Integra LifeSciences Reports $1.7 Million Net Income on 61% Growth in Revenues.Business Editors
PLAINSBORO, N.J.--(BUSINESS WIRE)--Nov. 8, 2000
Earnings Before Interest, Taxes, Depreciation and Amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Totals $3.4 Million
Integra LifeSciences Holdings Corporation (Nasdaq: IART IART Impact Area Review Team
IART Intraatrial Reentrant Tachycardia
IART Initial Access Response Time (IBM)
IART Image-Guided Adaptive Radiation Therapy ) today reported financial results for the third quarter ended September 30, 2000. Revenues for the quarter were $19.6 million, an increase of approximately $7.4 million, or 61 percent, from revenues of $12.1 million for the comparable quarter ended September 30, 1999. Product sales for the quarter grew by more than $5.4 million, or 47 percent, to $16.9 million, as a result of sales growth in existing product lines and sales from product lines acquired earlier this year. Other revenues for the quarter increased $2.0 million to $2.7 million, as the Company earned $2.2 million of revenues under various licensing and distribution agreements.
For the third quarter of 2000, the Company reported income from operations of $2.0 million, which included $668,000 of amortization of goodwill and other intangibles, the first time in the Company's history that it has reported an operating profit Operating profit (or loss)
Revenue from a firm's regular activities less costs and expenses and before income deductions.
See operating income. . This compares to the $2.7 million operating loss operating loss
The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. reported in the third quarter of 1999, which included $270,000 of goodwill and intangible amortization and $740,000 of non-recurring costs associated with acquisitions.
Net income for the third quarter of 2000 was $1.7 million, or $0.07 per share, as compared to a net loss of $2.0 million, or $0.14 per share, in the comparable prior year quarter. Included in the per share amounts for both quarters is a $0.02 per share effect of dividends on preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders.
Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. .
Earnings before interest, taxes, depreciation and amortization (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) for the third quarter of 2000 were $3.4 million, as compared to a negative $1.8 million in the comparable prior year quarter.
Product sales for the Integra NeuroSciences division were $11.9 million during the third quarter of 2000, an increase of $4.8 million over the comparable quarter of 1999. Sales of the DuraGen(TM) Dural Graft Matrix dural graft matrix Neurosurgery A biosynthetic substrate indicated for repair of the dura mater in the cranial cavity and spinal cord , which was launched in the third quarter of 1999, increased to $1.7 million during the third quarter of 2000, while sales of the recently acquired Clinical Neuro Systems(TM) line of external drainage products and Selector(R) Integra Ultrasonic Aspirator as·pi·ra·tor
An apparatus for removing fluid from a body cavity, consisting usually of a hollow needle and a cannula, connected by tubing to a container in which a vacuum is created by a syringe or a suction pump. and Ruggles(TM) surgical instrumentation product lines totaled $2.9 million.
The Integra NeuroSciences division also includes the Camino(R) and Ventrix(R) lines of intracranial pressure intracranial pressure
n. Abbr. ICP
Pressure within the cranial cavity.
intracranial pressure (in´tr monitors, the Integra Coblation(R) Neurosurgical Systems for tumor removal Tumor Removal Definition
Tumor removal is a surgical procedure to remove an abnormal growth.
A tumor can be either benign, like a wart, or malignant, in which case it is a cancer. , the Heyer-Schulte(R) line of hydrocephalus hydrocephalus (hī'drəsĕf`ələs), also known as water on the brain, developmental (congenital) or acquired condition in which there is an abnormal accumulation of body fluids within the skull. management products, Neuro Navigational(TM) flexible endoscopes for minimally invasive neurosurgery neurosurgery /neu·ro·sur·gery/ (noor´o-sur?jer-e) surgery of the nervous system.
Surgery on any part of the nervous system. , and the Redmond(TM) line of surgical instruments for brain and spine surgery.
"The success of our DuraGen(TM) product and the new products acquired through recent acquisitions are leading the growth in the Integra NeuroSciences business," said Stuart Essig, President and Chief Executive Officer of Integra. "Our broad line of innovative, life saving products and the experience of our direct sales force of approximately 50 neurospecialists in the United States and England have made Integra a leader in the neurosurgery market."
