IART - Earnings call transcript Q1 2024 | Integra LifeSciences Holdings Corporation

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Operator

Good day, and welcome to the Integra LifeSciences First Quarter 2024 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. Chris Ward, Senior Director, Investor Relations. Please go ahead.

Christopher Ward

Sheri. you, Thank thank Quarter and joining Integra the Good Earnings you Conference First XXXX Call. LifeSciences morning, for With me Financial on and the call are Jan Officer; Lea Chief De and Knight, Chief Officer. Executive Witte, President issued a financials. Earlier this morning, press announcing quarter our release XXXX first we Call and presentation, named which First at call, available referenced the we file corresponding earnings release and under a Investors, will Presentation. Quarter integralife.com are Events The Earnings during XXXX & Presentations

revenue and made the remarks, the during reported that results Before revenue currency, reference statements we discussed many of to Factors Exchange growth, forward-looking. you the I Also to company's in Organic reports organic foreign Act divestitures. are actual organic in revenue growth call begin, excluding of we SEC effects acquisitions this Boston. that want remind excludes materially in will our cause prepared and and be the filed may the could with and release. growth differ

Boston all products voluntary the Boston of that useful revenue recall. all at excluding the manufactured excludes believes Organic when products information stoppage revenues revenue Management our organic excluding manufacturing nature manufactured Unless Boston growth and are plant in franchise-level periods. from and evaluating of organic company's otherwise the unusual the performance. revenue because growth stated, growth, rates from both disaggregated facility on in provides global based

financial of report which the our certain can comments is Reconciliations current to financial non-GAAP found measures exhibit filed Form Integra's lastly, in And today with include press an will be SEC. measures. X-K today's release, non-GAAP

Jan. now turn will call that, to over with I And the

Jan De Witte

with to and for pleasure our you and to update Chris, good year. It's first you, morning, quarter be here the a together Lea Thank results guidance on everyone.

progress, execution XXXX contribution by start during the our period our demands, saying key portfolio world to and broad colleagues market strategy. diversified product robust the having me our a deliver and the and priorities by this of Integra solid Let reflected around performance

range, to by million If that revenues of X.X% due revenue earlier first included the primarily at closed move partially down first year, prior driven #X, Slide our Organic quarter finished quarter the the revenue guidance in orders XXXX. Boston was forecasted. to compared $XXX we February our above to than

growth organic adjusted guidance range. within Boston, was X.X%. Excluding of $X.XX, delivered EPS We our

A and with Codman Specialty our business start brands for dural in to growing our this products and and Surgical Management, business. line of saw neuro expectations year, monitoring. was performance strong growth in a This by CSF and repair X.X% several leading access driven the

continued consistent markets, in saw addition, low have international we our which to the double-digit strength In high growth. single

as broaden and continue our We momentum expand in our products on international to markets expect to and in this to commercial we our new reach build access capabilities. markets

we're demonstrating of completed the uptake, pleased market and and the the -- strong also differentiation global quarter, resilience in We monitoring of portfolio. our CereLink relaunch with pressure

our growth Together, of to transformative welcome Returns our Integra recently in expands knowledge addressable This lives. and impact broaden provides a clinical portfolio. synergistic M&A and enabling in Acclarent We market our ear, profound R&D deep we and neurosurgical important interventions. on pioneer portfolio legacy our assets strong capabilities, patients' make be to for us to excited to as acquisition advanced [ ENT We're will ] of deal expertise, Further, strategic ENT will and deliver the Integra, a scale closed to care. commercial Acclarent, surgical new positions technologies immediate our colleagues. leader nose restore a throat and our accretive segment, impact.

