IRVINE, Calif., July 28,
2015 /PRNewswire/ -- Edwards Lifesciences Corporation (NYSE:
EW), the global leader in the science of heart valves and
hemodynamic monitoring, today reported net income for the quarter
ended June 30, 2015 of $112.7
million, or $1.02 per diluted
share. Adjusted net income on a non-GAAP basis was
$124.4 million, or $1.13 per diluted share, compared to $0.88 per diluted share in the prior year period.
In the year ago period, GAAP net income was $5.09 per diluted share, which included a
$750 million payment to Edwards from
a litigation settlement.
Net sales for the quarter ended June 30, 2015 were
$616.8 million. U.S. and
international segment sales for the second quarter were
$302.7 million and $314.1 million, respectively. The strengthening
of the U.S. dollar continued to have a significant negative impact
on reported sales. On an underlying1 basis, sales
grew 17.7 percent.
"Strong performance this quarter was boosted by growing global
TAVR therapy adoption, with our transcatheter heart valves posting
impressive growth," said Michael A.
Mussallem, chairman and CEO. "We are now underway with
the U.S. launch of our most advanced SAPIEN 3 transcatheter heart
valve, which has demonstrated improved outcomes for patients
suffering from severe, symptomatic aortic stenosis."
Sales Results
For the second quarter, the company reported Transcatheter Heart
Valve Therapy (THV) sales of $281.4
million, a 28.1 percent growth rate over the second quarter
last year, or 42.2 percent on an underlying basis.
Significant procedure growth resulted in strong sales of the
company's innovative, market-leading products in both the U.S. and
internationally. Globally, average selling prices remained
stable.
In the U.S., THV sales for the quarter, including royalties,
were $143.7 million. On an underlying
basis, sales were $148.7 million and
grew 62.3 percent compared to the prior year period. Outside the
U.S., THV sales were $137.7 million,
representing 2.7 percent growth, or 25.4 percent on an underlying
basis.
"We are very encouraged by the strength of the clinical outcomes
and we are confident that global TAVR therapy adoption will remain
robust," said Mussallem. "With the early U.S. approval of SAPIEN 3,
we now expect our underlying sales growth in 2015 to be in the 25
to 35 percent range."
Surgical Heart Valve Therapy product group sales for the quarter
were $204.0 million. Reported sales
decreased 4.6 percent compared to the second quarter last year, and
increased 3.5 percent on an underlying basis. Growth was driven by
global surgical heart valve units, partially offset by the ongoing
exit of previously announced non-strategic products.
Critical Care product group sales were $131.4 million for the quarter, representing a
decrease of 7.1 percent versus last year, or an increase of 1.3
percent on an underlying basis.
Additional Operating Results
For the quarter, the company's gross profit margin was 74.3
percent, compared to 73.7 percent in the same period last year.
Excluding an inventory write-off related to the launch of SAPIEN 3,
this quarter's rate would have been approximately two percentage
points higher. The year over year increase was driven by the
positive impact from foreign exchange contracts and a favorable
product mix, offset by multiple investments in operations. If
foreign exchange rates remain at current levels, the company now
expects its full year gross profit rate to be between 76 and 77
percent, excluding special items. Assuming current rates, as
foreign exchange positions expire, the company expects to lose the
significant positive contribution to gross profit in 2016.
Selling, general and administrative expenses decreased to
$213.9 million for the quarter, or
34.7 percent of sales. This decrease was driven by the
favorable foreign exchange impact on expenses outside the U.S.
Research and development investments for the quarter increased
to $97.5 million compared to
$89.1 million in the prior year
period. This increase was primarily a result of continued
investments in the company's aortic and mitral valve programs.
Cash flow from operating activities for the quarter was
$170.1 million. After capital
spending of $18.4 million, free cash
flow was $151.7 million.
Cash, cash equivalents and short-term investments totaled
$1.4 billion at June 30,
2015. Total debt was $600.3
million.
