LivaNova Reports Fourth Quarter and Full-Year 2020 Results
For the fourth quarter of 2020, worldwide sales from continuing operations were
"Sales in all product categories and regions improved sequentially over the third quarter of 2020," said
Fourth Quarter 2020 Results
The following table summarizes worldwide sales for the fourth quarter of 2020 by business:
|
$ in millions |
Three Months Ended |
% Change |
Constant- |
|||||||
|
Business / Product Line: |
2020 |
2019 |
||||||||
|
Cardiopulmonary |
|
|
|
(7.9 |
)% |
(10.0 |
)% |
|||
|
Heart Valves |
24.2 |
32.1 |
(24.6 |
)% |
(27.2 |
)% |
||||
|
Advanced Circulatory Support |
13.3 |
|
8.8 |
50.4 |
% |
50.3 |
% |
|||
|
Cardiovascular |
159.6 |
|
173.5 |
(8.0 |
)% |
(10.1 |
)% |
|||
|
Neuromodulation |
109.2 |
|
113.1 |
(3.5 |
)% |
(3.8 |
)% |
|||
|
Other |
0.8 |
|
1.0 |
(22.8 |
)% |
(27.3 |
)% |
|||
|
Total |
|
|
|
(6.3 |
)% |
(7.7 |
)% |
|||
- Note: Numbers may not add precisely due to rounding. Constant-currency percent change is a non-GAAP metric. For an explanation of this and other non-GAAP metrics used in this release, please see the section entitled "Use of Non-GAAP Financial Measures." For reconciliations of certain non-GAAP metrics, please see the tables that accompany the press release.
All sales growth rates below reflect comparable, constant-currency growth. Constant-currency growth accounts for the impact from fluctuations in the various currencies in which the Company operates as compared to reported growth.
Cardiovascular
Cardiovascular sales, which include Cardiopulmonary, Heart Valves and Advanced Circulatory Support (ACS) products, were
Sales in Cardiopulmonary products were
Heart Valve sales were
ACS sales were
Neuromodulation
Neuromodulation sales were
Financial Performance
On a
On a
On a
Full-Year 2020 Results
The following table summarizes worldwide sales for the full-year 2020 by business:
|
$ in millions |
Twelve Months Ended |
% Change |
Constant- |
|||||||
|
Business / Product Line: |
2020 |
2019 |
||||||||
|
Cardiopulmonary |
|
|
|
|
(11.5 |
)% |
(11.4 |
)% |
||
|
Heart Valves |
88.0 |
|
120.0 |
|
(26.6 |
)% |
(26.6 |
)% |
||
|
Advanced Circulatory Support |
42.3 |
|
31.9 |
|
32.6 |
% |
32.6 |
% |
||
|
Cardiovascular |
577.1 |
|
656.6 |
|
(12.1 |
)% |
(12.0 |
)% |
||
|
Neuromodulation |
354.4 |
|
424.5 |
|
(16.5 |
)% |
(16.4 |
)% |
||
|
Other |
2.7 |
|
3.0 |
|
(8.8 |
)% |
(10.7 |
)% |
||
|
Total |
|
|
|
|
(13.8 |
)% |
(13.7 |
)% |
||
- Note: Numbers may not add precisely due to rounding. Constant-currency percent change is a non-GAAP metric. For an explanation of this and other non-GAAP metrics used in this release, please see the section entitled "Use of Non-GAAP Financial Measures." For reconciliations of certain non-GAAP metrics, please see the tables that accompany the press release.
All sales growth rates below reflect comparable, constant-currency growth. Constant-currency growth accounts for the impact from fluctuations in the various currencies in which the Company operates as compared to reported growth.
Cardiovascular
Cardiovascular sales, which include Cardiopulmonary, Heart Valves and ACS products, were
Sales in Cardiopulmonary products were
Heart Valve sales were
ACS sales were
Neuromodulation
Neuromodulation sales were
Financial Performance
On a
On a
On a
2021 Guidance
While continued COVID-related uncertainty is anticipated in 2021, sales levels are expected to return to more normalized levels in the second half of the year. As a result,
Webcast and Conference Call Instructions
The Company will host a live audio webcast for interested parties commencing at
1Constant-currency percent change is a non-GAAP metric. For an explanation of this and other non-GAAP metrics used in this release, please see the section entitled "Use of Non-GAAP Financial Measures." For reconciliations of certain non-GAAP metrics, please see the tables that accompany the press release.
About
For more information, please visit www.livanova.com.
Use of Non-GAAP Financial Measures
In this press release, management has disclosed financial measurements that present financial information not necessarily in accordance with GAAP. Company management uses these measurements as aids in monitoring the Company’s ongoing financial performance from quarter to quarter and year to year on a regular basis and for benchmarking against other medical technology companies. Non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. These non-GAAP financial measures should be considered along with, but not as alternatives to, the operating performance measure as prescribed by GAAP.
