NASDAQ$LIVN

LivaNova PLC · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Revenue decreased due to COVID-19 impact, while earnings per share were $0.79 and adjusted earnings per share were $0.33.

LivaNova's first quarter results were impacted by COVID-19, with a decrease in worldwide sales of 3.4% on a reported basis. GAAP diluted earnings per share were $0.79, and adjusted diluted earnings per share were $0.33. The company is closely monitoring the COVID-19 situation and taking actions to strengthen its liquidity position.

  • Worldwide sales decreased by 3.4% on a reported basis.
  • GAAP diluted earnings per share were $0.79.
  • Adjusted diluted earnings per share were $0.33.
  • Company expects the pandemic to adversely impact full-year results.

Headline financials

Total Revenue

$242M

Previous: $251M-3.4%
EPS (adj)

$0.33

Previous: $0.54-38.9%
Capital Expenditures

-$8.6M

Previous: -$5.74M-49.7%
Free Cash Flow

$29M

Previous: -$20.6M+240.8%
Net Income

$37.6M

Previous: -$14.8M+353.1%
Operating Income

$608K

Previous: -$20.8M+102.9%
Gross Profit

$173M

Previous: $167M+4.2%
Cash & Equivalents

$61.1M

Previous: $50.8M+20.4%
Total Assets

$2.45B

Previous: $2.6B-5.6%
Stock-Based Comp

$9.04M

Previous: $6.87M+31.6%

Revenue & EPS history

LivaNova · Revenue · Quarterly

$242M

Q1 2020-3.4%vs Q1 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

LivaNova · $207M total across 3 segments · Q1 2020

  • Cardiopulmonary
    $116M-4.3%
  • Neuromodulation
    $89.7M-5.2%
  • Other Revenue
    $700K+0.0%

Forward guidance

LivaNova expects the pandemic to adversely impact full-year results, with Q2 experiencing the greatest impact and anticipates a steady improvement throughout the remainder of the year.

Tailwinds

  • Company implemented actions designed to strengthen its liquidity position and promote financial resiliency
  • Company concluded execution of a series of amendments to our credit agreements that temporarily revise certain financial covenants and waive certain events of non-compliance prior to December 31, 2020
  • Company is in the process of evaluating strategic capital raising options to fulfill short-and medium-term capital needs
  • Company believes in its ability to execute on its strategy
  • Company's long-term fundamental outlook remains strong.

Headwinds

  • LivaNova worldwide net sales for full-year 2020 are now expected to decline between 7 and 17 percent on a constant-currency basis
  • Adjusted diluted earnings per share from continuing operations for 2020 are expected to be in the range of $1.40 to $1.70
  • Company now estimates that adjusted cash flow from operations, excluding integration, restructuring and litigation payments, will be in the range of $80-$100 million for 2020.
  • Company expects Q2 to experience the greatest impact
  • Pandemic to adversely impact full-year results

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.2%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+1.3%

Avg return

30 days after

58%

26 / 45 earnings

Positive

+23.3%

Q1 2025

Best reaction

-19.9%

Q3 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+15.1%+21.7%+25.5%
Q4 2025+0.8%+1.8%-10.4%
Q3 2025-5.8%-5.7%+17.5%
Q1 2025+23.3%+28.6%+30.7%
Q4 2024-15.8%-15.9%-20.0%
Q3 2024-2.5%-7.5%-0.9%
Q2 2024-5.8%-11.8%-1.8%
Q1 2024+12.9%+12.3%+9.5%
Q4 2023+6.9%+6.4%+6.4%
Q3 2023-0.8%-0.9%-6.4%
Q2 2023+7.0%+9.1%+4.0%
Q1 2023+0.6%-0.0%-0.6%
Q4 2022-9.6%-12.1%-23.6%
Q3 2022+2.2%+6.6%+19.1%
Q2 2022-3.0%-2.2%-13.9%
Q1 2022-13.2%-21.8%-9.1%
Q4 2021+7.9%+9.4%+8.6%
Q3 2021+15.3%+15.9%+2.4%
Q2 2021+8.0%+7.1%+1.1%
Q1 2021+3.8%+1.4%+0.8%
Q4 2020+3.5%+3.6%+2.6%
Q3 2020+1.0%-4.5%+8.9%
Q2 2020-11.0%-17.2%-14.9%
Q1 2020-5.8%-10.4%-5.1%
Q4 2019+3.3%+5.2%-34.6%
Q3 2019-6.8%-6.4%+10.4%
Q2 2019+5.8%+1.7%+2.5%
Q1 2019+5.2%+8.8%+4.4%
Q4 2018-4.2%-3.1%+0.0%
Q3 2018+5.6%+6.9%-6.6%
Q2 2018+12.2%+10.3%+14.0%
Q1 2018-8.0%-6.7%+5.9%
Q4 2017+2.4%+0.8%+1.1%
Q3 2017+11.7%+9.1%+20.3%
Q2 2017+1.4%+1.5%+7.7%
Q1 2017+4.0%+4.8%+7.0%
Q4 2016+4.2%-2.0%-2.8%
Q3 2016-19.9%-21.0%-19.3%
Q2 2016+14.9%+11.1%+12.0%
Q1 2016-3.5%
Q4 2014-0.0%
Q4 2013-0.0%
Q4 2015-1.1%
Q2 2015+1.9%
Q3 2015-10.6%

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