The Cooper Companies, Inc.
Jun 7, 2012

The Cooper Companies Announces Second Quarter 2012 Results

PLEASANTON, Calif., June 7, 2012 (GLOBE NEWSWIRE) -- The Cooper Companies, Inc. (NYSE:COO) today announced financial results for the fiscal second quarter ended April 30, 2012.

Commenting on the results, Robert S. Weiss, Cooper's president and chief executive officer said, "I'm proud to report another strong quarter which included market share gains, improving margins, double-digit earnings growth and significant free cash flow generation. Additionally, as announced earlier this week, we have made a tender offer to acquire all of the shares of Origio, which would position CooperSurgical as a global leader in the in-vitro fertilization market. This acquisition, if completed, would continue our long history of adding shareholder value through strategic acquisitions."

Second Quarter GAAP Operating Highlights

Second Quarter CooperVision (CVI) GAAP Operating Highlights

        Constant Currency
  (In millions) % of CVI Revenue %chg %chg
  2Q12 2Q12 y/y y/y
Toric  $ 89.4 31% 5% 8%
Multifocal  22.3 8% 23% 26%
Single-use sphere  62.6 22% 6% 6%
Non single-use sphere, other  113.7 39% 0% 2%
Total  $ 288.0 100% 5% 6%
        Constant Currency
   (In millions)  % of CVI Revenue %chg %chg
   2Q12  2Q12 y/y y/y
Americas  $ 122.0 42% 4% 4%
EMEA  98.0 34% 1% 6%
Asia Pacific  68.0 24% 12% 10%
Total  $ 288.0 100% 5% 6%
        Constant Currency
   (In millions)  % of CVI Revenue %chg %chg
   2Q12  2Q12 y/y y/y
         
Silicone hydrogel  $ 103.8 36% 29% 32%
Proclear®  $ 71.4 25% -4% -2%

Second Quarter CooperSurgical (CSI) GAAP Operating Highlights

  (In millions) % of CSI Revenue %chg
  2Q12 2Q12 y/y
Office, other  $ 30.6 54% 8%
Surgical procedures  22.0 39% 22%
Fertility  4.0 7% 8%
Total  $ 56.6 100% 13%

Other Items

2012 Guidance

The Company revises its full-year 2012 revenue and EPS guidance. Guidance is summarized as follows:

  FY12 Guidance FY12 Guidance
  Old New
Revenues (In millions)    
Total $1,385-$1,440 $1,400-$1,440
CVI $1,170-$1,210 $1,175-$1,205
CSI $215-$230 $225-$235
EPS    
GAAP $4.90-$5.15 $4.88-$5.13
Non-GAAP $4.90-$5.15 $4.90-$5.15
Free Cash Flow (In millions) $200-$230 $200-$230
 
Guidance assumes constant currency at the date of issuance and no pending acquisitions.

Conference Call and Webcast

The Company will host a conference call today at 5:00 PM ET to discuss its fiscal second quarter 2012 financial results. The dial in number in the United States is +1-866-713-8307 and outside the United States is +1-617-597-5307. The passcode is 53347242. There will be a replay available approximately two hours after the call ends until Thursday, June 14, 2012. 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 64382545. This call will be broadcast live on our website at www.coopercos.com. A transcript will be available on our website 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 crafting 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 over 7,000 employees with products sold in over 100 countries. For more information, please visit www.coopercos.com.

The Cooper Companies, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10403

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 2012 Guidance and all statements regarding anticipated growth in our revenue, 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; reduced sales, loss of customers, and costs and expenses related to the recall of certain lots of Avaira Toric and Avaira Sphere contact lenses; foreign currency exchange rate and interest rate fluctuations including the risk of further declines in the value of the Euro that would decrease our revenues and earnings; 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; legal costs, insurance expenses, settlement costs and the risk of an adverse decision or settlement related to product liability, patent or other litigation; limitations on sales following new product introductions due to poor market acceptance; new competitors, product innovations or technologies; the impact of acquisitions or divestitures on revenues, earnings or margins; the requirement to provide for a significant liability or to write off, or accelerate depreciation on, a significant asset, including goodwill; changes in United States and foreign government regulations of the retail optical industry and of the healthcare industry generally; changes in tax laws or their interpretation and changes in effective tax rates; dilution to earnings per share from acquisitions or issuing stock 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, 2011, 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,
  2012 2011
 
