LivaNova PLC : 3rd Quarter Results
(Thomson Reuters ONE) -
LONDON, Nov. 02, 2016 (GLOBE NEWSWIRE) -- LivaNova PLC (NASDAQ:LIVN) (LSE:LIVN)
("LivaNova" or the "Company"), a market-leading medical technology and
innovation company, today reported results for the third quarter ended September
30, 2016.
For the third quarter of 2016, worldwide sales were $295 million, an increase of
3.2 percent on a reported basis and an increase of 2.4 percent on a constant-
currency basis(1), as compared to the previous year. On a U.S. Generally
Accepted Accounting Principles (GAAP) basis, third quarter 2016 loss per share
was $0.03. Third quarter 2016 adjusted(2) diluted earnings per share were
$0.78.
"While sales performance was below expectations for the quarter, earnings
results were positive due to significant leverage in the income statement," said
André-Michel Ballester, Chief Executive Officer. "Many of our new products
continue to perform well, including - AspireSR(®) used for VNS Therapy,
Perceval(TM) sutureless heart valves, INSPIRE(TM) oxygenators, KORA 250(TM)
pacemakers and PLATINIUM(TM) defibrillators. However, we have experienced
challenges in Cardiac Surgery, and as a result, we are increasing our focus on
driving merger synergies, implementing restructuring activities, maintaining
disciplined cost controls and reprioritizing internal research and development
spending to focus our efforts on the highest growth drivers. Overall, I am
extremely pleased in our ability to align operating expenses and deliver strong
bottom line performance, while investing in short and long-term growth
opportunities."
Third-Quarter 2016 Results
The following table highlights selected financial results(3) for the third
quarter of 2016 compared to the same period in 2015:
+-----------------+----------------------+---------+----------------------+
| | Three Months Ended | | |
| | September 30, | | |
| +---------+------------+ | Constant Currency % |
|In $ millions | 2016 | 2015 |% Change | Change |
+-----------------+---------+------------+---------+----------------------+
| Cardiopulmonary|$ 114.8 |$ 113.0 | 1.6 % | 0.2 % |
+-----------------+---------+------------+---------+----------------------+
| Heart Valves |$ 33.7 |$ 34.2 | (1.5 %)| (2.4 %) |
+-----------------+---------+------------+---------+----------------------+
|Cardiac Surgery |$ 148.5 |$ 147.2 | 0.9 % | (0.4 %) |
+-----------------+---------+------------+---------+----------------------+
|CRM(4) |$ 56.8 |$ 53.9 | 5.4 % | 3.6 % |
+-----------------+---------+------------+---------+----------------------+
|Neuromodulation |$ 89.5 |$ 84.3 | 6.2 % | 6.8 % |
+-----------------+---------+------------+---------+----------------------+
|Other |$ 0.5 |$ 0.8 | n/a | n/a |
+-----------------+---------+------------+---------+----------------------+
|Total Net Sales |$ 295.3 |$ 286.1 | 3.2 % | 2.4 % |
+-----------------+---------+------------+---------+----------------------+
* Numbers may not add due to rounding. Constant currency % change is
considered a non-GAAP metric.
For discussion purposes, all sales growth rates below reflect comparable,
constant currency growth. The difference between constant currency growth and
reported growth reflects the impact from currency fluctuations in the various
currencies in which we operate.
Three months ended September 30, 2016
For the three business franchises, sales were as follows:
Cardiac Surgery
Cardiac Surgery sales, which include cardiopulmonary products and heart valves,
were $149 million, representing a 0.4 percent decrease versus the comparable
period in 2015. The increase in cardiopulmonary was more than offset by the
decline in heart valves.
Sales in cardiopulmonary products were $115 million, up slightly from the third
quarter of 2015. A decline in the Company's 3T Heater-Cooler devices, as a
result of import restrictions in the U.S. and the timing of heart-lung machine
orders in Europe, were more than offset by several items including strong demand
for oxygenators, particularly in emerging markets as well as Japan and
Australia.
Heart valve sales, including tissue and mechanical heart valves, were $34
million, a decrease of 2.4 percent compared to the same period the previous
year. Strength in Perceval in both the U.S. and Europe was more than offset by
weakness in mechanical valves, primarily in China, and traditional tissue valves
globally.
Cardiac Rhythm Management (CRM)
CRM sales for the period totaled $57 million, an increase of 3.6 percent as
compared to the third quarter of 2015. The increase was primarily due to
positive performance of the Company's newest high-voltage device PLATINIUM and
favorable year-over-year results with its KORA 250 pacemaker.
Neuromodulation
Neuromodulation sales were $90 million in the third quarter, an increase of 6.8
percent over the prior year period, driven primarily by continued adoption of
the Company's newest VNS Therapy device AspireSR and strong new patient growth
in the U.S.
Financial Performance
On a U.S. GAAP basis, third quarter 2016 income from operations was $23 million
compared to $22 million in the second quarter of 2016. Adjusted income from
operations(5) for the third quarter of 2016 was $55 million, an increase of 38
percent as compared to the third quarter of 2015. This is primarily attributed
to a positive mix of sales during the quarter which improved gross margin, sound
cost control, delivery of planned synergies and the impact of previously
announced restructuring efforts.
