2. Presentation of Financial Information &
Forward Looking Statements
Historical financial and operating data in this presentation reflect the consolidated results of Integer for the periods
indicated.
This presentation includes financial information prepared in accordance with accounting principles generally accepted in
the United States, or GAAP, as well as other financial measures referred to as non-GAAP. The non-GAAP financial
measures in this presentation, which include Adjusted Net Income, Adjusted Diluted EPS, Earnings Before Interest Taxes
Depreciation and Amortization (EBITDA), and Adjusted EBITDA, should be considered in addition to, but not as
substitutes for, the information prepared in accordance with GAAP. For reconciliations of these non-GAAP financial
measures to the most comparable GAAP measures, please refer to the appendix to this presentation and the earnings
release associated with this quarterly period which can be found in the investor relations section of our corporate website
(www.integer.net).
Statements made in this presentation whether written or oral may be “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of Securities Exchange Act of 1934, as
amended, and involve a number of risks and uncertainties. These statements can be identified by terminology such as
“may,” “will,” “should,” “could,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or
“continue” or “variations” or the negative of these terms or other comparable terminology. These statements are based on
the company’s current expectations and speak only as of May 8, 2017. The Company’s actual results could differ
materially from those stated or implied by such forward-looking statements. The Company assumes no obligation to
update forward-looking information, including information in this presentation, to reflect changed assumptions, the
occurrence of unanticipated events or changes in future operating results, financial conditions or prospects.
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 2
5. Quarterly Results Reflect Continued Progress
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 5
“First quarter results
are in-line with our
full-year expectations
and demonstrate
continued progress
as we move our
business back to a
growth trajectory
following a
challenging 2016.”
• 1Q17 Financial Results
• Revenue trajectory continues to improve
• Adjusted Net Income up 26% organically
• Strong cash flow generation supports continued deleveraging
• Operational and Commercial Results
• Nearly complete with initial integration plans, focus shifting to
optimization of new business processes
• Integration synergies on track for ~$50 million of cumulative
savings through YE 2017
• Improving customer relationships yielding dividends in 1Q17
‒ Overcame a previously strained relationship to sign a multi-year
outsourcing agreement of a 100% insourced product.
‒ Signed agreement with a large customer to manage a complex
portion of their supply chain for an existing product line we
currently manufacture
8. 1Q17 Adjusted Financial Results(1)
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 8
$( in millions, except per share amounts)
(1) Refer to the appendix of this presentation for a reconciliation of Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS to the most directly comparable GAAP measure
(2) Organic growth for Revenue excludes the impact of foreign exchange and excludes the results of Nuvectra Corporation (“Nuvectra”) prior to its spin-off on March 14, 2016
(3) Organic growth for Adjusted EBITDA and Adjusted Net Income exclude the impact of foreign exchange reported in other (income) loss, net
Revenue Adjusted EBITDA Adjusted Net Income
1Q16 1Q17 1Q16 1Q171Q16 1Q17
$331
$345
+5% organic(2)
$65 $64
$13 $13
Adjusted
EPS
$0.42 $0.41
% Growth
+4% reported
+4% organic(3)
(2)% reported
+26% organic(3)
(1)% reported
9. -50%
-30%
-10%
10%
-20%
-10%
0%
10%
Continued Revenue Improvement in 1Q17
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 9
-15%
-10%
-5%
0%
5%
10%
1Q16 2Q16 3Q16 4Q16 1Q17
(7)% (8)%
(1)%
0%
5%
0%
Integer(1)
1Q16 2Q16 3Q16 4Q16 1Q17
0%
0%
Advanced Surgical, Orthopedics & Portable Medical
-20%
-10%
0%
10%
0%
Cardiac & Neuromodulation
-20%
-10%
0%
10%
0%
Cardio & Vascular
Non-Medical (Electrochem)
(1) Excludes impact from changes in foreign currency exchange rates as well as the results of Nuvectra
Corporation (“Nuvectra”) prior to its spin-off on March 14, 2016. For reconciliations of non-GAAP
