LivaNova Reports Fourth-Quarter and Full-Year 2024 Results; Issues 2025 Guidance
LivaNova PLC (Nasdaq: LIVN) reported strong financial results for Q4 and full-year 2024, with full-year revenue reaching $1.25 billion, an 8.7% increase on a reported basis. The company achieved Q4 revenue of $321.8 million, up 3.8% reported and 6.8% organic compared to the prior year.
Full-year 2024 U.S. GAAP diluted EPS was $1.16, while adjusted diluted EPS reached $3.38. The company generated $183 million in operating cash flow and $162.9 million in adjusted free cash flow.
For 2025, LivaNova expects revenue growth of 5-6% on a constant-currency basis and 6-7% on an organic basis, with adjusted diluted EPS projected between $3.65-$3.75.
The company announced positive clinical milestones, including the OSPREY study for sleep apnea meeting its endpoints and publication of VNS Therapy data for treatment-resistant depression showing clinically meaningful therapeutic effects.
LivaNova PLC (Nasdaq: LIVN) ha riportato risultati finanziari solidi per il quarto trimestre e l'intero anno 2024, con ricavi annuali che hanno raggiunto 1,25 miliardi di dollari, un aumento dell'8,7% su base riportata. L'azienda ha registrato ricavi nel quarto trimestre pari a 321,8 milioni di dollari, in aumento del 3,8% su base riportata e del 6,8% in termini organici rispetto all'anno precedente.
Per l'intero anno 2024, l'EPS diluito GAAP degli Stati Uniti è stato di 1,16 dollari, mentre l'EPS diluito rettificato ha raggiunto 3,38 dollari. L'azienda ha generato 183 milioni di dollari in flusso di cassa operativo e 162,9 milioni di dollari in flusso di cassa libero rettificato.
Per il 2025, LivaNova prevede una crescita dei ricavi del 5-6% su base costante e del 6-7% su base organica, con un EPS diluito rettificato previsto tra 3,65-3,75 dollari.
L'azienda ha annunciato traguardi clinici positivi, tra cui lo studio OSPREY per l'apnea notturna che ha raggiunto i suoi obiettivi e la pubblicazione dei dati sulla terapia VNS per la depressione resistente al trattamento che mostrano effetti terapeutici clinicamente significativi.
LivaNova PLC (Nasdaq: LIVN) reportó resultados financieros sólidos para el cuarto trimestre y el año completo 2024, con ingresos anuales que alcanzaron 1.25 mil millones de dólares, un aumento del 8.7% en base reportada. La compañía logró ingresos en el cuarto trimestre de 321.8 millones de dólares, un aumento del 3.8% reportado y del 6.8% orgánico en comparación con el año anterior.
El EPS diluido GAAP de EE. UU. para el año completo 2024 fue de 1.16 dólares, mientras que el EPS diluido ajustado alcanzó 3.38 dólares. La compañía generó 183 millones de dólares en flujo de efectivo operativo y 162.9 millones de dólares en flujo de efectivo libre ajustado.
Para 2025, LivaNova espera un crecimiento de ingresos del 5-6% en base a moneda constante y del 6-7% en base orgánica, con un EPS diluido ajustado proyectado entre 3.65-3.75 dólares.
La compañía anunció hitos clínicos positivos, incluido el estudio OSPREY para la apnea del sueño que cumplió con sus objetivos y la publicación de datos de la terapia VNS para la depresión resistente al tratamiento que muestran efectos terapéuticos clínicamente significativos.
LivaNova PLC (Nasdaq: LIVN)는 2024년 4분기 및 연간 재무 결과가 매우 좋았다고 보고했으며, 연간 수익은 12억 5천만 달러에 도달하여 보고 기준으로 8.7% 증가했습니다. 이 회사는 4분기 수익이 3억 2천 1백 80만 달러로, 전년 대비 보고 기준으로 3.8%, 유기적으로 6.8% 증가했다고 발표했습니다.
2024년 전체에 대한 미국 GAAP 희석 EPS는 1.16달러였고, 조정된 희석 EPS는 3.38달러에 도달했습니다. 이 회사는 1억 8천 3백만 달러의 운영 현금 흐름과 1억 6천 2백 9십만 달러의 조정된 자유 현금 흐름을 생성했습니다.
2025년을 위해 LivaNova는 변동환율 기준으로 5-6%, 유기적 기준으로 6-7%의 수익 성장을 예상하며, 조정된 희석 EPS는 3.65-3.75달러로 예상하고 있습니다.
회사는 수면 무호흡증에 대한 OSPREY 연구가 목표를 달성하고 치료 저항성 우울증에 대한 VNS 치료 데이터가 임상적으로 의미 있는 치료 효과를 보여주는 긍정적인 임상 이정표를 발표했습니다.
LivaNova PLC (Nasdaq: LIVN) a annoncé de solides résultats financiers pour le quatrième trimestre et l'année complète 2024, avec des revenus annuels atteignant 1,25 milliard de dollars, soit une augmentation de 8,7% sur une base déclarée. L'entreprise a réalisé des revenus au quatrième trimestre de 321,8 millions de dollars, en hausse de 3,8% sur une base déclarée et de 6,8% organiquement par rapport à l'année précédente.
Pour l'année complète 2024, le BPA dilué GAAP des États-Unis était de 1,16 dollar, tandis que le BPA dilué ajusté a atteint 3,38 dollars. L'entreprise a généré 183 millions de dollars de flux de trésorerie opérationnel et 162,9 millions de dollars de flux de trésorerie libre ajusté.
Pour 2025, LivaNova prévoit une croissance des revenus de 5 à 6% sur une base de monnaie constante et de 6 à 7% sur une base organique, avec un BPA dilué ajusté projeté entre 3,65 et 3,75 dollars.
L'entreprise a annoncé des jalons cliniques positifs, y compris l'étude OSPREY sur l'apnée du sommeil atteignant ses objectifs et la publication des données sur la thérapie VNS pour la dépression résistante au traitement montrant des effets thérapeutiques cliniquement significatifs.
LivaNova PLC (Nasdaq: LIVN) hat im vierten Quartal und im Gesamtjahr 2024 starke finanzielle Ergebnisse berichtet, mit einem Jahresumsatz von 1,25 Milliarden Dollar, was einem Anstieg von 8,7% auf Basis der Berichterstattung entspricht. Das Unternehmen erzielte im vierten Quartal einen Umsatz von 321,8 Millionen Dollar, was einem Anstieg von 3,8% auf Basis der Berichterstattung und 6,8% organisch im Vergleich zum Vorjahr entspricht.
Der verwässerte EPS nach U.S. GAAP für das Gesamtjahr 2024 betrug 1,16 Dollar, während der angepasste verwässerte EPS 3,38 Dollar erreichte. Das Unternehmen generierte 183 Millionen Dollar an operativem Cashflow und 162,9 Millionen Dollar an angepasstem Free Cashflow.
Für 2025 erwartet LivaNova ein Umsatzwachstum von 5-6% auf Basis konstanter Währung und 6-7% auf organischer Basis, wobei der angepasste verwässerte EPS zwischen 3,65-3,75 Dollar prognostiziert wird.
Das Unternehmen gab positive klinische Meilensteine bekannt, darunter die OSPREY-Studie zur Schlafapnoe, die ihre Endpunkte erreicht hat, sowie die Veröffentlichung von Daten zur VNS-Therapie bei behandlungsresistenter Depression, die klinisch bedeutende therapeutische Effekte zeigen.
