Edwards Lifesciences Reports Solid Second Quarter Results

Edwards Lifesciences Reports Solid Second Quarter Results 
Double Digit Sales Growth at Constant Currency; GAAP EPS up 44
Percent; Non-GAAP EPS Grew 22 Percent; Full Year Guidance Reaffirmed 
IRVINE, CA -- (Marketwired) -- 07/25/13 --  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 June 30, 2013 of $94 million, or $0.82 per diluted
share, compared to net income of $68 million, or $0.57 per diluted
share, for the same period in 2012. Second quarter diluted earnings
per share increased 44 percent over last year, or 22 percent
excluding special items from the prior year quarter.  
Second quarter net sales increased 7.3 percent to $517 million
compared to the same period last year. Sales growth excluding the
impact of foreign exchange was 10.3 percent. 
"We are pleased to report solid second quarter results, driven by
strong sales of transcatheter and surgical heart valves in both the
U.S. and Europe," said Michael A. Mussallem, chairman and CEO. "Our
SAPIEN launch in the U.S. continues to be highlighted by very high
procedural success rates and we are gratified to see this therapy
changing the lives of so many patients. The growing body of positive
clinical data reinforces our conviction that this technology offers a
compelling treatment option for a large and growing patient
population." 
Sales Results
 For the second quarter, the company reported Surgical
Heart Valve Therapy product group sales of $204 million. Sales
increased 1.9 percent from the second quarter last year and grew 5.1
percent, excluding foreign exchange. Surgical heart valve sales
growth reflected strong global performance, particularly in the U.S.
and Europe. 
Sales of transcatheter heart valves (THV) were $182 million for the
quarter, a 25 percent increase over the second quarter last year.
These results were driven by the ongoing U.S. launch of the SAPIEN
valve, with sales of $90 million from approximately 250 commercial
sites. Outside the U.S., THV sales growth was 9.4 percent, or 10.4
percent excluding foreign exchange.  
"During the quarter, we were pleased to receive regulatory approval
for the Edwards SAPIEN XT in Japan, which makes us the first
commercially available transcatheter valve in that country,"
Mussallem said. "We continue to expect reimbursement to be
established by year end. We believe transcatheter technology will be
particularly attractive to Japanese patients, and its introduction
there should represent meaningful sales growth beginning next year."  
Critical Care product group sales were $131 million for the quarter,
representing a decrease from the second quarter last year of 3.6
percent. Excluding the impact of foreign exchange sales increased 1.9
percent driven by strong growth of advanced monitoring products,
tempered again this quarter by a reduction of distributor inventories
in China. The company expects growth rates to improve in the second
half as China inventories reach target levels. 
Domestic and international sales for the second quarter were $240
million and $277 million, respectively.  
Additional Operating Results
 For the quarter, Edwards' gross profit
margin was 75.8 percent, compared to 73.1 percent in the same period
last year. Last year's rate was 74.8 percent, excluding the impact of
a special charge. The improvement was driven by a more profitable
product mix and a favorable impact from foreign exchange, partially
offset by manufacturing inefficiencies.  
Selling, general and administrative expenses were $189 million for
the quarter, or 36.6 percent of sales, compared to $182 million in
the same period last year. This 3.8 percent increase was driven
primarily by the U.S. Medical Device Tax and U.S. transcatheter valve
expenses, partially offset by foreign exchange and lower incentive
compensation expenses.  
Research and development for the quarter grew 8.8 percent to $81
million, or 15.6 percent of sales. This increase was primarily the
result of additional investments in a number of heart valve clinical
studies and new transcatheter valve development efforts. 
Free cash flow generated during the quarter was $99 million, defined
as cash flow from operating activities of $127 million, less capital
spending of $28 million.  
Total debt at June 30, 2013 was $227 million. Cash, cash equivalents
and short-term investments totaled $575 million at June 30, 2013. 
During the quarter, the company repurchased approximately two million
shares of common stock for $139 million. 
Six-Month Results
 For the six months ended June 30, 2013, the
company recorded net income of $239 million, or $2.07 per diluted
share, compared to $133 million, or $1.12 per diluted share, for the
same period in 2012. Net income growth for the six months was 80
percent and diluted earnings per share increased 85 percent over last
year, or 28 percent excluding special items in both periods. 
Net sales for the first six months of 2013 increased 7.7 percent to
$1 billion. Sales growth was 10.1 percent excluding the impact of
foreign exchange. 
Domestic and international sales for the first six months of 2013
were $468 million and $546 million, respectively. 
During the first six months of 2013, the company repurchased
approximately 3.3 million shares of common stock for $247
million. 
Outlook
 "We continue to expect full year sales of $2.0
billion to $2.1 billion and earnings per diluted share, excluding
special items, of $3.00 to $3.10," Mussallem said. "For the third
quarter 2013, we project total sales of $475 million to $505 million,
and diluted earnings per share, excluding special items, to be
between $0.63 and $0.67. 
"Our second quarter results increased our confidence in achieving our
sales and earnings guidance for 2013 and we remain enthusiastic about
2014 as we prepare for important transcatheter product launches next
year in the U.S., Europe and Japan," said Mussallem. "We plan to
continue investing substantially in the development of novel heart
valves and other structural heart disease therapies, as well as in
critical care technologies. We believe our steadfast commitment to
innovation will enable us to broaden our leadership position and
create value for patients, clinicians and our shareholders."  
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 second
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 417089. 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, expectations for growth rates in the critical care
product group, 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 our
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 new markets,
creating 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; the rate of
growth in the U.S. THV marketplace; actions by the U.S. Food and Drug
Administration and other regulatory agencies; economic developments
in key markets; 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, 2012, 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
and reflect "constant currency" 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,
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, Edwards SAPIEN,
SAPIEN and Edwards SAPIEN XT are trademarks of Edwards Lifesciences
Corporation. 


