IRVINE,
Calif., July 26, 2023 /PRNewswire/ --
Edwards Lifesciences (NYSE: EW) today reported financial
results for the quarter ended June 30, 2023.
Highlights and Outlook
- Q2 sales grew 11 percent to $1.53
billion; constant currency1 sales grew 12
percent
- All product groups achieved double digit constant currency
sales growth in Q2
- Q2 TAVR sales grew 9 percent; constant currency sales grew 10
percent
- Q2 EPS of $0.50 (includes charge
from previous IP agreement); adjusted1 EPS of
$0.66
- Encouraging data from Edwards' Benchmark Registry at the
EuroPCR medical congress
- New 2023 constant currency sales growth guidance of 10 to 13
percent
"We are pleased to report strong second quarter double-digit
sales growth while also making meaningful progress on our
innovations to improve patient care globally," said Bernard Zovighian, CEO. "This positive
first-half performance and improved healthcare staffing gives us
increased confidence in our full-year outlook. Looking beyond
2023, we remain confident that our foundation of innovative
therapies along with a differentiated technology pipeline positions
us well for continued longer-term success."
Transcatheter Aortic Valve Replacement (TAVR)
For the quarter, the company reported TAVR sales of $992 million, which grew 9 percent versus the
prior year, or 10 percent on a constant currency basis. The
company's U.S. and OUS sales growth rates were comparable.
Globally, on a constant currency basis, the company's average
selling prices were stable.
In the U.S., Edwards' TAVR sales were aided by improved hospital
staffing levels and the continued successful launch of SAPIEN 3
Ultra RESILIA, which remains on track to represent the majority of
the company's U.S. TAVR sales before year end.
Outside the U.S., in the second quarter, Edwards had positive
constant currency sales growth from all regions, although lower
than expected growth in Japan. The company sees excellent
opportunities for international growth as the traditionally low
adoption rates improve.
During the quarter, at the EuroPCR medical congress, data on the
Benchmark Registry were presented on 2,400 patients treated with
SAPIEN valves across 28 European centers. Patients
experienced a 33 percent reduction in the median hospital length of
stay while maintaining 30-day clinical outcomes.
Transcatheter Mitral and Tricuspid Therapies (TMTT)
In the second quarter, the company continued to successfully
deliver on its three key value drivers to treat even more patients
suffering from mitral and tricuspid disease: a portfolio of
differentiated therapies, positive clinical trial results to
support approvals and adoption, and favorable real-world clinical
outcomes.
Second quarter sales were $48
million, driven by overall transcatheter edge-to-edge repair
procedure growth as well as the ongoing launch and growing adoption
of the PASCAL Precision system in Europe and the U.S. The company
continues to expect one-year data from the full cohort of the CLASP
IID pivotal trial will be presented later this year. Edwards
remains on track for European approval of the EVOQUE tricuspid
valve by the end of 2023.
Surgical Structural Heart and Critical Care
Surgical Structural Heart sales for the quarter were
$256 million, which grew 12 percent,
or 13 percent on a constant currency basis. The growth was
driven by adoption of Edwards' premium RESILIA based products
across all regions.
Critical Care sales for the quarter were $235 million, which grew 11 percent, or 13
percent on a constant currency basis. Sales growth was led by
the Smart Recovery technology portfolio and strong adoption of the
Acumen IQ sensor.
Additional Financial Results
For the quarter, the adjusted gross profit margin was 77.7
percent, compared to 80.5 percent in the same period last
year. As expected, this year-over-year reduction was driven
by a less favorable impact from foreign exchange.
Selling, general and administrative expenses in the second
quarter were $469 million, or 30.6
percent of sales, compared to $409
million in the prior year. This increase was driven by
performance-based compensation and investments in transcatheter
field-based personnel in support of the company's growth
strategy.
Research and development expenses in the second quarter were
$270 million, or 17.7 percent of
sales, compared to $251 million in
the prior year. This increase was primarily the result of
continued investments in the company's transcatheter aortic valve
innovations, including increased clinical trial activity.
As previously announced, in April, Edwards entered into an
intellectual property agreement. In consideration for the
agreement, Edwards made a $300
million payment, approximately half of which has been
expensed, while the other half is being amortized over the next 15
years.
