LONDON–(BUSINESS WIRE)– LivaNova PLC (Nasdaq: LIVN), a market-leading medical technology company, today reported results for the quarter ended June 30, 2023 and raised full-year 2023 guidance.
Financial Summary and Highlights1
- Second-quarter revenue of $293.9 million increased 15.6% on a reported basis and increased 16.4% on a constant-currency basis, as compared to the prior-year period
- Second quarter U.S. GAAP diluted earnings per share was $0.02 and adjusted diluted earnings per share was $0.78
- Randomized 150th bipolar depression patient in RECOVER clinical study and initiated interim analyses
- Effective May 12, Stephanie Bolton named President of Global Epilepsy following 12 years of LivaNova service, most recently as President of LivaNova’s International Region
“In the second quarter, LivaNova improved profitability and delivered strong revenue growth across all regions,” said Bill Kozy, Interim Chief Executive Officer and Board Chair of LivaNova. “Our performance reflects the effectiveness of our execution in both the Cardiopulmonary and Neuromodulation businesses. I look forward to continuing to work alongside our experienced executive leadership team and colleagues with a focus on patients, performance and execution.”
Second-Quarter 2023 Results
The following table summarizes revenue for the second quarter of 2023 by segment (in millions):
| Three Months Ended June 30, |
% Change | Constant-Currency % Change2 |
|||||||||
| 2023 | 2022 | ||||||||||
| Cardiopulmonary | $150.6 | $125.8 | 19.7 | % | 20.9 | % | |||||
| Neuromodulation | 133.2 | 117.8 | 13.1 | % | 13.5 | % | |||||
| Advanced Circulatory Support | 9.4 | 9.4 | 0.7 | % | 0.7 | % | |||||
| Other | 0.7 | 1.2 | (42.5 | )% | (43.7 | )% | |||||
| Total Net Revenue | $293.9 | $254.2 | 15.6 | % | 16.4 | % | |||||
| • Numbers may not add precisely due to rounding. | |||||||||||
Cardiopulmonary revenue increased 20.9%2 versus the second quarter of 2022 with growth across all regions, driven by strong oxygenator demand and increased heart-lung machine placements.
Neuromodulation revenue increased 13.5%2 versus the second quarter of 2022. This increase was driven by growth in new and replacement implants across all regions.
Advanced Circulatory Support (ACS) revenue increased 0.7%2 compared to the second quarter of 2022.
Earnings Analysis
On a U.S. GAAP basis, second quarter 2023 operating income was $17.4 million, as compared to $31.8 million for the second quarter of 2022. Adjusted operating income for the second quarter of 2023 was $49.5 million, as compared to $33.4 million for the second quarter of 2022.
On a U.S. GAAP basis, second-quarter 2023 diluted earnings per share was $0.02, as compared to $0.30 in the second quarter of 2022. Second-quarter 2023 adjusted diluted earnings per share was $0.78, as compared to $0.53 in the second quarter of 2022.
Full-Year 2023 Guidance
LivaNova now expects revenue for full-year 2023 to grow between 8% and 10% on a constant-currency basis. Foreign currency is expected to be a 1% tailwind based on current rates.
Adjusted diluted earnings per share for 2023 are now expected to be in the range of $2.55 to $2.75, assuming a fully diluted share count of 54 million for full-year 2023. The Company now estimates that adjusted free cash flow will be in the range of $85 to $105 million.
As discussed further below, the Company is unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures but would not impact the non-GAAP measures. Accordingly, the Company is unable to reconcile the forward-looking non-GAAP financial measures included in this section to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts.
Webcast and Conference Call Instructions
The Company will host a live audiocast at 1 p.m. London time (8 a.m. Eastern Time) on Wednesday, July 26, 2023 that will be accessible at www.livanova.com/events. Listeners should register in advance and log on approximately 10 minutes early to ensure proper setup. To listen to the conference call by telephone, dial +1 833 470 1428 (if dialing from within the U.S.) or +1 929 526 1599 (if dialing from outside the U.S.). The conference call access code is 024743. Within 24 hours of the audiocast, a replay will be available at www.livanova.com/events, where it will be archived and accessible for approximately 90 days.
