Integra LifeSciences Holdings Corporation (NASDAQ: IART), a leading
global medical technology company, today reported financial results
for the third quarter ending September 30, 2023.
Third Quarter 2023
Highlights
- Third quarter revenues of $382.4 million declined 0.7% on a
reported basis and declined 0.4% on an organic basis compared to
the prior year and increased 7.1% on an organic basis excluding
Boston
- Third quarter GAAP earnings per diluted share of $0.24,
compared to $0.60 in the prior year; adjusted earnings per diluted
share of $0.76, compared to $0.86 in the prior year
- Successfully completed all interim external inspections in
preparation for the Boston manufacturing facility restart and
remain on track to committed timelines
- Relaunched CereLink® ICP Monitor in select international
markets and submitted a 510(k) premarket notification in the
U.S.
- Completed $125 million accelerated share repurchase initiated
in the third quarter
- Updating full-year 2023 revenue and adjusted earnings per share
guidance with a range of $1.541 billion to $1.547 billion and $3.10
to $3.14 respectively, which reflects the impact of third quarter
Boston recall returns, strong organic growth of the business
excluding Boston, strengthening U.S. dollar and tax
favorability
"Although the Boston returns weighed further on
our third quarter results, we are on track to restart the Boston
facility by the end of the year, and we also met two significant
CereLink milestones with the relaunch in international markets and
submission for regulatory approval in the U.S.," said Jan De Witte,
Integra LifeSciences' president and chief executive officer. "At
the same time, our strong organic growth performance in the Codman
Specialty Surgical and Tissue Technologies businesses, excluding
Boston, plus advances across our product pipeline, give us
confidence in our long-range growth
commitments."
Third Quarter 2023 Consolidated
Performance
Total reported revenues of $382.4 million
declined 0.7% on a reported basis and declined 0.4% on an organic
basis compared to the prior year.
The Company reported GAAP gross margin of 57.1%,
compared to 61.5% in the third quarter of 2022. Adjusted gross
margin was 64.6%, compared to 66.7% in the prior year.
Adjusted EBITDA for the third quarter of 2023
was $88.1 million, or 23.0% of revenue, compared to $105.3 million,
or 27.3% of revenue, in the prior year.
The Company reported GAAP net income of $19.5
million, or $0.24 per diluted share, in the third quarter of 2023,
compared to a GAAP net income of $49.9 million, or $0.60 per
diluted share, in the prior year.
Adjusted net income for the third quarter of
2023 was $60.5 million, or $0.76 per diluted share, compared to
$71.7 million or $0.86 per diluted share, in the prior year.
Third Quarter 2023
Segment Performance
Codman Specialty Surgical
(~70% of Revenues)
- Total revenues were $268.2 million, representing reported
growth of 7.4% and organic growth of 7.4% compared to the third
quarter of 2022, attributable to low-double digit growth in CSF
management and Neuro Monitoring driven by Certas® Plus valves,
BactiSeal® catheters and ICP microsensors; high-single-digit growth
in Dural Access and Repair driven by DuraGen® DuraSeal® and
Mayfield®; low single-digit decline in Advanced Energy due to
timing of CUSA® capital orders; and mid single-digit growth in
Instruments.
Tissue Technologies
(~30% of Revenues)
- Total revenues were $114.2 million, representing reported
decline of 15.6% and organic decline of 15.1% compared to the third
quarter of 2022, due to the impact of the lost revenue and increase
in the return provision related to the Boston product recall which
was partially offset by double digit growth from MicroMatrix®,
Cytal®, Gentrix® and amniotics.
- Tissue Technologies organic growth excluding Boston products
was 6.7%.
Key Products and Business
Highlights
- Boston Restart
- Project team driving progress on Boston remediation plan with
external inspections confirming quality of execution
- Expect to restart manufacturing in Boston by end of Q4’23 and
resume commercial distribution in mid-to late Q2’24
- Advancing our portfolio
- Relaunched CereLink in select international markets and
submitted a 510(k) premarket notification to the U.S. Food and Drug
Administration for CereLink.