2016 Projections
The Company is modifying its sales guidance and narrowing the range for earnings
per share guidance for full year 2016.
The Company now expects revenue growth on a constant-currency basis to be in the
1 to 2 percent range, and is narrowing the projected range for adjusted diluted
earnings per share (EPS) to $2.95 to $3.05.
Webcast and Conference Call Instructions
The conference call will be available to interested parties through a live audio
webcast commencing at 8:00 a.m. Central time (9:00 a.m. Eastern time, 1:00 p.m.
UK time) and accessible through the Investor Relations section of the LivaNova
corporate website at www.livanova.com. To listen to the conference call live by
telephone, dial (844) 239-5285 (if dialing from within the U.S.) or (512)
961-6524 (if dialing from outside the U.S.). The conference ID is 87431578.
Within 24 hours of the webcast, a replay will be available under the "Events &
Presentations" section of the Investor Relations portion of the LivaNova
website, where it will be archived and accessible for approximately 12 months.
(1) Constant currency growth measures the change in sales between the current
and prior year periods using average exchange rates in effect during the
applicable prior year period.
(2) Adjusted measures are based on selected non-GAAP operating results and
exclude certain specified items as described later in this press release and the
attached schedules.
(3) See the discussion of "Financial Alignment, Combined Sales & Operating
Results, Business Unit Structure and Constant Currency" below. The sales
results presented are unaudited.
(4) Cardiac Rhythm Management.
(5) Adjusted measures exclude certain specified items as described later in this
press release and the attached schedules. Adjusted measures are based on
selected non-GAAP operating results highlights in the 2015 Annual and Fourth
Quarter Financial Results published on February 24, 2016.
About LivaNova
LivaNova PLC is a global medical technology company formed by the merger of
Sorin S.p.A, a leader in the treatment of cardiovascular diseases, and
Cyberonics Inc., a medical device company with core expertise in
Neuromodulation. LivaNova transforms medical innovation into meaningful
solutions for the benefit of patients, healthcare professionals, and healthcare
systems. The Company employs approximately 4,600 employees worldwide and is
headquartered in London, U.K.
LivaNova is listed on NASDAQ and is admitted to the standard listing segment of
the Official List of the UK's Financial Conduct Authority and to trading on the
London Stock Exchange (LSE) under the ticker symbol "LIVN".
Financial Alignment, Combined Sales & Operating Results, Business Franchise
Structure and Constant Currency
Cyberonics, the predecessor company to LivaNova, previously reported on a 52/53
week fiscal year calendar ending in April. With the formal change in the fiscal
calendar to a fiscal year ended December 31, the historical Neuromodulation
business franchise sales have been aligned to correspond as closely as possible
to calendar quarters.
Although LivaNova was a shell company with no business operations until the
closing date of the merger on October 19, 2015, the sales results disclosed for
periods up to and beyond that date are being provided on a combined basis, a
non-GAAP formulation that combines the results of legacy Sorin and Cyberonics
for the periods completed prior to the merger and periods that include results
both before and after the closing of the merger. The Company believes that
presenting the results of Sorin and Cyberonics in such a manner offers a
meaningful representation to investors of the combined company's sales for these
periods.
Non-GAAP operating results, unaudited, have been included for 2015. These
results have been prepared by management and adjusted for non-GAAP items as if
the merger had occurred on January 1, 2015 but should not be considered as an
alternative to Proforma Income Statements to be provided in accordance with SEC
filings. Certain adjustments to legacy Sorin operating results have occurred in
order to present the results in U.S. dollars and to align these results as
closely as possible to the presentation of LivaNova financial results. Company
management uses these measurements as aids in monitoring the Company's ongoing
financial performance from quarter to quarter and year to year on a regular
basis and for benchmarking against other medical technology companies.
Management believes that the presentation of these results provides a meaningful
representation of the combined company's operating results for the periods
presented.
The sales and operating results for legacy Cyberonics for the quarters ended
March 31, June 30 and September 30 were aligned to provide comparative
information. The actual periods ended on March 27, June 26 and September 25
respectively.
LivaNova (as the successor to Sorin and Cyberonics on a combined basis) operates
under a Business Franchise structure with Cardiac Surgery, CRM and
Neuromodulation accounting for substantially all of the sales during the periods
referred to herein. The combined company also operates a New Ventures group,
dedicated to developing new technologies.
Use of Non-GAAP Financial Measures
In this press release, management has disclosed financial measurements that
present financial information not necessarily in accordance with Generally
Accepted Accounting Principles (GAAP). Company management uses these
measurements as aids in monitoring the Company's ongoing financial performance
from quarter to quarter and year to year on a regular basis and for benchmarking
against other medical technology companies. Non-GAAP financial measures used by
the Company may be calculated differently from, and therefore may not be
comparable to, similarly-titled measures used by other companies. These non-
GAAP financial measures should be considered along with, but not as alternatives
to, the operating performance measure as prescribed by GAAP.
Unless otherwise noted, all sales growth rates in this release reflect
comparable, constant currency growth. Management believes that referring to
comparable, constant currency growth is the most useful way to evaluate the
sales performance of LivaNova and to compare the sales performance of current
periods to prior periods on a consistent basis. Constant currency growth, a non-
GAAP financial measure, measures the change in sales between current and prior
year periods using average exchange rates in effect during the applicable prior
year period.
