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 basis1, 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
adjusted2 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,
PercevalTM sutureless heart valves, INSPIRETM oxygenators, KORA
250TM pacemakers and PLATINIUMTM 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 results3 for the third quarter of 2016 compared to
the same period in 2015:
|
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 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,
2016For 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.
NeuromodulationNeuromodulation
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 PerformanceOn 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
operations5 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 ProjectionsThe 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
InstructionsThe 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 LivaNovaLivaNova 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
MeasuresIn 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 PLCQUARTERLY SALES TREND BY
BUSINESS UNITU.S. dollar in Millions, CONSTANT
CURRENCY
|
|
|
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 |
% |
|
QUARTERLY SALES TREND BY BUSINESS
UNITU.S. dollar in Millions, REPORTED
|
|
|
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 |
% |
|
*Numbers may not add due to rounding.
LIVANOVA PLCQUARTERLY SALES TREND BY
REGIONU.S. dollar in Millions, CONSTANT
CURRENCY
|
|
|
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 |
% |
|
*Numbers may not add due to rounding.
LIVANOVA PLCQUARTERLY SALES TREND BY
REGIONU.S. dollar in Millions,
REPORTED
|
|
|
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 |
% |
|
*Numbers may not add due to rounding.
LIVANOVA PLCQUARTERLY SALES
U.S. dollar in Millions
|
|
Three Months Ended September 30,
2016 |
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
% Change
atActualCurrency
Rates |
|
|
|
% Change
atConstantCurrency
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 PLCQUARTERLY SALES
U.S. dollar in Millions
|
|
Nine Months Ended September 30,
2016 |
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
% Change
atActualCurrency
Rates |
|
|
|
% Change
atConstantCurrency
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
SUBSIDIARIESCONSOLIDATED STATEMENT OF INCOME
(LOSS)U.S. dollars in Millions, except share and
per share amounts
|
|
|
Three MonthsEnded 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 EndedSeptember 30, |
|
Adjusted(1) Three Months EndedSeptember 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
SUBSIDIARIESCONSOLIDATED STATEMENT OF INCOME
(LOSS)U.S. dollars in Millions, except share and
per share amounts
|
|
|
Nine MonthsEnded 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 EndedSeptember 30, |
|
Adjusted(1) Nine Months EndedSeptember 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
SUBSIDIARIESRECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURESU.S. dollars in Millions, except
share and per share amounts
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 |
|
|
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 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 |
|
|
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 SHEETSU.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
SUBSIDIARIESCONSOLIDATED STATEMENT OF CASH
FLOW U.S. dollars in
Millions(Unaudited)
|
|
|
Nine Months EndedSeptember 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 |
|
|
*Numbers may not add due to rounding.
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
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