FRISCO, Texas, Feb. 29, 2016 (GLOBE NEWSWIRE) -- Greatbatch, Inc. (NYSE:GB) today announced results for its fourth quarter and full-year ended January 1, 2016.
| Three Months Ended | Year End | ||||||||||||||||||||
| January 1, | January 2, | % | January 1, | January 2, | % | ||||||||||||||||
| (Dollars in thousands, except per share data) | 2016 | 2015 | Change | 2016 | 2015 | Change | |||||||||||||||
| Sales | $ | 317,567 | $ | 169,726 | 87 | % | $ | 800,414 | $ | 687,787 | 16 | % | |||||||||
| Organic Constant Currency Sales Growth | 7 | % | (5 | )% | (2 | )% | 3 | % | |||||||||||||
| GAAP Diluted EPS | $ | (0.85 | ) | $ | 0.54 | (257 | )% | $ | (0.29 | ) | $ | 2.14 | (114 | )% | |||||||
| Adjusted Diluted EPS* | $ | 0.92 | $ | 0.77 | 19 | % | $ | 2.90 | $ | 2.86 | 1 | % | |||||||||
| EBITDA* | $ | 5,592 | $ | 27,871 | (80 | )% | $ | 62,445 | $ | 118,028 | (47 | )% | |||||||||
| Adjusted EBITDA* | $ | 69,005 | $ | 36,295 | 90 | % | $ | 165,874 | $ | 147,790 | 12 | % | |||||||||
| Adjusted EBITDA as a % Sales | 21.7 | % | 21.4 | % | 20.7 | % | 21.5 | % | |||||||||||||
* Refer to Tables A and B at the end of this release for a reconciliation of adjusted amounts to GAAP.
CEO Comments
Thomas J. Hook, president & CEO, commented, “The fourth quarter marked the completion of two major strategic initiatives for the Company. First, we received PMA approval from the FDA for our Algovita SCS system. This is the first ever PMA device developed at Greatbatch, demonstrating our extensive capabilities in bringing critical medical device technology to the market addressing the needs of patients worldwide. The FDA approval of the Algovita device facilitates the pending spin-off of Nuvectra, which is targeted for completion in March 2016. Second, we completed the transformative acquisition of Lake Region Medical on October 27. The deal significantly expands our capabilities in the Cardiac, Vascular and Orthopaedic markets and also extends our reach into the Advanced Surgical market with a portfolio of minimally invasive devices used in laparoscopic and drug delivery applications. Completing the Lake Region acquisition marked the achievement of a key strategic milestone. The combination of the two companies under the new Integer brand establishes the Company as the premier global medical device outsource partner, with the scale and breadth of capabilities to meet the demands of our customers and the patients they serve. Our primary focus in 2016 will be to integrate our cultures and operations into one single integrated entity. Thus far the merger of the organizations has gone extremely well and I’m confident that we will be able to leverage the combined expertise to accelerate our growth over the long term.”
CFO Comments
Michael Dinkins, executive vice president and CFO, commented, “In the fourth quarter, excluding the impact of our acquisition of Lake Region Medical and foreign currency fluctuations, we achieved 7% organic constant currency growth for our legacy Greatbatch business. While sales fell short of expectations, legacy Greatbatch sales of $179 million represented a record quarter for the Company. We saw a sequential increase in all of our product lines with growth continuing to be fueled by demand for our neurostimulation devices. We successfully invested to increase our manufacturing capacity at CCC Medical and ramped production throughout the year to meet this accelerated neurostimulation customer demand. For the fourth quarter, adjusted earnings per diluted share of $0.92 increased by 19% compared to last year, primarily resulting from the higher sales volume and reduced compensation expenses. It is important to note that the acquisition of Lake Region, which was completed on October 27, 2015, was dilutive to our reported adjusted fourth quarter earnings per share by $0.08 due to the additional interest expense and shares issued in connection with the acquisition. Excluding Lake Region, adjusted earnings per share would have been $1.00 for the quarter, representing an increase of 30% compared to last year.”
Dinkins continued “For the year, Neuromodulation growth was offset by the downturn in the Energy market, coupled with inventory and market adjustments, primarily in our Cardiac market. With the addition of $800 million in diversified Lake Region revenues, we will be in a better position to extend our market reach and add critical medical device capabilities that our customers require. Despite the headwinds that we faced in 2015, we were able to organically grow our adjusted diluted earnings per share by 3% over 2014, which demonstrates our ability to control costs and improve efficiencies. We will continue this focus and leverage the strengths of the new Integer organization to drive long-term growth and profitability.”
