Disclaimer

Please note that you are now entering a website directly or indirectly maintained by a third party (the "External Site") and that you do so at your own risk.

Please note that you are now entering a website directly or indirectly maintained by a third party (the "External Site") and that you do so at your own risk.

By clicking “Accept” you acknowledge and agree that neither ITGR nor third party provider Virtua Research, Inc. (“Virtua) is responsible, or accepts or assumes any responsibility or liability whatsoever for, the content, the data or the technical operation of the Linked Site. Further, by entering the External Site, you also acknowledge and agree that you completely and irrevocably waive any and all rights and claims against ITGR and Virtua and further acknowledge and agree that in no event shall ITGR or Virtua, its officers, employees, directors and agents be liable for any (i) indirect, consequential, incidental, special, compensatory or punitive damages, (ii) damages for loss of income, loss of business profits, business interruption, loss of data or business information, loss of or damage to property, (iii) claims of third parties, or (iv) other pecuniary loss, arising out of or related to this disclaimer or the External Site

By entering the External Site, you further acknowledge and agree that the disclaimer of warranties and limitations of liability set out in this disclaimer shall apply regardless of the causes, circumstances or form of action giving rise to the loss, damage, claim or liability, even if such loss, damage, claim or liability is based upon breach of contract (including, without limitation, a claim of fundamental breach or breach of a fundamental term), tort (including, without limitation, negligence), strict liability or any other legal or equitable theory, and even if ITGR and Virtua are advised of the possibility of the loss, damage, claim or liability. The waiver and release specifically includes, without limitation, any and all rights and claims pertaining to the processing of personal data, including but not limited to any rights under any applicable data protection statute(s).

If in any jurisdiction, any part of this disclaimer is held to be unenforceable by a court of competent jurisdiction, such part of this disclaimer shall be restricted or eliminated to the minimum extent and the remaining disclaimer shall otherwise remain in full force and effect.

Please note the information presented is deemed representative at the time of its original release. Changes in historical information may occur due to adjustments in accounting and reporting standards & procedures.

Non-GAAP Information

In addition to disclosing results determined in accordance with GAAP, ITGR may also disclose certain non-GAAP and pro forma non-GAAP results of operations, including certain ratios, operational and miscellaneous data, as well as net income, diluted earnings per share, operating expenses, and operating income that make certain adjustments or exclude certain charges and gains that are outlined in the schedules included in this website. Management believes that this non-GAAP and pro forma non-GAAP information provides investors with additional information to assess ITGR operating performance by making certain adjustments or excluding costs or gains and assists investors in comparing our operating performance to prior periods. Management uses this non-GAAP and pro forma non-GAAP information, along with GAAP information, in evaluating its historical operating performance. ITGR and Virtua also take no responsibility for third party pricing data provided for informational purposes and certain ratio results formulated from the provided third party pricing data.

The non-GAAP information is not prepared in accordance with GAAP and may not be comparable to non-GAAP information used by other companies. The non-GAAP information should not be viewed as a substitute for, or superior to, other data prepared in accordance with GAAP.

Integer Holdings Corporation Reports First Quarter 2020 Results

May 07 2020

~ Strong Earnings Per Share growth: +45% GAAP, +25% adjusted ~
~ Suspending 2020 guidance given COVID-19 uncertainty ~

PLANO, Texas, May 07, 2020 (GLOBE NEWSWIRE) -- Integer Holdings Corporation (NYSE:ITGR), a leading medical device outsource manufacturer, today announced results for the three months ended April 3, 2020.  Unless otherwise stated, all results and comparisons are from continuing operations.

