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2Q17 Earnings Conference Call
July 27, 2017
Presentation of Financial Information & Forward Looking Statements
Historical financial and operating data in this presentation reflect the consolidated results of Integer for the periods indicated. This presentation includes financial information prepared in accordance with accounting principles generally accepted in the United States, or GAAP, as well as other financial measures referred to as non-GAAP. The non-GAAP financial measures in this presentation, which include Adjusted Net Income, Adjusted Diluted EPS, Earnings Before Interest Taxes Depreciation and Amortization (EBITDA), Adjusted EBITDA, and organic growth rates should be considered in addition to, but not as substitutes for, the information prepared in accordance with GAAP. For reconciliations of these non-GAAP financial measures to the most comparable GAAP measures, please refer to the appendix to this presentation and the earnings release associated with this quarterly period which can be found in the investor relations section of our corporate website (investor.integer.net).
Statements made in this presentation whether written or oral may be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of Securities Exchange Act of 1934, as amended, and involve a number of risks and uncertainties. These statements can be identified 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 based on the company’s current expectations and speak only as of July 27, 2017. The Company’s actual results could differ materially from those stated or implied by such forward-looking statements. The Company assumes no obligation to update forward-looking information, including information in this presentation, to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial conditions or prospects.
ITGR: 2Q17 Earnings Conference Call / July 27, 2017 / Page 2
Agenda
• Opening Comments
• Financial Results
• Product Line Review
• Vision & Strategy
• Question & Answer Period
ITGR: 2Q17 Earnings Conference Call / July 27, 2017 / Page 3
Opening Comments
Quarterly Results Reflect Continued Progress
ITGR: 2Q17 Earnings Conference Call / July 27, 2017 / Page 5
“Another quarter of
solid sales growth
gives us confidence
that we are back on
an annual growth
trajectory”
Second Quarter Highlights • 2Q17 organic sales up 4.5% … Trailing 4 quarters up 2% • Adjusted Results
‒ EBITDA increased 9% organically
‒ Net Income increased 34% organically
• Strong Cash Flow and Debt Repayment
Full Year Outlook • Increasing low end of Sales guidance • Adjusted EPS outlook from business operations unchanged,
updating for foreign currency losses • Approximately $150 million of Cash Flow from Operations
4Q15 4Q16 1Q17 2Q17 4Q17
Sales Recovery – Growth in 2017
ITGR: 2Q17 Earnings Conference Call / July 27, 2017 / Page 6
[1% to 3%]
(2)%
(4)%
2%
Org
anic
Gro
wth
Sales – Trailing 4 Quarters
Sales trajectory continues to improve
Outlook Trailing 4-quarter Actuals
(5)%
5%
0%
(1)%
Improving Sales Trend Across All Product Lines
ITGR: 2Q17 Earnings Conference Call / July 27, 2017 / Page 7
0%
Sales - Trailing 4-quarter Medical Segment Non-Medical Segment
0%
• Sales recovery from both share gain and market volume
• 2H17 outlook positive … challenging 4Q year over year comparison
10%
(10)%
10%
(35)% (30)%
(22)%
1%
Trailing 4-quarter Actuals
4Q16 1Q17 2Q17
Cardio & Vascular
Adv. Surgical, Ortho & Portable Medical
Cardiac & Neuro
Trailing 4-quarter Actuals
4Q16 1Q17 2Q17
(6)%
(1)% (0)%
(5)%
(5)%
(2)%
7%
2%
5%
Financial Results
$18 $20
$4 $69 $70 $6
2Q17 Adjusted Financial Results(1)
ITGR: 2Q17 Earnings Conference Call / July 27, 2017 / Page 9
($ in millions, except per share amounts)
(1) Refer to the appendix of this presentation for a reconciliation of Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, and organic growth rates to the most directly comparable GAAP measure (2) Organic growth for Sales excludes the impact of foreign exchange (3) Organic growth for Adjusted EBITDA and Adjusted Net Income exclude the impact of foreign currency gain (loss) reported in other (income) loss, net
Sales Adjusted EBITDA Adjusted Net Income
2Q16 2Q17 2Q16 2Q17 2Q16 2Q17
4.5% organic(2)
$24
Adj EPS $0.56 $0.62
% Growth 4.1% reported
9% organic(3)
2% reported 34% organic(3)
13% reported
$348
$363
$364 $76
Foreign currency impact on reported GAAP and Non-GAAP numbers
As reported GAAP and Non-GAAP numbers
Reported
Reported Reported Reported
Reported
Reported
FX Adjusted
FX Adjusted
FX Adjusted
FX
FX
-50%-30%-10%10%30%50%
-20%
-10%
0%
10%
-10%
-5%
0%
5%
10%
15%
-20%
-10%
0%
10%
-15%
-10%
-5%
0%
5%
10%
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
YOY Sales Improvement Continues in 2Q17
ITGR: 2Q17 Earnings Conference Call / July 27, 2017 / Page 10
(7.6)%
(0.5)% (0.0)%
4.8% 4.5%
0%
Integer(1) 0%
0%
Advanced Surgical, Orthopedics & Portable Medical
0%
Cardiac & Neuromodulation
Non-Medical (Electrochem)
(1) Excludes impact from changes in foreign currency exchange rates
Qua
rterly
YO
Y %
Cha
nge
– as
Rep
orte
d
Qua
rterly
YO
Y %
Org
anic
Cha
nge
0%
Cardio & Vascular
2Q16 3Q16 4Q16 1Q17 2Q17 1Q16
(7.5)%
Strong Organic Growth in Adjusted EBITDA & Adjusted EPS
ITGR: 2Q17 Earnings Conference Call / July 27, 2017 / Page 11
(1) Organic amounts exclude the YOY impact of foreign currency gain (loss) reported in other (income) loss, net
Adjusted EBITDA
($ in millions except per share amounts)
Adjusted EPS
$0.56
$0.18 $(0.12)
$0.62
2Q16 2Q17
$17.5 Adjusted
Net Income
$6.2 $(4.0) $19.7
Organic(2) FX
2Q16 2Q17
$69 $70 $(5.0) $6.5
Organic(2) FX
$11
$(8)
$21 $22 $26 $28
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
$30
$4
$38 $34
$39 $39
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
1Q17 2Q17
$12 $30 $38 $120
$230
$913
$360
2017 2018 2019 2020 2021 2022 2023
Debt Payments
Continued Strong & Steady Cash Flow Generation
ITGR: 2Q17 Earnings Conference Call / July 27, 2017 / Page 12
($ in millions)
(1) Free Cash Flow defined as Cash from Operations less Capital Expenditures
($ in millions) Cash Flow From Operations Free Cash Flow
($ in millions)
Future Mandatory Debt Repayment Schedule ($ in millions)
$8
$31
$40
Accelerated Repayment Required Repayment
$29
$18
$11
• Generating cash flow well in excess of current debt obligations
• Focused on accelerating debt repayment to reduce leverage
• Repaid $40M of debt in 2Q17 – $69M repaid YTD
• Total payments of $113M since acquisition
• Near-term mandatory debt repayments very manageable
• No significant maturities until 2020
• 33% fixed rate
• Well within covenant compliance requirements
2016 2017 2016 2017 2016 2017
Revised Full-Year 2017 Outlook
ITGR: 2Q17 Earnings Conference Call / July 27, 2017 / Page 13
Sales Adjusted EPS Cash Flow from Operations
$1,386
$2.68
$1,400 - $1,430
$2.55 - $2.95 $106
~$150
Outlook Outlook
($ in millions except per share amounts)
1% - 3% organic(1) % Growth 1% - 3% reported
7% - 22% organic(2)
(5)% - 10% reported 42% reported
Outlook
(1) Organic growth for Sales excludes the impact of foreign currency exchange rates (2) Organic growth Adjusted EPS excludes the impact of foreign currency gain (loss) reported in other (income) loss, net for both years presented
Product Line Review
Trailing 4-Qtr Sales YoY %
-20%
-15%
-10%
-5%
0%
5%
10%
15%
Advanced Surgical, Orthopedics & Portable Medical
ITGR: 2Q17 Earnings Conference Call / July 27, 2017 / Page 15
Providing a wide range of technologies and solutions to the Advanced Surgical and Orthopedic markets
0%
Quarterly YOY Growth 7%
(5)% (3)% (3)%
% C
hang
e
Orthopedic Implants & Instruments
Biopsy & Drug Delivery
Portable Medical (Power Solutions)
Laparoscopy & General Surgery
Arthroscopy Products (1)%
2Q16 3Q16 4Q16 1Q17 2Q17 1Q16
(12)%
• 2Q17 Sales slightly down YOY, primarily driven by timing of customer demand, full year outlook unchanged
• Trailing 4-quarter Sales stabilizing now that facility transfers are complete
• Expect limited 2H17 Sales growth with some new product launches
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
Trailing 4-Quarter Sales
$421 $418 $415 $421 $421 $427
(6)% (1)% (0)%
Offering a full-range of products and services for catheter-based interventional vascular devices and a suite of supply chain solutions to support the
development and manufacturing of complex components, sub-assemblies and finished devices
-10%
-5%
0%
5%
10%
15%
Cardio & Vascular
ITGR: 2Q17 Earnings Conference Call / July 27, 2017 / Page 16
Steerable Sheaths Catheters & Sheaths Guidewires, Stylets & Accessories
Introducers
0%
10%
0% 2%
9%
Quarterly YOY Growth
% C
hang
e
8%
2Q16 3Q16 4Q16 1Q17 2Q17 1Q16
(2)%
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
Trailing 4-Quarter Sales
$478 $480 $491 $502 $512
$478
• Another solid quarter of YOY growth in 2Q17 driven by strong demand for Integer-owned product lines and increasing demand for contract manufactured products
• Trailing 4-quarter Sales demonstrating continued growth driven by strength in most recent quarters
• 2H17 growth remains positive at a slower pace versus harder comparisons from 2H16
2% 5% 7% Trailing 4-Qtr Sales YoY %
Providing technology solutions for the active implantable medical device industry by partnering with customers to bring high-quality products to
established and emerging markets – from initial concept through to high-volume manufacturing
-20%
-15%
-10%
-5%
0%
5%
10%
15%
Cardiac & Neuromodulation
ITGR: 2Q17 Earnings Conference Call / July 27, 2017 / Page 17
Pulse Generator Components &
Assemblies
Leads & Lead Components, Adaptors & Assemblies
Pulse Generators & External Solutions (Programmers,
Chargers, Patient Devices)
Quarterly YOY Growth(1)
0%
(3)%
(13)%
3%
(5)%
(1) Excludes the results of Nuvectra Corporation prior to its spin-off on March 14, 2016
% C
hang
e
(1)%
2Q16 3Q16 4Q16 1Q17 2Q17 1Q16
(4)%
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
Trailing 4-Quarter Sales
• 2Q17 shows continued stabilization YOY from recovery in CRM and growth in neuromodulation
• Trailing 4-quarter Sales also stabilizing after 2016 declines
• Second half of year will be a more challenging comparable as 4Q16 was the strongest quarter of 2016
$441 $444 $438 $435 $434 $458
(5)% (5)% (2)% Trailing 4-Qtr Sales YoY %
-50%
-30%
-10%
10%
30%
50%
70%
Electrochem
ITGR: 2Q17 Earnings Conference Call / July 27, 2017 / Page 18
Enhancing lives worldwide by providing superior power solutions that enable the success and advancement of our customers’ critical applications
Battery Packs 0%
(3)%
Battery Chargers Battery Cells
(41)% (26)%
(14)%
Quarterly YOY Growth
% C
hang
e
60%
(34)%
2Q16 3Q16 4Q16 1Q17 2Q17 1Q16
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
Trailing 4-Quarter Sales
$47 $44 $42 $41
$47 $53
• 2Q17 Sales growth driven by strong momentum from increased North American customer activity and market share gains.
• North American market driven by energy market recovery and improved efficiencies utilizing Electrochem technology
• Continue to aggressively pursue new and expanded market opportunities – gaining traction with new and existing customers
• Trailing 4-quarter Sales turned positive with strong 2Q performance
• Positive outlook for 2H17 (30)% (23)% 1% Trailing 4-Qtr Sales YoY %
Vision & Strategy
Our Vision and Strategy
Executing our Strategy … to Realize our Vision • Serving the needs of our customers as their preferred
global device outsource partner
• Leveraging our global presence and breadth of capabilities to provide high quality manufactured products – from components to finished devices
• Delivering innovative design, process solutions and services
And to Deliver • Sales Growth … above market
• EBITDA and Cash Flow Growth … accelerate
• Earn a Valuation Premium
ITGR: 2Q17 Earnings Conference Call / July 27, 2017 / Page 20
“Our vision is to
enhance the lives of
patients worldwide
by being our
customers’ partner of
choice for innovative
technologies and
services.”
