Integra LifeSciences Reports Fourth Quarter and Full-Year 2024 Financial Results and Provides 2025 Financial Guidance
Integra LifeSciences (NASDAQ: IART) reported Q4 2024 revenues of $442.6 million, an 11.5% increase (3.5% organic growth) compared to Q4 2023. Q4 adjusted EPS was $0.97, up from $0.89 in the prior year period.
For full-year 2024, revenues reached $1,610.5 million, representing a 4.5% increase on a reported basis but a 1.3% decrease organically compared to 2023. Full-year adjusted EPS was $2.56, down from $3.10 in 2023.
The company's Codman Specialty Surgical segment (71% of revenues) grew 15.8% on a reported basis and 4.1% organically in Q4, while Tissue Technologies (29% of revenues) increased 2.1% both on a reported and organic basis.
For 2025, Integra expects revenues between $1,650-$1,715 million (2.4-6.5% reported growth) and adjusted EPS of $2.41-$2.51. Q1 2025 revenue is projected at $375-$385 million with adjusted EPS of $0.40-$0.45.
Integra LifeSciences (NASDAQ: IART) ha riportato ricavi per il quarto trimestre del 2024 pari a 442,6 milioni di dollari, con un aumento dell'11,5% (crescita organica del 3,5%) rispetto al quarto trimestre del 2023. L'EPS rettificato per il quarto trimestre è stato di 0,97 dollari, in aumento rispetto a 0,89 dollari nello stesso periodo dell'anno precedente.
Per l'intero anno 2024, i ricavi hanno raggiunto 1.610,5 milioni di dollari, rappresentando un aumento del 4,5% su base riportata, ma una diminuzione dell'1,3% organicamente rispetto al 2023. L'EPS rettificato per l'intero anno è stato di 2,56 dollari, in calo rispetto a 3,10 dollari nel 2023.
Il segmento Codman Specialty Surgical dell'azienda (71% dei ricavi) è cresciuto del 15,8% su base riportata e del 4,1% organicamente nel quarto trimestre, mentre Tissue Technologies (29% dei ricavi) è aumentato del 2,1% sia su base riportata che organica.
Per il 2025, Integra prevede ricavi tra 1.650 e 1.715 milioni di dollari (crescita riportata del 2,4-6,5%) e un EPS rettificato di 2,41-2,51 dollari. I ricavi del primo trimestre del 2025 sono previsti tra 375 e 385 milioni di dollari, con un EPS rettificato di 0,40-0,45 dollari.
Integra LifeSciences (NASDAQ: IART) reportó ingresos de 442,6 millones de dólares en el cuarto trimestre de 2024, un aumento del 11,5% (crecimiento orgánico del 3,5%) en comparación con el cuarto trimestre de 2023. El EPS ajustado del cuarto trimestre fue de 0,97 dólares, frente a 0,89 dólares en el mismo periodo del año anterior.
Para el año completo de 2024, los ingresos alcanzaron 1.610,5 millones de dólares, lo que representa un aumento del 4,5% en términos reportados, pero una disminución del 1,3% de manera orgánica en comparación con 2023. El EPS ajustado para el año completo fue de 2,56 dólares, en comparación con 3,10 dólares en 2023.
El segmento Codman Specialty Surgical de la compañía (71% de los ingresos) creció un 15,8% en términos reportados y un 4,1% de manera orgánica en el cuarto trimestre, mientras que Tissue Technologies (29% de los ingresos) aumentó un 2,1% tanto en términos reportados como orgánicos.
Para 2025, Integra espera ingresos entre 1.650 y 1.715 millones de dólares (crecimiento reportado del 2,4-6,5%) y un EPS ajustado de 2,41-2,51 dólares. Se proyecta que los ingresos del primer trimestre de 2025 estén entre 375 y 385 millones de dólares, con un EPS ajustado de 0,40-0,45 dólares.
Integra LifeSciences (NASDAQ: IART)는 2024년 4분기 수익이 4억 4천 2백 60만 달러에 달하며, 이는 2023년 4분기 대비 11.5% 증가(유기적 성장 3.5%)한 수치라고 보고했습니다. 4분기 조정 EPS는 0.97달러로, 전년 동기 0.89달러에서 증가했습니다.
2024년 전체 연도 수익은 16억 1천 5백만 달러에 달하며, 이는 보고 기준으로 4.5% 증가했지만, 2023년과 비교할 때 유기적으로는 1.3% 감소했습니다. 전체 연도 조정 EPS는 2.56달러로, 2023년의 3.10달러에서 감소했습니다.
회사의 Codman Specialty Surgical 부문(수익의 71%)은 4분기 동안 보고 기준으로 15.8% 증가하고 유기적으로 4.1% 증가했습니다. 한편, Tissue Technologies (수익의 29%)는 보고 기준과 유기적으로 모두 2.1% 증가했습니다.
