Integra Lifesciences Holdings Corporation · NASDAQ:IART
Integra Lifesciences — Q1 2023 Earnings Presentation
20 slides from Integra Lifesciences's earnings presentation, Apr 26, 2023
Slide 1: Q1 2023 Earnings Presentation
Q1 2023 EARNINGS PRESENTATION APRIL 26, 2023
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, adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted net income, adjusted earnings per diluted share, adjusted gross profit, adjusted
Slide 4: Executing On Our Strategy
Executing On Our Strategy Business Highlights Q1 Financial Performance • Strong market demand and procedure volumes near pre-COVID Total revenue $380.8 million – above high end of guidance levels 4.6% organic growth; TT +6.8%; CSS +3.5% • Launched MicroMatrix® in Europe • Strong demand across wound
Slide 5: First Quarter Financial Highlights
First Quarter Financial Highlights • 1.1% reported growth Revenue $380.8 • $5M above high end of guidance range Organic Revenue • 3.5% Global CSS organic growth • 3.5% U.S. organic growth 4.6% Growth1 • 6.8% Global TT organic growth • 7.2% Intl. organic growth Adj Gross 67.3% Adj. GM% reflects unfav
Slide 6: Codman Specialty Surgical Q1 Revenue
Codman Specialty Surgical Q1 Revenue Revenues Q1’23 Q1’22 Growth Reported $248.1M $247.3M 0.3% Q1 2023 Organic1 $252.8M $244.2M 3.5% Revenue Composition Q1 2023 Growth and Performance Drivers2 Instruments Neurosurgery Instruments International 22.3% 2.9% 5.9% High Single-Digit • Neurosurgery – Low d
Slide 7: Tissue Technologies Q1 Revenue
Tissue Technologies Q1 Revenue Revenues Q1’23 Q1’22 Growth Reported $132.7M $129.3M 2.6% Q1 2023 Organic1 $131.5M $123.1M 6.8% Revenue Composition Q1 2023 Growth and Performance Drivers2 Private Wound Reconstruction Private Label International Label 23.9% 11.3% -5.2% Down Mid Single-Digit • Wound Re
Slide 8: Q1 2023 Financial Results ($M except per share data)
Q1 2023 Financial Results ($M except per share data) Total Revenue Adj. Gross Profit Adj. EBITDA Adj. EPS Reported 1.1% (40BPS) Margin (60BPS) Margin Flat Organic 4.6% $380.8 $256.5 $93.5 $376.6 $254.8 $92.3 $45 0.0 20 $30 0.0 20 94 1.2 $0.8 0 1.2 $40 0.0 15 $25 0.0 15 93 1 $0.7 5 $0.74 $0.74 1 $35
Slide 9: Balance Sheet and Cash Flow Performance
Balance Sheet and Cash Flow Performance Operating Cash Flow, Free Cash Flow ($M) & Adj. FCF Conversion (%) Summary Balance Sheet ($M) 12/31/22 3/31/23 FCF Capex 350 Cash and Cash Equivalents $457 $307 300 $287.7 Total Debt $1,455 $1,453 250 $50.7 $246.3 $46.7 Net Debt $998 $1,145 90 200 80 70 150 Av
Slide 10: Q2 and FY 2023 Outlook
Q2 and FY 2023 Outlook Q2 2023 Reported Revenue Guidance Bridge ($M) Q2 2023 ~$2 1.5% - 2.5% • Revenue: $396M-$400M $398 $396 - $400 ~($7) ~($2) • Reported Growth -0.5% to +0.5% • Organic Growth +1.5% to +2.5% • Adj. EPS $0.75 - $0.79 incl. ~($0.06) impact from Boston quality project FY 2023 Reporte
Slide 11: Conclusion
Conclusion Delivered Q1 Financial commitments while strengthening our core business • Recovering markets and strong demand for our technologies and leading brands • Gross margins impacted by product mix and Boston quality project Building toward long-term business performance • Launched MicroMat
Slide 12: Appendix: Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations
Slide 13: First Quarter 2023 Financial Results
First Quarter 2023 Financial Results % of Revenues Q1 2023 Q1 2022 Change Total Revenues $380.8 $376.6 1.1% Gross Margin 61.1% 62.1% (100BPS) Adj. Gross Margin(1) 67.3% 67.7% (40BPS) Net Income $24.2 $32.9 (26.4%) (1) Adj. Net Income $60.7 $62.0 (2.0%) Adj. EBITDA Margin(1) 24.2% 24.8% (60BPS) Dilut
Slide 14: First Quarter 2023 Organic Growth Reconciliation
First Quarter 2023 Organic Growth Reconciliation Note: Numbers may not add due to rounding (In millions) Q1 2023 Q1 2022 Neurosurgery $192.9 $194.7 Instruments $55.3 $52.6 Total Codman Specialty Surgical $248.1 $247.3 Wound Reconstruction and Care $100.9 $94.6 Private Label $31.8 $34.7 Total Tissue
Slide 15: Adjusted Free Cash Flow Reconciliation
First Quarter 2023 and 2022 (TTM) Adjusted Free Cash Flow Reconciliation Note: Numbers may not add due to rounding (In millions) Q1 2023 Q1 2022 TTM 2023 TTM 2022 Net Cash from Operating Activities $26.2 $44.3 $246.3 $287.7 Purchases of Property and Equipment ($13.7) ($9.3) ($46.7) ($50.7) Free Cash
Slide 16: Adjusted EBITDA Margin Reconciliation
First Quarter 2023 Adjusted EBITDA Margin Reconciliation Note: Numbers may not add due to rounding (In millions) Q1 2023 Q1 2022 GAAP Net Income $24.2 $32.9 Depreciation 10.2 9.6 Intangible asset amortization 20.6 20.1 Other (income), net (0.9) (2.1) Interest expense, net 8.0 10.3 Income tax expense
Slide 17: Adjusted EPS Reconciliation
First Quarter 2023 Adjusted EPS Reconciliation Note: Numbers may not add due to rounding (In millions) Q1 2023 Q1 2022 GAAP Net Income $24.2 $32.9 Acquisition, divestiture and integration-related charges (1) 8.8 0.6 Structural optimization charges 4.3 6.3 EU Medical Device Regulation 11.4 9.5 Intang
Slide 18: Gross Margin Reconciliation
First Quarter 2023 Gross Margin Reconciliation Note: Numbers may not add due to rounding (In millions) Q1 2023 Q1 2022 Reported Gross Profit $232.9 $234.1 Structural optimization charges 3.1 2.9 Acquisition, divestiture and integration-related charges (1) 1.5 0.9 EU Medical Device Regulation 1.5 0.7
Slide 19: Adjusted SG&A Reconciliation
First Quarter 2023 Adjusted SG&A Reconciliation Note: Numbers may not add due to rounding (In millions) Q1 2023 Q1 2022 Reported SG&A $166.7 $159.9 Structural optimization charges 1.2 3.3 Acquisition, divestiture and integration-related charges (1) 7.8 2.1 EU Medical Device Regulation 5.7 3.5 Adjust
Slide 20: Net Debt Reconciliation
First Quarter 2023 Net Debt Reconciliation Capitalization ($ in millions) 3/31/2023 12/31/2022 Short-term borrowings under senior credit facility - 38.1 Long-term borrowings under senior credit facility 769.1 733.1 Long term borrowings under securitization facility 102.5 104.7 Long-term convertible
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