Integra LifeSciences Q3 Report – Revenue Down, Earnings Decline

By Bobby Samwell • Monday, November 04 10:18 • Permanent Link

Integra LifeSciences Holdings Corporation (NASDAQ: IART) has reported its financial results for the third quarter ending September 30, 2024. Here are the key highlights and figures from the report:

Third quarter revenues were $380.8 million, showing a decrease of 0.4% on a reported basis and 8.6% on an organic basis compared to the prior year.
GAAP earnings per diluted share for the third quarter of 2024 were $(0.14), compared to $0.24 in the prior year. Adjusted earnings per diluted share were $0.41, down from $0.76 in the prior year.
The company's GAAP gross margin was 52.6%, compared to 57.1% in the third quarter of 2023. Adjusted gross margin was 63.0%, down from 64.6% in the prior year.
Adjusted EBITDA for the third quarter of 2024 was $61.8 million, or 16.2% of revenue, compared to $88.1 million, or 23.0% of revenue, in the prior year.
Total balance sheet debt and net debt at the end of the quarter were $1.81 billion and $1.54 billion, respectively, and the consolidated total leverage ratio was 4.0x.
The company generated cash flow from operations of $22.5 million in the quarter, and as of quarter end, it had total liquidity of approximately $1.18 billion.
For the fourth quarter of 2024, the company expects reported revenues in the range of $441 million to $451 million, representing reported growth of 11.1% to 13.6% and organic growth of 2.0% to 4.5%. It also expects adjusted EPS in a range of $0.81 to $0.89.
For the full year 2024, the company is updating its revenue guidance to a range of $1.609 billion to $1.619 billion, representing reported growth of 4.4% to 5.0% and organic growth of -1.7% to -1.0%. The adjusted EPS range is $2.41 to $2.49.
The company announced Mojdeh Poul as Integra’s next president and chief executive officer.

In terms of segment performance: Codman Specialty Surgical (~70% of revenues) reported total revenues of $270.8 million, representing reported growth of 1.0% and an organic decline of 10.7% compared to the third quarter of 2023. Tissue Technologies (~30% of revenues) reported total revenues of $110.1 million, representing a reported decline of 3.6% and organic decline of 3.7% compared to the third quarter of 2023.

The company provided updates on its CEO transition, strategy advancement, and balance sheet, cash flow, and capital allocation.

Today the company's shares have moved 25.0% to a price of $24.1. For the full picture, make sure to review Integra LifeSciences's 8-K report.

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