Integer Holdings Corp (NYSE: ITGR) reported Q3 EPS of $0.50, $0.14 better than the analyst estimate of $0.36. Revenue for the quarter came in at $236 million versus the consensus estimate of $240.23 million.

Third Quarter 2020 Highlights (compared to Third Quarter 2019)

• The impact of COVID-19 on the third quarter 2020 financial results was consistent with Integer’s second quarter 2020 earnings communication.
• Sales declined $68 million to $236 million, a decrease of 22%.
• GAAP income was $30 million, a decrease of 1%. Non-GAAP adjusted income declined $23 million to $17 million, a decrease of 58%.
• Adjusted EBITDA declined $33 million to $37 million, a decrease of 47%.
• GAAP diluted EPS was $0.92 per share for both periods. Non-GAAP adjusted diluted EPS decreased $0.70 per share to $0.50 per share, a decrease of 58%.
• Net total debt decreased $23 million from the end of the second quarter 2020 to $747 million.
• The third quarter 2020 GAAP results include a pre-tax gain of $28 million, resulting in an after-tax impact of $0.67 per diluted share from a patent litigation judgment affirmed by the United States Court of Appeals in Integer’s favor, which are excluded from non-GAAP adjusted results.
• On October 15, 2020 Integer received cash from the patent litigation judgment and paid down an additional $28 million of debt.

“Our third quarter results demonstrate improved profitability versus the second quarter, and we expect the fourth quarter to be even stronger, as sales begin to recover from the pandemic and the profit margin rate recovery accelerates”, said Joseph Dziedzic, Integer’s president and chief executive officer. “Our Manufacturing Excellence strategic imperative continues to deliver strong operational and financial results. We remain focused on executing our strategy and making the necessary investments to be our customers’ partner of choice and deliver our financial objectives.”

Fourth Quarter Outlook

• Sales are projected to be $20 million to $35 million higher than the third quarter 2020.
• Given the $28 million pre-tax patent litigation judgment gain in the third quarter 2020, GAAP operating income margin is expected to decline in the fourth quarter 2020.
• Adjusted Operating Income margin is projected to be 200 to 300 basis points higher than the third quarter 2020.

“Our third quarter results demonstrate improved profitability versus the second quarter, and we expect the fourth quarter to be even stronger, as sales begin to recover from the pandemic and the profit margin rate recovery accelerates”, said Joseph Dziedzic, Integer’s president and chief executive officer. “Our Manufacturing Excellence strategic imperative continues to deliver strong operational and financial results. We remain focused on executing our strategy and making the necessary investments to be our customers’ partner of choice and deliver our financial objectives.”

For earnings history and earnings-related data on Integer Holdings Corp (ITGR) click here.