08/20/2024 | Press release | Distributed by Public on 08/20/2024 04:51
Product innovation driving growth across diversified health tech portfolio, including Automated Insulin Delivery, Transcatheter Aortic Valve Replacement, Pulsed Field Cardiac Ablation, Pain Stimulation, and Deep Brain Stimulation
GALWAY, Ireland, Aug. 20, 2024/PRNewswire/ -- Medtronic plc (NYSE: MDT) today announced financial results for its first quarter (Q1) of fiscal year 2025 (FY25), which ended July 26, 2024.Key Highlights
Financial Results
Medtronic reported Q1 worldwide revenue of $7.915 billionand adjusted revenue of $8.004 billion, an increase of 2.8% as reported and 5.3% on an organic basis. Organic revenue growth comparison excludes:
As reported, Q1 GAAP net income and diluted earnings per share (EPS) were $1.042 billionand $0.80, respectively, representing increases of 32% and 36%, respectively. As detailed in the financial schedules included at the end of this release, Q1 non-GAAP net income and non-GAAP diluted EPS were $1.592 billionand $1.23, respectively, representing flat results and an increase of 3%, respectively. Included in Q1 non-GAAP diluted EPS was a -6 centimpact from foreign currency translation. Non-GAAP diluted EPS grew 8% on a constant currency basis.
"We executed, exceeded our commitments, and delivered another good quarter. Our underlying markets are healthy, we're driving operating rigor, and new product innovation is fueling diversified growth across key health tech markets," said Geoff Martha, Medtronic chairman and chief executive officer. "As we deliver innovation and execute on our transformation, we expect this to translate into strong returns for our shareholders."
Cardiovascular Portfolio
The Cardiovascular Portfolio includes the Cardiac Rhythm & Heart Failure (CRHF), Structural Heart & Aortic (SHA), and Coronary & Peripheral Vascular (CPV) divisions. Revenue of $3.007 billionincreased 5.5% as reported and 6.9% organic, with high-single digit increases in CRHF and SHA, and a mid-single digit increase in CPV, all on an organic basis.
Neuroscience Portfolio
The Neuroscience Portfolio includes the Cranial & Spinal Technologies (CST), Specialty Therapies, and Neuromodulation divisions. Revenue of $2.317 billionincreased 4.4% as reported and 5.3% organic, with a low-double digits increase in Neuromodulation, a mid-single digit increase in CST, and a low-single digit increase in Specialty Therapies, all on an organic basis.
Medical Surgical Portfolio
The Medical Surgical Portfolio includes the Surgical & Endoscopy (SE) and the Acute Care & Monitoring (ACM) divisions. Revenue of $1.996 billiondecreased 0.4% as reported and increased 1.0% organic, with a low-single digit increase in SE and flat result in ACM, both on an organic basis.
Diabetes
Revenue of $647 millionincreased 11.8% as reported and 12.6% organic.
Guidance
The company today raised its FY25 revenue growth and EPS guidance.
The company raised its FY25 organic revenue growth guidance to 4.5% to 5% versus the prior range of 4% to 5%. The organic revenue growth guidance excludes the impact of foreign currency and revenue reported as Other. Including Other revenue and the impact of foreign currency exchange, if recent foreign currency exchange rates hold, FY25 revenue growth on an adjusted basis would be in the range of 3.4% to 4.3%.
The company raised its FY25 diluted non-GAAP EPS guidance to the new range of $5.42to $5.50versus the prior $5.40to $5.50. This includes an estimated -5% impact from foreign currency exchange based on recent rates, unchanged from the prior guidance. The company's guidance represents FY25 diluted non-GAAP EPS growth in the range of 4 to 6%.
"Overall revenue outperformance flowed through to the bottom line, with adjusted EPS ahead of expectations," said Gary Corona, Medtronic interim chief financial officer. "We're raising our guidance today as we expect to sustain growth from new product introductions, continue to make the investments to support those launches, and deliver on our commitment to restore earnings power."
Video Webcast Information
Medtronic will host a video webcast today, August 20, at 8:00 a.m. EDT(7:00 a.m. CDT) to provide information about its businesses for the public, investors, analysts, and news media. This webcast can be accessed by clicking on the Events icon at investorrelations.medtronic.com, and this earnings release will be archived at news.medtronic.com. Within 24 hours of the webcast, a replay of the webcast and transcript of the company's prepared remarks will be available by clicking on the Events icon at investorrelations.medtronic.com.
