Full Press Release Details
FRANKLIN LAKES, N.J. , Aug. 5, 2021 /PRNewswire/ --
BD (Becton, Dickinson and Company) (NYSE: BDX ), a leading global medical technology company, today reported quarterly revenues of $4 .9 billion for the third fiscal quarter ended June 30, 2021. This represents a year-over-year increase of 26.9% on a reported basis and 22.0% on a currency-neutral basis. The increase is primarily driven by the strong base business performance as overall healthcare utilization levels continued to recover from the initial impact of COVID-19.
"Our strong third quarter results reflect continued momentum across our base business," said Tom Polen , Chairman, CEO and President of BD. "Solid execution by our teams has strengthened our foundation, while increased investment in R&D and tuck-in M&A are enhancing our innovation pipeline. We look forward to updating you on our innovation-driven BD 2025 strategy, which leverages our core strengths and market leadership positions to deliver long-term growth and value for all stakeholders at our Investor Day on November 12 ."
Third Fiscal Quarter 2021 Operating Results As reported, diluted EPS for the third fiscal quarter were $1.72 , compared with $0.97 in the prior-year period, which represents an increase of 77.3%. Adjusted diluted EPS were $2.74 , compared with $2.20 in the prior-year period, which represents an increase of 24.5%, or 25.9% on a currency-neutral basis.
Segment Results Third fiscal quarter revenue growth across the segments was primarily driven by strong base business performances as overall healthcare utilization levels continued to recover from the initial impact of COVID-19.
BD Medical revenues for the third fiscal quarter of $2.4 billion increased 11.9% over the prior-year period on a reported basis and 7.7% on a currency-neutral basis. BD Medical revenues reflect growth in the Medication Delivery Solutions, Pharmaceutical Systems and Diabetes Care units, which was partially offset by an expected decline in the Medication Management Solutions unit. Medication Delivery Solutions revenue growth reflects strong demand in the U.S. for catheters and vascular care products, as well as strong global demand for syringes resulting from COVID-19 vaccination efforts. In Medication Management Solutions, revenue growth in dispensing was more than offset by the expected decline in infusion solutions sales due to a global surge in demand for infusion pumps in the prior period driven by the COVID-19 pandemic. Diabetes Care revenue growth benefited from an easy comparison to the prior year, the timing of revenues, and slightly better than expected market demand. Pharmaceutical Systems revenues reflect continued strong demand for prefillable products.
BD Life Sciences revenues for the third fiscal quarter of $1.4 billion , increased 50.7% over the prior-year period on a reported basis, and 43.4% on a currency-neutral basis. Integrated Diagnostic Solutions (IDS) revenue growth included $300 million in sales related to COVID-19 diagnostic testing on the BD Veritor TM Plus and BD Max TM Systems versus $98 million in the prior year. IDS revenue growth reflects a continued recovery in demand for specimen management products and microbiology. Biosciences revenue growth reflects continued strong demand for instruments and research reagents.
BD Interventional revenues for the third fiscal quarter of $1.1 billion increased 38.4% over the prior-year period on a reported basis and 34.6% on a currency-neutral basis with growth in all three business units. Performance in Surgery and Peripheral Intervention reflects a continued recovery in elective volumes versus the prior-year period. Urology and Critical Care growth was driven by continued strong demand for acute urology products and the unit's targeted temperature management portfolio.
Geographic Results U.S. revenues of $2.6 billion increased 21.5% over the prior-year period. Revenues outside of the U.S. of $2.3 billion increased 33.5% over the prior-year period on a reported basis and 22.6% on a currency-neutral basis.
Capital Allocation BD is committed to a balanced capital allocation strategy that includes both organic investments and tuck-in acquisitions, a competitive dividend, and share repurchases, while maintaining full investment grade credit ratings.
During the third quarter of fiscal year 2021, BD repurchased approximately 4.1 million shares at a total cost of $1.0 billion , or an average cost of approximately $242 per share.
Recent Business Highlights BD continues to advance an innovation-driven growth strategy. Highlights include:
Recent Tuck-In Acquisition Strategy Highlights
Recent Environmental, Social and Governance Highlights As a purpose-driven company working to create positive societal impact, BD has a long-standing commitment to Advancing the World of Health by expanding access to quality health care and supporting healthy and resilient communities throughout the world. We view sustainability as a portfolio of complementary initiatives and actions that help us achieve our long-term goals.
Assumptions and Outlook for Full Year Fiscal 2021 BD has updated its outlook for fiscal 2021 which reflects numerous assumptions about many factors that could affect its business based on the information management has reviewed as of this date, which includes observations and assumptions regarding the continued impact of the COVID-19 pandemic. The company's outlook continues to assume no major system-wide hospital restrictions on elective procedures related to the COVID-19 pandemic. However, in recent weeks the company started to see some impact on elective procedures from the COVID-19 delta variant in some states in the U.S. and assumes some continuation of this in its outlook. Management will discuss its outlook and several of its assumptions on its third fiscal quarter earnings call.