Six-Month Results
For the six months ended June 30, 2015, the company
recorded net income of $236.1
million, or $2.14 per diluted
share, compared to $607.3 million, or
$5.63 per diluted share, for the same
period in 2014. Net income declined for the six months by
61.1 percent, or increased 40.9 percent, excluding special items.
And, diluted earnings per share decreased 62.0 percent over last
year, or increased 38.0 percent, excluding special items.
Net sales for the first six months of 2015 grew 10.0 percent to
$1.2 billion. On an underlying
basis, sales grew 19.4 percent.
U.S. and international segment sales for the first six months of
2015 were $586.2 million and
$620.9 million, respectively.
During the first six months of 2015, the company repurchased
approximately 1.3 million shares of common stock for $179.9 million.
Outlook
The company continues to expect full year 2015 total sales to be
between $2.3 billion to $2.5
billion. The company is increasing its guidance for
full year 2015 diluted earnings per share, excluding special items,
to a range of $4.30 to $4.40, from
its previous range of $4.10 to
$4.30. For the third quarter of 2015, at current
foreign exchange rates, the company projects total sales to be
between $580 million and $620
million, and diluted earnings per share, excluding special
items, to be between $0.92 and
$1.00.
"Our strong year-to-date momentum reinforces our leadership
position and places us on a path to exceed our earlier financial
expectations as greater numbers of patients are served by
transcatheter therapies," said Mussallem. "And, we believe we are
poised for continued growth as we remain committed to our strategy
of transforming patient care with innovative technologies."
About Edwards Lifesciences
Edwards Lifesciences is the global leader in the science of
heart valves and hemodynamic monitoring. Driven by a passion
to help patients, the company partners with clinicians to develop
innovative technologies in the areas of structural heart disease
and critical care monitoring, enabling them to save and enhance
lives. Additional company information can be found at
www.edwards.com.
Conference Call and Webcast Information
Edwards Lifesciences will be hosting a conference call today at
2:00 p.m. PT to discuss its second quarter results. To
participate in the conference call, dial (877) 407-8037 or (201)
689-8037. For 72 hours following the call, an audio replay
can be accessed by dialing (877) 660-6853 or (201) 612-7415 and
using conference number 13613570. The call will also be
available via live or archived webcast on the "Investor Relations"
section of the Edwards web site at ir.edwards.com or
www.edwards.com. A live stream and archived replay can also be
accessed via mobile devices by downloading Edwards' IR App for
iPhone and iPad or Android.
This news release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. These
forward-looking statements can sometimes be identified by the use
of words such as "may," "will," "should," "anticipate," "believe,"
"plan," "project," "estimate," "expect," "intend," "guidance,"
"outlook," "optimistic," "aspire," "confident" or other forms
of these words or similar expressions and include, but are not
limited to, statements made by Mr. Mussallem, information in the
Outlook section and the company's financial guidance.
Forward-looking statements are based on estimates and assumptions
made by management of the company and are believed to be
reasonable, though they are inherently uncertain and difficult to
predict. Our forward-looking statements speak only as of the
date on which they are made and we do not undertake any obligation
to update any forward-looking statement to reflect events or
circumstances after the date of the statement. If the company
does update or correct one or more of these statements, investors
and others should not conclude that the company will make
additional updates or corrections.
Forward-looking statements involve risks and uncertainties that
could cause actual results or experience to differ materially from
that expressed or implied by the forward-looking statements.
Factors that could cause actual results or experience to differ
materially from that expressed or implied by the forward-looking
statements include uncertainties associated with the timing and
effectiveness of new product launches; competitive dynamics,
particularly in the TAVR segment; the timing and extent of
regulatory approvals and reimbursement levels for our products; the
company's success in developing new products, and avoiding
manufacturing and quality issues; the impact of currency exchange
rates and related currency hedge contracts; the timing or results
of pending or future clinical trials; actions by the U.S. Food and
Drug Administration and other regulatory agencies; unexpected
litigation results or expenses; and other risks detailed in the
company's filings with the Securities and Exchange Commission,
including its Annual Report on Form 10-K for the year ended
December 31, 2014. These filings, along with important safety
information about our products, may be found at edwards.com.