Medtronic plans to report its FY25 second, third, and fourth quarter results on November 19, 2024, February 18, 2025, and Wednesday, May 21, 2025, respectively. Confirmation and additional details will be provided closer to the specific event.
Financial Schedules and Earnings Presentation
The first quarter financial schedules and non-GAAP reconciliations can be viewed by clicking on the Investor Events link at investorrelations.medtronic.com. To view a printable PDF of the financial schedules and non-GAAP reconciliations, click here. To view the first quarter earnings presentation, click here.
MEDTRONIC PLC WORLD WIDE REVENUE(1) (Unaudited) |
|||||||||||||
FIRST QUARTER |
|||||||||||||
REPORTED |
ORGANIC |
||||||||||||
(in millions) |
FY25 |
FY24 |
Growth |
Currency |
Adjusted |
Adjusted |
Growth |
||||||
Cardiovascular |
$ 3,007 |
$ 2,850 |
5.5 % |
$ (39) |
$ 3,046 |
$ 2,850 |
6.9 % |
||||||
Cardiac Rhythm & Heart Failure |
1,535 |
1,446 |
6.2 |
(19) |
1,555 |
1,446 |
7.5 |
||||||
Structural Heart & Aortic |
856 |
814 |
5.1 |
(12) |
868 |
814 |
6.6 |
||||||
Coronary & Peripheral Vascular |
616 |
589 |
4.5 |
(8) |
624 |
589 |
5.8 |
||||||
Neuroscience |
2,317 |
2,219 |
4.4 |
(18) |
2,336 |
2,219 |
5.3 |
||||||
Cranial & Spinal Technologies |
1,147 |
1,103 |
4.0 |
(9) |
1,156 |
1,103 |
4.8 |
||||||
Specialty Therapies |
713 |
695 |
2.5 |
(7) |
719 |
695 |
3.4 |
||||||
Neuromodulation |
457 |
420 |
8.9 |
(3) |
460 |
420 |
9.6 |
||||||
Medical Surgical |
1,996 |
2,005 |
(0.4) |
(29) |
2,024 |
2,005 |
1.0 |
||||||
Surgical & Endoscopy |
1,544 |
1,546 |
(0.1) |
(22) |
1,566 |
1,546 |
1.3 |
||||||
Acute Care & Monitoring |
452 |
459 |
(1.5) |
(6) |
458 |
459 |
(0.1) |
||||||
Diabetes |
647 |
578 |
11.8 |
(4) |
651 |
578 |
12.6 |
||||||
Total Reportable Segments |
7,967 |
7,652 |
4.1 |
(90) |
8,057 |
7,652 |
5.3 |
||||||
Other(2) |
(52) |
50 |
(203.7) |
(2) |
- |
- |
- |
||||||
TOTAL |
$ 7,915 |
$ 7,702 |
2.8 % |
$ (93) |
$ 8,057 |
$ 7,652 |
5.3 % |
(1) |
The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. |
(2) |
Includes historical operations and ongoing transition agreements from businesses the Company has exited or divested, and specifically for the first quarter of fiscal year 2025, incremental Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court of Italy relating to certain prior years since 2015. |
(3) |
The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates. |
(4) |
The three months ended July 26, 2024 excludes $142 million of revenue adjustments related to $90 million of incremental Italian payback accruals further described in note (2), $38 million of inorganic revenue related to the transition activity noted in (2), and $90 million of unfavorable currency impact on the remaining segments. The three months ended July 28, 2023 excludes $50 million of inorganic revenue related to the transition activity noted in (2). |
MEDTRONIC PLC U.S.(1)(2) REVENUE (Unaudited) |
|||||||||||
FIRST QUARTER |
|||||||||||
REPORTED |
ORGANIC |
||||||||||
(in millions) |
FY25 |
FY24 |
Growth |
Adjusted |
Adjusted |
Growth |
|||||
Cardiovascular |
$ 1,403 |
$ 1,350 |
3.9 % |
$ 1,403 |
$ 1,350 |
3.9 % |
|||||
Cardiac Rhythm & Heart Failure |
766 |
720 |
6.4 |
766 |
720 |
6.4 |
|||||
Structural Heart & Aortic |
368 |
357 |
3.3 |
368 |
357 |
3.3 |
|||||
Coronary & Peripheral Vascular |
268 |
273 |
(1.6) |
268 |
273 |
(1.6) |
|||||
Neuroscience |
1,565 |
1,497 |
4.5 |
1,565 |
1,497 |
4.5 |
|||||
Cranial & Spinal Technologies |
855 |
821 |
4.2 |
855 |
821 |
4.2 |
|||||
Specialty Therapies |
398 |
392 |
1.5 |
398 |
392 |
1.5 |
|||||
Neuromodulation |
312 |
284 |
9.8 |
312 |
284 |
9.8 |
|||||
Medical Surgical |
881 |
867 |
1.6 |
881 |
867 |
1.6 |
|||||
Surgical & Endoscopy |
630 |
619 |
1.6 |
630 |
619 |
1.6 |
|||||
Acute Care & Monitoring |
251 |
248 |