The company now expects fiscal year 2021 revenues to grow approximately 16.5% to 17.0% on a reported basis, an increase from the prior guidance of 12% to 14%. Foreign currency is now expected to contribute approximately 250 to 300 basis points to revenue growth, compared to 200 basis points previously. BD now expects fiscal year 2021 currency-neutral revenue growth of about 14.0% versus its prior guidance of 10% to 12%.
The company now expects fiscal year 2021 adjusted diluted EPS to be between $12.85 and $12.95 , an increase from the prior guidance of between $12.75 and $12.85 . The current adjusted EPS guidance range represents growth of approximately 26% to 27% over fiscal 2020 adjusted diluted EPS of $10.20 . The company now expects the impact to adjusted EPS from foreign currency to be negligible, compared to a contribution of approximately 100 basis points previously. The company previously expected adjusted EPS growth of 25% to 26%, or 24% to 25% on a currency-neutral basis.
"We were very pleased to be able to raise our full year 2021 adjusted diluted EPS guidance," said Christopher Reidy , BD's EVP, chief financial officer and chief administrative officer. "The positive momentum of our base business, combined with a lower tax rate, allows us to continue to reinvest while overcoming lower COVID-19 testing profit contribution."
Conference Call and Presentation Materials A conference call regarding BD's third quarter results will be broadcast live on BD's website, www.bd.com/investors at 8:00 a.m. (ET) Thursday, August 5, 2021 . The accompanying slides will be available on BD's website, www.bd.com/investors at 6:00 a.m. (ET) . The conference call will be available for replay on BD's website, www.bd.com/investors , or at 1-855-859-2056 (domestic) and 1-404-537-3406 (international) through the close of business on Thursday, August 12, 2021 , confirmation number 9447085.
Reconciliations of these and other non-GAAP measures to the comparable GAAP measures are included in the attached financial tables. Within the attached financial tables presented, certain columns and rows may not add due to the use of rounded numbers. Percentages and earnings per share amounts presented are calculated from the underlying amounts.
Current and prior-year adjusted diluted earnings per share results exclude, among other things, the impact of purchase accounting adjustments, integration and restructuring costs, spin-off related charges, certain transaction gains, certain legal defense and product remediation costs, certain regulatory costs, certain asset impairments, the impact of the extinguishment of debt and the dilutive impact of shares issued in May 2020 .
We also provide these measures, as well as revenues, on a currency-neutral basis after eliminating the effect of foreign currency translation, where applicable. We calculate foreign currency-neutral percentages by converting our current-period local currency financial results using the prior period foreign currency exchange rates and comparing these adjusted amounts to our current-period results. Reconciliations of these amounts to the most directly comparable GAAP measures are included in the tables at the end of this release.
About BD BD is one of the largest global medical technology companies in the world and is advancing the world of health by improving medical discovery, diagnostics and the delivery of care. The company supports the heroes on the frontlines of health care by developing innovative technology, services and solutions that help advance both clinical therapy for patients and clinical process for health care providers. BD and its 70,000 employees have a passion and commitment to help enhance the safety and efficiency of clinicians' care delivery process, enable laboratory scientists to accurately detect disease and advance researchers' capabilities to develop the next generation of diagnostics and therapeutics. BD has a presence in virtually every country and partners with organizations around the world to address some of the most challenging global health issues. By working in close collaboration with customers, BD can help enhance outcomes, lower costs, increase efficiencies, improve safety and expand access to health care. For more information on BD, please visit bd.com or connect with us on LinkedIn at www.linkedin.com/company/bd1/ and Twitter @BDandCo.
This press release contains certain estimates and other forward-looking statements (as defined under Federal securities laws) regarding BD's future prospects and performance, including, but not limited to, future revenues and earnings per share and capital deployment. All such statements are based upon current expectations of BD and involve a number of business risks and uncertainties. Actual results could vary materially from anticipated results described, implied or projected in any forward-looking statement. With respect to forward-looking statements contained herein, a number of factors could cause actual results to vary materially. These factors include, but are not limited to, risks relating to the impact of the COVID-19 pandemic on our business (including decreases in the demand for our products, any disruptions to our operations and our supply chain, and factors such as vaccine availability and utilization and increased competition that could impact the demand and pricing for our COVID-19 diagnostics testing); product efficacy or safety concerns resulting in product recalls or actions being taken with respect to our products; new or changing laws and regulations impacting our business (including the imposition of tariffs or changes in laws impacting international trade) or changes in enforcement practices with respect to such laws; fluctuations in costs and availability of raw materials, labor shortages or increased labor costs and BD's ability to maintain favorable supplier arrangements and relationships; legislative or regulatory changes to the U.S. or foreign healthcare systems, potential cuts in governmental healthcare spending (including China's volume-based procurement tender process) or governmental or private measures to contain healthcare costs, including changes in pricing and reimbursement policies, each of which could result in reduced demand for our products or downward pricing pressure; changes in interest or foreign currency exchange rates; adverse changes in regional, national or foreign economic conditions, including inflation, deflation and fluctuations in interest rates, particularly in emerging markets, including any impact on our ability to access credit markets and finance our operations; the demand for our products and services, or our suppliers ' ability to provide products needed for our operations; the adverse impact of cyber-attacks on our information systems or products; competitive factors including technological advances and new products introduced by competitors; risks relating to our overall indebtedness; interruptions in our supply chain, manufacturing or sterilization processes; pricing and market pressures; difficulties inherent in product development, delays in product introductions and uncertainty of market acceptance of new products; adverse changes in geopolitical conditions; increases in energy costs and their effect on, among other things, the cost of producing BD's products; the remediation of our infusion pump business (including risks relating to our ability to obtain regulatory clearance and market acceptance of the BD Alaris™ System); our ability to achieve our projected level or mix of product sales; our ability to successfully integrate any businesses we acquire; uncertainties of litigation and/or investigations and/or subpoenas (as described in BD's filings with the Securities and Exchange Commission); and the issuance of new or revised accounting standards. In addition, we have made certain assumptions in making these forward-looking statements, particularly regarding the impact of the COVID-19 pandemic on BD and its results of operations and financial conditions. If any of these assumptions, including the impact of the COVID-19 pandemic are incorrect, BD's actual results could differ materially from those described in these forward-looking statements. We do not intend to update any forward-looking statements to reflect events or circumstances after the date hereof except as required by applicable laws or regulations.
