INTEGER HOLDINGS CORP VADOVYBĖS FINANSINĖS BŪKLĖS BEI OPERACIJŲ REZULTATŲ APTARIMAS IR ANALIZĖ (10-Q forma)

INTEGER HOLDINGS CORP VADOVYBĖS FINANSINĖS BŪKLĖS BEI OPERACIJŲ REZULTATŲ APTARIMAS IR ANALIZĖ (10-Q forma)
This Quarterly Report on Form 10-Q should be read in conjunction with the
disclosures included in our Annual Report on Form 10-K for the year ended
December 31, 2021. In addition, please read this section in conjunction with our
Condensed Consolidated Financial Statements and Notes to Condensed Consolidated
Financial Statements contained herein.

Forward-Looking Statements
Some of the statements contained in this Form 10-Q and other written and oral
statements made from time to time by us and our representatives are not
statements of historical or current fact. As such, they are "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). We have based these forward-looking statements on our current
expectations, and these statements are subject to known and unknown risks,
uncertainties and assumptions. Forward-looking statements include statements
relating to:

•recovery from the COVID-19 global pandemic;
•future development and expected growth of our business and industry, including
expansion of our manufacturing capacity;
•our ability to execute our business model and our business strategy, including
completion and integration of current or future acquisition targets;
•having available sufficient cash and borrowing capacity to meet working
capital, debt service and capital expenditure requirements for the next twelve
months; and
•projected capital spending.

You can identify forward-looking statements by terminology such as "may,"
"will," "should," "could," "expects," "intends," "plans," "anticipates,"
"believes," "estimates," "predicts," "potential," "projects" or "continue" or
variations or the negative of these terms or other comparable terminology. These
statements are only predictions. Actual events or results may differ materially
from those stated or implied by these forward-looking statements. In evaluating
these statements and our prospects, you should carefully consider the factors
set forth below. All forward-looking statements attributable to us or persons
acting on our behalf are expressly qualified in their entirety by these
cautionary factors and to others contained throughout this Form 10-Q.

Although it is not possible to create a comprehensive list of all factors that
may cause actual results to differ from the results expressed or implied by our
forward-looking statements or that may affect our future results, some of these
factors and other risks and uncertainties that arise from time to time are
described in Item 1A "Risk Factors" of our Annual Report on Form 10-K and in
other periodic filings with the SEC and include the following:

•operational risks, such as the duration, scope and impact of the COVID-19
pandemic, including the evolving health, economic, social and governmental
environments and the effect of the pandemic on our associates, suppliers and
customers as well as the global economy; our dependence upon a limited number of
customers; pricing pressures that we face from customers; our reliance on third
party suppliers for raw materials, key products and subcomponents; the potential
for harm to our reputation caused by quality problems related to our products;
the dependence of our energy market-related revenues on the conditions in the
oil and natural gas industry; interruptions in our manufacturing operations; our
dependence upon our information technology systems and our ability to prevent
cyber-attacks and other failures; our dependence upon our senior management team
and technical personnel; and global climate change and the emphasis on ESG
matters by various stakeholders;

•strategic risks, such as the intense competition we face and our ability to
successfully market our products; our ability to respond to changes in
technology; our ability to develop new products and expand into new geographic
and product markets; and our ability to successfully identify, make and
integrate acquisitions to expand and develop our business in accordance with
expectations;

•financial risks, such as our significant amount of outstanding indebtedness and
our ability to remain in compliance with financial and other covenants under our
senior secured credit facilities; economic and credit market uncertainties that
could interrupt our access to capital markets, borrowings or financial
transactions; financial and market risks related to our international operations
and sales; our complex international tax profile; and our ability to realize the
full value of our intangible assets; and

•legal and compliance risks, such as regulatory issues resulting from product
complaints, recalls or regulatory audits; the potential of becoming subject to
product liability or intellectual property claims; our ability to protect our
intellectual property and proprietary rights; our ability and the cost to comply
with environmental regulations; our ability to comply with customer-driven
policies and third party standards or certification requirements; our ability to
obtain necessary licenses for new technologies; legal and regulatory risks from
our international operations; and the fact that the healthcare industry is
highly regulated and subject to various regulatory changes; and

• kitos kartkartėmis iškylančios rizikos ir neapibrėžtumo.

