1Q17 Earnings Conference Call May 8, 2017
1Q17 Earnings Conference Call
May 8, 2017
Presentation of Financial Information & Forward Looking Statements
Historical financial and operating data in this presentation reflect the consolidated results of Integer for the periodsindicated.
This presentation includes financial information prepared in accordance with accounting principles generally accepted inthe United States, or GAAP, as well as other financial measures referred to as non-GAAP. The non-GAAP financialmeasures in this presentation, which include Adjusted Net Income, Adjusted Diluted EPS, Earnings Before Interest TaxesDepreciation and Amortization (EBITDA), and Adjusted EBITDA, should be considered in addition to, but not assubstitutes for, the information prepared in accordance with GAAP. For reconciliations of these non-GAAP financialmeasures to the most comparable GAAP measures, please refer to the appendix to this presentation and the earningsrelease associated with this quarterly period which can be found in the investor relations section of our corporate website(www.integer.net).
Statements made in this presentation whether written or oral may be “forward-looking statements” within the meaning ofSection 27A of the Securities Act of 1933, as amended, and Section 21E of Securities Exchange Act of 1934, asamended, and involve a number of risks and uncertainties. These statements can be identified by terminology such as“may,” “will,” “should,” “could,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or“continue” or “variations” or the negative of these terms or other comparable terminology. These statements are based onthe company’s current expectations and speak only as of May 8, 2017. The Company’s actual results could differmaterially from those stated or implied by such forward-looking statements. The Company assumes no obligation toupdate forward-looking information, including information in this presentation, to reflect changed assumptions, theoccurrence of unanticipated events or changes in future operating results, financial conditions or prospects.
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 2
http://www.integer.net/
Agenda
• Opening Comments
• Financial Results
• Product Line Review
• Strategic / Growth Initiatives
• Closing Comments
• Question & Answer Period
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 3
Opening Comments
Quarterly Results Reflect Continued Progress
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 5
“First quarter results
are in-line with our
full-year expectations
and demonstrate
continued progress
as we move our
business back to a
growth trajectory
following a
challenging 2016.”
• 1Q17 Financial Results• Revenue trajectory continues to improve• Adjusted Net Income up 26% organically• Strong cash flow generation supports continued deleveraging
• Operational and Commercial Results• Nearly complete with initial integration plans, focus shifting to
optimization of new business processes• Integration synergies on track for ~$50 million of cumulative
savings through YE 2017• Improving customer relationships yielding dividends in 1Q17
‒ Overcame a previously strained relationship to sign a multi-year outsourcing agreement of a 100% insourced product.
‒ Signed agreement with a large customer to manage a complex portion of their supply chain for an existing product line we currently manufacture
Revenue Recovery – Growth in 2017
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 6
4Q15 4Q16 1Q17 4Q17
0% to 3%
(2)%
(4)%
(1)%
Org
anic
Gro
wth
Revenue – Trailing 4 Quarters
Revenue trajectory continues to improve
OutlookTrailing 4-quarter Actuals
(5)%
5%
0%
Financial Results
1Q17 Adjusted Financial Results(1)
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 8
$( in millions, except per share amounts)
(1) Refer to the appendix of this presentation for a reconciliation of Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS to the most directly comparable GAAP measure(2) Organic growth for Revenue excludes the impact of foreign exchange and excludes the results of Nuvectra Corporation (“Nuvectra”) prior to its spin-off on March 14, 2016(3) Organic growth for Adjusted EBITDA and Adjusted Net Income exclude the impact of foreign exchange reported in other (income) loss, net
Revenue Adjusted EBITDA Adjusted Net Income
1Q16 1Q17 1Q16 1Q171Q16 1Q17
$331 $345
+5% organic(2)
$65 $64$13 $13
Adjusted EPS $0.42 $0.41
% Growth+4% reported
+4% organic(3)
(2)% reported+26% organic(3)
(1)% reported
-50%
-30%
-10%
10%
-20%
-10%
0%
10%
Continued Revenue Improvement in 1Q17
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 9
-15%
-10%
-5%
0%
5%
10%
1Q16 2Q16 3Q16 4Q16 1Q17
(7)% (8)%
(1)%0%
5%
0%
Integer(1)
1Q16 2Q16 3Q16 4Q16 1Q17
0%
0%
Advanced Surgical, Orthopedics & Portable Medical
-20%
-10%
0%
10%
0%
Cardiac & Neuromodulation
-20%
-10%
0%
10%
0%
Cardio & Vascular
Non-Medical (Electrochem)
(1) Excludes impact from changes in foreign currency exchange rates as well as the results of Nuvectra Corporation (“Nuvectra”) prior to its spin-off on March 14, 2016. For reconciliations of non-GAAP financial measures to the most directly comparable GAAP measure, please refer to the appendix of this document
Qua
rterly
YO
Y %
Cha
nge
Qua
rterly
YO
Y %
Org
anic
Cha
nge
• Returning to YOY revenue growth for the first time in five quarters
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 10
(1) Adjusted EBITDA, Adjusted EPS and Adjusted Net Income provided on a comparable basis. Comparable basis amounts for 1Q16 exclude the results of Nuvectra Corporation (“Nuvectra”) prior to its spin-off on March 14, 2016. Refer to the investor relations section of our website for historical pro forma information that contains a reconciliation of 1Q16 comparable amounts to as reported amounts. Refer to the appendix of this presentation for a reconciliation of Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS to the most directly comparable GAAP measure
(2) Organic amounts exclude the impact of foreign exchange reported in other (income) loss, net
Adjusted EBITDA(1)
$( in millions except per share amounts)
Driving Organic Growth to the Bottom Line
Adjusted EPS(1)
$0.42
$0.09 $(0.10)
$0.41
1Q16 1Q17
$13.1Adjusted
Net Income
$2.9 $(3.1) $12.9
Organic(2) FX
1Q16 1Q17
$65 $64$(4)$3
Organic(2) FX
$27 $30 $38 $120
$230
$938
$360
2017 2018 2019 2020 2021 2022 20231Q17
DebtPayments
Continued Strong Cash Flow Generation
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 11
• Generating sufficient cash flow to meet current debt obligations and accelerate debt repayment
• Repaid $29M of debt in 1Q17 – total payments of $73M since acquisition
• Continued focus on reducing leverage
• Near-term mandatory debt repayments very manageable
• Reduced interest on $1.0B of LT debt 75 bps
• No significant maturities until 2020
• 35% fixed rate
• Well within covenant compliance requirements
$( in millions)
(1) Free Cash Flow defined as Cash from Operations less Capital Expenditures
$( in millions)Cash Flow From Operations Free Cash Flow
$( in millions)
Future Mandatory Debt Repayment Schedule$( in millions)
$11
$18
$29
Accelerated RepaymentRequired Repayment
$(8)
$21 $22 $26
2Q16 3Q16 4Q16 1Q17
$4
$38 $34
$39
2Q16 3Q16 4Q16 1Q17
2016 2017
Reaffirming our Full-Year 2017 Outlook
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 12
2016 2017 2016 2017
Revenue Adjusted EPS Cash Flow from Operations
$1,386$2.68
$1,390 - $1,430$2.70 - $3.10
$106
~$150
Outlook Outlook Outlook
Product Line Review
-20%
-15%
-10%
-5%
0%
5%
10%
15%
Advanced Surgical, Orthopedics & Portable Medical
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 14
Providing a wide range of technologies and solutions to the Advanced Surgical and Orthopedic markets
0%
YOY Growth(1)(2)
1Q16 2Q16 3Q16 4Q16 1Q17
7%
• 1Q17 Revenue up YOY, primarily driven by return to expected Portable Medical volumes, following completion of facility transfer in 2016
• Overall revenue performance is trending positively as a result of new product ramps in the Orthopedic and Arthroscopic product lines
• Expect incremental revenue growth in 2017 as new product launches reach anticipated volumes and base business sees increasing market growth
• Customer relationships remain strong; balancing customer needs for improved costs with continuous improvement initiatives and revenue growth
• Investments in innovation continue with focus on Wireless technology and Single Use Orthopedic instrumentation
(12)%
(5)% (3)% (3)%
(1) YOY growth rates calculated using the Company’s revised method to present sales by product-line. See slide 25 for further information.
(2) 2017 YOY growth rate excludes the impact of foreign exchange
% C
hang
e
Orthopedic Implants & Instruments
Biopsy & Drug Delivery
Portable Medical (Power Solutions)
Laparoscopy &General Surgery Arthroscopy Products
-20%
-15%
-10%
-5%
0%
5%
10%
15%
Cardio & Vascular
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 15
Offering a full-range of products and services for catheter-based interventional vascular devices and a suite of supply chain solutions to support the
development and manufacturing of complex components, sub-assemblies and finished devices
Steerable Sheaths Catheters & Sheaths Guidewires, Stylets & Accessories
Introducers
0%
1Q16 2Q16 3Q16 4Q16 1Q17
10%
• Growth driven by longevity and strength of existing OEM and contract component business
• Historical variability in growth driven by customer stocking actions taken in advance of product facility transfers – expect to see more normalized demand pattern in future quarters
• Positive outlook for 2017 – several new opportunities, well-positioned in sales process
• Strong customer relationships enabling deeper penetration and increased customer opportunities for future revenue
(2)%
0% 2%
9%
YOY Growth(1)
% C
hang
e
(1) YOY growth rates calculated using the Company’s revised method to present sales by product-line. See slide 25 for further information.
-20%
-15%
-10%
-5%
0%
5%
10%
15%
Cardiac & Neuromodulation
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 16
Providing technology solutions for the active implantable medical device industry by partnering with customers to bring high-quality products to
established and emerging markets – from initial concept through to high-volume manufacturing
Pulse Generator Components & Assemblies
Leads & Lead Components, Adaptors & Assemblies
• Demand strengthening and production ramping throughout the year on several key customer product lines including batteries, enclosures, feedthroughs and machined components
• Driving mid- and long-term growth through active support of higher growth rate neuromodulation customers
• Positive outlook for 2017 – increased focus on customer relationships and value-added services expected to accelerate revenue opportunities
Pulse Generators & External Solutions (Programmers, Chargers, Patient Devices)
YOY Growth(1)(2)
0%
1Q16 2Q16 3Q16 4Q16 1Q17
(3)%(4)%
(13)%
3%
(5)%
(1) YOY growth rates calculated using the Company’s revised method to present sales by product-line. See slide 25 for further information.
(2) Excludes the results of Nuvectra Corporation prior to its spin-off on March 14, 2016
% C
hang
e
-50%
-40%
-30%
-20%
-10%
0%
10%
Electrochem
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 17
Enhancing lives worldwide by providing superior power solutions that enable the success and advancement of our customers’ critical applications
Battery Packs
• Revenue continues to trend towards YOY growth driven by increased North American energy customer activity
• Positive outlook for balance of 2017 pending continued stabilization in the Energy market
• Demonstrated history of operational and quality performance driving incremental revenue opportunities through market share gains and increased value add
• Military and Environmental customer volumes dependent on government funding
• Aggressively pursuing new customer and expanded market opportunities
0%
1Q16 2Q16 3Q16 4Q16 1Q17
(3)%
Battery ChargersBattery Cells
(34)%(41)%
(26)%
(14)%
YOY Growth(1)
% C
hang
e
(1) YOY growth rates calculated using the Company’s revised method to present sales by product-line. See slide 25 for further information.
Strategic / Growth Initiatives
Key Strategic Focus Areas
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 19
“Our vision is to
enhance the lives of
patients worldwide
by being our
customers’ partner of
choice for innovative
technologies and
services.”
