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Jun 30, 2020

LivaNova Q2 2020 Earnings Report

Reported a decrease in worldwide sales due to COVID-19 impact, but implemented actions to reduce expenses and improve liquidity.

Key Takeaways

LivaNova reported a significant decrease in sales for Q2 2020 due to the impact of COVID-19 on procedure volumes and capital equipment purchases. The company responded by reducing expenses and improving liquidity. While COVID-19 continues to impact the business, there are encouraging signs of gradual improvement in procedure volumes and new product releases.

Worldwide sales decreased by 34.3% on a reported basis and 33.1% on a constant-currency basis compared to Q2 2019.

GAAP diluted loss per share from continuing operations was $1.81, while adjusted diluted loss per share was $0.15.

Implemented actions to reduce expenses, improve liquidity, and increase financial flexibility in response to current conditions.

Encouraged by gradual improvement in procedure volumes, full commercial release of LifeSPARC in the U.S., and launch of Perceval® Plus in Europe.

Total Revenue
$182M
Previous year: $277M
-34.3%
EPS
-$0.15
Previous year: $0.7
-121.4%
Gross Profit
$115M
Previous year: $197M
-41.7%
Cash and Equivalents
$233M
Previous year: $44.5M
+422.3%
Free Cash Flow
-$28.4M
Previous year: -$24.5M
+16.1%
Total Assets
$2.5B
Previous year: $2.62B
-4.5%

LivaNova

LivaNova

LivaNova Revenue by Segment

LivaNova Revenue by Geographic Location

Forward Guidance

LivaNova expects worldwide net sales for full-year 2020 to decline between 7 and 17 percent on a constant-currency basis. Adjusted diluted earnings per share from continuing operations for 2020 are expected to be in the range of $1.15 to $1.35, which reflects an incremental impact of $0.28 due to financing activities.

Revenue & Expenses

Visualization of income flow from segment revenue to net income