PLAINSBORO, N.J., Nov. 03, 2015 (GLOBE NEWSWIRE) — Integra LifeSciences Holdings Corporation (Nasdaq:IART) today reported its financial results for the third quarter ending September 30, 2015.
- Third quarter revenue increased 14.6% over the prior year quarter to $226.4 million and organic revenue increased 7.2%;
- Adjusted net income increased 15.1% over the prior year quarter to $27.0 million;
- Adjusted free cash flow conversion for the first nine months of 2015 was 80.4% versus 22.6% in the nine months ending September 30, 2014;
- FOUNDER Study results were published online on August 25, 2015 and show an increased rate of complete wound closure in chronic Diabetic Foot Ulcer patients;
- Successfully raised $230 million in a public offering of common stock and completed an expansion of the credit facility from $900 million to $1.1 billion in August 2015;
- Recently completed several strategic transactions including the spin-off of SeaSpine and the acquisitions of TEI and the Salto Talaris(R);
- Raised low-end of guidance range for full-year 2015 sales, organic sales and adjusted earnings per share.
Total revenues for the third quarter were $226.4 million, reflecting an increase of $28.8 million, or 14.6%, over the third quarter of 2014.
Excluding the contribution of revenues from acquisitions, discontinued products and the effect of currency exchange rates, revenues increased 7.2% over the third quarter of 2014.
“Revenues from our dural repair, upper extremities and regenerative tissue businesses helped drive organic growth over 7% in the third quarter,” said Peter Arduini, Integra’s President and Chief Executive Officer. “The team accomplished a number of critical milestones including two key acquisitions, the spin-off of SeaSpine and an equity offering, all of which set up the company for the next phase of growth.”
Associated with the SeaSpine separation on July 1, 2015, the Company recorded a one-time, non-cash tax charge of $35.6 million or $1.00 per share to establish a valuation allowance for certain deferred tax assets in the third quarter. The Company reported GAAP net loss of $(31.9) million, or $(0.90) per share, for the third quarter of 2015, compared to GAAP net income from continuing operations of $9.0 million or $0.27 per share, for the third quarter of 2014.
Adjusted measures discussed below are computed with the adjustments to GAAP reporting set forth in the attached reconciliation.
Adjusted net income for the third quarter of 2015 was $27.0 million, or $0.75 per share, compared to adjusted net income of $23.4 million, or $0.71 per share, in the third quarter of 2014.
Adjusted EBITDA for the third quarter of 2015 was $47.7 million, or 21.1% of revenue, compared to $44.8 million, or 22.7% of revenue, in the prior year third quarter.
Adjusted free cash flow conversion for the first nine months of 2015 was 80.4% versus 22.6% in the prior-year period.
Outlook for 2015
Based upon the third quarter results, the Company is raising the low end of its previously provided full-year 2015 guidance for continuing operations. The Company now expects revenue of $878 million to $885 million, up from prior guidance of $870 million to $885 million, organic revenue growth of 6% to 7%, up from prior guidance of 6.0%, and adjusted EPS of $3.05 to $3.10, up from prior guidance of 3.00 to $3.10. This guidance also includes an immaterial contribution from the assets acquired from Tornier, completed in October. The Company’s GAAP EPS guidance from continuing operations is now $0.20 to $0.25.
“We are pleased with the consistent financial performance and execution against our plans through the first nine months of the year. TEI and the Salto Talaris(R) are a great fit for Integra and the integrations are proceeding as planned,” said Glenn Coleman, Integra’s Chief Financial Officer. “This gives us the confidence to raise the low-end of our guidance range for total revenue, organic sales growth and adjusted earnings per share.”
In the future, the Company may record, or expects to record, certain additional revenues, gains, expenses or charges as described in the Discussion of Adjusted Financial Measures below that it will exclude in the calculation of adjusted EBITDA and adjusted earnings per share for historical periods and in providing adjusted earnings per share guidance.
Conference Call and Presentation Available Online
Integra has scheduled a conference call for 8:30 AM ET today, Tuesday, November 3, 2015, to discuss financial results for the third quarter 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.
Access to the live call is available by dialing (913) 312-1424 and using the passcode 961950. The call can also be accessed through a webcast via a link provided on the Investor Relations homepage of Integra’s website at investor.integralife.com. Access to the replay is available through November 21, 2015 by dialing (719) 457-0820 and using the passcode 961950. The webcast will also be archived on the website.
Integra to host Investor Day on November 12, 2015 in New York City
Integra will also host its Investor Day meeting on Thursday, November 12, 2015, beginning at 8:30am (ET) in New York City. During the meeting, Integra’s senior management will review the Company’s strategy, product pipeline and longer term financial goals. The event will last approximately three and a half hours and will be webcast. A link to the Investor Day webcast will be available on the Investor Relations homepage of Integra’s website at www.integralife.com.