Question & Answer Period
APPENDIX
$114 $122 $129 $126 $125 $132
$107 $107 $108 $116 $104 $106
$98 $109 $100 $107 $105 $109
$12 $10 $9 $11 $11
$16
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
Historical Financial Results
ITGR: 2Q17 Earnings Conference Call / July 27, 2017 / Page 23
Sales(1) Adjusted EPS(1)(2)(4)
$345 $331
$348 $347 $360
Non-Medical
Cardiac & Neuro
Cardio & Vascular
Adv. Surgical, Ortho & Portable Medical
(1) Sales and Adjusted EPS information provided on a comparable basis. Comparable basis amounts for 2016 exclude the results of Nuvectra Corporation (“Nuvectra”) prior to its spin-off on March 14, 2016. Refer to the investor relations section of our website for historical pro forma information that contains a reconciliation of 1Q16 comparable amounts to as reported amounts.
(2) Refer to the appendix of this presentation for a reconciliation of Adjusted EPS to the most directly comparable GAAP measure (3) Excludes impact of foreign currency gain (loss) reported in other (income) loss, net (4) The quarterly and annual EPS numbers are calculated independently and may not sum to the total
$( in millions, except per share amounts)
$363
Impact of foreign currency gain (loss) reported in other (income) loss, net
Adjusted EPS, as reported
Organic Adjusted
EPS(3)
$0.42 $0.56
$0.83 $0.87
$0.41 0.62
$(0.06)
$0.02
$(0.08)
$0.03
$0.14
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
$0.44 $0.36 $0.58 $0.83 $0.79 $0.76
Working Capital
ITGR: 2Q17 Earnings Conference Call / July 27, 2017 / Page 24
Working Capital $( in millions)
(1) Inventory Turns calculated as “COGS divided by quarterly Average Inventory multiplied by 4” to reach an annualized number
$318 $317 $325 $332 $325 $328
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
Inventory $267 $276 $262 $225 $231 $236
Inventory Turns(1) 3.7 3.7 3.7 4.4 4.5 4.5
Capital Expenditures $19 $12 $17 $11 $12 $10
2Q17 Slides -->
Rolling Revenue
Quarterly
Amounts1Q152Q153Q154Q151Q162Q163Q164Q161Q172Q173Q17
Amy Wakeham: Amy Wakeham:RF64Q17
Amy Wakeham: Amy Wakeham:RF64Q154Q161Q172Q174Q17
Cardio and Vascular$ 116$ 122$ 127$ 115$ 114$ 122$ 129$ 126$ 125$ 132$ 133$ 1233%
Cardiac/Neuromodulation$ 112$ 123$ 105$ 121$ 107$ 107$ 108$ 116$ 104$ 106$ 113$ 108-2%-4%-1%2%0%
Advanced Surgical, Orthopedics & Portable Medical$ 112$ 115$ 104$ 110$ 98$ 109$ 100$ 107$ 105$ 109$ 116$ 111
Non-Medical$ 18$ 17$ 12$ 13$ 12$ 10$ 9$ 11$ 11$ 16$ 14$ 14
$ 358$ 377$ 348$ 360$ 331$ 348$ 347$ 360$ 345$ 363$ 375$ 356
Rolling 4-Quarter
Amounts4Q151Q162Q163Q164Q161Q172Q173Q17
Amy Wakeham: Amy Wakeham:RF6
Amy Wakeham: Amy Wakeham:RF6
Amy Wakeham: Amy Wakeham:RF64Q17
Cardio and Vascular$ 481$ 478$ 478$ 480$ 491$ 502$ 512$ 515$ 1,390
Cardiac/Neuromodulation$ 462$ 458$ 441$ 444$ 438$ 435$ 434$ 43940
Advanced Surgical, Orthopedics & Portable Medical$ 441$ 427$ 421$ 418$ 415$ 421$ 421$ 436
Non-Medical$ 59$ 53$ 47$ 44$ 42$ 41$ 47$ 52
$ 1,443$ 1,416$ 1,387$ 1,386$ 1,386$ 1,400$ 1,414$ 1,443$ 1,430
-4%-1%2%4%
Rolling 4-Quarter Revenue
Cardio and Vascular
4Q151Q162Q163Q164Q161Q172Q173Q174Q17480.70099999999996477.90799999999996478.18199999999996480.298490.85700000000003502.29500000000002512.27299999999991515.425999999999931390Cardiac/Neuromodulation
$1,430
4Q151Q162Q163Q164Q161Q172Q173Q174Q17461.78899999999999457.53000000000003441.16899999999998443.86799999999999438.36099999999999434.82099999999997434.08699999999999439.3400000000000340Advanced Surgical, Orthopedics & Portable Medical
4Q151Q162Q163Q164Q161Q172Q173Q174Q17440.899427.17999999999995421.45800000000003417.89700000000005414.70100000000002421.48500000000001420.654436.05100000000004Non-Medical
4Q151Q162Q163Q164Q161Q172Q173Q174Q1759.44899999999999853.41100000000000146.68500000000000243.57800000000000341.67899999999999541.35299999999999447.27700000000000152.007000000000005
4Q154Q161Q172Q174Q170.034Q154Q161Q172Q174Q17-0.02-0.04-1.1352168634964268E-21.9313236669852286E-20
Advanced Surgical, Orthopedics & Portable Medical1Q162Q163Q164Q161Q172Q17427.17999999999995421.45800000000003417.89700000000005414.70100000000002421.48500000000001420.654
Cardio and Vascular1Q162Q163Q164Q161Q172Q17477.90799999999996478.18199999999996480.298490.85700000000003502.29500000000002512.27299999999991
Cardiac/Neuromodulation1Q162Q163Q164Q161Q172Q17457.53000000000003441.16899999999998443.86799999999999438.36099999999999434.82099999999997434.08699999999999
Non-Medical1Q162Q163Q164Q161Q172Q1753.41100000000000146.68500000000000243.57800000000000341.67899999999999541.35299999999999447.277000000000001
Key Financial Results
Key Financial Results
2Q161Q172Q17FY15FY16
Sales$ 348$ 347$ 363$ 1,443$ 1,3864.1%
Gross Margin27.6%26.6%27.4%26.4%27.2%(0.54)
Operating Expenses$ 67$ 64$ 60$ 302$ 270-10.8%-7.3%
% of Sales19.2%18.5%16.4%20.9%19.5%
GAAP Net Income (Loss)$ (1)$ (4)$ 3$ (39)$ 6
Adjusted Net Income$ 18$ 14$ 20$ 98$ 8412.5%
EBITDA$ 51$ 50$ 55$ 161$ 203
Adjusted EBITDA$ 69$ 65$ 70$ 304$ 2802.1%
% of Sales19.8%18.8%19.4%21.1%20.2%
GAAP Diluted EPS$ (0.03)$ (0.11)$ 0.09$ (1.27)$ 0.19
Adjusted Diluted EPS$ 0.56$ 0.43$ 0.62$ 3.11$ 2.6810.7%44.2%
Cash Flow from Operations$ 39--$ 106
2Q162Q17
Revenue$ 348$ 3634.1%
Adjusted EBITDA$ 69$ 702.1%
Adjusted Net Income$ 18$ 2012.5%
2Q16Revenue348.382000000000012Q17Revenue362.7
2Q16Adjusted EBITDA68.9270000000000072Q17Adjusted EBITDA70.403000000000006
2Q16Adjusted Net Income17.5450000000000022Q17Adjusted Net Income19.742999999999999
Revenue
Revenue Details1Q174Q163Q16
1Q152Q153Q154Q151Q162Q163Q164Q161Q172Q173Q174Q17YOY%QOQ%LTMYOY%QOQ%YTD%YOY%QOQ%YTD%
Cardio and Vascular$ 116$ 122$ 127$ 115$ 114$ 122$ 129$ 126$ 125$ 132$ 133$ 12310%-0%5%9.2%-2.9%2.1%1.7%5.8%-0.1%
Cardiac/Neuromodulation$ 112$ 123$ 105$ 121$ 107$ 107$ 108$ 116$ 104$ 106$ 113$ 108-3%-10%-5%-4.5%7.2%-5.1%2.6%1.1%-5.3%
Advanced Surgical, Orthopedics & Portable Medical$ 112$ 116$ 104$ 112$ 98$ 109$ 100$ 107$ 105$ 109$ 116$ 1117%-1%-2%-4.3%6.5%-6.5%-3.6%-8.4%-7.2%
Non-Medical$ 17$ 16$ 12$ 13$ 12$ 10$ 9$ 11$ 11$ 16$ 14$ 14-3%0%-22%-12.2%27.6%-28.7%-27.4%-9.7%-33.4%
$ 358$ 377$ 349$ 361$ 331$ 348$ 347$ 360$ 345$ 363$ 375$ 3564%-4%-1%-0.6%3.8%-4.1%-0.6%-0.5%-5.3%
Integer-7.5%-7.6%-0.6%-0.4%4.8%
Amy Wakeham: Amy Wakeham:organic growth4.5%
Amy Wakeham: Amy Wakeham:Organic growth8%-1%
C&V-2%0%2%9%10%8%2%-2%
CRMN-4%-13%3%-5%-3%-1%5%-7%
ASO-12%-5%-4%-4%7%-1%15%4%
ELECTROCHEM-33%-39%-27%-12%-3%60%53%22%
Integer
1Q162Q163Q164Q161Q172Q17
-7%-8%-1%-0%5%5%
1Q162Q163Q164Q161Q172Q17
C&V-2%0%2%9%10%8%
CRMN-4%-13%3%-5%-3%-1%
ASO-12%-5%-4%-4%7%-1%
ELECTROCHEM-33%-39%-27%-12%-3%60%
Cardio and Vascular
1Q162Q163Q164Q161Q172Q17113.67100000000001122.253129.34700000000001125.586125.10899999999999132.23099999999999Cardiac/Neuromodulation
1Q162Q163Q164Q161Q172Q17107.35299999999999106.919108.14700000000001115.94199999999999103.813106.185Advanced Surgical, Orthopedics & Portable Medical
1Q162Q163Q164Q161Q172Q1798.361999999999995109.39100000000001100.203106.745105.146108.56Non-Medical
1Q162Q163Q164Q161Q172Q1711.6720000000000019.81900000000000088.869999999999999211.31811.34615.743
1Q162Q163Q164Q161Q172Q17-7.4673808684708187E-2-7.5644292632672777E-2-6.405718604899204E-3-3.652959428889269E-34.8000000000000001E-24.4999999999999998E-2
C&V1Q162Q163Q164Q161Q172Q17-2.3983038760478703E-22.2426566653200586E-31.66329269161383E-29.1796637234067613E-20.100623729887130298.1617629015238849E-2
CRMN1Q162Q163Q164Q161Q172Q17-3.8156745751215963E-2-0.13271747507193942.5596977582260951E-2-4.5343014394381174E-2-3.2975324397082451E-2-6.8650099608114053E-3
ASO1Q162Q163Q164Q161Q172Q17-0.12425733651490105-5.4206126549724315E-2-3.5664963616465276E-2-4.3032193455063462E-26.8969724080437639E-2-7.5966030112166729E-3
ELECTROCHEM1Q162Q163Q164Q161Q172Q17-0.3284268265558879-0.38520907670907634-0.27377123970736439-0.12185873875025538-2.7930089102124786E-20.60332009369589557
PL Revenue
Revenue Details1Q174Q163Q16
1Q152Q153Q154Q151Q162Q163Q164Q161Q17YOY%QOQ%LTMYOY%QOQ%YTD%YOY%QOQ%YTD%
Cardio and Vascular$ 116$ 122$ 127$ 115$ 114$ 122$ 129$ 126$ 12510%-0%5%9.2%-2.9%2.1%1.7%5.8%-0.1%
Cardiac/Neuromodulation$ 112$ 123$ 105$ 121$ 109$ 107$ 108$ 116$ 104-4%-10%-5%-4.5%7.2%-4.8%2.6%1.1%-4.9%
Advanced Surgical, Orthopedics & Portable Medical$ 112$ 116$ 104$ 112$ 98$ 110$ 100$ 107$ 1057%-2%-2%-4.3%6.6%-6.4%-3.6%-8.6%-7.2%
Non-Medical$ 17$ 16$ 12$ 13$ 12$ 10$ 9$ 11$ 11-3%0%-22%-12.3%27.3%-29.0%-27.3%-7.9%-33.7%
$ 358$ 377$ 349$ 361$ 332$ 348$ 347$ 360$ 3454%-4%-1%-0.6%3.8%-4.0%-0.6%-0.5%-5.2%
Integer-7%-8%-1%-0%5%
C&V-2%0%2%9%10%
CRMN-3%-13%3%-5%-4%
ASO-12%-5%-4%-4%7%
ELECTROCHEM-33%-40%-27%-12%-3%
Cardio and Vascular
1Q162Q163Q164Q161Q17113.671185105071122.253359585129129.346703008486125.585570224169125.108809338637Cardiac/Neuromodulation
1Q162Q163Q164Q161Q17108.533106.91896797919399108.146981976204115.941976250189103.813140284005Advanced Surgical, Orthopedics & Portable Medical
1Q162Q163Q164Q161Q1798.3309374606539109.56532849119201100.18804689810401106.757068819778105.14561129859Non-Medical
