 PLANO, Texas, July 30, 2020 GLOBE NEWSWIRE -- Integer Holdings Corporation NYSE:ITGR, a leading medical device outsource manufacturer, today announced results for the three months ended July 3, 2020. Unless otherwise stated, all results and comparisons are from continuing operations. Leading through the new normal of COVID-19 COVID-19 safety measures are in place for Integer associates, who continue to deliver critical products that customers and patients rely on every day. Integer is treating the current environment as the new normal by increasing its agility to respond to changing customer demand and adjusting costs related to the expected temporary volume decline. Integer continues to execute its operational strategic imperatives to create long-term value. Integer is positioned to continue making strategic investments in capabilities and potential bolt-on acquisitions with ample liquidity and the recent bank covenant amendment.Second Quarter 2020 Highlights compared to Second Quarter 2019 Sales declined 74 million to 240 million, a decrease of 24. The COVID-19 driven sales decline of 24 was better than the estimated industry decline, as expected. GAAP income declined 28 million to 0.4 million, a decrease of 99. Non-GAAP adjusted income declined 30 million to 10 million, a decrease of 74. Income declined as variable costs were managed to match lower volumes and infrastructure maintained to support the return of sales post-COVID-19 and continue executing our strategy. Adjusted EBITDA declined 42 million to 33 million, a decrease of 56. GAAP diluted EPS declined 0.84 per share to 0.01 per share, a decrease of 99. Non-GAAP adjusted diluted EPS decreased 0.91 per share to 0.32 per share, a decrease of 74. Net total debt decreased 33 million from the end of the first quarter 2020 to 770 million. Early in the third quarter, the United States Court of Appeals affirmed the 27 million judgment in Integers favor in the patent infringement dispute with its competitor.I want to recognize the sacrifice our associates have made during the pandemic to continue delivering the products our customers and patients need, said Joseph Dziedzic, Integers president and chief executive officer. We have implemented the necessary measures to manage in the new normal while continuing to execute our strategy. Our financial strength, ample liquidity and improved bank covenant cushion, positions us to continue making strategic investments to earn the valuation premium we expect in the long term.Discussion of Product Line Second Quarter 2020 Sales compared to Second Quarter 2019 Cardio Vascular sales decreased 14. Sales were negatively impacted by the COVID-19 pandemic and a blend of our customers responses across nearly all CV markets, though structural heart continued to grow due to development programs. Cardiac Neuromodulation sales decreased 37. CRM and Neuromodulation declined commensurate with the market impact and a blend of our customers responses. Additionally, the Nuvectra bankruptcy created a 7 million headwind. Advanced Surgical, Orthopedics Portable Medical includes sales to the acquirer of our ASO product line, Viant, under supply agreements entered into as part of the divestiture. Sales declined 6 driven by COVID-19 impact and a blend of our customers responses, partially offset by increased demand for ventilator and patient monitoring components. Electrochem sales declined 48 driven by a severe decline in the energy market and demand fall-out from the COVID-19 pandemic.Summary of Financial and Product Line Results from Continuing Operationsdollars in thousands, except per share dataThree Months Ended GAAPJuly 3, 2020 June 28, 2019 Change Organic Changea Medical Sales Cardio Vascular129,084 150,397 14.2 15.2 Cardiac Neuromodulation71,675 114,488 37.4 37.4 Advanced Surgical, Orthopedics Portable Medical30,625 32,646 6.2 6.1 Total Medical Sales231,384 297,531 22.2 22.8 Non-Medical Sales8,731 16,663 47.6 47.6 Total Sales240,115 314,194 23.6 24.1 Income from continuing operations389 28,222 98.6 75.5 Diluted EPS from continuing operations0.01 0.85 98.8 75.6 Six Months Ended GAAPJuly 3, 2020 June 28, 2019 Change Organic Changea Medical Sales Cardio Vascular308,289 302,971 1.8 0.9 Cardiac Neuromodulation179,495 231,399 22.4 22.4 Advanced Surgical, Orthopedics Portable Medical61,862 64,234 3.7 3.6 Total Medical Sales549,646 598,604 8.2 8.6 Non-Medical Sales18,895 30,266 37.6 37.6 Total Sales568,541 628,870 9.6 10.0 Income from continuing operations31,489 49,588 36.5 31.1 Diluted EPS from continuing operations0.95 1.50 36.7 31.4 a Organic Change is a Non-GAAP