Edwards Lifesciences Reports Strong Fourth Quarter Results

Edwards Lifesciences Reports Strong Fourth Quarter Results 
Global THV Sales Grew 73 Percent Driven by U.S. Launch; Performance
Across All Product Lines Lifted Results; GAAP EPS Reduced by Special
Items of $0.13 
IRVINE, CA -- (Marketwire) -- 02/04/13 --  Edwards Lifesciences
Corporation (NYSE: EW), the global leader in the science of heart
valves and hemodynamic monitoring, today reported net income for the
quarter ended December 31, 2012, of $91.1 million, or $0.77 per
diluted share, compared to net income of $63.1 million, or $0.53 per
diluted share, for the same period in 2011.  
During the quarter, the company recorded a global realignment pretax
charge of $9.0 million, primarily related to severance costs.
Additionally, in its non-GAAP results for the quarter, the company
included an $8.4 million tax benefit, which represents the portion of
the recently renewed Federal research and development (R&D) tax
credit that is retroactive to the beginning of 2012. In the quarter
ending March 31, 2013, the company will record the 2012 tax credit as
required, but will exclude it from non-GAAP results. The impact of
these special items was $0.13 per diluted share. 
Adjusting for special items from both periods detailed in the
reconciliation table below, fourth quarter diluted earnings per share
were $0.90, compared to $0.62 in the prior year quarter, an increase
of 45.2 percent.  
Fourth quarter net sales increased 18.7 percent to $510.5 million
compared to the same period last year. Sales growth excluding the
impact of foreign exchange was 21.2 percent. 
"Our fourth quarter capped a year of significant progress as we
introduced our innovative SAPIEN technology to the U.S.," said
Michael A. Mussallem, chairman and CEO. "We are very proud that more
than 5,000 patients in the U.S. have been treated with our
transcatheter valves since launch, and we are aggressively investing
to expand the availability of this important therapy. In spite of a
difficult economic environment, underlying(1) sales were up 16
percent in 2012 driven by a strong finish in each of our product
lines."  
Sales Results
 For the fourth quarter, the company reported Surgical
Heart Valve Therapy product group sales of $197.7 million, which
included $29.1 million of cardiac surgery systems sales. Sales grew
3.8 percent over the fourth quarter last year, or 5.5 percent
excluding the impact of foreign exchange. Growth outside the U.S. was
4.0 percent, or 7.2 percent excluding the impact of foreign exchange,
while sales in the U.S. grew 3.5 percent. 
Sales of transcatheter heart valves (THV) were $161.0 million for the
quarter, a 72.8 percent growth over the fourth quarter last year, or
77.2 percent excluding the impact of foreign exchange. These results
were driven by the ongoing U.S. launch of the SAPIEN valve, with
total U.S. THV sales of $80.7 million. Outside the U.S., sales grew
by 5.5 percent, or 10.0 percent excluding the impact of foreign
exchange.  
"We continue to expect underlying transcatheter heart valve sales to
grow 30 to 45 percent in 2013. This would result in global sales of
$710 million to $790 million, which includes $390 million to $440
million of sales in the U.S.," Mussallem said.  
Critical Care product group sales were $151.8 million for the
quarter, including vascular sales of $13.8 million. Critical care
sales were $138.0 million, representing growth of 3.5 percent, or 6.0
percent excluding the impact of foreign exchange. Growth was driven
primarily by advanced monitoring products in Japan and the U.S. 
Domestic and international sales for the fourth quarter were $224.9
million and $285.6 million, respectively.  
Additional Operating Results
 For the quarter, Edwards' gross profit
margin was 75.4 percent, compared to 72.2 percent in the same period
last year. This improvement was driven primarily by a more profitable
product mix and the impact from foreign exchange.  
Selling, general and administrative expenses were $177.9 million for
the quarter, or 34.8 percent of sales, compared to $163.4 million, or
38.0 percent of sales, in the same period last year. The increase in
expenses was driven primarily by U.S. transcatheter launch-related
investments. 
Research and development for the quarter grew 23.4 percent to $74.9
million, or 14.7 percent of sales. This increase was the result of
additional investments in clinical studies and new product
development efforts in all of the company's product lines. 
