Edwards Lifesciences Reports Strong First Quarter Results

Edwards Lifesciences Reports Strong First Quarter Results 
Global THV Sales Grew Over 10%; OUS THV Grew More Than 30%;
Maintaining Full Year 2014 Guidance 
IRVINE, CA -- (Marketwired) -- 04/24/14 --  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 March 31, 2014 of $60.3 million, or $0.56 per diluted
share, and non-GAAP net income of $82.1 million, or $0.76 per diluted
share. Net income for the same period a year earlier was $143.9
million, or $1.24 per diluted share, and non-GAAP net income was
$86.7 million, or $0.74 per diluted share. In last year's quarter,
the company recorded a special pre-tax gain of $83.6 million, which
was an initial payment from Medtronic related to ongoing U.S.
Andersen patent litigation.  
Net sales for the quarter ended March 31, 2014 increased 5.2 percent
to $522.4 million compared to the same period last year.
Underlying(1) sales grew 7.8 percent. Sales in the U.S. and outside
the U.S. for the first quarter were $222.4 million and $300.0
million, respectively.  
"We are pleased to report a robust start to 2014 with first quarter
results reflecting better than expected THV sales and solid bottom
line performance," said Michael A. Mussallem, chairman and CEO.
"Several exciting new product launches are underway, and additional
approvals are expected soon that should enable us to strengthen our
leadership positions." 
Sales Results
 For the first quarter, the company reported Surgical
Heart Valve Therapy product group sales of $202.6 million. Sales
increased 2.3 percent over the first quarter last year, or 4.3
percent on an underlying basis. Surgical heart valve sales growth was
driven by healthy unit growth.  
Sales of transcatheter heart valves (THV) were $189.2 million for the
quarter, an 11.5 percent growth rate over the first quarter last
year. Planned product upgrades required the recording of a net sales
return reserve of $6.1 million in the first quarter. On an underlying
basis, THV sales grew 14.0 percent. These results were driven by
higher than expected growth in Europe and the ongoing rollout of the
Edwards SAPIEN XT valve in Japan. The Edwards SAPIEN 3 valve,
launched in February, is receiving a very f
avorable response from
clinicians, and the company believes it is helping to stimulate
further market growth in Europe. Outside the U.S., sales grew by 36.4
percent, or 33.0 percent on an underlying basis.  
"We are confident that we will receive FDA approval of our SAPIEN XT
system this quarter and we are prepared to launch immediately," said
Mussallem. "Receiving this approval is important as it will provide
greater options for U.S. patients who can benefit from the
substantial enhancements in this proven platform." 
Critical Care product group sales were $130.6 million for the
quarter, representing an increase of 1.2 percent, or 4.6 percent on
an underlying basis. Growth was driven by core hemodynamic products
outside the U.S. and enhanced surgical recovery products in the U.S.,
which include minimally and non-invasive products such as FloTrac and
ClearSight. 
Additional Operating Results
 For the quarter, Edwards' gross profit
margin was 72.1 percent, compared to 75.6 percent in the same period
last year. This reduction was driven by an approximate 200 basis
point impact from the THV product exchanges, as well as higher
manufacturing costs and foreign exchange.  
Selling, general and administrative expenses were $197.2 million for
the quarter, or 37.7 percent of sales, compared to $182.4 million in
the same period last year. This increase was driven primarily by
Japan and U.S. transcatheter valve-related expenses, and a larger
accrual for incentive compensation. 
Research and development for the quarter grew 7.5 percent to $85.8
million, or 16.4 percent of sales. This increase was primarily the
result of continued investments in heart valve clinical studies and
transcatheter R&D projects. 
Free cash flow for the quarter was $124.6 million, defined as cash
flow from operating activities of $138.9 million, less capital
spending of $14.3 million.  
Cash, cash equivalents and short-term investments totaled $831.6
million at March 31, 2014. Total debt was $725.4 million.  
During the quarter, the company repurchased 4.4 million shares of
common stock for $300.0 million. 
Special Charge
 During the quarter, the company recorded a $7.5
million expense to settle past and future obligations related to one
of the company's intellectual property (IP) agreements. This special
charge decreased diluted earnings per share by $0.06. 
Accounting Change
 At the beginning of this year, the company
implemented an accounting change pertaining to IP litigation costs.
Previously, litigation costs related to seeking protection of
Edwards' IP were capitalized and amortized over the life of the
related IP. Beginning in 2014, to improve comparability, increase
visibility and better align with its industry peers, Edwards began
expensing all IP litigation expenses as incurred. All IP litigation
expenses and awards are reflected on a new line in the company's
Statement of Operations and are excluded when reporting non-GAAP
financial results. 
Outlook
 The company continues to expect full
year 2014 total sales of $2.05 billion to $2.25 billion. Excluding
special items, the company now expects full year 2014 diluted
earnings per share to be in a range around $3.10, which includes an
assumed $0.10 benefit from the change in the treatment of IP
litigation expenses. For the second quarter of 2014, the company
projects total sales to be between $525 million and $565 million, and
diluted earnings per share, excluding special items, to be between
$0.71 and $0.81. 
"As the TAVR market continues to expand, and we further strengthen
our competitive position with innovative new technologies, we remain
as optimistic as ever about the long-term growth opportunity
represented by transcatheter valves," Mussallem said. "Edwards
remains dedicated to investing in transformational structural heart
disease therapies and critical care technologies for clinicians and
their patients around the world." 
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 enabling 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 2:00 p.m. PT to discuss its first
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 13579551. The call will also be available
via live or archived webcast on the "Investor Relations" section of
the Edwards web site at ir.edwards.com or www.edwards.com. A live
stream and 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, information in the Outlook section, the company's
financial goals, expectations for new product launches, industry
growth and the timing and impact of expected new product approvals.
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; the company's
success in developing new products, creating opportunities for its
products and avoiding manufacturing and quality issues; the impact of
competitive products, industry dynamics 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; unexpected litigation results or expenses; 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, 2013, 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 foreign exchange fluctuations, as well as
adjustments for discontinued and acquired products and sales reserves
associated with THV product upgrades, and "excluding 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 was 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. 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, ClearSight,
FloTrac, Edwards SAPIEN, SAPIEN, SAPIEN XT, and SAPIEN 3 are
trademarks of Edwards Lifesciences Corporation. All other trademarks
are the property of their respective owners. 
(1) "Underlying" amounts are non-GAAP items and in this press release
exclude foreign exchange fluctuations and the THV sales return
reserve. See the reconciliation tables below. 


