Integra LifeSciences Reports Second Quarter 2024 Financial Results

Financial Performance - The company reported a GAAP net loss of $(12.4) million, or $(0.16) per diluted share, in the second quarter of 2024, compared to a GAAP net income of $4.2 million, or $0.05 per diluted share, in the prior year [38] - Adjusted net income for the second quarter of 2024 was $49.0 million, or $0.63 per diluted share, compared to $57.4 million, or $0.71 per diluted share, in the prior year [16] - Total revenues for the second quarter were $418.2 million, representing a reported growth of 9.7% and an organic growth of 2.3% compared to the prior year [12][15] Segment Performance - Sales in Neurosurgery grew 1.2% on an organic basis, with key drivers including high-single-digit growth in Dural access and repair and low-single-digit growth in Advanced energy [6] - Sales in Instruments declined 3.1% on an organic basis, while ENT sales grew low-double digits [6] - Total revenues from Codman Specialty Surgical were $301.8 million, representing reported growth of 11.3% [26] Operational Updates - The company announced plans to relaunch SurgiMend® and PriMatrix® at a new manufacturing facility in Braintree, Massachusetts, with operational readiness expected in the first half of 2026 [2] - The company generated cash flow from operations of $40.4 million in the quarter, with total balance sheet debt at $1.83 billion and net debt at $1.54 billion [8] - The company is implementing a compliance master plan to address quality system and GMP compliance learnings, resulting in temporary shipping holds on certain products [14] Guidance and Outlook - The company updated its full-year 2024 revenue guidance to a range of $1.609 billion to $1.629 billion, reflecting reported growth of 4.4% to 5.7% and organic growth of -1.0% to 0.3% [3][74] - For the third quarter of 2024, the company expects reported revenues in the range of $372 million to $382 million, representing reported growth of -2.6% to 0.0% and organic growth of -9.4% to -6.7% [9] Cash Flow and Liquidity - The company had total liquidity of approximately $1.18 billion, including $297 million in cash and short-term investments [41] - Free cash flow for the quarter was $10.7 million, with an adjusted free cash flow conversion rate of 21.8% [56]