Product sales for the Integra LifeSciences division were $5.0 million, an increase of $0.6 million from the third quarter of 1999. Sales growth in the Integra LifeSciences business was led by sales of collagen matrices to the Genetics Institute division of American Home Products Corporation for use in their human recombinant bone morphogenetic morphogenetic /mor·pho·ge·net·ic/ (mor?fo-je-net´ik) producing growth; producing form or shape. protein-2 ("rhBMP-2") program for various orthopedic and periodontal applications, and $0.5 million of sales of the recently acquired Spembly Medical line of cyrosurgery products.
The Integra LifeSciences division includes all of the Company's products sold outside the neurosurgery market, including INTEGRA(R) Dermal dermal /der·mal/ (der´mal) pertaining to the dermis or to the skin.
der·mal or der·mic
Of or relating to the skin or dermis. Regeneration Template, tyrosine polycarbonate A category of plastic materials used to make a myriad of products, including CDs and CD-ROMs. materials for the manufacture of resorbable orthopedic implants, collagen matrices for use in Genetics Institute's and Medtronic Sofamor Danek's rhBMP-2 programs, the Spembly Medical line of cryosurgery cryosurgery (krī`ōsr'jərē), bloodless surgical technique using a supercooled probe to destroy diseased or superfluous tissue. products, a broad line of hemodynamic he·mo·dy·nam·ics
n. (used with a sing. verb)
The study of the forces involved in the circulation of blood.
he shunting products, VitaCuff(TM) and BioPatch(TM) infection control devices, Biomend(TM) products for guided tissue repair following periodontal surgery periodontal surgery, (per´ēōdon´tl),
n , and Helistat(R) and various other collagen hemostatic hemostatic /he·mo·stat·ic/ (he?mo-stat´ik)
1. causing hemostasis, or an agent that so acts.
2. due to or characterized by stasis of the blood.
adj. agents for general and dental surgery.
"Sales of Integra LifeSciences division products through our strategic marketing and distribution partners continue to be strong, and operating results have benefited from sales growth and from the research funding received from strategic partners and government grants," said Mr. Essig. "In the third quarter, the Integra LifeSciences division financed more than 60% of its research and development expenses through funding received from strategic partners and government grants."
Consolidated gross margins on product sales increased to 57% of product sales in the third quarter of 2000 from 52% of product sales in the third quarter of 1999, after adjusting for fair value acquisition related charges recorded in that quarter. Consolidated other operating expenses Operating expenses
The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. (excluding cost of product sales) increased $1.5 million from $8.8 million in the third quarter of 1999 to $10.3 million in the third quarter of 2000. In the third quarter of 2000, total operating expenses in the Integra NeuroSciences division increased $2.4 million to $10.2 million, with the division reporting a $1.9 million operating profit, and total operating expenses in the Integra LifeSciences division increased $0.1 million to $5.3 million, with the division reporting a $2.2 million operating profit. Corporate operating expenses decreased $0.1 million to $1.5 million, while intangible asset Intangible Asset
An asset that is not physical in nature.
Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. amortization increased $0.4 million to $0.7 million.
"Integra had an outstanding quarter and for the first time in the Company's history reported income from operations, with both the Integra NeuroSciences and Integra LifeSciences divisions reporting operating profits," remarked Mr. Essig. "This quarter was a turning point in the Company's history and, through a continued focus on sales growth and operating cost containment cost containment,
n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. , I expect that we will continue to show profitable results in the future."
The Company has scheduled a conference call for 9:00 am EST EST electroshock therapy.
electroshock therapy today, November 8, 2000, to discuss the financial results for this quarter. The call is open to all listeners and will be followed by a question and answer session. Access to the live conference call is available by dialing (800) 865-4460 in the United States or (973) 633-1010 for international listeners. Access to the call will also be available through a live webcast of the call via a link provided in the Investor Relations Investor relations
The process by which the corporation communicates with its investors. section of Integra's website at www.Integra-LS.com. Listeners participating via the live webcast will not be able to ask questions in the question and answer session following the call.
