LivaNova Reports Second Quarter 2017 Results
For the second quarter of 2017, worldwide sales were
"We made progress in many areas of our business during the second quarter, including strong margin and earnings performance," said
Second Quarter 2017 Results
Worldwide sales for the second quarter were
$ in millions |
Three months ended June 30, | % Change |
Constant Currency % Change |
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Business Franchise / Product Line: | 2017 | 2016 | ||||||||||||||
Cardiopulmonary | $124.1 | $124.0 | 0.1 | % | 1.4 | % | ||||||||||
Heart Valves | 34.4 | 37.1 | (7.1 | %) | (5.7 | %) | ||||||||||
Cardiac Surgery | 158.6 | 161.1 | (1.5 | %) | (0.2 | %) | ||||||||||
Cardiac Rhythm Management | 65.5 | 69.6 | (5.8 | %) | (3.6 | %) | ||||||||||
Neuromodulation | 97.0 | 90.0 | 7.7 | % | 8.3 | % | ||||||||||
Other | 0.2 | 0.4 | — | % | — | % | ||||||||||
Total Net Sales | $321.4 | $321.0 | 0.1 | % | 1.4 | % |
- Numbers may not add up precisely 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. Constant currency growth accounts for the impact from fluctuations in the various currencies in which the Company operates as compared to reported growth.
Cardiac Surgery
Cardiac Surgery sales, which include cardiopulmonary products and heart valves, were $159 million, representing a 0.2 percent decrease versus the comparable period in 2016.
Sales in cardiopulmonary products were
Heart valve sales, including tissue and mechanical heart valves, were
Cardiac Rhythm Management (CRM)
CRM sales for the period totaled
Neuromodulation
Neuromodulation sales were
Financial Performance
On a U.S. GAAP basis, second quarter 2017 income from operations was
2017 Guidance
On
Webcast and Conference Call Instructions
The Company will host a live audio webcast for interested parties commencing at
Within 24 hours of the webcast, a replay will be available under the "News & Events / Presentations" section of the Investor Relations portion of the
About
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
Safe Harbor Statement
Certain statements in this press release, other than purely historical information, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements include, but are not limited to, LivaNova's plans, objectives, strategies, financial performance and outlook, trends, the amount and timing of future cash distributions, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, our actual financial results, performance, achievements or prospects may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "seek," "guidance," "predict," "potential," "likely," "believe," "will," "should," "expect," "anticipate," "estimate," "plan," "intend," "forecast," "foresee" or variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by
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 | |||||||||||||||||||
(U.S. dollars in millions) | |||||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||
2017 | 2016 |
% Change at Actual Currency Rates |
% Change at Constant Currency Rates |
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Cardio Pulmonary | |||||||||||||||||||
US | $39.7 | $39.2 | 1.2 | % | 1.2 | % | |||||||||||||
Europe | 34.0 | 34.9 | (2.6 | %) | 0.3 | % | |||||||||||||
Rest of World | 50.5 | 49.9 | 1.2 | % | 2.2 | % | |||||||||||||
Total | 124.1 | 124.0 | 0.1 | % | 1.4 | % | |||||||||||||
Heart Valve | |||||||||||||||||||
US | 6.2 | 7.1 | (12.3 | %) | (12.3 | %) | |||||||||||||
