LivaNova Reports Second-Quarter 2024 Results
LivaNova PLC (Nasdaq: LIVN) reported strong Q2 2024 results, with revenue increasing 8.4% to $318.6 million. Excluding the Advanced Circulatory Support segment wind down, revenue grew 10.8% on a constant-currency basis. U.S. GAAP diluted EPS was $0.30, while adjusted diluted EPS reached $0.93.
The Cardiopulmonary segment saw a 14.5% constant-currency growth, driven by EssenzTM Perfusion System sales. Neuromodulation revenue increased 7.8% on a constant-currency basis. LivaNova raised its full-year 2024 guidance, now expecting revenue growth between 7% and 8% on a constant-currency basis. Adjusted diluted EPS for 2024 is projected to be in the range of $3.10 to $3.20.
LivaNova PLC (Nasdaq: LIVN) ha riportato risultati robusti per il secondo trimestre del 2024, con un aumento del fatturato dell'8,4% a 318,6 milioni di dollari. Escludendo la cessazione del segmento Advanced Circulatory Support, il fatturato è cresciuto del 10,8% su base di valuta costante. L'EPS diluito secondo i principi contabili GAAP statunitensi è stato di 0,30 dollari, mentre l'EPS diluito rettificato ha raggiunto 0,93 dollari.
Il segmento Cardiopulmonare ha visto una crescita del 14,5% su base di valuta costante, sostenuta dalle vendite del sistema di perfusione EssenzTM. I ricavi dalla neuromodulazione sono aumentati del 7,8% su base di valuta costante. LivaNova ha alzato le stime per l'intero anno 2024, prevedendo ora una crescita del fatturato compresa tra il 7% e l'8% su base di valuta costante. L'EPS diluito rettificato per il 2024 è proiettato in un intervallo di 3,10 a 3,20 dollari.
LivaNova PLC (Nasdaq: LIVN) reportó resultados sólidos para el segundo trimestre de 2024, con un aumento en los ingresos del 8.4% a 318.6 millones de dólares. Excluyendo el cierre del segmento de Soporte Circulatorio Avanzado, los ingresos crecieron un 10.8% en términos de moneda constante. El EPS diluido bajo GAAP de EE. UU. fue de 0.30 dólares, mientras que el EPS diluido ajustado alcanzó 0.93 dólares.
El segmento Cardiopulmonar vio un crecimiento del 14.5% en términos de moneda constante, impulsado por las ventas del sistema de perfusión EssenzTM. Los ingresos de neuromodulación aumentaron un 7.8% en términos de moneda constante. LivaNova elevó su guía para todo el año 2024, ahora esperando un crecimiento de ingresos entre el 7% y el 8% en términos de moneda constante. El EPS diluido ajustado para 2024 se proyecta que estará en el rango de 3.10 a 3.20 dólares.
LivaNova PLC (Nasdaq: LIVN)는 2024년 2분기 강력한 실적을 발표했으며, 매출이 8.4% 증가하여 3억 1860만 달러에 달했습니다. 고급 순환 보조 부문 종료를 제외하면, 매출은 환율 변동을 고려할 때 10.8% 증가했습니다. 미국 GAAP 기준 희석 EPS는 0.30 달러였으며, 조정된 희석 EPS는 0.93 달러에 도달했습니다.
심폐 부문은 EssenzTM 관류 시스템 판매에 힘입어 환율 변동을 고려할 때 14.5% 성장했습니다. 신경 조절 매출은 환율 변동을 고려할 때 7.8% 증가했습니다. LivaNova는 2024년 연간 가이드를 수정하여 이제 7%에서 8% 사이의 매출 성장을 예상하고 있습니다. 2024년 조정된 희석 EPS는 3.10에서 3.20 달러 범위로 예상됩니다.
LivaNova PLC (Nasdaq: LIVN) a publié de bons résultats pour le deuxième trimestre de 2024, avec un chiffre d'affaires en hausse de 8,4 % à 318,6 millions de dollars. En excluant la fermeture du segment de Support Circulatoire Avancé, le chiffre d'affaires a augmenté de 10,8 % sur une base de devises constantes. Le BPA dilué selon les normes GAAP américaines était de 0,30 dollar, tandis que le BPA dilué ajusté a atteint 0,93 dollar.
Le segment cardiopulmonaire a connu une croissance de 14,5 % sur une base de devises constantes, soutenue par les ventes du système de perfusion EssenzTM. Les revenus de la neuromodulation ont augmenté de 7,8 % sur une base de devises constantes. LivaNova a relevé ses prévisions pour l'ensemble de l'année 2024, s'attendant désormais à une croissance des revenus d'entre 7 % et 8 % sur une base de devises constantes. Le BPA dilué ajusté pour 2024 est estimé dans une fourchette de 3,10 à 3,20 dollars.
LivaNova PLC (Nasdaq: LIVN) hat starke Ergebnisse für das zweite Quartal 2024 berichtet, mit einem Umsatzanstieg von 8,4% auf 318,6 Millionen Dollar. Ohne den Rückzug des Segments für fortgeschrittene zirkulatorische Unterstützung wuchs der Umsatz um 10,8% auf Basis konstanter Währungen. Der verwässerte EPS gemäß US-GAAP betrug 0,30 Dollar, während der angepasste verwässerte EPS 0,93 Dollar erreichte.
