Revenues Increased 14.2% to $252.2 Million
Organic Revenues Increased 5.8%
Reported EPS Increased to $0.52; Adjusted EPS Increased to $0.94
Issues 2015 Full-Year Guidance

PLAINSBORO, N.J., Feb. 24, 2015 (GLOBE NEWSWIRE) -- Integra LifeSciences Holdings Corporation (Nasdaq:IART) today reported its financial results for the fourth quarter ending December 31, 2014. Total revenues for the fourth quarter were $252.2 million, reflecting an increase of $31.4 million, or 14.2%, over the fourth quarter of 2013. Total revenues for the full year of 2014 were $928.3 million, an increase of $92.1 million, or 11.0%, over the full year 2013.

Organic revenues, computed by adjusting GAAP revenues as set forth in the attached reconciliation, increased 5.8% over the fourth quarter 2013, and increased 3.2% over the full year 2013.

"Strength in our worldwide neurosurgery and skin and wound businesses drove organic sales growth to 5.8% in the fourth quarter," said Peter Arduini, Integra's President and Chief Executive Officer. "We are proud of these results, which reflect the progress we have made as a Company against our plans."

The Company reported GAAP net income of $17.2 million, or $0.52 per diluted share, for the fourth quarter of 2014, compared to GAAP net income of $13.8 million, or $0.45 per diluted share, for the fourth quarter of 2013. The Company reported GAAP net income of $34.0 million, or $1.03 per diluted share, for the full year 2014, compared to GAAP net loss of $(21.1) million, or $(0.74) per diluted share in 2013.

Adjusted measures discussed below are computed with the adjustments to GAAP reporting set forth in the attached reconciliation.

Adjusted EBITDA for the fourth quarter of 2014 was $58.2 million, or 23.1% of revenue, an increase from $42.7 million, or 19.3% of revenue, in the fourth quarter of the prior year. Adjusted EBITDA for the full year 2014 was $188.0 million, or 20.3% of revenue, an increase from $132.4 million, or 15.8% of revenue, in the prior year.

Adjusted net income for the fourth quarter of 2014, was $31.3 million, or $0.94 per diluted share, compared to adjusted net income of $25.4 million, or $0.83 per diluted share, in the fourth quarter of 2013. Adjusted net income for the full year 2014, was $97.6 million, or $2.96 per diluted share, compared to $66.5 million, or $2.31 per diluted share in 2013.

Integra generated $20.8 million of cash flows from operations and invested $12.5 million in capital expenditures in the fourth quarter of 2014. For the full year ended December 31, 2014, cash flows from operations totaled $79.5 million and cash invested in capital expenditures was $41.9 million. Adjusted free cash flow conversion for the trailing twelve months ended December 31, 2014 was 38.5% versus 8.1% for the twelve months ended December 31, 2013.

"We look forward to the opportunities that lie ahead in 2015, including new product introductions, ramping up production in our new collagen manufacturing center, publication of the data from our diabetic foot ulcer study, and the sales channel investments we are making in our wound, extremities and international businesses," said Mr. Arduini. "The accomplishments of the last two years have laid the foundation for Integra to achieve our long-term growth and profitability objectives."

Outlook for 2015

The Company expects full year 2015 revenues to be between $960 million and $980 million. The Company expects its GAAP earnings per diluted share for the full year to be between $0.87 and $1.05 and adjusted earnings per diluted share to be between $3.05 and $3.23. This guidance includes the performance of the spine business for the full year.

At current foreign currency exchange rates, the Company expects a negative impact of approximately $25 million on 2015 revenues, and a $0.10 to $0.15 negative impact on adjusted earnings per share, compared to what they would have been at 2014 average rates.

"The spin-off of SeaSpine remains on track to be completed in the second half of 2015," said Glenn Coleman, Chief Financial Officer. "As we move forward with the realignment of our business into two global segments, we expect the simplified, more focused structure to result in faster growth and margin expansion. Overall, our 2015 guidance reflects continued progress toward our long-term growth and profitability targets."

In accordance with our usual practice, expectations for financial performance do not include the impact of acquisitions or other strategic corporate transactions that have not yet closed.

In the future, the Company may record, or expects to record, certain additional revenues, gains, expenses or charges as described in the Discussion of Adjusted Financial Measures below that it will exclude in the calculation of adjusted EBITDA and adjusted earnings per share for historical periods and in providing adjusted earnings per share guidance.