• Executing our strategy• Serving the needs of our customers as their global device outsource partner
• Leveraging our global presence and breadth of capabilities to provide high quality manufactured products – from components to finished devices
• Delivering innovative design, process solutions and services
• Optimizing operations and commercial actions• Continuous improvement and productivity initiatives across global operations
• Executing supply chain optimization programs
• Standardizing IT systems across the organization
• Penetrating high-growth market areas
• Transitioning leadership to drive further growth• CEO search progressing well
• Interim CEO priorities – Execute existing strategy and deliver on Integer commitments to customers, associates and investors
• New CFO (Gary Haire) started May 1st, focusing on profitable growth, cash flow generation and operational improvements
Closing Comments
Well-Positioned for Future Growth
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 21
Operating & Manufacturing
Scalability
Strong Customer Relationships
Business Optimization
Driving Strong Cash Generation
Innovation Pipeline to Enable
Customer Success
Engineered Components
Engineered Sub-Assemblies
Contract Manufactured
Devices
Customer Owned / Co-Developed
Devices
Integer Owned Systems, Devices & Co-Developed
Product Solutions(More IP Focused)
Technical Solutions(Traditional CMO)
80% 20%
Broad Product Continuum
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Question & Answer Period
APPENDIX
$114 $122 $129 $126 $125
$107 $107 $108 $116 $104
$98 $109 $100 $107 $105
$12 $10 $9
$11 $11
1Q16 2Q16 3Q16 4Q16 1Q17
Historical Financial Results
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 24
$0.42
$0.56
$0.83 $0.87
$0.41
1Q16 2Q16 3Q16 4Q16 1Q17
Revenue(1) Adjusted EPS(1)(2)
$345$331$348 $347 $360
Non-Medical
Cardiac & Neuro
Cardio & Vascular
Adv. Surgical, Ortho &Portable Medical (1) Revenue and Adjusted EPS information provided on a comparable basis. Comparable basis amounts for 2016 exclude the results of Nuvectra Corporation
(“Nuvectra”) prior to its spin-off on March 14, 2016. Refer to the investor relations section of our website for historical pro forma information that contains a reconciliation of 1Q16 comparable amounts to as reported amounts.
(2) Refer to the appendix of this presentation for a reconciliation of Adjusted Net Income to the most directly comparable GAAP measure
$( in millions, except per share amounts)
Revised Product-Line Historical Financial Results(1)
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 25
2015 Product-Line Sales(2) 1Q15 2Q15 3Q15 4Q15 FY2015Medical Sales
Advanced Surgical, Orthopedics, & Portable Medical 112,081$ 115,113$ 103,764$ 109,941$ 440,899$ Cardiac & Neuromodulation 111,612 123,280 105,448 121,449 461,789 Cardio & Vascular 116,464 121,979 127,231 115,027 480,701
Total Medical Sales 340,157$ 360,372$ 336,443$ 346,417$ 1,383,389$ Non-Medical Sales (Electrochem) 17,710 16,545 11,977 13,217 59,449 Total Sales 357,867$ 376,917$ 348,420$ 359,634$ 1,442,838$
2016 Product-Line Sales(2) 1Q16 2Q16 3Q16 4Q16 FY2016Medical Sales
Advanced Surgical, Orthopedics, & Portable Medical 98,362$ 109,391$ 100,203$ 106,745$ 414,701$ Cardiac & Neuromodulation 107,353 106,919 108,147 115,942 438,361 Cardio & Vascular 113,671 122,253 129,347 125,586 490,857
Total Medical Sales 319,386$ 338,563$ 337,697$ 348,273$ 1,343,919$ Non-Medical Sales (Electrochem) 11,672 9,819 8,870 11,318 41,679 Total Sales 331,058$ 348,382$ 346,567$ 359,591$ 1,385,598$
(1) During 1Q17, the Company revised the method used to present sales by product-line in order to align the legacy Greatbatch and Lake Region methodologies. The Company believes the revised presentation will provide improved reporting and better transparency into the operational results of its business and markets. Prior period amounts have been reclassified to conform to the new product-line sales reporting presentation.
(2) Sales information provided on a comparable basis. Comparable basis amounts for 2016 exclude the results of Nuvectra Corporation (“Nuvectra”) prior to its spin-off on March 14, 2016. Comparable amounts for 2015 exclude the results of Nuvectra and include the results of the former Lake Region Medical.
4Q16 Slides -->
Rolling Revenue
Quarterly Amounts1Q152Q153Q154Q151Q162Q163Q164Q161Q172Q173Q174Q174Q154Q161Q174Q17
Cardio and Vascular$ 115$ 119$ 124$ 112$ 114$ 122$ 129$ 126$ 1253%
Cardiac/Neuromodulation$ 115$ 127$ 110$ 124$ 107$ 107$ 108$ 116$ 104-2%-4%-1%0%
Advanced Surgical, Orthopedics & Portable Medical$ 110$ 115$ 103$ 110$ 98$ 110$ 100$ 107$ 105
Non-Medical$ 18$ 17$ 12$ 13$ 12$ 10$ 9$ 11$ 11
$ 358$ 378$ 349$ 359$ 331$ 348$ 347$ 360$ 345
Rolling 4-Quarter Amounts4Q151Q162Q163Q164Q161Q174Q17
Cardio and Vascular$ 470$ 469$ 472$ 477$ 491$ 502$ 1,390
Cardiac/Neuromodulation$ 476$ 468$ 448$ 446$ 438$ 43540
Advanced Surgical, Orthopedics & Portable Medical$ 438$ 426$ 421$ 418$ 415$ 422
Non-Medical$ 60$ 54$ 46$ 43$ 42$ 41
$ 1,444$ 1,417$ 1,387$ 1,385$ 1,386$ 1,400$ - 0$ - 0$ 1,430
-1%
Rolling 4-Quarter Revenue
Cardio and Vascular
4Q151Q162Q163Q164Q161Q174Q17470468.67099999999999471.92399999999998477.27099999999996490.85700000000003502.295000000000021390Cardiac/Neuromodulation
$1,430
4Q151Q162Q163Q164Q161Q174Q17476468.35199999999998448.27099999999996446.41800000000001438.36434.8209999999999740Advanced Surgical, Orthopedics & Portable Medical
4Q151Q162Q163Q164Q161Q174Q17438426.33100000000002420.89600000000002418.084414.84100000000001421.65600000000001Non-Medical
4Q151Q162Q163Q164Q161Q174Q176053.70300000000000346.34799999999999943.23299999999999741.53899999999999441.182000000000002
4Q154Q161Q174Q170.034Q154Q161Q174Q17-0.02-0.04-0.010
$1,386
$1,400
$1,385
$1,387
$1,417
$1,444
Revenue
Revenue Details1Q174Q163Q16
1Q152Q153Q154Q151Q162Q163Q164Q161Q17YOY%QOQ%LTMYOY%QOQ%YTD%YOY%QOQ%YTD%
Cardio and Vascular$ 116$ 122$ 127$ 115$ 114$ 122$ 129$ 126$ 12510%-0%5%9.2%-2.9%2.1%1.7%5.8%-0.1%
Cardiac/Neuromodulation$ 112$ 123$ 105$ 121$ 107$ 107$ 108$ 116$ 104-3%-10%-5%-4.5%7.2%-5.1%2.6%1.1%-5.3%
Advanced Surgical, Orthopedics & Portable Medical$ 112$ 116$ 104$ 112$ 98$ 110$ 100$ 107$ 1057%-2%-2%-4.3%6.6%-6.4%-3.6%-8.6%-7.2%
Non-Medical$ 17$ 16$ 12$ 13$ 12$ 10$ 9$ 11$ 11-3%0%-22%-12.3%27.3%-28.9%-27.3%-7.9%-33.6%
$ 358$ 377$ 349$ 361$ 331$ 348$ 347$ 360$ 3454%-4%-1%-0.6%3.8%-4.1%-0.6%-0.5%-5.3%
Integer-7%-8%-1%-0%5%
Amy Wakeham: Amy Wakeham:Organic Constant Currency
C&V-2%0%2%9%10%
CRMN-4%-13%3%-5%-3%
ASO-12%-5%-4%-4%7%
ELECTROCHEM-33%-40%-27%-12%-3%
Integer
1Q162Q163Q164Q161Q17
-7%-8%-1%-0%5%
1Q162Q163Q164Q161Q17
C&V-2%0%2%9%10%
CRMN-4%-13%3%-5%-3%
ASO-12%-5%-4%-4%7%
ELECTROCHEM-33%-40%-27%-12%-3%
Cardio and Vascular
1Q162Q163Q164Q161Q17113.671185105071122.253359585129129.346703008486125.585570224169125.108809338637Cardiac/Neuromodulation
1Q162Q163Q164Q161Q17107.352336597678106.91896797919399108.146981976204115.941976250189103.813140284005Advanced Surgical, Orthopedics & Portable Medical
1Q162Q163Q164Q161Q1798.3309374606539109.56532849119201100.18804689810401106.757068819778105.14561129859Non-Medical
1Q162Q163Q164Q161Q1711.703491829.64499527000000088.884881760000000711.30614017000000111.34579473
1Q162Q163Q164Q161Q17-7.4673945688922203E-2-7.5642564482374747E-2-6.4068262761733949E-3-3.6536369836234219E-30.05
C&V1Q162Q163Q164Q161Q17-2.398144938685742E-22.2456045811584486E-31.6630592642037218E-29.1792900927416834E-20.10062026029722243
CRMN1Q162Q163Q164Q161Q17-3.8162689591148331E-2-0.132717734811419572.5596806656107616E-2-4.5343209948390681E-2-3.2968041738455786E-2
ASO1Q162Q163Q164Q161Q17-0.12453389444318189-5.2698883550417019E-2-3.5808869488154982E-2-4.2923996612208686E-26.9303456408751504E-2
ELECTROCHEM1Q162Q163Q164Q161Q17-0.32661487817558199-0.39610392634892644-0.27255279978450375-0.12277891953081789-3.0563279361526505E-2
PL Revenue
Revenue Details1Q174Q163Q16
1Q152Q153Q154Q151Q162Q163Q164Q161Q17YOY%QOQ%LTMYOY%QOQ%YTD%YOY%QOQ%YTD%
Cardio and Vascular$ 116$ 122$ 127$ 115$ 114$ 122$ 129$ 126$ 12510%-0%5%9.2%-2.9%2.1%1.7%5.8%-0.1%
Cardiac/Neuromodulation$ 112$ 123$ 105$ 121$ 109$ 107$ 108$ 116$ 104-4%-10%-5%-4.5%7.2%-4.8%2.6%1.1%-4.9%