financial measures to the most directly comparable GAAP measure, please refer to the appendix of this
document
QuarterlyYOY%Change
QuarterlyYOY%OrganicChange
• Returning to YOY revenue growth for the
first time in five quarters
10. ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 10
(1) Adjusted EBITDA, Adjusted EPS and Adjusted Net Income provided on a comparable basis. Comparable basis amounts for 1Q16 exclude the results of Nuvectra Corporation (“Nuvectra”) prior to its spin-
off on March 14, 2016. Refer to the investor relations section of our website for historical pro forma information that contains a reconciliation of 1Q16 comparable amounts to as reported amounts. Refer to
the appendix of this presentation for a reconciliation of Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS to the most directly comparable GAAP measure
(2) Organic amounts exclude the impact of foreign exchange reported in other (income) loss, net
Adjusted EBITDA(1)
$( in millions except per share amounts)
Driving Organic Growth to the Bottom Line
Adjusted EPS(1)
$0.42
$0.09 $(0.10)
$0.41
1Q16 1Q17
$13.1
Adjusted
Net
Income
$2.9 $(3.1) $12.9
Organic(2)
FX
1Q16 1Q17
$65
$64
$(4)$3
Organic(2)
FX
11. $27 $30 $38
$120
$230
$938
$360
2017 2018 2019 2020 2021 2022 20231Q17
Debt
Payments
Continued Strong Cash Flow Generation
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 11
• Generating sufficient cash flow to meet
current debt obligations and accelerate
debt repayment
• Repaid $29M of debt in 1Q17 – total
payments of $73M since acquisition
• Continued focus on reducing leverage
• Near-term mandatory debt repayments
very manageable
• Reduced interest on $1.0B of LT debt
75 bps
• No significant maturities until 2020
• 35% fixed rate
• Well within covenant compliance
requirements
$( in millions)
(1) Free Cash Flow defined as Cash from Operations less Capital
Expenditures
$( in millions)
Cash Flow From Operations Free Cash Flow
$( in millions)
Future Mandatory Debt Repayment Schedule
$( in millions)
$11
$18
$29
Accelerated Repayment
Required Repayment
$(8)
$21 $22
$26
2Q16 3Q16 4Q16 1Q17
$4
$38
$34
$39
2Q16 3Q16 4Q16 1Q17
12. 2016 2017
Reaffirming our Full-Year 2017 Outlook
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 12
2016 2017 2016 2017
Revenue Adjusted EPS Cash Flow from Operations
$1,386
$2.68
$1,390 - $1,430
$2.70 - $3.10
$106
~$150
Outlook Outlook Outlook
14. -20%
-15%
-10%
-5%
0%
5%
10%
15%
Advanced Surgical, Orthopedics & Portable Medical
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 14
Providing a wide range of technologies and solutions to the
Advanced Surgical and Orthopedic markets
0%
YOY Growth(1)(2)
1Q16 2Q16 3Q16 4Q16 1Q17
8%
• 1Q17 Revenue up YOY, primarily driven by return to expected Portable Medical
volumes, following completion of facility transfer in 2016
• Overall revenue performance is trending positively as a result of new product
ramps in the Orthopedic and Arthroscopic product lines
• Expect incremental revenue growth in 2017 as new product launches reach
anticipated volumes and base business sees increasing market growth
• Customer relationships remain strong; balancing customer needs for improved
costs with continuous improvement initiatives and revenue growth
• Investments in innovation continue with focus on Wireless technology and
Single Use Orthopedic instrumentation
(12)%
(5)%
(4)% (4)%
(1) 2016 YOY growth rates represent management’s estimates pending
realignment of 2015 revenue in new product-line structure
(2) 2017 YOY growth rate excludes the impact of foreign exchange
%Change
Orthopedic Implants &
Instruments
Biopsy & Drug
Delivery
Portable Medical
(Power Solutions)
Laparoscopy &
General Surgery
Arthroscopy Products
15. -20%
-15%
-10%
-5%
0%
5%
10%
15%
Cardio & Vascular
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 15
Offering a full-range of products and services for catheter-based interventional
vascular devices and a suite of supply chain solutions to support the
development and manufacturing of complex components, sub-assemblies and finished devices
Steerable Sheaths Catheters & Sheaths Guidewires, Stylets &
Accessories
Introducers
0%
1Q16 2Q16 3Q16 4Q16 1Q17
10%
• Growth driven by longevity and strength of existing OEM and
contract component business
• Historical variability in growth driven by customer stocking actions
taken in advance of product facility transfers – expect to see more
normalized demand pattern in future quarters
