| [November 02, 2017] |
 |
LivaNova Reports Third 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 September 30, 2017.
For the third quarter of 2017, worldwide sales were $309.7 million, an
increase of 4.9 percent on a reported basis and an increase of 3.1
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), third quarter 2017 diluted earnings per share were
$0.57. Third quarter 2017 adjusted diluted earnings per share were $0.93.
"We delivered solid sales and earnings performance in the third quarter,
with record growth in several of our product areas," said Damien
McDonald, LivaNova's Chief Executive Officer. "While we grew in
Neuromodulation, results were impacted due to delays in procedures as a
result of hurricane-related activity, and also from broad patient
deferrals in anticipation of the launch of our newest VNS Therapy®
System, SenTivaTM, which received U.S. Food and Drug
Administration approval in early October. Growth in our Cardiac Rhythm
Management business was slightly positive, aided by continued demand in
Japan for our KORA250® device, even as we explore strategic
options for this franchise. Cardiac Surgery had numerous positive
initiatives that coalesced, resulting in mid-single-digit growth in both
our cardiopulmonary and heart valve product lines. Due to our strong
year-to-date results and momentum across our business, we are increasing
our full-year guidance for adjusted diluted earnings per share to $3.30
to $3.45. We remain on track to meet our other full-year commitments and
will continue to take actions that strengthen LivaNova's position as a
focused med-tech innovator dedicated to improving the lives of patients
around the world."
Third Quarter 2017 Results
Worldwide sales for the third quarter were $309.7 million, up 3.1
percent on a constant currency basis compared to the third quarter of
2016. The following table highlights worldwide sales for the third
quarter of 2017 by Business Franchise:
|
|
|
$ in millions
|
|
|
|
|
Three months ended September 30,
|
|
|
% Change
|
|
|
Constant
Currency %
Change
|
|
Business Franchise / Product Line:
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
Cardiopulmonary
|
|
|
|
|
$123.6
|
|
|
$114.8
|
|
|
7.7%
|
|
|
5.6%
|
|
Heart Valves
|
|
|
|
|
36.3
|
|
|
33.7
|
|
|
7.7%
|
|
|
5.1%
|
|
Cardiac Surgery
|
|
|
|
|
159.8
|
|
|
148.5
|
|
|
7.6%
|
|
|
5.5%
|
|
Cardiac Rhythm Management
|
|
|
|
|
58.4
|
|
|
56.8
|
|
|
2.8%
|
|
|
0.1%
|
|
Neuromodulation
|
|
|
|
|
91.0
|
|
|
89.5
|
|
|
1.7%
|
|
|
1.3%
|
|
Other
|
|
|
|
|
0.4
|
|
|
0.5
|
|
|
-%
|
|
|
-%
|
|
Total Net Sales
|
|
|
|
|
$309.7
|
|
|
$295.3
|
|
|
4.9%
|
|
|
3.1%
|
|
|
-
Note: 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 $160 million, representing a 5.5 percent increase versus
the comparable period in 2016.
Sales in cardiopulmonary products were $124 million, representing a 5.6
percent increase versus the third quarter of 2016. This was due to
strength in our heart-lung machines as a result of geographic expansion
and continued progress in upgrading customers from older S3 machines to
our current S5 machines.
Heart valve sales, including tissue and mechanical heart valves, were
$36 million, an increase of 5.1 percent compared to the same
period the previous year. Growth in tissue valves, driven by demand for
the Perceval® sutureless aortic heart valve in the U.S. and
improvement in Europe more than offset declines in mechanical heart
valves globally.
Cardiac Rhythm Management (CRM)
CRM sales for the period totaled $58 million, an increase of 0.1 percent
as compared to the third quarter of 2016. The increase is primarily due
to continued strong demand for KORA250 pacemakers in Japan. This was
offset by declines in defibrillators due to lack of MRI compatibility.
Neuromodulation
Neuromodulation sales were $91 million in the third quarter,
representing an 1.3 percent increase versus the third quarter of 2016.
Demand for the AspireSR® generator continued to be strong,
but sales were impacted by lower procedural volumes primarily due to
hurricane-related impacts, and also patient deferrals in anticipation of
the launch of SenTiva.
Financial Performance
On a U.S. GAAP basis, third quarter 2017 income from operations was $32
million. Adjusted income from operations for the third quarter of 2017
was $60 million, an increase of 9.2 percent as compared to the third
quarter of 2016, primarily driven by favorable product mix and lower
operating expenses.
2017 Guidance
LivaNova reiterates that worldwide net sales for full-year 2017 will
remain between 1 and 3 percent growth on a constant currency
basis. Due to strong year-to-date results and momentum across the
business, adjusted diluted earnings per share projections for full-year
2017 are now expected to be in the range of $3.30 to $3.45. The Company
continues to expect adjusted cash flow from operations, excluding
integration, restructuring and 3T remediation payments, to be in the
range of $170 to $190 million.
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, 1 p.m. UK time)
on Thursday, November 2 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 (866)
393-4306 (if dialing from within the U.S.) or (734) 385-2616 (if dialing
from outside the U.S.). The conference ID is 91786987.