of DuraSorb Within delivered deal reconstruction tracking wound our triple-digit model. our healthy Tissue for business, in We Technologies growth our ahead we to demand see we're portfolio and continue of products. broad

syringe dural the with expanded acquisition, complex delivery we Flex, recent convenient in system and enabling mixing our launch wounds. the UBM wound platform another care of further of a Leveraging precise MicroMatrix MicroMatrix-based

keep able [indiscernible]. during not our strong call, Skin up Integra to sales excluding outlined we of was production February As demand, with in Technologies, X.X% leading decline to Tissue a

to the auditor completed Boston of the Boston. received a the from final audit March. report and We in on plant external third-party Moving

will was by of to You production. the part observations the our FDA audit as recall process that this address resume letter warning required and

that than yield this While we work we audit more fundings report anticipated. anticipated complete, like be would contained and findings there audit the would

to to in the no Based the and patients. XXXX. for our and we We're resume of Boston distribution. to resolving resume back still commercial committed address expect remain fully the these determining distribution preliminary in We assessment, commercial the issues to required the scope full bring products on customers longer work our findings to and market

Now turning guidance. to

We the removal of are all contribution the reflecting X of to for to $X.XX billion, range and SurgiMend guidance and revenue year a $X.XX of of updating our billion revenue revenues from quarters the Acclarent PriMatrix. for XXXX

earnings per more on of adjusted year. $X.XX a share to provide full the updating and range to color per challenges We chain removal also reflect share updated are the guidance revenues. for and the to $X.XX quarter full will Lea year supply our of our Boston second

diversified our robust inorganic our in through Integra's investments broad the Now over on our market. We the reach. to Acclarent to making and deeply like of portfolio committed Boston realizing and portfolio opportunities the let we're Lea, call full strategic and turn me our focused to you, fixing potential our portfolio markets I'll issues and by strength Remain to supply before assure serving returning broaden the

first mid-single-digit guidance growth making. Our are results progress the organic year full we quarter reflects and

Now over to Lea.

Lea Knight

Thank you, Jan.

basis. I'll mentioned, financial quarter $XXX million, Jan and Total revenues by were high revenues X.X% guidance approximately favorable at February, an look order the in were primarily X. total a a first organic of representing our of reported back timing. X.X% a $X decrease above communicated basis on start range give quarter approximately Let's more and million first highlights, on the end driven Slide on detailed

and parts X.X% many strong QX X.X% was down our our business $XX Boston Technologies of XXXX. XX.X%, driven in of of million Tissue growth international organic business. Surgical growth across Codman revenue by revenues approximately First Specialty with was quarter in in

down $X.XX, compared was quarter to XXXX. the for XX.X% EPS adjusted Our

the of the lower for impacted basis quarter. middle points basis unfavorable down lower and P&L, mix were points and Skin approximately and in margins utilization and from scrap the at margins versus revenue were XXX XXX gross international the an XX.X% first XXX by approximately basis XXXX. quarter, Gross Integra Looking points stronger sales, from higher

XX.X%, margins EBITDA down points to Our adjusted compared XXXX. basis XXX were

primarily decrease margins EBITDA adjusted first Operating flow in margins. was decline for quarter the in gross cash reflects $XX million. the Our

growth basis revenues were [ offset Capital X.X% $XXX quarter. low ] comp growth driven management and we'll decline The a into on driven dive by take in by If driven is was million, the deeper you of which CSS first for Plus Reported revenue year. partially in a X, CSS up mid-single-digit these QX to our highlights and the a the turn the Slide and first a by the in CSF an expected X.X% result growth synergy, repair deal an of [indiscernible] Certas relaunch mid-single-digit monitoring dural last quarter by low DuraGen. CUSA double-digit in prior basis and of organic on reported X.X% single-digit in grew by an driven valves basis in organic access tough CereLink, the Neurosurgery on growth neuro across from franchises as year. in

XXXX. for comp, disposable see positive in the first CUSA past the expect move we to Capital and portfolio we growth quarter As

our For low Sterling, were in the driven which with up first quarter, the has by results capital our relaunch digits, sales expectations. double delivered of line

return quarter by first challenging XXXX. of to instruments, full decline comp a to a trajectory. versus X% the we business driven growth Turning to we a approximate year mid-single-digit basis, saw that an On expect

saw China, was by Latin Shifting to international Strength Africa, America, in growth in strong Asia our high Pacific another growth. CSS Middle and mid-single-digit and business. in East quarter Europe. single-digit the double-digit in rest We of growth the quarter driven and with