Der kardiopulmonale Bereich verzeichnete ein Wachstum von 14,5% auf Basis konstanter Währungen, angetrieben durch die Verkäufe des EssenzTM-Pperfusionssystems. Die Umsätze der Neuromodulation stiegen um 7,8% auf Basis konstanter Währungen. LivaNova hat die Prognose für das gesamte Jahr 2024 angehoben und erwartet nun ein Umsatzwachstum zwischen 7% und 8% auf Basis konstanter Währungen. Der angepasste verwässerte EPS für 2024 wird in einer Spanne von 3,10 bis 3,20 Dollar prognostiziert.
- Q2 2024 revenue increased 8.4% to $318.6 million
- Adjusted diluted EPS grew to $0.93 in Q2 2024, up from $0.78 in Q2 2023
- Cardiopulmonary segment revenue increased 14.5% on a constant-currency basis
- Neuromodulation revenue grew 7.8% on a constant-currency basis
- Full-year 2024 revenue growth guidance raised to 7-8% on a constant-currency basis
- Adjusted diluted EPS guidance for 2024 increased to $3.10-$3.20
- Increased reserve for Italian payback law by $6.6 million, reducing net revenue
- European Court of Justice judgment in SNIA litigation may lead to potential liabilities
- Foreign currency expected to be a 1% headwind for full-year 2024 revenue
Insights
LivaNova's Q2 2024 results demonstrate strong performance and positive momentum. Revenue increased 8.4% to
The Cardiopulmonary segment showed impressive growth of
Neuromodulation revenue grew
Profitability improved significantly, with adjusted operating income rising to
The company's decision to pursue CMS coverage for VNS Therapy™ for the RECOVER patient population while reducing investment in the difficult-to-treat depression program shows a strategic pivot based on clinical data. This could potentially open up new revenue streams while optimizing resource allocation.
LivaNova's raised full-year guidance is particularly encouraging, now expecting
However, investors should note potential headwinds, including the
LivaNova's Q2 results highlight the company's strong position in key medical device markets. The
The
The decision to pursue CMS coverage for VNS Therapy™ in the RECOVER patient population is a strategic move. If successful, it could significantly expand the addressable market for LivaNova's neuromodulation devices. However, the reduction in investment for the difficult-to-treat depression program suggests a reallocation of resources based on clinical evidence and market potential.
The appointment of Franco Poletti as President of the Cardiopulmonary Business Unit brings valuable experience to the leadership team. His 40-year tenure with LivaNova should provide deep insights into the company's operations and market dynamics.
Looking ahead, the company's focus on "sustainable above-market growth" indicates a commitment to ongoing innovation and market expansion. However, investors should monitor the impact of regulatory challenges, such as the Italian payback law, on LivaNova's ability to maintain its growth trajectory in key European markets.
Financial Summary and Highlights(1)
-
Second-quarter revenue of
$318.6 million 8.4% on a reported basis and9.6% on a constant-currency basis, as compared to the prior-year period. Excluding the impact of the Advanced Circulatory Support (ACS) segment wind down, revenue increased10.8% on a constant-currency basis. -
Second-quarter
U.S. GAAP diluted earnings per share of$0.30 $0.93 -
Franco Poletti named President of Cardiopulmonary (CP) Business Unit, effective August 1, 2024. Poletti has more than 40 years of LivaNova service, most recently as Interim General Manager of CP and Vice President of CP for
Europe . -
Announced the preliminary results for the unipolar patient cohort of the RECOVER clinical study on June 6, 2024. Following additional in-depth analyses of the data, intends to pursue
U.S. Centers for Medicare and Medicaid Services coverage for VNS Therapy™ for the RECOVER patient population, while reducing investment in the difficult-to-treat depression program in 2025.
"In the second quarter, LivaNova achieved strong revenue and operating income growth,” said Vladimir Makatsaria, Chief Executive Officer of LivaNova. "Capitalizing on this momentum to achieve sustainable above-market growth over the long-term remains a key priority. I want to recognize our teams around the world for their continued execution and unwavering commitment to serving patients and customers. I also want to thank the consortium of independent experts who conducted an in-depth review of the RECOVER unipolar study results and supported the development of the path forward for the difficult-to-treat depression program."
____________________ |
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(1) |
Constant-currency percent change, total revenue excluding revenue from the ACS segment wind down, 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. 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. |
|
Second-Quarter 2024 Results
The following table summarizes revenue by segment (in millions):
|
|
Three Months Ended
|
|
% Change |
|
Constant-
|
||
|
|
2024 |
|
2023 |
|
|
||
Cardiopulmonary |
|
|
|
|
|
12.7 % |
|
14.5 % |
Neuromodulation |
|
142.9 |
|
133.2 |
|
7.3 % |
|
7.8 % |
Other (1) |
|
2.0 |
|
6.6 |
|
(69.9) % |
|
(69.9) % |
Total Net Revenue |
|
318.6 |
|
293.9 |
|
8.4 % |
|
9.6 % |
Less: ACS (2) |
|
3.0 |
|
5.9 |
|
(49.7) % |
|
(49.7) % |
Total Net Revenue, Excluding ACS |
|
|
|
|
|
9.6 % |
|
10.8 % |
| (1) | 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. |
Cardiopulmonary revenue increased
Neuromodulation revenue increased
Earnings Analysis
On a
On a
Additional Events
On July 22, 2024, the Constitutional Court of
On July 29, 2024, the European Court of Justice (ECJ) issued a judgment in response to a question raised by the Italian Supreme Court in connection with the SNIA litigation. The ECJ judgment states that a demerged company can be held responsible for liabilities not established prior to a demerger as long as the liabilities derive from the conduct of a demerged company prior to the demerger. However, the ECJ judgment also states that national law should determine whether liability for damages stemming from conduct after a demerger can be assigned to a demerged company. The matter will now return to the Italian Supreme Court where the ECJ judgment will be incorporated into a decision in conjunction with all of LivaNova's appeals, and counter-appeals submitted by the Italian Ministry of the Environment and other Italian government agencies. While the timing of the decision by the Italian Supreme Court is uncertain, LivaNova does not expect a decision until at least 2025.
