NASDAQ$IART

Integra LifeSciences Holdings Corporation · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Integra LifeSciences' Q3 2023 financial performance was impacted by Boston returns, but demonstrated strong organic growth in Codman Specialty Surgical and Tissue Technologies businesses, excluding Boston.

Integra LifeSciences reported Q3 2023 revenues of $382.4 million, a decrease of 0.7% on a reported basis and 0.4% on an organic basis compared to the prior year. GAAP earnings per diluted share were $0.24, while adjusted earnings per diluted share were $0.76. The company is updating its full-year 2023 revenue and adjusted earnings per share guidance to a range of $1.541 billion to $1.547 billion and $3.10 to $3.14 respectively.

  • 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.
  • 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.
  • 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.

Headline financials

Total Revenue

$382M

Previous: $385M-0.7%
EPS (adj)

$0.76

Previous: $0.86-11.6%
Adjusted EBITDA

$88.1M

No prior period
Capital Expenditures

-$42.3M

Previous: -$27.9M-51.8%
Free Cash Flow

-$22.8M

Previous: $22M-203.7%
Net Income

$19.5M

Previous: $49.9M-60.9%
Operating Income

$26.6M

Previous: $65M-59.1%
Gross Profit

$218M

Previous: $237M-7.8%
Cash & Equivalents

$274M

Previous: $512M-46.5%
Total Assets

$3.74B

Previous: $3.81B-1.8%
R&D Expense

$27.7M

No prior period
Stock-Based Comp

$5.46M

Previous: $8.97M-39.1%

Revenue & EPS history

Integra LifeSciences · Revenue · Quarterly

$382M

Q3 2023-0.7%vs Q3 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Integra LifeSciences · $360M total across 4 segments · Q1 2021

  • Neurosurgery
    $189M+2.3%
  • Wound Reconstruction and Care
    $88.7M+22.7%
  • Instruments
    $52M+11.8%
  • Private Label
    $30.1M+3.4%

Forward guidance

The Company is updating its revenue and adjusted EPS expectations to $1.541 to $1.547 billion and $3.10 to $3.14, respectively.

Tailwinds

  • Expect to restart manufacturing in Boston by end of Q4’23
  • Resume commercial distribution in mid-to late Q2’24
  • 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
  • For the fourth quarter 2023, the Company expects reported revenues in the range of $397 million to $403 million
  • Adjusted earnings per diluted share are expected to be in the range of $0.89 to $0.93

Headwinds

  • 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
  • Organic growth excludes sales from the divestiture of the Company’s traditional wound care (TWC) business as of September 1, 2022
  • Organic growth excludes sales from the acquisition of Surgical Innovation Associates, Inc. (SIA) through December 1, 2023
  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-0.2%

Avg return

Earnings day

-1.4%

Avg return

5 days after

-1.8%

Avg return

30 days after

51%

35 / 68 earnings

Positive

+29.2%

Q3 2024

Best reaction

-23.5%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+24.4%+31.0%+65.1%
Q4 2025-2.1%-8.9%-20.6%
Q3 2025-23.5%-26.8%-15.0%
Q1 2025-20.9%-27.3%-22.3%
Q4 2024+12.1%+5.3%-0.2%
Q3 2024+29.2%+28.5%+25.1%
Q2 2024-20.4%-23.5%-35.3%
Q1 2024-13.2%-10.0%+9.9%
Q4 2023-16.6%-18.8%-19.9%
Q3 2023-4.5%-5.8%+6.3%
Q2 2023-3.1%-1.1%-9.5%
Q1 2023-6.2%-5.5%-34.7%
Q4 2022+0.2%+0.8%-3.1%
Q3 2022+11.1%+12.7%+21.1%
Q2 2022-1.5%-0.5%-14.8%
Q1 2022+2.9%-0.2%+2.5%
Q4 2021+0.9%+2.6%-2.8%
Q3 2021+7.1%+7.5%-5.3%
Q2 2021-0.2%-0.3%+2.6%
Q1 2021-2.0%-3.4%-9.9%
Q4 2020-4.1%-2.8%-6.2%
Q3 2020-7.0%-4.5%+19.5%
Q2 2020+6.4%+6.6%-5.6%
Q1 2020+1.5%-2.8%+7.9%
Q4 2019+2.9%-0.3%-35.7%
Q3 2019-7.7%-5.1%-2.0%
Q2 2019+12.0%+14.5%+8.0%
Q1 2019-3.1%-2.3%-7.7%
Q4 2018+5.7%+6.1%+6.5%
Q3 2018-12.6%-13.5%-13.9%
Q2 2018-2.3%-2.3%-5.5%
Q1 2018+9.8%+12.7%+16.7%
Q4 2017-4.1%-4.1%+0.7%
Q3 2017-9.1%-8.2%-4.9%
Q2 2017-9.9%-10.7%-10.9%
Q1 2017+4.6%+5.1%+12.1%
Q4 2016-2.1%-1.2%-1.2%
Q3 2016+1.6%-3.4%+3.8%
Q2 2016+6.8%+6.4%+9.0%
Q1 2016+6.7%
Q4 2015+3.8%
Q3 2015+2.8%
Q2 2015-0.1%
Q1 2015+7.5%
Q4 2014+2.3%
Q3 2014-7.5%
Q2 2014+1.0%
Q1 2014-1.6%
Q4 2013-3.9%
Q3 2013+4.4%
Q2 2013-2.2%
Q1 2013+0.2%
Q4 2012-4.8%
Q3 2012-0.3%
Q2 2012+4.1%
Q1 2012+9.4%
Q4 2011+1.2%
Q3 2011-21.8%
Q2 2011-5.3%
Q1 2010+2.1%
Q1 2011+0.8%
Q4 2008-0.7%
Q4 2010-0.7%
Q3 2010+2.2%
Q3 2009+2.2%
Q2 2009+6.2%
Q2 2010+6.2%
Q4 2009+6.2%

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