CooperCompanies (Nasdaq: COO), a leading global medical device
company, today announced financial results for its fiscal third
quarter ended July 31, 2024.
- Revenue increased 8% year-over-year
to $1,002.8 million. CooperVision (CVI) revenue up 7%
to $675.6 million, and CooperSurgical (CSI) revenue up 9%
to $327.2 million.
- GAAP diluted earnings per share
(EPS) of $0.52, up $0.09 or 22% from last year's third
quarter.
- Non-GAAP diluted EPS of $0.96, up
$0.12 or 14% from last year's third quarter. See "Reconciliation of
Selected GAAP Results to Non-GAAP Results" below.
Commenting on the results, Al White, Cooper's President and CEO
said, "Our strong performance this quarter reflects the strength of
our business, the successful execution on our multi-year growth
strategy, and the hard work and dedication of our amazing
employees. Our momentum is strong, and we are well positioned for
success today and into the future."
Third Quarter Operating
Results
- Revenue of $1,002.8 million, up 8%
from last year’s third quarter, up 10% in constant currency, up 8%
organically.
- Gross margin of 66% compared with
66% in last year’s third quarter. On a non-GAAP basis, gross margin
was 67%, up from 66% last year. The margin was driven by continuing
efficiency gains and product mix, offset by currency.
- Operating margin of 19% compared
with 16% in last year’s third quarter. On a non-GAAP basis,
operating margin was 26%, up from 24% last year. The margin was
driven by strong gross margin and SG&A expense leverage.
- Interest expense of $28.5 million
compared with $26.8 million in last year's third quarter driven by
higher average debt and higher interest rates. On a non-GAAP basis,
interest expense was $27.1 million, up from $26.8 million.
- Cash provided by operations of
$207.5 million offset by capital expenditures of
$89.0 million resulted in free cash flow of
$118.5 million.
Third Quarter CooperVision (CVI)
Revenue
- Revenue of $675.6 million, up 7%
from last year’s third quarter, up 9% in constant currency, up 10%
organically.
- Revenue by category:
| |
|
|
|
% change y/y |
| |
|
(In millions) |
|
|
|
Currency |
|
Constant |
|
Acquisitions and |
|
|
| |
|
3Q24 |
|
Reported |
|
Impact |
|
Currency |
|
Divestitures |
|
Organic |
|
|
Toric and multifocal |
$ |
326.4 |
|
10% |
|
2% |
|
12% |
|
—% |
|
12% |
| |
Sphere, other |
|
349.2 |
|
5% |
|
2% |
|
7% |
|
1% |
|
8% |
| |
Total |
$ |
675.6 |
|
7% |
|
2% |
|
9% |
|
1% |
|
10% |
| |
|
| |
|
|
|
% change y/y |
| |
|
(In millions) |
|
|
|
Currency |
|
Constant |
|
Acquisitions and |
|
|
| |
|
3Q24 |
|
Reported |
|
Impact |
|
Currency |
|
Divestitures |
|
Organic |
|
|
Americas |
$ |
279.8 |
|
13% |
|
—% |
|
13% |
|
—% |
|
13% |
| |
EMEA |
|
256.5 |
|
6% |
|
1% |
|
7% |
|
—% |
|
7% |
| |
Asia Pacific |
|
139.3 |
|
—% |
|
7% |
|
7% |
|
—% |
|
7% |
| |
Total |
$ |
675.6 |
|
7% |
|
2% |
|
9% |
|
1% |
|
10% |
| |
|
Third Quarter CooperSurgical (CSI)
Revenue
- Revenue of $327.2 million, up 9%
from last year's third quarter, up 10% in constant currency, up 5%
organically.
- Revenue by category:
| |
|
|
|
% change y/y |
| |
|
(In millions) |
|
|
|
Currency |
|
Constant |
|
Acquisitions and |
|
|
| |
|
3Q24 |
|
Reported |
|
Impact |
|
Currency |
|
Divestitures |
|
Organic |
|
|
Office and surgical |
$ |
197.9 |
|
11% |
|
—% |
|
11% |
|
(9)% |
|
2% |
| |
Fertility |
|
129.3 |
|
6% |
|
3% |
|
9% |
|
1% |
|
10% |
| |
Total |
$ |
327.2 |
|
9% |
|
1% |
|
10% |
|
(5)% |
|
5% |
| |
Fiscal Year 2024 Financial Guidance
The Company raised its fiscal year 2024 financial guidance.