Responding to the challenges of the COVID-19 pandemic

  • Integer is prioritizing the safety of its associates while providing critical products that its customers and patients rely on every day; as an essential business, all of Integer’s manufacturing sites are operating with social distancing and enhanced cleaning protocols.
  • Integer is communicating closely with its customers and suppliers to meet product demand and responding to increased critical needs, such as ventilator and patient monitoring components.
  • First quarter sales were largely unaffected by COVID-19 and operational inefficiencies related to COVID-19 were more than offset by strong operating income growth.
  • Integer is suspending its previously announced annual guidance for 2020, due to the uncertainty of the impact and the recovery period of the COVID-19 pandemic.  We expect the pandemic to temporarily reduce sales and profits.
  • Early in the second quarter, Integer executed a draw down of our full revolver to protect against the possibility of a prolonged pandemic coupled with financial market illiquidity.
  • As the sales reduction is expected to be temporary, we are taking a balanced approach to managing costs and protecting critical investments to be stronger post COVID-19.

First Quarter 2020 Highlights (compared to First Quarter 2019)

  • Sales increased $14 million to $328 million, an increase of 4%.
  • GAAP income increased $10 million to $31 million, an increase of 46%.  Non-GAAP adjusted income increased $8 million to $41 million, an increase of 26%.
  • Adjusted EBITDA increased $5 million to $71 million, an increase of 8%.
  • GAAP diluted EPS increased $0.29 per share to $0.94 per share, an increase of 45%.  Non-GAAP adjusted diluted EPS increased $0.25 per share to $1.25 per share, an increase of 25%.
  • Net total debt decreased $8 million from the end of 2019 to $804 million, achieving a leverage ratio of 2.8 times adjusted EBITDA.

“I’d like to recognize and thank all of our associates that remain committed to supplying critical components and products on which patients depend,” said Joseph Dziedzic, Integer’s president and chief executive officer. “We are taking the necessary actions in our manufacturing sites to protect our associates and continue operations. Our strong first quarter results were largely unaffected by COVID-19 and we are working closely with our customers and suppliers to manage changes in demand.  Given the COVID-19 uncertainty we are suspending 2020 guidance and we executed a revolver draw down to protect against a prolonged pandemic coupled with financial market illiquidity. As the sales reduction is expected to be temporary, we are taking a balanced approach to managing costs and protecting critical investments to be stronger post COVID-19.”

Discussion of Product Line First Quarter 2020 Sales (compared to First Quarter 2019)

  • Cardio & Vascular sales increased 17% driven by a strong increase in peripheral vascular demand from a customer’s continued launch of an existing program into a new geography.  We saw strong overall growth across most markets.  The quarter also benefited from incremental sales from the start of a new customer contract on existing business.  The impact of COVID-19 was negligible in the first quarter.
  • Cardiac & Neuromodulation sales decreased 8%. Neuromodulation declined from Nuvectra’s bankruptcy ($6 million) and headwind from 2019 supply agreement commitments.  Strong CRM growth from product launches and increased battery demand was partially offset by prior year impact of signing of a customer contract on existing business.   The impact of COVID-19 was negligible in the first quarter.
  • Advanced Surgical, Orthopedics & Portable Medical includes sales to the acquirer of our AS&O product line, Viant, under supply agreements entered into as part of the divestiture. Sales declined 1% driven by a decrease in Portable Medical battery demand, offset by increased end-market demand for Advanced Surgical and Orthopedic base products.  The impact of COVID-19 was negligible in the first quarter.
  • Electrochem sales declined 25% driven by a severe decline in the energy market due to both oversupply and demand fall-out from COVID-19 pandemic.
   