- Q4 2024 revenue increased 3.8% to $321.8 million
- Full-year 2024 revenue grew 8.7% to $1.25 billion
- Full-year 2024 adjusted diluted EPS of $3.38 vs $2.80 in 2023
- Operating cash flow of $183 million for 2024
- Adjusted free cash flow of $162.9 million for 2024
- OSPREY clinical study for sleep apnea met primary endpoints
- Cardiopulmonary segment revenue increased 13.1% for full-year 2024
- Neuromodulation revenue increased 6.6% for full-year 2024
- Foreign currency expected to be a 1.5-2.0% headwind in 2025
- Neuromodulation revenue growth in Q4 was minimal at 0.5%
- Decline in neuromodulation revenue in Europe region
- Pending SNIA litigation with Italian Supreme Court hearing on February 26, 2025
Insights
LivaNova delivered robust financial results for Q4 and full-year 2024, with notable acceleration in profitability metrics that signal strengthening operational execution. The $1.25 billion in annual revenue represents 10.7% organic growth, significantly outpacing the broader medical device industry's mid-single-digit average.
The cardiopulmonary segment emerged as the company's growth engine, expanding 11.2% on a constant-currency basis in Q4 and 14.1% for the full year. This performance reflects successful commercialization of the Essenz Perfusion System – a next-generation heart-lung machine that commands premium pricing while reducing total procedure costs through improved efficiency. The strong consumables demand also indicates growing procedure volumes and market share gains in cardiac surgery.
More concerning is the neuromodulation segment's tepid 1.0% Q4 growth, suggesting market saturation in vagus nerve stimulation for epilepsy. However, the positive clinical data from the RECOVER study could potentially expand LivaNova's addressable market into treatment-resistant depression – a massive opportunity with approximately 2.8 million patients in the U.S. alone. Similarly, the successful OSPREY trial for obstructive sleep apnea represents another significant growth vector, targeting a $10+ billion global market currently dominated by CPAP devices with notorious compliance issues.
The company's margin profile showed remarkable improvement, with adjusted operating income increasing 41.3% year-over-year to $239.2 million. This expansion stems from improved manufacturing efficiencies, favorable product mix, and disciplined SG&A management. The $162.9 million in adjusted free cash flow (representing 13% of revenue) marks a significant improvement from historical performance, providing increased flexibility for R&D investment, debt reduction, or potential tuck-in acquisitions.
The 2025 guidance projects continued growth momentum but at a more moderate pace than 2024's exceptional performance. The 6-7% organic growth forecast and $3.65-$3.75 adjusted EPS target (up 8-11% from 2024) suggest management's confidence in the core business while acknowledging macroeconomic uncertainties. The projected $135-155 million adjusted free cash flow represents a slight decline from 2024, likely reflecting increased investments in clinical programs and commercial infrastructure.
Investors should monitor the upcoming Italian Supreme Court decision on the SNIA litigation, which represents a potential liability that could impact LivaNova's balance sheet. However, the company's improved cash position provides a stronger buffer against adverse outcomes than in previous years.
LivaNova's 2024 results reveal a company successfully executing its strategic transformation, with particularly impressive momentum in its cardiopulmonary franchise. The 10.7% organic revenue growth significantly outperforms the broader cardiovascular device market's 4-5% growth rate, indicating meaningful market share gains.
The Essenz Perfusion System has emerged as a key growth catalyst, driving the cardiopulmonary segment's 14.1% constant-currency growth. This next-generation heart-lung machine represents LivaNova's most significant product launch in a decade, offering meaningful clinical advantages through advanced sensor technology and improved user interface. Early adoption metrics suggest the platform is successfully penetrating both the replacement and greenfield markets, with particularly strong traction in North America and Japan.
The clinical milestone achievements in 2024 represent potential inflection points for LivaNova's growth trajectory. The OSPREY study results for obstructive sleep apnea (OSA) demonstrated not only statistical significance but clinically meaningful improvements with a 65% reduction in the apnea-hypopnea index. This positions LivaNova to potentially disrupt the $10+ billion OSA market currently dominated by CPAP devices and Inspire's hypoglossal nerve stimulation. With a potential FDA submission in late 2025, commercial launch could occur by 2027.
Similarly, the RECOVER study data for treatment-resistant depression (TRD) represents LivaNova's entry into a significantly underserved market. The published articles demonstrating VNS Therapy's superiority over sham treatment provide compelling evidence for reimbursement discussions with CMS. The TRD indication could potentially double the addressable patient population for LivaNova's neuromodulation platform.
The geographic divergence in neuromodulation performance – growth in the U.S. versus decline in Europe – reflects both reimbursement challenges in key European markets and the impact of competitive neurostimulation alternatives. This regional variability highlights the importance of the company's efforts to expand indications and improve device form factors.
The 41.3% increase in adjusted operating income to $239.2 million demonstrates successful margin expansion initiatives, including manufacturing optimization in Costa Rica and Italy, SKU rationalization, and improved pricing strategies. The adjusted operating margin of 19.1% still lags behind medical device peers (typically 25-30%), suggesting further room for improvement.
The 2025 guidance reflects a prudent outlook given macroeconomic uncertainties, with the slight projected decline in free cash flow likely reflecting increased R&D investments in the promising OSA and TRD programs. The pending Italian Supreme Court decision represents a near-term risk, though the company's strengthened balance sheet provides greater resilience against potential adverse outcomes.
Financial Summary and Highlights(1)
-
Fourth-quarter revenue of
$321.8 million 3.8% on a reported basis,4.7% on a constant-currency basis, and6.8% on an organic basis as compared to the prior-year period -
Fourth-quarter
U.S. GAAP diluted earnings per share of$1.02 $0.81 -
Full-year 2024 revenue of
$1.25 billion 8.7% on a reported basis,9.3% on a constant-currency basis, and10.7% on an organic basis as compared to the prior-year -
Full-year 2024 U.S. GAAP diluted earnings per share of
$1.16 $3.38 -
Full-year 2024 net cash provided by operating activities of
$183.0 million $162.9 million -
Expects full-year 2025 revenue to grow between
5.0% and6.0% on a constant-currency basis and between6.0% and7.0% on an organic basis. Adjusted diluted earnings per share for 2025 is expected to be in the range of$3.65 $3.75 $135 million $155 million - Announced the OSPREY clinical study for moderate-to-severe obstructive sleep apnea met its primary safety and efficacy endpoints as well as a significant reduction of apnea-hypopnea index and oxygenation desaturation index against baseline values through six months of therapy
- Announced the publication of two pivotal articles chronicling the treatment-resistant depression unipolar cohort data set in the RECOVER clinical study; the articles concluded that active VNS TherapyTM, as compared to sham, safely and effectively demonstrated clinically meaningful therapeutic effects on depressive symptoms and positive effects on quality of life and daily function
- In January 2025, announced Natalia Kozmina's appointment as Chief Human Resources Officer
"In 2024, LivaNova delivered strong revenue growth, expanded operating margin, and significantly improved cash generation," said Vladimir Makatsaria, Chief Executive Officer of LivaNova. "We are pleased with these results and the clinical milestones achieved in both the obstructive sleep apnea and difficult-to-treat depression programs. We look forward to building on this momentum in 2025 with a continued focus on talent, innovation, growth, and operational excellence."