Advanced Surgical, Orthopedics & Portable Medical$ 112$ 116$ 104$ 112$ 98$ 110$ 100$ 107$ 1057%-2%-2%-4.3%6.6%-6.4%-3.6%-8.6%-7.2%
Non-Medical$ 17$ 16$ 12$ 13$ 12$ 10$ 9$ 11$ 11-3%0%-22%-12.3%27.3%-29.0%-27.3%-7.9%-33.7%
$ 358$ 377$ 349$ 361$ 332$ 348$ 347$ 360$ 3454%-4%-1%-0.6%3.8%-4.0%-0.6%-0.5%-5.2%
Integer-7%-8%-1%-0%5%
C&V-2%0%2%9%10%
CRMN-3%-13%3%-5%-4%
ASO-12%-5%-4%-4%7%
ELECTROCHEM-33%-40%-27%-12%-3%
Cardio and Vascular
1Q162Q163Q164Q161Q17113.671185105071122.253359585129129.346703008486125.585570224169125.108809338637Cardiac/Neuromodulation
1Q162Q163Q164Q161Q17108.533106.91896797919399108.146981976204115.941976250189103.813140284005Advanced Surgical, Orthopedics & Portable Medical
1Q162Q163Q164Q161Q1798.3309374606539109.56532849119201100.18804689810401106.757068819778105.14561129859Non-Medical
1Q162Q163Q164Q161Q1711.6720000000000019.64499527000000088.884881760000000711.30614017000000111.34579473
Cardio and Vascular1Q162Q163Q164Q161Q17113.671185105071122.253359585129129.346703008486125.585570224169125.108809338637
Cardiac/Neuromodulation1Q162Q163Q164Q161Q17108.533106.91896797919399108.146981976204115.941976250189103.813140284005
Advanced Surgical, Orthopedics & Portable Medical1Q162Q163Q164Q161Q1798.3309374606539109.56532849119201100.18804689810401106.757068819778105.14561129859
Non-Medical1Q162Q163Q164Q161Q1711.6720000000000019.64499527000000088.884881760000000711.30614017000000111.34579473
Key Financial Results
Key Financial Results
1Q164Q161Q17FY15FY16
Sales$ 331$ 360$ 347$ 1,443$ 1,3864.8%
Gross Margin27.5%25.8%26.6%26.4%27.2%(0.52)
Operating Expenses$ 80$ 62$ 64$ 302$ 270-20.0%3.8%
% of Sales24.3%17.2%18.5%20.9%19.5%
GAAP Net Income (Loss)$ (13)$ 8$ (4)$ (39)$ 6
Adjusted Net Income$ 13$ 27$ 14$ 98$ 84
EBITDA$ 37$ 56$ 50$ 161$ 203
Adjusted EBITDA$ 65$ 71$ 65$ 304$ 280-0.2%
% of Sales19.7%19.6%18.8%21.1%20.2%
GAAP Diluted EPS$ (0.41)$ 0.25$ (0.11)$ (1.27)$ 0.19
Adjusted Diluted EPS$ 0.42$ 0.87$ 0.43$ 3.11$ 2.682.4%-50.6%
Cash Flow from Operations$ 30$ 34$ 39--$ 106
1Q161Q17
Revenue$ 331$ 345
Adjusted EBITDA$ 65$ 64
Adjusted Net Income$ 13$ 13
1Q16Revenue331.057999999999991Q17Revenue345.41300000000001
1Q16Adjusted EBITDA65.371Q17Adjusted EBITDA64.256
1Q16Adjusted Net Income13.11Q17Adjusted Net Income12.913
Adjusted EBITDA
4Q151Q162Q163Q164Q161Q17BaseFallRise
Adjusted EBITDA$ 79$ 65$ 69$ 75$ 71$ 64-2%1Q16$ - 0$ 65$ 65.370
Sales331348347360345Operations$ 65$ - 0$ 3$ 2.755
% of Sales20%20%22%20%19%Unrealized FX$ 64$ 4$ - 0$ (3.869)
1Q17$ 64$ 64.2566%
Adjusted EBITDA
1Q162Q163Q164Q161Q1765.3768.92700000000000775.01699999999999670.53499999999999764.256
Base1Q16OperationsUnrealized FX1Q1765.3764.25664.256Fall1Q16OperationsUnrealized FX1Q17003.8690000000000002Rise1Q16OperationsUnrealized FX1Q1765.372.75499999999999550
Adjusted EPS Walk
Adjusted EPS
Historical Adjusted EPS
BaseFallRise1Q162Q163Q164Q161Q17
1Q16$ - 0$ 0.42$ 0.42$ 0.42$ 0.56$ 0.83$ 0.87$ 0.41
Operations$ 0.42$ - 0$ 0.09$ 0.09
Unrealized FX$ 0.41$ 0.10$ - 0$ (0.10)
1Q17$ 0.41$ 0.41
Base1Q16OperationsUnrealized FX1Q170.420.410000000000000030.41000000000000003Fall1Q16OperationsUnrealized FX1Q17000.1Rise1Q16OperationsUnrealized FX1Q170.420.090
1Q162Q163Q164Q161Q170.420.560000000000000050.830.870.41
Cash Flows
4Q151Q162Q163Q164Q161Q174Q151Q162Q163Q164Q161Q17
Cash Flow from Operations$ - 0$ 30$ 4$ 38$ 34$ 39Free Cash Flow$ - 0$ 11$ (8)$ 21$ 22$ 26
Free Cash Flow$ - 0$ 11$ (8)$ 21$ 22$ 26Capex$ 19$ 12$ 17$ 11$ 12
Cash Flow from Operations$ - 0$ 30$ 4$ 38$ 34$ 39
Cash Flow from Operations
2Q163Q164Q161Q173.895999999999999938.04500000000000233.73299999999999738.625Free Cash Flow
2Q163Q164Q161Q17-7.738000000000000421.47899999999999922.41600000000000426.297000000000001
Free Cash Flow
2Q163Q164Q161Q17-7.738000000000000421.47899999999999922.41600000000000426.297000000000001
Cash Flow from Operations
2Q163Q164Q161Q173.895999999999999938.04500000000000233.73299999999999738.625
Debt
Debt Repayment Schedule
2H16201720182019202020212022+20231Q162Q163Q164Q16FY161Q17
Payment$ 15$ 27$ 30$ 38$ 120$ 230$ 938$ 360Req'd Debt Payments7.37.37.37.329.010.7
Add'l Payments2.0
Amy Wakeham: Amy Wakeham:borrowed and repaid in same quarter5.010.017.018.5
7.39.312.317.346.029.2
Payment
201720182019202020212022+2023273038120230938360
Req'd Debt Payments1Q1710.651Add'l Payments1Q1718.5
BS Metrics
4Q151Q162Q163Q164Q161Q17
Free Cash Flow$11$11($8)$21$22$26
Days Sales Outstanding05050505256
Inventory$252$267$276$262$225$231
Inventory Turns(1)4.53.73.73.74.44.5
Capital Expenditures$13$19$12$17$11$12
Days Payables Outstanding03136322732
Sales359,634331,058348,382346,567359,591345,413
COGS282,377240,770252,351248,658266,700254,187
Accounts Receivable183,563192,121191,409204,626213,610
EOP Net Inventory252,166267,380276,279262,232225,151231,292
BOP Net Inventory252,166267,380267,380276,279276,279262,232262,232225,151
Average Inventory259,773133,690271,830138,140269,256131,116243,692228,222
Accounts Payable83,30699,13586,29077,89690,713
ERROR:#DIV/0!
Working Capital
4Q151Q162Q163Q164Q161Q17FY16FY17
Current Assets$ 575$ 534$ 534$ 525$ 517$ 528$ 575$ 517
Current Liabilities$ 214$ 217$ 217$ 200$ 185$ 203$ 214$ 185
Working Capital$ 361$ 318$ 317$ 325$ 332$ 325$ 361$ 332
Current Ratio2.72.52.52.62.82.62.72.8
$ (29)
Working Capital
1Q162Q163Q164Q161Q17317.89699999999993316.61099999999999325.15800000000002332.08699999999999325.005
Guidance
Supplemental Financial Items Affecting Cash Flow
GAAPNon-GAAP(in millions, except effective tax rate):
As ReportedGrowthAdjusted BasisGrowth2017 Outlook2016 Actual201620172016201720162017
Revenue$1,390 to $1,4300% to 3%$1,390 to $1,4300% to 3%Capital expenditures$50 - $60$59Revenue$ 1,386$ 1,390Adjusted EPS$ 2.68$ 2.70Cash Flow From Operations$ 106150
Earnings per Diluted Share$1.03 to $1.43favorable$2.70 to $3.10 1% to 16%Depreciation and amortization$95 - $100$91$ 40$ 0.400
Cash Flow from Operations~$150~43%----Stock-based compensation~$13$8
Working capital decrease$10 - $20$29
Other operating expense$25 - $30$62
Adjusted effective tax rate~25%23%
Cash Taxes~$10~$7
Revenue20162017138613902016201740
Adjusted EPS201620172.682.7201620170.39999999999999991
Cash Flow From Operations20162017105.532150201620170
Appendix -->
Product-Line Sales
2015 Product-Line Sales(2)1Q152Q153Q154Q15FY2015
Medical Sales
Advanced Surgical, Orthopedics, & Portable Medical$ 112,081$ 115,113$ 103,764$ 109,941$ 440,899
Cardiac & Neuromodulation111,612123,280105,448121,449461,789
Cardio & Vascular116,464121,979127,231115,027480,701
Total Medical Sales$ 340,157$ 360,372$ 336,443$ 346,417$ 1,383,389
Non-Medical Sales (Electrochem)17,71016,54511,97713,21759,449
Total Sales$ 357,867$ 376,917$ 348,420$ 359,634$ 1,442,838
2016 Product-Line Sales(2)1Q162Q163Q164Q16FY2016
Medical Sales
Advanced Surgical, Orthopedics, & Portable Medical$ 98,362$ 109,391$ 100,203$ 106,745$ 414,701
Cardiac & Neuromodulation107,353106,919108,147115,942438,361
Cardio & Vascular113,671122,253129,347125,586490,857
Total Medical Sales$ 319,386$ 338,563$ 337,697$ 348,273$ 1,343,919
Non-Medical Sales (Electrochem)11,6729,8198,87011,31841,679
Total Sales$ 331,058$ 348,382$ 346,567$ 359,591$ 1,385,598
OOE
Three Months EndedTwelve Months Ended
1Q171Q161/1/1612/30/16NOTES:
2014 Investments in Capacity and Capabilities$1.6$4.2$23.0$17.2Portable Medical and Vascular product line transfers
Legacy Lake Region Medical Consolidation and Optimization$0.7$2.4$2.0$8.6
Acquisition and Integration Costs$4.8$10.0$33.5$28.3Lake Region Medical and CCC Medical Devices
Asset Dispositions, Severance, and Other$4.6$4.5$6.6$6.9Nuvectra spin-off in 1Q16Management transition costs in 1Q17
Other consolidation and disposition initiatives$0.1$0.1$18.2-$1.1
TOTAL OOE$11.8$21.1$83.3$59.9
(1)Details of Other Operating Expenses (OOE) provided on a comparable basis. Comparable basis amounts for 2016 exclude the results of Nuvectra Corporation (“Nuvectra”) prior to its spin-off on March 14, 2016. Comparable basis amounts for 2015 exclude the results of Nuvectra and include the results of the former Lake Region Medical. Historical pro forma information, which was filed with the SEC on Form 8-K on February 29, 2016, contains a reconciliation of 2015 comparable amounts to as reported amounts.
