The Cooper Companies Announces First Quarter 2012 Results
The Cooper Companies Announces First Quarter 2012 Results
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Revenue increased 11% year-over-year to
$326.1 million . CooperVision (CVI) revenue up 10% to$268.9 million andCooperSurgical (CSI) revenue up 15% to$57.2 million . -
GAAP earnings per share (EPS)
$1.12 , up29 cents or 35% from last year's first quarter. - Fiscal 2012 EPS guidance revised upward.
Commenting on the results,
First Quarter GAAP Operating Highlights
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Revenue
$326.1 million , 11% above first quarter 2011, 11% in constant currency. - Gross margin 65% compared with 60% in last year's first quarter. The improvement was primarily the result of savings related to the closure of the Norfolk manufacturing plant completed in the fiscal first quarter of 2011, increased manufacturing efficiencies, and product mix.
- Operating margin 19% compared with 17% in last year's first quarter. The increase was driven by the improvement in gross margin offset by investments in sales, marketing, and research and development, and increased amortization expense.
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Depreciation expense
$20.2 million , up 11% from last year's first quarter. Amortization$5.6 million , up 18% from last year's first quarter as a result of acquired intangible assets related to recent acquisitions. -
Interest expense
$3.7 million compared with$7.0 million in last year's first quarter. -
Total debt increased
$29.9 million in the quarter to$410.3 million , due primarily to share repurchases. -
Cash provided by operations
$41.6 million , capital expenditures$20.0 million , insurance recovery$1.6 million resulted in free cash flow of$23.2 million .
First Quarter CooperVision (CVI) GAAP Operating Highlights
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Revenue
$268.9 million , up 10% from last year's first quarter, 10% in constant currency.
- Revenue by category:
Constant Currency | ||||
(In millions) | % of CVI Revenue | %chg | %chg | |
1Q12 | 1Q12 | y/y | y/y | |
Toric | $ 81.8 | 30% | 8% | 9% |
Multifocal | 20.8 | 8% | 25% | 26% |
Single-use sphere | 60.4 | 23% | 14% | 10% |
Non single-use sphere, other | 105.9 | 39% | 8% | 8% |
Total | $ 268.9 | 100% | 10% | 10% |
- Revenue by geography:
Constant Currency | ||||
(In millions) | % of CVI Revenue | %chg | %chg | |
1Q12 | 1Q12 | y/y | y/y | |
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$ 106.0 | 39% | 10% | 11% |
EMEA | 95.4 | 36% | 5% | 7% |
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67.5 | 25% | 19% | 13% |
Total | $ 268.9 | 100% | 10% | 10% |
- Selected revenue by material:
Constant Currency | ||||
(In millions) | % of CVI Revenue | %chg | %chg | |
1Q12 | 1Q12 | y/y | y/y | |
Proclear® | $ 70.8 | 26% | 7% | 6% |
Silicone hydrogel | $ 86.9 | 32% | 39% | 40% |
- Gross margin 64% compared with 59% in the first quarter of 2011. The improvement was the result of savings related to the closure of the Norfolk manufacturing plant completed in the fiscal first quarter of 2011, increased manufacturing efficiencies, and product mix, primarily the shift to higher margin silicone hydrogel products.
First Quarter CooperSurgical (CSI) GAAP Operating Highlights
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Revenue
$57.2 million , up 15% from last year's first quarter, up 9% excluding acquisitions.
- Revenue by category:
(In millions) | % of CSI Revenue | %chg | |
1Q12 | 1Q12 | y/y | |
Office, other | $ 30.5 | 53% | 10% |
Surgical procedures | 22.9 | 40% | 24% |
Fertility | 3.8 | 7% | 10% |
Total | $ 57.2 | 100% | 15% |
- Gross margin 67%, up from 64% in last year's first quarter. The improvement in gross margin was largely a result of manufacturing efficiency improvements and product mix including higher margin products used in surgical procedures.
Other Items
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Share repurchases
$46.1 million or approximately 663,000 shares. -
IRS Notice of Deficiency for the tax years 2005 and 2006 settled, resulting in a favorable adjustment to the effective tax rate.
