The Cooper Companies Announces First Quarter 2009 Results
The Cooper Companies Announces First Quarter 2009 Results
PLEASANTON, Calif., Mar 5, 2009 (GlobeNewswire via COMTEX News Network) -- The Cooper Companies, Inc. (NYSE:COO) today announced financial results for the first quarter of fiscal 2009.
* First quarter 2009 revenue increased 3% year-over-year to
$251.1 million.
* First quarter 2009 CooperVision (CVI) revenue up 4% to $211.2
million, and CooperSurgical (CSI) revenue up 1% to $39.9
million.
* First quarter 2009 GAAP earnings per share (EPS) 53 cents,
up 38 cents from last year's first quarter.
* Fiscal 2009 revenue and EPS guidance confirmed.
Commenting on the results, Robert S. Weiss, Cooper's president and chief executive officer said, "We are very pleased with our first quarter results, especially given the challenging global economic environment. Both businesses posted revenue growth, and CooperVision recently launched Proclear® 1 Day in Japan and Biofinity® toric in the U.S. and Europe. Additionally, our cost control efforts resulted in strong operating results that position us well to meet our financial goals for the remainder of this year."
First Quarter Operating Highlights
* Revenue $251.1 million, 3% above first quarter 2008, 4% in
constant currency.
* Gross margin 57% compared with 59% in last year's first
quarter.
* Operating margin 13% compared with 8% in last year's first
quarter.
* Depreciation and amortization expense $25.0 million including
$5.4 million related to accelerated depreciation due to
equipment upgrades.
* Restructuring charge of $3.6 million comprised of severance
of $3.0 million in operating expenses and $0.6 million in cost
of sales.
* Other income, net $8.1 million comprised of $6.5 million from
foreign exchange, $1.8 million from extinguishment of debt
and other.
* Cash from operations $24.9 million and capital expenditures
$34.1 million resulted in negative free cash flow of $9.2 million.
First Quarter CVI Operating Highlights
* Revenue $211.2 million, up 4% from last year's first quarter,
4% in constant currency.
* Revenue by segment:
Constant
(In % of CVI Currency
thousands) Revenue %chg %chg
1Q09 1Q09 y/y y/y
---------- -------- ----- -----
Toric $ 62,604 30% -11% -4%
Multifocal 13,933 7% 9% 18%
Single-use sphere 43,231 20% 23% 18%
Non single-use
sphere, other 91,440 43% -4% 4%
---------- --------
Total $ 211,208 100% 4% 4%
========== ========
* Revenue by geography:
Constant
(In % of CVI Currency
thousands) Revenue %chg %chg
1Q09 1Q09 y/y y/y
---------- -------- ----- -----
Americas $ 86,115 41% -1% 1%
Europe 82,278 39% 2% 6%
Asia Pacific 42,815 20% 18% 9%
---------- --------
Total $ 211,208 100% 4% 4%
========== ========
* Revenue by product line:
Constant
(In % of CVI Currency
thousands) Revenue %chg %chg
1Q09 1Q09 y/y y/y
---------- -------- ----- -----
Proclear $ 56,744 27% 10% 22%
Silicone hydrogel $ 16,728 8% 84% 106%
* Gross margin 56% compared with 59% in the first quarter of 2008.
* Operating margin 15% compared with 11% in last year's first
quarter.
First Quarter CSI Operating Highlights
* Revenue $39.9 million, up 1% from last year's first quarter.
* Sales of products marketed directly to hospitals increased 19%
year-over-year to $13.7 million and now represent 34% of CSI's
total revenue.
* Gross margin 62%, up from 60% in last year's first quarter.
* Operating margin 23%, up from 17% in last year's first quarter.
2009 Guidance
The Company confirms fiscal 2009 guidance with revenue in the range of $1,030 million to $1,100 million, including CVI revenue of $865 million to $925 million and CSI revenue of $165 million to $175 million. GAAP EPS guidance for fiscal 2009 is confirmed in the range of $2.16 to $2.36.
Conference Call and Webcast
The Company will host a conference call today at 5:00 p.m. ET to discuss its first quarter 2009 financial results. The dial in number in the United States is +1-800-561-2731 and outside the United States is +1-617-614-3528. The passcode is 75730392. There will be a replay available approximately one hour after the call ends until Thursday, March 12, 2009. 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 97892818. This call will be broadcast live on our website at www.coopercos.com and at www.streetevents.com. A transcript will be available on our Web site within 24 hours after the conference call.
About The Cooper Companies
The Cooper Companies, Inc. develops, manufactures and markets specialty healthcare products through its CooperVision and CooperSurgical units. Corporate offices are located in Pleasanton, CA. For more information, visit www.coopercos.com.
CooperVision develops, manufactures and markets a broad range of soft contact lenses for the worldwide vision correction market. Dedicated to enhancing the contact lens experience for practitioners and patients, CooperVision specializes in lenses for astigmatism, presbyopia and ocular dryness. CooperVision manufactures a full array of monthly, two-week and daily disposable contact lenses featuring advanced materials and optics. Headquartered in Pleasanton, CA, it manufactures in Juana Diaz, Puerto Rico; Norfolk, VA; Rochester, NY; Adelaide, Australia; Hamble and Hampshire, England; and Madrid, Spain. For more information, visit www.coopervision.com.