Summary of Financial and Product Line Results from Continuing Operations  
   
(dollars in thousands, except per share data) Three Months Ended
GAAP April 3,
2020
  March 29,
2019
  Change   Organic
Growth(a)
Medical Sales              
Cardio & Vascular $ 179,205   $ 152,574   17.5 %   16.8 %
Cardiac & Neuromodulation 107,820   116,911   (7.8 )%   (7.8 )%
Advanced Surgical, Orthopedics & Portable Medical 31,237   31,588   (1.1 )%   (1.1 )%
Total Medical Sales 318,262   301,073   5.7 %   5.4 %
Non-Medical Sales 10,164   13,603   (25.3 )%   (25.3 )%
Total Sales $ 328,426   $ 314,676   4.4 %   4.0 %
               
Income from continuing operations $ 31,100   $ 21,366   45.6 %   23.3 %
Diluted EPS from continuing operations $ 0.94   $ 0.65   44.6 %   23.0 %

(a) Organic Growth is a Non-GAAP measure.  Please see “Notes Regarding Non-GAAP Financial Information” for additional information regarding our use of non-GAAP financial measures and refer to Table C and Table D at the end of this release for a reconciliation of these amounts.

  Three Months Ended
Non-GAAP(a) April 3,
2020
  March 29,
2019
  Change   Organic
Growth(b)
Adjusted EBITDA from continuing operations $ 70,691   $ 65,660   7.7 %   5.5 %
Adjusted income from continuing operations $ 41,284   $ 32,840   25.7 %   23.3 %
Adjusted diluted EPS from continuing operations $ 1.25   $ 1.00   25.0 %   23.0 %

(a) Refer to Tables A and B at the end of this release for reconciliations of adjusted amounts to the closest corresponding GAAP financial measures.

(b) Organic Growth for Adjusted EBITDA from continuing operations, Adjusted income from continuing operations, and Adjusted diluted EPS from continuing operations are Non-GAAP measures.  Please see “Notes Regarding Non-GAAP Financial Information” for additional information regarding our use of non-GAAP financial measures and refer to Table D at the end of this release for a reconciliation of these amounts.

Conference Call Information
The Company will host a conference call on Thursday, May 7, 2020, at 5:00 p.m. EDT / 4:00 p.m. CDT to discuss these results.  The scheduled conference call will be webcast live and is accessible through our website at investor.integer.net or by dialing (833) 236-5762 (U.S.) or (647) 689-4190 (outside U.S.) and the conference ID is 4978959.  The call will be archived on the Company’s website.  An earnings call slide presentation containing supplemental information about the Company’s results will be posted to our website at investor.integer.net prior to the conference call and will be referenced during the conference call.

About Integer®
Integer Holdings Corporation (NYSE: ITGR) is one of the largest medical device outsource (MDO) manufacturers in the world serving the cardiac, neuromodulation, vascular, portable medical and orthopedics markets. The Company provides innovative, high-quality medical technologies that enhance the lives of patients worldwide. In addition, the Company develops batteries for high-end niche applications in energy, military, and environmental markets. The Company's brands include Greatbatch Medical®, Lake Region MedicalTM and ElectrochemTM. Additional information is available at www.integer.net.

Contact Information
Tony Borowicz
SVP, Strategy, Business Development & Investor Relations
716.759.5809
tony.borowicz@integer.net

Notes Regarding Non-GAAP Financial Information
In addition to our results reported in accordance with generally accepted accounting principles (“GAAP”), we provide  adjusted income, adjusted diluted EPS, earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA, adjusted EBITDA margin, and organic growth rates, all from continuing operations.  Adjusted income and adjusted diluted EPS from continuing operations consist of GAAP amounts adjusted for the following to the extent occurring during the period: (i) acquisition and integration related expenses, including fair value adjustments to contingent consideration resulting from acquisitions, (ii) amortization of intangible assets, (iii) facility consolidation, optimization, manufacturing transfer and system integration charges, (iv) asset write-down and disposition charges, (v) charges in connection with corporate realignments or a reduction in force, (vi) certain legal expenses, charges and gains, (vii) unusual or infrequently occurring items, (viii) gain (loss) on equity investments, (ix) extinguishment of debt charges, (x) the income tax provision (benefit) related to these adjustments and (xi) certain tax items that are outside the normal provision for the period.  Adjusted diluted EPS from continuing operations is calculated by dividing adjusted income from continuing operations by diluted weighted average shares outstanding.  EBITDA from continuing operations is calculated by adding back interest expense, GAAP provision (benefit) for income taxes, depreciation and amortization expense, to income from continuing operations, which is the most directly comparable GAAP measure.  Adjusted EBITDA from continuing operations consists of EBITDA from continuing operations plus GAAP stock-based compensation and the same adjustments as listed above except for items (ii), (ix), (x) and (xi).

