Integer Holdings Corp (ITGR) Reports 3Q23 Earnings: Sales and Net Income See Significant Increase
Integer Holdings Corp (NYSE:ITGR) reports an 18% increase in sales to $405 million in Q3 2023.
GAAP net income and operating income saw substantial increases of 70% and 64% respectively.
The company acquired assets of InNeuroCo, Inc. to strengthen neurovascular catheter capabilities.
ITGR raises full-year sales outlook to 15% growth at the midpoint.
Released on October 26, 2023, Integer Holdings Corp (NYSE:ITGR)'s third-quarter earnings report shows a strong performance with significant increases in sales, net income, and operating income. The company also raised its full-year 2023 outlook following these positive results.
Financial Highlights
ITGR's Q3 2023 sales increased by 18% to $405 million, with organic growth also at 18%. The GAAP net income saw a substantial increase of 70%, rising $11 million to $27 million. Similarly, GAAP operating income increased by 64%, rising $19 million to $48 million. The GAAP diluted EPS also increased by $0.33 per share to $0.81 per share. Adjusted EBITDA saw a 28% increase, rising $18 million to $81 million.
Debt and Acquisition
From the end of 2022, total debt increased $16 million to $941 million, and net total debt increased $17 million to $924 million. This increase is mostly attributable to fees associated with the $500 million convertible notes and the $35 million related capped call, resulting in a leverage ratio of 3.1 times adjusted EBITDA as of September 29, 2023. ITGR also acquired certain assets of InNeuroCo, Inc. to further strengthen its neurovascular catheter capabilities.
CEO Commentary
Integer delivered another strong quarter with organic sales up 18% and adjusted operating income growth of 39%, more than twice the sales growth rate," said Joseph Dziedzic, Integers president and CEO. "As we continue to see strong customer demand across our targeted growth markets, we are increasing our full year sales outlook to 15% growth at the midpoint. Additionally, we are raising our adjusted operating income outlook to 25% growth at midpoint. As part of our growth strategy, we completed the tuck-in acquisition of InNeuroCo on October 1st to further strengthen our neurovascular catheter capabilities."
2023 Outlook
ITGR's 2023 outlook includes sales of $1,575 to $1,595 million, representing a 14% to 16% increase from the prior year. Operating income is expected to be between $166 to $174 million, a 36% to 43% increase from the prior year. Net income is projected to be between $90 to $96 million, a 37% to 48% increase from the prior year. Diluted earnings per share are expected to be between $2.66 to $2.86, a 36% to 46% increase from the prior year.
Explore the complete 8-K earnings release (here) from Integer Holdings Corp for further details.
This article first appeared on GuruFocus.