Europe | 10.7 | 12.5 | (14.4 | %) | (11.6 | %) | |||||||||||||
Rest of World | 17.6 | 17.5 | 0.1 | % | 1.3 | % | |||||||||||||
Total | 34.4 | 37.1 | (7.1 | %) | (5.7 | %) | |||||||||||||
Cardiac Surgery | |||||||||||||||||||
US | 45.9 | 46.3 | (0.8 | %) | (0.8 | %) | |||||||||||||
Europe | 44.6 | 47.4 | (5.7 | %) | (2.8 | %) | |||||||||||||
Rest of World | 68.0 | 67.4 | 0.9 | % | 2.0 | % | |||||||||||||
Total | 158.6 | 161.1 | (1.5 | %) | (0.2 | %) | |||||||||||||
CRM | |||||||||||||||||||
US | 2.2 | 2.3 | (4.2 | %) | (4.2 | %) | |||||||||||||
Europe | 50.9 | 54.4 | (6.4 | %) | (4.0 | %) | |||||||||||||
Rest of World | 12.4 | 12.9 | (3.3 | %) | (1.4 | %) | |||||||||||||
Total | 65.5 | 69.6 | (5.8 | %) | (3.6 | %) | |||||||||||||
Neuromodulation | |||||||||||||||||||
US | 81.4 | 75.8 | 7.4 | % | 7.4 | % | |||||||||||||
Europe | 9.5 | 9.4 | 1.6 | % | 7.0 | % | |||||||||||||
Rest of World | 6.1 | 4.9 | 24.7 | % | 25.4 | % | |||||||||||||
Total | 97.0 | 90.0 | 7.7 | % | 8.3 | % | |||||||||||||
Other | |||||||||||||||||||
US | — | — | N/A | N/A | |||||||||||||||
Europe | — | 0.1 | N/A | N/A | |||||||||||||||
Rest of World | 0.2 | 0.3 | N/A | N/A | |||||||||||||||
Total | 0.2 | 0.4 | N/A | N/A | |||||||||||||||
Total | |||||||||||||||||||
US | 129.6 | 124.4 | 4.1 | % | 4.1 | % | |||||||||||||
Europe | 105.0 | 111.2 | (5.5 | %) | (2.7 | %) | |||||||||||||
Rest of World | 86.8 | 85.4 | 1.6 | % | 2.7 | % | |||||||||||||
Total | $321.4 | $321.0 | 0.1 | % | 1.4 | % | |||||||||||||
* The sales results presented are unaudited. Numbers may not add up precisely due to rounding. | |||||||||||||||||||
LIVANOVA PLC | |||||||||||||||||||
SIX MONTH SALES | |||||||||||||||||||
(U.S. dollars in millions) | |||||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||||
2017 | 2016 |
% Change at Actual Currency Rates |
% Change at Constant Currency Rates |
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Cardio Pulmonary | |||||||||||||||||||
US | $71.9 | $73.7 | (2.4 | %) | (2.4 | %) | |||||||||||||
Europe | 64.6 | 66.4 | (2.7 | %) | 1.1 | % | |||||||||||||
Rest of World | 95.0 | 94.8 | 0.2 | % | 0.0 | % | |||||||||||||
Total | 231.4 | 234.9 | (1.5 | %) | (0.5 | %) | |||||||||||||
Heart Valve | |||||||||||||||||||
US | 12.3 | 13.5 | (9.3 | %) | (9.3 | %) | |||||||||||||
Europe | 21.0 | 23.9 | (11.9 | %) | (8.5 | %) | |||||||||||||
Rest of World | 33.0 | 32.2 | 2.6 | % | 2.9 | % | |||||||||||||
Total | 66.3 | 69.6 | (4.7 | %) | (3.4 | %) | |||||||||||||
Cardiac Surgery | |||||||||||||||||||
US | 84.2 | 87.2 | (3.5 | %) | (3.5 | %) | |||||||||||||
Europe | 85.6 | 90.2 | (5.1 | %) | (1.5 | %) | |||||||||||||
Rest of World | 128.0 | 127.0 | 0.8 | % | 0.8 | % | |||||||||||||
Total | 297.8 | 304.5 | (2.2 | %) | (1.1 | %) | |||||||||||||
CRM | |||||||||||||||||||
US | 4.7 | 5.3 | (11.7 | %) | (11.7 | %) | |||||||||||||
Europe | 98.3 | 104.4 | (5.8 | %) | (2.9 | %) | |||||||||||||
Rest of World | 20.8 | 21.6 | (3.7 | %) | (3.0 | %) | |||||||||||||
Total | 123.8 | 131.3 | (5.7 | %) | (3.3 | %) | |||||||||||||
Neuromodulation | |||||||||||||||||||
US | 155.1 | 146.0 | 6.2 | % | 6.2 | % | |||||||||||||
Europe | 17.4 | 15.7 | 11.0 | % | 17.5 | % | |||||||||||||
Rest of World | 11.7 | 9.6 | 20.9 | % | 20.7 | % | |||||||||||||
Total | 184.2 | 171.4 | 7.5 | % | 8.0 | % | |||||||||||||
Other | |||||||||||||||||||
US | — | — | N/A | N/A | |||||||||||||||
Europe | — | 0.2 | N/A | N/A | |||||||||||||||