2025년을 위해 Integra는 수익이 16억 5천만에서 17억 1천 5백만 달러(보고 기준 성장 2.4-6.5%)와 조정 EPS가 2.41-2.51달러에 이를 것으로 예상합니다. 2025년 1분기 수익은 3억 7천 5백만에서 3억 8천 5백만 달러로 예상되며, 조정 EPS는 0.40-0.45달러로 예상됩니다.
Integra LifeSciences (NASDAQ: IART) a annoncé des revenus de 442,6 millions de dollars pour le quatrième trimestre de 2024, soit une augmentation de 11,5% (croissance organique de 3,5%) par rapport au quatrième trimestre de 2023. Le EPS ajusté pour le quatrième trimestre était de 0,97 dollar, en hausse par rapport à 0,89 dollar au cours de la période de l'année précédente.
Pour l'année complète 2024, les revenus ont atteint 1.610,5 millions de dollars, représentant une augmentation de 4,5% sur une base déclarée mais une diminution de 1,3% de manière organique par rapport à 2023. Le EPS ajusté pour l'année complète était de 2,56 dollars, en baisse par rapport à 3,10 dollars en 2023.
Le segment Codman Specialty Surgical de l'entreprise (71% des revenus) a connu une croissance de 15,8% sur une base déclarée et de 4,1% de manière organique au quatrième trimestre, tandis que Tissue Technologies (29% des revenus) a augmenté de 2,1% tant sur une base déclarée qu'organique.
Pour 2025, Integra prévoit des revenus compris entre 1.650 et 1.715 millions de dollars (croissance déclarée de 2,4-6,5%) et un EPS ajusté de 2,41 à 2,51 dollars. Les revenus du premier trimestre 2025 sont projetés entre 375 et 385 millions de dollars, avec un EPS ajusté de 0,40 à 0,45 dollar.
Integra LifeSciences (NASDAQ: IART) berichtete für das vierte Quartal 2024 von Einnahmen in Höhe von 442,6 Millionen US-Dollar, was einem Anstieg von 11,5% (3,5% organisches Wachstum) im Vergleich zum vierten Quartal 2023 entspricht. Der bereinigte EPS für das vierte Quartal betrug 0,97 US-Dollar, ein Anstieg von 0,89 US-Dollar im Vorjahreszeitraum.
Für das Gesamtjahr 2024 erreichten die Einnahmen 1.610,5 Millionen US-Dollar, was einem Anstieg von 4,5% auf berichteter Basis entspricht, jedoch einem Rückgang von 1,3% organisch im Vergleich zu 2023. Der bereinigte EPS für das Gesamtjahr betrug 2,56 US-Dollar, ein Rückgang von 3,10 US-Dollar im Jahr 2023.
Das Segment Codman Specialty Surgical des Unternehmens (71% der Einnahmen) wuchs im vierten Quartal um 15,8% auf berichteter Basis und um 4,1% organisch, während Tissue Technologies (29% der Einnahmen) sowohl auf berichteter als auch organischer Basis um 2,1% zunahm.
Für 2025 erwartet Integra Einnahmen zwischen 1.650 und 1.715 Millionen US-Dollar (berichtetes Wachstum von 2,4-6,5%) und einen bereinigten EPS von 2,41-2,51 US-Dollar. Der Umsatz im ersten Quartal 2025 wird auf 375-385 Millionen US-Dollar mit einem bereinigten EPS von 0,40-0,45 US-Dollar prognostiziert.
- Q4 2024 revenues increased 11.5% to $442.6 million (3.5% organic growth)
- Q4 adjusted EPS improved to $0.97 from $0.89 in Q4 2023
- CSF management grew low double-digits driven by BactiSeal and Certas Plus
- Wound Reconstruction grew 8.2% organically with low double-digit growth in several products
- Neuro monitoring grew high single-digits driven by CereLink ICP monitors
- Full-year 2024 organic sales decreased 1.3% compared to 2023
- Full-year 2024 adjusted EPS declined to $2.56 from $3.10 in 2023
- Adjusted EBITDA margins decreased 400 basis points to 20.0% for full-year 2024
- Net debt reached $1.5 billion with a consolidated leverage ratio of 4.0x
- Q1 2025 guidance projects organic growth decline of -6.2% to -3.5%
- Private label sales down 16% in Q4 due to component supply delay
Insights
Integra LifeSciences' Q4 2024 results show signs of stabilization after a challenging year, with reported revenue growth of 11.5% to $442.6 million and organic growth of 3.5%. The quarterly adjusted EPS of $0.97 improved 9% year-over-year, suggesting operational improvements in the final quarter despite persistent headwinds.
The company's full-year performance reveals more significant challenges, with organic revenue declining 1.3% and adjusted EBITDA margins contracting 400 basis points to 20.0%. The GAAP loss of $(0.09) per share for 2024 reflects substantial one-time costs and operational disruptions throughout the year.