(1) Constant-currency percent change, organic revenue percent change, organic revenue, adjusted operating income, adjusted diluted earnings per share, and adjusted free cash flow are non-GAAP measures. Constant-currency percent change excludes the impact from fluctuations in the various currencies in which the Company operates as compared to reported percent change. Organic revenue percent change excludes the impact of acquisitions, divestitures, and currency translation effects. Organic revenue excludes the impact of acquisitions and divestitures. For an explanation of these and other non-GAAP measures used in this news release, see the section entitled "Use of Non-GAAP Financial Measures." For reconciliations of certain non-GAAP measures, see the tables that accompany this news release. As discussed in the section entitled "Use of Non-GAAP Financial Measures" below, the Company is unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures but would not impact the non-GAAP measures. Accordingly, the Company is unable to reconcile the forward-looking non-GAAP financial measures included in this paragraph to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts. |
Fourth-Quarter 2024 Results
The following table summarizes revenue by segment (in millions):
|
|
Three Months Ended
|
|
% Change |
|
Constant-
|
||||
|
|
2024 |
|
2023 |
|
|
||||
Cardiopulmonary |
|
|
|
|
|
9.9 |
% |
|
11.2 |
% |
Neuromodulation |
|
137.6 |
|
136.9 |
|
0.5 |
% |
|
1.0 |
% |
Other Revenue (1) |
|
2.5 |
|
7.9 |
|
(67.8 |
)% |
|
(67.2 |
)% |
Total Net Revenue |
|
|
|
|
|
3.8 |
% |
|
4.7 |
% |
Less: ACS (2) |
|
0.1 |
|
6.3 |
|
(98.7 |
)% |
|
N/A |
|
Total Organic Net Revenue |
|
|
|
|
|
5.9 |
% |
|
6.8 |
% |
(1) |
"Other Revenue" includes revenue from the Company’s former ACS reportable segment, as well as rental and site services income not allocated to segments. |
(2) |
Includes the results from the wind-down portion of the Company's former ACS reportable segment. |
•
|
Numbers may not add precisely due to rounding. Segment financial information presented herein reflects LivaNova's change in segments, effective in the first quarter 2024, for all periods presented. |
Fourth-quarter 2024 cardiopulmonary revenue increased
Fourth-quarter 2024 neuromodulation revenue increased
Earnings Analysis
On a
On a
Full-Year 2024 Results
The following table summarizes revenue by segment (in millions):
|
|
Year Ended
|
|
% Change |
|
Constant-
|
||||
|
|
2024 |
|
2023 |
|
|
||||
Cardiopulmonary |
|
|
|
|
|
13.1 |
% |
|
14.1 |
% |
Neuromodulation |
|
554.2 |
|
519.7 |
|
6.6 |
% |
|
7.0 |
% |
Other Revenue (1) |
|
15.7 |
|
29.7 |
|
(47.2 |
)% |
|
(47.1 |
)% |
Total Net Revenue |
|
|
|
|
|
8.7 |
% |
|
9.3 |
% |
Less: ACS (2) |
|
11.6 |
|
25.2 |
|
(54.0 |
)% |
|
N/A |
|
Total Organic Net Revenue |
|
|
|
|
|
10.1 |
% |
|
10.7 |
% |
(1) |
"Other Revenue" includes revenue from the Company’s former ACS reportable segment, as well as rental and site services income not allocated to segments. |
(2) |
Includes the results from the wind-down portion of the Company's former ACS reportable segment. |
• |
Numbers may not add precisely due to rounding. Segment financial information presented herein reflects LivaNova's change in segments, effective in the first quarter 2024, for all periods presented. |
Full-year 2024 cardiopulmonary revenue increased
Full-year 2024 neuromodulation revenue increased
Earnings Analysis
On a
On a
Additional Update
On February 26, 2025, the Italian Supreme Court will hold a public hearing in connection with the SNIA litigation. While the Company does not anticipate a decision at the hearing, it expects a decision during the first half of 2025 in response to all of the appeals of LivaNova and counter-appeals submitted by the Italian Public Administrations.
Full-Year 2025 Guidance
LivaNova expects full-year 2025 revenue to grow between
Adjusted diluted earnings per share for 2025 is expected to be in the range of
As discussed in the section entitled "Use of Non-GAAP Financial Measures" below, the Company is unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures but would not impact the non-GAAP measures. Accordingly, the Company is unable to reconcile the forward-looking non-GAAP financial measures included in this section to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts.
Webcast and Conference Call Instructions
The Company will host an audiocast for interested parties commencing at 1 p.m.
About LivaNova
LivaNova PLC is a global medical technology company built on nearly five decades of experience and a relentless commitment to provide hope for patients and their families through medical technologies, delivering life-changing solutions in select neurological and cardiac conditions. Headquartered in
Use of Non-GAAP Financial Measures
To supplement financial measures presented in accordance with generally accepted accounting principles in
In this news release, the Company refers to revenue and percentage change in revenue on a comparable, constant-currency, and organic basis. Company management believes that these non-GAAP measures provide a useful way to evaluate the revenue performance of LivaNova and to compare the revenue performance of current periods to prior periods on a consistent basis. Constant-currency percent change measures the change in revenue between current and prior-year periods using average exchange rates in effect during the applicable prior-year period. Organic revenue percent change excludes the impact of acquisitions, divestitures, and currency translation effects.
LivaNova calculates forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. For example, forward-looking net revenue growth projections are estimated on a constant-currency basis and exclude the impact of foreign currency fluctuations. Forward-looking non-GAAP adjusted diluted earnings per share guidance exclude items such as, but not limited to, changes in fair value of derivatives and contingent consideration arrangements and asset impairment charges that would be included in comparable GAAP financial measures. The most directly comparable GAAP measure for adjusted free cash flow is net cash provided by operating activities. Adjusted free cash flow is defined as net cash provided by operating activities less cash used for the purchase of property, plant, and equipment excluding the impact of 3T litigation settlement payments, cybersecurity incident insurance proceeds, CARES Act tax stimulus benefits, SNIA financing costs, and gains related to dividends received from investments and further adjusted as needed for other charges, expenses or gains that may not be indicative of the Company's operational performance. However, non-GAAP financial adjustments on a forward-looking basis are subject to uncertainty and variability as they are dependent on many factors, including but not limited to, the effect of foreign currency exchange fluctuations, impacts from potential acquisitions or divestitures, the ultimate outcome of legal proceedings, gains or losses on the potential sale of businesses or other assets, restructuring costs, merger and integration activities, changes in fair value of derivatives, and contingent consideration arrangements, asset impairment charges and the tax impact of the aforementioned items, tax law changes, or other tax matters. Accordingly, the Company does not reconcile non-GAAP financial measures on a forward-looking basis as it is impractical to do so without unreasonable effort.
Adjusted financial measures such as organic revenue, adjusted cost of sales, adjusted gross profit, adjusted selling, general, and administrative expense, adjusted research and development expense, adjusted other operating expenses, adjusted operating income, adjusted income before tax, adjusted income tax expense, adjusted net income, and adjusted diluted earnings per share, are measures that LivaNova generally uses to facilitate management review of the operational performance of the company, to serve as a basis for strategic planning, and in the design of incentive compensation plans. Additionally, the Company uses the non-GAAP liquidity measure adjusted free cash flow. The Company believes that the presentation of these adjusted financial measures allows investors to evaluate the Company’s operational performance for different periods on a more comparable and consistent basis, and with other medical technology companies by adjusting for items that are not related to the operational performance of the Company or incurred in the ordinary course of business.