XX.X% on Slide and our our year. Tissue reported Moving to X. compared on down to segment Tissue prior Technologies basis the organic was Technologies

Excluding growth down Boston, X.X%. organic was

by First sales the wound franchise quarter decreased XX.X%. in reconstruction

on of February. supply driven Skin we that Excluding by organic we X.X%, an experienced decline in the Boston, discussed constraint Integra

XXX% Tissue ]. in a Skin, and driven growth Technologies in in double-digit decline were mid-double-digit than [ Excluding by partially in and quarter Cytal, Boston, greater growth low DuraGen first MicroMatrix by offset revenues Integra DuraSorb

Although provide our to care of confidence see continue complex wound our portfolio, quarter, reconstruction with to for growth down our strong us wound which for continues business. we demand the revenues in potential were the long-term

As recovers, return positioned we to well trajectory. our supply steady are to growth a

below products. business were overlook historic sales performance benefit down X.X% QX [indiscernible]. Label, the performance versus from private XXXX QX slightly was label In QX year, for excluding the X.X%, a in our and strong timing up to due last Private Boston

growth recall due in and Tissue were down Finally, MediHoney. double Technologies and by the low Cytal offset double-digit international supply, in to Skin partially Boston Integra digits, sales MicroMatrix, primarily low

capital update If sheet, X, flow. and structure I cash you our will turn Slide to briefly balance

cash During cash XX-month the on -- basis. a primarily was was on Free $X.X trailing from quarter, working CapEx flow investments XX.X% flow capital increased operating reflecting flow free $XX.X inventory. and in was million, cash continued million conversion and spend

remains with short plans. Our balance strong long-term sheet for liquidities ample and

XX, of our million the billion, and including debt was net consolidated March under $X.X our credit X.Xx. of As was billion, and total total $X.X remainder in had investments and $XXX short-term liquidity cash company facility. The revolving leverage ratio available

QX. flexibility beginning to enabled us of complete the acquisition balance sheet Acclarent Our at the

the revenue second and provide adjusted to full year quarter turn will XXXX. you for earnings per If Slide X, guidance consolidated share I our

Second of between to in representing the be to of to quarter range are $XXX growth million and X.X% reported in $XXX approximately million, growth X.X% X.X%. the approximately revenues organic forecasted and X.X% range

global the forecast quarter. order products, the favorable the in our quarter and strong timing comp favorable from QX and XXXX, Boston diverse in in impact Our the demand from reflects for first portfolio second returns

approximately includes on XX Our [ $XX guidance April beginning second the at quarter sales in million current ]. also midpoint

full $X.XX to to range billion year, billion. forecasted in revenues For of the be the $X.XX are

quarter. returns of year million previously in guidance in third of beginning Boston Our full the updated portfolio forecasted the removes the approximately revenues $XX

includes guidance beginning quarter. Forward also Acclarent the $XX sales in second million approximately and

a for to X.X% and growth growth to range organic reported the year X.X% full be to in our expect We XXXX. X.X% X.X% of be to

share adjusted to guidance. per earnings Turning

the adjusted $X.XX be For expect we to to $X.XX. EPS quarter, second

second to Our reflects remediation efforts, ongoing EPS due lower chain quarter costs supply and higher plant utilization. scrap

and PriMatrix, acquisition, adjusted of $X.XX in relaunch per of and costs year. we the to EPS the of chain we impact full to the For the Acclarent are EPS-neutral supply which expect the of of SurgiMend full still delay inclusion range our the the be the share, year remain reflecting to higher the and for updating $X.XX year,

turn Before considerations I I'd on XX. our the to Jan, Slide like revenue key outlook through for full to take you call back year

in out orders remain We in most the back franchises today clear demand the activating are business, supply the our capital, confronting better path comp move and first have mid-single-digit portfolio. we -- Skin we levels growth potential fully resolved our to our the catch and across are time, committed a resolve in balance Integra on up growth As maintaining CSS quarter determined At to growth focused them. in same challenges have to or our portfolio. we the of item and we