**Integra's management team will reference a presentation during the conference call this morning, which can be found on the Investor section of the website at investor.integralife.com. This presentation will include revenue guidance in both the historic and new global segment structure.

Conference Call

Integra has scheduled a conference call for 8:30 AM ET today, Tuesday, February 24, 2015 to discuss financial results for the fourth quarter and forward-looking financial guidance. The conference call will be hosted by Integra's senior management team and will be open to all listeners. Additional forward-looking information may be discussed in a question and answer session following the call.

Access to the live call is available by dialing 913-981-4904 and using the passcode 6805776. The call can also be accessed through a webcast via a link provided on the Investor Relations homepage of Integra's website at investor.integralife.com. Access to the replay is available through March 14, 2015 by dialing 719-457-0820 and using the passcode 6805776. The webcast will also be archived on the website.

Integra LifeSciences, a world leader in medical technology, is dedicated to limiting uncertainty for surgeons, so they can concentrate on providing the best patient care. Integra offers innovative solutions in orthopedics, neurosurgery, spine, reconstructive and general surgery. For more information, please visit www.integralife.com.

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks, uncertainties and reflect the Company's judgment as of the date of this release. Forward-looking statements include, but are not limited to, statements concerning future financial performance, including projections for revenues, GAAP and adjusted net (loss)/income, GAAP and adjusted (loss)/earnings per diluted share, non-GAAP adjustments such as global enterprise resource planning ("ERP") system implementation charges, certain expenses associated with product recalls, acquisition-related charges, goodwill impairment charges, non-cash amortization of imputed interest for convertible debt, intangible asset amortization, and income tax expense (benefit) related to non-GAAP adjustments. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from predicted or expected results. Such risks and uncertainties include, but are not limited to: the Company's ability to execute its operating plan effectively, the Company's ability to manufacture and ship sufficient quantities of its products to meet its customers' demand; the ability of third-party suppliers to supply us with raw materials and finished products; global macroeconomic conditions; continued weakness in sales outside of the U.S.; the Company's ability to manage its direct sales channels effectively; the Company's ability to maintain relationships with customers of acquired entities; physicians' willingness to adopt and third-party payors' willingness to provide reimbursement for the Company's recently launched and planned products; initiatives launched by the Company's competitors; downward pricing pressures for customers; the Company's ability to secure regulatory approval for products in development; the Company's ability to remediate quality systems violations; fluctuations in hospital spending for capital equipment; the Company's ability to comply with and obtain approvals for products of human origin and comply with recently enacted regulations regarding products containing materials derived from animal sources; difficulties in controlling expenses, including costs to procure and manufacture our products; the impact of changes in management or staff levels; the Company's ability to integrate acquired businesses; the impact of goodwill and intangible asset impairment charges if future operating results of acquired businesses are significantly less than the results anticipated at the time of the acquisitions, the Company's ability to leverage its existing selling organizations and administrative infrastructure; the Company's ability to increase product sales and gross margins, and control non-product costs; the Company's ability to achieve anticipated growth rates, margins and scale and execute its strategy generally, including the anticipated spinoff; the amount and timing of acquisition and integration related costs; the geographic distribution of where the Company generates its taxable income; the effect of legislation effecting healthcare reform in the United States and internationally; fluctuations in foreign currency exchange rates; the amount of our convertible notes and bank borrowings outstanding and other factors influencing liquidity; and the economic, competitive, governmental, technological and other risk factors and uncertainties identified under the heading "Risk Factors" included in Item 1A of Integra's Annual Report on Form 10-K for the year ended December 31, 2014 and information contained in subsequent filings with the Securities and Exchange Commission. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Discussion of Adjusted Financial Measures

