Alcon's Second Quarter Sales Increase 12.8 Percent.HUNENBERG, Switzerland Switzerland (swĭt`sərlənd), Fr. Suisse, Ger. Schweiz, Ital. Svizzera, officially Swiss Confederation, federal republic (2005 est. pop. 7,489,000), 15,941 sq mi (41,287 sq km), central Europe. -- Alcon, Inc. (NYSE NYSE See: New York Stock Exchange :ACL See access control list. 1. ACL - Access Control List. 2. ACL - Association for Computational Linguistics. 3. ACL - A Coroutine Language. A Pascal-based implementation of coroutines. ["Coroutines", C.D. ) reported global sales of $1,172.0 million for the second quarter of 2005, an increase of 12.8 percent over global sales in the second quarter of 2004, or 10.1 percent excluding the impact of foreign exchange fluctuations. Net earnings for the second quarter of 2005 increased 34.5 percent to $325.0 million, or $1.04 per share on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, compared to adjusted net earnings of $241.6 million or $0.78 per share for the second quarter of 2004. Adjusted net earnings for the second quarter of 2004 include non-GAAP adjustments reconciled rec·on·cile v. rec·on·ciled, rec·on·cil·ing, rec·on·ciles v.tr. 1. To reestablish a close relationship between. 2. To settle or resolve. 3. in the table below. Reported net earnings for the second quarter of 2004 were $299.2 million, or $0.96 per share. "Our strong second quarter results demonstrated successful execution of our key strategies," said Cary Car·y A town of east-central North Carolina, an industrial suburb of Raleigh. Population: 98,000. Rayment, Alcon's chairman, president and chief executive officer. "We benefited from geographic expansion and continued adoption of research-based new product technologies such as latest generation pharmaceutical and surgical products, including Vigamox(R), Travatan(R), CiproDex Cip·ro·dex A trademark for a combination of the drugs ciprofloxacin and dexamethasone. (R), AcrySof(R) Natural(R), and Accurus(R) 25 Gauge gauge In manufacturing and engineering, a device used to determine whether a dimension is larger or smaller than a reference standard. A snap gauge, for example, is formed like the letter C, with outer “go” and inner “not go” jaws, and is used to technology. At the same time, we continued to leverage our global infrastructure to further drive profit growth. We also look forward to the significant new market opportunity presented by the AcrySof(R) ReSTOR(R) intraocular lens Intraocular lens Lens made of silicone or plastic placed within the eye; can be corrective. Mentioned in: Cataract Surgery , and plan to capitalize To regard the cost of an improvement or other purchase as a capital asset for purposes of determining Income Tax liability. To calculate the net worth upon which an investment is based. To issue company stocks or bonds to finance an investment. upon this to drive future surgical franchise growth." Second Quarter Sales Highlights Highlights of sales for the second quarter of 2005 are provided below. Unless otherwise noted, all comparisons are versus the second quarter of 2004. --U.S. sales grew 8.2 percent to $594.9 million, accounting for 50.8 percent of total sales. --International sales grew 17.9 percent to $577.1 million, accounting for 49.2 percent of total sales. Excluding the impact of foreign exchange fluctuations, International sales grew 12.3 percent. --Pharmaceutical sales grew 14.1 percent to $502.6 million and contributed 42.9 percent of total sales. --Sales of glaucoma glaucoma (glôkō`mə), ocular disorder characterized by pressure within the eyeball caused by an excessive amount of aqueous humor (the fluid substance filling the eyeball). products increased 18.4 percent, led by a 36.5 percent rise in sales of Travatan(R) ophthalmic solution ophthalmic solution n. A sterile solution that is free from foreign particles and is compounded and dispensed for eyedrops. , which continued to build share on a global basis. --Sales of allergy allergy, hypersensitive reaction of the body tissues of certain individuals to certain substances that, in similar amounts and circumstances, are innocuous to other persons. Allergens, or allergy-causing substances, can be airborne substances (e.g. products, including Patanol Patanol® Olopatadine Ophthalmology An agent used to relieve eye itching in allergic conjunctivitis (R) ophthalmic solution, rose 13.1 percent. Patanol(R) has maintained its number one share position in the U.S., accounting for 67.6 percent of total ocular ocular /oc·u·lar/ (ok´u-lar) 1. of, pertaining to, or affecting the eye. 2. eyepiece. oc·u·lar adj. 1. Of or relating to the eye or the sense of sight. allergy prescriptions through May 2005 year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. (YTD See Year-to-date. YTD See year to date (YTD). ). --Sales of infection/inflammation products rose 12.1 percent as sales of Vigamox(R) ophthalmic solution offset the decline in Ciloxan(R) ophthalmic solution, which lost patent protection in the second quarter of 2004. Vigamox(R) is the leading ocular anti-infective an·ti-in·fec·tive adj. Capable of preventing or counteracting infection. n. An anti-infective agent or drug. anti-infective 1. counteracting infection. 2. a substance that counteracts infection. in the U.S. with a 45.1 percent share of the fluoroquinolone fluoroquinolone /flu·o·ro·quin·o·lone/ (-kwin´o-lon) any of a subgroup of fluorine-substituted quinolones, having a broader spectrum of activity than nalidixic acid. fluor·o·quin·o·lone n. category through May 2005 YTD. --Sales of otic products increased 19.5 percent led by Ciprodex(R) otic suspension. The otic franchise, including Ciprodex(R) and Cipro(R) HC otic suspension, increased 4.1 share points in the U.S. through May 2005 YTD, compared to May YTD 2004, to reach 29.9 percent. --Surgical sales rose 13.4 percent to $520.8 million, accounting for 44.4 percent of total sales. --Sales of intraocular lenses increased 16.5 percent to $172.6 million. Sales growth was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to market share gains, continued adoption of the AcrySof(R) Natural lens and global conversion from multi-piece to single-piece intraocular lenses. AcrySof(R) ReSTOR(R) global sales in the second quarter of 2005 and June June: see month. 2005 YTD were $7.4 million and $10.4 million, respectively. --Sales of cataract cataract, in medicine, opacity of the lens of the eye, which impairs vision. In the young, cataracts are generally congenital or hereditary; later they are usually the result of degenerative changes brought on by aging or systemic disease (diabetes). and vitrectomy Vitrectomy Definition Vitrectomy is the surgical removal of the vitreous (transparent gel that fills the eye from the iris to the retina). Purpose products rose 13.1 percent, with sales of vitreoretinal vitreoretinal /vit·reo·ret·i·nal/ (vit?re-o-ret´i-n'l) of or pertaining to the vitreous and retina. vit·re·o·ret·i·nal adj. surgical accessories, cataract removal systems and cataract procedure paks Paks is a town in Tolna county, central Hungary, on the banks of the Danube River. In the last century several mansions were built in the centre of the old town, such as those in Szent István tér, the main square of the town. being key drivers of growth in this sector. --Refractive revenue declined 9.4 percent due to a decrease in global equipment sales. However, procedural revenue increased due to growth in procedures and conversion to higher priced custom procedures. --Consumer eye care sales increased 6.4 percent to $148.6 million, accounting for 12.7 percent of total sales. --Sales of contact lens contact lens, thin plastic lens worn between the eye and eyelid that may be used instead of eyeglasses. Actors, models, and others wear them for appearance, and athletes use them for safety and convenience. disinfectants declined 1.1 percent as growth from Opti-Free(R) Express(R) contact lens disinfectant disinfectant, agent that destroys disease-causing microorganisms and their spores. Disinfectants, or germicides, are sometimes considered to be substances applied to inanimate bodies, whereas antiseptics, not so potent, are agents that kill microbes on living things. did not offset declines in older disinfecting solutions. --Sales of artificial tears artificial tears A solution containing 0.5% carboxymethyl cellulose or 5% polyvinyl alcohol, used to treat dry eye–xerophthalmia, often associated with Sjögren syndrome, which may also be due to sarcoidosis, senile lacrimal gland atrophy, acute or products increased 28.3 percent as Systane(R) lubricant Lubricant A gas, liquid, or solid used to prevent contact of parts in relative motion, and thereby