| BECTON DICKINSON AND COMPANY | |||||||||||
| CONSOLIDATED INCOME STATEMENTS | |||||||||||
| (Unaudited; Amounts in millions, except share and per share data) | |||||||||||
| Three Months Ended June 30, | |||||||||||
| 2021 | 2020 | % Change | |||||||||
| REVENUES | $ | 4,890 | $ | 3,855 | 26.9 | ||||||
| Cost of products sold | 2,729 | 2,195 | 24.3 | ||||||||
| Selling and administrative expense | 1,237 | 980 | 26.2 | ||||||||
| Research and development expense | 344 | 262 | 31.2 | ||||||||
| Acquisitions and other restructurings | 24 | 74 | (67.5) | ||||||||
| Other operating income, net | (72) | (15) | (382.1) | ||||||||
| TOTAL OPERATING COSTS AND EXPENSES | 4,262 | 3,497 | 21.9 | ||||||||
| OPERATING INCOME | 628 | 358 | 75.5 | ||||||||
| Interest expense | (115) | (135) | (14.7) | ||||||||
| Interest income | 2 | 2 | 9.9 | ||||||||
| Other (expense) income, net | (1) | 23 | (104.2) | ||||||||
| INCOME BEFORE INCOME TAXES | 514 | 248 | 107.6 | ||||||||
| Income tax benefit | (11) | (38) | 71.7 | ||||||||
| NET INCOME | 525 | 286 | 83.7 | ||||||||
| Preferred stock dividends | (23) | (9) | 164.7 | ||||||||
| NET INCOME APPLICABLE TO COMMON SHAREHOLDERS | $ | 502 | $ | 277 | 81.2 | ||||||
| EARNINGS PER SHARE | |||||||||||
| Basic Earnings per Share | $ | 1.73 | $ | 0.98 | 76.5 | ||||||
| Diluted Earnings per Share | $ | 1.72 | $ | 0.97 | 77.3 | ||||||
| AVERAGE SHARES OUTSTANDING (in thousands) | |||||||||||
| Basic | 289,522 | 282,385 | |||||||||
| Diluted | 291,897 | 285,148 |
| BECTON DICKINSON AND COMPANY | |||||||||||
| CONSOLIDATED INCOME STATEMENTS | |||||||||||
| (Unaudited; Amounts in millions, except share and per share data) | |||||||||||
| Nine Months Ended June 30, | |||||||||||
| 2021 | 2020 | % Change | |||||||||
| REVENUES | $ | 15,113 | $ | 12,333 | 22.5 | ||||||
| Cost of products sold | 7,973 | 6,962 | 14.5 | ||||||||
| Selling and administrative expense | 3,535 | 3,126 | 13.1 | ||||||||
| Research and development expense | 952 | 797 | 19.5 | ||||||||
| Acquisitions and other restructurings | 126 | 235 | (46.3) | ||||||||
| Other operating expense (income), net | 224 | (15) | 1,598.8 | ||||||||
| TOTAL OPERATING COSTS AND EXPENSES | 12,809 | 11,104 | 15.4 | ||||||||
| OPERATING INCOME | 2,304 | 1,229 | 87.4 | ||||||||
| Interest expense | (358) | (405) | (11.7) | ||||||||
| Interest income | 7 | 5 | 28.1 | ||||||||
| Other income, net | 23 | 12 | 91.7 | ||||||||
| INCOME BEFORE INCOME TAXES | 1,976 | 842 | 134.8 | ||||||||
| Income tax provision | 149 | 96 | 55.8 | ||||||||
| NET INCOME | 1,827 | 746 | 144.9 | ||||||||
| Preferred stock dividends | (68) | (84) | (19.9) | ||||||||
| NET INCOME APPLICABLE TO COMMON SHAREHOLDERS | $ | 1,760 | $ | 662 | 165.9 | ||||||
| EARNINGS PER SHARE | |||||||||||
| Basic Earnings per Share | $ | 6.06 | $ | 2.41 | 151.5 | ||||||
| Diluted Earnings per Share | $ | 6.00 | $ | 2.38 | 152.1 | ||||||
| AVERAGE SHARES OUTSTANDING (in thousands) | |||||||||||
| Basic | 290,401 | 275,152 | |||||||||
| Diluted | 293,094 | 278,563 |
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| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (Amounts in millions) | ||||||||
| June 30, 2021 | September 30, 2020 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Cash and equivalents | $ | 3,153 | $ | 2,825 | ||||
| Restricted cash | 128 | 92 | ||||||
| Short-term investments | 24 | 20 | ||||||
| Trade receivables, net | 2,078 | 2,398 | ||||||
| Inventories | 2,947 | 2,743 | ||||||
| Prepaid expenses and other | 1,207 | 891 | ||||||
| TOTAL CURRENT ASSETS | 9,538 | 8,969 | ||||||
| Property, plant and equipment, net | 6,164 | 5,923 | ||||||
| Goodwill and other intangibles, net | 36,811 | 37,433 | ||||||
| Other Assets | 1,821 | 1,687 | ||||||