Guidance-recon table
GAAPAdjusted Comparable Basis
HighLowHighLow
Revenue$1,430$1,390$1,430$1,390
Earnings per Diluted Share$1.50$1.10$3.10$2.70
Debt Covenants
Mechanics of Financial Covenant Calculations
Financial Covenant Calculations(1)(2)
Leverage Ratio (< 6.25 @ 4Q16)
Leverage Ratio = Net Debt / R12 Bank EBITDA
Interest Coverage Ratio (> 2.50 @ 4Q16)
Interest Coverage Ratio = R12 Bank EBITDA / R12 Cash Interest Expense(3)
Net Debt
Net DEBT = Total Debt - Cash & Cash Equivalents (not to exceed $50M)
Bank EBITDA
R12 Bank EBITDA = R12 Adjusted EBITDA + Future Synergies and Cost Savings(4)
Working Capital
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 26
Working Capital$( in millions)
$318 $317 $325 $332 $325
1Q16 2Q16 3Q16 4Q16 1Q17
(1) Inventory Turns calculated as “COGS divided by quarterly Average Inventory multiplied by 4” to reach an annualized number
1Q16 2Q16 3Q16 4Q16 1Q17
Inventory $267 $276 $262 $225 $231
Inventory Turns(1) 3.7 3.7 3.7 4.4 4.5
Capital Expenditures $19 $12 $17 $11 $12
4Q16 Slides -->
Rolling Revenue
Quarterly Amounts1Q152Q153Q154Q151Q162Q163Q164Q161Q172Q173Q174Q174Q154Q161Q174Q17
Cardio and Vascular$ 115$ 119$ 124$ 112$ 114$ 122$ 129$ 126$ 1253%
Cardiac/Neuromodulation$ 115$ 127$ 110$ 124$ 107$ 107$ 108$ 116$ 104-2%-4%-1%0%
Advanced Surgical, Orthopedics & Portable Medical$ 110$ 115$ 103$ 110$ 98$ 110$ 100$ 107$ 105
Non-Medical$ 18$ 17$ 12$ 13$ 12$ 10$ 9$ 11$ 11
$ 358$ 378$ 349$ 359$ 331$ 348$ 347$ 360$ 345
Rolling 4-Quarter Amounts4Q151Q162Q163Q164Q161Q174Q17
Cardio and Vascular$ 470$ 469$ 472$ 477$ 491$ 502$ 1,390
Cardiac/Neuromodulation$ 476$ 468$ 448$ 446$ 438$ 43540
Advanced Surgical, Orthopedics & Portable Medical$ 438$ 426$ 421$ 418$ 415$ 422
Non-Medical$ 60$ 54$ 46$ 43$ 42$ 41
$ 1,444$ 1,417$ 1,387$ 1,385$ 1,386$ 1,400$ - 0$ - 0$ 1,430
-1%
Rolling 4-Quarter Revenue
Cardio and Vascular
4Q151Q162Q163Q164Q161Q174Q17470468.67099999999999471.92399999999998477.27099999999996490.85700000000003502.295000000000021390Cardiac/Neuromodulation
$1,430
4Q151Q162Q163Q164Q161Q174Q17476468.35199999999998448.27099999999996446.41800000000001438.36434.8209999999999740Advanced Surgical, Orthopedics & Portable Medical
4Q151Q162Q163Q164Q161Q174Q17438426.33100000000002420.89600000000002418.084414.84100000000001421.65600000000001Non-Medical
4Q151Q162Q163Q164Q161Q174Q176053.70300000000000346.34799999999999943.23299999999999741.53899999999999441.182000000000002
4Q154Q161Q174Q170.034Q154Q161Q174Q17-0.02-0.04-0.010
$1,386
$1,400
$1,385
$1,387
$1,417
$1,444
Revenue
Revenue Details1Q174Q163Q16
1Q152Q153Q154Q151Q162Q163Q164Q161Q17YOY%QOQ%LTMYOY%QOQ%YTD%YOY%QOQ%YTD%
Cardio and Vascular$ 116$ 122$ 127$ 115$ 114$ 122$ 129$ 126$ 12510%-0%5%9.2%-2.9%2.1%1.7%5.8%-0.1%
Cardiac/Neuromodulation$ 112$ 123$ 105$ 121$ 107$ 107$ 108$ 116$ 104-3%-10%-5%-4.5%7.2%-5.1%2.6%1.1%-5.3%
Advanced Surgical, Orthopedics & Portable Medical$ 112$ 116$ 104$ 112$ 98$ 110$ 100$ 107$ 1057%-2%-2%-4.3%6.6%-6.4%-3.6%-8.6%-7.2%
Non-Medical$ 17$ 16$ 12$ 13$ 12$ 10$ 9$ 11$ 11-3%0%-22%-12.3%27.3%-28.9%-27.3%-7.9%-33.6%
$ 358$ 377$ 349$ 361$ 331$ 348$ 347$ 360$ 3454%-4%-1%-0.6%3.8%-4.1%-0.6%-0.5%-5.3%
Integer-7%-8%-1%-0%5%
Amy Wakeham: Amy Wakeham:Organic Constant Currency
C&V-2%0%2%9%10%
CRMN-4%-13%3%-5%-3%
ASO-12%-5%-4%-4%7%
ELECTROCHEM-33%-40%-27%-12%-3%
Integer
1Q162Q163Q164Q161Q17
-7%-8%-1%-0%5%
1Q162Q163Q164Q161Q17
C&V-2%0%2%9%10%
CRMN-4%-13%3%-5%-3%
ASO-12%-5%-4%-4%7%
ELECTROCHEM-33%-40%-27%-12%-3%
Cardio and Vascular
1Q162Q163Q164Q161Q17113.671185105071122.253359585129129.346703008486125.585570224169125.108809338637Cardiac/Neuromodulation
1Q162Q163Q164Q161Q17107.352336597678106.91896797919399108.146981976204115.941976250189103.813140284005Advanced Surgical, Orthopedics & Portable Medical
1Q162Q163Q164Q161Q1798.3309374606539109.56532849119201100.18804689810401106.757068819778105.14561129859Non-Medical
1Q162Q163Q164Q161Q1711.703491829.64499527000000088.884881760000000711.30614017000000111.34579473
1Q162Q163Q164Q161Q17-7.4673945688922203E-2-7.5642564482374747E-2-6.4068262761733949E-3-3.6536369836234219E-30.05
C&V1Q162Q163Q164Q161Q17-2.398144938685742E-22.2456045811584486E-31.6630592642037218E-29.1792900927416834E-20.10062026029722243
CRMN1Q162Q163Q164Q161Q17-3.8162689591148331E-2-0.132717734811419572.5596806656107616E-2-4.5343209948390681E-2-3.2968041738455786E-2
ASO1Q162Q163Q164Q161Q17-0.12453389444318189-5.2698883550417019E-2-3.5808869488154982E-2-4.2923996612208686E-26.9303456408751504E-2
ELECTROCHEM1Q162Q163Q164Q161Q17-0.32661487817558199-0.39610392634892644-0.27255279978450375-0.12277891953081789-3.0563279361526505E-2
PL Revenue
Revenue Details1Q174Q163Q16
1Q152Q153Q154Q151Q162Q163Q164Q161Q17YOY%QOQ%LTMYOY%QOQ%YTD%YOY%QOQ%YTD%
Cardio and Vascular$ 116$ 122$ 127$ 115$ 114$ 122$ 129$ 126$ 12510%-0%5%9.2%-2.9%2.1%1.7%5.8%-0.1%
Cardiac/Neuromodulation$ 112$ 123$ 105$ 121$ 109$ 107$ 108$ 116$ 104-4%-10%-5%-4.5%7.2%-4.8%2.6%1.1%-4.9%
Advanced Surgical, Orthopedics & Portable Medical$ 112$ 116$ 104$ 112$ 98$ 110$ 100$ 107$ 1057%-2%-2%-4.3%6.6%-6.4%-3.6%-8.6%-7.2%
Non-Medical$ 17$ 16$ 12$ 13$ 12$ 10$ 9$ 11$ 11-3%0%-22%-12.3%27.3%-29.0%-27.3%-7.9%-33.7%
$ 358$ 377$ 349$ 361$ 332$ 348$ 347$ 360$ 3454%-4%-1%-0.6%3.8%-4.0%-0.6%-0.5%-5.2%
Integer-7%-8%-1%-0%5%
C&V-2%0%2%9%10%
CRMN-3%-13%3%-5%-4%
ASO-12%-5%-4%-4%7%
ELECTROCHEM-33%-40%-27%-12%-3%
Cardio and Vascular
1Q162Q163Q164Q161Q17113.671185105071122.253359585129129.346703008486125.585570224169125.108809338637Cardiac/Neuromodulation
1Q162Q163Q164Q161Q17108.533106.91896797919399108.146981976204115.941976250189103.813140284005Advanced Surgical, Orthopedics & Portable Medical
1Q162Q163Q164Q161Q1798.3309374606539109.56532849119201100.18804689810401106.757068819778105.14561129859Non-Medical
1Q162Q163Q164Q161Q1711.6720000000000019.64499527000000088.884881760000000711.30614017000000111.34579473
Cardio and Vascular1Q162Q163Q164Q161Q17113.671185105071122.253359585129129.346703008486125.585570224169125.108809338637
Cardiac/Neuromodulation1Q162Q163Q164Q161Q17108.533106.91896797919399108.146981976204115.941976250189103.813140284005
Advanced Surgical, Orthopedics & Portable Medical1Q162Q163Q164Q161Q1798.3309374606539109.56532849119201100.18804689810401106.757068819778105.14561129859
Non-Medical1Q162Q163Q164Q161Q1711.6720000000000019.64499527000000088.884881760000000711.30614017000000111.34579473
Key Financial Results
Key Financial Results
1Q164Q161Q17FY15FY16
Sales$ 331$ 360$ 347$ 1,443$ 1,3864.8%
Gross Margin27.5%25.8%26.6%26.4%27.2%(0.52)
Operating Expenses$ 80$ 62$ 64$ 302$ 270-20.0%3.8%
% of Sales24.3%17.2%18.5%20.9%19.5%
GAAP Net Income (Loss)$ (13)$ 8$ (4)$ (39)$ 6
Adjusted Net Income$ 13$ 27$ 14$ 98$ 84
EBITDA$ 37$ 56$ 50$ 161$ 203
Adjusted EBITDA$ 65$ 71$ 65$ 304$ 280-0.2%
% of Sales19.7%19.6%18.8%21.1%20.2%
GAAP Diluted EPS$ (0.41)$ 0.25$ (0.11)$ (1.27)$ 0.19
Adjusted Diluted EPS$ 0.42$ 0.87$ 0.43$ 3.11$ 2.682.4%-50.6%
Cash Flow from Operations$ 30$ 34$ 39--$ 106
1Q161Q17
Revenue$ 331$ 345
Adjusted EBITDA$ 65$ 64
Adjusted Net Income$ 13$ 13
1Q16Revenue331.057999999999991Q17Revenue345.41300000000001
1Q16Adjusted EBITDA65.371Q17Adjusted EBITDA64.256
1Q16Adjusted Net Income13.11Q17Adjusted Net Income12.913
Adjusted EBITDA
4Q151Q162Q163Q164Q161Q17BaseFallRise
Adjusted EBITDA$ 79$ 65$ 69$ 75$ 71$ 64-2%1Q16$ - 0$ 65$ 65.370
Sales331348347360345Operations$ 65$ - 0$ 3$ 2.755
% of Sales20%20%22%20%19%Unrealized FX$ 64$ 4$ - 0$ (3.869)
1Q17$ 64$ 64.2566%
Adjusted EBITDA
1Q162Q163Q164Q161Q1765.3768.92700000000000775.01699999999999670.53499999999999764.256
Base1Q16OperationsUnrealized FX1Q1765.3764.25664.256Fall1Q16OperationsUnrealized FX1Q17003.8690000000000002Rise1Q16OperationsUnrealized FX1Q1765.372.75499999999999550
Adjusted EPS Walk
Adjusted EPS
Historical Adjusted EPS
BaseFallRise1Q162Q163Q164Q161Q17
1Q16$ - 0$ 0.42$ 0.42$ 0.42$ 0.56$ 0.83$ 0.87$ 0.41
Operations$ 0.42$ - 0$ 0.09$ 0.09
Unrealized FX$ 0.41$ 0.10$ - 0$ (0.10)
1Q17$ 0.41$ 0.41
Base1Q16OperationsUnrealized FX1Q170.420.410000000000000030.41000000000000003Fall1Q16OperationsUnrealized FX1Q17000.1Rise1Q16OperationsUnrealized FX1Q170.420.090
1Q162Q163Q164Q161Q170.420.560000000000000050.830.870.41
Cash Flows
4Q151Q162Q163Q164Q161Q174Q151Q162Q163Q164Q161Q17
Cash Flow from Operations$ - 0$ 30$ 4$ 38$ 34$ 39Free Cash Flow$ - 0$ 11$ (8)$ 21$ 22$ 26
Free Cash Flow$ - 0$ 11$ (8)$ 21$ 22$ 26Capex$ 19$ 12$ 17$ 11$ 12
Cash Flow from Operations$ - 0$ 30$ 4$ 38$ 34$ 39
Cash Flow from Operations
2Q163Q164Q161Q173.895999999999999938.04500000000000233.73299999999999738.625Free Cash Flow
2Q163Q164Q161Q17-7.738000000000000421.47899999999999922.41600000000000426.297000000000001
Free Cash Flow
2Q163Q164Q161Q17-7.738000000000000421.47899999999999922.41600000000000426.297000000000001
Cash Flow from Operations
2Q163Q164Q161Q173.895999999999999938.04500000000000233.73299999999999738.625
Debt
Debt Repayment Schedule
2H16201720182019202020212022+20231Q162Q163Q164Q16FY161Q17
Payment$ 15$ 27$ 30$ 38$ 120$ 230$ 938$ 360Req'd Debt Payments7.37.37.37.329.010.7
Add'l Payments2.0
Amy Wakeham: Amy Wakeham:borrowed and repaid in same quarter5.010.017.018.5
7.39.312.317.346.029.2
Payment
201720182019202020212022+2023273038120230938360
Req'd Debt Payments1Q1710.651Add'l Payments1Q1718.5
BS Metrics
4Q151Q162Q163Q164Q161Q17
Free Cash Flow$11$11($8)$21$22$26
Days Sales Outstanding05050505256
Inventory$252$267$276$262$225$231
Inventory Turns(1)4.53.73.73.74.44.5
Capital Expenditures$13$19$12$17$11$12
Days Payables Outstanding03136322732
Sales359,634331,058348,382346,567359,591345,413
COGS282,377240,770252,351248,658266,700254,187
Accounts Receivable183,563192,121191,409204,626213,610
EOP Net Inventory252,166267,380276,279262,232225,151231,292
BOP Net Inventory252,166267,380267,380276,279276,279262,232262,232225,151
Average Inventory259,773133,690271,830138,140269,256131,116243,692228,222
Accounts Payable83,30699,13586,29077,89690,713
ERROR:#DIV/0!