Safe harbor statement
This press release contains forward-looking statements within the meaning of
Section 27A of the United States Securities Act of 1933, as amended, and Section
21E of the United States Securities Exchange Act of 1934, as amended. Forward-
looking statements are not historical facts but are based on certain assumptions
of management and describe the Company's future plans, strategies and
expectations. Forward-looking statements can generally be identified by the use
of forward-looking terminology, including, but not limited to, "may," "could,"
"seek," "guidance," "predict," "potential," "likely," "believe," "will,"
"expect," "anticipate," "estimate," "plan," "intend," "forecast," or variations
of these terms and similar expressions, or the negative of these terms or
similar expressions. Forward-looking statements contained in this press release
are based on information presently available to LivaNova and assumptions that
the Company believes to be reasonable, but are inherently uncertain. As a
result, the Company's actual results, performance or achievements may differ
materially from those expressed or implied by these forward-looking statements,
which are not guarantees of future performance and involve known and unknown
risks, uncertainties and other factors that are, in some cases, beyond the
Company's control. Investors are cautioned that all such statements involve
risks and uncertainties, including without limitation, statements concerning
developing novel opportunities in neuromodulation, heart failure, sleep apnea
and percutaneous mitral valve, creating new innovative solutions that benefit
patients, healthcare professionals, and healthcare systems, and building
significant shareholder value. Important factors that may cause actual results
to differ include, but are not limited to: (i) risks that the legacy businesses
of Cyberonics, Inc. and Sorin S.p.A. (together, the "combined companies") will
not be integrated successfully or that the combined companies will not realize
estimated cost savings, value of certain tax assets, synergies and growth, or
that such benefits may take longer to realize than expected; (ii) the inability
of LivaNova to meet expectations regarding the timing, completion and accounting
of tax treatments; (iii) risks relating to unanticipated costs of integration,
including operating costs, customer loss or business disruption being greater
than expected; (iv) organizational and governance structure; (v) reductions in
customer spending, a slowdown in customer payments and changes in customer
demand for products and services; (vi) unanticipated changes relating to
competitive factors in the industries in which LivaNova operates; (vii) the
ability to hire and retain key personnel; (viii) the ability to attract new
customers and retain existing customers in the manner anticipated; (ix) the
reliance on and integration of information technology systems; (x) changes in
legislation or governmental regulations affecting LivaNova; (xi) international,
national or local economic, social or political conditions that could adversely
affect LivaNova, its partners or its customers; (xii) conditions in the credit
markets; (xiii) business and other financial risks inherent to the industries in
which LivaNova operates; (xiv) risks associated with assumptions made in
connection with critical accounting estimates and legal proceedings; (xv)
LivaNova's international operations, which are subject to the risks of currency
fluctuations and foreign exchange controls; (xvi) and the potential of
international unrest, economic downturn or effects of currencies, tax
assessments, tax adjustments, anticipated tax rates, raw material costs or
availability, benefit or retirement plan costs, or other regulatory compliance
costs. The foregoing list of factors is not exhaustive. You should carefully
consider the foregoing factors and the other risks and uncertainties that affect
the Company's business, including those described in the "Risk Factors" section
of Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports
on Form 8-K, the Registration Statement on Form S-4 and other documents filed
from time to time with the United States Securities and Exchange Commission by
LivaNova. LivaNova does not give any assurance (1) that LivaNova will achieve
its expectations, or (2) concerning any result or the timing thereof, in each
case, with respect to any regulatory action, administrative proceedings,
government investigations, litigation, warning letters, consent decree, cost
reductions, business strategies, earnings or revenue trends or future financial
results.
All information in this press release is as of the date of its release. The
Company does not undertake or assume any obligation to update publicly any of
the forward-looking statements in this press release to reflect actual results,
new information or future events, changes in assumptions or changes in other
factors affecting forward-looking statements, except to the extent required by
applicable law. If we update one or more forward-looking statements, no
inference should be drawn that we will make additional updates with respect to
those or other forward-looking statements. We caution you not to place undue
reliance on any forward-looking statements, which are made only as of the date
of this press release.
LIVANOVA PLC
QUARTERLY SALES TREND BY BUSINESS UNIT
U.S. dollar in Millions, CONSTANT CURRENCY
3Q16 vs.
1Q15 2Q15 3Q15 4Q15 FY15 1Q16 2Q16 3Q16 3Q15
--------- --------- --------- --------- ----------- --------- --------- --------- -------------
Net sales
Cardio $ $
Pulmonary $ 107.5 $ 125.9 $ 113.0 $ 130.0 $ 476.4 $ 113.4 123.6 113.3 0.2 %
Heart Valves 34.7 36.4 34.2 34.9 140.2 33.4 37.0 33.4 (2.4 %)
--------- --------- --------- --------- ----------- --------- --------- ----------- -------------
Cardiac Surgery
Total 142.2 162.3 147.2 164.9 616.6 146.8 160.7 146.6 (0.4 %)
CRM 70.4 75.6 53.9 60.7 260.5 62.9 68.1 55.8 3.6 %
Neuromodulation 70.1 78.4 84.3 91.5 324.3 81.6 90.1 90.0 6.8 %
Other 0.7 0.7 0.8 0.9 3.2 0.5 0.4 0.5 (41.9 %)
--------- --------- --------- --------- ----------- --------- --------- --------- -------------
Total $ 283.4 $ 317.1 $ 286.1 $ 318.0 $ 1,204.6 $ 291.8 $ 319.3 $ 292.9 2.4 %
--------- --------- --------- --------- ----------- --------- --------- ----------- -------------
QUARTERLY SALES TREND BY BUSINESS UNIT
U.S. dollar in Millions, REPORTED
3Q16 vs.
