England and Wales (State or Other Jurisdiction of Incorporation) | 001-37599 (Commission File Number) | 98-1268150 (IRS Employer Identification No.) |
Emerging growth company | o |
o |
Exhibit 99.1 | Amended Press Release issued by LivaNova PLC dated August 9, 2017 |
LivaNova PLC | |
Date: August 9, 2017 | By:/s/ Catherine Moroz |
Name: Catherine Moroz | |
Title: Company Secretary | |
Exhibit No. | Description | |
99.1 | Amended Press Release issued by LivaNova PLC dated August 9, 2017 |
$ in millions | % Change | Constant Currency % Change | ||||||||
Business Franchise / Product Line: | 2016 | |||||||||
Cardiopulmonary | $124.0 | 0.1 | % | 1.4 | % | |||||
Heart Valves | 37.1 | (7.1 | %) | (5.7 | %) | |||||
Cardiac Surgery | 161.1 | (1.5 | %) | (0.2 | %) | |||||
Cardiac Rhythm Management | 69.6 | (5.8 | %) | (3.6 | %) | |||||
Neuromodulation | 90.0 | 7.7 | % | 8.3 | % | |||||
Other | 0.4 | — | % | — | % | |||||
Total Net Sales | $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 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 |
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 | |||||||||||||
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 | |||||||||||||
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 | ||||||||||||||||||||||
(B) | Restructuring expenses related to recent organizational changes | ||||||||||||||||||||||
(C) | Includes depreciation and amortization associated with final purchase price accounting | ||||||||||||||||||||||
(D) | Costs related to the 3T Heater-Cooler remediation plan | ||||||||||||||||||||||
(E) | Impact of Caisson related acquisition costs, including $10.9m related to R&D and $1.0m related to merger and integration costs | ||||||||||||||||||||||
(F) | Impairment of investments and net receivables | ||||||||||||||||||||||
(G) | Legal expense related to 3T Heater-Cooler defense and other matters | ||||||||||||||||||||||
(H) | Includes $4.4m related to SG&A, $0.3m related to R&D, and less than $0.1m related to COGS | ||||||||||||||||||||||
(I) | Primarily relates to discrete tax items and the tax impact of intercompany transactions | ||||||||||||||||||||||
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 | ||||||||||||||||||||||
(B) | Restructuring expenses related to our legacy companies | ||||||||||||||||||||||
(C) | Includes depreciation and amortization associated with final purchase price accounting | ||||||||||||||||||||||
(D) | Costs related to the 3T Heater-Cooler remediation plan | ||||||||||||||||||||||
(E) | Includes a $4.7m reimbursement of damages related to 2012 earthquake in Mirandola (Italy), a $ 5.0 million write-off of receivables from Greek distributors and other minor litigations | ||||||||||||||||||||||
(F) | Includes amortization of inventory step-up associated with final purchase price accounting | ||||||||||||||||||||||
(G) | Includes $3.6m related to SG&A, $0.3m related to R&D, and less than $0.3m related to COGS | ||||||||||||||||||||||
(H) | Primarily relates to discrete tax items and the tax impact of intercompany transactions | ||||||||||||||||||||||
* | 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 | |||||||||||||||||||||
(B) | Restructuring expenses related to recent organizational changes and the shutdown of our CP plant in China | |||||||||||||||||||||
(C) | Includes depreciation and amortization associated with final purchase price accounting | |||||||||||||||||||||
(D) | Costs related to the 3T Heater-Cooler remediation plan | |||||||||||||||||||||
(E) | Impact of Caisson related acquisition costs, including $10.9m related to R&D and $1.0m related to merger and integration costs | |||||||||||||||||||||
(F) | Impairment of investments and net receivables | |||||||||||||||||||||
(G) | Legal expense related to 3T Heater-Cooler defense and other matters | |||||||||||||||||||||
(H) | Includes $8.1m related to SG&A, $0.4m related to R&D, and $0.1m related to COGS | |||||||||||||||||||||
(I) | Primarily relates to discrete tax items and the tax impact of intercompany transactions | |||||||||||||||||||||
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 | (0.40) | (0.010) | |||||||||||||||||||
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 | |||||||||||||||||||||
(B) | Restructuring expenses related to our legacy companies | |||||||||||||||||||||
(C) | Includes depreciation and amortization associated with final purchase price accounting | |||||||||||||||||||||
(D) | Costs related to the 3T Heater-Cooler remediation plan | |||||||||||||||||||||
(E) | Includes a $4.7m reimbursement of damages related to 2012 earthquake in Mirandola (Italy), a $ 5.0 million write-off of receivables from Greek distributors and other minor litigations | |||||||||||||||||||||
(F) | Includes amortization of inventory step-up associated with final purchase price accounting | |||||||||||||||||||||
(G) | Includes $9.0 m related to SG&A, $0.6m related to R&D, and less than $0.7m related to COGS | |||||||||||||||||||||
(H) | Primarily relates to discrete tax items and the tax impact of intercompany transactions | |||||||||||||||||||||
* | 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 | $2,533.7 | $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 | $2,533.7 | $2,342.6 |
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. |