it turn back me Jan. Let to

Jan De Witte

Lea. several parts despite of you, our to Thank for the XX first saw turn demand In differentiated And quarter, portfolio our to healthy business. remarks. headwinds. prepared across conclude please of supply a Slide we products

first Our we half of meet a first the the cadence . and in to track anticipate our half is our performance, second to mid-single-digit more quarter growth year. expectations, of reliable on returning

of acquisition. international the inorganic and expansion the have integration board, demonstrated global strategy execution with and game our brands organic of SIA, successful and and leading the of DuraSorb commercial ongoing global capability of continued outperformance growth of M&A as of close relaunch Acclarent products the by We fast portfolio the CereLink, our and

customers the results focused changes to feel bring and our are on other our back frustration additional Boston. work assure our strengthen execution, chain remediation the and But is audit we supply investors, the this are and understand of achievable. We I that products about you, the and in necessary pleased

remain that Integra I has confident ahead. a future bright

a commercial to have have diversified expansion. of have our markets growth, with we and strong leading we capabilities, We products portfolio fuel stable

to our committed technologies life-saving performance for a to line building Our to leadership deliver reliable growth, profitability and strong consistent single-digit long-term top remain business flow while robust capabilities achieving driving -- and team shareholders. our patients and employees to cash

With to the like for Q&A. that, line open I'd

Operator

Vik [Operator Wells Instructions] line with will of Our the come first Fargo. question from Chopra

Vikramjeet Chopra

facility, we Boston that a came a lot start, think people. news as today your regarding to of surprise the I So recall

your a in And around distribution don't sounds details it mean resume you what share some you So LRP? this results maybe you like had expect commercial revisit follow-up, to I XXXX. then then the to of of does And the please. have audit additional sort Can revealed?

Jan De Witte

Thanks for that question.

warning So look, the thresholds timeline the in satisfy our letter. to we February, based believe communicated of plans achievable when we was on

Now as up that the far were to thought. there's dress much we along to despite done. we more we rehearsal, confirmed as final leading how audit accomplished The not be

As and result a that a result we acknowledge as of accept final that audit.

of products benefit the the the to Now fact and back our this our of should that surgeons, none bringing cloud market remain committed for we patients to shareholders.

changes leadership also structure and to right there. is So and to the our Boston, operations applied we've focus and but broader system made capabilities supply quality and broader the improves quality the to ensure

terms In we LRP, don't update at LRP. any of updating time, on question this in the give point

We give year in planning updates later probably are we we'll the I'll working for update to and there. get Boston, the as

Vikramjeet Chopra

treatment MAX the update. ] of remind and of us has your then and the are percent a exposed products for question, comprehensive proposed what VLUs. LCD? what just [ LCD you on impact Integra you Can And DFUs proposed late my follow-up this for Thank published to X in Okay. this April,

Jan De Witte

Yes.

The these LCDs products skin LCD, covered the LCDs. for ulcer new ulcers the diabetic wound coverage that types, are has, the [ foot new for space. PriMatrix and Integra -- that those two Omnigraft they and substitutes, these proposed proposed regarding the and focused indicated are under remain the the and On DFU ] VLUs, on our

for It however, our a So Integra. small business. that's part news still good today, is, of

for hand, strongly. the impact okay? represents we covered. outcomes feel we evidence. the which projects to the we're term, that's positioned is Plus, strong products that one opportunity for But LCDs But I proposal, trends the Integra future, with our on So it happy say deliver and remain And or that an neutral. have support seem rich would the like this clinical to products areas Integra where is short

Operator

Steve Instructions] Lichtman will come Oppenheimer. line And the of that [Operator from with

Steven Lichtman

the Boston, steps as year? milestones this you Jan, could in next talk guess should if rest are you what go I investors first, about the that the through for looking be of

