Revenue totaled $236.8 million in the three months ended March 31, reflecting an increase of $34.2 million, or 16.9 percent, over the first quarter of 2015. The increase reflects strong performance in both business segments, with Orthopedics and Tissue Technologies revenue increasing 37 percent to $85.6 million, and Specialty Surgical Solutions revenue increasing 7.9 percent to $151.1 million. Excluding the contribution of revenues from acquisitions, discontinued products and the effect of currency exchange rates, revenues increased 8.9 percent over the first quarter of 2015.
"Our Dural Repair, Precision Tools and Instruments, and Regenerative Technologies franchises posted strong performance in the first quarter and drove the organic growth results ahead of our previous guidance," said Peter Arduini, Integra's president and CEO. "We are continuing to make investments in product development and commercialization, and plan to introduce new products such as Omnigraft for diabetic foot ulcers and Cadence for total ankle arthroplasty, later this year."
Results for the first quarter of 2016 include the addition of 3.8 million shares issued in an equity offering in August 2015.
The company reported GAAP net income of $11.6 million, or $0.31 per diluted share, for the first quarter of 2016 compared to GAAP net income of $11.7 million, or $0.35 per diluted share, for the first quarter of 2015. Adjusted gross margins reached a record high.
Adjusted net income for the first quarter of 2016 was $27.6 million, or $0.74 per share, compared to adjusted net income of $24.0 million, or $0.72 per share, in the first quarter of 2015.
Adjusted EBITDA for the first quarter of 2016 was $52.1 million, or 22 percent of revenue, compared to $43.6 million, or 21.5 percent of revenue, in the prior year's first quarter.
Adjusted free cash flow conversion for the trailing 12 months ended March 31 was 55.2 percent versus 48.5 percent in the prior year trailing 12-month period.Based upon the first quarter's result, executives are raising the low end of their full-year 2016 revenue guidance to a new range of $985 million to $1 billion, up from a prior guidance of $975 million to $1 billion. The company also is raising its full-year 2016 organic revenue growth to approximately 8 percent from its previous guidance of approximately 7 percent. The company is adjusting the low end of its full-year adjusted earnings per share guidance range to $3.38 - $3.50 from $3.35 - $3.50. Integra's GAAP earnings per share guidance is now $1.73 to $1.85.
"Our strong financial performance in the first quarter gives us the confidence to increase our organic revenue growth target for the full-year," said Glenn Coleman, Integra's chief financial officer. "We are also making significant selling, marketing, clinical and product development investments, concentrated in the first half of the year, which we expect will lead to greater margin expansion in the back half of 2016."
Plainsboro, N.J.-based Integra LifeSciences provides solutions in regenerative technology, specialty surgical solutions, orthopedics and tissue technologies, and spine hardware and orthobiologics.