Safe Harbor Statement
Certain statements in this news release, other than statements of historical or current fact, 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 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, the Company’s actual financial results, performance, achievements, or prospects may differ materially from those expressed or implied by these forward-looking statements. Generally, forward-looking statements can be identified 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 the Company’s control, that could cause the Company’s actual results to differ materially from the forward-looking statements contained in this news release, and include, but are not limited to, the following risks and uncertainties: volatility in the global market and worldwide economic conditions, including as caused by the invasion of
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 the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other documents filed from time to time with the
Readers are cautioned not to place undue reliance on the Company's forward-looking statements, which speak only as of the date of this news release. The Company undertakes no obligation to update publicly any of the forward-looking statements in this news 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 LivaNova updates one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect to those or other forward-looking statements.
VNS Therapy and Essenz are trademarks of LivaNova
LIVANOVA PLC |
||||||||||
NET REVENUE - UNAUDITED |
||||||||||
( |
||||||||||
|
|
Three Months Ended December 31, |
||||||||
|
|
2024 |
|
2023 |
|
% Change |
|
Constant-Currency
|
||
Cardiopulmonary |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
6.7 |
% |
|
6.7 |
% |
|
|
47.6 |
|
46.2 |
|
3.1 |
% |
|
4.0 |
% |
Rest of World (1) |
|
69.5 |
|
58.6 |
|
18.6 |
% |
|
21.4 |
% |
|
|
181.7 |
|
165.3 |
|
9.9 |
% |
|
11.2 |
% |
Neuromodulation |
|
|
|
|
|
|
|
|
||
|
|
110.5 |
|
106.5 |
|
3.8 |
% |
|
3.8 |
% |
|
|
14.0 |
|
16.4 |
|
(14.6 |
)% |
|
(15.6 |
)% |
Rest of World (1) |
|
13.1 |
|
14.1 |
|
(6.8 |
)% |
|
(1.0 |
)% |
|
|
137.6 |
|
136.9 |
|
0.5 |
% |
|
1.0 |
% |
Other Revenue (2) |
|
2.5 |
|
7.9 |
|
(67.8 |
)% |
|
(67.2 |
)% |
Totals |
|
|
|
|
|
|
|
|
||
|
|
175.1 |
|
173.2 |
|
1.1 |
% |
|
1.1 |
% |
|
|
61.6 |
|
62.6 |
|
(1.5 |
)% |
|
(1.1 |
)% |
Rest of World (1) |
|
85.1 |
|
74.4 |
|
14.5 |
% |
|
17.9 |
% |
|
|
|
|
|
|
3.8 |
% |
|
4.7 |
% |
(1) |
" |
(2) |
"Other Revenue" includes revenue from the Company’s former ACS reportable segment, as well as rental and site services income not allocated to segments. |
• |
Numbers may not add precisely due to rounding. Segment financial information presented herein reflects LivaNova's change in segments, effective in the first quarter 2024, for all periods presented. |
LIVANOVA PLC |
||||||||||
NET REVENUE - UNAUDITED |
||||||||||
( |
||||||||||
|
|
Year Ended December 31, |
||||||||
|
|
2024 |
|
2023 |
|
% Change |
|
Constant-Currency
|
||
Cardiopulmonary |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
19.8 |
% |
|
19.8 |
% |
|
|
168.0 |
|
157.4 |
|
6.7 |
% |
|
6.2 |
% |
Rest of World (1) |
|
273.0 |
|
244.3 |
|
11.7 |
% |
|
14.3 |
% |
|
|
683.5 |
|
604.1 |
|
13.1 |
% |
|
14.1 |
% |
Neuromodulation |
|
|
|
|
|
|
|
|
||
|
|
441.0 |
|
407.5 |
|
8.2 |
% |
|
8.2 |
% |
|
|
54.9 |
|
57.4 |
|
(4.4 |
)% |
|
(5.6 |
)% |
Rest of World (1) |
|
58.3 |
|
54.8 |
|
6.4 |
% |
|
11.1 |
% |
|
|
554.2 |
|
519.7 |
|
6.6 |
% |
|
7.0 |
% |
Other Revenue (2) |
|
15.7 |
|
29.7 |
|
(47.2 |
)% |
|
(47.1 |
)% |
Totals |
|
|
|
|
|
|
|
|
||
|
|
695.1 |
|
635.0 |
|
9.5 |
% |
|
9.5 |
% |
|
|
220.0 |
|
214.8 |
|
2.4 |
% |
|
1.7 |
% |
Rest of World (1) |
|
338.3 |
|
303.7 |
|
11.4 |
% |
|
14.3 |
% |
|
|
|
|
|
|
8.7 |
% |
|
9.3 |
% |
(1) |
" |
(2) |
"Other Revenue" includes revenue from the Company’s former ACS reportable segment, as well as rental and site services income not allocated to segments. |
• |
Numbers may not add precisely due to rounding. Segment financial information presented herein reflects LivaNova's change in segments, effective in the first quarter 2024, for all periods presented. |
LIVANOVA PLC AND SUBSIDIARIES |
|
|
||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED |
||||||
( |
|
|
||||
|
|
|
|
|
||
|
|
Three Months Ended December 31, |
||||
|
|
2024 |
|
2023 |
||
Net revenue |
|
|
|
|
|
|
Cost of sales |
|
102.5 |
|
|
120.0 |
|
Gross profit |
|
219.4 |
|
|
190.2 |
|
Operating expenses: |
|
|
|
|
||
Selling, general, and administrative |
|
135.6 |
|
|
133.3 |
|
Research and development |
|
43.3 |
|
|
46.2 |
|
Impairment of long-lived assets |
|
— |
|
|
90.0 |
|
Other operating expenses |
|
3.4 |
|
|
8.7 |
|
Operating income (loss) |
|
37.0 |
|
|
(88.0 |
) |
Interest expense |
|
(15.8 |
) |
|
(15.6 |
) |
Foreign exchange and other income/(expense) |
|
35.2 |
|
|
9.3 |
|
Income (loss) before tax |
|
56.5 |
|
|
(94.3 |
) |
Income tax expense (benefit) |
|
0.6 |
|
|
(110.7 |
) |
Net income |
|
|
|
|
|
|
|
|
|
|
|
||
Basic income per share |
|
|
|
|
|
|
Diluted income per share |
|
|
|
|
|
|
|
|
|
|
|
||
Weighted average common shares outstanding: |
|
|
|
|
||
Basic |
|
54.4 |
|
|
54.0 |
|
Diluted |
|
54.7 |
|
|
54.3 |
|
• |
Numbers may not add precisely due to rounding. |
Adjusted Financial Measures ( |
||||
|
|
Three Months Ended December 31, |
||
|
|
2024 |
|
2023 |
Adjusted SG&A |
|
|
|
|
Adjusted R&D |
40.3 |
|
42.1 |
|
Adjusted operating income |
55.6 |
|
48.0 |
|
Adjusted net income |
44.2 |
|
47.3 |
|