| TOTAL ASSETS | $ | 54,333 | $ | 54,012 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Short-term debt | $ | 2,033 | $ | 707 | ||||
| Other current liabilities | 5,716 | 5,129 | ||||||
| Long-term debt | 15,700 | 17,224 | ||||||
| Long-term employee benefit obligations | 1,421 | 1,435 | ||||||
| Deferred income taxes and other liabilities | 5,329 | 5,753 | ||||||
| Shareholders' equity | 24,135 | 23,765 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 54,333 | $ | 54,012 |
| BECTON DICKINSON AND COMPANY | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (Amounts in millions) | ||||||||
| Nine Months Ended June 30, | ||||||||
| 2021 | 2020 | |||||||
| (Unaudited) | ||||||||
| OPERATING ACTIVITIES | ||||||||
| Net income | $ | 1,827 | $ | 746 | ||||
| Depreciation and amortization | 1,681 | 1,601 | ||||||
| Change in operating assets and liabilities and other, net | 188 | (289) | ||||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 3,696 | 2,058 | ||||||
| INVESTING ACTIVITIES | ||||||||
| Capital expenditures | (766) | (597) | ||||||
| Acquisitions, net of cash acquired | (283) | (139) | ||||||
| Other, net | (137) | (169) | ||||||
| NET CASH USED FOR INVESTING ACTIVITIES | (1,186) | (905) | ||||||
| FINANCING ACTIVITIES | ||||||||
| Change in credit facility borrowings | — | (485) | ||||||
| Proceeds from long-term debt and term loans | 1,715 | 3,389 | ||||||
| Payments of debt and term loans | (1,999) | (3,711) | ||||||
| Proceeds from issuance of equity securities | — | 2,917 | ||||||
| Repurchases of common stock | (1,000) | — | ||||||
| Dividends paid | (789) | (773) | ||||||
| Other, net | (91) | (106) | ||||||
| NET CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES | (2,164) | 1,230 | ||||||
| Effect of exchange rate changes on cash and equivalents and restricted cash | 18 | (9) | ||||||
| NET INCREASE IN CASH AND EQUIVALENTS AND RESTRICTED CASH | 365 | 2,374 | ||||||
| OPENING CASH AND EQUIVALENTS AND RESTRICTED CASH | 2,917 | 590 | ||||||
| CLOSING CASH AND EQUIVALENTS AND RESTRICTED CASH | $ | 3,282 | $ | 2,964 |
| BECTON DICKINSON AND COMPANY | |||||||||||
| SUPPLEMENTAL REVENUE INFORMATION | |||||||||||
| REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES | |||||||||||
| Three Months Ended June 30, | |||||||||||
| (Unaudited; Amounts in millions) | |||||||||||
| A | B | C=(A-B)/B | |||||||||
| 2021 | 2020 | % Change | |||||||||
| BD MEDICAL | |||||||||||
| Medication Delivery Solutions | $ | 560 | $ | 412 | 35.9 | ||||||
| Medication Management Solutions | 459 | 500 | (8.3) | ||||||||
| Diabetes Care | 152 | 136 | 11.4 | ||||||||
| Pharmaceutical Systems | 112 | 113 | (0.6) | ||||||||
| TOTAL | $ | 1,283 | $ | 1,161 | 10.5 | ||||||
| BD LIFE SCIENCES | |||||||||||
| Integrated Diagnostic Solutions | $ | 435 | $ | 344 | 26.6 | ||||||
| Biosciences | 124 | 93 | 33.7 | ||||||||
| TOTAL | $ | 559 | $ | 436 | 28.1 | ||||||
| BD INTERVENTIONAL | |||||||||||
| Surgery | $ | 267 | $ | 154 | 73.9 | ||||||
| Peripheral Intervention | 238 | 174 | 36.7 | ||||||||
| Urology and Critical Care | 227 | 194 | 17.0 | ||||||||
| TOTAL | $ | 732 | $ | 522 | 40.4 | ||||||
| TOTAL UNITED STATES | $ | 2,574 | $ | 2,119 | 21.5 |
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| REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL | ||||||||||||||||||
| Three Months Ended June 30, (continued) | ||||||||||||||||||
| (Unaudited; Amounts in millions) | ||||||||||||||||||
| D=(A-B)/B | E=(A-B-C)/B | |||||||||||||||||
| A | B | C | % Change | |||||||||||||||
| 2021 | 2020 | FX Impact | Reported | FXN | ||||||||||||||
| BD MEDICAL | ||||||||||||||||||
| Medication Delivery Solutions | $ | 447 | $ | 369 | $ | 40 | 21.2 | 10.4 | ||||||||||
| Medication Management Solutions | 139 | 177 | 15 | (21.8) | (30.0) | |||||||||||||
| Diabetes Care | 143 | 123 | 11 | 15.5 | 6.2 | |||||||||||||