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
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.
For more information, please visit www.livanova.com.
|
|
|
LIVANOVA PLC
|
|
QUARTERLY SALES
|
|
(U.S. dollars in millions)
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
% Change at
Actual Currency
Rates
|
|
|
% Change at
Constant
Currency Rates
|
|
Cardiopulmonary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
38.4
|
|
|
|
39.4
|
|
|
|
(2.5
|
%)
|
|
|
(2.5
|
%)
|
|
Europe
|
|
|
|
|
30.5
|
|
|
|
28.3
|
|
|
|
7.8
|
%
|
|
|
3.2
|
%
|
|
Rest of World
|
|
|
|
|
54.7
|
|
|
|
47.2
|
|
|
|
15.9
|
%
|
|
|
13.8
|
%
|
|
Total
|
|
|
|
|
123.6
|
|
|
|
114.8
|
|
|
|
7.7
|
%
|
|
|
5.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heart Valves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
6.6
|
|
|
|
7.4
|
|
|
|
(10.8
|
%)
|
|
|
(10.5
|
%)
|
|
Europe
|
|
|
|
|
9.9
|
|
|
|
9.7
|
|
|
|
2.1
|
%
|
|
|
(2.4
|
%)
|
|
Rest of World
|
|
|
|
|
19.7
|
|
|
|
16.6
|
|
|
|
18.7
|
%
|
|
|
16.4
|
%
|
|
Total
|
|
|
|
|
36.3
|
|
|
|
33.7
|
|
|
|
7.7
|
%
|
|
|
5.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cardiac Surgery
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
45.0
|
|
|
|
46.8
|
|
|
|
(3.8
|
%)
|
|
|
(3.8
|
%)
|
|
Europe
|
|
|
|
|
40.4
|
|
|
|
38.0
|
|
|
|
6.3
|
%
|
|
|
1.8
|
%
|
|
Rest of World
|
|
|
|
|
74.4
|
|
|
|
63.7
|
|
|
|
16.8
|
%
|
|
|
14.5
|
%
|
|
Total
|
|
|
|
|
159.8
|
|
|
|
148.5
|
|
|
|
7.6
|
%
|
|
|
5.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
0.9
|
|
|
|
2.2
|
|
|
|
(59.1
|
%)
|
|
|
(57.3
|
%)
|
|
Europe
|
|
|
|
|
44.5
|
|
|
|
44.7
|
|
|
|
(0.4
|
%)
|
|
|
(5.3
|
%)
|
|
Rest of World
|
|
|
|
|
13.0
|
|
|
|
9.8
|
|
|
|
32.7
|
%
|
|
|
36.9
|
%
|
|
Total
|
|
|
|
|
58.4
|
|
|
|
56.8
|
|
|
|
2.8
|
%
|
|
|
0.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Neuromodulation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
76.3
|
|
|
|
74.9
|
|
|
|
1.9
|
%
|
|
|
1.9
|
%
|
|
Europe
|
|
|
|
|
8.1
|
|
|
|
8.5
|
|
|
|
(4.7
|
%)
|
|
|
(8.4
|
%)
|
|
Rest of World
|
|
|
|
|
6.7
|
|
|
|
6.2
|
|
|
|
8.1
|
%
|
|
|
7.4
|
%
|
|
Total
|
|
|
|
|
91.0
|
|
|
|
89.5
|
|
|
|
1.7
|
%
|
|
|
1.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
Europe
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
Rest of World
|
|
|
|
|
0.4
|
|
|
|
0.5
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
Total
|
|
|
|
|
0.4
|
|
|
|
0.5
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
122.2
|
|
|
|
123.8
|
|
|
|
(1.3
|
%)
|
|
|
(1.3
|
%)
|
|
Europe
|
|
|
|
|
93.0
|
|
|
|
91.2
|
|
|
|
2.0
|
%
|
|
|
(2.6
|
%)
|
|
Rest of World
|
|
|
|
|
94.5
|
|
|
|
80.2
|
|
|
|
17.8
|
%
|
|
|
16.5
|
%
|
|
Total
|
|
|
|
|
309.7
|
|
|
|
295.3
|
|
|
|
4.9
|
%
|
|
|
3.1
|
%
|
|
|
|
* The sales results presented are unaudited. Numbers may not add up
precisely due to rounding.