 
                                                                            
                                                                            
EDWARDS LIFESCIENCES CORPORATION                                            
Unaudited Consolidated Statements of Operations                             
                                                        Three Months Ended  
                                                             March 31,      
                                                       -------------------- 
(in millions, except per share data)                      2014       2013   
                                                       ---------  --------- 
                                                                            
Net sales                                              $   522.4  $   496.7 
Cost of sales                                              145.9      121.0 
                                                       ---------  --------- 
                                                                            
Gross profit                                               376.5      375.7 
                                                                            
Selling, general and administrative expenses               197.2      182.4 
Research and development expenses                           85.8       79.8 
Intellectual property litigation expense (income), net       5.5      (78.1)
Special charge                                               7.5          - 
Interest expense (income), net                               3.5       (0.2)
Other (income) expense, net                                 (0.3)       1.2 
                                                       ---------  --------- 
                                                                            
Income before provision for income taxes                    77.3      190.6 
                                                                            
Provision for income taxes                                  17.0       46.7 
                                                       ---------  --------- 
                                                                            
Net income                                             $    60.3  $   143.9 
                                                       =========  ========= 
                                                                            
Earnings per share:                                                         
  Basic                                                $    0.57  $    1.26 
  Diluted                                              $    0.56  $    1.24 
                                                                            
Weighted-average common shares outstanding:                                 
  Basic                                                    106.7      113.9 
  Diluted                                                  108.5      116.5 
                                                                            