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Turinys

                          INTEGER HOLDINGS CORPORATION
                      MANAGEMENT'S DISCUSSION AND ANALYSIS

Išskyrus atvejus, kai to reikalaujama pagal galiojančius įstatymus, Bendrovė neprisiima jokios pareigos atnaujinti perspektyvinius teiginius šioje 10-Q formoje, neatsižvelgiant į tai, ar jie atspindi pasikeitusias prielaidas, nenumatytų įvykių atsiradimą ar būsimų veiklos rezultatų, finansinių sąlygų ar perspektyvų pokyčius, ar kitaip.

Šioje 10-Q formoje nuorodos į „Sveikasis skaičius“, „mes“, „mes“, „mūsų“ ir „Įmonė“ reiškia Integer Holdings Corporation ir jos dukterinės įmonės, nebent kontekstas rodo kitaip.

Mūsų verslas


Integer Holdings Corporation is one of the largest medical device outsource
("MDO") manufacturers in the world serving the cardiac, neuromodulation,
vascular, orthopedics, advanced surgical and portable medical markets. We also
develop batteries for high-end niche applications in the non-medical energy,
military, and environmental markets. Our vision is to enhance the lives of
patients worldwide by being our customers' partner of choice for innovative
technologies and services.

We organize our business into two reportable segments, Medical and Non-Medical,
and derive our revenues from four principal product lines. The Medical segment
includes the Cardio & Vascular, Cardiac & Neuromodulation and Advanced Surgical,
Orthopedics & Portable Medical product lines and the Non-Medical segment
comprises the Electrochem product line. For more information on our segments,
please refer to Note 14 "Segment Information" of the Notes to Condensed
Consolidated Financial Statements contained in Item 1 of this report.

Pirmasis 2022 m. ketvirtis baigėsi balandžio 1 d ir sudarė 91 diena, o pirmasis 2021 m. ketvirtis baigėsi balandžio 2 d ir sudarė 92 dienas.

Pasaulinių įvykių įtaka


Beginning in early March 2020, the global spread of the novel coronavirus
("COVID-19") created significant uncertainty and worldwide economic disruption.
Specific impacts to our business include labor shortages, disruptions in the
supply chain, delayed or reduced customer orders and sales, restrictions on
associates' ability to travel or work, and delays in shipments to and from
certain countries. We are uncertain of the future impact of the ongoing COVID-19
pandemic or recovery of prior deterioration in economic conditions to our sales
channels, supply chain, manufacturing, and distribution. As pandemic-related
events continue to evolve, additional impacts may arise that we are not aware of
currently. Additionally, the current conflict between Russia and Ukraine and the
related sanctions and other penalties imposed by countries across the globe
against Russia are creating substantial uncertainty in the global economy. While
we do not have operations in Russia or Ukraine and do not have significant
direct exposure to customers and vendors in those countries, we are unable to
predict the impact that these actions will have on the global economy or on our
financial condition, results of operations, and cash flows.

Verslo įsigijimai


On December 1, 2021, we acquired 100% of the outstanding equity interests of
Oscor Inc., Oscor Caribe, LLC and Oscor Europe GmbH (collectively "Oscor"),
privately-held companies with operations in Florida, the Dominican Republic and
Germany that design, develop, manufacture and market a comprehensive portfolio
of highly specialized medical devices, venous access systems and diagnostic
catheters and implantable devices. Refer to Note 2 "Business Acquisitions" of
the Notes to Condensed Consolidated Financial Statements contained in Item 1 of
this report for additional information about this acquisition.

Subsequent to the end of the first quarter, on April 6, 2022, we acquired
Connemara Biomedical Holdings Teoranta, including its operating subsidiaries
Aran Biomedical and Proxy Biomedical (collectively "Aran"). A recognized leader
in proprietary medical textiles, high precision biomaterial coverings and
coatings as well as advanced metal and polymer braiding, Aran delivers
development and manufacturing solutions for implantable medical devices.
Consistent with our strategy, the combination with Aran further increases our
ability to offer complete solutions for complex delivery and therapeutic devices
in high growth cardiovascular markets such as structural heart, neurovascular,
peripheral vascular, and endovascular as well as general surgery. Given the
April 6, 2022 effective date of the Aran Acquisition, Aran results are not
included in this MD&A and the disclosures included herein.