Jan De Witte

at as this That's the the to into latest point, We're from milestones. I work translating said, we plan. So observations are, going plan. work determining still the audit the determine a

milestones to at pushing know revenues the come this are no year. the time, But enough PriMatrix that point yet we and there's So in for out this yet. conclusion SurgiMend to specific we

Steven Lichtman

in be sort margin full year? thinking then, both? And you can are guidance that Okay. the should XQ gross we EPS operating Lea, assumptions talk about that for the about considerations and implied on any of and And

Lea Knight

Yes.

higher remediation that's gross that out incur scrap first, So as moderately versus about additional cost full thank in remediation talk would on margins me the well. and some light be be ongoing modestly line, we'll of that the gross based February, and And think Steve. you, called utilization flat the perspective, I'll communicated and should margins margin will time about and in that From a you year let Boston of down then back gross On Boston a now talk up. about to year-on-year lower that In QX. basis, again, combination full XXXX. costs then of year we a we step

year-over-year right? in From characterize same you'll of QX do some see a the modestly we that QX, to scrap, we saw what the QX. remediation see bit higher perspective, from from that we impact utilization, So be year-over-year costs little lower a of up but expect sequentially dynamic, will

Operator

with [Operator CL will come the Kristen line King. Instructions] from of And that Stewart

Kristen Stewart

I and was the update an wondering if to Integra you could provide we with those see supply should when just start ease? Skin, constraints

Lea Knight

Yes. Kristen. Thank you, Yes.

our perspective, we from yet. not but are a So capacity Skin is production full running, Integra at

catch working the to in QX very strong. provided. demand I throughout our to have continued what's half, that's We remain to to up and customers guide demand and be and in full ship back contemplated We'll second does QX the that

been demand the out CapEx that. growth that the confidence I on think build to making in we've support continue the whole, are it we on of Integra investments we're gives make with long-term us the to Skin, really happy and that to to seeing capacity some

Kristen Stewart

growth just that are of Acclarent, your going Okay. of assumptions can in leadership? profile forward the us business just remind on terms your And you then what under

Lea Knight

to. Happy

the part that First, I'd team like say April X thrilled completing absolutely Acclarent of of as at acquisition welcoming we our Integra are in to family. and

the of at scale fact general X% gives is as excitement ] part billion. and national that that as adjacency it we've Just system. dilation commercial well the happy Ice in which in indication that Trudy that's $X the us reminder, we're comes the It's ] [ as our specialty with product acquisition a a CSS category growing leverage And about and portfolio system gotten NAV space, era device like our the to that, immediate over assets ENT X a to [ offering It's the business. expanded Station is X%.

our have So to happy that overall, as again, product part really just of portfolio.

perspective, is a have X on that Acclarent we guidance revenue $XX board, million. some of uncertainty. the there sort, understanding quarters From integrations with approach this does the of have reflect guidance for That assumed that we'll

that That that growth that high factored so at single-digit a of be our base operating this And has assumption. to we still will basis. business and been levels into those year believe acquisition accretive said, on capable

Operator

the line Instructions] JPMorgan. [Operator that Marcus will of come with Robbie And from

Robert Marcus

on growth for sales guidance. full year me. to Maybe Two organic start

implies The either digits. single of see or first was something the the high end for mid-single We negative. quarter second high me, end quarter at guidance to it low digits of the

up comps your those do So not I each quarter? those exceed last and in given it targets, hit growth about up to How you easier step realize a given just dollars, does big there's but from pretty rates ability targets, step the year. both in good . require think

Lea Knight

a Robbie. absolutely you're percentage right. Yes, from perspective, Thanks,

demonstrate or parts operating are our view did of reasons many we across the the portfolio, the on growth XX is the provided have that we mid-single-digit Slide I ability of portfolio. across to think at or the to operate that part better we