Adjusted free cash flow for the second quarter was $286 million, defined as cash flow from operating
activities of $34 million, less
capital spending of $48 million, and
excluding a $300 million payment
related to the intellectual property agreement.
Cash, cash equivalents and short-term investments totaled
$1.5 billion as of June 30,
2023. Total debt was approximately $600
million.
Outlook
Overall, given the improving environment and strong first half
performance, the company now expects full year 2023 sales to be in
the $5.9 to $6.1 billion range, versus the prior guidance of
the high end of $5.6 to $6.0 billion. The company now expects
full-year total company and TAVR sales growth to be in the 10 to 13
percent range on a constant currency basis, versus previous
guidance of 10 to 12 percent. The company now expects TAVR
sales of $3.85 to $4.0 billion; TMTT, $180 to $200
million; and Surgical Structural Heart, $960 million to $1.02
billion. The company reiterated its full-year Critical
Care guidance of $870 to $940 million.
Additionally, the company is lifting its full year 2023 adjusted
earnings per share guidance to $2.50
to $2.60, compared to its previous
guidance range of $2.48 to
$2.60.
For the third quarter of 2023, the company projects total sales
to be between $1.44 and $1.52 billion, and adjusted EPS of $0.55 to $0.61.
"The exciting developments during the first half of the year
reinforce our confidence in our patient-focused innovation strategy
and our longer-term outlook, and we anticipate a year of value
creation as we pursue important therapies that will benefit many
more patients. We look forward to launching a number of
differentiated technologies, as well as achieving important
milestones across all of our product lines," said Zovighian.
About Edwards
Lifesciences
Edwards Lifesciences is the global leader of patient-focused
innovations for structural heart disease and critical care
monitoring. We are driven by a passion for patients,
dedicated to improving and enhancing lives through partnerships
with clinicians and stakeholders across the global healthcare
landscape. For more information, visit Edwards.com and follow us on
Facebook, Instagram, LinkedIn, Twitter and YouTube.
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) 704-2848 or (201)
389-0893. The call will also be available live and archived
on the "Investor Relations" section of the Edwards web site at
ir.edwards.com or www.edwards.com.
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," "forecast," "potential," "predict,"
"early clinician feedback," "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. Zovighian, third quarter and full year
2023 financial guidance, statements regarding the international
adoption of TAVR, statements regarding transforming patient
treatment, approvals, clinical outcomes, adoption, and the
information in the Outlook section. No inferences or
assumptions should be made from statements of past performance,
efforts, or results which may not be indicative of future
performance or results. 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, difficult to predict, and may be outside of the
company's control. The company's forward-looking statements
speak only as of the date on which they are made and the company
does 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 risk and uncertainties associated with the
COVID pandemic, clinical trial or commercial results or new product
approvals and therapy adoption; unpredictability of product
launches; competitive dynamics; changes to reimbursement for the
company's products; the company's success in developing new
products and avoiding manufacturing supply and quality issues; the
impact of currency exchange rates; the timing or results of R&D
and clinical trials; unanticipated actions by the U.S. Food and
Drug Administration and other regulatory agencies; unexpected
litigation impacts or expenses; and other risks detailed in the
company's filings with the Securities and Exchange Commission
(SEC), including its Annual Report on Form 10-K for the year ended
December 31, 2022, and its other filings with the SEC.
These filings, along with important safety information about our
products, may be found at edwards.com.
Edwards, Edwards Lifesciences, the stylized E logo, CLASP,
EVOQUE, PASCAL, PASCAL Precision, RESILIA, SAPIEN, SAPIEN 3, SAPIEN
3 Ultra, and SAPIEN 3 Ultra RESILIA are trademarks of Edwards
Lifesciences Corporation or its affiliates. All other
trademarks are the property of their respective owners.
