Integer Holdings Corporation (NYSE:ITGR) Q3 2019 Earnings Conference Call - Final Transcript

Oct 31, 2019 • 09:00 am ET


Integer Holdings Corporation (NYSE:ITGR) Q3 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the Integer Holdings LLC Q3 2019 Earnings Call. [Operator Instructions].

I would now like to hand the conference over to your speaker today, Tony Borowicz, Senior Vice President, Strategy, Corporate Development and Investor Relations. Thank you. Please go ahead.

Anthony W. Borowicz

Thanks, Rob. Good morning, everyone, and thank you for joining us, and welcome to Integer's Third Quarter 2019 Conference Call. The call is being webcast live, and a replay, along with a copy of the press release and earnings presentation, will be available on the Investor Relations section of our corporate website. The results and data we discuss today reflect the consolidated results of Integer for the periods indicated.

During our call, we will discuss some non-GAAP measures. For a reconciliation of these non-GAAP measures, please see the appendix of today's presentation and the notes to the financial statements in today's earnings release. As a reminder, today's presentation includes forward-looking statements. Please refer to the company's SEC filings for a discussion of the risk factors that could cause our actual results to differ materially.

Joining me on the call to discuss our third quarter results is are Joe Dziedzic, President and Chief Executive Officer; and Jason Garland, Executive Vice President and Chief Financial Officer. On today's call, Joe will provide his opening comments. Jason will then review our financial results for the quarter and then provide updated full year 2019 guidance. Joe will come back on for his closing remarks, and then we'll open it up for your questions.

At this point, I'll turn the call over to Joe.

Joseph W. Dziedzic

Thank you, Tony, and good morning, everyone. I'm pleased to report that Integer delivered another strong quarter of earnings and cash as we execute our strategy to win in the markets we serve and achieve excellence in everything we do. We delivered 4% growth in adjusted EBITDA and 14% growth in adjusted net income on flat sales. We paid down $36 million of debt, and we expect our debt leverage to be below 3 times by the end of the year.

Our third quarter results give us the confidence to once again increase our full year profit guidance. We have increased the midpoint of our full year adjusted EBITDA guidance by $3 million, and the midpoint of our adjusted earnings per share guidance is now $0.25 higher. The midpoint of our new EPS guidance is $0.45 higher than our original guidance at the beginning of the year. We are executing our strategy, and it is delivering strong results.

Our full year sales are still within our original 2019 guidance despite the end of life of an electrophysiology program, the recent decline in the neuromodulation marketplace and the change in our fiscal year-end. Our full year guidance remains unchanged at 4% to 5.5% growth, which is within the growth rate of the market.

Our quarterly sales are not linear, and this variation is our reality as a medical device outsourcer, as the timing