Integra LifeSciences Holdings Corporation (Nasdaq:IART) today reported its financial results for the first quarter ending March 31, 2010. Total revenues for the first quarter were $172.7 million, reflecting an increase of $11.7 million, or 7%, over the first quarter of 2009. Excluding the impact of currency exchange rates, revenues increased 6% over the first quarter of 2009. Revenues by product category are presented in a table at the end of this press release.
"Despite ongoing challenges in our industry, the continued improvement across our product categories builds a foundation for sales growth and earnings leverage in 2010," said Stuart Essig, Integra's President and Chief Executive Officer.
The Company reported GAAP net income of $15.2 million, or $0.50 per diluted share, for the first quarter of 2010, compared to GAAP net income of $9.6 million, or $0.32 per diluted share, for the first quarter of 2009.
Adjusted net income for the first quarter of 2010, computed with the adjustments to GAAP reporting set forth in the attached reconciliation, was $19.0 million, or $0.63 per diluted share, compared to $17.0 million, or $0.58 per diluted share, in the first quarter of 2009. Amounts in both periods exclude intangible asset amortization, which was $4.5 million, in the first quarter of 2010 and $4.9 million in the first quarter of 2009.
Integra generated $28.1 million in cash flows from operations and used $5.9 million of cash on capital expenditures in the first quarter of 2010. During the quarter, Integra paid down $15.0 million of its credit facility with cash.
"In addition to our revenue growth, I was pleased by the profitability and cash generation of the Company," said Integra's Chief Financial Officer, Jack Henneman.
Adjusted EBITDA for the first quarter of 2010, computed with the adjustments to GAAP reporting set forth in the attached reconciliation, was $33.8 million, the same as first quarter last year.
Adjusted EBITDA excluding stock-based compensation for the first quarter of 2010, computed with the adjustments to GAAP reporting set forth in the attached reconciliation, was $37.6 million, also the same as first quarter last year.
Outlook for 2010
The Company is reiterating its revenue guidance and GAAP and adjusted earnings per share guidance for the full year 2010. The Company continues to anticipate revenues between $715 million and $735 million. The Company is guiding to GAAP earnings per diluted share of between $1.92 and $2.07 and to adjusted earnings per diluted share of between $2.60 and $2.75. This guidance for adjusted earnings per diluted share excludes intangible asset amortization. In accordance with our usual practice, expectations for financial performance do not include the impact of acquisitions or other strategic corporate transactions that have not yet closed.
In the future, the Company may record, or expects to record, certain additional revenues, gains, expenses or charges (such as acquisition-related charges, facility consolidation, manufacturing and distribution transfer, and systems integration charges, non-cash interest expense related to the application of authoritative guidance for convertible debt instruments that may be settled in cash upon conversion ("FSP APB 14-1"), and intangible asset amortization) that it will exclude in the calculation of adjusted EBITDA and adjusted earnings per share for historical periods and in providing adjusted earnings per share guidance.
On a quarterly basis, the Company expects to incur approximately $4 million of share-based compensation expense in 2010. This non-cash compensation expense is reflected in both the GAAP and adjusted earnings per diluted share guidance for 2010 provided above.