Full-Year 2024 Guidance
LivaNova now expects revenue for full-year 2024 to grow between
Adjusted diluted earnings per share for 2024 is now 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 a live audiocast 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 comparable, constant-currency percent change in revenue. Company management believes that referring to comparable, constant-currency percent change is the most 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, a non-GAAP financial measure, measures the change in revenue between current and prior-year periods using average exchange rates in effect during the applicable prior-year period.
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, 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.
The Company also believes adjusted financial measures such as 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. Furthermore, adjusted financial measures allow 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, 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 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
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 United States Securities and Exchange Commission by LivaNova.
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.
Essenz is a trademark of LivaNova
LIVANOVA PLC |
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NET REVENUE - UNAUDITED |
||||||||
( |
||||||||
|
|
Three Months Ended June 30, |
||||||
|
|
2024 |
|
2023 |
|
% Change |
|
Constant-Currency
|
Cardiopulmonary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29.7 % |
|
29.7 % |
|
|
38.6 |
|
39.3 |
|
(2.0) % |
|
(1.3) % |
Rest of World |
|
70.3 |
|
64.8 |
|
8.5 % |
|
12.3 % |
|
|
173.7 |
|
154.1 |
|
12.7 % |
|
14.5 % |
Neuromodulation |
|
|
|
|
|
|
|
|
|
|
111.7 |
|
104.1 |
|
7.3 % |
|
7.3 % |
|
|
15.6 |
|
15.1 |
|
3.1 % |
|
3.2 % |
Rest of World |
|
15.6 |
|
14.0 |
|
11.5 % |
|
16.7 % |
|
|
142.9 |
|
133.2 |
|
7.3 % |
|
7.8 % |
Other Revenue (2) |
|
2.0 |
|
6.6 |
|
(69.9) % |
|
(69.9) % |
Totals |
|
|
|
|
|
|
|
|
|
|
179.5 |
|
160.0 |
|
12.2 % |
|
12.2 % |
|
|
51.3 |
|
54.5 |
|
(5.9) % |
|
(5.4) % |
Rest of World |
|
87.8 |
|
79.5 |
|
10.5 % |
|
14.5 % |
|
|
|
|
|
|
8.4 % |
|
9.6 % |
| (1) |
Includes countries in |
|
| (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 |
||||||||
( |
||||||||
|
|
Six Months Ended June 30, |
||||||
|
|
2024 |
|
2023 |
|
% Change |
|
Constant-Currency
|
Cardiopulmonary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28.8 % |
|
28.8 % |
|
|
79.5 |
|
75.7 |
|
5.0 % |
|
4.3 % |
Rest of World |
|
134.7 |
|
124.5 |
|
8.1 % |
|
11.6 % |
|
|
329.6 |
|
289.9 |
|
13.7 % |
|
15.0 % |
Neuromodulation |
|
|
|
|
|
|
|
|
|
|
217.6 |
|
198.6 |
|
9.6 % |
|
9.6 % |
|
|
29.0 |
|
28.4 |
|
2.1 % |
|
1.0 % |
Rest of World |
|
30.1 |
|
26.9 |
|
11.9 % |
|
16.2 % |
|
|
276.7 |
|
253.9 |
|
9.0 % |
|
9.3 % |
Other Revenue (2) |
|
7.1 |
|
13.5 |
|
(47.3) % |
|
(47.4) % |
Totals |
|
|
|
|
|
|
|
|
|
|
340.2 |
|
300.2 |
|
13.3 % |
|
13.3 % |
|
|
105.6 |
|
104.1 |
|
1.4 % |
|
0.6 % |
Rest of World |
|
167.7 |
|
153.0 |
|
9.7 % |
|
13.3 % |
|
|
|
|
|
|
10.1 % |
|
10.9 % |
| (1) |
Includes countries in |
|
| (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 |
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|
|
|
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED |
|
|
||||
( |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
||
|
|
2024 |
|
2023 |
|
% Change |
Net revenue |
|
|
|
|
|
|
Cost of sales |
|
99.7 |
|
88.7 |
|
|
Gross profit |
|
218.9 |
|
205.2 |
|
6.7 % |
Operating expenses: |
|
|
|
|
|
|
Selling, general, and administrative |
|
129.1 |
|
125.9 |
|
|
Research and development |
|
44.7 |
|
51.1 |
|
|
Other operating expense |
|
4.8 |
|
10.8 |
|
|
Operating income |
|
40.2 |
|
17.4 |
|
131.2 % |
Interest expense |
|
(15.5) |
|
(14.8) |
|
|
Foreign exchange and other income/(expense) |
|
(3.0) |
|
2.7 |