Adjusted diluted earnings per share |
|
|
|
|
Statistics (as a % of net revenue, except for income tax rate) - Unaudited |
||||||||||||
|
|
GAAP Three Months Ended
|
|
Adjusted Three Months Ended
|
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Gross profit |
68.2 |
% |
|
61.3 |
% |
|
69.3 |
% |
|
67.7 |
% |
|
SG&A |
42.1 |
% |
|
43.0 |
% |
|
39.5 |
% |
|
38.7 |
% |
|
R&D |
13.5 |
% |
|
14.9 |
% |
|
12.5 |
% |
|
13.6 |
% |
|
Operating income (loss) |
11.5 |
% |
|
(28.4 |
)% |
|
17.3 |
% |
|
15.5 |
% |
|
Net income |
17.4 |
% |
|
5.3 |
% |
|
13.7 |
% |
|
15.2 |
% |
|
Income tax rate |
1.0 |
% | 117.3 |
% | 19.8 |
% | (2.9 |
)% | ||||
LIVANOVA PLC AND SUBSIDIARIES |
|
|
||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED |
||||||
( |
|
|
||||
|
|
|
|
|
||
|
|
Year Ended December 31, |
||||
|
|
2024 |
|
|
2023 |
|
Net revenue |
|
|
|
|
|
|
Cost of sales |
|
382.6 |
|
|
382.3 |
|
Gross profit |
|
870.9 |
|
|
771.3 |
|
Operating expenses: |
|
|
|
|
||
Selling, general, and administrative |
|
526.3 |
|
|
518.1 |
|
Research and development |
|
182.5 |
|
|
193.8 |
|
Impairment of long-lived assets |
|
— |
|
|
90.0 |
|
Other operating expenses |
|
33.0 |
|
|
37.8 |
|
Operating income (loss) |
|
129.1 |
|
|
(68.5 |
) |
Interest expense |
|
(63.1 |
) |
|
(58.9 |
) |
Loss on debt extinguishment |
|
(25.5 |
) |
|
— |
|
Foreign exchange and other income/(expense) |
|
47.8 |
|
|
46.1 |
|
Income (loss) before tax |
|
88.3 |
|
|
(81.2 |
) |
Income tax expense (benefit) |
|
25.1 |
|
|
(98.9 |
) |
Loss from equity method investments |
|
— |
|
|
(0.1 |
) |
Net income |
|
|
|
|
|
|
|
|
|
|
|
||
Basic income per share |
|
|
|
|
|
|
Diluted income per share |
|
|
|
|
|
|
|
|
|
|
|
||
Weighted average common shares outstanding: |
|
|
|
|
||
Basic |
|
54.2 |
|
|
53.9 |
|
Diluted |
|
54.6 |
|
|
54.2 |
|
• |
Numbers may not add precisely due to rounding. |
Adjusted Financial Measures ( |
||||
|
|
Year Ended December 31, |
||
|
|
2024 |
|
2023 |
Adjusted SG&A |
|
|
|
|
Adjusted R&D |
171.2 |
|
178.1 |
|
Adjusted operating income |
239.2 |
|
169.3 |
|
Adjusted net income |
184.3 |
|
152.0 |
|
Adjusted diluted earnings per share |
|
|
|
|
Statistics (as a % of net revenue, except for income tax rate) - Unaudited |
||||||||||||
|
GAAP Year Ended
|
Adjusted Year Ended
|
||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||
Gross profit |
69.5 |
% |
66.9 |
% |
70.2 |
% |
69.6 |
% |
||||
SG&A |
42.0 |
% |
44.9 |
% |
37.4 |
% |
39.5 |
% |
||||
R&D |
14.6 |
% |
16.8 |
% |
13.7 |
% |
15.4 |
% |
||||
Operating income (loss) |
10.3 |
% |
(5.9 |
)% |
19.1 |
% |
14.7 |
% |
||||
Net income |
5.0 |
% |
1.5 |
% |
14.7 |
% |
13.2 |
% |
||||
Income tax rate |
28.4 |
% |
121.7 |
% |
21.0 |
% |
5.7 |
% |
||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED
( |
||||||||||||||||||||
|
|
Specified Items |
|
|||||||||||||||||
Three Months Ended
|
GAAP
|
Restructuring
|
Depreciation and
|
Financing
|
Contingent
|
Certain Legal &
|
Stock-based
|
Certain Tax
|
Certain
|
Adjusted
|
||||||||||
Cost of sales |
|
|
$— |
|
( |
) |
$— |
|
( |
) |
$— |
|
( |
) |
$— |
|
$— |
|
|
|
Gross profit percent |
68.2 |
% |
— |
% |
0.5 |
% |
— |
% |
0.5 |
% |
— |
% |
0.1 |
% |
— |
% |
— |
% |
69.3 |
% |
Selling, general, and administrative |
135.6 |
|
— |
|
(2.6 |
) |
— |
|
— |
|
(0.3 |
) |
(5.8 |
) |
— |
|
— |
|
127.0 |
|
Selling, general, and administrative as a percent of net revenue |
42.1 |
% |
— |
% |
(0.8 |
)% |
— |
% |
— |
% |
(0.1 |
)% |
(1.8 |
)% |
— |
% |
— |
% |
39.5 |
% |
Research and development |
43.3 |
|
— |
|
— |
|
— |
|
(1.4 |
) |
(0.8 |
) |
(0.9 |
) |
— |
|
— |
|
40.3 |
|
Research and development as a percent of net revenue |
13.5 |
% |
— |
% |
— |
% |
— |
% |
(0.4 |
)% |
(0.2 |
)% |
(0.3 |
)% |
— |
% |
— |
% |
12.5 |
% |
Other operating expenses |
3.4 |
|
(0.5 |
) |
— |
|
— |
|
— |
|
(2.9 |
) |
— |
|
— |
|
— |
|
— |
|
Operating income |
37.0 |
|
0.5 |
|
4.2 |
|
— |
|
3.0 |
|
4.0 |
|
6.9 |
|
— |
|
— |
|
55.6 |
|
Operating margin percent |
11.5 |
% |
0.2 |
% |
1.3 |
% |
— |
% |
0.9 |
% |
1.2 |
% |
2.2 |
% |
— |
% |
— |
% |
17.3 |
% |
Net income |
55.9 |
|
0.5 |
|
4.2 |
|
(27.6 |
) |
3.0 |
|
4.0 |
|
6.9 |
|
(10.3 |
) |
7.6 |
|
44.2 |
|
Net income as a percent of net revenue |
17.4 |
% |
0.2 |
% |
1.3 |
% |
(8.6 |
)% |
0.9 |
% |
1.2 |
% |
2.2 |
% |
(3.2 |
)% |
2.4 |
% |
13.7 |
% |
Diluted EPS |
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
( |
) |
|
|
|
|
GAAP results for the three months ended December 31, 2024 include: |
|
(1) |
Restructuring expenses related to organizational changes |
(2) |
Depreciation and amortization associated with purchase price accounting |
(3) |
Mark-to-market adjustments for the 2025 and 2029 Notes embedded and capped call derivatives |
(4) |
Remeasurement of contingent consideration related to the ImThera acquisition |
(5) |
Legal expenses primarily related to 3T Heater-Cooler defense, 3T Heater-Cooler litigation provision, cybersecurity incident costs net of insurance reimbursement, and Medical Device Regulation ("MDR") costs |
(6) |
Non-cash expenses associated with stock-based compensation costs |
(7) |
The impact of valuation allowances, discrete tax items, the tax impact of intercompany transactions, and the tax impact on non-GAAP adjustments |
(8) |
Interest expense on the Term Facilities, non-cash interest expense on the 2025 and 2029 Notes and Revolving Credit Facility, and interest income on the collateral for the SNIA litigation guarantee and delayed draw on Term Facilities |
• |
