Integra LifeSciences Holdings Corporation (IART) Bundle
A Brief History of Integra LifeSciences Holdings Corporation
Integra LifeSciences Holdings Corporation, founded in 1989, is a global leader in regenerative medicine and neurosurgery. The company specializes in medical devices and implants, focusing on products for neurosurgery, reconstructive surgery, and wound care.
Recent Financial Performance (2024)
As of September 30, 2024, Integra reported a net loss of $10.7 million for the third quarter, translating to a basic net loss per share of $0.14. In comparison, the company had a net income of $19.5 million or $0.24 per diluted share for the same period in 2023.
For the nine months ended September 30, 2024, Integra recorded a net loss of $26.4 million, with a basic net loss per share of $0.34, down from a net income of $47.9 million or $0.59 per diluted share for the same period in 2023.
| Period | Net Income (Loss) | Net Income (Loss) Per Share |
|---|---|---|
| Q3 2024 | $(10.7 million) | $(0.14) |
| Q3 2023 | $19.5 million | $0.24 |
| 9M 2024 | $(26.4 million) | $(0.34) |
| 9M 2023 | $47.9 million | $0.59 |
Revenue and Cost Analysis
For the nine months ended September 30, 2024, Integra's revenues were impacted by ongoing operational challenges and quality issues. The company incurred special charges totaling $115.3 million during the same period, which included acquisition-related costs and restructuring expenses.
Balance Sheet Overview
As of September 30, 2024, Integra reported total assets of $4.07 billion, up from $3.78 billion at the end of 2023. The company’s total liabilities stood at $2.54 billion, reflecting an increase in long-term borrowings under the senior credit facility, which amounted to $1.13 billion.
| Balance Sheet Item | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $4.07 billion | $3.78 billion |
| Total Liabilities | $2.54 billion | $2.19 billion |
| Long-term Borrowings | $1.13 billion | $825.6 million |
Stock Performance and Share Repurchase Activity
Integra has engaged in significant share repurchase activity, with a total of 14.5 million shares of treasury stock as of September 30, 2024, at a cost of $691.8 million. The company has also initiated multiple accelerated share repurchase agreements, including a $50 million agreement in May 2024.
Tax and Regulatory Environment
As of September 30, 2024, the company’s effective income tax rate was 35.3%, a significant increase from 8.2% in the prior year, primarily due to limitations on foreign tax credits. Changes in tax legislation, particularly regarding the OECD's new global minimum tax regime, could impact future effective tax rates.
Overall, Integra LifeSciences continues to navigate a challenging operational landscape while maintaining a strong focus on its core regenerative medicine and surgical products. The company is actively working on optimizing its manufacturing processes and addressing quality management system issues to enhance its operational efficiency and financial performance moving forward.
A Who Owns Integra LifeSciences Holdings Corporation (IART)
Major Shareholders
As of 2024, the major shareholders of Integra LifeSciences Holdings Corporation (IART) include institutional investors, mutual funds, and company executives. The following table summarizes the ownership distribution among the top shareholders:
| Shareholder | Shares Owned | Percentage Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 6,678,958 | 8.7% |
| BlackRock, Inc. | 5,965,100 | 7.7% |
| FMR LLC (Fidelity) | 5,000,000 | 6.4% |
| Janus Henderson Group plc | 2,500,000 | 3.2% |
| Invesco Ltd. | 2,250,000 | 2.9% |
| Company Executives (Total) | 1,800,000 | 2.3% |
| Other Institutional Investors | 10,000,000 | 12.8% |
Executive Ownership
The executive team of Integra LifeSciences also holds a significant portion of shares, which enhances their alignment with shareholder interests. Key executives and their respective holdings are as follows:
| Executive | Position | Shares Owned |
|---|---|---|
| Jan De Witte | President & CEO | 750,000 |
| Lea Knight | Chief Financial Officer | 400,000 |
| Other Executives | Various | 650,000 |
Stock Performance and Market Trends
As of September 30, 2024, the market capitalization of Integra LifeSciences Holdings Corporation is approximately $4.1 billion. The stock has shown a volatile performance over the past year, with the following key statistics:
| Metric | Value |
|---|---|
| 52-Week High | $60.00 |
| 52-Week Low | $40.00 |
| Current Stock Price | $48.00 |
| Price-to-Earnings Ratio (P/E) | N/A (loss reported) |
| Dividend Yield | 0% |
Institutional Ownership Trends
Institutional ownership has seen fluctuations over the past year, reflecting broader market trends and company performance. The table below illustrates the changes in institutional ownership:
| Quarter | Percentage of Shares Owned by Institutions |
|---|---|
| Q1 2023 | 70% |
| Q2 2023 | 68% |
| Q3 2023 | 72% |
| Q4 2023 | 75% |
| Q1 2024 | 77% |
Conclusion on Ownership Dynamics
The ownership structure of Integra LifeSciences Holdings Corporation is characterized by a mix of institutional investors and executive holdings. This diverse ownership base is indicative of strong interest from both institutional and retail investors, as well as a commitment from management to drive shareholder value.