Adjusted EBITDA margin is adjusted EBITDA as a percentage of sales, all from continuing operations. Organic sales growth is reported sales growth adjusted for the impact of foreign currency and the contribution of acquisitions.  To calculate the impact of foreign currency on sales growth rates, we convert any sale made in a foreign currency by converting current period sales into prior period sales using the exchange rate in effect at that time and then compare the two, negating any effect foreign currency had on our transactional revenue, and exclude the amount of sales acquired/divested during the period from the current/previous period amounts, respectively.

Organic growth rates for adjusted EBITDA from continuing operations, adjusted income from continuing operations and adjusted diluted EPS from continuing operations exclude the impact of foreign currency exchange gains and losses included in other (income) loss, net, and the contribution of acquisitions. Contribution of acquisitions represents results, based on the growth rate being presented, attributable to acquired entities for the first four full quarters plus any partial period since the entities' acquisition date.  After the completion of four full fiscal quarters, results of the acquired entity are treated as organic for current and comparable historical periods.

We believe that the presentation of adjusted income, adjusted diluted EPS, EBITDA, adjusted EBITDA, adjusted EBITDA margin, and organic growth rates, all from continuing operations, provides important supplemental information to management and investors seeking to understand the financial and business trends relating to our financial condition and results of operations.  In addition to the performance measures identified above, we believe that leverage ratio provides a meaningful measure of liquidity and a useful basis for assessing our ability to fund our activities, including the financing of acquisitions and debt repayments.  We calculate leverage ratio as total principal amount of debt outstanding less cash and cash equivalents divided by trailing 4 quarters adjusted EBITDA.

Forward-Looking Statements
Some of the statements contained in this press release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to the impact of the COVID-19 global pandemic; future sales, expenses, and profitability; future development and expected growth of our business and industry; our ability to execute our business model and our business strategy; having available sufficient cash and borrowing capacity to meet working capital, debt service and capital expenditure requirements for the next twelve months; and projected capital spending.  You can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or “variations” or the negative of these terms or other comparable terminology. These statements are only predictions.  Actual events or results may differ materially from those stated or implied by these forward-looking statements. In evaluating these statements and our prospects, you should carefully consider the factors set forth below.

Although it is not possible to create a comprehensive list of all factors that may cause actual results to differ from the results expressed or implied by our forward-looking statements or that may affect our future results, some of these factors include the following: the duration, scope and impact of the COVID-19 pandemic, including government, social, business and other actions taken in response to the pandemic and the effect of the pandemic on our associates, suppliers and customers as well as the global economy; our dependence upon a limited number of customers; pricing pressures that we face from customers; our ability to respond to changes in technology; the intense competition we face and our ability to successfully market our products; our ability to develop new products and expand into new geographic and product markets; our reliance on third party suppliers for raw materials, key products and subcomponents; the potential for harm to our reputation caused by quality problems related to our products; regulatory issues resulting from products complaints, recalls or regulatory audits; the potential of becoming subject to product liability claims; our ability to protect our intellectual property and proprietary rights; our significant amount of outstanding indebtedness and our ability to remain in compliance with financial and other covenants under our senior secured credit facilities; our ability to integrate acquisitions and operate acquired businesses in accordance with expectations; our dependence upon our senior management team and technical personnel; our ability to realize the benefits from cost savings and consolidation initiatives; interruptions in our manufacturing operations; our ability to comply with environmental regulations; our complex international tax profile; our dependence upon our information technology systems and our ability to prevent cyber-attacks and other failures; market, financial and other risks related to our international operations and sales; global economic factors, including currency exchange rates and interest rates; the fact that the healthcare industry is highly regulated and subject to various regulatory changes; the dependence of our energy market-related revenues on the conditions in the oil and natural gas industry; and other risks and uncertainties that arise from time to time and are described in Item 1A “Risk Factors” of our Annual Report on Form 10-K and in our other periodic filings with the SEC. Except as may be required by law, we assume no obligation to update forward-looking statements in this press release whether to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial conditions or prospects, or otherwise.