- Submitted 510(k) premarket notification for next generation
Aurora® 8mm Surgiscope
- Continued international expansion of CUSA platform with the
launch of Clarity Stage 3, Laparoscopic tip and Single Sided Bone
Tip in Saudi Arabia
- Launched DuraGen Plus in China
- Completed international registrations of DuraGen, DuraSeal,
Mayfield, Duo LED lighting, electrosurgery and nerve products
primarily in LATAM and EMEA
- Extended the Urinary Bladder Matrix platform by obtaining
510(k) clearance for MicroMatrix Flex
- Progressed In-China-for-China strategy by beginning buildout of
leased manufacturing facility
- Issued 2022 ESG report
- Further strengthened executive leadership team with the
appointment of Chantal Veillon as chief human resources
officer
Balance Sheet, Cash Flow and Capital
Allocation
The Company generated cash flow from operations
of $26.8 million in the quarter. Total balance sheet debt and net
debt at the end of the quarter were $1.52 billion and $1.24
billion, respectively, and the consolidated total leverage ratio
was 3.0x.
As of quarter end, the Company had total
liquidity of approximately $1.48 billion, including $273.7 million
in cash and the remainder available under its revolving credit
facility.
2023 Outlook
For the full year 2023, the Company is updating
its revenue and adjusted EPS expectations to $1.541 to $1.547
billion and $3.10 to $3.14, respectively. The revenue range
represents reported growth of -1.1% to -0.7%, with organic growth
of 0.1% to 0.5%, reflecting the impact of higher-than-expected
Boston recall returns, strong organic growth excluding Boston, the
strength of the U.S. dollar, and an updated tax rate.
For the fourth quarter 2023, the Company expects
reported revenues in the range of $397 million to $403 million,
representing reported growth of -0.4% to +1.1% and organic growth
of -0.8% to +0.7%. Adjusted earnings per diluted share are expected
to be in the range of $0.89 to $0.93, including the impact of the
Boston recall, the strength of the U.S. dollar, and an updated tax
rate.
The Company’s guidance for the fourth quarter
and full-year organic sales growth excludes acquisitions and
divestitures, the effects of foreign currency and the
year-over-year change in revenue from discontinued products.
Organic growth excludes sales from the divestiture of the Company’s
traditional wound care (TWC) business as of September 1, 2022, and
sales from the acquisition of Surgical Innovation Associates, Inc.
(SIA) through December 1, 2023. Adjusted earnings per share
guidance reflects the impacts of the divestiture of the TWC
business, the SIA acquisition, and foreign currency.
Conference Call and Presentation
Available Online
Integra has scheduled a conference call for 8:30
a.m. ET on Wednesday, October 25, 2023, to discuss third quarter
2023 financial results and forward-looking financial guidance. The
conference call will be hosted by Integra's senior management team
and will be open to all listeners. Additional forward-looking
information may be discussed in a question-and-answer session
following the call. Integra's management team will reference a
presentation during the conference call, which can be found on the
Investor section of the website at investor.integralife.com.
A live webcast will be available on the
Investors section of the Company’s website at
investor.integralife.com. For those planning to participate on the
call, register here to receive dial-in details and an individual
pin. While not required, it is recommended to join 10 minutes prior
to the event’s start. A webcast replay of the conference call will
be available on the Investors section of the Company’s website
following the call.
About Integra
At Integra LifeSciences, we are driven by our
purpose of restoring patients’ lives. We innovate treatment
pathways to advance patient outcomes and set new standards of
surgical, neurologic and regenerative care. We offer a
comprehensive portfolio of high quality, leadership brands that
include AmnioExcel®, Aurora®, Bactiseal®, BioD™, CerebroFlo®,
CereLink® Certas® Plus, Codman®, CUSA®, Cytal®, DuraGen®,
DuraSeal®, DuraSorb®, Gentrix®, ICP Express®, Integra®, Licox®,
MAYFIELD®, MediHoney®, MicroFrance®, MicroMatrix®, NeuraGen®,
NeuraWrap™, PriMatrix®, SurgiMend®, TCC-EZ® and VersaTru®. For the
latest news and information about Integra and its products, please
visit www.integralife.com.
