Core Viewpoint - Integer Holdings Corporation has announced the pricing of an upsized offering of $875 million in 1.875% convertible senior notes due 2030, indicating strong market interest and financial strategy [1][2]. Offering Details - The offering was increased from an initial size of $750 million to $875 million, with an option for initial purchasers to buy an additional $125 million [1][2]. - The expected closing date for the offering is March 18, 2025, pending customary closing conditions [2]. Financial Proceeds and Use - The net proceeds from the offering are anticipated to be approximately $853.9 million, or $976.1 million if the additional notes option is fully exercised [4]. - Approximately $62.1 million of the net proceeds will be allocated to cover the costs of capped call transactions [4]. - The remainder of the proceeds will be used for repaying borrowings, accrued interest, and general corporate purposes [6]. Convertible Notes Characteristics - The convertible notes will have a 1.875% annual interest rate, payable semi-annually, and will mature on March 15, 2030 [7]. - The initial conversion price is set at approximately $150.96 per share, representing a 27.5% premium over the common stock's closing price of $118.40 on March 13, 2025 [7]. - The conversion rate will be 6.6243 shares of common stock per $1,000 principal amount of convertible notes [7]. Capped Call Transactions - The company has entered into capped call transactions to mitigate potential dilution from the convertible notes [10]. - The cap price for these transactions is set at $189.44 per share, a 60% premium over the last reported sale price of the common stock [3]. Note Exchange Transactions - Concurrently, the company is engaging in note exchange transactions to exchange approximately $383.7 million of existing convertible senior notes due 2028 [5]. - The company expects to issue around 1.6 million shares of common stock as part of these transactions [5]. Market Impact - The activities related to the convertible notes and capped call transactions may influence the market price of the company's common stock, potentially affecting the conversion price of the notes [11][12].

Core Viewpoint - Integer Holdings Corporation plans to offer $750 million in convertible senior notes due 2030, with an option for initial purchasers to buy an additional $125 million [1][2]. Group 1: Offering Details - The convertible notes will be senior unsecured obligations, maturing on March 15, 2030, and will accrue interest payable semi-annually [5]. - The company intends to use part of the net proceeds to pay for capped call transactions and to exchange existing convertible senior notes due 2028 [3][4]. - The notes will be convertible under specific conditions before December 15, 2029, and at any time thereafter until two trading days before maturity [5]. Group 2: Capped Call Transactions - Capped call transactions are expected to reduce potential dilution of the company's common stock upon conversion of the notes [7]. - The company anticipates that option counterparties will engage in stock transactions that could influence the market price of the company's common stock [8][9]. Group 3: Note Exchange Transactions - The company plans to enter into note exchange transactions with holders of existing convertible notes, which may lead to significant market activity affecting the stock price [10][11]. - The company will terminate existing capped call transactions corresponding to the amount of existing notes exchanged, which may also impact the market price of the common stock [11]. Group 4: Company Overview - Integer Holdings Corporation is a leading medical device contract development and manufacturing organization, serving various markets including cardiac rhythm management and neuromodulation [14].

Integer (ITGR) shares rallied 3.8% in the last trading session to close at $122.73. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 15.2% loss over the past four weeks.The recent surge in Integer Holdings shares can be attributed to the company's upbeat 2025 outlook and continued execution of its growth strategy, as highlighted at the Raymond James Conference. The company's strong guidance, projecting 8%-10% ...