The Codman Specialty Surgical segment demonstrated resilience with 4.1% organic growth in Q4, driven by strong performance in CSF management (low double-digits) and neuro monitoring (high single-digits). The CereLink ICP monitors appear to be gaining market traction, while the Acclarent acquisition is significantly boosting reported growth figures in the ENT category.
In Tissue Technologies, the divergence between wound reconstruction (+8.2% organic growth) and private label (-16% organic decline) highlights both the strength of the company's branded portfolio and the supply chain vulnerabilities affecting overall performance. The component supply delays in private label represent a significant drag on this segment.
The company's $1.5 billion net debt position and 4.0x leverage ratio are concerning, particularly with free cash flow generation ($25.4 million after capital expenditures). This financial position constrains flexibility as the company navigates its compliance challenges and necessary operational investments.
The 2025 guidance suggests a gradual recovery trajectory, with 1.0-5.0% projected organic growth for the full year despite a weak Q1 outlook (-6.2% to -3.5% organic growth). This implies management expects significant improvement in the latter part of 2025 as compliance initiatives take effect and production constraints ease.
The ongoing implementation of the Compliance Master Plan represents both a near-term headwind (intermittent ship holds) and a necessary investment in sustainable growth. Investors should monitor quarterly progress on quality system improvements as a leading indicator of future performance.
Integra's Q4 results and 2025 guidance reveal a company in the midst of a significant quality system remediation that is materially impacting financial performance. The implementation of an enterprise-wide "Compliance Master Plan" signals systematic quality management deficiencies requiring comprehensive remediation, not isolated product issues.
The financial impact of these compliance challenges is substantial and will continue through 2025. The -1.3% organic revenue decline for 2024 and projected -6.2% to -3.5% organic decline for Q1 2025 directly result from "intermittent ship holds" - regulatory terminology indicating products cannot be distributed due to quality system non-conformances. These situations typically arise following FDA inspections with significant observations.
Several regulatory red flags warrant investor attention:
- The mention of SurgiMend receiving "PMA approvable notification pending GMP certification" indicates the FDA has identified manufacturing compliance issues serious enough to delay product approval
- The planned manufacturing transition of PriMatrix and SurgiMend to Braintree in 2026 suggests a long-term remediation strategy for these product lines
- The recall of patties and strips in the neurosurgery segment points to specific product quality issues
Based on industry patterns, comprehensive quality system remediations typically require 18-36 months and substantial investment. The 400 basis point contraction in EBITDA margins (to 20.0%) reflects both lost revenue and increased quality-related expenses, a pattern likely to continue through 2025.
The company's 4.0x leverage ratio creates additional risk during this remediation period. With free cash flow ($25.4 million after $104 million in capital expenditures), Integra faces constraints on its ability to invest in both remediation and growth initiatives simultaneously.
New CEO Mojdeh Poul's acknowledgment of "significant work ahead to enhance our quality system" confirms the severity of these challenges. The gradual improvement projected in the 2025 guidance (full-year organic growth of 1.0-5.0% despite a weak Q1) suggests management expects remediation efforts to yield progressive improvements throughout the year, though execution risks remain significant.
Integra's Q4 results reveal a company with strong differentiated products battling significant operational headwinds. The 3.5% organic growth in Q4 represents a modest recovery, though the full-year -1.3% organic decline reflects persistent challenges throughout 2024.
Within the portfolio, several bright spots emerge despite broader constraints. The CSF management product line achieved low double-digit growth driven by BactiSeal and Certas Plus, maintaining Integra's leadership position in this high-margin neurosurgical niche. CereLink ICP monitors continue to gain market share with high single-digit growth, leveraging their clinical advantages in accuracy and infection control over competing systems.
The Wound Reconstruction portfolio's 8.2% organic growth demonstrates the market's strong reception to DuraSorb and the established regenerative matrix products (MicroMatrix, Cytal). This performance is particularly notable given the competitive intensity in advanced wound care.
However, these product strengths are being overshadowed by operational challenges:
- The "Compliance Master Plan" and "intermittent ship holds" indicate systemic quality system deficiencies requiring comprehensive remediation
- Production constraints on Integra Skin (despite mid-single-digit growth) and the -16% decline in private label business point to manufacturing vulnerabilities
- The planned manufacturing transition of PriMatrix and SurgiMend to Braintree in 2026 suggests a long-term manufacturing strategy shift with potential near-term disruption risks
The Acclarent acquisition has significantly boosted reported growth while diversifying Integra's portfolio into the ENT space, though integration costs are likely contributing to the 400 basis point contraction in adjusted EBITDA margins (to 20.0%).