• Positive outlook for 2017 – several new opportunities, well-
positioned in sales process
• Strong customer relationships enabling deeper penetration and
increased customer opportunities for future revenue
(2)%
0% 2%
9%
(1) 2016 YOY growth rates represent management’s estimates pending
realignment of 2015 revenue in new product-line structure
YOY Growth(1)
%Change
16. -20%
-15%
-10%
-5%
0%
5%
10%
15%
Cardiac & Neuromodulation
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 16
Providing technology solutions for the active implantable medical device industry
by partnering with customers to bring high-quality products to
established and emerging markets – from initial concept through to high-volume manufacturing
Pulse Generator Components
& Assemblies
Leads & Lead Components,
Adaptors & Assemblies
• Demand strengthening and production ramping throughout the year
on several key customer product lines including batteries, enclosures,
feedthroughs and machined components
• Driving mid- and long-term growth through active support of higher
growth rate neuromodulation customers
• Positive outlook for 2017 – increased focus on customer relationships
and value-added services expected to accelerate revenue
opportunities
Pulse Generators & External Solutions
(Programmers, Chargers, Patient Devices)
YOY Growth(1)(2)
0%
1Q16 2Q16 3Q16 4Q16 1Q17
(3)%
(4)%
(13)%
3%
(5)%
(1) 2016 YOY growth rates represent management’s estimates pending realignment of 2015
revenue in new product-line structure
(2) Excludes the results of Nuvectra Corporation prior to its spin-off on March 14, 2016
%Change
17. -50%
-40%
-30%
-20%
-10%
0%
10%
Electrochem
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 17
Enhancing lives worldwide by providing superior power solutions that
enable the success and advancement of our customers’ critical applications
Battery Packs
• Revenue continues to trend towards YOY growth driven by
increased North American energy customer activity
• Positive outlook for balance of 2017 pending continued stabilization
in the Energy market
• Demonstrated history of operational and quality performance driving
incremental revenue opportunities through market share gains and
increased value add
• Military and Environmental customer volumes dependent on
government funding
• Aggressively pursuing new customer and expanded market
opportunities
0%
1Q16 2Q16 3Q16 4Q16 1Q17
(3)%
Battery ChargersBattery Cells
(33)%
(40)%
(27)%
(12)%
(1) 2016 YOY growth rates represent management’s estimates pending
realignment of 2015 revenue in new product-line structure
YOY Growth(1)
%Change
19. Key Strategic Focus Areas
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 19
“Our vision is to
enhance the lives of
patients worldwide
by being our
customers’ partner of
choice for innovative
technologies and
services.”
• Executing our strategy
• Serving the needs of our customers as their global device outsource partner
• Leveraging our global presence and breadth of capabilities to provide high quality
manufactured products – from components to finished devices
• Delivering innovative design, process solutions and services
• Optimizing operations and commercial actions
• Continuous improvement and productivity initiatives across global operations
• Executing supply chain optimization programs
• Standardizing IT systems across the organization
• Penetrating high-growth market areas
• Transitioning leadership to drive further growth
• CEO search progressing well
• Interim CEO priorities – Execute existing strategy and deliver on Integer
commitments to customers, associates and investors
• New CFO (Gary Haire) started May 1st, focusing on profitable growth, cash flow
generation and operational improvements
24. Historical Financial Results
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 24
$114 $122 $129 $126 $125
$107 $107 $108 $116 $104
$98
$110 $100 $107
$105
$12
$10 $9
$11
$11
1Q16 2Q16 3Q16 4Q16 1Q17
$0.42
$0.56
$0.83
$0.87
$0.41
1Q16 2Q16 3Q16 4Q16 1Q17
Revenue(1) Adjusted EPS(1)(2)
$345
$331
$348 $347
$360
Non-Medical
Cardiac & Neuro
Cardio & Vascular
Adv. Surgical, Ortho &
Portable Medical (1) Revenue and Adjusted EPS information provided on a comparable basis. Comparable basis amounts for 2016 exclude the results of Nuvectra Corporation
(“Nuvectra”) prior to its spin-off on March 14, 2016. Refer to the investor relations section of our website for historical pro forma information that contains a
reconciliation of 1Q16 comparable amounts to as reported amounts.