Rest of World | 0.7 | 0.7 | N/A | N/A | |||||||||||||||
Total | 0.7 | 0.8 |
N/A |
N/A | |||||||||||||||
Total | |||||||||||||||||||
US | 243.9 | 238.5 | 2.2 | % | 2.2 | % | |||||||||||||
Europe | 201.4 | 210.5 | (4.3 | %) | (0.8 | %) | |||||||||||||
Rest of World | 161.2 | 159.0 | 1.4 | % | 1.5 | % | |||||||||||||
Total | $606.5 | $608.0 | (0.3 | %) | 1.0 | % | |||||||||||||
* The sales results presented are unaudited. Numbers may not add up precisely due to rounding. | |||||||||||||||||||
LIVANOVA PLC AND SUBSIDIARIES | ||||||||||||||
CONSOLIDATED STATEMENT OF INCOME (LOSS) - UNAUDITED | ||||||||||||||
(U.S. dollars in millions, except per share amounts) | ||||||||||||||
Three Months Ended June 30, | ||||||||||||||
2017 | 2016 | % Change | ||||||||||||
Net sales | $321.4 | $321.0 | ||||||||||||
Cost of sales | 108.9 | 130.6 | ||||||||||||
Product remediation | 1.7 | 0.8 | ||||||||||||
Gross Profit | 210.8 | 189.6 | 11.2 | % | ||||||||||
Operating expenses | ||||||||||||||
Selling, general and administrative | 120.4 | 120.7 | ||||||||||||
Research and development | 43.0 | 30.1 | ||||||||||||
Merger and integration expense | 3.5 | 6.2 | ||||||||||||
Restructuring expense | 1.1 | 4.2 | ||||||||||||
Amortization of intangibles | 11.7 | 6.3 | ||||||||||||
Total operating expenses | 179.7 | 167.6 | 7.2 | % | ||||||||||
Income from operations | 31.1 | 21.9 | 42.0 | % | ||||||||||
Interest expense, net |
(1.3 | ) | (1.7 | ) | ||||||||||
Gain on acquisition of Caisson | 39.4 | — | ||||||||||||
Foreign exchange and other - gain (loss) | (3.0 | ) | 0.6 | |||||||||||
Income before income taxes | 66.2 | 20.9 | 216.7 | % | ||||||||||
Losses from equity method investments | (15.4 | ) | (3.5 | ) | ||||||||||
Income tax expense (benefit) | 3.3 | 8.4 | ||||||||||||
Net income | $47.5 | $9.0 | 427.8 | % | ||||||||||
Earnings Per Common Share: | ||||||||||||||
Basic | $0.99 | $0.18 | ||||||||||||
Diluted | $0.98 | $0.18 | ||||||||||||
Weighted Average Common Shares Outstanding | ||||||||||||||
Basic | 48.1 | 49.1 | ||||||||||||
Diluted | 48.3 | 49.2 | ||||||||||||
Adjusted Gross Profit (1) | $214.0 | $209.0 | 2.4 | % | ||||||||||
Adjusted SG&A (1) | 111.9 | 116.3 | (3.8 | %) | ||||||||||
Adjusted R&D (1) | 31.7 | 30.0 | 5.7 | % | ||||||||||
Adjusted Income from Operations (1) | 70.3 | 62.8 | 11.9 | % | ||||||||||
Adjusted Net Income (1) | 48.8 | 43.0 | 13.5 | % | ||||||||||
Adjusted Diluted Earnings Per Share (1) | $1.01 | $0.87 | 16.1 | % | ||||||||||
Statistics (as a % of net sales, except for income tax rate) | ||||||||||||||||||||
GAAP Three Months Ended June 30, | Adjusted (1) Three Months Ended June 30, | |||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Gross Profit | 65.6 | % | 59.0 | % | 66.6 | % | 65.1 | % | ||||||||||||
SG&A | 37.5 | % | 37.6 | % | 34.8 | % | 36.2 | % | ||||||||||||
R&D | 13.4 | % | 9.4 | % | 9.9 | % | 9.3 | % | ||||||||||||
Income (loss) from Operations | 9.7 | % | 6.8 | % | 21.9 | % | 19.5 | % | ||||||||||||
Net (loss) Income | 14.8 | % | 2.8 | % | 15.2 | % | 13.4 | % | ||||||||||||
Income Tax Rate | 5.0 | % | 40.3 | % | 22.8 | % | 25.9 | % | ||||||||||||
|
(1) | Adjusted financial measures are Non-GAAP measures and exclude specified items as described and reconciled in the "Reconciliation of GAAP to non-GAAP Financial Measures" contained in the press release. | |
* | Numbers may not add up precisely due to rounding. | |
LIVANOVA PLC AND SUBSIDIARIES | ||||||||||||||