In addition to our GAAP results, we provide organic revenues, adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted EBITDA excluding stock-based compensation, adjusted net income and adjusted earnings per diluted share. Organic revenues consist of growth in total revenues excluding the effects of currency exchange rates on the current period's revenues and the contribution of revenues from discontinued products in both the current and prior periods' revenues. The various measures of adjusted EBITDA consist of GAAP net (loss)/income, excluding: (i) depreciation and amortization, (ii) other income (expense), net, (iii) interest income and expense, (iv) income taxes, (v) those operating expenses also excluded from adjusted net income and, as appropriate (vi) stock-based compensation expense. The measure of adjusted net income consists of GAAP net (loss)/income, excluding: (i) manufacturing facility remediation costs; (ii) global ERP implementation charges; (iii) structural optimization charges; (iv) SeaSpine separation-related charges (v) certain employee severance charges; (vi) discontinued product lines charges; (vii) acquisition-related charges; (viii) certain expenses associated with product recalls; (ix) impairment charges; (x) intangible asset amortization expense; (xi) convertible debt non-cash interest; and (xii) income tax impact from adjustments and other items. The adjusted earnings per diluted share measure is calculated by dividing adjusted net income attributable to diluted shares by diluted weighted average shares outstanding. Because the Company reported a GAAP net loss during the full year ended December 31, 2013, the calculation of GAAP diluted weighted average shares outstanding for the full year 2013 period excludes the effects of stock options and unvested restricted stock, as the effect of these equity awards would be anti-dilutive.   The measure of free cash flow consists of GAAP net cash provided by operating activities less purchases of property and equipment. The measure of adjusted free cash flow consists of free cash flow adjusted for certain one-time unusual items. The adjusted free cash flow conversion measure is calculated by dividing (i) free cash flow, or (ii) adjusted free cash flow (as applicable), by (iii) adjusted net income.

Reconciliations of GAAP revenues to organic revenues for the quarter and year ended December 31, 2014 and GAAP net (loss)/income to adjusted EBITDA, adjusted EBITDA excluding stock-based compensation and adjusted net income, and GAAP (losses)/earnings per diluted share to adjusted earnings per diluted share for the quarters and years ended December 31, 2014 and 2013 appear in the financial tables in this release.

The Company believes that the presentation of organic revenues and the various adjusted EBITDA, adjusted net income, adjusted earnings per diluted share, adjusted free cash flow and adjusted free cash flow conversion measures provides important supplemental information to management and investors regarding financial and business trends relating to the Company's financial condition and results of operations. For further information regarding why Integra believes that these non-GAAP financial measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the Company's Current Report on Form 8-K regarding this earnings press release filed today with the Securities and Exchange Commission. This Current Report on Form 8-K is available on the SEC's website at www.sec.gov or on our website at www.integralife.com.

Segment revenues and growth in total revenues excluding the effects of currency exchange rates are as follows:

*The International segment revenues reflect sales that are actively managed by our International division. This does not constitute all recorded sales outside the U.S., as some Instrument sales and private label (included in U.S. Spine & Other) product sales in those regions are managed by their respective U.S. divisions.

Items included in GAAP net income and location where each item is recorded are as follows:

*For the period ending December 31, 2014, "Intangible asset amortization expense" excludes $190 already included in "Impairment charges" above.

a) COGS - Cost of goods sold

b) SG&A - Selling, general and administrative

c) Amort. - Intangible asset amortization

d) Interest Inc (Exp) - Interest income (expense), net

e) Tax - Income tax expense

* For the period ending December 31, 2013, "Depreciation expense" excludes $(413) already included in "Structural optimization charges" above.

a) COGS - Cost of goods sold

b) SG&A - Selling, general and administrative

c) R&D - Research and development

d) Amort. - Intangible asset amortization

e) Interest Inc(Exp) - Interest income (expense), net

f) Tax - Income tax expense

Items included in GAAP net income and location where each item is recorded are as follows:

* For the period ending December 31, 2014, "Intangible asset amortization expense" excludes $790 already included in the "Impairment charges" above.

** For the period ending December 31, 2014, "Stock-based compensation expense" excludes $3.0 million already included in "Certain employee severance charges" above.

a) COGS - Cost of goods sold

b) SG&A - Selling, general and administrative

c) R&D - Research and development

d) Amort. - Intangible asset amortization

e) Interest Inc (Exp) - Interest income (expense), net

f) Tax - Income tax expense

* For the period ending December 31, 2013, "Depreciation expense" excludes $532 already included in "Structural optimization charges" above.

a) COGS - Cost of goods sold

b) SG&A - Selling, general and administrative

c) R&D - Research and development

d) Amort. - Intangible asset amortization

e) Goodwill - Goodwill impairment charge

f) Interest Inc(Exp) - Interest income (expense), net

g) Tax - Income tax expense

* Adjusted net income for quarters and twelve months ended December 31, 2013 and 2014 are reconciled above.

The Company calculates adjusted free cash flow conversion by dividing its adjusted free cash flow by adjusted net income. The Company believes this measure is a useful metric in evaluating the significance of the cash special charges in its adjusted earnings measures.

Items included in GAAP net income guidance and location where each item is expected to be recorded is as follows:

CONTACT: Investor Relations:

         Angela Steinway

         (609) 936-2268

         angela.steinway@integralife.com