Edwards, Edwards Lifesciences, the stylized E logo, Edwards
SAPIEN, SAPIEN and SAPIEN 3 are trademarks of Edwards Lifesciences
Corporation. All other trademarks are the property of their
respective owners.
[1] "Underlying" amounts are non-GAAP items and in this press
release exclude foreign exchange fluctuations and the THV sales
return reserve. See the Non-GAAP Financial Information page and
reconciliation tables below.
EDWARDS
LIFESCIENCES CORPORATION
Unaudited
Consolidated Statements of Operations
(in millions, except
per share data)
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net sales
|
$
|
616.8
|
|
|
$
|
575.1
|
|
|
$
|
1,207.1
|
|
|
$
|
1,097.5
|
|
Cost of
sales
|
158.6
|
|
|
151.2
|
|
|
294.6
|
|
|
297.1
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
458.2
|
|
|
423.9
|
|
|
912.5
|
|
|
800.4
|
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative expenses
|
213.9
|
|
|
215.5
|
|
|
416.4
|
|
|
412.7
|
|
Research and
development expenses
|
97.5
|
|
|
89.1
|
|
|
183.9
|
|
|
174.9
|
|
Intellectual property
litigation expenses (income), net
|
1.0
|
|
|
(747.4)
|
|
|
1.3
|
|
|
(741.9)
|
|
Special
charges
|
—
|
|
|
50.0
|
|
|
—
|
|
|
57.5
|
|
Interest expense,
net
|
1.8
|
|
|
3.1
|
|
|
4.2
|
|
|
6.6
|
|
Other expense,
net
|
1.8
|
|
|
0.4
|
|
|
2.0
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
Income before
provision for income taxes
|
142.2
|
|
|
813.2
|
|
|
304.7
|
|
|
890.5
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
29.5
|
|
|
266.2
|
|
|
68.6
|
|
|
283.2
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
112.7
|
|
|
$
|
547.0
|
|
|
$
|
236.1
|
|
|
$
|
607.3
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
1.05
|
|
|
$
|
5.18
|
|
|
$
|
2.19
|
|
|
$
|
5.72
|
|
Diluted
|
$
|
1.02
|
|
|
$
|
5.09
|
|
|
$
|
2.14
|
|
|
$
|
5.63
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
107.6
|
|
|
105.6
|
|
|
107.7
|
|
|
106.1
|
|
Diluted
|
110.0
|
|
|
107.4
|
|
|
110.1
|
|
|
107.9
|
|
|
|
|
|
|
|
|
|
Operating
Statistics
|
|
|
|
|
|
|
|
As a percentage of
net sales:
|
|
|
|
|
|
|
|
Gross
profit
|
74.3
|
%
|
|
73.7
|
%
|
|
75.6
|
%
|
|
72.9
|
%
|
Selling, general, and
administrative expenses
|
34.7
|
%
|
|
37.5
|
%
|
|
34.5
|
%
|
|
37.6
|
%
|
Research and
development expenses
|
15.8
|
%
|
|
15.5
|
%
|
|
15.2
|
%
|
|
15.9
|
%
|
Income before
provision for income taxes
|
23.1
|
%
|
|
141.4
|
%
|
|
25.2
|
%
|
|
81.1
|
%
|
Net income
|
18.3
|
%
|
|
95.1
|
%
|
|
19.6
|
%
|
|
55.3
|
%
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
20.7
|
%
|
|
32.7
|
%
|
|
22.5
|
%
|
|
31.8
|
%
|
Note: Numbers may not calculate due to rounding.