 
                                                                            
                                                                            
EDWARDS LIFESCIENCES CORPORATION                                            
Unaudited Consolidated Statements of Operations                             
                                                                            
                                  Three Months Ended     Six Months Ended   
                                       June 30,              June 30,       
                                 --------------------  -------------------- 
(in millions, except per share                                              
 data)                              2013       2012       2013       2012   
                                 ---------  ---------  ---------  --------- 
                                                                            
Net sales                        $   517.2  $   482.0  $ 1,013.9  $   941.2 
Cost of goods sold                   125.0      129.8      247.2      257.1 
                                 ---------  ---------  ---------  --------- 
                                                                            
Gross profit                         392.2      352.2      766.7      684.1 
                                                                            
Selling, general and                                                        
 administrative expenses             189.4      182.4      374.6      359.6 
Research and development                                                    
 expenses                             80.5       74.0      160.3      142.6 
Special charges (gains)                  -        7.0      (83.6)       7.0 
Interest expense (income), net         0.4       (0.1)       0.2       (0.1)
Other expense (income), net            0
.1       (1.0)       1.3       (0.5)
                                 ---------  ---------  ---------  --------- 
                                                                            
Income before provision for                                                 
 income taxes                        121.8       89.9      313.9      175.5 
                                                                            
Provision for income taxes            27.7       22.1       74.9       42.6 
                                 ---------  ---------  ---------  --------- 
                                                                            
Net income                       $    94.1  $    67.8  $   239.0  $   132.9 
                                 =========  =========  =========  ========= 
                                                                            
Earnings per share:                                                         
  Basic                          $    0.84  $    0.59  $    2.11  $    1.16 
  Diluted                        $    0.82  $    0.57  $    2.07  $    1.12 
                                                                            
Weighted-average common shares                                              
 outstanding:                                                               
  Basic                              112.6      114.9      113.3      114.5 
  Diluted                            114.7      118.4      115.6      118.2 
                                                                            
----------------------------------------------------------------------------
Operating Statistics                                                        
As a percentage of net sales:                                               
  Gross profit                        75.8%      73.1%      75.6%      72.7%
  Selling, general and                                                      
   administrative expenses            36.6%      37.8%      36.9%      38.2%
  Research and development                                                  
   expenses                           15.6%      15.4%      15.8%      15.2%
  Income before provision for                                               
   income taxes                       23.5%      18.7%      31.0%      18.6%
  Net income                          18.2%      14.1%      23.6%      14.1%
                                                                            