Working Capital
4Q151Q162Q163Q164Q161Q17FY16FY17
Current Assets$ 575$ 534$ 534$ 525$ 517$ 528$ 575$ 517
Current Liabilities$ 214$ 217$ 217$ 200$ 185$ 203$ 214$ 185
Working Capital$ 361$ 318$ 317$ 325$ 332$ 325$ 361$ 332
Current Ratio2.72.52.52.62.82.62.72.8
$ (29)
Working Capital
1Q162Q163Q164Q161Q17317.89699999999993316.61099999999999325.15800000000002332.08699999999999325.005
Guidance
Supplemental Financial Items Affecting Cash Flow
GAAPNon-GAAP(in millions, except effective tax rate):
As ReportedGrowthAdjusted BasisGrowth2017 Outlook2016 Actual201620172016201720162017
Revenue$1,390 to $1,4300% to 3%$1,390 to $1,4300% to 3%Capital expenditures$50 - $60$59Revenue$ 1,386$ 1,390Adjusted EPS$ 2.68$ 2.70Cash Flow From Operations$ 106150
Earnings per Diluted Share$1.03 to $1.43favorable$2.70 to $3.10 1% to 16%Depreciation and amortization$95 - $100$91$ 40$ 0.400
Cash Flow from Operations~$150~43%----Stock-based compensation~$13$8
Working capital decrease$10 - $20$29
Other operating expense$25 - $30$62
Adjusted effective tax rate~25%23%
Cash Taxes~$10~$7
Revenue20162017138613902016201740
Adjusted EPS201620172.682.7201620170.39999999999999991
Cash Flow From Operations20162017105.532150201620170
Appendix -->
OOE
Three Months EndedTwelve Months Ended
1Q171Q161/1/1612/30/16NOTES:
2014 Investments in Capacity and Capabilities$1.6$4.2$23.0$17.2Portable Medical and Vascular product line transfers
Legacy Lake Region Medical Consolidation and Optimization$0.7$2.4$2.0$8.6
Acquisition and Integration Costs$4.8$10.0$33.5$28.3Lake Region Medical and CCC Medical Devices
Asset Dispositions, Severance, and Other$4.6$4.5$6.6$6.9Nuvectra spin-off in 1Q16Management transition costs in 1Q17
Other consolidation and disposition initiatives$0.1$0.1$18.2-$1.1
TOTAL OOE$11.8$21.1$83.3$59.9
(1)Details of Other Operating Expenses (OOE) provided on a comparable basis. Comparable basis amounts for 2016 exclude the results of Nuvectra Corporation (“Nuvectra”) prior to its spin-off on March 14, 2016. Comparable basis amounts for 2015 exclude the results of Nuvectra and include the results of the former Lake Region Medical. Historical pro forma information, which was filed with the SEC on Form 8-K on February 29, 2016, contains a reconciliation of 2015 comparable amounts to as reported amounts.
Guidance-recon table
GAAPAdjusted Comparable Basis
HighLowHighLow
Revenue$1,430$1,390$1,430$1,390
Earnings per Diluted Share$1.50$1.10$3.10$2.70
Debt Covenants
Mechanics of Financial Covenant Calculations
Financial Covenant Calculations(1)(2)
Leverage Ratio (< 6.25 @ 4Q16)
Leverage Ratio = Net Debt / R12 Bank EBITDA
Interest Coverage Ratio (> 2.50 @ 4Q16)
Interest Coverage Ratio = R12 Bank EBITDA / R12 Cash Interest Expense(3)
Net Debt
Net DEBT = Total Debt - Cash & Cash Equivalents (not to exceed $50M)
Bank EBITDA
R12 Bank EBITDA = R12 Adjusted EBITDA + Future Synergies and Cost Savings(4)
Other Operating Expenses
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 27
1Q17 1Q16 NOTES:
2014 Investments in Capacity and Capabilities $1.6 $4.2
Portable Medical and Vascular product line transfers
Legacy Lake Region Medical Consolidation and Optimization $0.7 $2.4
Acquisition and Integration Costs $4.8 $10.0 Lake Region Medical
Asset Dispositions, Severance, and Other $4.6 $4.5
Nuvectra spin-off in 1Q16Management transition costs in 1Q17
Other consolidation and disposition initiatives $0.1 $0.1
TOTAL OOE $11.8 $21.1
Three Months Ended
4Q16 Slides -->
Rolling Revenue
Quarterly Amounts1Q152Q153Q154Q151Q162Q163Q164Q161Q172Q173Q174Q174Q154Q161Q174Q17
Cardio and Vascular$ 115$ 119$ 124$ 112$ 114$ 122$ 129$ 126$ 1253%
Cardiac/Neuromodulation$ 115$ 127$ 110$ 124$ 107$ 107$ 108$ 116$ 104-2%-4%-1%0%
Advanced Surgical, Orthopedics & Portable Medical$ 110$ 115$ 103$ 110$ 98$ 110$ 100$ 107$ 105
Non-Medical$ 18$ 17$ 12$ 13$ 12$ 10$ 9$ 11$ 11
$ 358$ 378$ 349$ 359$ 331$ 348$ 347$ 360$ 345
Rolling 4-Quarter Amounts4Q151Q162Q163Q164Q161Q174Q17
Cardio and Vascular$ 470$ 469$ 472$ 477$ 491$ 502$ 1,390
Cardiac/Neuromodulation$ 476$ 468$ 448$ 446$ 438$ 43540
Advanced Surgical, Orthopedics & Portable Medical$ 438$ 426$ 421$ 418$ 415$ 422
Non-Medical$ 60$ 54$ 46$ 43$ 42$ 41
$ 1,444$ 1,417$ 1,387$ 1,385$ 1,386$ 1,400$ - 0$ - 0$ 1,430
-1%
Rolling 4-Quarter Revenue
Cardio and Vascular
4Q151Q162Q163Q164Q161Q174Q17470468.67099999999999471.92399999999998477.27099999999996490.85700000000003502.295000000000021390Cardiac/Neuromodulation
$1,430
4Q151Q162Q163Q164Q161Q174Q17476468.35199999999998448.27099999999996446.41800000000001438.36434.8209999999999740Advanced Surgical, Orthopedics & Portable Medical
4Q151Q162Q163Q164Q161Q174Q17438426.33100000000002420.89600000000002418.084414.84100000000001421.65600000000001Non-Medical
4Q151Q162Q163Q164Q161Q174Q176053.70300000000000346.34799999999999943.23299999999999741.53899999999999441.182000000000002
4Q154Q161Q174Q170.034Q154Q161Q174Q17-0.02-0.04-0.010
$1,386
$1,400
$1,385
$1,387
$1,417
$1,444
Revenue
Revenue Details1Q174Q163Q16
1Q152Q153Q154Q151Q162Q163Q164Q161Q17YOY%QOQ%LTMYOY%QOQ%YTD%YOY%QOQ%YTD%
Cardio and Vascular$ 116$ 122$ 127$ 115$ 114$ 122$ 129$ 126$ 12510%-0%5%9.2%-2.9%2.1%1.7%5.8%-0.1%
Cardiac/Neuromodulation$ 112$ 123$ 105$ 121$ 107$ 107$ 108$ 116$ 104-3%-10%-5%-4.5%7.2%-5.1%2.6%1.1%-5.3%
Advanced Surgical, Orthopedics & Portable Medical$ 112$ 116$ 104$ 112$ 98$ 110$ 100$ 107$ 1057%-2%-2%-4.3%6.6%-6.4%-3.6%-8.6%-7.2%
Non-Medical$ 17$ 16$ 12$ 13$ 12$ 10$ 9$ 11$ 11-3%0%-22%-12.3%27.3%-28.9%-27.3%-7.9%-33.6%
$ 358$ 377$ 349$ 361$ 331$ 348$ 347$ 360$ 3454%-4%-1%-0.6%3.8%-4.1%-0.6%-0.5%-5.3%
Integer-7%-8%-1%-0%5%
Amy Wakeham: Amy Wakeham:Organic Constant Currency
C&V-2%0%2%9%10%
CRMN-4%-13%3%-5%-3%
ASO-12%-5%-4%-4%7%
ELECTROCHEM-33%-40%-27%-12%-3%
Integer
1Q162Q163Q164Q161Q17
-7%-8%-1%-0%5%
1Q162Q163Q164Q161Q17
C&V-2%0%2%9%10%
CRMN-4%-13%3%-5%-3%
ASO-12%-5%-4%-4%7%
ELECTROCHEM-33%-40%-27%-12%-3%
Cardio and Vascular
2Q153Q154Q151Q162Q163Q164Q161Q17121.979441991386127.230779739116115.026915926538113.671185105071122.253359585129129.346703008486125.585570224169125.108809338637Cardiac/Neuromodulation
2Q153Q154Q151Q162Q163Q164Q161Q17123.280473117879105.447853653923121.44885728401107.352336597678106.91896797919399108.146981976204115.941976250189103.813140284005Advanced Surgical, Orthopedics & Portable Medical
2Q153Q154Q151Q162Q163Q164Q161Q17115.660508141102103.908907401916111.54502718894598.3309374606539109.56532849119201100.18804689810401106.757068819778105.14561129859Non-Medical
2Q153Q154Q151Q162Q163Q164Q161Q1715.97128329000000112.21378233000000112.88858695000000111.703491829.64499527000000088.884881760000000711.30614017000000111.34579473
1Q162Q163Q164Q161Q17-7.4673945688922203E-2-7.5642564482374747E-2-6.4068262761733949E-3-3.6536369836234219E-30.05
C&V1Q162Q163Q164Q161Q17-2.398144938685742E-22.2456045811584486E-31.6630592642037218E-29.1792900927416834E-20.10062026029722243
CRMN1Q162Q163Q164Q161Q17-3.8162689591148331E-2-0.132717734811419572.5596806656107616E-2-4.5343209948390681E-2-3.2968041738455786E-2
ASO1Q162Q163Q164Q161Q17-0.12453389444318189-5.2698883550417019E-2-3.5808869488154982E-2-4.2923996612208686E-26.9303456408751504E-2
ELECTROCHEM1Q162Q163Q164Q161Q17-0.32661487817558199-0.39610392634892644-0.27255279978450375-0.12277891953081789-3.0563279361526505E-2
PL Revenue
Revenue Details1Q174Q163Q16
1Q152Q153Q154Q151Q162Q163Q164Q161Q17YOY%QOQ%LTMYOY%QOQ%YTD%YOY%QOQ%YTD%