reduce friction and wear. In many machines, cooling by the lubricant is equally important. eye drops eye drops eye npl → gouttes fpl pour les yeux eye drops eye npl → Augentropfen pl continued to gain global market share. Second Quarter Earnings Highlights Highlights of earnings for the second quarter of 2005 are provided below. Unless otherwise noted, all comparisons are versus the second quarter of 2004. --Gross profit margin increased 1.9 percentage points to 75.5 percent of sales, primarily due to manufacturing efficiencies, product mix and reduced royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. expense. During the second quarter, the company completed the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of a royalty agreement on its leading glaucoma drug, Travatan(R) ophthalmic solution, which reduces future royalty payments in exchange for an upfront payment. --As a percent of sales, SG&A expenses decreased to 29.2 percent from 30.1 percent. The company continued to exercise good cost control by taking advantage of its global operating infrastructure. The decrease also reflects the costs of Patanol(R) advertising campaigns, most of which occurred in the first quarter of 2005 while more of the 2004 costs were in the second quarter. --As a percent of sales, R&D expenses remained the same at 8.6 percent. --Led primarily by increased gross margins, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 20.7 percent to $419.8 million, or 35.8 percent of sales, from 33.5 percent of sales. --The company's six month effective tax rate was 23.5 percent. This represents a decline in the effective tax rate of 4.2 percentage points compared to the 2004 full year adjusted tax rate of 27.7 percent. The reduction in the effective tax rate was primarily due to the resumption RESUMPTION. To reassume; to promise again; as, the resumption of payment of specie by the banks is general. It also signifies to take things back; as the government has resumed the possession of all the lands which have not been paid for according to the requisitions of the law, and the of funding a portion of research and development expenses in the U.S. The 2004 full year adjusted effective tax rate includes non-GAAP adjustments reconciled in the table below. The reported effective tax rate for the full year 2004 was 22.6 percent. Second Quarter Research and Development Update Summarized below are updates on key research and development activities. --The company filed a Pre-marketing Approval (PMA PMA (papillary-marginal-attached), n a system of epidemiologic scoring of periodontal disease devised by Schour and Massler in which the symbols denote the areas involved in gingival inflammation. PMA Progressive muscular atrophy ) application, with the U.S. Food and Drug Administration (FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. ), for the AcrySof(R) toric tor·ic adj. Of, relating to, or shaped like a torus or part of a torus. intraocular lens, designed for use in cataract patients with pre-existing Adj. 1. pre-existing - existing previously or before something; "variations on pre-existent musical themes" pre-existent, preexistent, preexisting antecedent - preceding in time or order astigmatism astigmatism (əstĭg`mətĭz'əm), type of faulty vision caused by a nonuniform curvature in the refractive surfaces—usually the cornea, less frequently the lens—of the eye. . The FDA has accepted this PMA filing for review. --The company received an approvable letter from the FDA for its New Drug Application (NDA (Non Disclosure Agreement) An agreement signed between two parties that have to disclose confidential information to each other in order to do business. In general, the NDA states why the information is being divulged and stipulates that it cannot be used for any ) for RETAANE(R) 15 mg (anecortave Anecortave (rINN) (IPA: [ænəˈkɔteɪv]) is a novel angiogenesis inhibitor used in the treatment of the exudative (wet) form of age-related macular degeneration. acetate acetate (ăs`ĭtāt'), one of the most important forms of artificial cellulose-based fibers; the ester of acetic acid. The first patents for the production of fibers from cellulose acetate appeared at the beginning of the 20th cent. suspension) an investigational treatment for preserving the vision of patients with wet age-related macular degeneration