Edwards Lifesciences Corporation

Transcription

1 Corporation Consolidated Statements of Operations (a) (unaudited) Three Months Ended June 30, Six Months Ended June 30, (in millions, except per share data) (b) Net sales $192.4 $204.6 $384.3 $401.7 Cost of goods sold Gross profit Selling, general and administrative expenses Research and development expenses Goodwill amortization Disposition of assets and other non-recurring charges Non-recurring spin-off expenses Other operating income (4.4) (5.6) (8.3) (9.1) Operating loss (53.3) (304.0) (26.3) (285.1) Interest expense, net Other expense, net Loss before provision for income taxes (71.7) (310.8) (51.7) (299.9) Provision (benefit) for income taxes (16.0) (1.5) Net loss ($55.7) ($309.3) ($41.5) ($301.2) used to calculate basic loss per share Basic loss per share ($0.95) ($5.31) ($0.71) ($5.18) used to calculate diluted loss per share Diluted loss per share ($0.95) ($5.31) ($0.71) ($5.18) used to calculate diluted earnings per share Diluted earnings per share excluding non-recurring items $0.28 $0.20 $0.51 $0.36 Financial Ratios: Gross profit 50.5% 44.1% 50.2% 45.1% Selling, general and administrative expenses 27.4% 29.0% 27.7% 27.8% Research and development expenses 7.0% 7.0% 6.9% 6.8% Operating income (27.7%) (148.6%) (6.8%) (71.0%) Income before provision for income taxes (37.3%) (151.9%) (13.5%) (74.7%) Net income (29.0%) (151.2%) (10.8%) (75.0%) Effective tax rate 22.3% 0.5% 19.7% (0.4%) (a) Net income and earnings per share for the quarter ended March 31, 2001 exclude the cumulative effect of a change in accounting principle relating to the adoption of Statement of Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities, which resulted in an after-tax reduction in net income of $1.5 million, or $0.02 per diluted share. (b) Financial results prior to April 1, 2000 are pro forma.

2 Statements of Operations Reconciliation For the Three Months Ended June 30, Q 2001 Non- 2Q 2001 As Recurring Recurring (in millions, except per share data) Reported Items Operations Net sales $192.4 $192.4 Cost of goods sold Gross profit Selling, general and administrative expenses Research and development expenses Goodwill amortization Disposition of assets and other non-recurring charges Other operating income (4.4) (4.4) Operating income (loss) (53.3) (83.0) 29.7 Interest expense, net Other expense, net Income (loss) before provision for income taxes (71.7) (95.7) 24.0 Provision (benefit) for income taxes (16.0) (23.0) 7.0 Net income (loss) ($55.7) ($72.7) $17.0 calculate basic earnings per share Earnings (loss) per basic share ($0.95) $0.29 calculate diluted earnings per share Earnings (loss) per diluted share ($0.95) $0.28 Operating Statistics Gross profit 50.5% 50.5% Selling, general and administrative expenses 27.4% 27.4% Research and development expenses 7.0% 7.0% Operating income (27.7%) 15.4% Income before provision for income taxes (37.3%) 12.5% Net income (29.0%) 8.8% Effective tax rate 22.3% 29.0%

3 Statements of Operations Reconciliation For the Six Months Ended June 30, 2001 (a) YTD 2001 Non- YTD 2001 As Recurring Recurring (in millions, except per share data) Reported Items Operations Net sales $384.3 $384.3 Cost of goods sold Gross profit Selling, general and administrative expenses Research and development expenses Goodwill amortization Disposition of assets and other non-recurring charges Other operating income (8.3) (8.3) Operating income (loss) (26.3) (83.0) 56.7 Interest expense, net Other expense, net Income (loss) before provision for income taxes (51.7) (95.7) 44.0 Provision (benefit) for income taxes (12.8) Net income (loss) ($41.5) ($72.7) $31.2 calculate basic earnings per share Earnings (loss) per basic share ($0.71) $0.53 calculate diluted earnings per share Earnings (loss) per diluted share ($0.71) $0.51 Operating Statistics Gross profit 50.2% 50.2% Selling, general and administrative expenses 27.7% 27.7% Research and development expenses 6.9% 6.9% Operating income (6.8%) 14.8% Income before provision for income taxes (13.5%) 11.4% Net income (10.8%) 8.1% Effective tax rate 19.7% 29.0% (a) Net income and earnings per share for the quarter ended March 31, 2001 exclude the cumulative effect of a change in accounting principle relating to the adoption of Statement of Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities, which resulted in an after-tax reduction in net income of $1.5 million, or $0.02 per diluted share.

4 Corporation Net Sales by Region For the Period Ended June 30, 2001 (in millions) Q YTD 2001 At Actual FX At Actual FX United States $123.2 $246.5 Europe Japan Rest of World International Total $192.4 $384.3

5 Net Sales by Product Line For the Period Ended June 30, 2001 (in millions) Year Over Year Over Year Over Year Change Q Year Change Year Change At Constant FX At Actual FX At Actual FX At Constant FX Excluding Divestitures Cardiac Surgery $ % 8.2% 9.5% Critical Care % 6.6% 6.6% Vascular 12.7 (6.6%) (2.8%) (2.8%) Perfusion Products and Services 40.1 (26.9%) (24.1%) (5.5%) Other 0.6 NM NM NM Total $ (6.0%) (2.4%) 3.6% YTD Change YTD 2001 YTD Change YTD Change At Constant FX At Actual FX At Actual FX At Constant FX Excluding Divestitures Cardiac Surgery $ % 10.6% 12.3% Critical Care % 5.7% 5.6% Vascular 25.8 (5.7%) (2.2%) (2.2%) Perfusion Products and Services 81.4 (25.8%) (23.7%) (5.1%) Other 1.1 NM NM NM Total $ (4.3%) (1.4%) 4.9%