PLANO, Texas, March 27, 2025 (GLOBE NEWSWIRE) -- Integer Holdings Corporation (NYSE: ITGR) announced today that it plans to release financial and operational results for first quarter 2025 at 7 a.m. Central Time (CT) / 8 a.m. Eastern Time (ET) on Thursday, April 24, 2025. Following the release, Integer management will host a webcast at 8 a.m. CT / 9 a.m. ET to discuss these results. Other forward-looking and material information may also be discussed during this call. Conference call details: Date: Thursday ...

Core Viewpoint - Integer Holdings Corporation has successfully closed a $1.0 billion offering of 1.875% convertible senior notes due 2030, which is expected to enhance its capital structure and reduce interest expenses, thereby positively impacting adjusted earnings for 2025 [1][2]. Financial Impact - The offering was upsized from an initial $750 million to $875 million due to strong investor demand, with an additional $125 million purchased by initial purchasers [1][2]. - The transaction is projected to lower interest expenses by approximately $12 million in 2025, based on current outstanding debt and interest rates [2]. - The estimated net proceeds from the offering will be $976.1 million after deducting discounts and expenses, which will be used for various financial obligations including repaying existing debt [2]. Strategic Objectives - The transaction creates revolver capacity, allowing the company to continue its tuck-in acquisition strategy while maintaining a targeted leverage range of 2.5 to 3.5 times adjusted EBITDA [2]. - The structure of the convertible notes and associated capped calls is designed to mitigate potential dilution for investors in the future [2][3]. Conversion Details - Upon conversion, the principal amount of the notes will be paid in cash, with an effective conversion price set at $189.44, representing a 60% premium over the company's common stock closing price of $118.40 on March 13, 2025 [3]. - The company has the option to minimize future dilution by delivering the value of any conversion obligation owed in cash or a combination of cash and shares [3]. Company Overview - Integer Holdings Corporation is a leading medical device contract development and manufacturing organization, serving various markets including cardiac rhythm management and neuromodulation [4]. - The company is committed to providing innovative, high-quality products and solutions to enhance patient lives globally [4].

Core Viewpoint - Integer Holdings Corporation has successfully closed a $1.0 billion offering of 1.875% convertible senior notes due 2030, which is expected to enhance its financial structure and reduce interest expenses, thereby positively impacting adjusted earnings for 2025 [1][2]. Financial Impact - The offering was upsized from an initial $750 million to $875 million due to strong investor demand, with an additional $125 million purchased by initial purchasers [1]. - The transaction is projected to lower interest expenses by approximately $12 million in 2025, contributing to adjusted earnings [2]. - The estimated net proceeds from the offering will be $976.1 million after deducting discounts and expenses, which will be used to pay for capped call transactions, exchange existing convertible notes, and repay outstanding borrowings [2]. Strategic Objectives - The transaction creates revolver capacity, allowing the company to continue its tuck-in acquisition strategy while maintaining a targeted leverage range of 2.5 to 3.5 times adjusted EBITDA [2]. - The structure of the convertible notes includes capped calls that mitigate potential dilution for investors upon conversion [2][3]. Company Overview - Integer Holdings Corporation is a leading medical device contract development and manufacturing organization, serving various markets including cardiac rhythm management and neuromodulation [4]. - The company is committed to providing innovative, high-quality products and solutions to enhance patient lives globally [4].

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].

Company Overview - Integer Holdings (ITGR) shares increased by 3.8% to close at $122.73, following a notable trading volume, despite a 15.2% loss over the past four weeks [1] - The company has a positive outlook for 2025, projecting 8%-10% sales growth and double-digit EPS growth, which has enhanced investor confidence [2] Financial Performance - Integer is expected to report quarterly earnings of $1.29 per share, reflecting a year-over-year increase of 13.2%, with revenues anticipated at $434.1 million, up 4.7% from the previous year [3] - The consensus EPS estimate for the upcoming quarter has been revised 3.4% lower over the last 30 days, indicating a negative trend in earnings estimate revisions [4] Strategic Positioning - Recent acquisitions in Electrophysiology, Neurovascular, and Surgical Robotics are projected to generate approximately $240 million in annualized sales, positioning the company for growth in high-demand therapeutic markets [2] - Integer's disciplined capital allocation and robust product development pipeline are expected to support sustained above-market growth, benefiting both patients and shareholders [2] Industry Context - Integer operates within the Zacks Medical - Instruments industry, where another company, KORU Medical Systems Inc. (KRMD), has seen a 0.9% increase in its stock price, although it has experienced a 30.7% decline over the past month [4] - KORU Medical's consensus EPS estimate remains unchanged at -$0.03, representing a 50% decrease compared to the previous year [5]

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]

