LivaNova PLC (LIVN) Bundle
A Brief History of LivaNova PLC
LivaNova PLC, headquartered in the United Kingdom, is a global medical technology company specializing in cardiac and neuromodulation solutions. The company was formed in 2015 through the merger of two leading companies in the medical device industry, Sorin Group and Cyberonics. This strategic merger aimed to enhance the company's product offerings and expand its market presence.
Financial Overview as of 2024
As of September 30, 2024, LivaNova reported net revenue of $318.1 million for the third quarter, an increase from $286.1 million in the same period of 2023. For the nine months ended September 30, 2024, net revenue reached $931.6 million, compared to $843.4 million in 2023, marking a 10.5% increase year-over-year.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Revenue | $318.1 million | $286.1 million | $931.6 million | $843.4 million |
| Gross Profit | $225.3 million | $201.8 million | $651.5 million | $581.1 million |
| Net Income (Loss) | $32.9 million | ($7.3 million) | $7.3 million | $1.2 million |
| Basic Earnings Per Share | $0.61 | ($0.14) | $0.14 | $0.02 |
Segment Performance
LivaNova's business is segmented into two primary areas: Neuromodulation and Cardiopulmonary. The Neuromodulation segment reported a significant increase in income, with $49.5 million for Q3 2024 compared to $41.9 million in Q3 2023. The Cardiopulmonary segment also saw growth, with revenues of $172.2 million in Q3 2024, up from $148.9 million in Q3 2023.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| Neuromodulation | $139.9 million | $128.9 million |
| Cardiopulmonary | $172.2 million | $148.9 million |
Cost and Expenses
The total operating expenses for Q3 2024 were reported at $131.7 million, which includes selling, general, and administrative expenses (SG&A) of $131.7 million and research and development (R&D) expenses of $48.8 million. The cost of sales as a percentage of net revenue decreased to 29.2% for Q3 2024, down from 29.5% in Q3 2023.
| Expense Type | Q3 2024 Amount | Q3 2023 Amount |
|---|---|---|
| SG&A Expenses | $131.7 million | $134.8 million |
| R&D Expenses | $48.8 million | $46.5 million |
| Cost of Sales | $92.9 million | $84.3 million |
Liquidity and Capital Resources
As of September 30, 2024, LivaNova had cash and cash equivalents of $346.4 million, up from $266.5 million at the end of 2023. The company also has access to a revolving credit facility with $225 million available for general corporate purposes. Current liabilities totaled $324.4 million, while total liabilities stood at $1.2 billion.
| Liquidity Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $346.4 million | $266.5 million |
| Available Credit | $225 million | $125 million |
| Total Liabilities | $1.2 billion | $1.15 billion |
Recent Developments
In March 2024, LivaNova issued $345 million in 2.50% notes maturing in 2029 and used part of the proceeds to repurchase $230 million of its 2025 notes. This strategic move is part of the company’s ongoing efforts to manage its debt and optimize its capital structure.
Overall, LivaNova's financial health as of 2024 indicates a solid recovery from previous years, with improvements in revenue, profitability, and liquidity metrics.
A Who Owns LivaNova PLC (LIVN)
Major Shareholders
As of 2024, LivaNova PLC (LIVN) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. The largest shareholders are as follows:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | BlackRock, Inc. | 11.7% |
| Institutional Investor | The Vanguard Group, Inc. | 10.5% |
| Mutual Fund | State Street Corporation | 8.2% |
| Institutional Investor | JPMorgan Chase & Co. | 6.9% |
| Individual Shareholder | Vladimir Makatsaria (CEO) | 0.5% |
Institutional Ownership
Institutional ownership is a significant aspect of LivaNova's capital structure, indicating confidence from large financial entities. The breakdown of institutional ownership as of September 30, 2024, is as follows:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 6,370,000 | 11.7% |
| The Vanguard Group, Inc. | 5,850,000 | 10.5% |
| State Street Corporation | 4,560,000 | 8.2% |
| JPMorgan Chase & Co. | 3,870,000 | 6.9% |
| Other Institutions | 15,000,000 | 27.5% |
Recent Changes in Ownership
In the last fiscal year, there have been notable shifts in LivaNova's ownership structure:
- BlackRock increased its stake by 2.3%.
- Vanguard slightly reduced its holdings by 0.5%.
- JPMorgan Chase acquired an additional 1.1% of shares in Q3 2024.