Cardio and Vascular$ 116$ 122$ 127$ 115$ 114$ 122$ 129$ 126$ 12510%-0%5%9.2%-2.9%2.1%1.7%5.8%-0.1%
Cardiac/Neuromodulation$ 112$ 123$ 105$ 121$ 109$ 107$ 108$ 116$ 104-4%-10%-5%-4.5%7.2%-4.8%2.6%1.1%-4.9%
Advanced Surgical, Orthopedics & Portable Medical$ 112$ 116$ 104$ 112$ 98$ 110$ 100$ 107$ 1057%-2%-2%-4.3%6.6%-6.4%-3.6%-8.6%-7.2%
Non-Medical$ 17$ 16$ 12$ 13$ 12$ 10$ 9$ 11$ 11-3%0%-22%-12.3%27.3%-29.0%-27.3%-7.9%-33.7%
$ 358$ 377$ 349$ 361$ 332$ 348$ 347$ 360$ 3454%-4%-1%-0.6%3.8%-4.0%-0.6%-0.5%-5.2%
Integer-7%-8%-1%-0%5%
C&V-2%0%2%9%10%
CRMN-3%-13%3%-5%-4%
ASO-12%-5%-4%-4%7%
ELECTROCHEM-33%-40%-27%-12%-3%
Cardio and Vascular
1Q162Q163Q164Q161Q17113.671185105071122.253359585129129.346703008486125.585570224169125.108809338637Cardiac/Neuromodulation
1Q162Q163Q164Q161Q17108.533106.91896797919399108.146981976204115.941976250189103.813140284005Advanced Surgical, Orthopedics & Portable Medical
1Q162Q163Q164Q161Q1798.3309374606539109.56532849119201100.18804689810401106.757068819778105.14561129859Non-Medical
1Q162Q163Q164Q161Q1711.6720000000000019.64499527000000088.884881760000000711.30614017000000111.34579473
Cardio and Vascular1Q162Q163Q164Q161Q17113.671185105071122.253359585129129.346703008486125.585570224169125.108809338637
Cardiac/Neuromodulation1Q162Q163Q164Q161Q17108.533106.91896797919399108.146981976204115.941976250189103.813140284005
Advanced Surgical, Orthopedics & Portable Medical1Q162Q163Q164Q161Q1798.3309374606539109.56532849119201100.18804689810401106.757068819778105.14561129859
Non-Medical1Q162Q163Q164Q161Q1711.6720000000000019.64499527000000088.884881760000000711.30614017000000111.34579473
Key Financial Results
Key Financial Results
1Q164Q161Q17FY15FY16
Sales$ 331$ 360$ 347$ 1,443$ 1,3864.8%
Gross Margin27.5%25.8%26.6%26.4%27.2%(0.52)
Operating Expenses$ 80$ 62$ 64$ 302$ 270-20.0%3.8%
% of Sales24.3%17.2%18.5%20.9%19.5%
GAAP Net Income (Loss)$ (13)$ 8$ (4)$ (39)$ 6
Adjusted Net Income$ 13$ 27$ 14$ 98$ 84
EBITDA$ 37$ 56$ 50$ 161$ 203
Adjusted EBITDA$ 65$ 71$ 65$ 304$ 280-0.2%
% of Sales19.7%19.6%18.8%21.1%20.2%
GAAP Diluted EPS$ (0.41)$ 0.25$ (0.11)$ (1.27)$ 0.19
Adjusted Diluted EPS$ 0.42$ 0.87$ 0.43$ 3.11$ 2.682.4%-50.6%
Cash Flow from Operations$ 30$ 34$ 39--$ 106
1Q161Q17
Revenue$ 331$ 345
Adjusted EBITDA$ 65$ 64
Adjusted Net Income$ 13$ 13
1Q16Revenue331.057999999999991Q17Revenue345.41300000000001
1Q16Adjusted EBITDA65.371Q17Adjusted EBITDA64.256
1Q16Adjusted Net Income13.11Q17Adjusted Net Income12.913
Adjusted EBITDA
4Q151Q162Q163Q164Q161Q17BaseFallRise
Adjusted EBITDA$ 79$ 65$ 69$ 75$ 71$ 64-2%1Q16$ - 0$ 65$ 65.370
Sales331348347360345Operations$ 65$ - 0$ 3$ 2.755
% of Sales20%20%22%20%19%Unrealized FX$ 64$ 4$ - 0$ (3.869)
1Q17$ 64$ 64.2566%
Adjusted EBITDA
1Q162Q163Q164Q161Q1765.3768.92700000000000775.01699999999999670.53499999999999764.256
Base1Q16OperationsUnrealized FX1Q1765.3764.25664.256Fall1Q16OperationsUnrealized FX1Q17003.8690000000000002Rise1Q16OperationsUnrealized FX1Q1765.372.75499999999999550
Adjusted EPS Walk
Adjusted EPS
BaseFallRise
1Q16$ - 0$ 0.42$ 0.42
Operations$ 0.42$ - 0$ 0.09$ 0.09
Unrealized FX$ 0.41$ 0.10$ - 0$ (0.10)
1Q17$ 0.41$ 0.41
Base1Q16OperationsUnrealized FX1Q170.420.410000000000000030.41000000000000003Fall1Q16OperationsUnrealized FX1Q17000.1Rise1Q16OperationsUnrealized FX1Q170.420.090
Cash Flows
4Q151Q162Q163Q164Q161Q174Q151Q162Q163Q164Q161Q17
Cash Flow from Operations$ - 0$ 30$ 4$ 38$ 34$ 39Free Cash Flow$ - 0$ 11$ (8)$ 21$ 22$ 26
Free Cash Flow$ - 0$ 11$ (8)$ 21$ 22$ 26Capex$ 19$ 12$ 17$ 12$ 12
Cash Flow from Operations$ - 0$ 30$ 4$ 38$ 34$ 39
Cash Flow from Operations
2Q163Q164Q161Q173.895999999999999938.04500000000000233.73299999999999738.625Free Cash Flow
2Q163Q164Q161Q17-7.738000000000000421.47899999999999922.06900000000000326.297000000000001
Free Cash Flow
2Q163Q164Q161Q17-7.738000000000000421.47899999999999922.06900000000000326.297000000000001
Cash Flow from Operations
2Q163Q164Q161Q173.895999999999999938.04500000000000233.73299999999999738.625
Debt
Debt Repayment Schedule
2H16201720182019202020212022+20231Q162Q163Q164Q16FY161Q17
Payment$ 15$ 27$ 30$ 38$ 120$ 230$ 938$ 360Req'd Debt Payments7.37.37.37.329.010.7
Add'l Payments2.0
Amy Wakeham: Amy Wakeham:borrowed and repaid in same quarter5.010.017.018.5
7.39.312.317.346.029.2
Payment
201720182019202020212022+2023273038120230938360
Req'd Debt Payments1Q1710.651Add'l Payments1Q1718.5
BS Metrics
4Q151Q162Q163Q164Q161Q17
Free Cash Flow$11$11($8)$21$22$26
Days Sales Outstanding05050505256
Inventory$252$267$276$262$225$231
Inventory Turns(1)4.53.73.73.74.44.5
Capital Expenditures$13$19$12$17$12$12
Days Payables Outstanding03136322732
Sales359,634331,058348,382346,567359,591345,413
COGS282,377240,770252,351248,658266,700254,187
Accounts Receivable183,563192,121191,409204,626213,610
EOP Net Inventory252,166267,380276,279262,232225,151231,292
BOP Net Inventory252,166267,380267,380276,279276,279262,232262,232225,151
Average Inventory259,773133,690271,830138,140269,256131,116243,692228,222
Accounts Payable83,30699,13586,29077,89690,713
ERROR:#DIV/0!
Working Capital
4Q151Q162Q163Q164Q161Q17FY16FY17
Current Assets$ 575$ 534$ 534$ 525$ 517$ 528$ 575$ 517
Current Liabilities$ 214$ 217$ 217$ 200$ 185$ 203$ 214$ 185
Working Capital$ 361$ 318$ 317$ 325$ 332$ 325$ 361$ 332
Current Ratio2.72.52.52.62.82.62.72.8
$ (29)
Working Capital
1Q162Q163Q164Q161Q17317.89699999999993316.61099999999999325.15800000000002332.08699999999999325.005
Guidance
Supplemental Financial Items Affecting Cash Flow
GAAPNon-GAAP(in millions, except effective tax rate):
As ReportedGrowthAdjusted BasisGrowth2017 Outlook2016 Actual201620172016201720162017
Revenue$1,390 to $1,4300% to 3%$1,390 to $1,4300% to 3%Capital expenditures$50 - $60$59Revenue$ 1,386$ 1,390Adjusted EPS$ 2.68$ 2.70Cash Flow From Operations$ 106150
Earnings per Diluted Share$1.03 to $1.43favorable$2.70 to $3.10 1% to 16%Depreciation and amortization$95 - $100$91$ 40$ 0.400
Cash Flow from Operations~$150~43%----Stock-based compensation~$13$8
Working capital decrease$10 - $20$29
Other operating expense$25 - $30$62
Adjusted effective tax rate~25%23%
Cash Taxes~$10~$7
Revenue20162017138613902016201740
Adjusted EPS201620172.682.7201620170.39999999999999991
Cash Flow From Operations20162017105.532150201620170
Appendix -->
OOE
Three Months EndedTwelve Months Ended
1Q171Q161/1/1612/30/16NOTES:
2014 Investments in Capacity and Capabilities$1.6$4.2$23.0$17.2Portable Medical and Vascular product line transfers
Legacy Lake Region Medical Consolidation and Optimization$0.7$2.4$2.0$8.6
Acquisition and Integration Costs$4.8$10.0$33.5$28.3Lake Region Medical
Asset Dispositions, Severance, and Other$4.6$4.5$6.6$6.9Nuvectra spin-off in 1Q16Management transition costs in 1Q17
Other consolidation and disposition initiatives$0.1$0.1$18.2-$1.1
TOTAL OOE$11.8$21.1$83.3$59.9
(1)Details of Other Operating Expenses (OOE) provided on a comparable basis. Comparable basis amounts for 2016 exclude the results of Nuvectra Corporation (“Nuvectra”) prior to its spin-off on March 14, 2016. Comparable basis amounts for 2015 exclude the results of Nuvectra and include the results of the former Lake Region Medical. Historical pro forma information, which was filed with the SEC on Form 8-K on February 29, 2016, contains a reconciliation of 2015 comparable amounts to as reported amounts.
