10-KPeriod: FY2009

Edwards Lifesciences Corp Annual Report, Year Ended Dec 31, 2009

Filed February 26, 2010For Securities:EW

Summary

Edwards Lifesciences Corporation (EW) reported strong performance in its 2009 10-K filing, highlighting significant growth driven by its Heart Valve Therapy segment, particularly the SAPIEN transcatheter heart valve and advanced surgical valves. The company demonstrated robust revenue growth of 6.8% year-over-year to $1.32 billion, with international markets contributing a substantial 58% of total sales. The company's commitment to research and development is evident, with a 13.3% increase in R&D spending to $175.5 million, focused on expanding its transcatheter valve technology and critical care monitoring systems. Despite global economic headwinds, Edwards Lifesciences maintained healthy gross profit margins around 70% and managed its selling, general, and administrative expenses effectively. The company also repurchased stock and maintained a strong liquidity position with a $500 million revolving credit facility. Overall, the filing paints a picture of a leading medical technology company with a strong product pipeline, effective execution, and a clear strategy for future growth in the cardiovascular disease treatment market.

Financial Highlights

49 data points
Beta

Revenue

$1.32B

69.8% Gross Margin

Net Income

$229.10M

17.3% Net Margin

EPS (Diluted)

$0.33

Total Assets

$1.62B

Cash & Equivalents

$334.10M

Free Cash Flow

$101.30M

Financial Statements
Beta
Revenue$1.32B
Cost of Revenue$399.10M
Gross Profit$922.30M
R&D Expenses$175.50M
SG&A Expenses$508.80M
Interest Expense$2.70M
Net Income$229.10M
EPS (Basic)$0.34
EPS (Diluted)$0.33
Shares Outstanding (Basic)675.00M
Shares Outstanding (Diluted)705.00M

Key Highlights

  • 1Revenue grew by 6.8% to $1.32 billion in 2009, driven by strong performance in Heart Valve Therapy and international markets.
  • 2Heart Valve Therapy segment sales increased by 17.7% to $714.9 million, fueled by the Edwards SAPIEN transcatheter heart valve and new surgical valve launches.
  • 3Research and Development expenses increased by 26% to $175.5 million, reflecting continued investment in innovation, particularly in transcatheter valve technologies.
  • 4Gross profit margin remained strong at 69.8%, indicating efficient operations and pricing power.
  • 5International sales represented 58% of total net sales, demonstrating the company's global reach and diversified revenue streams.
  • 6The company maintained a healthy liquidity position, with $334.1 million in cash and cash equivalents and $500 million available under its revolving credit facility.
  • 7The company repurchased $95.5 million of its common stock in 2009, signaling confidence in its financial health and value.

Frequently Asked Questions

Edwards Lifesciences reported a 6.8% increase in net sales for 2009, reaching $1.32 billion. The primary driver was the Heart Valve Therapy segment, which saw a 17.7% increase in sales to $714.9 million, largely due to the success of the Edwards SAPIEN transcatheter heart valve and new surgical valve products. International markets also played a significant role, accounting for 58% of total sales.

Edwards Lifesciences significantly increased its R&D investment by 26% in 2009, totaling $175.5 million. This investment was strategically focused on advancing its transcatheter heart valve technologies (like the SAPIEN and SAPIEN XT systems) and developing new solutions in the Critical Care segment, such as enhanced hemodynamic monitoring and glucose monitoring technologies.

The company maintained a strong financial position in 2009. It had $334.1 million in cash and cash equivalents and access to a $500 million unsecured revolving credit facility. Long-term debt was relatively low at $90.3 million, indicating a well-managed balance sheet.

Edwards Lifesciences' business is organized into four main product categories: Heart Valve Therapy (surgical tissue valves, repair products, and transcatheter valves), Critical Care (hemodynamic monitoring equipment), Cardiac Surgery Systems (products used during cardiac surgery), and Vascular (products for treating peripheral vascular disease).