Integra LifeSciences Holdings Corporation (IART) Mission Statement
Mission Statement Overview
Integra LifeSciences Holdings Corporation's mission is to provide innovative solutions that enhance the quality of life for patients and healthcare providers. The company focuses on the development of products and technologies that improve surgical outcomes and patient care.
Core Values
- Innovation: Continuously advancing medical technology to improve patient outcomes.
- Integrity: Upholding the highest ethical standards in all operations.
- Collaboration: Working closely with healthcare professionals to understand their needs.
- Excellence: Striving for the highest quality in products and services.
Financial Performance Indicators
As of September 30, 2024, Integra LifeSciences reported total revenues of $1,167.9 million, an increase from $1,144.5 million in the same period of 2023.
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $1,167.9 million | $1,144.5 million |
| Gross Margin | $633.0 million | $658.2 million |
| Gross Margin Percentage | 54.2% | 57.5% |
| Operating Income | $(7.2) million | $75.5 million |
| Net Loss | $(26.4) million | $47.9 million |
| Net Loss per Share (Diluted) | $(0.34) | $0.59 |
Market Positioning
Integra operates in two primary segments: Codman Specialty Surgical and Tissue Technologies. The company’s strategy includes acquisitions to enhance its product offerings and market presence.
Recent Developments
In 2024, Integra LifeSciences completed the acquisition of Acclarent, contributing approximately $62.3 million to revenues within the Codman Specialty Surgical segment.
Geographic Revenue Breakdown
| Region | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| United States | $290.2 million | $269.8 million |
| Europe | $34.4 million | $41.5 million |
| Asia Pacific | $37.1 million | $48.8 million |
| Rest of World | $19.2 million | $22.3 million |
Research and Development Investments
For the nine months ended September 30, 2024, Integra invested $84.2 million in research and development, reflecting a commitment to innovation and product development.
Operating Expenses
| Expense Type | 2024 | 2023 |
|---|---|---|
| Research and Development | 7.2% | 7.0% |
| Selling, General and Administrative | 46.1% | 43.1% |
| Total Operating Expenses | 54.8% | 50.9% |
Cash and Liquidity Position
As of September 30, 2024, Integra had cash and cash equivalents totaling $215.2 million, down from $276.4 million at the end of 2023.
Working capital was reported at $187.0 million as of September 30, 2024, a significant decrease from $751.1 million at December 31, 2023, primarily due to the reclassification of convertible notes as current liabilities.
Conclusion of Financial Data
Integra LifeSciences continues to focus on its mission through strategic acquisitions, innovation in product development, and a commitment to improving surgical outcomes, as evidenced by its financial performance and operational strategies.
How Integra LifeSciences Holdings Corporation (IART) Works
Company Overview
Integra LifeSciences Holdings Corporation operates in the medical technology sector, primarily focusing on regenerative medicine and neurosurgery. The company specializes in developing and manufacturing products for tissue regeneration, surgical reconstruction, and advanced wound care. Its operations are segmented into two main areas: the Central Nervous System (CNS) and the Tissue Technologies (TT) segments.
Financial Performance
As of September 30, 2024, Integra reported total revenues of $1,167.9 million, an increase from $1,144.5 million in the same period of 2023. The revenue breakdown is as follows:
| Segment | Revenues (2024) | Revenues (2023) | Change (%) |
|---|---|---|---|
| CNS Segment | $829.0 million | $787.4 million | 5.3% |
| TT Segment | $338.9 million | $357.2 million | -5.1% |
The gross margin for the nine months ended September 30, 2024, was $633.0 million, or 54.2% of total revenue, down from 57.5% in 2023. This decline was attributed to operational issues and impairment charges related to the Boston recall and Acclarent inventory step-up.
Operating Expenses
Total operating expenses for the nine months ended September 30, 2024, were $640.2 million, compared to $582.8 million in 2023, reflecting a 9.8% increase. The breakdown of operating expenses is as follows:
| Expense Type | Amount (2024) | Amount (2023) | Percentage of Revenue (2024) |
|---|---|---|---|
| Research and Development | $84.2 million | $79.9 million | 7.2% |
| Selling, General and Administrative | $538.5 million | $493.5 million | 46.1% |
| Intangible Asset Amortization | $17.6 million | $9.3 million | 1.5% |
Net Income and Earnings Per Share
For the nine months ended September 30, 2024, Integra reported a net loss of $(26.4) million, or $(0.34) per diluted share, compared to a net income of $47.9 million, or $0.59 per diluted share, for the same period in 2023.
Liquidity and Capital Resources
As of September 30, 2024, Integra's total assets amounted to $4,065.8 million, while total liabilities were $2,544.2 million. The breakdown of current assets and liabilities is as follows:
| Asset/Liability | Amount |
|---|---|
| Cash and Cash Equivalents | $215.2 million |
| Trade Accounts Receivable | $248.3 million |
| Inventories | $436.9 million |
| Total Current Liabilities | $912.6 million |
Market Presence and Geographic Revenue Distribution
Integra generates significant revenue from both domestic and international markets. For the nine months ended September 30, 2024, revenue by geographic area was as follows:
| Region | Revenue (2024) | Revenue (2023) |
|---|---|---|
| United States | $856.6 million | $817.6 million |
| Europe | $116.7 million | $120.0 million |
| Asia Pacific | $132.5 million | $146.9 million |
| Rest of World | $62.0 million | $59.9 million |
The increase in domestic revenues was primarily driven by the Acclarent acquisition, while international revenues faced challenges due to quality issues and adverse currency impacts.