|
|
Income before tax |
|
21.6 |
|
5.3 |
|
308.9 % |
Income tax expense |
|
5.2 |
|
4.1 |
|
|
Net income |
|
|
|
|
|
1,314.1 % |
|
|
|
|
|
|
|
Basic income per share |
|
|
|
|
|
|
Diluted income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
Basic |
|
54.2 |
|
53.8 |
|
|
Diluted |
|
54.6 |
|
54.0 |
|
|
• |
Numbers may not add precisely due to rounding. |
Adjusted Financial Measures ( |
||||||
|
|
Three Months Ended June 30, |
|
|
||
|
|
2024 |
|
2023 |
|
% Change |
Adjusted SG&A |
|
|
|
|
|
(0.4) % |
Adjusted R&D |
|
41.3 |
|
47.9 |
|
(13.9) % |
Adjusted operating income |
|
66.9 |
|
49.5 |
|
35.1 % |
Adjusted net income |
|
50.8 |
|
41.9 |
|
21.1 % |
Adjusted diluted earnings per share |
|
|
|
|
|
19.7 % |
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 |
|
68.7 % |
|
69.8 % |
|
69.3 % |
|
71.6 % |
SG&A |
|
40.5 % |
|
42.8 % |
|
35.4 % |
|
38.5 % |
R&D |
|
14.0 % |
|
17.4 % |
|
12.9 % |
|
16.3 % |
Operating income |
|
12.6 % |
|
5.9 % |
|
21.0 % |
|
16.8 % |
Net income |
|
5.1 % |
|
0.4 % |
|
15.9 % |
|
14.3 % |
Income tax rate |
|
24.2 % |
|
77.6 % |
|
20.8 % |
|
9.5 % |
LIVANOVA PLC AND SUBSIDIARIES |
||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED |
||||||
( |
||||||
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
||
|
|
2024 |
|
2023 |
|
% Change |
Net revenue |
|
|
|
|
|
|
Cost of sales |
|
187.2 |
|
178.0 |
|
|
Gross profit |
|
426.3 |
|
379.3 |
|
12.4 % |
Operating expenses: |
|
|
|
|
|
|
Selling, general, and administrative |
|
259.0 |
|
250.0 |
|
|
Research and development |
|
90.4 |
|
101.1 |
|
|
Other operating expense |
|
20.5 |
|
13.1 |
|
|
Operating income |
|
56.4 |
|
15.0 |
|
275.2 % |
Interest expense |
|
(31.4) |
|
(28.2) |
|
|
Loss on debt extinguishment |
|
(25.5) |
|
— |
|
|
Foreign exchange and other income/(expense) |
|
(12.1) |
|
28.3 |
|
|
(Loss) income before tax |
|
(12.6) |
|
15.0 |
|
(183.8) % |
Income tax expense |
|
12.9 |
|
6.5 |
|
|
Loss from equity method investments |
|
(0.1) |
|
(0.1) |
|
|
Net (loss) income |
|
( |
|
|
|
(400.4) % |
|
|
|
|
|
|
|
Basic (loss) income per share |
|
( |
|
|
|
|
Diluted (loss) income per share |
|
( |
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
Basic |
|
54.2 |
|
53.7 |
|
|
Diluted |
|
54.2 |
|
53.9 |
|
|
• |
Numbers may not add precisely due to rounding. |
Adjusted Financial Measures ( |
||||||
|
|
Six Months Ended June 30, |
|
|
||
|
|
2024 |
|
2023 |
|
% Change |
Adjusted SG&A |
|
|
|
|
|
2.1 % |
Adjusted R&D |
|
84.1 |
|
94.1 |
|
(10.6) % |
Adjusted operating income |
|
120.0 |
|
76.3 |
|
57.3 % |
Adjusted net income |
|
90.8 |
|
65.3 |
|
39.1 % |
Adjusted diluted earnings per share |
|
|
|
|
|
37.4 % |
Statistics (as a % of net revenue, except for income tax rate) - Unaudited |
||||||||
|
|
GAAP Six Months Ended June 30, |
|
Adjusted Six Months Ended June 30, |
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Gross profit |
|
69.5 % |
|
68.1 % |
|
70.1 % |
|
70.3 % |
SG&A |
|
42.2 % |
|
44.9 % |
|
36.8 % |
|
39.7 % |
R&D |
|
14.7 % |
|
18.1 % |
|
13.7 % |
|
16.9 % |
Operating income |
|
9.2 % |
|
2.7 % |
|
19.6 % |
|
13.7 % |
Net (loss) income |
|
(4.2) % |
|
1.5 % |
|
14.8 % |
|
11.7 % |
Income tax rate |
|
(102.6) % |
|
43.0 % |
|
20.8 % |
|
8.4 % |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED
( |
||||||||||||||||||||||
|
|
Specified Items |
|
|||||||||||||||||||
Three Months Ended June 30, 2024 |
GAAP Financial Measures |
Restructuring
|
Depreciation and Amortization Expenses (2) |
Impairment (3) |
Financing Transactions (4) |
Contingent Consideration (5) |
Certain Legal & Regulatory Costs (6) |
Stock-based Compensation Costs (7) |
Certain Tax Adjustments (8) |
Certain Interest Adjustments (9) |
Adjusted Financial Measures |
|||||||||||
Cost of sales |
|
|
$— |
|
( |
) |
$— |
|
$— |
|
( |
) |
$— |
|
( |
) |
$— |
|
$— |
|
|
|
Gross profit percent |
68.7 |
% |
— |
% |
0.5 |
% |
— |
% |
— |
% |
— |
% |
— |
% |
— |
