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Dec 31, 2020
Integer Q4 2020 Earnings Report
Integer Holdings Corporation reported strong Q4 sequential sales and profit increase.
Key Takeaways
Integer Holdings Corporation reported Q4 2020 results with sales at the high end of guidance and profit above guidance. Strong cash management led to a $123 million reduction in net total debt in 2020.
Q4 results reflect the beginning of the recovery from the pandemic.
Sales and profit improved significantly from the third quarter.
Integer's associates continued to deliver for customers and their patients.
Integer increased investments in strategy versus 2019.
Integer
Integer
Forward Guidance
Full year 2021 financial outlook reflects an expected recovery of the industry with year-over-year sales growth projected to be 8% to 12%.
Positive Outlook
- Integer’s first quarter sales are projected to be sequentially better than the fourth quarter of 2020
- Second quarter should be similar or slightly better than the first quarter.
- Operating income to reflect the increase in sales
- Operating income to reflect the continued execution of manufacturing excellence strategic imperative.
- Project to generate $90 to $110 of free cash flow
Challenges Ahead
- Improvement in the second half of 2021 to be determined by the pace of COVID-19 recovery.
- Adjusted EBITDA is expected to consist of Adjusted net income, excluding items such as depreciation, interest, stock-based compensation and taxes totaling approximately $116 million to $120 million.
- Dependence upon a limited number of customers
- Pricing pressures that we face from customers
- The intense competition we face and our ability to successfully market our products