Livanova Plc · NASDAQ:LIVN
Livanova — Q1 2021 Earnings Presentation
25 slides from Livanova's earnings presentation, Apr 28, 2021
Slide 1: Real patients treated with VNS Therapy
Real patients treated with VNS Therapy (Left to Right: Breanna; Candace; Jose, father of patient David) 1
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 1Q 2021 Highlights Financial Results Guidance Summary 4
Slide 5: 1Q 2021 Highlights
1Q 2021 Highlights 5
Slide 6: 1Q 2021 Highlights
1Q 2021 Highlights Meaningful execution and innovation strengthening our future Heart Failure • We achieved a key clinical milestone in our Heart Failure program with more than 300 patients enrolled in our ANTHEM- HFrEF pivotal trial. Once we follow these patients for nine months and randomize a tot
Slide 7: Financial Results
Financial Results 7
Slide 8: 1Q 2021 Financial Summary
1Q 2021 Financial Summary 1Q20 1Q21 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 measures. For recon
Slide 9: 1Q 2021 Net Sales
1Q 2021 Net Sales $247.6M (0.4)% decrease* 76% Cardiopulmonary (CP) Vagus Nerve Stimulation Therapy • Heart-lung machines (HLM) (VNS Therapy) • Oxygenators • Autotransfusion systems (ATS) • Drug-Resistant Epilepsy (DRE) • Cannulae • Difficult-to-Treat Depression (DTD) • Heart Failure (HF) • Cardiova
Slide 10: 1Q 2021 Cardiovascular Sales
1Q 2021 Cardiovascular Sales Drivers/Impacts (9.4)% Greater than 20% growth in ACS driven by the continued adoption of + LifeSPARC and an increase in procedure volumes $152.1 23.6% $143.2 HLM sales grew mid-single digits and were favorably impacted by better + than expected S5 sales in the Rest of W
Slide 11: 1Q 2021 Neuromodulation Sales
1Q 2021 Neuromodulation Sales Drivers/Impacts 14.7% Global sales increased 15% as market dynamics have improved, + especially in the U.S. U.S. sales increased 12% driven mainly by replacements. Continued + progress in the U.S. with results from our commercial initiatives trending above baseline busi
Slide 12: Adjusted Segment Operating Income and Margin
Adjusted Segment Operating Income and Margin(1) ($M) 1Q 2020 1Q 2021 $31.6 $21.0 % to Sales $36.2 1Q 2020 1Q 2021 $22.1 Cardiovascular 10.7% 9.2% Neuromodulation 24.7% 34.9% $16.3 $13.2 Total 8.7% 12.7% $(17.4) $(17.9) Neuromodulation Cardiovascular Expenses Not Allocated to Segments(2) Numbers may
Slide 13: 1Q 2021 Adjusted EPS from Continuing Operations
1Q 2021 Adjusted EPS from Continuing Operations* * Adjusted diluted EPS is a non-GAAP measure. This non-GAAP measure is reconciled to this GAAP measure in the appendix. 13
Slide 14: 2021 Guidance
14 2021 Guidance 14
Slide 15: 2021 Guidance is Unchanged
2021 Guidance is Unchanged Continued COVID-related uncertainty with more normalized sales levels returning in the second half of 2021 Guidance as of April 28, 2021 Worldwide net sales growth (1) 8% - 13% Diluted EPS (1) (2) $1.40 - $1.90 Free Cash Flow (excl. extraordinary items) (3) $30M - $50M 1 N
Slide 16: 1Q 2021 Summary
1Q 2021 Summary Despite the uncertainty, we remain cautiously optimistic in the full-year outlook • Solid 1Q sales results despite continued effect of COVID-19 in parts of the Europe and Rest of World regions Financial • Gross margin improvement driven by sales mix offset by unfavorable manufacturin
Slide 17: Positioning LivaNova to Realize its Full Value
Positioning LivaNova to Realize its Full Value Consistently deliver growth, pipeline and profitability Core Growth Focus on portfolio optimization to support leadership positions in underserved markets • Expand the go-to-market initiative for U.S. Epilepsy • Forecast at least 20% ACS growth in 2021
Slide 18: Adjusted Free Cash Flow
Adjusted Free Cash Flow Focused on strengthening adjusted FCF; continued recovery expected during the second half of the year ▪ Continue to target $30M - $50M of adjusted free cash flow for full-year 2021 Adjusted Free Cash Flow Reconciliation 1Q 2021 (U.S. dollars in millions) Net cash provided by
Slide 19: Assumptions for 2021
Assumptions for 2021 • Epilepsy surgeries expected to improve as pandemic subsides, resulting in 15-20% growth • LifeSPARC adoption expected to deliver at least 20% ACS growth in 2021 REVENUE 8% - 13% • Total Cardiovascular expected to grow in the mid-to-high single digits, which includes the impact
Slide 20: Appendix
Appendix 20 20
Slide 21: Net Sales - Comparison of Actual Results to Constant Currency
Net Sales - Comparison of Actual Results to Constant Currency - Unaudited $ in millions Three Months Ended March 31, Business / Product Line: Constant-Currency 2021 2020 % Change % Change Cardiopulmonary $108.7 $116.4 (6.6)% (10.2)% Heart Valves 21.5 25.2 (14.9)% (19.2)% Advanced Circulatory Support
Slide 22: 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 Certain Legal, Merger and Depreciation and Product Contingent Stock-based Integration Restructuring Amortization Remedia
Slide 23: 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 Certain Legal, Depreciation and Contingent Merger and Restructuring Amortization Product Remediation Consideration and S
Slide 24: Segment Non-GAAP Reconciliation - Unaudited
Segment Non-GAAP Reconciliation - Unaudited (U.S. dollars in millions) Specified Items Certain Legal, Depreciation and Product Contingent Stock-based Amortization Remediation Consideration Compensation Three Months Ended GAAP Financial Expenses Expenses and Other Costs Adjusted March 31, 2020 Result
Slide 25: 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 first-quarter 2021 press release and during the conference call held in conjuncti