----------------------------------------------------------------------------
Operating Statistics                                                        
As a percentage of net sales:                                               
  Gross profit                                              72.1%      75.6%
  Selling, general and administrative expenses              37.7%      36.7%
  Research and development expenses                         16.4%      16.1%
  Income before provision for income taxes                  14.8%      38.4%
  Net income                                                11.5%      29.0%
                                                                            
Effective tax rate                                          22.0%      24.5%
----------------------------------------------------------------------------
                                                                            
Note: Effective January 1, 2014, the Company changed its method of          
accounting for certain intellectual property litigation expenses. The       
Company has retrospectively adjusted the comparative financial statements of
prior periods to apply this new method of accounting. To make historic      
comparisons clearer, the Company has included a schedule on its website (see
ir.edwards.com) detailing the impact of this change on its 2009-2013        
Consolidated Balance Sheets and Statements of Operations.                   
                                                                            
Note: Numbers may not calculate due to rounding.                            
                                                                            
                                                                            
                                                                            
                                                                            
EDWARDS LIFESCIENCES CORPORATION                                            
Unaudited Balance Sheets                                                    
(in millions)                                                               
                                                  March 31,    December 31, 
                                                     2014          2013     
                                                 -----------  ------------- 
ASSETS                                                                      
                                                                            
Current assets                                                              
Cash and cash equivalents                        $     295.7  $       420.4 
Short-term investments                           
      535.9          516.5 
Accounts and other receivables, net                    305.1          328.0 
Inventories, net                                       308.0          308.9 
Deferred income taxes                                   35.4           33.4 
Prepaid expenses                                        46.0           46.8 
Other current assets                                    77.2           71.8 
                                                 -----------  ------------- 
  Total current assets                               1,603.3        1,725.8 
                                                                            
Long-term accounts receivable, net                       5.9            7.3 
Long-term investments                                   95.2           21.9 
Property, plant and equipment, net                     418.7          421.6 
Goodwill                                               385.4          385.4 
Other intangible assets, net                            31.6           33.5 
Deferred income taxes                                   76.4           79.0 
Other assets                                            35.2           35.4 
                                                 -----------  ------------- 
                                                                            
  Total assets                                   $   2,651.7  $     2,709.9 
                                                 ===========  ============= 
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
                                                                            
Current liabilities                                                         
Accounts payable and accrued liabilities         $     356.2  $       345.6 
                                                 -----------  ------------- 
                                                                            
Long-term debt                                         725.4          593.1 
                                                 -----------  ------------- 
Other long-term liabilities                            229.3          226.8 
                                                 -----------  ------------- 
                                                                            
Stockholders' equity                                                        
Common stock                                           126.4          126.0 
Additional paid-in capital                             711.7          671.2 
Retained earnings                                    2,091.1        2,030.8 
Accumulated other comprehensive loss                   (32.4)         (27.6)
Treasury stock, at cost                             (1,556.0)      (1,256.0)
                                                 -----------  ------------- 
  Total stockholders' equity                         1,340.8        1,544.4 
                                                 -----------  ------------- 
                                                                            
Total liabilities and stockholders' equity       $   2,651.7  $     2,709.9 
                                                 ===========  ============= 
                                                                            
Note: Effective January 1, 2014, the Company changed its method of          
accounting for certain intellectual property litigation expenses. The       
Company has retrospectively adjusted the comparative financial statements of
prior periods to apply this new method of accounting. To make historic      
comparisons clearer, the Company has included a schedule on its website (see
ir.edwards.com) detailing the impact of this change on its 2009-2013        
Consolidated Balance Sheets and Statements of Operations.                   

