LivaNova PLC (Nasdaq: LIVN), a market-leading medical technology and innovation company, today reported results for the quarter ended March 31, 2023 and raised full-year 2023 guidance.
Financial Summary and Highlights1
- First-quarter revenue of $263.4 million increased 9.7 percent on a reported basis and increased 12.7 percent on a constant-currency basis, as compared to the prior-year period
- First-quarter U.S. GAAP diluted earnings per share was $0.14 and adjusted diluted earnings per share was $0.43
- Received U.S. FDA 510(k) clearance for Essenz™, the Company’s next-generation heart-lung machine
- Randomized 500th unipolar depression patient in RECOVER clinical study
- Bill Kozy, Chair of the Board of Directors, appointed Interim Chief Executive Officer following Damien McDonald’s resignation
“During the first quarter, LivaNova delivered solid revenue growth,” said Kozy. “Additionally, the Company achieved important product and clinical milestones, including U.S. FDA 510(k) clearance for Essenz and randomization of the 500th unipolar patient in the RECOVER clinical study. We look forward to building on this progress. I am engaging with our experienced executive leadership team as we maintain focus on executing on our core growth drivers, delivering on our clinical and product pipeline opportunities, and generating cash.”
First-Quarter 2023 Results
The following table summarizes revenue for the first quarter of 2023 by segment (in millions):
| Three Months EndedMarch 31, | % Change | Constant-Currency% Change | ||||||||
| 2023 | 2022 | |||||||||
| Cardiopulmonary | $132.1 | $117.1 | 12.8 | % | 17.5 | % | ||||
| Neuromodulation | 120.7 | 110.2 | 9.5 | % | 11.1 | % | ||||
| Advanced Circulatory Support | 9.8 | 11.7 | (15.8 | )% | (15.7 | )% | ||||
| Other | 0.8 | 1.2 | (34.4 | )% | (31.3 | )% | ||||
| Total Net Revenue | $263.4 | $240.2 | 9.7 | % | 12.7 | % | ||||
| Note: Constant-currency percent change excludes the impact from fluctuations in the various currencies in which the Company operates as compared to reported percent change. Constant-currency percent change is a non-GAAP metric. For an explanation of this and other non-GAAP metrics used in this release, see the section entitled “Use of Non-GAAP Financial Measures.”Numbers may not add precisely due to rounding. | ||||||||||
Cardiopulmonary revenue increased 17.5 percent2 versus the first quarter of 2022 driven by the Rest of World and Europe regions. This growth was primarily driven by oxygenator revenue across all regions and strength in heart-lung machine placements in the Rest of World and Europe regions.
Neuromodulation revenue increased 11.1 percent2 versus the first quarter of 2022 with growth across all regions. This increase was driven by growth in both new and replacement implants.
Advanced Circulatory Support (ACS) revenue decreased 15.7 percent2 compared to the first quarter of 2022 primarily due to a reduction in patients treated with extracorporeal membrane oxygenation (ECMO) as a result of fewer severe COVID cases and product mix, partially offset by growth in non-COVID cases.
Financial Performance
On a U.S. GAAP basis, first-quarter 2023 operating loss was $2.3 million, as compared to operating income of $9.5 million for the first quarter of 2022. Adjusted operating income for the first quarter of 2023 was $26.8 million, as compared to $28.4 million for the first quarter of 2022.
On a U.S. GAAP basis, first-quarter 2023 diluted earnings per share was $0.14, as compared to $0.06 in the first quarter of 2022. First-quarter 2023 adjusted diluted earnings per share was $0.43, as compared to $0.48 in the first quarter of 2022.
Full-Year 2023 Guidance
LivaNova now expects revenue for full-year 2023 to grow between 4 and 6 percent on a constant-currency basis. Foreign currency is expected to be a 1 percent tailwind.
Adjusted diluted earnings per share for 2023 are now expected to be in the range of $2.50 to $2.70, assuming a fully diluted share count of 54 million for full-year 2023. The Company continues to estimate that adjusted free cash flow will be in the range of $80 to $100 million.
Source: https://www.businesswire.com/