Free cash flow for the quarter was $70.6 million, defined as cash
flow from operating activities of $126.4 million, less capital
spending of $55.8 million.  
Cash and cash equivalents and short-term investments were $521.4
million at the end of the quarter. Total debt at December 31, 2012,
was $189.3 million.  
During the quarter, the company repurchased approximately 2.1 million
shares of common stock for $186.9 million. At December 31, 2012,
approximately $248 million was available for share repurchase under
the company's existing share repurchase authorization. 
Twelve-Month Results
 For the twelve months ended December 31, 2012,
the company recorded net income of $293.2 million, or $2.48 per
diluted share, compared to $236.7 million, or $1.98 per diluted
share, for the same period in 2011. On a non-GAAP basis, earnings per
diluted share were $2.69, compared to $2.02, a 33.2 percent increase. 
Net sales for the twelve months of 2012 increased 13.2 percent to
$1.90 billion. Underlying sales growth was 16.2 percent. 
Domestic and international sales for the twelve months were
$812.1million and $1,087.5 million, respectively. 
Free cash flow for the year was $253.1 million, defined as cash flow
from operating activities of $373.8 million, less capital spending of
$120.7 million.  
During 2012, the company repurchased approximately 4.0 million shares
of common stock for $353.2 million.  
Outlook
 "We expect another
exciting year for Edwards Lifesciences with continued strong sales
growth, greater operating leverage, and progress on a number of
important clinical milestones," Mussallem said. "To strengthen our
leadership position we plan to continue investing substantially in
the development of transcatheter valves and other structural heart
disease therapies, as well as in critical care technologies. We
believe our focused innovation strategy, together with our global
presence and strong financial footing, uniquely position us to drive
strong, sustainable growth, while we help treat additional patients. 
"We continue to expect full year sales of $2.1 billion to $2.2
billion and earnings per diluted share, excluding special items, of
$3.21 to $3.31," said Mussallem. "For the first quarter 2013, we
project total sales of $505 million to $530 million and diluted
earnings per share, excluding the $0.07 benefit from the 2012 R&D tax
credit and any other special items, between $0.74 and $0.78."  
About Edwards Lifesciences
 Edwards Lifesciences is the global leader
in the science of heart valves and hemodynamic monitoring. Driven by
a passion to help patients, the company partners with clinicians to
develop innovative technologies in the areas of structural heart
disease and critical care monitoring that enable them to save and
enhance lives. Additional company information can be found at
www.edwards.com.  
Conference Call and Webcast Information
 Edwards Lifesciences will be
hosting a conference call today at 5:00 p.m. ET to discuss its fourth
quarter results. To participate in the conference call, dial (877)
407-8037 or (201) 689-8037. For
 72 hours following the call, an audio
replay can be accessed by dialing (877) 660-6853 or (201) 612-7415
and using conference number 407869. The call will also be available
via live or archived webcast on the "Investor Relations" section of
the Edwards web site at www.edwards.com or ir.edwards.com. An
archived replay can also be accessed via mobile devices by
downloading Edwards' IR App for iPhone and iPad or Android. 
This news release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. These forward-looking
statements can sometimes be identified by the use of words such as
"may," "will," "should," "anticipate," "believe," "plan," "project,"
"estimate," "expect," "intend," "guidance," "outlook," "optimistic,"
"aspire," "confident" or other forms of these words or similar
expressions and include, but are not limited to, statements made by
Mr. Mussallem and the Company's financial goals or expectations.
Forward-looking statements are based on estimates and assumptions
made by management of the Company and are believed to be reasonable,
though they are inherently uncertain and difficult to predict. Our
forward-looking statements speak only as of the date on which they
are made and we do not undertake any obligation to update any
forward-looking statement to reflect events or circumstances after
the date of the statement. If the Company does update or correct one
or more of these statements, investors and others should not conclude