1.4 |
251 |
248 |
1.4 |
|||||
Diabetes |
215 |
188 |
14.3 |
215 |
188 |
14.3 |
|||||
Total Reportable Segments |
4,064 |
3,903 |
4.1 |
4,064 |
3,903 |
4.1 |
|||||
Other(3) |
18 |
22 |
(15.6) |
- |
- |
- |
|||||
TOTAL |
$ 4,082 |
$ 3,924 |
4.0 % |
$ 4,064 |
$ 3,903 |
4.1 % |
(1) |
U.S. includes the United States and U.S. territories. |
(2) |
The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. |
(3) |
Includes historical operations and ongoing transition agreements from businesses the Company has exited or divested. |
MEDTRONIC PLC INTERNATIONAL REVENUE(1) (Unaudited) |
|||||||||||||
FIRST QUARTER |
|||||||||||||
REPORTED |
ORGANIC |
||||||||||||
(in millions) |
FY25 |
FY24 |
Growth |
Currency |
Adjusted |
Adjusted |
Growth |
||||||
Cardiovascular |
$ 1,604 |
$ 1,500 |
6.9 % |
$ (39) |
$ 1,643 |
$ 1,500 |
9.5 % |
||||||
Cardiac Rhythm & Heart Failure |
769 |
726 |
5.9 |
(19) |
789 |
726 |
8.6 |
||||||
Structural Heart & Aortic |
487 |
457 |
6.5 |
(12) |
499 |
457 |
9.2 |
||||||
Coronary & Peripheral Vascular |
347 |
317 |
9.7 |
(8) |
355 |
317 |
12.2 |
||||||
Neuroscience |
752 |
721 |
4.3 |
(18) |
770 |
721 |
6.8 |
||||||
Cranial & Spinal Technologies |
292 |
282 |
3.4 |
(9) |
301 |
282 |
6.6 |
||||||
Specialty Therapies |
314 |
303 |
3.8 |
(7) |
321 |
303 |
5.9 |
||||||
Neuromodulation |
146 |
136 |
7.2 |
(3) |
149 |
136 |
9.4 |
||||||
Medical Surgical |
1,115 |
1,137 |
(2.0) |
(29) |
1,143 |
1,137 |
0.5 |
||||||
Surgical & Endoscopy |
915 |
926 |
(1.3) |
(22) |
937 |
926 |
1.1 |
||||||
Acute Care & Monitoring |
200 |
211 |
(5.0) |
(6) |
207 |
211 |
(2.0) |
||||||
Diabetes |
432 |
390 |
10.7 |
(4) |
436 |
390 |
11.7 |
||||||
Total Reportable Segments |
3,903 |
3,749 |
4.1 |
(90) |
3,993 |
3,749 |
6.5 |
||||||
Other(2) |
(70) |
28 |
(347.5) |
(2) |
- |
- |
- |
||||||
TOTAL |
$ 3,832 |
$ 3,777 |
1.5 % |
$ (93) |
$ 3,993 |
$ 3,749 |
6.5 % |
(1) |
The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. |
(2) |
Includes historical operations and ongoing transition agreements from businesses the Company has exited or divested, and specifically for the first quarter of fiscal year 2025, incremental Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court of Italy relating to certain prior years since 2015. |
(3) |
The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates. |
(4) |
The three months ended July 26, 2024 excludes $161 million of revenue adjustments related to $90 million of incremental Italian payback accruals further described in note (2), $19 million of inorganic revenue related to the transition activity noted in (2), and $90 million of unfavorable currency impact on the remaining segments. The three months ended July 28, 2023 excludes $28 million of inorganic revenue related to the transition activity noted in (2). |
MEDTRONIC PLC CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
|||
Three months ended |
|||
(in millions, except per share data) |
July 26, 2024 |
July 28, 2023 |
|
Net sales |
$ 7,915 |
$ 7,702 |
|
Costs and expenses: |
|||
Cost of products sold, excluding amortization of intangible assets |
2,761 |
2,628 |
|
Research and development expense |
676 |
668 |
|
Selling, general, and administrative expense |
2,655 |
2,613 |
|
Amortization of intangible assets |
414 |
429 |
|
Restructuring charges, net |
47 |
54 |
|
Certain litigation charges, net |
81 |
40 |
|
Other operating expense, net |
1 |
1 |
|
Operating profit |
1,278 |
1,268 |
|
Other non-operating income, net |
(157) |
(76) |
|
Interest expense, net |
167 |
148 |
|
Income before income taxes |
1,268 |
1,196 |
|
Income tax provision |
220 |
400 |
|
Net income |
1,049 |
797 |
|
Net income attributable to noncontrolling interests |
(6) |
(6) |
|
Net income attributable to Medtronic |
$ 1,042 |
$ 791 |
|
Basic earnings per share |
$ 0.81 |
$ 0.59 |
|