Integra LifeSciences Holdings Corporation develops, manufactures and markets medical devices, implants and biomaterials primarily used in the treatment of spinal and cranial cranial /cra·ni·al/ (-al)
1. pertaining to the cranium.
2. toward the head end of the body; a synonym of superior in humans and other bipeds.
adj. disorders, soft tissue repair and orthopedics. Integra is a leader in applying the principles of biotechnology to medical devices that improve the patient's quality of life. The Company sells its products in approximately 80 countries. Its corporate headquarters are located in Plainsboro, New Jersey, and major facilities are located in San Diego, California “San Diego” redirects here. For other uses, see San Diego (disambiguation).
San Diego is a coastal Southern California city located in the southwestern corner of the continental United States. As of 2006, the city has a population of 1,256,951. , Andover, England, and Anasco, Puerto Rico. The Company has approximately 485 permanent employees. Please visit the Company's website at (http://www.integra-LS.com).
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ from predicted results. Forward-looking factors include, but are not limited to, statements concerning future profits, market potential, potential therapeutic applications, growth in product sales as well as operating cost containment. In addition, the economic, competitive, governmental, technological and other factors identified under the heading "Risk Factors" included in the Business section of Integra's Annual Report on Form 10-K for the year ended December 31, 1999 and information contained in subsequent filings with the Securities and Exchange Commission could affect actual results.
INTEGRA LIFESCIENCES HOLDINGS CORPORATION CONSOLIDATED FINANCIAL RESULTS (In thousands, except per share data) (UNAUDITED) STATEMENT OF OPERATIONS DATA: Three Month Period Nine Month Period Ended September 30 Ended September 30 2000 1999 2000 1999 Product sales $16,890 $11,464 $45,810 $28,202 Other revenue 2,669 663 5,071 1,443 Total revenue 19,559 12,127 50,881 29,645 Cost of product sales (including depreciation of $473, $276, $1,272, and $914, respectively) 7,345 6,051 20,999 16,434 Research and development 1,741 2,198 5,497 6,393 Selling and marketing 4,072 2,409 10,856 6,883 General and administrative 3,481 3,584 10,830 9,771 Amortization and other depreciation 964 582 2,609 1,221 Total costs and expenses 17,603 14,824 50,791 40,702 Operating income (loss) 1,956 (2,697) 90 (11,057) Gain on disposition of product line -- -- 1,146 4,161 Other (expense) income, net (159) 127 (195) 389 Net pre-tax income (loss) 1,797 (2,570) 1,041 (6,507) Income tax expense (benefit) 80 (541) 303 (1,322) Net income (loss) $ 1,717 $(2,029) $ 738 $(5,185) Net income (loss) per Common share - Basic $ 0.07 $(0.14) $(0.26) $(0.34) - Diluted $ 0.07 $(0.14) $(0.26) $(0.34) Weighted average Common shares outstanding - Basic 17,439 16,810 17,335 16,792 - Diluted 19,534 16,810 17,335 16,792 DIVISIONAL REPORTING DATA: Integra NeuroSciences Revenues $12,127 $ 7,046 $32,420 $14,961 Operating expenses 10,203 7,846 28,321 18,391 Operating income (loss) 1,924 (800) 4,099 (3,430) Integra LifeSciences Revenues 7,432 5,081 18,461 14,684 Operating expenses 5,257 5,132 16,062 17,074 Operating income (loss) 2,175 (51) 2,399 (2,390) Corporate operating expenses 1,475 1,574 4,590 4,740 Intangible amortization 668 272 1,818 497 Consolidated operating income (loss) 1,956 (2,697) 90 (11,057) BALANCE SHEET DATA: 30-SEP 31-DEC 2000 1999 Cash, cash equivalents & investments $17,054 $ 23,612 Working capital 25,761 28,014 Total assets 85,760 66,253 Long-term debt 6,954 7,625 Total stockholders' equity 51,127 37,989 SOURCE: Integra LifeSciences Holdings Corporation