Details are summarized as follows:
- Fiscal 2024 total
revenue of $3,892 - $3,913 million (organic growth of 8% to 8.5%)
- CVI revenue of
$2,606 - $2,618 million (organic growth of 9% to 9.5%)
- CSI revenue of
$1,286 - $1,294 million (organic growth of 5.5% to 6.5%)
- Fiscal 2024 non-GAAP
diluted EPS of $3.64- $3.67
- Fiscal fourth
quarter 2024 total revenue of $1,015 - $1,036 million (organic
growth of 7% to 9.5%)
- CVI revenue of $673
- $685 million (organic growth of 8% to 10%)
- CSI revenue of $342
- $350 million (organic growth of 6% to 8%)
- Fiscal fourth
quarter 2024 non-GAAP diluted EPS of $0.98 to $1.01
Non-GAAP diluted earnings per share guidance excludes
amortization and impairment of intangible assets, and certain
income or gains and charges or expenses including acquisition and
integration costs which we may incur as part of our continuing
operations.
With respect to the Company’s guidance expectations, the Company
has not reconciled non-GAAP diluted earnings per share guidance to
GAAP diluted earnings per share due to the inherent difficulty in
forecasting acquisition-related, integration and restructuring
charges and expenses, which are reconciling items between the
non-GAAP and GAAP measure. Due to the unknown effect, timing and
potential significance of such charges and expenses that impact
GAAP diluted earnings per share, the Company is not able to provide
such guidance.
Reconciliation of Selected GAAP Results to Non-GAAP
Results
To supplement our financial results and guidance presented on a
GAAP basis, we provide non-GAAP measures such as non-GAAP gross
margin, non-GAAP operating margin, non-GAAP diluted earnings per
share, as well as constant currency and organic revenue growth
because we believe they are helpful for the investors to understand
our consolidated operating results. Management uses supplemental
non-GAAP financial measures internally to understand, manage and
evaluate our business, to make operating decisions, and to plan and
forecast for future periods. The non-GAAP measures exclude costs
which we generally would not have otherwise incurred in the periods
presented as a part of our continuing operations. We provide
further details of the non-GAAP adjustments made to arrive at our
non-GAAP measures in the GAAP to non-GAAP reconciliations below.
Our non-GAAP financial results and guidance are not meant to be
considered in isolation or as a substitute for comparable GAAP
measures and should be read only in conjunction with our
consolidated financial statements prepared in accordance with
GAAP.
To present constant currency revenue growth, current period
revenue for entities reporting in currencies other than the United
States dollar are converted into United States dollars at the
average foreign exchange rates for the corresponding period in the
prior year. To present organic revenue growth, we excluded the
effect of foreign currency fluctuations and the impact of any
acquisitions, divestitures and discontinuations that occurred in
the comparable period.
We define the non-GAAP measure of free cash flow as cash
provided by operating activities less capital expenditures. We
believe free cash flow is useful for investors as an additional
measure of liquidity because it represents cash that is available
to grow the business, make strategic acquisitions, repay debt, or
buyback common stock. Management uses free cash flow internally to
understand, manage, make operating decisions and evaluate our
business. In addition, we use free cash flow to help plan and
forecast future periods.
Investors should consider non-GAAP financial measures in
addition to, and not as replacements for, or superior to, measures
of financial performance prepared in accordance with GAAP.
