DUBLIN, May 27, 2021 /CNW/ -- Medtronic plc
(NYSE:MDT) today announced financial results for its fourth quarter
and fiscal year 2021, which ended April 30,
2021. The company reported fourth quarter worldwide revenue
of $8.188 billion, an increase of 37
percent as reported and 32 percent on an organic basis, which
adjusts for the $241 million benefit
of foreign currency translation. The company's fourth quarter
results reflect a strong recovery from the impact of the COVID-19
pandemic on elective procedures that the company experienced in
April 2020. Unless otherwise stated, all quarterly revenue
growth rates in this press release are stated on an organic
basis, which adjusts for the impact of foreign currency
translation.
As reported, fourth quarter GAAP net income and diluted earnings
per share (EPS) were $1.361 billion
and $1.00, respectively. As detailed
in the financial schedules included through the link at the end of
this release, fourth quarter non-GAAP net income and non-GAAP
diluted EPS were $2.038 billion and
$1.50, respectively, increases of 162
percent and 159 percent, respectively. Adjusting for the negative
4 cent impact from foreign currency,
fourth quarter non-GAAP diluted EPS increased 166 percent.
Fourth quarter U.S. revenue of $4.182
billion represented 51 percent of company revenue and
increased 47 percent. Non-U.S. developed market revenue of
$2.672 billion represented 33 percent
of company revenue and increased 20 percent as reported and 11
percent organic. Emerging Markets revenue of $1.334 billion represented 16 percent of company
revenue and increased 44 percent as reported and 41 percent
organic.
Medtronic's fiscal year 2021 revenue of $30.117 billion increased 4 percent as
reported or approximately 2 percent on an organic basis, which
adjusts for the $331 million benefit
of foreign currency translation, the $15
million inorganic benefit of the company's acquisition of
Titan Spine in the Cranial & Spinal Technologies division in
the Neuroscience Portfolio, and the approximate $360 to $390
million benefit the company received from an extra week in
its first quarter compared to the first quarter of fiscal year
2020. Unless otherwise stated, all annual revenue growth rates in
this press release are stated on an organic basis, which adjusts
for the impact of foreign currency translation, the inorganic
benefit of Titan Spine, and the estimated benefit of the extra
week.
As reported, fiscal year 2021 net earnings were $3.606 billion or $2.66 per diluted share. As detailed in the link
at the end of this release, fiscal year 2021 non-GAAP earnings and
diluted EPS were $6.005 billion and
$4.44, respectively, both decreases
of 3 percent. Adjusting for the negative 22
cent impact from foreign currency, fiscal year 2021 non-GAAP
diluted EPS increased 2 percent.
Fiscal year 2021 cash flow from operations was $6.240 billion. Fiscal year 2021 free cash flow
was $4.885 billion, representing free
cash flow conversion from non-GAAP net earnings of 81 percent.
"We reported a strong end to our fiscal year, with our fourth
quarter results demonstrating continued momentum. Our recovery
improved throughout the quarter, with most of our markets returning
to near normal, pre-COVID growth rates," said Geoff Martha, Medtronic chairman and chief
executive officer. "In addition to supporting our employees,
customers, and communities during the pandemic, we accomplished
important milestones, including launching new products, investing
in our pipeline, and changing our operating model, just to name a
few. As we look ahead, these actions set us up to drive accelerated
revenue growth in the year ahead and over the long term."
Cardiovascular Portfolio
The Cardiovascular Portfolio,
formerly reported as the Cardiac and Vascular Group (CVG), includes
the Cardiac Rhythm & Heart Failure (CRHF), Structural Heart
& Aortic (SHA), and Coronary & Peripheral Vascular (CPV)
divisions. Cardiovascular fiscal year 2021 revenue of $10.772 billion increased 2.9 percent as reported
and was approximately flat organic. Cardiovascular fourth quarter
revenue of $2.908 billion increased
45 percent as reported and 41 percent organic, driven by
high-fifties organic growth in CRHF and mid-twenties organic growth
in both SHA and CPV.
- Cardiac Rhythm & Heart Failure fourth quarter
revenue of $1.539 billion increased
64 percent as reported and 59 percent organic. Cardiac Rhythm
Management revenue increased in the mid-fifties, driven by
mid-seventies growth in Leadless Pacemakers on the continued global
adoption of the Micra™ transcatheter pacing system. Cardiac
Ablation Solutions revenue more than doubled, with strong growth in
Arctic Front Advance™ cryoballoon catheters and consoles.
Cardiovascular Diagnostics revenue grew in the mid-eighties on
procedure volume recovery. Mechanical Circulatory Support grew in
the mid-teens.