1Q15 2Q15 3Q15 4Q15 FY15 1Q16 2Q16 3Q16 3Q15
--------- --------- --------- --------- ----------- --------- --------- --------- ---------------
Net sales
Cardio $ $
Pulmonary $ 107.5 $ 125.9 $ 113.0 $ 130.0 $ 476.4 $ 110.9 124.0 114.8 1.6 %
Heart Valves 34.7 36.4 34.2 34.9 140.2 32.5 37.1 33.7 (1.5 %)
--------- --------- --------- --------- ----------- --------- --------- --------- ---------------
Cardiac Surgery
Total 142.2 162.3 147.2 164.9 616.6 143.4 161.1 148.5 0.9 %
CRM 70.4 75.6 53.9 60.7 260.5 61.7 69.6 56.8 5.4 %
Neuromodulation 70.1 78.4 84.3 91.5 324.3 81.4 90.0 89.5 6.2 %
Other 0.7 0.7 0.8 0.9 3.2 0.4 0.4 0.5 (41.7 %)
--------- --------- --------- --------- ----------- --------- --------- --------- ---------------
Total $ 283.4 $ 317.1 $ 286.1 $ 318.0 $ 1,204.6 $ 287.0 $ 321.0 $ 295.3 3.2 %
--------- --------- --------- --------- ----------- --------- --------- ------- ---------------
*Numbers may not add due to rounding.
LIVANOVA PLC
QUARTERLY SALES TREND BY REGION
U.S. dollar in Millions, CONSTANT CURRENCY
3Q16 vs.
1Q15 2Q15 3Q15 4Q15 FY15 1Q16 2Q16 3Q16 3Q15
------------------- --------- --------------------- ----------------------------- ---------------
Cardio
Pulmonary
US $ 32.9 $ 43.0 $ 39.8 $ 45.9 $ 161.7 $ 34.5 $ 39.2 $ 39.4 (1.1 %)
Europe 33.6 37.1 31.7 35.6 137.9 32.4 34.6 28.8 (9.1 %)
Rest of World 41.0 45.9 41.5 48.5 176.9 46.6 49.8 45.1 8.6 %
--------- --------- --------- --------------------- ------------------- --------- ---------------
Total 107.5 125.9 113.0 130.0 476.4 113.4 123.6 113.3 0.2 %
--------- ------- --------- --------------------- ------------------- --------- ---------------
Heart Valve
US 6.7 6.7 6.1 5.8 25.2 6.5 7.1 7.4 21.2 %
Europe 12.8 13.0 10.3 10.9 46.9 11.7 12.4 9.9 (3.8 %)
Rest of World 15.2 16.8 17.8 18.2 68.1 15.2 17.6 16.1 (9.7 %)
--------- --------- --------- --------------------- ------------------- --------- ---------------
Total 34.7 36.4 34.2 34.9 140.2 33.4 37.0 33.4 (2.4 %)
--------- ------- --------- --------------------- ------------------- --------- ---------------
Cardiac Surgery
US 39.6 49.6 45.9 51.7 186.9 40.9 46.3 46.8 1.9 %
Europe 46.3 50.0 41.9 46.5 184.8 44.0 47.0 38.7 (7.8 %)
Rest of World 56.2 62.7 59.3 66.7 245.0 61.8 67.4 61.2 3.1 %
--------- --------- --------- --------------------- ------------------- --------- ---------------
Total 142.2 162.3 147.2 164.9 616.6 146.8 160.7 146.6 (0.4 %)
--------- ------- --------- --------------------- ------------------- --------- ---------------
CRM
US 4.5 3.9 3.9 3.1 15.5 3.0 2.3 2.2 (44.7 %)
Europe 51.0 52.3 44.8 50.5 198.6 51.2 53.5 44.8 (0.0 %)
Rest of World 14.9 19.4 5.1 7.0 46.4 8.7 12.3 8.8 71.8 %
--------- --------- --------- --------------------- ------------------- --------- ---------------
Total 70.4 75.6 53.9 60.7 260.5 62.9 68.1 55.8 3.6 %
--------- --------- --------- --------------------- ------------------- --------- ---------------
Neuromodulation
US 57.5 63.6 70.9 76.8 268.8 70.2 75.8 74.9 5.5 %
Europe 8.7 8.9 8.4 9.2 35.2 6.6 9.4 9.0 7.2 %
Rest of World 3.9 6.0 4.9 5.5 20.3 4.8 4.9 6.1 24.6 %
--------- --------- --------- --------------------- ------------------- --------- ---------------
Total 70.1 78.4 84.3 91.5 324.3 81.6 90.1 90.0 6.8 %
--------- --------- --------- --------------------- ------------------- --------- ---------------
Other
US 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 n/a
Europe 0.0 0.0 0.0 0.2 0.3 0.1 0.1 0.0 n/a
Rest of World 0.7 0.7 0.8 0.7 2.9 0.5 0.3 0.5 (38.0 %)
--------- --------- --------- --------------------- ------------------- --------- ---------------
Total 0.7 0.7 0.8 0.9 3.2 0.5 0.4 0.5 (41.9 %)
--------- --------- --------- --------------------- ------------------- --------- ---------------
Total
US 101.6 117.1 120.8 131.6 471.2 114.1 124.4 123.8 2.5 %
Europe 106.1 111.2 95.2 106.4 418.8 101.9 110.0 92.5 (2.8 %)
Rest of World 75.7 88.8 70.2 79.9 314.6 75.8 84.9 76.6 9.2 %
--------- --------- --------- --------------------- ------------------- --------- ---------------
Total $ 283.4 $ 317.1 $ 286.1 $ 318.0 $ 1,204.6 $ 291.8 $ 319.3 $ 292.9 2.4 %
------------------- --------- --------------------- ----------------------------- ---------------
*Numbers may not add due to rounding.