1Q162Q163Q164Q161Q1711.6720000000000019.64499527000000088.884881760000000711.30614017000000111.34579473
Cardio and Vascular1Q162Q163Q164Q161Q17113.671185105071122.253359585129129.346703008486125.585570224169125.108809338637
Cardiac/Neuromodulation1Q162Q163Q164Q161Q17108.533106.91896797919399108.146981976204115.941976250189103.813140284005
Advanced Surgical, Orthopedics & Portable Medical1Q162Q163Q164Q161Q1798.3309374606539109.56532849119201100.18804689810401106.757068819778105.14561129859
Non-Medical1Q162Q163Q164Q161Q1711.6720000000000019.64499527000000088.884881760000000711.30614017000000111.34579473
Adjusted EBITDA Walk
4Q151Q162Q163Q164Q161Q172Q17BaseFallRise
Adjusted EBITDA$ 79$ 65$ 69$ 75$ 71$ 64$ 70-2%2Q16$ - 0$ 69$ 68.927
Sales331348347360345363Operations$ 69$ - 0$ 6$ 6.452
% of Sales20%20%22%20%19%19%Unrealized FX$ 70$ 5$ - 0$ (4.976)
2Q17$ 70$ 70.4037%
Adjusted EBITDA
1Q162Q163Q164Q161Q172Q1765.3768.92700000000000775.01699999999999670.53499999999999764.25670.403000000000006
Base2Q16OperationsUnrealized FX2Q1768.92700000000000770.40300000000000670.403000000000006Fall2Q16OperationsUnrealized FX2Q17004.976Rise2Q16OperationsUnrealized FX2Q1768.9270000000000076.45199999999999820
Adjusted EPS Walk
Adjusted EPS
Historical Adjusted EPS
BaseFallRise1Q162Q163Q164Q161Q172Q17
2Q16$ - 0$ 0.56$ 0.56Reported$ 0.42$ 0.56$ 0.83$ 0.87$ 0.410.62
Operations$ 0.56$ - 0$ 0.20$ 0.20Unrealized FX-0.060.02000.030.14
Unrealized FX$ 0.62$ 0.14$ - 0$ (0.14)Reported table 20.360.560.830.870.410.62
2Q17$ 0.62$ 0.62Unrealized FX table 20.060.02000.030.14
Reported EPS Table 1Rerported EPS Table 2
Base2Q16OperationsUnrealized FX2Q170.560000000000000050.620.62Fall2Q16OperationsUnrealized FX2Q17000.14000000000000001Rise2Q16OperationsUnrealized FX2Q170.560000000000000050.199999999999999960
1Q162Q163Q164Q161Q172Q170.420.560000000000000050.830.870.410.62
Reported table 21Q162Q163Q164Q161Q172Q170.360.560000000000000050.830.870.410.62Unrealized FX table 21Q162Q163Q164Q161Q172Q170.060.02000.030.14000000000000001
Cash Flows
4Q151Q162Q163Q164Q161Q172Q174Q151Q162Q163Q164Q161Q172Q17
Cash Flow from Operations$ - 0$ 30$ 4$ 38$ 34$ 39$ 39Free Cash Flow$ - 0$ 11$ (8)$ 21$ 22$ 26$ 28
Free Cash Flow$ - 0$ 11$ (8)$ 21$ 22$ 26$ 28Capex$ 19$ 12$ 17$ 11$ 12$ 10
Cash Flow from Operations$ - 0$ 30$ 4$ 38$ 34$ 39$ 39
Cash Flow from Operations
2Q163Q164Q161Q173.895999999999999938.04500000000000233.73299999999999738.625Free Cash Flow
2Q163Q164Q161Q17-7.738000000000000421.47899999999999922.41626.297000000000001
Free Cash Flow
1Q162Q163Q164Q161Q172Q1711.09-7.738000000000000421.47899999999999922.41626.29700000000000128.43
Cash Flow from Operations
1Q162Q163Q164Q161Q172Q1729.8580000000000013.895999999999999938.04500000000000233.73299999999999738.62538.54
Debt
Debt Repayment Schedule
2H1620172018201920202021202220231Q162Q163Q164Q16FY161Q172Q17
Payment$ 15$ 12$ 30$ 38$ 120$ 230$ 913$ 360Req'd Debt Payments7.37.37.37.329.010.78.3
Add'l Payments2.0
Amy Wakeham: Amy Wakeham:borrowed and repaid in same quarter5.010.017.018.531.4
7.39.312.317.346.029.239.7
Payment
201720182019202020212022202311.718753038120230913360
Req'd Debt Payments1Q172Q1710.6518.266Add'l Payments1Q172Q1718.531.420999999999999
BS Metrics
4Q151Q162Q163Q164Q161Q172Q17
Free Cash Flow$11$11($8)$21$22$26$28
Days Sales Outstanding0505050525653
Inventory$252$267$276$262$225$231$236
Inventory Turns(1)4.53.73.73.74.44.54.5
Capital Expenditures$13$19$12$17$11$12$10
Days Payables Outstanding0313632273233
Sales359,634331,058348,382346,567359,591345,413362,719
COGS282,377240,770252,351248,658266,700254,187263,447
Accounts Receivable183,563192,121191,409204,626213,610212,607
EOP Net Inventory252,166267,380276,279262,232225,151231,292235,562
BOP Net Inventory252,166267,380267,380276,279276,279262,232262,232225,151231,292
Average Inventory259,773133,690271,830138,140269,256131,116243,692228,222233,427
Accounts Payable83,30699,13586,29077,89690,71395,123
Cash flow from operationsERROR:#DIV/0!29,8583,89638,04533,73338,62538,540
Capex18,76811,63416,56611,31712,32810,110
Guidance
Supplemental Financial Items Affecting Cash Flow
GAAPNon-GAAP(in millions, except effective tax rate):
As ReportedGrowthAdjusted BasisGrowth2017 Outlook2016 Actual201620172016201720162017
Revenue$1,390 to $1,4300% to 3%$1,390 to $1,4300% to 3%Capital expenditures$50 - $60$59Revenue$ 1,386$ 1,400Adjusted EPS$ 2.68$ 2.70Cash Flow From Operations$ 106150
Earnings per Diluted Share$1.03 to $1.43favorable$2.70 to $3.10 1% to 16%Depreciation and amortization$95 - $100$91$ 30$ 0.400
Cash Flow from Operations~$150~43%----Stock-based compensation~$13$8
Working capital decrease$10 - $20$29
Other operating expense$25 - $30$62
Adjusted effective tax rate~25%23%
Cash Taxes~$10~$7
Revenue20162017138614002016201730
Adjusted EPS201620172.682.7201620170.39999999999999991
Cash Flow From Operations20162017105.532150201620170
Appendix -->
Working Capital
4Q151Q162Q163Q164Q161Q172Q17FY15FY16
Current Assets$ 575$ 534$ 534$ 525$ 517$ 528$ 524$ 575$ 517
Current Liabilities$ 214$ 217$ 217$ 200$ 185$ 203$ 196$ 214$ 185
Working Capital$ 361$ 318$ 317$ 325$ 332$ 325$ 328$ 361$ 332
Current Ratio2.72.52.52.62.82.62.72.72.8
$ (29)
Working Capital
1Q162Q163Q164Q161Q172Q17317.89699999999993316.61099999999999325.15800000000002332.08699999999999325.005328.14399999999995
OOE
Three Months EndedTwelve Months EndedThree Months EndedYTDThree Months Ended
2Q162Q171/1/1612/30/16NOTES:1Q162Q163Q164Q16FY161Q172Q17
2014 Investments in Capacity and Capabilities$5.1$1.3$23.0$17.2Portable Medical and Vascular product line transfers2014 Investments in Capacity and Capabilities$4.2$5.1$4.5$3.3$17.2$1.6$1.3
Legacy Lake Region Medical Consolidation and Optimization$2.1$1.5$2.0$8.6Legacy Lake Region Medical Consolidation and Optimization$2.4$2.1$2.9$1.2$8.6$0.7$1.5
Acquisition and Integration Costs$7.8$3.0$33.5$28.3Lake Region Medical and CCC Medical DevicesAcquisition and Integration Costs$10.0$7.8$5.3$5.2$28.3$4.8$3.0
Asset Dispositions, Severance, and Other$0.3$1.1$6.6$6.9Asset Dispositions, Severance, and Other$4.5$0.3$0.3$1.9$6.9$4.6$1.1
Other consolidation and disposition initiatives$0.2$0.1$18.2-$1.1Other consolidation and disposition initiatives$0.1$0.2$0.3$0.1$0.7$0.1$0.1
TOTAL OOE$15.5$6.9$83.3$59.9TOTAL OOE$21.1$15.5$13.4$11.7$61.7$11.8$6.9
(1)Details of Other Operating Expenses (OOE) provided on a comparable basis. Comparable basis amounts for 2016 exclude the results of Nuvectra Corporation (“Nuvectra”) prior to its spin-off on March 14, 2016. Comparable basis amounts for 2015 exclude the results of Nuvectra and include the results of the former Lake Region Medical. Historical pro forma information, which was filed with the SEC on Form 8-K on February 29, 2016, contains a reconciliation of 2015 comparable amounts to as reported amounts.
Guidance-recon table
GAAPAdjusted Comparable Basis
HighLowHighLow
Revenue$1,430$1,390$1,430$1,390
Earnings per Diluted Share$1.50$1.10$3.10$2.70
Debt Covenants
Mechanics of Financial Covenant Calculations
Financial Covenant Calculations(1)(2)
Leverage Ratio (< 6.25 @ 4Q16)
Leverage Ratio = Net Debt / R12 Bank EBITDA
Interest Coverage Ratio (> 2.50 @ 4Q16)
Interest Coverage Ratio = R12 Bank EBITDA / R12 Cash Interest Expense(3)
Net Debt
Net DEBT = Total Debt - Cash & Cash Equivalents (not to exceed $50M)
Bank EBITDA
R12 Bank EBITDA = R12 Adjusted EBITDA + Future Synergies and Cost Savings(4)
Other Operating Expenses - Historical
ITGR: 2Q17 Earnings Conference Call / July 27, 2017 / Page 25
YTD
1Q16 2Q16 3Q16 4Q16 FY16 1Q17 2Q17
2014 Investments in Capacity and Capabilities $4.2 $5.1 $4.5 $3.3 $17.2 $1.6 $1.3
Legacy Lake Region Medical Consolidation and Optimization $2.4 $2.1 $2.9 $1.2 $8.6 $0.7 $1.5
Acquisition and Integration Costs $10.0 $7.8 $5.3 $5.2 $28.3 $4.8 $3.0
Asset Dispositions, Severance, and Other $4.5 $0.3 $0.3 $1.9 $6.9 $4.6 $1.1
Other consolidation and disposition initiatives $0.1 $0.2 $0.3 $0.1 $0.7 $0.1 $0.1
TOTAL OOE $21.1 $15.5 $13.4 $11.7 $61.7 $11.8 $6.9
Three Months Ended Three Months Ended
2Q17 Slides -->
Rolling Revenue
Quarterly
Amounts1Q152Q153Q154Q151Q162Q163Q164Q161Q172Q173Q17
Amy Wakeham: Amy Wakeham:RF64Q17
Amy Wakeham: Amy Wakeham:RF64Q154Q161Q172Q174Q17
Cardio and Vascular$ 116$ 122$ 127$ 115$ 114$ 122$ 129$ 126$ 125$ 132$ 133$ 1233%
Cardiac/Neuromodulation$ 112$ 123$ 105$ 121$ 107$ 107$ 108$ 116$ 104$ 106$ 113$ 108-2%-4%-1%2%0%
Advanced Surgical, Orthopedics & Portable Medical$ 112$ 116$ 104$ 112$ 98$ 109$ 100$ 107$ 105$ 109$ 116$ 111
Non-Medical$ 18$ 17$ 12$ 13$ 12$ 10$ 9$ 11$ 11$ 16$ 14$ 14
$ 358$ 377$ 349$ 361$ 331$ 348$ 347$ 360$ 345$ 363$ 375$ 356
Rolling 4-Quarter
Amounts4Q151Q162Q163Q164Q161Q172Q173Q17
Amy Wakeham: Amy Wakeham:RF6
Amy Wakeham: Amy Wakeham:RF6
Amy Wakeham: Amy Wakeham:RF64Q17
Cardio and Vascular$ 481$ 478$ 478$ 480$ 491$ 502$ 512$ 515$ 1,390
Cardiac/Neuromodulation$ 462$ 458$ 441$ 444$ 438$ 435$ 434$ 43940
Advanced Surgical, Orthopedics & Portable Medical$ 443$ 429$ 423$ 420$ 415$ 421$ 421$ 436