|
|
|
|
|
|
LIVANOVA PLC
|
|
NINE MONTH SALES
|
|
(U.S. dollars in millions)
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
% Change at
Actual Currency
Rates
|
|
|
% Change at
Constant
Currency Rates
|
|
Cardiopulmonary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
|
110.3
|
|
|
|
113.1
|
|
|
|
(2.5
|
%)
|
|
|
(2.5
|
%)
|
|
Europe
|
|
|
|
|
|
95.1
|
|
|
|
94.7
|
|
|
|
0.4
|
%
|
|
|
1.7
|
%
|
|
Rest of World
|
|
|
|
|
|
149.6
|
|
|
|
142.0
|
|
|
|
5.4
|
%
|
|
|
4.6
|
%
|
|
Total
|
|
|
|
|
|
355.0
|
|
|
|
349.7
|
|
|
|
1.5
|
%
|
|
|
1.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heart Valves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
|
18.9
|
|
|
|
20.9
|
|
|
|
(9.6
|
%)
|
|
|
(9.7
|
%)
|
|
Europe
|
|
|
|
|
|
30.9
|
|
|
|
33.6
|
|
|
|
(8.0
|
%)
|
|
|
(6.7
|
%)
|
|
Rest of World
|
|
|
|
|
|
52.8
|
|
|
|
48.8
|
|
|
|
8.2
|
%
|
|
|
7.5
|
%
|
|
Total
|
|
|
|
|
|
102.6
|
|
|
|
103.3
|
|
|
|
(0.7
|
%)
|
|
|
(0.6
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cardiac Surgery
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
|
129.2
|
|
|
|
134.0
|
|
|
|
(3.6
|
%)
|
|
|
(3.6
|
%)
|
|
Europe
|
|
|
|
|
|
126.0
|
|
|
|
128.2
|
|
|
|
(1.7
|
%)
|
|
|
(0.5
|
%)
|
|
Rest of World
|
|
|
|
|
|
202.4
|
|
|
|
190.8
|
|
|
|
6.1
|
%
|
|
|
5.3
|
%
|
|
Total
|
|
|
|
|
|
457.6
|
|
|
|
453.0
|
|
|
|
1.0
|
%
|
|
|
1.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
|
5.6
|
|
|
|
7.5
|
|
|
|
(25.3
|
%)
|
|
|
(25.0
|
%)
|
|
Europe
|
|
|
|
|
|
142.8
|
|
|
|
149.1
|
|
|
|
(4.2
|
%)
|
|
|
(3.6
|
%)
|
|
Rest of World
|
|
|
|
|
|
33.8
|
|
|
|
31.4
|
|
|
|
7.6
|
%
|
|
|
9.5
|
%
|
|
Total
|
|
|
|
|
|
182.2
|
|
|
|
188.1
|
|
|
|
(3.1
|
%)
|
|
|
(2.3
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Neuromodulation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
|
231.4
|
|
|
|
220.9
|
|
|
|
4.8
|
%
|
|
|
4.7
|
%
|
|
Europe
|
|
|
|
|
|
25.5
|
|
|
|
24.2
|
|
|
|
5.4
|
%
|
|
|
8.4
|
%
|
|
Rest of World
|
|
|
|
|
|
18.3
|
|
|
|
15.8
|
|
|
|
15.8
|
%
|
|
|
15.6
|
%
|
|
Total
|
|
|
|
|
|
275.2
|
|
|
|
260.9
|
|
|
|
5.5
|
%
|
|
|
5.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
Europe
|
|
|
|
|
|
-
|
|
|
|
0.1
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
Rest of World
|
|
|
|
|
|
1.1
|
|
|
|
1.2
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
Total
|
|
|
|
|
|
1.1
|
|
|
|
1.3
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
|
366.1
|
|
|
|
362.4
|
|
|
|
1.0
|
%
|
|
|
1.0
|
%
|
|
Europe
|
|
|
|
|
|
294.3
|
|
|
|
301.7
|
|
|
|
(2.5
|
%)
|
|
|
(1.4
|
%)
|
|
Rest of World
|
|
|
|
|
|
255.7
|
|
|
|
239.2
|
|
|
|
6.9
|
%
|
|
|
6.5
|
%
|
|
Total
|
|
|
|
|
|
916.2
|
|
|
|
903.3
|
|
|
|
1.4
|
%
|
|
|
1.7
|
%
|
|
|
|
* 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 September 30,
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
$309.7
|
|
|
|
$295.3
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
108.2
|
|
|
|
106.5
|
|
|
|
|
|
Product remediation
|
|
|
|
|
1.6
|
|
|
|
0.7
|
|
|
|
|
|
Gross Profit
|
|
|
|
|
199.8
|
|
|
|
188.1
|
|
|
|
6.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
|
121.2
|
|
|
|
109.2
|
|
|
|
|
|
Research and development
|
|
|
|
|
31.4
|
|
|
|
32.2
|
|
|
|
|
|
Merger and integration expense
|
|
|
|
|
2.0
|
|
|
|
7.6
|
|
|
|
|
|
Restructuring expense
|
|
|
|
|
0.8
|
|
|
|
4.4
|
|
|
|
|
|
Amortization of intangibles
|
|
|
|
|
12.4
|
|
|
|
11.8
|