LIVANOVA PLC
QUARTERLY SALES TREND BY REGION
U.S. dollar in Millions, REPORTED
3Q16 vs.
1Q15 2Q15 3Q15 4Q15 FY15 1Q16 2Q16 3Q16 3Q15
---------------------------------------------------------------------------------------------
Cardio
Pulmonary
US $ 32.9 $ 43.0 $ 39.8 $ 45.9 $ 161.7 $ 34.5 $ 39.2 $ 39.4 (1.1 %)
Europe 33.6 37.1 31.7 35.6 137.9 31.5 34.9 28.3 (10.6 %)
Rest of World 41.0 45.9 41.5 48.5 176.9 45.0 49.9 47.2 13.6 %
---------------------------------------------------------------------------------------------
Total 107.5 125.9 113.0 130.0 476.4 110.9 124.0 114.8 1.6 %
---------------------------------------------------------------------------------------------
Heart Valve
US 6.7 6.7 6.1 5.8 25.2 6.5 7.1 7.4 21.2 %
Europe 12.8 13.0 10.3 10.9 46.9 11.4 12.5 9.7 (5.4 %)
Rest of World 15.2 16.8 17.8 18.2 68.1 14.7 17.5 16.6 (7.1 %)
---------------------------------------------------------------------------------------------
Total 34.7 36.4 34.2 34.9 140.2 32.5 37.1 33.7 (1.5 %)
---------------------------------------------------------------------------------------------
Cardiac Surgery
US 39.6 49.6 45.9 51.7 186.9 40.9 46.3 46.8 1.9
Europe 46.3 50.0 41.9 46.5 184.8 42.9 47.4 38.0 (9.4 %)
Rest of World 56.2 62.7 59.3 66.7 245.0 59.7 67.4 63.7 7.4 %
---------------------------------------------------------------------------------------------
Total 142.2 162.3 147.2 164.9 616.6 143.4 161.1 148.5 0.9 %
---------------------------------------------------------------------------------------------
CRM
US 4.5 3.9 3.9 3.1 15.5 3.0 2.3 2.2 (44.7 %)
Europe 51.0 52.3 44.8 50.5 198.6 50.0 54.4 44.7 (0.1 %)
Rest of World 14.9 19.4 5.1 7.0 46.4 8.7 12.9 9.8 91.8 %
---------------------------------------------------------------------------------------------
Total 70.4 75.6 53.9 60.7 260.5 61.7 69.6 56.8 5.4 %
---------------------------------------------------------------------------------------------
Neuromodulation
US 57.5 63.6 70.9 76.8 268.8 70.2 75.8 74.9 5.5 %
Europe 8.7 8.9 8.4 9.2 35.2 6.4 9.4 8.5 1.3 %
Rest of World 3.9 6.0 4.9 5.5 20.3 4.8 4.9 6.2 24.8 %
---------------------------------------------------------------------------------------------
Total 70.1 78.4 84.3 91.5 324.3 81.4 90.0 89.5 6.2 %
---------------------------------------------------------------------------------------------
Other
US 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 n/a
Europe 0.0 0.0 0.0 0.2 0.3 0.1 0.1 0.0 n/a
Rest of World 0.7 0.7 0.8 0.7 2.9 0.4 0.3 0.5 (37.8 %)
---------------------------------------------------------------------------------------------
Total 0.7 0.7 0.8 0.9 3.2 0.4 0.4 0.5 (41.7 %)
---------------------------------------------------------------------------------------------
Total
US 101.6 117.1 120.8 131.6 471.2 114.1 124.4 123.8 2.5 %
Europe 106.1 111.2 95.2 106.4 418.8 99.3 111.2 91.2 (4.1 %)
Rest of World 75.7 88.8 70.2 79.9 314.6 73.5 85.4 80.2 14.3 %
---------------------------------------------------------------------------------------------
Total $ 283.4 $ 317.1 $ 286.1 $ 318.0 $ 1,204.6 $ 287.0 $ 321.0 $ 295.3 3.2 %
---------------------------------------------------------------------------------------------
*Numbers may not add due to rounding.