|
THE COOPER COMPANIES, INC. AND SUBSIDIARIESGAAP to Non-GAAP
ReconciliationGross Margin, Operating Margin, and EPS |
|
|
|
|
Three Months Ended July 31, |
Nine Months Ended July 31, |
|
(In millions) |
|
2024 |
Margin % |
|
2023 |
Margin % |
|
2024 |
Margin % |
|
2023 |
Margin % |
|
GAAP Gross Profit |
$ |
663.0 |
66 |
% |
$ |
610.0 |
66 |
% |
$ |
1,918.0 |
67 |
% |
$ |
1,751.4 |
66 |
% |
|
Acquisition and integration-related charges (1) |
|
0.2 |
— |
% |
|
2.7 |
— |
% |
|
1.4 |
— |
% |
|
7.6 |
— |
% |
|
Exit of business (2) |
|
2.3 |
1 |
% |
|
0.3 |
— |
% |
|
2.8 |
— |
% |
|
5.2 |
— |
% |
|
Medical device regulations (3) |
|
1.0 |
— |
% |
|
1.2 |
— |
% |
|
2.7 |
— |
% |
|
2.9 |
— |
% |
|
Business optimization charges (4) |
|
1.2 |
— |
% |
|
1.0 |
— |
% |
|
4.5 |
— |
% |
|
1.1 |
— |
% |
|
Total |
|
4.7 |
1 |
% |
|
5.2 |
— |
% |
|
11.4 |
— |
% |
|
16.8 |
— |
% |
|
Non-GAAP Gross Profit |
$ |
667.7 |
67 |
% |
$ |
615.2 |
66 |
% |
$ |
1,929.4 |
67 |
% |
$ |
1,768.2 |
66 |
% |
|
|
Three Months Ended July 31, |
Nine Months Ended July 31, |
|
(In millions) |
|
2024 |
|
Margin % |
|
2023 |
Margin % |
|
2024 |
Margin % |
|
2023 |
|
Margin % |
|
GAAP Operating Income |
$ |
192.5 |
|
19 |
% |
$ |
151.6 |
16 |
% |
$ |
507.3 |
18 |
% |
$ |
397.4 |
|
15 |
% |
|
Amortization of acquired intangibles |
|
50.4 |
|
5 |
% |
|
46.7 |
5 |
% |
|
151.0 |
5 |
% |
|
139.7 |
|
5 |
% |
|
Acquisition and integration-related charges (1) |
|
1.1 |
|
— |
% |
|
13.2 |
2 |
% |
|
13.4 |
— |
% |
|
35.5 |
|
2 |
% |
|
Exit of business (2) |
|
2.5 |
|
— |
% |
|
0.7 |
— |
% |
|
4.0 |
— |
% |
|
6.3 |
|
— |
% |
|
Medical device regulations (3) |
|
5.6 |
|
1 |
% |
|
5.5 |
1 |
% |
|
15.8 |
1 |
% |
|
13.0 |
|
— |
% |
|
Business optimization charges (4) |
|
4.4 |
|
1 |
% |
|
2.7 |
— |
% |
|
15.4 |
1 |
% |
|
14.4 |
|
— |
% |
|
Acquisition termination fee (5) |
|
— |
|
— |
% |
|
— |
— |
% |
|
— |
— |
% |
|
45.0 |
|
2 |
% |
|
Release of contingent liability (6) |
|
— |
|
— |
% |
|
— |
— |
% |
|
— |
— |
% |
|
(31.8 |
) |
(1) |
% |
|
Other (7) |
|
(0.4 |
) |
— |
% |
|
2.2 |
— |
% |
|
1.1 |
— |
% |
|
4.8 |
|
— |
% |
|
Total |
|
63.6 |
|
7 |
% |
|
71.0 |
8 |
% |
|
200.7 |
7 |
% |
$ |
226.9 |
|
8 |
% |
|
Non-GAAP Operating Income |
$ |
256.1 |
|
26 |
% |
$ |
222.6 |
24 |
% |
$ |
708.0 |
25 |
% |
$ |
624.3 |
|
23 |
% |
|
THE COOPER COMPANIES, INC. AND SUBSIDIARIESGAAP to Non-GAAP
ReconciliationGross Margin, Operating Margin, and EPS |
| |
|
|
Three Months Ended July 31, |
Nine Months Ended July 31, |
|
(In millions, except per share amounts) |
|
2024 |
|
EPS |
|
2023 |
|
EPS |
|
2024 |
|
EPS |
|
2023 |
|
EPS |
|
GAAP Net Income |
$ |
104.7 |
|
$ |
0.52 |
|
$ |
85.3 |
|
$ |
0.43 |
|
$ |
274.8 |
|
$ |
1.37 |
|
$ |
209.7 |
|
$ |
1.05 |
|
|
Amortization of acquired intangibles |
|
50.4 |
|
|
0.25 |
|
|
46.7 |
|
|
0.23 |
|
|
151.0 |
|
|
0.75 |
|
|
139.7 |
|
|
0.70 |
|
|
Acquisition and integration-related charges (1) |
|
1.1 |
|
|
0.01 |
|
|
13.2 |
|
|
0.07 |
|
|
13.4 |
|
|
0.07 |
|
|
35.5 |
|
|
0.18 |
|
|
Exit of business (2) |
|
2.5 |
|
|
0.01 |
|
|
0.7 |
|
|
— |
|
|
4.0 |
|
|
0.02 |
|
|
6.3 |
|
|
0.03 |
|
|
Medical device regulations (3) |
|
5.6 |
|
|
0.03 |
|
|
5.5 |
|
|
0.03 |
|
|
15.8 |
|
|
0.08 |
|
|
13.0 |
|
|
0.07 |
|
|
Business optimization charges (4) |
|
4.4 |
|
|
0.02 |
|
|
2.7 |
|
|
0.01 |
|
|
15.4 |
|
|
0.08 |
|
|
14.4 |
|
|
0.07 |
|
|
Acquisition termination fee (5) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
45.0 |
|
|
0.23 |
|
|
Release of contingent liability (6) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(31.8 |
) |
|
(0.16 |
) |
|
Other (7) |
|
2.5 |
|
|
0.02 |
|
|
3.7 |
|
