Integra LifeSciences (IART) Tops Q4 EPS by 11c; Offers 1Q EPS/Revenue Guidance Below Consensus, FY21 Revenues Views Below Consensus

February 18, 2021 6:26 AM EST

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Integra LifeSciences (NASDAQ: IART) reported Q4 EPS of $0.84, $0.11 better than the analyst estimate of $0.73. Revenue for the quarter came in at $388.6 million versus the consensus estimate of $388.58 million.

Fourth Quarter 2020

  • Reported revenues were $388.6 million, representing a decrease of 1.6% on a reported basis and a decrease of 1.5% on an organic basis compared to the fourth quarter 2019.
    • Fourth quarter revenues increased 5.0% compared to the third quarter of 2020.
  • GAAP earnings per diluted share were $1.09, compared to $0.18 in the fourth quarter 2019.
  • Adjusted earnings per diluted share were $0.84, compared to $0.68 in the fourth quarter of 2019.

"The safety and well-being of our colleagues has remained our number one priority throughout the pandemic, so they could continue to deliver critical, life-saving products to clinicians," said Peter Arduini, Integra's president and chief executive officer. "The revenue and profitability impact from surgical procedural deferrals caused by COVID were most significant in the first half of 2020. The Company's revenue and profitability improved in the second half of the year as procedures recovered. Over the course of 2020, we focused on enhancing our global operations, investing in critical growth programs, and optimizing our product portfolio. These accomplishments and our strong financial position increase our confidence that we will return to growth in 2021."

GUIDANCE:

Integra LifeSciences sees Q1 2021 EPS of $0.54-$0.58, versus the consensus of $0.64. Integra LifeSciences sees Q1 2021 revenue of $345-355 million, versus the consensus of $359.9 million.

Integra LifeSciences sees FY2021 EPS of $2.86-$2.93, versus the consensus of $2.92. Integra LifeSciences sees FY2021 revenue of $1.52-1.535 billion, versus the consensus of $1.54 billion.

The Company is providing forward-looking guidance regarding adjusted earnings per diluted share, but is not providing a reconciliation to GAAP earnings per share, because certain GAAP expense items are highly variable and management is unable to predict them with reasonable certainty and without unreasonable effort. Specifically, the financial impact and timing of divestitures, acquisitions, integrations, structural optimization and efforts to comply with the EU Medical Device Regulation are uncertain, depend on various dynamic factors and are not reasonably ascertainable at this time. These expense items could have a material impact on GAAP results. Adjusted earnings per diluted share also excludes the impact of intangible asset amortization associated with prior business acquisitions, which we expect to be approximately $0.73 per diluted share for the full-year 2021.

In addition, the Company will continue to monitor the ongoing uncertainty around the scope and duration of the pandemic and its impact on financial performance. The Company does not expect the ongoing impact of the pandemic to be uniform across all markets and product lines. The Company's guidance assumes a gradual improvement in surgical procedures with no further setbacks from new surges or new COVID variants.

For the first quarter 2021, the Company expects reported revenues in the range of $345 million to $355 million, representing reported growth of approximately (3.0%) to 0.0% and organic growth of approximately 0.0% to 3.0%. Adjusted earnings per diluted share are expected to be in a range of $0.54 to $0.58.

For the full-year 2021, the Company expects revenues to be in a range of $1,520 million to $1,535 million, representing reported growth of 11% to 12% and organic growth of 12% to 13%. Adjusted earnings per diluted share are expected to be in a range of $2.86 to $2.93.

Organic sales growth excludes both the divestiture of the Extremity Orthopedics business, which was completed on January 4, 2021, and the acquisition of ACell Inc., which was completed on January 20, 2021. Organic growth also excludes the effects of foreign currency and discontinued products.

The Company expects a reported revenue contribution from ACell in the range of $83 million to $88 million for the full-year 2021, with approximately $14 million to $15 million in the first quarter of 2021.

In the future, the Company may record, or expects to record, certain additional revenues, gains, expenses or charges as described in the Discussion of Adjusted Financial Measures below that it will exclude in the calculation of organic revenue growth, adjusted EBITDA, adjusted net income, adjusted EPS and adjusted free cash flow conversion for historical periods and in providing adjusted EPS guidance.

For earnings history and earnings-related data on Integra LifeSciences (IART) click here.



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