Gentrix half, It I skin catch to no look -- in does QX growth whose means along perspective, again, levels half, So parts growth second those has at to so mentioned, the perspective that And the talked Robbie, ] From continue continuing. expect that the mean? performance the continue and it's demand business. up as what of as a portfolio the been our of way parts assets that a we about. saw to perform we the second at international on will I and percentage are accelerate DuraSorb, there's with then from other kind we seeing that portfolio, those from the [ CSS across you to help reason of why in main will

lot saw year. growth there's So issues QX we that half and will in some we we to themselves the into of that second that of a overshadowed the naturally alleviate challenges is I potential this saw that degree by think some of get comp as

Robert Marcus

how a higher And Great. of in for the you're the know you're I about level, cutting margins. what us have and if move for in full -- the exactly you've margins walk on Maybe and I guidance manufacturing. you what year? margins, thinking in down second pullback given go-forward quarter you and on now higher through spend and you P&L probably to gross the on a operating there maybe the while, margin, thinking basis a assume quality company's Maybe ability expand could composition been

Lea Knight

Yes.

perspective to flat with utilization to or basis, closer from up margin that scrap -- costs Kristen, moderately versus has again, I full Boston, 'XX. mentioned, the lower modestly down the to some higher gross forecasting we've 'XX seen. a And with along that year-on-year, We're we as now from of were a on to do year-on-year. So year

the as QX. impacting full impacting, also It's that's mentioned, I year. So

stand-alone a from QX dynamics similar So basis.

QX be of same results. But will from QX. themes the will up again, QX We modestly, impact our some

to addressing in But outcomes. -- question terms the second doing your kind things your of half of we of different are that drive

external improvements, activities strengthen overall with our to of network supplier previously improvements, investing to efficiencies we our mentioned as I help call, network yield and drive kind As well. we as supply efficiency productivity in are improvements our in across and last interact

of impact that work to and while now, in start That well. implement identified improvement some to with more realize we areas, have XXXX do ongoing. beyond is as as we've still And expect them to we them, beginning

Operator

Instructions] [Operator Matt from line That of come with Jefferies. Taylor will the

Matthew Taylor

Boston. you of you how now on that wanted I do And that get maybe guess happens, share just ask lot think follow you the scenario I product when the to back, still you would And regain investors? lost? for up I could can you've do assuming frame worst-case a

Lea Knight

like just and XXXX a So the I'll accrued you part of XXXX, that. in based and take in in with returns on we $X the And or kind recall, $X single grounding the perspective, of we it's of essentially million. -- kind give million to terms Boston from first of exited that low million for around dollar,

perspective, So -- there growth from a year-on-year from it's neutralized a is perspective.

what So of forecasting to the you'll in see organic X.X% the performance across we're relates our X.X%, portfolio. to a is XXXX, that rest growth which essentially

back our bring to As as just steps the our and time committed SurgiMend now. one, perspective, the of into -- reentry required not are evaluate we are those impacting a But that. from those PriMatrix XXXX do guidance are take products growth to of we what next market, to

back prospects address what upside perspective, into the we we let Jan reintroduce are. those market. does the And so it from our products think -- represent relaunch I'll perspective as from a

Jan De Witte

Yes.

that, PriMatrix and and not on specific easily briefly chosen are SurgiMend replaced. Just differentiated for products. right? reasons They're

access and and we have with relationships broader So believe those orders. also customers continue to fundamentally customer our remain will to we preference

get in So to, be one to still there. going at the are back elements market point, the

Matthew Taylor

it may is it have being open I I'm just to it's scenario? ended? be difficult with or the back, months another understand what it. Got be X it just mean, worst-case these You Is delay? just a something. further will confidence but still so trying

Jan De Witte

any point, at said, . on Yes. Like Boston guidance the return. we this further give don't I

Operator

come from And Instructions] line with that BTIG. will of [Operator the Ryan Zimmerman

Ryan Zimmerman

that were are interpret Jan, on investors Number lot, about list that PriMatrix has, ACell in moving list. mean parts. and I number Integra the I there's not I I going want portfolio here, for lot Omnigraft there's asked the a of appreciate terms approved that to products. you a But one, there's and think, were products LCD whole on a the -- the LCDs, of on other of and to including

Or And they the used products do and so wound that? have like not so for forth? just what in chronic I'm the are considerations you ] market, built and MeriDerm in talking Cytal [

Jan De Witte

Yes.

