[August 09, 2017] |
|
LivaNova Reports Second Quarter 2017 Results
LivaNova PLC (NASDAQ:LIVN) ("LivaNova" or the "Company"), a
market-leading medical technology and innovation company, today reported
results for the quarter ended June 30, 2017.
For the second quarter of 2017, worldwide sales were $321.4 million, an
increase of 0.1 percent on a reported basis and an increase of 1.4
percent on a constant currency basis, as compared to the same quarter of
the previous year. On the basis of U.S. Generally Accepted Accounting
Principles (GAAP), second quarter 2017 earnings per share were $0.98.
Second quarter 2017 adjusted diluted earnings per share were $1.01.
"We made progress in many areas of our business during the second
quarter, including strong margin and earnings performance," said Damien
McDonald, Chief Executive Officer. "We hired a new Chief Financial
Officer and a new General Counsel, strengthening LivaNova's executive
leadership team. In June, the U.S. FDA approved our VNS Therapy®
device for use in patients as young as four years of age with partial
onset seizures that are refractory to antiepileptic medications. This
makes VNS Therapy the first and only device approved by the FDA for
drug-resistant epilepsy for this pediatric population. This approval
will allow us to reach a new patient pool and have a meaningful impact
on their quality of life. We also advanced our efforts to integrate the
Caisson acquisition, which is on schedule and going extremely well.
These steps further enhance our competitive industry position,
delivering both quality patient care and long-term shareholder value."
Second Quarter 2017 Results
Worldwide sales for the second quarter were $321.4 million, up 1.4
percent on a constant currency basis compared to the second quarter of
2016. The following table highlights worldwide sales for the second
quarter of 2017 by Business Franchise:
|
$ in millions
|
|
|
|
|
Three months ended June 30,
|
|
|
% Change
|
|
|
Constant
Currency %
Change
|
Business Franchise / Product Line:
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
Cardiopulmonary
|
|
|
|
|
$124.1
|
|
|
$124.0
|
|
|
0.1
|
%
|
|
|
1.4
|
%
|
Heart Valves
|
|
|
|
|
34.4
|
|
|
37.1
|
|
|
(7.1
|
%)
|
|
|
(5.7
|
%)
|
Cardiac Surgery
|
|
|
|
|
158.6
|
|
|
161.1
|
|
|
(1.5
|
%)
|
|
|
(0.2
|
%)
|
Cardiac Rhythm Management
|
|
|
|
|
65.5
|
|
|
69.6
|
|
|
(5.8
|
%)
|
|
|
(3.6
|
%)
|
Neuromodulation
|
|
|
|
|
97.0
|
|
|
90.0
|
|
|
7.7
|
%
|
|
|
8.3
|
%
|
Other
|
|
|
|
|
0.2
|
|
|
0.4
|
|
|
-
|
%
|
|
|
-
|
%
|
Total Net Sales
|
|
|
|
|
$321.4
|
|
|
$321.0
|
|
|
0.1
|
%
|
|
|
1.4
|
%
|
-
Numbers may not add up precisely due to rounding. Constant currency %
change is considered a non-GAAP metric.
For discussion purposes, all sales growth rates below reflect
comparable, constant currency growth. Constant currency growth accounts
for the impact from fluctuations in the various currencies in which the
Company operates as compared to reported growth.
Cardiac Surgery
Cardiac Surgery sales, which include cardiopulmonary products and heart
valves, were $159 million, representing a 0.2 percent decrease
versus the comparable period in 2016.
Sales in cardiopulmonary products were $124 million, representing a 1.4
percent increase versus the second quarter of 2016. This was primarily
due to strength in our heart-lung machines as we were able to upgrade a
significant number of customers from older machines to our current S5
device.
Heart valve sales, including tissue and mechanical heart valves, were
$34 million, a decrease of 5.7 percent compared to the same
period the previous year. Growth in tissue valves, driven by demand for
the Perceval® sutureless tissue valve in the U.S., was more
than offset by softness in Europe and declines in mechanical heart
valves globally.
Cardiac Rhythm Management (CRM)
CRM sales for the period totaled $66 million, a decrease of 3.6 percent
as compared to the second quarter of 2016. Implantable Cardiac
Defibrillators (ICDs) declined in the quarter due to a difficult
year-over-year comparison, as the first half of 2016 marked the initial
launch roll-out of the PLATINIUMTM ICD. This was partially
offset by growth for PLATINIUMTM Cardiac Resynchronization
Therapy devices (CRT-Ds) in Europe and continued demand for KORA 250TM
pacemakers in Japan.
Neuromodulation
Neuromodulation sales were $97 million in the second quarter,
representing an 8.3 percent increase versus the second quarter of 2016.
The AspireSR generator continued to perform well across all geographies,
with strong demand and new patient growth.
Financial Performance
On a U.S. GAAP basis, second quarter 2017 income from operations was $31
million. Adjusted income from operations for the second quarter of 2017
was $70 million, an increase of 11.9 percent as compared to the second
quarter of 2016, primarily driven by favorable product mix and lower
operating expenses.
2017 Guidance
On May 2, 2017, LivaNova announced the acquisition of Caisson
Interventional, LLC (Caisson), in support of LivaNova's strategic growth
initiatives. As a result, certain guidance for full-year 2017 was
revised at that time.
LivaNova reiterates that worldwide net sales for full-year 2017 will
remain between 1 and 3 percent growth on a constant currency
basis, and adjusted diluted earnings per share for 2017 will remain in
the range of $3.10 to $3.30. The Company reiterates that adjusted cash
flow from operations, excluding integration, restructuring and 3T
remediation payments, will remain in the range of $170 to $190 million
in 2017.