Core Viewpoint - Integer Holdings Corporation (ITGR) demonstrated solid revenue growth in Q4 2024, with revenues of $449.5 million, an increase of 8.8% year over year, although EPS of $1.43 missed estimates by 3 cents due to short-term cost pressures [1][2] Financial Performance - Q4 2024 revenues reached $449.5 million, marking an 8.8% year-over-year increase [1] - EPS for Q4 2024 was $1.43, missing estimates by 3 cents [1] - For 2025, ITGR projects sales growth of 8-10% and adjusted operating income growth of 11-16% [1] Stock Performance - ITGR's share price has declined by 4.4% since February 20, following the earnings release [2] - Over the past year, ITGR shares have increased by 18%, compared to the industry’s growth of 1.7% [2] - The current P/E forward 12-month ratio for ITGR is 20.9X, below the industry average of 32.01X, but above its five-year median of 18.53X [5] Growth Drivers - Organic sales are expected to grow by 6-8% in 2025, outpacing the estimated market growth of 4-6% [8] - New product launches and strong demand in high-growth segments like electrophysiology and structural heart are key contributors [8] - Recent acquisitions, including Precision Coating for $152 million and VSi Parylene for $28 million, are projected to add $59 million in revenues in 2025 [9] - Manufacturing efficiencies are expected to drive adjusted operating income growth of 11-16% in 2025 [10] - Investments in renal denervation and next-gen cardiac devices position the company well for future demand [11] Challenges - Potential headwinds from new U.S. tariffs on imports could complicate operations, especially with significant manufacturing in Mexico [16] - Initial inefficiencies and workforce training related to scaling new product lines may pressure gross margins in early 2025 [17] Earnings Estimates - Mixed performance in earnings estimates, with Q1 2025 EPS estimate declining by 3% while Q2 improved by 1.4% [12] - Full-year 2025 EPS estimate remains unchanged at $6.01, with projected sales growth of 7.5% and EPS growth of 13.4% [12]

Core Viewpoint - Integer Holdings Corporation (ITGR) reported mixed financial results for the fourth quarter of 2024, with adjusted earnings per share (EPS) slightly missing estimates, while revenues exceeded expectations, indicating strong performance in most product lines despite some challenges in Other Markets [1][3][16]. Financial Performance - Adjusted EPS for Q4 2024 was $1.43, a 1.4% increase year over year, but missed the Zacks Consensus Estimate by 2.1% [1] - GAAP EPS for the quarter was 91 cents, reflecting a 15.2% year-over-year improvement [2] - Full-year 2024 EPS was $5.30, up 14.9% from 2023, but lagged the Zacks Consensus Estimate by 0.6% [2] Revenue Analysis - Q4 2024 revenues reached $449.5 million, an 11.1% increase year over year, surpassing the Zacks Consensus Estimate by 0.8% [3] - Organic revenue growth for Q4 was 10.6% [3] - Full-year 2024 revenues totaled $1.72 billion, reflecting a 10.3% increase from 2023, aligning with the Zacks Consensus Estimate [3] Segment Performance - Cardio and Vascular (C&V) revenues were $255.3 million, up 14.7% year over year [7] - Cardiac Rhythm Management & Neuromodulation (CRM&N) revenues were $170.5 million, up 11.3% year over year [8] - Other Markets revenues were $23.7 million, down 17.3% year over year, attributed to the planned exit from Portable Medical [9] Margin and Expense Analysis - Gross profit for Q4 was $116.8 million, a 6.6% increase year over year, but gross margin contracted to 25.9% [10] - Selling, general and administrative expenses rose to $47.5 million, up 4.8% year over year [11] - Adjusted operating profit was $58.7 million, reflecting a 14.6% increase year over year, with adjusted operating margin expanding to 13.1% [11] Financial Position - Cash and cash equivalents at the end of 2024 were $46.5 million, up from $23.7 million at the end of 2023 [12] - Total debt increased to $990.2 million from $959.9 million at the end of 2023 [12] - Cumulative net cash flow from operating activities was $205.2 million, compared to $180.2 million a year ago [12] Future Guidance - For 2025, the company expects revenues between $1.846 billion and $1.880 billion, indicating an 8-10% improvement from 2024 [13] - Full-year adjusted EPS is projected to be in the range of $5.84-$6.20, representing a 10-17% increase from 2024 [13] Strategic Developments - The company continues to execute its strategy by launching new products and expanding capabilities, including the acquisition of Precision Coating and a definitive agreement to acquire VSi Parylene [15] - Management has rebranded its Advanced Surgical, Orthopedics & Portable Medical product line to Other Markets to better reflect its strategic focus [6]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________ FORM 10-K _____________________________________ ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Fiscal Year Ended December 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ ...

Integer Holdings Corporation Fourth Quarter 2024 Earnings Conference Call February 20, 2025 Integer Holdings Corporation Fourth Quarter 2024 Earnings Conference Call 9 a.m. Eastern Time, February 20, 2025 Management Attendees: Joe Dziedzic President and Chief Executive Officer Andrew Senn Senior Vice President, Strategy, Business Development & Investor Relations Kristen Stewart, CFA Director, Investor Relations ITGR: 4Q24 Earnings Conference Call | February 20, 2025 | Page 2 Diron Smith Executive Vice Presi ...