|
|
|
|
|
|
|
[1]
|
"Adjusted" amounts are
non-GAAP items. "Underlying" and "constant currency" growth
rates in this press release exclude foreign exchange
fluctuations. Adjusted earnings per share is a non-GAAP item
computed on a diluted basis and in this press release also excludes
an intellectual property agreement and litigation expenses,
amortization of intangible assets, and fair value adjustments to
contingent consideration liabilities arising from
acquisitions. See "Non-GAAP Financial Information" 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,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net sales
|
$
1,530.2
|
|
$
1,373.9
|
|
$
2,989.8
|
|
$
2,715.1
|
Cost of
sales
|
343.0
|
|
269.4
|
|
672.5
|
|
568.7
|
|
|
|
|
|
|
|
|
Gross profit
|
1,187.2
|
|
1,104.5
|
|
2,317.3
|
|
2,146.4
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative expenses
|
468.7
|
|
409.0
|
|
905.0
|
|
779.3
|
Research and
development expenses
|
270.3
|
|
250.8
|
|
531.5
|
|
479.4
|
Intellectual property
agreement and litigation expense
|
147.9
|
|
6.1
|
|
191.4
|
|
13.2
|
Change in fair value of
contingent consideration liabilities
|
(26.9)
|
|
(20.9)
|
|
(26.2)
|
|
(23.8)
|
|
|
|
|
|
|
|
|
Operating
income
|
327.2
|
|
459.5
|
|
715.6
|
|
898.3
|
|
|
|
|
|
|
|
|
Interest income,
net
|
(9.1)
|
|
(0.9)
|
|
(17.7)
|
|
(1.5)
|
Other income,
net
|
(2.2)
|
|
(4.3)
|
|
(3.8)
|
|
(1.0)
|
|
|
|
|
|
|
|
|
Income before provision
for income taxes
|
338.5
|
|
464.7
|
|
737.1
|
|
900.8
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
33.0
|
|
58.3
|
|
91.1
|
|
120.8
|
|
|
|
|
|
|
|
|
Net income
|
305.5
|
|
406.4
|
|
$ 646.0
|
|
$ 780.0
|
|
|
|
|
|
|
|
|
Net loss attributable
to noncontrolling interest
|
(1.6)
|
|
—
|
|
(1.6)
|
|
—
|
|
|
|
|
|
|
|
|
Net income attributable
to Edwards Lifesciences Corporation
|
$ 307.1
|
|
$ 406.4
|
|
$ 647.6
|
|
$ 780.0
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
0.51
|
|
$
0.65
|
|
$
1.07
|
|
$
1.26
|
Diluted
|
$
0.50
|
|
$
0.65
|
|
$
1.06
|
|
$
1.24
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
606.9
|
|
620.9
|
|
607.2
|
|
621.5
|
Diluted
|
610.3
|
|
626.7
|
|
610.6
|
|
628.1
|
|
|
|
|
|
|
|
|
Operating
statistics
|
|
|
|
|
|
|
|
As a percentage of net
sales:
|
|
|
|
|
|
|
|
Gross
profit
|
77.6 %
|
|
80.4 %
|
|
77.5 %
|
|
79.1 %
|
Selling, general, and
administrative expenses
|
30.6 %
|
|
29.8 %
|
|
30.3 %
|
|
28.7 %
|
Research and
development expenses
|
17.7 %
|
|
18.3 %
|
|
17.8 %
|
|
17.7 %
|
Operating
income
|
21.4 %
|
|
33.4 %
|
|
23.9 %
|
|
33.1 %
|
Income before
provision for income taxes
|
22.1 %
|
|
33.8 %
|
|
24.7 %
|
|
33.2 %
|
Net income
|
20.0 %
|
|
29.6 %
|
|
21.6 %
|
|
28.7 %
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
9.7 %
|
|
12.5 %
|
|
12.4 %
|
|
13.4 %
|
|
|
|
|
|
Note: Numbers may not
calculate due to rounding.