Forward-Looking Statements
This news release 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 release. All
statements, other than statements of historical fact, are
statements that could be deemed forward-looking statements. Some of
these forward-looking statements may contain words like “will,”
“believe,” “may,” “could,” “would,” “might,” “possible,” “should,”
“expect,” “intend,” "forecast," "guidance," “plan,” “anticipate,”
"target," or “continue,” the negative of these words, other terms
of similar meaning or they may use future dates. Forward-looking
statements contained in this news release include, but are not
limited to, statements concerning future financial performance,
including projections for revenues, expected revenue growth (both
reported and organic), GAAP and adjusted net income, GAAP and
adjusted earnings per diluted share, non-GAAP adjustments such as
divestiture, acquisition and integration-related charges,
intangible asset amortization, structural optimization charges, EU
Medical Device Regulation-related charges, charges related to the
voluntary global recall of all products manufactured at the
Company’s facility in Boston, Massachusetts, and income tax expense
(benefit) related to non-GAAP adjustments and other items,
expectations and plans with respect to strategic initiatives,
product development and regulatory approvals, including the status
of the Company’s 510(k) premarket notification for Cerelink, and
expectations concerning the resumption of manufacturing at the
Company’s Boston, Massachusetts facility. It is important to note
that the Company’s goals and expectations are not predictions of
actual performance. Such forward-looking statements involve risks
and uncertainties that could cause actual results to differ
materially from predicted or expected results. Such risks and
uncertainties include, but are not limited, to the following: the
ongoing and possible future effects of global challenges, including
macroeconomic uncertainties, inflation, supply chain disruptions,
trade regulation and tariffs, other economic disruptions and U.S.
and global recession concerns, on the Company’s customers and on
the Company’s business, financial condition, results of operations
and cash flows; the Company's ability to execute its operating plan
effectively; the Company’s ability to successfully integrate
acquired businesses; the Company’s ability to achieve sales growth
in a timely fashion; the Company's ability to manufacture and ship
sufficient quantities of its products to meet its customers'
demands; the ability of third-party suppliers to supply us with raw
materials and finished products; global macroeconomic and political
conditions, including the war in Ukraine and the conflict in Israel
and Gaza; the Company's ability to manage its direct sales channels
effectively; the sales performance of third-party distributors on
whom the Company relies to generate revenue for certain products
and geographic regions; the Company's ability to access and
maintain relationships with customers of acquired entities and
businesses; physicians' willingness to adopt and third-party
payors' willingness to provide or maintain reimbursement for the
Company's recently launched, planned and existing products;
initiatives launched by the Company's competitors; downward pricing
pressures from customers; the Company's ability to secure
regulatory approval for products in development; the Company's
ability to remediate quality systems violations; fluctuations in
hospitals' spending for capital equipment; the Company's ability to
comply with regulations regarding products of human origin and
products containing materials derived from animal source;
difficulties in controlling expenses, including costs to procure
and manufacture our products; the impact of changes in management
or staff levels; the impact of goodwill and intangible asset
impairment charges if future operating results of acquired
businesses are significantly less than the results anticipated at
the time of the acquisitions, the Company's ability to leverage its
existing selling organizations and administrative infrastructure;
the Company's ability to increase product sales and gross margins,
and control non-product costs; the Company’s ability to achieve
anticipated growth rates, margins and scale and execute its
strategy generally; the amount and timing of divestiture,
acquisition and integration-related costs; the geographic
distribution of where the Company generates its taxable income; new
U.S. and foreign government laws and regulations, and changes in
existing laws, regulations and enforcement guidance, which affect
areas of our operations including, but not limited to, those
affecting the health care industry, including the EU Medical
Devices Regulation; the scope, duration and effect of additional
U.S. and international governmental, regulatory, fiscal, monetary
and public health responses to the COVID-19 pandemic and any future
public health crises; fluctuations in foreign currency exchange
rates; the amount of our bank borrowings outstanding and other
factors influencing liquidity; potential negative
impacts resulting from environmental, social and governance
matters; and the economic, competitive, governmental,
technological, and other risk factors and uncertainties identified
under the heading “Risk Factors” included in Item 1A of Integra's
Annual Report on Form 10-K for the year ended December 31, 2022 and
information contained in subsequent filings with the Securities and
Exchange Commission.
These forward-looking statements are made only
as of the date hereof, and the Company undertakes no obligation to
update or revise the forward-looking statements, whether as a
result of new information, future events, or otherwise.
