LivaNova PLC Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>LivaNova PLC filed its Q1 2024 10-Q report, detailing financial performance and restructuring costs.</b>

AI Summary

LivaNova PLC (LIVN) filed a Quarterly Report (10-Q) with the SEC on May 3, 2024. LivaNova PLC filed a 10-Q report for the quarterly period ended March 31, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. The company's former names include Sand Holdco Plc and Sand Holdco Ltd. The report details fair value measurements for recurring items, including freestanding instruments and capped call options related to 2025 notes. Restructuring plan costs, including employee severance and contract termination, are noted for the period.

Why It Matters

For investors and stakeholders tracking LivaNova PLC, this filing contains several important signals. This 10-Q filing provides investors with the latest quarterly financial data, including revenue, expenses, and balance sheet information, crucial for assessing the company's current performance and outlook. The disclosure of restructuring plan costs, such as employee severance and contract termination, offers insight into the company's ongoing strategic initiatives and their financial impact.

Risk Assessment

Risk Level: medium — LivaNova PLC shows moderate risk based on this filing. The company's financial health and strategic execution are subject to various factors, including market conditions and the success of restructuring efforts, as indicated by the detailed financial reporting in the 10-Q.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-Q to understand LivaNova's performance and strategic direction.

Key Numbers

• 2024-03-31 — Report Period End Date (Conformed period of report)
• 2024-05-03 — Filing Date (Filed as of date)
• 2024-01-01 — Quarter Start Date (Reporting period)
• 2023-03-31 — Prior Year Quarter End Date (Comparison period)

Key Players & Entities

• LivaNova PLC (company) — Filer
• Sand Holdco Plc (company) — Former company name
• Sand Holdco Ltd (company) — Former company name

FAQ

Industry Context

LivaNova PLC operates in the electromedical and electrotherapeutic apparatus industry.

Regulatory Implications

The filing is a standard 10-Q report under the Securities Exchange Act of 1934.

What Investors Should Do

1. Review LivaNova's Q1 2024 financial statements for revenue and profitability trends.
2. Analyze the details of restructuring costs and their impact on future earnings.
3. Assess the fair value measurements disclosed for financial instruments.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-03: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, following the 2023 annual report.

Key Financial Figures

• $125 million — reement First Lien Credit Agreement for $125 million between LivaNova PLC and its wholly-own
• $287.5 million — tain financial institutions 2025 Notes $287.5 million aggregate principal amount 3.00% unsecu
• $230.0 million — es Repurchase Transaction Repurchase of $230.0 million aggregate principal amount of the 2025
• $345.0 million — tain financial institutions 2029 Notes $345.0 million aggregate principal amount 2.5% unsecur
• $50 million — nary bypass Delayed Draw Term Facility $50 million delayed draw term facility under the 20
• $300 million — ation Definition Initial Term Facility $300 million term facility under the 2021 First Lien

Filing Documents

• livn-20240331.htm (10-Q) — 1259KB
• livanova-offerletterxvla.htm (EX-10.1) — 21KB
• livn-2024331xex311.htm (EX-31.1) — 9KB
• livn-2024331xex312.htm (EX-31.2) — 9KB
• livn-2024331xex321.htm (EX-32.1) — 8KB
• livanova-offerletterxvla001.jpg (GRAPHIC) — 248KB
• livanova-offerletterxvla002.jpg (GRAPHIC) — 300KB
• livanova-offerletterxvla003.jpg (GRAPHIC) — 315KB
• livanova-offerletterxvla004.jpg (GRAPHIC) — 313KB
• livanova-offerletterxvla005.jpg (GRAPHIC) — 238KB
• livanova-offerletterxvla006.jpg (GRAPHIC) — 54KB
• livanova-offerletterxvla007.jpg (GRAPHIC) — 48KB
• livanova-offerletterxvla008.jpg (GRAPHIC) — 48KB
• livn-20240331_g1.jpg (GRAPHIC) — 24KB
• 0001639691-24-000060.txt (&nbsp;) — 10493KB
• livn-20240331.xsd (EX-101.SCH) — 50KB
• livn-20240331_cal.xml (EX-101.CAL) — 86KB
• livn-20240331_def.xml (EX-101.DEF) — 338KB
• livn-20240331_lab.xml (EX-101.LAB) — 640KB
• livn-20240331_pre.xml (EX-101.PRE) — 539KB
• livn-20240331_htm.xml (XML) — 1386KB

