Summary
Edwards Lifesciences Corporation's Q3 2013 10-Q filing shows robust top-line growth, with total net sales increasing by 10.6% to $495.6 million for the quarter and 8.7% to $1,509.5 million for the first nine months of the year compared to the prior year periods. This growth was primarily driven by a significant surge in Transcatheter Heart Valve sales, up 38.9% sequentially and 33.9% year-to-date, bolstered by the expanded indication and access routes for the Edwards SAPIEN valve in the U.S. and the launch of SAPIEN XT internationally. Surgical Heart Valve Therapy also showed modest growth, while Critical Care experienced a slight decline, partly due to currency headwinds. Financially, the company demonstrated strong profitability, with net income rising to $76.9 million in Q3 2013 from $69.2 million in Q3 2012, and year-to-date net income jumping to $315.9 million from $202.1 million. This improvement was aided by a $83.6 million litigation award received in February 2013. The company also managed its capital effectively, with a healthy increase in cash and cash equivalents and significant share repurchases. A notable event was the issuance of $600 million in senior notes in October 2013 to repay outstanding debt and for general corporate purposes, demonstrating proactive capital management.
Financial Highlights
45 data points| Revenue | $495.60M |
| Cost of Revenue | $128.20M |
| Gross Profit | $367.40M |
| R&D Expenses | $84.10M |
| SG&A Expenses | $177.80M |
| Net Income | $76.80M |
| EPS (Basic) | $0.12 |
| EPS (Diluted) | $0.11 |
| Shares Outstanding (Basic) | 666.00M |
| Shares Outstanding (Diluted) | 677.40M |
Key Highlights
- 1Net sales grew 10.6% year-over-year in Q3 2013 to $495.6 million, driven by a strong performance in Transcatheter Heart Valves (+38.9%).
- 2Transcatheter Heart Valve sales increased significantly due to expanded indications and market access for the Edwards SAPIEN valve in the U.S. and SAPIEN XT internationally.
- 3Net income for Q3 2013 was $76.9 million, up from $69.2 million in the prior year's quarter, with year-to-date net income reaching $315.9 million.
- 4The company received a significant litigation award of $83.6 million in February 2013, positively impacting net income.
- 5Cash and cash equivalents increased to $471.0 million as of September 30, 2013.
- 6Edwards Lifesciences completed an accelerated share repurchase (ASR) program for $250 million and had $502.6 million remaining under its stock repurchase authorization as of quarter-end.
- 7In October 2013, the company issued $600 million in senior notes to repay debt and for general corporate purposes.