EDWARDS
LIFESCIENCES CORPORATION
Unaudited Balance
Sheets
(in
millions)
|
|
June 30,
2015
|
|
December 31,
2014
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
597.6
|
|
|
$
|
653.8
|
|
Short-term
investments
|
811.4
|
|
|
785.0
|
|
Accounts and other
receivables, net
|
351.0
|
|
|
325.0
|
|
Inventories,
net
|
313.3
|
|
|
296.8
|
|
Deferred income
taxes
|
65.2
|
|
|
63.5
|
|
Prepaid
expenses
|
46.1
|
|
|
48.8
|
|
Other current
assets
|
112.4
|
|
|
121.7
|
|
Total current
assets
|
2,297.0
|
|
|
2,294.6
|
|
|
|
|
|
Long-term accounts
receivable, net
|
6.6
|
|
|
5.8
|
|
Long-term
investments
|
324.6
|
|
|
240.9
|
|
Property, plant, and
equipment, net
|
450.6
|
|
|
442.9
|
|
Goodwill
|
370.9
|
|
|
376.0
|
|
Other intangible
assets, net
|
18.9
|
|
|
23.4
|
|
Deferred income
taxes
|
82.0
|
|
|
91.5
|
|
Other
assets
|
57.7
|
|
|
49.2
|
|
|
|
|
|
Total
assets
|
$
|
3,608.3
|
|
|
$
|
3,524.3
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
445.2
|
|
|
$
|
434.4
|
|
|
|
|
|
Long-term
debt
|
600.3
|
|
|
598.1
|
|
Other long-term
liabilities
|
274.2
|
|
|
300.4
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
Common
stock
|
129.9
|
|
|
128.9
|
|
Additional paid-in
capital
|
964.1
|
|
|
878.4
|
|
Retained
earnings
|
3,078.0
|
|
|
2,841.9
|
|
Accumulated other
comprehensive loss
|
(146.6)
|
|
|
(100.9)
|
|
Treasury stock, at
cost
|
(1,736.8)
|
|
|
(1,556.9)
|
|
Total stockholders'
equity
|
2,288.6
|
|
|
2,191.4
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
3,608.3
|
|
|
$
|
3,524.3
|
|
EDWARDS LIFESCIENCES CORPORATION
Non-GAAP Financial Information
To supplement the consolidated financial results prepared in
accordance with Generally Accepted Accounting Principles ("GAAP"),
the Company uses non-GAAP historical financial measures. The
Company uses the term "underlying" when referring to non-GAAP sales
information, which excludes foreign exchange fluctuations,
adjustments for discontinued and acquired products, and sales
return reserves associated with transcatheter heart valve therapy
("THV") product upgrades, and "excluding special items" to also
exclude gains and losses from special items such as significant
investments, impairments, litigation, and business development
transactions. Guidance for sales and sales growth rates is
provided on an "underlying basis," and projections for diluted
earnings per share, net income and growth, gross profit margin,
taxes, and free cash flow are also provided on the same non-GAAP
(or "excluding special items") basis due to the inherent difficulty
in forecasting such items. The Company is not able to provide
a reconciliation of these non-GAAP items to expected reported
results due to the unknown effect, timing, and potential
significance of special charges or gains, and management's
inability to forecast charges associated with future transactions
and initiatives. Management does not consider the excluded items or
adjustments as part of day-to-day business or reflective of the
core operational activities of the Company as they result from
transactions outside the ordinary course of business.
Management uses non-GAAP financial measures internally for
strategic decision making, forecasting future results, and
evaluating current performance. These non-GAAP financial
measures are used in addition to and in conjunction with results
presented in accordance with GAAP and reflect an additional way of
viewing aspects of the Company's core operations that, when viewed
with its GAAP results, provide a more complete understanding of
factors and trends affecting the Company's business. Non-GAAP
financial measures are not prepared in accordance with GAAP;
therefore, the information is not necessarily comparable to other
companies and should be considered as a supplement to, and not as a
substitute for, or superior to, the corresponding measures
calculated in accordance with GAAP. A reconciliation of
non-GAAP historical financial measures to the most comparable GAAP
measure is provided in the tables below.