Non-Medical$ 59$ 53$ 47$ 44$ 42$ 41$ 47$ 52
$ 1,445$ 1,418$ 1,389$ 1,387$ 1,386$ 1,400$ 1,414$ 1,443$ 1,430
-1%2%4%
Rolling 4-Quarter Revenue
Cardio and Vascular
4Q151Q162Q163Q164Q161Q172Q173Q174Q17480.70099999999996477.90799999999996478.18199999999996480.298490.85700000000003502.29500000000002512.34199999999998515.4951390Cardiac/Neuromodulation
$1,430
4Q151Q162Q163Q164Q161Q172Q173Q174Q17461.78899999999999457.53000000000003441.16899999999998443.86799999999999438.36099999999999434.82099999999997434.00199999999995439.25540Advanced Surgical, Orthopedics & Portable Medical
4Q151Q162Q163Q164Q161Q172Q173Q174Q17443.43299999999999429.47699999999998423.20700000000005419.50099999999998414.70100000000002421.48500000000001420.69399999999996436.09100000000001Non-Medical
4Q151Q162Q163Q164Q161Q172Q173Q174Q1759.44899999999999853.41100000000000146.68500000000000243.57800000000000341.67899999999999541.35299999999999447.33400000000000352.064
4Q154Q161Q172Q174Q170.034Q154Q161Q172Q174Q17-0.02-0.04-1.2953298465937903E-21.8088268215135966E-20
$1,386
$1,400
$1,385
$1,387
$1,417
$1,444
Key Financial Results
Key Financial Results
2Q161Q172Q17FY15FY16
Sales$ 348$ 347$ 363$ 1,443$ 1,3864.1%
Gross Margin27.6%26.6%27.4%26.4%27.2%(0.54)
Operating Expenses$ 67$ 64$ 60$ 302$ 270-10.8%-7.3%
% of Sales19.2%18.5%16.4%20.9%19.5%
GAAP Net Income (Loss)$ (1)$ (4)$ 3$ (39)$ 6
Adjusted Net Income$ 18$ 14$ 20$ 98$ 8412.5%
EBITDA$ 51$ 50$ 55$ 161$ 203
Adjusted EBITDA$ 69$ 65$ 70$ 304$ 2802.1%
% of Sales19.8%18.8%19.4%21.1%20.2%
GAAP Diluted EPS$ (0.03)$ (0.11)$ 0.09$ (1.27)$ 0.19
Adjusted Diluted EPS$ 0.56$ 0.43$ 0.62$ 3.11$ 2.6810.7%44.2%
Cash Flow from Operations$ 39--$ 106
2Q162Q17
Revenue$ 348$ 3634.1%
Adjusted EBITDA$ 69$ 702.1%
Adjusted Net Income$ 18$ 2012.5%
2Q16Revenue348.382000000000012Q17Revenue362.7
2Q16Adjusted EBITDA68.9270000000000072Q17Adjusted EBITDA70.403000000000006
2Q16Adjusted Net Income17.5450000000000022Q17Adjusted Net Income19.742999999999999
Revenue
Revenue Details1Q174Q163Q16
1Q152Q153Q154Q151Q162Q163Q164Q161Q172Q173Q174Q17YOY%QOQ%LTMYOY%QOQ%YTD%YOY%QOQ%YTD%
Cardio and Vascular$ 116$ 122$ 127$ 115$ 114$ 122$ 129$ 126$ 125$ 132$ 133$ 12310%-0%5%9.2%-2.9%2.1%1.7%5.8%-0.1%
Cardiac/Neuromodulation$ 112$ 123$ 105$ 121$ 107$ 107$ 108$ 116$ 104$ 106$ 113$ 108-3%-10%-5%-4.5%7.2%-5.1%2.6%1.1%-5.3%
Advanced Surgical, Orthopedics & Portable Medical$ 112$ 116$ 104$ 112$ 98$ 109$ 100$ 107$ 105$ 109$ 116$ 1117%-1%-2%-4.3%6.5%-6.5%-3.6%-8.4%-7.2%
Non-Medical$ 17$ 16$ 12$ 13$ 12$ 10$ 9$ 11$ 11$ 16$ 14$ 14-3%0%-22%-12.2%27.6%-28.7%-27.4%-9.7%-33.4%
$ 358$ 377$ 349$ 361$ 331$ 348$ 347$ 360$ 345$ 363$ 375$ 3564%-4%-1%-0.6%3.8%-4.1%-0.6%-0.5%-5.3%
Integer-7%-8%-1%-0%4%4%8%-1%
C&V-2%0%2%9%10%8%2%-2%
CRMN-4%-13%3%-5%-3%-1%5%-7%
ASO-12%-5%-4%-4%7%-1%15%4%
ELECTROCHEM-33%-39%-27%-12%-3%61%53%22%
Integer
1Q162Q163Q164Q161Q172Q17
-7%-8%-1%-0%4%4%
1Q162Q163Q164Q161Q172Q17
C&V-2%0%2%9%10%8%
CRMN-4%-13%3%-5%-3%-1%
ASO-12%-5%-4%-4%7%-1%
ELECTROCHEM-33%-39%-27%-12%-3%61%
Cardio and Vascular
1Q162Q163Q164Q161Q172Q17113.67100000000001122.253129.34700000000001125.586125.10899999999999132.30000000000001Cardiac/Neuromodulation
1Q162Q163Q164Q161Q172Q17107.35299999999999106.919108.14700000000001115.94199999999999103.813106.1Advanced Surgical, Orthopedics & Portable Medical
1Q162Q163Q164Q161Q172Q1798.361999999999995109.39100000000001100.203106.745105.146108.6Non-Medical
1Q162Q163Q164Q161Q172Q1711.6720000000000019.81900000000000088.869999999999999211.31811.34615.8
1Q162Q163Q164Q161Q172Q17-7.4673808684708187E-2-7.5644292632672777E-2-6.405718604899204E-3-3.652959428889269E-34.336400268230943E-24.1385605456079839E-2
C&V1Q162Q163Q164Q161Q172Q17-2.3983038760478703E-22.2426566653200586E-31.66329269161383E-29.1796637234067613E-20.100623729887130298.218203234276468E-2
CRMN1Q162Q163Q164Q161Q172Q17-3.8156745751215963E-2-0.13271747507193942.5596977582260951E-2-4.5343014394381174E-2-3.2975324397082451E-2-7.6600043023223431E-3
ASO1Q162Q163Q164Q161Q172Q17-0.12425733651490105-5.4206126549724315E-2-3.5664963616465276E-2-4.3032193455063462E-26.8969724080437639E-2-7.230942216453008E-3
ELECTROCHEM1Q162Q163Q164Q161Q172Q17-0.3284268265558879-0.38520907670907634-0.27377123970736439-0.12185873875025538-2.7930089102124786E-20.60912516549546791
PL Revenue
Revenue Details1Q174Q163Q16
1Q152Q153Q154Q151Q162Q163Q164Q161Q17YOY%QOQ%LTMYOY%QOQ%YTD%YOY%QOQ%YTD%
Cardio and Vascular$ 116$ 122$ 127$ 115$ 114$ 122$ 129$ 126$ 12510%-0%5%9.2%-2.9%2.1%1.7%5.8%-0.1%
Cardiac/Neuromodulation$ 112$ 123$ 105$ 121$ 109$ 107$ 108$ 116$ 104-4%-10%-5%-4.5%7.2%-4.8%2.6%1.1%-4.9%
Advanced Surgical, Orthopedics & Portable Medical$ 112$ 116$ 104$ 112$ 98$ 110$ 100$ 107$ 1057%-2%-2%-4.3%6.6%-6.4%-3.6%-8.6%-7.2%
Non-Medical$ 17$ 16$ 12$ 13$ 12$ 10$ 9$ 11$ 11-3%0%-22%-12.3%27.3%-29.0%-27.3%-7.9%-33.7%
$ 358$ 377$ 349$ 361$ 332$ 348$ 347$ 360$ 3454%-4%-1%-0.6%3.8%-4.0%-0.6%-0.5%-5.2%
Integer-7%-8%-1%-0%5%
C&V-2%0%2%9%10%
CRMN-3%-13%3%-5%-4%
ASO-12%-5%-4%-4%7%
ELECTROCHEM-33%-40%-27%-12%-3%
Cardio and Vascular
1Q162Q163Q164Q161Q17113.671185105071122.253359585129129.346703008486125.585570224169125.108809338637Cardiac/Neuromodulation
1Q162Q163Q164Q161Q17108.533106.91896797919399108.146981976204115.941976250189103.813140284005Advanced Surgical, Orthopedics & Portable Medical
1Q162Q163Q164Q161Q1798.3309374606539109.56532849119201100.18804689810401106.757068819778105.14561129859Non-Medical
1Q162Q163Q164Q161Q1711.6720000000000019.64499527000000088.884881760000000711.30614017000000111.34579473
Cardio and Vascular1Q162Q163Q164Q161Q17113.671185105071122.253359585129129.346703008486125.585570224169125.108809338637
Cardiac/Neuromodulation1Q162Q163Q164Q161Q17108.533106.91896797919399108.146981976204115.941976250189103.813140284005
Advanced Surgical, Orthopedics & Portable Medical1Q162Q163Q164Q161Q1798.3309374606539109.56532849119201100.18804689810401106.757068819778105.14561129859
Non-Medical1Q162Q163Q164Q161Q1711.6720000000000019.64499527000000088.884881760000000711.30614017000000111.34579473
Adjusted EBITDA Walk
4Q151Q162Q163Q164Q161Q172Q17BaseFallRise
Adjusted EBITDA$ 79$ 65$ 69$ 75$ 71$ 64$ 70-2%2Q16$ - 0$ 69$ 68.927
Sales331348347360345363Operations$ 69$ - 0$ 6$ 6.452
% of Sales20%20%22%20%19%19%Unrealized FX$ 70$ 5$ - 0$ (4.976)
2Q17$ 70$ 70.4037%
Adjusted EBITDA
1Q162Q163Q164Q161Q172Q1765.3768.92700000000000775.01699999999999670.53499999999999764.25670.403000000000006
Base2Q16OperationsUnrealized FX2Q1768.92700000000000770.40300000000000670.403000000000006Fall2Q16OperationsUnrealized FX2Q17004.976Rise2Q16OperationsUnrealized FX2Q1768.9270000000000076.45199999999999820
Adjusted EPS Walk
Adjusted EPS
Historical Adjusted EPS
BaseFallRise1Q162Q163Q164Q161Q172Q17
2Q16$ - 0$ 0.56$ 0.56$ 0.42$ 0.56$ 0.83$ 0.87$ 0.410.62
Operations$ 0.56$ - 0$ 0.20$ 0.20
Unrealized FX$ 0.62$ 0.14$ - 0$ (0.14)
2Q17$ 0.62$ 0.62
Base2Q16OperationsUnrealized FX2Q170.560000000000000050.620.62Fall2Q16OperationsUnrealized FX2Q17000.14000000000000001Rise2Q16OperationsUnrealized FX2Q170.560000000000000050.199999999999999960
1Q162Q163Q164Q161Q172Q170.420.560000000000000050.830.870.410.62
Cash Flows
4Q151Q162Q163Q164Q161Q172Q174Q151Q162Q163Q164Q161Q172Q17
Cash Flow from Operations$ - 0$ 30$ 4$ 38$ 34$ 39Free Cash Flow$ - 0$ 11$ (8)$ 21$ 27$ (12)
Free Cash Flow$ - 0$ 11$ (8)$ 21$ 27$ (12)Capex$ 19$ 12$ 17$ 6$ 51
Cash Flow from Operations$ - 0$ 30$ 4$ 38$ 34$ 39
Cash Flow from Operations
2Q163Q164Q161Q173.895999999999999938.04500000000000233.73299999999999738.625Free Cash Flow
2Q163Q164Q161Q17-7.738000000000000421.47899999999999927.308000000000007-12.327999999999999
Free Cash Flow
1Q162Q163Q164Q161Q172Q1711.09-7.738000000000000421.47899999999999927.308000000000007-12.327999999999999
Cash Flow from Operations
1Q162Q163Q164Q161Q172Q1729.8580000000000013.895999999999999938.04500000000000233.73299999999999738.625
Debt
Debt Repayment Schedule
2H1620172018201920202021202220231Q162Q163Q164Q16FY161Q172Q17
Payment$ 15$ 12$ 30$ 38$ 120$ 230$ 913$ 360Req'd Debt Payments7.37.37.37.329.010.78.3
Add'l Payments2.0
Amy Wakeham: Amy Wakeham:borrowed and repaid in same quarter5.010.017.018.531.4
7.39.312.317.346.029.239.7
Payment
201720182019202020212022202311.718753038120230913360
Req'd Debt Payments1Q172Q1710.6518.266Add'l Payments1Q172Q1718.531.420999999999999
BS Metrics
4Q151Q162Q163Q164Q161Q172Q17
Free Cash Flow$11$11($8)$21$27($12)
Days Sales Outstanding0505050525653
Inventory$252$267$276$262$225$231$236
Inventory Turns(1)4.53.73.73.74.44.54.5
Capital Expenditures$13$19$12$17$11$12
Days Payables Outstanding0313632273233
Sales359,634331,058348,382346,567359,591345,413362,719
COGS282,377240,770252,351248,658266,700254,187263,447
Accounts Receivable183,563192,121191,409204,626213,610212,607
EOP Net Inventory252,166267,380276,279262,232225,151231,292235,562
BOP Net Inventory252,166267,380267,380276,279276,279262,232262,232225,151231,292
Average Inventory259,773133,690271,830138,140269,256131,116243,692228,222233,427
Accounts Payable83,30699,13586,29077,89690,71395,123
ERROR:#DIV/0!