Market Strategy and Customer Base - The company plans to exit the portable medical market by 2025 to enhance profitability and reallocate manufacturing capacity[35]. - In 2024, three customers (Abbott Laboratories, Boston Scientific, and Medtronic) accounted for 47% of total sales, each exceeding 10%[38]. - Integer's sales are influenced by the inventory levels of large OEM customers, which can cause fluctuations in sales volume[81]. - In 2024, the top three customers accounted for approximately 47% of the company's revenues, indicating a significant reliance on a limited customer base[100]. - The company does not have long-term supply agreements with all customers, leading to potential revenue instability[100]. Financial Performance - Total sales for 2024 reached $1,716,596, an increase of 10.3% compared to $1,555,656 in 2023[336]. - Gross profit for 2024 was $459,014, representing a gross margin of 26.7%, up from $409,889 in 2023[336]. - Operating income increased to $208,238 in 2024, a 27.5% rise from $163,323 in 2023[336]. - Net income for 2024 was $119,896, reflecting a 32.3% increase from $90,650 in 2023[336]. - Basic earnings per share for continuing operations rose to $3.60 in 2024, compared to $2.68 in 2023, marking a 34.5% increase[336]. - Cash and cash equivalents at the end of 2024 were $46,543, up from $23,674 in 2023, indicating a significant liquidity improvement[342]. - Total assets increased to $3,077,971 in 2024, a growth of 4.6% from $2,942,653 in 2023[334]. - Total liabilities rose to $1,458,756 in 2024, up from $1,423,611 in 2023, reflecting a 2.5% increase[334]. - Total stockholders' equity increased to $1,619,215,000 in 2024 from $1,519,042,000 in 2023, representing a growth of 6.6%[344]. - Retained earnings rose to $891,247,000 in 2024, compared to $771,351,000 in 2023, marking an increase of 15.5%[344]. Regulatory and Compliance Issues - The company is subject to regulation by multiple agencies, including the FDA and European Medicines Agency, impacting its operations[63]. - The company is subject to various regulatory requirements, including FDA and EU-MDR, impacting product approval and marketing[68]. - Regulatory changes and tariffs could adversely affect operations and increase costs for products manufactured outside the U.S.[105]. - The healthcare industry is highly regulated, and changes in regulations could lead to increased compliance costs and lower revenues[164]. - Compliance with customer-driven policies and third-party certification requirements may increase operational costs and affect profitability[160]. Operational Challenges - The company is experiencing aggressive competition for skilled associates, which may impact its ability to attract and retain qualified personnel necessary for growth[107]. - Manufacturing operations are concentrated in specific locations, and any disruptions could lead to production delays and harm business operations[106]. - The company relies on third-party suppliers for raw materials, and fluctuations in supply and prices could adversely affect financial condition and results of operations[103]. - The company may face difficulties in successfully integrating acquisitions, which could divert management attention and resources from core operations[125][126]. - The company may not be able to maintain operating efficiency levels achieved by acquired businesses, potentially affecting cost savings and benefits expected from acquisitions[127]. Innovation and Development - The company is focused on strategic "tuck-in" acquisitions to expand its product offerings in key growth markets[46]. - The company emphasizes market-focused innovation to maximize returns on research and development investments[48]. - The company plans to develop new products and expand into new geographic and product markets, which may require substantial investments and could face challenges in market acceptance[121][122]. Environmental and Social Responsibility - The company has established six employee resource groups to promote diversity and inclusion within the workforce[79]. - Integer has a commitment to gender equity, with no pay gap identified between genders in the senior leadership team[78]. - The focus on environmental, social, and governance (ESG) matters could lead to increased operating costs and impact profitability if stakeholder expectations are not met[113]. - Integer's environmental compliance indicates no material noncompliance with applicable laws and no significant claims for contamination liabilities[71]. Cybersecurity and IT Risks - The company is increasingly dependent on IT systems, facing risks from cyber-attacks and disruptions that could materially affect business operations and financial condition[110]. - The company's cybersecurity risk management is integrated into its overall risk management framework, with a dedicated Security, Privacy and Compliance Committee[170]. - The Audit Committee is primarily responsible for overseeing cybersecurity risks, with updates provided by the Chief Information Security Officer at least twice a year[176]. Debt and Financial Obligations - As of December 31, 2024, the company had $1.0 billion in principal amount of debt outstanding, with estimated debt service obligations of approximately $52 million for 2025[130]. - The company is subject to interest rate risk due to certain borrowings at variable interest rates, which could negatively impact financial performance amid rising rates[133]. - The conditional conversion feature of the 2028 Convertible Notes could lead to liquidity issues if holders elect to convert their notes[135]. Currency and Foreign Operations - International sales accounted for approximately 45% of total sales for 2024, exposing the company to various market and financial risks[143]. - Fluctuations in foreign currency exchange rates could significantly impact financial results in the future, despite historical stability[144]. - The company recorded net foreign currency measurement and transaction losses of $3.2 million for 2024[299]. - A hypothetical 10% change in the value of the U.S. dollar in relation to the Euro would have impacted the company's 2024 annual sales by approximately $8 million[297].

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 ...