Effective tax rate                    22.7%      24.6%      23.9%      24.3%
----------------------------------------------------------------------------
                                                                            
Note: Numbers may not calculate due to rounding.                            
                                                                            
                                                                            
                                                                            
EDWARDS LIFESCIENCES CORPORATION                                            
Unaudited Balance Sheets                                                    
(in millions)                                                               
                                                                            
                                                   June 30,    December 31, 
                                                     2013          2012     
                                                 ------------  ------------ 
ASSETS                                                                      
                                                                            
Current assets                                                              
Cash and cash equivalents                        $      372.7  $      310.9 
Short-term investments                                  202.3         210.5 
Accounts and other receivables, net                     341.8         347.5 
Inventories, net                                        299.5         281.0 
Deferred income taxes                                    33.9          43.4 
Prepaid expenses                                         42.7          41.6 
Other current assets                                     97.7          57.0 
                                                 ------------  ------------ 
  Total current assets                                1,390.6       1,291.9 
                                                                            
Long-term accounts receivable, net                       13.0           9.9 
Property, plant and equipment, net                      399.2         373.3 
Goodwill                                                381.5         384.7 
Other intangible assets, net                             64.6          67.0 
Investments in unconsolidated affiliates                 21.9          21.1 
Deferred income taxes                                    43.5          47.3 
Other assets                                             25.4          26.3 
                                                 ------------  ------------ 
                                                                            
  Total assets                                   $    2,339.7  $    2,221.5 
                                                 ============  ============ 
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
                                                                            
Current liabilities                                                         
Accounts payable and accrued liabilities         $      314.2  $      347.4 
                                                 ------------  ------------ 
                                                                            
Long-term debt                                          227.3         189.3 
                                                 ------------  ------------ 
Other long-term liabilities                             218.4         205.5 
                                                 ------------  ------------ 
                                                                            
Stockholders' equity                                                        
Common stock                                            125.4         124.2 
Additional paid-in capital                              615.1         489.0 
Retained earnings                                     1,892.9       1,653.9 
Accumulated other comprehensive loss                    (48.0)        (37.9)
Treasury stock, at cost                              (1,005.6)       (749.9)
                                                 ------------  ------------ 
  Total stockholders' equity                          1,579.8       1,479.3 
                                                 ------------  ------------ 
                                                                            
Total liabilities and stockholders' equity       $    2,339.7  $    2,221.5 
                                                 ============  ============ 

 
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 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, l
itigation, 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
and reflect "constant currency" 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, gross profit margin, taxes 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 GAAP.  
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.    
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 (Gains) - The Company recorded certain special gains
and charges in 2013 and 2012 related to the following:     


 
1) Litigation award: $83.6 million gain in the first quarter of 2013 related
   to the April 2010 jury award from Medtronic of damages for infringement  
   of the U.S. Andersen transcatheter heart valve patent.                   
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;                                      

 
Given the magnitude and unusual nature of this special gain relative
to the operating results for the periods presented, this item has
been excluded from non-GAAP net income and earnings per share.  
Provision For Income Taxes -  During the first quarter of 2013, the
Company recorded 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. During the first quarter of
2012, the Company recorded a $2.3 million tax benefit due to the
remeasurement of its uncertain tax positions.  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 Group
and Region." 


 
                                                                            
                                                                            
EDWARDS LIFESCIENCES CORPORATION                                            
Unaudited Reconciliation of GAAP to Non-GAAP Financial Information          
                                                                            
GAAP TO NON-GAAP NET INCOME TABLE                                           
--------------------------------------                                      
                                       Three Months Ended  Six Months Ended 
                                            June 30,           June 30,     
                                       ------------------  ---------------- 
(in millions, except per share data)     2013      2012      2013     2012  
                                       --------  --------  -------  ------- 
                                                                            
GAAP Net Income                        $   94.1  $   67.8  $ 239.0  $ 132.9 
     Growth Rate %                         38.8%              79.8%         
                                                                            
Reconciling items: (A)                                                      
                                                                            
   Gross profit                                                             
     Recall of heart valves and                                             
      catheters                               -       8.1        -      8.1 
                                       --------  --------  -------  ------- 
                                                                            