Webcast and Conference Call Instructions
The Company will host a live audio webcast for interested parties
commencing at 8 a.m. Central time (9 a.m. Eastern time, 2 p.m. UK time)
on Wednesday, August 9th that will be 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 43632735.
Within 24 hours of the webcast, a replay will be available under the
"News & Events / Presentations" section of the Investor Relations
portion of the LivaNova website, where it will be archived and
accessible for approximately 12 months.
About LivaNova
LivaNova PLC is a global medical technology company built on nearly five
decades of experience and a relentless commitment to improve the lives
of patients around the world. LivaNova's advanced technologies and
breakthrough treatments provide meaningful solutions for the benefit of
patients, healthcare professionals and healthcare systems. Headquartered
in London and with a presence in more than 100 countries worldwide, the
company employs more than 4,500 employees. LivaNova operates as three
business franchises: Cardiac Surgery, Neuromodulation and Cardiac Rhythm
Management, with operating headquarters in Mirandola
(Italy), Houston (U.S.A.) and Clamart (France), respectively.
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
Certain statements in this press release, other than purely historical
information, are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act and Section 21E of the Securities Exchange Act of 1934,
as amended (the "Exchange Act"). These statements include, but are not
limited to, LivaNova's plans, objectives, strategies, financial
performance and outlook, trends, the amount and timing of future cash
distributions, prospects or future events and involve known and unknown
risks that are difficult to predict. As a result, our actual financial
results, performance, achievements or prospects may differ materially
from those expressed or implied by these forward-looking statements. In
some cases, you can identify forward-looking statements by the use of
words such as "may," "could," "seek," "guidance," "predict,"
"potential," "likely," "believe," "will," "should," "expect,"
"anticipate," "estimate," "plan," "intend," "forecast," "foresee" or
variations of these terms and similar expressions, or the negative of
these terms or similar expressions. Such forward-looking statements are
necessarily based on estimates and assumptions that, while considered
reasonable by LivaNova and its management based on their knowledge and
understanding of the business and industry, are inherently uncertain.
These statements are not guarantees of future performance, and
stockholders should not place undue reliance on forward-looking
statements. There are a number of risks, uncertainties and other
important factors, many of which are beyond our control, that could
cause our actual results to differ materially from the forward-looking
statements contained in this press release, 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.
All information in this press release is as of the date of its release.
The Company does not undertake or assume any obligation to update
publicly any of the forward-looking statements in this press release to
reflect actual results, new information or future events, changes in
assumptions or changes in other factors affecting forward-looking
statements, except to the extent required by applicable law. If we
update one or more forward-looking statements, no inference should be
drawn that we will make additional updates with respect to those or
other forward-looking statements. We caution you not to place undue
reliance on any forward-looking statements, which are made only as of
the date of this press release.
|
LIVANOVA PLC
|
QUARTERLY SALES
|
(U.S. dollars in millions)
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
% Change at
Actual Currency
Rates
|
|
|
|
% Change at
Constant
Currency Rates
|
|
Cardio Pulmonary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
|
$39.7
|
|
|
|
$39.2
|
|
|
|
1.2
|
%
|
|
|
1.2
|
%
|
Europe
|
|
|
|
|
|
34.0
|
|
|
|
34.9
|
|
|
|
(2.6
|
%)
|
|
|
0.3
|
%
|
Rest of World
|
|
|
|
|
|
50.5
|
|
|
|
49.9
|
|
|
|
1.2
|
%
|
|
|
2.2
|
%
|
Total
|
|
|
|
|
|
124.1
|
|
|
|
124.0
|
|
|
|
0.1
|
%
|
|
|
1.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heart Valve
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
|
6.2
|
|
|
|
7.1
|
|
|
|
(12.3
|
%)
|
|
|
(12.3
|
%)
|
Europe
|
|
|
|
|
|
10.7
|
|
|
|
12.5
|
|
|
|
(14.4
|
%)
|
|
|
(11.6
|
%)
|
Rest of World
|
|
|
|
|
|
17.6
|
|
|
|
17.5
|
|
|
|
0.1
|
%
|
|
|
1.3
|
%
|
Total
|
|
|
|
|
|
34.4
|
|
|
|
37.1
|
|
|
|
(7.1
|
%)
|
|
|
(5.7
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cardiac Surgery
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
|
45.9
|
|
|
|
46.3
|
|
|
|
(0.8
|
%)
|
|
|
(0.8
|
%)
|
Europe
|
|
|
|
|
|
44.6
|
|
|
|
47.4
|
|
|
|
(5.7
|
%)
|
|
|
(2.8
|
%)
|
Rest of World
|
|
|
|
|
|
68.0
|
|
|
|
67.4
|
|
|
|
0.9
|
%
|
|
|
2.0
|
%
|
Total
|
|
|
|
|
|
158.6
|
|
|
|
161.1
|
|
|
|
(1.5
|
%)
|
|
|
(0.2
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
|
2.2
|
|
|
|
2.3
|
|
|
|
(4.2
|
%)
|
|
|
(4.2
|
%)
|
Europe
|
|
|
|
|
|
50.9
|
|
|
|
54.4
|
|
|
|
(6.4
|
%)
|
|
|
(4.0
|
%)
|
Rest of World
|
|
|
|
|
|
12.4
|
|
|
|
12.9
|
|
|
|
(3.3
|
%)
|
|
|
(1.4
|
%)
|
Total
|
|
|
|
|
|
65.5
|
|
|
|
69.6
|
|
|
|
(5.8
|
%)
|
|
|
(3.6
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Neuromodulation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
|
81.4
|
|
|
|
75.8
|
|
|
|
7.4
|
%
|
|
|
7.4
|
%
|
Europe
|
|
|
|
|
|
9.5
|
|
|
|
9.4
|
|
|
|
1.6
|
%
|
|
|
7.0
|
%
|
Rest of World
|
|
|
|
|
|
6.1
|
|
|
|
4.9
|
|
|
|
24.7
|
%
|
|
|
25.4
|
%
|
Total
|
|
|
|
|
|
97.0
|
|
|
|
90.0
|
|
|
|
7.7
|
%
|
|
|
8.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
N/A
|
|
|
|
N/A
|
|
Europe
|
|
|
|
|
|
-
|
|
|
|
0.1
|
|
|
|
N/A
|
|
|
|
N/A
|
|
Rest of World
|
|
|
|
|
|
0.2
|
|
|
|
0.3
|
|
|
|
N/A
|
|
|
|
N/A
|
|
Total
|
|
|
|
|
|
0.2
|
|
|
|
0.4
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
|
129.6
|
|
|
|
124.4
|
|
|
|
4.1
|
%
|
|
|
4.1
|
%
|
Europe
|
|
|
|
|
|
105.0
|
|
|
|
111.2
|
|
|
|
(5.5
|
%)
|
|
|
(2.7
|
%)
|
Rest of World
|
|
|
|
|
|
86.8
|
|
|
|
85.4
|
|
|
|
1.6
|
%
|
|
|
2.7
|
%
|
Total
|
|
|
|
|
|
$321.4
|
|
|
|
$321.0
|
|
|
|
0.1
|
%
|
|
|
1.4
|
%
|
|
* The sales results presented are unaudited. Numbers may not add up
precisely due to rounding.
