Summary
Edwards Lifesciences Corporation (EW) filed an amended quarterly report (10-Q/A) on October 29, 2003, for the period ending March 31, 2003. This amendment was in response to SEC comments regarding a previous registration statement and did not involve restating financial results. For the first quarter of 2003, the company reported net sales of $212.5 million, a significant increase from $162.3 million in the prior year period. This growth was driven by strong performance in cardiac surgery and critical care products, as well as the full consolidation of its Japan business operations, which had previously been operated as a joint venture. While net income decreased to $14.5 million ($0.24/diluted share) from $20.8 million ($0.34/diluted share) year-over-year, this was largely impacted by an $11.8 million pretax charge for in-process research and development related to the acquisition of an endovascular mitral valve repair program. The company's balance sheet showed total assets of $1,035.9 million and stockholders' equity of $543.0 million as of March 31, 2003. Liquidity remains robust, supported by credit facilities and accounts receivable securitization programs, and the company also completed a $125 million convertible senior debenture offering in May 2003.
Key Highlights
- 1Net sales increased by 30.9% to $212.5 million for the three months ended March 31, 2003, compared to $162.3 million in the prior year, driven by strong product line performance and the consolidation of the Japan business.
- 2Net income for the quarter decreased to $14.5 million ($0.24 per diluted share) from $20.8 million ($0.34 per diluted share) in the prior year, impacted by an $11.8 million charge for in-process R&D.
- 3The company acquired an endovascular mitral valve repair program from Jomed N.V. for $20.0 million, including an $11.8 million charge for in-process R&D.
- 4International net sales saw a significant increase of 71.1% due to the full consolidation of the Japan business, which was previously a joint venture.
- 5As of March 31, 2003, the company had $29.8 million in cash and cash equivalents and total assets of $1,035.9 million.
- 6In May 2003, the company issued $125.0 million in convertible senior debentures to fund general corporate purposes and potentially repurchase stock.
- 7The company is involved in patent infringement litigation against St. Jude Medical, Inc., with discovery and pretrial hearings ongoing.