CooperCompanies (Nasdaq: COO), a leading global medical device
company, today announced financial results for its fiscal fourth
quarter and full year ended October 31, 2024.
- Fourth quarter 2024 revenue of
$1,018.4 million, up 10%, or up 7% organically. Fiscal year 2024
revenue of $3.9 billion, up 8%, or up 8% organically.
- Fourth quarter 2024 GAAP diluted
earnings per share (EPS) of $0.58, up 38%. Fiscal 2024 GAAP diluted
EPS of $1.96, up 33%.
- Fourth quarter 2024 non-GAAP diluted EPS of $1.04, up 19%.
Fiscal 2024 non-GAAP diluted EPS of $3.69, up 15%. See
"Reconciliation of Selected GAAP Results to Non-GAAP Results"
below.
Commenting on the results, Al White, Cooper's President and CEO
said, "Fiscal 2024 was a great year for Cooper having achieved
record consolidated revenues, including record CooperVision
revenues, record CooperSurgical revenues and record non-GAAP EPS.
We look forward to continued success in fiscal 2025 and thank all
of our employees for driving these results."
Fourth Quarter Operating Results
- Revenue of $1,018.4 million, up 10%
from last year’s fourth quarter, up 9% in constant currency, up 7%
organically.
- Gross margin of 67% compared with
65% in last year’s fourth quarter driven by price and efficiency
gains. On a non-GAAP basis, gross margin was similar to last year
at 67%.
- Operating margin of 19% compared
with 15% in last year’s fourth quarter driven by SG&A expense
leverage and stronger gross margins. On a non-GAAP basis, operating
margin was 26%, up from 24% last year.
- Interest expense of $27.0 million
compared with $26.3 million in last year's fourth quarter. On a
non-GAAP basis, interest expense was $25.6 million, down from $26.4
million.
- Cash provided by operations of $268.1 million offset by capital
expenditures of $139.9 million resulted in free cash flow of $128.2
million.
Fourth Quarter CooperVision (CVI) Revenue
- Revenue of $676.4 million, up 9%
from last year’s fourth quarter, up 8% in constant currency, up 8%
organically.
- Revenue by category:
|
|
|
|
% change y/y |
|
|
(In millions) |
|
Reported |
|
CurrencyImpact |
|
ConstantCurrency |
|
AcquisitionsandDivestitures |
|
Organic |
|
|
4Q24 |
|
|
|
|
|
|
Toric and multifocal |
$ |
323.2 |
|
|
9 |
% |
|
— |
% |
|
9 |
% |
|
— |
% |
|
9 |
% |
|
Sphere, other |
|
353.2 |
|
|
8 |
% |
|
(1 |
)% |
|
7 |
% |
|
— |
% |
|
7 |
% |
|
Total |
$ |
676.4 |
|
|
9 |
% |
|
(1 |
)% |
|
8 |
% |
|
— |
% |
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% change y/y |
|
|
(In millions) |
|
Reported |
|
CurrencyImpact |
|
ConstantCurrency |
|
AcquisitionsandDivestitures |
|
Organic |
|
|
4Q24 |
|
|
|
|
|
|
Americas |
$ |
270.5 |
|
|
5 |
% |
|
1 |
% |
|
6 |
% |
|
— |
% |
|
6 |
% |
|
EMEA |
|
256.6 |
|
|
14 |
% |
|
(3 |
)% |
|
11 |
% |
|
— |
% |
|
11 |
% |
|
Asia Pacific |
|
149.3 |
|
|
7 |
% |
|
— |
% |
|
7 |
% |
|
— |
% |
|
7 |
% |
|
Total |
$ |
676.4 |
|
|
9 |
% |
|
(1 |
)% |
|
8 |
% |
|
— |
% |
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter CooperSurgical (CSI) Revenue
- Revenue of $342.0 million, up 12%
from last year's fourth quarter, up 12% in constant currency, up 5%
organically.
- Revenue by category:
|
|
|
|
% change y/y |
|
|
(In millions) |
|
Reported |
|
CurrencyImpact |
|
ConstantCurrency |
|
AcquisitionsandDivestitures |
|
Organic |
|
|
4Q24 |
|
|
|
|
|
|
Office and surgical |
$ |
202.8 |
|
|
11 |
% |
|
— |
% |
|
11 |
% |
|
(11 |
)% |
|
— |
% |
|
Fertility |
|
139.2 |
|
|
15 |
% |
|
— |
% |
|
15 |
% |
|
(2 |
)% |
|
13 |
% |
|
Total |
$ |
342.0 |
|
|
12 |
% |
|
— |
% |
|
12 |
% |
|
(7 |
)% |
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year 2024
Operating Results
- Revenue of $3,895.4 million, up 8%
from fiscal 2023, up 9% in constant currency, up 8%
organically.
