FRANKLIN LAKES, N.J.,
Jan. 17, 2019 /PRNewswire/ -- BD (Becton, Dickinson and
Company) (NYSE: BDX), a leading global medical technology company,
today reported preliminary financial results for the first fiscal
quarter ended December 31, 2018. Subject to the
completion of its financial closing processes, the company expects
quarterly revenues of $4.160 billion
for the first fiscal quarter ended December 31, 2018.
This represents an increase of 35.1 percent from the prior-year
period, primarily due to the acquisition of C. R. Bard. On a
comparable, currency-neutral basis that includes the revenues of C.
R. Bard in both the current and prior year, revenues increased 5.2
percent over the prior-year period.
First Quarter Fiscal 2019 Preliminary Operating
Results
First quarter preliminary adjusted diluted earnings
per share are greater than the company's prior expectations
primarily due to the timing of certain tax items, as well as
better-than-expected performance across all three segments.
As reported, preliminary diluted earnings per share for the
first quarter are estimated to be approximately $2.05, compared with $(0.76) in the prior-year period. This
represents an increase of 369.7 percent. Preliminary adjusted
diluted earnings per share are estimated to be approximately
$2.70, compared with $2.48 in the prior-year period. This
represents an increase in adjusted diluted earnings per share of
8.9 percent, or 14.9 percent on a currency-neutral basis.
Fiscal 2019 Outlook for Full Year
The company
reaffirms previously issued fiscal year 2019 revenue and adjusted
diluted earnings per share guidance.
Full fiscal year 2019 revenues are expected to increase 8.5 to
9.5 percent, primarily due to the C. R. Bard acquisition.
Revenues are expected to increase 5.0 to 6.0 percent on a
comparable, currency-neutral basis that includes the revenues of C.
R. Bard in fiscal 2019 as well as the full 2018 fiscal year.
The company continues to expect full fiscal year 2019 adjusted
diluted earnings per share to be between $12.05 and $12.15,
which represents growth of approximately 10.0 percent over the
prior-year.
Estimated adjusted diluted earnings per share for fiscal 2019
excludes potential charges or gains that may be recorded during the
fiscal year, such as, among other things, the non-cash amortization
of intangible assets, acquisition-related charges, and certain tax
and litigation matters. BD does not attempt to provide
reconciliations of forward-looking non-GAAP earnings guidance to
the comparable GAAP measure because the impact and timing of these
potential charges or gains is inherently uncertain and difficult to
predict and is unavailable without unreasonable efforts. In
addition, the company believes such reconciliations would imply a
degree of precision and certainty that could be confusing to
investors. Such items could have a substantial impact on GAAP
measures of BD's financial performance.
Conference Call Information
As previously announced, a
conference call regarding BD's first quarter results will be
broadcast live on BD's website, www.bd.com/investors, along with
related slides, at 8:00 a.m. (ET)
Tuesday, February 5, 2019. The conference call
will be available for replay on BD's website, www.bd.com/investors,
or at 1-800-585-8367 (domestic) and 1-404-537-3406 (international)
through the close of business on Tuesday,
February 12, 2019, confirmation number 7064558.
Non-GAAP Financial Measures/Financial Tables
This news
release contains certain non-GAAP financial measures.
Reconciliations of these and other non-GAAP measures to the
comparable GAAP measures are included in the attached financial
tables. Within the attached financial tables presented,
certain columns and rows may not add due to the use of rounded
numbers. Percentages and earnings per share amounts presented
are calculated from the underlying amounts.
All "comparable" basis revenue growth rates relating to fiscal
year 2019 presented throughout this release include the results of
C. R. Bard, Inc. ("Bard") in the current and prior-year periods and
are further adjusted for certain items as detailed in the attached
tables. Current and prior-year adjusted diluted earnings per share
results exclude, among other things, the impact of purchase
accounting adjustments (including the non-cash amortization of
acquisition-related intangible assets); integration, restructuring
and transaction costs; and the loss on debt extinguishment.
We also provide these measures on a currency-neutral basis after
eliminating the effect of foreign currency translation, where
applicable. We calculate foreign currency-neutral percentages
by converting our current-period local currency financial results
using the prior period foreign currency exchange rates and
comparing these adjusted amounts to our current-period results.
Reconciliations of these amounts to the most directly
comparable GAAP measures are included in the tables at the end of
this release.