that the Company will make additional updates or corrections. 
Forward-looking statements involve risks and uncertainties that could
cause actual results or experience to differ materially from that
expressed or implied by the forward-looking statements. Factors that
could cause actual results or experience to differ materially from
that expressed or implied by the forward-looking statements include
uncertainties associated with the timing and extent of regulatory
approvals, expanded indications and reimbursement levels for new
products, particularly our transcatheter heart valves (THV); the
ability of the Company to lead in the THV field; the Company's
success in developing new products and expanding its markets,
creating new market opportunities for its products and avoiding
manufacturing and quality issues; the impact of competitive products
and currency exchange rates; the timing or results of pending or
future clinical trials and pre-clinical milestones; actions by the
U.S. Food and Drug Administration and other regulatory agencies;
economic developments in key markets, such as Europe; unexpected
litigation results or expense; and other risks detailed in the
Company's filings with the Securities and Exchange Commission,
including its Annual Report on Form 10-K for the year ended December
31, 2011, which are available at edwards.com.  
To supplement the consolidated financial results prepared in
accordance with Generally Accepted Accounting Principles ("GAAP"),
the Company uses non-GAAP historical financial measures. The Company
uses the term "underlying" when referring to non-GAAP sales
information, which excludes discontinued and acquired products and
foreign exchange fluctuations, and "excluding special items" or
"adjusted for special items" to also exclude gains and losses from
special items such as significant investments, litigation, and
business development transactions, and for 2012 to include the tax
benefit for the U.S. R&D tax credit, which is required to be recorded
in 2013. Those results that exclude the impact of foreign exchange
are also non-GAAP financial measures. Guidance for sales and sales
growth rates is provided on an "underlying" basis, and projections
for diluted earnings per share, net income and growth, and free cash
flow are also provided on the same non-GAAP (or "excluding special
items") basis due to the inherent difficulty in forecasting such
items. 2013 guidance also excludes the benefit of the 2012 R&D tax
credit. Management does not consider the excluded items or
adjustments as part of day-to-day business or reflective of the core
operational activities of the Company as they result from
transactions outside the ordinary course of business. Management uses
non-GAAP financial measures internally for strategic decision making,
forecasting future results and evaluating current performance. By
disclosing non-GAAP financial measures, management intends to provide
investors with a more meaningful, consistent comparison of the
Company's core operating results and trends for the periods
presented. These non-GAAP financial measures are used in addition to
and in conjunction with results presented in accordance with GAAP and
reflect an additional way of viewing aspects of the company's
operations that, when viewed with its GAAP results, provide a more
complete understanding of factors and trends affecting the company's
business. These non-GAAP measures should be considered as a
supplement to, and not as a substitute for, or superior to, the
corresponding measures calculated in accordance with generally
accepted accounting principles. Non-GAAP financial measures are not
prepared in accordance with GAAP; therefore, the information is not
necessarily comparable to other companies. A reconciliation of
non-GAAP historical financial measures to the most comparable GAAP
measure is provided in the tables below. The Company is not able to
provide a reconciliation of projected net income and growth, free
cash flow, and projected earnings per share guidance, excluding
special items, to expected reported results due to the unknown
effect, timing and potential significance of special charges or
gains, and management's inability to forecast charges associated with
future transactions and initiatives.  
Edwards, Edwards Lifesciences, the stylized E logo, and SAPIEN are
trademarks of Edwards Lifesciences Corporation. 
(1) "Underlying" amounts are non-GAAP items and in this press release
exclude exchange fluctuations. See the reconciliation tables below. 