LIVANOVA PLC
QUARTERLY SALES
U.S. dollar in Millions
Three Months Ended
September 30, 2016
---------------------------
% Change % Change
at at
Actual Constant
Currency Currency
2016 2015 Rates Rates
----------- --------------- ---------------- ---------------
Cardio Pulmonary
US $ 39.4 $ 39.8 (1.1 %) (1.1 %)
Europe 28.3 31.7 (10.6 %) (9.1 %)
Rest of World 47.2 41.5 13.6 % 8.6 %
----------- ---------------
Total 114.8 113.0 (1.6 %) 0.2 %
----------- ---------------
Heart Valve
US 7.4 6.1 21.2 % 21.2 %
Europe 9.7 10.3 (5.4 %) (3.8 %)
Rest of World 16.6 17.8 (7.1 %) (9.7 %)
----------- ---------------
Total 33.7 34.2 (1.5 %) (2.4 %)
----------- ---------------
Cardiac Surgery
US 46.8 45.9 1.9 % (1.9 %)
Europe 38.0 41.9 (9.4 %) (7.8 %)
Rest of World 63.7 59.3 7.4 % 3.1 %
----------- ---------------
Total 148.5 147.2 0.9 % (0.4 %)
----------- ---------------
CRM
US 2.2 3.9 (44.7 %) (44.7 %)
Europe 44.7 44.8 (0.1 %) (0.0 %)
Rest of World 9.8 5.1 91.8 % 71.8 %
----------- ---------------
Total 56.8 53.9 5.4 % 3.6 %
----------- ---------------
Neuromodulation
US 74.9 70.9 5.5 % 5.5 %
Europe 8.5 8.4 1.3 % 7.2 %
Rest of World 6.2 4.9 24.8 % 24.6 %
----------- ---------------
Total 89.5 84.3 6.2 % 6.8 %
----------- ---------------
Other
US 0.0 0.0 n/a n/a
Europe 0.0 0.0 n/a n/a
Rest of World 0.5 0.8 (37.8 %) (38.0 %)
----------- ---------------
Total 0.5 0.8 (41.7 %) (41.9 %)
----------- ---------------
Total
US 123.8 120.8 2.5 % 2.5 %
Europe 91.2 95.2 (4.1 %) (2.8 %)
Rest of World 80.2 70.2 14.3 % 9.2 %
----------- ---------------
Total $ 295.3 $ 286.1 3.2 % 2.4 %
----------- ---------------
*The sales results presented are unaudited. Numbers may not add due to
rounding.
LIVANOVA PLC
QUARTERLY SALES
U.S. dollar in Millions
Nine Months Ended
September 30, 2016
--------------------------
% Change % Change
at at
Actual Constant
Currency Currency
2016 2015 Rates Rates
----------- -------------- ---------------- ---------------
Cardio Pulmonary
US $ 113.1 $ 115.7 (2.3 %) (2.3 %)
Europe 94.7 102.3 (7.5 %) (6.4 %)
Rest of World 142.0 128.4 10.6 % 10.2 %
----------- --------------
Total 349.7 346.4 1.0 % 1.1 %
----------- --------------
Heart Valve
US 20.9 19.4 7.5 % 7.5 %
Europe 33.6 36.0 (6.7 %) (5.7 %)
Rest of World 48.8 49.9 (2.2 %) (1.9 %)
----------- --------------
Total 103.3 105.3 (1.9 %) (1.5 %)
----------- --------------
Cardiac Surgery
US 134.0 135.2 (0.9 %) (0.9 %)
Europe 128.2 138.3 (7.3 %) (6.2 %)
Rest of World 190.8 178.2 7.0 % 6.8 %
----------- --------------
Total 453.0 451.7 0.3 % 0.5 %
----------- --------------
CRM
US 7.5 12.4 (39.8 %) (39.8 %)
Europe 149.1 148.0 0.7 % 1.0 %
Rest of World 31.4 39.4 (20.2 %) (24.4 %)
----------- --------------
Total 188.1 199.8 (5.9 %) (6.5 %)
----------- --------------
Neuromodulation
US 220.9 192.0 15.1 % 15.1 %
Europe 24.2 26.0 (6.9 %) (3.8 %)
Rest of World 15.8 14.8 6.4 % 6.6 %
----------- --------------
Total 260.9 232.8 12.1 % 12.4 %
----------- --------------
Other
US 0.0 n/a n/a
Europe 0.1 0.1 124.2 % n/a
Rest of World 1.2 2.2 (46.6 %) (43.2 %)
----------- --------------
Total 1.3 2.2 (41.5 %) (38.2 %)
----------- --------------
Total
US 362.4 339.6 6.7 % 6.7 %
Europe 301.7 312.4 (3.4 %) (2.6 %)
Rest of World 239.2 234.7 1.9 % (1.1 %)
----------- --------------
Total $ 903.3 $ 886.6 1.9 % 2.0 %
----------- --------------
*The sales results presented are unaudited. Numbers may not add due to
rounding.
