LONDON, Nov. 02, 2016 (GLOBE NEWSWIRE) -- LivaNova
PLC (NASDAQ:LIVN) (LSE:LIVN) ("LivaNova" or the "Company"), a
market-leading medical technology and innovation company, today
reported results for the third quarter ended September 30,
2016.
For the third quarter of 2016,
worldwide sales were $295 million,
an increase of 3.2 percent on a
reported basis and an increase of 2.4 percent on a constant-currency
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, 2016
For the three business franchises, sales were as follows:
Cardiac
Surgery
Cardiac Surgery sales, which include cardiopulmonary products and
heart valves, were $149 million,
representing a 0.4 percent decrease
versus the comparable period in 2015. The increase in
cardiopulmonary was more than offset by the decline in heart
valves.
Sales in cardiopulmonary products
were $115 million, up slightly from
the third quarter of 2015. A decline in the Company's 3T
Heater-Cooler devices, as a result of import restrictions in the
U.S. and the timing of heart-lung machine orders in Europe, were
more than offset by several items including strong demand for
oxygenators, particularly in emerging markets as well as Japan and
Australia.
Heart valve sales, including
tissue and mechanical heart valves, were $34 million, a decrease of 2.4 percent compared to the same period the
previous year. Strength in Perceval in both the U.S. and
Europe was more than offset by weakness in mechanical valves,
primarily in China, and traditional tissue valves
globally.
Cardiac Rhythm Management
(CRM)
CRM sales for the period totaled $57
million, an increase of 3.6 percent
as compared to the third quarter of 2015. The increase was
primarily due to positive performance of the Company's newest
high-voltage device PLATINIUM and favorable year-over-year results
with its KORA 250 pacemaker.
Neuromodulation
Neuromodulation sales were $90
million in the third quarter, an increase of 6.8 percent over the prior year period, driven
primarily by continued adoption of the Company's newest VNS Therapy
device AspireSR and strong new patient growth in the U.S.
Financial
Performance
On a U.S. GAAP basis, third quarter 2016 income from operations was
$23 million compared to
$22 million in the second quarter of
2016. Adjusted income from 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
Projections
The Company is modifying its sales guidance and narrowing the range
for earnings per share guidance for full year 2016.
The Company now expects revenue
growth on a constant-currency basis to be in the 1 to 2 percent range, and is narrowing the
projected range for adjusted diluted earnings per share (EPS) to
$2.95 to $3.05.
Webcast and Conference Call
Instructions
The conference call will be available to interested parties through
a live audio webcast commencing at 8:00 a.m. Central time (9:00
a.m. Eastern time, 1:00 p.m. UK time) and accessible through the
Investor Relations section of the LivaNova corporate website at
www.livanova.com. To listen to the conference call live by
telephone, dial (844) 239-5285 (if dialing from within the U.S.) or
(512) 961-6524 (if dialing from outside the U.S.). The
conference ID is 87431578.
Within 24 hours of the webcast, a
replay will be available under the "Events & Presentations"
section of the Investor Relations portion of the LivaNova website,
where it will be archived and accessible for approximately 12
months.
1 Constant
currency growth measures the change in sales between the current
and prior year periods using average exchange rates in effect
during the applicable prior year period.
2 Adjusted
measures are based on selected non-GAAP operating results and
exclude certain specified items as described later in this press
release and the attached schedules.
3 See the
discussion of "Financial Alignment, Combined Sales & Operating
Results, Business Unit Structure and Constant Currency"
below. The sales results presented are unaudited.
4 Cardiac
Rhythm Management.
5 Adjusted
measures exclude certain specified items as described later in this
press release and the attached schedules. Adjusted measures
are based on selected non-GAAP operating results highlights in the
2015 Annual and Fourth Quarter Financial Results published on
February 24, 2016.
About
LivaNova
LivaNova PLC is a global medical technology company formed by the
merger of Sorin S.p.A, a leader in the treatment of cardiovascular
diseases, and Cyberonics Inc., a medical device company with core
expertise in Neuromodulation. LivaNova transforms medical
innovation into meaningful solutions for the benefit of patients,
healthcare professionals, and healthcare systems. The Company
employs approximately 4,600 employees worldwide and is
headquartered in London, U.K.