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                          INTEGER HOLDINGS CORPORATION
                      MANAGEMENT'S DISCUSSION AND ANALYSIS

Produktų linijos pardavimų pertvarkymas


We have communicated to certain customers our intent to exit certain markets we
serve in the Advanced Surgical, Orthopedics & Portable Medical product line. We
are working closely with these customers to support the transition of these
products to other suppliers. Due to quality and regulatory requirements, we
expect it will take three to four years to complete this transition and see the
corresponding decline in sales. In order to align with the planned exit of those
markets and better align with our end markets and product line strategies,
product line sales within the Medical segment have been recast to reflect the
reclassification of certain products from the historical product lines to the
product lines associated with those revenues that will be utilized for future
revenue reporting. We believe the revised presentation will provide improved
reporting and better transparency into the operational results of our business
and markets. Prior period amounts have been reclassified to conform to the new
product line sales reporting presentation. For the three months ended April 2,
2021, Cardio & Vascular sales of $8.0 million and Advanced Surgical, Orthopedics
& Portable Medical sales of $5.3 million were reclassified to the Cardiac Rhythm
Management & Neuromodulation product line.

Finansinė apžvalga

2022 m. pirmojo ketvirčio grynosios pajamos buvo 11,4 milijono doleriųarba 0,34 USD vienai praskiestai akcijai, palyginti su 21,5 milijono doleriųarba 0,65 USD 2021 m. pirmąjį ketvirtį, tenkanti vienai sumažintai akcijai. Šie skirtumai pirmiausia atsiranda dėl šių priežasčių:


•Sales for the first quarter of 2022 increased $20.4 million when compared to
the same period in 2021. During the first quarter of 2022 we continued to see
the demand for many of our products recover from the impacts of the COVID-19
pandemic.

• 2022 m. pirmojo ketvirčio bendrasis pelnas sumažėjo 3,0 milijono doleriųvisų pirma dėl padidėjusių pardavimo sąnaudų dėl darbo ir pasiūlos apribojimų, kuriuos iš dalies kompensuoja didesnė pardavimo apimtis.


•Operating expenses for the first quarter of 2022 increased $9.1 million when
compared to the same period in 2021, primarily due to higher labor costs and
restructuring and other charges.

• 2022 m. pirmojo ketvirčio palūkanų sąnaudos sumažėjo 2,6 milijono doleriųpalyginti su tuo pačiu 2021 m. laikotarpiu, visų pirma dėl mažesnių palūkanų normų ir su skolomis susijusių mokesčių.


•During the first quarter of 2022, we recognized a loss on equity investments of
$2.4 million, compared to a loss of $1.3 million for the first quarter of 2021.
Gains and losses on equity investments are generally unpredictable in nature.

• Kiti (pajamų) nuostoliai, grynasis 2022 m. pirmąjį ketvirtį buvo nuostolis 0,2 milijono doleriųpalyginti su pajamomis 0,2 milijono dolerių 2021 m. pirmąjį ketvirtį, visų pirma dėl užsienio valiutos pelno ir nuostolių svyravimų atitinkamais laikotarpiais.


•We recorded provisions for income taxes for the first quarter of 2022 of $2.6
million, compared with provisions for income taxes of $3.5 million for the first
quarter of 2021. The change in income tax expense was primarily due to relative
changes in pre-tax income and the impact of discrete tax items.

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                          INTEGER HOLDINGS CORPORATION
                      MANAGEMENT'S DISCUSSION AND ANALYSIS

Mūsų finansiniai rezultatai


The following table presents selected financial information derived from our
Condensed Consolidated Financial Statements, contained in Item 1 of this report,
for the periods presented (dollars in thousands, except per share).