Guidance
Supplemental Financial Items Affecting Cash Flow
GAAPNon-GAAP(in millions, except effective tax rate):
As ReportedGrowthAdjusted BasisGrowth2017 Outlook2016 Actual201620172016201720162017
Revenue$1,390 to $1,4300% to 3%$1,390 to $1,4300% to 3%Capital expenditures$50 - $60$59Revenue$ 1,386$ 1,400Adjusted EPS$ 2.68$ 2.70Cash Flow From Operations$ 106150
Earnings per Diluted Share$1.03 to $1.43favorable$2.70 to $3.10 1% to 16%Depreciation and amortization$95 - $100$91$ 30$ 0.400
Cash Flow from Operations~$150~43%----Stock-based compensation~$13$8
Working capital decrease$10 - $20$29
Other operating expense$25 - $30$62
Adjusted effective tax rate~25%23%
Cash Taxes~$10~$7
Revenue20162017138614002016201730
Adjusted EPS201620172.682.7201620170.39999999999999991
Cash Flow From Operations20162017105.532150201620170
Appendix -->
Working Capital
4Q151Q162Q163Q164Q161Q172Q17FY15FY16
Current Assets$ 575$ 534$ 534$ 525$ 517$ 528$ 524$ 575$ 517
Current Liabilities$ 214$ 217$ 217$ 200$ 185$ 203$ 196$ 214$ 185
Working Capital$ 361$ 318$ 317$ 325$ 332$ 325$ 328$ 361$ 332
Current Ratio2.72.52.52.62.82.62.72.72.8
$ (29)
Working Capital
1Q162Q163Q164Q161Q172Q17317.89699999999993316.61099999999999325.15800000000002332.08699999999999325.005328.14399999999995
OOE
Three Months EndedTwelve Months EndedThree Months EndedYTDThree Months Ended
2Q162Q171/1/1612/30/16NOTES:1Q162Q163Q164Q16FY161Q172Q17
2014 Investments in Capacity and Capabilities$5.1$1.3$23.0$17.2Portable Medical and Vascular product line transfers2014 Investments in Capacity and Capabilities$4.2$5.1$4.5$3.3$17.2$1.6$1.3
Legacy Lake Region Medical Consolidation and Optimization$2.1$1.5$2.0$8.6Legacy Lake Region Medical Consolidation and Optimization$2.4$2.1$2.9$1.2$8.6$0.7$1.5
Acquisition and Integration Costs$7.8$3.0$33.5$28.3Lake Region Medical and CCC Medical DevicesAcquisition and Integration Costs$10.0$7.8$5.3$5.2$28.3$4.8$3.0
Asset Dispositions, Severance, and Other$0.3$1.1$6.6$6.9Asset Dispositions, Severance, and Other$4.5$0.3$0.3$1.9$6.9$4.6$1.1
Other consolidation and disposition initiatives$0.2$0.1$18.2-$1.1Other consolidation and disposition initiatives$0.1$0.2$0.3$0.1$0.7$0.1$0.1
TOTAL OOE$15.5$6.9$83.3$59.9TOTAL OOE$21.1$15.5$13.4$11.7$61.7$11.8$6.9
(1)Details of Other Operating Expenses (OOE) provided on a comparable basis. Comparable basis amounts for 2016 exclude the results of Nuvectra Corporation (“Nuvectra”) prior to its spin-off on March 14, 2016. Comparable basis amounts for 2015 exclude the results of Nuvectra and include the results of the former Lake Region Medical. Historical pro forma information, which was filed with the SEC on Form 8-K on February 29, 2016, contains a reconciliation of 2015 comparable amounts to as reported amounts.
Guidance-recon table
GAAPAdjusted Comparable Basis
HighLowHighLow
Revenue$1,430$1,390$1,430$1,390
Earnings per Diluted Share$1.50$1.10$3.10$2.70
Debt Covenants
Mechanics of Financial Covenant Calculations
Financial Covenant Calculations(1)(2)
Leverage Ratio (< 6.25 @ 4Q16)
Leverage Ratio = Net Debt / R12 Bank EBITDA
Interest Coverage Ratio (> 2.50 @ 4Q16)
Interest Coverage Ratio = R12 Bank EBITDA / R12 Cash Interest Expense(3)
Net Debt
Net DEBT = Total Debt - Cash & Cash Equivalents (not to exceed $50M)
Bank EBITDA
R12 Bank EBITDA = R12 Adjusted EBITDA + Future Synergies and Cost Savings(4)
ITGR: 2Q17 Earnings Conference Call / July 27, 2017 / Page 26
Non-GAAP Reconciliation Net Income and Diluted EPS Reconciliation – QTD
See the Footnotes to this table on Slide 31 of this presentation
Three Months Ended June 30, 2017 July 1, 2016
Pre-Tax Net
Income
Per Diluted Share Pre-Tax
Net Income (Loss)
Per Diluted Share
As reported (GAAP) $ 4,116 $ 2,990 $ 0.09 $ 687 $ (770 ) $ (0.03 Adjustments:
Amortization of intangibles(a) 11,046 7,815 0.24 9,514 6,732 0.22 IP related litigation (SG&A)(a)(b) 915 595 0.02 285 185 0.01 Consolidation and optimization expenses (OOE)(a)(c) 2,832 2,093 0.07 7,376 5,975 0.19 Acquisition and integration expenses (OOE)(a)(d) 2,970 2,037 0.06 7,859 5,145 0.16 Asset dispositions, severance and other (OOE)(a)(e) 1,118 727 0.02 259 197 0.01 Loss on cost and equity method investments, net(a) 4,427 2,877 0.09 124 81 — Loss on extinguishment of debt(a)(f) 935 608 0.02 — — — Taxes(a) (8,617 ) — — (8,559 ) — —
Adjusted (Non-GAAP) $ 19,742 $ 0.62 $ 17,545 $ 0.56
Diluted weighted average shares for adjusted EPS(h) 31,982 31,228
Three Months Ended
June 30, 2017
July 1, 2016
Pre-Tax
Net
Income
Per
Diluted
Share
Pre-Tax
Net
Income (Loss)
Per
Diluted
Share
As reported (GAAP)
$
4,116
$
2,990
$
0.09
$
687
$
(770
)
$
(0.03
)
Adjustments:
Amortization of intangibles(a)
11,046
7,815
0.24
9,514
6,732
0.22
IP related litigation (SG&A)(a)(b)
915
595
0.02
285
185
0.01
Consolidation and optimization expenses (OOE)(a)(c)
2,832
2,093
0.07
7,376
5,975
0.19
Acquisition and integration expenses (OOE)(a)(d)
2,970
2,037
0.06
7,859
5,145
0.16
Asset dispositions, severance and other (OOE)(a)(e)
1,118
727
0.02
259
197
0.01
Loss on cost and equity method investments, net(a)
4,427
2,877
0.09
124
81
—
Loss on extinguishment of debt(a)(f)
935
608
0.02
—
—
—
Taxes(a)
(8,617
)
—
—
(8,559
)
—
—
Adjusted (Non-GAAP)
$
19,742
$
0.62
$
17,545
$
0.56
Diluted weighted average shares for adjusted EPS(h)
31,982
31,228
ITGR: 2Q17 Earnings Conference Call / July 27, 2017 / Page 27
Non-GAAP Reconciliation Net Income and Diluted EPS Reconciliation – YTD
See the Footnotes to this table on Slide 31 of this presentation
Six Months Ended June 30, 2017 July 1, 2016
Pre-Tax
Net Income (Loss)
Per Diluted Share Pre-Tax
Net Income (Loss)
Per Diluted Share
As reported (GAAP) $ (79 ) $ (1,349 ) $ (0.04 ) $ (12,075 ) $ (13,430 ) $ (0.44 ) Adjustments:
Amortization of intangibles(a) 22,024 15,561 0.49 18,978 13,423 0.43
IP related litigation (SG&A)(a)(b) 1,292 840 0.03 2,192 1,425 0.05
Consolidation and optimization expenses (OOE)(a)(c) 5,227 3,992 0.13 14,025 11,289 0.36
Acquisition and integration expenses (OOE)(a)(d) 7,790 5,170 0.16 17,824 11,656 0.37
Asset dispositions, severance and other (OOE)(a)(e) 5,674 3,684 0.12 4,785 4,423 0.14
(Gain) loss on cost and equity method investments, net(a) 4,825 3,136 0.10 (1,177 ) (765 ) (0.02 ) Loss on extinguishment of debt(a)(f) 2,494 1,621 0.05 — — —
Nuvectra results prior to spin-off(a)(g) — — — 4,037 2,624 0.08
Taxes(a) (16,592 ) — — (17,944 ) — —
Adjusted (Non-GAAP) $ 32,655 $ 1.03 $ 30,645 $ 0.98 Diluted weighted average shares for adjusted EPS(h) 31,833 31,257
Non-GAAP Reconciliation 2Q17 Net Income and Diluted EPS Reconciliation
ITGR: 2Q17 Earnings Conference Call / July 27, 2017 / Page 28
See the Footnotes to this table on Slide 29 of this presentation
GAAP Non-GAAP
Income Statement 2Q17 Actual Amortization
Litigation Related
Charges(b)Consolidation & Optimization(c)(e)
Acquisition & Integration(d)
Debt / Investment
Related Charges(f) 2Q17 Adjusted
Sales 362,719$ 362,719$ Cost of sales 263,447 (4,111) 259,336
Gross profit 99,272$ 4,111$ -$ -$ -$ -$ 103,383$ Gross margin 27.4% 28.5%
Operating expenses:SG&A 39,724 (6,799) (915) 32,010
SG&A as a % of revenues 11.0% 8.8%Research, development & engineering 12,889 (136) 12,753
RD&E as a % of revenues 3.6% 3.5%Other operating expense 6,920 (3,950) (2,970) -
Operating income 39,739$ 11,046$ 915$ 3,950$ 2,970$ -$ 58,620$ Operating margin 11.0% 16.2%
Other (income) & expenses:Interest expense 25,647 (935) 24,712 Interest income - - Other (income) loss, net 9,976 (4,427) 5,549
Loss before income taxes 4,116$ 11,046$ 915$ 3,950$ 2,970$ 5,362$ 28,359$ Provision for income taxes 1,126 3,231 320 1,130 933 1,877 8,617 Effective tax rate 27.36% 30.39%
Net income (loss) 2,990$ 7,815$ 595$ 2,820$ 2,037$ 3,485$ 19,742$ Net margin 0.8% 5.4%
Weighted Average Shares O/S (h) 31,982 31,982 31,982 31,982 31,982 31,982 31,982 EPS 0.09$ 0.24$ 0.02$ 0.09$ 0.06$ 0.11$ 0.62$
Non-GAAP Adj.(a)
Adjusted P&L-->
Combined 16 - 17
Integer Holdings Corporation
Non-GAAP Adjustments
Non-GAAPNon-GAAP2017 vs 2016 YoY Var $'s2017 vs 2016 YoY Var %'s
Income Statement1Q17 Actual2Q17 RF43Q17 RF44Q17 RF4FY17 RF41Q16 Actual2Q16 Actual3Q16 Actual4Q16 ActualFY16 Actual1Q2Q3Q4QTY1Q2Q3Q4QTY
Sales3453633653471,4203313483473601,386141418(13)344%4%5%(4%)2%
Cost of sales2502592552461,011236248244263991141111(17)206%5%4%(6%)2%
Gross profit9510311010140995100102973940374150%3%7%4%4%
Operating expenses:
SG&A3232343413233323132128(1)(0)324(2%)(1%)11%6%3%
RD&E13131414531413111352(1)(1)212(8%)(5%)20%9%3%
Other operating expense0000000000
Operating income5059625322448556052215242194%7%3%1%4%
Other (income) & expenses:
Interest expense2725252510228282828111(0)(3)(3)(3)(9)(1%)(11%)(10%)(11%)(8%)
Interest income0000000000
Other (income) loss, net16007(2)10(3)(5)45(0)312(160%)909%(100%)(100%)(239%)
Loss before income taxes2128372911522263228109(2)2516(7%)9%14%3%6%
Provision for income taxes898731997125(1)0176(15%)1%18%1057%26%
Net income (loss)13202921831318262784(0)23(6)(0)(1%)13%13%(21%)(1%)
