Benzinga | Feb 18, 2021 07:40AM EST

Integra Lifesciences' Q4 Earnings Come In Above Expectations, Issues Soft Q1 Guidance

* Integra Lifesciences Holdings Corp (NASDAQ: IART) reported Q4 adjusted EPS $0.84 better than the consensus estimate of $0.73 and revenues of $388.6 million in line with expectations.

* Revenues declined 1.6% Y/Y on a reported basis and a decrease of 1.5% on an organic basis, as the COVID-19 pandemic negatively impacted the surgical procedure volumes.

* The largest year-over-year revenue decline rates occurred in April, and surgical procedure volumes recovered over the balance of 2020. In Q4, surgical procedure volumes increased 5% sequentially.

* Adjusted net income of $71.3 million improved from $58.9 million in the prior-year quarter, primarily driven by the Company's actions to reduce operating expenses during the pandemic to mitigate the impact of lower sales.

* Adjusted EBITDA was $102.7 million, higher than $91.6 million a year ago. Cash flows from operations reached $80.3 million.

* The Company ended the quarter with $470.2 million in cash and cash equivalents, $1.2 billion in undrawn revolver capacity, and a consolidated total leverage ratio of 3.0x.

* For Q1 2021, the Company expects revenues from $345 million to $355 million, marginally lower than the consensus of $359.9 million. It sees adjusted EPS of $0.54 to $0.58 below the consensus estimate of $0.64.

* For 2021, Integra sees revenues in a range of $1.52 billion to $1.53 billion, short of $1.54 billion consensus and adjusted EPS of $2.86 to $2.93, compared to consensus of $2.92.

* The Company expects a reported revenue contribution from ACell in the range of $83 million to $88 million for 2021, with approximately $14 million to $15 million in Q1 of 2021. Integra completed the acquisition of ACell last month.

* Price Action: IART closed 2.4% higher at $71.15 on Wednesday.