ASSETS
 
Current assets:  
Cash and cash equivalents $7,745 $5,175
Trade receivables, net 202,882 214,779
Inventories 286,069 253,584
Deferred tax assets 33,226 33,684
Other current assets 46,361 33,125
Total current assets 576,283 540,347
Property, plant and equipment, net 593,603 609,205
Goodwill 1,275,444 1,276,567
Other intangibles, net 118,077 128,341
Deferred tax assets 20,237 21,828
Other assets 44,917 48,230
  $2,628,561 $2,624,518
 
LIABILITIES AND STOCKHOLDERS' EQUITY
     
Current liabilities:  
Short-term debt $44,216 $52,979
Other current liabilities 183,909 214,227
Total current liabilities 228,125 267,206
Long-term debt 275,092 327,453
Deferred tax liabilities 19,008 20,127
Other liabilities 68,380 72,244
Total liabilities 590,605 687,030
Stockholders' equity 2,037,956 1,937,488
  $2,628,561 $2,624,518
 
 
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands, except earnings per share amounts)
(Unaudited)
         
   Three Months Ended  Six Months Ended
   April 30 ,   April 30,
  2012 2011 2012 2011
Net sales  $344,589 $325,301 $670,649 $618,530
Cost of sales 123,893 123,539 239,500 240,162
Gross profit 220,696 201,762 431,149 378,368
Selling, general and administrative  
expense 136,962 126,382 268,710 239,835
Research and development expense 13,031 10,390 24,455 20,117
Amortization of intangibles 5,263 4,734 10,816 9,447
Operating income 65,440 60,256 127,168 108,969
Interest expense 3,071 4,268 6,733 11,219
Loss on extinguishment of debt - 16,487 - 16,487
Other income (expense), net 310 219 992 (514)
Income before income taxes 62,679 39,720 121,427 80,749
Provision for income taxes 7,758 4,360 11,883 6,174
Net income $54,921 $35,360 $109,544 $74,575
         
Diluted earnings per share $1.12 $0.73 $2.24 $1.56
         
Number of shares used to compute earnings
per share 49,007 48,239 48,941 47,807

Soft Contact Lens Revenue Update

Worldwide Market vs. CooperVision (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. This data is compiled using gross product sales at foreign exchange rates set by CLI. It therefore excludes items such as discounts, rebates, currency hedges and freight reimbursements.

Worldwide Manufacturers' Soft Contact Lens Revenue          
(U.S. dollars in millions; constant currency; unaudited)          
             
     
  Calendar 1Q12 Trailing Twelve Months 2012
    Market CVI   Market CVI
  Market Change Change Market Change Change
Sales by Category            
Spheres  $ 1,366 4% 10%  $ 5,379 3% 8%
Torics  354 11% 13%  1,334 9% 10%
Multifocal  87 13% 34%  335 9% 13%
WW Soft Contact Lenses  $ 1,807 6% 12%  $ 7,048 5% 9%
             
Sales by Modality            
Single-use  $ 681 9% 15%  $ 2,704 9% 11%
Other  1,126 4% 11%  4,344 2% 8%
WW Soft Contact Lenses  $ 1,807 6% 12%  $ 7,048 5% 9%
             
Sales by Geography            
Americas   $ 719 10% 13%  $ 2,660 6% 9%
EMEA  481 2% 9%  1,952 4% 8%
Asia Pacific   607 4% 14%  2,436 4% 11%
WW Soft Contact Lenses  $ 1,807 6% 12%  $ 7,048 5% 9%
             
United States  $ 631 11% 14%  $ 2,307 7% 9%
International  1,176 3% 11%  4,741 3% 8%
WW Soft Contact Lenses  $ 1,807 6% 12%  $ 7,048 5% 9%
             

COO-E

CONTACT: Kim Duncan

         Senior Director, Investor Relations

         925-460-3663

         ir@cooperco.com

The Cooper Companies, Inc. Logo

Source: The Cooper Companies, Inc.

News Provided by Acquire Media