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Integra LifeSciences reported 1Q20 orthopedic revenue of USD $21.5 million, -5.3% vs. 1Q19. Revenue tracked above company plans through January and February until COVID disruptions brought significant declines in March. For Integra as a whole, run rates declined nearly -30% in the last two weeks of March. Orthopedics declined more than -80% in April. Per company models, 2Q will be the most negatively impacted, with sequential improvement through the remainder of the year. Leadership believes that 4Q sales will be roughly in line with the prior year and, under more favorable circumstances, could result in opportunities for growth.
Integra currently has $350 million in cash on hand and over $1.1 billion undrawn on its credit facility. In April, the company initiated sweeping cost reduction measures designed to reduce expenses by 30%. These measures include reducing weekly work hours to 32, pay cuts to the Board and executive team and reduction of capital expenditures. Integra anticipates that these cuts will enable the company to maintain its full-time workforce, continue critical R&D and be prepared to take advantage of tuck-in acquisitions post-COVID.
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Extremities | $8.4 | $9.1 | ($0.7) | (7.7%) |
| Trauma | $13.1 | $13.6 | ($0.5) | (3.8%) |
| Total | $21.5 | $22.7 | ($1.2) | (5.3%) |
Geographic Sales
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $15.0 | $16.2 | ($1.2) | (7.6%) |
| OUS | $6.5 | $6.5 | $0.0 | 0.3% |
| EMEA | $2.8 | $3.1 | ($0.3) | (9.3%) |
| Asia Pacific | $2.4 | $2.3 | $0.2 | 7.6% |
| Rest of World | $1.3 | $1.2 | $0.1 | 11.5% |
| Total | $21.5 | $22.7 | ($1.2) | (5.3%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $354.3 | |
| Cost of Sales | $133.5 | 37.7% |
| Selling and Admin | $166.0 | 46.8% |
| R & D | $20.8 | 5.9% |
| Other | $24.9 | 7% |
| Net Earnings | $9.2 | 2.6% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Integra LifeSciences reported 1Q20 orthopedic revenue of USD $21.5 million, -5.3% vs. 1Q19. Revenue tracked above company plans through January and February until COVID disruptions brought significant declines in March. For Integra as a whole, run rates declined nearly -30% in the last two weeks of March. Orthopedics declined more than -80%...
Integra LifeSciences reported 1Q20 orthopedic revenue of USD $21.5 million, -5.3% vs. 1Q19. Revenue tracked above company plans through January and February until COVID disruptions brought significant declines in March. For Integra as a whole, run rates declined nearly -30% in the last two weeks of March. Orthopedics declined more than -80% in April. Per company models, 2Q will be the most negatively impacted, with sequential improvement through the remainder of the year. Leadership believes that 4Q sales will be roughly in line with the prior year and, under more favorable circumstances, could result in opportunities for growth.
Integra currently has $350 million in cash on hand and over $1.1 billion undrawn on its credit facility. In April, the company initiated sweeping cost reduction measures designed to reduce expenses by 30%. These measures include reducing weekly work hours to 32, pay cuts to the Board and executive team and reduction of capital expenditures. Integra anticipates that these cuts will enable the company to maintain its full-time workforce, continue critical R&D and be prepared to take advantage of tuck-in acquisitions post-COVID.
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Extremities | $8.4 | $9.1 | ($0.7) | (7.7%) |
| Trauma | $13.1 | $13.6 | ($0.5) | (3.8%) |
| Total | $21.5 | $22.7 | ($1.2) | (5.3%) |
Geographic Sales
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $15.0 | $16.2 | ($1.2) | (7.6%) |
| OUS | $6.5 | $6.5 | $0.0 | 0.3% |
| EMEA | $2.8 | $3.1 | ($0.3) | (9.3%) |
| Asia Pacific | $2.4 | $2.3 | $0.2 | 7.6% |
| Rest of World | $1.3 | $1.2 | $0.1 | 11.5% |
| Total | $21.5 | $22.7 | ($1.2) | (5.3%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $354.3 | |
| Cost of Sales | $133.5 | 37.7% |
| Selling and Admin | $166.0 | 46.8% |
| R & D | $20.8 | 5.9% |
| Other | $24.9 | 7% |
| Net Earnings | $9.2 | 2.6% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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ME
Mike Evers Mike Evers is an analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