|
0.02 |
|
|
9.7 |
|
|
0.05 |
|
|
9.5 |
|
|
0.05 |
|
|
Tax effects related to the above items |
|
(13.8 |
) |
|
(0.07 |
) |
|
(17.9 |
) |
|
(0.09 |
) |
|
(47.7 |
) |
|
(0.24 |
) |
|
(54.0 |
) |
|
(0.27 |
) |
|
Intra-entity asset transfers (8) |
|
34.5 |
|
|
0.17 |
|
|
27.3 |
|
|
0.14 |
|
|
95.6 |
|
|
0.48 |
|
|
77.8 |
|
|
0.39 |
|
|
Total |
|
87.2 |
|
|
0.44 |
|
|
81.9 |
|
|
0.41 |
|
|
257.2 |
|
|
1.29 |
|
|
255.4 |
|
|
1.29 |
|
|
Non-GAAP Net Income |
$ |
191.9 |
|
$ |
0.96 |
|
$ |
167.2 |
|
$ |
0.84 |
|
$ |
532.0 |
|
$ |
2.66 |
|
$ |
465.1 |
|
$ |
2.34 |
|
|
Weighted average diluted shares used |
|
200.6 |
|
|
|
199.6 |
|
|
|
200.3 |
|
|
|
199.2 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS, amounts and percentages may not sum or recalculate due to
rounding.
(1) Charges include the direct effects of
acquisition accounting, such as amortization of inventory fair
value step-up, professional services fees, regulatory fees and
changes in fair value of contingent considerations, and items
related to integrating acquired businesses, such as redundant
personnel costs for transitional employees, other acquired employee
related costs, and integration-related professional services,
manufacturing integration costs, legal entity rationalization and
other integration-related activities. The acquisition and
integration-related charges in fiscal 2024 were primarily related
to the Cook Medical acquisition and integration expenses. The
acquisition and integration-related charges in fiscal 2023 were
primarily related to Generate acquisition and integration
expenses.
Charges included $0.6 million and $5.5 million related to
redundant personnel costs for transitional employees, and $0.1
million and $3.8 million of professional services fees in the three
and nine months ended July 31, 2024, respectively.
Charges included $5.4 million and $14.4 million related to
redundant personnel costs for transitional employees, $4.1 million
and $9.7 million of professional services fees, and $1.1 million
and $3.6 million of manufacturing integration costs, in the three
and nine months ended July 31, 2023, respectively.
(2) Charges include costs related to product line exits such as
inventory write-offs, site closure costs, contract termination
costs and specifically-identified long-lived asset write-offs.
Charges included $1.4 million and 2.3 million of write-offs of
long-lived assets in the three and nine months ended July 31,
2024, respectively.
Charges included $0.4 million and $4.4 million of site closures
costs due to the exit of the lens care business in the three and
nine months ended July 31, 2023, respectively.
(3) Charges represent incremental costs of complying with the
new European Union (E.U.) medical device regulations for previously
registered products and primarily include charges for contractors
supporting the project and other direct third-party expenses. We
consider these costs to be one-time costs, which are limited to a
specific time period.
(4) Charges represent the costs associated with
initiatives to increase efficiencies across the organization and
optimize our overall cost structure, including changes to our IT
infrastructure and operations, employee severance costs, legal
entity and other business reorganizations, write-offs or
impairments of certain long-lived assets associated with the
business optimization activities.
Charges included $1.9 million and $3.1 million related to
changes to our IT infrastructure and operations, and $1.0 million
and $9.1 million of employee severance costs, in the three and nine
months ended July 31, 2024, respectively.