 
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 foreign exchange fluctuations, as well as
adjustments for discontinued and acquired products and sales reserves
associated with transcatheter heart valve ("THV") product upgrades,
and "excluding 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. Research and Development ("R&D") tax credit,
which was required to be included 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.  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
ad
dition 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: 
Given the magnitude and unusual nature of these special items
relative to the operating results for the periods presented, these
items below have been excluded in non-GAAP net income and earnings
per share. 
THV Sales Return Reserve and Related Costs - In the first quarter of
2014, the Company recorded a sales return reserve and related costs,
primarily related to inventory reserves, of $15.6 million related to
estimated THV product returns expected upon introduction of next
generation THV products. 
Intellectual Property Litigation Expense (Income), net - The Company
incurred intellectual property litigation expenses of $5.5 million
and $5.5 million, in the first quarter of 2014 and 2013,
respectively.  In addition, in the first quarter of 2013, the Company
recorded an $83.6 million gain related to the April 2010 jury award
from Medtronic of damages for infringement of the U.S. Andersen
transcatheter heart valve patent.   
Special Charge - The Company recorded a $7.5 million special charge
in the first quarter of 2014 to settle past and future obligations
related to one of its intellectual property agreements. 
Provision for Income Taxes -  During the first quarter of 2013, the
Company recorded an $8.4 million income tax benefit relating to the
federal R&D tax credit that was extended in 2013 retroactive to the
beginning of 2012.   
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          
                                                                            
RECONCILATION OF GAAP TO NON-GAAP NET INCOME                                
                                                         Three Months Ended 
                                                             March 31,      
                                                        ------------------- 
(in millions, except per share data)                      2014       2013   
                                                        --------   -------- 
                                                                            
GAAP Net Income                                         $   60.3   $  143.9 
    Growth Rate %                                          (58.1%)          
                                                                            
Non-GAAP adjustments: (A)                                                   
                                                                            
  THV sales return reserve and related costs                15.6          - 
  Intellectual property litigation expense (income),                        
   net                                                       5.5      (78.1)
  Special charge                                             7.5          - 
                                                                            
  Provision for income taxes                                                
    Tax effect on reconciling items (B)                     (6.8)      29.3 
    Federal research and development tax credit                -       (8.4)
                                                                            
                                                        --------   -------- 
Non-GAAP Net Income                                     $   82.1   $   86.7 
                                                        ========   ======== 
    Growth Rate %                                           (5.3%)          
                                                                            
RECONCILATION OF GAAP TO NON-GAAP DILUTED EARNINGS PER SHARE                
                                                                            
GAAP Diluted Earnings Per Share                         $   0.56   $   1.24 
    Growth Rate %                                          (54.8%)          
                                                                            
Non-GAAP adjustments: (A), Copyright                                            
  
                                                                            
  THV sales return reserve and related costs            $   0.10          - 
  Intellectual property litigation expense (income),                        
   net                                                      0.04      (0.43)
  Special charge                                            0.06          - 
                                                                            
  Provision for income taxes                                                
    Federal research and development tax credit                -      (0.07)
                                                                            
                                                        --------   -------- 
Non-GAAP Diluted Earnings Per Share                     $   0.76   $   0.74 
                                                        ========   ======== 
    Growth Rate %                                            2.7%           
                                                                            
Note: Numbers may not calculate due to rounding.                            
                                                                            
(A) See description of "Transcatheter Heart Valve ("THV") Sales Return      
Reserve and Related Costs," "Intellectual Property Litigation Expense       
(Income), net," "Special Charge," and "Provision for Income Taxes" on the   
Non-GAAP Financial Information page.                                        
                                                                            
(B) The tax effect on non-GAAP adjustments is calculated based upon the     
impact of the relevant tax jurisdictions' statutory tax rates on the        
Company's estimated annual effective tax rate.                              
                                                                            
Copyright All amounts are tax effected, calculated based upon the impact of the 
  
relevant tax jurisdictions' statutory tax rates on the Company's estimated  
annual effective tax rate.                                                  
                                                        
                    
                                                                            
                                                                            
EDWARDS LIFESCIENCES CORPORATION                                            
Unaudited Reconciliation of GAAP to Non-GAAP Tax Rate                       
                                                                            
RECONCILIATION OF GAAP TO NON-GAAP TAX RATE                                 
                                                          Three Months Ended
                                                            March 31, 2014  
                                                         -------------------
                                                                            
GAAP Tax Rate                                                   22.0%       
                                                                            
Non-GAAP adjustments: (A)                                                   
                                                                            