LivaNova is listed on NASDAQ and
is admitted to the standard listing segment of the Official List of
the UK's Financial Conduct Authority and to trading on the London
Stock Exchange (LSE) under the ticker symbol "LIVN".
Financial
Alignment, Combined Sales & Operating Results, Business
Franchise Structure and Constant Currency
Cyberonics, the predecessor company to LivaNova, previously
reported on a 52/53 week fiscal year calendar ending in
April. With the formal change in the fiscal calendar to a
fiscal year ended December 31, the historical Neuromodulation
business franchise sales have been aligned to correspond as closely
as possible to calendar quarters.
Although LivaNova was a shell
company with no business operations until the closing date of the
merger on October 19, 2015, the sales results disclosed for periods
up to and beyond that date are being provided on a combined basis,
a non-GAAP formulation that combines the results of legacy Sorin
and Cyberonics for the periods completed prior to the merger and
periods that include results both before and after the closing of
the merger. The Company believes that presenting the results
of Sorin and Cyberonics in such a manner offers a meaningful
representation to investors of the combined company's sales for
these periods.
Non-GAAP operating results,
unaudited, have been included for 2015. These results have
been prepared by management and adjusted for non-GAAP items as if
the merger had occurred on January 1, 2015 but should not be
considered as an alternative to Proforma Income Statements to be
provided in accordance with SEC filings. Certain adjustments
to legacy Sorin operating results have occurred in order to present
the results in U.S. dollars and to align these results as closely
as possible to the presentation of LivaNova financial
results. Company management uses these measurements as aids
in monitoring the Company's ongoing financial performance from
quarter to quarter and year to year on a regular basis and for
benchmarking against other medical technology companies.
Management believes that the presentation of these results provides
a meaningful representation of the combined company's operating
results for the periods presented.
The sales and operating results
for legacy Cyberonics for the quarters ended March 31, June 30 and
September 30 were aligned to provide comparative information. The
actual periods ended on March 27, June 26 and September 25
respectively.
LivaNova (as the successor to
Sorin and Cyberonics on a combined basis) operates under a Business
Franchise structure with Cardiac Surgery, CRM and Neuromodulation
accounting for substantially all of the sales during the periods
referred to herein. The combined company also operates a New
Ventures group, dedicated to developing new technologies.
Use of Non-GAAP
Financial Measures
In this press release, management has disclosed financial
measurements that present financial information not necessarily in
accordance with Generally Accepted Accounting Principles (GAAP).
Company management uses these measurements as aids in monitoring
the Company's ongoing financial performance from quarter to quarter
and year to year on a regular basis and for benchmarking against
other medical technology companies. Non-GAAP financial measures
used by the Company may be calculated differently from, and
therefore may not be comparable to, similarly-titled measures used
by other companies. These non-GAAP financial measures should
be considered along with, but not as alternatives to, the operating
performance measure as prescribed by GAAP.
Unless otherwise noted, all sales
growth rates in this release reflect comparable, constant currency
growth. Management believes that referring to comparable, constant
currency growth is the most useful way to evaluate the sales
performance of LivaNova and to compare the sales performance of
current periods to prior periods on a consistent basis. Constant
currency growth, a non-GAAP financial measure, measures the change
in sales between current and prior year periods using average
exchange rates in effect during the applicable prior year
period.
Safe harbor
statement
This press release contains forward-looking statements within the
meaning of Section 27A of the United States Securities Act of 1933,
as amended, and Section 21E of the United States Securities
Exchange Act of 1934, as amended. Forward-looking statements
are not historical facts but are based on certain assumptions of
management and describe the Company's future plans, strategies and
expectations. Forward-looking statements can generally be
identified by the use of forward-looking terminology, including,
but not limited to, "may," "could," "seek," "guidance," "predict,"
"potential," "likely," "believe," "will," "expect," "anticipate,"
"estimate," "plan," "intend," "forecast," or variations of these
terms and similar expressions, or the negative of these terms or
similar expressions. Forward-looking statements contained in
this press release are based on information presently available to
LivaNova and assumptions that the Company believes to be
reasonable, but are inherently uncertain. As a result, the
Company's actual results, performance or achievements may differ
materially from those expressed or implied by these forward-looking
statements, which are not guarantees of future performance and
involve known and unknown risks, uncertainties and other factors
that are, in some cases, beyond the Company's control.
