Integer Holdings Corporation · NYSE:ITGR
Integer — Greatbatch — Q4 2011 Earnings Presentation
17 slides from Integer's earnings presentation, Feb 23, 2012
Slide 1: Fourth Quarter 2011 Earnings Call
FOURTH QUARTER 2011 EARNINGS CALL February 23, 2012 1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Some of the statements made in the presentation whether written or oral may be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of Securities Exchange Act of 1934, as amended, and involve a number of
Slide 3: Earnings Call Participants
EARNINGS CALL PARTICIPANTS › Thomas J. Hook • President & CEO › Thomas J. Mazza • Senior Vice President & CFO › Marco F. Benedetti • Corporate Controller & Treasurer 3
Slide 4: Agenda
AGENDA › Thomas J. Hook • Fourth Quarter 2011 Financial Highlights • 2011 Review • Strategic Focus › Thomas J. Mazza • Fourth Quarter & Full Year Financial Results • 2012 Financial Guidance › Question & Answer 4
Slide 5: Fourth Quarter 2011 Financial Highlights
FOURTH QUARTER 2011 FINANCIAL HIGHLIGHTS › Sales of $141.7 Million – 6% Increase • 28% Vascular Access growth • 27% Electrochem organic growth • $3 million medical device sales • $2.5 million sales from Micro Power acquisition › Results • Increased spend on medical device initiatives (SG&A and R&D)
Slide 6: 2011 Review: Grow & Diversify Revenue
2011 REVIEW › Grow & Diversify Revenue • Diversified revenue offsetting declining CRM market • 2012 CRM revenue expected to be < 50% of total sales • Vascular Access growth bolstered by commercialization of medical devices • Investments in Orthopaedic operations driving market share gains • Micro Po
Slide 7: 2011 Review: Drive Operating Performance
2011 REVIEW › Drive Operating Performance • Initiated multi-faceted plan to optimize orthopaedic geographic footprint and build infrastructure to support medical device manufacturing • Continued to invest in global quality and regulatory systems • Generated $90 million of cash flow from operations a
Slide 8: 2011 Review: Deliver Innovative Solutions
2011 REVIEW › Deliver Innovative Solutions - Made significant progress on medical device initiatives • Sales from medical devices of $5 million for 2011 • 53 medical device patents filed 2011 (10 granted) • In total 86 medical device patents pending (42 granted) • 12 global device regulatory submiss
Slide 9: 2012 and Beyond: Growth
2012 AND BEYOND › Growth • Organic Revenue & Profit Growth in Core Business - Solid execution • Targeted M&A - Strategic and opportunistic - Focus on core markets - Financing in place • Innovate New Medical Device Technologies - Commercialize medical device pipeline - Continuous project funnel 9
Slide 10: Fourth Quarter & Full Year 2011 Sales
FOURTH QUARTER & FULL YEAR 2011 SALES › CRM & Neuromodulation › Organic growth 27% QTD (6% YTD) • Stable › Quarter variations due to timing of • Expect continued headwinds in 2012 customer inventory pulls › Vascular Access › Q4 2011 includes $2.5 million sales from • Market growth Micro Power acquis
Slide 11: Fourth Quarter 2011 Financial Results
FOURTH QUARTER 2011 FINANCIAL RESULTS 11
Slide 12: Full Year 2011 Financial Results
FULL YEAR 2011 FINANCIAL RESULTS 12
Slide 13: 2012 Financial Guidance
2012 FINANCIAL GUIDANCE Annual Sales: $645 million - $665 million CRM & Neuromodulation: -3% to 0% Vascular Access: 10% to 20% Orthopaedic: 5% to 15% Electrochem(1): Approximately 5% Adjusted OI as % of Sales(2): 11.5% - 12.5% Adjusted EPS(3): $1.75 - $1.85 1 – Percentage increase assuming full year
Slide 14: Appendix
APPENDIX 14
Slide 15: GAAP Reconciliation
GAAP RECONCILIATION Three months ended Year ended December 30, December 31, December 30, December 31, 2011 2010 2011 2010 Operating income as reported $ 612542 $ «©24512 $ ~—61,699 $ ~—S68.94 Adjustments: Inventory step-up amortization (COS) 177 - 177 - Executive death benefits (SG&A) - - - 885 Neur
Slide 16: GAAP Reconciliation
GAAP RECONCILIATION Three months ended Year ended December 30, December 31, 2011 December 30, December 31, Income before taxes as reported $ | Adjustments: Inventory step-up amortization (COS) Executive death benefits (SG&A) ‘Neuromodulation platform DVT expense (RD&E) Consolidation costs Integratio
Slide 17: Contact Information
CONTACT INFORMATION Marco F. Benedetti Corporate Controller & Treasurer Greatbatch 10000 Wehrle Drive Clarence, NY 14031 Tel 716-759-5856 mbenedetti@greatbatch.com www.greatbatch.com 17