|
|
|
LIVANOVA PLC
|
SIX MONTH SALES
|
(U.S. dollars in millions)
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
% Change at
Actual Currency
Rates
|
|
|
% Change at
Constant
Currency Rates
|
Cardio Pulmonary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
|
$71.9
|
|
|
|
$73.7
|
|
|
|
(2.4
|
%)
|
|
|
(2.4
|
%)
|
Europe
|
|
|
|
|
|
64.6
|
|
|
|
66.4
|
|
|
|
(2.7
|
%)
|
|
|
1.1
|
%
|
Rest of World
|
|
|
|
|
|
95.0
|
|
|
|
94.8
|
|
|
|
0.2
|
%
|
|
|
0.0
|
%
|
Total
|
|
|
|
|
|
231.4
|
|
|
|
234.9
|
|
|
|
(1.5
|
%)
|
|
|
(0.5
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heart Valve
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
|
12.3
|
|
|
|
13.5
|
|
|
|
(9.3
|
%)
|
|
|
(9.3
|
%)
|
Europe
|
|
|
|
|
|
21.0
|
|
|
|
23.9
|
|
|
|
(11.9
|
%)
|
|
|
(8.5
|
%)
|
Rest of World
|
|
|
|
|
|
33.0
|
|
|
|
32.2
|
|
|
|
2.6
|
%
|
|
|
2.9
|
%
|
Total
|
|
|
|
|
|
66.3
|
|
|
|
69.6
|
|
|
|
(4.7
|
%)
|
|
|
(3.4
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cardiac Surgery
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
|
84.2
|
|
|
|
87.2
|
|
|
|
(3.5
|
%)
|
|
|
(3.5
|
%)
|
Europe
|
|
|
|
|
|
85.6
|
|
|
|
90.2
|
|
|
|
(5.1
|
%)
|
|
|
(1.5
|
%)
|
Rest of World
|
|
|
|
|
|
128.0
|
|
|
|
127.0
|
|
|
|
0.8
|
%
|
|
|
0.8
|
%
|
Total
|
|
|
|
|
|
297.8
|
|
|
|
304.5
|
|
|
|
(2.2
|
%)
|
|
|
(1.1
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
|
4.7
|
|
|
|
5.3
|
|
|
|
(11.7
|
%)
|
|
|
(11.7
|
%)
|
Europe
|
|
|
|
|
|
98.3
|
|
|
|
104.4
|
|
|
|
(5.8
|
%)
|
|
|
(2.9
|
%)
|
Rest of World
|
|
|
|
|
|
20.8
|
|
|
|
21.6
|
|
|
|
(3.7
|
%)
|
|
|
(3.0
|
%)
|
Total
|
|
|
|
|
|
123.8
|
|
|
|
131.3
|
|
|
|
(5.7
|
%)
|
|
|
(3.3
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Neuromodulation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
|
155.1
|
|
|
|
146.0
|
|
|
|
6.2
|
%
|
|
|
6.2
|
%
|
Europe
|
|
|
|
|
|
17.4
|
|
|
|
15.7
|
|
|
|
11.0
|
%
|
|
|
17.5
|
%
|
Rest of World
|
|
|
|
|
|
11.7
|
|
|
|
9.6
|
|
|
|
20.9
|
%
|
|
|
20.7
|
%
|
Total
|
|
|
|
|
|
184.2
|
|
|
|
171.4
|
|
|
|
7.5
|
%
|
|
|
8.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
N/A
|
|
|
|
N/A
|
|
Europe
|
|
|
|
|
|
-
|
|
|
|
0.2
|
|
|
|
N/A
|
|
|
|
N/A
|
|
Rest of World
|
|
|
|
|
|
0.7
|
|
|
|
0.7
|
|
|
|
N/A
|
|
|
|
N/A
|
|
Total
|
|
|
|
|
|
0.7
|
|
|
|
0.8
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
|
243.9
|
|
|
|
238.5
|
|
|
|
2.2
|
%
|
|
|
2.2
|
%
|
Europe
|
|
|
|
|
|
201.4
|
|
|
|
210.5
|
|
|
|
(4.3
|
%)
|
|
|
(0.8
|
%)
|
Rest of World
|
|
|
|
|
|
161.2
|
|
|
|
159.0
|
|
|
|
1.4
|
%
|
|
|
1.5
|
%
|
Total
|
|
|
|
|
|
$606.5
|
|
|
|
$608.0
|
|
|
|
(0.3
|
%)
|
|
|
1.0
|
%
|
|
* The sales results presented are unaudited. Numbers may not add up
precisely due to rounding.