The company's $1.5 billion net debt and 4.0x leverage ratio create additional pressure during this operational turnaround. With capital expenditures consuming 80% of operating cash flow in 2024, financial flexibility is constrained as the company balances compliance investments with growth initiatives.
The 2025 guidance trajectory—starting with -6.2% to -3.5% organic growth in Q1 before improving to 1.0-5.0% for the full year—suggests management expects a gradual recovery as quality system enhancements take effect. The international expansion and China manufacturing build-out represent important diversification strategies amid domestic regulatory challenges.
PRINCETON, N.J., Feb. 25, 2025 (GLOBE NEWSWIRE) -- Integra LifeSciences Holdings Corporation (NASDAQ: IART) today reported financial results for the fourth quarter and full year ended December 31, 2024.
Fourth Quarter 2024
- Reported revenues were
$442.6 million , representing an increase of11.5% on a reported basis and an increase of3.5% on an organic basis compared to the fourth quarter 2023.
- GAAP earnings per diluted share were
$0.25 , compared to$0.25 in the fourth quarter 2023.
- Adjusted earnings per diluted share were
$0.97 , compared to$0.89 in the fourth quarter 2023.
Full-Year 2024
- Reported revenues were
$1,610.5 million , representing an increase of4.5% on a reported basis and a decrease of1.3% on an organic basis compared to full-year 2023.
- GAAP earnings per diluted share were
$(0.09) , compared to$0.84 in 2023.
- Adjusted earnings per diluted share were
$2.56 , compared to$3.10 in 2023.
2024 Business Highlights
- Appointed Mojdeh Poul as President & CEO
- Experienced strong demand for our differentiated portfolio of leading brands
- Initiated the Compliance Master Plan, an enterprise-wide approach to enhance quality management systems
- Made critical investments in capacity and supply reliability
- Integrated the Acclarent acquisition successfully
- Realized strong market uptake of CereLink®
- Announced transition of manufacturing of PriMatrix® and SurgiMend® to Braintree, Massachusetts in the first half of 2026
- Advanced PMA submission for DuraSorb® and received PMA approvable notification pending GMP certification for SurgiMend
- Expanded international commercial footprint and portfolio; advanced in-China-for-China manufacturing build-out
"As I step into my role leading Integra, I am inspired by the strength of our portfolio, the dedication of our team, and the tremendous potential we have to grow and innovate in high-impact specialty markets. Our fourth-quarter results reflect this strength, with sequential revenue growth driven by robust demand for our leading brands, continued progress in expanding our global presence, and our ongoing commitment to improving supply reliability," said Mojdeh Poul, president and chief executive officer.
"While there is significant work ahead to enhance our quality system and streamline our processes, I am confident in our ability to address these challenges and position Integra for long-term, sustainable growth. By leveraging our competitive strengths, differentiated technologies, commercial expertise, and global presence, we are poised to unlock new opportunities for innovation and deliver greater value to our customers, patients, and shareholders."
Fourth Quarter 2024 Financial Summary
Total reported revenues for the fourth quarter were
The Company reported GAAP net income of
Adjusted EBITDA for the fourth quarter of 2024 was
Adjusted net income for the fourth quarter of 2024 was
Cash flows from operations totaled
Fourth Quarter 2024 Segment Performance
- Codman Specialty Surgical (
71% of Revenues)- Total revenues were
$314.7 million , representing reported an increase of15.8% and4.1% on an organic basis compared to the fourth quarter of 2023. - Sales in Neurosurgery grew
5.1% on an organic basis:- CSF management grew low double-digits driven by BactiSeal® and Certas® Plus
- Neuro monitoring grew high single-digits driven by CereLink ICP monitors, BactiSeal and CerebroFlo® EVD catheters.
- Advanced energy grew low single-digits driven by CUSA® disposables
- Dural access and repair declined low single-digits due to the impact from the recall of patties and strips partially offset by growth in DuraGen®, DuraSeal® and Mayfeild®.
- Sales of Instruments were flat on an organic basis due to growth in hospital sales offset by a decrease in alternative site sales due to order timing.
- ENT reported revenue growth driven primarily by the Acclarent acquisition.
- Total revenues were
- Tissue Technologies (
29% of Revenue)- Total revenues were
$128.0 million , representing an increase of2.1% on a reported and organic basis compared to the fourth quarter of 2023. - Sales in Wound Reconstruction grew
8.2% on an organic basis:- Low-double-digit growth in DuraSorb®, MicroMatrix®, Cytal® and AmnioExcel®
- Mid-single-digit growth in Integra Skin
- Sales in private label were down
16% on an organic basis due to a component supply delay
- Total revenues were
Full-Year 2024 Financial Summary
Total reported revenues for the full-year 2024 were
The Company reported GAAP net income of
Adjusted EBITDA for the full-year 2024 was
Adjusted net income for the full-year 2024 was
2024 Balance Sheet, Cash Flow and Capital Allocation
The Company generated cash flow from operations of
2025 Revenue and Adjusted Earnings Per Share Guidance
For the full-year 2025, the Company expects revenues to be in the range of
For the first quarter 2025, the Company expects reported revenues in the range of
Organic sales growth excludes acquisitions as well as the effects of foreign currency.