So and it's in of part the that these DFU applied VLU second Ryan, products not the question, your areas. are are

by that [ So it our current it's or almost definition does not impact any business ]. of potential

Ryan Zimmerman

there Lea, Okay. margins Robbie steady. was the I year trying think margins, I but down. recognize to full they're Because be And this, in What's is step-up going get if from mean -- can half second it down And then on still year-on-year. half the margins, up improvement, second some the in at driving though, sequentially, still I are holding step still it but can one?

me, or SurgiMend understand excuse just removed in further. -- acquisition? I'm Omnigraft of drive it PriMatrix some of understand PriMatrix these moving to flip are margins. step-up allows costs us help you parts and a with the removed, how Just is, kind you of so and And your Acclarent managing what little that from And side trying to

Lea Knight

Yes.

So right, -- year be a full we'll from from down Ryan, again, basis, moderately.

full half, but required a demand. to has skin in step is significant, a up the a little that lot at being there So of second meeting not do back that of bit with

in high-margin us. That's a see product an improvement for will We margins.

contributing So factor. that's a key

question Acclarent on -- part your the think And of was Acclarent. other I from then

to As neutral XXXX we be I expect mentioned, for still in us. business that EPS

margins. and of margins, that's is overall, again, in in guidance well. we portfolio, that gross as our that And base portfolio and -- So talk around if reflected gross kind the business just

se. So per that's not having a factor

Operator

come that [Operator of will from the line Wuensch Citi. with Instructions] And Joanne

Joanne Wuensch

reporting separate When tucked will start be that I called under two. neuro? have where into? as that Or subdivision you be a Acclarent, will out

Lea Knight

Yes.

as a segment part Acclarent disaggregated of will specifically ENT. say, separate should for revenues, So we for I ENT. our see

Joanne Wuensch

Okay.

what? So sorry, And are out that I'm will you be separately. -- where called

Lea Knight

of -- ENT a ENT. category As as

Joanne Wuensch

you search? are terms a CEO where in And of

Lea Knight

Yes.

So track hire CEO on if the new as year-end, plans not our Board is remains to with original as -- sooner. well identify a by

is progressing. that So

Operator

of come [Operator the Instructions] Rich Truist. line And will with from that Newitter

Richard Newitter

consensus, contribution you first, with comfortable just including Boston XXXX? Maybe are in

Lea Knight

Are contribution, we consensus, including comfortable with Boston? what

Richard Newitter

there's restart. out just half Boston should this of something first Incremental guess, mean, from can comment a 'XX there you've or set. 'XX. take level I now, I to of a appreciate restart. can contribution number the that that we Anything I contemplation, guided 'XX, get so right? Boston just you right but on is that

Lea Knight

I Unfortunately, we to are the understand Yes, guidance with providing XXXX. respect question. not

Jan ongoing findings recent most determine timeline to the fully out is the and coming the of our to As to SurgiMend what mentioned, work PriMatrix. back digest appropriate audit is bring

provide the those information additional beyond bringing we can't that So to are more to we other than the products committed back that fact market.

Richard Newitter

go going you if contemplated the you if Boston facility the not if not, the to capacity more. you will just Okay. chose fully why And then then And just would I back comfortable one skin pathway? be be with back in half? that PMA down online restarting that down or second wondering what Have down -- are And pathway you confident going SurgiMend? so could not

Lea Knight

PMA IBBR it and a So is PMA remains obtaining consistent first the absolutely for us, absolutely SurgiMend strategy. because take priority question let the me with key our

We have will implicate not how this not whether the yet determined or SurgiMend. if at point for timeline, PMA timeline Boston the or it

still is is there, is for the SurgiMend piece diminished. that need that what but So out has and IBBR not absolutely clear

in that that And robust opportunities remain our us, so for to space. capitalize means

work running, that underway and was capacity, at your other we're up that I part will half. -- the back related get us of think are plan allow in lines a not and your demand. not -- the has skin to -- From our to back to Again, meeting but assumptions question because and production we we're have our

in that's And so what's our assumed guide.

