Full Press Release Details
| NEWS RELEASE | ||
| CONTACT: Kim Duncan Senior Director, Investor Relations ir@cooperco.com | 6140 Stoneridge Mall Road Suite 590 Pleasanton, CA 94588 925-460-3663 www.coopercos.com |
THE COOPER COMPANIES ANNOUNCES FIRST QUARTER 2014 RESULTS
PLEASANTON, Calif., March 6, 2014 The Cooper Companies, Inc. (NYSE: COO) today announced financial results for the fiscal first quarter
ended January 31, 2014.
Commenting on the results, Robert S. Weiss, Cooper s president and chief executive officer said, We are very pleased to report a strong first
quarter. CooperVision continued to gain share in all geographies and modalities with silicone hydrogel products showing especially strong growth led by Biofinity . CooperSurgical also
continued to post solid revenue growth in fertility. Our businesses continue to perform well and we remain excited about the future.
Quarter GAAP Operating Highlights
First Quarter CooperVision GAAP Operating
| (In millions) 1Q14 | % of CVI Revenue 1Q14 | %chg y/y | Constant Currency %chg y/y | |||||||||||||
| Toric | $ | 101.2 | 31 | % | 10 | % | 12 | % | ||||||||
| Multifocal | 33.7 | 10 | % | 24 | % | 24 | % | |||||||||
| Single-use sphere | 68.8 | 21 | % | 5 | % | 14 | % | |||||||||
| Non single-use sphere, other | 122.6 | 38 | % | 5 | % | 6 | % | |||||||||
| Total | $ | 326.3 | 100 | % | 8 | % | 11 | % |
| (In millions) 1Q14 | % of CVI Revenue 1Q14 | %chg y/y | Constant Currency %chg y/y | |||||||||||||
| Americas | $ | 140.7 | 43 | % | 13 | % | 13 | % | ||||||||
| EMEA | 117.9 | 36 | % | 16 | % | 13 | % | |||||||||
| Asia Pacific | 67.7 | 21 | % | -9 | % | 6 | % | |||||||||
| Total | $ | 326.3 | 100 | % | 8 | % | 11 | % |
| (In millions) 1Q14 | % of CVI Revenue 1Q14 | %chg y/y | Constant Currency %chg y/y | |||||||||||||
| Silicone hydrogel | $ | 154.2 | 47 | % | 29 | % | 30 | % | ||||||||
| Proclear | $ | 82.6 | 25 | % | 9 | % | 12 | % |
First Quarter CooperSurgical GAAP Operating Highlights
| (In millions) 1Q14 | % of CSI Revenue 1Q14 | %chg y/y | ||||||||||
| Office and surgical procedures | $ | 50.8 | 65 | % | -6 | % | ||||||
| Fertility | 27.9 | 35 | % | 15 | % | |||||||
| Total | $ | 78.7 | 100 | % | 0 | % |
The Company revises its full year fiscal
2014 guidance. Guidance is summarized as follows:
| FY14 Guidance Old | FY14 Guidance New | |||
| Revenues (In millions) | ||||
| Total | $1,675 - $1,735 | $1,685 - $1,725 | ||
| CVI | $1,355 - $1,395 | $1,365 - $1,395 | ||
| CSI | $320 - $340 | $320 - $330 | ||
| EPS | ||||
| GAAP | $6.70 - $7.00 | $6.75 - $7.00 | ||
| Non-GAAP | $6.70 - $7.00 | $6.75 - $7.00 |
Guidance assumes constant currency as of March 6, 2014.
Reconciliation of Non-GAAP EPS to GAAP EPS
our financial results presented on a GAAP basis, we use non-GAAP measures that we believe are helpful in understanding our results. The non-GAAP measures exclude, in our fiscal first quarter 2013, insurance proceeds related to a business
interruption claim and costs related to acquisitions. Our non-GAAP financial results and guidance are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our
consolidated financial statements and guidance prepared in accordance with GAAP. Management uses supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These
non-GAAP measures are among the factors management uses in planning and forecasting for future periods.
We also report revenue growth using the non-GAAP
financial measure of constant currency revenue. Management presents and refers to constant currency information so that revenue results may be evaluated excluding the effect of foreign currency rate fluctuations. To present this
information, current period revenue for entities reporting in currencies other than United States dollars are converted into United States dollars at the average foreign exchange rates for the corresponding period in the prior year. To report
revenue growth excluding the October 31, 2013 divestiture of Aime, we excluded fiscal first quarter of 2013 revenue of $7.2 million.