| Pharmaceutical Systems | 364 | 291 | 24 | 25.1 | 16.8 | |||||||||||||
| TOTAL | $ | 1,092 | $ | 960 | $ | 90 | 13.7 | 4.4 | ||||||||||
| BD LIFE SCIENCES | ||||||||||||||||||
| Integrated Diagnostic Solutions | $ | 682 | $ | 370 | $ | 55 | 84.2 | 69.2 | ||||||||||
| Biosciences | 192 | 145 | 14 | 33.1 | 23.1 | |||||||||||||
| TOTAL | $ | 874 | $ | 515 | $ | 70 | 69.8 | 56.3 | ||||||||||
| BD INTERVENTIONAL | ||||||||||||||||||
| Surgery | $ | 69 | $ | 43 | $ | 6 | 60.0 | 45.6 | ||||||||||
| Peripheral Intervention | 198 | 143 | 17 | 37.9 | 25.8 | |||||||||||||
| Urology and Critical Care | 83 | 74 | 7 | 13.2 | 4.3 | |||||||||||||
| TOTAL | $ | 350 | $ | 260 | $ | 30 | 34.5 | 23.0 | ||||||||||
| TOTAL INTERNATIONAL | $ | 2,316 | $ | 1,735 | $ | 190 | 33.5 | 22.6 |
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| REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL | ||||||||||||||||||
| Three Months Ended June 30, (continued) | ||||||||||||||||||
| (Unaudited; Amounts in millions) | ||||||||||||||||||
| D=(A-B)/B | E=(A-B-C)/B | |||||||||||||||||
| A | B | C | % Change | |||||||||||||||
| 2021 | 2020 | FX Impact | Reported | FXN | ||||||||||||||
| BD MEDICAL | ||||||||||||||||||
| Medication Delivery Solutions | $ | 1,007 | $ | 781 | $ | 40 | 28.9 | 23.9 | ||||||||||
| Medication Management Solutions | 597 | 677 | 15 | (11.8) | (14.0) | |||||||||||||
| Diabetes Care | 294 | 260 | 11 | 13.4 | 8.9 | |||||||||||||
| Pharmaceutical Systems | 476 | 403 | 24 | 17.9 | 11.9 | |||||||||||||
| TOTAL | $ | 2,375 | $ | 2,122 | $ | 90 | 11.9 | 7.7 | ||||||||||
| BD LIFE SCIENCES | ||||||||||||||||||
| Integrated Diagnostic Solutions | $ | 1,117 | $ | 714 | $ | 55 | 56.4 | 48.7 | ||||||||||
| Biosciences | 316 | 237 | 14 | 33.3 | 27.3 | |||||||||||||
| TOTAL | $ | 1,433 | $ | 951 | $ | 70 | 50.7 | 43.4 | ||||||||||
| BD INTERVENTIONAL | ||||||||||||||||||
| Surgery | $ | 336 | $ | 197 | $ | 6 | 70.9 | 67.7 | ||||||||||
| Peripheral Intervention | 436 | 318 | 17 | 37.2 | 31.8 | |||||||||||||
| Urology and Critical Care | 310 | 268 | 7 | 16.0 | 13.5 | |||||||||||||
| TOTAL | $ | 1,082 | $ | 782 | $ | 30 | 38.4 | 34.6 | ||||||||||
| TOTAL REVENUES | $ | 4,890 | $ | 3,855 | $ | 190 | 26.9 | 22.0 |
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| REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES | |||||||||||||||
| Nine Months Ended June 30, | |||||||||||||||
| (Unaudited; Amounts in millions) | |||||||||||||||
| A | B | C=(A-B)/B | |||||||||||||
| 2021 | 2020 | % Change | |||||||||||||
| BD MEDICAL | |||||||||||||||
| Medication Delivery Solutions | $ | 1,659 | $ | 1,450 | 14.4 | ||||||||||
| Medication Management Solutions | 1,376 | 1,412 | (2.5) | ||||||||||||
| Diabetes Care | 450 | 417 | 7.9 | ||||||||||||
| Pharmaceutical Systems | 292 | 287 | 1.6 | ||||||||||||
| TOTAL | $ | 3,777 | $ | 3,566 | 5.9 | ||||||||||
| BD LIFE SCIENCES | |||||||||||||||
| Integrated Diagnostic Solutions | $ | 1,904 | $ | 1,143 | 66.5 | ||||||||||
| Biosciences | 365 | 353 | 3.5 | ||||||||||||
| TOTAL | $ | 2,269 | $ | 1,496 | 51.7 | ||||||||||
| BD INTERVENTIONAL | |||||||||||||||
| Surgery | $ | 757 | $ | 659 | 14.8 | ||||||||||
| Peripheral Intervention | 692 | 641 | 8.0 | ||||||||||||
| Urology and Critical Care | 672 | 603 | 11.4 | ||||||||||||
| TOTAL | $ | 2,120 | $ | 1,903 | 11.4 | ||||||||||
| TOTAL UNITED STATES | $ | 8,166 | $ | 6,964 | 17.3 |
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| REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL | ||||||||||||||||||
| Nine Months Ended June 30, (continued) | ||||||||||||||||||
| (Unaudited; Amounts in millions) | ||||||||||||||||||
| D=(A-B)/B | E=(A-B-C)/B | |||||||||||||||||
| A | B | C | % Change | |||||||||||||||
| 2021 | 2020 | FX Impact | Reported | FXN | ||||||||||||||