Operator

the of from That Bijou Instructions] Craig line America. of Bank will [Operator come with

Craig Bijou

mean discussions to with way understand, start or about want there the the what's with the a from gotten you've review. a aren't perspective, ton helpful it is not would this here. had happening, lot know that you any if guys be Boston. you're at point can I it. think of I But information talk that FDA working providing I on to So know with you've of auditor And questions I but know providing are FDA did you least the I you if external I moving forward. at

Jan De Witte

like speak mean behalf said, FDA. we little I update further. look, So I there's can can't the a definitely of I on

can that's at this get working focus are And where in that Boston. no further plan. but We updates a we point we on time, on

Craig Bijou

there. fair on not Okay. And then mean, question changing important But to needs be and out that uses out that, Rich's you PMA that process? -- it's and it the to timelines, I that move pushed the maybe before Boston still to kind have SurgiMend with guys. you of I at to appreciate you'll a is assume follow-up that remediate to pushed you're forward timeline

Lea Knight

Yes. I'll take that.

doing we to evaluation the report still out of if on the or implicated. got As understand be mentioned, are will that coming Boston we the I PMA how timeline SurgiMend,

ongoing. work that so is And still

again, we'll we now. . that's but more, share where know So right more, when stand we

Operator

the Instructions] And Bedford of come [Operator from line with Jayson that will Raymond James.

Jayson Bedford

these the on looking to products of getting back market. Have the at SurgiMend kind facility? So at and stressed commitment another PriMatrix you manufacturing started you've

Jan De Witte

our planning, in are, we option. excluding not any Jayson, Look,

And where we'll this at leave point. that's so it

Jayson Bedford

facility? up get to take new a it would long another or running How and facility

Jan De Witte

for to Again, we're to There's looking market market. and the a these products are we're great at committed bring us. what our options back opportunity

we take options, them will So if account. into are there

Lea Knight

across point, board The options, capacity both would past, add at as talked that only is, in Boston do from think Braintree Boston about we we to called have we've options at been Braintree looking to [indiscernible]. And and Jan's [ out ]. the I as the building evaluate another we're in site thing I

Operator

Ranieri from And Instructions] that [Operator Morgan line Stanley. the Drew will with come

Andrew Ranieri

looks Acclarent. for is It base the on integration guidance be of -- the can some of Just implying the there like I same your could challenges. understand And for kind revenue XXXX. XXXX

you make up X? you maybe next single-digit to or Acclarent year are about to the So get high talk making what grower in today just have to over being business and what that investments a

the here up your Pat? second, us plans And just deal remind on leverage with deleveraging ticking of

Lea Knight

Yes.

a From can growth question. mentioned, perspective, the So base. accretive we be to Acclarent believe I our thank as you absolutely that for business

sales we're commercial as continuing as behind the As portfolio. it tap to R&D force, to well to that into invest again, XXXX, relates the leverage

new single-digit their so area. of high the great NAV believe offerings to some Trudy represent for offerings, of in opportunity system Some that we growth, deliver us

We station growth. tubes have expanded indication facilitate help an will also that for driving differentiated

are to course point. And of this this so that that those in us the will well build during we're going we're continue year the integration out to doing get XXXX as areas position to to

our what leverage I was there. question think outlook respect -- we other how your is with to and

So to following our range the with of of by integration X.X above end we upfront will X.X. all and close costs, the of slightly our typical the Acclarent expect be leverage QX that

X.Xx. So X.X below down business of back drive year as flows and it half start above come online, the that of slightly Acclarent to from to be over the course of the be we our able the again back will But continue range. other the cash we'll parts realizing

range normal our within year-end. be of we'll by X.X to So X.X

Operator

for concludes today's you This all you. program. Thank Thank participating.

now have wonderful disconnect, a may You day. and

Integra LifeSciences (IART) 6 May 242024 Q1 Earnings call transcript