 THV sales return reserve and related costs                    1.0 pts      
 Intellectual property litigation expense (income), net        0.6 pts      
 Special charge                                               (1.1) pts     
                                                                            
                                                         -------------------
Non-GAAP Tax Rate                                               22.5%       
                                                         ===================
                                                                            
(A) See description of "Transcatheter Heart Valve ("THV") Sales Return      
Reserve and Related Costs," "Intellectual Property Litigation Expense       
(Income), net" and "Special Charge" on the Non-GAAP Financial Information   
page.                                                                       
                                                                            
                                                                            
                                                                            
                                                                            
EDWARDS LIFESCIENCES CORPORATION                                            
Unaudited Reconciliation of Sales by Segments and Product Group             
($in millions)                                                              

 
                                                                          
                                                                          
                                                                          
------------------------------------------------------------------------- 
Sales by                                                    GAAP Growth   
 Segments (QTD)    1Q 2014       1Q 2013        Change         Rate*      
------------------------------------------------------------------------- 
United States   $       222.4 $       227.9 $        (5.5)         (2.4%) 
------------------------------------------------------------------------- 
 Europe                 180.3         154.5          25.8          16.7%  
 Japan                   58.7          60.0          (1.3)         (2.2%) 
 Rest of World           61.0          54.3           6.7          12.3%  
------------------------------------------------------------------------- 
International           300.0         268.8          31.2          11.6%  
------------------------------------------------------------------------- 
Total           $       522.4 $       496.7 $        25.7           5.2%  
------------------------------------------------------------------------- 
 
                                                                            
               --------------------------------------------------           
                     2014 Adjusted            2013 Adjusted                 
----------------------------------------------------------------------------
Sales by          Sales       1Q 2014                  1Q 2013   Underlying 
 Segments (QTD)   Return     Underlying               Underlying   Growth   
                 Reserve       Sales     FX Impact      Sales      Rate *   
----------------------------------------------------------------------------
United States  $       7.1  $     229.5 $         -  $     227.9        0.7%
----------------------------------------------------------------------------
 Europe               (1.0)       179.3         5.0        159.5       12.4%
 Japan                   -         58.7        (7.4)        52.6       11.7%
 Rest of World           -         61.0        (3.8)        50.5       20.8%
----------------------------------------------------------------------------
International         (1.0)       299.0        (6.2)       262.6       13.9%
----------------------------------------------------------------------------
Total          $       6.1  $     528.5 $      (6.2) $     490.5        7.8%
----------------------------------------------------------------------------
                                                                         
                                                                         
                                                                         
------------------------------------------------------------------------ 
Sales by Product                                            GAAP Growth  
 Group (QTD)        1Q 2014       1Q 2013        Change        Rate*     
------------------------------------------------------------------------ 
Surgical Heart                                                           
 Valve Therapy   $       202.6 $       198.1 $         4.5          2.3% 
Transcatheter                                                            
 Heart Valves            189.2         169.7          19.5         11.5% 
Critical Care            130.6         128.9           1.7          1.2% 
------------------------------------------------------------------------ 
Total Sales      $       522.4 $       496.7 $        25.7          5.2% 
------------------------------------------------------------------------ 
 
                                                                            
                ------------------------------------------------            
                     2014 Adjusted            2013 Adjusted                 
----------------------------------------------------------------------------
Sales by Product   Sales      1Q 2014                  1Q 2013   Underlying 
 Group (QTD)       Return    Underlying               Underlying   Growth   
                  Reserve      Sales     FX Impact      Sales      Rate *   
----------------------------------------------------------------------------
Surgical Heart                                                              
 Valve Therapy  $         - $     202.6 $      (3.8) $     194.3        4.3%
Transcatheter                                                               
 Heart Valves           6.1       195.3         1.6        171.3       14.0%
Critical Care             -       130.6        (4.0)       124.9        4.6%
----------------------------------------------------------------------------
Total Sales     $       6.1 $     528.5 $      (6.2) $     490.5        7.8%
----------------------------------------------------------------------------
                                                                            
* 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 
 
 
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