|
|
|
LIVANOVA PLC AND SUBSIDIARIES
|
CONSOLIDATED STATEMENT OF INCOME (LOSS) - UNAUDITED
|
(U.S. dollars in millions, except per share amounts)
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
$321.4
|
|
|
|
$321.0
|
|
|
|
|
Cost of sales
|
|
|
|
|
108.9
|
|
|
|
130.6
|
|
|
|
|
Product remediation
|
|
|
|
|
1.7
|
|
|
|
0.8
|
|
|
|
|
Gross Profit
|
|
|
|
|
210.8
|
|
|
|
189.6
|
|
|
|
11.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
|
120.4
|
|
|
|
120.7
|
|
|
|
|
Research and development
|
|
|
|
|
43.0
|
|
|
|
30.1
|
|
|
|
|
Merger and integration expense
|
|
|
|
|
3.5
|
|
|
|
6.2
|
|
|
|
|
Restructuring expense
|
|
|
|
|
1.1
|
|
|
|
4.2
|
|
|
|
|
Amortization of intangibles
|
|
|
|
|
11.7
|
|
|
|
6.3
|
|
|
|
|
Total operating expenses
|
|
|
|
|
179.7
|
|
|
|
167.6
|
|
|
|
7.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
|
|
31.1
|
|
|
|
21.9
|
|
|
|
42.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
|
(1.3
|
)
|
|
|
(1.7
|
)
|
|
|
|
Gain on acquisition of Caisson
|
|
|
|
|
39.4
|
|
|
|
-
|
|
|
|
|
Foreign exchange and other - gain (loss)
|
|
|
|
|
(3.0
|
)
|
|
|
0.6
|
|
|
|
|
Income before income taxes
|
|
|
|
|
66.2
|
|
|
|
20.9
|
|
|
|
216.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses from equity method investments
|
|
|
|
|
(15.4
|
)
|
|
|
(3.5
|
)
|
|
|
|
Income tax expense (benefit)
|
|
|
|
|
3.3
|
|
|
|
8.4
|
|
|
|
|
Net income
|
|
|
|
|
$47.5
|
|
|
|
$9.0
|
|
|
|
427.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Common Share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
$0.99
|
|
|
|
$0.18
|
|
|
|
|
Diluted
|
|
|
|
|
$0.98
|
|
|
|
$0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
48.1
|
|
|
|
49.1
|
|
|
|
|
Diluted
|
|
|
|
|
48.3
|
|
|
|
49.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Gross Profit (1)
|
|
|
|
|
$214.0
|
|
|
|
$209.0
|
|
|
|
2.4
|
%
|
Adjusted SG&A (1)
|
|
|
|
|
111.9
|
|
|
|
116.3
|
|
|
|
(3.8
|
%)
|
Adjusted R&D (1)
|
|
|
|
|
31.7
|
|
|
|
30.0
|
|
|
|
5.7
|
%
|
Adjusted Income from Operations (1)
|
|
|
|
|
70.3
|
|
|
|
62.8
|
|
|
|
11.9
|
%
|
Adjusted Net Income (1)
|
|
|
|
|
48.8
|
|
|
|
43.0
|
|
|
|
13.5
|
%
|
Adjusted Diluted Earnings Per Share (1)
|
|
|
|
|
$1.01
|
|
|
|
$0.87
|
|
|
|
16.1
|
%
|
|
|
Statistics (as a % of net sales, except for income tax rate)
|
|
|
|
|
|
|
GAAP Three Months Ended June 30,
|
|
|
|
Adjusted (1) Three Months Ended June 30,
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
2017
|
|
2016
|
Gross Profit
|
|
|
|
|
|
65.6
|
%
|
|
|
59.0
|
%
|
|
|
|
66.6
|
%
|
|
|
65.1
|
%
|
SG&A
|
|
|
|
|
|
37.5
|
%
|
|
|
37.6
|
%
|
|
|
|
34.8
|
%
|
|
|
36.2
|
%
|
R&D
|
|
|
|
|
|
13.4
|
%
|
|
|
9.4
|
%
|
|
|
|
9.9
|
%
|
|
|
9.3
|
%
|
Income (loss) from Operations
|
|
|
|
|
|
9.7
|
%
|
|
|
6.8
|
%
|
|
|
|
21.9
|
%
|
|
|
19.5
|
%
|
Net (loss) Income
|
|
|
|
|
|
14.8
|
%
|
|
|
2.8
|
%
|
|
|
|
15.2
|
%
|
|
|
13.4
|
%
|
Income Tax Rate
|
|
|
|
|
|
5.0
|
%
|
|
|
40.3
|
%
|
|
|
|
22.8
|
%
|
|
|
25.9
|
%
|
|
(1)
|
|
Adjusted financial measures are Non-GAAP measures and exclude
specified items as described and reconciled in the "Reconciliation
of GAAP to non-GAAP Financial Measures" contained in the press
release.
|
|
|
|
*
|
|
Numbers may not add up precisely due to rounding.