Diluted earnings per share |
$ 0.80 |
$ 0.59 |
|
Basic weighted average shares outstanding |
1,293.3 |
1,330.5 |
|
Diluted weighted average shares outstanding |
1,296.5 |
1,333.8 |
The data in the schedule above has been intentionally rounded to the nearest million. |
MEDTRONIC PLC GAAP TO NON-GAAP RECONCILIATIONS(1) (Unaudited) |
|||||||||||||||||
Three months ended July 26, 2024 |
|||||||||||||||||
(in millions, except per share data) |
Net Sales |
Cost of |
Gross |
Operating |
Operating |
Income |
Net Income |
Diluted EPS |
Effective |
||||||||
GAAP |
$ 7,915 |
$ 2,761 |
65.1 % |
$ 1,278 |
16.1 % |
$ 1,268 |
$ 1,042 |
$ 0.80 |
17.4 % |
||||||||
Non-GAAP Adjustments: |
|||||||||||||||||
Amortization of intangible assets |
- |
- |
- |
414 |
5.1 |
414 |
340 |
0.26 |
18.1 |
||||||||
Restructuring and associated costs(2) |
- |
(9) |
0.1 |
62 |
0.8 |
62 |
51 |
0.04 |
19.4 |
||||||||
Acquisition and divestiture-related items(3) |
- |
(10) |
0.1 |
12 |
0.1 |
12 |
11 |
0.01 |
8.3 |
||||||||
Certain litigation charges, net |
- |
- |
- |
81 |
1.0 |
81 |
68 |
0.05 |
16.0 |
||||||||
(Gain)/loss on minority investments(4) |
- |
- |
- |
- |
- |
(17) |
(17) |
(0.01) |
- |
||||||||
Medical device regulations(5) |
- |
(11) |
0.1 |
14 |
0.2 |
14 |
11 |
0.01 |
21.4 |
||||||||
Other(6) |
90 |
- |
0.6 |
90 |
1.1 |
90 |
70 |
0.05 |
22.2 |
||||||||
Certain tax adjustments, net |
- |
- |
- |
- |
- |
- |
17 |
0.01 |
- |
||||||||
Non-GAAP |
$ 8,004 |
$ 2,730 |
65.9 % |
$ 1,953 |
24.4 % |
$ 1,925 |
$ 1,592 |
$ 1.23 |
17.0 % |
||||||||
Currency impact |
91 |
(31) |
0.8 |
100 |
1.0 |
0.06 |
|||||||||||
Currency Adjusted |
$ 8,095 |
$ 2,699 |
66.7 % |
$ 2,053 |
25.4 % |
$ 1.29 |
|||||||||||
Three months ended July 28, 2023 |
|||||||||||||||||
(in millions, except per share data) |
Net Sales |
Cost of |
Gross |
Operating |
Operating |
Income |
Net Income |
Diluted EPS |
Effective |
||||||||
GAAP |
$ 7,702 |
$ 2,628 |
65.9 % |
$ 1,268 |
16.5 % |
$ 1,196 |
$ 791 |
$ 0.59 |
33.4 % |
||||||||
Non-GAAP Adjustments: |
|||||||||||||||||
Amortization of intangible assets |
- |
- |
- |
429 |
5.6 |
429 |
364 |
0.27 |
15.2 |
||||||||
Restructuring and associated costs(2) |
- |
(16) |
0.2 |
91 |
1.2 |
91 |
76 |
0.06 |
16.5 |
||||||||
Acquisition and divestiture-related items(3) |
- |
(6) |
0.1 |
50 |
0.6 |
50 |
46 |
0.03 |
6.0 |
||||||||
Certain litigation charges, net |
- |
- |
- |
40 |
0.5 |
40 |
31 |
0.02 |
22.5 |
||||||||
(Gain)/loss on minority investments(4) |
- |
- |
- |
- |
- |
64 |
64 |
0.05 |
- |
||||||||
Medical device regulations(5) |
- |
(21) |
0.3 |
31 |
0.4 |
31 |
25 |
0.02 |
22.6 |
||||||||
Certain tax adjustments, net(7) |
- |
- |
- |
- |
- |
- |
198 |
0.15 |
- |
||||||||
Non-GAAP |
$ 7,702 |
$ 2,586 |
66.4 % |
$ 1,909 |
24.8 % |
$ 1,902 |
$ 1,596 |
$ 1.20 |
15.8 % |
See description of non-GAAP financial measures contained in the press release dated August 20, 2024. |
|
(1) |
The data in this schedule has been intentionally rounded to the nearest million or $0.01 for EPS figures, and, therefore, may not sum. |
(2) |
Associated and other costs primarily include salaries and wages for employees supporting the restructuring activities, consulting expenses, and asset write-offs. |
(3) |
The charges primarily include business combination costs, changes in fair value of contingent consideration, and exit of business related charges. |
(4) |
We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations. |
(5) |
The charges represent incremental costs of complying with the new European Union (E.U.) medical device regulations for previously registered products and primarily include charges for contractors supporting the project and other direct third-party expenses. We consider these costs to be duplicative of previously incurred costs and/or one-time costs, which are limited to a specific time period. |