Unless otherwise noted, all sales growth rates in this release reflect comparable, constant-currency growth. Management believes that referring to comparable, constant-currency growth is the most useful way to evaluate the sales performance of
The Company also believes adjusted financial measures such as adjusted gross profit percentage; adjusted selling, general and administrative expense; adjusted research and development expense; adjusted other operating expenses; adjusted operating income from continuing operations; adjusted segment operating income; adjusted income tax expense; adjusted net income from continuing operations; and adjusted diluted earnings per share from continuing operations, are measures by which
Safe Harbor Statement
Certain statements in this press release, other than purely historical information, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, LivaNova’s plans, objectives, strategies, financial performance and outlook, trends, the amount and timing of future cash distributions, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, our actual financial results, performance, achievements or prospects may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “seek,” “guidance,” “predict,” “potential,” “likely,” “believe,” “will,” “should,” “expect,” “anticipate,” “estimate,” “plan,” “intend,” “forecast,” “foresee,” or variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by
We caution you not to place undue reliance on any forward-looking statements, which are made only as of the date of this press release. The Company does not undertake or assume any obligation to update publicly any of the forward-looking statements in this press release to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
|
|
||||||||||||
|
( |
||||||||||||
|
|
|
Three Months Ended |
||||||||||
|
|
|
2020 |
|
2019 |
|
% Change at Actual |
|
% Change at |
||||
|
Cardiopulmonary |
|
|
|
|
|
|
|
|
||||
|
US |
|
|
|
|
|
|
|
(13.3 |
)% |
|
(13.3 |
)% |
|
|
|
34.6 |
|
|
35.7 |
|
|
(3.1 |
)% |
|
(9.6 |
)% |
|
Rest of World |
|
51.2 |
|
|
55.0 |
|
|
(6.8 |
)% |
|
(7.9 |
)% |
|
Total |
|
122.1 |
|
|
132.6 |
|
|
(7.9 |
)% |
|
(10.0 |
)% |
|
Heart Valves |
|
|
|
|
|
|
|
|
||||
|
US |
|
3.5 |
|
|
5.2 |
|
|
(33.2 |
)% |
|
(33.2 |
)% |
|
|
|
8.4 |
|
|
9.8 |
|
|
(13.8 |
)% |
|
(19.6 |
)% |
|
Rest of World |
|
12.3 |
|
|
17.1 |
|
|
(28.1 |
)% |
|
(29.6 |
)% |
|
Total |
|
24.2 |
|
|
32.1 |
|
|
(24.6 |
)% |
|
(27.2 |
)% |
|
Advanced Circulatory Support |
|
|
|
|
|
|
|
|
||||
|
US |
|
13.0 |
|
|
8.5 |
|
|
53.3 |
% |
|
53.3 |
% |
|
|
|
0.2 |
|
|
0.2 |
|
|
N/M |
|
|
N/M |
|
|
Rest of World |
|
0.1 |
|
|
0.1 |
|
|
N/M |
|
|
N/M |
|
|
Total |
|
13.3 |
|
|
8.8 |
|
|
50.4 |
% |
|
50.3 |
% |
|
Cardiovascular |
|
|
|
|
|
|
|
|
||||
|
US |
|
52.8 |
|
|
55.6 |
|
|
(5.0 |
)% |
|
(5.0 |
)% |
|
|
|
43.2 |
|
|
45.7 |
|
|
(5.5 |
)% |
|
(11.8 |
)% |
|
Rest of World |
|
63.5 |
|
|
72.1 |
|
|
(11.9 |
)% |
|
(13.0 |
)% |
|
Total |
|
159.6 |
|
|
173.5 |
|
|
(8.0 |
)% |
|
(10.1 |
)% |
|
Neuromodulation |
|
|
|
|
|
|
|
|
||||
|
US |
|
85.2 |
|
|
89.5 |
|
|
(4.8 |
)% |
|
(4.8 |
)% |
|
|
|
11.5 |
|
|
12.2 |
|
|
(5.2 |
)% |
|
(10.7 |
)% |
|
Rest of World |
|
12.5 |
|
|
11.4 |
|
|
8.9 |
% |
|
10.9 |
% |
|
Total |
|
109.2 |
|
|
113.1 |
|
|
(3.5 |
)% |
|
(3.8 |
)% |
|
Other |
|
|
|
|
|
|
|
|
||||
|
US |
|
— |
|
|
— |
|
|
N/A |
|
|
N/A |
|
|
|
|
— |
|
|
— |
|
|
N/A |
|
|
N/A |
|
|
Rest of World |
|
0.8 |
|
|
1.0 |
|
|
(22.8 |
)% |
|
(27.3 |
)% |
|
Total |
|
0.8 |
|
|
1.0 |
|
|
(22.8 |
)% |
|
(27.3 |
)% |
|
Totals |
|
|
|
|
|
|
|
|
||||
|
US |
|
138.0 |
|
|
145.1 |
|
|
(4.9 |
)% |
|
(4.9 |
)% |
|
|
|
54.8 |
|
|
57.9 |
|
|
(5.4 |
)% |
|
(11.6 |
)% |
|
Rest of World |
|
76.8 |
|
|
84.6 |
|
|
(9.2 |
)% |
|
(10.0 |
)% |
|
Total |
|
|
|
|
|
|
|
(6.3 |
)% |
|
(7.7 |
)% |
|
(1) |
Constant-currency growth, a non-GAAP financial measure, measures the change in sales between current and prior-year periods using average exchange rates in effect during the applicable prior-year period. |
|
|
* |
The sales results presented are unaudited. Numbers may not add precisely due to rounding. |
|
|
||||||||||||
|
( |
||||||||||||
|
|
|
Twelve Months Ended |
||||||||||
|
|
|
2020 |
|
2019 |
|
% Change at Actual |
|
% Change at |
||||
|
Cardiopulmonary |
|
|
|
|
|
|
|
|
||||
|
US |
|
|
|
|
|
|
|
(17.9 |
)% |
|
(17.9 |
)% |
|
|
|
122.1 |
|
|
135.6 |
|
|
(10.0 |
)% |
|
(11.7 |
)% |
|
Rest of World |
|
192.1 |
|
|
207.6 |
|
|
(7.5 |
)% |
|
(6.1 |
)% |
|
Total |
|
446.7 |
|
|
504.7 |
|
|
(11.5 |
)% |
|
(11.4 |
)% |
|
Heart Valves |
|
|
|
|
|
|
|
|
||||
|
US |
|
12.5 |
|
|
18.9 |
|
|
(33.9 |
)% |
|
(33.9 |
)% |
|
|
|
31.3 |
|
|
40.5 |
|
|
(22.9 |
)% |
|
(24.3 |
)% |
|
Rest of World |
|
44.3 |
|
|
60.6 |
|
|
(26.9 |
)% |
|
(25.9 |
)% |
|
Total |
|
88.0 |
|
|
120.0 |
|
|
(26.6 |
)% |
|
(26.6 |
)% |
|
Advanced Circulatory Support |
|
|
|
|
|
|
|
|
||||
|
US |
|
41.1 |
|
|
30.8 |
|
|
33.5 |
% |
|
33.5 |
% |
|
|
|
1.0 |
|
|
0.7 |
|
|
N/M |
|
|
N/M |
|
|
Rest of World |
|
0.2 |
|
|
0.4 |
|
|
N/M |
|
|
N/M |
|
|
Total |
|
42.3 |
|
|
31.9 |
|
|
32.6 |
% |
|
32.6 |
% |
|
Cardiovascular |
|
|
|
|
|
|
|
|
||||
|
US |
|
186.1 |
|