Discussion of Adjusted Financial
MeasuresIn 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 share, free cash flow, adjusted free
cash flow conversion, and net debt. Organic revenues consist
of total revenues excluding the effects of currency exchange rates,
revenues from current-period acquisitions and product divestitures
and discontinuances. Organic revenues excluding Boston consist of
total revenues, excluding (i) the effects of currency exchange
rates, revenues from current-period acquisitions and product
divestitures and discontinuances and (ii) revenues associated with
Boston produced products including sales reported prior to the
recall and the impact of sales return provisions recorded. Adjusted
EBITDA consists of GAAP net income excluding: (i) depreciation and
amortization; (ii) other income (expense); (iii) interest income
and expense; (iv) income tax expense (benefit); and (v) those
operating expenses also excluded from adjusted net
income. The measure of adjusted net income consists of
GAAP net income, excluding: (i) structural optimization charges;
(ii) divestiture, acquisition and integration-related charges;
(iii) EU Medical Device Regulation-related charges; (iv) charges
related to the voluntary global recall of products manufactured at
the Company’s Boston, Massachusetts facility; (v) intangible asset
amortization expense; and (vi) income tax impact from adjustments.
The adjusted earnings per diluted share measure is calculated by
dividing adjusted net income attributable to diluted shares by
diluted weighted average shares outstanding. The
measure of free cash flow consists of GAAP net cash provided by
operating activities less purchases of property and equipment. The
adjusted free cash flow conversion measure is calculated by
dividing free cash flow by adjusted net income. The measure of net
debt consists of GAAP total debt (excluding deferred financing
costs) less cash and cash equivalents.
Reconciliations of GAAP revenues to organic
revenues, GAAP revenues to organic revenues excluding Boston, GAAP
net income to adjusted EBITDA, and adjusted net income, GAAP total
debt to net debt and GAAP earnings per diluted share to adjusted
earnings per diluted share all for the quarter ended September 30,
2023 and 2022, and the free cash flow and adjusted free cash flow
conversion for the quarter ended September 30, 2023 and 2022,
appear in the financial tables in this release.
The Company believes that the presentation of
organic revenues and the other non-GAAP measures provide important
supplemental information to management and investors regarding
financial and business trends relating to the Company's financial
condition and results of operations. For further
information regarding why Integra believes that these non-GAAP
financial measures provide useful information to investors, the
specific manner in which management uses these measures, and some
of the limitations associated with the use of these measures,
please refer to the Company's Current Report on Form 8-K regarding
this earnings press release filed today with the Securities and
Exchange Commission. This Current Report on Form 8-K is available
on the SEC's website at www.sec.gov or on our website at
www.integralife.com.
Investor Relations
Contact:
Chris Ward(609) 772-7736chris.ward@integralife.com
Media Contact:
Laurene Isip(609) 208-8121laurene.isip@integralife.com
INTEGRA LIFESCIENCES HOLDINGS
CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(UNAUDITED)
(In thousands, except per share amounts)
| |
Three Months Ended Sept. 30, |
| |
2023 |
|
2022 |
|
Total revenues, net |
$ |
382,421 |
|
|
$ |
385,191 |
|
| |
|
|
|
| Costs and expenses: |
|
|
|
| Cost of goods sold |
|
164,076 |
|
|
|
148,445 |
|
| Research and development |
|
26,596 |
|
|
|
24,736 |
|
| Selling, general and
administrative |
|
161,948 |
|
|
|
143,820 |
|
| Intangible asset
amortization |
|
3,208 |
|
|
|
3,141 |
|
| Total costs and expenses |
|
355,828 |
|
|
|
320,142 |
|
| |
|
|
|
| Operating income |
|
26,593 |
|
|
|
65,049 |
|
| |
|
|
|
| Interest income |
|
4,607 |
|
|
|
3,264 |
|
| Interest expense |
|
(13,062 |
) |
|
|
(12,809 |
) |
| Gain from sale of
business |
|
— |
|
|
|
644 |
|
| Other income, net |
|
471 |
|
|
|
2,648 |
|
| Income before income
taxes |
|
18,609 |
|
|
|
58,796 |
|
| Income tax expense
(benefit) |
|
(888 |
) |
|
|
8,881 |
|
| Net income |
$ |
19,497 |
|
|
$ |
49,915 |
|
| |
|
|
|
| Net income per share: |
|
|
|
| Diluted net income per
share |
$ |
0.24 |
|
|
$ |
0.60 |
|
| |
|
|
|
| Weighted average common shares
outstanding for diluted net income per share |
|
79,811 |
|
|
|
83,399 |
|
The following table presents revenues
disaggregated by the major sources for the three months ended
September 30, 2023 and 2022 (amounts in thousands):
| |
Three Months Ended Sept 30, |
| |
2023 |
2022 |
Change |
|
Neurosurgery |
|
209,229 |
|
|
193,848 |
|
7.9 |
% |
| Instruments |
|
58,976 |
|
|
55,948 |
|
5.4 |
% |
| Total Codman Specialty
Surgical |
|
268,205 |
|
|
249,796 |
|
7.4 |
% |
| |
|
|
|
| Wound Reconstruction and
Care |
|
88,071 |
|
|
104,625 |
|
(15.8 |
)% |
| Private Label |
|
26,145 |
|
|
30,770 |
|
(15.0 |
)% |
| Total Tissue Technologies |
|
114,216 |
|
|
135,395 |
|
(15.6 |
)% |
| Total reported revenues |
|
382,421 |
|
|
385,191 |
|
(0.7 |
)% |
| |
|
|
|
| Impact of changes in currency
exchange rates |
|
(994 |
) |
|
0 |
|
|
| Less contribution of revenues
from acquisitions |
|
(2,934 |
) |
|
— |
|
|
| Less contribution of revenues
from divested products |
|
(13 |
) |
|
(4,556 |
) |
|
| Less contribution of revenues
from discontinued products |
|
(1,403 |
) |
|
(1,933 |
) |
|
| Total organic revenues(1) |
$ |
377,077 |
|
$ |
378,702 |
|
(0.4 |
)% |
| |
|
|
|
| Boston Revenue impact |
$ |
6,232 |
|
$ |
(20,952 |
) |
|
|
Total organic revenues(1) excl. Boston |
$ |
383,309 |
|
$ |
357,750 |
|
7.1 |
% |
(1) Organic revenues have been adjusted to
exclude foreign currency (current period), acquisitions and to
account for divested and discontinued products.
Items included in GAAP net income and location where each item
is recorded are as follows:
(In thousands)
Three Months Ended September 30, 2023
|
Item |
Total Amount |
COGS(a) |
SG&A(b) |
R&D(c) |
Amort (d) |
OI&E(e) |
Tax(f) |
|
Acquisition, divestiture and integration-related charges |
5,832 |
|
407 |
6,638 |
(1,090 |
) |
— |
(123 |
) |
— |
|
| Structural Optimization
charges |
5,893 |
|
4,011 |
1,909 |
(27 |
) |
— |
— |
|
— |
|
| EU Medical Device Regulation
charges |
13,490 |
|
1,263 |
5,661 |
6,565 |
|
— |
— |
|
— |
|
| Boston Recall |
5,636 |
|
5,542 |
94 |
— |
|
— |
— |
|
— |
|
| Intangible asset amortization
expense |
20,869 |
|
17,661 |
— |
— |
|
3,208 |
— |
|
— |
|
| Estimated income tax impact
from above adjustments and other items |
(10,677 |
) |
— |
— |
— |
|
— |
— |
|
(10,677 |