% |
— |
% |
— |
% |
69.3 |
% |
Selling, general, and administrative |
129.1 |
|
— |
|
(2.6 |
) |
— |
|
— |
|
— |
|
(7.7 |
) |
(6.1 |
) |
— |
|
— |
|
112.7 |
|
Selling, general, and administrative as a percent of net revenue |
40.5 |
% |
— |
% |
(0.8 |
)% |
— |
% |
— |
% |
— |
% |
(2.4 |
)% |
(1.9 |
)% |
— |
% |
— |
% |
35.4 |
% |
Research and development |
44.7 |
|
— |
|
— |
|
— |
|
— |
|
(0.3 |
) |
(1.3 |
) |
(2.0 |
) |
— |
|
— |
|
41.3 |
|
Research and development as a percent of net revenue |
14.0 |
% |
— |
% |
— |
% |
— |
% |
— |
% |
(0.1 |
)% |
(0.4 |
)% |
(0.6 |
)% |
— |
% |
— |
% |
12.9 |
% |
Other operating expense |
4.8 |
|
(2.1 |
) |
— |
|
— |
|
— |
|
— |
|
(2.7 |
) |
— |
|
— |
|
— |
|
— |
|
Operating income |
40.2 |
|
2.1 |
|
4.3 |
|
— |
|
— |
|
0.4 |
|
11.7 |
|
8.2 |
|
— |
|
— |
|
66.9 |
|
Operating margin percent |
12.6 |
% |
0.7 |
% |
1.3 |
% |
— |
% |
— |
% |
0.1 |
% |
3.7 |
% |
2.6 |
% |
— |
% |
— |
% |
21.0 |
% |
Net income |
16.3 |
|
2.1 |
|
4.3 |
|
5.8 |
|
2.6 |
|
0.4 |
|
11.7 |
|
8.2 |
|
(8.1 |
) |
7.6 |
|
50.8 |
|
Net income as a percent of net revenue |
5.1 |
% |
0.7 |
% |
1.3 |
% |
1.8 |
% |
0.8 |
% |
0.1 |
% |
3.7 |
% |
2.6 |
% |
(2.5 |
)% |
2.4 |
% |
15.9 |
% |
Diluted EPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
| GAAP results for the three months ended June 30, 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) | Mark-to-market adjustments for the 2025 and 2029 Notes embedded derivative features and associated capped call derivatives |
|
| (5) | Remeasurement of contingent consideration related to ImThera acquisition |
|
| (6) | Legal expenses primarily related to 3T Heater-Cooler defense, cybersecurity incident costs, 3T Heater-Cooler litigation provision, and Medical Device Regulation ("MDR") costs |
|
| (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 & 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 June 30, 2023 |
GAAP Financial Measures |
Merger and Integration Expenses (1) |
Restructuring
|
Depreciation and Amortization Expenses (3) |
Financing Transactions (4) |
Contingent Consideration (5) |
Certain Legal & Regulatory Costs (6) |
Stock-based Compensation Costs (7) |
Certain Tax Adjustments (8) |
Certain Interest Adjustments (9) |
Adjusted Financial Measures |
|||||||||||
Cost of sales |
|
|
$— |
|
$— |
|
( |
) |
$— |
|
( |
) |
$— |
|
$— |
|
$— |
|
$— |
|
|
|
Gross profit percent |
69.8 |
% |
— |
% |
— |
% |
1.3 |
% |
— |
% |
0.5 |
% |
— |
% |
— |
% |
— |
% |
— |
% |
71.6 |
% |
Selling, general, and administrative |
125.9 |
|
— |
|
— |
|
(2.9 |
) |
— |
|
— |
|
(5.3 |
) |
(4.6 |
) |
— |
|
— |
|
113.1 |
|
Selling, general, and administrative as a percent of net revenue |
42.8 |
% |
— |
% |
— |
% |
(1.0 |
)% |
— |
% |
— |
% |
(1.8 |
)% |
(1.6 |
)% |
— |
% |
— |
% |
38.5 |
% |
Research and development |
51.1 |
|
— |
|
— |
|
— |
|
— |
|
(1.0 |
) |
(1.2 |
) |
(1.1 |
) |
— |
|
— |
|
47.9 |
|
Research and development as a percent of net revenue |
17.4 |
% |
— |
% |
— |
% |
— |
% |
— |
% |
(0.3 |
)% |
(0.4 |
)% |
(0.4 |
)% |
— |
% |
— |
% |
16.3 |
% |
Other operating expense |
10.8 |
|
0.2 |
|
(0.2 |
) |
— |
|
— |
|
— |
|
(10.8 |
) |
— |
|
— |
|
— |
|
— |
|
Operating income |
17.4 |
|
(0.2 |
) |
0.2 |
|
6.6 |
|
— |
|
2.5 |
|
17.3 |
|
5.7 |
|
— |
|
— |
|
49.5 |
|
Operating margin percent |
5.9 |
% |
(0.1 |
)% |
0.1 |
% |
2.2 |
% |
— |
% |
0.9 |
% |
5.9 |
% |
1.9 |
% |
— |
% |
— |
% |
16.8 |
% |
Net income |
1.2 |
|
(0.2 |
) |
0.2 |
|
6.6 |
|
1.4 |
|
2.5 |
|
17.3 |
|
5.7 |
|
(0.3 |
) |
7.6 |
|
41.9 |
|
Net income as a percent of net revenue |
0.4 |
% |
(0.1 |
)% |
0.1 |
% |
2.2 |
% |
0.5 |
% |
0.9 |
% |
5.9 |
% |
1.9 |
% |
(0.1 |
)% |
2.6 |
% |
14.3 |
% |
Diluted EPS |
|
|
$— |
|
$— |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
| GAAP results for the three months ended June 30, 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) | Mark-to-market adjustment for the 2025 Notes conversion option feature and associated capped call derivatives |