(6) |
Reflects the recognition of incremental Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court of Italy relating to certain prior years since 2015. |
(7) |
The charge relates to an income tax reserve adjustment associated with the June 2023 Israeli Central-Lod District Court decision in Medtronic Ventor Technologies Ltd v. Kfar Saba Assessing Office and amortization of previously established deferred tax assets from intercompany intellectual property transactions. |
MEDTRONIC PLC GAAP TO NON-GAAP RECONCILIATIONS(1) (Unaudited) |
|||||||||||||||
Three months ended July 26, 2024 |
|||||||||||||||
(in millions) |
Net Sales |
SG&A |
SG&A Expense |
R&D |
R&D Expense |
Other Operating |
Other Operating |
Other |
|||||||
GAAP |
$ 7,915 |
$ 2,655 |
33.5 % |
$ 676 |
8.5 % |
$ 1 |
- % |
$ (157) |
|||||||
Non-GAAP Adjustments: |
|||||||||||||||
Restructuring and associated costs(2) |
- |
(5) |
(0.2) |
- |
- |
- |
- |
- |
|||||||
Acquisition and divestiture-related items(3) |
- |
(7) |
(0.3) |
- |
- |
6 |
0.1 |
- |
|||||||
Medical device regulations(4) |
- |
- |
- |
(3) |
- |
- |
- |
- |
|||||||
Other(5) |
90 |
- |
- |
- |
- |
- |
- |
- |
|||||||
(Gain)/loss on minority investments(6) |
- |
- |
- |
- |
- |
- |
- |
17 |
|||||||
Non-GAAP |
$ 8,004 |
$ 2,642 |
33.0 % |
$ 673 |
8.4 % |
$ 7 |
0.1 % |
$ (140) |
See description of non-GAAP financial measures contained in the press release dated August 20, 2024. |
|
(1) |
The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum. |
(2) |
Associated and other costs primarily include salaries and wages for employees supporting the restructuring activities, consulting expenses, and asset write-offs. |
(3) |
The charges primarily include business combination costs, changes in fair value of contingent consideration, and exit of business related charges. |
(4) |
The charges represent incremental costs of complying with the new European Union medical device regulations for previously registered products and primarily include charges for contractors supporting the project and other direct third-party expenses. We consider these costs to be duplicative of previously incurred costs and/or one-time costs, which are limited to a specific time period. |
(5) |
Reflects the recognition of incremental Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court of Italy relating to certain prior years since 2015. |
(6) |
We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations. |
MEDTRONIC PLC GAAP TO NON-GAAP RECONCILIATIONS(1) (Unaudited) |
|||
Three months ended |
|||
(in millions) |
July 26, 2024 |
July 28, 2023 |
|
Net cash provided by operating activities |
$ 986 |
$ 875 |
|
Additions to property, plant, and equipment |
(520) |
(354) |
|
Free Cash Flow(2) |
$ 466 |
$ 521 |
See description of non-GAAP financial measures contained in the press release dated August 20, 2024. |
|
(1) |
The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum. |
(2) |
Free cash flow represents operating cash flows less property, plant, and equipment additions. |
MEDTRONIC PLC CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||
(in millions) |
July 26, 2024 |
April 26, 2024 |
||
ASSETS |
||||
Current assets: |
||||
Cash and cash equivalents |
$ 1,311 |
$ 1,284 |
||
Investments |
6,532 |
6,721 |
||
Accounts receivable, less allowances and credit losses of $170 and $173, respectively |
6,011 |
6,128 |
||
Inventories |
5,414 |
5,217 |
||
Other current assets |
2,679 |
2,584 |
||
Total current assets |
21,947 |
21,935 |
||
Property, plant, and equipment, net |
6,282 |
6,131 |
||
Goodwill |
41,084 |
40,986 |
||
Other intangible assets, net |
12,819 |
13,225 |
||
Tax assets |
3,554 |
3,657 |
||
Other assets |
4,062 |
4,047 |
||
Total assets |
$ 89,749 |
$ 89,981 |
||
LIABILITIES AND EQUITY |
||||
Current liabilities: |