Age-related macular degeneration (ARMD) Degeneration of the macula (the central part of the retina where the rods and cones are most dense) that leads to loss of central vision in people over 60. . The company said it held an initial meeting with the FDA in July July: see month. to discuss the approvable letter and will continue discussions with the Agency in its efforts to gain approval. --Almost 1,900 patients have been enrolled in the two risk reduction clinical trials on RETAANE(R). The company expects to enroll the full complement of 2,500 patients for the trials by the end of 2005. Once fully enrolled, these studies are expected to last four years. --The company submitted its European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. Marketing Authorisation Application for its Travoprost travoprost /trav·o·prost/ (trav´o-prost) a synthetic prostaglandin analogue used in the treatment of elevated intraocular pressure in open-angle glaucoma or ocular hypertension. plus Timolol timolol /ti·mo·lol/ (ti´mo-lol) a nonselective beta-adrenergic blocking agent used as the maleate salt in the treatment of hypertension, the treatment and prophylaxis of recurrent myocardial infarction and the prophylaxis of migraine; Fixed Combination glaucoma treatment. --The company filed a PMA application with the U.S. FDA for the treatment of hyperopia hyperopia (hī'pərō`pēə): see farsightedness. with astigmatism for its LADARVision(R) CustomCornea(R) system. Financial Guidance Financial guidance for the full year 2005 is provided below. --Sales are expected to be between $4,350 million and $4,400 million. --Diluted earnings per share are expected to be between $3.40 and $3.45. --The company raised its expectations for global sales of the AcrySof(R) ReSTOR(R) lens to be between $45 million and $55 million for the full year 2005. These sales are included in the company's updated full year 2005 guidance. Other Items On May 6, 2005, the company reported that a jury in the U.S. District Court in Delaware Delaware, state, United States Delaware (dĕl`əwâr, –wər), one of the Middle Atlantic states of the United States, the country's second smallest state (after Rhode Island). had rendered a verdict that the company infringed two U.S. patents owned by Advanced Medical Optics Advanced Medical Optics, Inc., (NYSE: EYE) (known as AMO) is a global medical device leader focused on the discovery and delivery of innovative vision technologies that optimize the quality of life for people of all ages. , Inc. The amount of the verdict was $94.8 million. No judgment has been entered and the litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. continues in progress. In several motions filed in July 2005, the company has asked the court to set aside the verdict, and the company will appeal if necessary. The company's management believes that it is premature pre·ma·ture adj. 1. Occurring or developing before the usual or expected time. 2. Born after a gestation period of less than the normal time, especially, in human infants, after a period of less than 37 weeks. to predict the likely liability, if any, in this case, and therefore, the company's full year 2005 guidance does not include any provision for an adverse outcome. Company Description Alcon, Inc. is the world's leading eye care company, with sales of $3.9 billion in 2004. Alcon, which has been dedicated to the ophthalmic ophthalmic /oph·thal·mic/ (of-thal´mik) ocular (1). oph·thal·mic adj. Of or relating to the eye; ocular. Ophthalmic Pertaining to the eye. industry for more than 50 years, develops, manufactures and markets pharmaceuticals, surgical equipment and devices, contact lens care solutions and other vision care products that treat diseases, disorders and other conditions of the eye. Alcon's majority shareholder is Nestle, S.A., the world's largest food company. All trademarks noted in this release are the property of Alcon, Inc., with the exception of Cipro(R) and Ciprodex(R), which is the property of Bayer AG Bayer AG German chemical and pharmaceutical company. Founded in 1863 by Friedrich Bayer (1825–1880), it now operates plants in more than 30 countries. Bayer has originated scores of pharmaceuticals, chemicals, and synthetic materials; it was the first developer and and licensed to Alcon. Vigamox(R) is licensed to Alcon by Bayer AG.