|
EDWARDS LIFESCIENCES
CORPORATION
|
Unaudited Balance
Sheets
|
(in
millions)
|
|
|
June 30,
2023
|
|
December 31,
2022
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
1,042.6
|
|
$
769.0
|
Short-term
investments
|
466.7
|
|
446.3
|
Accounts receivables,
net
|
754.4
|
|
643.0
|
Other
receivables
|
62.5
|
|
56.1
|
Inventories
|
980.2
|
|
875.5
|
Prepaid
expenses
|
123.2
|
|
110.0
|
Other current
assets
|
217.4
|
|
195.9
|
Total current
assets
|
3,647.0
|
|
3,095.8
|
Long-term
investments
|
856.2
|
|
1,239.0
|
Property, plant, and
equipment, net
|
1,662.2
|
|
1,632.8
|
Operating lease
right-of-use assets
|
84.9
|
|
92.3
|
Goodwill
|
1,299.5
|
|
1,164.3
|
Other intangible
assets, net
|
431.4
|
|
285.2
|
Deferred income
taxes
|
610.7
|
|
484.0
|
Other assets
|
412.1
|
|
299.1
|
Total assets
|
$
9,004.0
|
|
$
8,292.5
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable and
accrued liabilities
|
$
1,132.9
|
|
$
996.9
|
Operating lease
liabilities
|
24.3
|
|
25.5
|
Total current
liabilities
|
1,157.2
|
|
1,022.4
|
Long-term
debt
|
596.7
|
|
596.3
|
Contingent
consideration liabilities
|
—
|
|
26.2
|
Taxes
payable
|
81.2
|
|
143.4
|
Operating lease
liabilities
|
63.5
|
|
69.5
|
Uncertain tax
positions
|
303.7
|
|
267.5
|
Litigation agreement
accrual
|
112.5
|
|
143.0
|
Other
liabilities
|
242.7
|
|
217.5
|
Total
liabilities
|
2,557.5
|
|
2,485.8
|
Stockholders'
equity
|
|
|
|
Common stock
|
649.1
|
|
646.3
|
Additional paid-in
capital
|
2,145.5
|
|
1,969.3
|
Retained
earnings
|
8,237.6
|
|
7,590.0
|
Accumulated other
comprehensive loss
|
(255.5)
|
|
(254.9)
|
Treasury stock, at
cost
|
(4,401.0)
|
|
(4,144.0)
|
Total Edwards
Lifesciences Corporation stockholders' equity
|
6,375.7
|
|
5,806.7
|
Noncontrolling
interest
|
70.8
|
|
—
|
Total
equity
|
6,446.5
|
|
5,806.7
|
Total liabilities and
equity
|
$
9,004.0
|
|
$
8,292.5
|
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.
Management makes adjustments to the GAAP measures for items (both
charges and gains) that (a) do not reflect the core operational
activities of the Company, (b) are commonly adjusted within the
Company's industry to enhance comparability of the Company's
financial results with those of its peer group, or (c) are
inconsistent in amount or frequency between periods (albeit such
items are monitored and controlled with equal diligence relative to
core operations). The Company uses the term "underlying" when
referring to non-GAAP sales and sales growth information, which
excludes currency exchange rate fluctuations. The Company uses the
term "adjusted" to also exclude intellectual property litigation
expenses, intellectual property agreements, amortization of
intangible assets, and fair value adjustments to contingent
consideration liabilities arising from acquisitions.
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 operations by investors that, when
viewed with its GAAP results, provide a more complete understanding
of factors and trends affecting the Company's business and
facilitate comparability to historical periods.
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.
Fluctuations in currency exchange rates impact the comparative
results and sales growth rates of the Company's underlying
business. Management believes that excluding the impact of currency
exchange rate fluctuations from its sales growth provides investors
a more useful comparison to historical financial results. The
impact of the fluctuations has been detailed in the "Reconciliation
of Sales by Product Group and Region."
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 a non-GAAP basis, as adjusted, for the
items identified above due to the inherent difficulty in
forecasting such items without unreasonable efforts. The
Company is not able to provide a reconciliation of the non-GAAP
guidance to comparable GAAP measures 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 considers free cash flow to be a liquidity measure
which provides useful information to management and investors about
the amount of cash generated by business operations, after
deducting payments for capital expenditures, which can then be used
for strategic opportunities or other business purposes including,
among others, investing in the Company's business, making strategic
acquisitions, strengthening the balance sheet, and repurchasing
stock.
The items described below are adjustments to the GAAP
financial results in the reconciliations that follow:
Intellectual Property Litigation Expenses - The
Company incurred intellectual property litigation expenses of
$6.5 million and $7.1 million in the first quarter of 2023
and 2022, respectively, and $8.9
million and $6.1 million in
the second quarter of 2023 and 2022, respectively.
Change in Fair Value of Contingent Consideration
Liabilities - The Company recorded expense of $0.7 million and a gain of $2.9 million in the first quarter of 2023 and
2022, respectively, and gains of $26.9
million and $20.9 million in
the second quarter of 2023 and 2022, respectively, related to
changes in the fair value of its contingent consideration
liabilities arising from acquisitions.