                                                            Three Months Ended
                                                        April 1,           April 2,                    Change
                                                          2022               2021                $                 %
Medical Sales:
Cardio & Vascular                                       159,037          $ 141,206          $  17,831             12.6  %
Cardiac Rhythm Management & Neuromodulation             123,324            121,703              1,621              1.3  %
Advanced Surgical, Orthopedics & Portable Medical        19,666             20,056               (390)            (1.9) %

Total Medical Sales                                     302,027            282,965             19,062              6.7  %
Non-Medical                                               8,885              7,502              1,383             18.4  %
Total sales                                             310,912            290,467             20,445              7.0  %
Cost of sales                                           229,437            205,981             23,456             11.4  %
Gross profit                                             81,475             84,486             (3,011)            (3.6) %

Bendrasis pelnas, išreikštas pardavimo procentais („Bendroji marža“) 26,2%

   29.1  %
Operating expenses:
Selling, general and administrative ("SG&A")             39,560             35,502              4,058             11.4  %
                                 SG&A as a % of sales      12.7  %            12.2  %
Research, development and engineering ("RD&E")           16,083             13,461              2,622             19.5  %
                                 RD&E as a % of sales       5.2  %             4.6  %
Restructuring and other charges                           3,335                915              2,420              NM
Total operating expenses                                 58,978             49,878              9,100             18.2  %
Operating income                                         22,497             34,608            (12,111)           (35.0) %
                     Operating income as a % of sales       7.2  %            11.9  %
Interest expense                                          5,968              8,532             (2,564)           (30.1) %
Loss on equity investments                                2,404              1,335              1,069             80.1  %
Other (income) loss, net                                    177               (237)               414              NM
Income before taxes                                      13,948             24,978            (11,030)           (44.2) %
Provision for income taxes                                2,581              3,458               (877)           (25.4) %
                                   Effective tax rate      18.5  %            13.8  %
Net income                                            $  11,367          $  21,520          $ (10,153)           (47.2) %
                           Net income as a % of sales       3.7  %             7.4  %
Diluted earnings per share                            $    0.34          $    0.65          $   (0.31)           (47.7) %


__________

NM Apskaičiuota suma nėra prasminga

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                          INTEGER HOLDINGS CORPORATION
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
Product Line Sales

For the first quarter of 2022, Cardio & Vascular ("C&V") sales increased $17.8
million, or 13%, versus the comparable 2021 period. The increase in C&V sales
for the first quarter of 2022 was driven by strong demand in the neurovascular
market and structural heart product development revenue, despite higher labor
absenteeism in January 2022 and supply chain constraints. During the first
quarter of 2022, price changes increased C&V sales by $1.0 million in comparison
to the 2021 period. Foreign currency exchange rate fluctuations decreased C&V
sales for the first quarter of 2022 by $1.0 million in comparison to the 2021
period, primarily due to U.S. dollar fluctuations relative to the Euro.

Pirmąjį 2022 m. ketvirtį širdies ritmo valdymo ir neuromoduliacijos (CRM & N) pardavimai išaugo 1,6 milijono doleriųarba 1 proc., palyginti su panašiu 2021 m. laikotarpiu, nes didesnis tiesioginis nedarbingumas 2022 m. sausio mėn ir tiekimo grandinės apribojimai paveikė augimą tiek širdies ritmo valdymo, tiek neuromoduliacijos rinkose. Per pirmąjį 2022 m. ketvirtį kainų sumažinimas sumažino CRM & N pardavimą 0,8 milijono dolerių palyginti su 2021 m. Užsienio valiutos kurso svyravimai neturėjo esminės įtakos CRM & N pardavimams 2022 m. pirmąjį ketvirtį, palyginti su 2021 m.


In addition to Portable Medical sales, Advanced Surgical, Orthopedic & Portable
Medical ("AS&O") includes sales to the acquirer of our divested Advanced
Surgical, Orthopedic product line. For the first quarter of 2022, AS&O sales
decreased $0.4 million, or 2% versus the comparable 2021 period, driven by a
reduction in demand for COVID-related ventilator and patient monitoring
components. Price changes and foreign currency exchange rate fluctuations did
not have a material impact on AS&O sales during the first quarter of 2022 in
comparison to the 2021 period.

For the first quarter of 2022, Non-Medical sales increased $1.4 million, or 18%,
versus the comparable 2021 period, despite negative impacts from supply chain
constraints as the energy market continues to recover. Price reductions and
foreign currency exchange rate fluctuations did not have a material impact on
Non-Medical sales during the first quarter of 2022 in comparison to the 2021
period.

