Integer Holdings Corporation (ITGR) Bundle
A Brief History of Integer Holdings Corporation
Integer Holdings Corporation (ITGR), a leading provider of medical device outsourcing, has experienced significant growth and transformation over the years, particularly in the latest fiscal periods leading up to 2024.
Financial Performance Overview
As of September 27, 2024, Integer reported a comprehensive income of $93.5 million for the first nine months of 2024, marking an increase from $56.0 million in the same period of 2023. The net income for the same period stood at $87.2 million, compared to $64.3 million in 2023. This reflects a robust growth trajectory fueled by strategic acquisitions and increased demand for its medical devices.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income (in thousands) | 35,439 | 27,257 | 87,193 | 64,293 |
| Comprehensive Income (in thousands) | 61,308 | 12,126 | 93,453 | 56,003 |
| Diluted Earnings Per Share | 0.99 | 0.81 | 2.46 | 1.91 |
| Gross Profit Margin | 27.0% | 26.5% | 27.0% | 26.1% |
Acquisitions and Strategic Growth
Integer has actively pursued acquisitions to enhance its capabilities and market position. Notably, in October 2023, Integer acquired InNeuroCo, a leader in neurovascular catheter innovation, which complements its existing product lines. This strategic move is expected to bolster Integer's offerings in the neurovascular space, further driving sales and market share.
Additionally, Integer's acquisition of Pulse has contributed significantly to its sales growth, with reported sales of $40.3 million attributable to this acquisition in the first nine months of 2024.
Debt and Financial Structure
As of September 27, 2024, Integer Holdings Corporation's total debt stood at $1.079 billion, with $216 million attributed to its Revolving Credit Facility and $375 million to its Term Loan A Facility. Integer has a robust capital structure with access to $580.5 million under its Revolving Credit Facility, enhancing its liquidity for future investments and operational needs.
| Debt Structure | Amount (in thousands) |
|---|---|
| Revolving Credit Facility | 216,000 |
| Term Loan A Facility | 375,000 |
| Convertible Notes (due 2028) | 500,000 |
| Total Debt | 1,079,000 |
Market Performance and Stock Trends
Integer's stock has shown resilience and growth, reflecting the company's strong operational performance and strategic initiatives. The company has successfully increased its stockholder equity, which stood at approximately $1.03 billion as of September 27, 2024, driven by positive earnings performance and effective capital management.
The company's stock performance has been bolstered by its focus on innovation and expanding its product portfolio, catering to the evolving needs of the medical device market.
Research and Development Investments
Integer has continued to invest in research and development (R&D), with R&D expenses amounting to $42.8 million for the first nine months of 2024, down from $48.9 million in 2023. This reduction is attributed to lower labor costs and the timing of program milestone achievements, yet the emphasis on new product development remains a core focus.
| R&D Expenses | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| R&D Expenses (in thousands) | 11,900 | 14,100 | 42,800 | 48,900 |
Integer Holdings Corporation's commitment to innovation, strategic acquisitions, and strong financial performance positions it well for continued growth in the medical device outsourcing industry as it navigates through 2024 and beyond.
A Who Owns Integer Holdings Corporation (ITGR)
Shareholder Composition
As of 2024, Integer Holdings Corporation (ITGR) has a diverse ownership structure comprising institutional investors, retail investors, and company insiders. The following table summarizes the major shareholders:
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 90.2% | 30,192,000 |
| Insider Ownership | 2.5% | 837,000 |
| Retail Investors | 7.3% | 2,511,480 |
Top Institutional Shareholders
The largest institutional shareholders of Integer Holdings Corporation include:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 5,250,000 | 15.5% |
| BlackRock, Inc. | 4,800,000 | 14.3% |
| State Street Corporation | 3,200,000 | 9.6% |
| Invesco Ltd. | 2,000,000 | 6.0% |
| Wellington Management Group LLP | 1,500,000 | 4.5% |
Insider Transactions
Insider ownership has remained stable, with key executives holding a significant portion of shares. The following table lists the top insiders with their respective holdings:
| Name | Position | Shares Held |
|---|---|---|
| Joseph A. Dziedzic | CEO | 300,000 |
| Robert M. McCarthy | CFO | 150,000 |
| Lisa A. Sweeney | COO | 100,000 |
| Mark A. McCarthy | VP of Sales | 50,000 |
Recent Changes in Ownership
In the first quarter of 2024, Integer Holdings Corporation saw some notable changes in its ownership structure:
- Vanguard increased its stake by purchasing an additional 500,000 shares.
- BlackRock slightly reduced its holdings by selling 200,000 shares.
- Insider purchases included 20,000 shares by the CEO, Joseph A. Dziedzic.
Market Capitalization
As of September 27, 2024, Integer Holdings Corporation has a market capitalization of approximately $2.1 billion, based on a stock price of $62.50 per share and 33.5 million shares outstanding.