ALCON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings (Unaudited)
(USD in millions, except share and per share data)
Three months ended Six months ended
June 30, June 30,
--------------------------- ---------------------------
2005 2004 2005 2004
------------- ------------- ------------- -------------
Sales $ 1,172.0 $ 1,039.2 $ 2,242.5 $ 2,002.8
Cost of goods
sold 287.7 274.2 576.3 564.0
------------- ------------- ------------- -------------
Gross profit 884.3 765.0 1,666.2 1,438.8
Selling,
general and
administrative 341.8 312.3 678.3 603.1
Research and
development 100.8 89.3 199.3 180.2
Amortization of
intangibles 21.9 15.7 42.0 31.2
------------- ------------- ------------- -------------
Operating
income 419.8 347.7 746.6 624.3
Other income
(expense):
Gain (loss)
from foreign
currency,
net (0.6) (4.8) 1.8 (3.2)
Interest
income 12.5 4.5 20.6 10.2
Interest
expense (9.4) (6.3) (18.1) (13.3)
Other, net 0.3 - - -
------------- ------------- ------------- -------------
Earnings
before
income taxes 422.6 341.1 750.9 618.0
Income taxes 97.6 41.9 176.4 127.8
------------- ------------- ------------- -------------
Net earnings $ 325.0 $ 299.2 $ 574.5 $ 490.2
============= ============= ============= =============
Basic earnings
per common
share $ 1.06 $ 0.98 $ 1.88 $ 1.60
============= ============= ============= =============
Diluted
earnings per
common share $ 1.04 $ 0.96 $ 1.85 $ 1.58
============= ============= ============= =============
Basic weighted
average common
shares 306,520,335 305,357,938 305,729,518 306,107,207
Diluted
weighted
average common
shares 312,047,408 310,678,556 311,280,508 310,902,151
ALCON, INC. AND SUBSIDIARIES
Global Sales
(USD in millions)
%Change
Three months ended Foreign in
June 30, Currency Constant
2005 2004 %Change %Change Currency
-------- -------- -------- -------- --------
GEOGRAPHIC SALES
United States:
Pharmaceutical $ 311.0 $ 284.0 9.5% - % 9.5 %
Surgical 214.3 196.8 8.9 - 8.9
Consumer eye care 69.6 69.1 0.7 - 0.7
-------- --------
Total United States
Sales 594.9 549.9 8.2 - 8.2
-------- --------
International:
Pharmaceutical 191.6 156.5 22.4 6.2 16.2
Surgical 306.5 262.3 16.9 5.2 11.7
Consumer eye care 79.0 70.5 12.1 5.9 6.2
-------- --------
Total International
Sales 577.1 489.3 17.9 5.6 12.3
-------- --------
Total Global Sales $1,172.0 $1,039.2 12.8% 2.7 % 10.1 %
======== ========
PRODUCT SALES
Infection/inflammation $ 171.0 $ 152.6 12.1%
Glaucoma 156.2 131.9 18.4
Allergy 135.4 119.7 13.1
Otic 60.1 50.3 19.5
Other
pharmaceuticals/rebates (20.1)) (14.0)) N/M
-------- --------
Total Pharmaceutical 502.6 440.5 14.1 2.2 % 11.9 %
-------- --------
Intraocular lenses 172.6 148.1 16.5
Cataract/vitreoretinal 333.8 295.1 13.1
Refractive 14.4 15.9 (9.4)
-------- --------
Total Surgical 520.8 459.1 13.4 2.9 10.5
-------- --------
Contact lens
disinfectants 74.3 75.1 (1.1)
Artificial tears 43.5 33.9 28.3
Other 30.8 30.6 0.7
-------- --------
Total Consumer Eye Care 148.6 139.6 6.4 2.9 3.5
-------- --------
Total Global Sales $1,172.0 $1,039.2 12.8% 2.7 % 10.1 %
======== ========
N/M - Not Meaningful
Note: Percent Change in Constant Currency calculates sales growth
without the impact of foreign exchange fluctuations. Management
believes constant currency sales growth is an important measure of the
company's operations because it provides investors with a clearer
picture of the core rate of sales growth due to changes in unit
volumes and local currency prices.