CONSOLIDATED STATEMENT OF INCOME (LOSS) - UNAUDITED | ||||||||||||||
(U.S. dollars in millions, except per share amounts) | ||||||||||||||
Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | % Change | ||||||||||||
Net sales | $606.5 | $608.0 | ||||||||||||
Cost of sales | 210.4 | 254.2 | ||||||||||||
Product remediation | 0.9 | 1.6 | ||||||||||||
Gross Profit | 395.2 | 352.2 | 12.2 | % | ||||||||||
Operating expenses | ||||||||||||||
Selling, general and administrative | 232.8 | 236.5 | ||||||||||||
Research and development | 72.7 | 61.9 | ||||||||||||
Merger and integration expense | 5.7 | 13.0 | ||||||||||||
Restructuring expense | 11.3 | 32.8 | ||||||||||||
Amortization of intangibles | 23.1 | 22.2 | ||||||||||||
Total operating expenses | 345.5 | 366.4 | (5.7 | %) | ||||||||||
Income (loss) from operations | 49.7 | (14.2 | ) | 450.0 | % | |||||||||
Interest expense, net | (3.4 | ) | (2.6 | ) | ||||||||||
Gain on acquisition of Caisson | 39.4 | — | ||||||||||||
Foreign exchange and other - gain (loss) | 0.5 | (1.2 | ) | |||||||||||
Income (loss) before income taxes | 86.2 | (18.0 | ) | 578.9 | % | |||||||||
Losses from equity method investments | (18.5 | ) | (6.3 | ) | ||||||||||
Income tax expense | 9.0 | 7.2 | ||||||||||||
Net income (loss) | $58.8 | ($31.4 | ) | 287.3 | % | |||||||||
Earnings (Loss) Per Common Share: | ||||||||||||||
Basic | $1.22 | ($0.64 | ) | |||||||||||
Diluted | $1.22 | ($0.64 | ) | |||||||||||
Weighted Average Common Shares Outstanding | ||||||||||||||
Basic | 48.1 | 49.0 | ||||||||||||
Diluted | 48.2 | 49.0 | ||||||||||||
Adjusted Gross Profit (1) | $399.0 | $394.1 | 1.2 | % | ||||||||||
Adjusted SG&A (1) | 218.7 | 226.5 | (3.4 | %) | ||||||||||
Adjusted R&D (1) | 61.2 | 61.3 | (0.2 | %) | ||||||||||
Adjusted Income from Operations (1) | 119.1 | 106.3 | 12.0 | % | ||||||||||
Adjusted Net Income (1) | 83.0 | 69.5 | 19.4 | % | ||||||||||
Adjusted Diluted Earnings Per Share (1) |
$1.72 | $1.41 | 22.0 | % | ||||||||||
Statistics (as a % of net sales, except for income tax rate) | ||||||||||||||||||
GAAP Six Months Ended June 30, | Adjusted (1) Six Months Ended June 30, | |||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||
Gross Profit | 65.2 | % | 57.9 | % | 65.8 | % | 64.8 | % | ||||||||||
SG&A | 38.4 | % | 38.9 | % | 36.1 | % | 37.3 | % | ||||||||||
R&D | 12.0 | % | 10.2 | % | 10.1 | % | 10.1 | % | ||||||||||
Income (loss) from Operations | 8.2 | % | (2.3 | %) | 19.6 | % | 17.5 | % | ||||||||||
Net (loss) Income | 9.7 | % | (5.2 | %) | 13.7 | % | 11.4 | % | ||||||||||
Income Tax Rate | 10.4 | % | (39.8 | %) | 22.7 | % | 26.8 | % | ||||||||||
(1) | Adjusted financial measures are Non-GAAP measures and exclude specified items as described and reconciled in the "Reconciliation of GAAP to non-GAAP Financial Measures" contained in the press release. | |
* | Numbers may not add up precisely due to rounding. | |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED | |||||||||||||||||||||||
(U.S. dollars in millions, except per share amounts) | |||||||||||||||||||||||
Three Months Ended June 30, 2017 | Sales | Gross Profit |
Income from Operations |
Net Income | Diluted EPS | ||||||||||||||||||
GAAP Financial Measures | $321.4 | $210.8 | $31.1 | $47.5 | $0.98 | ||||||||||||||||||
Specified Items | |||||||||||||||||||||||
Merger and integration expenses (A) | 2.5 | 2.0 | 0.04 | ||||||||||||||||||||
Restructuring expenses (B) | 1.1 | 0.3 | 0.01 | ||||||||||||||||||||