- Structural Heart & Aortic fourth quarter revenue of
$744 million increased 30 percent as
reported and 25 percent organic. Structural Heart grew in the
low-fifties, driven by low-fifties growth in transcatheter aortic
valves (TAVR), including low-nineties TAVR growth in the United States. Cardiac Surgery grew in the
low-double digits, with broad based growth across the business.
Aortic grew in the low-single digits, as the company experienced
the financial impact of the previously announced global recall of
the Valiant Navion™ thoracic stent graft system.
- Coronary & Peripheral Vascular fourth quarter
revenue of $624 million increased 27
percent as reported and 24 percent organic. Coronary & Renal
Denervation grew in the mid-teens, including mid-teens growth in
drug-eluting stents (DES). Peripheral Vascular Health grew in the
mid-thirties, with mid-eighties growth in VenaSeal™ closure systems
and low-thirties growth in IN.PACT™ drug-coated balloons.
Medical Surgical Portfolio
The Medical Surgical
Portfolio, formerly reported as the Minimally Invasive Therapies
Group (MITG), includes the Surgical Innovations (SI) and the
Respiratory, Gastrointestinal & Renal (RGR) divisions. Medical
Surgical fiscal year 2021 revenue of $8.737
billion increased 4.6 percent as reported and in the
low-single digits organic. Medical Surgical fourth quarter revenue
of $2.338 billion increased 21
percent as reported and 17 percent organic, with high-twenties
organic growth in SI and low-single digit organic growth in
RGR.
- Surgical Innovations fourth quarter revenue of
$1.542 billion increased 32 percent
as reported and 27 percent organic. The division had low-thirties
growth in both Advanced Stapling and Vessel Sealing, driven by the
continued adoption of the company's Tri-Staple™, LigaSure™, and
Sonicision™ technologies. Surgical Robotics had first revenue from
Hugo™ robotic-assisted surgery system placements at hospitals
outside the U.S. during the quarter. These systems will collect
clinical data to support regulatory approvals around the
world.
- Respiratory, Gastrointestinal & Renal fourth quarter
revenue of $796 million increased 4
percent as reported and 1 percent organic. Patient Monitoring
increased in the mid-single digits, with high-single digit growth
in the company's Nellcor™ pulse oximetry sensors. Respiratory
Interventions decreased in the high-teens, with sales of
ventilators declining in the high-twenties as demand, particularly
in developed markets, is returning to pre-pandemic levels.
Gastrointestinal revenue increased in the high-forties, with
broad-based growth across the portfolio on procedure recovery.
Renal Care Solutions increased in the mid-single digits on strong
growth in renal access products.
Neuroscience Portfolio
The Neuroscience Portfolio,
formerly reported as the Restorative Therapies Group (RTG),
includes the Cranial & Spinal Technologies (CST), Specialty
Therapies, and Neuromodulation divisions. Neuroscience fiscal year
2021 revenue of $8.195 billion
increased 6.1 percent as reported and in the mid-single digits
organic. Neuroscience fourth quarter revenue of $2.295 billion increased 54 percent as reported
and 51 percent organic, with high-forties growth in CST,
low-fifties growth in Specialty Therapies, and low-sixties growth
in Neuromodulation, all on an organic basis.
- Cranial & Spinal Technologies fourth quarter revenue
of $1.192 billion increased 50
percent as reported and 47 percent organic. Spine & Biologics,
as well as Neurosurgery grew in the high-forties, with strong sales
of spine implants utilizing Titan nanoLOCK™ surface technology, as
well as record sales of StealthStation™ navigation, O-arm™ imaging
systems, Midas Rex™ capital, and advanced energy products. CST also
delivered strong growth in Mazor™ robotics with the launch of Mazor
5.0, utilizing the company's Midas Rex™ drills, navigated disc
prep, and interbodies with the Mazor™ robotic guidance system.
- Specialty Therapies fourth quarter revenue of
$654 million increased 56 percent as
reported and 52 percent organic. Neurovascular increased in the
low-twenties and ENT increased in the mid-forties. Pelvic Health
increased 165%, driven by continued strong adoption of the
InterStim™ Micro sacral neuromodulation system.
- Neuromodulation fourth quarter revenue of $449 million increased 65 percent as reported and
61 percent organic. Pain Stim & Early Interventions increased
in the mid-seventies, with low-seventies growth in spinal cord
stimulation on strong uptake of Intellis™ with DTM™ SCS therapy.
Brain Modulation increased in the high-fifties, driven by the
launch of the Percept™ PC deep brain stimulation system.
Interventional grew in the low-forties, and Targeted Drug Delivery
increased in the mid-sixties.