Shareholder Voting Power
The distribution of shares influences voting power within the company. The total shares outstanding as of September 30, 2024, are:
| Share Class | Total Shares Outstanding | Voting Rights |
|---|---|---|
| Ordinary Shares | 54,300,048 | 1 vote per share |
| Preferred Shares | 0 | N/A |
Executive Ownership
Executive ownership in LivaNova also plays a crucial role in aligning management interests with those of shareholders. Key executives and their ownership stakes are as follows:
| Executive | Title | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Vladimir Makatsaria | CEO | 270,000 | 0.5% |
| Alex Shvartsburg | CFO | 150,000 | 0.3% |
| Other Executives | Various | 500,000 | 0.9% |
Stock Performance and Market Capitalization
As of September 30, 2024, LivaNova's stock performance and market capitalization are as follows:
| Metric | Value |
|---|---|
| Current Stock Price | $60.12 |
| Market Capitalization | $3.26 billion |
| 52-Week High | $65.00 |
| 52-Week Low | $45.00 |
LivaNova PLC (LIVN) Mission Statement
Company Overview
LivaNova PLC is a global medical technology company focused on providing innovative solutions for the treatment of various medical conditions, particularly in the fields of cardiopulmonary and neuromodulation. The company aims to improve patient outcomes through advanced technology and comprehensive product offerings.
Mission Statement
LivaNova's mission is to deliver innovative medical technologies that improve the lives of patients around the world. The company emphasizes its commitment to quality, safety, and effective solutions in the healthcare sector.
Financial Performance
As of the third quarter of 2024, LivaNova reported significant financial metrics that showcase its operational performance:
| Financial Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Revenue | $318,120,000 | $286,113,000 | 11.2% |
| Gross Profit | $225,264,000 | $201,803,000 | 11.6% |
| Operating Income | $35,618,000 | $4,458,000 | 798.3% |
| Net Income | $32,953,000 | ($7,318,000) | 548.5% |
| Basic EPS | $0.61 | ($0.14) | NM |
| Diluted EPS | $0.60 | ($0.14) | NM |
Segment Performance
LivaNova operates through two main segments: Cardiopulmonary and Neuromodulation. The performance of these segments for the third quarter of 2024 is as follows:
| Segment | Net Revenue (Q3 2024) | Net Revenue (Q3 2023) | % Change |
|---|---|---|---|
| Cardiopulmonary | $172,239,000 | $148,955,000 | 15.6% |
| Neuromodulation | $145,881,000 | $137,158,000 | 6.9% |
Liquidity and Capital Resources
LivaNova’s liquidity position as of September 30, 2024, is highlighted below:
| Liquidity Metric | Amount ($) |
|---|---|
| Cash and Cash Equivalents | $346,366,000 |
| Availability under Credit Agreement | $225,000,000 |
| Total Short-term Liquidity | $571,366,000 |
| Current Assets | $1,093,113,000 |
| Current Liabilities | $324,402,000 |
| Working Capital | $768,711,000 |
Debt Obligations
As of September 30, 2024, LivaNova's debt obligations are summarized as follows:
| Debt Metric | Amount ($) |
|---|---|
| Current Portion of Long-term Debt | $21,253,000 |
| Long-term Debt Obligations | $604,287,000 |
| Total Debt Obligations | $626,238,000 |
Conclusion
The mission of LivaNova PLC reflects its commitment to innovation and patient care, supported by robust financial performance and a solid liquidity position.
How LivaNova PLC (LIVN) Works
Business Overview
LivaNova PLC operates primarily in the medical device sector, focusing on two main segments: Cardiopulmonary and Neuromodulation. The company designs, develops, manufactures, markets, and sells a range of products aimed at treating various health conditions. The Cardiopulmonary segment includes products such as heart-lung machines and oxygenators, while the Neuromodulation segment primarily involves devices for treating epilepsy and depression.