|
| (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, and MDR costs |
|
| (7) | Non-cash expenses associated with stock-based compensation costs |
|
| (8) | 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 |
|
|||||||||||||||||||
Six Months Ended June 30, 2024 |
GAAP Financial Measures |
Restructuring
|
Depreciation and Amortization Expenses (2) |
Impairment (3) |
Financing Transactions (4) |
Contingent Consideration (5) |
Certain Legal & Regulatory Costs (6) |
Stock-based Compensation Costs (7) |
Certain Tax Adjustments (8) |
Certain Interest Adjustments (9) |
Adjusted Financial Measures |
|||||||||||
Cost of sales |
|
|
$— |
|
( |
) |
$— |
|
$— |
|
|
|
$— |
|
( |
) |
$— |
|
$— |
|
|
|
Gross profit percent |
69.5 |
% |
— |
% |
0.6 |
% |
— |
% |
— |
% |
— |
% |
— |
% |
0.1 |
% |
— |
% |
— |
% |
70.1 |
% |
Selling, general, and administrative |
259.0 |
|
— |
|
(5.3 |
) |
— |
|
— |
|
— |
|
(13.8 |
) |
(13.9 |
) |
— |
|
— |
|
226.0 |
|
Selling, general, and administrative as a percent of net revenue |
42.2 |
% |
— |
% |
(0.9 |
)% |
— |
% |
— |
% |
— |
% |
(2.3 |
)% |
(2.3 |
)% |
— |
% |
— |
% |
36.8 |
% |
Research and development |
90.4 |
|
— |
|
0.1 |
|
— |
|
— |
|
(0.4 |
) |
(2.0 |
) |
(4.0 |
) |
— |
|
— |
|
84.1 |
|
Research and development as a percent of net revenue |
14.7 |
% |
— |
% |
— |
% |
— |
% |
— |
% |
(0.1 |
)% |
(0.3 |
)% |
(0.6 |
)% |
— |
% |
— |
% |
13.7 |
% |
Other operating expense |
20.5 |
|
(11.4 |
) |
— |
|
— |
|
— |
|
— |
|
(9.1 |
) |
— |
|
— |
|
— |
|
— |
|
Operating income |
56.4 |
|
11.4 |
|
8.6 |
|
— |
|
— |
|
0.3 |
|
24.9 |
|
18.4 |
|
— |
|
— |
|
120.0 |
|
Operating margin percent |
9.2 |
% |
1.9 |
% |
1.4 |
% |
— |
% |
— |
% |
— |
% |
4.1 |
% |
3.0 |
% |
— |
% |
— |
% |
19.6 |
% |
Net (loss) income |
(25.6 |
) |
11.4 |
|
8.6 |
|
5.8 |
|
42.8 |
|
0.3 |
|
24.9 |
|
18.4 |
|
(10.9 |
) |
15.1 |
|
90.8 |
|
Net (loss) income as a percent of net revenue |
(4.2 |
)% |
1.9 |
% |
1.4 |
% |
0.9 |
% |
7.0 |
% |
— |
% |
4.1 |
% |
3.0 |
% |
(1.8 |
)% |
2.5 |
% |
14.8 |
% |
Diluted EPS |
( |
) |
|
|
|
|
|
|
|
|
$— |
|
|
|
|
|
( |
) |
|
|
|
|
| GAAP results for the six months ended June 30, 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 derivative features and associated capped call derivatives |
|
| (5) | Remeasurement of contingent consideration related to ImThera acquisition |
|
| (6) | 3T Heater-Cooler litigation provision, legal expenses primarily related to 3T Heater-Cooler defense, cybersecurity incident costs, 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 & 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 |
|
|||||||||||||||||||
Six Months Ended June 30, 2023 |
GAAP Financial Measures |
Merger and Integration Expenses (1) |
Restructuring
|
Depreciation and Amortization Expenses (3) |
Financing Transactions (4) |
Contingent Consideration (5) |
Certain Legal & Regulatory Costs (6) |
Stock-based Compensation Costs (7) |
Certain Tax Adjustments (8) |
Certain Interest Adjustments (9) |
Adjusted Financial Measures |
|||||||||||
Cost of sales |
|
|
$— |
|
$— |
|
( |
) |
$— |
|
( |
) |
$— |
|
( |
) |
$— |
|
$— |
|
|
|
Gross profit percent |
68.1 |
% |
— |
% |
— |
% |
1.3 |
% |
— |
% |
0.8 |
% |
— |
% |
0.1 |
% |
— |
% |
— |
% |
70.3 |
% |
Selling, general, and administrative |
250.0 |
|
— |
|
— |
|
(5.8 |
) |
— |
|
— |
|
(9.8 |
) |
(13.1 |
) |
— |
|
— |
|
221.4 |
|
Selling, general, and administrative as a percent of net revenue |
44.9 |
% |
— |
% |
— |
% |
(1.0 |
)% |
— |
% |
— |
% |
(1.8 |
)% |
(2.4 |
)% |
— |
% |
— |
% |
39.7 |
% |
Research and development |
101.1 |
|
— |
|
— |
|
0.1 |
|
— |
|
(2.7 |
) |
(1.7 |
) |
(2.7 |
) |
— |
|
— |
|
94.1 |
|
Research and development as a percent of net revenue |
18.1 |
% |
— |
% |
— |
% |
— |
% |
— |
% |
(0.5 |
)% |
(0.3 |
)% |
(0.5 |
)% |
— |
% |
— |
% |
16.9 |
% |
Other operating expense |