Depreciation and amortization (C) | 1.2 | 13.2 | 10.5 | 0.22 | |||||||||||||||||||
Product remediation (D) | 1.7 | 1.7 | 1.2 | 0.02 | |||||||||||||||||||
Caisson acquisition (E) | 0.2 | 12.1 | (30.1 | ) | (0.62 | ) | |||||||||||||||||
Highlife impairment (F) | 13.0 | 0.27 | |||||||||||||||||||||
Other Income / (expenses) & litigations (G) | 3.9 | 2.7 | 0.06 | ||||||||||||||||||||
Equity compensation (H) | 0.1 | 4.7 | 3.8 | 0.08 | |||||||||||||||||||
Certain tax adjustments (I) | (2.1 | ) | (0.04 | ) | |||||||||||||||||||
Adjusted financial measures | $321.4 | $214.0 | $70.3 | $48.8 | $1.01 | ||||||||||||||||||
Adjusted financial measures | |||||||||||||||||||||||
(A) Merger and integration expenses related to our legacy companies |
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(B) Restructuring expenses related to recent organizational changes |
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(C) Includes depreciation and amortization associated with final purchase price accounting |
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(D) Costs related to the 3T Heater-Cooler remediation plan |
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(E) Impact of Caisson related acquisition costs, including $10.9m related to R&D and $1.0m related to merger and integration costs |
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(F) Impairment of investments and net receivables |
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(G) Legal expense related to 3T Heater-Cooler defense and other matters |
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(H) Includes $4.4m related to SG&A, $0.3m related to R&D, and less than $0.1m related to COGS |
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(I) Primarily relates to discrete tax items and the tax impact of intercompany transactions |
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Three Months Ended June 30, 2016 | Sales | Gross Profit |
Income from Operations |
Net Income | Diluted EPS | ||||||||||||||||||
GAAP Financial Measures | $321.0 | $189.6 | $21.9 | $9.0 | $0.18 | ||||||||||||||||||
Specified Items | |||||||||||||||||||||||
Merger and integration expenses (A) | 6.2 | 5.2 | 0.11 | ||||||||||||||||||||
Restructuring expenses (B) | 4.2 | 3.7 | 0.07 | ||||||||||||||||||||
Depreciation and amortization (C) | 4.6 | 10.9 | 8.7 | 0.18 | |||||||||||||||||||
Product remediation (D) | 0.8 | 0.8 | 0.6 | 0.01 | |||||||||||||||||||
Other Income / (expenses) & litigations (E) | 0.7 | (0.8 | ) | (0.02 | ) | ||||||||||||||||||
Impact of inventory step-up (F) | 13.7 | 13.7 | 9.4 | 0.19 | |||||||||||||||||||
Equity compensation (G) | 0.3 | 4.2 | 3.5 | 0.07 | |||||||||||||||||||
Certain tax adjustments (H) | 3.8 | 0.08 | |||||||||||||||||||||
Adjusted financial measures | $321.0 | $209.0 | $62.8 | $43.0 | $0.87 | ||||||||||||||||||
GAAP results for the three months ended June 30, 2016 include: | |||||||||||||||||||||||
(A) Merger and integration expenses related to our legacy companies |
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(B) Restructuring expenses related to our legacy companies |
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(C) Includes depreciation and amortization associated with final purchase price accounting |
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(D) Costs related to the 3T Heater-Cooler remediation plan |