Weighted Average Shares O/S31.732.031.731.731.731.331.231.231.331.2011001%2%2%1%2%
EPS$ 0.41$ 0.62$ 0.92$ 0.67$ 2.62$ 0.42$ 0.56$ 0.83$ 0.87$ 2.68$ (0.01)$ 0.06$ 0.09$ (0.20)$ (0.05)(3%)10%11%(23%)(2%)
Non-GAAPNon-GAAP2017 vs 2016 YoY Var $'s
Key Metrics1Q17 Actual2Q17 RF43Q17 RF44Q17 RF4FY17 RF41Q16 Actual2Q16 Actual3Q16 Actual4Q16 ActualFY16 Actual1Q2Q3Q4QTY
Gross margin27.6%28.5%30.0%29.0%28.8%28.7%28.8%29.5%27.0%28.5%(1.1%)(0.3%)0.6%2.1%0.3%
SG&A as a % of revenues9.4%8.8%9.3%9.7%9.3%10.0%9.2%8.8%8.9%9.2%(0.6%)(0.4%)0.5%0.9%0.1%
RD&E as a % of revenues3.8%3.5%3.7%3.9%3.8%4.3%3.9%3.3%3.5%3.7%(0.5%)(0.4%)0.5%0.5%0.0%
Operating Income margin14.4%16.2%17.0%15.4%15.7%14.4%15.7%17.4%14.6%15.5%(0.0%)0.5%(0.4%)0.8%0.2%
Effective tax rate38.2%30.4%20.8%25.4%27.5%41.7%32.8%20.1%2.3%23.1%(3.6%)(2.4%)0.6%23.1%4.4%
Net Income margin3.7%5.4%8.0%6.2%5.9%4.0%5.0%7.4%7.6%6.0%(0.2%)0.4%0.6%(1.4%)(0.2%)
Combined 15 - 17
Integer Holdings Corporation
Non-GAAP Adjustments
Non-GAAPNon-GAAPNon-GAAP2017 vs 2016 YoY Var $'s2017 vs 2016 YoY Var %'s2016 vs 2015 YoY Var $'s2016 vs 2015 YoY Var %'s
Income Statement1Q17 Actual2Q17 RF43Q17 RF44Q17 RF4FY17 RF41Q16 Actual2Q16 Actual3Q16 Actual4Q16 ActualFY16 Actual1Q15 Actual2Q15 Actual3Q15 Actual4Q15 ActualFY15 Actual1Q2Q3Q4QTY1Q2Q3Q4QTY1Q2Q3Q4QTY1Q2Q3Q4QTY
Sales3453633653471,4203313483473601,3863583773483601,443141418(13)344%4%5%(4%)2%(27)(29)(2)(0)(57)(7%)(8%)(1%)(0%)(4%)
Cost of sales2502592552461,0112362482442639912552662452551,021141111(17)206%5%4%(6%)2%(19)(18)(1)8(30)(7%)(7%)(0%)3%(3%)
Gross profit9510311010140995100102973941031111031054220374150%3%7%4%4%(8)(11)(1)(8)(27)(8%)(10%)(1%)(7%)(6%)
Operating expenses:
SG&A323234341323332313212837383331139(1)(0)324(2%)(1%)11%6%3%(4)(6)(3)1(11)(10%)(15%)(8%)3%(8%)
RD&E131314145314131113521211131046(1)(1)212(8%)(5%)20%9%3%32(2)2624%20%(12%)25%13%
Other operating expense000000000000000
Operating income505962532244855605221555625763237242194%7%3%1%4%(7)(7)3(11)(22)(13%)(12%)6%(17%)(9%)
Other (income) & expenses:
Interest expense272525251022828282811127272727107(0)(3)(3)(3)(9)(1%)(11%)(10%)(11%)(8%)111143%4%4%5%4%
Interest income0000000000
Other (income) loss, net16007(2)10(3)(5)(1)04(2)145(0)312(160%)909%(100%)(100%)(239%)(1)0(4)(1)(6)111%62%(99%)57%(809%)
Loss before income taxes212837291152226322810929352639129(2)2516(7%)9%14%3%6%(6)(9)6(11)(20)(22%)(25%)22%(28%)(16%)
Provision for income taxes8987319971257761131(1)0176(15%)1%18%1057%26%220(10)(6)35%31%3%(94%)(19%)
Net income (loss)132029218313182627842228202898(0)23(6)(0)(1%)13%13%(21%)(1%)(9)(11)6(1)(14)(41%)(38%)28%(2%)(15%)
Weighted Average Shares O/S31.732.031.731.731.731.331.231.231.331.231.331.431.531.831.5011001%2%2%1%2%(0)(0)(0)(1)(0)(0%)(0%)(1%)(2%)(1%)
EPS$ 0.41$ 0.62$ 0.92$ 0.67$ 2.62$ 0.42$ 0.56$ 0.83$ 0.87$ 2.68$ 0.71$ 0.90$ 0.64$ 0.87$ 3.11$ (0.01)$ 0.06$ 0.09$ (0.20)$ (0.05)(3%)10%11%(23%)(2%)$ (0.29)$ (0.33)$ 0.19$ (0.00)$ (0.44)(41%)(37%)29%(0%)(14%)
Non-GAAPNon-GAAPNon-GAAP2017 vs 2016 YoY Var $'s2016 vs 2015 YoY Var $'s
Key Metrics1Q17 Actual2Q17 RF43Q17 RF44Q17 RF4FY17 RF41Q16 Actual2Q16 Actual3Q16 Actual4Q16 ActualFY16 Actual1Q15 Actual2Q15 Actual3Q15 Actual4Q15 ActualFY15 Actual1Q2Q3Q4QTY1Q2Q3Q4QTY
Gross margin27.6%28.5%30.0%29.0%28.8%28.7%28.8%29.5%27.0%28.5%28.8%29.5%29.5%29.1%29.2%(1.1%)(0.3%)0.6%2.1%0.3%(0.1%)(0.7%)(0.1%)(2.1%)(0.8%)
SG&A as a % of revenues9.4%8.8%9.3%9.7%9.3%10.0%9.2%8.8%8.9%9.2%10.2%10.1%9.6%8.6%9.6%(0.6%)(0.4%)0.5%0.9%0.1%(0.3%)(0.9%)(0.7%)0.3%(0.4%)
RD&E as a % of revenues3.8%3.5%3.7%3.9%3.8%4.3%3.9%3.3%3.5%3.7%3.3%3.0%3.7%2.8%3.2%(0.5%)(0.4%)0.5%0.5%0.0%1.1%0.9%(0.4%)0.7%0.6%
Operating Income margin14.4%16.2%17.0%15.4%15.7%14.4%15.7%17.4%14.6%15.5%15.3%16.4%16.3%17.7%16.4%(0.0%)0.5%(0.4%)0.8%0.2%(0.9%)(0.7%)1.1%(3.1%)(0.9%)
Effective tax rate38.2%30.4%20.8%25.4%27.5%41.7%32.8%20.1%2.3%23.1%23.9%18.9%23.8%28.5%23.9%(3.6%)(2.4%)0.6%23.1%4.4%17.8%13.9%(3.6%)(26.2%)(0.9%)
Net Income margin3.7%5.4%8.0%6.2%5.9%4.0%5.0%7.4%7.6%6.0%6.2%7.5%5.8%7.7%6.8%(0.2%)0.4%0.6%(1.4%)(0.2%)(2.2%)(2.4%)1.6%(0.2%)(0.8%)
2015
Integer 2015 Actual Results - Comparable Basis2015 Actual Results - Adjusted Comparable Basis
Q1Q2Q3Q4FY 2015Q1Q2Q3Q4FY 2015
Actual - ComparableActual - ComparableActual - ComparableActual - ComparableActual - ComparableActual - ComparableActual - ComparableActual - ComparableActual - ComparableActual - Comparable
Sales357,867376,917348,420359,6341,442,838357,867376,917348,420359,6341,442,838
COGS259,660270,470250,073282,3771,062,580254,905265,741245,465255,1331,021,244
Gross Profit98,207106,44798,34777,257380,258102,962111,176102,955104,501421,594
Gross Margin27.4%28.2%28.2%21.5%26.4%28.8%29.5%29.5%29.1%29.2%
SG&A44,51046,77041,72738,117171,12436,63538,11933,40730,992139,153
Net RD&E (incl Qual & Reg)11,75111,39012,88310,14546,16911,64811,28712,79510,02745,757
Operating Expenses (excl OOE)56,26158,16054,61048,262217,29348,28349,40646,20241,019184,910
Other Operating Expenses (OOE)11,83413,19019,15240,52884,704- 0- 0- 0- 0- 0
Operating Income30,11235,09724,585(11,533)78,26154,67961,77056,75363,482236,684
Adjusted Operating Income (AOI)42,64649,74644,86430,126167,382
AOI %
Interest26,85326,78731,50640,576125,72226,85326,78726,71826,647107,005
Other expense(1,148)3403,54116,83919,572(1,148)3403,541(2,025)708
Realized (gain) loss on foreign currency(498)(42)(4,579)1,769(3,350)- 0- 0- 0- 0- 0
Income before taxes4,9058,012(5,883)(70,717)(63,683)28,97434,64326,49438,860128,971
Tax Rate7%-9%21%33%39%24%19%24%28%24%
Tax $356(713)(1,240)(23,228)(24,825)6,9356,5566,30311,07330,867
GAAP Net Income4,5498,725(4,643)(47,489)(38,858)22,03928,08720,19127,78798,104
GAAP EPS0.150.28(0.15)(1.49)(1.23)0.710.900.640.873.11
Shares31,25931,35331,48131,80531,504
Inventory Step Up Amortization- 0- 0- 015,60515,605
IP Related Litigation (AVX)4559487337352,871
Amortization of Intangibles8,2118,2048,1157,22531,755
Consolidation and optimization (income) costs (OOE)6,9307,8656,9345,12726,856
Acquisition and integration (income) expenses1,2401,2225,92923,61232,003
Asset dispositions, severance and other5487202,5571,7965,621
Lake Region Medical transaction costs (interest)- 0- 03,1129,05412,166
R&D Tax Credit430430430(1,290)- 0
Loss on debt extinguishment- 0- 0- 012,26212,262
Loss (gain) on cost and equity method investments, net(324)(27)(2,976)1,150(2,177)
Nuvectra Costs (Net of OOE) - 0
Tax Adj- 0- 0- 0- 0- 0
Adj. NI22,03928,08720,19127,78798,104
Adj. EPS0.710.900.640.873.11
Pre-Tax ANI Adjustments
Income before taxes4,9058,012(5,883)(70,717)(63,683)
Inventory Step Up Amortization- 0- 0- 022,98622,986
IP Related Litigation (AVX)7001,4591,1271,1314,417
Amort of Intangibles - COGS4,7554,7294,6084,25818,350
Amort of Intangibles - SG&A7,1757,1927,1935,99427,554
Amort of Intangibles - RD&E10310388118412
Consolidation and optimization (income) costs (OOE)9,20410,2729,0476,28834,811
Acquisition and integration (income) expenses1,8321,8026,80532,06042,499
Asset dispositions, severance and other7981,1163,3002,1807,394
Lake Region Medical transaction costs (interest)- 0- 04,78813,92918,717
Loss on debt extinguishment- 0- 0- 018,86418,864
Loss (gain) on cost and equity method investments, net(498)(42)(4,579)1,769(3,350)
Nuvectra Costs (Net of OOE) - 0
Tax Adj- 0- 0- 0- 0- 0
Adj. NI before Taxes28,97434,64326,49438,860128,971
R&D Tax Credit430430430(1,290)- 0
Taxes6,5056,1265,87312,36330,867
Adj. NI22,03928,08720,19127,78798,104
% AETR22%18%22%32%24%
Adj EBITDA Estimate
GAAP NI4,5498,725(4,643)(47,489)(38,858)
Interest26,85326,78731,50640,576125,722
Income Taxes356(713)(1,240)(23,228)(24,825)
Depr & Amortization25,61925,62424,97023,13399,346
Inventory Step up Amortization- 0- 0- 022,98622,986
IP Related Litigation7001,4591,1271,1314,417
Stock Comp2,6324,7193,77444111,566
Consolidation and optimization (income) costs (OOE)9,20410,2729,0476,28834,811
Acquisition and integration (income) expenses1,8321,8026,80532,06042,499
Asset dispositions, severance and other7981,1163,3002,1807,394
Loss on Debt Extinguishment- 0- 0- 018,86418,864
Loss (gain) on cost and equity method investments, net(498)(42)(1,178)1,993275
Nuvectra EBITDA Addback- 0- 0- 0- 0- 0
Adj EBITDA72,04579,74973,46878,935304,197
GB Amort - COGS1,4711,4451,3243,163
GB Amort - SG&A1,8131,8301,8314,207
GB Amort - RD&E10310388118
Total GB Amort3387337832437488
LRM Amort - COGS3284328432841095
LRM Amort - SG&A5362536253621787
12033120241188910370
Loss (gain) on cost and equity method investments, net-498-42-45791769
Lake Region Medical transaction costs (interest)4788
1Q16
Integer Holdings Corporation
Non-GAAP Adj. Net Income - 2 views
1Q16
ALTERNATE VIEW
THREE MONTHS ENDEDGAAPNon-GAAP Adj.(c)Non-GAAPTHREE MONTHS ENDEDGAAPNon-GAAP Adj.Non-GAAPNon-GAAP Adj.Non-GAAP
Income Statement1Q16 ActualAmortization(a)Litigation Related Charges(b)Consolidation & Optimization(d)(f)Acquisition & Integration(e)NuvectraSpin(k)Debt / Investment Related Charges(g)1Q16 AdjustedIncome Statement1Q16 ActualAmortization(a)Litigation Related Charges(b)Consolidation & Optimization(d)(f)Acquisition & Integration(e)Debt / Investment Related Charges(g)1Q16 Adjusted as reportedNuvectraSpin(k)1Q16 Adjusted revised