|
211.2 |
|
|
(11.9 |
)% |
|
(11.9 |
)% |
|
|
|
154.3 |
|
|
176.9 |
|
|
(12.8 |
)% |
|
(14.4 |
)% |
|
Rest of World |
|
236.6 |
|
|
268.6 |
|
|
(11.9 |
)% |
|
(10.6 |
)% |
|
Total |
|
577.1 |
|
|
656.6 |
|
|
(12.1 |
)% |
|
(12.0 |
)% |
|
Neuromodulation |
|
|
|
|
|
|
|
|
||||
|
US |
|
282.5 |
|
|
335.3 |
|
|
(15.8 |
)% |
|
(15.8 |
)% |
|
|
|
39.0 |
|
|
46.3 |
|
|
(15.7 |
)% |
|
(17.0 |
)% |
|
Rest of World |
|
32.9 |
|
|
43.0 |
|
|
(23.4 |
)% |
|
(20.3 |
)% |
|
Total |
|
354.4 |
|
|
424.5 |
|
|
(16.5 |
)% |
|
(16.4 |
)% |
|
Other |
|
|
|
|
|
|
|
|
||||
|
US |
|
— |
|
|
— |
|
|
N/A |
|
|
N/A |
|
|
|
|
— |
|
|
— |
|
|
N/A |
|
|
N/A |
|
|
Rest of World |
|
2.7 |
|
|
3.0 |
|
|
(8.8 |
)% |
|
(10.7 |
)% |
|
Total |
|
2.7 |
|
|
3.0 |
|
|
(8.8 |
)% |
|
(10.7 |
)% |
|
Totals |
|
|
|
|
|
|
|
|
||||
|
US |
|
468.6 |
|
|
546.5 |
|
|
(14.2 |
)% |
|
(14.2 |
)% |
|
|
|
193.4 |
|
|
223.2 |
|
|
(13.4 |
)% |
|
(14.9 |
)% |
|
Rest of World |
|
272.2 |
|
|
314.5 |
|
|
(13.4 |
)% |
|
(12.0 |
)% |
|
Total |
|
|
|
|
|
|
|
(13.8 |
)% |
|
(13.7 |
)% |
|
(1) |
Constant-currency growth, a non-GAAP financial measure, measures the change in sales between current and prior-year periods using average exchange rates in effect during the applicable prior-year period. |
|
|
* |
The sales results presented are unaudited. Numbers may not add precisely due to rounding. |
|
|
|
|
|
||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED |
|
|
|||||||
|
( |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|||
|
|
|
Three Months Ended |
|
|
|||||
|
|
|
2020 |
|
2019 |
|
% Change |
|||
|
Net sales |
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|||
|
Cost of sales - exclusive of amortization |
|
95.9 |
|
|
78.2 |
|
|
|
|
|
Product remediation |
|
1.0 |
|
|
4.6 |
|
|
|
|
|
Selling, general and administrative |
|
110.3 |
|
|
130.5 |
|
|
|
|
|
Research and development |
|
44.5 |
|
|
23.7 |
|
|
|
|
|
Merger and integration expenses |
|
0.7 |
|
|
9.1 |
|
|
|
|
|
Restructuring expenses |
|
5.5 |
|
|
7.7 |
|
|
|
|
|
Impairment of disposal group |
|
180.2 |
|
|
— |
|
|
|
|
|
Impairment of goodwill |
|
21.3 |
|
|
42.4 |
|
|
|
|
|
Impairment of long-lived assets |
|
6.8 |
|
|
91.3 |
|
|
|
|
|
Amortization of intangibles |
|
9.0 |
|
|
10.7 |
|
|
|
|
|
Decommissioning provision |
|
42.2 |
|
|
— |
|
|
|
|
|
Litigation provision, net |
|
(0.1 |
) |
|
33.2 |
|
|
|
|
|
Operating loss from continuing operations |
|
(247.7 |
) |
|
(144.0 |
) |
|
72.1 |
% |
|
Interest expense, net |
|
(16.0 |
) |
|
(4.4 |
) |
|
|
|
|
Foreign exchange and other losses |
|
(33.9 |
) |
|
(1.7 |
) |
|
|
|
|
Loss from continuing operations before tax |
|
(297.6 |
) |
|
(150.1 |
) |
|
98.2 |
% |
|
Income tax benefit |
|
(18.3 |
) |
|
(6.7 |
) |
|
|
|
|
Losses from equity method investments |
|
— |
|
|
— |
|
|
|
|
|
Net loss from continuing operations |
|
(279.3 |
) |
|
(143.4 |
) |
|
94.8 |
% |
|
Net (loss) income from discontinued operations, net of tax |
|
(0.5 |
) |
|
0.2 |
|
|
|
|
|
Net loss |
|
( |
) |
|
( |
) |
|
95.4 |
% |
|
|
|
|
|
|
|
|
|||
|
Basic loss per share: |
|
|
|
|
|
|
|||
|
Continuing operations |
|
( |
) |
|
( |
) |
|
|
|
|
Discontinued operations |
|
(0.01 |
) |
|
— |
|
|
|
|
|
|
|
( |
) |
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|||
|
Diluted loss per share: |
|
|
|
|
|
|
|||
|
Continuing operations |
|
( |
) |
|
( |
) |
|
|
|
|
Discontinued operations |
|
(0.01 |
) |
|
— |
|
|
|
|
|
|
|
( |
) |
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|||
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|||
|
Basic |
|
48.6 |
|
|
48.4 |
|
|
|
|
|
Diluted |
|
48.6 |
|
|
48.4 |
|
|
|
|
|
* |
Numbers may not add precisely due to rounding. |
| Adjusted Financial Measures ( |
|||||||||
|
|
|
|
|
|
|
|
|||
|
|
|
Three Months Ended |
|
% Change (1) |
|||||
|
|
|
2020 |
|
2019 |
|
||||
|
Adjusted SG&A (1) |
|
|
|
|
|
|
|
(12.9 |
)% |
|
Adjusted R&D (1) |
|
39.0 |
|
|
37.6 |
|
|
3.6 |
% |
|
Adjusted operating income from continuing operations (1) |
|
48.6 |
|
|
55.3 |
|
|
(12.1 |
)% |
|
Adjusted net income from continuing operations (1) |
|
34.9 |
|
|
48.8 |
|
|
(28.3 |
)% |
|
Adjusted diluted earnings per share from continuing operations (1) |
|
|
|
|
|
|
|
(28.5 |
)% |
|
(1) |
Adjusted financial measures are non-GAAP measures and exclude specified items as described and reconciled in the "Reconciliation of GAAP to non-GAAP Financial Measures" contained in the press release. |
| Statistics (as a % of net sales, except for income tax rate) | ||||||||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
GAAP Three Months Ended |
|
Adjusted (1) Three Months Ended |
||||||||
|
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||
|
Gross profit |
|
64.1 |
% |
|
71.2 |
% |
|
67.2 |
% |
|
69.7 |
% |
|
SG&A |
|
40.9 |
% |
|
45.4 |
% |
|
34.7 |
% |
|
37.4 |
% |
|
R&D |
|
16.5 |
% |
|
8.2 |
% |
|
14.5 |
% |
|
13.1 |
% |
|
Operating (loss) income from continuing operations |
|
(91.9 |
)% |
|
(50.1 |
)% |
|
18.0 |
% |
|
19.2 |
% |
|
Net (loss) income from continuing operations |
|
(103.6 |
)% |
|
(49.9 |
)% |
|
13.0 |
% |
|
17.0 |
% |
|
Income tax rate |
|
6.2 |
% |
|
4.5 |
% |
|
(0.1 |
)% |
|
5.3 |
