• Revenue: $381 million for Q3 2024, flat on a reported basis, down 8.6% organically year over year.

• Adjusted EPS: $0.41, down 46% compared to Q3 2023.

• Gross Margin: 63%, down 160 basis points from 2023.

• Adjusted EBITDA Margin: 16.2%, down 680 basis points from 2023.

• Operating Cash Flow: $22.5 million for Q3 2024.

• CSS Revenue: $271 million, up 1% reported, down 10.7% organically.

• ENT Organic Growth: 5.3% for Q3 2024.

• Tissue Technologies Revenue: $110 million, down 3.6% reported, down 3.7% organically.

• Full-Year Revenue Guidance: $1.609 billion to $1.619 billion.

• Full-Year Adjusted EPS Guidance: $2.41 to $2.49.

• Net Debt: $1.5 billion as of September 30, 2024.

• Total Liquidity: $1.2 billion, including $277 million in cash and short-term investments.

• Warning! GuruFocus has detected 3 Warning Sign with IART.

Release Date: November 04, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Integra Lifesciences Holdings Corp (NASDAQ:IART) announced the appointment of Mojdeh Poul as the next CEO, bringing extensive experience in healthcare leadership.

• The company reported strong demand for its portfolio, particularly in the neurosurgery and ENT segments, despite supply challenges.

• The integration of the Acclarent business has exceeded expectations, contributing positively to the ENT segment's growth.

• Integra Lifesciences Holdings Corp (NASDAQ:IART) is making progress on its compliance master plan to enhance quality management systems, which is expected to improve long-term operational resilience.

• The company is investing in facility and equipment upgrades, including the Braintree facility, to improve production capacity and meet customer demand.

Negative Points

• Organic revenue decreased by 8.6% year over year, reflecting ongoing supply challenges that limited the company's ability to meet demand.

• The company experienced a decline in gross margins, down 160 basis points, due to manufacturing inefficiencies and unfavorable revenue mix.

• Adjusted EPS for the quarter was $0.41, down 46% compared to the previous year, indicating financial pressure from operational challenges.

• Supply challenges, including shipping holds, significantly impacted the Codman Specialty Surgical business, leading to a 10.7% decline in organic growth.

• The company tightened its full-year 2024 revenue and adjusted EPS guidance due to recent quality holds and ongoing remediation work.

Q & A Highlights

Q: What are you seeing from the commercial organization and customer stability as you've been going through the supply challenges over the last few quarters? A: Our protocols were not long-term and spanned several SKUs, but the duration of each hold was not extended. Our products are differentiated, and customers choose them based on specific attributes. We have focused on maintaining strong relationships with customers, and we feel confident about retaining our share with them. - Jan De Witte, CEO