 Special charges (gains)                                                    
 1)  Litigation award                         -         -    (83.6)       - 
 2)  Licensing of intellectual                                              
      property                                -       7.0        -      7.0 
                                       --------  --------  -------  ------- 
     Total                                    -       7.0    (83.6)     7.0 
                                       --------  --------  -------  ------- 
                                                                            
 Provision for income taxes                                                 
     Tax effect on non-GAAP adjustment                                      
      (B)                                     -      (3.4)    31.3     (3.4)
     Federal research and development                                       
      tax credit                              -         -     (8.4)       - 
     Remeasurement of uncertain tax                                         
      position reserves                       -         -        -     (2.3)
                                       --------  --------  -------  ------- 
     Total                                    -      (3.4)    22.9     (5.7)
                                       --------  --------  -------  ------- 
                                                                            
       
                                --------  --------  -------  ------- 
Non-GAAP Net Income                    $   94.1  $   79.5  $ 178.3  $ 142.3 
                                       ========  ========  =======  ======= 
     Growth Rate %                         18.4%              25.3%         
                                                                            
GAAP TO NON-GAAP DILUTED EARNINGS PER SHARE TABLE                           
---------------------------------------------------------                   
                                                                            
GAAP Diluted Earnings Per Share        $   0.82  $   0.57  $  2.07  $  1.12 
     Growth Rate %                         43.9%              84.8%         
                                                                            
 Reconciling items: (A)(C)                                                  
                                                                            
 Gross profit                                                               
     Recall of heart valves and                                             
      catheters                               -      0.06        -     0.06 
                                                                            
 Special charges (gains)                                                    
 1)  Litigation award                         -         -    (0.45)       - 
 2)  Licensing of intellectual                                              
      property                                -      0.04        -     0.04 
                                                                            
 Provision for income taxes                                                 
     Federal research and development                                       
      tax credit                              -         -    (0.08)       - 
     Remeasurement of uncertain tax                                         
      position reserves                       -         -        -    (0.02)
                                                                            
                                       --------  --------  -------  ------- 
Non-GAAP Diluted Earnings Per Share    $   0.82  $   0.67  $  1.54  $  1.20 
                                       ========  ========  =======  ======= 
     Growth Rate %                         22.4%              28.3%         
                                                                            
Note: Numbers may not calculate due to rounding.                            
(A) See description of "Gross Profit," "Special Charges (Gains)" 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   Six Months  
                                                     Ended         Ended    
                                                   June 30,      June 30,   
                                                     2012          2012     
                                                 ------------  ------------ 
                                                                            
GAAP Gross Profit                                        73.1%         72.7%
                                                                            
Reconciling item: (A)                                                       
                                                                            
  Recall of heart valves and catheters                    1.7%          0.8%
                                                                            
                                                 ------------  ------------ 
Non-GAAP Gross Profit                                    74.8%         73.5%
                                                 ============  ============ 
                                                                            
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   Six Months  
                                                    Ended         Ended     
                                                June 30, 2013 June 30, 2013 
                                                ------------- ------------- 
                                                                            
GAAP Tax Rate                                           22.7%          23.9%
                                                                            
Reconciling items: (A)                                                      
                                                                            
  Special gain                                                              
    Litigation award                                        -     (2.8) pts 
                                                                            
  Provision for income taxes                                                
    Federal research and development tax credit             -       1.5 pts 
                                                                            
                                                ------------- ------------- 
Non-GAAP Tax Rate                                       22.7%          22.6%
                                                ============= ============= 
                                                                            
(A) See description of "Special Charges (Gains) " and "Provision For Income 
 Taxes" on the Non-GAAP Financial Information page.                         
                                                                            
                   
                                                         