Financial Performance
As of September 30, 2024, LivaNova reported the following financial metrics:
| Metric | 2024 (Q3) | 2023 (Q3) | % Change |
|---|---|---|---|
| Net Revenue | $318,120,000 | $286,113,000 | 11.2% |
| Gross Profit | $225,264,000 | $201,803,000 | 11.6% |
| Operating Income | $35,618,000 | $4,458,000 | 695.6% |
| Net Income | $32,953,000 | $(7,318,000) | NM |
| Basic EPS | $0.61 | $(0.14) | NM |
| Diluted EPS | $0.60 | $(0.14) | NM |
Segment Performance
For the three months ended September 30, 2024, the performance of LivaNova's segments was as follows:
| Segment | Net Revenue (Q3 2024) | Net Revenue (Q3 2023) | % Change |
|---|---|---|---|
| Cardiopulmonary | $172,239,000 | $148,955,000 | 15.6% |
| Neuromodulation | $139,861,000 | $128,880,000 | 8.5% |
Geographic Revenue Distribution
The following table presents LivaNova's net revenue by geographic region for the three months ended September 30, 2024:
| Region | Net Revenue (Q3 2024) | Net Revenue (Q3 2023) | % Change |
|---|---|---|---|
| United States | $179,828,000 | $161,583,000 | 11.3% |
| Europe | $52,815,000 | $48,129,000 | 9.7% |
| Rest of World | $85,477,000 | $76,401,000 | 11.9% |
Liquidity and Capital Resources
As of September 30, 2024, LivaNova's liquidity position was as follows:
| Metric | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $346,366 |
| Availability under Credit Agreement | $225,000 |
| Total Available Liquidity | $571,366 |
| Current Assets | $1,093,113 |
| Current Liabilities | $324,402 |
| Working Capital | $768,711 |
Debt Obligations
LivaNova's debt obligations as of September 30, 2024, included:
| Type of Debt | Amount (in thousands) |
|---|---|
| Current Portion of Long-Term Debt | $21,253 |
| Long-Term Debt Obligations | $604,287 |
| Total Debt Obligations | $626,238 |
Research and Development Expense
Research and development expenses for the three months ended September 30, 2024, were:
| Metric | Amount (in thousands) |
|---|---|
| R&D Expense | $48,805 |
| R&D as % of Revenue | 15.3% |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, were broken down as follows:
| Expense Type | Amount (in thousands) |
|---|---|
| Selling, General, and Administrative | $131,661 |
| Other Operating Expenses | $9,180 |
How LivaNova PLC (LIVN) Makes Money
Business Segments
LivaNova PLC operates primarily through two segments: Cardiopulmonary and Neuromodulation. Each segment contributes significantly to the company’s revenue and profitability.
Cardiopulmonary Segment
The Cardiopulmonary segment focuses on products related to heart-lung machines, oxygenators, and perfusion systems.
- Net revenue for Cardiopulmonary for the three months ended September 30, 2024, was $172.2 million, an increase of 15.6% compared to $148.9 million in the same period of 2023.
- For the nine months ended September 30, 2024, net revenue reached $501.8 million, up 14.4% from $438.8 million in 2023.
- Segment income for the three months ended September 30, 2024, was $21.7 million, compared to a loss of $2.2 million in 2023.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenue | $172.2 million | $148.9 million | 15.6% |
| Segment Income | $21.7 million | $(2.2) million | NM |
Neuromodulation Segment
This segment develops devices for neuromodulation therapy, including the VNS Therapy System.
- Net revenue for Neuromodulation for the three months ended September 30, 2024, was $139.9 million, an increase of 8.5% from $128.9 million in Q3 2023.
- For the nine months ended September 30, 2024, net revenue was $416.6 million, up 8.8% from $382.8 million in 2023.
- Segment income for the three months ended September 30, 2024, was $49.5 million, compared to $41.9 million in 2023.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenue | $139.9 million | $128.9 million | 8.5% |
| Segment Income | $49.5 million | $41.9 million | 18.1% |
Overall Financial Performance
LivaNova’s consolidated net revenue for the three months ended September 30, 2024, was $318.1 million, an increase of 11.2% from $286.1 million in 2023. For the nine months ended September 30, 2024, net revenue reached $931.6 million, up 10.5% from $843.4 million in 2023.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Consolidated Net Revenue | $318.1 million | $286.1 million | 11.2% |
| Net Income | $32.9 million | $(7.3) million | NM |
Cost Structure
LivaNova's cost of sales for the three months ended September 30, 2024, was $92.9 million, representing 29.2% of net revenue, a slight decrease from 29.5% in 2023. For the nine months ended September 30, 2024, cost of sales was $280.1 million, or 30.1% of net revenue, down from 31.1% in 2023.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Cost of Sales | $92.9 million | $84.3 million | 10.3% |
| Cost of Sales as % of Net Revenue | 29.2% | 29.5% | -0.3% |
Operating Expenses
For the three months ended September 30, 2024, total operating expenses were $189.6 million, down from $186.3 million in 2023. This includes:
- Selling, General and Administrative (SG&A) expenses of $131.7 million.
- Research and Development (R&D) expenses of $48.8 million.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| SG&A Expenses | $131.7 million | $134.8 million | -2.3% |
| R&D Expenses | $48.8 million | $46.5 million | 4.9% |
Debt and Financing
As of September 30, 2024, LivaNova had total debt obligations of $626.2 million, which includes $604.3 million in long-term debt. The company had cash and cash equivalents of $346.4 million, up from $266.5 million at the end of 2023.
| Metric | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Total Debt Obligations | $626.2 million | $586.7 million |
| Cash and Cash Equivalents | $346.4 million | $266.5 million |
Income Tax Rate
LivaNova's effective income tax rate for the three months ended September 30, 2024, was 25.9%, a significant increase from a negative effective tax rate of (268.4)% in 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Effective Income Tax Rate | 25.9% | (268.4)% |
LivaNova PLC (LIVN) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- LivaNova PLC (LIVN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of LivaNova PLC (LIVN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View LivaNova PLC (LIVN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.