Conference Call and Webcast
The Company will host a conference call today at 5:00 PM ET to discuss its fiscal first quarter 2014 financial results and current corporate developments. The
dial-in number in the United States is 1-877-415-3184 and outside the United States is +1-857-244-7327. The passcode is 65586455. There will be a replay available approximately two hours after the call ends until Thursday, March 13, 2014. The
replay number in the United States is 1-888-286-8010 and outside the United States is +1-617-801-6888. The replay passcode is 26297443. This call will also be broadcast live at http://investor.coopercos.com and a transcript will be available
following the conference call.
About The Cooper Companies
The Cooper Companies, Inc. ( Cooper ) is a global medical device company publicly traded on the NYSE Euronext (NYSE:COO). Cooper is
dedicated to being A Quality of Life Company with a focus on delivering shareholder value. Cooper operates through two business units, CooperVision and CooperSurgical. CooperVision brings a refreshing perspective on vision care with
a commitment to developing a wide range of high-quality products for contact lens wearers and providing focused practitioner support. CooperSurgical focuses on supplying women s health clinicians with market leading products and treatment
options to improve the delivery of healthcare to women. Headquartered in Pleasanton, CA, Cooper has approximately 8,000 employees with products sold in over 100 countries. For more information, please
visit www.coopercos.com.
Forward-Looking Statements
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Statements relating
to guidance, plans, prospects, goals, strategies, future actions, events or performance and other statements which are other than statements of historical fact, including our 2014 Guidance and all statements regarding anticipated growth in our
revenue, anticipated effects of any product recalls, anticipated market conditions, planned product launches and expected results of operations and integration of any acquisition are forward-looking. To identify these statements look for words
like believes, expects, may, will, should, could, seeks, intends, plans, estimates or anticipates and similar words
or phrases. Forward-looking statements necessarily depend on assumptions, data or methods that may be incorrect or imprecise and are subject to risks and uncertainties.
Among the factors that could cause our actual results and future actions to differ materially from those described in forward-looking statements are: adverse
changes in the global or regional general business, political and economic conditions due to the current global economic downturn, including the impact of continuing uncertainty and instability of certain European Union countries that could
adversely affect our global markets; foreign currency exchange rate and interest rate fluctuations including the risk of further declines in the value of the yen and the euro that would decrease our revenues and earnings; acquisition
related adverse effects including the failure to successfully obtain the anticipated revenues, margins and earnings benefits of acquisitions, integration delays or costs and the requirement to
record significant adjustments to the preliminary fair value of assets acquired and liabilities assumed within the measurement period; a major disruption in the operations of our manufacturing, research and development or distribution facilities due
to technological problems, natural disasters or other causes; disruptions in supplies of raw materials, particularly components used to manufacture our silicone hydrogel lenses; limitations on sales following product introductions due to poor market
acceptance; new competitors, product innovations or technologies; reduced sales, loss of customers, and costs and expenses related to recalls; new U.S. and foreign government laws and regulations, and changes in existing laws, regulations and
enforcement guidance, which affect the medical device industry and the healthcare industry generally; failure to receive, or delays in receiving, U.S. or foreign regulatory approvals for products; failure to obtain adequate coverage and
reimbursement from third party payors for our products; compliance costs and potential liability in connection with U.S. and foreign healthcare regulations, including product recalls, and potential losses resulting from sales of counterfeit and
other infringing products; legal costs, insurance expenses, settlement costs and the risk of an adverse decision or settlement related to product liability, patent protection or other litigation; changes in tax laws or their interpretation and
changes in statutory tax rates; the requirement to provide for a significant liability or to write off, or accelerate depreciation on, a significant asset, including goodwill; the success of the Company s research and development activities and
other start-up projects; dilution to earnings per share from acquisitions or issuing stock; changes in accounting principles or estimates; environmental risks and other events described in our Securities and Exchange Commission filings, including
the Business and Risk Factors sections in the Company s Annual Report on Form 10-K for the fiscal year ended October 31, 2013, as such Risk Factors may be updated in quarterly filings.