- CVI revenue of $2,609.4 million, up
8% from fiscal 2023, up 8% in constant currency, up 9% organically,
and CSI revenue $1,286.0 million, up 10% from fiscal 2023, up 11%
in constant currency, up 5% organically.
- Gross margin of 67% compared with
66% in fiscal 2023. Non-GAAP gross margin was 67% compared with 66%
in fiscal 2023.
- Operating margin of 18% compared
with 15% in fiscal 2023. Non-GAAP operating margin was 25% compared
with 24% in fiscal 2023.
- Cash provided by operations of
$709.3 million offset by capital expenditures of $421.2 million
resulted in free cash flow of $288.1 million.
Fiscal Year 2025 Financial Guidance
The Company initiated its fiscal year 2025 financial guidance.
Details are summarized as follows:
- Fiscal 2025 total revenue of $4,080
- $4,158 million (organic growth of 6% to 8%)
- CVI revenue of $2,733 - $2,786
million (organic growth of 6.5% to 8.5%)
- CSI revenue of $1,347 - $1,372
million (organic growth of 4% to 6%)
- Fiscal 2025 non-GAAP diluted
earnings per share of $3.92 - $4.02
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 measures. 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
ResultsTo 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
Reconciliation Gross Margin, Operating Margin, and EPS |
|
|
Three Months Ended October 31, |
Twelve Months Ended October 31, |
(In millions) |
|
2024 |
Margin % |
|
2023 |
Margin % |
|
2024 |
Margin % |
|
2023 |
Margin % |
GAAP Gross Profit |
$ |
677.7 |
67 |
% |
$ |
606.5 |
65 |
% |
$ |
2,595.7 |
67 |
% |
$ |
2,357.9 |
66 |
% |
Acquisition and integration-related charges (1) |
|
2.9 |
— |
% |
|
7.0 |
1 |
% |
|
4.3 |
— |
% |
|
15.0 |
— |
% |
Exit of business (2) |
|
— |
— |
% |
|
2.5 |
1 |
% |
|
2.8 |
— |
% |
|
7.6 |
— |
% |
Medical device regulations (3) |
|
0.4 |
— |
% |
|
0.8 |
— |
% |
|
3.2 |
— |
% |
|
3.7 |
— |
% |
Business optimization charges (4) |
|
0.6 |
— |
% |
|
1.6 |
— |
% |
|
5.0 |
— |
% |
|
2.4 |
— |
% |
Total |
|
3.9 |
— |
% |
|
11.9 |
2 |
% |
|
15.3 |
— |
% |
|
28.7 |
— |
% |
Non-GAAP Gross Profit |
$ |
681.6 |
67 |
% |
$ |
618.4 |
67 |
% |
$ |
2,611.0 |
67 |
% |
$ |
2,386.6 |
66 |
% |
|
|
|
|
|
|
|
|
|
|
Three Months Ended October 31, |
Twelve Months Ended October 31, |
(In millions) |
2024 |
Margin % |
2023 |
Margin % |
2024 |
Margin % |
2023 |
|
Margin % |
GAAP Operating Income |
$ |
198.4 |
19 |
% |
$ |
135.7 |
15 |
% |
$ |
705.7 |
18 |
% |
$ |
533.1 |
|
15 |
% |
Amortization of acquired intangibles |
50.2 |
5 |
% |
46.5 |
5 |
% |
201.2 |
5 |
% |
186.2 |
|
5 |
% |
Acquisition and integration-related charges (1) |
7.2 |
1 |
% |
21.5 |
2 |
% |
20.6 |
1 |
% |
57.3 |
|
2 |
% |
Exit of business (2) |
— |
— |
% |
13.6 |
1 |
% |
4.0 |
— |
% |