Sales$ 332,238$ (1,180)$ 331,058Sales$ 332,238$ 332,238$ (1,180)$ 331,058
Cost of sales240,770(4,240)(526)236,004Cost of sales240,770(4,240)236,530(526)236,004
Gross profit$ 91,468$ 4,240$ - 0$ - 0$ - 0$ (654)$ - 0$ 95,054Gross profit$ 91,468$ 4,240$ - 0$ - 0$ - 0$ - 0$ 95,708$ (654)$ 95,054
Gross margin27.5%28.7%Gross margin27.5%28.8%28.7%
Operating expenses:Operating expenses:
SG&A41,888(5,136)(1,907)(1,861)32,984SG&A41,888(5,136)(1,907)34,845(1,861)32,984
SG&A as a % of revenues12.6%10.0%SG&A as a % of revenues12.6%10.5%10.0%
Research, development & engineering17,306(88)(2,830)14,388Research, development & engineering17,306(88)17,218(2,830)14,388
RD&E as a % of revenues5.2%4.3%RD&E as a % of revenues5.2%5.2%4.3%
Other operating expense21,140(11,175)(9,965)- 0- 0Other operating expense21,140(11,175)(9,965)- 0- 0- 0
Operating income$ 11,134$ 9,464$ 1,907$ 11,175$ 9,965$ 4,037$ - 0$ 47,682Operating income$ 11,134$ 9,464$ 1,907$ 11,175$ 9,965$ - 0$ 43,645$ 4,037$ 47,682
Operating margin3.4%14.4%Operating margin3.4%13.1%14.4%
Other (income) & expenses:Other (income) & expenses:
Interest expense27,61727,617Interest expense27,61727,61727,617
Interest income- 0- 0Interest income- 0- 0- 0
Other (income) loss, net(3,721)1,301(2,420)Other (income) loss, net(3,721)1,301(2,420)(2,420)
Loss before income taxes$ (12,762)$ 9,464$ 1,907$ 11,175$ 9,965$ 4,037$ (1,301)$ 22,485Loss before income taxes$ (12,762)$ 9,464$ 1,907$ 11,175$ 9,965$ (1,301)$ 18,448$ 4,037$ 22,485
Provision for income taxes(c)(102)2,7736671,6353,4541,413(455)9,385Provision for income taxes(c)(102)2,7736671,6353,454(455)7,9721,4139,385
Effective tax rate0.80%41.74%Effective tax rate0.80%43.21%41.74%
Net income (loss)$ (12,660)$ 6,691$ 1,240$ 9,540$ 6,511$ 2,624$ (846)$ 13,100Net income (loss)$ (12,660)$ 6,691$ 1,240$ 9,540$ 6,511$ (846)$ 10,476$ 2,624$ 13,100
Net margin-3.8%4.0%Net margin-3.8%3.2%4.0%
Weighted Average Shares O/S(j)30,71831,25331,25331,25331,25331,25331,25331,253Weighted Average Shares O/S(j)30,71831,25331,25331,25331,25331,25331,25331,25331,253
EPS(i)$ (0.41)$ 0.21$ 0.04$ 0.31$ 0.21$ 0.08$ (0.03)$ 0.42EPS(i)$ (0.41)$ 0.21$ 0.04$ 0.31$ 0.21$ (0.03)$ 0.34$ 0.08$ 0.42
2Q16
Integer Holdings Corporation
Non-GAAP Adjustments - 2 views
2Q16
THREE MONTHS ENDEDGAAPNon-GAAP Adj.Non-GAAPSIX MONTHS ENDEDGAAPNon-GAAP Adj.Non-GAAPNon-GAAP Adj.Non-GAAP
Income Statement2Q16 ActualAmortizationLitigation RelatedCharges(b)Consolidation & Optimization(c)(e)Acquisition & Integration(d)Debt / Investment RelatedCharges2Q16 AdjustedIncome Statement2Q16 ActualAmortizationLitigation RelatedCharges(b)Consolidation & Optimization(c)(e)Acquisition & Integration(d)Debt / Investment RelatedCharges2Q16 Adjusted as reportedNuvectraSpin(i)2Q16 Adjusted revised
Sales$ 348,382$ 348,382Sales$ 680,620$ - 0$ - 0$ - 0$ - 0$ - 0$ 680,620$ (1,180)$ 679,440
Cost of sales252,351(4,240)248,111Cost of sales493,121(8,480)- 00- 0- 0484,641(526)484,115
Gross profit$ 96,031$ 4,240$ - 0$ - 0$ - 0$ - 0$ 100,271Gross profit$ 187,499$ 8,480$ - 0$ - 0$ - 0$ - 0$ 195,979$ (654)$ 195,325
Gross margin27.6%28.8%Gross margin27.5%28.8%28.7%
Operating expenses:Operating expenses:
SG&A37,628(5,123)(285)32,220SG&A79,516(10,259)(2,192)- 0- 0- 067,065(1,861)65,204
SG&A as a % of revenues10.8%9.2%SG&A as a % of revenues22.8%9.9%9.6%
Research, development & engineering13,640(151)13,489Research, development & engineering30,946(239)- 0- 0- 0- 030,707(2,830)27,877
RD&E as a % of revenues3.9%3.9%RD&E as a % of revenues8.9%4.5%4.1%
Other operating expense15,494(7,635)(7,859)- 0Other operating expense36,634- 0- 0(18,810)(17,824)- 0- 0- 0- 0
Operating income$ 29,269$ 9,514$ 285$ 7,635$ 7,859$ - 0$ 54,562Operating income$ 40,403$ 18,978$ 2,192$ 18,810$ 17,824$ - 0$ 98,207$ 4,037$ 102,244
Operating margin8.4%15.7%Operating margin5.9%14.4%15.0%
Other (income) & expenses:Other (income) & expenses:
Interest expense27,90827,908Interest expense55,525- 0- 00- 0- 055,525- 055,525
Interest income- 0Interest income- 0- 0- 0- 0- 0- 0- 0- 0- 0
Other (income) loss, net674(124)550Other (income) loss, net(3,047)- 0- 00- 01,177(1,870)- 0(1,870)
Loss before income taxes$ 687$ 9,514$ 285$ 7,635$ 7,859$ 124$ 26,104Loss before income taxes$ (12,075)$ 18,978$ 2,192$ 18,810$ 17,824$ (1,177)$ 44,552$ 4,037$ 48,589
Provision for income taxes(a)1,4572,7821001,4632,714438,559Provision for income taxes(a)1,3555,5557673,0986,168(412)16,5311,41317,944
Effective tax rate212.08%32.79%Effective tax rate-11.22%37.10%36.93%
Net income (loss)$ (770)$ 6,732$ 185$ 6,172$ 5,145$ 81$ - 0$ 17,545Net income (loss)$ (13,430)$ 13,423$ 1,425$ 15,712$ 11,656$ (765)$ - 0$ 28,021$ 2,624$ 30,645
Net margin-0.2%5.0%Net margin-2.0%4.1%4.5%
Weighted Average Shares O/S(h)30,76731,22831,22831,22831,22831,22831,228Weighted Average Shares O/S(h)30,74331,25731,25731,25731,25731,25731,25731,25731,257
EPS(g)$ (0.03)$ 0.22$ 0.01$ 0.20$ 0.16$ 0.00$ 0.56EPS(g)$ (0.44)$ 0.43$ 0.05$ 0.50$ 0.37$ (0.02)$ 0.90$ 0.08$ 0.98
3Q16
Integer Holdings Corporation
Non-GAAP Adjustments - 2 views
3Q16
THREE MONTHS ENDEDGAAPNon-GAAP Adj.(a)Non-GAAPNINE MONTHS ENDEDGAAPNon-GAAP Adj.(a)Non-GAAP
Income Statement3Q16 ActualAmortizationLitigation RelatedCharges(b)Consolidation & Optimization(c)(e)Acquisition & Integration(d)TaxAdjustment(g)Debt / Investment RelatedCharges3Q16 AdjustedIncome Statement3Q16 ActualAmortizationLitigation RelatedCharges(b)Consolidation & Optimization(c)(e)Acquisition & Integration(d)NuvectraSpin(h)TaxAdjustment(g)Debt / Investment RelatedCharges3Q16 Adjusted
Sales$ 346,567$ 346,567Sales$ 1,027,187$ - 0$ - 0$ - 0$ - 0$ (1,180)$ - 0$ - 0$ 1,026,007
Cost of sales248,658(4,228)244,430Cost of sales741,779(12,708)- 0- 0- 0(526)- 0- 0728,545
Gross profit$ 97,909$ 4,228$ - 0$ - 0$ - 0$ - 0$ 102,137Gross profit$ 285,408$ 12,708$ - 0$ - 0$ - 0$ (654)$ - 0$ - 0$ 297,462
Gross margin28.3%29.5%Gross margin27.8%29.0%
Operating expenses:Operating expenses:
SG&A36,265(5,109)(499)30,657SG&A115,781(15,368)(2,691)- 0- 0(1,861)- 0- 095,861
SG&A as a % of revenues10.5%8.8%SG&A as a % of revenues33.4%9.3%
Research, development & engineering11,412(136)11,276Research, development & engineering42,358(375)- 0- 0- 0(2,830)- 0- 039,153
RD&E as a % of revenues3.3%3.3%RD&E as a % of revenues12.2%3.8%
Other operating expense13,370(8,051)(5,319)- 0Other operating expense50,004- 0- 0(26,861)(23,143)- 0- 0- 0- 0
Operating income$ 36,862$ 9,473$ 499$ 8,051$ 5,319$ - 0$ - 0$ 60,204Operating income$ 77,265$ 28,451$ 2,691$ 26,861$ 23,143$ 4,037$ - 0$ - 0$ 162,448
Operating margin10.6%17.4%Operating margin7.5%15.8%
Other (income) & expenses:Other (income) & expenses:
Interest expense27,87027,870Interest expense83,395- 0- 0- 0- 0- 0- 0- 083,395
Interest income- 0- 0Interest income- 0- 0- 0- 0- 0- 0- 0- 0- 0
Other (income) loss, net275(245)30Other (income) loss, net(2,772)- 0- 0- 0- 0- 0- 0932(1,840)
Loss before income taxes$ 8,717$ 9,473$ 499$ 8,051$ 5,319$ - 0$ 245$ 32,304Loss before income taxes$ (3,358)$ 28,451$ 2,691$ 26,861$ 23,143$ 4,037$ - 0$ (932)$ 80,893
Provision for income taxes(2,741)2,7711751,6061,8272,784866,508Provision for income taxes(1,386)8,3269424,7047,9951,4132,784(326)24,452
Effective tax rate-31.44%20.15%Effective tax rate41.27%30.23%
Net income (loss)$ 11,458$ 6,702$ 324$ 6,445$ 3,492$ (2,784)$ 159$ - 0$ 25,796Net income (loss)$ (1,972)$ 20,125$ 1,749$ 22,157$ 15,148$ 2,624$ (2,784)$ (606)$ 56,441
Net margin3.3%7.4%Net margin-0.2%5.5%
Weighted Average Shares O/S31,15331,15331,15331,15331,15331,15331,15331,153Weighted Average Shares O/S(i)(j)30,75631,21131,21131,21131,21131,21131,21131,21131,211
EPS$ 0.37$ 0.22$ 0.01$ 0.21$ 0.11$ (0.09)$ 0.01$ 0.83EPS$ (0.06)$ 0.64$ 0.06$ 0.71$ 0.49$ 0.08$ (0.09)$ (0.02)$ 1.81
4Q16
Integer Holdings Corporation
Non-GAAP Adjustments - 2 views
4Q16
THREE MONTHS ENDEDGAAPNon-GAAP Adj.(a)Non-GAAPTWELVE MONTHS ENDEDGAAPNon-GAAP Adj.(a)Non-GAAP
Income Statement4Q16 ActualAmortizationLitigation Related Charges(b)Consolidation & Optimization(c)(e)Acquisition & Integration(d)Tax Adjustments(g)Debt / Investment Related Charges4Q16 AdjustedIncome Statement4Q16 ActualAmortizationLitigation Related Charges(b)Consolidation & Optimization(c)(e)Acquisition & Integration(d)Tax Adjustments(g)Debt / Investment Related Charges4Q16 Adjusted
Sales$ 359,591$ 359,591Sales
Cost of sales266,700(4,061)262,639Cost of sales
Gross profit$ 92,891$ 4,061$ - 0$ - 0$ - 0$ - 0$ 96,952Gross profit
Gross margin25.8%27.0%Gross margin
Operating expenses:Operating expenses:
SG&A37,510(5,213)(349)31,948SG&A
SG&A as a % of revenues10.4%8.9%SG&A as a % of revenues
Research, development & engineering12,643(137)12,506Research, development & engineering
RD&E as a % of revenues3.5%3.5%RD&E as a % of revenues
Other operating expense11,733(6,560)(5,173)- 0Other operating expense