(2) Refer to the appendix of this presentation for a reconciliation of Adjusted Net Income to the most directly comparable GAAP measure
$( in millions, except per share amounts)
25. Working Capital
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 25
Working Capital
$( in millions)
$318 $317 $325 $332 $325
1Q16 2Q16 3Q16 4Q16 1Q17
(1) Inventory Turns calculated as “COGS divided by quarterly Average Inventory multiplied by 4” to reach an annualized number
1Q16 2Q16 3Q16 4Q16 1Q17
Inventory $267 $276 $262 $225 $231
Inventory Turns
(1)
3.7 3.7 3.7 4.4 4.5
Capital Expenditures $19 $12 $17 $11 $12
26. Other Operating Expenses
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 26
1Q17 1Q16 NOTES:
2014 Investments in
Capacity and Capabilities
$1.6 $4.2
Portable Medical and
Vascular product line
transfers
Legacy Lake Region Medical
Consolidation and Optimization
$0.7 $2.4
Acquisition and Integration Costs $4.8 $10.0 Lake Region Medical
Asset Dispositions,
Severance, and Other
$4.6 $4.5
Nuvectra spin-off in 1Q16
Management transition costs
in 1Q17
Other consolidation and disposition
initiatives
$0.1 $0.1
TOTAL OOE $11.8 $21.1
Three Months Ended
27. ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 27
Non-GAAP Reconciliation
Net Income and Diluted EPS Reconciliation – QTD
See the Footnotes to this table on Slide 30 of this presentation
Three Months Ended
March 31, 2017 April 1, 2016
(in thousands except per share amounts) Pre-Tax
Net
Income
(Loss)
Per
Diluted
Share Pre-Tax
Net
Income
(Loss)
Per
Diluted
Share
As reported (GAAP) $ (4,195) $ (4,339) $ (0.14) $ (12,762) $ (12,660) $ (0.41
Adjustments:
Amortization of intangibles(a) 10,978 7,746 0.24 9,464 6,691 0.21
IP related litigation (SG&A)(a)(b)
377 245 0.01 1,907 1,240 0.04
Consolidation and optimization expenses (OOE)(a)(c) 2,395 1,899 0.06 6,649 5,314 0.17
Acquisition and integration expenses (OOE)(a)(d)
4,820 3,133 0.10 9,965 6,511 0.21
Asset dispositions, severance and other (OOE)(a)(e) 4,556 2,957 0.09 4,526 4,226 0.14
(Gain) loss on cost and equity method investments, net(a) 398 259 0.01 (1,301) (846) (0.03
Loss on extinguishment of debt(a)(f) 1,559 1,013 0.03 — — —
Nuvectra results prior to spin-off(a)(g) — — — 4,037 2,624 0.08
Taxes(a) (7,975) — — (9,385) — —
Adjusted (Non-GAAP) $ 12,913 $ 0.41 $ 13,100 $ 0.42
Adjusted diluted weighted average shares(h) 31,685 31,253
28. Non-GAAP Reconciliation
1Q17 Net Income and Diluted EPS Reconciliation
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 28
See the Footnotes to this table on Slide 30 of this presentation
GAAP Non-GAAP
Income Statement 1Q17 Actual Amortization
Litigation
Related
Charges(b)
Consolidation &
Optimization(c)(e)
Acquisition &
Integration(d)
Debt /
Investment
Related
Charges(f)
1Q17 Adjusted
Sales 345,413$ 345,413$
Cost of sales 254,187 (4,084) 250,103
Gross profit 91,226$ 4,084$ -$ -$ -$ -$ 95,310$
Gross margin 26.4% 27.6%
Operating expenses:
SG&A 39,499 (6,758) (377) 32,364
SG&A as a % of revenues 11.4% 9.4%
Research, development & engineering 13,411 (136) 13,275
RD&E as a % of revenues 3.9% 3.8%
Other operating expense 11,771 (6,951) (4,820) -
Operating income 26,545$ 10,978$ 377$ 6,951$ 4,820$ -$ 49,671$
Operating margin 7.7% 14.4%
Other (income) & expenses:
Interest expense 28,893 (1,559) 27,334
Interest income - -
Other (income) loss, net 1,847 (398) 1,449
Loss before income taxes (4,195)$ 10,978$ 377$ 6,951$ 4,820$ 1,957$ 20,888$
Provision for income taxes 144 3,232 132 2,095 1,687 685 7,975
Effective tax rate -3.43% 38.18%
Net income (loss) (4,339)$ 7,746$ 245$ 4,856$ 3,133$ 1,272$ 12,913$
Net margin -1.3% 3.7%
Weighted Average Shares O/S (h)
31,685 31,685 31,685 31,685 31,685 31,685 31,685
EPS (0.14)$ 0.24$ 0.01$ 0.15$ 0.10$ 0.04$ 0.41$
Non-GAAP Adj.(a)
29. ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 29
Non-GAAP Reconciliation
1Q16 Net Income and Diluted EPS Reconciliation