Charges included $2.3 million and $9.9 million of employee
severance costs, and $1.0 million and $5.6 million related to
changes to our IT infrastructure and operations, partially offset
by other items, in the three and nine months ended July 31,
2023, respectively.
(5) Amount represents an accrual for probable payment of a
termination fee in connection with an asset purchase agreement in
the second quarter of 2023, which was paid in August 2023.
(6) Amount represents the release of contingent consideration
liability associated with SightGlass Vision's regulatory approval
milestone in the first quarter of 2023.
(7) Charges include certain one-time business disruptions from
natural causes, litigation matters and other items that are not
part of ordinary operations. The adjustments to arrive at non-GAAP
net income also include gains and losses on minority interest
investments and accretion of interest attributable to acquisition
installments payable.
Charges included $1.5 million and $4.4 million of gains and
losses on minority interest investments, and $1.4 million and $4.1
million of accretion of interest attributable to acquisition
installments payable, partially offset by other items, in the three
and nine months ended July 31, 2024, respectively.
Charges included $1.4 million and $4.8 million of gains and
losses on minority interest investments, and $0.7 million and $3.3
million related to legal matters, in the three and nine months
ended July 31, 2023, respectively.
(8) In fiscal 2021, the Company transferred its CooperVision
intellectual property and goodwill to its UK subsidiary. As a
result, we recorded a deferred tax asset equal to approximately
$2.0 billion as a one-time tax benefit in accordance with U.S. GAAP
in fiscal 2021 as subsequently adjusted for changes in UK tax law.
The non-GAAP adjustments reflect the ongoing net deferred tax
benefit from tax amortization each period under UK tax law.
Conference Call and Webcast
The Company will host a conference call today at 5:00 PM ET to
discuss the financial results and current corporate developments.
The dial-in number for the call is 800-715-9871 and the conference
ID is 7528310. A simultaneous audio webcast and subsequent replay
can be accessed on CooperCompanies' investor relations website at
http://investor.coopercos.com.
About CooperCompanies
CooperCompanies (Nasdaq: COO) is a leading global medical device
company focused on improving lives one person at a time. The
Company operates through two business units, CooperVision and
CooperSurgical. CooperVision is a trusted leader in the contact
lens industry, improving the vision of millions of people every
day. CooperSurgical is a leading fertility and women's health
company dedicated to assisting women, babies and families at the
healthcare moments that matter most. Headquartered in San Ramon,
CA, CooperCompanies ("Cooper") has a workforce of more than 15,000
with products sold in over 130 countries. For more information,
please visit www.coopercos.com.
Forward-Looking Statements
This earnings 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 of which are other than statements of historical fact,
including our fiscal year 2024 financial guidance, are forward
looking. In addition, all statements regarding anticipated growth
in our revenues, anticipated effects of any product recalls,
anticipated market conditions, planned product launches,
restructuring or business transition expectations, regulatory
plans, and expected results of operations and integration of any
acquisition are forward-looking. To identify these statements look
for words like "believes," "outlook," "probable," "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
including the impact of continuing uncertainty and instability of
certain countries, man-made or natural disasters and pandemic
conditions, that could adversely affect our global markets, and the
potential adverse economic impact and related uncertainty caused by
these items; the impact of international conflicts and the global
response to international conflicts on the global economy, European
economy, financial markets, energy markets, currency rates and our
ability to supply product to, or through, affected countries; our
substantial and expanding international operations and the
challenges of managing an organization spread throughout multiple
countries and complying with a variety of legal, compliance and
regulatory requirements; foreign currency exchange rate and
interest rate fluctuations including the risk of fluctuations in
the value of foreign currencies or interest rates that would
decrease our net sales and earnings; our existing and future
variable rate indebtedness and associated interest expense is
impacted by rate increases, which could adversely affect our
financial health or limit our ability to borrow additional funds;
changes in tax laws, examinations by tax authorities, and changes
in our geographic composition of income; acquisition-related
adverse effects including the failure to successfully achieve the
anticipated net sales, margins and earnings benefits of
acquisitions, integration delays or costs and the requirement to
record significant adjustments to the preliminary fair value of
assets acquired and liabilities assumed within the measurement
period, required regulatory approvals for an acquisition not being
obtained or being delayed or subject to conditions that are not
anticipated, adverse impacts of changes to accounting controls and
reporting procedures, contingent liabilities or indemnification
obligations, increased leverage and lack of access to available
financing (including financing for the acquisition or refinancing
of debt owed by us on a timely basis and on reasonable terms);
compliance costs and potential liability in connection with U.S.
