Integra Lifesciences Holdings Corporation · NASDAQ:IART
Integra Lifesciences — Q3 2024 Earnings Presentation
21 slides from Integra Lifesciences's earnings presentation, Nov 4, 2024
Slide 1: Q3 2024 Earnings Presentation
Q3 2024 Earnings Presentation November 4, 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: Mojdeh Poul Appointed Integra's Next President & CEO
Mojdeh Poul Appointed Integra’s Next President & CEO A proven healthcare executive with deep global expertise and a distinguished record in business strategy and operations, portfolio transformation, value-creating innovation, commercial excellence, and leadership “ I am thrilled to serve as the nex
Slide 5: Executing On Our Strategy
Executing On Our Strategy Q3 Financial Performance Business Highlights Total revenue $381 million • Continued strong demand for Integra's diverse portfolio of -8.6% organic growth (-10.3% excl. Boston) leading brands with strong growth in CUSA® portfolio, • CSS -10.7% (US -6.0%; Int’l -18.1%) DuraSo
Slide 6: 2024 Q3 Financial Highlights
2024 Q3 Financial Highlights Revenue & Growth Adj. EPS Q3 Revenue (in $M) $0.41 (46.1%) vs. 2023 Reported Adj. Gross Margin $381 $382 -0.4% vs. 2023 63.0% (160bps) vs. 2023 High end of Guidance Organic Adj. EBITDA Margin -8.6% vs. 2023 16.2% (680bps) vs. 2023 -10.3% ex. Boston Q3'24 Q3'23 Operating
Slide 7: Codman Specialty Surgical Q3 Revenue
Codman Specialty Surgical Q3 Revenue Revenues Q3’24 Q3’23 Growth Reported $270.8M $268.2M 1.0% Q3 2024 Organic1 $239.6M $268.2M -10.7% Revenue Composition Q3 2024 Growth and Performance Drivers2 Neurosurgery Instruments ENT3 International ENT 15.0% Low double-digit -16.0% 8.7% 5.3% decline Instrumen
Slide 8: Tissue Technologies Q3 Revenue
Tissue Technologies Q3 Revenue Growth excl. Revenues Q3’24 Q3’23 Growth Boston Reported $110.1M $114.2M -3.6% -9.4% Q3 2024 Organic1 $110.0M $114.2M -3.7% -9.4% Revenue Composition Q3 2024 Growth and Performance Drivers2 Private Label Wound Reconstruction Private Label International 26.9% -8.7% 13.3
Slide 9: Balance Sheet and Cash Flow Performance
Balance Sheet and Cash Flow Performance Operating Cash Flow, Free Cash Flow ($M) & Adj. FCF Conversion (%) Summary Balance Sheet ($M) 12/31/23 9/30/24 Operating FCF Capex $166.5 180 Cash and Cash Equivalents $276 $215 160 $137.4 56.9 140 Short-term Investments $33 $62 120 Total Debt $1,509 $1,813 90
Slide 10: Balance Sheet and Leverage Key Take Aways
Balance Sheet and Leverage Key Take Aways • Capital allocation focused on debt reduction • Consolidated Total Leverage Ratio includes add-backs for stock-based compensation and proforma EBITDA contributed by Acclarent • Convertible bond maturing in Q3’25 will likely be funded using bank revolving li
Slide 11: Q4 and FY 2024 Outlook
Q4 and FY 2024 Outlook Q4 2024 Reported Revenue Guidance Bridge ($M) Q4 2024 Organic Growth (at mid-point) 8.8% Flat $441 - $451 • Revenue: $441M-$451M • Reported Growth +11.1% to +13.6% ~3.2% $397 • Organic Growth +2.0 to +4.5% • Adj. EPS $0.81 - $0.89 Q4 2 23 Organi ro th A A larent Q4 2 24 Outlo
Slide 12: Key 2024 Guidance Considerations and Assumptions