The Company is providing forward-looking guidance regarding adjusted earnings per diluted share but is not providing a reconciliation to GAAP earnings per share, because certain GAAP expense items are highly variable, and management is unable to predict them with reasonable certainty and without unreasonable effort. Specifically, the financial impact and timing of divestitures, acquisitions, integrations, structural optimization and efforts to comply with the EU Medical Device Regulation are uncertain, depend on various dynamic factors and are not reasonably ascertainable at this time. These expense items could have a material impact on GAAP results.
Conference Call and Presentation Available Online
Integra has scheduled a conference call for 8:30 a.m. ET on Tuesday, February 25, 2025, to discuss fourth quarter and full-year 2024 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 Relations 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, please register here to receive dial-in details and a unique pin. While not required, it is recommended to join 10 minutes prior to the start of the event. A webcast replay of the conference call will be available on the Investor Relations 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. 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 the transition of Boston-related manufacturing operations to the Company’s Braintree, Massachusetts facility, and income tax expense (benefit) related to non-GAAP adjustments and other items, and the Company’s expectations and plans with respect to business and operational performance, strategic initiatives, capabilities, resources, product development, product availability and regulatory approvals, including expectations regarding the efficacy of the Company’s compliance master plan to improve the Company's quality system. 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, bank failures and 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 Acclarent and other 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; difficulties in implementing the Company’s compliance master plan and realizing the benefits contemplated thereby within the anticipated timeframe, or at all; difficulties or delays in obtaining and maintaining required regulatory approvals related to the transition of the manufacturing to the Company’s Braintree manufacturing facility; the possibility that costs or difficulties related to building and the operationalization of the Braintree facility or the transition of manufacturing activities from the Company’s Boston facility to the Braintree facility will be greater than expected; fluctuations in hospitals' spending for capital equipment; uncertainties inherent in the development of new products and the enhancement of existing products, including FDA approval and/or clearance and other regulatory risks, technical risks, cost overruns and delays; 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 the Company’s products; the ability of the Company to successfully manage leadership and organizational changes and 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 Device Regulation; the scope, duration and effect of U.S. and international governmental, regulatory, fiscal, monetary and public health responses to 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, 2024 to be filed 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, except as required by law.
Discussion of Adjusted 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 EBITDA margin, adjusted net income, adjusted gross profit, adjusted gross margin, 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. 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 EBITDA margin is calculated by dividing adjusted EBITDA by total revenues. 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 and distributed between March 1, 2018 and May 22, 2023, as previously disclosed in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on May 23, 2023 (the “recall”) and the transition of Boston-related manufacturing operations to the Company’s Braintree, Massachusetts facility; (v) intangible asset amortization expense; and (vi) income tax impact from adjustments. The measure of adjusted gross margin is calculated by dividing adjusted gross profit by total revenues. Adjusted gross profit consists of GAAP gross profit adjusted for: (i) structural optimization charges; (ii) divestiture, acquisition and integration-related charges; (iii) charges related to the recall and the transition of Boston-related manufacturing operations to the Company’s Braintree, Massachusetts facility; (iv) EU Medical Device Regulation-related charges; and (v) intangible asset amortization expense. 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 short-term investments, cash and cash equivalents.
