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Integer (ITGR) - 2024 Q4 - Annual Results
ITGRInteger (ITGR)2025-02-20 13:04

Financial Performance - Fourth quarter 2024 sales increased by 11% to 449million,withGAAPincomefromcontinuingoperationsrising23449 million, with GAAP income from continuing operations rising 23% to 33 million[6] - Full year 2024 sales reached 1.717billion,a101.717 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 221millionand221 million and 242 million, a 20% increase year-over-year[10] - Adjusted net income for Q4 2024 was 61,016,000,representinga8.361,016,000, 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,upfrom224,747,000, up from 188,895,000 in 2023[40] - Basic earnings per share for 2024 was 3.57,up31.23.57, up 31.2% from 2.72 in 2023[36] - Diluted EPS for Q4 2024 was 1.43,comparedto1.43, 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 152million,withexpectedsalesof152 million, with expected sales of 52 million in 2025[6] - Integer signed a purchase agreement to acquire VSi Parylene for approximately 28million,anticipatingsalesof28 million, anticipating sales of 7 million in 2025[6] Debt and Liquidity - Total debt increased to 990million,withaleverageratioof2.6timesadjustedEBITDAasofDecember31,2024[6]−Long−termdebtstoodat990 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 959,925,000in2023,indicatingastabledebtposition[34]−Cashandcashequivalentsrosesignificantlyto959,925,000 in 2023, indicating a stable debt position[34] - Cash and cash equivalents rose significantly to 46,543,000 in 2024, up from 23,674,000in2023,indicatingimprovedliquidity[34]−Cashflowfromoperatingactivitiesgenerated23,674,000 in 2023, indicating improved liquidity[34] - Cash flow from operating activities generated 205 million in 2024, with expectations for 245millionin2025[6]−NetTotalDebt(Non−GAAP)asofDecember31,2024,was245 million in 2025[6] - Net Total Debt (Non-GAAP) as of December 31, 2024, was 954,451 thousand, slightly up from 950,326thousandin2023[58]−Totalprincipalamountofdebtoutstandingincreasedto950,326 thousand in 2023[58] - Total principal amount of debt outstanding increased to 1,000,994 thousand in 2024 from 974,000thousandin2023[58]OperatingPerformance−GrossprofitfortheyearendedDecember31,2024,was974,000 thousand in 2023[58] Operating Performance - Gross profit for the year ended December 31, 2024, was 459,014 thousand, up 12.0% from 409,889thousandin2023[36]−Operatingincomeincreasedto409,889 thousand in 2023[36] - Operating income increased to 208,238 thousand for the year 2024, representing a 27.5% rise compared to 163,323thousandin2023[36]−OperatingincomeforQ42024was163,323 thousand in 2023[36] - Operating income for Q4 2024 was 57,032,000, up 31% from 43,532,000inQ42023[53]−EBITDAforQ42024reached43,532,000 in Q4 2023[53] - EBITDA for Q4 2024 reached 81,419,000, a 21.8% increase from 66,810,000inQ42023[54]ExpensesandCharges−Researchanddevelopmentexpensesdecreasedto66,810,000 in Q4 2023[54] Expenses and Charges - Research and development expenses decreased to 53,425 thousand in 2024 from 61,967thousandin2023,adeclineof13.461,967 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 51,275thousandin2023[36]−RestructuringchargesforQ42024were51,275 thousand in 2023[36] - Restructuring charges for Q4 2024 were 1,517,000, down from 4,787,000inQ42023[53]−AcquisitionandintegrationcostsforQ42024totaled4,787,000 in Q4 2023[53] - Acquisition and integration costs for Q4 2024 totaled 533,000, compared to 1,729,000inQ42023[53]−Stock−basedcompensationexpensefortheyearwas1,729,000 in Q4 2023[53] - Stock-based compensation expense for the year was 24,449 thousand, compared to 23,035thousandinthepreviousyear[55]−Restructuringandrestructuring−relatedchargestotaled23,035 thousand in the previous year[55] - Restructuring and restructuring-related charges totaled 7,255 thousand for the year, down from 9,949thousand[55]−Lossonequityinvestmentswasreportedat9,949 thousand[55] - Loss on equity investments was reported at 780 thousand for the year, a decrease from 5,691thousand[55]AssetsandEquity−Totalassetsincreasedto5,691 thousand[55] Assets and Equity - Total assets increased to 3,077,971,000 in 2024 from 2,942,653,000in2023,representingagrowthofapproximately4.62,942,653,000 in 2023, representing a growth of approximately 4.6%[34] - Total current assets increased to 671,119,000 in 2024, compared to 617,668,000in2023,reflectingagrowthofabout8.6617,668,000 in 2023, reflecting a growth of about 8.6%[34] - Retained earnings increased to 891,247,000 in 2024 from 771,351,000in2023,showingagrowthofapproximately15.5771,351,000 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]