Gross Profit

                            Three Months Ended
                                             April 1,      April 2,
                                               2022          2021
Gross profit                                 81,475        84,486
Gross margin                                   26.2  %       29.1  %


Gross margin for the first quarter of 2022 decreased 290 basis points compared
to the prior year period, primarily driven by the direct labor headwinds caused
by the global supply chain challenges, labor markets and high January 2022
absenteeism caused by COVID-19. The increased spend in direct labor was caused
by higher-than-normal overtime, inefficiencies from delayed material, as well as
high training costs and the incremental salaries for new associates we are
hiring to support growth through the rest of 2022.
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                          INTEGER HOLDINGS CORPORATION
                      MANAGEMENT'S DISCUSSION AND ANALYSIS

SG&A Expenses

PBA sąnaudų pokyčiai, palyginti su praėjusiais metais, atsirado dėl šių priežasčių (tūkstančiais):


                                 Change From Prior Year Three Months
Compensation and benefits(a)    $                             1,899
Amortization expense(b)                                         777
Contract services(c)                                            422

All other SG&A(d)                                               960
Net increase in SG&A expenses   $                             4,058


__________

a) 2022 m. pirmąjį ketvirtį kompensacijos ir išmokos padidėjo, palyginti su ankstesnių metų laikotarpiu, visų pirma dėl padidėjusio darbuotojų skaičiaus įsigijus Oscor.


(b)Amortization expense increased during the first quarter of 2022 compared to
the prior year period due to amortization of intangible assets from the Oscor
Acquisition.

(c)Contract services expense increased during the first quarter of 2022 compared
to the prior year period primarily due to higher software costs from information
technology enhancements.

(d)The net increase in all other SG&A for the first quarter of 2022 compared to
the same period of 2021 is primarily attributable to higher professional fees
and travel expenses.

RD&E

RD&E expense for the first quarter of 2022 was $16.1 million, compared to $13.5
million for the first quarter of 2021.
The increase in RD&E expense during the first quarter of 2022 compared to the
first quarter of 2021 was primarily due to investments made to support long-term
revenue growth, the timing of program milestone achievements for customer funded
programs, and incremental expense due to the Oscor Acquisition. RD&E expenses
are influenced by the number and timing of in-process projects and labor hours
and other costs associated with these projects. Our research and development
initiatives continue to emphasize new product development, product improvements,
and the development of new technological platform innovations.
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                          INTEGER HOLDINGS CORPORATION
                      MANAGEMENT'S DISCUSSION AND ANALYSIS

Restruktūrizavimo ir kiti mokesčiai


We continuously evaluate our business and identify opportunities to realign
resources to better serve our customers and markets, improve operational
efficiency and capabilities, and lower operating costs. To realize the benefits
associated with these opportunities, we undertake restructuring-type activities
to transform out business. We incur costs associated with these activities,
which primarily include exit and disposal costs and other costs directly related
to the restructuring initiative. Restructuring charges include exit and disposal
costs from these activities and restructuring-related charges are costs directly
related to the restructuring initiatives. In addition, from time to time, the
Company incurs costs associated with acquiring and integrating businesses, and
certain other general expenses, including asset impairments.

Restruktūrizavimo ir kitus mokesčius sudaro (tūkst.):

                                                  Three Months Ended
                                                                April 1,      April 2,
                                                                  2022          2021
Restructuring charges(a)                                       $  1,103      $     654
Acquisition and integration costs(b)                              1,936     

84

Other general expenses(c)                                           296     

177

Total restructuring and other charges                          $  3,335     

915 USD

__________

a) 2022 m. pirmojo ketvirčio restruktūrizavimo mokesčius pirmiausia sudaro išeitinės išmokos, susijusios su mūsų veiklos tobulumo projektais.


(b)Amounts include expenses related to the purchase of certain assets and
liabilities from business acquisitions. Acquisition and integration costs for
the first quarter of 2022 include costs associated with the acquisition of Oscor
and due diligence cost associated with the acquisition of Aran.

(c) Sumos apima išlaidas, susijusias su kitomis pirmiau neaprašytomis iniciatyvomis, kurios visų pirma yra susijusios su integravimu ir veiklos iniciatyvomis, kuriomis siekiama sumažinti būsimas išlaidas ir padidinti efektyvumą.

Daugiau informacijos apie šias iniciatyvas rasite šios ataskaitos 1 punkto sutrumpintų konsoliduotų finansinių ataskaitų pastabų 8 pastaboje „Restruktūrizavimas ir kiti mokesčiai“.