Financial Data and Key Metrics Changes - Integer reported fourth quarter sales of $449 million, reflecting an 11% year-over-year growth on both an organic and reported basis [38] - For the full year 2024, sales reached $1.717 billion, representing a 10% increase year-over-year [41] - Adjusted operating income for 2024 was $285 million, up 20% compared to the prior year, which is two times the sales growth rate [41][61] - Adjusted net income for Q4 2024 was $51 million, a 6% increase year-over-year, resulting in adjusted diluted earnings per share of $1.43 [40] Business Line Data and Key Metrics Changes - Cardio and vascular product line sales increased by 14% year-over-year, driven by new product ramps in electrophysiology and structural heart [43] - Cardiac Rhythm Management and Neuromodulation sales increased by 8% year-over-year, with double-digit growth in neuromodulation [44] - The divestiture of the Portable Medical product line is expected to be completed by Q4 2025, which is part of the strategy to focus on higher growth markets [15] Market Data and Key Metrics Changes - Integer expects organic sales growth to continue above market rates at 6% to 8% for 2025, which is 200 basis points above the underlying market growth rate of 4% to 6% [52] - The company anticipates reported sales growth in Q1 2025 to approximate the full-year growth rate of 8% to 10% [57] Company Strategy and Development Direction - Integer's strategy focuses on sustaining above-market growth with expanding margins, targeting at least 200 basis points above market growth [14][61] - The company aims to optimize its portfolio and product line strategies to shift towards higher growth markets [12][25] - Recent acquisitions, including Precision Coatings and VSI Parylene, are intended to enhance vertical integration and proprietary capabilities [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continuing strong performance into 2025, with an outlook of 8% to 10% sales growth and 11% to 16% increase in adjusted operating income [61] - The operational environment has stabilized, allowing the company to focus on manufacturing excellence initiatives to expand margins [16] - Management highlighted the importance of a robust product development pipeline, with a 270% increase in product development sales since 2017 [28][34] Other Important Information - Integer ended 2024 with a strong sales backlog of $728 million, significantly above pre-pandemic levels [56] - The company expects to generate free cash flow between $110 million and $130 million in 2025, reflecting continued investment in capabilities and capacity [59] Q&A Session Summary Question: Guidance on cardiovascular segment growth - Management expects cardiovascular sales to grow in the low double-digit range for 2025, driven by success in targeted high-growth markets [68] Question: Background on Precision Coating acquisition - The acquisition was part of a long-term strategy to enhance capabilities in high-growth markets, with coatings identified as a key area for development [72][76] Question: Exposure to tariffs, particularly in Mexico - Management is preparing for potential tariffs and implementing operational changes to mitigate impacts, but specifics remain uncertain [81][100] Question: Contribution from high-growth markets in CMV - Management confirmed that underlying markets like electrophysiology and structural heart are expected to contribute significantly to growth, with guidance for cardiovascular sales to remain strong [90][92] Question: Gross margin performance in Q4 - Management noted that new product ramps and associated inefficiencies impacted gross margins, but they expect improvements as operations stabilize [122][128]