Investors are cautioned that all such statements involve risks and
uncertainties, including without limitation, statements concerning
developing novel opportunities in neuromodulation, heart failure,
sleep apnea and percutaneous mitral valve, creating new innovative
solutions that benefit patients, healthcare professionals, and
healthcare systems, and building significant shareholder
value. Important factors that may cause actual results to
differ include, but are not limited to: (i) risks that the
legacy businesses of Cyberonics, Inc. and Sorin S.p.A. (together,
the "combined companies") will not be integrated successfully or
that the combined companies will not realize estimated cost
savings, value of certain tax assets, synergies and growth, or that
such benefits may take longer to realize than expected; (ii) the
inability of LivaNova to meet expectations regarding the timing,
completion and accounting of tax treatments; (iii) risks relating
to unanticipated costs of integration, including operating costs,
customer loss or business disruption being greater than expected;
(iv) organizational and governance structure; (v) reductions in
customer spending, a slowdown in customer payments and changes in
customer demand for products and services; (vi) unanticipated
changes relating to competitive factors in the industries in which
LivaNova operates; (vii) the ability to hire and retain key
personnel; (viii) the ability to attract new customers and retain
existing customers in the manner anticipated; (ix) the reliance on
and integration of information technology systems; (x) changes in
legislation or governmental regulations affecting LivaNova; (xi)
international, national or local economic, social or political
conditions that could adversely affect LivaNova, its partners or
its customers; (xii) conditions in the credit markets; (xiii)
business and other financial risks inherent to the industries in
which LivaNova operates; (xiv) risks associated with assumptions
made in connection with critical accounting estimates and legal
proceedings; (xv) LivaNova's international operations, which are
subject to the risks of currency fluctuations and foreign exchange
controls; (xvi) and the potential of international unrest, economic
downturn or effects of currencies, tax assessments, tax
adjustments, anticipated tax rates, raw material costs or
availability, benefit or retirement plan costs, or other regulatory
compliance costs. The foregoing list of factors is not
exhaustive. You should carefully consider the foregoing
factors and the other risks and uncertainties that affect the
Company's business, including those described in the "Risk Factors"
section of Annual Reports on Form 10-K, Quarterly Reports on Form
10-Q, Current Reports on Form 8-K, the Registration Statement on
Form S-4 and other documents filed from time to time with the
United States Securities and Exchange Commission by LivaNova.
LivaNova does not give any assurance (1) that LivaNova will achieve
its expectations, or (2) concerning any result or the timing
thereof, in each case, with respect to any regulatory action,
administrative proceedings, government investigations, litigation,
warning letters, consent decree, cost reductions, business
strategies, earnings or revenue trends or future financial
results.
All information in this press
release is as of the date of its release. The Company does
not undertake or assume any obligation to update publicly any of
the forward-looking statements in this press release to reflect
actual results, new information or future events, changes in
assumptions or changes in other factors affecting forward-looking
statements, except to the extent required by applicable law.
If we update one or more forward-looking statements, no inference
should be drawn that we will make additional updates with respect
to those or other forward-looking statements. We caution you
not to place undue reliance on any forward-looking statements,
which are made only as of the date of this press release.
LIVANOVA
PLC
QUARTERLY SALES TREND BY BUSINESS
UNIT
U.S. dollar in Millions, CONSTANT
CURRENCY
|
|
|
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 UNIT
U.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
PLC
QUARTERLY SALES TREND BY
REGION
U.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
PLC
QUARTERLY SALES TREND BY
REGION
U.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
PLC
QUARTERLY SALES
U.S. dollar in Millions
|
|
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 |
% |
|
*The sales results presented are unaudited.
Numbers may not add due to rounding.
LIVANOVA
PLC
QUARTERLY SALES
U.S. dollar in Millions
|
|
Nine Months Ended September 30,
2016 |
|
|
|
|
|
|
|
|
|
|
|
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 |
% |
|
*The sales results presented are unaudited.