||||
Current debt obligations |
$ 1,553 |
$ 1,092 |
||
Accounts payable |
2,291 |
2,410 |
||
Accrued compensation |
1,776 |
2,375 |
||
Accrued income taxes |
1,063 |
1,330 |
||
Other accrued expenses |
3,604 |
3,582 |
||
Total current liabilities |
10,287 |
10,789 |
||
Long-term debt |
26,312 |
23,932 |
||
Accrued compensation and retirement benefits |
1,107 |
1,101 |
||
Accrued income taxes |
1,917 |
1,859 |
||
Deferred tax liabilities |
496 |
515 |
||
Other liabilities |
1,470 |
1,365 |
||
Total liabilities |
41,589 |
39,561 |
||
Commitments and contingencies |
||||
Shareholders' equity: |
||||
Ordinary shares- par value $0.0001, 2.6 billion shares authorized, 1,282,494,588 and |
- |
- |
||
Additional paid-in capital |
20,810 |
23,129 |
||
Retained earnings |
30,547 |
30,403 |
||
Accumulated other comprehensive loss |
(3,410) |
(3,318) |
||
Total shareholders' equity |
47,947 |
50,214 |
||
Noncontrolling interests |
213 |
206 |
||
Total equity |
48,160 |
50,420 |
||
Total liabilities and equity |
$ 89,749 |
$ 89,981 |
The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum. |
MEDTRONIC PLC CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
|||
Three months ended |
|||
(in millions) |
July 26, 2024 |
July 28, 2023 |
|
Operating Activities: |
|||
Net income |
$ 1,049 |
$ 797 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|||
Depreciation and amortization |
662 |
672 |
|
Provision for credit losses |
18 |
21 |
|
Deferred income taxes |
88 |
- |
|
Stock-based compensation |
83 |
73 |
|
Other, net |
(9) |
135 |
|
Change in operating assets and liabilities, net of acquisitions and divestitures: |
|||
Accounts receivable, net |
110 |
164 |
|
Inventories |
(217) |
(410) |
|
Accounts payable and accrued liabilities |
(604) |
(673) |
|
Other operating assets and liabilities |
(194) |
96 |
|
Net cash provided by operating activities |
986 |
875 |
|
Investing Activities: |
|||
Additions to property, plant, and equipment |
(520) |
(354) |
|
Purchases of investments |
(1,879) |
(1,916) |
|
Sales and maturities of investments |
2,157 |
1,748 |
|
Other investing activities, net |
(17) |
(17) |
|
Net cash used in investing activities |
(259) |
(539) |
|
Financing Activities: |
|||
Change in current debt obligations, net |
(624) |
500 |
|
Issuance of long-term debt |
3,209 |
- |
|
Dividends to shareholders |
(898) |
(918) |
|
Issuance of ordinary shares |
89 |
77 |
|
Repurchase of ordinary shares |
(2,492) |
(152) |
|
Other financing activities |
(15) |
(8) |
|
Net cash used in financing activities |
(731) |
(501) |
|
Effect of exchange rate changes on cash and cash equivalents |
31 |
(39) |
|
Net change in cash and cash equivalents |
27 |
(204) |
|
Cash and cash equivalents at beginning of period |
1,284 |
1,543 |
|
Cash and cash equivalents at end of period |
$ 1,311 |
$ 1,339 |
|
Supplemental Cash Flow Information |
|||
Cash paid for: |
|||
Income taxes |
$ 394 |
$ 117 |
|
Interest |
119 |
84 |
The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum. |
About Medtronic
Bold thinking. Bolder actions. We are Medtronic. Medtronic plc, headquartered in Galway, Ireland, is the leading global healthcare technology company that boldly attacks the most challenging health problems facing humanity by searching out and finding solutions. Our Mission - to alleviate pain, restore health, and extend life - unites a global team of 95,000+ passionate people across more than 150 countries. Our technologies and therapies treat 70 health conditions and include cardiac devices, surgical robotics, insulin pumps, surgical tools, patient monitoring systems, and more. Powered by our diverse knowledge, insatiable curiosity, and desire to help all those who need it, we deliver innovative technologies that transform the lives of two people every second, every hour, every day. Expect more from us as we empower insight-driven care, experiences that put people first, and better outcomes for our world. In everything we do, we are engineering the extraordinary. For more information on Medtronic (NYSE:MDT), visit www.Medtronic.com and follow on LinkedIn.