% |
|
(1) |
Adjusted financial measures are non-GAAP measures and exclude specified items as described and reconciled in the "Reconciliation of GAAP to non-GAAP Financial Measures" contained in the press release. |
|
|
|
|
|
||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED |
|
|
|||||||
|
( |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|||
|
|
|
Twelve Months Ended |
|
|
|||||
|
|
|
2020 |
|
2019 |
|
% Change |
|||
|
Net sales |
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|||
|
Cost of sales - exclusive of amortization |
|
308.1 |
|
|
323.5 |
|
|
|
|
|
Product remediation |
|
7.9 |
|
|
15.8 |
|
|
|
|
|
Selling, general and administrative |
|
427.8 |
|
|
506.5 |
|
|
|
|
|
Research and development |
|
152.9 |
|
|
146.8 |
|
|
|
|
|
Merger and integration expenses |
|
7.3 |
|
|
23.5 |
|
|
|
|
|
Restructuring expenses |
|
7.6 |
|
|
12.3 |
|
|
|
|
|
Impairment of disposal group |
|
180.2 |
|
|
— |
|
|
|
|
|
Impairment of goodwill |
|
21.3 |
|
|
42.4 |
|
|
|
|
|
Impairment of long-lived assets |
|
6.8 |
|
|
142.5 |
|
|
|
|
|
Amortization of intangibles |
|
38.3 |
|
|
40.4 |
|
|
|
|
|
Decommissioning provision |
|
42.2 |
|
|
— |
|
|
|
|
|
Litigation provision, net |
|
3.9 |
|
|
(0.6 |
) |
|
|
|
|
Operating loss from continuing operations |
|
(269.9 |
) |
|
(168.9 |
) |
|
59.8 |
% |
|
Interest expense, net |
|
(40.7 |
) |
|
(14.3 |
) |
|
|
|
|
Foreign exchange and other losses |
|
(33.4 |
) |
|
(2.5 |
) |
|
|
|
|
Loss from continuing operations before tax |
|
(344.0 |
) |
|
(185.7 |
) |
|
85.2 |
% |
|
Income tax benefit |
|
(0.7 |
) |
|
(30.2 |
) |
|
|
|
|
Losses from equity method investments |
|
(0.3 |
) |
|
— |
|
|
|
|
|
Net loss from continuing operations |
|
(343.5 |
) |
|
(155.5 |
) |
|
120.9 |
% |
|
Net (loss) income from discontinued operations, net of tax |
|
(1.5 |
) |
|
0.4 |
|
|
|
|
|
Net loss |
|
( |
) |
|
( |
) |
|
122.3 |
% |
|
|
|
|
|
|
|
|
|||
|
Basic (loss) income per share: |
|
|
|
|
|
|
|||
|
Continuing operations |
|
( |
) |
|
( |
) |
|
|
|
|
Discontinued operations |
|
(0.03 |
) |
|
0.01 |
|
|
|
|
|
|
|
( |
) |
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|||
|
Diluted (loss) income per share: |
|
|
|
|
|
|
|||
|
Continuing operations |
|
( |
) |
|
( |
) |
|
|
|
|
Discontinued operations |
|
(0.03 |
) |
|
0.01 |
|
|
|
|
|
|
|
( |
) |
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|||
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|||
|
Basic |
|
48.6 |
|
|
48.3 |
|
|
|
|
|
Diluted |
|
48.6 |
|
|
48.3 |
|
|
|
|
|
* |
Numbers may not add precisely due to rounding. |
| Adjusted Financial Measures ( |
|||||||||
|
|
|
|
|
|
|
|
|||
|
|
|
Twelve Months Ended |
|
|
|||||
|
|
|
2020 |
|
2019 |
|
% Change (1) |
|||
|
Adjusted SG&A (1) |
|
|
|
|
|
|
|
(12.5 |
)% |
|
Adjusted R&D (1) |
|
150.9 |
|
|
152.9 |
|
|
(1.3 |
)% |
|
Adjusted operating income from continuing operations (1) |
|
97.5 |
|
|
179.7 |
|
|
(45.7 |
)% |
|
Adjusted net income from continuing operations (1) |
|
61.9 |
|
|
150.4 |
|
|
(58.9 |
)% |
|
Adjusted diluted earnings per share from continuing operations (1) |
|
|
|
|
|
|
|
(58.9 |
)% |
|
(1) |
Adjusted financial measures are non-GAAP measures and exclude specified items as described and reconciled in the "Reconciliation of GAAP to non-GAAP Financial Measures" contained in the press release. |
| Statistics (as a % of net sales, except for income tax rate) | ||||||||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
GAAP Twelve Months Ended |
|
Adjusted (1) Twelve Months Ended |
||||||||
|
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||
|
Gross profit |
|
66.2 |
% |
|
68.7 |
% |
|
66.1 |
% |
|
69.6 |
% |
|
SG&A |
|
45.8 |
% |
|
46.7 |
% |
|
39.5 |
% |
|
38.9 |
% |
|
R&D |
|
16.4 |
% |
|
13.5 |
% |
|
16.2 |
% |
|
14.1 |
% |
|
Operating (loss) income from continuing operations |
|
(28.9 |
)% |
|
(15.6 |
)% |
|
10.4 |
% |
|
16.6 |
% |
|
Net (loss) income from continuing operations |
|
(36.8 |
)% |
|
(14.3 |
)% |
|
6.6 |
% |
|
13.9 |
% |
|
Income tax rate |
|
0.2 |
% |
|
16.2 |
% |
|
3.2 |
% |
|
11.2 |
% |
|
(1) |
Adjusted financial measures are non-GAAP measures and exclude specified items as described and reconciled in the "Reconciliation of GAAP to non-GAAP Financial Measures" contained in the press release. |
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED ( |
||||||||||||||||||||||||||||||||||||
|
|
|
Specified Items |
|
|||||||||||||||||||||||||||||||||
|
Three Months Ended |
GAAP |
Merger and |
Restructuring |
Depreciation |
Impairments |
Product |
Financing |
Non-recurring |
Stock-based |
Certain Tax |
Certain |
Adjusted |
||||||||||||||||||||||||
|
Cost of sales - exclusive of amortization |
|
|
$— |
|
$— |
|
( |
) |
$— |
|
$— |
|
$— |
|
( |
) |
( |
) |
$— |
|
$— |
|
|
|
||||||||||||
|
Product remediation |
1.0 |
|
— |
|
— |
|
— |
|
— |
|
(1.0 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
||||||||||||
|
Gross profit percent |
64.1 |
% |
— |
% |
— |
% |
0.1 |
% |
— |
% |
0.4 |
% |
— |
% |
2.5 |
% |
0.2 |
% |
— |
% |
— |
% |
67.2 |
% |
||||||||||||
|
Selling, general and administrative |
110.3 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(0.2 |