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(E) Includes a $4.7m reimbursement of damages related to 2012 earthquake in Mirandola (Italy), a $5.0m write-off of receivables from Greek distributors and other minor litigations |
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(F) Includes amortization of inventory step-up associated with final purchase price accounting |
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(G) Includes $3.6m related to SG&A, $0.3m related to R&D, and less than $0.3m related to COGS |
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(H) Primarily relates to discrete tax items and the tax impact of intercompany transactions |
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*Numbers may not add up precisely due to rounding. | |||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED | ||||||||||||||||||
(U.S. dollars in millions, except per share amounts) | ||||||||||||||||||
Six Months Ended June 30, 2017 | Sales | Gross Profit |
Income from Operations |
Net Income | Diluted EPS | |||||||||||||
GAAP Financial Measures | $ 606.5 | $395.2 | $49.7 | $58.8 | $1.22 | |||||||||||||
Specified Items | ||||||||||||||||||
Merger and integration expenses (A) | 4.8 | 3.6 | 0.07 | |||||||||||||||
Restructuring expenses (B) | 11.3 | 9.1 | 0.19 | |||||||||||||||
Depreciations and amortization (C) | 2.6 | 26.4 | 19.8 | 0.41 | ||||||||||||||
Product remediation (D) | 0.9 | 0.9 | 0.7 | 0.01 | ||||||||||||||
Caisson acquisition (E) | 0.2 | 12.1 | (30.1 | ) | (0.62 | ) | ||||||||||||
Highlife impairment (F) | 13.0 | 0.27 | ||||||||||||||||
Other income / (expenses) & litigations (G) | 5.5 | 0.5 | 0.01 | |||||||||||||||
Equity compensation (H) | 0.1 | 8.6 | 7.1 | 0.15 | ||||||||||||||
Certain tax adjustments (I) | 0.4 | 0.01 | ||||||||||||||||
Adjusted financial measures | $606.5 | $399.0 | $119.1 | $82.9 | $1.72 | |||||||||||||
GAAP results for the six months ended June 30, 2017 include: | ||||||||||||||||||
(A) Merger and integration expenses related to our legacy companies |
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(B) Restructuring expenses related to recent organizational changes and the shutdown of our CP plant in China |
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(C) Includes depreciation and amortization associated with final purchase price accounting |
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(D) Costs related to the 3T Heater-Cooler remediation plan |
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(E) Impact of Caisson related acquisition costs, including $10.9m related to R&D and $1.0m related to merger and integration costs |
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(F) Impairment of investments and net receivables |
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(G) Legal expense related to 3T Heater-Cooler defense and other matters |
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(H) Includes $8.1m related to SG&A, $0.4m related to R&D, and $0.1m related to COGS |
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(I) Primarily relates to discrete tax items and the tax impact of intercompany transactions |
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Six Months Ended June 30, 2016 | Sales | Gross Profit |
Income from Operations |
Net Income | Diluted EPS | |||||||||||||
GAAP Financial Measures | $608.0 | $352.2 | ($14.2 | ) | ($31.4 | ) | ($0.64 | ) | ||||||||||
Specified Items | ||||||||||||||||||
Merger and integration expenses (A) | 13.0 | 11.1 | 0.23 | |||||||||||||||