Reconciliations of GAAP revenues to organic revenues, GAAP net income to adjusted EBITDA and adjusted net income, GAAP gross profit to adjusted gross profit, GAAP gross margin to adjusted gross margin, and GAAP earnings per diluted share to adjusted earnings per diluted share all for the quarters and years ended December 31, 2024 and 2023, GAAP total debt to net debt for the years ended December 31, 2024 and 2024, and the GAAP operating cash flow to free cash flow and adjusted free cash flow conversion for the quarters and years ended December 31, 2024 and 2023, 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) 772-7736
chris.ward@integralife.com
Media Contact:
Laurene Isip
(609) 208-8121
laurene.isip@integralife.com
INTEGRA LIFESCIENCES HOLDINGS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||
(In thousands, except per share amounts) | |||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Total revenues | 442,645 | 397,039 | 1,610,527 | 1,541,573 | |||||||
Costs and expenses: | |||||||||||
Cost of goods sold | 193,573 | 170,546 | 728,466 | 656,838 | |||||||
Research and development | 31,210 | 24,284 | 115,377 | 104,192 | |||||||
Selling, general and administrative | 178,520 | 163,128 | 716,983 | 656,641 | |||||||
Intangible asset amortization | 3,715 | 3,034 | 21,290 | 12,376 | |||||||
Total costs and expenses | 407,018 | 360,992 | 1,582,116 | 1,430,047 | |||||||
Operating income | 35,627 | 36,047 | 28,411 | 111,526 | |||||||
Interest income | 4,893 | 4,549 | 20,040 | 17,202 | |||||||
Interest expense | (18,984 | ) | (13,751 | ) | (70,632 | ) | (51,377 | ) | |||
Gain (loss) from the sale of business | — | — | — | — | |||||||
Other income, net | 1,005 | 2,013 | 3,944 | 3,718 | |||||||
Income (loss) before taxes | 22,541 | 28,858 | (18,237 | ) | 81,069 | ||||||
Income tax expense (benefit) | 3,106 | 9,024 | (11,293 | ) | 13,328 | ||||||
Net income (loss) | 19,435 | 19,834 | (6,944 | ) | 67,741 | ||||||
Net income (loss) per share: | |||||||||||
Diluted net income (loss) per share | 0.25 | 0.25 | (0.09 | ) | 0.84 | ||||||
Weighted average common shares outstanding for diluted net income per share | 76,419 | 77,959 | 77,010 | 80,337 | |||||||
Segment revenues and growth in total revenues excluding the effects of currency exchange rates, acquisitions and discontinued products are as follows:
(In thousands)
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||
Neurosurgery | 220,091 | 210,204 | 4.7 | % | 803,816 | 818,101 | (1.7 | )% | |||||
Instruments | 51,029 | 51,095 | (0.1 | )% | 204,177 | 203,617 | 0.3 | % | |||||
ENT | 43,540 | 10,328 | 321.6 | % | 135,643 | 37,275 | 263.9 | % | |||||
Total Codman Specialty Surgical | 314,660 | 271,627 | 15.8 | % | 1,143,636 | 1,058,993 | 8.0 | % | |||||
Wound Reconstruction and Care | 101,527 | 93,859 | 8.2 | % | 350,565 | 373,986 | (6.3 | )% | |||||
Private Label | 26,458 | 31,553 | (16.1 | )% | 116,326 | 108,594 | 7.1 | % | |||||
Total Tissue Technologies | 127,985 | 125,412 | 2.1 | % | 466,891 | 482,580 | (3.3 | )% | |||||
Total Reported Revenues | 442,645 | 397,039 | 11.5 | % | 1,610,527 | 1,541,573 | 4.5 | % | |||||
Impact of changes in currency exchange rates | 880 | — | — | 6,084 | — | — | |||||||
Less contribution of revenues from acquisitions | (32,763 | ) | — | — | (95,049 | ) | — | — | |||||
Less contribution of revenues from divested products | — | — | — | — | (245 | ) | — | ||||||
Less contribution of revenues from discontinued products | — | — | — | — | — | — | |||||||
Total organic revenues1 | 410,762 | 397,039 | 3.5 | % | 1,521,563 | 1,541,328 | (1.3 | )% | |||||
(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 from continuing operations and locations where each item is recorded are as follows:
(In thousands)
Three Months Ended December 31, 2024 | ||||||||||||||
Item | Total Amount | COGS(a) | SG&A(b) | R&D(c) | Amort.(d) | OI&E(e) | Tax(f) | |||||||
Acquisition, divestiture and integration-related charges | 2,264 | 513 | 315 | 1,034 | — | 402 | — | |||||||
Structural Optimization charges | 9,083 | 4,238 | 4,261 | 583 | — | — | — | |||||||
EU Medical Device Regulation charges | 9,461 | 1,054 | 3,933 | 4,474 | — | — | — | |||||||
Boston Recall/Braintree Transition | 11,358 | 10,966 | 392 | — | — | — | — | |||||||
Intangible asset amortization expense | 26,557 | 22,842 | — | — | 3,715 | — | — | |||||||
Estimated income tax impact from above adjustments and other items | (4,902 | ) | — | — | — | — | — | (4,902 | ) | |||||
