The Cooper Companies Announces Second Quarter 2009 Results
The Cooper Companies Announces Second Quarter 2009 Results
PLEASANTON, Calif., Jun 4, 2009 (GlobeNewswire via COMTEX News Network) -- The Cooper Companies, Inc. (NYSE:COO) today announced financial results for the second quarter of fiscal 2009.
* Second quarter 2009 revenue increased 1% year-over-year to $260.6 million. Revenue increased 4% in constant currency. * Second quarter 2009 GAAP earnings per share (EPS) 54 cents, up 29 cents or 116% from last year's second quarter. * Second quarter free cash flow of $23.9 million. Total debt declined to $895.6 million. * 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 second quarter results as we generated strong earnings growth, solid free cash flow and made progress with several key products including our silicone hydrogel spheres, Avaira® and Biofinity®. Our Biofinity toric launch in the U.S. and Europe continues ahead of schedule, and our growth in the single-use modality remains strong. We remain committed to growing the business for the long term while prudently managing costs in today's economic environment."
Second Quarter Operating Highlights
* Revenue $260.6 million, 1% above second quarter 2008, 4% in constant currency. * Gross margin 57% compared with 58% in last year's second quarter. * Operating margin 16% compared with 11% in last year's second quarter. * Depreciation and amortization expense $21.0 million, including $1.0 million in accelerated depreciation. * Research and development $10.1 million, including a one-time in-process R&D charge of $3.0 million, or 7 cents per share, for the acquisition of certain distribution rights. * Interest expense $10.8 million, or 4% of sales vs. $12.1 million, or 5% of sales in last year's second quarter. * Capital expenditures $20.0 million.
Second Quarter CooperVision (CVI) Operating Highlights
* Revenue $217.8 million, consistent with last year's second
quarter, up 4% in constant currency.
* Revenue by segment:
Constant
(In % of CVI Currency
thousands) Revenue %chg %chg
2Q09 2Q09 y/y y/y
-------- -------- ------ ------
Toric $ 65,393 30% -11% -1%
Multifocal 14,601 7% 6% 17%
Single-use sphere 43,944 20% 11% 16%
Non single-use sphere, other 93,880 43% -9% 1%
-------- --------
Total $217,818 100% n/c 4%
======== ========
* Revenue by geography:
Constant
(In % of CVI Currency
thousands) Revenue %chg %chg
2Q09 2Q09 y/y y/y
-------- -------- ------ ------
Americas $ 97,791 45% 3% 4%
Europe 81,480 37% -4% 4%
Asia Pacific 38,547 18% 1% 5%
-------- --------
Total $217,818 100% n/c 4%
======== ========
* Revenue by material:
Constant
(In % of CVI Currency
thousands) Revenue %chg %chg
2Q09 2Q09 y/y y/y
-------- -------- ------ ------
Proclear $ 60,603 28% 1% 14%
Silicone hydrogel $ 23,528 11% 88% 109%
* Gross margin 56% compared with 58% in the second quarter of 2008.
* Operating margin 16% compared with 12% in last year's second
quarter.
Second Quarter CooperSurgical (CSI) Operating Highlights
* Revenue $42.8 million, up 3% from last year's second quarter. * Sales of products marketed directly to hospitals increased 18% year-over-year to $14.0 million and now represent 33% of CSI's total revenue up from 29% in last year's second quarter. * Gross margin 61%, up from 59% in last year's second quarter. * Operating margin 26%, up from 19% in last year's second 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 second quarter 2009 financial results. The dial in number in the United States is +1-800-299-9630 and outside the United States is +1-617-786-2904. The passcode is 63788046. There will be a replay available approximately two hours after the call ends until Thursday, June 11, 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 27011858. 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 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 and other 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 goodwill; 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)
April 30, October 31,
2009 2008
---------- ----------
ASSETS
Current assets:
Cash and cash equivalents $ 4,472 $ 1,944
Trade receivables, net 156,409 159,158
Inventories 288,196 283,454
Deferred tax asset 25,640 26,337
Other current assets 49,815 55,139
---------- ----------
Total current assets 524,532 526,032
---------- ----------
Property, plant and equipment, net 588,390 602,654
Goodwill 1,244,965 1,251,699
Other intangibles, net 123,760 130,587
Deferred tax asset 26,442 25,645
Other assets 38,242 50,999
---------- ----------
$2,546,331 $2,587,616
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt $ 47,214 $ 43,013
Other current liabilities 164,826 212,394
---------- ----------
Total current liabilities 212,040 255,407
---------- ----------
Long-term debt 848,379 861,781
Other liabilities 44,377 38,156
Deferred tax liabilities 12,974 15,196
---------- ----------
Total liabilities 1,117,770 1,170,540
---------- ----------
Stockholders' equity 1,428,561 1,417,076
---------- ----------
$2,546,331 $2,587,616
========== ==========
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Income
-------------------------------------------
(In thousands, except earnings per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
April 30, April 30,
-------------------- --------------------
2009 2008 2009 2008
-------- -------- -------- --------
Net sales $260,594 $259,248 $511,736 $502,020
Cost of sales 111,537 109,240 220,545 209,130
-------- -------- -------- --------
Gross profit 149,057 150,008 291,191 292,890
Selling, general and
administrative expense 93,705 107,529 188,697 217,409
Research and
development expense 10,065 9,116 17,295 17,248
Restructuring costs -- 526 2,954 1,349
Amortization of
intangibles 4,080 4,371 8,257 8,467
-------- -------- -------- --------
Operating income 41,207 28,466 73,988 48,417
Interest expense 10,830 12,070 22,287 23,176
Other income (expense),
net 260 (450) 8,404 192
-------- -------- -------- --------
Income before income
taxes 30,637 15,946 60,105 25,433
Provision for income
taxes 5,988 4,705 11,583 7,315
-------- -------- -------- --------
Net income $ 24,649 $ 11,241 $ 48,522 $ 18,118
======== ======== ======== ========
Diluted earnings
per share $ 0.54 $ 0.25 $ 1.07 $ 0.40
======== ======== ======== ========
Number of shares used
to compute earnings
per share 45,523 47,740 45,204 47,759
======== ======== ======== ========
Soft Contact Lens Revenue Update: First Calendar Quarter 2009
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)
CYQ1 2009 CooperVision
Market % Change % Change
--------- -------- ------------
Single-Use Spherical Lenses $ 469 1% 21%
Spherical Lenses (ex single-use) 659 2% 9%
------
Total Spheres 1,128 2% 12%
------
Torics 258 9% (4%)
Multifocal 59 23% 15%
------
Soft Contact Lenses $1,445 4% 7%
======
Total Silicone Hydrogel $ 499 22% 115%
Americas Region $ 588 8% 7%
European Region 412 3% 5%
Asia Pacific Region 445 (1%) 9%
------
Worldwide Soft Contact Lenses $1,445 4% 7%
======
United States $ 525 8% 9%
International 920 1% 5%
------
Worldwide Soft Contact Lenses $1,445 4% 7%
======
COO-E
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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
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