Integra Lifesciences Holdings Corporation · NASDAQ:IART
Integra Lifesciences — Q2 2024 Earnings Presentation
19 slides from Integra Lifesciences's earnings presentation, Jul 29, 2024
Slide 1: Q2 2024 Earnings Presentation
Q2 2024 Earnings Presentation July 29, 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 Q2 Financial Performance Business Highlights Total revenue $418 million (exceeded high-end of guidance) • Broad demand for Integra's diverse portfolio of leading brands 2.3% organic growth (+0.3% excl. Boston) • Continued successful market uptake of CereLink® monitors and •
Slide 5: 2024 Q2 Financial Highlights
2024 Q2 Financial Highlights Revenue & Growth Adj. EPS Q2 Revenue (in $M) $0.63 (10.6%) vs. 2023 $418 Reported Adj. Gross Margin $381 +9.7% vs. 2023 65.2% (250bps) vs. 2023 ~$2M above guidance Organic Adj. EBITDA Margin +2.3% vs. 2023 20.0% (330bps) vs. 2023 +0.3% ex. Boston Q2'24 Q2'23 Operating Ca
Slide 6: Codman Specialty Surgical Q2 Revenue
Codman Specialty Surgical Q2 Revenue Revenues Q2’24 Q2’23 Growth Reported $301.8M $271.0M 11.3% Q2 2024 Organic1 $273.4M $271.1M 0.9% Revenue Composition Q2 2024 Growth and Performance Drivers2 Neurosurgery Instruments ENT3 International ENT 13.8% Low single-digit 1.2% -3.1% 18.1% growth Instruments
Slide 7: Tissue Technologies Q2 Revenue
Tissue Technologies Q2 Revenue Growth excl. Revenues Q2’24 Q2’23 Growth Boston Reported $116.4M $110.2M 5.6% -1.1% Q2 2024 Organic1 $116.5M $110.2M 5.7% -1.0% Revenue Composition Q2 2024 Growth and Performance Drivers2 Private Label Wound Reconstruction Private Label International 24.7% -3.7% 50.3%
Slide 8: Balance Sheet and Cash Flow Performance
Balance Sheet and Cash Flow Performance Operating Cash Flow, Free Cash Flow ($M) & Adj. FCF Conversion (%) Summary Balance Sheet ($M) 12/31/23 6/30/24 FCF Capex 250 Cash and Cash Equivalents $276 $215 $208.1 200 Short-term Investments $33 $82 53.0 90 150 $141.7 Total Debt $1,509 $1,833 80 70 60 100
Slide 9: Q3 and FY 2024 Outlook
Q3 and FY 2024 Outlook Q3 2024 Reported Revenue Guidance Bridge ($M) Q3 2024 Organic Growth (at mid-point) $382 (10.8%) • Revenue: $372M-$382M 6.6% Flat $372 - $382 • Reported Growth -2.6% to Flat • Organic Growth -9.4% to -6.7% 2.7% • Adj. EPS $0.36 - $0.44 FY 2024 Reported Revenue Guidance Bri
Slide 10: Key 2024 Guidance Considerations and Assumptions
Key 2024 Guidance Considerations and Assumptions FY 2024 Guidance considerations • FY Revenue impacted by quality and labeling shipping holds FX rates • EUR 1.09 • 3Q to 4Q Revenue Step-up • JPY 143 • Current shipping holds primarily impacting Q3 7.14 • CNY • Majority of the holds to be released by
Slide 11: Committed to deliver on our purpose and promise
Committed to deliver on our purpose and promise ▪ Positive Q2 Financial Results • Broad demand strength for Integra's diverse portfolio of leading brands • Q2 Revenue ahead of guidance and adj. EPS at the mid-point of guidance • Early commercial and operational success on the integration of Acclaren
Slide 12: Appendix: Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations
Slide 13: Second Quarter 2024 Financial Results
Second Quarter 2024 Financial Results % of Revenues Q2 2024 Q2 2023 Change Q2 YTD 2024 Q2 YTD 2023 Change Total Revenues $418.2 $381.3 9.7% $787.0 $762.1 3.3% Gross Margin 54.0% 54.3% -30BPS 55.0% 57.7% -270BPS Adj. Gross Margin(1) 65.2% 67.6% -250BPS 64.8% 67.5% -270BPS Net Income ($12.4) $4.2 (396
Slide 14: Second Quarter 2024 Organic Growth Reconciliation
Second Quarter 2024 Organic Growth Reconciliation (In millions) Q2 2024 Q2 2023 Q2 YTD 2024 Q2 YTD 2023 Neurosurgery $205.5 $205.8 $407.8 $398.7 Instruments $54.5 $56.4 $98.9 $102.6 ENT $41.7 $8.9 $51.5 $17.9 Total Codman Specialty Surgical $301.8 $271.0 $558.2 $519.1 Wound Reconstruction and Care $
Slide 15: Adjusted Free Cash Flow Reconciliation
Second Quarter 2024 and 2023 (TTM) Adjusted Free Cash Flow Reconciliation Note: Numbers may not add due to rounding (In millions) Q2 2024 Q2 2023 TTM 2024 TTM 2023 Net Cash from Operating Activities $40.4 $28.3 $141.7 $208.1 Purchases of Property and Equipment ($29.7) ($15.6) ($82.8) ($53.0) Free Ca
Slide 16: Adjusted EBITDA Margin Reconciliation
Second Quarter 2024 Adjusted EBITDA Margin Reconciliation Note: Numbers may not add due to rounding (In millions) Q2 2024 Q2 2023 Q2 YTD 2024 Q2 YTD 2023 GAAP Net Income ($12.4) $4.2 ($15.7) $28.4 Depreciation 10.4 10.0 20.3 20.2 Intangible asset amortization 25.4 20.6 53.1 41.3 Other (income), net
Slide 17: Adjusted Net Income & Adjusted EPS Reconciliation
Second Quarter 2024 Adjusted Net Income & Adjusted EPS Reconciliation Note: Numbers may not add due to rounding (In millions) Q2 2024 Q2 2023 Q2 YTD 2024 Q2 YTD 2023 GAAP Net Income ($12.4) $4.2 ($15.7) $28.4 Acquisition, divestiture and integration-related charges (1) 18.7 3.4 23.4 12.2 Structural
Slide 18: Gross Margin Reconciliation
Second Quarter 2024 Gross Margin Reconciliation Note: Numbers may not add due to rounding (In millions) Q2 2024 Q2 2023 Q2 YTD 2024 Q2 YTD 2023 Reported Gross Profit $225.9 $207.0 $432.8 $439.9 Structural optimization charges 4.9 1.5 8.2 3.3 Acquisition, divestiture and integration-related charges (
Slide 19: Net Debt Reconciliation
Second Quarter 2024 Net Debt Reconciliation Capitalization ($ in millions) 6/30/2024 12/31/2023 Short-term borrowings under senior credit facility 24.2 14.5 Long-term borrowings under senior credit facility 1,151.7 825.6 Borrowings under securitization facility 77.7 89.2 Long-term convertible securi
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