Guidance-recon table
GAAPAdjusted Comparable Basis
HighLowHighLow
Revenue$1,430$1,390$1,430$1,390
Earnings per Diluted Share$1.50$1.10$3.10$2.70
Debt Covenants
Mechanics of Financial Covenant Calculations
Financial Covenant Calculations(1)(2)
Leverage Ratio (< 6.25 @ 4Q16)
Leverage Ratio = Net Debt / R12 Bank EBITDA
Interest Coverage Ratio (> 2.50 @ 4Q16)
Interest Coverage Ratio = R12 Bank EBITDA / R12 Cash Interest Expense(3)
Net Debt
Net DEBT = Total Debt - Cash & Cash Equivalents (not to exceed $50M)
Bank EBITDA
R12 Bank EBITDA = R12 Adjusted EBITDA + Future Synergies and Cost Savings(4)
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 28
Non-GAAP ReconciliationNet Income and Diluted EPS Reconciliation – QTD
See the Footnotes to this table on Slide 31 of this presentation
Three Months Ended March 31, 2017 April 1, 2016
(in thousands except per share amounts) Pre-Tax
Net Income (Loss)
Per Diluted Share Pre-Tax
Net Income (Loss)
Per Diluted Share
As reported (GAAP) $ (4,195 ) $ (4,339 ) $ (0.14 ) $ (12,762 ) $ (12,660 ) $ (0.41 Adjustments:
Amortization of intangibles(a) 10,978 7,746 0.24 9,464 6,691 0.21 IP related litigation (SG&A)(a)(b) 377 245 0.01 1,907 1,240 0.04 Consolidation and optimization expenses (OOE)(a)(c) 2,395 1,899 0.06 6,649 5,314 0.17
Acquisition and integration expenses (OOE)(a)(d) 4,820 3,133 0.10 9,965 6,511 0.21
Asset dispositions, severance and other (OOE)(a)(e) 4,556 2,957 0.09 4,526 4,226 0.14
(Gain) loss on cost and equity method investments, net(a) 398 259
0.01
(1,301 ) (846 ) (0.03
Loss on extinguishment of debt(a)(f) 1,559 1,013 0.03 — — — Nuvectra results prior to spin-off(a)(g) — — — 4,037 2,624 0.08 Taxes(a) (7,975 ) — — (9,385 ) — —
Adjusted (Non-GAAP) $ 12,913 $ 0.41 $ 13,100 $ 0.42
Adjusted diluted weighted average shares(h) 31,685 31,253
Non-GAAP Reconciliation1Q17 Net Income and Diluted EPS Reconciliation
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 29
See the Footnotes to this table on Slide 31 of this presentation
GAAP Non-GAAP
Income Statement 1Q17 Actual Amortization
Litigation Related
Charges(b)Consolidation & Optimization(c)(e)
Acquisition & Integration(d)
Debt / Investment
Related Charges(f) 1Q17 Adjusted
Sales 345,413$ 345,413$ Cost of sales 254,187 (4,084) 250,103
Gross profit 91,226$ 4,084$ -$ -$ -$ -$ 95,310$ Gross margin 26.4% 27.6%
Operating expenses:SG&A 39,499 (6,758) (377) 32,364
SG&A as a % of revenues 11.4% 9.4%Research, development & engineering 13,411 (136) 13,275
RD&E as a % of revenues 3.9% 3.8%Other operating expense 11,771 (6,951) (4,820) -
Operating income 26,545$ 10,978$ 377$ 6,951$ 4,820$ -$ 49,671$ Operating margin 7.7% 14.4%
Other (income) & expenses:Interest expense 28,893 (1,559) 27,334 Interest income - - Other (income) loss, net 1,847 (398) 1,449
Loss before income taxes (4,195)$ 10,978$ 377$ 6,951$ 4,820$ 1,957$ 20,888$ Provision for income taxes 144 3,232 132 2,095 1,687 685 7,975 Effective tax rate -3.43% 38.18%
Net income (loss) (4,339)$ 7,746$ 245$ 4,856$ 3,133$ 1,272$ 12,913$ Net margin -1.3% 3.7%
Weighted Average Shares O/S (h) 31,685 31,685 31,685 31,685 31,685 31,685 31,685 EPS (0.14)$ 0.24$ 0.01$ 0.15$ 0.10$ 0.04$ 0.41$
Non-GAAP Adj.(a)
1Q16
Integer Holdings Corporation
Non-GAAP Adj. Net Income - 2 views
1Q16
GAAPNon-GAAP Adj.Non-GAAP
Income Statement1Q16 ActualAmortizationLitigation Related Charges(b)Consolidation & Optimization(c)(e)Acquisition & Integration(d)Nuvectra Spin(g)Debt / Investment Related Charges(f)1Q16 Adjusted
Sales$ 332,238$ (1,180)$ 331,058
Cost of sales240,770(4,240)(526)236,004
Gross profit$ 91,468$ 4,240$ - 0$ - 0$ - 0$ (654)$ - 0$ 95,054
Gross margin27.5%28.7%
Operating expenses:
SG&A41,888(5,136)(1,907)(1,913)32,932
SG&A as a % of revenues12.6%9.9%
Research, development & engineering17,306(88)(2,778)14,440
RD&E as a % of revenues5.2%4.3%
Other operating expense21,140(11,175)(9,965)- 0- 0
Operating income$ 11,134$ 9,464$ 1,907$ 11,175$ 9,965$ 4,037$ - 0$ 47,682
Operating margin3.4%14.4%
Other (income) & expenses:
Interest expense27,61727,617
Interest income- 0- 0
Other (income) loss, net(3,721)1,301(2,420)
Loss before income taxes$ (12,762)$ 9,464$ 1,907$ 11,175$ 9,965$ 4,037$ (1,301)$ 22,485
Provision for income taxes(102)2,7736671,6353,4541,413(455)9,385
Effective tax rate0.80%41.74%
Net income (loss)$ (12,660)$ 6,691$ 1,240$ 9,540$ 6,511$ 2,624$ (846)$ 13,100
Net margin-3.8%4.0%
Weighted Average Shares O/S(h)31,25331,25331,25331,25331,25331,25331,25331,253
EPS$ (0.41)$ 0.21$ 0.04$ 0.31$ 0.21$ (0.03)$ 0.42
Net Income Adjustments
Inventory step-up amortization- 0
Amortization of intangibles6,691
IP related litigation 1,240
Consolidation and optimization expenses (OOE)5,314
Acqusition and integration expenses (OOE)6,511
Asset dispositions, severance and other (OOE)4,226
Lake Region Medical transaction costs
Loss (gain) on cost and equity method investments, net (846)
Nuvectra results prior to spin-off2,624
Tax adjustments- 0
Comparable basis adjustments, net- 0
Adjusted Net Income (Non-GAAP)$ 13,100
Adjusted EPS (Non-GAAP)$ 0.42
2Q16
Integer Holdings Corporation
Non-GAAP Adjustments - 2 views
2Q16
GAAPNon-GAAP Adj.Non-GAAP
Income Statement2Q16 ActualAmortizationLitigation Related ChargesConsolidation & OptimizationAcquisition & IntegrationDebt / Investment Related Charges2Q16 Adjusted
Sales$ - 0
Cost of sales- 0
Gross profit$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0
Gross marginERROR:#DIV/0!ERROR:#DIV/0!
Operating expenses:
SG&A- 0
SG&A as a % of revenuesERROR:#DIV/0!ERROR:#DIV/0!
Research, development & engineering- 0
RD&E as a % of revenuesERROR:#DIV/0!ERROR:#DIV/0!
Other operating expense- 0
Operating income$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0
Operating marginERROR:#DIV/0!ERROR:#DIV/0!
Other (income) & expenses:
Interest expense- 0
Interest income- 0
Other (income) loss, net- 0
Loss before income taxes$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0
Provision for income taxes8,147
Effective tax rateERROR:#DIV/0!ERROR:#DIV/0!
Net income (loss)$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ (8,147)
Net marginERROR:#DIV/0!ERROR:#DIV/0!
Weighted Average Shares O/S- 0
EPSERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!
Net Income Adjustments
Inventory step-up amortization- 0
Amortization of intangibles
IP related litigation
Consolidation and optimization expenses (OOE)
Acqusition and integration expenses (OOE)
Asset dispositions, severance and other (OOE)
Lake Region Medical transaction costs
Loss (gain) on cost and equity method investments, net
Loss on extinguishment of debt
Tax adjustments
Comparable basis adjustments, net
Adjusted Net Income (Non-GAAP)$ - 0
Adjusted EPS (Non-GAAP)ERROR:#DIV/0!
3Q16
Integer Holdings Corporation
Non-GAAP Adjustments - 2 views
3Q16
GAAPNon-GAAP Adj.Non-GAAP
Income Statement3Q16 ActualAmortizationLitigation Related ChargesConsolidation & OptimizationAcquisition & IntegrationDebt / Investment Related Charges3Q16 Adjusted
Sales$ - 0
Cost of sales- 0
Gross profit$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0
Gross marginERROR:#DIV/0!ERROR:#DIV/0!
Operating expenses:
SG&A- 0
SG&A as a % of revenuesERROR:#DIV/0!ERROR:#DIV/0!
Research, development & engineering- 0
RD&E as a % of revenuesERROR:#DIV/0!ERROR:#DIV/0!
Other operating expense- 0
Operating income$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0
Operating marginERROR:#DIV/0!ERROR:#DIV/0!
Other (income) & expenses:
Interest expense- 0
Interest income- 0
Other (income) loss, net- 0
Loss before income taxes$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0
Provision for income taxes8,147
Effective tax rateERROR:#DIV/0!ERROR:#DIV/0!
Net income (loss)$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ (8,147)
Net marginERROR:#DIV/0!ERROR:#DIV/0!
Weighted Average Shares O/S- 0
EPSERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!
Net Income Adjustments
Inventory step-up amortization- 0
Amortization of intangibles
IP related litigation
Consolidation and optimization expenses (OOE)
Acqusition and integration expenses (OOE)
Asset dispositions, severance and other (OOE)
Lake Region Medical transaction costs
Loss (gain) on cost and equity method investments, net
Loss on extinguishment of debt
Tax adjustments
Comparable basis adjustments, net
Adjusted Net Income (Non-GAAP)$ - 0
Adjusted EPS (Non-GAAP)ERROR:#DIV/0!
4Q16
Integer Holdings Corporation
Non-GAAP Adjustments - 2 views
4Q16
GAAPNon-GAAP Adj.Non-GAAP
Income Statement4Q16 ActualAmortizationLitigation Related ChargesConsolidation & OptimizationAcquisition & IntegrationDebt / Investment Related Charges4Q16 Adjusted
Sales$ - 0
Cost of sales- 0
Gross profit$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0
Gross marginERROR:#DIV/0!ERROR:#DIV/0!
Operating expenses:
SG&A- 0
SG&A as a % of revenuesERROR:#DIV/0!ERROR:#DIV/0!
Research, development & engineering- 0
RD&E as a % of revenuesERROR:#DIV/0!ERROR:#DIV/0!
Other operating expense- 0
Operating income$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0
Operating marginERROR:#DIV/0!ERROR:#DIV/0!
Other (income) & expenses:
Interest expense- 0
Interest income- 0
Other (income) loss, net- 0
Loss before income taxes$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0
Provision for income taxes8,147
Effective tax rateERROR:#DIV/0!ERROR:#DIV/0!
Net income (loss)$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ (8,147)
Net marginERROR:#DIV/0!ERROR:#DIV/0!
Weighted Average Shares O/S- 0
EPSERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!
Net Income Adjustments
Inventory step-up amortization- 0
Amortization of intangibles
IP related litigation
Consolidation and optimization expenses (OOE)
Acqusition and integration expenses (OOE)
Asset dispositions, severance and other (OOE)
Lake Region Medical transaction costs
Loss (gain) on cost and equity method investments, net
Loss on extinguishment of debt
Tax adjustments
Comparable basis adjustments, net
Adjusted Net Income (Non-GAAP)$ - 0
Adjusted EPS (Non-GAAP)ERROR:#DIV/0!
FY16
Integer Holdings Corporation
Non-GAAP Adjustments - 2 views
Full-Year 2016
GAAPNon-GAAP Adj.Non-GAAP
Income StatementFY16 ActualAmortizationLitigation Related ChargesConsolidation & OptimizationAcquisition & IntegrationDebt / Investment Related ChargesFY16 Adjusted
Sales$ - 0
Cost of sales- 0
Gross profit$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0
Gross marginERROR:#DIV/0!ERROR:#DIV/0!
Operating expenses:
SG&A- 0
SG&A as a % of revenuesERROR:#DIV/0!ERROR:#DIV/0!
Research, development & engineering- 0
RD&E as a % of revenuesERROR:#DIV/0!ERROR:#DIV/0!
Other operating expense- 0
Operating income$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0
Operating marginERROR:#DIV/0!ERROR:#DIV/0!
Other (income) & expenses:
Interest expense- 0
Interest income- 0
Other (income) loss, net- 0
Loss before income taxes$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0
Provision for income taxes8,147
Effective tax rateERROR:#DIV/0!ERROR:#DIV/0!
Net income (loss)$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ (8,147)
Net marginERROR:#DIV/0!ERROR:#DIV/0!
Weighted Average Shares O/S- 0
EPSERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!
Net Income Adjustments
Inventory step-up amortization- 0
Amortization of intangibles
IP related litigation
Consolidation and optimization expenses (OOE)
Acqusition and integration expenses (OOE)
Asset dispositions, severance and other (OOE)
Lake Region Medical transaction costs
Loss (gain) on cost and equity method investments, net
Loss on extinguishment of debt
Tax adjustments
Comparable basis adjustments, net
Adjusted Net Income (Non-GAAP)$ - 0
Adjusted EPS (Non-GAAP)ERROR:#DIV/0!