Numbers may not add precisely due to rounding. |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED
( |
||||||||||||||||||||||
|
|
Specified Items |
|
|||||||||||||||||||
Three Months Ended December 31, 2023 |
GAAP
|
Restructuring
|
Depreciation
|
Impairment (3) |
Financing
|
Contingent
|
Certain Legal
|
Stock-based
|
Certain Tax
|
Certain
|
Adjusted
|
|||||||||||
Cost of sales |
|
|
$— |
|
( |
) |
( |
) |
$— |
|
( |
) |
$— |
|
( |
) |
$— |
|
$— |
|
|
|
Gross profit percent |
61.3 |
% |
— |
% |
1.2 |
% |
4.1 |
% |
— |
% |
1.1 |
% |
— |
% |
0.1 |
% |
— |
% |
— |
% |
67.7 |
% |
Selling, general, and administrative |
133.3 |
|
— |
|
(2.8 |
) |
— |
|
— |
|
— |
|
(3.6 |
) |
(7.0 |
) |
— |
|
— |
|
119.9 |
|
Selling, general, and administrative as a percent of net revenue |
43.0 |
% |
— |
% |
(0.9 |
)% |
— |
% |
— |
% |
— |
% |
(1.2 |
)% |
(2.3 |
)% |
— |
% |
— |
% |
38.7 |
% |
Research and development |
46.2 |
|
— |
|
— |
|
— |
|
— |
|
(1.5 |
) |
(1.6 |
) |
(1.1 |
) |
— |
|
— |
|
42.1 |
|
Research and development as a percent of net revenue |
14.9 |
% |
— |
% |
— |
% |
— |
% |
— |
% |
(0.5 |
)% |
(0.5 |
)% |
(0.3 |
)% |
— |
% |
— |
% |
13.6 |
% |
Other operating expenses |
8.7 |
|
0.1 |
|
— |
|
— |
|
— |
|
— |
|
(8.8 |
) |
— |
|
— |
|
— |
|
— |
|
Operating (loss) income |
(88.0 |
) |
(0.1 |
) |
6.4 |
|
102.6 |
|
— |
|
4.8 |
|
14.0 |
|
8.3 |
|
— |
|
— |
|
48.0 |
|
Operating margin percent |
(28.4 |
)% |
— |
% |
2.1 |
% |
33.1 |
% |
— |
% |
1.6 |
% |
4.5 |
% |
2.7 |
% |
— |
% |
— |
% |
15.5 |
% |
Net income |
16.3 |
|
(0.1 |
) |
6.4 |
|
102.6 |
|
(2.6 |
) |
4.8 |
|
12.4 |
|
8.3 |
|
(109.3 |
) |
8.3 |
|
47.3 |
|
Net income as a percent of net revenue |
5.3 |
% |
— |
% |
2.1 |
% |
33.1 |
% |
(0.8 |
)% |
1.6 |
% |
4.0 |
% |
2.7 |
% |
(35.2 |
)% |
2.7 |
% |
15.2 |
% |
Diluted EPS |
|
|
$— |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
( |
) |
|
|
|
|
GAAP results for the three months ended December 31, 2023 include: |
|
(1) |
Restructuring expenses related to organizational changes |
(2) |
Depreciation and amortization associated with purchase price accounting |
(3) |
ACS inventory obsolescence adjustment and impairment of long-lived assets |
(4) |
Mark-to-market adjustment for the embedded and capped call derivatives associated with the 2025 Notes |
(5) |
Remeasurement of contingent consideration related to acquisitions |
(6) |
3T Heater-Cooler litigation provision, legal expenses primarily related to 3T Heater-Cooler defense, costs related to the SNIA matter, MDR costs, and cybersecurity incident costs |
(7) |
Non-cash expenses associated with stock-based compensation costs |
(8) |
The impact of valuation allowances, discrete tax items, R&D tax credits, the tax impact of intercompany transactions, and the tax impact on non-GAAP adjustments |
(9) |
Non-cash interest expense on the 2025 Notes and Revolving Credit Facility, interest expense on the Term Facilities, and interest income on the collateral for the SNIA litigation guarantee and delayed draw on Term Facilities |
• |
Numbers may not add precisely due to rounding. |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED
( |
||||||||||||||||||||||
|
|
Specified Items |
|
|||||||||||||||||||
Year Ended December 31, 2024 |
GAAP
|
Restructuring
|
Depreciation
|
Impairment (3) |
Financing
|
Contingent
|
Certain
|
Stock-based
|
Certain Tax
|
Certain
|
Adjusted
|
|||||||||||
Cost of sales |
|
|
$— |
|
( |
) |
$— |
|
$— |
|
( |
) |
|
|
( |
) |
$— |
|
$— |
|
|
|
Gross profit percent |
69.5 |
% |
— |
% |
0.5 |
% |
— |
% |
— |
% |
0.1 |
% |
(0.1 |
)% |
0.1 |
% |
— |
% |
— |
% |
70.2 |
% |
Selling, general, and administrative |
526.3 |
|
— |
|
(10.5 |
) |
— |
|
— |
|
— |
|
(20.4 |
) |
(26.3 |
) |
— |
|
— |
|
469.1 |
|
Selling, general, and administrative as a percent of net revenue |
42.0 |
% |
— |
% |
(0.8 |
)% |
— |
% |
— |
% |
— |
% |
(1.6 |
)% |
(2.1 |
)% |
— |
% |
— |
% |
37.4 |
% |
Research and development |
182.5 |
|
— |
|
0.2 |
|
— |
|
— |
|
(2.0 |
) |
(3.1 |
) |
(6.4 |
) |
— |
|
— |
|
171.2 |
|
Research and development as a percent of net revenue |
14.6 |
% |
— |
% |
— |
% |
— |
% |
— |
% |
(0.2 |
)% |
(0.2 |
)% |
(0.5 |
)% |
— |
% |
— |
% |
13.7 |
% |
Other operating expenses |
33.0 |
|
(13.4 |
) |
— |
|
— |
|
— |
|
— |
|
(19.7 |
) |
— |
|
— |
|
— |
|
— |
|
Operating income |
129.1 |
|
13.4 |
|
17.1 |
|
— |
|
— |
|
3.3 |
|
42.4 |
|
33.9 |
|
— |
|
— |
|
239.2 |
|
Operating margin percent |
10.3 |
% |
1.1 |
% |
1.4 |
% |
— |
% |
— |
% |
0.3 |
% |
3.4 |
% |
2.7 |
% |
— |
% |
— |
% |
19.1 |
% |
Net income |
63.2 |
|
13.4 |
|
17.1 |
|
5.8 |
|
(1.9 |
) |
3.3 |
|
42.4 |
|
33.9 |
|
(24.0 |
) |
31.0 |
|
184.3 |
|
Net income as a percent of net revenue |
5.0 |
% |
1.1 |
% |
1.4 |
% |
0.5 |
% |
(0.1 |
)% |
0.3 |
% |
3.4 |
% |
2.7 |
% |
(1.9 |
)% |
2.5 |
% |
14.7 |
% |
Diluted EPS |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
( |
) |
|
|
|
|
GAAP results for the year ended December 31, 2024 include: |
|
(1) |
Restructuring expenses related to organizational changes |
(2) |
Depreciation and amortization associated with purchase price accounting |
(3) |
Impairment of investment in ShiraTronics, Inc. |
(4) |
Loss on debt extinguishment, as well as mark-to-market adjustments for the 2025 & 2029 Notes embedded and capped call derivatives |
(5) |
Remeasurement of contingent consideration related to the ImThera acquisition |
(6) |
3T Heater-Cooler litigation provision, legal expenses primarily related to 3T Heater-Cooler defense, cybersecurity incident costs net of insurance reimbursement, MDR costs, and costs related to the SNIA matter |