We caution investors that forward-looking statements reflect our analysis only on their stated date. We disclaim any intent to update them except as required
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
| January 31, 2014 | October 31, 2013 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 28,828 | $ | 77,393 | ||||
| Trade receivables, net | 235,288 | 229,537 | ||||||
| Inventories | 339,496 | 338,917 | ||||||
| Deferred tax assets | 35,499 | 41,179 | ||||||
| Other current assets | 61,983 | 60,215 | ||||||
| Total current assets | 701,094 | 747,241 | ||||||
| Property, plant and equipment, net | 769,397 | 739,867 | ||||||
| Goodwill | 1,387,983 | 1,387,611 | ||||||
| Other intangibles, net | 190,812 | 198,769 | ||||||
| Deferred tax assets | 18,885 | 16,279 | ||||||
| Other assets | 46,584 | 47,494 | ||||||
| $ | 3,114,755 | $ | 3,137,261 | |||||
| LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||
| Current liabilities: | ||||||||
| Short-term debt | $ | 44,147 | $ | 42,987 | ||||
| Other current liabilities | 224,160 | 278,266 | ||||||
| Total current liabilities | 268,307 | 321,253 | ||||||
| Long-term debt | 301,589 | 301,670 | ||||||
| Deferred tax liabilities | 24,447 | 24,883 | ||||||
| Other liabilities | 66,503 | 65,961 | ||||||
| Total liabilities | 660,846 | 713,767 | ||||||
| Total Cooper stockholders equity | 2,435,279 | 2,404,535 | ||||||
| Noncontrolling interests | 18,630 | 18,959 | ||||||
| Stockholders equity | 2,453,909 | 2,423,494 | ||||||
| $ | 3,114,755 | $ | 3,137,261 |
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands, except earnings per share amounts)
| Three Months Ended January 31, | ||||||||
| 2014 | 2013 | |||||||
| Net sales | $ | 404,980 | $ | 379,839 | ||||
| Cost of sales | 142,051 | 139,341 | ||||||
| Gross profit | 262,929 | 240,498 | ||||||
| Selling, general and administrative expense | 158,088 | 150,653 | ||||||
| Research and development expense | 15,712 | 13,653 | ||||||
| Amortization of intangibles | 7,507 | 7,371 | ||||||
| Operating income | 81,622 | 68,821 | ||||||
| Interest expense | 1,656 | 2,567 | ||||||
| Gain on insurance proceeds | 14,084 | |||||||
| Other (expense) income, net | (510 | ) | 638 | |||||
| Income before income taxes | 79,456 | 80,976 | ||||||
| Provision for income taxes | 7,191 | 6,041 | ||||||
| Net income | 72,265 | 74,935 | ||||||
| Income attributable to noncontrolling interests | 422 | 268 | ||||||
| Net income attributable to Cooper stockholders | $ | 71,843 | $ | 74,667 | ||||
| Diluted earnings per share attributable to Cooper stockholders | $ | 1.47 | $ | 1.50 | ||||
| Number of shares used to compute earnings per share attributable to Cooper stockholders | 49,006 | 49,633 |
Soft Contact Lens Revenue Update
Worldwide Manufacturers Soft Contact Lens Revenue
(U.S. dollars in millions; constant currency; unaudited)
| Calendar 4Q13 | Trailing Twelve Months 2013 | |||||||||||||||||||||||
| Market | Market Change | CVI Change | Market | Market Change | CVI Change | |||||||||||||||||||
| Sales by Modality | ||||||||||||||||||||||||
| Single-use | $ | 787 | 12 | % | 19 | % | $ | 3,080 | 10 | % | 18 | % | ||||||||||||
| Other | 1,053 | 3 | % | 11 | % | 4,389 | 2 | % | 9 | % | ||||||||||||||
| WW Soft Contact Lenses | $ | 1,840 | 6 | % | 13 | % | $ | 7,469 | 5 | % | 11 | % | ||||||||||||
| Sales by Geography | ||||||||||||||||||||||||
| Americas | $ | 692 | 8 | % | 15 | % | $ | 2,955 | 6 | % | 12 | % | ||||||||||||
| EMEA | 520 | 5 | % | 12 | % | 2,100 | 4 | % | 9 | % | ||||||||||||||
| Asia Pacific | 628 | 6 | % | 10 | % | 2,414 | 5 | % | 12 | % | ||||||||||||||
| WW Soft Contact Lenses | $ | 1,840 | 6 | % | 13 | % | $ | 7,469 | 5 | % | 11 | % |
Source: Management estimates and independent market research