About BD
BD is one of the largest global medical
technology companies in the world and is advancing the world of
health by improving medical discovery, diagnostics and the delivery
of care. The company supports the heroes on the frontlines of
healthcare by developing innovative technology, services and
solutions that help advance both clinical therapy for patients and
clinical process for healthcare providers. BD and its 65,000
employees have a passion and commitment to help enhance the safety
and efficiency of clinicians' care delivery process, enable
laboratory scientists to accurately detect disease and advance
researchers' capabilities to develop the next generation of
diagnostics and therapeutics. BD has a presence in virtually every
country and partners with organizations around the world to address
some of the most challenging global health issues. By working in
close collaboration with customers, BD can help enhance outcomes,
lower costs, increase efficiencies, improve safety and expand
access to healthcare. In 2017, BD welcomed C. R. Bard and its
products into the BD family. For more information on BD, please
visit bd.com
This press release, including the section entitled "Fiscal
2019 Outlook for Full Year", contains certain estimates and other
forward-looking statements (as defined under Federal securities
laws) regarding BD's performance, including future revenues and
earnings per share. All such statements are based upon
current expectations of BD and involve a number of business risks
and uncertainties. Actual results could vary materially from
anticipated results described, implied or projected in any
forward-looking statement. With respect to forward-looking
statements contained herein, a number of factors could cause actual
results to vary materially. These factors include, but are
not limited to: risks relating to the integration of the C.R. Bard
operations, products and employees into BD and the possibility that
the anticipated synergies and other benefits of the proposed
acquisition will not be realized or will not be realized within the
expected timeframe; the impact of the recent U.S. tax reform;
legislative or regulatory changes to the U.S. healthcare system,
potential cuts in governmental healthcare spending or measures to
contain healthcare costs, each of which could result in reduced
demand for our products or downward pricing pressure; changes in
interest or foreign currency exchange rates; adverse changes in
regional, national or foreign economic conditions, particularly in
emerging markets, including any impact on our ability to access
credit markets and finance our operations, the demand for our
products and services, utilization rates or otherwise, or our
suppliers' ability to provide products needed for our operations;
new or changing laws and regulations impacting our business
(including the imposition of tariffs or changes in laws impacting
international trade) or changes in enforcement practices with
respect to such laws; our ability to successfully integrate any
businesses we acquire; the adverse impact of cyber-attacks on our
information systems or products; competitive factors including
technological advances and new products introduced by competitors;
interruptions in our supply chain or manufacturing processes;
pricing and market pressures; difficulties inherent in product
development, delays in product introductions and uncertainty of
market acceptance of new products; adverse changes in geopolitical
conditions; increases in energy costs and their effect on, among
other things, the cost of producing BD's products; product efficacy
or safety concerns resulting in product recalls or actions being
taken by the FDA or other regulators; fluctuations in costs and
availability of raw materials and in BD's ability to maintain
favorable supplier arrangements and relationships; uncertainties of
litigation (as described in BD's filings with the Securities and
Exchange Commission); future healthcare reform outside the U.S.,
including changes in government pricing and reimbursement policies
or other cost containment reforms; and issuance of new or revised
accounting standards, as well as other factors discussed in BD's
filings with the Securities and Exchange Commission. We do
not intend to update any forward-looking statements to reflect
events or circumstances after the date hereof except as required by
applicable laws or regulations.
BECTON DICKINSON AND
COMPANY
|
PRELIMINARY
SUPPLEMENTAL INFORMATION
|
Three Months Ended
December 31,
|
(Unaudited; Amounts
in millions, except share and per share data)
|
|
RECONCILIATION OF
PRELIMINARY REPORTED REVENUE CHANGE TO PRELIMINARY COMPARABLE
REVENUE CHANGE
|
|
|
|
A
|
|
B
|
|
C=A+B
|
|
|
D
|
|
E
|
|
F
|
|
G
|
|
H=D+E+F+G
|
|
|
I
|
|
J=(C-H-I)/H
|
|
|
Preliminary
BD
Reported
|
|
Divestiture
Adjustments
(a)
|
|
Preliminary
Comparable
|
|
|
BD
Reported
|
|
Bard Q1
(b)
|
|
Intercompany
Adjustment
(c)
|
|
Divestiture
Adjustments
(a)
|
|
Comparable
|
|
|
Preliminary
FX Impact
(d)
|
|
Preliminary
FXN %
Change
|
|
|
2018
|
|
|
2018
|
|
|
2017
|
|
2017
|
|
|
|
2017
|
|
|
|
PRELIMINARY TOTAL
BD REVENUES
|
|
$
|
4,160
|
|
|
$
|
(9)
|
|
|
$
|
4,152
|
|
|
|
$
|
3,080
|
|
|
$
|
968
|
|
|
$
|
(3)
|
|
|
$
|
(33)
|
|
|
$
|
4,012
|
|
|
|
$
|
(69)
|
|
|
5.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
The amounts for the
quarters ended December 31, 2018 and 2017 include adjustments for
BD's divestiture of its Advanced Bioprocessing business. The
amount for the quarter ended December 31, 2017 also include
adjustments for BD's divestitures of its soft tissue core needle
biopsy product line and Bard's divestiture of its Aspira® product
line.
|
(b)
|
Amounts represent
revenues for the quarter ended December 31, 2017.
|
(c)
|
Represents the
elimination of revenues from the Medication Delivery Solutions unit
which BD previously recognized from Bard as third-party revenues
and that would be treated as intercompany revenues in the
current-year period.
|
(d)
|
Under U.S. generally
accepted accounting principles and as a result of Argentina's
highly inflationary economy, the functional currency of the
Company's operations in Argentina was the U.S. dollar for the
quarter ended December 31, 2018. The total foreign currency
translation impact above includes $7 million that was calculated by
comparing local currency revenues in Argentina for the quarter
ended December 31, 2018, translated using the prior-period exchange
rate, to the reported U.S. dollar revenues for this same
period.