|
|
|
LIVANOVA PLC AND SUBSIDIARIES
|
CONSOLIDATED STATEMENT OF INCOME (LOSS) - UNAUDITED
|
(U.S. dollars in millions, except per share amounts)
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
$606.5
|
|
|
|
$608.0
|
|
|
|
|
Cost of sales
|
|
|
|
|
210.4
|
|
|
|
254.2
|
|
|
|
|
Product remediation
|
|
|
|
|
0.9
|
|
|
|
1.6
|
|
|
|
|
Gross Profit
|
|
|
|
|
395.2
|
|
|
|
352.2
|
|
|
|
12.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
|
232.8
|
|
|
|
236.5
|
|
|
|
|
Research and development
|
|
|
|
|
72.7
|
|
|
|
61.9
|
|
|
|
|
Merger and integration expense
|
|
|
|
|
5.7
|
|
|
|
13.0
|
|
|
|
|
Restructuring expense
|
|
|
|
|
11.3
|
|
|
|
32.8
|
|
|
|
|
Amortization of intangibles
|
|
|
|
|
23.1
|
|
|
|
22.2
|
|
|
|
|
Total operating expenses
|
|
|
|
|
345.5
|
|
|
|
366.4
|
|
|
|
(5.7
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
|
|
|
|
|
49.7
|
|
|
|
(14.2
|
)
|
|
|
450.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
|
(3.4
|
)
|
|
|
(2.6
|
)
|
|
|
|
Gain on acquisition of Caisson
|
|
|
|
|
39.4
|
|
|
|
-
|
|
|
|
|
Foreign exchange and other - gain (loss)
|
|
|
|
|
0.5
|
|
|
|
(1.2
|
)
|
|
|
|
Income (loss) before income taxes
|
|
|
|
|
86.2
|
|
|
|
(18.0
|
)
|
|
|
578.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses from equity method investments
|
|
|
|
|
(18.5
|
)
|
|
|
(6.3
|
)
|
|
|
|
Income tax expense
|
|
|
|
|
9.0
|
|
|
|
7.2
|
|
|
|
|
Net income (loss)
|
|
|
|
|
$58.8
|
|
|
|
($31.4
|
)
|
|
|
287.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) Per Common Share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
$1.22
|
|
|
|
($0.64
|
)
|
|
|
|
Diluted
|
|
|
|
|
$1.22
|
|
|
|
($0.64
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
48.1
|
|
|
|
49.0
|
|
|
|
|
Diluted
|
|
|
|
|
48.2
|
|
|
|
49.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Gross Profit (1)
|
|
|
|
|
$399.0
|
|
|
|
$394.1
|
|
|
|
1.2
|
%
|
Adjusted SG&A (1)
|
|
|
|
|
218.7
|
|
|
|
226.5
|
|
|
|
(3.4
|
%)
|
Adjusted R&D (1)
|
|
|
|
|
61.2
|
|
|
|
61.3
|
|
|
|
(0.2
|
%)
|
Adjusted Income from Operations (1)
|
|
|
|
|
119.1
|
|
|
|
106.3
|
|
|
|
12.0
|
%
|
Adjusted Net Income (1)
|
|
|
|
|
83.0
|
|
|
|
69.5
|
|
|
|
19.4
|
%
|
Adjusted Diluted Earnings Per Share (1)
|
|
|
|
|
$1.72
|
|
|
|
$1.41
|
|
|
|
22.0
|
%
|
|
|
Statistics (as a % of net sales, except for income tax rate)
|
|
|
|
|
|
|
GAAP Six Months Ended June 30,
|
|
|
Adjusted (1) Six Months Ended June 30,
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
Gross Profit
|
|
|
|
|
65.2
|
%
|
|
|
57.9
|
%
|
|
|
65.8
|
%
|
|
|
64.8
|
%
|
SG&A
|
|
|
|
|
38.4
|
%
|
|
|
38.9
|
%
|
|
|
36.1
|
%
|
|
|
37.3
|
%
|
R&D
|
|
|
|
|
12.0
|
%
|
|
|
10.2
|
%
|
|
|
10.1
|
%
|
|
|
10.1
|
%
|
Income (loss) from Operations
|
|
|
|
|
8.2
|
%
|
|
|
(2.3
|
%)
|
|
|
19.6
|
%
|
|
|
17.5
|
%
|
Net (loss) Income
|
|
|
|
|
9.7
|
%
|
|
|
(5.2
|
%)
|
|
|
13.7
|
%
|
|
|
11.4
|
%
|
Income Tax Rate
|
|
|
|
|
10.4
|
%
|
|
|
(39.8
|
%)
|
|
|
22.7
|
%
|
|
|
26.8
|
%
|
|
(1)
|
|
Adjusted financial measures are Non-GAAP measures and exclude
specified items as described and reconciled in the "Reconciliation
of GAAP to non-GAAP Financial Measures" contained in the press
release.
|
|
|
|
*
|
|
Numbers may not add up precisely due to rounding.