ALCON, INC. AND SUBSIDIARIES
Global Sales
(USD in millions)
%Change
Six months ended Foreign in
June 30, Currency Constant
2005 2004 %Change %Change Currency
-------- -------- -------- -------- --------
GEOGRAPHIC SALES
United States:
Pharmaceutical $ 563.6 $ 519.6 8.5% - % 8.5 %
Surgical 411.7 377.4 9.1 - 9.1
Consumer eye care 140.8 137.6 2.3 - 2.3
-------- --------
Total United States
Sales 1,116.1 1,034.6 7.9 - 7.9
-------- --------
International:
Pharmaceutical 371.0 300.0 23.7 6.0 17.7
Surgical 597.4 525.6 13.7 5.1 8.6
Consumer eye care 158.0 142.6 10.8 5.3 5.5
-------- --------
Total International
Sales 1,126.4 968.2 16.3 5.3 11.0
-------- --------
Total Global Sales $2,242.5 $2,002.8 12.0% 2.6 % 9.4 %
======== ========
PRODUCT SALES
Infection/inflammation $ 332.6 $ 302.1 10.1%
Glaucoma 310.5 259.7 19.6
Allergy 222.1 198.0 12.2
Otic 103.1 84.7 21.7
Other
pharmaceuticals/rebates (33.7) (24.9) N/M
-------- --------
Total Pharmaceutical 934.6 819.6 14.0 2.2 % 11.8 %
-------- --------
Intraocular lenses 328.9 290.1 13.4
Cataract/vitreoretinal 648.7 581.2 11.6
Refractive 31.5 31.7 (0.6)
-------- --------
Total Surgical 1,009.1 903.0 11.7 2.9 8.8
-------- --------
Contact lens
disinfectants 151.2 150.4 0.5
Artificial tears 87.2 68.4 27.5
Other 60.4 61.4 (1.6)
-------- --------
Total Consumer Eye Care 298.8 280.2 6.6 2.6 4.0
-------- --------
Total Global Sales $2,242.5 $2,002.8 12.0% 2.6 % 9.4 %
======== ========
N/M - Not Meaningful
Note: Percent Change in Constant Currency calculates sales growth
without the impact of foreign exchange fluctuations. Management
believes constant currency sales growth is an important measure of the
company's operations because it provides investors with a clearer
picture of the core rate of sales growth due to changes in unit
volumes and local currency prices.
ALCON, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(USD in millions)
June 30, Dec 31,
2005 2004
--------- ---------
Assets
Current assets:
Cash and cash equivalents $1,210.6 $1,093.4
Short term investments 233.4 138.2
Trade receivables, net 823.7 696.8
Inventories 408.9 455.2
Deferred income tax assets 175.0 176.1
Other current assets 84.7 84.4
--------- ---------
Total current assets 2,936.3 2,644.1
Long term investments 128.1 -
Property, plant and equipment, net 804.0 830.2
Intangible assets, net 337.4 329.3
Goodwill 550.6 549.2
Long term deferred income tax assets 67.7 66.4
Other assets 52.0 48.9
--------- ---------
Total assets $4,876.1 $4,468.1
========= =========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 176.3 $ 126.2
Short term borrowings 1,087.5 911.6
Current maturities of long term debt 5.6 4.5
Other current liabilities 863.9 835.1
--------- ---------
Total current liabilities 2,133.3 1,877.4
--------- ---------
Long term debt, net of current maturities 71.5 71.9
Long term deferred income tax liabilities 20.9 23.3
Other long term liabilities 318.4 307.6
Contingencies
Shareholders' equity:
Common shares 43.3 42.7
Additional paid-in capital 732.7 547.3
Accumulated other comprehensive income 108.3 225.4
Deferred compensation (1.3) (2.6)
Retained earnings 1,925.8 1,653.6
Treasury shares, at cost (476.8) (278.5)
--------- ---------
Total shareholders' equity 2,332.0 2,187.9
--------- ---------
Total liabilities and shareholders' equity $4,876.1 $4,468.1
========= =========
ALCON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in millions)
Six months ended
June 30,
--------------------
2005 2004
--------- ---------
Cash provided by operating activities:
Net cash from operating activities $ 653.5 $ 462.3
--------- ----------
Cash provided by (used in) investing activities:
Purchases of property, plant and equipment (65.1) (74.6)
Purchases of intangible assets (2.8) -