FINANCIAL INFORMATION PAGE NO

PART I. FINANCIAL INFORMATION PAGE NO. Definitions 3 Note About Forward-Looking Statements 6 Item 1 Condensed Consolidated Financial Statements 7 Condensed Consolidated Statements of (Loss) Income 7 Condensed Consolidated Statements of Comprehensive (Loss) Income 8 Condensed Consolidated Balance Sheets 9 Condensed Consolidated Statements of Cash Flows 10 Notes to the Condensed Consolidated Financial Statements 11 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 31 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 38 Item 4

Controls and Procedures

Controls and Procedures 38

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 40 Item 1A

Risk Factors

Risk Factors 40 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 42 Item 3 Defaults Upon Senior Securities 42 Item 4 Mine Safety Disclosures 43 Item 5 Other Information 43 Item 6 Exhibits 44 2 DEFINITIONS In this Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, the following terms and abbreviations have the meanings listed below. "LivaNova" and "the Company" refer to LivaNova PLC and its consolidated subsidiaries. Abbreviation Definition 2021 First Lien Credit Agreement First Lien Credit Agreement for $125 million between LivaNova PLC and its wholly-owned subsidiary, Borrower, and Goldman Sachs Bank USA, as First Lien Administrative Agent and First Lien Collateral Agent, entered into on August 13, 2021 2023 Form 10-K LivaNova PLC's Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 29, 2024 2024 Restructuring Plan A plan, initiated during the first quarter of 2024, to enhance LivaNova's focus on its core Cardiopulmonary and Neuromodulation segments 2025 Capped Calls Privately negotiated capped call transactions entered into with certain financial institutions 2025 Notes $287.5 million aggregate principal amount 3.00% unsecured cash exchangeable senior notes due 2025 by private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act, issued by LivaNova USA on June 17, 2020 2025 Notes Repurchase Transaction Repurchase of $230.0 million aggregate principal amount of the 2025 Notes in privately-negotiated transactions from proceeds from the issuance of the 2029 Notes 2029 Capped Calls Privately negotiated capped call transactions entered into with certain financial institutions 2029 Notes $345.0 million aggregate principal amount 2.5% unsecured convertible senior notes due 2029 by private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act, issued by LivaNova PLC on March 8, 2024

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements LIVANOVA PLC AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME (UNAUDITED) (In thousands, except per share amounts) Three Months Ended March 31, 2024 2023 Net revenue $ 294,912 $ 263,418 Cost of sales 87,522 89,335 Gross profit 207,390 174,083 Operating expenses: Selling, general and administrative 129,863 124,129 Research and development 45,664 49,986 Other operating expenses 15,617 2,310 Operating income (loss) 16,246 ( 2,342 ) Interest expense ( 15,893 ) ( 13,437 ) Loss on debt extinguishment ( 25,482 ) — Foreign exchange and other income/(expense) ( 9,071 ) 25,547 (Loss) income before tax ( 34,200 ) 9,768 Income tax expense 7,717 2,371 Loss from equity method investments ( 26 ) ( 27 ) Net (loss) income $ ( 41,943 ) $ 7,370 Basic (loss) income per share $ ( 0.78 ) $ 0.14 Diluted (loss) income per share $ ( 0.78 ) $ 0.14 Shares used in computing basic (loss) income per share 54,008 53,617 Shares used in computing diluted (loss) income per share 54,008 53,900 See accompanying notes to the condensed consolidated financial statements 7 LIVANOVA PLC AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (UNAUDITED) (In thousands) Three Months Ended March 31, 2024 2023 Net (loss) income $ ( 41,943 ) $ 7,370 Other comprehensive income: Net change in unrealized loss on derivatives — ( 966 ) Tax effect — — Net of tax — ( 966 ) Foreign currency translation adjustment ( 17,323 ) 8,053 Total other comprehensive (loss) income ( 17,323 ) 7,087 Total comprehensive (loss) income $ ( 59,266 ) $ 14,457 See accompanying notes to the condensed consolidated financial statements 8 LIVANOVA PLC AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands, except share amounts) March 31, 2024 December 31, 2023 ASSETS Current Assets: Cash and cash equivalents $ 309,191 $ 266,504 Restricted cash 306,492 311,368 Accounts receivable, ne