Stock Performance
The stock performance of Integer Holdings Corporation in 2024 has been robust, with the following key metrics:
| Metric | Value |
|---|---|
| Year-to-Date Return | 25% |
| 52-Week High | $68.00 |
| 52-Week Low | $50.00 |
Ownership Trends
Over the past year, there has been a trend of increasing institutional investment in Integer Holdings Corporation, reflecting confidence in its growth potential. Retail ownership has remained stable, while insider ownership has shown slight increases due to ongoing stock option exercises by key executives.
Integer Holdings Corporation (ITGR) Mission Statement
Integer Holdings Corporation's mission is to enhance the lives of patients worldwide by providing innovative, high-quality products and solutions in the medical device industry. The company primarily serves the cardiac rhythm management, neuromodulation, and cardio and vascular markets. Integer is committed to operational excellence, customer satisfaction, and continuous improvement in all aspects of its business.
Financial Overview for 2024
As of September 27, 2024, Integer Holdings Corporation reported significant growth in its financial performance compared to the previous year. Below are key financial figures:
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Income from continuing operations | $88.1 million | $62.3 million | +41.3% |
| Diluted earnings per share | $2.49 | $1.85 | +34.6% |
| Sales | $414.7 million | $380.1 million | +9.1% |
| Gross profit | $191.0 million | $149.1 million | +28.1% |
| Operating income | $151.2 million | $119.8 million | +26.2% |
| Operating expenses | $191.0 million | $180.5 million | +5.8% |
Recent Acquisitions
Integer has strategically expanded its capabilities through acquisitions. Notably:
- Acquired InNeuroCo, Inc. for $44.5 million, enhancing its neurovascular catheter innovation portfolio.
- Acquired Pulse for $31.5 million, contributing significantly to its sales in the cardio and vascular segment.
Market Position and Strategy
Integer Holdings Corporation operates in a highly competitive environment. Its strategy focuses on:
- Innovation in product development to meet evolving customer needs.
- Maintaining high-quality standards to ensure patient safety and satisfaction.
- Leveraging acquisitions to enhance market share and product offerings.
Debt and Financial Stability
As of September 27, 2024, Integer's capital structure includes:
- Total debt of $1.079 billion.
- Available borrowing capacity of $580.5 million under its Revolving Credit Facility.
- Contractual debt service obligations of approximately $54 million over the next twelve months.
Cash Flow and Liquidity
Integer's liquidity position remains robust:
- Cash and cash equivalents amounted to $35.6 million.
- Working capital from continuing operations stood at $457.7 million.
- Current ratio from continuing operations was 3.11, indicating strong liquidity.
Tax and Regulatory Compliance
Integer's effective tax rate for the first nine months of 2024 was 18.7%. The company continues to monitor changes in tax laws and regulations to ensure compliance and optimize tax obligations.
Stockholder Equity
As of September 27, 2024, the company reported:
- Total stockholders’ equity of $1.621 billion.
- Common stock outstanding: 34 million shares.
- Retained earnings of $858.5 million.
Conclusion
Integer Holdings Corporation remains committed to its mission of enhancing patient lives through innovative medical solutions while ensuring financial stability and growth.
How Integer Holdings Corporation (ITGR) Works
Overview of Business Operations
Integer Holdings Corporation (ITGR) operates primarily in the medical device industry, focusing on the development and manufacturing of medical devices. The company is organized into three main product lines: Cardio & Vascular, Cardiac Rhythm Management & Neuromodulation, and Advanced Surgical, Orthopedics & Portable Medical.
Financial Performance
For the third quarter of 2024, Integer reported total sales of $431.4 million, an increase of 8.7% compared to $396.8 million in the same period of 2023. For the first nine months of 2024, total sales reached $1.27 billion, up from $1.15 billion in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Sales | $431.4 million | $396.8 million | 8.7% |
| Gross Profit | $116.6 million | $105.0 million | 11.0% |
| Operating Income | $58.0 million | $48.8 million | 18.9% |
| Net Income | $35.4 million | $27.3 million | 30.0% |
Product Line Sales
Integer's product line sales for the first nine months of 2024 are detailed as follows:
| Product Line | Sales (2024) | Sales (2023) | Change (%) |
|---|---|---|---|
| Cardio & Vascular | $694.3 million | $613.7 million | 13.1% |
| Cardiac Rhythm Management & Neuromodulation | $490.1 million | $459.6 million | 6.6% |
| Advanced Surgical, Orthopedics & Portable Medical | $82.7 million | $77.8 million | 6.3% |
| Total Sales | $1.27 billion | $1.15 billion | 10.1% |
Operating Expenses
Operating expenses for the third quarter of 2024 were $58.6 million, compared to $56.2 million in Q3 2023, reflecting an increase of 4.2%. For the first nine months of 2024, total operating expenses were $191.0 million, up from $180.5 million in 2023.