 
                                                                            
                                                                            
EDWARDS LIFESCIENCES CORPORATION                                            
Unaudited Consolidated Statements of Operations 
                            
                                                                            
                                     Three Months Ended      Year Ended     
                                        December 31,        December 31,    
                                     ------------------  ------------------ 
(in millions, except per share data)   2012      2011      2012      2011   
                                     --------  --------  --------  -------- 
                                                                            
Net sales                            $  510.5  $  430.2  $1,899.6  $1,678.6 
Cost of goods sold                      125.8     119.6     494.6     489.8 
                                     --------  --------  --------  -------- 
                                                                            
Gross profit                            384.7     310.6   1,405.0   1,188.8 
                                                                            
Selling, general and administrative                                         
 expenses                               177.9     163.4     705.3     642.4 
Research and development expenses        74.9      60.7     291.3     246.3 
Special charges                           9.0      17.6      16.0      21.6 
Interest income, net                        -         -      (0.4)     (0.3)
Other expense (income), net               0.7       0.3       1.7      (4.8)
                                     --------  --------  --------  -------- 
                                                                            
Income before provision for income                                          
 taxes                                  122.2      68.6     391.1     283.6 
                                                                            
Provision for income taxes               31.1       5.5      97.9      46.9 
                                     --------  --------  --------  -
------- 
                                                                            
Net income                           $   91.1  $   63.1  $  293.2  $  236.7 
                                     ========  ========  ========  ======== 
                                                                            
Earnings per share:                                                         
   Basic                             $   0.79  $   0.55  $   2.55  $   2.07 
   Diluted                           $   0.77  $   0.53  $   2.48  $   1.98 
                                                                            
Weighted-average common shares outstanding:                                 
   Basic                                115.0     114.1     114.9     114.6 
   Diluted                              117.8     118.1     118.3     119.4 
                                                                            
-------------------------------------------------------- -------------------
Operating Statistics                                                        
As a percentage of net sales:                                               
   Gross profit                          75.4%     72.2%     74.0%     70.8%
   Selling, general and                                                     
    administrative expenses              34.8%     38.0%     37.1%     38.3%
   Research and development expenses     14.7%     14.1%     15.3%     14.7%
   Income before provision for                                              
    income taxes                         23.9%     15.9%     20.6%     16.9%
   Net income                            17.8%     14.7%     15.4%     14.1%
                                                                            
Effective tax rate                       25.5%      8.0%     25.0%     16.5%
-------------------------------------------------------- -------------------
                                                                            
Note: Numbers may not calculate due                                         
 to rounding.                                                               
                                                                            
                                                                            
                                                                            
EDWARDS LIFESCIENCES CORPORATION                                            
Unaudited Balance Sheets                                                    
(in millions)                                                               
                                              December 31,    December 31,  
                                                  2012            2011      
                                             --------------  -------------- 
ASSETS                                                                      
                                                                            
Current assets                                                              
Cash and cash equivalents                    $        310.9  $        171.2 
Short-term investments                                210.5           279.3 
Accounts and other receivables, net                   347.5           320.7 
Inventories, net                                      281.0           261.3 
Deferred income taxes                                  43.4            43.9 
Prepaid expenses                                       41.6            35.0 
Other current assets                                   57.0            57.1 
                                             --------------  -------------- 
   Total current assets                             1,291.9         1,168.5 
                                                                            
Long-term accounts receivable, net                      9.9            24.6 
Property, plant and equipment, net                    373.3           304.3 
Goodwill                                              384.7           349.8 
Other intangible assets, net                           67.0            66.9 
Investments in unconsolidated affiliates               21.1            21.8 
Deferred income taxes                                  47.3            20.0 
Other assets                                           26.3            24.6 
                                             --------------  -------------- 
                                                                            
   Total assets                              $      2,221.5  $      1,980.5 
                                             ==============  ============== 
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
                                                                            
Current liabilities                                                         
Accounts payable and accrued liabilities     $        347.4  $        335.2 
                                             --------------  -------------- 
                                                                            
Long-term debt                                        189.3           150.4 
                                             --------------  -------------- 
Other long-term liabilities                           205.5           157.0 
                                             --------------  -------------- 
                                                                            
Stockholders' equity                                                        
Common stock                                          124.2           120.0 
Additional paid-in capital                            489.0           300.5 
Retained earnings                                   1,653.9         1,360.7 
Accumulated other comprehensive loss                  (37.9)          (37.5)
Treasury stock, at cost                              (749.9)         (405.8)
                                             --------------  -------------- 
   Total stockholders' equity                       1,479.3         1,337.9 
                                             --------------  -------------- 
                                                                            
Total liabilities and stockholders' equity   $      2,221.5  $      1,980.5 
                                             ==============  ============== 