1Q17
Integer Holdings Corporation
Non-GAAP Adj. Net Income - 2 views
1Q17
GAAPNon-GAAP Adj.(a)Non-GAAPNon-GAAP
Income Statement1Q17 ActualAmortizationLitigation Related Charges(b)Consolidation & Optimization(c)(e)Acquisition & Integration(d)Debt / Investment Related Charges(f)1Q17 Adjusted1Q16 Adjusted
Sales$ 345,413$ 345,413$ 331,058
Cost of sales254,187(4,084)250,103236,004
Gross profit$ 91,226$ 4,084$ - 0$ - 0$ - 0$ - 0$ 95,310$ 95,0540.3%
Gross margin26.4%27.6%28.7%
Operating expenses:
SG&A39,499(6,758)(377)32,36432,932
SG&A as a % of revenues11.4%9.4%9.9%
Research, development & engineering13,411(136)13,27514,440
RD&E as a % of revenues3.9%3.8%4.3%
Other operating expense11,771(6,951)(4,820)- 0- 0
Operating income$ 26,545$ 10,978$ 377$ 6,951$ 4,820$ - 0$ 49,671$ 47,6824.2%
Operating margin7.7%14.4%14.4%
Other (income) & expenses:
Interest expense28,893(1,559)27,33427,617
Interest income- 0- 0- 0
Other (income) loss, net1,847(398)1,449(2,420)
Loss before income taxes$ (4,195)$ 10,978$ 377$ 6,951$ 4,820$ 1,957$ 20,888$ 22,485-7.1%
Provision for income taxes1443,2321322,0951,6876857,9759,385
Effective tax rate-3.43%38.18%41.74%
Net income (loss)$ (4,339)$ 7,746$ 245$ 4,856$ 3,133$ 1,272$ - 0$ 12,913$ 13,100-1.4%
Net margin-1.3%3.7%4.0%
Weighted Average Shares O/S(h)31,68531,68531,68531,68531,68531,68531,68531,253
EPS$ (0.14)$ 0.24$ 0.01$ 0.15$ 0.10$ 0.04$ 0.41$ 0.42
Net Income AdjustmentsPost-TAXPre-TAX
Inventory step-up amortization- 0- 0
Amortization of intangibles7,74610,978
IP related litigation 245377
Consolidation and optimization expenses (OOE)1,8992,395
Acqusition and integration expenses (OOE)3,1334,820
Asset dispositions, severance and other (OOE)2,9574,556
Lake Region Medical transaction costs
Loss (gain) on cost and equity method investments, net 259398
Loss on extinguishment of debt1,0131,559
Tax adjustments- 0
Comparable basis adjustments, net- 0
Adjusted Net Income (Non-GAAP)$ 12,913
Adjusted EPS (Non-GAAP)$ 0.41
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 30
Non-GAAP Reconciliation1Q16 Net Income and Diluted EPS Reconciliation
See the Footnotes to this table on Slide 31 of this presentation
THREE MONTHS ENDED GAAP Non-GAAP
Income Statement 1Q16 Actual Amortization
Litigation Related
Charges(b)Consolidation & Optimization(c)(e)
Acquisition & Integration(d)
NuvectraSpin(g)
Debt / Investment
Related Charges(f) 1Q16 Adjusted
Sales 332,238$ (1,180)$ 331,058$ Cost of sales 240,770 (4,240) (526) 236,004
Gross profit 91,468$ 4,240$ -$ -$ -$ (654)$ -$ 95,054$ Gross margin 27.5% 28.7%
Operating expenses:SG&A 41,888 (5,136) (1,907) (1,861) 32,984
SG&A as a % of revenues 12.6% 9.9%Research, development & engineering 17,306 (88) (2,830) 14,388
RD&E as a % of revenues 5.2% 4.3%Other operating expense 21,140 (11,175) (9,965) - -
Operating income 11,134$ 9,464$ 1,907$ 11,175$ 9,965$ 4,037$ -$ 47,682$ Operating margin 3.4% 14.4%
Other (income) & expenses:Interest expense 27,617 27,617 Interest income - - Other (income) loss, net (3,721) 1,301 (2,420)
Loss before income taxes (12,762)$ 9,464$ 1,907$ 11,175$ 9,965$ 4,037$ (1,301)$ 22,485$ Provision for income taxes (102) 2,773 667 1,635 3,454 1,413 (455) 9,385 Effective tax rate 0.80% 41.74%
Net income (loss) (12,660)$ 6,691$ 1,240$ 9,540$ 6,511$ 2,624$ (846)$ 13,100$ Net margin -3.8% 4.0%
Weighted Average Shares O/S (h)(j) 30,718 31,253 31,253 31,253 31,253 31,253 31,253 31,253 EPS(i) (0.41)$ 0.21$ 0.04$ 0.31$ 0.21$ 0.08$ (0.03)$ 0.42$
Non-GAAP Adj.(a)
Adjusted P&L-->
Combined 16 - 17
Integer Holdings Corporation
Non-GAAP Adjustments
Non-GAAPNon-GAAP2017 vs 2016 YoY Var $'s2017 vs 2016 YoY Var %'s
Income Statement1Q17 Actual2Q17 RF43Q17 RF44Q17 RF4FY17 RF41Q16 Actual2Q16 Actual3Q16 Actual4Q16 ActualFY16 Actual1Q2Q3Q4QTY1Q2Q3Q4QTY
Sales3453663653471,4233313483473601,386141718(13)374%5%5%(4%)3%
Cost of sales2502602552461,011236248244263991141211(17)206%5%4%(6%)2%
Gross profit9510611010141295100102973940674170%6%7%4%4%
Operating expenses:
SG&A3233343413333323132128(1)1325(2%)2%11%6%4%
RD&E13131414541413111352(1)(0)212(8%)(1%)20%9%4%
Other operating expense0000000000
Operating income50606253225485560522152521104%9%3%1%4%
Other (income) & expenses:
Interest expense2725252510328282828111(0)(3)(3)(3)(9)(1%)(9%)(10%)(11%)(8%)
Interest income0000000000
Other (income) loss, net10001(2)10(3)(5)4(1)(0)36(160%)(100%)(100%)(100%)(129%)
Loss before income taxes2134372912122263228109(2)85112(7%)32%14%3%11%
Provision for income taxes888731997125(1)(0)176(15%)(6%)18%1057%23%
Net income (loss)13262921901318262784(0)93(6)6(1%)50%13%(21%)7%
Weighted Average Shares O/S31.731.731.731.731.731.331.231.231.331.2001001%2%2%1%2%
EPS$ 0.41$ 0.83$ 0.92$ 0.67$ 2.83$ 0.42$ 0.56$ 0.83$ 0.87$ 2.68$ (0.01)$ 0.27$ 0.09$ (0.20)$ 0.15(3%)47%11%(23%)6%
Non-GAAPNon-GAAP2017 vs 2016 YoY Var $'s
Key Metrics1Q17 Actual2Q17 RF43Q17 RF44Q17 RF4FY17 RF41Q16 Actual2Q16 Actual3Q16 Actual4Q16 ActualFY16 Actual1Q2Q3Q4QTY
Gross margin27.6%29.0%30.0%29.0%28.9%28.7%28.8%29.5%27.0%28.5%(1.1%)0.2%0.6%2.1%0.5%
SG&A as a % of revenues9.4%9.0%9.3%9.7%9.3%10.0%9.2%8.8%8.9%9.2%(0.6%)(0.3%)0.5%0.9%0.1%
RD&E as a % of revenues3.8%3.7%3.7%3.9%3.8%4.3%3.9%3.3%3.5%3.7%(0.5%)(0.2%)0.5%0.5%0.1%
Operating Income margin14.4%16.3%17.0%15.4%15.8%14.4%15.7%17.4%14.6%15.5%(0.0%)0.7%(0.4%)0.8%0.3%
Effective tax rate38.2%23.5%20.8%25.4%25.7%41.7%32.8%20.1%2.3%23.1%(3.6%)(9.3%)0.6%23.1%2.6%
Net Income margin3.7%7.2%8.0%6.2%6.3%4.0%5.0%7.4%7.6%6.0%(0.2%)2.1%0.6%(1.4%)0.3%
Combined 15 - 17
Integer Holdings Corporation
Non-GAAP Adjustments
Non-GAAPNon-GAAPNon-GAAP2017 vs 2016 YoY Var $'s2017 vs 2016 YoY Var %'s2016 vs 2015 YoY Var $'s2016 vs 2015 YoY Var %'s
Income Statement1Q17 Actual2Q17 RF43Q17 RF44Q17 RF4FY17 RF41Q16 Actual2Q16 Actual3Q16 Actual4Q16 ActualFY16 Actual1Q15 Actual2Q15 Actual3Q15 Actual4Q15 ActualFY15 Actual1Q2Q3Q4QTY1Q2Q3Q4QTY1Q2Q3Q4QTY1Q2Q3Q4QTY
Sales3453663653471,4233313483473601,3863583773483601,443141718(13)374%5%5%(4%)3%(27)(29)(2)(0)(57)(7%)(8%)(1%)(0%)(4%)
Cost of sales2502602552461,0112362482442639912552662452551,021141211(17)206%5%4%(6%)2%(19)(18)(1)8(30)(7%)(7%)(0%)3%(3%)
Gross profit9510611010141295100102973941031111031054220674170%6%7%4%4%(8)(11)(1)(8)(27)(8%)(10%)(1%)(7%)(6%)
Operating expenses:
SG&A323334341333332313212837383331139(1)1325(2%)2%11%6%4%(4)(6)(3)1(11)(10%)(15%)(8%)3%(8%)
RD&E131314145414131113521211131046(1)(0)212(8%)(1%)20%9%4%32(2)2624%20%(12%)25%13%
Other operating expense000000000000000
Operating income5060625322548556052215556257632372521104%9%3%1%4%(7)(7)3(11)(22)(13%)(12%)6%(17%)(9%)
Other (income) & expenses:
Interest expense272525251032828282811127272727107(0)(3)(3)(3)(9)(1%)(9%)(10%)(11%)(8%)111143%4%4%5%4%
Interest income0000000000
Other (income) loss, net10001(2)10(3)(5)(1)04(2)14(1)(0)36(160%)(100%)(100%)(100%)(129%)(1)0(4)(1)(6)111%62%(99%)57%(809%)
Loss before income taxes213437291212226322810929352639129(2)85112(7%)32%14%3%11%(6)(9)6(11)(20)(22%)(25%)22%(28%)(16%)
Provision for income taxes8887319971257761131(1)(0)176(15%)(6%)18%1057%23%220(10)(6)35%31%3%(94%)(19%)
Net income (loss)132629219013182627842228202898(0)93(6)6(1%)50%13%(21%)7%(9)(11)6(1)(14)(41%)(38%)28%(2%)(15%)
Weighted Average Shares O/S31.731.731.731.731.731.331.231.231.331.231.331.431.531.831.5001001%2%2%1%2%(0)(0)(0)(1)(0)(0%)(0%)(1%)(2%)(1%)
EPS$ 0.41$ 0.83$ 0.92$ 0.67$ 2.83$ 0.42$ 0.56$ 0.83$ 0.87$ 2.68$ 0.71$ 0.90$ 0.64$ 0.87$ 3.11$ (0.01)$ 0.27$ 0.09$ (0.20)$ 0.15(3%)47%11%(23%)6%$ (0.29)$ (0.33)$ 0.19$ (0.00)$ (0.44)(41%)(37%)29%(0%)(14%)
Non-GAAPNon-GAAPNon-GAAP2017 vs 2016 YoY Var $'s2016 vs 2015 YoY Var $'s
Key Metrics1Q17 Actual2Q17 RF43Q17 RF44Q17 RF4FY17 RF41Q16 Actual2Q16 Actual3Q16 Actual4Q16 ActualFY16 Actual1Q15 Actual2Q15 Actual3Q15 Actual4Q15 ActualFY15 Actual1Q2Q3Q4QTY1Q2Q3Q4QTY
Gross margin27.6%29.0%30.0%29.0%28.9%28.7%28.8%29.5%27.0%28.5%28.8%29.5%29.5%29.1%29.2%(1.1%)0.2%0.6%2.1%0.5%(0.1%)(0.7%)(0.1%)(2.1%)(0.8%)
SG&A as a % of revenues9.4%9.0%9.3%9.7%9.3%10.0%9.2%8.8%8.9%9.2%10.2%10.1%9.6%8.6%9.6%(0.6%)(0.3%)0.5%0.9%0.1%(0.3%)(0.9%)(0.7%)0.3%(0.4%)
RD&E as a % of revenues3.8%3.7%3.7%3.9%3.8%4.3%3.9%3.3%3.5%3.7%3.3%3.0%3.7%2.8%3.2%(0.5%)(0.2%)0.5%0.5%0.1%1.1%0.9%(0.4%)0.7%0.6%
Operating Income margin14.4%16.3%17.0%15.4%15.8%14.4%15.7%17.4%14.6%15.5%15.3%16.4%16.3%17.7%16.4%(0.0%)0.7%(0.4%)0.8%0.3%(0.9%)(0.7%)1.1%(3.1%)(0.9%)
Effective tax rate38.2%23.5%20.8%25.4%25.7%41.7%32.8%20.1%2.3%23.1%23.9%18.9%23.8%28.5%23.9%(3.6%)(9.3%)0.6%23.1%2.6%17.8%13.9%(3.6%)(26.2%)(0.9%)
Net Income margin3.7%7.2%8.0%6.2%6.3%4.0%5.0%7.4%7.6%6.0%6.2%7.5%5.8%7.7%6.8%(0.2