The Cooper Companies Announces Second Quarter 2012 Results
The Cooper Companies Announces Second Quarter 2012 Results
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Revenue increased 6% year-over-year to
$344.6 million . CooperVision (CVI) revenue up 5% to$288.0 million andCooperSurgical (CSI) revenue up 13% to$56.6 million . -
GAAP earnings per share (EPS)
$1.12 , up39 cents or 53% from last year's second quarter. -
Free cash flow
$60.7 million . Total debt decreased$91.0 million to$319.3 million from prior quarter.
Commenting on the results,
Second Quarter GAAP Operating Highlights
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Revenue
$344.6 million , 6% above second quarter 2011, 7% in constant currency. - Gross margin 64% compared with 62% in last year's second quarter. 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 favorable product mix.
- Operating margin 19% in line with last year's second quarter.
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Depreciation expense
$21.5 million , up 14% from last year's second quarter. Amortization$5.3 million , up 11% from last year's second quarter as a result of acquired intangible assets related to recent acquisitions. -
Interest expense
$3.1 million compared with$4.3 million in last year's second quarter. -
Total debt decreased
$91.0 million fromJanuary 31, 2012 to$319.3 million . -
Cash provided by operations
$80.6 million , capital expenditures$23.1 million , insurance recovery$3.2 million resulted in free cash flow of$60.7 million .
Second Quarter CooperVision (CVI) GAAP Operating Highlights
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Revenue
$288.0 million , up 5% from last year's second quarter, 6% in constant currency.
- Revenue by category:
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% |
- Revenue by geography:
Constant Currency | ||||
(In millions) | % of CVI Revenue | %chg | %chg | |
2Q12 | 2Q12 | y/y | y/y | |
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$ 122.0 | 42% | 4% | 4% |
EMEA | 98.0 | 34% | 1% | 6% |
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68.0 | 24% | 12% | 10% |
Total | $ 288.0 | 100% | 5% | 6% |
- Selected revenue by material:
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% |
- Gross margin 63% compared with 61% in the second 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 favorable product mix, resulting primarily from a shift to higher margin silicone hydrogel products.
Second Quarter CooperSurgical (CSI) GAAP Operating Highlights
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Revenue
$56.6 million , up 13% from last year's second quarter, up 8% excluding acquisitions.
- Revenue by category:
(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% |
- Gross margin 68%, up from 65% in last year's second quarter. The improvement in gross margin was largely a result of manufacturing efficiency improvements and favorable product mix resulting primarily from a shift to higher margin products used in surgical procedures.
Other Items
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On
May 31, 2012 , entered into an amendment to our senior unsecured revolving line of credit. Facility increased to$1.0 billion from$750.0 million , and the$234.4 million term loan was fully repaid using the new revolving facility. The facility offers additional availability, lower interest rates and extends maturity date toMay 31, 2017 fromJanuary 12 , 2016. -
On
June 4, 2012 , announced a voluntary tender offer to acquire all the issued and outstanding shares and warrants ofOrigio a/s, Oslo Stock Exchange (Oslo:ORO) for an aggregate price of approximatelyNOK 28 per share (see http://investor.coopercos.com for details). - No share repurchases in the quarter.
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 |
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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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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
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 certain
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) | ||
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2012 | 2011 | |
ASSETS | ||
Current assets: | ||
Cash and cash equivalents |
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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 |
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LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Current liabilities: | ||
Short-term debt |
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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 |
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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 |
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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 |
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Diluted earnings per share |
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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% |
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$ 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:Source:Kim Duncan Senior Director, Investor Relations 925-460-3663 ir@cooperco.com
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