 
EDWARDS LIFESCIENCES CORPORATION
 Non-GAAP Financial Information    
To supplement the consolidated financial results prepared in
accordance with Generally Accepted Accounting Principles ("GAAP"),
the Company uses non-GAAP historical financial measures.   The
Company uses the term "underlying" when referring to non-GAAP sales
information, which excludes discontinued and newly acquired products
and foreign exchange fluctuations, and "excluding special items" or
"adjusted for special items" to also exclude gains and losses from
special items such as significant investments, litigation, and
business development transactions, and for 2012 to include the tax
benefit for the research and development ("R&D") tax credit, which is
required to be recorded in 2013.  Guidance for sales and sales growth
rates is provided on an "underlying basis," and projections for
diluted earnings per share, gross profit margin, selling, general and
administrative expenses ("SG&A"), R&D, effective tax rate, net income
and growth are also provided on the same non-GAAP (or "excluding
special items") basis due to the inherent difficulty in forecasting
such items.  Management does not consider the excluded items part of
day-to-day business or reflective of the core operational activities
of the Company as they result from transactions outside the ordinary
course of business.  
Management uses non-GAAP financial measures internally for strategic
decision making, forecasting future results and evaluating current
performance.  By disclosing non-GAAP financial measures, management
intends to provide investors with a more meaningful, consistent
comparison of the Company's core operating results and trends for the
periods presented.  These non-GAAP financial measures are used in
addition to and in conjunction with results presented in accordance
with GAAP and reflect an additional way of viewing aspects of the
Company's operations that, when viewed with the Company's GAAP
results, provide a more complete understanding of factors and trends
affecting the Company's business. These non-GAAP measures should be
considered as a supplement to, and not as a substitute for, or
superior to, the corresponding measures calculated in accordance with
GAAP.  
Non-GAAP financial measures are not prepared in ac
cordance with GAAP;
therefore, the information is not necessarily comparable to other
companies. The Company is not able to provide a reconciliation of
projected earnings per share, gross profit margin, SG&A, R&D,
effective tax rate, net income and growth guidance, excluding special
charges, to expected reported results due to the unknown effect,
timing and potential significance of special charges or gains, and
management's inability to forecast charges associated with future
transactions and initiatives.    
The items described below are adjustments to the GAAP financial
results in the reconciliations that follow:  
Gross Profit - In the second quarter of 2012, the Company increased
its non-GAAP gross profit by $8.1 million to exclude the impact of
its voluntary recall of certain heart valves and Critical Care
catheters. Given the magnitude and unusual nature of this adjustment
relative to the operating results for the period presented, the
financial impact of the recall has been excluded from non-GAAP net
income.  
Special Charges - The Company incurred certain special charges in
2012 and 2011 related to the following:  


 
     1) Worldwide realignment: $9.0 million charge in the fourth quarter of 
        2012 and $5.5 million charge in the fourth quarter of 2011 related  
        primarily to severance expenses associated with a global workforce  
        realignment;                                                        
     2) Licensing of Intellectual Property: $7.0 million charge in the      
        second quarter of 2012 for the upfront licensing and royalty fees   
        related to the licensing of intellectual property;                  
     3) European receivables reserve: $8.8 million charge in the fourth     
        quarter of 2011 and $4.0 million charge in the second quarter of    
        2011 to reflect the increased risk associated with the Company's    
        European sovereign debt receivables;                                
     4) Litigation settlement: $3.3 million charge in the fourth quarter of 
        2011 for a litigation settlement.                                   

 
Given the magnitude and unusual nature of these special charges
relative to the operating results for the periods presented, these
items have been excluded from non-GAAP net income and earnings per
share.  
Provision For Income Taxes -  During the fourth quarter 2012, an $8.4
million income tax benefit relating to the federal research and
development tax credit that was extended in 2013 retroactive to the
beginning of 2012, was included in non-GAAP earnings and non-GAAP
diluted earnings per share. During the first quarter of 2012, the
Company recorded a $2.3 million tax benefit due to the remeasurement
of its uncertain tax positions.  During the fourth quarter of 2011,
the Company recorded a $4.0 million tax benefit due to the expiration
of various statutes of limitations.  During the second and third
quarters of 2011, the Company recorded a $2.5 million and $6.9
million tax benefit, respectively, related to a ruling made by tax
authorities in Switzerland. Given the magnitude and unusual nature of
the tax events relative to the periods presented, non-GAAP net income
and earnings per share has been adjusted for these tax events.      
Foreign Exchange - Fluctuation in exchange rates impacts the
comparative results and sales growth rates of the Company's
underlying business. Management believes that excluding the impact of
foreign exchange rate fluctuations from its sales growth provides
investors a more meaningful comparison to historical financial
results. The impact of foreign exchange rate fluctuations has been
detailed in the "Unaudited Reconciliation of Sales by Product Line
and Region." 