The items described below are adjustments to the GAAP
financial results in the reconciliations that follow:
THV Sales Return Reserve and Related Costs - In the first
and second quarters of 2014, and in the second quarter of 2015, the
Company recorded a net sales return reserve and related costs,
primarily related to inventory reserves, of $15.6 million, $6.1
million, and $15.9 million,
respectively, related to estimated THV product returns expected
upon introduction of next-generation THV products.
Intellectual Property Litigation Expenses (Income), net -
The Company incurred intellectual property litigation expenses of
$0.3 million and $5.5 million in the first quarter of 2015 and
2014, respectively, and $1.0 million
and $2.6 million in the second
quarter of 2015 and 2014, respectively. In addition, in
the second quarter of 2014, the Company recorded a $750.0 million gain related to an agreement with
Medtronic to settle all outstanding patent litigation.
Special Charges - The Company recorded a $7.5 million charge in the first quarter of 2014
to settle past and future obligations related to one of its
intellectual property agreements. The Company recorded a
$50.0 million charge in the second
quarter of 2014 for a charitable contribution to the Edwards
Lifesciences Foundation.
Foreign Exchange - Fluctuations in exchange rates impact
the comparative results and sales growth rates of the Company's
underlying business. Management believes that excluding the impact
of foreign exchange rate fluctuations from its sales growth
provides investors a more meaningful comparison to historical
financial results. The impact of foreign exchange rate fluctuations
has been detailed in the "Reconciliation of Sales by Product Group
and Region."
EDWARDS
LIFESCIENCES CORPORATION
Unaudited
Reconciliation of GAAP to Non-GAAP Financial
Information
RECONCILIATION OF
GAAP TO NON-GAAP NET INCOME
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
(in millions, except per share data)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
GAAP Net
Income
|
|
$
|
112.7
|
|
|
$
|
547.0
|
|
|
$
|
236.1
|
|
|
$
|
607.3
|
|
Growth Rate
%
|
|
(79.4)
|
%
|
|
|
|
(61.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments:
(A)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THV sales return
reserve and related costs
|
|
15.9
|
|
|
6.1
|
|
|
15.9
|
|
|
21.7
|
|
Intellectual property
litigation expenses (income), net
|
|
1.0
|
|
|
(747.4)
|
|
|
1.3
|
|
|
(741.9)
|
|
Special
charges
|
|
—
|
|
|
50.0
|
|
|
—
|
|
|
57.5
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
|
|
|
|
|
|
Tax effect on
reconciling items (B)
|
|
(5.2)
|
|
|
244.5
|
|
|
(5.2)
|
|
|
237.7
|
|
Remeasurement of
uncertain tax position reserve (A)
|
|
—
|
|
|
(6.2)
|
|
|
—
|
|
|
(6.2)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net
Income
|
|
$
|
124.4
|
|
|
$
|
94.0
|
|
|
$
|
248.1
|
|
|
$
|
176.1
|
|
Growth Rate
%
|
|
32.3
|
%
|
|
|
|
40.9
|
%
|
|
|
|
RECONCILIATION OF
GAAP TO NON-GAAP DILUTED EARNINGS PER SHARE
|
GAAP Diluted
Earnings Per Share
|
|
$
|
1.02
|
|
|
$
|
5.09
|
|
|
$
|
2.14
|
|
|
$
|
5.63
|
|
Growth Rate
%
|
|
(80.0)
|
%
|
|
|
|
(62.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments:
(A), (C)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THV sales return
reserve and related costs
|
|
0.10
|
|
|
0.03
|
|
|
0.10
|
|
|
0.14
|
|
Intellectual property
litigation expenses (income), net
|
|
0.01
|
|
|
(4.51)
|
|
|
0.01
|
|
|
(4.47)
|
|
Special
charges
|
|
—
|
|
|
0.33
|
|
|
—
|
|
|
0.39
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
|
|
|
|
|
|
Remeasurement of
uncertain tax position reserve
|
|
—
|
|
|
(0.06)
|
|
|
—
|
|
|
(0.06)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Diluted
Earnings Per Share
|
|
$
|
1.13
|
|
|
$
|
0.88
|
|
|
$
|
2.25
|
|
|
$
|
1.63
|
|
Growth Rate
%
|
|
28.4
|
%
|
|
|
|
38.0
|
%
|
|
|
|
|
Note: Numbers may not
calculate due to rounding.