18.8 |
|
1 |
% |
Medical device regulations (3) |
4.0 |
1 |
% |
5.0 |
1 |
% |
19.8 |
1 |
% |
17.9 |
|
— |
% |
Business optimization charges (4) |
2.9 |
— |
% |
2.9 |
— |
% |
18.3 |
— |
% |
18.7 |
|
1 |
% |
Acquisition termination fee (5) |
— |
— |
% |
— |
— |
% |
— |
— |
% |
45.0 |
|
1 |
% |
Release of contingent liability (6) |
— |
— |
% |
— |
— |
% |
— |
— |
% |
(31.8 |
) |
(1 |
)% |
Other (7) |
0.6 |
— |
% |
1.3 |
— |
% |
1.7 |
— |
% |
5.6 |
|
— |
% |
Total |
64.9 |
7 |
% |
90.8 |
9 |
% |
265.6 |
7 |
% |
317.7 |
|
9 |
% |
Non-GAAP Operating Income |
$ |
263.3 |
26 |
% |
$ |
226.5 |
24 |
% |
$ |
971.3 |
25 |
% |
$ |
850.8 |
|
24 |
% |
|
THE COOPER COMPANIES, INC. AND SUBSIDIARIESGAAP to Non-GAAP
Reconciliation Gross Margin, Operating Margin, and EPS |
|
|
Three Months Ended October 31, |
Twelve Months Ended October 31, |
(In millions, except per share amounts) |
|
2024 |
|
EPS |
|
2023 |
|
EPS |
|
2024 |
|
EPS |
|
2023 |
|
EPS |
GAAP Net Income |
$ |
117.5 |
|
$ |
0.58 |
|
$ |
84.5 |
|
$ |
0.42 |
|
$ |
392.3 |
|
$ |
1.96 |
|
$ |
294.2 |
|
$ |
1.48 |
|
Amortization of acquired intangibles |
|
50.2 |
|
|
0.26 |
|
|
46.5 |
|
|
0.24 |
|
|
201.2 |
|
|
1.00 |
|
|
186.2 |
|
|
0.93 |
|
Acquisition and integration-related charges (1) |
|
7.2 |
|
|
0.04 |
|
|
21.5 |
|
|
0.11 |
|
|
20.6 |
|
|
0.10 |
|
|
57.3 |
|
|
0.29 |
|
Exit of business (2) |
|
— |
|
|
— |
|
|
13.6 |
|
|
0.07 |
|
|
4.0 |
|
|
0.02 |
|
|
18.8 |
|
|
0.09 |
|
Medical device regulations (3) |
|
4.0 |
|
|
0.02 |
|
|
5.0 |
|
|
0.03 |
|
|
19.8 |
|
|
0.10 |
|
|
17.9 |
|
|
0.09 |
|
Business optimization charges (4) |
|
2.9 |
|
|
0.01 |
|
|
2.9 |
|
|
0.01 |
|
|
18.3 |
|
|
0.09 |
|
|
18.7 |
|
|
0.09 |
|
Acquisition termination fee (5) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
45.0 |
|
|
0.23 |
|
Release of contingent liability (6) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(31.8 |
) |
|
(0.16 |
) |
Other (7) |
|
3.5 |
|
|
0.02 |
|
|
2.9 |
|
|
0.01 |
|
|
12.9 |
|
|
0.06 |
|
|
12.0 |
|
|
0.06 |
|
Tax effects related to the above items |
|
(13.5 |
) |
|
(0.07 |
) |
|
(32.4 |
) |
|
(0.16 |
) |
|
(61.1 |
) |
|
(0.30 |
) |
|
(86.5 |
) |
|
(0.43 |
) |
Intra-entity asset transfers (8) |
|
36.7 |
|
|
0.18 |
|
|
28.7 |
|
|
0.14 |
|
|
132.5 |
|
|
0.66 |
|
|
106.5 |
|
|
0.53 |
|
Total |
|
91.0 |
|
|
0.46 |
|
|
88.7 |
|
|
0.45 |
|
|
348.2 |
|
|
1.73 |
|
|
344.1 |
|
|
1.72 |
|
Non-GAAP Net Income |
$ |
208.5 |
|
$ |
1.04 |
|
$ |
173.2 |
|
$ |
0.87 |
|
$ |
740.5 |
|
$ |
3.69 |
|
$ |
638.3 |
|
$ |
3.20 |
|
Weighted average diluted shares used |
|
201.1 |
|
|
|
199.5 |
|
|
|
200.4 |
|
|
|
199.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 the Generate acquisition and integration
expenses.