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties, including risks related to competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products, government regulation, geopolitical conflicts, general economic conditions, and other risks and uncertainties described in the company's periodic reports on file with the U.S. Securities and Exchange Commission including the most recent Annual Report on Form 10-K of the company. In some cases, you can identify these statements by forward-looking words or expressions, such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "looking ahead," "may," "plan," "possible," "potential," "project," "should," "going to," "will," and similar words or expressions, the negative or plural of such words or expressions and other comparable terminology. Actual results may differ materially from anticipated results. Medtronic does not undertake to update its forward-looking statements or any of the information contained in this press release, including to reflect future events or circumstances.
NON-GAAP FINANCIAL MEASURES
This press release contains financial measures, including adjusted net income, adjusted diluted EPS, and organic revenue, which are considered "non-GAAP" financial measures under applicable SEC rules and regulations. References to quarterly or annual figures increasing, decreasing or remaining flat are in comparison to fiscal year 2024.
Medtronic management believes that non-GAAP financial measures provide information useful to investors in understanding the company's underlying operational performance and trends and to facilitate comparisons with the performance of other companies in the med tech industry. Non-GAAP net income and diluted EPS exclude the effect of certain charges or gains that contribute to or reduce earnings but that result from transactions or events that management believes may or may not recur with similar materiality or impact to operations in future periods (Non-GAAP Adjustments). Medtronic generally uses non-GAAP financial measures to facilitate management's review of the operational performance of the company and as a basis for strategic planning. Non-GAAP financial measures should be considered supplemental to and not a substitute for financial information prepared in accordance with U.S. generally accepted accounting principles (GAAP), and investors are cautioned that Medtronic may calculate non-GAAP financial measures in a way that is different from other companies. Management strongly encourages investors to review the company's consolidated financial statements and publicly filed reports in their entirety. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial schedules accompanying this press release.
Medtronic calculates forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, forward-looking organic revenue growth guidance excludes the impact of foreign currency fluctuations, as well as significant acquisitions or divestitures. Forward-looking diluted non-GAAP EPS guidance also excludes other potential charges or gains that would be recorded as Non-GAAP Adjustments to earnings during the fiscal year. Medtronic does not attempt to provide reconciliations of forward-looking non-GAAP EPS guidance to projected GAAP EPS guidance because the combined impact and timing of recognition of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance.
Contacts: |
|
Erika Winkels |
Ryan Weispfenning |
Public Relations |
Investor Relations |
+1-763-526-8478 |
+1-763-505-4626 |
SOURCE Medtronic plc