分组1 - Integer reported quarterly earnings of $1.43 per share, missing the Zacks Consensus Estimate of $1.46 per share, but showing an increase from $1.39 per share a year ago, resulting in an earnings surprise of -2.05% [1] - The company posted revenues of $449.5 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.75% and increasing from $413.15 million year-over-year [2] - Integer has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates two times in the same period [2] 分组2 - The stock has gained approximately 8.1% since the beginning of the year, outperforming the S&P 500's gain of 4.5% [3] - The current consensus EPS estimate for the upcoming quarter is $1.33 on revenues of $440.88 million, and for the current fiscal year, it is $6.01 on revenues of $1.85 billion [7] - The Medical - Instruments industry, to which Integer belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - Fourth quarter 2024 sales increased by 11% to $449 million, with GAAP income from continuing operations rising 23% to $33 million[6] - Full year 2024 sales reached $1.717 billion, a 10% increase year-over-year, with GAAP income from continuing operations up 36% to $121 million[6] - Adjusted net income for 2025 is projected to be between $221 million and $242 million, a 20% increase year-over-year[10] - Adjusted net income for Q4 2024 was $61,016,000, representing a 8.3% increase from $56,139,000 in Q4 2023[40] - For the year ended December 31, 2024, adjusted net income was $224,747,000, up from $188,895,000 in 2023[40] - Basic earnings per share for 2024 was $3.57, up 31.2% from $2.72 in 2023[36] - Diluted EPS for Q4 2024 was $1.43, compared to $1.41 in Q4 2023, reflecting a 1.4% increase[40] Sales Growth - Integer expects sales growth of 8% to 10% in 2025, with adjusted operating income projected to grow 11% to 16%[8] - Cardio & Vascular sales increased by 15% in Q4 2024 compared to Q4 2023, driven by new product ramps and acquisitions[11] - Total sales growth for Q4 2024 was reported at 11.1%, with organic sales change at 10.6% after excluding foreign currency impacts and acquisitions[57] - Cardio & Vascular segment experienced a QTD sales growth of 14.7%, while Cardiac Rhythm Management & Neuromodulation grew by 11.3%[57] - The Cardio & Vascular segment showed a year-to-date sales growth of 13.5%, while Cardiac Rhythm Management & Neuromodulation grew by 7.8%[57] - Other Markets segment reported a year-to-date sales change of -4.8%[57] Acquisitions - The acquisition of Precision Coating was completed for approximately $152 million, with expected sales of $52 million in 2025[6] - Integer signed a purchase agreement to acquire VSi Parylene for approximately $28 million, anticipating sales of $7 million in 2025[6] Debt and Liquidity - Total debt increased to $990 million, with a leverage ratio of 2.6 times adjusted EBITDA as of December 31, 2024[6] - Long-term debt stood at $980,153,000 in 2024, slightly up from $959,925,000 in 2023, indicating a stable debt position[34] - Cash and cash equivalents rose significantly to $46,543,000 in 2024, up from $23,674,000 in 2023, indicating improved liquidity[34] - Cash flow from operating activities generated $205 million in 2024, with expectations for $245 million in 2025[6] - Net Total Debt (Non-GAAP) as of December 31, 2024, was $954,451 thousand, slightly up from $950,326 thousand in 2023[58] - Total principal amount of debt outstanding increased to $1,000,994 thousand in 2024 from $974,000 thousand in 2023[58] Operating Performance - Gross profit for the year ended December 31, 2024, was $459,014 thousand, up 12.0% from $409,889 thousand in 2023[36] - Operating income increased to $208,238 thousand for the year 2024, representing a 27.5% rise compared to $163,323 thousand in 2023[36] - Operating income for Q4 2024 was $57,032,000, up 31% from $43,532,000 in Q4 2023[53] - EBITDA for Q4 2024 reached $81,419,000, a 21.8% increase from $66,810,000 in Q4 2023[54] Expenses and Charges - Research and development expenses decreased to $53,425 thousand in 2024 from $61,967 thousand in 2023, a decline of 13.4%[36] - The company incurred interest expenses of $56,374 thousand for the year 2024, an increase from $51,275 thousand in 2023[36] - Restructuring charges for Q4 2024 were $1,517,000, down from $4,787,000 in Q4 2023[53] - Acquisition and integration costs for Q4 2024 totaled $533,000, compared to $1,729,000 in Q4 2023[53] - Stock-based compensation expense for the year was $24,449 thousand, compared to $23,035 thousand in the previous year[55] - Restructuring and restructuring-related charges totaled $7,255 thousand for the year, down from $9,949 thousand[55] - Loss on equity investments was reported at $780 thousand for the year, a decrease from $5,691 thousand[55] Assets and Equity - Total assets increased to $3,077,971,000 in 2024 from $2,942,653,000 in 2023, representing a growth of approximately 4.6%[34] - Total current assets increased to $671,119,000 in 2024, compared to $617,668,000 in 2023, reflecting a growth of about 8.6%[34] - Retained earnings increased to $891,247,000 in 2024 from $771,351,000 in 2023, showing a growth of approximately 15.5%[35] - The company reported a total stockholders' equity of $1,619,215,000 in 2024, up from $1,519,042,000 in 2023, reflecting a growth of about 6.6%[35] Forward-Looking Statements - Forward-looking statements indicate expectations for 2025 sales and profitability, with a focus on maintaining leverage targets post-acquisitions[31]