Amortization of Intangible Assets - The Company recorded
amortization expense related to developed technology and patents in
the amount of $1.5 million and
$1.7 million in the first quarter of
2023 and 2022, respectively, and $1.3
million and $1.2 million in
the second quarter of 2023 and 2022, respectively.
Intellectual Property Agreement - The Company
recorded a $37.0 million charge and a
$139.0 million charge in the first
and second quarter of 2023, respectively, related to an
Intellectual Property Agreement with Medtronic, Inc. for a 15-year
covenant not to sue.
Provision for Income Taxes - The income tax impact of the
expenses and gains discussed above is based upon the items'
forecasted effect upon the Company's full year effective tax rate.
Adjustments to forecasted items unrelated to the expenses and gains
above, as well as impacts related to interim reporting, will have
an effect on the income tax impact of these items in subsequent
periods.
EDWARDS LIFESCIENCES
CORPORATION
|
Unaudited
Reconciliation of GAAP to Non-GAAP Financial
Information
|
(in millions, except
per share and percentage data)
|
|
|
|
Three Months Ended
June 30, 2023
|
|
|
Net
Sales
|
|
Gross
Profit
Margin
|
|
Operating
Income
|
|
Net Income
Attributable to
Edwards
Lifesciences
Corporation
|
|
Diluted
EPS
|
|
Effective
Tax Rate
|
GAAP
|
|
$
1,530.2
|
|
77.6 %
|
|
$ 327.2
|
|
$
307.1
|
|
$ 0.50
|
|
9.7 %
|
Non-GAAP adjustments:
(A) (B)
|
|
|
|
|
|
|
|
|
|
|
|
|
Intellectual property
agreement
|
|
—
|
|
—
|
|
139.0
|
|
111.7
|
|
0.19
|
|
2.8
|
Intellectual property
litigation expenses
|
|
—
|
|
—
|
|
8.9
|
|
7.0
|
|
0.01
|
|
0.3
|
Change in fair value
of contingent consideration
liabilities
|
|
—
|
|
—
|
|
(26.9)
|
|
(24.8)
|
|
(0.04)
|
|
0.2
|
Amortization of
intangible assets
|
|
—
|
|
0.1
|
|
1.3
|
|
1.0
|
|
—
|
|
0.1
|
Adjusted
|
|
$
1,530.2
|
|
77.7 %
|
|
$ 449.5
|
|
$
402.0
|
|
$ 0.66
|
|
13.1 %
|
|
|
|
Three Months Ended
June 30, 2022
|
|
|
Net
Sales
|
|
Gross
Profit
Margin
|
|
Operating
Income
|
|
Net Income
Attributable to
Edwards
Lifesciences
Corporation
|
|
Diluted
EPS
|
|
Effective
Tax Rate
|
GAAP
|
|
$
1,373.9
|
|
80.4 %
|
|
$ 459.5
|
|
$
406.4
|
|
$ 0.65
|
|
12.5 %
|
Non-GAAP adjustments:
(A) (B)
|
|
|
|
|
|
|
|
|
|
|
|
|
Intellectual property
litigation expenses
|
|
—
|
|
—
|
|
6.1
|
|
4.8
|
|
0.01
|
|
0.1
|
Change in fair value
of contingent consideration
liabilities
|
|
—
|
|
—
|
|
(20.9)
|
|
(19.3)
|
|
(0.03)
|
|
0.3
|
Amortization of
intangible assets
|
|
—
|
|
0.1
|
|
1.2
|
|
1.0
|
|
—
|
|
—
|
Adjusted