 
                                                                            
EDWARDS LIFESCIENCES CORPORATION                                            
Unaudited Reconciliation of GAAP to Non-GAAP Financial Information          
                                                                            
GAAP TO NON-GAAP NET INCOME TABLE                                           
                                                            Twelve Months   
                                     Three Months Ended         Ended       
                                        December 31,        December 31,    
                                     ------------------- -------------------
(in millions, except per share data)   2012      2011      2012      2011   
                                     --------- --------- --------- ---------
                                                                            
GAAP Net Income                      $   91.1  $   63.1  $  293.2  $  236.7 
                                                                            
Reconciling items: (A)                                                      
                                                                            
  Gross profit                                                              
     Recall of heart valves and                                             
      catheters                             -         -       8.1         - 
                                                                            
  Special charges                                                           
  1) Worldwide realignment                9.0       5.5       9.0       5.5 
  2) Licensing of intellectual                                              
   property                                 -         -       7.0         - 
  3) European receivables reserve           -       8.8         -      12.8 
  4) Litigation settlement                  -       3.3         -       3.3 
                                     --------  --------  --------  -------- 
   Total                                  9.0      17.6      16.0      21.6 
                                     --------  --------  --------  -------- 
                                                                            
  Provision for income taxes                                                
     Tax effect on non-GAAP                                                 
      adjustments (B)                    (2.0)     (3.5)     (5.4)     (3.9)
     Federal research and                                                   
      development tax credit(A)           8.4         -       8.4         - 
     Expiration of various statutes                                         
      of limitations(A)                     -      (4.0)        -      (4.0)
     Remeasurement of uncertain tax                                         
      position reserve                      -         -      (2.3)        - 
     Tax rulings and settlements            -         -         -      (9.4)
                                     --------  --------  --------  -------- 
     Total                                6.4      (7.5)      0.7     (17.3)
                                                                            
                                     --------  --------  --------  -------- 
Non-GAAP Net Income                  $  106.5  $   73.2  $  318.0  $  241.0 
                                     ========  ========  ========  ======== 
                                                                            
                                                                            
                                                                            
                                                                            
GAAP TO NON-GAAP DILUTED EARNINGS PER SHARE TABLE                           
                                                                            
GAAP Diluted Earnings Per Share     $    0.77  $   0.53  $   2.48  $   1.98 
                                                                            
Reconciling items: (A)(C)                                                   
                                                       
                     
  Gross profit                                                              
     Recall of heart valves and                                             
      catheters                             -         -      0.06         - 
                                                                            
  Special charges                                                           
  1) Worldwide realignment               0.06      0.04      0.06      0.04 
  2) Licensing of intellectual                                              
   property                                 -         -      0.04         - 
  3) European receivables reserve           -      0.07         -      0.10 
  4) Litigation settlement                  -      0.02         -      0.02 
                                    ---------  --------  --------  -------- 
   Total                                 0.06      0.13      0.10      0.16 
                                    ---------  --------  --------  -------- 
                                                                            
  Provision for income taxes                                                
     Federal research and                                                   
      development tax credit(A)          0.07         -      0.07         - 
     Expiration of various statutes                                         
      of limitations(A)                     -     (0.04)        -     (0.04)
     Remeasurement of uncertain tax                                         
      position reserve                      -         -     (0.02)        - 
     Tax rulings and settlements            -         -         -     (0.08)
                                    ---------  --------  --------  -------- 
     Total                               0.07     (0.04)     0.05     (0.12)
                                                                            