and foreign laws and health care regulations pertaining to privacy
and security of personal information such as HIPAA and the
California Consumer Privacy Act (CCPA) in the U.S. and the General
Data Protection Regulation (GDPR) requirements in Europe, including
but not limited to those resulting from data security breaches; a
major disruption in the operations of our manufacturing, accounting
and financial reporting, research and development, distribution
facilities or raw material supply chain due to challenges
associated with integration of acquisitions, man-made or natural
disasters, pandemic conditions, cybersecurity incidents or other
causes; a major disruption in the operations of our manufacturing,
accounting and financial reporting, research and development or
distribution facilities due to the failure to perform by
third-party vendors, including cloud computing providers or other
technological problems, including any related to our information
systems maintenance, enhancements or new system deployments,
integrations or upgrades; market consolidation of large customers
globally through mergers or acquisitions resulting in a larger
proportion or concentration of our business being derived from
fewer customers; disruptions in supplies of raw materials,
particularly components used to manufacture our silicone hydrogel
lenses; new U.S. and foreign government laws and regulations, and
changes in existing laws, regulations and enforcement guidance,
which affect areas of our operations including, but not limited to,
those affecting the health care industry, including the contact
lens industry specifically and the medical device or pharmaceutical
industries generally, including but not limited to the EU Medical
Devices Regulation (MDR), and the EU In Vitro Diagnostic Medical
Devices Regulation (IVDR); legal costs, insurance expenses,
settlement costs and the risk of an adverse decision, prohibitive
injunction or settlement related to product liability, patent
infringement, contractual disputes, or other litigation;
limitations on sales following product introductions due to poor
market acceptance; new competitors, product innovations or
technologies, including but not limited to, technological advances
by competitors, new products and patents attained by competitors,
and competitors' expansion through acquisitions; reduced sales,
loss of customers, reputational harm and costs and expenses,
including from claims and litigation related to product recalls and
warning letters; failure to receive, or delays in receiving,
regulatory approvals or certifications for products; failure of our
customers and end users to obtain adequate coverage and
reimbursement from third-party payers for our products and
services; the requirement to provide for a significant liability or
to write off, or accelerate depreciation on, a significant asset,
including goodwill, other intangible assets and idle manufacturing
facilities and equipment; the success of our research and
development activities and other start-up projects; dilution to
earnings per share from acquisitions or issuing stock; impact and
costs incurred from changes in accounting standards and policies;
risks related to environmental laws and requirements applicable to
our facilities, products or manufacturing processes, including
evolving regulations regarding the use of hazardous substances or
chemicals in our products; risks related to environmental, social
and corporate governance (ESG) issues, including those related to
regulatory and disclosure requirements, climate change and
sustainability; and other events described in our Securities and
Exchange Commission filings, including the “Business”, “Risk
Factors” and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" sections in the Company’s
Annual Report on Form 10-K for the fiscal year ended
October 31, 2023, as such Risk Factors may be updated in
annual and 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.