|
|
$
1,373.9
|
|
80.5 %
|
|
$ 445.9
|
|
$
392.9
|
|
$ 0.63
|
|
12.9 %
|
|
|
|
Six Months Ended
June 30, 2023
|
|
|
Net
Sales
|
|
Gross
Profit
Margin
|
|
Operating
Income
|
|
Net Income
Attributable to
Edwards
Lifesciences
Corporation
|
|
Diluted
EPS
|
|
Effective
Tax Rate
|
GAAP
|
|
$
2,989.8
|
|
77.5 %
|
|
$ 715.6
|
|
$
647.6
|
|
$ 1.06
|
|
12.4 %
|
Non-GAAP adjustments:
(A) (B)
|
|
|
|
|
|
|
|
|
|
|
|
|
Intellectual property
agreement
|
|
—
|
|
—
|
|
176.0
|
|
142.2
|
|
0.24
|
|
1.4
|
Intellectual property
litigation expenses
|
|
—
|
|
—
|
|
15.4
|
|
12.3
|
|
0.02
|
|
0.1
|
Change in fair value
of contingent consideration
liabilities
|
|
—
|
|
—
|
|
(26.2)
|
|
(24.2)
|
|
(0.04)
|
|
0.1
|
Amortization of
intangible assets
|
|
—
|
|
0.1
|
|
2.8
|
|
2.3
|
|
—
|
|
—
|
Adjusted
|
|
$
2,989.8
|
|
77.6 %
|
|
$ 883.6
|
|
$
780.2
|
|
$ 1.28
|
|
14.0 %
|
|
|
|
Six Months Ended
June 30, 2022
|
|
|
Net
Sales
|
|
Gross
Profit
Margin
|
|
Operating
Income
|
|
Net Income
Attributable to
Edwards
Lifesciences
Corporation
|
|
Diluted
EPS
|
|
Effective
Tax Rate
|
GAAP
|
|
$
2,715.1
|
|
79.1 %
|
|
$ 898.3
|
|
$
780.0
|
|
$ 1.24
|
|
13.4 %
|
Non-GAAP adjustments:
(A) (B)
|
|
|
|
|
|
|
|
|
|
|
|
|
Intellectual property
litigation expenses
|
|
—
|
|
—
|
|
13.2
|
|
10.6
|
|
0.02
|
|
0.1
|
Change in fair value
of contingent consideration
liabilities
|
|
—
|
|
—
|
|
(23.8)
|
|
(21.9)
|
|
(0.03)
|
|
0.1
|
Amortization of
intangible assets
|
|
—
|
|
0.1
|
|
2.9
|
|
2.5
|
|
—
|
|
—
|
Adjusted
|
|
$
2,715.1
|
|
79.2 %
|
|
$ 890.6
|
|
$
771.2
|
|
$ 1.23
|
|
13.6 %
|
|
|
|
|
|
|
|
|
|
(A)
|
See description of
non-GAAP adjustments under "Non-GAAP Financial
Information."
|
(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. The impact on the effective tax rate
is reflected on each individual non-GAAP adjustment line
item.
|
RECONCILIATION OF
SALES BY PRODUCT GROUP AND REGION
|
|
|
|
|
|
|
|
|
|
|
|
2022 Adjusted
|
|
|
Sales by Product Group (QTD)
|
|
2Q
2023
|
|
2Q
2022
|
|
Change
|
|
GAAP
Growth
Rate*
|
|
FX
Impact
|
|
2Q 2022
Adjusted
Sales
|
|
Underlying
Growth
Rate *
|
Transcatheter Aortic
Valve Replacement
|
|
$
991.6
|
|
$
906.9
|
|
$ 84.7
|
|
9.3 %
|
|
$ (3.3)
|
|
$
903.6
|
|
9.8 %
|
Transcatheter Mitral
and Tricuspid Therapies
|
|
47.6
|
|
27.9
|
|
19.7
|
|
71.4 %
|
|
0.3
|
|
28.2
|
|
69.2 %
|
Surgical Structural
Heart
|
|
256.3
|
|
228.5
|
|
27.8
|
|
12.2 %
|
|
(2.1)
|
|
226.4
|
|
13.3 %
|
Critical
Care
|
|
234.7
|
|
210.6
|
|
24.1
|
|
11.4 %
|
|
(2.5)
|
|
208.1
|
|
12.8 %
|
Total
|
|
$
1,530.2
|
|
$
1,373.9
|
|