LIVANOVA PLC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME (LOSS)
U.S. dollars in Millions, except share and per share amounts
Three Months
Ended
September 30,
2016
------------------------
Net sales $ 295.3
Cost of sales 106.5
------------------------
Gross profit 188.8
------------------------
Operating expenses
Selling, general and administrative 107.6
Research and development 32.2
Merger and integration expense 7.6
Restructuring expense 4.4
Amortization of intangible 11.8
Litigation related expenses 2.4
------------------------
Total operating expenses 165.8
------------------------
Income (loss) from operations 23.0
------------------------
Other Income
Interest (income) expense 2.9
Foreign exchange and other - (gain) loss (1.2 )
------------------------
Income (loss) before income taxes 21.3
------------------------
Loss from equity method investments 13.1
Income tax expense (benefit) 9.7
------------------------
Net (loss) income $ (1.6 )
------------------------
Earnings (loss) per common share:
Basic $ (0.03 )
Diluted $ (0.03 )
Weighted average common shares outstanding (in
Millions)
Basic 49.1
Diluted 49.1
Adjusted Gross Profit((1)) $ 190.4
Adjusted SG&A((1)) 104.0
Adjusted R&D((1)) 31.2
Adjusted Income from Operations((1)) 55.2
Adjusted Net Income((1)) 38.3
Adjusted Diluted Earnings Per Share((1)) $ 0.78
Statistics (as a % of net sales, except for
income tax rate)
GAAP
Three
Months
Ended Adjusted((1)) Three
September Months Ended
30, September 30,
----------- --------------------------
2016 2016 2015
----------- --------------------------
Gross Profit 63.9 % 64.5 % 63.8 %
SG&A 36.4 % 35.2 % 37.3 %
R&D 10.9 % 10.6 % 12.5 %
Income from Operations (loss) 7.8 % 18.7 % 14.0 %
Net Income (loss) (0.5 %) 13.0 % n/a
Income Tax Rate 45.7 % 25.5 % n/a
((1)Adjusted financial measures are Non-GAAP measures and exclude specified
items as described and reconciled to compare GAAP financial measures in the
Reconciliation of GAAP to non-GAAP Financial Measures contained in the press
release.)
*Numbers may not add due to rounding. n/a is not applicable; there is no
applicable adjusted net income or tax rate reported for 3Q15.
LIVANOVA PLC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME (LOSS)
U.S. dollars in Millions, except share and per share amounts
Nine Months
Ended September
30,
2016
-------------------------
Net sales $ 903.3
Cost of sales 360.7
-------------------------
Gross profit 542.6
-------------------------
Operating expenses
Selling, general and administrative 343.3
Research and development 94.1
Merger and integration expense 20.5
Restructuring expense 37.2
Amortization of intangible 34.0
Litigation related expenses 4.7
-------------------------
Total operating expenses 533.8
-------------------------
Income (loss) from operations 8.8
-------------------------
Other Income
Interest income (expense) 5.5
Foreign exchange and other - (gain) loss 0.0
-------------------------
Income (loss) before income taxes 3.3
-------------------------
Loss from equity method investments 19.4
Income tax expense (benefit) 16.9
-------------------------
Net (loss) income $ (33.0 )
-------------------------
Earnings (loss) per common share:
Basic $ (0.67 )
Diluted $ (0.67 )
Weighted average common shares outstanding (in
Millions)
Basic 49.0
Diluted 49.0
Adjusted Gross Profit((1)) $ 584.5
Adjusted SG&A((1)) 330.5
Adjusted R&D((1)) 92.5
Adjusted Income (loss) from Operations((1)) 161.5
Adjusted Net Income (loss)( (1)) 107.8
Adjusted Diluted Earnings Per Share((1)) $ 2.20
Statistics (as a % of net sales, except for
income tax rate)
GAAP Nine
Months
Ended Adjusted((1)) Nine
September Months Ended
30, September 30,
------------ ----------------------
2016 2016 2015
------------ ----------------------
Gross Profit 60.1 % 64.7 % 63.5 %
SG&A 38.0 % 36.6 % 37.0 %
R&D 10.4 % 10.2 % 12.2 %
Income from Operations (loss) 1.0 % 17.9 % 14.4 %
Net Income (loss) (3.7 %) 11.9 % n/a
Income Tax Rate 514.4 % 26.3 % n/a
((1)Adjusted financial measures are Non-GAAP measures and exclude specified
items as described and reconciled to compare GAAP financial measures in the
Reconciliation of GAAP to non-GAAP Financial Measures contained in the press
release.)
*Numbers may not add due to rounding. n/a is not applicable; there is no
applicable adjusted net income or tax rate reported for 3Q15.
LIVANOVA PLC AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
U.S. dollars in Millions, except share and per share amounts
Three Months Income Net
Ended September Gross From Income Diluted
30, 2016 Sales Profit Operations (loss) EPS
------------------- --------- ------------ ---------------- -------------- --------------
GAAP Financial
Measures $ 295.3 $ 188.8 $ 23.0 $ (1.6 ) $ (0.03 )
Specified Items
Merger and
integration
expense((A)) 7.6 5.8 0.12
Restructuring
expense((B)) 4.4 2.9 0.06
Amortization of
intangible
assets((C)) 1.3 12.7 9.5 0.19
Other
income/expenses &
litigation((D)) 2.4 1.5 0.03
Impairment of
investments in
minorities((E)) 9.1 0.18
Impact of
inventory step-
up((F))) 0.2 0.2 0.1 0.00
Equity
compensation((G)) 0.1 5.0 4.0 0.08
Certain tax
adjustments((H)) 6.9 0.14
--------- ------------ ---------------- -------------- --------------
Adjusted
financial
measures $ 295.3 $ 190.4 $ 55.2 $ 38.3 $ 0.78
--------- ------------ ---------------- -------------- --------------
*Numbers may not add due to rounding.