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED
|
(U.S. dollars in millions, except per share amounts)
|
|
Three Months Ended June 30, 2017
|
|
|
|
|
|
Sales
|
|
|
Gross Profit
|
|
|
|
Income
from
Operations
|
|
|
|
Net Income
|
|
|
|
Diluted EPS
|
|
GAAP Financial Measures
|
|
|
|
|
|
$321.4
|
|
|
$210.8
|
|
|
|
$31.1
|
|
|
|
$47.5
|
|
|
|
$0.98
|
|
Specified Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger and integration expenses (A)
|
|
|
|
|
|
|
|
|
|
|
|
|
2.5
|
|
|
|
2.0
|
|
|
|
0.04
|
|
Restructuring expenses (B)
|
|
|
|
|
|
|
|
|
|
|
|
|
1.1
|
|
|
|
0.3
|
|
|
|
0.01
|
|
Depreciation and amortization (C)
|
|
|
|
|
|
|
|
|
1.2
|
|
|
|
13.2
|
|
|
|
10.5
|
|
|
|
0.22
|
|
Product remediation (D)
|
|
|
|
|
|
|
|
|
1.7
|
|
|
|
1.7
|
|
|
|
1.2
|
|
|
|
0.02
|
|
Caisson acquisition (E)
|
|
|
|
|
|
|
|
|
0.2
|
|
|
|
12.1
|
|
|
|
(30.1
|
)
|
|
|
(0.62
|
)
|
Highlife impairment (F)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13.0
|
|
|
|
0.27
|
|
Other Income / (expenses) & litigations (G)
|
|
|
|
|
|
|
|
|
|
|
|
|
3.9
|
|
|
|
2.7
|
|
|
|
0.06
|
|
Equity compensation (H)
|
|
|
|
|
|
|
|
|
0.1
|
|
|
|
4.7
|
|
|
|
3.8
|
|
|
|
0.08
|
|
Certain tax adjustments (I)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2.1
|
)
|
|
|
(0.04
|
)
|
Adjusted financial measures
|
|
|
|
|
|
$321.4
|
|
|
$214.0
|
|
|
|
$70.3
|
|
|
|
$48.8
|
|
|
|
$1.01
|
|
|
Adjusted financial measures
|
(A) Merger and integration expenses related to our legacy companies
|
(B) Restructuring expenses related to recent organizational changes
|
(C) Includes depreciation and amortization associated with final
purchase price accounting
|
(D) Costs related to the 3T Heater-Cooler remediation plan
|
(E) Impact of Caisson related acquisition costs, including $10.9m
related to R&D and $1.0m related to
merger and integration costs
|
(F) Impairment of investments and net receivables
|
(G) Legal expense related to 3T Heater-Cooler defense and other
matters
|
(H) Includes $4.4m related to SG&A, $0.3m related to R&D, and less
than $0.1m related to COGS
|
(I) Primarily relates to discrete tax items and the tax impact of
intercompany transactions
|
|
Three Months Ended June 30, 2016
|
|
|
|
|
|
Sales
|
|
|
Gross Profit
|
|
|
|
Income
from
Operations
|
|
|
|
Net Income
|
|
|
|
Diluted EPS
|
|
GAAP Financial Measures
|
|
|
|
|
|
$321.0
|
|
|
|
$189.6
|
|
|
|
$21.9
|
|
|
|
$9.0
|
|
|
|
$0.18
|
|
Specified Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger and integration expenses (A)
|
|
|
|
|
|
|
|
|
|
|
|
|
6.2
|
|
|
|
5.2
|
|
|
|
0.11
|
|
Restructuring expenses (B)
|
|
|
|
|
|
|
|
|
|
|
|
|
4.2
|
|
|
|
3.7
|
|
|
|
0.07
|
|
Depreciation and amortization (C)
|
|
|
|
|
|
|
|
|
4.6
|
|
|
|
10.9
|
|
|
|
8.7
|
|
|
|
0.18
|
|
Product remediation (D)
|
|
|
|
|
|
|
|
|
0.8
|
|
|
|
0.8
|
|
|
|
0.6
|
|
|
|
0.01
|
|
Other Income / (expenses) & litigations (E)
|
|
|
|
|
|
|
|
|
|
|
|
|
0.7
|
|
|
|
(0.8
|
)
|
|
|
(0.02
|
)
|
Impact of inventory step-up (F)
|
|
|
|
|
|
|
|
|
13.7
|
|
|
|
13.7
|
|
|
|
9.4
|
|
|
|
0.19
|
|
Equity compensation (G)
|
|
|
|
|
|
|
|
|
0.3
|
|
|
|
4.2
|
|
|
|
3.5
|
|
|
|
0.07
|
|
Certain tax adjustments (H)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.8
|
|
|
|
0.08
|
|
Adjusted financial measures
|
|
|
|
|
|
$321.0
|
|
|
|
$209.0
|
|
|
|
$62.8
|
|
|
|
$43.0
|
|
|
|
$0.87
|
|
|
GAAP results for the three months ended June 30, 2016 include:
|
(A) Merger and integration expenses related to our legacy companies
|
(B) Restructuring expenses related to our legacy companies
|
(C) Includes depreciation and amortization associated with final
purchase price accounting
|
(D) Costs related to the 3T Heater-Cooler remediation plan
|
(E) Includes a $4.7m reimbursement of damages related to 2012
earthquake in Mirandola (Italy), a $5.0m
write-off of receivables from Greek distributors and other
minor litigations
|
(F) Includes amortization of inventory step-up associated with
final purchase price accounting
|
(G) Includes $3.6m related to SG&A, $0.3m related to R&D, and less
than $0.3m related to COGS
|
(H) Primarily relates to discrete tax items and the tax impact of
intercompany transactions
|
|
*Numbers may not add up precisely due to rounding.