Contact:
Kim DuncanVice President, Investor Relations and Risk
Management925-460-3663ir@cooperco.com
|
THE COOPER COMPANIES, INC. AND SUBSIDIARIESConsolidated Condensed
Balance Sheets(In millions)(Unaudited) |
| |
| |
July 31, 2024 |
|
October 31, 2023 |
|
ASSETS |
| Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
109.7 |
|
$ |
120.8 |
|
Trade receivables, net |
|
739.0 |
|
|
609.7 |
|
Inventories |
|
779.3 |
|
|
735.6 |
|
Prepaid expense and other current assets |
|
298.7 |
|
|
238.8 |
|
Total current assets |
|
1,926.7 |
|
|
1,704.9 |
| Property, plant and equipment,
net |
|
1,747.6 |
|
|
1,632.6 |
| Goodwill |
|
3,777.2 |
|
|
3,624.5 |
| Other intangibles, net |
|
1,786.8 |
|
|
1,710.3 |
| Deferred tax assets |
|
2,248.3 |
|
|
2,349.5 |
| Other assets |
|
621.4 |
|
|
637.1 |
|
Total assets |
$ |
12,108.0 |
|
$ |
11,658.9 |
| |
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
| Current liabilities: |
|
|
|
|
Short-term debt |
$ |
40.8 |
|
$ |
45.4 |
|
Accounts Payable |
|
222.0 |
|
|
261.9 |
|
Employee compensation and benefits |
|
156.5 |
|
|
174.8 |
|
Deferred revenue |
|
126.4 |
|
|
123.6 |
|
Other current liabilities |
|
423.8 |
|
|
363.3 |
|
Total current liabilities |
|
969.5 |
|
|
969.0 |
| Long-term debt |
|
2,591.6 |
|
|
2,523.8 |
| Deferred tax liabilities |
|
94.9 |
|
|
101.5 |
| Long-term tax payable |
|
59.0 |
|
|
90.2 |
| Deferred revenue |
|
190.8 |
|
|
184.2 |
| Other liabilities |
|
277.0 |
|
|
239.2 |
|
Total liabilities |
|
4,182.8 |
|
|
4,107.9 |
| Stockholders’ equity |
|
7,925.2 |
|
|
7,551.0 |
|
Total liabilities and stockholders' equity |
$ |
12,108.0 |
|
$ |
11,658.9 |
|
THE COOPER COMPANIES, INC. AND SUBSIDIARIESConsolidated Statements
of Income(In millions, except per share amounts)(Unaudited) |
| |
|
|
|
| |
Three Months Ended July 31, |
|
Nine Months Ended July 31, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
| Net sales |
$ |
1,002.8 |
|
$ |
930.2 |
|
$ |
2,877.0 |
|
$ |
2,666.1 |
| Cost of sales |
|
339.8 |
|
|
320.2 |
|
|
959.0 |
|
|
914.7 |
| Gross profit |
|
663.0 |
|
|
610.0 |
|
|
1,918.0 |
|
|
1,751.4 |
| Selling, general and
administrative expense |
|
381.1 |
|
|
375.2 |
|
|
1,142.3 |
|
|
1,113.6 |
| Research and development
expense |
|
39.0 |
|
|
36.5 |
|
|
117.4 |
|
|
100.7 |
| Amortization of
intangibles |
|
50.4 |
|
|
46.7 |
|
|
151.0 |
|
|
139.7 |
| Operating income |
|
192.5 |
|
|
151.6 |
|
|
507.3 |
|
|
397.4 |
| Interest expense |
|
28.5 |
|
|
26.8 |
|
|
87.3 |
|
|
79.0 |
| Other expense, net |
|
0.3 |
|
|
6.0 |
|
|
6.3 |
|
|
11.9 |
| Income before income
taxes |
|
163.7 |
|
|
118.8 |
|
|
413.7 |
|
|
306.5 |
| Provision for income
taxes |
|
59.0 |
|
|
33.5 |
|
|
138.9 |
|
|
96.8 |
| Net income |
$ |
104.7 |
|
$ |
85.3 |
|
$ |
274.8 |
|
$ |
209.7 |
| |
|
|
|
|
|
|
|
| Earnings per share -
diluted* |
$ |
0.52 |
|
$ |
0.43 |
|
$ |
1.37 |
|
$ |
1.05 |
| |
|
|
|
|
|
|
|
| Number of shares used to
compute diluted earnings per share* |
|
200.6 |
|
|
199.6 |
|
|
200.3 |
|
|
199.2 |
| |
|
* All periods presented have been adjusted to reflect the
four-for-one stock split effected on February 16, 2024. |
|
THE COOPER COMPANIES, INC. AND SUBSIDIARIESGAAP to Non-GAAP
ReconciliationConstant Currency Revenue Growth and Organic Revenue
Growth |
| |
| Net
Sales |
| |
|
|
% change y/y |
| |
(In millions) |
|
|
|
|
Currency |
|
|
Constant |
|
|
Acquisitions and |
|
|
|
|
| |
3Q24 |
|
Reported |
|
|
Impact |
|
|
Currency |
|
|
Divestitures |
|
|
Organic |
|
|
CooperVision |
$ |
675.6 |
|
7 |
% |
|
2 |
% |
|
9 |
% |
|
1 |
% |
|
|
10 |
% |
| CooperSurgical |
|
327.2 |
|
9 |
% |
|
1 |
% |
|
10 |
% |
|
(5) |
% |
|
|
5 |
% |
| Total |
$ |
1,002.8 |
|
8 |
% |
|
2 |
% |
|
10 |
% |
|
(2) |
% |
|
|
8 |
% |
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