FRISCO, Texas, July 31, 2014 (GLOBE NEWSWIRE) -- Greatbatch, Inc. (NYSE:GB), today announced results for its second quarter ended July 4, 2014 highlighted by 14% and 23% growth in GAAP operating income and GAAP diluted EPS, respectively and 7% improvement in both adjusted operating income and adjusted diluted EPS.
| Three Months Ended | |||||
| July 4, | June 28, | % | April 4, | % | |
| (Dollars in thousands, except per share data) | 2014 | 2013 | Change | 2014 | Change |
| Sales | $ 172,081 | $ 171,331 | —% | $ 174,281 | (1)% |
| Organic Constant Currency Sales Growth | —% | 6% | 17% | ||
| GAAP Operating Income | $ 19,539 | $ 17,135 | 14% | $ 22,524 | (13)% |
| GAAP Operating Income as % of Sales | 11.4% | 10.0% | 12.9% | ||
| Adjusted Operating Income* | $ 23,800 | $ 22,192 | 7% | $ 22,310 | 7% |
| Adjusted Operating Income as % of Sales | 13.8% | 13.0% | 12.8% | ||
| GAAP Diluted EPS | $ 0.48 | $ 0.39 | 23% | $ 0.58 | (17)% |
| Adjusted Diluted EPS* | $ 0.60 | $ 0.56 | 7% | $ 0.54 | 11% |
| Adjusted EBITDA* | $ 33,109 | $ 31,281 | 6% | $ 31,562 | 5% |
| Adjusted EBITDA as a % Sales | 19.2% | 18.3% | 18.1% | ||
| * Refer to Tables A, B and C at the end of this release for a reconciliation of GAAP to adjusted amounts. | |||||
"As we continue to invest and execute our global strategy, we are seeing results in line with our year to date expectations," stated Thomas J. Hook, president and CEO. "As expected, our key growth drivers, Orthopaedics and Vascular, continue to deliver double digit growth, and although the second quarter 2014 total revenue was flat when compared with the prior year second quarter, on a year to date basis, organic constant currency growth is 8%. For the 2014 second quarter, adjusted operating income improved by 7% to $23.8 million and adjusted diluted EPS totaled $0.60 demonstrating our commitment to improved profitability."
We remain focused on delivering 5% year over year revenue growth and returning two times that to the bottom line leveraging our deep customer relationships, the strength of our intellectual property and our culture of continuous improvement. During the quarter we announced several capacity realignments, including investment of up to $45 million to complete these projects. Additionally, we received CE Mark for our spinal cord stimulator - Algovita, and we remain on track with our active implantable medical device strategy."
CFO Comments
Commenting on the company's financial results, Greatbatch executive vice president and CFO Michael Dinkins said, "The fundamentals of our business remain intact. Greatbatch's operating improvements generated a 13.8% adjusted operating margin, a 7% increase in adjusted diluted earnings per share, and $19.5 million of operating cash flow for the quarter. Productivity programs as well as general and administrative cost controls were the primary driver behind our 80 basis point improvement in our adjusted operating margin. With our debt balance at $192.5 million, our EBITDA leverage ratio remains below two to one."
Mr. Dinkins continued, "We are confirming our 2014 guidance of 3% to 6% organic constant currency revenue growth and 7% to 12% adjusted diluted EPS improvement."
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