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED
|
(U.S. dollars in millions, except per share amounts)
|
|
Six Months Ended June 30, 2017
|
|
|
|
|
Sales
|
|
|
Gross Profit
|
|
|
Income
from
Operations
|
|
|
Net Income
|
|
|
Diluted EPS
|
GAAP Financial Measures
|
|
|
|
|
$ 606.5
|
|
|
$395.2
|
|
|
$49.7
|
|
|
$58.8
|
|
|
$1.22
|
|
Specified Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger and integration expenses (A)
|
|
|
|
|
|
|
|
|
|
|
4.8
|
|
|
3.6
|
|
|
0.07
|
|
Restructuring expenses (B)
|
|
|
|
|
|
|
|
|
|
|
11.3
|
|
|
9.1
|
|
|
0.19
|
|
Depreciations and amortization (C)
|
|
|
|
|
|
|
|
2.6
|
|
|
26.4
|
|
|
19.8
|
|
|
0.41
|
|
Product remediation (D)
|
|
|
|
|
|
|
|
0.9
|
|
|
0.9
|
|
|
0.7
|
|
|
0.01
|
|
Caisson acquisition (E)
|
|
|
|
|
|
|
|
0.2
|
|
|
12.1
|
|
|
(30.1
|
)
|
|
(0.62
|
)
|
Highlife impairment (F)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13.0
|
|
|
0.27
|
|
Other income / (expenses) & litigations (G)
|
|
|
|
|
|
|
|
|
|
|
5.5
|
|
|
0.5
|
|
|
0.01
|
|
Equity compensation (H)
|
|
|
|
|
|
|
|
0.1
|
|
|
8.6
|
|
|
7.1
|
|
|
0.15
|
|
Certain tax adjustments (I)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.4
|
|
|
0.01
|
|
Adjusted financial measures
|
|
|
|
|
$606.5
|
|
|
$399.0
|
|
|
$119.1
|
|
|
$82.9
|
|
|
$1.72
|
|
|
GAAP results for the six months ended June 30, 2017 include:
|
(A) Merger and integration expenses related to our legacy companies
|
(B) Restructuring expenses related to recent organizational
changes and the shutdown of our CP plant in China
|
(C) Includes depreciation and amortization associated with final
purchase price accounting
|
(D) Costs related to the 3T Heater-Cooler remediation plan
|
(E) Impact of Caisson related acquisition costs, including $10.9m
related to R&D and $1.0m related
to merger and integration costs
|
(F) Impairment of investments and net receivables
|
(G) Legal expense related to 3T Heater-Cooler defense and other
matters
|
(H) Includes $8.1m related to SG&A, $0.4m related to R&D, and
$0.1m related to COGS
|
(I) Primarily relates to discrete tax items and the tax impact of
intercompany transactions
|
|
Six Months Ended June 30, 2016
|
|
|
|
|
Sales
|
|
|
Gross Profit
|
|
|
Income
from
Operations
|
|
|
Net Income
|
|
|
Diluted EPS
|
GAAP Financial Measures
|
|
|
|
|
$608.0
|
|
|
$352.2
|
|
|
($14.2
|
)
|
|
($31.4
|
)
|
|
($0.64
|
)
|
Specified Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger and integration expenses (A)
|
|
|
|
|
|
|
|
|
|
|
13.0
|
|
|
11.1
|
|
|
0.23
|
|
Restructuring expenses (B)
|
|
|
|
|
|
|
|
|
|
|
32.8
|
|
|
30.5
|
|
|
0.62
|
|
Depreciation and amortization (C)
|
|
|
|
|
|
|
|
4.6
|
|
|
26.8
|
|
|
19.6
|
|
|
0.4
|
|
Product remediation (D)
|
|
|
|
|
|
|
|
1.6
|
|
|
1.6
|
|
|
1.0
|
|
|
0.02
|
|
Other income / (expenses) & litigations (E)
|
|
|
|
|
|
|
|
|
|
|
1.0
|
|
|
(0.4)
|
|
|
(0.01)
|
|
Impact of inventory step-up (F)
|
|
|
|
|
|
|
|
35.0
|
|
|
35.0
|
|
|
24.0
|
|
|
0.49
|
|
Equity compensation (G)
|
|
|
|
|
|
|
|
0.7
|
|
|
10.3
|
|
|
8.9
|
|
|
0.18
|
|
Certain tax adjustments (H)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.2
|
|
|
0.13
|
|
Adjusted financial measures
|
|
|
|
|
$608.0
|
|
|
$394.1
|
|
|
$106.3
|
|
|
$69.5
|
|
|
$1.42
|
|
|
GAAP results for the six months ended June 30, 2016 include:
|
(A) Merger and integration expenses related to our legacy companies
|
(B) Restructuring expenses related to our legacy companies
|
(C) Includes depreciation and amortization associated with final
purchase price accounting
|
(D) Costs related to the 3T Heater-Cooler remediation plan
|
(E) Includes a $4.7m reimbursement of damages related to 2012
earthquake in Mirandola (Italy), a $5.0m
write-off of receivables from Greek distributors and other
minor litigations
|
(F) Includes amortization of inventory step-up associated with
final purchase price accounting
|
(G) Includes $9.0 m related to SG&A, $0.6m related to R&D, and
less than $0.7m related to COGS
|
(H) Primarily relates to discrete tax items and the tax impact of
intercompany transactions
|
|
*Numbers may not add up precisely due to rounding.
|
|
|
LIVANOVA PLC AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(U.S. dollars in millions)
|
|
|
|
|
|
|
June 30, 2017
|
|
|
December 31, 2016
|
ASSETS
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
$42.7
|
|
|
|
$39.8
|
Accounts receivable, net
|
|
|
|
|
305.4
|
|
|
|
275.7
|
Inventories
|
|
|
|
|
204.7
|
|
|
|
183.5
|
Prepaid and refundable taxes
|
|
|
|
|
55.6
|
|
|
|
60.6
|
Assets held for sale
|
|
|
|
|
13.9
|
|
|
|
4.5
|
Prepaid expenses and other current assets
|
|
|
|
|
49.2
|
|
|
|
56.0
|
Total Current Assets
|
|
|
|
|
671.4
|
|
|
|
620.1
|
Property, plant and equipment, net
|
|
|
|
|
211.2
|
|
|
|
223.8
|
Goodwill
|
|
|
|
|
763.5
|
|
|
|
691.7
|
Intangible assets, net
|
|
|
|
|
713.2
|
|
|
|
609.2
|
Investments
|
|
|
|
|
41.0
|
|
|
|
61.1
|
Deferred tax assets, net
|
|
|
|
|
12.0
|
|
|
|
6.0
|
Other assets
|
|
|
|
|
121.4
|
|
|
|
130.7
|
Total Assets
|
|
|
|
|
$2,553.7
|
|
|
|
$2,342.6
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
Current debt obligations
|
|
|
|
|
$55.8
|
|
|
|
$47.6
|
Accounts payable
|
|
|
|
|
105.1
|
|
|
|
93.0
|
Accrued liabilities
|
|
|
|
|
90.0
|
|
|
|
75.6
|
Taxes payable
|
|
|
|
|
22.7
|
|
|
|
22.3
|
Accrued employee compensation and related benefits liability
|
|
|
|
|
68.9
|
|
|
|
78.3
|
Total Current Liabilities
|
|
|
|
|
342.4
|
|
|
|
316.8
|
Long-term debt obligations
|
|
|
|
|
69.7
|
|
|
|
75.2
|
Deferred income taxes liability
|
|
|
|
|
169.2
|
|
|
|
172.5
|
Long-term employee compensation and related benefits liability
|
|
|
|
|
33.1
|
|
|
|
31.4
|
Other long-term liabilities
|
|
|
|
|
75.7
|
|
|
|
39.8
|
Total Liabilities
|
|
|
|
|
$690.2
|
|
|
|
$635.7
|
Total Stockholders' Equity
|
|
|
|
|
1,843.5
|
|
|
|
1,706.9
|
Total Liabilities and Stockholders' Equity
|
|
|
|
|
$2,553.7
|
|
|
|
$2,342.6
|
|
* Numbers may not add up precisely due to rounding.