) |
(10.0 |
) |
(6.5 |
) |
— |
|
— |
|
93.7 |
|
||||||||||||
|
Selling, general and administrative as a percent of net sales |
40.9 |
% |
— |
% |
— |
% |
— |
% |
— |
% |
— |
% |
(0.1 |
)% |
(3.7 |
)% |
(2.4 |
)% |
— |
% |
— |
% |
34.7 |
% |
||||||||||||
|
Research and development |
44.5 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(4.3 |
) |
(1.2 |
) |
— |
|
— |
|
39.0 |
|
||||||||||||
|
Research and development as a percent of net sales |
16.5 |
% |
— |
% |
— |
% |
— |
% |
— |
% |
— |
% |
— |
% |
(1.6 |
)% |
(0.5 |
)% |
— |
% |
— |
% |
14.5 |
% |
||||||||||||
|
Decommissioning provision |
42.2 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(42.2 |
) |
— |
|
— |
|
— |
|
— |
|
||||||||||||
|
Litigation provision, net |
(0.1 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
0.1 |
|
— |
|
— |
|
— |
|
— |
|
||||||||||||
|
Other operating expenses |
223.4 |
|
(0.7 |
) |
(5.5 |
) |
(9.0 |
) |
(208.2 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
||||||||||||
|
Operating (loss) income from continuing operations |
(247.7 |
) |
0.7 |
|
5.5 |
|
9.4 |
|
208.2 |
|
1.0 |
|
0.2 |
|
63.1 |
|
8.2 |
|
— |
|
— |
|
48.6 |
|
||||||||||||
|
Operating margin percent |
(91.9 |
)% |
0.3 |
% |
2.1 |
% |
3.5 |
% |
77.2 |
% |
0.4 |
% |
0.1 |
% |
23.4 |
% |
3.1 |
% |
— |
% |
— |
% |
18.0 |
% |
||||||||||||
|
Income tax (benefit) expense |
(18.3 |
) |
(0.3 |
) |
0.4 |
|
(1.3 |
) |
23.1 |
|
0.3 |
|
— |
|
(0.1 |
) |
(0.4 |
) |
(3.7 |
) |
0.3 |
|
— |
|
||||||||||||
|
Net (loss) income from continuing operations |
(279.3 |
) |
1.0 |
|
5.2 |
|
10.7 |
|
185.1 |
|
0.7 |
|
32.2 |
|
62.6 |
|
8.7 |
|
3.7 |
|
4.5 |
|
34.9 |
|
||||||||||||
|
Diluted EPS - Continuing Operations |
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
GAAP results for the three months ended |
||
|
(A) |
Merger and integration expenses related to our legacy companies and recent acquisitions |
|
|
(B) |
Restructuring expenses related to organizational changes |
|
|
(C) |
Includes depreciation and amortization associated with purchase price accounting |
|
|
(D) |
Impairments primarily associated with the classification of Heart Valves as held for sale |
|
|
(E) |
Costs related to the 3T Heater-Cooler remediation plan |
|
|
(F) |
Costs associated with our |
|
|
(G) |
3T Heater-Cooler litigation provision, legal expenses primarily related to 3T Heater-Cooler defense, settlements and other matters, remeasurement of contingent consideration related to acquisitions and provision for decommissioning at our Saluggia site |
|
|
(H) |
Non-cash expenses associated with stock-based compensation costs |
|
|
(I) |
Primarily relates to discrete tax items and the tax impact of intercompany transactions |
|
|
(J) |
Primarily relates to non-cash interest expense on our Senior Secured Term Loan and Cash Exchangeable Senior Notes and intellectual property migration |
|
|
* Numbers may not add precisely due to rounding. |
||
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED |
||||||||||||||||||||||||||||||||||||
|
|
|
Specified Items |
|
|||||||||||||||||||||||||||||||||
|
Three Months Ended |
GAAP |
Merger and |
Restructuring |
Depreciation |
Impairments |
Product |
Acquisition |
Non-recurring Legal |
Stock-based |
Certain Tax |
Certain |
Adjusted |
||||||||||||||||||||||||
|
Cost of sales - exclusive of amortization |
|
|
$— |
|
$— |
|
( |
) |
$— |
|
$— |
|
$— |
|
|
|
( |
) |
$— |
|
$— |
|
|
|
||||||||||||
|
Product remediation |
4.6 |
|
— |
|
— |
|
— |
|
— |
|
(4.6 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
||||||||||||
|
Gross profit percent |
71.2 |
% |
— |
% |
— |
% |
0.1 |
% |
— |
% |
1.6 |
% |
— |
% |
(3.4 |
)% |
0.1 |
% |
— |
% |
— |
% |
69.7 |
% |
||||||||||||
|
Selling, general and administrative |
130.5 |
|
— |
|
— |
|
(0.1 |
) |
— |
|
— |
|
(0.4 |
) |
(15.5 |
) |
(7.1 |
) |
— |
|
— |
|
107.5 |
|
||||||||||||
|
Selling, general and administrative as a percent of net sales |
45.4 |
% |
— |
% |
— |
% |
— |
% |
— |
% |
— |
% |
(0.1 |
)% |
(5.4 |
)% |
(2.5 |
)% |
— |
% |
— |
% |
37.4 |
% |
||||||||||||
|
Research and development |
23.7 |
|
— |
|
— |
|
— |
|
(2.7 |
) |
— |
|
3.3 |
|
14.4 |
|
(1.1 |
) |
— |
|
— |
|
37.6 |
|
||||||||||||
|
Research and development as a percent of net sales |
8.2 |
% |
— |
% |
— |
% |
— |
% |
(0.9 |
)% |
— |
% |
1.2 |
% |
5.0 |
% |
(0.4 |
)% |
— |
% |
— |
% |
13.1 |
% |
||||||||||||
|
Litigation provision, net |
33.2 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(33.2 |
) |
— |
|
— |
|
— |
|
— |
|
||||||||||||
|
Other operating expenses |
161.2 |
|
(9.1 |
) |
(7.7 |
) |
(10.7 |
) |
(133.7 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
||||||||||||
|
Operating (loss) income from continuing operations |
(144.0 |
) |
9.1 |
|
7.7 |
|
11.2 |
|
136.4 |
|
4.6 |
|
(2.9 |
) |
24.6 |
|
8.4 |
|
— |
|
— |
|
55.3 |
|
||||||||||||
|
Operating margin percent |
(50.1 |
)% |
3.2 |
% |
2.7 |
% |
3.9 |
% |
47.4 |
% |
1.6 |
% |
(1.0 |
)% |
8.6 |
% |
2.9 |
% |
— |
% |
— |
% |
19.2 |
% |
||||||||||||
|
Income tax (benefit) expense |
(6.7 |
) |
0.3 |
|
1.1 |
|
1.1 |
|
11.3 |
|
1.0 |
|
(0.6 |
) |
0.2 |
|
0.4 |
|
(5.6 |
) |
0.3 |
|
2.7 |
|
||||||||||||