Restructuring expenses (B) | 32.8 | 30.5 | 0.62 | |||||||||||||||
Depreciation and amortization (C) | 4.6 | 26.8 | 19.6 | 0.4 | ||||||||||||||
Product remediation (D) | 1.6 | 1.6 | 1.0 | 0.02 | ||||||||||||||
Other income / (expenses) & litigations (E) | 1.0 | (0.4) | (0.01) | |||||||||||||||
Impact of inventory step-up (F) | 35.0 | 35.0 | 24.0 | 0.49 | ||||||||||||||
Equity compensation (G) | 0.7 | 10.3 | 8.9 | 0.18 | ||||||||||||||
Certain tax adjustments (H) | 6.2 | 0.13 | ||||||||||||||||
Adjusted financial measures | $608.0 | $394.1 | $106.3 | $69.5 | $1.42 | |||||||||||||
GAAP results for the six months ended June 30, 2016 include: | ||||||||||||||||||
(A) Merger and integration expenses related to our legacy companies |
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(B) Restructuring expenses related to our legacy companies |
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(C) Includes depreciation and amortization associated with final purchase price accounting |
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(D) Costs related to the 3T Heater-Cooler remediation plan |
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(E) Includes a $4.7m reimbursement of damages related to 2012 earthquake in Mirandola (Italy), a $5.0m write-off of receivables from Greek distributors and other minor litigations |
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(F) Includes amortization of inventory step-up associated with final purchase price accounting |
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(G) Includes $9.0 m related to SG&A, $0.6m related to R&D, and less than $0.7m related to COGS |
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(H) Primarily relates to discrete tax items and the tax impact of intercompany transactions |
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*Numbers may not add up precisely due to rounding. | ||||||||||||||||||
LIVANOVA PLC AND SUBSIDIARIES | |||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(U.S. dollars in millions) | |||||||||
June 30, 2017 | December 31, 2016 | ||||||||
ASSETS | (Unaudited) | ||||||||
Current Assets: | |||||||||
Cash and cash equivalents | $42.7 | $39.8 | |||||||
Accounts receivable, net | 305.4 | 275.7 | |||||||
Inventories | 204.7 | 183.5 | |||||||
Prepaid and refundable taxes | 55.6 | 60.6 | |||||||
Assets held for sale | 13.9 | 4.5 | |||||||
Prepaid expenses and other current assets | 49.2 | 56.0 | |||||||
Total Current Assets | 671.4 | 620.1 | |||||||
Property, plant and equipment, net | 211.2 | 223.8 | |||||||
Goodwill | 763.5 | 691.7 | |||||||
Intangible assets, net | 713.2 | 609.2 | |||||||
Investments | 41.0 | 61.1 | |||||||
Deferred tax assets, net | 12.0 | 6.0 | |||||||
Other assets | 121.4 | 130.7 | |||||||
Total Assets | $2,553.7 | $2,342.6 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current Liabilities: | |||||||||
Current debt obligations | $55.8 | $47.6 | |||||||
Accounts payable | 105.1 | 93.0 | |||||||
Accrued liabilities | 90.0 | 75.6 | |||||||
Taxes payable | 22.7 | 22.3 | |||||||
Accrued employee compensation and related benefits liability | 68.9 | 78.3 | |||||||
Total Current Liabilities | 342.4 | 316.8 | |||||||
Long-term debt obligations | 69.7 | 75.2 | |||||||
Deferred income taxes liability | 169.2 | 172.5 | |||||||
Long-term employee compensation and related benefits liability | 33.1 | 31.4 | |||||||