Key 2024 Guidance Considerations and Assumptions FY 2024 • Full Year Revenue • Reported growth driven by the acquisition of the Acclarent FX rates ENT business • EUR 1.09 • Organic growth impacted by supply challenges and shipping • JPY 143 holds 7.14 • CNY 19.25% • 3Q to 4Q Revenue Step-up Adj. tax
Slide 13: Committed to deliver on our purpose and promise
Committed to deliver on our purpose and promise ▪ Q3 Financial Results • Demand for diversified portfolio remains strong • Supply challenges, including CSS shipping holds and Integra skin production, impacted Q3 results • Q3 Revenue and adj. EPS within guidance range • Continued commercial and opera
Slide 14: Appendix: Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations
Slide 15: Third Quarter 2024 Financial Results
Third Quarter 2024 Financial Results Note: Numbers may not add due to rounding % of Revenues Q3 2024 Q3 2023 Change Q3 YTD 2024 Q3 YTD 2023 Change Total Revenues $380.8 $382.4 (0.4%) $1,167.9 $1,144.5 2.0% Gross Margin 52.6% 57.1% -450BPS 54.2% 57.5% -330BPS Adj. Gross Margin(1) 63.0% 64.6% -160BPS
Slide 16: Third Quarter 2024 Organic Growth Reconciliation
Third Quarter 2024 Organic Growth Reconciliation (In millions) Q3 2024 Q3 2023 Q3 YTD 2024 Q3 YTD 2023 Neurosurgery $176.0 $209.2 $583.7 $607.9 Instruments $54.2 $49.9 $153.2 $152.5 ENT $40.6 $9.1 $92.1 $26.9 Total Codman Specialty Surgical $270.8 $268.2 $829.0 $787.4 Wound Reconstruction and Care $
Slide 17: Adjusted Free Cash Flow Reconciliation
Third Quarter 2024 and 2023 (TTM) Adjusted Free Cash Flow Reconciliation Note: Numbers may not add due to rounding (In millions) Q3 2024 Q3 2023 TTM 2024 TTM 2023 Net Cash from Operating Activities $22.5 $26.8 $137.4 $166.5 Purchases of Property and Equipment ($29.6) ($13.1) ($99.4) ($56.9) Free Cas
Slide 18: Third Quarter 2024 Adjusted EBITDA Margin Reconciliation
Third Quarter 2024 Adjusted EBITDA Margin Reconciliation Note: Numbers may not add due to rounding (In millions) Q3 2024 Q3 2023 Q3 YTD 2024 Q3 YTD 2023 GAAP Net Income ($10.7) $19.5 ($26.4) $47.9 Depreciation 10.2 9.7 30.5 29.9 Intangible asset amortization 25.6 20.9 78.7 62.1 Other (income), net (
Slide 19: Adjusted Net Income & Adjusted EPS Reconciliation
Third Quarter 2024 Adjusted Net Income & Adjusted EPS Reconciliation Note: Numbers may not add due to rounding (In millions) Q3 2024 Q3 2023 Q3 YTD 2024 Q3 YTD 2023 GAAP Net Income ($10.7) $19.5 ($26.4) $47.9 Acquisition, divestiture and integration-related charges (1) 7.8 5.8 31.2 18.1 Structural o
Slide 20: Third Quarter 2024 Gross Margin Reconciliation
Third Quarter 2024 Gross Margin Reconciliation Note: Numbers may not add due to rounding (In millions) Q3 2024 Q3 2023 Q3 YTD 2024 Q3 YTD 2023 Reported Gross Profit $200.2 $218.3 $633.0 $658.2 Structural optimization charges 3.7 1.8 12.0 5.1 Acquisition, divestiture and integration-related charges (
Slide 21: Third Quarter 2024 Net Debt Reconciliation
Third Quarter 2024 Net Debt Reconciliation Capitalization ($ in millions) 9/30/2024 12/31/2023 Short-term borrowings under senior credit facility 29.1 14.5 Long-term borrowings under senior credit facility 1,132.3 825.6 Borrowings under securitization facility 72.8 89.2 Convertible securities 572.4
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