Numbers may not add due to rounding.
LIVANOVA PLC AND
SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(LOSS)
U.S. dollars in Millions, except share and
per share amounts
|
|
|
Three Months
Ended September 30,
2016 |
|
Net sales |
|
$ |
|
295.3 |
|
|
Cost of sales |
|
|
|
106.5 |
|
|
Gross profit |
|
|
|
188.8 |
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
Selling, general and
administrative |
|
|
|
107.6 |
|
|
Research and development |
|
|
|
32.2 |
|
|
Merger and integration
expense |
|
|
|
7.6 |
|
|
Restructuring expense |
|
|
|
4.4 |
|
|
Amortization of
intangible |
|
|
|
11.8 |
|
|
Litigation related
expenses |
|
|
|
2.4 |
|
|
Total operating expenses |
|
|
|
165.8 |
|
|
Income (loss) from
operations |
|
|
|
23.0 |
|
|
|
|
|
|
|
Other Income |
|
|
|
|
Interest (income) expense |
|
|
|
2.9 |
|
|
Foreign exchange and other -
(gain) loss |
|
|
|
(1.2 |
) |
|
Income (loss) before
income taxes |
|
|
|
21.3 |
|
|
|
|
|
|
|
Loss from equity method
investments |
|
|
|
13.1 |
|
|
Income tax expense
(benefit) |
|
|
|
9.7 |
|
|
Net (loss) income |
|
$ |
|
(1.6 |
) |
|
|
|
|
|
|
Earnings (loss) per common
share: |
|
|
|
|
Basic |
|
$ |
|
(0.03 |
) |
|
Diluted |
|
$ |
|
(0.03 |
) |
|
|
|
|
|
|
Weighted average common shares
outstanding (in Millions) |
|
|
|
|
Basic |
|
|
|
49.1 |
|
|
Diluted |
|
|
|
49.1 |
|
|
|
|
|
|
|
Adjusted Gross
Profit(1) |
|
$ |
|
190.4 |
|
|
Adjusted SG&A(1) |
|
|
|
104.0 |
|
|
Adjusted R&D(1) |
|
|
|
31.2 |
|
|
Adjusted Income from
Operations(1) |
|
|
|
55.2 |
|
|
Adjusted Net Income(1) |
|
|
|
38.3 |
|
|
Adjusted Diluted Earnings Per
Share(1) |
|
$ |
|
0.78 |
|
|
Statistics (as a % of net sales, except for
income tax rate) |
|
|
|
|
|
GAAP Three |
|
|
|
|
|
Months Ended
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 |
|
|
(1)Adjusted financial
measures are Non-GAAP measures and exclude specified items as
described and reconciled to compare GAAP financial measures in the
Reconciliation of GAAP to non-GAAP Financial Measures contained in
the press release.
*Numbers may not add due to rounding. n/a is not applicable;
there is no applicable adjusted net income or tax rate reported for
3Q15.
LIVANOVA PLC AND
SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(LOSS)
U.S. dollars in Millions, except share and
per share amounts
|
|
|
Nine Months
Ended September 30,
2016 |
|
Net sales |
|
$ |
903.3 |
|
Cost of sales |
|
|
360.7 |
|
Gross profit |
|
|
542.6 |
|
|
|
|
|
|
Operating expenses |
|
|
|
|
Selling, general and
administrative |
|
|
343.3 |
|
Research and development |
|
|
94.1 |
|
Merger and integration
expense |
|
|
20.5 |
|
Restructuring expense |
|
|
37.2 |
|
Amortization of
intangible |
|
|
34.0 |
|
Litigation related
expenses |
|
|
4.7 |
|
Total operating expenses |
|
|
533.8 |
|
Income (loss) from
operations |
|
|
8.8 |
|
|
|
|
|
|
Other Income |
|
|
|
|
Interest income (expense) |
|
|
5.5 |
|
Foreign exchange and other -
(gain) loss |
|
|
0.0 |
|
Income (loss) before
income taxes |
|
|
3.3 |
|
|
|
|
|
|
Loss from equity method
investments |
|
|
19.4 |
|
Income tax expense
(benefit) |
|
|
16.9 |
|
Net (loss) income |
|
$ |
(33.0 |
) |
|
|
|