|
Net (loss) income from continuing operations |
(143.4 |
) |
8.9 |
|
6.5 |
|
10.2 |
|
125.1 |
|
3.6 |
|
(2.3 |
) |
24.4 |
|
8.1 |
|
5.6 |
|
2.1 |
|
48.8 |
|
||||||||||||
|
Diluted EPS - Continuing Operations |
( |
) |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
GAAP results for the three months ended |
||
|
(A) |
Merger and integration expenses related to our legacy companies and recent acquisitions |
|
|
(B) |
Restructuring expenses related to organizational changes |
|
|
(C) |
Includes depreciation and amortization associated with purchase price accounting |
|
|
(D) |
Impairment of Transcatheter Mitral Valve Replacement goodwill, intangible assets and other long-lived assets |
|
|
(E) |
Costs related to the 3T Heater-Cooler remediation plan |
|
|
(F) |
Costs related to acquisitions |
|
|
(G) |
3T Heater-Cooler litigation provision, legal expenses primarily related to 3T Heater-Cooler defense, settlements and other matters, remeasurement of contingent consideration related to acquisitions and AR reserves |
|
|
(H) |
Non-cash expenses associated with stock-based compensation costs |
|
|
(I) |
Primarily relates to discrete tax items and the tax impact of intercompany transactions |
|
|
(J) |
Primarily relates to intellectual property migration, interest related to 3T Heater-Cooler litigation settlement and other non-recurring impacts to interest expense |
|
|
* Numbers may not add precisely due to rounding. |
||
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED |
||||||||||||||||||||||||||||||||||||
|
|
|
Specified Items |
|
|||||||||||||||||||||||||||||||||
|
Twelve Months Ended |
GAAP |
Merger and |
Restructuring |
Depreciation |
Impairments |
Product |
Financing |
Non-recurring |
Stock-based |
Certain Tax |
Certain Interest |
Adjusted |
||||||||||||||||||||||||
|
Cost of sales - exclusive of amortization |
|
|
$— |
|
$— |
|
( |
) |
$— |
|
$— |
|
$— |
|
|
|
( |
) |
$— |
|
$— |
|
|
|
||||||||||||
|
Product remediation |
7.9 |
|
— |
|
— |
|
— |
|
— |
|
(7.9 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
||||||||||||
|
Gross profit percent |
66.2 |
% |
— |
% |
— |
% |
0.1 |
% |
— |
% |
0.8 |
% |
— |
% |
(1.3 |
)% |
0.2 |
% |
— |
% |
— |
% |
66.1 |
% |
||||||||||||
|
Selling, general and administrative |
427.8 |
|
— |
|
— |
|
(1.4 |
) |
— |
|
— |
|
(2.6 |
) |
(25.3 |
) |
(29.7 |
) |
— |
|
— |
|
368.8 |
|
||||||||||||
|
Selling, general and administrative as a percent of net sales |
45.8 |
% |
— |
% |
— |
% |
(0.1 |
)% |
— |
% |
— |
% |
(0.3 |
)% |
(2.7 |
)% |
(3.2 |
)% |
— |
% |
— |
% |
39.5 |
% |
||||||||||||
|
Research and development |
152.9 |
|
— |
|
— |
|
(0.1 |
) |
— |
|
— |
|
— |
|
1.6 |
|
(3.5 |
) |
— |
|
— |
|
150.9 |
|
||||||||||||
|
Research and development as a percent of net sales |
16.4 |
% |
— |
% |
— |
% |
— |
% |
— |
% |
— |
% |
— |
% |
0.2 |
% |
(0.4 |
)% |
— |
% |
— |
% |
16.2 |
% |
||||||||||||
|
Decommissioning provision |
42.2 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(42.2 |
) |
— |
|
— |
|
— |
|
— |
|
||||||||||||
|
Litigation provision, net |
3.9 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(3.9 |
) |
— |
|
— |
|
— |
|
— |
|
||||||||||||
|
Other operating expenses |
261.4 |
|
(7.3 |
) |
(7.6 |
) |
(38.3 |
) |
(208.2 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
||||||||||||
|
Operating (loss) income from continuing operations |
(269.9 |
) |
7.3 |
|
7.6 |
|
41.2 |
|
208.2 |
|
7.9 |
|
2.6 |
|
57.5 |
|
35.1 |
|
— |
|
— |
|
97.5 |
|
||||||||||||
|
Operating margin percent |
(28.9 |
)% |
0.8 |
% |
0.8 |
% |
4.4 |
% |
22.3 |
% |
0.8 |
% |
0.3 |
% |
6.2 |
% |
3.8 |
% |
— |
% |
— |
% |
10.4 |
% |
||||||||||||
|
Income tax (benefit) expense |
(0.7 |
) |
— |
|
0.4 |
|
3.2 |
|
23.1 |
|
1.4 |
|
— |
|
2.2 |
|
0.6 |
|
(28.1 |
) |
— |
|
2.1 |
|
||||||||||||
|
Net (loss) income from continuing operations |
(343.5 |
) |
7.3 |
|
7.2 |
|
38.0 |
|
185.1 |
|
6.4 |
|
30.0 |
|
54.8 |
|
34.5 |
|
28.1 |
|
14.0 |
|
61.9 |
|
||||||||||||
|
Diluted EPS - Continuing Operations |
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
GAAP results for the twelve months ended |
||
|
(A) |
Merger and integration expenses related to our legacy companies and recent acquisitions |
|
|
(B) |
Restructuring expenses related to organizational changes |
|
|
(C) |
Includes depreciation and amortization associated with purchase price accounting |
|
|
(D) |
Impairments primarily associated with the classification of Heart Valves as held for sale |
|
|
(E) |
Costs related to the 3T Heater-Cooler remediation plan |
|
|
(F) |
Costs associated with our |
|
|
(G) |
3T Heater-Cooler litigation provision, legal expenses primarily related to 3T Heater-Cooler defense, settlements and other matters, remeasurement of contingent consideration related to acquisitions and provision for decommissioning at our Saluggia site |
|
|
(H) |
Non-cash expenses associated with stock-based compensation costs |
|
|
(I) |
Primarily relates to discrete tax items and the tax impact of intercompany transactions |
|
|
(J) |