 
Condensed Consolidated Statements of Operations - Unaudited
(in thousands except per share data)      
  Three Months Ended
  April 3,
2020
  March 29,
2019
Sales $ 328,426     $ 314,676  
Cost of sales 231,724     226,066  
Gross profit 96,702     88,610  
Operating expenses:      
Selling, general and administrative expenses (SG&A) 36,457     34,956  
Research, development and engineering costs (RD&E) 13,241     11,595  
Other operating expenses (OOE) 2,928     2,890  
Total operating expenses 52,626     49,441  
Operating income 44,076     39,169  
Interest expense 10,361     13,830  
(Gain) loss on equity investments, net (1,925 )   41  
Other (income) loss, net (999 )   166  
Income from continuing operations before taxes 36,639     25,132  
Provision for income taxes 5,539     3,766  
Income from continuing operations $ 31,100     $ 21,366  
       
Discontinued operations:      
Income from discontinued operations before taxes     386  
Provision for income taxes     83  
Income from discontinued operations $     $ 303  
       
Net income $ 31,100     $ 21,669  
       
Basic earnings per share:      
Income from continuing operations $ 0.95     $ 0.66  
Income from discontinued operations $     $ 0.01  
Basic earnings per share $ 0.95     $ 0.67  
       
Diluted earnings per share:      
Income from continuing operations $ 0.94     $ 0.65  
Income from discontinued operations $     $ 0.01  
Diluted earnings per share $ 0.94     $ 0.66  
       
Weighted average shares outstanding:      
Basic 32,807     32,536  
Diluted 33,117     32,980  


Condensed Consolidated Balance Sheets - Unaudited
(in thousands)
   
  April 3,
2020
  December 31,
2019
ASSETS      
Current assets:      
Cash and cash equivalents $ 37,259     $ 13,535  
Accounts receivable, net 199,785     191,985  
Inventories 170,298     167,256  
Contract assets 38,882     24,767  
Prepaid expenses and other current assets 14,598     17,852  
Total current assets 460,822     415,395  
Property, plant and equipment, net 246,378     246,185  
Goodwill 839,395     839,617  
Other intangible assets, net 766,535     775,784  
Deferred income taxes 5,045     4,438  
Operating lease assets 49,039     42,379  
Other long-term assets 30,813     29,295  
Total assets $ 2,398,027     $ 2,353,093  
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Current liabilities:      
Current portion of long-term debt $ 37,500     $ 37,500  
Accounts payable 79,138     64,975  
Income taxes payable 7,564     3,023  
Current portion of lease liabilities 7,951     7,507  
Accrued expenses and other current liabilities 53,976     66,073  
Total current liabilities 186,129     179,078  
Long-term debt 793,829     777,272  
Deferred income taxes 185,814     187,978  
Operating lease liabilities 42,482     37,114  
Other long-term liabilities 25,572     19,163  
Total liabilities 1,233,826     1,200,605  
Stockholders’ equity:      
Common stock 33     33  
Additional paid-in capital 694,746     701,018  
Treasury stock (1,263 )   (8,809 )
Retained earnings 471,358     440,258  
Accumulated other comprehensive income (loss) (673 )   19,988  
Total stockholders’ equity 1,164,201     1,152,488  
Total liabilities and stockholders’ equity $ 2,398,027     $ 2,353,093  

 