Diabetes
Diabetes fiscal year 2021 revenue of
$2.413 billion increased 1.9 percent
as reported and was approximately flat organic. Diabetes fourth
quarter revenue of $647 million
increased 14 percent as reported and 9 percent organic. Diabetes
quarterly revenue performance was driven by low-sixties growth in
durable pumps on the continued launches of the MiniMed™ 780G system
in international markets and the MiniMed™ 770G system in the U.S.
This was offset by high-single digit declines in consumables, while
continuous glucose monitoring (CGM) sales increased in the
mid-single digits.
Guidance
The company today issued its fiscal year 2022
revenue and EPS growth guidance.
The company expects revenue growth in its fiscal year 2022 to
approximate 9 percent on an organic basis. If current exchange
rates hold, revenue growth in fiscal year 2022 would be positively
affected by approximately $400 to
$500 million.
In fiscal year 2022, the company expects diluted non-GAAP EPS in
the range of $5.60 to $5.75, including an estimated 10 to 15 cent positive impact from foreign currency
based on current exchange rates.
"Our fiscal 2022 revenue guidance that we are issuing for the
first time today is about a point higher than Street estimates, as
we anticipate strong organic revenue growth driven by new product
launches and end market recovery from the impact of the
pandemic," said Karen Parkhill,
Medtronic chief financial officer. "At the same time, we're
investing at the front end of major product launches, including
surgical robotics and renal denervation, to fully realize their
potential. We're also planning for the largest increase in R&D
spend in our company's history, as we invest to accelerate
long-term growth and capitalize on a long list of
opportunities."
Dividend Increase
The company today announced that on
May 26, 2021, the Medtronic board of
directors approved an increase in Medtronic's cash dividend for the
first quarter of fiscal year 2022, raising the quarterly amount to
$0.63 per ordinary share. This would
translate into an annual amount of $2.52 per ordinary share, a 9 percent increase
from the prior $2.32. Medtronic has a
long history of dividend growth, and the company is a constituent
of the S&P 500 Dividend Aristocrats index. Today's announcement
marks the 44th consecutive year of an increase in the dividend
payment. Including today's increase, Medtronic's dividend per share
has grown 47 percent over the past 5 years and has grown at a 16
percent compounded annual growth rate over the past 44 years.
Medtronic has a strong track record of returning capital to its
shareholders, including returning $3.3
billion in fiscal year 2021. The company remains committed
to returning a minimum of 50 percent of its free cash flow to
shareholders, primarily through dividends, and to a lesser extent,
share repurchases. The dividend is payable on July 16, 2021, to shareholders of record at the
close of business on June 25,
2021.
"We're pleased to be able to increase our dividend by 9% during
the pandemic," said Martha. "Today's dividend increase is a strong
sign of our commitment to providing robust returns for our
shareholders and of the confidence that our Board of Directors has
in Medtronic's financial strength and future growth
opportunities."
Webcast Information
Medtronic will host a webcast
today, May 27, 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 Investor Events link at
investorrelations.medtronic.com and this earnings release will
be archived at news.medtronic.com. Medtronic will be live tweeting
during the webcast on its Newsroom Twitter account, @Medtronic.
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 Investor Events link at
investorrelations.medtronic.com.
Medtronic plans to report its fiscal year 2022 first, second,
third, and fourth quarter results on August
24, 2021, November 23, 2021,
February 22, 2022, and May 26, 2022, respectively. Confirmation and
additional details will be provided closer to the specific
event.
Financial Schedules
To view the fourth quarter and
fiscal year 2021 financial schedules and non-GAAP reconciliations,
click here. To view the fourth quarter and fiscal year 2021
earnings presentation, click here. Both documents can also be
accessed by visiting news.medtronic.com.
About Medtronic
Medtronic plc (www.medtronic.com),
headquartered in Dublin, Ireland,
is among the world's largest medical technology, services and
solutions companies – alleviating pain, restoring health and
extending life for millions of people around the world. Medtronic
employs more than 90,000 people worldwide, serving physicians,
hospitals and patients in more than 150 countries. The company is
focused on collaborating with stakeholders around the world to take
healthcare Further, Together.
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 and 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, as filed with the
U.S. Securities and Exchange Commission. 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 and annual figures increasing,
decreasing or remaining flat are in comparison to fiscal year
2020.
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.
View Fourth Quarter and FY21 Financial Schedules & Non-GAAP
Reconciliations
View Fourth Quarter and FY21 Earnings Presentation
Contacts:
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Winkels
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Ryan
Weispfenning
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Public
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SOURCE Medtronic plc