Charges included $2.9 million and $8.4 million related to
redundant personnel costs for transitional employees, $0.7 million
and $4.5 million of professional services fees, $1.4 million and
$1.4 million of manufacturing integration costs, $1.5 million and
1.5 million of inventory fair value step-up amortization, and $0.7
million and $4.1 million of other acquisition and
integration-related activities in the three and twelve months ended
October 31, 2024, respectively. The twelve months ended
October 31, 2024 also included $0.7 million regulatory fees.
Charges included $7.5 million and $21.9 million related to
redundant personnel costs for transitional employees, $6.5 million
and $16.2 million of professional services fees, $2.9 million and
$6.5 million of manufacturing integration costs, $3.1 million and
$5.0 million of legal entity rationalization costs, $0.9 million
and $2.7 million regulatory fees, and $0.6 million and $5.0 million
in other acquisition and integration-related activities, in the
three and twelve months ended October 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 $2.3 million of write-offs of
long-lived assets and $1.7 million of other costs related to
product line exits in the twelve months October 31, 2024. No
charge related to product line exits was incurred in the three
months ended October 31, 2024.
Charges included $3.4 million and $7.9 million of
site closure costs related to the exit of the lens care business,
$0.4 million and $1.1 million of other costs related to product
line exits in the three and twelve months ended October 31, 2023,
respectively. The fourth quarter of fiscal 2023 also included $9.8
million of intangible assets impairment charge associated with the
discontinuation of certain products.
(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 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 $1.5 million and $10.6 million of
employee severance costs, $1.0 million and $4.1 million related to
changes to our IT infrastructure and operation, and $0.4 million
and $2.9 million of legal entity and other business reorganizations
costs, in the three and twelve months ended October 31, 2024,
respectively. The twelve months ended October 31, 2024 also
included $0.7 million of other optimization costs.
Charges included $1.4 million and $11.3 million of
employee severance costs, $1.4 million and $1.9 million of legal
entity and other business reorganizations costs, and $0.3 million
and $5.9 million related to changes to our IT infrastructure and
operations, partially offset by $0.2 million and $0.4 million of
other items in the three and twelve months ended October 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 the contingent
consideration liability associated with SightGlass Vision's
regulatory approval milestone in the first quarter of 2023.
(7) Charges include certain 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 installment payables.
Charges included $1.5 million and $5.9 million of
gains and losses on minority interest investments, $1.4 million and
$5.5 million of accretion of interest attributable to acquisition
installments payable, $0.6 million and $1.5 million related to
legal matters in the three and twelve months ended October 31,
2024, respectively.
Charges included $1.6 million and $6.3 million of
gains and losses on minority interest investments, and $1.3 million
and $4.6 million related to legal matters in the three and twelve
months ended October 31, 2023, respectively. The twelve months
ended October 31, 2023 also included $1.1 million of other
items.
(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.
Audio Webcast and Conference CallThe Company
will host an audio webcast today for the public, investors,
analysts and news media to discuss its fourth quarter results and
current corporate developments. The audio webcast will be broadcast
live on CooperCompanies' website, www.investor.coopercos.com, at
approximately 5:00 PM ET. It will also be available for replay on
CooperCompanies' website, www.investor.coopercos.com.
Alternatively, you can dial in to the conference call at
800-715-9871; conference ID 2026064.
About