Depreciation expense | 10,935 | — | — | — | — | — | — | |||||||
a) | COGS - Cost of goods sold | |
b) | SG&A - Selling, general and administrative | |
c) | R&D - Research & development | |
d) | Amort. - Intangible asset amortization | |
e) | OI&E - Other income & expense | |
f) | Tax - Income tax expense (benefit) | |
Three Months Ended December 31, 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 | 7,117 | 73 | 8,040 | (880 | ) | — | (116 | ) | — | |||||
Structural Optimization charges | 6,216 | 3,077 | 3,155 | (16 | ) | — | — | — | ||||||
EU Medical Device Regulation charges | 12,387 | 2,227 | 4,653 | 5,507 | — | — | — | |||||||
Boston Recall/Braintree Transition | 8,129 | 7,370 | 759 | — | — | — | — | |||||||
Intangible asset amortization expense | 20,687 | 17,653 | — | — | 3,034 | — | — | |||||||
Estimated income tax impact from above adjustments and other items | (5,272 | ) | — | — | — | — | — | (5,272 | ) | |||||
Depreciation expense | 9,834 | — | — | — | — | — | — | |||||||
(a) | COGS - Cost of goods sold | |
(b) | SG&A - Selling, general and administrative | |
(c) | R&D - Research & development | |
(d) | Amort. - Intangible asset amortization | |
(e) | OI&E - Other income & expense | |
(f) | Tax - Income tax expense (benefit) | |
Items included in GAAP net income and location where each item is recorded are as follows:
(In thousands)
Twelve Months Ended December 31, 2024 | ||||||||||||||
Item | Total Amount | COGS(a) | SG&A(b) | R&D(c) | Amort.(d) | OI&E(e) | Tax(f) | |||||||
Acquisition, divestiture and integration-related charges | 33,626 | 9,071 | 25,793 | (1,542 | ) | — | 304 | — | ||||||
Structural Optimization charges | 24,194 | 16,195 | 7,395 | 604 | — | — | — | |||||||
EU Medical Device Regulation charges | 44,570 | 4,020 | 18,875 | 21,674 | — | — | — | |||||||
Boston Recall | 45,034 | 43,175 | 1,859 | — | — | — | — | |||||||
Intangible asset amortization expense | 105,252 | 83,962 | — | — | 21,290 | — | — | |||||||
Estimated income tax impact from above adjustments and other items | (48,792 | ) | — | — | — | — | — | (48,792 | ) | |||||
Depreciation expense | 41,449 | — | — | — | — | — | — |
(a) | COGS - Cost of goods sold | |
(b) | SG&A - Selling, general and administrative | |
(c) | R&D - Research & development | |
(d) | Amort. - Intangible asset amortization | |
(e) | OI&E - Other income & expense | |
(f) | Tax - Income tax expense (benefit) | |
Twelve Months Ended December 31, 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 | 25,173 | 3,045 | 25,181 | (2,188 | ) | — | (865 | ) | — | |||||
Structural Optimization charges | 16,084 | 8,208 | 7,943 | (67 | ) | — | — | — | ||||||
EU Medical Device Regulation charges | 46,559 | 5,813 | 20,002 | 20,745 | — | — | — | |||||||
Boston Recall | 46,970 | 46,116 | 853 | — | — | — | — | |||||||
Intangible asset amortization expense | 82,823 | 70,447 | — | — | 12,376 | — | — | |||||||
Estimated income tax impact from above adjustments and other items | (37,573 | ) | — | — | — | — | — | (37,573 | ) | |||||
Depreciation expense | 39,704 | — | — | — | — | — | — |
(a) | COGS - Cost of goods sold | |
(b) | SG&A - Selling, general and administrative | |
(c) | R&D - Research & development | |
(d) | Amort. - Intangible asset amortization | |
(e) | OI&E - Other income & expense | |
(f) | Tax - Income tax expense (benefit) | |
INTEGRA LIFESCIENCES HOLDINGS CORPORATION RECONCILIATION OF NON-GAAP ADJUSTMENTS - GAAP NET INCOME FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA (UNAUDITED) | |||||||||||
(In thousands) | |||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
GAAP net income | 19,435 | 19,834 | (6,944 | ) | 67,741 | ||||||
Non-GAAP adjustments: | |||||||||||
Depreciation and intangible asset amortization expense | 37,491 | 30,522 | 146,701 | 122,528 | |||||||
Other (income), net | (1,407 | ) | (1,897 | ) | (4,248 | ) | (2,853 | ) | |||
Interest expense, net | 14,091 | 9,202 | 50,591 | 34,175 | |||||||
Income tax expense (benefit) | 3,106 | 9,024 | (11,293 | ) | 13,328 | ||||||
Structural optimization charges | 9,083 | 6,216 | 24,194 | 16,084 | |||||||
EU Medical Device Regulation charges | 9,461 | 12,387 | 44,570 | 46,559 | |||||||
Boston Recall | 11,358 | 8,129 | 45,034 | 46,970 | |||||||
Acquisition, divestiture and integration-related charges | 2,264 | 7,117 | 33,626 | 25,173 | |||||||
Total of non-GAAP adjustments | 85,447 | 80,700 | 329,175 | 301,964 | |||||||