CooperSurgical develops, manufactures and markets medical devices, diagnostic products and surgical instruments and accessories used primarily by gynecologists and obstetricians. Its major manufacturing and distribution facilities are in Trumbull, CT, and Stafford, TX. For more information, visit www.coopersurgical.com.
The information on Cooper's Web sites and its interactive telephone system are not part of this news release.
Forward-Looking Statements
This news release contains "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. Statements relating to plans, prospects, goals, strategies, future actions, events or performance and other statements which are other than statements of historical fact, including all statements regarding anticipated growth in our revenue, 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 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 U.S. and international credit markets that may adversely affect the Company's or its customers' ability to meet future liquidity needs; limitations on sales following new product introductions due to poor market acceptance; new competitors, product innovations or technologies; 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; the impact of acquisitions or divestitures on revenues, earnings or margins; losses arising for pending or future litigation or product recalls; interest rate and foreign currency exchange rate fluctuations; the requirement to provide for a significant liability or to write off, or accelerate depreciation on, a significant asset, including impaired goodwill as a result of declines in the price of the Company's common stock or other events; changes in U.S. and foreign government regulation of the retail optical industry and of the healthcare industry generally; changes in tax laws or their interpretation and changes in effective tax rates; changes in the Company's expected utilization of recognized net operating loss carry forwards 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, 2008, 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 by law.
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
-------------------------------------
(In thousands)
(Unaudited)
January 31, October 31,
2009 2008
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 1,885 $ 1,944
Trade receivables, net 158,764 159,158
Inventories 286,587 283,454
Deferred tax asset 26,948 26,337
Other current assets 62,346 55,139
------------ ------------
Total current assets 536,530 526,032
------------ ------------
Property, plant and equipment, net 581,225 602,654
Goodwill 1,241,492 1,251,699
Other intangibles, net 127,582 130,587
Deferred tax asset 28,445 25,645
Other assets 35,746 50,999
------------ ------------
$ 2,551,020 $ 2,587,616
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt $ 41,789 $ 43,013
Other current liabilities 212,038 212,394
------------ ------------
Total current liabilities 253,827 255,407
------------ ------------
Long-term debt 871,367 861,781
Other liabilities 34,082 38,156
Deferred tax liabilities 12,623 15,196
------------ ------------
Total liabilities 1,171,899 1,170,540
------------ ------------
Stockholders' equity 1,379,121 1,417,076
------------ ------------
$ 2,551,020 $ 2,587,616
============ ============
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Income
-------------------------------------------
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
January 31,
----------------------------
2009 2008
------------ ------------
Net sales $ 251,142 $ 242,772
Cost of sales 109,007 99,890
------------ ------------
Gross profit 142,135 142,882
Selling, general and administrative
expense 94,992 109,880
Research and development expense 7,232 8,131
Restructuring costs 2,954 823
Amortization of intangibles 4,177 4,097
------------ ------------
Operating income 32,780 19,951
Interest expense 11,457 11,106
Other income, net 8,145 642
------------ ------------
Income before income taxes 29,468 9,487
Provision for income taxes 5,595 2,610
------------ ------------
Net income $ 23,873 $ 6,877
============ ============
Diluted earnings per share $ 0.53 $ 0.15
============ ============
Number of shares used to compute
earnings per share 45,141 45,129
============ ============
Soft Contact Lens Revenue Update: Fourth Quarter and Calendar Year 2008
CVI Revenue in Constant Currency vs. the Worldwide Market in Constant Currency
The data below is extracted from a compilation of industry participants' revenue by the Contact Lens Institute (CLI), an independent market research firm.
Worldwide Manufacturers' Soft Lens Revenue
Independent Market Research Data
(U.S. dollars in millions; constant currency; unaudited)
Cooper Cooper
CYQ4 Vision CY Vision
2008 % % 2008 % %
Market Change Change Market Change Change
------- ------ ------ ------- ------ ------
Single
-Use
Spherical
Lenses $ 485 6% 20% $ 1,936 10% 29%
Spherical
Lenses
(ex
single
-use) 605 1% (1%) 2,567 2% 3%
------- -------
Total
Spheres 1,090 3% 5% 4,503 5% 10%
------- -------
Torics 240 6% (2%) 1,004 9% 4%
Multifocal 52 10% 18% 203 10% 20%
------- -------
Soft
Contact
Lenses $ 1,382 4% 4% $ 5,710 6% 8%
======= =======
Total
Silicone
Hydrogel $ 442 23% 179% $ 1,773 25% 351%
Americas
Region $ 505 2% (3%) $ 2,233 5% 6%
European
Region 450 8% 8% 1,797 8% 9%
Asia
Pacific
Region 427 2% 10% 1,680 5% 11%
------- -------
Worldwide
Soft
Contact
Lenses $ 1,382 4% 4% $ 5,710 6% 8%
======= =======
United
States $ 431 1% (3%) $ 1,937 6% 6%
Internat-
ional 951 5% 8% 3,773 6% 9%
------- -------
Worldwide
Soft
Contact
Lenses $ 1,382 4% 4% $ 5,710 6% 8%
======= =======
COO-E
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: The Cooper Companies, Inc.
The Cooper Companies, Inc. Albert G. White, III, VP, Investor Relations and Treasurer Kim Duncan, Director, Investor Relations 925-460-3663 ir@coopercompanies.com www.coopercos.com
© Copyright 2009 GlobeNewswire, Inc. All rights reserved.
News Provided by COMTEX