See the Footnotes to this table on Slide 30 of this presentation
GAAP Non-GAAP
Income Statement 1Q16 Actual Amortization
Litigation
Related
Charges(b)
Consolidation &
Optimization(c)(e)
Acquisition &
Integration(d)
Nuvectra Spin(g)
Debt /
Investment
Related
Charges(f)
1Q16 Adjusted
Sales 332,238$ (1,180)$ 331,058$
Cost of sales 240,770 (4,240) (526) 236,004
Gross profit 91,468$ 4,240$ -$ -$ -$ (654)$ -$ 95,054$
Gross margin 27.5% 28.7%
Operating expenses:
SG&A 41,888 (5,136) (1,907) (1,913) 32,932
SG&A as a % of revenues 12.6% 9.9%
Research, development & engineering 17,306 (88) (2,778) 14,440
RD&E as a % of revenues 5.2% 4.3%
Other operating expense 21,140 (11,175) (9,965) - -
Operating income 11,134$ 9,464$ 1,907$ 11,175$ 9,965$ 4,037$ -$ 47,682$
Operating margin 3.4% 14.4%
Other (income) & expenses:
Interest expense 27,617 27,617
Interest income - -
Other (income) loss, net (3,721) 1,301 (2,420)
Loss before income taxes (12,762)$ 9,464$ 1,907$ 11,175$ 9,965$ 4,037$ (1,301)$ 22,485$
Provision for income taxes (102) 2,773 667 1,635 3,454 1,413 (455) 9,385
Effective tax rate 0.80% 41.74%
Net income (loss) (12,660)$ 6,691$ 1,240$ 9,540$ 6,511$ 2,624$ (846)$ 13,100$
Net margin -3.8% 4.0%
Weighted Average Shares O/S (h)
31,253 31,253 31,253 31,253 31,253 31,253 31,253 31,253
EPS (0.41)$ 0.21$ 0.04$ 0.31$ 0.21$ (0.03)$ 0.42$
Non-GAAP Adj.
30. Non-GAAP Reconciliations
Footnotes to “Net Income and Diluted EPS Reconciliation”
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 30
(a) The difference between pre-tax and net income (loss) amounts is the estimated tax impact related to the respective adjustment. Net income amounts are computed
using a 35% U.S. tax rate, and the statutory tax rates in Mexico, Germany, France, Netherlands, Uruguay, Ireland and Switzerland, as adjusted for the existence of net
operating losses. Expenses that are not deductible for tax purposes (i.e. permanent tax differences) are added back at 100%.
(b) In 2013, we filed suit against AVX Corporation alleging they were infringing our intellectual property. Given the complexity and significant costs incurred pursuing this
litigation, we are excluding these litigation expenses from adjusted amounts. This matter proceeded to trial during the first quarter of 2016 and a federal jury awarded
the Company $37.5 million in damages. To date, no gains have been recognized in connection with this litigation.
(c) During 2017 and 2016, we incurred costs primarily related to the transfer of our Beaverton, OR portable medical and Plymouth, MN vascular manufacturing operations
to Tijuana, Mexico, the closure of our Arvada, CO, site and the consolidation of our two Galway, Ireland sites. In addition, 2017 costs also include expenses related to
the closure of our Clarence, NY facility.
(d) Reflects acquisition and integration costs related to the acquisition of Lake Region Medical, which was acquired in October 2015.
(e) Amounts for 2017 include approximately $4.7 million of expense related to our CEO and CFO transitions. Costs for 2016 primarily include legal and professional fees
incurred in connection with the spin-off of Nuvectra, which was completed in March 2016.
(f) Represents debt extinguishment charges in connection with pre-payments made on our Term B Loan Facility in the first quarter 2017, which are included in Interest
Expense.
(g) Represents the results of Nuvectra Corporation (“Nuvectra”) prior to its spin-off on March 14, 2016.
(h) The adjusted diluted weighted average shares for the three months ended March 31, 2017 and April 1, 2016 include 669,000 and 535,000, respectively, of potentially
dilutive shares not included in the computation of diluted weighted average common shares for GAAP diluted EPS purposes because their effect would have been anti-
dilutive given the Company’s net loss in those quarters.
