Edwards(US:EW)2025-05-06 20:13Financial Performance - Net sales for the first three months of 2025 were $1.4 billion, an increase of $82.8 million or 6.2% compared to the same period in 2024, driven primarily by TMTT and TAVR products [127]. - Gross profit increased in the three months ended March 31, 2025, with gross profit as a percentage of sales rising due to foreign currency rate fluctuations [128]. - Net sales in the United States reached $838.9 million, a 7.3% increase from $782.1 million in 2024, while total net sales outside the United States were $573.8 million, up 4.8% [132]. - TAVR product sales were $1,046.6 million, a 3.8% increase from $1,007.9 million in 2024, while TMTT sales surged by 58.1% to $115.2 million [133]. Research and Development - R&D expenses decreased due to reduced investments in aortic transcatheter valve innovations, partially offset by increased investments in heart failure management innovations [155]. - The company is committed to developing new technologies for treating both valvular and non-valvular structural heart disease, focusing on innovative products and stakeholder value [129]. Taxation - The effective income tax rate for continuing operations was 16.2% for the three months ended March 31, 2025, compared to 12.5% in 2024, primarily due to an increase in global minimum tax provisions [159]. - The company plans to contest an additional tax claimed by the IRS of approximately $269.3 million related to transfer pricing adjustments for the 2015 through 2017 tax years [165]. - The company received a notice of assessment from the Israel Tax Authority claiming approximately $110.0 million in taxes related to a 2017 transfer of intellectual property [168]. Strategic Initiatives - The company plans to sell a non-core product group in 2025 as part of its strategy to focus on implantable medical innovations for structural heart disease [124]. Cash Flow and Investments - As of March 31, 2025, cash and cash equivalents in the United States were $3.4 billion, and outside the United States were $538.7 million [170]. - Net cash flows provided by operating activities for the three months ended March 31, 2025, were $280.4 million, an increase of $333.9 million compared to the same period last year [178]. - Net cash provided by investing activities for the three months ended March 31, 2025, was $85.3 million, primarily from net proceeds of $198.4 million from investments [179]. - The company has $877.0 million in investments in debt securities as of March 31, 2025, with $119.1 million classified as long-term [184]. Shareholder Actions - The company repurchased 3.4 million shares at an aggregate cost of $306.9 million during the three months ended March 31, 2025, with remaining authority to purchase $1.1 billion of common stock [173]. - Net cash used in financing activities for the three months ended March 31, 2025, was $258.0 million, primarily due to purchases of treasury stock [180]. Acquisitions - The company entered into agreements to acquire multiple medical device companies for a total cash purchase price of $1.5 billion, with $1.1 billion paid upon closing three transactions in 2024 [174]. Credit Facilities - The company has a Five-year Credit Agreement providing for a $750.0 million multi-currency unsecured revolving credit facility, with no amounts outstanding as of March 31, 2025 [171]. - The carrying value of the 2018 Notes was $597.8 million as of March 31, 2025, with no redemptions elected to date [172].