Livanova Plc · NASDAQ:LIVN
Livanova — Q2 2020 Earnings Presentation
23 slides from Livanova's earnings presentation, Jul 29, 2020
Slide 1: Second Quarter 2020 Earnings Performance
Second Quarter 2020 Earnings Performance LIFE SUPPORT SIMPLIFIEDs
Slide 2: Safe Harbor
Safe Harbor Certain statements in this presentation, 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 and Section 21E of the Securities Exchange Act of 1934, as ame
Slide 3: Intellectual Property
Intellectual Property This report may contain references to our proprietary intellectual property, including among others: Trademarks for our Neuromodulation systems the VNS Therapy® System, the VITARIA® System and our proprietary pulse generator products: Model 102 (Pulse ®), Model 102R (Pulse Duo®
Slide 4: Agenda
Agenda 2Q 2020 Highlights Financial Results Guidance Summary 4
Slide 5: 2Q 2020 Highlights
2Q 2020 Highlights
Slide 6: 2Q 2020 Highlights
2Q 2020 Highlights Strengthening our future Financing • We recently entered into two financing agreements, a five-year $450M senior secured credit facility with Ares Capital Management and completed a $287.5M offering of cash exchangeable notes. The combined proceeds were used to refinance all outst
Slide 7: Financial Results
Financial Results
Slide 8: 2Q 2020 Financial Summary
2Q 2020 Financial Summary 2Q19 2Q20 (2.3)% $(0.15) Net sales Adjusted gross Adjusted SG&A* Adjusted R&D* Adjusted operating Adjusted diluted profit percent* margin* EPS* * Adjusted gross profit percent, adjusted SG&A, adjusted R&D, adjusted operating margin and adjusted diluted EPS are non-GAAP meas
Slide 9: 2Q 2020 Net Sales
2Q 2020 Net Sales Vagus Nerve Stimulation Therapy (VNS Therapy) $182.2M 81% Cardiopulmonary (CP) Drug-Resistant Epilepsy (DRE) 33.1% decrease* Heart-lung machines (HLM) Oxygenators Difficult-to-Treat Depression (DTD) Autotransfusion systems (ATS) Cannulae Heart Failure (HF) Hypoglossal Nerve Stimula
Slide 10: 2Q 2020 Cardiovascular Sales
Heart Valves 2Q 2020 Cardiovascular Sales Cardiopulmonary Advanced Circulatory Support Drivers/Impacts (26.2%) $172.2 + Oxygenator sales declined by 25%, but accelerated (27.6%) through the quarter in all regions, with the Rest of World region returning to near-normal levels in June (46.8%) $124.5 +
Slide 11: 2Q 2020 Neuromodulation Sales
2Q 2020 Neuromodulation Sales Drivers/Impacts (44.7%) + On a global basis, implants and sales experienced a gradual improvement throughout the quarter – U.S. Epilepsy sales declined by 45%, however June implants returned to 77% of prior-year levels - Sales in Europe declined by 49% - regions with a
Slide 12: 2Q 2020 Adjusted EPS from Continuing Operations
2Q 2020 Adjusted EPS from Continuing Operations* $(0.15) * A djus ted diluted E PS is a non-GAAP measure. T his non-GAAP measure is reconciled to this G AAP measure in the appendix . 12
Slide 13: 2020 Guidance
2020 Guidance 13
Slide 14: Updated Guidance from Continuing Operations
Updated Guidance from Continuing Operations Focused on execution, cash generation and cost containment Guidance as of Guidance as of Guidance as of February 26, 2020 April 29, 2020 July 29, 2020 Worldwide net sales growth (1) 3% - 5% (17%) - (7%) (17%) - (7%) Gross profit percent (1) 70% - 71% 66% -
Slide 15: Summary
Summary 15
Slide 16: 2Q 2020 Summary
2Q 2020 Summary • 33% sales decline related to COVID-19 - all impacted businesses experienced sequential improvement throughout the quarter FINANCIAL • Gross margin decline from mix of lower Neuromodulation sales and unfavorable manufacturing variances related to COVID-19 • Executed cost control mea
Slide 17: Assumptions for 2020
Assumptions for 2020 • COVID-19 to have a pronounced impact on sales for the full year 7%-17% REVENUE • U.S. Epilepsy surgeries expected to see the largest decline in 2Q, improving in 2H Decline • LifeSPARC commercialization expected to deliver at least 30% ACS growth in 2020 • Cost containment plan
Slide 18: Appendix
Appendix 18
Slide 19: Net Sales - Comparison of Actual Results to Constant Currency
Net Sales - Comparison of Actual Results to Constant Currency - Unaudited $ in millions Three Months Ended June 30, Constant- % Change Currency Business / Product Line: 2020 2019 % Change Cardiopulmonary $101.1 $130.6 (22.6 %) (20.8 %) Heart Valves 17.5 33.4 (47.6 %) (46.8 %) Advanced Circulatory Su
Slide 20: GAAP to Non-GAAP Reconciliations - Unaudited
GAAP to Non-GAAP Reconciliations - Unaudited RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED (U.S. dollars in millions, except per share amounts) Specified Items Non-recurring Merger and Depreciation and Product Legal and Stock-based Certain GAAP Integration Restructuring Amortizat
Slide 21: GAAP to Non-GAAP Reconciliations - Unaudited
GAAP to Non-GAAP Reconciliations - Unaudited RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED (U.S. dollars in millions, except per share amounts) Specified Items Non-recurring Legal and Depreciation Contingent Merger and and Product Consideration Stock-based Certain GAAP Integratio
Slide 22: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations The preceding tables reconcile the most comparable U.S. Generally Accepted Accounting Principles (GAAP) measures to the non-GAAP financial and operating measures presented in LivaNova’s second-quarter 2020 press release and during the conference call held in conjunct
Slide 23: www.livanova.com
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