Growth Continues(1) Trailing 4 Quarters Cardio & Vascular Outlook 3% - 5% Integer – Trailing 4 Quarters Cardiac & Neuromodulation 4% - 7% Outlook 4% - 5.5% Advanced Surgical, Orthopedic & Portable Medical 2% - 5% Non-Medical (Electrochem) 10% - 14% (1) Excludes impact from chang
Slide 15: Cardio & Vascular
Cardio & Vascular Offering a full-range of products and services for catheter-based interventional vascular devices and a suite of supply chain solutions to support the development and manufacturing of complex components, sub-assemblies and finished devices Organic Quarterly Y-o-Y % Change Excluding
Slide 16: CRM & Neuromodulation
CRM & Neuromodulation Providing technology solutions for the active implantable medical device industry by partnering with customers to bring high-quality products to established and emerging markets – from initial concept through high-volume manufacturing Organic Quarterly Y-o-Y % Change Pulse Gene
Slide 17: Advanced Surgical, Orthopedics & Portable Medical
Advanced Surgical, Orthopedics & Portable Medical Offering a broad portfolio of power solutions and technologies to Portable Medical markets and supporting the divested AS&O product line Organic Quarterly Y-o-Y % Change Orthopedic Implants & Electrosurgical Li-Ion Battery Core Battery Instruments Ac
Slide 18: Electrochem
Electrochem Enhancing lives worldwide by providing superior power solutions that enable the success and advancement of our customers’ critical applications Organic Quarterly Y-o-Y % Change Battery Cells Battery Packs Battery Chargers • 3Q19 growth driven by energy market demand and favorable militar
Slide 19: Cash Flow & Leverage
Cash Flow & Leverage ($ in millions) Cash Flow From Ops Free Cash Flow (1) 2019 3Q Highlights • Reduced leverage ratio to 3.0 times adjusted EBITDA • No significant maturities until 2021; well within covenants Debt Payments Leverage (2) $595 (3) $548 $40 (1) Free Cash Flow defined as Cash Flow from
Slide 20: 2019 Outlook
2019 Outlook
Slide 21: 4Q 2019 Outlook
4Q 2019 Outlook ($ in millions except per share amounts) Sales Adjusted EBITDA Adjusted EPS Growth % 10% - 15% 6% - 12% 9% - 18% $333 - $348 $72 - $76 $1.13 - $1.23 $68 $303 $1.04 ITGR: Term Loan B Repricing – Public Lender Presentation / November 12, 2019 / Page 20
Slide 22: 2019 Full-Year Outlook
2019 Full-Year Outlook ($ in millions except per share amounts) Adjusted Sales Adjusted EBITDA Adjusted EPS Growth % 4% - 5.5% 9% - 10% 20% - 22% $1,265 - $1,280 $282 - $286 $4.55 - $4.65 $1,213 $259 $3.80 Prior Guidance $1,265 - $1,280 $277 - $285 $4.25 - $4.45 Original Guidance $1,260 - $1,280 $27
Slide 23: 2019 Cash Flow Outlook
2019 Cash Flow Outlook ($ in millions) Cash Flow From Ops Free Cash Flow(1) Debt Payments Leverage(2) $700 No change, $548 despite $15 million $160 - $170 acquisition $110 - $120 Target $105 - $115 2.5x - 3.5x ~2.9x $67 - $77 Divestiture Proceeds Accelerated Repayment Required Repayment Original $16
Slide 24: Questions?
Questions? ITGR: Term Loan B Repricing – Public Lender Presentation / November 12, 2019 / Page 23
Slide 25: Appendix
APPENDIX
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Income from Continuing Operations and Diluted EPS Reconciliation – QTD ($ in thousands, except per share amounts) See the Footnotes to this table on page 27 of this presentation ITGR: Term Loan B Repricing – Public Lender Presentation / November 12, 2019 / Page 25
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Income from Continuing Operations and Diluted EPS Reconciliation – YTD ($ in thousands, except per share amounts) See the Footnotes to this table on page 27 of this presentation ITGR: Term Loan B Repricing – Public Lender Presentation / November 12, 2019 / Page 26
Slide 28: Footnotes to Non-GAAP Reconciliation
Footnotes to Non-GAAP Reconciliation ITGR: Term Loan B Repricing – Public Lender Presentation / November 12, 2019 / Page 27
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation 3Q19 Income from Continuing Operations and Diluted EPS Reconciliation – Detailed View ($ in thousands, except per share amounts) 2019 2018 GAAP Adjustments Non-GAAP Non-GAAP Debt / Other investment Adjusted Adjusted Continuing Amortization Certain legal operating related Cont
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation YTD Income from Continuing Operations and Diluted EPS Reconciliation – Detailed View ($ in thousands, except per share amounts) 2019 2018 GAAP Adjustments Non-GAAP Non-GAAP Debt / Other investment Adjusted Adjusted Continuing Amortization Certain legal operating related Conti
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation EBITDA and Adjusted EBITDA Reconciliation ($ in thousands) ITGR: Term Loan B Repricing – Public Lender Presentation / November 12, 2019 / Page 30
Slide 32: Non-GAAP Reconciliation
Non-GAAP Reconciliation Organic Sales Growth Rate Reconciliation (% Change) ITGR: Term Loan B Repricing – Public Lender Presentation / November 12, 2019 / Page 31
Slide 33: Non-GAAP Reconciliation
Non-GAAP Reconciliation 2019 Full-Year Outlook(a) ($ in millions, except per share amounts) ITGR: Term Loan B Repricing – Public Lender Presentation / November 12, 2019 / Page 32
Slide 34: Non-GAAP Reconciliation
Non-GAAP Reconciliation EBITDA and Adjusted EBITDA Reconciliation ($ in thousands) ITGR: Term Loan B Repricing – Public Lender Presentation / November 12, 2019 / Page 33
Slide 35: Key Syndication Contacts
Key Syndication Contacts Credit Suisse Loan Sales Loan Syndicate Name / Title Business information Name / Title Business information Matthew Tuck Phone: 212-325-9915 Jonathan Moneypenny Phone: 212-538-1686 Managing Director Email: matt.tuck@credit-suisse.com Managing Director Email: jonathan.moneype
Integer Holdings — Debt Investor Presentation (November 2019) on 6ix