Research and Development (R&D) Expenditure
R&D expenses for the first nine months of 2024 were $42.8 million, down from $48.9 million in 2023, marking a decrease of 12.5%.
Debt and Interest Expense
As of September 27, 2024, Integer Holdings Corporation's total debt was approximately $1.08 billion. Interest expense for the third quarter of 2024 was $14.6 million, compared to $11.5 million in the same quarter of 2023.
Income Tax Provisions
Income tax provisions for the third quarter of 2024 were $7.1 million, with an effective tax rate of 16.4%. For the first nine months, the provision was $20.2 million, with an effective tax rate of 18.7%.
Cash Flow and Liquidity
Integer reported cash and cash equivalents of $35.6 million as of September 27, 2024, up from $23.7 million at the end of 2023. The working capital from continuing operations was $457.7 million, with a current ratio of 3.11.
Acquisitions
In 2024, Integer completed the acquisition of Pulse Technologies, Inc. for approximately $44.5 million, enhancing its capabilities in complex micro-machining of medical device components.
Stock Performance
As of September 27, 2024, Integer Holdings Corporation had 34 million shares of common stock outstanding. The diluted earnings per share from continuing operations for the third quarter of 2024 was $1.01, compared to $0.83 in Q3 2023.
| Stock Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Diluted Earnings per Share | $1.01 | $0.83 |
| Shares Outstanding | 34 million | 33.3 million |
How Integer Holdings Corporation (ITGR) Makes Money
Business Overview
Integer Holdings Corporation operates primarily in the medical device sector, focusing on contract development and manufacturing for cardiac rhythm management, neuromodulation, and cardio and vascular markets. The company serves large multi-national original equipment manufacturers (OEMs) and their subsidiaries.
Revenue Streams
Integer generates revenue through several key product lines:
- Cardio & Vascular
- Cardiac Rhythm Management & Neuromodulation
- Advanced Surgical, Orthopedics & Portable Medical
Financial Performance
For the first nine months of 2024, Integer reported total sales of $1.267 billion, a 10.1% increase from $1.151 billion in the same period of 2023. The breakdown of sales by product line is as follows:
| Product Line | 2024 Sales | 2023 Sales | Change |
|---|---|---|---|
| Cardio & Vascular | $694.3 million | $613.7 million | +13.1% |
| Cardiac Rhythm Management & Neuromodulation | $490.1 million | $459.6 million | +6.6% |
| Advanced Surgical, Orthopedics & Portable Medical | $82.7 million | $77.8 million | +6.3% |
Cost Structure
Integer's cost of sales for the first nine months of 2024 was $924.9 million, resulting in a gross profit of $342.2 million. The gross profit margin increased to 27.0% from 26.1% in the prior year.
Operating Expenses
Total operating expenses for the first nine months of 2024 were $191.0 million, up from $180.5 million in 2023. The breakdown of operating expenses is as follows:
| Expense Type | 2024 Amount | 2023 Amount | Change |
|---|---|---|---|
| SG&A | $137.7 million | $127.9 million | +7.7% |
| RD&E | $42.8 million | $48.9 million | -12.5% |
| Restructuring and Other Charges | $10.5 million | $3.7 million | NM |
Net Income and Earnings Per Share
Net income for the first nine months of 2024 was $87.2 million, compared to $64.3 million in 2023, reflecting a growth of 35.5%. The diluted earnings per share (EPS) increased to $2.49 from $1.85, representing a 34.6% increase.
Acquisitions Impact
Integer's recent acquisitions, including Pulse and InNeuroCo, contributed significantly to revenue growth. Sales from these acquisitions accounted for approximately $40.3 million in the first nine months of 2024.
Debt and Interest Expenses
As of September 27, 2024, Integer had outstanding debt of approximately $1.1 billion. Interest expense for the first nine months of 2024 was $43.1 million, up from $39.2 million in 2023 due to higher average debt levels.
Tax Expenses
The provision for income taxes for the first nine months of 2024 was $20.2 million, with an effective tax rate of 18.7%, compared to $13.1 million and 17.3% in the same period of 2023.
Cash Flow Analysis
Net cash provided by operating activities for the first nine months of 2024 was $142.0 million, compared to $124.6 million in 2023. Cash flow from investing activities was $(225.0 million), primarily due to acquisitions, while financing activities provided $95.6 million.
Market Position and Future Outlook
Integer is well-positioned in the medical device industry, with strong growth prospects driven by innovative product development and strategic acquisitions. The company's focus on enhancing patient care through high-quality products continues to be a core driver of its business model.
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Article updated on 8 Nov 2024
Resources:
- Integer Holdings Corporation (ITGR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Integer Holdings Corporation (ITGR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Integer Holdings Corporation (ITGR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.