|
(A)
|
See description of
"THV Sales Return Reserve and Related Costs," "Intellectual
Property Litigation Expenses (Income), net," and "Special Charges"
on the Non-GAAP Financial Information page.
|
(B)
|
The tax effect
on non-GAAP adjustments is calculated based upon the impact of the
relevant tax jurisdictions' statutory tax rates on the Company's
estimated annual effective tax rate, or discrete rate in the
quarter, as applicable.
|
(C)
|
All amounts
are tax effected, calculated based upon the impact of the relevant
tax jurisdictions' statutory tax rates on the Company's estimated
annual effective tax rate, or discrete rate in the quarter, as
applicable.
|
EDWARDS
LIFESCIENCES CORPORATION
Unaudited
Reconciliation of GAAP to Non-GAAP Financial
Information
THV UNITED STATES
UNDERLYING SALES GROWTH
|
|
|
Three Months
Ended
June 30,
|
(in millions)
|
|
2015
|
|
2014
|
GAAP THV United
States Sales
|
|
$
|
143.7
|
|
|
$
|
85.7
|
|
Adjustment for THV
sales return reserve
|
|
5.0
|
|
|
5.9
|
|
THV United States
Underlying Sales
|
|
$
|
148.7
|
|
|
$
|
91.6
|
|
Underlying Growth
Rate %
|
|
62.3
|
%
|
|
|
THV OUTSIDE THE
UNITED STATES UNDERLYING SALES GROWTH
|
|
|
Three Months
Ended
June 30,
|
(in millions)
|
|
2015
|
|
2014
|
GAAP THV Outside
the United States Sales
|
|
$
|
137.7
|
|
|
$
|
134.0
|
|
Adjustment for THV
sales return reserve
|
|
—
|
|
|
(3.9)
|
|
Foreign exchange
impact
|
|
—
|
|
|
(20.3)
|
|
THV Outside the
United States Underlying Sales
|
|
$
|
137.7
|
|
|
$
|
109.8
|
|
Underlying Growth
Rate %
|
|
25.4
|
%
|
|
|
EDWARDS
LIFESCIENCES CORPORATION
Unaudited
Reconciliation of GAAP to Non-GAAP Financial
Information
($ in
millions)
RECONCILIATION OF
SALES BY PRODUCT GROUP AND REGION
|
|
|
|
2015 Adjusted
|
|
2014 Adjusted
|
|
|
Sales by Product Group (QTD)
|
|
2Q 2015
|
|
2Q 2014
|
|
Change
|
|
GAAP
Growth
Rate*
|
|
Sales Return
Reserve
|
|
2Q 2015
Underlying
Sales
|
|
Sales Return
Reserve
|
|
FX Impact
|
|
2Q 2014
Underlying
Sales
|
|
Underlying
Growth