|
|
|
|
|
Total operating expenses
|
|
|
|
|
167.7
|
|
|
|
165.1
|
|
|
|
1.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
|
|
32.1
|
|
|
|
23.0
|
|
|
|
39.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
|
(1.2
|
)
|
|
|
(2.9
|
)
|
|
|
|
|
Foreign exchange and other gains
|
|
|
|
|
0.5
|
|
|
|
1.2
|
|
|
|
|
|
Income before income taxes
|
|
|
|
|
31.3
|
|
|
|
21.3
|
|
|
|
46.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses from equity method investments
|
|
|
|
|
(1.6
|
)
|
|
|
(13.1
|
)
|
|
|
|
|
Income tax expense
|
|
|
|
|
1.9
|
|
|
|
9.7
|
|
|
|
|
|
Net income (loss)
|
|
|
|
|
$27.8
|
|
|
|
($1.6
|
)
|
|
|
1,837.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Common Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
$0.58
|
|
|
|
($0.03
|
)
|
|
|
|
|
Diluted
|
|
|
|
|
$0.57
|
|
|
|
($0.03
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
48.2
|
|
|
|
49.1
|
|
|
|
|
|
Diluted
|
|
|
|
|
48.5
|
|
|
|
49.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Gross Profit (1)
|
|
|
|
|
$203.1
|
|
|
|
$190.4
|
|
|
|
6.7
|
%
|
|
Adjusted SG&A (1)
|
|
|
|
|
113.3
|
|
|
|
104.0
|
|
|
|
8.9
|
%
|
|
Adjusted R&D (1)
|
|
|
|
|
29.4
|
|
|
|
31.2
|
|
|
|
(5.8
|
%)
|
|
Adjusted Income from Operations (1)
|
|
|
|
|
60.3
|
|
|
|
55.2
|
|
|
|
9.2
|
%
|
|
Adjusted Net Income (1)
|
|
|
|
|
45.1
|
|
|
|
38.3
|
|
|
|
17.8
|
%
|
|
Adjusted Diluted Earnings Per Share (1)
|
|
|
|
|
$0.93
|
|
|
|
$0.78
|
|
|
|
19.2
|
%
|
|
|
|
|
|
Statistics (as a % of net sales, except for income tax rate)
|
|
|
|
|
|
|
|
|
GAAP Three Months Ended September 30,
|
|
|
Adjusted (1) Three Months Ended September 30,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|
Gross Profit
|
|
|
|
|
|
64.5
|
%
|
|
63.7
|
%
|
|
|
65.6
|
%
|
|
64.5
|
%
|
|
SG&A
|
|
|
|
|
|
39.1
|
%
|
|
37.0
|
%
|
|
|
36.6
|
%
|
|
35.2
|
%
|
|
R&D
|
|
|
|
|
|
10.1
|
%
|
|
10.9
|
%
|
|
|
9.5
|
%
|
|
10.6
|
%
|
|
Income from Operations
|
|
|
|
|
|
10.4
|
%
|
|
7.8
|
%
|
|
|
19.5
|
%
|
|
18.7
|
%
|
|
Net income (loss)
|
|
|
|
|
|
9.0
|
%
|
|
(0.5
|
%)
|
|
|
14.6
|
%
|
|
13.0
|
%
|
|
Income Tax Rate
|
|
|
|
|
|
6.1
|
%
|
|
45.7
|
%
|
|
|
22.0
|
%
|
|
25.5
|
%
|
|
|
(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)
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
$916.2
|
|
|
$903.3
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
318.6
|
|
|
360.7
|
|
|
|
|
|
Product remediation
|
|
|
|
|
2.6
|
|
|
2.2
|
|
|
|
|
|
Gross Profit
|
|
|
|
|
595.0
|
|
|
540.4
|
|
|
|
10.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
|
353.9
|
|
|
345.7
|
|
|
|
|
|
Research and development
|
|
|
|
|
104.1
|
|
|
94.1
|
|
|
|
|
|
Merger and integration expense
|
|
|
|
|
7.7
|
|
|
20.5
|
|
|
|
|
|
Restructuring expense
|
|
|
|
|
12.1
|
|
|
37.2
|
|
|
|
|
|
Amortization of intangibles
|
|
|
|
|
35.4
|
|
|
34.0
|
|
|
|
|
|
Total operating expenses
|
|
|
|
|
513.2
|
|
|
531.5
|
|
|
|
(3.4
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
|
|
81.8
|
|
|
8.8
|
|
|
|
829.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
|
(4.6
|
)
|
|
(5.5
|
)
|
|
|
|
|
Gain on acquisition of Caisson Interventional, LLC
|
|
|
|
|
39.4
|
|
|
-
|
|
|
|
|
|
Foreign exchange and other gains
|
|
|
|
|
1.0
|
|
|
-
|
|
|
|
|
|
Income before income taxes
|
|
|
|
|
117.6
|
|
|
3.3
|
|
|
|
3,463.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses from equity method investments
|