                                    ---------  --------  --------  -------- 
Non-GAAP Diluted Earnings Per Share $    0.90  $   0.62  $   2.69  $   2.02 
                                    =========  ========  ========  ======== 
                                                                            
Note: Numbers may not calculate due to rounding.                            
(A) See description of "Gross Profit," "Special Charges" and "Provision For 
 Income Taxes" on the Non-GAAP Financial Information page.                  
(B) The tax effect on non-GAAP adjustments is calculated using the relevant 
 tax jurisdictions' statutory tax rates.                                    
(C) All amounts are tax effected, calculated using the relevant tax         
 jurisdictions' statutory tax rates.                                        
                                                                            
                                                                            
                                                                            
EDWARDS LIFESCIENCES CORPORATION                                            
Unaudited Reconciliation of GAAP to Non-GAAP Financial Information          
                                                                            
GAAP TO NON-GAAP GROSS PROFIT TABLE                                         
                                                                            
                                             Three Months     Twelve Months 
                                                 Ended            Ended     
                                             December 31,     December 31,  
                                                 2012             2012      
                                            --------------   -------------- 
                                                                            
GAAP Gross Profit                                     75.4%            74.0%
                                                                            
Reconciling item: (A)                                                       
                                                                            
  Recall of heart valves and catheters                   -              0.4%
                                                                            
                                            --------------   -------------- 
Non-GAAP Gross Profit                                 75.4%            74.4%
                                            ==============   ============== 
                                                                            
Note: Numbers may not calculate due to rounding.                            
(A) See description of "Gross Profit" on the Non-GAAP Financial Information 
 page.                                                                      
                                                                            
                                                                            
                                                                            
EDWARDS LIFESCIENCES CORPORATION                                            
Unaudited Reconciliation of GAAP to Non-GAAP Tax Rate                       
                                                                            
GAAP TO NON-GAAP TAX RATE TABLE                                             
                                             Three Months     Twelve Months 
                                                 Ended            Ended     
                                             December 31,     December 31,  
                                                 2012             2012      
                                            --------------   -------------- 
                                                                            
GAAP Tax Rate                                         25.5%            25.0%
                                                                            
Reconciling items: (A)                                                      
                                                                            
  Gross profit                                                              
    Recall of heart valves and catheters                 -        (0.3) pts 
                                                                            
  Special charges                                                           
    Worldwide realignment                        (0.3) pts        (0.1) pts 
    Licensing of intellectual property                   -          0.3 pts 
                                                                            
  Provision for income taxes                                                
    Federal research and development tax                                    
     credit                                      (6.4) pts        (2.0) pts 
    Remeasurement of uncertain tax position                                 
     reserve                                             -          0.5 pts 
                                                                            
                                            --------------   -------------- 
Non-GAAP Tax Rate                                     18.8%            23.4%
                                            ==============   ============== 
                                                                            
(A) See description of "Gross Profit," "Special Charges" and "Provision For 
 Income Taxes" on the Non-GAAP Financial Information page.                  
                                                                            
                                                                            
                                                                            