Condensed Consolidated Statements of Cash Flows (a) - Unaudited
(in thousands)
  Three Months Ended
  April 3,
  March 29,
  2020
  2019
Cash flows from operating activities:              
Net income $ 31,100     $ 21,669  
Adjustments to reconcile net income to net cash provided by operating activities:              
Depreciation and amortization   19,494       19,658  
Debt related charges included in interest expense   1,023       1,774  
Stock-based compensation   1,738       2,713  
Non-cash charges related to customer bankruptcy   628        
Non-cash lease expense   1,930       1,864  
Non-cash (gain) loss on equity investments   (1,925 )     41  
Other non-cash gains   (1,085 )     (1,075 )
Deferred income taxes   61       96  
Changes in operating assets and liabilities, net of acquisition:              
Accounts receivable   (8,165 )     (30,924 )
Inventories   (4,365 )     8,612  
Prepaid expenses and other assets   (13,350 )     (14,266 )
Accounts payable   18,458       15,411  
Accrued expenses and other liabilities   (18,108 )     (15,894 )
Income taxes payable   4,963       1,555  
Net cash provided by operating activities   32,397       11,234  
Cash flows from investing activities:              
Acquisition of property, plant and equipment   (14,925 )     (7,447 )
Purchase of intangible asset   (3,500 )      
Proceeds from sale of property, plant and equipment   52       2  
Purchase of equity investments         (42 )
Acquisitions, net   (5,219 )      
Net cash used in investing activities   (23,592 )     (7,487 )
Cash flows from financing activities:              
Principal payments of long-term debt   (9,375 )     (30,375 )
Proceeds from senior secured revolving line of credit   25,000       15,000  
Proceeds from the exercise of stock options   2,201       1,338  
Tax withholdings related to net share settlements of restricted stock unit awards   (2,664 )     (2,123 )
Net cash provided by (used in) financing activities   15,162       (16,160 )
Effect of foreign currency exchange rates on cash and cash equivalents   (243 )     382  
Net increase (decrease) in cash and cash equivalents   23,724       (12,031 )
Cash and cash equivalents, beginning of period   13,535       25,569  
Cash and cash equivalents, end of period $ 37,259     $ 13,538  
               
(a)   Condensed Consolidated Statements of Cash Flows - Unaudited includes cash flows related to discontinued operations.
 
 

 

Reconciliations of Non-GAAP Measures from Continuing Operations

Table A: Income from Continuing Operations and Diluted EPS Reconciliations
(in thousands except per share amounts)

  Three Months Ended
  April 3, 2020   March 29, 2019
  Pre-Tax   Net of
Tax
  Per
Diluted
Share
  Pre-Tax   Net of
Tax
  Per
Diluted
Share
Income from continuing operations (GAAP) $ 36,639     $ 31,100     $ 0.94     $ 25,132     $ 21,366     $ 0.65  
Adjustments(a):                      
Amortization of intangibles 10,444     8,254     0.25     9,854     7,796     0.24  
Certain legal expenses (SG&A) 602     475     0.01     1,396     1,103     0.03  
Other operating expenses (OOE)(b) 2,928     2,301     0.07     2,890     2,217     0.07  
(Gain) loss on equity investments, net (1,925 )   (1,521 )   (0.05 )   41     32      
Loss on extinguishment of debt             412     326     0.01  
Customer bankruptcy(c) 854     675     0.02              
Adjusted income from continuing operations (Non-GAAP) $ 49,542     $ 41,284     $ 1.25     $ 39,725     $ 32,840     $ 1.00  
                       
Diluted weighted average shares for adjusted EPS     33,117             32,980      

(a) The difference between pre-tax and net of tax amounts is the estimated tax impact related to the respective adjustment.  Net of tax amounts are computed using a 21% U.S. tax rate, and the statutory tax rates applicable in foreign tax jurisdictions, as adjusted for the existence of net operating losses (“NOLs”).  Expenses that are not deductible for tax purposes (i.e. permanent tax differences) are added back at 100%.