Palūkanų išlaidos


Information relating to our interest expense is as follows (dollars in
thousands):
                                                               Three Months Ended
                                                          April 1,             April 2,
                                                            2022                 2021               Change
Contractual interest expense                          $    4,647             $    6,105          $  (1,458)
Loss on interest rate swap                                   768                  1,034               (266)
Amortization of deferred debt issuance costs and
original issue discount                                      481                  1,026               (545)
Losses from extinguishment of debt                             -                    346               (346)

Other interest expense                                        72                     21                 51
Total interest expense                                $    5,968             $    8,532          $  (2,564)


Interest expense for the first quarter of 2022 decreased $2.6 million compared
to the same period in 2021, primarily due to lower contractual interest rate
expense and debt-related charges.

The decrease in contractual interest expense was due to lower interest rates,
partially offset by higher outstanding debt balances. The lower interest rates
were the result of beneficial changes in our Senior Secured Credit Facilities
agreement. During the third and fourth quarters of 2021 we entered into and
subsequently amended a new Senior Secured Credit Facilities agreement, which
among other changes, lowered the spreads on our Revolving Credit Facility and
TLA Facility by 75 basis points and the LIBOR floor on our TLB facility by 50
basis points. The higher outstanding debt balance is the result of borrowings to
fund the Oscor acquisition.

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Turinys

                          INTEGER HOLDINGS CORPORATION
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
Debt related charges included in interest expense include the amortization and
write-off (losses from extinguishment of debt) of deferred debt issuance costs
and original issue discount. Amortization of deferred debt issuance costs and
original issue discount decreased as a result of the the extended maturity under
the new Senior Secured Credit Facilities. We had no losses from extinguishment
of debt during 2022. The losses from extinguishment of debt during the first
quarter of 2021 were related to prepayments of portions of the Term Loan B
facility under the previous credit agreement.

Daugiau informacijos apie mūsų skolą rasite šios ataskaitos 1 punkte esančios sutrumpintų konsoliduotų finansinių ataskaitų aiškinamajame rašte 6 pastaboje „Skola“.


As of April 1, 2022 and December 31, 2021, approximately 18% of our principal
amount of debt has been converted to fixed-rate borrowings with interest rate
swaps.  We enter into interest rate swap agreements in order to reduce our
exposure to fluctuations in the LIBOR rate. See Note 13 "Financial Instruments
and Fair Value Measurements" of the Notes to the Condensed Consolidated
Financial Statements contained in Item 1 of this report for additional
information pertaining to our interest rate swap agreements.

Nuostolis iš investicijų į akcijas


During the first quarter of 2022, we recognized a loss on equity investments of
$2.4 million, compared to a loss of $1.3 million during the first quarter of
2021. Gains and losses on equity investments are generally unpredictable in
nature. The amounts for both 2022 and 2021 relate to our share of equity method
investee losses including unrealized depreciation of the underlying interests of
the investee. As of April 1, 2022 and December 31, 2021, the carrying value of
our equity investments was $19.4 million and $21.8 million, respectively. See
Note 13 "Financial Instruments and Fair Value Measurements" of the Notes to the
Condensed Consolidated Financial Statements contained in Item 1 of this report
for further details regarding these investments.

Kiti (pajamų) nuostoliai, grynasis


Other (income) loss, net for the first quarter of 2022 were losses of $0.2
million, compared income of $0.2 million for the first quarter of 2021. Other
(income) loss, net primarily includes gains/losses from the impact of exchange
rates on transactions denominated in foreign currencies. Our foreign currency
transaction gains/losses are based primarily on fluctuations of the U.S. dollar
relative to the Euro, Mexican peso, Uruguayan peso, Malaysian ringgits,
Dominican peso, or Israeli shekel.

The impact of exchange rates on transactions denominated in foreign currencies
included in Other (income) loss, net for the first quarter of 2022 were net
losses of $0.1 million, compared to net gains of $0.1 million for the first
quarter of 2021. We continually monitor our foreign currency exposures and seek
to take steps to mitigate these risks. However, fluctuations in exchange rates
could have a significant impact, positive or negative, on our financial results
in the future.
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                          INTEGER HOLDINGS CORPORATION
                      MANAGEMENT'S DISCUSSION AND ANALYSIS

Atidėjinys pajamų mokesčiams


We recognized income tax expense of $2.6 million for the first quarter of 2022
on $13.9 million of income before taxes (effective tax rate of 18.5%), compared
to an income tax expense of $3.5 million on $25.0 million of income before taxes
(effective tax rate of 13.8%) for the same period of 2021. Income tax expense
for the first quarter of 2022 included $0.5 million of discrete tax expense.