EDWARDS LIFESCIENCES CORPORATION                                            
Unaudited Reconciliation of Sales by Product Group and Region               
($ in millions)                                                             
                                                   ----------------         
                                                     2012 Adjusted          
-------------------------------------------------- -------------------------
                                                                      Under-  
Sales by                                  GAAP              2Q 2012   lying   
Pro
duct Group                            Growth      FX    Underlying Growth  
(QTD)            2Q 2013 2Q 2012 Change   Rate*    Impact    Sales    Rate *  
-------------------------------------------------- -------------------------
Surgical Heart                                                              
 Valve Therapy  $  204.3 $ 200.5 $  3.8     1.9%   $ (6.2) $  194.3    5.1% 
Transcatheter                                                               
 Heart Valves      182.1   145.8   36.3    24.9%     (0.3)    145.5   25.2% 
Critical Care      130.8   135.7   (4.9)   (3.6%)    (7.4)    128.3    1.9% 
-------------------------------------------------- -------------------------
Total Sales     $  517.2 $ 482.0 $ 35.2     7.3%   $(13.9) $  468.1   10.3% 
-------------------------------------------------- -------------------------
                                                                            
                                                                            
                                                   ----------------         
                                                     2012 Adjusted          
-------------------------------------------------- -------------------------
                                                            YTD 2Q    Under-  
Sales by                                  GAAP               2012     lying   
Product Group    YTD 2Q   YTD 2Q         Growth      FX   Underlying  Growth  
(YTD)             2013     2012  Change   Rate*    Impact   Sales     Rate *  
-------------------------------------------------- -------------------------
Surgical Heart                                                              
 Valve Therapy  $  402.4 $ 404.1 $ (1.7)   (0.4%)  $(10.0) $  394.1    2.1% 
Transcatheter                                                               
 Heart Valves      351.8   267.3   84.5    31.6%      0.3     267.6   31.5% 
Critical Care      259.7   269.8  (10.1)   (3.8%)   (12.3)    257.5    0.8% 
-------------------------------------------------- -------------------------
Total Sales     $1,013.9 $ 941.2 $ 72.7     7.7%   $(22.0) $  919.2   10.1% 
-------------------------------------------------- -------------------------
                                                                            
                                                   ----------------         
                                                     2012 Adjusted          
-------------------------------------------------- -------------------------
                                                                     Under-  
                                          GAAP              2Q 2012  lying   
Sales by Region                          Growth      FX   Underlying Growth  
(QTD)            2Q 2013 2Q 2012 Change   Rate*    Impact    Sales   Rate *  
-------------------------------------------------- -------------------------
United States   $  240.5 $ 207.0 $ 33.5    16.2%   $    -  $  207.0   16.2% 
-------------------------------------------------- -------------------------
  Europe           155.3   146.5    8.8     6.0%     (1.2)    145.3    6.9% 
  Japan             59.3    72.3  (13.0)  (17.8%)   (12.7)     59.6   (0.6%)
  Rest of World     62.1    56.2    5.9    10.4%        -      56.2   10.4% 
-------------------------------------------------- -------------------------
International      276.7   275.0    1.7     0.6%    (13.9)    261.1    6.0% 
-------------------------------------------------- -------------------------
Total           $  517.2 $ 482.0 $ 35.2     7.3%   $(13.9) $  468.1   10.3% 
-------------------------------------------------- -------------------------
                                                                            
                                                   ----------------         
                                                     2012 Adjusted          
-------------------------------------------------- -------------------------
                                                            YTD 2Q   Under-
                                          GAAP               2012    lying   
Sales by Region  YTD 2Q   YTD 2Q         Growth      FX   Underlying Growth  
(YTD)             2013     2012  Change   Rate*    Impact    Sales   Rate *  
-------------------------------------------------- -------------------------
United States   $  468.4 $ 393.6 $ 74.8    19.0%   $    -  $  393.6   19.0% 
-------------------------------------------------- -------------------------
  Europe           309.8   295.3   14.5     4.9%     (0.2)    295.1    5.0% 
  Japan            119.3   143.1  (23.8)  (16.6%)   (21.3)    121.8   (2.1%)
  Rest of World    116.4   109.2    7.2     6.6%     (0.5)    108.7    7.1% 
-------------------------------------------------- -------------------------
International      545.5   547.6   (2.1)   (0.4%)   (22.0)    525.6    3.8% 
-------------------------------------------------- -------------------------
Total           $1,013.9 $ 941.2 $ 72.7     7.7%   $(22.0) $  919.2   10.1% 
-------------------------------------------------- -------------------------
                                                                                
                               
* 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