|
|
|
RECONCILIATION OF
PRELIMINARY REPORTED DILUTED EPS TO PRELIMINARY ADJUSTED DILUTED
EPS
|
|
|
Three Months Ended
December 31,
|
|
|
Preliminary
2018
|
|
2017
|
|
Preliminary
Growth
|
|
Preliminary
Foreign
Currency
Translation
|
|
Preliminary
Foreign
Currency
Neutral
Growth
|
|
Preliminary
Growth %
|
|
Preliminary
Foreign
Currency
Neutral
Growth %
|
Reported Diluted
Earnings (Loss) per Share
|
|
$
|
2.05
|
|
|
$
|
(0.76)
|
|
|
$
|
2.81
|
|
|
$
|
(0.14)
|
|
|
$
|
2.95
|
|
|
369.7
|
%
|
|
388.2
|
%
|
Purchase accounting
adjustments (1)
|
|
1.38
|
|
|
0.59
|
|
|
|
|
—
|
|
|
|
|
|
|
|
Restructuring and
integration costs (2)
|
|
0.42
|
|
|
1.35
|
|
|
|
|
—
|
|
|
|
|
|
|
|
Net impact of gain on
sale of business (3)
|
|
(1.22)
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
|
|
Other
|
|
0.02
|
|
|
0.72
|
|
|
|
|
—
|
|
|
|
|
|
|
|
Income taxes relating
to specified items and impact of tax reform
|
|
0.06
|
|
|
0.59
|
|
|
|
|
—
|
|
|
|
|
|
|
|
Adjusted Diluted
Earnings per Share
|
|
$
|
2.70
|
|
|
$
|
2.48
|
|
|
$
|
0.22
|
|
|
$
|
(0.15)
|
|
|
$
|
0.37
|
|
|
8.9
|
%
|
|
14.9
|
%
|
|
(1)
|
Represents expense
related to the purchase accounting for acquisitions primarily
impacting identified intangible assets.
|
(2)
|
Represents
restructuring and integration costs associated with
acquisitions.
|
(3)
|
Represents the
estimated pre-tax gain recognized during the period related to BD's
sale of its Advanced Bioprocessing business.
|
|
|
|
FY 2019 OUTLOOK
RECONCILIATION
|
|
|
|
Revenue
Growth
|
|
FY2018
|
|
FY2019
Outlook
|
|
|
Revenues
|
|
% Change
|
|
|
|
|
|
BDX
Revenue
|
|
$
|
15,983
|
|
|
8.5% to
9.5%
|
|
|
|
|
|
BD Including
Bard
|
Comparable Revenue
Growth
|
|
FY2018
|
|
FY2019
Outlook
|
|
|
Revenues
|
|
% Change FXN
Comparable
|
|
|
|
|
|
BDX As Reported
Revenue
|
|
$
|
15,983
|
|
|
|
Bard Q1
|
|
968
|
|
|
|
Intercompany
Adjustment
|
|
(3)
|
|
|
|
Divestiture
Adjustment (1)
|
|
(124)
|
|
|
|
BDX NewCo Comparable
Revenue
|
|
$
|
16,824
|
|
|
5.0% to
6.0%
|
|
|
|
|
|
|
|
(1)
|
Excludes the impact
from the divestitures of BD's Advanced Bioprocessing Business, BD's
soft tissue core needle biopsy product line and Bard's Aspira
product line of tunneled home drainage catheters and
accessories.
|
|
|
|
|
|
|
|
|
|
FY2019 Outlook
|
EPS
Growth
|
|
Full Year
FY2018
|
|
Full Year
FY2019 Outlook
|
|
%
Increase
|
Reported Fully
Diluted Earnings per Share
|
|
$
|
0.60
|
|
|
|
|
|
Purchase accounting
adjustments (1)
|
|
6.55
|
|
|
|
|
|
Restructuring and
integration costs (2)
|
|
2.60
|
|
|
|
|
|
Net impact of gain on
sale of investment and asset impairments (3)
|
|
(0.57)
|
|
|
|
|
|
Other
|
|
0.83
|
|
|
|
|
|
Impact of tax reform
and income tax benefit of special items (4)
|
|
1.00
|
|
|
|
|
|
Adjusted Fully
Diluted Earnings per Share
|
|
$
|
11.01
|
|
|
$12.05 to
12.15
|
|
~10%
|
|
FXN - Foreign
Currency Neutral
|
(1)
|
Represents expense
related to the purchase accounting for acquisitions primarily
impacting identified intangible assets.
|
(2)
|
Represents
restructuring and integration costs associated with
acquisitions.
|
(3)
|
Represents the net
amount recognized in the period related to BD's sale of an
investment, partially offset by $81 million of charges recorded to
write down the carrying value of certain assets.
|
(4)
|
Includes additional
tax expense, net, of $640 million relating to new U.S. tax
legislation.
|
Contact:
Monique N. Dolecki, Investor
Relations - 201-847-5378
Kristen Cardillo, Corporate
Communications - 201-847-5657
View original
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SOURCE BD (Becton, Dickinson and Company)