There is a potential for volatility in our effective tax rate due to several
factors including changes in the mix of pre-tax income and the jurisdictions to
which it relates, changes in tax laws and foreign tax holidays, business
reorganizations, settlements with taxing authorities and foreign currency
fluctuations. We continue to closely monitor developments related to proposed
changes in tax laws and tax rates, including current proposals for U.S. Tax
Reform and a proposed 15% Minimum Global Tax Rate recently announced by the
Organization for Economic Cooperation and Development. We currently have various
tax planning initiatives in place and continuously evaluate planning strategies
aimed at reducing our effective tax rate over the long term. This includes
strategies to realize deferred tax assets that would otherwise expire
unutilized.

Our effective tax rates for 2022 differ from the U.S. federal statutory tax rate
of 21% due principally to the net impact of the Company's earnings outside the
U.S., which are generally taxed at rates that differ from the U.S federal rate,
the GILTI tax, the FDII deduction, the availability of tax credits, and the
recognition of discrete tax items. The discrete tax amounts relate predominately
to excess tax benefits recognized upon vesting of RSUs and/or tax shortfalls
recorded for the forfeiture of certain PRSUs.

Our earnings outside the U.S. are generally taxed at blended rates that are
marginally lower than the U.S. federal rate. The GILTI provisions require us to
include foreign subsidiary earnings in excess of a deemed return on the foreign
subsidiary's tangible assets in our U.S. income tax return. The foreign
jurisdictions in which we operate and where our foreign earnings are primarily
derived, include Switzerland, Mexico, Uruguay, Malaysia and Ireland.

We currently have a tax holiday in Malaysia through April 2023 provided certain
conditions continue to be met. In addition, we acquired manufacturing operations
in the Dominican Republic as part of the Oscor Acquisition, and are operating
under a free trade zone agreement in the Dominican Republic through March 2034.
With the exception of the expiration of these tax holidays, we are not currently
aware of any material trends in these jurisdictions that are likely to impact
our current or future tax expense, our future effective tax rates could be
adversely affected by earnings being lower than anticipated in countries where
we have lower effective tax rates and higher than anticipated in countries where
we have higher effective tax rates, or by changes in tax laws or regulations. We
regularly assess any significant exposure associated with increases in tax rates
in international jurisdictions and adjustments are made as events occur that
warrant adjustment to our tax provisions.

Likvidumas ir kapitalo ištekliai

                             April 1,       December 31,
(dollars in thousands)         2022             2021
Cash and cash equivalents   $  25,668      $      17,885
Working capital             $ 321,708      $     293,353
Current ratio                    2.86               2.84

Pinigai ir pinigų ekvivalentai adresu 2022 m. balandžio 1 d padidėjo 7,8 milijono dolerių
2021 m. gruodžio 31 dvisų pirma dėl pinigų, gautų iš pagrindinės veiklos 18,2 milijono doleriųiš dalies kompensuojamas grynaisiais nekilnojamojo turto, įrangos ir įrengimų pirkimais 10,4 milijono dolerių.


Working capital increased by $28.4 million from December 31, 2021, primarily
from positive working capital fluctuations associated with cash and cash
equivalents, accounts receivable, and inventory aggregating to $41.1 million,
which were partially offset by an increase in accounts payable of $13.2 million.
During the first quarter of 2022, cash and cash equivalents increased mainly
from cash generated from operating activities, accounts receivable increased
mainly from the timing of sales in the quarter, and inventory increased on
higher purchase levels to support sales order volume. Accounts payable increased
mainly from higher sequential inventory purchases and the timing of supplier
payments.

At April 1, 2022, $14.3 million of our cash and cash equivalents were held by
foreign subsidiaries. We intend to limit our distributions from foreign
subsidiaries to previously taxed income or current period earnings. If
distributions are made utilizing current period earnings, we will record foreign
withholding taxes in the period of the distribution.

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