13.1 |
|
(0.1 |
) |
(0.9 |
) |
— |
|
— |
|
— |
|
(12.2 |
) |
— |
|
— |
|
— |
|
— |
|
Operating income |
15.0 |
|
0.1 |
|
0.9 |
|
13.0 |
|
— |
|
7.3 |
|
23.6 |
|
16.3 |
|
— |
|
— |
|
76.3 |
|
Operating margin percent |
2.7 |
% |
— |
% |
0.2 |
% |
2.3 |
% |
— |
% |
1.3 |
% |
4.2 |
% |
2.9 |
% |
— |
% |
— |
% |
13.7 |
% |
Net income |
8.5 |
|
0.1 |
|
0.9 |
|
13.0 |
|
(19.6 |
) |
7.3 |
|
23.6 |
|
16.3 |
|
0.5 |
|
14.6 |
|
65.3 |
|
Net income as a percent of net revenue |
1.5 |
% |
— |
% |
0.2 |
% |
2.3 |
% |
(3.5 |
)% |
1.3 |
% |
4.2 |
% |
2.9 |
% |
0.1 |
% |
2.6 |
% |
11.7 |
% |
Diluted EPS |
|
|
$— |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP results for the six months ended June 30, 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) | Mark-to-market adjustment for the 2025 Notes embedded derivative feature and associated capped call derivatives |
|
| (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, and MDR costs |
|
| (7) | Non-cash expenses associated with stock-based compensation costs |
|
| (8) | 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. |
|
LIVANOVA PLC AND SUBSIDIARIES |
||||
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED |
||||
( |
||||
|
|
June 30, 2024 |
|
December 31, 2023 |
ASSETS |
|
|
|
|
Current Assets: |
|
|
|
|
Cash and cash equivalents |
|
|
|
|
Restricted cash |
|
303.9 |
|
311.4 |
Accounts receivable, net of allowance |
|
200.9 |
|
215.1 |
Inventories |
|
154.7 |
|
147.9 |
Prepaid and refundable taxes |
|
21.9 |
|
20.1 |
Prepaid expenses and other current assets |
|
36.0 |
|
27.2 |
Total Current Assets |
|
1,046.7 |
|
988.2 |
Property, plant, and equipment, net |
|
158.1 |
|
154.2 |
Goodwill |
|
766.4 |
|
782.9 |
Intangible assets, net |
|
248.2 |
|
261.2 |
Operating lease assets |
|
49.7 |
|
50.8 |
Investments |
|
17.2 |
|
22.8 |
Deferred tax assets |
|
113.0 |
|
118.9 |
Long-term derivative assets |
|
39.6 |
|
38.5 |
Other assets |
|
14.4 |
|
12.1 |
Total Assets |
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current Liabilities: |
|
|
|
|
Current debt obligations |
|
|
|
|
Accounts payable |
|
81.3 |
|
80.8 |
Accrued liabilities and other |
|
98.0 |
|
107.3 |
Current litigation provision liability |
|
16.0 |
|
10.8 |
Taxes payable |
|
23.3 |
|
23.3 |
Accrued employee compensation and related benefits |
|
64.7 |
|
94.6 |
Total Current Liabilities |
|
303.0 |
|
335.0 |
Long-term debt obligations |
|
605.4 |
|
568.5 |
Contingent consideration |
|
81.2 |
|
80.9 |
Deferred tax liabilities |
|
10.8 |
|
11.6 |
Long-term operating lease liabilities |
|
43.5 |
|
45.4 |
Long-term employee compensation and related benefits |
|
16.4 |
|
17.3 |
Long-term derivative liabilities |
|
105.4 |
|
45.6 |
Other long-term liabilities |
|
44.9 |
|
47.7 |
Total Liabilities |
|
1,210.6 |
|
1,151.9 |
Total Stockholders’ Equity |
|
1,242.5 |
|
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 |
|
|
|
|
( |
|
Six Months Ended June 30, |
||
|
|
2024 |
|
2023 |
Operating Activities: |
|
|
|
|
Net (loss) income |
|
( |
|
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
|
Loss on debt extinguishment |
|
25.5 |
|
— |
Stock-based compensation |
|
18.4 |
|
16.3 |
Remeasurement of derivative instruments |
|
12.5 |
|
(25.3) |
Depreciation |
|
12.4 |
|
12.0 |
Amortization of debt issuance costs |
|
10.2 |
|
9.5 |
Amortization of intangible assets |
|
8.6 |
|
12.7 |
Impairment of investment in ShiraTronics, Inc. |
|
5.8 |
|
— |
Deferred income tax expense |
|
5.6 |
|
0.1 |
Amortization of operating lease assets |
|
4.4 |
|
5.1 |
Remeasurement of contingent consideration to fair value |
|
0.3 |
|
7.3 |
Other |
|
0.7 |
|
0.1 |
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable, net |
|
8.4 |
|
(0.7) |
Inventories |
|
(10.9) |
|
(25.4) |
Other current and non-current assets |
|
(3.4) |
|
(8.3) |
Accounts payable and accrued current and non-current liabilities |
|
(25.4) |
|
(4.6) |