Rate *
|
Transcatheter
Heart Valve Therapy
|
|
$
|
281.4
|
|
|
$
|
219.7
|
|
|
$
|
61.7
|
|
|
28.1
|
%
|
|
$
|
5.0
|
|
|
$
|
286.4
|
|
|
$
|
2.0
|
|
|
$
|
(20.3)
|
|
|
$
|
201.4
|
|
|
42.2
|
%
|
Surgical Heart
Valve Therapy
|
|
204.0
|
|
|
214.0
|
|
|
(10.0)
|
|
|
(4.6)%
|
|
|
—
|
|
|
204.0
|
|
|
—
|
|
|
(17.0)
|
|
|
197.0
|
|
|
3.5
|
%
|
Critical
Care
|
|
131.4
|
|
|
141.4
|
|
|
(10.0)
|
|
|
(7.1)%
|
|
|
—
|
|
|
131.4
|
|
|
—
|
|
|
(11.7)
|
|
|
129.7
|
|
|
1.3
|
%
|
Total
Sales
|
|
$
|
616.8
|
|
|
$
|
575.1
|
|
|
$
|
41.7
|
|
|
7.3
|
%
|
|
$
|
5.0
|
|
|
$
|
621.8
|
|
|
$
|
2.0
|
|
|
$
|
(49.0)
|
|
|
$
|
528.1
|
|
|
17.7
|
%
|
|
|
|
|
|
|
|
|
|
|
2015 Adjusted
|
|
2014 Adjusted
|
|
|
Sales by Product Group (YTD)
|
|
YTD
2Q 2015
|
|
YTD
2Q 2014
|
|
Change
|
|
GAAP
Growth
Rate*
|
|
Sales Return
Reserve
|
|
2Q 2015
Underlying
Sales
|
|
Sales Return
Reserve
|
|
FX Impact
|
|
YTD
2Q 2014
Underlying
Sales
|
|
Underlying
Growth
Rate *
|
Transcatheter
Heart Valve Therapy
|
|
$
|
549.9
|
|
|
$
|
408.9
|
|
|
$
|
141.0
|
|
|
34.5
|
%
|
|
$
|
5.0
|
|
|
$
|
554.9
|
|
|
$
|
8.1
|
|
|
$
|
(37.5)
|
|
|
$
|
379.5
|
|
|
46.2
|
%
|
Surgical Heart
Valve Therapy
|
|
400.9
|
|
|
416.6
|
|
|
(15.7)
|
|
|
(3.8)%
|
|
|
—
|
|
|
400.9
|
|
|
—
|
|
|
(31.7)
|
|
|
384.9
|
|
|
4.1
|
%
|
Critical
Care
|
|
256.3
|
|
|
272.0
|
|
|
(15.7)
|
|
|
(5.8)%
|
|
|
—
|
|
|
256.3
|
|
|
—
|
|
|
(21.1)
|
|
|
250.9
|
|
|
2.1
|
%
|
Total
Sales
|
|
$
|
1,207.1
|
|
|
$
|
1,097.5
|
|
|
$
|
109.6
|
|
|
10.0
|
%
|
|
$
|
5.0
|
|
|
$
|
1,212.1
|
|
|
$
|
8.1
|
|
|
$
|
(90.3)
|
|
|
$
|
1,015.3
|
|
|
19.4
|
%
|
|
|
|
|
|
|
|
|
|
|
2015 Adjusted
|
|
2014 Adjusted
|
|
|
Sales by Region (QTD)
|
|
2Q 2015
|
|
2Q 2014
|
|
Change
|
|
GAAP
Growth Rate*
|
|
Sales Return
Reserve
|
|
2Q 2015
Underlying
Sales
|
|
Sales Return
Reserve
|
|
FX Impact
|
|
2Q 2014
Underlying
Sales
|
|
Underlying
Growth
Rate *
|
United
States
|
|
$
|
302.7
|
|
|
$
|
242.0
|
|
|
$
|
60.7
|
|
|
25.1
|
%
|
|
$
|
5.0
|
|
|
$
|
307.7
|
|
|
$
|
5.9
|
|
