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Dec 31, 2019

LivaNova Q4 2019 Earnings Report

LivaNova's financial performance decreased due to supplier issues and execution challenges.

Key Takeaways

LivaNova PLC reported a decrease in worldwide sales by 3.2 percent and a GAAP diluted loss per share of $2.96 for Q4 2019. The adjusted diluted earnings per share were $1.00. The company faced challenges due to a component supplier issue for oxygenators and execution problems in the Rest of World region.

Worldwide sales decreased by 3.2 percent on a reported basis.

GAAP diluted loss per share from continuing operations was $2.96.

Adjusted diluted earnings per share from continuing operations were $1.00.

Strong sales in Advanced Circulatory Support (ACS) and stability in the Epilepsy business were noted.

Total Revenue
$288M
Previous year: $297M
-3.2%
EPS
$1
Previous year: $1.12
-10.7%
Adjusted SG&A
$108M
Adjusted R&D
$37.6M
Adjusted operating income
$55.3M
Gross Profit
$724M
Previous year: $204M
+254.7%
Cash and Equivalents
$61.1M
Previous year: $47.2M
+29.5%
Free Cash Flow
-$5.02M
Previous year: $7.99M
-162.9%
Total Assets
$2.41B
Previous year: $2.55B
-5.4%

LivaNova

LivaNova

LivaNova Revenue by Segment

LivaNova Revenue by Geographic Location

Forward Guidance

LivaNova anticipates sales growth between 3 and 5 percent on a constant-currency basis and adjusted diluted earnings per share in the range of $3.10 to $3.30 for full-year 2020. Adjusted cash flow from operations, excluding litigation payments, is projected to be $180 to $200 million, with capital expenditures ranging from $25 to $35 million.

Positive Outlook

  • Expects worldwide net sales from continuing operations for full-year 2020 to grow between 3 and 5 percent on a constant-currency basis.
  • Adjusted diluted earnings per share from continuing operations for 2020 are expected to be in the range of $3.10 to $3.30.
  • Adjusted cash flow from operations, excluding litigation payments, will be in the range of $180 to $200 million.
  • Capital expenditures are projected to range between $25 to $35 million.
  • Focused on delivering higher sales growth, expanding gross margins and improving cash generation.

Revenue & Expenses

Visualization of income flow from segment revenue to net income