|
|
|
|
(20.1
|
)
|
|
(19.4
|
)
|
|
|
|
|
Income tax expense
|
|
|
|
|
10.9
|
|
|
16.9
|
|
|
|
|
|
Net income (loss)
|
|
|
|
|
$86.6
|
|
|
($33.0
|
)
|
|
|
362.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) Per Common Share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
$1.80
|
|
|
($0.67
|
)
|
|
|
|
|
Diluted
|
|
|
|
|
$1.79
|
|
|
($0.67
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
48.1
|
|
|
49.0
|
|
|
|
|
|
Diluted
|
|
|
|
|
48.3
|
|
|
49.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Gross Profit (1)
|
|
|
|
|
$602.1
|
|
|
$584.5
|
|
|
|
3.0
|
%
|
|
Adjusted SG&A (1)
|
|
|
|
|
332.0
|
|
|
330.5
|
|
|
|
0.5
|
%
|
|
Adjusted R&D (1)
|
|
|
|
|
90.6
|
|
|
92.5
|
|
|
|
(2.1
|
%)
|
|
Adjusted Income from Operations (1)
|
|
|
|
|
179.4
|
|
|
161.5
|
|
|
|
11.1
|
%
|
|
Adjusted Net Income (1)
|
|
|
|
|
128.0
|
|
|
107.8
|
|
|
|
18.7
|
%
|
|
Adjusted Diluted Earnings Per Share (1)
|
|
|
|
|
$2.65
|
|
|
$2.20
|
|
|
|
20.5
|
%
|
|
|
|
|
|
Statistics (as a % of net sales, except for income tax rate)
|
|
|
|
|
|
|
GAAP Nine Months Ended September 30,
|
|
|
Adjusted (1) Nine Months Ended September 30,
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Gross Profit
|
|
|
|
|
|
64.9
|
%
|
|
|
59.8
|
%
|
|
|
65.7
|
%
|
|
|
64.7
|
%
|
|
SG&A
|
|
|
|
|
|
38.6
|
%
|
|
|
38.3
|
%
|
|
|
36.2
|
%
|
|
|
36.6
|
%
|
|
R&D
|
|
|
|
|
|
11.4
|
%
|
|
|
10.4
|
%
|
|
|
9.9
|
%
|
|
|
10.2
|
%
|
|
Income from Operations
|
|
|
|
|
|
8.9
|
%
|
|
|
1.0
|
%
|
|
|
19.6
|
%
|
|
|
17.9
|
%
|
|
Net Income (loss)
|
|
|
|
|
|
9.5
|
%
|
|
|
(3.7
|
%)
|
|
|
14.0
|
%
|
|
|
11.9
|
%
|
|
Income Tax Rate
|
|
|
|
|
|
9.3
|
%
|
|
|
514.5
|
%
|
|
|
22.5
|
%
|
|
|
26.3
|
%
|
|
|
(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 September 30, 2017
|
|
Sales
|
|
Gross Profit
|
|
Income
from
Operations
|
|
Net Income
|
|
Diluted EPS
|
|
|
GAAP Financial Measures
|
|
$309.7
|
|
$199.8
|
|
$32.1
|
|
$27.8
|
|
$0.57
|
|
|
Specified Items
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger and integration expenses (A)
|
|
|
|
|
|
2.2
|
|
2.1
|
|
0.04
|
|
|
Restructuring expenses (B)
|
|
|
|
|
|
0.8
|
|
0.7
|
|
0.01
|
|
|
Depreciation and amortization (C)
|
|
|
|
1.4
|
|
13.9
|
|
11.0
|
|
0.23
|
|
|
Product remediation (D)
|
|
|
|
1.6
|
|
1.6
|
|
1.1
|
|
0.02
|
|
|
Caisson acquisition (E)
|
|
|
|
|
|
1.5
|
|
0.9
|
|
0.02
|
|
|
Other income / (expenses) & litigations (F)
|
|
|
|
0.1
|
|
2.5
|
|
1.0
|
|
0.02
|
|
|
Equity compensation (G)
|
|
|
|
0.1
|
|
5.7
|
|
3.5
|
|
0.07
|
|
|
Certain interest adjustments (H)
|
|
|
|
|
|
|
|
0.1
|
|
0.00
|
|
|
Certain tax adjustments (I)
|
|
|
|
|
|
|
|
(3.1
|
)
|
(0.06
|
)
|
|
Adjusted financial measures
|
|
$309.7
|
|
$203.1
|
|
$60.3
|
|
$45.1
|
|
$0.93
|
|
|
|
|
GAAP results for the three months ended September 30, 2017
include:
|
|
(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
|
|
(F)
|
|
Contingent consideration related to acquisitions and legal expenses
primarily related to 3T Heater-Cooler defense and other matters
|
|
(G)
|
|
Includes $5.1m related to SG&A, $0.5m related to R&D and $0.1m
related to COGS
|
|
(H)
|
|
Primarily interest related to intellectual property migration and
other non-recurring impacts to interest expense
|
|
(I)
|
|
Primarily relates to discrete tax items and the tax impact of
intercompany transactions
|
|
|
|
Three Months Ended September 30, 2016
|
|