| BD MEDICAL | ||||||||||||||||||
| Medication Delivery Solutions | $ | 1,355 | $ | 1,183 | $ | 67 | 14.5 | 8.8 | ||||||||||
| Medication Management Solutions | 417 | 408 | 30 | 2.1 | (5.2) | |||||||||||||
| Diabetes Care | 414 | 389 | 20 | 6.2 | 1.1 | |||||||||||||
| Pharmaceutical Systems | 985 | 815 | 59 | 20.8 | 13.6 | |||||||||||||
| TOTAL | $ | 3,170 | $ | 2,797 | $ | 176 | 13.4 | 7.1 | ||||||||||
| BD LIFE SCIENCES | ||||||||||||||||||
| Integrated Diagnostic Solutions | $ | 2,141 | $ | 1,204 | $ | 117 | 77.8 | 68.2 | ||||||||||
| Biosciences | 588 | 487 | 31 | 20.8 | 14.4 | |||||||||||||
| TOTAL | $ | 2,729 | $ | 1,691 | $ | 148 | 61.4 | 52.7 | ||||||||||
| BD INTERVENTIONAL | ||||||||||||||||||
| Surgery | $ | 203 | $ | 176 | $ | 12 | 15.8 | 9.0 | ||||||||||
| Peripheral Intervention | 590 | 471 | 37 | 25.2 | 17.3 | |||||||||||||
| Urology and Critical Care | 255 | 235 | 14 | 8.4 | 2.4 | |||||||||||||
| TOTAL | $ | 1,047 | $ | 881 | $ | 63 | 18.9 | 11.7 | ||||||||||
| TOTAL INTERNATIONAL | $ | 6,947 | $ | 5,369 | $ | 387 | 29.4 | 22.2 |
| BECTON DICKINSON AND COMPANY | ||||||||||||||||||
| SUPPLEMENTAL REVENUE INFORMATION | ||||||||||||||||||
| REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL | ||||||||||||||||||
| Nine Months Ended June 30, (continued) | ||||||||||||||||||
| (Unaudited; Amounts in millions) | ||||||||||||||||||
| D=(A-B)/B | E=(A-B-C)/B | |||||||||||||||||
| A | B | C | % Change | |||||||||||||||
| 2021 | 2020 | FX Impact | Reported | FXN | ||||||||||||||
| BD MEDICAL | ||||||||||||||||||
| Medication Delivery Solutions | $ | 3,014 | $ | 2,634 | $ | 67 | 14.4 | 11.9 | ||||||||||
| Medication Management Solutions | 1,793 | 1,820 | 30 | (1.5) | (3.1) | |||||||||||||
| Diabetes Care | 863 | 806 | 20 | 7.1 | 4.6 | |||||||||||||
| Pharmaceutical Systems | 1,277 | 1,102 | 59 | 15.8 | 10.5 | |||||||||||||
| TOTAL | $ | 6,947 | $ | 6,362 | $ | 176 | 9.2 | 6.4 | ||||||||||
| BD LIFE SCIENCES | ||||||||||||||||||
| Integrated Diagnostic Solutions | $ | 4,045 | $ | 2,347 | $ | 117 | 72.3 | 67.4 | ||||||||||
| Biosciences | 953 | 840 | 31 | 13.5 | 9.8 | |||||||||||||
| TOTAL | $ | 4,998 | $ | 3,187 | $ | 148 | 56.8 | 52.2 | ||||||||||
| BD INTERVENTIONAL | ||||||||||||||||||
| Surgery | $ | 960 | $ | 835 | $ | 12 | 15.0 | 13.6 | ||||||||||
| Peripheral Intervention | 1,282 | 1,112 | 37 | 15.3 | 11.9 | |||||||||||||
| Urology and Critical Care | 926 | 837 | 14 | 10.6 | 8.9 | |||||||||||||
| TOTAL | $ | 3,168 | $ | 2,784 | $ | 63 | 13.8 | 11.5 | ||||||||||
| TOTAL REVENUES | $ | 15,113 | $ | 12,333 | $ | 387 | 22.5 | 19.4 |
| BECTON DICKINSON AND COMPANY | ||||||||||||||||||||||||||
| SUPPLEMENTAL INFORMATION | ||||||||||||||||||||||||||
| RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended June 30, | ||||||||||||||||||||||||||
| 2021 | 2020 | Growth | Foreign Currency Translation | Foreign Currency Neutral Growth | Growth % | Foreign Currency Neutral Growth % | ||||||||||||||||||||
| Reported Diluted Earnings per Share | $ | 1.72 | $ | 0.97 | $ | 0.75 | $ | (0.04) | $ | 0.79 | 77.3 | % | 81.4 | % | ||||||||||||
| Purchase accounting adjustments ($355 million and $325 million pre-tax, respectively) (1) | 1.22 | 1.14 | 0.01 | |||||||||||||||||||||||
| Integration costs ($27 million and $46 million pre-tax, respectively) (2) | 0.09 | 0.16 | — | |||||||||||||||||||||||
| Restructuring costs ($(3) million and $28 million pre-tax, respectively) (2) | (0.01) | 0.10 | — | |||||||||||||||||||||||
| Separation and related costs ($16 million pre-tax) (3) | 0.05 | — | — | |||||||||||||||||||||||
| Transaction gain/loss, product and other litigation-related matters ($(70) million and $(10) million pre-tax, respectively) (4) | (0.24) | (0.03) | — | |||||||||||||||||||||||
