Integer (ITGR) - 2024 Q4 - Annual Results

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]