31. Non-GAAP Reconciliations
Adjusted EBITDA Reconciliation
a) Represents the results of Nuvectra prior to its spin-off in March 2016
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 31
Three Months Ended
(in thousands)
March 31,
2017
April 1,
2016
Net loss (GAAP) $ (4,339) $ (12,660)
Interest expense 28,893 27,617
(Benefit) provision for income taxes 144 (102)
Depreciation 13,628 12,949
Amortization 10,978 9,464
EBITDA 49,304 37,268
IP related litigation 377 1,907
Stock-based compensation (excluding OOE) 2,406 2,029
Consolidation and optimization expenses 2,395 6,649
Acquisition and integration expenses 4,820 9,965
Asset dispositions, severance and other 4,556 4,526
Noncash (gain) loss on cost and equity method investments 398 (639)
Nuvectra results prior to spin-off(a)
— 3,665
Adjusted EBITDA (Non-GAAP) $ 64,256 $ 65,370
32. Non-GAAP Reconciliations
Organic Revenue Growth Rate Reconciliation
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 32
Three Months Ended 1Q 2017
As
Reported
Impact of
Nuvectra
Prior to
Spin-off
Foreign
Currency
Organic
Growth
Growth Rates
Medical Sales
Cardio & Vascular 10 % — — 10 %
Cardiac & Neuromodulation(a) (4)% 1% — (3)%
Advanced Surgical, Orthopedics & Portable Medical(b) 7 % — 1% 8 %
Total Medical Sales 4 % — 1% 5 %
Non-Medical Sales (3)% — — (3)%
Total Sales 4 % — 1% 5 %
(a) Cardiac & Neuromodulation sales for 2016 includes $1.2 million relating to Nuvectra prior to its spin-off on March 14, 2016. This amount is excluded from prior year
amounts when calculating organic percentage change.
(b) First quarter 2017 sales were negatively impacted by approximately $1.4 million due to foreign currency exchange rate fluctuations, primarily in our AS&O product line.
33. ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 33
Non-GAAP Reconciliations
Non-GAAP Organic Growth Rate Reconciliation
(a) Represents the impact to our growth rate from our Non-GAAP adjustments. See Tables A and B for further detail on these items.
(b) Represents the impact to our growth rate of the $3.8 million foreign exchange loss increase $(3.1 million net of tax, $0.10 per diluted share) reported in other
(income) loss, net from the first quarter of 2017 compared to the first quarter of 2016.
Three Months Ended 1Q 2017
Growth (Decline) % GAAP
Impact of
Non-GAAP
Adjustments(a)
Impact of
Foreign
Currency
Loss(b)
Organic
Growth
EBITDA 32 % (34)% 6% 4%
Net Income (Loss) (66)% 65 % 27% 26%
Diluted EPS (66)% 64 % 26% 24%
34. Non-GAAP Reconciliations
2017 Full-Year Outlook
ITGR: 1Q17 Earnings Conference Call / May 8, 2017 / Page 34
$( in millions, except per share amounts)
Except as described below, further
reconciliations by line item to the closest
corresponding GAAP financial measures for
Adjusted Basis Earnings per Diluted Share,
included in our “Business Outlook” above,
are not available without unreasonable
efforts on a forward-looking basis due to the
high variability, complexity and visibility of the
charges excluded from this non-GAAP
financial measure.
Adjusted EPS for 2017 is expected to consist
of GAAP Net Income and EPS, excluding
items such as intangible amortization, IP
related litigation costs, and consolidation,
acquisition, integration, and asset
disposition/write-down charges totaling
approximately $77 million. The after-tax
impact of these items is estimated to be
approximately $53 million, or approximately
$1.67 per diluted share.
As Reported Growth Adjusted Basis Growth
Revenue $1,390 to $1,430 0% to 3% $1,390 to $1,430 0% to 3%
Earnings per Diluted Share $1.03 to $1.43 favorable $2.70 to $3.10 1% to 16%
Cash Flow from Operations ~$150 ~43% -- --
GAAP Non-GAAP
(in millions, except effective tax rate):
2017 Outlook 2016 Actual
Capital expenditures $50 - $60 $59
Depreciation and amortization $95 - $100 $91
Stock-based compensation ~$13 $8
Working capital decrease $10 - $20 $29
Other operating expense $25 - $30 $62
Adjusted effective tax rate ~25% 23%
Cash Taxes ~$10 ~$7
Supplemental Financial Items
Affecting Cash Flow
