England and Wales
(State or Other Jurisdiction
of Incorporation)
|
|
001-37599
(Commission
File Number)
|
|
98-1268150
(IRS Employer
Identification No.)
|
99.1
|
Press Release issued by LivaNova PLC dated November 2, 2016
|
LivaNova PLC
|
|
Date: November 2, 2016
|
By:/s/ Catherine Moroz
|
Name: Catherine Moroz
|
|
Title: Deputy Company Secretary
|
|
Exhibit
|
Description
|
99.1
|
Press Release issued by LivaNova PLC dated November 2, 2016
|
Three Months Ended September 30,
|
% Change
|
Constant Currency % Change
|
||
In $ millions
|
2016
|
2015
|
||
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%)
|
CRM4
|
$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 more information, please visit www.livanova.com, or contact:
Investor Relations and Media
Karen King
Vice President, Investor Relations & Corporate Communications Phone: +1 (281) 228-7262 Fax: +1 (281) 218-9332 e-mail: corporate.communications@livanova.com |
1Q15
|
2Q15
|
3Q15
|
4Q15
|
FY15
|
1Q16
|
2Q16
|
3Q16
|
3Q16 vs. 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%
|
1Q15
|
2Q15
|
3Q15
|
4Q15
|
FY15
|
1Q16
|
2Q16
|
3Q16
|
3Q16 vs. 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%
|
1Q15
|
2Q15
|
3Q15
|
4Q15
|
FY15
|
1Q16
|
2Q16
|
3Q16
|
3Q16 vs. 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%
|
1Q15
|
2Q15
|
3Q15
|
4Q15
|
FY15
|
1Q16
|
2Q16
|
3Q16
|
3Q16 vs. 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%
|
Three Months Ended September 30, 2016
|
||||||||||||||||
2016
|
2015
|
% Change at
Actual
Currency Rates
|
% Change at
Constant
Currency 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%
|
Nine Months Ended September 30, 2016
|
||||||||||||||||
2016
|
2015
|
% Change at
Actual
Currency Rates
|
% Change at
Constant
Currency 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%
|
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
September 30,
|
Adjusted(1) Three Months Ended
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
|
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
September 30,
|
Adjusted(1) Nine Months Ended
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
|
Three Months Ended September 30, 2016
|
Sales
|
Gross Profit
|
Income From Operations
|
Net Income (loss)
|
Diluted 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
|
||||||||||||||||
Write-off 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
|
GAAP results for the three months ended Setember 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)$1.3m expense primarily associated with litigation related to 3T Heater-Cooler devices; $0.9 Million related to other litigations.
|
|
(E)$9.2m 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 restrucring initiatives and IP migration.
|
Nine Months Ended September 30, 2016
|
Sales
|
Gross Profit
|
Income From Operations
|
Net Income (loss)
|
Diluted 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
|
|||||||||||||||
Write-off of investment in minorities
|
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
|
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)$9.2m 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 restrucring initiatives and IP migration.
|
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
|
Nine Months Ended
September 30, 2016
|
||||
Cash Flows From Operating Activities
|
||||
Net loss
|
$
|
(33.0
|
)
|
|
Non-cash items included in net loss:
|
||||
Depreciation
|
30.2
|
|||
Amortization
|
34.0
|
|||
Stock-based compensation
|
15.6
|
|||
Deferred income tax expense (benefit)
|
(10.2
|
)
|
||
Loss from equity method investments
|
19.4
|
|||
Other
|
8.8
|
|||
Changes in operating assets and liabilities
|
||||
Accounts receivable
|
(11.0
|
)
|
||
Inventories
|
20.6
|
|||
Other current and non-current assets
|
(23.1
|
)
|
||
Restructuring reserve
|
15.0
|
|||
Accounts payable and accrued current and non-current liabilities
|
(16.7
|
)
|
||
Net cash provided by operating activities
|
49.4
|
|||
Cash Flow From Investing Activities
|
||||
Purchase of short-term investments
|
(7.1
|
)
|
||
Maturities of short-term investments
|
14.1
|
|||
Purchase of property, plant and equipment and other
|
(26.8
|
)
|
||
Intangible assets purchases
|
(1.9
|
)
|
||
Purchase of Equity and Cost Method Investments
|
(8.1
|
)
|
||
Net cash used in investing activities
|
(29.8
|
)
|
||
Cash Flows From Financing Activities:
|
||||
Short-term borrowing
|
6.1
|
|||
Short-term repayments
|
(39.9
|
)
|
||
Proceeds from long-term debt obligations
|
8.0
|
|||
Repayment of long-term debt obligations
|
(11.4
|
)
|
||
Repayment of trade receivable advances
|
(23.8
|
)
|
||
Loans to equity method investees
|
(6.6
|
)
|
||
Proceeds from exercise of options for common stock
|
7.9
|
|||
Realized excess tax benefits - stock-based compensation
|
1.2
|
|||
Purchase of ordinary stock
|
(11.1
|
)
|
||
Net cash used in financing activities
|
(69.6
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
1.0
|
|||
Net decrease in cash and cash equivalents
|
(49.0
|
)
|
||
Cash and cash equivalents at beginning of period
|
112.6
|
|||
Cash and cash equivalents at end of period
|
$
|
63.6
|