) |
| Depreciation expense |
9,670 |
|
— |
— |
— |
|
— |
— |
|
— |
|
| |
|
|
|
|
|
|
|
a) COGS - Cost of goods
soldb) SG&A - Selling, general and
administrativec) R&D - Research &
developmentd) Amort. - Intangible asset
amortizatione) OI&E - Other income &
expensef) Tax - Income tax expense (benefit)
Items included in GAAP net income and location where each item
is recorded are as follows:
(In thousands)
Three Months Ended Sept 30, 2022
|
Item |
Total Amount |
COGS(a) |
SG&A(b) |
R&D(c) |
Amort.(d) |
OI&E(e) |
Tax(f) |
|
Acquisition, divestiture and integration-related charges |
(13,841 |
) |
177 |
(12,151 |
) |
(547 |
) |
— |
(1,320 |
) |
— |
|
| Structural Optimization
charges |
10,112 |
|
2,765 |
7,356 |
|
(9 |
) |
— |
— |
|
— |
|
| EU Medical Device Regulation
charges |
13,208 |
|
1,257 |
5,672 |
|
6,279 |
|
— |
— |
|
— |
|
| Intangible asset amortization
expense |
19,192 |
|
16,051 |
— |
|
— |
|
3,141 |
— |
|
— |
|
| Estimated income tax impact
from above adjustments and other items |
(6,892 |
) |
— |
— |
|
— |
|
— |
— |
|
(6,892 |
) |
| Depreciation expense |
10,275 |
|
— |
— |
|
— |
|
— |
— |
|
— |
|
a) COGS - Cost of goods
soldb) SG&A - Selling, general and
administrativec) R&D - Research &
developmentd) Amort. - Intangible asset
amortizatione) OI&E - Other income &
expensef) Tax - Income tax expense (benefit)
RECONCILIATION OF NON-GAAP ADJUSTMENTS - GAAP NET
INCOME TO ADJUSTED EBITDA(UNAUDITED)
(In thousands)
| |
Three Months Ended Sept 30, |
| |
2023 |
|
2022 |
| |
|
|
|
|
GAAP net income |
|
19,497 |
|
|
|
49,915 |
|
| Non-GAAP adjustments: |
|
|
|
| Depreciation and intangible
asset amortization expense |
|
30,538 |
|
|
|
29,467 |
|
| Other (income) expense,
net |
|
(348 |
) |
|
|
(1,972 |
) |
| Interest expense, net |
|
8,455 |
|
|
|
9,545 |
|
| Income tax expense |
|
(888 |
) |
|
|
8,881 |
|
| Structural optimization
charges |
|
5,893 |
|
|
|
10,112 |
|
| EU Medical Device Regulation
charges |
|
13,490 |
|
|
|
13,208 |
|
| Boston Recall |
|
5,636 |
|
|
|
— |
|
| Acquisition, divestiture and
integration-related charges |
|
5,832 |
|
|
|
(13,842 |
) |
| Total of non-GAAP
adjustments |
|
68,608 |
|
|
|
55,400 |
|
| Adjusted EBITDA |
$ |
88,105 |
|
|
$ |
105,315 |
|
| |
|
|
|
RECONCILIATION OF NON-GAAP ADJUSTMENTS - GAAP NET
INCOME TO MEASURES OF ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER
SHARE(UNAUDITED)
(In thousands, except per share amounts)
| |
Three Months Ended Sept 30, |
| |
2023 |
|
2022 |
| |
|
|
|
|
GAAP net income |
|
19,497 |
|
|
|
49,915 |
|
| Non-GAAP adjustments: |
|
|
|
| Structural optimization
charges |
|
5,893 |
|
|
|
10,112 |
|
| Acquisition, divestiture and
integration-related charges(1) |
|
5,832 |
|
|
|
(13,841 |
) |
| EU Medical Device Regulation
charges |
|
13,490 |
|
|
|
13,208 |
|
| Boston Recall |
|
5,636 |
|
|
|
— |
|
| Intangible asset amortization
expense |
|
20,869 |
|
|
|
19,192 |
|
| Estimated income tax impact
from adjustments and other items |
|
(10,677 |
) |
|
|
(6,892 |
) |
| Total of non-GAAP
adjustments |
|
41,042 |
|
|
|
21,779 |
|
| Adjusted net income |
$ |
60,539 |
|
|
$ |
71,694 |
|
| |
|
|
|
| Adjusted diluted net income
per share |
$ |
0.76 |
|
|
$ |
0.86 |
|
| Weighted average common shares
outstanding for diluted net income per share |
|
79,811 |
|
|
|
83,399 |
|
| |
|
|
|
|
|
|
|
CONDENSED BALANCE SHEET DATA(UNAUDITED)
(In thousands)
| |
September 30,2023 |
|
December 31,2022 |
| |
|
|
|
|
