LONDON – LivaNova (NASDAQ:LIVN) PLC, a medical device company, disclosed the upcoming departure of its Chief Human Resources Officer, Trui Hebbelinck. The company, known for its specialization in electromedical and electrotherapeutic apparatus, announced on Monday that Hebbelinck will leave her position effective September 30, 2024, and will enter a period of garden leave.
Hebbelinck's departure follows the terms of her existing service agreement, which includes a 12-month notice period. Her employment with LivaNova will formally end on September 30, 2025, unless she opts to conclude her garden leave early, in which case she would receive a payment instead of notice. During her garden leave, Hebbelinck is set to receive her regular salary and benefits but will not be eligible for any bonus for the fiscal year 2025.
The company's filings with the Securities and Exchange Commission further detailed that while on garden leave, Hebbelinck's outstanding equity awards will continue to vest as per the original terms, but she will not be granted any new equity awards. A Settlement Agreement, entered into on September 7, 2024, outlines that Hebbelinck will receive her annual bonus for the fiscal year 2024, prorated up to her departure date and payable in October 2024.
Additionally, she will receive a severance payment of £232,000 post-termination, outplacement counseling services, professional tax assistance for up to three UK tax years, and a maximum of £25,000 plus tax for legal fees incurred concerning the Settlement Agreement.
The company has initiated a search for a new Chief Human Resources Officer, contracting an external search firm to fill the role. LivaNova, headquartered in London, operates under the NASDAQ Global Market with the ticker NASDAQ:LIVN.
The information regarding Hebbelinck's departure and the associated compensatory arrangements was based on a press release statement.
In other recent news, LivaNova PLC reported a 10% revenue increase in the second quarter of 2024, marking its sixth consecutive quarter of double-digit growth. The company has raised its full-year revenue and adjusted earnings per share (EPS) guidance for 2024 due to strong performances in its cardiopulmonary and epilepsy segments.
Adjusted operating income and margin also saw significant improvements, and strategic appointments were announced to strengthen leadership.
The company's full-year 2024 revenue guidance has been raised to a growth between 7% and 8%, with adjusted EPS expected to range from $3.10 to $3.20. The adjusted operating income for the quarter was $67 million, up from $49 million the previous year, and the margin increased from 17% to 21%.
In addition, LivaNova plans to invest in its core businesses to maintain above-market growth and accelerate innovation. The company anticipates higher operating expenses in the latter half of 2024 to support this growth and innovation.
Furthermore, the company is awaiting a decision from the Centers for Medicare & Medicaid Services (CMS) before engaging in commercial activity and expects competitors to return to the market.
InvestingPro Insights
As LivaNova PLC navigates the transition period following the departure of its Chief Human Resources Officer, investors and stakeholders may find reassurance in the company's financial health and future outlook. According to InvestingPro data, LivaNova boasts a market capitalization of $2.56 billion, reflecting its substantial size within the medical device industry. The company's revenue has shown a healthy growth of 11.52% over the last twelve months as of Q2 2024, supported by a robust gross profit margin of nearly 68%. This financial stability is further underlined by the company's ability to manage its debt moderately and maintain liquid assets that exceed short-term obligations, as highlighted in two InvestingPro Tips.
InvestingPro Tips also indicate that while LivaNova has not been profitable over the last twelve months, analysts predict the company will return to profitability this year. This forecast aligns with the company's strategic planning and may be a crucial factor for potential investors considering the company's future in a competitive market. Notably, LivaNova does not pay a dividend, which could be a point of consideration for those investors who prioritize immediate income over long-term growth potential.
For those interested in a deeper analysis, InvestingPro offers additional tips on LivaNova, which can be accessed through their platform. This service provides an array of metrics and professional insights, helping investors make informed decisions based on the latest data and market trends.
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