measure. Please see Notes Regarding Non-GAAP Financial Information for additional information regarding our use of non-GAAP financial measures and refer to Table C and Table D at the end of this release for a reconciliation of these amounts. Three Months Ended Non-GAAPaJuly 3, 2020 June 28, 2019 Change Organic Changeb Adjusted EBITDA from continuing operations33,181 75,393 56.0 56.8 Adjusted income from continuing operations10,485 40,632 74.2 75.5 Adjusted diluted EPS from continuing operations0.32 1.23 74.0 75.6 Six Months Ended Non-GAAPaJuly 3, 2020 June 28, 2019 YTD Change Organic Changeb Adjusted EBITDA from continuing operations103,872 141,053 26.4 27.7 Adjusted income from continuing operations51,769 73,472 29.5 31.1 Adjusted diluted EPS from continuing operations1.56 2.23 30.0 31.4 a Refer to Tables A and B at the end of this release for reconciliations of adjusted amounts to the closest corresponding GAAP financial measures.b Organic Change for Adjusted EBITDA from continuing operations, Adjusted income from continuing operations, and Adjusted diluted EPS from continuing operations are Non-GAAP measures. Please see Notes Regarding Non-GAAP Financial Information for additional information regarding our use of non-GAAP financial measures and refer to Table D at the end of this release for a reconciliation of these amounts.Conference Call Information The Company will host a conference call on Thursday, July 30, 2020, at 9:00 a.m. EDT 8:00 a.m. CDT to discuss these results. The scheduled conference call will be webcast live and is accessible through our website at investor.integer.net or by dialing 833 714-0898 U.S. or 778 560-2691 outside U.S. and the conference ID is 1449653. The call will be archived on the Companys website. An earnings call slide presentation containing supplemental information about the Companys results will be posted to our website at investor.integer.net prior to the conference call and will be referenced during the conference call.About Integer Integer Holdings Corporation NYSE: ITGR is one of the largest medical device outsource MDO manufacturers in the world serving the cardiac, neuromodulation, vascular, portable medical and orthopedics markets. The Company provides innovative, high-quality medical technologies that enhance the lives of patients worldwide. In addition, the Company develops batteries for high-end niche applications in energy, military, and environmental markets. The Companys brands include Greatbatch Medical, Lake Region MedicalTM and Electrochem. Additional information is available at Information Tony Borowicz SVP, Strategy, Business Development Investor Relations 716.759.5809 Regarding Non-GAAP Financial Information In addition to our results reported in accordance with generally accepted accounting principles GAAP, we provide adjusted income, adjusted diluted EPS, earnings before interest, taxes, depreciation and amortization EBITDA, adjusted EBITDA, adjusted EBITDA margin, and organic change rates, all from continuing operations. Adjusted income and adjusted diluted EPS from continuing operations consist of GAAP amounts adjusted for the following to the extent occurring during the period: i acquisition and integration related expenses, including fair value adjustments to contingent consideration resulting from acquisitions, ii amortization of intangible assets, iii facility consolidation, optimization, manufacturing transfer and system integration charges, iv asset write-down and disposition charges, v charges in connection with corporate realignments or a reduction in force, vi certain legal expenses, charges and gains, vii unusual or infrequently occurring items, viii gain loss on equity investments, ix extinguishment of debt charges, x the income tax provision benefit related to these adjustments and xi certain tax items that are outside the normal provision for the period. Adjusted diluted EPS from continuing operations is calculated by dividing adjusted income from continuing operations by diluted weighted average shares outstanding. EBITDA from continuing operations is calculated by adding back interest expense, GAAP provision benefit for income taxes, depreciation and amortization expense, to income from continuing operations, which is the most directly comparable GAAP measure. Adjusted EBITDA from continuing operations consists of EBITDA from continuing operations plus GAAP stock-based compensation and the same adjustments as listed above except for items ii, ix, x and xi.Adjusted EBITDA margin is adjusted EBITDA as a percentage of sales, all from continuing operations. 