Integra LifeSciences Holdings Reports Fourth Quarter 2014 Financial Results

Revenues Increased 14.2% to $252.2 Million
Organic Revenues Increased 5.8%
Reported EPS Increased to $0.52; Adjusted EPS Increased to $0.94
Issues 2015 Full-Year Guidance

PLAINSBORO, N.J., Feb. 24, 2015 (GLOBE NEWSWIRE) -- Integra LifeSciences Holdings Corporation (Nasdaq:IART) today reported its financial results for the fourth quarter ending December 31, 2014. Total revenues for the fourth quarter were $252.2 million, reflecting an increase of $31.4 million, or 14.2%, over the fourth quarter of 2013. Total revenues for the full year of 2014 were $928.3 million, an increase of $92.1 million, or 11.0%, over the full year 2013.

Organic revenues, computed by adjusting GAAP revenues as set forth in the attached reconciliation, increased 5.8% over the fourth quarter 2013, and increased 3.2% over the full year 2013.

"Strength in our worldwide neurosurgery and skin and wound businesses drove organic sales growth to 5.8% in the fourth quarter," said Peter Arduini, Integra's President and Chief Executive Officer. "We are proud of these results, which reflect the progress we have made as a Company against our plans."

The Company reported GAAP net income of $17.2 million, or $0.52 per diluted share, for the fourth quarter of 2014, compared to GAAP net income of $13.8 million, or $0.45 per diluted share, for the fourth quarter of 2013. The Company reported GAAP net income of $34.0 million, or $1.03 per diluted share, for the full year 2014, compared to GAAP net loss of $(21.1) million, or $(0.74) per diluted share in 2013.

Adjusted measures discussed below are computed with the adjustments to GAAP reporting set forth in the attached reconciliation.

Adjusted EBITDA for the fourth quarter of 2014 was $58.2 million, or 23.1% of revenue, an increase from $42.7 million, or 19.3% of revenue, in the fourth quarter of the prior year. Adjusted EBITDA for the full year 2014 was $188.0 million, or 20.3% of revenue, an increase from $132.4 million, or 15.8% of revenue, in the prior year.

Adjusted net income for the fourth quarter of 2014, was $31.3 million, or $0.94 per diluted share, compared to adjusted net income of $25.4 million, or $0.83 per diluted share, in the fourth quarter of 2013. Adjusted net income for the full year 2014, was $97.6 million, or $2.96 per diluted share, compared to $66.5 million, or $2.31 per diluted share in 2013.

Integra generated $20.8 million of cash flows from operations and invested $12.5 million in capital expenditures in the fourth quarter of 2014. For the full year ended December 31, 2014, cash flows from operations totaled $79.5 million and cash invested in capital expenditures was $41.9 million. Adjusted free cash flow conversion for the trailing twelve months ended December 31, 2014 was 38.5% versus 8.1% for the twelve months ended December 31, 2013.

"We look forward to the opportunities that lie ahead in 2015, including new product introductions, ramping up production in our new collagen manufacturing center, publication of the data from our diabetic foot ulcer study, and the sales channel investments we are making in our wound, extremities and international businesses," said Mr. Arduini. "The accomplishments of the last two years have laid the foundation for Integra to achieve our long-term growth and profitability objectives."

Outlook for 2015

The Company expects full year 2015 revenues to be between $960 million and $980 million. The Company expects its GAAP earnings per diluted share for the full year to be between $0.87 and $1.05 and adjusted earnings per diluted share to be between $3.05 and $3.23. This guidance includes the performance of the spine business for the full year.

At current foreign currency exchange rates, the Company expects a negative impact of approximately $25 million on 2015 revenues, and a $0.10 to $0.15 negative impact on adjusted earnings per share, compared to what they would have been at 2014 average rates.

"The spin-off of SeaSpine remains on track to be completed in the second half of 2015," said Glenn Coleman, Chief Financial Officer. "As we move forward with the realignment of our business into two global segments, we expect the simplified, more focused structure to result in faster growth and margin expansion. Overall, our 2015 guidance reflects continued progress toward our long-term growth and profitability targets."

In accordance with our usual practice, expectations for financial performance do not include the impact of acquisitions or other strategic corporate transactions that have not yet closed.

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 adjusted EBITDA and adjusted earnings per share for historical periods and in providing adjusted earnings per share guidance.

**Integra's management team will reference a presentation during the conference call this morning, which can be found on the Investor section of the website at investor.integralife.com. This presentation will include revenue guidance in both the historic and new global segment structure.

Conference Call

Integra has scheduled a conference call for 8:30 AM ET today, Tuesday, February 24, 2015 to discuss financial results for the fourth quarter and forward-looking financial guidance. The conference call will be hosted by Integra's senior management team and will be open to all listeners. Additional forward-looking information may be discussed in a question and answer session following the call.

Access to the live call is available by dialing 913-981-4904 and using the passcode 6805776. The call can also be accessed through a webcast via a link provided on the Investor Relations homepage of Integra's website at investor.integralife.com. Access to the replay is available through March 14, 2015 by dialing 719-457-0820 and using the passcode 6805776. The webcast will also be archived on the website.

Integra LifeSciences, a world leader in medical technology, is dedicated to limiting uncertainty for surgeons, so they can concentrate on providing the best patient care. Integra offers innovative solutions in orthopedics, neurosurgery, spine, reconstructive and general surgery. For more information, please visit www.integralife.com.