|
$
|
—
|
|
|
$
|
247.9
|
|
|
24.2
|
%
|
Europe
|
|
181.9
|
|
|
193.8
|
|
|
(11.9)
|
|
|
(6.1)%
|
|
|
—
|
|
|
181.9
|
|
|
(3.9)
|
|
|
(33.1)
|
|
|
156.8
|
|
|
16.0
|
%
|
Japan
|
|
62.3
|
|
|
66.7
|
|
|
(4.4)
|
|
|
(6.7)%
|
|
|
—
|
|
|
62.3
|
|
|
—
|
|
|
(10.2)
|
|
|
56.5
|
|
|
10.2
|
%
|
Rest of
World
|
|
69.9
|
|
|
72.6
|
|
|
(2.7)
|
|
|
(3.8)%
|
|
|
—
|
|
|
69.9
|
|
|
—
|
|
|
(5.7)
|
|
|
66.9
|
|
|
4.5
|
%
|
International
|
|
314.1
|
|
|
333.1
|
|
|
(19.0)
|
|
|
(5.7)%
|
|
|
—
|
|
|
314.1
|
|
|
(3.9)
|
|
|
(49.0)
|
|
|
280.2
|
|
|
12.9
|
%
|
Total
|
|
$
|
616.8
|
|
|
$
|
575.1
|
|
|
$
|
41.7
|
|
|
7.3
|
%
|
|
$
|
5.0
|
|
|
$
|
621.8
|
|
|
$
|
2.0
|
|
|
$
|
(49.0)
|
|
|
$
|
528.1
|
|
|
17.7
|
%
|
|
|
|
|
|
|
|
|
|
|
2015 Adjusted
|
|
2014 Adjusted
|
|
|
Sales by Region (YTD)
|
|
YTD
2Q 2015
|
|
YTD
2Q 2014
|
|
Change
|
|
GAAP
Growth Rate*
|
|
Sales Return
Reserve
|
|
2Q 2015
Underlying
Sales
|
|
Sales Return
Reserve
|
|
FX Impact
|
|
YTD
2Q 2014
Underlying
Sales
|
|
Underlying
Growth
Rate *
|
United
States
|
|
$
|
586.2
|
|
|
$
|
464.4
|
|
|
$
|
121.8
|
|
|
26.2
|
%
|
|
$
|
5.0
|
|
|
$
|
591.2
|
|
|
$
|
13.0
|
|
|
$
|
—
|
|
|
$
|
477.4
|
|
|
23.8
|
%
|
Europe
|
|
367.2
|
|
|
374.1
|
|
|
(6.9)
|
|
|
(1.8)%
|
|
|
—
|
|
|
367.2
|
|
|
(4.9)
|
|
|
(63.0)
|
|
|
306.2
|
|
|
19.9
|
%
|
Japan
|
|
120.4
|
|
|
125.4
|
|
|
(5.0)
|
|
|
(4.0)%
|
|
|
—
|
|
|
120.4
|
|
|
—
|
|
|
(18.0)
|
|
|
107.4
|
|
|
12.1
|
%
|
Rest of
World
|
|
133.3
|
|
|
133.6
|
|
|
(0.3)
|
|
|
(0.3)%
|
|
|
—
|
|
|
133.3
|
|
|
—
|
|
|
(9.3)
|
|
|
124.3
|
|
|
7.2
|
%
|
International
|
|
620.9
|
|
|
633.1
|
|
|
(12.2)
|
|
|
(1.9)%
|
|
|
—
|
|
|
620.9
|
|
|
(4.9)
|
|
|
(90.3)
|
|
|
537.9
|
|
|
16.1
|
%
|
Total
|
|
$
|
1,207.1
|
|
|
$
|
1,097.5
|
|
|
$
|
109.6
|
|
|
10.0
|
%
|
|
$
|
5.0
|
|
|
$
|
1,212.1
|
|
|
$
|
8.1
|
|
|
$
|
(90.3)
|
|
|
$
|
1,015.3
|
|
|
19.4
|
%
|
* Numbers may not calculate due to rounding.
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SOURCE Edwards Lifesciences Corporation