Sales
|
|
Gross Profit
|
|
Income
from
Operations
|
|
Net Income
(Loss)
|
|
Diluted EPS
|
|
|
GAAP Financial Measures
|
|
$295.3
|
|
$188.1
|
|
$23.0
|
|
($1.6
|
)
|
($0.03
|
)
|
|
Specified Items
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger and integration expenses (A)
|
|
|
|
|
|
7.6
|
|
5.8
|
|
0.12
|
|
|
Restructuring expenses (B)
|
|
|
|
|
|
4.4
|
|
2.9
|
|
0.06
|
|
|
Depreciation and amortization (C)
|
|
|
|
1.3
|
|
12.7
|
|
9.5
|
|
0.19
|
|
|
Product remediation (D)
|
|
|
|
0.7
|
|
0.7
|
|
0.4
|
|
0.01
|
|
|
Other income (expenses) & litigations (E)
|
|
|
|
|
|
1.7
|
|
1.1
|
|
0.02
|
|
|
Write-off of investments in minorities (F)
|
|
|
|
|
|
|
|
9.1
|
|
0.18
|
|
|
Impact of inventory step-up (G)
|
|
|
|
0.2
|
|
0.2
|
|
0.1
|
|
0.00
|
|
|
Equity compensation (H)
|
|
|
|
0.1
|
|
5.0
|
|
4.0
|
|
0.08
|
|
|
Certain tax adjustments (I)
|
|
|
|
|
|
|
|
6.9
|
|
0.14
|
|
|
Adjusted financial measures
|
|
$295.3
|
|
$190.4
|
|
$55.2
|
|
$38.3
|
|
$0.78
|
|
|
|
|
GAAP results for the three months ended September 30, 2016
include:
|
|
(A)
|
|
Merger and integration expenses related to our legacy companies
|
|
(B)
|
|
Restructuring expenses, including CRM restructuring announced
March 10, 2016, severance related to
corporate and shared service synergies and organizational changes
|
|
(C)
|
|
Includes depreciation and amortization associated with final
purchase price accounting
|
|
(D)
|
|
Costs related to the 3T Heater-Cooler remediation plan
|
|
(E)
|
|
Legal expense related to 3T Heater-Cooler defense and other matters
|
|
(F)
|
|
$9.2m related to impairment of Respicardia buy-out option, $0.7m
related to increasing amortization following final PPA
|
|
(G)
|
|
Amortization of inventory step-up associated with final purchase
price accounting
|
|
(H)
|
|
Includes $4.7m related to SG&A, $0.2m related to R&D and $0.1m
related to COGS
|
|
(I)
|
|
Relates to the impact of restructuring initiatives and IP migration
|
|
|
|
|
|
|
|
|
*
|
|
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)
|
|
|
|
Nine Months Ended September 30, 2017
|
|
|
|
|
|
Sales
|
|
|
Gross Profit
|
|
|
Income
from
Operations
|
|
|
Net Income
|
|
|
Diluted EPS
|
|
GAAP Financial Measures
|
|
|
|
|
|
$916.2
|
|
|
|
$595.0
|
|
|
|
$81.8
|
|
|
|
$86.6
|
|
|
|
$1.79
|
|
|
Specified Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger and integration expenses (A)
|
|
|
|
|
|
|
|
|
|
|
|
7.0
|
|
|
|
5.7
|
|
|
|
0.12
|
|
|
Restructuring expenses (B)
|
|
|
|
|
|
|
|
|
|
|
|
12.1
|
|
|
|
9.8
|
|
|
|
0.20
|
|
|
Depreciation and amortization (C)
|
|
|
|
|
|
|
|
|
4.0
|
|
|
|
40.3
|
|
|
|
30.8
|
|
|
|
0.64
|
|
|
Product remediation (D)
|
|
|
|
|
|
|
|
|
2.6
|
|
|
|
2.6
|
|
|
|
1.8
|
|
|
|
0.04
|
|
|
Caisson acquisition (E)
|
|
|
|
|
|
|
|
|
0.2
|
|
|
|
13.6
|
|
|
|
(29.1
|
)
|
|
|
(0.60
|
)
|
|
Highlife impairment (F)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13.0
|
|
|
|
0.27
|
|
|
Other income / (expenses) & litigations (G)
|
|
|
|
|
|
|
|
|
0.1
|
|
|
|
7.9
|
|
|
|
1.5
|
|
|
|
0.03
|
|
|
Equity compensation (H)
|
|
|
|
|
|
|
|
|
0.2
|
|
|
|
14.3
|
|
|
|
10.6
|
|
|
|
0.22
|
|
|
Certain interest adjustments (I)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.8
|
|
|
|
0.02
|
|
|
Certain tax adjustments (J)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3.4
|
)
|
|
|
(0.07
|
)
|
|
Adjusted financial measures
|
|
|
|
|
|
$916.2