| European regulatory initiative-related costs ($32 million and $33 million pre-tax, respectively) (5) | 0.11 | 0.12 | — | |||||||||||||||||||||||
| Impacts of debt extinguishment ($6 million pre-tax) | — | 0.02 | — | |||||||||||||||||||||||
| Dilutive Impact (6) | — | (0.02) | — | |||||||||||||||||||||||
| Income tax benefit of special items ($(61) million and $(72) million, respectively) | (0.21) | (0.25) | — | |||||||||||||||||||||||
| Adjusted Diluted Earnings per Share | $ | 2.74 | $ | 2.20 | $ | 0.54 | $ | (0.03) | $ | 0.57 | 24.5 | % | 25.9 | % |
| (1) | Includes amortization and other adjustments related to the purchase accounting for acquisitions impacting identified intangible assets and valuation of fixed assets and debt. |
| (2) | Represents amounts associated with integration and restructuring activities resulting from acquisitions, as well as simplification and other cost saving initiatives. |
| (3) | Represents costs recorded to Other operating income, net which were incurred for consulting, legal, tax and other advisory services associated with the planned spin-off of BD's Diabetes Care business. |
| (4) | The 2021 amount includes a gain of $88 million on a sale-leaseback transaction which was recorded to Other operating income, net . The amount in 2020 includes an adjustment of $(18) million recorded to Cost of products sold related to the estimate of future product remediation costs and also includes costs related to another product matter which was recorded in Other (expense) income, net . |
| (5) | Represents costs required to develop processes and systems to comply with regulations such as the European Union Medical Device Regulation ("EUMDR") and General Data Protection Regulation ("GDPR"). |
| (6) | Represents the dilutive impact of BD shares issued in May 2020. The adjusted diluted average shares outstanding (in thousands) in 2020 were 291,476. |
| BECTON DICKINSON AND COMPANY | ||||||||||||||||||||||||||
| SUPPLEMENTAL INFORMATION | ||||||||||||||||||||||||||
| RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| Nine Months Ended June 30, | ||||||||||||||||||||||||||
| 2021 | 2020 | Growth | Foreign Currency Translation | Foreign Currency Neutral Growth | Growth % | Foreign Currency Neutral Growth % | ||||||||||||||||||||
| Reported Diluted Earnings per Share | $ | 6.00 | $ | 2.38 | $ | 3.62 | $ | (0.03) | $ | 3.65 | 152.1 | % | 153.4 | % | ||||||||||||
| Purchase accounting adjustments ($1.056 billion and $1.012 billion pre-tax, respectively) (1) | 3.60 | 3.63 | 0.01 | |||||||||||||||||||||||
| Integration costs ($94 million and $165 million pre-tax, respectively) (2) | 0.32 | 0.59 | — | |||||||||||||||||||||||
| Restructuring costs ($33 million and $69 million pre-tax, respectively) (2) | 0.11 | 0.25 | — | |||||||||||||||||||||||
| Separation and related costs ($16 million pre-tax) (3) | 0.05 | — | — | |||||||||||||||||||||||
| Transaction gain/loss, product and other litigation-related matters ($258 million and $248 million pre-tax, respectively) (4) | 0.88 | 0.89 | — | |||||||||||||||||||||||
| European regulatory initiative-related costs ($92 million and $77 million pre-tax, respectively) (5) | 0.31 | 0.28 | — | |||||||||||||||||||||||
| Investment gains/losses and asset impairments ($41 million pre-tax) (6) | — | 0.15 | — | |||||||||||||||||||||||
| Impacts of debt extinguishment ($30 million and $6 million pre-tax, respectively) | 0.10 | 0.02 | — | |||||||||||||||||||||||
| Income tax benefit of special items ($(265) million and $(218) million, respectively) | (0.90) | (0.78) | — | |||||||||||||||||||||||
| Adjusted Diluted Earnings per Share | $ | 10.48 | $ | 7.41 | $ | 3.07 | $ | (0.02) | $ | 3.09 | 41.4 | % | 41.7 | % |
| (1) | Includes amortization and other adjustments related to the purchase accounting for acquisitions impacting identified intangible assets and valuation of fixed assets and debt. |
