Integer Holdings Corporation Reports Second Quarter 2018 Results - Integer

Integer Holdings Corporation Reports Second Quarter 2018 Results

Company News

PLANO, Texas, Aug. 02, 2018 — Integer Holdings Corporation (NYSE:ITGR), a leading medical device outsource manufacturer, today announced results for the three and six months ended June 29, 2018.

Completed divestiture of AS&O Product Lines for $600 million

  • On July 2, 2018, subsequent to the end of the second quarter, completed the divestiture of Advanced Surgical and Orthopedics product lines to Viant (formerly MedPlast LLC) for $600 million in cash. 
  • On July 10, 2018, paid down debt by $548 million, including $360 million senior notes with 9.125% fixed rate.

Second Quarter 2018 Highlights (Excludes Divested AS&O Product Lines)

  • Sales from continuing operations $314 million, 12% growth.  Non-GAAP adjusted sales from continuing operations were $313 million.
  • GAAP income from continuing operations increased $13 million to $23 million.  Non-GAAP income from continuing operations increased $11 million to $35 million.
  • Adjusted EBITDA from continuing operations increased 26% to $71 million.
  • GAAP diluted EPS from continuing operations increased $0.40 per share to $0.70 per share.  Non-GAAP EPS from continuing operations increased $0.32 per share to $1.06, an increase of 43%.
  • Paid down $25 million of debt in second quarter 2018 and $75 million in first half 2018.

Revised 2018 full year Financial Guidance (Excludes Divested AS&O Product Lines)

  • GAAP EPS guidance decreased by $0.60 to $0.95 to $1.25.  Non-GAAP EPS guidance increased by $0.15 to $3.35 to $3.65 despite lowering sales by approximately $345 million and Adjusted EBITDA by $55 million due to the AS&O divestiture.  Our Non-GAAP EPS guidance was increased primarily due to lower interest expense more than offsetting the divested AS&O operating profit.

“Integer delivered another strong quarter of sales growth and even stronger net income, which enabled continued debt reduction,” said Joseph Dziedzic, Integer’s president and chief executive officer.  “Our second quarter results were consistent with our prior full year guidance.  Non-GAAP EPS guidance increase of $0.15 is a direct result of the AS&O divestiture as our full year interest expense savings exceeds the divested AS&O operating profit.”

Read the complete earnings release.