(b) Other operating expenses includes acquisition and integration related expenses, facility consolidation, optimization, manufacturing transfer and system integration charges, asset write-down and disposition charges, charges in connection with corporate realignments or a reduction in force, unusual or infrequently occurring items.

(c) In November 2019, one of our customers, Nuvectra Corporation, filed a voluntary Chapter 11 bankruptcy petition (the “Customer Bankruptcy”).  During the first quarter of 2020, we incurred costs and recorded charges associated with the Customer Bankruptcy, primarily consisting of an $0.8 million charge related to inventory recorded in cost of sales in our condensed consolidated statement of operations.

Please see “Notes Regarding Non-GAAP Financial Information” for additional information regarding our use of non-GAAP financial measures.

   
Table B: EBITDA Reconciliations  
(in thousands)  
  Three Months Ended
  April 3,
2020
  March 29,
2019
Income from continuing operations (GAAP) $ 31,100     $ 21,366  
       
Interest expense 10,361     13,830  
Provision for income taxes 5,539     3,766  
Depreciation 9,050     9,804  
Amortization of intangibles (excluding OOE) 10,444     9,854  
EBITDA from continuing operations (Non-GAAP) 66,494     58,620  
Stock-based compensation (excluding OOE) 1,738     2,713  
Certain legal expenses 602     1,396  
Other operating expenses (OOE) 2,928     2,890  
(Gain) loss on equity investments, net (1,925 )   41  
Customer bankruptcy 854      
Adjusted EBITDA from continuing operations (Non-GAAP) $ 70,691     $ 65,660  
       
Total Sales $ 328,426     $ 314,676  
       
Adjusted EBITDA margin 21.5 %   20.9 %


 
Table C: Organic Sales from Continuing Operations Growth Rate Reconciliation (% Change)
 
  GAAP
Reported
Growth
  Impact of
Acquisitions
and Foreign
Currency(a)
  Non-GAAP
Organic
Growth
QTD Change (1Q 2020 vs. 1Q 2019)          
Medical Sales          
Cardio & Vascular 17.5%   (0.7)%   16.8%
Cardiac & Neuromodulation (7.8)%     (7.8)%
Advanced Surgical, Orthopedics & Portable Medical (1.1)%   —%   (1.1)%
Total Medical Sales 5.7 %   (0.3 )%   5.4 %
Non-Medical Sales (25.3 )%     (25.3 )%
Total Sales 4.4 %   (0.4 )%   4.0 %

(a) First quarter 2020 sales have been adjusted to exclude the contribution of business acquisitions and foreign currency exchange rate fluctuations.


 
Table D: Non-GAAP Organic Growth Rate Reconciliation (% Change)
 
  GAAP
Reported
Growth(a)
  Impact of
Non-GAAP
Adjustments(b)
  Impact of
Acquisitions
and Foreign
Currency(c)
  Non-GAAP
Organic
Growth
QTD Change (1Q 2020 vs. 1Q 2019)              
EBITDA from continuing operations 13.4%   (5.7)%   (2.2)%   5.5%
Income from continuing operations 45.6%   (19.9)%   (2.4)%   23.3%
Diluted EPS from continuing operations 44.6%   (19.6)%   (2.0)%   23.0%

(a) EBITDA from continuing operations is a non-GAAP financial measure.  See Table B for a reconciliation to the most comparable GAAP measure.

(b) Represents the impact to our growth rate from our Non-GAAP adjustments. See Tables A and B for further detail on these items.

(c) Represents the impact to our growth rate due to changes in foreign currency exchange rates realized in income and reported in other (income) loss, net in the consolidated statements of operations, and the adjustment to exclude the contribution of acquisitions.

ITGR LOGO (2019-09-25) intgr_ful_r_4cp_hor.png

Source: Integer Holdings Corporation