CooperCompaniesCooperCompanies (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
16,000 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
2025 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 and local
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 the Health Insurance
Portability and Accountability Act of 1996 (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; a successful cybersecurity attack which
could interrupt or disrupt our information technology systems, or
those of our third-party service providers, or cause the loss of
confidential or protected data; 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, 2024, 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) |
|
|
October 31, 2024 |
|
October 31, 2023 |
ASSETS |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
107.6 |
|
|
$ |
120.8 |
|
Trade receivables, net |
|
717.0 |
|
|
|
609.7 |
|
Inventories |
|
802.7 |
|
|
|
735.6 |
|
Prepaid expenses and other current assets |
|
324.2 |
|
|
|
238.8 |
|
Total current assets |
|
1,951.5 |
|
|
|
1,704.9 |
|
Property, plant and equipment,
net |
|
1,863.4 |
|
|
|
1,632.6 |
|
Goodwill |
|
3,838.4 |
|
|
|
3,624.5 |
|
Other intangibles, net |
|
1,791.0 |
|
|
|
1,710.3 |
|
Deferred tax assets |
|
2,210.3 |
|
|
|
2,349.5 |
|
Other assets |
|
660.6 |
|
|
|
637.1 |
|
Total assets |
$ |
12,315.2 |
|
|
$ |
11,658.9 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
Current liabilities: |
|
|
|
Short-term debt |
$ |
33.3 |
|
|
$ |
45.4 |
|
Accounts Payable |
|
260.5 |
|
|
|
261.9 |
|
Employee compensation and benefits |
|
174.8 |
|
|
|
174.8 |
|
Deferred revenue |
|
129.9 |
|
|
|
123.6 |
|
Other current liabilities |
|
424.3 |
|
|
|
363.3 |
|
Total current liabilities |
|
1,022.8 |
|
|
|
969.0 |
|
Long-term debt |
|
2,550.4 |
|
|
|
2,523.8 |
|
Deferred tax liabilities |
|
96.0 |
|
|
|
101.5 |
|
Long-term tax payable |
|
57.5 |
|
|
|
90.2 |
|
Deferred revenue |
|
193.3 |
|
|
|
184.2 |
|
Other liabilities |
|
311.6 |
|
|
|
239.2 |
|
Total liabilities |
|
4,231.6 |
|
|
|
4,107.9 |
|
Stockholders’ equity |
|
8,083.6 |
|
|
|
7,551.0 |
|
Total liabilities and
stockholders' equity |
$ |
12,315.2 |
|
|
$ |
11,658.9 |
|
|
THE COOPER COMPANIES, INC. AND SUBSIDIARIESConsolidated Statements
of Income(In millions, except per share amounts)(Unaudited) |
|
|
Three Months Ended October 31, |
|
Year Ended October 31, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net sales |
$ |
1,018.4 |
|
|
$ |
927.1 |
|
|
$ |
3,895.4 |
|
|
$ |
3,593.2 |
|
Cost of sales |
|
340.7 |
|
|
|
320.6 |
|
|
|
1,299.7 |
|
|
|
1,235.3 |
|
Gross profit |
|
677.7 |
|
|
|
606.5 |
|
|
|
2,595.7 |
|
|
|
2,357.9 |
|
Selling, general and
administrative expense |
|
391.4 |
|
|
|
387.6 |
|
|
|
1,533.7 |
|
|
|
1,501.2 |
|
Research and development
expense |
|
37.7 |
|
|
|
36.7 |
|
|
|
155.1 |
|
|
|
137.4 |
|
Amortization of
intangibles |
|
50.2 |
|
|
|
46.5 |
|
|
|
201.2 |
|
|
|
186.2 |
|
Operating income |
|
198.4 |
|
|
|
135.7 |
|
|
|
705.7 |
|
|
|
533.1 |
|
Interest expense |
|
27.0 |
|
|
|
26.3 |
|
|
|
114.3 |
|
|
|
105.3 |
|
Other expense (income),
net |
|
2.8 |
|
|
|
3.0 |
|
|
|
9.1 |
|
|
|
14.9 |
|
Income before income
taxes |
|
168.6 |
|
|
|
106.4 |
|
|
|
582.3 |
|
|
|
412.9 |
|
Provision for income
taxes |
|
51.1 |
|
|
|
21.9 |
|
|
|
190.0 |
|
|
|
118.7 |
|
Net income |
$ |
117.5 |
|
|
$ |
84.5 |
|
|
$ |
392.3 |
|
|
$ |
294.2 |
|
|
|
|
|
|
|
|
|
Earnings per share -
diluted |
$ |
0.58 |
|
|
$ |
0.42 |
|
|
$ |
1.96 |
|
|
$ |
1.48 |
|
|
|
|
|
|
|
|
|
Number of shares used to
compute diluted earnings per share |
|
201.1 |
|
|
|
199.5 |
|
|
|
200.4 |
|
|
|
199.3 |
|
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
GAAP to Non-GAAP ReconciliationConstant Currency
Revenue Growth and Organic Revenue Growth
Net Sales
|
|
|
% change y/y |
|
(In millions) |
|
Reported |
|
CurrencyImpact |
|
ConstantCurrency |
|
AcquisitionsandDivestitures |
|
Organic |
|
4Q24 |
|
|
|
|
|
CooperVision |
$ |
676.4 |
|
|
9 |
% |
|
(1 |
)% |
|
8 |
% |
|
— |
% |
|
8 |
% |
CooperSurgical |
|
342.0 |
|
|
12 |
% |
|
— |
% |
|
12 |
% |
|
(7 |
)% |
|
5 |
% |
Total |
$ |
1,018.4 |
|
|
10 |
% |
|
(1 |
)% |
|
9 |
% |
|
(2 |
)% |
|
7 |
% |
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