Other long-term liabilities | 75.7 | 39.8 | |||||||
Total Liabilities | $690.2 | $635.7 | |||||||
Total Stockholders' Equity | 1,843.5 | 1,706.9 | |||||||
Total Liabilities and Stockholders' Equity | $2,553.7 | $2,342.6 | |||||||
* Numbers may not add up precisely due to rounding. |
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LIVANOVA PLC AND SUBSIDIARIES | |||||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW - UNAUDITED | |||||||||||
(U.S. dollars in millions) | |||||||||||
Six Months Ended June 30, | |||||||||||
2017 | 2016 | ||||||||||
Cash Flows from Operating Activities: | |||||||||||
Net Income (loss) | $58.8 | ($31.4 | ) | ||||||||
Non-cash items included in net income (loss): | |||||||||||
Depreciation | 18.0 | 19.5 | |||||||||
Amortization | 23.1 | 22.2 | |||||||||
Stock-based compensation | 8.6 | 10.8 | |||||||||
Amortization of income taxes from inter-company transfers | 17.8 | 8.7 | |||||||||
Deferred income tax benefit | (19.8 | ) | (12.8 | ) | |||||||
Losses from equity method investments | 18.5 | 6.3 | |||||||||
Gain on acquisition of Caisson Interventional, LLC | (39.4 | ) | |||||||||
Impairment of property, plant and equipment | 4.6 | ||||||||||
Other | 1.8 | 4.7 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable, net | (15.9 | ) | (27.2 | ) | |||||||
Inventories | (6.9 | ) | 24.7 | ||||||||
Other current and non-current assets | (13.9 | ) | (15.0 | ) | |||||||
Restructuring reserve | (11.1 | ) | 16.8 | ||||||||
Accounts payable and accrued current and non-current liabilities | (12.4 | ) | (14.6 | ) | |||||||
Net cash provided by operating activities | $31.6 | $12.6 | |||||||||
Cash Flow from Investing Activities: | |||||||||||
Purchases of Property, plan and equipment and other | (14.9 | ) | (16.7 | ) | |||||||
Acquisition of Caisson Interventional, LLC, net of cash acquired | (14.2 | ) | |||||||||
Proceeds from sale of cost method investment | 3.2 | ||||||||||
Proceeds from asset sales | 5.2 | ||||||||||
Purchase of short-term investments | (7.0 | ) | |||||||||
Maturities of short-term investments | 7.0 | ||||||||||
Other | (0.1 | ) | 0.6 | ||||||||
(20.9 | ) | (16.0 | ) | ||||||||
Cash Flow From Financing Activities: | |||||||||||
Change in short term borrowing, net | (12.8 | ) | (15.6 | ) | |||||||
Proceeds from short term borrowing (maturities greater than 90 days) | 20.0 | ||||||||||
Repayment of long-term debt obligations | (11.3 | ) | (11.1 | ) | |||||||
Loans to cost method and equity method investees | (6.8 | ) | (3.8 | ) | |||||||
Proceeds from exercise of stock options and SARs | 2.4 | 4.7 | |||||||||
Repayment of trade receivable advances | (21.6 | ) | |||||||||
Other | (1.7 | ) | 1.2 | ||||||||
Net cash used in financing activities | (10.2 | ) | (46.2 | ) | |||||||
Effect of exchange rate changes on cash and cash equivalents | 2.4 | 0.9 | |||||||||
Net increase (decrease) in cash and cash equivalents | 2.9 | (48.7 | ) | ||||||||
Cash and cash equivalents at beginning of period | 39.8 | 112.6 | |||||||||
Cash and cash equivalents at end of period | $42.7 | $63.9 | |||||||||
*Numbers may not add up precisely due to rounding. | |||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20170809005342/en/
Source:
LivaNova PLC Investor Relations and Media
Karen King, +1-281-228-7262
Vice President, Investor Relations & Corporate Communications
Fax: +1 (281) 218-9332
Corporate.Communications@LivaNova.com
For more information, please visit www.livanova.com