(7) |
Non-cash expenses associated with stock-based compensation costs |
(8) |
The impact of valuation allowances, discrete tax items, the tax impact of intercompany transactions, and the tax impact on non-GAAP adjustments |
(9) |
Interest expense on the Term Facilities, non-cash interest expense on the 2025 and 2029 Notes and Revolving Credit Facility, and interest income on the collateral for the SNIA litigation guarantee and delayed draw on Term Facilities |
• |
Numbers may not add precisely due to rounding. |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED
( |
||||||||||||||||||||||||
|
|
Specified Items |
|
|||||||||||||||||||||
Year Ended December 31, 2023 |
GAAP
|
Merger and
|
Restructuring
|
Depreciation
|
Impairment (4) |
Financing
|
Contingent
|
Certain Legal &
|
Stock-based
|
Certain Tax
|
Certain
|
Adjusted
|
||||||||||||
Cost of sales |
|
|
$— |
|
$— |
|
( |
) |
( |
) |
$— |
|
( |
) |
$— |
|
( |
) |
$— |
|
$— |
|
|
|
Gross profit percent |
66.9 |
% |
— |
% |
— |
% |
1.3 |
% |
1.1 |
% |
— |
% |
0.3 |
% |
— |
% |
0.1 |
% |
— |
% |
— |
% |
69.6 |
% |
Selling, general, and administrative |
518.1 |
|
— |
|
— |
|
(11.5 |
) |
— |
|
— |
|
— |
|
(21.3 |
) |
(29.4 |
) |
— |
|
— |
|
456.0 |
|
Selling, general, and administrative as a percent of net revenue |
44.9 |
% |
— |
% |
— |
% |
(1.0 |
)% |
— |
% |
— |
% |
— |
% |
(1.8 |
)% |
(2.6 |
)% |
— |
% |
— |
% |
39.5 |
% |
Research and development |
193.8 |
|
— |
|
— |
|
0.2 |
|
— |
|
— |
|
(5.6 |
) |
(4.3 |
) |
(6.0 |
) |
— |
|
— |
|
178.1 |
|
Research and development as a percent of net revenue |
16.8 |
% |
— |
% |
— |
% |
— |
% |
— |
% |
— |
% |
(0.5 |
)% |
(0.4 |
)% |
(0.5 |
)% |
— |
% |
— |
% |
15.4 |
% |
Other operating expenses |
37.8 |
|
(0.1 |
) |
(1.0 |
) |
— |
|
— |
|
— |
|
— |
|
(36.8 |
) |
— |
|
— |
|
— |
|
— |
|
Operating (loss) income |
(68.5 |
) |
0.1 |
|
1.0 |
|
26.0 |
|
102.6 |
|
— |
|
9.4 |
|
62.4 |
|
36.4 |
|
— |
|
— |
|
169.3 |
|
Operating margin percent |
(5.9 |
)% |
— |
% |
0.1 |
% |
2.3 |
% |
8.9 |
% |
— |
% |
0.8 |
% |
5.4 |
% |
3.2 |
% |
— |
% |
— |
% |
14.7 |
% |
Net income |
17.5 |
|
0.1 |
|
1.0 |
|
26.0 |
|
102.6 |
|
(24.2 |
) |
9.4 |
|
60.9 |
|
36.4 |
|
(108.1 |
) |
30.5 |
|
152.0 |
|
Net income as a percent of net revenue |
1.5 |
% |
— |
% |
0.1 |
% |
2.3 |
% |
8.9 |
% |
(2.1 |
)% |
0.8 |
% |
5.3 |
% |
3.2 |
% |
(9.4 |
)% |
2.6 |
% |
13.2 |
% |
Diluted EPS |
|
|
$— |
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
( |
) |
|
|
|
|
GAAP results for the year ended December 31, 2023 include: |
|
(1) |
Merger and integration expenses related to the acquisition of ALung Technologies, Inc. |
(2) |
Restructuring expenses related to organizational changes |
(3) |
Depreciation and amortization associated with purchase price accounting |
(4) |
ACS inventory obsolescence adjustment and impairment of long-lived assets |
(5) |
Mark-to-market adjustment for the embedded and capped call derivatives associated with the 2025 Notes |
(6) |
Remeasurement of contingent consideration related to acquisitions |
(7) |
3T Heater-Cooler litigation provision, legal expenses primarily related to 3T Heater-Cooler defense, the Saluggia site provision, costs related to the SNIA matter, MDR costs, and cybersecurity incident costs |
(8) |
Non-cash expenses associated with stock-based compensation costs |
(9) |
The impact of valuation allowances, discrete tax items, R&D tax credits, the tax impact of intercompany transactions, and the tax impact on non-GAAP adjustments |
(10) |
Non-cash interest expense on the 2025 Notes and Revolving Credit Facility, interest expense on the Term Facilities, and interest income on the collateral for the SNIA litigation guarantee and delayed draw on Term Facilities |
• |
Numbers may not add precisely due to rounding. |
LIVANOVA PLC AND SUBSIDIARIES |
||||
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED |
||||
( |
||||
|
|
December 31, 2024 |
|
December 31, 2023 |
ASSETS |
|
|
|
|
Current Assets: |
|
|
|
|
Cash and cash equivalents |
|
|
|
|
Restricted cash |
|
294.7 |
|
311.4 |
Accounts receivable, net of allowance |
|
193.2 |
|
215.1 |
Inventories |
|
147.6 |
|
147.9 |
Prepaid and refundable taxes |
|
30.5 |
|
20.1 |
Prepaid expenses and other current assets |
|
32.4 |
|
27.2 |
Total Current Assets |
|
1,127.2 |
|
988.2 |
Property, plant and equipment, net |
|
170.3 |
|
154.2 |
Goodwill |
|
750.0 |
|
782.9 |
Intangible assets, net |
|
237.3 |
|
261.2 |
Operating lease assets |
|
46.8 |
|
50.8 |
Investments |
|
25.1 |
|
22.8 |
Deferred tax assets |
|
111.9 |
|
118.9 |
Long-term derivative assets |
|
23.7 |
|
38.5 |
Other assets |
|
14.1 |
|
12.1 |
Total Assets |
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current Liabilities: |
|
|
|
|
Current debt obligations |
|
|
|
|
Accounts payable |
|
69.7 |
|
80.8 |
Accrued liabilities and other |
|
118.5 |
|
107.3 |
Current litigation provision liability |
|
12.9 |
|
10.8 |
Taxes payable |
|
32.5 |
|
23.3 |
Accrued employee compensation and related benefits |
|
80.5 |
|
94.6 |
Total Current Liabilities |
|
392.1 |
|
335.0 |
Long-term debt obligations |
|
549.6 |
|
568.5 |
Contingent consideration |
|
84.2 |
|
80.9 |
Deferred tax liabilities |
|
10.9 |
|
11.6 |
Long-term operating lease liabilities |
|
40.1 |
|
45.4 |
Long-term employee compensation and related benefits |
|
12.8 |
|
17.3 |
Long-term derivative liabilities |
|
51.8 |
|
45.6 |
Other long-term liabilities |
|
44.5 |
|
47.7 |
Total Liabilities |
|