|
|
Earnings (loss) per common
share: |
|
|
|
|
Basic |
|
$ |
(0.67 |
) |
Diluted |
|
$ |
(0.67 |
) |
|
|
|
|
|
Weighted average common shares
outstanding (in Millions) |
|
|
|
|
Basic |
|
|
49.0 |
|
Diluted |
|
|
49.0 |
|
|
|
|
|
|
Adjusted Gross
Profit(1) |
|
$ |
584.5 |
|
Adjusted SG&A(1) |
|
|
330.5 |
|
Adjusted R&D(1) |
|
|
92.5 |
|
Adjusted Income (loss) from
Operations(1) |
|
|
161.5 |
|
Adjusted Net Income (loss)
(1) |
|
|
107.8 |
|
Adjusted Diluted Earnings Per
Share(1) |
|
$ |
2.20 |
|
Statistics (as a % of net sales, except for
income tax rate) |
|
|
|
|
|
GAAP Nine |
|
|
|
|
|
Months Ended
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 |
|
(1)Adjusted financial
measures are Non-GAAP measures and exclude specified items as
described and reconciled to compare GAAP financial measures in the
Reconciliation of GAAP to non-GAAP Financial Measures contained in
the press release.
*Numbers may not add due to rounding. n/a is not applicable;
there is no applicable adjusted net income or tax rate reported for
3Q15.
LIVANOVA PLC AND
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
U.S. dollars in Millions, except share and
per share amounts
Three Months 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
SHEETS
U.S. dollars in Millions
|
|
|
September 30,
2016 |
|
|
|
December 31,
2015 |
|
|
|
(Unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
63.6 |
|
|
$ |
112.6 |
Short-term investments |
|
|
0.0 |
|
|
|
7.0 |
Accounts receivable, net |
|
|
284.3 |
|
|
|
272.4 |
Inventories |
|
|
197.6 |
|
|
|
212.5 |
Prepaid taxes |
|
|
49.9 |
|
|
|
42.4 |
Prepaid expenses and other
current assets |
|
|
51.9 |
|
|
|
26.6 |
Total Current Assets |
|
|
647.3 |
|
|
|
673.4 |
Property, plant and equipment,
net |
|
|
245.1 |
|
|
|
244.6 |
Goodwill |
|
|
731.1 |
|
|
|
745.4 |
Intangible assets, net |
|
|
650.4 |
|
|
|
658.9 |
Investments |
|
|
67.4 |
|
|
|
77.5 |
Deferred tax assets, net |
|
|
6.0 |
|
|
|
153.5 |
Other assets |
|
|
149.6 |
|
|
|
5.4 |
Total Assets |
|
$ |
2,497.0 |
|
|
$ |
2,558.7 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
Current debt obligations |
|
$ |
53.6 |
|
|
$ |
82.5 |
Accounts payable |
|
|
104.5 |
|
|
|
109.6 |
Accrued liabilities |
|
|
62.0 |
|
|
|
63.0 |
Income taxes payable |
|
|
16.7 |
|
|
|
26.7 |
Accrued employee compensation
and related benefits liability |
|
|
80.0 |
|
|
|
77.3 |
Total Current Liabilities |
|
|
316.9 |
|
|
|
359.1 |
Long-term debt
obligations |
|
|
90.9 |
|
|
|
91.8 |
Deferred income taxes
liability |
|
|
213.1 |
|
|
|
235.5 |
Long-term employee
compensation and related benefits liability |
|
|
32.0 |
|
|
|
31.1 |
Other long-term
liabilities |
|
|
27.2 |
|
|
|
29.7 |
Total Liabilities |
|
|
680.1 |
|
|
|
747.3 |
Total Stockholders'
Equity |
|
|
1,816.9 |
|
|
|
1,811.5 |
Total Liabilities and
Stockholders' Equity |
|
$ |
2,497.0 |
|
|
$ |
2,558.7 |
*Numbers may not add due to rounding.
LIVANOVA PLC AND
SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH
FLOW
U.S. dollars in Millions
(Unaudited)
|
|
|
Nine Months 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 |
|
|
*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