Taxes payable |
|
0.8 |
|
2.7 |
Litigation provision liability |
|
5.1 |
|
(7.3) |
Net cash provided by operating activities |
|
53.3 |
|
2.8 |
Investing Activities: |
|
|
|
|
Purchases of property, plant, and equipment |
|
(18.6) |
|
(13.3) |
Purchase of investments |
|
(0.4) |
|
(5.4) |
Other |
|
— |
|
0.6 |
Net cash used in investing activities |
|
(18.9) |
|
(18.1) |
Financing Activities: |
|
|
|
|
Proceeds from long-term debt obligations |
|
335.5 |
|
50.0 |
Repayment of long-term debt obligations |
|
(238.8) |
|
(11.8) |
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 |
|
(8.1) |
|
(5.8) |
Proceeds from exercise of stock options |
|
3.7 |
|
— |
Payment of debt issuance costs |
|
(5.7) |
|
— |
Repayments of short-term borrowings (maturities greater than 90 days) |
|
— |
|
(2.0) |
Other |
|
0.5 |
|
0.4 |
Net cash provided by financing activities |
|
25.3 |
|
30.8 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
(4.4) |
|
3.3 |
Net increase in cash, cash equivalents, and restricted cash |
|
55.2 |
|
18.7 |
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 June 30, |
||||||||||||||||
|
|
2024 |
|
2023 |
||||||||||||||
|
|
GAAP Financial
|
|
Certain Tax
|
|
Adjusted
|
|
GAAP Financial
|
|
Certain Tax
|
|
Adjusted
|
||||||
Income before tax |
|
|
|
|
$— |
|
|
|
|
|
|
|
|
$— |
|
|
|
|
Income tax expense |
|
5.2 |
|
|
8.1 |
|
|
13.3 |
|
|
4.1 |
|
|
0.3 |
|
|
4.4 |
|
Net income |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
( |
) |
|
|
|
Income tax rate |
|
24.2 |
% |
|
|
|
20.8 |
% |
|
77.6 |
% |
|
|
|
9.5 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Six Months Ended June 30, |
||||||||||||||||
|
|
2024 |
|
2023 |
||||||||||||||
|
|
GAAP Financial
|
|
Certain Tax
|
|
Adjusted
|
|
GAAP Financial
|
|
Certain Tax
|
|
Adjusted
|
||||||
(Loss) income before tax |
|
( |
) |
|
$— |
|
|
|
|
|
|
|
|
$— |
|
|
|
|
Income tax expense |
|
12.9 |
|
|
10.9 |
|
|
23.9 |
|
|
6.5 |
|
|
(0.5 |
) |
|
6.0 |
|
Loss from equity method investments |
|
(0.1 |
) |
|
— |
|
|
(0.1 |
) |
|
(0.1 |
) |
|
— |
|
|
(0.1 |
) |
Net (loss) income |
|
( |
) |
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax rate |
|
(102.6 |
)% |
|
|
|
20.8 |
% |
|
43.0 |
% |
|
|
|
8.4 |
% |
||
• |
Numbers may not add precisely due to rounding. |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED
( |
||||||||
|
|
Three Months Ended June 30, |
|
% Change |
|
Constant-
|
||
|
|
2024 |
|
2023 |
|
|
||
GAAP net revenue |
|
|
|
|
|
8.4 % |
|
9.6 % |
Less: ACS (1) |
|
3.0 |
|
5.9 |
|
(49.7) % |
|
(49.7) % |
Net revenue excluding ACS |
|
|
|
|
|
9.6 % |
|
10.8 % |
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
% Change |
|
Constant-
|
||
|
|
2024 |
|
2023 |
|
|
||
GAAP net revenue |
|
|
|
|
|
10.1 % |
|
10.9 % |
Less: ACS (1) |
|
7.1 |
|
12.1 |
|
(41.2) % |
|
(41.2) % |
Net revenue excluding ACS |
|
|
|
|
|
11.2 % |
|
12.1 % |
| (1) | Includes net revenue from the Company's former ACS reportable segment. |
|
• |
Numbers may not add precisely due to rounding. |
The following table presents the reconciliation of GAAP diluted weighted average shares outstanding, used in the computation of GAAP diluted net loss per common share, to adjusted diluted weighted average shares outstanding, used in the computation of adjusted diluted earnings per common share (in millions of shares):
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED (shares in millions) |
||
|
|
Six Months Ended
|
GAAP diluted weighted average shares outstanding |
|
54.2 |
Add: Effects of stock-based compensation instruments |
|
0.4 |
Adjusted diluted weighted average shares outstanding |
|
54.6 |
• |
Numbers may not add precisely due to rounding. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240731063839/en/
Zach Glazier
Manager, Investor Relations
Phone: +1 281 895 2382
e-mail: InvestorRelations@livanova.com
Source: LivaNova PLC
FAQ
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