Cash and cash equivalents |
$ |
273,732 |
|
$ |
456,661 |
| Trade accounts receivable,
net |
|
256,270 |
|
|
263,465 |
| Inventories, net |
|
366,251 |
|
|
324,583 |
| |
|
|
|
| Current and long-term
borrowing under senior credit facility |
|
859,776 |
|
|
771,274 |
| Borrowings under
securitization facility |
|
75,700 |
|
|
104,700 |
| Long-term convertible
securities |
|
569,527 |
|
|
567,341 |
| |
|
|
|
| |
|
|
|
| Stockholders' equity |
$ |
1,579,221 |
|
$ |
1,804,403 |
| |
|
|
|
| |
|
|
|
CONDENSED STATEMENT OF CASH FLOWS(UNAUDITED)
(In thousands)
| |
Nine Months Ended Sept 30, |
| |
2023 |
|
2022 |
| |
|
|
|
|
Net cash provided by operating activities |
$ |
81,205 |
|
|
$ |
179,135 |
|
| Net cash used in investing
activities |
|
(36,949 |
) |
|
|
(3,760 |
) |
| Net cash used by financing
activities |
|
(223,035 |
) |
|
|
(154,254 |
) |
| Effect of exchange rate
changes on cash and cash equivalents |
|
(4,150 |
) |
|
|
(22,632 |
) |
| |
|
|
|
| Net decrease in cash and cash
equivalents |
$ |
(182,929 |
) |
|
$ |
(1,511 |
) |
| |
|
|
|
RECONCILIATION OF NON-GAAP ADJUSTMENTS - GAAP
OPERATING CASH FLOW TO MEASURES OF FREE CASH FLOW AND ADJUSTED FREE
CASH FLOW CONVERSION(UNAUDITED)(In thousands)
| |
Three Months Ended Sept 30, |
| |
2023 |
2022 |
|
Net cash provided by operating activities |
$ |
26,770 |
|
$ |
68,310 |
|
| |
|
|
| |
|
|
| Purchases of property and
equipment |
$ |
(13,063 |
) |
$ |
(9,157 |
) |
| Free cash flow |
|
13,707 |
|
|
59,153 |
|
| |
|
|
| Adjusted net income(1) |
$ |
60,539 |
|
$ |
71,694 |
|
| Adjusted free cash flow
conversion |
|
22.6 |
% |
|
82.5 |
% |
| |
|
|
| |
|
|
| |
Twelve Months Ended Sept 30, |
| |
2023 |
2022 |
| Net cash provided by operating
activities |
$ |
166,539 |
|
$ |
248,418 |
|
| |
|
|
| Purchases of property and
equipment |
|
(56,868 |
) |
|
(55,315 |
) |
| Free cash flow |
$ |
109,671 |
|
$ |
193,103 |
|
| |
|
|
| Adjusted net income(1) |
$ |
257,514 |
|
$ |
274,183 |
|
| Adjusted free cash flow
conversion |
|
42.6 |
% |
|
70.4 |
% |
| |
|
|
(1) Adjusted net income for quarters ended
September 30, 2023 and 2022 are reconciled above. Adjusted net
income for remaining quarters in the trailing twelve months
calculation have been previously reconciled and are publicly
available in the Quarterly Earnings Call Presentations on our
website at investor.integralife.com under Events &
Presentations.
The Company calculates adjusted free cash flow
conversion by dividing its free cash flow by adjusted net income.
The Company believes this measure is useful in evaluating the
significance of the cash special charges in its adjusted earnings
measures.
RECONCILIATION OF NON-GAAP ADJUSTMENTS - NET DEBT
CALCULATION(UNAUDITED)
| (In thousands) |
|
| |
September 30,2023 |
December 31,2022 |
|
Short-term borrowings under senior credit facility |
|
9,687 |
|
$ |
38,125 |
|
| Long-term borrowings under
senior credit facility |
|
850,089 |
|
|
733,149 |
|
| Borrowings under
securitization facility |
|
75,700 |
|
|
104,700 |
|
| Long-term convertible
securities |
|
569,527 |
|
|
567,341 |
|
| Deferred financing costs
netted in the above |
|
10,697 |
|
|
11,385 |
|
| Cash & Cash
Equivalents |
|
(273,732 |
) |
|
(456,661 |
) |
| Net Debt |
$ |
1,241,968 |
|
$ |
998,039 |
|
Integra LifeSciences (NASDAQ:IART)
Historical Stock Chart
From Apr 2024 to May 2024
Integra LifeSciences (NASDAQ:IART)
Historical Stock Chart
From May 2023 to May 2024