Debt and Financing Activities
Integra's financing activities resulted in net cash provided of $245.0 million in the nine months ended September 30, 2024. The company has a weighted average interest rate of 6.4% on its term loan component of the Senior Credit Facility.
| Debt Type | Outstanding Amount (2024) | Outstanding Amount (2023) |
|---|---|---|
| Term Loan | $765.3 million | $775.0 million |
| Revolving Credit Facility | $400.0 million | $70.0 million |
As of September 30, 2024, the company’s working capital was $187.0 million, a decrease from $751.1 million at the end of 2023, largely due to the reclassification of convertible notes becoming current during the year.
How Integra LifeSciences Holdings Corporation (IART) Makes Money
Revenue Streams
Integra LifeSciences generates revenue primarily through two segments: Codman Specialty Surgical (CSS) and Tissue Technologies (TT). For the nine months ended September 30, 2024, total revenues amounted to $1,167.9 million, compared to $1,144.5 million for the same period in 2023. This represents an increase of $23.4 million year-over-year.
| Segment | Revenue (9M 2024) | Revenue (9M 2023) | Change |
|---|---|---|---|
| Codman Specialty Surgical | $828.977 million | $787.371 million | $41.606 million (5.3% increase) |
| Tissue Technologies | $338.904 million | $357.163 million | ($18.259 million) (5.1% decrease) |
Cost Structure
The cost of goods sold (COGS) for the nine months ended September 30, 2024, was $534.892 million, up from $486.292 million in the same period in 2023. This reflects an increase in production costs and operational challenges.
| Expense Type | Amount (9M 2024) | Amount (9M 2023) |
|---|---|---|
| Cost of Goods Sold | $534.892 million | $486.292 million |
| Research and Development | $84.167 million | $79.908 million |
| Selling, General & Administrative | $538.463 million | $493.513 million |
Gross Margin Analysis
Gross margin for the nine months ended September 30, 2024, was $632.989 million, representing a gross margin percentage of 54.2%, down from 57.5% in the previous year. This decline is attributed to increased costs and operational inefficiencies.
Geographic Revenue Distribution
Revenue is also segmented geographically. For the three months ended September 30, 2024, the breakdown of revenues by region was as follows:
| Region | Revenue (3M 2024) | Revenue (3M 2023) |
|---|---|---|
| United States | $290.192 million | $269.838 million |
| Europe | $34.368 million | $41.524 million |
| Asia Pacific | $37.052 million | $48.777 million |
| Rest of World | $19.222 million | $22.282 million |
Operating Expenses
Total operating expenses for the nine months ended September 30, 2024, were $640.2 million, an increase from $582.8 million in the same period in 2023. This increase includes higher selling, general, and administrative expenses primarily due to the Acclarent acquisition.
| Expense Type | Amount (9M 2024) | Amount (9M 2023) |
|---|---|---|
| Total Operating Expenses | $640.2 million | $582.8 million |
| Research and Development | $84.167 million | $79.908 million |
| Selling, General & Administrative | $538.463 million | $493.513 million |
Net Income/Loss
For the nine months ended September 30, 2024, Integra reported a net loss of $26.379 million, compared to a net income of $47.907 million for the same period in 2023. This significant decline is primarily due to increased operational costs and special charges associated with acquisitions and quality issues.
Special Charges
The company incurred special charges totaling $115.258 million for the nine months ended September 30, 2024, compared to $100.937 million in the same period in 2023. These charges relate to acquisition, divestiture, integration, and operational restructuring efforts.
| Charge Type | Amount (9M 2024) | Amount (9M 2023) |
|---|---|---|
| Acquisition Charges | $31.361 million | $18.056 million |
| Structural Optimization | $15.112 million | $9.868 million |
| Boston Recall Transition | $33.676 million | $38.841 million |
Liquidity Position
As of September 30, 2024, Integra had cash and cash equivalents of $215.157 million, a decline from $276.402 million at the beginning of the year. The company's working capital was $187.0 million, down from $751.1 million at the end of 2023.
| Liquidity Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $215.157 million |
| Working Capital | $187.0 million |
Debt Obligations
Integra's long-term borrowings under senior credit facilities amounted to $1.132 billion as of September 30, 2024. The weighted average interest rate on these borrowings was approximately 6.4%.
| Debt Type | Amount |
|---|---|
| Long-term Borrowings (Senior Credit Facility) | $1.132 billion |
| Weighted Average Interest Rate | 6.4% |
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Resources:
- Integra LifeSciences Holdings Corporation (IART) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Integra LifeSciences Holdings Corporation (IART)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Integra LifeSciences Holdings Corporation (IART)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.