Adjusted EBITDA | 104,882 | 100,534 | 322,231 | 369,705 | |||||||
INTEGRA LIFESCIENCES HOLDINGS CORPORATION RECONCILIATION OF NON-GAAP ADJUSTMENTS - GAAP NET INCOME FROM CONTINUING OPERATIONS TO MEASURES OF ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE (UNAUDITED) | |||||||||||||
(In thousands, except per share amounts) | |||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||
GAAP net income | 19,435 | 19,834 | (6,944 | ) | 67,741 | ||||||||
Non-GAAP adjustments: | |||||||||||||
Structural optimization charges | 9,083 | 6,216 | 24,194 | 16,084 | |||||||||
Acquisition, divestiture and integration-related charges | 2,264 | 7,117 | 33,626 | 25,173 | |||||||||
EU Medical Device Regulation charges | 9,461 | 12,387 | 44,570 | 46,559 | |||||||||
Boston Recall | 11,358 | 8,129 | 45,034 | 46,970 | |||||||||
Intangible asset amortization expense | 26,557 | 20,687 | 105,252 | 82,823 | |||||||||
Estimated income tax impact from adjustments and other items | (4,902 | ) | (5,272 | ) | (48,792 | ) | (37,573 | ) | |||||
Total of non-GAAP adjustments | 53,821 | 49,264 | 203,884 | 180,036 | |||||||||
Adjusted net income | $ | 73,256 | 69,098 | $ | 196,940 | 247,777 | |||||||
Adjusted diluted net income per share | 0.97 | 0.89 | $ | 2.56 | 3.10 | ||||||||
Weighted average common shares outstanding for diluted net income per share | 76,419 | 77,959 | 77,079 | 80,337 | |||||||||
INTEGRA LIFESCIENCES HOLDINGS CORPORATION CONDENSED BALANCE SHEET DATA (UNAUDITED) | |||||||
(In thousands) | |||||||
December 31, | December 31, | ||||||
2024 | 2023 | ||||||
Cash and cash equivalents | $ | 246,375 | $ | 276,402 | |||
Accounts receivable, net | 272,370 | 259,327 | |||||
Inventory, net | 429,090 | 389,608 | |||||
Current and long-term borrowing under senior credit facility | $ | 1,121,823 | 840,094 | ||||
Borrowings under securitization facility | 108,100 | 89,200 | |||||
Convertible securities | 573,170 | 570,255 | |||||
Stockholders' equity | 1,545,280 | 1,587,884 | |||||
INTEGRA LIFESCIENCES HOLDINGS CORPORATION CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED) | ||||||
Twelve Months Ending December 31, | ||||||
2024 | 2023 | |||||
Net cash provided by operating activities | $ | 129,382 | $ | 139,955 | ||
Net cash used in investing activities | (390,808 | ) | (94,178 | ) | ||
Net cash used in by financing activities | 237,863 | (229,925 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (6,464 | ) | 3,889 | |||
Net increase (decrease) in cash and cash equivalents | (30,027 | ) | (180,259 | ) | ||
RECONCILIATION OF NON-GAAP ADJUSTMENTS - GAAP OPERATING CASH FLOW TO MEASURES OF ADJUSTED FREE CASH FLOW AND ADJUSTED FREE CASH FLOW CONVERSION (UNAUDITED) | ||||||
(In thousands) | ||||||
Three Months Ended December 31, | ||||||
2024 | 2023 | |||||
GAAP Net cash provided by operating activities | $ | 50,746 | $ | 58,746 | ||
Purchases of property and equipment | (29,599 | ) | (24,563 | ) | ||
Adj. Free Cash Flow | $ | 21,147 | $ | 34,183 | ||
Adjusted net income (1) | $ | 73,256 | 69,098 | |||
Adjusted Free Cash Flow Conversion | 28.8 | % | 49.5 | % | ||
Twelve Months Ending December 31, | ||||||
2024 | 2023 | |||||
GAAP Net cash provided by operating activities | $ | 129,382 | $ | 139,955 | ||
Purchases of property and equipment | (104,418 | ) | (66,865 | ) | ||
Adj. Free Cash Flow | $ | 24,964 | $ | 73,090 | ||
Adjusted net income (1) | $ | 196,940 | 247,777 | |||
Adjusted Free Cash Flow Conversion | 12.7 | % | 29.5 | % | ||
(1) Adjusted net income for quarters and twelve months ended December 31, 2023 and 2024 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.
The Company calculates adjusted free cash flow conversion by dividing its free cash flow by adjusted net income. The Company believes this measure is a useful metric 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) | ||||||
December 31, 2024 | December 31, 2023 | |||||
Short-term borrowings under senior credit facility | $ | 33,906 | $ | 14,531 | ||
Long-term borrowings under senior credit facility | 1,087,917 | 825,563 | ||||
Borrowings under securitization facility | 108,100 | 89,200 | ||||
Convertible Securities | 573,170 | 570,255 | ||||
Deferred financing costs netted in the above | 5,475 | 9,651 | ||||
Short-term investments | (27,192 | ) | (32,694 | ) | ||
Cash & Cash Equivalents | (246,375 | ) | (276,402 | ) | ||
Net Debt | $ | 1,535,001 | $ | 1,200,104 | ||
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