|
|
|
|
$602.1
|
|
|
|
$179.4
|
|
|
|
$128.0
|
|
|
|
$2.65
|
|
|
|
|
GAAP results for the nine months ended September 30, 2017 include:
|
|
(A)
|
|
Merger and integration expenses related to our legacy companies
|
|
(B)
|
|
Restructuring expenses related to 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
|
|
(F)
|
|
Impairment of investment and notes receivables
|
|
(G)
|
|
Contingent consideration related to acquisitions and legal expenses
mostly related to 3T Heater-Cooler defense and other matters
|
|
(H)
|
|
Includes $13.2m related to SG&A, $0.9m related to R&D and less than
$0.2m related to COGS
|
|
(I)
|
|
Primarily interest related to intellectual property migration and
other non-recurring impacts to interest expense
|
|
(J)
|
|
Primarily relates to discrete tax items and the tax impact of
intercompany transactions
|
|
|
|
Nine Months Ended September 30, 2016
|
|
|
|
|
|
Sales
|
|
|
Gross Profit
|
|
|
Income
from
Operations
|
|
|
Net Income
(Loss)
|
|
|
Diluted EPS
|
|
GAAP Financial Measures
|
|
|
|
|
|
$903.3
|
|
|
|
$540.4
|
|
|
|
$8.8
|
|
|
|
($33.0
|
)
|
|
|
($0.67
|
)
|
|
Specified Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger and integration expenses (A)
|
|
|
|
|
|
|
|
|
|
|
|
20.5
|
|
|
|
16.9
|
|
|
|
0.35
|
|
|
Restructuring expenses (B)
|
|
|
|
|
|
|
|
|
|
|
|
37.2
|
|
|
|
33.4
|
|
|
|
0.68
|
|
|
Depreciation and amortization (C)
|
|
|
|
|
|
|
|
|
5.9
|
|
|
|
39.5
|
|
|
|
29.2
|
|
|
|
0.59
|
|
|
Product remediation (D)
|
|
|
|
|
|
|
|
|
2.2
|
|
|
|
2.2
|
|
|
|
0.9
|
|
|
|
0.02
|
|
|
Other income/ (expenses) & litigations (E)
|
|
|
|
|
|
|
|
|
|
|
|
2.7
|
|
|
|
1.2
|
|
|
|
0.02
|
|
|
Write-off of investments in minorities (F)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.1
|
|
|
|
0.18
|
|
|
Impact of inventory step-up (G)
|
|
|
|
|
|
|
|
|
35.2
|
|
|
|
35.2
|
|
|
|
24.1
|
|
|
|
0.49
|
|
|
Equity compensation (H)
|
|
|
|
|
|
|
|
|
0.8
|
|
|
|
15.3
|
|
|
|
12.9
|
|
|
|
0.26
|
|
|
Certain tax adjustments (I)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13.2
|
|
|
|
0.27
|
|
|
Adjusted financial measures
|
|
|
|
|
|
$903.3
|
|
|
|
$584.5
|
|
|
|
$161.5
|
|
|
|
$107.8
|
|
|
|
$2.20
|
|
|
|
|
GAAP results for the nine months ended September 30, 2016 include:
|
|
(A)
|
|
Merger and integration expenses related to our legacy companies
|
|
(B)
|
|
Restructuring expenses, including CRM restructuring announced
March 10, 2016, severance related to corporate and shared service
synergies and organizational changes
|
|
(C)
|
|
Includes depreciation and amortization associated with final
purchase price accounting
|
|
(D)
|
|
Costs related to the 3T Heater-Cooler remediation plan
|
|
(E)
|
|
$5.0m write-off of receivables from Greece distributor, $4.7m
reimbursement of damages related to 2012 earthquake in Mirandola
(Italy), and $2.5m legal expenses primarily associated with
litigation related to 3T Heater-Cooler devices
|
|
(F)
|
|
$9.2m related to the impairment of Respicardia buy-out option;
$0.7m related to increasing amortization following final PPA
|
|
(G)
|
|
Amortization of inventory step-up associated with final purchase
price accounting
|
|
(H)
|
|
Includes $13.7m related to SG&A, $0.8m related to R&D and $0.8m
related to COGS
|
|
(I)
|
|
Relates to the impact of restructuring initiatives and IP migration
|
|
|
|
|
|
*
|
|
Numbers may not add up precisely due to rounding.