EDWARDS LIFESCIENCES CORPORATION                                            
Unaudited Reconciliation of Sales by Product Line and Region                
($ in millions)                                                             
                                                   -----------------        
                                                      2011 Adjusted         
----------------------------------------------------------------------------
                                                             4Q 2011  Under-
                                              GAAP           Under-   lying 
Sales by Product                             Growth    FX    lying    Growth
 Line (QTD)        4Q 2012  4Q 2011  Change  Rate*   Impact  Sales    Rate *
----------------------------------------------------------------------------
  Surgical Heart                                                            
   Valves         $  168.6 $  163.4 $  5.2    3.2%  $ (2.8) $  160.6    5.0%
  Cardiac Surgery                                                           
   Systems            29.1     27.2    1.9    6.9%    (0.4)     26.8    8.4%
----------------------------------------------------------------------------
Total Surgical                                                              
 Heart Valve                                                                
 Therapy             197.7    190.6    7.1    3.8%    (3.2)    187.4    5.5%
----------------------------------------------------------------------------
Transcatheter                                                               
 Heart Valves        161.0     93.2   67.8   72.8%    (2.3)     90.9   77.2%
----------------------------------------------------------------------------
  Critical Care      138.0    133.3    4.7    3.5%    (3.2)    130.1    6.0%
  Vascular            13.8     13.1    0.7    4.8%    (0.2)     12.9    6.6%
----------------------------------------------------------------------------
Total Critical                                                              
 Care                151.8    146.4    5.4    3.6%    (3.4)    143.0    6.1%
----------------------------------------------------------------------------
Total Sales       $  510.5 $  430.2 $ 80.3   18.7%  $ (8.9) $  421.3   21.2%
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                   -----------------        
                                                      2011 Adjusted         
----------------------------------------------------------------------------
                                                          YTD 4Q 2011 Under-
                                              GAAP           Under-   lying 
Sales by Product   YTD 4Q   YTD 4Q           Growth    FX    lying    Growth
 Line (YTD)         2012     2011    Change  Rate*   Impact  Sales    Rate *
----------------------------------------------------------------------------
  Surgical Heart                                                            
   Valves         $  676.1 $  676.9 $ (0.8)  (0.1%) $(13.2) $  663.7    1.9%
  Cardiac Surgery                                                           
   Systems           111.4    107.5    3.9    3.6%    (2.1)    105.4    5.7%
----------------------------------------------------------------------------
Total Surgical                                                              
 Heart Valve                                                                
 Therapy             787.5    784.4    3.1    0.4%   (15.3)    769.1    2.4%
----------------------------------------------------------------------------
Transcatheter                                                               
 Heart Valves        552.1    333.8  218.3   65.4%   (16.7)    317.1   74.1%
----------------------------------------------------------------------------
  Critical Care      508.4    508.3    0.1    0.0%    (9.4)    498.9    1.9%
  Vascular            51.6     52.1   (0.5)  (1.1%)   (1.0)     51.1    1.0%
----------------------------------------------------------------------------
Total Critical                                                              
 Care                560.0    560.4   (0.4)  (0.1%)  (10.4)    550.0    1.8%
----------------------------------------------------------------------------
Total Sales       $1,899.6 $1,678.6 $221.0   13.2%  $(42.4) $1,636.2   16.2%
----------------------------------------------------------------------------
                                                                            
                                                                            
---------------------------------------------------                         
                                              GAAP                          
Sales by Region                              Growth                         
 (QTD)             4Q 2012  4Q 2011  Change  Rate*                          
---------------------------------------------------                         
United States     $  224.9 $  154.7 $ 70.2   45.5%                          
---------------------------------------------------                         
  Europe             142.6    143.7   (1.1)  (0.8%)                         
  Japan               79.2     76.8    2.4    3.0%                          
  Rest of World       63.8     55.0    8.8   16.0%                          
---------------------------------------------------                         
International        285.6    275.5   10.1    3.6%                          
---------------------------------------------------                         
Total             $  510.5 $  430.2 $ 80.3   18.7%                          
---------------------------------------------------                         
                                                                            
                                                                            
---------------------------------------------------                         
                                              GAAP                          
Sales by Region    YTD 4Q   YTD 4Q           Growth                         
 (YTD)               2012     2011   Change  Rate*                          
---------------------------------------------------                         
United States     $  812.1 $  605.6 $206.5   34.1%                          
---------------------------------------------------                         
  Europe             559.7    574.0  (14.3)  (2.5%)                         
  Japan              294.1    283.7   10.4    3.7%                          
  Rest of World      233.7    215.3   18.4    8.5%                          
---------------------------------------------------                         
International      1,087.5  1,073.0   14.5    1.3%                          
---------------------------------------------------                         
Total             $1,899.6 $1,678.6 $221.0   13.2%                          
---------------------------------------------------                         
                                                                            
* Numbers may not calculate due to rounding.                                

  
Media Contact:  
Sarah Huoh
949-250-5070 
Investor Contact:  
David K. Erickson
949-250-6826 
Edwards Lifesciences Corporation
One Edwards Way 
Irvine, CA USA 92614 
Phone: 949.250.2500 
Fax: 949.250.2525
www.edwards.com