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Integra LifeSciences(IART) - 2025 Q1 - Quarterly Results
IARTIntegra LifeSciences(IART)2025-05-05 10:45

Financial Performance - Total reported revenues for Q1 2025 were 382.7million,anincreaseof3.7382.7 million, an increase of 3.7% on a reported basis but a decline of 3.5% on an organic basis compared to the prior year[4] - GAAP gross margin was 50.8%, down from 56.1% in Q1 2024; adjusted gross margin was 62.2%, compared to 64.4% in the prior year[5] - Adjusted EBITDA for Q1 2025 was 63.6 million, or 16.6% of revenue, down from 71.8million,or19.571.8 million, or 19.5% of revenue, in the prior year[5] - The company reported a GAAP net loss of (25.3) million, or (0.33)perdilutedshare,comparedtoanetlossof(0.33) per diluted share, compared to a net loss of (3.3) million, or (0.04)perdilutedshare,intheprioryear[6]−TotalrevenuesforQ12025increasedby3.7(0.04) per diluted share, in the prior year[6] - Total revenues for Q1 2025 increased by 3.7% to 382,653,000 compared to 368,872,000inQ12024[27]−NetlossforQ12025was368,872,000 in Q1 2024[27] - Net loss for Q1 2025 was 25,293,000, compared to a net loss of 3,281,000inQ12024,resultinginadilutednetlosspershareof3,281,000 in Q1 2024, resulting in a diluted net loss per share of (0.33) versus (0.04)intheprioryear[27][33]−AdjustedEBITDAforQ12025was(0.04) in the prior year[27][33] - Adjusted EBITDA for Q1 2025 was 63,609,000, down from 71,837,000inQ12024[32]−Totalorganicrevenuesdecreasedby3.571,837,000 in Q1 2024[32] - Total organic revenues decreased by 3.5% to 355,798,000, excluding the impact of acquisitions and currency changes[28] - Adjusted net income for Q1 2025 was 31,654,000,withadjusteddilutednetincomepershareat31,654,000, with adjusted diluted net income per share at 0.41, down from 42,950,000and42,950,000 and 0.55 in Q1 2024[33] - Total costs and expenses increased to 398,150,000inQ12025from398,150,000 in Q1 2025 from 364,908,000 in Q1 2024, primarily driven by higher cost of goods sold[27] Future Guidance - For Q2 2025, the company expects reported revenues in the range of 390millionto390 million to 400 million, representing a decline of (6.8)% to (4.4)%[11] - The full-year 2025 revenue guidance is reaffirmed at 1.650billionto1.650 billion to 1.715 billion, indicating reported growth of 2.4% to 6.5%[12] Cash Flow and Debt - Cash flow from operations was (11.3)millioninthequarter,withtotalbalancesheetdebtat(11.3) million in the quarter, with total balance sheet debt at 1.85 billion and net debt at 1.58billion[9]−Totalliquidityattheendofthequarterwasapproximately1.58 billion[9] - Total liquidity at the end of the quarter was approximately 1.16 billion, including 273millionincashandshort−terminvestments[10]−CashandcashequivalentsasofMarch31,2025,were273 million in cash and short-term investments[10] - Cash and cash equivalents as of March 31, 2025, were 239,104,000, down from 246,375,000attheendof2024[35]−FreecashflowforQ12025was246,375,000 at the end of 2024[35] - Free cash flow for Q1 2025 was (40,177,000), compared to 291,000inQ12024,indicatingasignificantdeclineincashgeneration[38]−NetdebtasofMarch31,2025,was291,000 in Q1 2024, indicating a significant decline in cash generation[38] - Net debt as of March 31, 2025, was 1,574,431,000, compared to 1,535,001,000attheendof2024,reflectinganincreaseinleverage[40]SegmentPerformance−SegmentperformanceshowedCodmanSpecialtySurgicalrevenuesat1,535,001,000 at the end of 2024, reflecting an increase in leverage[40] Segment Performance - Segment performance showed Codman Specialty Surgical revenues at 280.7 million, a reported growth of 9.4%, while Tissue Technologies revenues were 102.0million,adeclineof9.3102.0 million, a decline of 9.3%[8] - Neurosurgery segment revenues decreased by 5.6% to 190,912,000, while ENT revenues surged by 296.2% to $38,802,000[28] Operational Initiatives - The company is advancing its Compliance Master Plan and investing in supply reliability, with new leadership appointments to enhance operational execution[3]