GAAP results for the three months ended September 30, 2016 include:
((A))Expenses related to merger and integration activities..
((B))Restructuring expenses, including CRM restructuring announced March
10, 2016, severance related to corporate and shared service synergies and
recent organizational changes.
((C))Includes amortization associated with final purchase price accounting.
((D))$1.3 Million expense primarily associated with litigation related to
3T Heater-Cooler devices; $0.9 Million related to other litigations.
((E))$9.2 Million related to impairment of Respicardia buy-out option; $0.7
Million related to increasing amortization following final PPA.
((F))Includes the amortization of inventory step-up associated with final
purchase price accounting.
((G))Includes $4.6 Million related to SG&A, $0.2 Million related to R&D and
$0.1 Million related to COGS.
((H))Relates to the impact of restructuring initiatives and IP migration.
Please see "Use of Non-GAAP Financial Measures" above
Nine Months Ended Income Net
September Gross From Income Diluted
30, 2016 Sales Profit Operations (loss) EPS
------------------- --------- ------------ ---------------- --------------- --------------
GAAP Financial
Measures $ 903.3 $ 542.6 $ 8.8 $ (33.0 ) $ (0.67 )
Specified Items
Merger and
integration
expense((A)) 20.5 16.9 0.35
Restructuring
expense((B)) 37.2 33.4 0.68
Amortization of
intangible
assets((C)) 5.9 39.5 29.2 0.59
Impairment of
investments in
minorities((E)) 4.9 2.1 0.04
Other
income/expenses &
litigation((D)) 9.1 0.18
Impact of
inventory step-
up((E)) 35.2 35.2 24.1 0.49
Equity
compensation((F)) 0.8 15.3 12.9 0.26
Certain tax
adjustments((G)) 13.2 0.27
--------- ------------ ---------------- --------------- --------------
Adjusted
financial
measures $ 903.3 $ 584.5 $ 161.5 $ 107.8 $ 2.20
--------- ------------ ---------------- --------------- --------------
*Numbers may not add due to rounding.
GAAP results for the nine months ended September 30, 2016 include:
((A))Expenses related to merger and integration activities..
((B) )Restructuring expenses, including CRM restructuring announced March
10, 2016, severance related to corporate and shared service synergies and
recent organizational changes.
((C))Includes amortization associated with final purchase price accounting.
((D))$4.7 Million reimbursement of damages related to 2012 earthquake in
Mirandola (Italy); $ 5.0m write-off of receivables from Greece distributor;
$3.6 Million expense primarily associated with litigation related to 3T
Heater-Cooler devices; $0.9 Million related to related to other litigations.
((E))$9.2 Million related to the impairment of Respicardia buy-out option;
$0.7 Million related to increasing amortization following final PPA.
((F))Includes the amortization of inventory step-up associated with final
purchase price accounting.
((G))Includes $13.7 Million related to SG&A, $0.8 Million related to R&D and
$0.8 related to COGS.
((H))Relates to the impact of restructuring initiatives and IP migration.
Please see "Use of Non-GAAP Financial Measures" above
LIVANOVA PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in Millions
September 30, 2016 December 31, 2015
------------------------ --------------------
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 63.6 $ 112.6
Short-term investments 0.0 7.0
Accounts receivable, net 284.3 272.4
Inventories 197.6 212.5
Prepaid taxes 49.9 42.4
Prepaid expenses and other
current assets 51.9 26.6
------------------------ --------------------
Total Current Assets 647.3 673.4
------------------------ --------------------
Property, plant and equipment,
net 245.1 244.6
Goodwill 731.1 745.4
Intangible assets, net 650.4 658.9
Investments 67.4 77.5
Deferred tax assets, net 6.0 153.5
Other assets 149.6 5.4
------------------------ --------------------
Total Assets $ 2,497.0 $ 2,558.7
------------------------ --------------------
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current Liabilities:
Current debt obligations $ 53.6 $ 82.5
Accounts payable 104.5 109.6
Accrued liabilities 62.0 63.0
Income taxes payable 16.7 26.7
Accrued employee compensation
and related benefits liability 80.0 77.3
---------------------- --------------------
Total Current Liabilities 316.9 359.1
---------------------- --------------------
Long-term debt obligations 90.9 91.8
Deferred income taxes liability 213.1 235.5
Long-term employee compensation
and related benefits liability 32.0 31.1
Other long-term liabilities 27.2 29.7
------------------------ --------------------
Total Liabilities 680.1 747.3
------------------------ --------------------
Total Stockholders' Equity 1,816.9 1,811.5
------------------------ --------------------
Total Liabilities and
Stockholders' Equity $ 2,497.0 $ 2,558.7
------------------------ --------------------
*Numbers may not add due to rounding.
LIVANOVA PLC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOW
U.S. dollars in Millions
(Unaudited)
Nine Months
Datum: 02.11.2016 - 13:20 Uhr
Sprache: Deutsch
News-ID 504476
Anzahl Zeichen: 65565
contact information:
Town:
London
Kategorie:
Business News
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