2012 Guidance
The Company revises upward its full-year 2012 EPS guidance. Guidance is summarized as follows:
FY12 Guidance | FY12 Guidance | |
Old | New | |
Revenues (In millions) | ||
Total |
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CVI |
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CSI |
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EPS | ||
GAAP |
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Non-GAAP |
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Free |
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Conference Call and Webcast
The Company will host a conference call today at
About
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
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.
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Consolidated Condensed Balance Sheets | ||
(In thousands) | ||
(Unaudited) | ||
January 31, | October 31, | |
2012 | 2011 | |
ASSETS | ||
Current assets: | ||
Cash and cash equivalents |
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Trade receivables, net | 200,160 | 214,779 |
Inventories | 272,774 | 253,584 |
Deferred tax assets | 29,113 | 33,684 |
Other current assets | 45,535 | 33,125 |
Total current assets | 555,263 | 540,347 |
Property, plant and equipment, net | 583,239 | 609,205 |
Goodwill | 1,272,030 | 1,276,567 |
Other intangibles, net | 122,873 | 128,341 |
Deferred tax assets | 21,213 | 21,828 |
Other assets | 44,649 | 48,230 |
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LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Current liabilities: | ||
Short-term debt |
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Other current liabilities | 167,201 | 214,227 |
Total current liabilities | 206,392 | 267,206 |
Long-term debt | 371,114 | 327,453 |
Other liabilities | 65,776 | 72,244 |
Deferred tax liabilities | 18,628 | 20,127 |
Total liabilities | 661,910 | 687,030 |
Stockholders' equity | 1,937,357 | 1,937,488 |
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Consolidated Statements of Income | ||
(In thousands, except earnings per share amounts) | ||
(Unaudited) | ||
Three Months Ended | ||
January 31, | ||
2012 | 2011 | |
Net sales |
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Cost of sales | 115,607 | 116,623 |
Gross profit | 210,453 | 176,606 |
Selling, general and administrative expense | 131,748 | 113,453 |
Research and development expense | 11,425 | 9,727 |
Amortization of intangibles | 5,552 | 4,713 |
Operating income | 61,728 | 48,713 |
Interest expense | 3,662 | 6,951 |
Other income (loss), net | 681 | (734) |
Income before income taxes | 58,747 | 41,028 |
Provision for income taxes | 4,124 | 1,813 |
Net income |
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Diluted earnings per share |
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Number of shares used to compute earnings per share | 48,792 | 47,391 |
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 4Q11 | Calendar 2011 | |||||
Market | CVI | Market | CVI | |||
Market | Change | Change | Market | Change | Change | |
Sales by Category | ||||||
Spheres | $ 1,282 | 4% | 6% | $ 5,252 | 3% | 6% |
Torics | 314 | 8% | 10% | 1,297 | 7% | 10% |
Multifocal | 85 | 10% | 16% | 327 | 7% | 3% |
WW Soft Contact Lenses | $ 1,681 | 5% | 7% | $ 6,876 | 4% | 7% |
Sales by Modality | ||||||
Single-use | $ 646 | 11% | 8% | $ 2,586 | 9% | 9% |
Other | 1,035 | 2% | 7% | 4,290 | 2% | 6% |
WW Soft Contact Lenses | $ 1,681 | 5% | 7% | $ 6,876 | 4% | 7% |
Sales by Material | ||||||
Hydrogel | $ 957 | 0% | (4%) | $ 3,937 | (1%) | (5%) |
Silicone Hydrogel | 724 | 12% | 37% | 2,939 | 12% | 41% |
WW Soft Contact Lenses | $ 1,681 | 5% | 7% | $ 6,876 | 4% | 7% |
Sales by Geography | ||||||
Americas | $ 617 | 6% | 11% | $ 2,611 | 4% | 6% |
EMEA | 492 | 5% | 4% | 1,993 | 5% | 7% |
Asia Pacific | 572 | 5% | 8% | 2,272 | 4% | 9% |
WW Soft Contact Lenses | $ 1,681 | 5% | 7% | $ 6,876 | 4% | 7% |
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$ 522 | 7% | 11% | $ 2,239 | 5% | 6% |
International | 1,159 | 5% | 5% | 4,637 | 4% | 7% |
WW Soft Contact Lenses | $ 1,681 | 5% | 7% | $ 6,876 | 4% | 7% |
COO-E
CONTACT:Source:Kim Duncan Sr. Director, Investor Relations ir@cooperco.com 925-460-3663
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