$
156.3
|
|
11.4 %
|
|
$
(7.6)
|
|
$
1,366.3
|
|
12.1 %
|
|
|
|
|
|
|
|
|
|
|
|
2022 Adjusted
|
|
|
Sales by Product Group (YTD)
|
|
YTD
2Q 2023
|
|
YTD
2Q 2022
|
|
Change
|
|
GAAP
Growth
Rate*
|
|
FX
Impact
|
|
YTD 2Q
2022
Adjusted
Sales
|
|
Underlying
Growth
Rate *
|
Transcatheter Aortic
Valve Replacement
|
|
$
1,939.5
|
|
$
1,788.2
|
|
$
151.3
|
|
8.5 %
|
|
$
(28.5)
|
|
$ 1,759.7
|
|
10.3 %
|
Transcatheter Mitral
and Tricuspid Therapies
|
|
89.2
|
|
54.9
|
|
34.3
|
|
62.6 %
|
|
(0.8)
|
|
54.1
|
|
65.1 %
|
Surgical Structural
Heart
|
|
504.5
|
|
449.3
|
|
55.2
|
|
12.3 %
|
|
(10.5)
|
|
438.8
|
|
15.0 %
|
Critical
Care
|
|
456.6
|
|
422.7
|
|
33.9
|
|
8.0 %
|
|
(11.3)
|
|
411.4
|
|
11.1 %
|
Total
|
|
$
2,989.8
|
|
$
2,715.1
|
|
$
274.7
|
|
10.1 %
|
|
$
(51.1)
|
|
$
2,664.0
|
|
12.3 %
|
|
|
|
|
|
|
|
|
|
|
|
2022 Adjusted
|
|
|
Sales by Region (QTD)
|
|
2Q
2023
|
|
2Q
2022
|
|
Change
|
|
GAAP
Growth
Rate*
|
|
FX
Impact
|
|
2Q 2022
Adjusted
Sales
|
|
Underlying
Growth
Rate *
|
United
States
|
|
$
895.3
|
|
$
800.8
|
|
$ 94.5
|
|
11.8 %
|
|
$
—
|
|
$
800.8
|
|
11.8 %
|
Europe
|
|
336.2
|
|
302.8
|
|
33.4
|
|
11.0 %
|
|
4.2
|
|
307.0
|
|
9.5 %
|
Japan
|
|
117.9
|
|
122.9
|
|
(5.0)
|
|
(4.1) %
|
|
(4.6)
|
|
118.3
|
|
(0.3) %
|
Rest of
World
|
|
180.8
|
|
147.4
|
|
33.4
|
|
22.8 %
|
|
(7.2)
|
|
140.2
|
|
28.9 %
|
Outside of the
United States
|
|
634.9
|
|
573.1
|
|
61.8
|
|
10.8 %
|
|
(7.6)
|
|
565.5
|
|
12.4 %
|
Total
|
|
$
1,530.2
|
|
$
1,373.9
|
|
$
156.3
|
|
11.4 %
|
|
$
(7.6)
|
|
$
1,366.3
|
|
12.1 %
|
|
|
|
|
|
|
|
|
|
|
|
2022 Adjusted
|
|
|
Sales by Region (YTD)
|
|
YTD
2Q 2023
|
|
YTD
2Q 2022
|
|
Change
|
|
GAAP
Growth
Rate*
|
|
FX
Impact
|
|
YTD 2Q
2022
Adjusted
Sales
|
|
Underlying
Growth
Rate *
|
United
States
|
|
$
1,744.4
|
|
$
1,550.3
|
|
$
194.1
|
|
12.5 %
|
|
$
—
|
|
$
1,550.3
|
|
12.5 %
|
Europe
|
|
667.3
|
|
613.9
|
|
53.4
|
|
8.7 %
|
|
(14.1)
|
|
599.8
|
|
11.3 %
|
Japan
|
|
232.0
|
|
258.4
|
|
(26.4)
|
|
(10.2) %
|
|
(23.2)
|
|
235.2
|
|
(1.4) %
|
Rest of
World
|
|
346.1
|
|
292.5
|
|
53.6
|
|
18.3 %
|
|
(13.8)
|
|
278.7
|
|
24.2 %
|
Outside of the
United States
|
|
1,245.4
|
|
1,164.8
|
|
80.6
|
|
6.9 %
|
|
(51.1)
|
|
1,113.7
|
|
12.0 %
|
Total
|
|
$
2,989.8
|
|
$
2,715.1
|
|
$
274.7
|
|
10.1 %
|
|
$
(51.1)
|
|
$
2,664.0
|
|
12.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Numbers may not
calculate due to rounding.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/edwards-lifesciences-reports-second-quarter-results-301886641.html
SOURCE Edwards Lifesciences Corporation