On April 24, 2019 Integra LifeSciences Holdings Corporation (NASDAQ: IART), a leading global medical technology company, reported financial results for the first quarter ending March 31, 2019 (Press release, Integra LifeSciences, APR 24, 2019, View Source [SID1234535374]).
First Quarter 2019 Highlights
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Reported revenues were $359.7 million, an increase of 0.7% compared to the first quarter of 2018, and organic revenues increased 3.1% over the first quarter of 2018;
Reported revenues in the Codman Specialty Surgical segment decreased (0.7)% compared to the first quarter of 2018;
Reported revenues in the Orthopedics and Tissue Technologies segment increased 3.4% compared to the first quarter of 2018;
Foreign currency exchange rate changes negatively impacted reported revenues by $5.3 million in the first quarter of 2019;
GAAP gross margin was 64.2% and adjusted gross margin was 68.4%, an increase of 460 basis points and 180 basis points, respectively, compared to the first quarter of 2018;
GAAP earnings per diluted share were $0.38, compared to $0.14 in the first quarter of 2018;
Adjusted earnings per diluted share were $0.65, reflecting an increase of 12.1% over the first quarter of 2018;
The Company is reaffirming its revenue guidance for the full-year 2019, which includes total reported revenues of $1.515 billion to $1.525 billion and organic revenue growth of approximately 5%;
The Company is raising its GAAP earnings per diluted share to a new range of $1.46 to $1.53, from its prior range of $1.36 to $1.43, due to a one-time foreign tax benefit. The Company is reaffirming its adjusted earnings per diluted share of $2.65 to $2.72.
"We met our total revenue target and delivered better than expected profitability in the first quarter, while also achieving several significant milestones related to the Codman integration," said Peter Arduini, Integra’s president and chief executive officer. "We expect sequential improvements in our top line growth as we move past the disruption associated with the integration and ERP conversion and begin to benefit from multiple new product introductions."
The company reported GAAP net income of $32.8 million, or $0.38 per diluted share, in the first quarter of 2019, compared to GAAP net income of $11.0 million, or $0.14 per diluted share, in the first quarter of 2018. The increase in GAAP net income is a result of improved gross margins, lower acquisition and integration costs, lower interest expense and a one-time tax benefit in Switzerland.
Adjusted net income for the first quarter of 2019 was $56.4 million, an increase of 22.2% from the prior year’s first quarter. Adjusted earnings per diluted share for the first quarter of 2019 was $0.65, an increase of 12.1% over the prior year’s quarter.
Adjusted EBITDA for the first quarter of 2019 was $87.4 million, or 24.3% of revenue, compared to $83.2 million, or 23.3% of revenue, in the first quarter of 2018. This improvement was driven by higher gross margins, largely due to favorable product mix and manufacturing efficiencies.
2019 Full-Year Outlook
The Company is reaffirming its revenue guidance for the full-year 2019, which includes total reported revenues of $1.515 billion to $1.525 billion and organic revenue growth of approximately 5%. The Company is raising its GAAP earnings per diluted share to a new range of $1.46 to $1.53, from its prior range of $1.36 to $1.43, due to a one-time tax benefit. The Company is reaffirming its adjusted earnings per diluted share of $2.65 to $2.72.
"The strength of our gross margins contributed to adjusted earnings per share exceeding the high-end of our first quarter guidance range, and gives us increased confidence in our full-year 2019 targets," said Glenn Coleman, Chief Financial Officer.
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, which will be excluded from the calculation of adjusted EBITDA, adjusted earnings per share for historical periods and in adjusted earnings per share guidance.
Conference Call and Presentation Available Online
Integra has scheduled a conference call for 8:30 AM ET today, Wednesday, April 24, 2019, to discuss financial results for the first 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. The presentation can be found on investor.integralife.com.
Access to the live call is available by dialing (855) 719-5012 and using the passcode 1392893. The call can also be accessed via a webcast link provided on investor.integralife.com. A replay of the call will be available through April 29, 2019 by dialing (888) 203-1112 and using the passcode 1392893. The webcast will also be archived on the website.