| (2) | Represents amounts associated with integration and restructuring activities resulting from acquisitions, as well as simplification and other cost saving initiatives. |
| (3) | Represents costs recorded to Other operating expense (income), net which were incurred for consulting, legal, tax and other advisory services associated with the planned spin-off of BD's Diabetes Care business. |
| (4) | The 2021 amount includes a gain of $88 million on a sale-leaseback transaction, as well as charges to record product liability reserves, including related legal defense costs, of $296 million. The product liability-related charges and sale-leaseback gain were recorded to Other operating expense (income), net . The amounts in 2021 and 2020 include charges of $37 million and $240 million, respectively, recorded to Cost of products sold related to the estimate of future product remediation costs. The amount in 2020 also includes costs related to another product matter which were recorded in Other income, net . |
| (5) | Represents costs required to develop processes and systems to comply with regulations such as the EUMDR and GDPR. |
| (6) | The prior-period amount primarily represents a charge recorded to write down the carrying value of certain intangible assets in the Biosciences unit. |
| BECTON DICKINSON AND COMPANY | ||||||||||
| SUPPLEMENTAL INFORMATION | ||||||||||
| FY 2021 OUTLOOK RECONCILIATION | ||||||||||
| FY2020 | FY2021 Outlook (year-over-year % change) | |||||||||
| Actual Revenues | Reported % Change | Foreign Currency (FX) Impact | Foreign Currency Neutral % Change | |||||||
| BDX Revenues ($ in millions) | $ | 17,117 | +16.5% to +17.0% | ~ +2.5% to + 3.0% | ~ +14.0% |
| FY2021 Outlook | ||||||||
| Full Year FY2020 | Full Year FY2021 Outlook | % Change (Y/Y) | ||||||
| Reported Diluted Earnings per Share | $ | 2.71 | ||||||
| Purchase accounting adjustments ($1.356 billion pre-tax) (1) | 4.80 | |||||||
| Restructuring costs ($95 million pre-tax) (2) | 0.33 | |||||||
| Integration costs ($214 million pre-tax) (2) | 0.76 | |||||||
| Transaction gain/loss and product-related matters ($631 million pre-tax) (3) | 2.24 | |||||||
| European regulatory initiative-related costs ($106 million pre-tax) (4) | 0.38 | |||||||
| Investment gains/losses and asset impairments ($100 million pre-tax) (5) | 0.35 | |||||||
| Impacts of debt extinguishment ($8 million pre-tax) | 0.03 | |||||||
| Income tax benefit of special items ($(395) million) | (1.40) | |||||||
| Adjusted Diluted Earnings per Share | $ | 10.20 | $12.85 to $12.95 | ~ +26.0% to +27.0% |
| (1) | Includes amortization and other adjustments related to the purchase accounting for acquisitions impacting identified intangible assets and valuation of fixed assets and debt. |
| (2) | Represents restructuring and integration costs associated with acquisitions, as well as restructuring costs associated with simplification and other cost saving initiatives. |
| (3) | Includes amounts recorded to Other operating (income) expense, net to record product liability reserves, including related legal defense costs, of $378 million. Also includes a $244 million charge recorded to Cost of products sold related to the estimate of probable future product remediation costs. |
| (4) | Represents costs required to develop processes and systems to comply with regulations such as the EUMDR and GDPR. |
| (5) | Includes charges recorded in Cost of products sold and Research and development expense to write down the carrying values of certain assets. |
Contact: Investors: Kristen M. Stewart , CFA, SVP, Strategy & Investor Relations - 201-847-5378 Media: Troy Kirkpatrick , VP, Public Relations - 858-617-2361
SOURCE BD (Becton, Dickinson and Company)