|
|
|
|
LIVANOVA PLC AND SUBSIDIARIES
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
(U.S. dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
|
ASSETS
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$65.2
|
|
|
$39.8
|
|
Accounts receivable, net
|
|
|
314.0
|
|
|
275.7
|
|
Inventories
|
|
|
214.6
|
|
|
183.5
|
|
Prepaid and refundable taxes
|
|
|
59.0
|
|
|
60.6
|
|
Assets held for sale
|
|
|
14.1
|
|
|
4.5
|
|
Prepaid expenses and other current assets
|
|
|
55.2
|
|
|
56.0
|
|
Total Current Assets
|
|
|
722.1
|
|
|
620.1
|
|
Property, plant and equipment, net
|
|
|
213.8
|
|
|
223.8
|
|
Goodwill
|
|
|
781.1
|
|
|
691.7
|
|
Intangible assets, net
|
|
|
717.6
|
|
|
609.2
|
|
Investments
|
|
|
46.4
|
|
|
61.1
|
|
Deferred tax assets, net
|
|
|
4.4
|
|
|
6.0
|
|
Other assets
|
|
|
117.9
|
|
|
130.7
|
|
Total Assets
|
|
|
$2,603.1
|
|
|
$2,342.6
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
Current debt obligations
|
|
|
$52.1
|
|
|
$47.7
|
|
Accounts payable
|
|
|
102.7
|
|
|
93.0
|
|
Accrued liabilities and other
|
|
|
92.2
|
|
|
75.6
|
|
Taxes payable
|
|
|
29.0
|
|
|
22.3
|
|
Accrued employee compensation and related benefits
|
|
|
80.5
|
|
|
78.3
|
|
Total Current Liabilities
|
|
|
356.4
|
|
|
316.8
|
|
Long-term debt obligations
|
|
|
71.9
|
|
|
75.2
|
|
Deferred income taxes liability
|
|
|
152.1
|
|
|
172.5
|
|
Long-term employee compensation and related benefits
|
|
|
34.0
|
|
|
31.7
|
|
Other long-term liabilities
|
|
|
74.4
|
|
|
39.5
|
|
Total Liabilities
|
|
|
$688.7
|
|
|
$635.7
|
|
Total Stockholders' Equity
|
|
|
1,914.4
|
|
|
1,706.9
|
|
Total Liabilities and Stockholders' Equity
|
|
|
$2,603.1
|
|
|
$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)
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2017
|
|
2016
|
|
Operating Activities:
|
|
|
|
|
|
|
Net Income (loss)
|
|
|
$86.6
|
|
|
($33.0
|
)
|
|
Non-cash items included in net income (loss):
|
|
|
|
|
|
|
Depreciation
|
|
|
27.9
|
|
|
30.2
|
|
|
Amortization
|
|
|
35.4
|
|
|
34.0
|
|
|
Stock-based compensation
|
|
|
14.3
|
|
|
15.6
|
|
|
Deferred income tax benefit
|
|
|
(27.3
|
)
|
|
(10.2
|
)
|
|
Losses from equity method investments
|
|
|
20.1
|
|
|
19.4
|
|
|
Gain on acquisition of Caisson Interventional, LLC
|
|
|
(39.4
|
)
|
|
-
|
|
|
Impairment of property, plant and equipment
|
|
|
4.6
|
|
|
-
|
|
|
Amortization of income taxes from inter-company transfers of property
|
|
|
23.8
|
|
|
17.1
|
|
|
Other
|
|
|
3.4
|
|
|
8.8
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
(19.1
|
)
|
|
(11.0
|
)
|
|
Inventories
|
|
|
(11.0
|
)
|
|
20.6
|
|
|
Other current and non-current assets
|
|
|
(17.8
|
)
|
|
(25.8
|
)
|
|
Restructuring reserve
|
|
|
(12.8
|
)
|
|
15.0
|
|
|
Accounts payable and accrued current and non-current liabilities
|
|
|
(15.0
|
)
|
|
(31.1
|
)
|
|
Net cash provided by operating activities
|
|
|
73.7
|
|
|
49.3
|
|
|
|
|
|
|
|
|
|
Investing Activities:
|
|
|
|
|
|
|
Purchases of property, plant and equipment and other
|
|
|
(24.0
|
)
|
|
(28.9
|
)
|
|
Acquisition of Caisson Interventional, LLC, net of cash acquired
|
|
|
(14.2
|
)
|
|
-
|
|
|
Proceeds from sale of cost method investment
|
|
|
3.2
|
|
|
-
|
|
|
Proceeds from asset sales
|
|
|
5.3
|
|
|
0.2
|
|
|
Purchases of cost and equity method investments
|
|
|
(5.2
|
)
|
|
(8.1
|
)
|
|
Loans to cost and equity method investees
|
|
|
(6.9
|
)
|
|
(6.6
|
)
|
|
Purchases of short-term investments
|
|
|
-
|
|
|
(7.1
|
)
|
|
Maturities of short-term investments
|
|
|
-
|
|
|
14.1
|
|
|
Net cash used in investing activities
|
|
|
(41.8
|
)
|
|
(36.4
|
)
|
|
|
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
|
|
Change in short-term borrowing, net
|
|
|
(18.1
|
)
|
|
(33.8
|
)
|
|
Proceeds from short-term borrowing (maturities greater than 90 days)
|
|
|
20.0
|
|
|
-
|
|
|
Repayment of long-term debt obligations
|
|
|
(11.6
|
)
|
|
(11.4
|
)
|
|
Proceeds from exercise of stock options
|
|
|
3.2
|
|
|
7.9
|
|
|
Repayment of trade receivable advances
|
|
|
-
|
|
|
(23.8
|
)
|
|
Proceeds from long-term debt obligations
|
|
|
-
|
|
|
8.0
|
|
|
Share repurchases
|
|
|
-
|
|
|
(11.1
|
)
|
|
Other
|
|
|
(3.6
|
)
|
|
1.2
|
|
|
Net cash used in financing activities
|
|
|
(10.0
|
)
|
|
(63.0
|
)
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
3.5
|
|
|
1.0
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
25.4
|
|
|
(49.0
|
)
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
39.8
|
|
|
112.6
|
|
|
Cash and cash equivalents at end of period
|
|
|
$65.2
|
|
|
$63.6
|
|
|
|
|
|
|
|
|
|
* Numbers may not add up precisely due to rounding.
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20171102005407/en/
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