Primarily relates to non-cash interest expense on our Senior Secured Term Loan and Cash Exchangeable Senior Notes, interest related to the 3T Heater-Cooler matter, intellectual property migration and interest reversed upon the settlement of a tax litigation matter |
|
|
* Numbers may not add precisely due to rounding. |
||
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED |
||||||||||||||||||||||||||||||||||||
|
|
|
Specified Items |
|
|||||||||||||||||||||||||||||||||
|
Twelve Months Ended |
GAAP |
Merger and |
Restructuring |
Depreciation |
Impairments |
Product |
Acquisition |
Non-recurring |
Stock-based |
Certain Tax |
Certain |
Adjusted |
||||||||||||||||||||||||
|
Cost of sales - exclusive of amortization |
|
|
$— |
|
$— |
|
( |
) |
$— |
|
$— |
|
$— |
|
|
|
( |
) |
$— |
|
$— |
|
|
|
||||||||||||
|
Product remediation |
15.8 |
|
— |
|
— |
|
— |
|
— |
|
(15.8 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
||||||||||||
|
Gross profit percent |
68.7 |
% |
— |
% |
— |
% |
0.2 |
% |
— |
% |
1.5 |
% |
— |
% |
(0.9 |
)% |
0.1 |
% |
— |
% |
— |
% |
69.6 |
% |
||||||||||||
|
Selling, general and administrative |
506.5 |
|
— |
|
— |
|
(0.5 |
) |
— |
|
— |
|
(1.1 |
) |
(57.6 |
) |
(25.6 |
) |
— |
|
— |
|
421.6 |
|
||||||||||||
|
Selling, general and administrative as a percent of net sales |
46.7 |
% |
— |
% |
— |
% |
— |
% |
— |
% |
— |
% |
(0.1 |
)% |
(5.3 |
)% |
(2.4 |
)% |
— |
% |
— |
% |
38.9 |
% |
||||||||||||
|
Research and development |
146.8 |
|
— |
|
— |
|
(0.2 |
) |
(3.6 |
) |
— |
|
1.9 |
|
13.6 |
|
(5.6 |
) |
— |
|
— |
|
152.9 |
|
||||||||||||
|
Research and development as a percent of net sales |
13.5 |
% |
— |
% |
— |
% |
— |
% |
(0.3 |
)% |
— |
% |
0.2 |
% |
1.3 |
% |
(0.5 |
)% |
— |
% |
— |
% |
14.1 |
% |
||||||||||||
|
Litigation provision, net |
(0.6 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
0.6 |
|
— |
|
— |
|
— |
|
— |
|
||||||||||||
|
Other operating expenses |
261.0 |
|
(23.5 |
) |
(12.3 |
) |
(40.4 |
) |
(184.9 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
||||||||||||
|
Operating (loss) income from continuing operations |
(168.9 |
) |
23.5 |
|
12.3 |
|
43.5 |
|
188.5 |
|
15.8 |
|
(0.7 |
) |
33.3 |
|
32.6 |
|
— |
|
— |
|
179.7 |
|
||||||||||||
|
Operating margin percent |
(15.6 |
)% |
2.2 |
% |
1.1 |
% |
4.0 |
% |
17.4 |
% |
1.5 |
% |
(0.1 |
)% |
3.1 |
% |
3.0 |
% |
— |
% |
— |
% |
16.6 |
% |
||||||||||||
|
Income tax (benefit) expense |
(30.2 |
) |
3.5 |
|
2.3 |
|
9.3 |
|
23.7 |
|
4.6 |
|
(0.1 |
) |
5.6 |
|
6.0 |
|
(6.8 |
) |
1.1 |
|
19.0 |
|
||||||||||||
|
Net (loss) income from continuing operations |
(155.5 |
) |
19.9 |
|
10.0 |
|
34.2 |
|
164.8 |
|
11.2 |
|
(0.6 |
) |
27.7 |
|
26.6 |
|
6.8 |
|
5.3 |
|
150.4 |
|
||||||||||||
|
Diluted EPS - Continuing Operations |
( |
) |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
GAAP results for the twelve months ended |
||
|
(A) |
Merger and integration expenses related to our legacy companies and recent acquisitions |
|
|
(B) |
Restructuring expenses related to organizational changes |
|
|
(C) |
Includes depreciation and amortization associated with purchase price accounting |
|
|
(D) |
Impairment of Transcatheter Mitral Valve Replacement goodwill, intangible assets and other long-lived assets and Obstructive Sleep Apnea intangible assets and other long-lived assets |
|
|
(E) |
Costs related to the 3T Heater-Cooler remediation plan |
|
|
(F) |
Costs related to acquisitions |
|
|
(G) |
3T Heater-Cooler litigation provision, 3T insurance recovery, legal expenses primarily related to 3T Heater-Cooler defense, settlements and other matters, remeasurement of contingent consideration related to acquisitions and AR reserves |
|
|
(H) |
Non-cash expenses associated with stock-based compensation costs |
|
|
(I) |
Primarily relates to discrete tax items and the tax impact of intercompany transactions |
|
|
(J) |
Primarily relates to intellectual property migration, interest related to 3T Heater-Cooler litigation settlement and other non-recurring impacts to interest expense |
|
|
* Numbers may not add precisely due to rounding. |
||
|
|
||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED |
||||||
|
( |
||||||
|
|
|
|
|
|
||
|
ASSETS |
|
|
|
|
||
|
Current Assets: |
|
|
|
|
||
|
Cash and cash equivalents |
|
|
|
|
|
|
|
Accounts receivable, net of allowance |
|
184.4 |
|
|
257.8 |
|
|
Inventories |
|
126.7 |
|
|
164.2 |
|
|
Prepaid and refundable taxes |
|
60.2 |
|
|
37.8 |
|
|
Assets held for sale |
|
70.5 |
|
|
— |
|
|
Prepaid expenses and other current assets |
|
24.8 |
|
|
28.6 |
|
|
Total Current Assets |
|
719.4 |
|
|
549.4 |
|
|
Property, plant and equipment, net |
|
163.8 |
|
|
181.4 |
|
|
|
|
922.3 |
|
|
915.8 |
|
|
Intangible assets, net |
|
437.6 |
|
|
607.5 |
|
|
Operating lease assets |
|
50.5 |
|
|
54.4 |
|
|
Investments |
|
31.1 |
|
|
27.3 |
|
|
Deferred tax assets |
|
3.0 |
|
|
68.7 |
|
|
Other assets |
|
83.5 |
|
|
7.4 |
|
|
Total Assets |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
||
|
Current Liabilities: |
|
|
|
|
||
|
Current debt obligations |
|
|
|
|
|
|
|
Accounts payable |
|
73.7 |
|
|
85.9 |
|
|
Accrued liabilities and other |
|
95.4 |
|
|
120.1 |
|
|
Current litigation provision liability |
|
28.6 |
|
|
146.0 |
|
|
Taxes payable |
|
16.5 |