Operating income$ 31,005$ 9,411$ 349$ 6,560$ 5,173$ - 0$ - 0$ 52,498Operating income
Operating margin8.6%14.6%Operating margin
Other (income) & expenses:Other (income) & expenses:
Interest expense27,87527,875Interest expense
Interest (income) Loss1,765(1,765)- 0Interest (income) Loss
Other (income) loss, net(3,178)(3,178)Other (income) loss, net
Loss before income taxes$ 4,543$ 9,411$ 349$ 6,560$ 5,173$ - 0$ 1,765$ 27,801Loss before income taxes
Provision for income taxes(3,390)2,7651221,3751,767(2,630)618627Provision for income taxes
Effective tax rate-74.62%2.26%Effective tax rate
Net income (loss)$ 7,933$ 6,646$ 227$ 5,185$ 3,406$ 2,630$ 1,147$ - 0$ 27,174Net income (loss)
Net margin2.2%7.6%Net margin
Weighted Average Shares O/S(j)31,25431,25431,25431,25431,25431,25431,25431,254Weighted Average Shares O/S
EPS(h)$ 0.25$ 0.21$ 0.01$ 0.17$ 0.11$ 0.08$ 0.04$ 0.87EPS
FY16
Integer Holdings Corporation
Non-GAAP Adjustments - 2 views
Full-Year 2016
TWELVE MONTHS ENDEDGAAPNon-GAAP Adj.(a)Non-GAAP
Income StatementFY16 ActualAmortizationLitigation RelatedCharges(b)Consolidation & Optimization(c)(e)Acquisition & Integration(d)NuvectraSpin(i)TaxAdjustment(g)Debt / Investment RelatedChargesFY16 Adjusted
Sales$ 1,386,778$ (1,180)$ - 0$ - 0$ 1,385,598
Cost of sales1,008,479(16,769)- 00- 0(526)- 0- 0991,184
Gross profit$ 378,299$ 16,769$ - 0$ - 0$ - 0$ (654)$ - 0$ - 0$ 394,414
Gross margin27.3%28.5%
Operating expenses:
SG&A153,291(20,581)(3,040)- 0- 0(1,861)- 0- 0127,809
SG&A as a % of revenues11.1%9.2%
Research, development & engineering55,001(512)- 0- 0- 0(2,830)- 0- 051,659
RD&E as a % of revenues4.0%3.7%
Other operating expense61,737- 0- 0(33,421)(28,316)- 0- 0- 0- 0
Operating income$ 108,270$ 37,862$ 3,040$ 33,421$ 28,316$ 4,037$ - 0$ - 0$ 214,946
Operating margin7.8%15.5%
Other (income) & expenses:
Interest expense111,270- 0- 0- 0- 0- 0- 0111,270
Interest income1,765- 0- 0- 0- 0- 0(1,765)- 0
Other (income) loss, net(5,950)- 0- 0- 0- 0- 0932(5,018)
Loss before income taxes$ 1,185$ 37,862$ 3,040$ 33,421$ 28,316$ 4,037$ - 0$ 833$ 108,694
Provision for income taxes(4,776)11,0911,0646,0799,7621,41315429225,079
Effective tax rate-403.04%23.07%
Net income (loss)$ 5,961$ 26,771$ 1,976$ 27,342$ 18,554$ 2,624$ (154)$ 541$ - 0$ 83,615
Net margin0.4%6.0%
Weighted Average Shares O/S(j)30,97331,22231,22231,22231,22231,22231,22231,22231,222
EPS(h)$ 0.19$ 0.86$ 0.06$ 0.88$ 0.59$ 0.08$ (0.01)$ 0.02$ 2.68
1Q17
Integer Holdings Corporation
Non-GAAP Adj. Net Income - 2 views
1Q17
THREE MONTHS ENDEDGAAPNon-GAAP Adj.(a)Non-GAAPNon-GAAP
Income Statement1Q17 ActualAmortizationLitigation Related Charges(b)Consolidation & Optimization(c)(e)Acquisition & Integration(d)Debt / Investment Related Charges(f)1Q17 Adjusted1Q16 Adjusted
Sales$ 345,413$ 345,413$ 331,058
Cost of sales254,187(4,084)250,103236,004
Gross profit$ 91,226$ 4,084$ - 0$ - 0$ - 0$ - 0$ 95,310$ 95,0540.3%
Gross margin26.4%27.6%28.7%
Operating expenses:
SG&A39,499(6,758)(377)32,36432,932
SG&A as a % of revenues11.4%9.4%9.9%
Research, development & engineering13,411(136)13,27514,440
RD&E as a % of revenues3.9%3.8%4.3%
Other operating expense11,771(6,951)(4,820)- 0- 0
Operating income$ 26,545$ 10,978$ 377$ 6,951$ 4,820$ - 0$ 49,671$ 47,6824.2%
Operating margin7.7%14.4%14.4%
Other (income) & expenses:
Interest expense28,893(1,559)27,33427,617
Interest income- 0- 0- 0
Other (income) loss, net1,847(398)1,449(2,420)3,869
Loss before income taxes$ (4,195)$ 10,978$ 377$ 6,951$ 4,820$ 1,957$ 20,888$ 22,485-7.1%
Provision for income taxes1443,2321322,0951,6876857,9759,385
Effective tax rate-3.43%38.18%41.74%
Net income (loss)$ (4,339)$ 7,746$ 245$ 4,856$ 3,133$ 1,272$ - 0$ 12,913$ 13,100-1.4%
Net margin-1.3%3.7%4.0%
Weighted Average Shares O/S(h)31,01631,68531,68531,68531,68531,68531,68531,253
EPS$ (0.14)$ 0.24$ 0.01$ 0.15$ 0.10$ 0.04$ 0.41$ 0.42
Net Income AdjustmentsPost-TAXPre-TAX$ 0.04$ (0.06)$ 0.10
Inventory step-up amortization- 0- 01,159(1,936.0)3,095
Amortization of intangibles7,74610,97814,07211,1642,90826%
IP related litigation 245377$ 0.45$ 0.36$ 0.0927%
Consolidation and optimization expenses (OOE)1,8992,395
Acqusition and integration expenses (OOE)3,1334,820
Asset dispositions, severance and other (OOE)2,9574,556
Lake Region Medical transaction costs
Loss (gain) on cost and equity method investments, net 259398
Loss on extinguishment of debt1,0131,559
Tax adjustments- 0
Comparable basis adjustments, net- 0
Adjusted Net Income (Non-GAAP)$ 12,913
Adjusted EPS (Non-GAAP)$ 0.42
2Q17
Integer Holdings Corporation
Non-GAAP Adj. Net Income
2Q17
GAAPNon-GAAP Adj.(a)Non-GAAPNon-GAAP
Income Statement2Q17 ActualAmortizationLitigation Related Charges(b)Consolidation & Optimization(c)(e)Acquisition & Integration(d)Debt / Investment Related Charges(f)2Q17 Adjusted2Q16 Adjusted
Sales$ 362,719$ 362,719$ 348,3824.1%
Cost of sales263,447(4,111)259,336248,111
Gross profit$ 99,272$ 4,111$ - 0$ - 0$ - 0$ - 0$ 103,383$ 100,2713.1%
Gross margin27.4%28.5%28.8%
Operating expenses:
SG&A39,724(6,799)(915)32,01032,220
SG&A as a % of revenues11.0%8.8%9.2%
Research, development & engineering12,889(136)12,75313,489
RD&E as a % of revenues3.6%3.5%3.9%
Other operating expense6,920(3,950)(2,970)- 0- 0
Operating income$ 39,739$ 11,046$ 915$ 3,950$ 2,970$ - 0$ 58,620$ 54,5627.4%
Operating margin11.0%16.2%15.7%
Other (income) & expenses:
Interest expense25,647(935)24,71227,908
Interest income- 0- 0- 0
Other (income) loss, net9,976(4,427)5,5495504,999413
Loss before income taxes$ 4,116$ 11,046$ 915$ 3,950$ 2,970$ 5,362$ 28,359$ 26,1048.6%0.01
Provision for income taxes1,1263,2313201,1309331,8778,6178,559
Effective tax rate27.36%30.39%32.79%
Net income (loss)$ 2,990$ 7,815$ 595$ 2,820$ 2,037$ 3,485$ - 0$ 19,742$ 17,54512.5%
Net margin0.8%5.4%5.0%
Weighted Average Shares O/S(h)31,98231,98231,98231,98231,98231,98231,98231,228
EPS$ 0.09$ 0.24$ 0.02$ 0.09$ 0.06$ 0.11$ 0.62$ 0.56
3Q17
Integer Holdings Corporation
Non-GAAP Adj. Net Income - 2 views
3Q17
GAAPNon-GAAP Adj.(a)Non-GAAPNon-GAAP
Income Statement3Q17 RF4AmortizationLitigation Related Charges(b)Consolidation & Optimization(c)(e)Acquisition & Integration(d)Debt / Investment Related Charges(f)3Q17 RF4 Adjusted3Q16 Adjusted
Sales$ 364,870$ 364,870$ 346,567
Cost of sales259,379(4,054)255,325244,430
Gross profit$ 105,491$ 4,054$ - 0$ - 0$ - 0$ - 0$ 109,546$ 102,1377.3%
Gross margin28.9%30.0%29.5%
Operating expenses:
SG&A41,717(6,887)(800)34,03030,657
SG&A as a % of revenues11.4%9.3%8.8%
Research, development & engineering13,583(33)13,55011,276
RD&E as a % of revenues3.7%3.7%3.3%
Other operating expense5,459(5,459)- 0- 0- 0
Operating income$ 44,731$ 10,975$ 800$ 5,459$ - 0$ - 0$ 61,965$ 60,2042.9%
Operating margin12.3%17.0%17.4%
Other (income) & expenses:
Interest expense25,131- 025,13127,870
Interest income- 0- 0- 0
Other (income) loss, net- 0- 0- 030(30)
Loss before income taxes$ 19,600$ 10,975$ 800$ 5,459$ - 0$ - 0$ 36,834$ 32,30414.0%
Provision for income taxes2,2763,2922801,802- 0- 07,6506,508
Effective tax rate11.61%20.77%20.15%
Net income (loss)$ 17,324$ 7,682$ 520$ 3,658$ - 0$ - 0$ - 0$ 29,184$ 25,79613.1%
Net margin4.7%8.0%7.4%
Weighted Average Shares O/S(h)31,70031,70031,70031,70031,70031,70031,70031,153
EPS$ 0.55$ 0.24$ 0.02$ 0.12$ - 0$ - 0$ 0.92$ 0.83
4Q17
Integer Holdings Corporation
Non-GAAP Adj. Net Income - 2 views
4Q17
GAAPNon-GAAP Adj.(a)Non-GAAPNon-GAAP
Income Statement4Q17 RF4AmortizationLitigation Related Charges(b)Consolidation & Optimization(c)(e)Acquisition & Integration(d)Debt / Investment Related Charges(f)4Q17 RF4 Adjusted4Q16 Adjusted
Sales$ 346,741$ 346,741$ 331,058
Cost of sales250,080(4,054)246,025236,004
Gross profit$ 96,662$ 4,054$ - 0$ - 0$ - 0$ - 0$ 100,716$ 95,0546.0%
Gross margin27.9%29.0%28.7%
Operating expenses:
SG&A41,050(6,885)(400)33,76532,932
SG&A as a % of revenues11.8%9.7%9.9%
Research, development & engineering13,711(33)13,67814,440
RD&E as a % of revenues4.0%3.9%4.3%
Other operating expense4,688(4,688)- 0- 0- 0
Operating income$ 37,212$ 10,973$ 400$ 4,688$ - 0$ - 0$ 53,273$ 47,68211.7%
Operating margin10.7%15.4%14.4%
Other (income) & expenses:
Interest expense24,674- 024,67427,617
Interest income- 0- 0- 0
Other (income) loss, net- 0- 0- 0(2,420)2,420
Loss before income taxes$ 12,538$ 10,973$ 400$ 4,688$ - 0$ - 0$ 28,599$ 22,48527.2%
Provision for income taxes2,2763,2921401,547- 0- 07,2559,385
Effective tax rate18.15%25.37%41.74%
Net income (loss)$ 10,262$ 7,681$ 260$ 3,141$ - 0$ - 0$ - 0$ 21,344$ 13,10062.9%
Net margin3.0%6.2%4.0%
Weighted Average Shares O/S(h)31,70031,70031,70031,70031,70031,70031,70031,253
EPS$ 0.32$ 0.24$ 0.01$ 0.10$ - 0$ - 0$ 0.67$ 0.42
FY17
Integer Holdings Corporation
Non-GAAP Adjustments - 2 views
Full-Year 2017
GAAPNon-GAAP Adj.Non-GAAPNon-GAAP
Income StatementFY17 RF4AmortizationLitigation Related ChargesConsolidation & OptimizationAcquisition & IntegrationDebt / Investment Related ChargesFY17 RF4 AdjustedFY16 Adjusted
Sales$ 1,419,744$ 1,419,744$ 1,385,598
Cost of sales1,027,093(16,304)- 0- 0