|
|
|
LIVANOVA PLC AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW - UNAUDITED
|
(U.S. dollars in millions)
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
2017
|
|
|
|
2016
|
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
|
|
|
Net Income (loss)
|
|
|
|
|
$58.8
|
|
|
|
|
($31.4
|
)
|
Non-cash items included in net income (loss):
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
|
18.0
|
|
|
|
|
19.5
|
|
Amortization
|
|
|
|
|
23.1
|
|
|
|
|
22.2
|
|
Stock-based compensation
|
|
|
|
|
8.6
|
|
|
|
|
10.8
|
|
Amortization of income taxes from inter-company transfers
|
|
|
|
|
17.8
|
|
|
|
|
8.7
|
|
Deferred income tax benefit
|
|
|
|
|
(19.8
|
)
|
|
|
|
(12.8
|
)
|
Losses from equity method investments
|
|
|
|
|
18.5
|
|
|
|
|
6.3
|
|
Gain on acquisition of Caisson Interventional, LLC
|
|
|
|
|
(39.4
|
)
|
|
|
|
|
Impairment of property, plant and equipment
|
|
|
|
|
4.6
|
|
|
|
|
|
Other
|
|
|
|
|
1.8
|
|
|
|
|
4.7
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
|
|
(15.9
|
)
|
|
|
|
(27.2
|
)
|
Inventories
|
|
|
|
|
(6.9
|
)
|
|
|
|
24.7
|
|
Other current and non-current assets
|
|
|
|
|
(13.9
|
)
|
|
|
|
(15.0
|
)
|
Restructuring reserve
|
|
|
|
|
(11.1
|
)
|
|
|
|
16.8
|
|
Accounts payable and accrued current and non-current liabilities
|
|
|
|
|
(12.4
|
)
|
|
|
|
(14.6
|
)
|
Net cash provided by operating activities
|
|
|
|
|
$31.6
|
|
|
|
|
$12.6
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow from Investing Activities:
|
|
|
|
|
|
|
|
|
|
Purchases of Property, plan and equipment and other
|
|
|
|
|
(14.9
|
)
|
|
|
|
(16.7
|
)
|
Acquisition of Caisson Interventional, LLC, net of cash acquired
|
|
|
|
|
(14.2
|
)
|
|
|
|
|
Proceeds from sale of cost method investment
|
|
|
|
|
3.2
|
|
|
|
|
|
Proceeds from asset sales
|
|
|
|
|
5.2
|
|
|
|
|
|
Purchase of short-term investments
|
|
|
|
|
|
|
|
|
(7.0
|
)
|
Maturities of short-term investments
|
|
|
|
|
|
|
|
|
7.0
|
|
Other
|
|
|
|
|
(0.1
|
)
|
|
|
|
0.6
|
|
|
|
|
|
|
(20.9
|
)
|
|
|
|
(16.0
|
)
|
Cash Flow From Financing Activities:
|
|
|
|
|
|
|
|
|
|
Change in short term borrowing, net
|
|
|
|
|
(12.8
|
)
|
|
|
|
(15.6
|
)
|
Proceeds from short term borrowing (maturities greater than 90 days)
|
|
|
|
|
20.0
|
|
|
|
|
|
Repayment of long-term debt obligations
|
|
|
|
|
(11.3
|
)
|
|
|
|
(11.1
|
)
|
Loans to cost method and equity method investees
|
|
|
|
|
(6.8
|
)
|
|
|
|
(3.8
|
)
|
Proceeds from exercise of stock options and SARs
|
|
|
|
|
2.4
|
|
|
|
|
4.7
|
|
Repayment of trade receivable advances
|
|
|
|
|
|
|
|
|
(21.6
|
)
|
Other
|
|
|
|
|
(1.7
|
)
|
|
|
|
1.2
|
|
Net cash used in financing activities
|
|
|
|
|
(10.2
|
)
|
|
|
|
(46.2
|
)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
|
2.4
|
|
|
|
|
0.9
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
|
2.9
|
|
|
|
|
(48.7
|
)
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
|
39.8
|
|
|
|
|
112.6
|
|
Cash and cash equivalents at end of period
|
|
|
|
|
$42.7
|
|
|
|
|
$63.9
|
|
|
*Numbers may not add up precisely due to rounding.
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170809005342/en/
[ Back To TMCnet.com's Homepage ]
|