Edwards Lifesciences 2005 Annual Report"
Edwards will seek to further extend growth
and leadership in our chosen areas of emphasis: heart
valve disease, critical care technologies and peripheral
vascular disease. We will continue emphasizing differentiated, physician-preference
products with leadership potential, further building upon the contributions
we have been fortunate to make. We also expect to continue investing
aggressively in innovative technologies — balancing disciplined
growth with new platforms that will enable us to treat
even more patients whose conditions are under-diagnosed
or untreated.
For 2006, we are confident in our ability
to achieve our financial goals, generating total sales between $1.02
and $1.06 billion (equating to an underlying growth rate of 8-10%);
increasing gross profit margin by 150 to 200 basis points; delivering
non-GAAP net income growth of 12-15% excluding the impact of special
items and stock option expensing, and generating free cash flow of $140
to $150 million.
Over the decades since Miles Lowell Edwards first started his laboratory,
Edwards has pledged to serve as a trusted partner in the community fighting
cardiovascular disease. We remain a proud member of the medical technology
community, which through its innovations, has contributed to extending
patient longevity, increasing productivity and reducing hospitalizations
around the world.
We expect the demand for Edwards’ technologies to continue
growing, as more patients require treatment for their advanced
cardiovascular conditions, amplified by the increasing
aging population and the progressive nature of this disease. While we
are proud of our accomplishments to date, helping patients is our life’s
work, and there is much yet to do. We thank you for your interest and
support as we continue to pursue our aspirations while serving our customers,
patients, employees and shareholders.
Sincerely,
This letter to shareholders contains figures that are not prepared in
conformity with Generally Accepted Accounting Principles
(“GAAP”).
Management has determined that inclusion of these non-GAAP
figures
provides a more meaningful comparison of the company’s ongoing
operations. For a reconciliation of GAAP to non-GAAP
figures, see the
inside back cover of the accompanying Annual Report
and SEC Form 10-K.