|
|
12.7 |
|
|
Accrued employee compensation and related benefits |
|
51.9 |
|
|
70.4 |
|
|
Liabilities held for sale |
|
29.7 |
|
|
— |
|
|
Total Current Liabilities |
|
309.1 |
|
|
512.6 |
|
|
Long-term debt obligations |
|
642.3 |
|
|
260.3 |
|
|
Contingent consideration |
|
89.9 |
|
|
114.4 |
|
|
Litigation provision liability |
|
7.9 |
|
|
24.4 |
|
|
Deferred tax liabilities |
|
8.9 |
|
|
32.2 |
|
|
Long-term operating lease liabilities |
|
42.2 |
|
|
46.0 |
|
|
Long-term employee compensation and related benefits |
|
20.6 |
|
|
22.8 |
|
|
Long-term derivative liabilities |
|
121.9 |
|
|
0.1 |
|
|
Other long-term liabilities |
|
49.7 |
|
|
15.3 |
|
|
Total Liabilities |
|
1,292.5 |
|
|
1,028.1 |
|
|
Total Stockholders’ Equity |
|
1,118.8 |
|
|
1,383.7 |
|
|
Total Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
* |
Numbers may not add precisely due to rounding. |
|
|
|
|
|
|||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED |
|
|
|
|
||
|
( |
|
Twelve Months Ended |
||||
|
|
|
2020 |
|
2019 |
||
|
Operating Activities: |
|
|
|
|
||
|
Net loss |
|
( |
) |
|
( |
) |
|
Non-cash items included in net loss: |
|
|
|
|
||
|
Impairment of disposal group |
|
180.2 |
|
|
— |
|
|
Amortization |
|
38.3 |
|
|
40.4 |
|
|
Deferred tax expense (benefit) |
|
37.3 |
|
|
(26.3 |
) |
|
Stock-based compensation |
|
35.1 |
|
|
32.6 |
|
|
Depreciation |
|
29.0 |
|
|
30.3 |
|
|
Remeasurement of derivative instruments |
|
22.1 |
|
|
— |
|
|
Impairment of goodwill |
|
21.3 |
|
|
42.4 |
|
|
Remeasurement of contingent consideration to fair value |
|
(20.5 |
) |
|
(29.4 |
) |
|
Amortization of operating lease assets |
|
14.0 |
|
|
12.3 |
|
|
Amortization of debt issuance costs |
|
9.7 |
|
|
2.2 |
|
|
Impairment of long-lived assets |
|
6.8 |
|
|
142.5 |
|
|
Amortization of income taxes payable on inter-company transfers of property |
|
2.2 |
|
|
2.6 |
|
|
Other |
|
1.2 |
|
|
3.2 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
||
|
Accounts receivable, net |
|
58.8 |
|
|
(5.3 |
) |
|
Inventories |
|
1.4 |
|
|
(10.6 |
) |
|
Other current and non-current assets |
|
(39.6 |
) |
|
(2.1 |
) |
|
Accounts payable and accrued current and non-current liabilities |
|
(0.9 |
) |
|
(38.6 |
) |
|
Taxes payable |
|
3.6 |
|
|
(8.4 |
) |
|
Litigation provision liability, net |
|
(134.3 |
) |
|
(123.7 |
) |
|
Net cash used in operating activities |
|
(79.4 |
) |
|
(91.1 |
) |
|
Investing Activities: |
|
|
|
|
||
|
Purchases of property, plant and equipment |
|
(35.0 |
) |
|
(24.7 |
) |
|
Purchases of investments |
|
(3.2 |
) |
|
(2.5 |
) |
|
Loans to investees |
|
(2.7 |
) |
|
— |
|
|
Acquisitions, net of cash acquired |
|
(1.7 |
) |
|
(10.8 |
) |
|
Proceeds from asset sales |
|
1.4 |
|
|
1.3 |
|
|
Purchases of intangible assets |
|
— |
|
|
(3.3 |
) |
|
Other |
|
(0.7 |
) |
|
(1.3 |
) |
|
Net cash used in investing activities |
|
(41.8 |
) |
|
(41.3 |
) |
|
Financing Activities: |
|
|
|
|
||
|
Proceeds from long-term debt obligations |
|
886.9 |
|
|
197.2 |
|
|
Repayment of long-term debt obligations |
|
(482.1 |
) |
|
(24.2 |
) |
|
Proceeds from short-term borrowing (maturities greater than 90 days) |
|
47.1 |
|
|
— |
|
|
Repayment of short-term borrowing (maturities greater than 90 days) |
|
(44.8 |
) |
|
— |
|
|
Purchase of capped call |
|
(43.1 |
) |
|
— |
|
|
Debt issuance costs |
|
(23.7 |
) |
|
(3.8 |
) |
|
Payment of contingent consideration |
|
(12.0 |
) |
|
(19.0 |
) |
|
Closing adjustment payment for sale of CRM business |
|
(14.9 |
) |
|
— |
|
|
Shares repurchased from employees for minimum tax withholding |
|
(5.6 |
) |
|
(7.1 |
) |
|
Proceeds from share issuances under ESPP |
|
3.7 |
|
|
4.5 |
|
|
Change in short-term borrowing, net |
|
(0.9 |
) |
|
(1.2 |
) |
|
Other |
|
0.2 |
|
|
0.2 |
|
|
Net cash provided by financing activities |
|
310.8 |
|
|
146.6 |
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
2.2 |
|
|
(0.2 |
) |
|
Net increase in cash and cash equivalents |
|
191.7 |
|
|
13.9 |
|
|
Cash and cash equivalents at beginning of period |
|
61.1 |
|
|
47.2 |
|
|
Cash and cash equivalents at end of period |
|
|
|
|
|
|
|
* |
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 from continuing operations, to adjusted diluted weighted average shares outstanding, used in the computation of adjusted diluted earnings per common share from continuing operations (in millions of shares):
|
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||
|
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||
|
GAAP diluted weighted average shares outstanding |
|
48.6 |
|
|
48.4 |
|
|
48.6 |
|
|
48.3 |
|
|
Add effects of stock-based compensation instruments |
|
0.3 |
|
|
0.4 |
|
|
0.2 |
|
|
0.5 |
|
|
Adjusted diluted weighted average shares outstanding (1) |
|
48.9 |
|
|
48.8 |
|
|
48.8 |
|
|
48.8 |
|
|
(1) |
Adjusted diluted weighted average shares outstanding is a non-GAAP measure and includes the effects of stock-based compensation instruments, as reconciled in the above table. |
|
|
* |
Numbers may not add precisely due to rounding. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210224005343/en/
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