1,186.1 |
|
1,151.9 |
Total Stockholders’ Equity |
|
1,320.3 |
|
1,277.6 |
Total Liabilities and Stockholders’ Equity |
|
|
|
|
• Numbers may not add precisely due to rounding. |
LIVANOVA PLC AND SUBSIDIARIES |
|
|
|
|
||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED |
|
|
|
|
||
( |
|
Year Ended December 31, |
||||
|
|
2024 |
|
|
2023 |
|
Operating Activities: |
|
|
|
|
||
Net income |
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||
Stock-based compensation |
|
33.9 |
|
|
36.4 |
|
Loss on debt extinguishment |
|
25.5 |
|
|
— |
|
Remeasurement of derivative instruments, net |
|
(25.3 |
) |
|
(22.9 |
) |
Depreciation |
|
25.1 |
|
|
24.7 |
|
Amortization of debt issuance costs |
|
21.6 |
|
|
19.1 |
|
Amortization |
|
17.2 |
|
|
25.5 |
|
Amortization of operating lease assets |
|
8.8 |
|
|
10.6 |
|
Gain on investment revaluation - Ceribell, Inc. |
|
(7.1 |
) |
|
— |
|
Deferred income tax expense (benefit) |
|
6.8 |
|
|
(114.4 |
) |
Impairment of investments |
|
5.8 |
|
|
— |
|
Remeasurement of contingent consideration to fair value |
|
3.3 |
|
|
9.4 |
|
Impairment of long-lived assets |
|
— |
|
|
90.0 |
|
ACS inventory obsolescence adjustment |
|
— |
|
|
12.6 |
|
Other |
|
3.0 |
|
|
1.1 |
|
Changes in operating assets and liabilities: |
|
|
|
|
||
Accounts receivable, net |
|
11.1 |
|
|
(28.9 |
) |
Inventories |
|
(6.8 |
) |
|
(28.5 |
) |
Other current and non-current assets |
|
(1.6 |
) |
|
15.3 |
|
Accounts payable and accrued current and non-current liabilities |
|
(14.5 |
) |
|
19.2 |
|
Taxes payable |
|
10.9 |
|
|
7.4 |
|
Litigation provision liability |
|
2.3 |
|
|
(19.1 |
) |
Net cash provided by operating activities |
|
183.0 |
|
|
74.9 |
|
Investing Activities: |
|
|
|
|
||
Purchases of property, plant, and equipment |
|
(47.1 |
) |
|
(35.0 |
) |
Purchase of investments |
|
(1.1 |
) |
|
(6.5 |
) |
Other |
|
0.1 |
|
|
1.2 |
|
Net cash used in investing activities |
|
(48.2 |
) |
|
(40.3 |
) |
Financing Activities: |
|
|
|
|
||
Proceeds from long-term debt obligations |
|
335.5 |
|
|
50.0 |
|
Repayment of long-term debt obligations |
|
(247.5 |
) |
|
(21.6 |
) |
Payment of debt extinguishment costs |
|
(39.0 |
) |
|
— |
|
Purchase of capped calls |
|
(31.6 |
) |
|
— |
|
Proceeds from unwind of capped calls |
|
22.5 |
|
|
— |
|
Payment of contingent consideration |
|
(13.8 |
) |
|
— |
|
Shares repurchased from employees for minimum tax withholding |
|
(8.4 |
) |
|
(7.5 |
) |
Proceeds from exercise of stock options |
|
6.3 |
|
|
— |
|
Payment of debt issuance costs |
|
(5.9 |
) |
|
— |
|
Other |
|
0.4 |
|
|
0.6 |
|
Net cash provided by financing activities |
|
18.6 |
|
|
21.5 |
|
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
(7.7 |
) |
|
6.2 |
|
Net increase in cash, cash equivalents, and restricted cash |
|
145.7 |
|
|
62.3 |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
577.9 |
|
|
515.6 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
|
|
|
|
|
• Numbers may not add precisely due to rounding. |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED
( |
|||||||||||||||||
|
Three Months Ended December 31, |
||||||||||||||||
|
2024 |
|
2023 |
||||||||||||||
|
GAAP Financial
|
|
Certain Tax
|
|
Adjusted
|
|
GAAP Financial
|
|
Certain Tax
|
|
Adjusted
|
||||||
Income (loss) before tax |
|
|
|
$— |
|
|
|
|
|
( |
) |
|
$— |
|
|
|
|
Income tax expense (benefit) |
0.6 |
|
|
10.3 |
|
|
10.9 |
|
|
(110.7 |
) |
|
109.3 |
|
|
(1.3 |
) |
Net income |
|
|
|
( |
) |
|
|
|
|
|
|
|
( |
) |
|
|
|
Income tax rate |
1.0 |
% |
|
|
|
19.8 |
% |
|
117.3 |
% |
|
|
|
(2.9 |
)% |
||
|
Year Ended December 31, |
||||||||||||||||
|
2024 |
|
2023 |
||||||||||||||
|
GAAP Financial
|
|
Certain Tax
|
|
Adjusted
|
|
GAAP Financial
|
|
Certain Tax
|
|
Adjusted
|
||||||
Income (loss) before tax |
|
|
|
$— |
|
|
|
|
|
( |
) |
|
$— |
|
|
|
|
Income tax expense (benefit) |
25.1 |
|
|
24.0 |
|
|
49.0 |
|
|
(98.9 |
) |
|
108.1 |
|
|
9.2 |
|
Net income |
|
|
|
( |
) |
|
|
|
|
|
|
|
( |
) |
|
|
|
Income tax rate |
28.4 |
% |
|
|
|
21.0 |
% |
|
121.7 |
% |
|
|
|
5.7 |
% |
||
• Numbers may not add precisely due to rounding. |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED
( |
|||||||||
|
Three Months Ended December 31, |
|
% Change |
|
Constant-
|
||||
|
2024 |
|
2023 |
|
|
||||
GAAP net revenue |
|
|
|
|
3.8 |
% |
|
4.7 |
% |
Less: ACS (1) |
0.1 |
|
6.3 |
|
(98.7 |
)% |
|
N/A |
|
Organic net revenue |
|
|
|
|
5.9 |
% |
|
6.8 |
% |
|
|
|
|
|
|
|
|
||
|
Year Ended December 31, |
|
% Change |
|
Constant-
|
||||
|
2024 |
|
2023 |
|
|
||||
GAAP net revenue |
|
|
|
|
8.7 |
% |
|
9.3 |
% |
Less: ACS (1) |
11.6 |
|
25.2 |
|
(54.0 |
)% |
|
N/A |
|
Organic net revenue |
|
|
|
|
10.1 |
% |
|
10.7 |
% |
(1) |
Includes net revenue from the Company's former ACS reportable segment. |
• |
Numbers may not add precisely due to rounding. |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED
( |
|
|
|
|
|
Year Ended
|
|
Net cash provided by operating activities |
|
|
|
Less: Purchases of plant, property, and equipment |
|
(47.1 |
) |
Less: Cybersecurity incident insurance proceeds |
|
(5.1 |
) |
Add: 3T Heater-Cooler litigation payments |
|
17.4 |
|
Add: SNIA financing and other costs |
|
14.6 |
|
Adjusted free cash flow |
|
|
|
• Numbers may not add precisely due to rounding. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250225878166/en/
Briana Gotlin
Vice President, Investor Relations
Phone: +1 281 895 2382
e-mail: InvestorRelations@livanova.com
Source: LivaNova PLC
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