Net purchases of investments (220.1) (47.6)
Other 1.3 1.1
--------- ----------
Net cash from investing activities (286.7) (121.1)
--------- ---------
Cash provided by (used in) financing activities:
Net proceeds from (repayment of) short term
debt 186.7 (227.8)
Repayment of long term debt (4.8) (8.7)
Dividends on common shares (302.0) (169.4)
Proceeds from exercise of stock options 119.8 13.4
Acquisition of treasury shares (200.5) (173.1)
--------- ----------
Net cash from financing activities (200.8) (565.6)
--------- ---------
Effect of exchange rates on cash and cash
equivalents (48.8) (17.4)
--------- ---------
Net increase (decrease) in cash and cash
equivalents 117.2 (241.8)
Cash and cash equivalents, beginning of period 1,093.4 1,086.0
--------- ----------
Cash and cash equivalents, end of period $1,210.6 $ 844.2
========= ==========
Supplemental disclosure of cash flow information:
Cash paid during the period for the following:
Interest expense, net of amount capitalized $ 18.8 $ 14.5
========= =========
Income taxes $ 74.6 $ 119.2
========= =========
ALCON, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Disclosures (Unaudited)
(USD in Millions, except per share data)
Quarter ended June 30, 2004 (1)
---------------------------------
Non-GAAP Non-GAAP
Reported Adjustment Adjusted
----------- ------------ --------
Net Earnings $299.2 $(57.6) $241.6
Diluted earnings per common share $0.96 $(0.18) $0.78
Year ended December 31, 2004 (1)
---------------------------------
Non-GAAP Non-GAAP
Reported Adjustment Adjusted
----------- ------------ --------
Effective Tax Rate 22.6% 5.1% 27.7%
(1) The adjusted items above are considered non-GAAP financial
measures as defined by Regulation G promulgated by the U.S.
Securities and Exchange Commission. The non-GAAP adjustments for
the second quarter of 2004 and for the year ended December 31,
2004 are for the favorable impact related to filing amended
federal income tax returns to claim research and experimentation
tax credits for prior years and to the resolution of several
significant tax audit issues. Alcon presents these non-GAAP
measures to improve the comparability and consistency of financial
results of Alcon's core business activities and to enhance the
overall understanding of Alcon's performance and future prospects
Caution Concerning Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements principally relate to statements regarding the expectations of our management with respect to the future performance of various aspects of our business. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by our forward-looking statements. Words such as "may," "will," "should," "could," "would," "expect," "plan," "anticipate," "believe," "hope," "intend," "estimate," "project," "predict," "potential" and similar expressions are intended to identify forward-looking statements. These statements reflect the views of our management as of the date of this press release with respect to future events and are based on assumptions and subject to risks and uncertainties and are not intended to give any assurance as to future results. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Factors that might cause future results to differ include, but are not limited to, the following: the development of commercially viable products may take longer and cost more than expected; changes in reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. procedures by third party payers may affect our sales and profits; competition may lead to worse than expected financial condition and results of operations; currency exchange rate fluctuations may negatively affect our financial condition and results of operations; pending or future litigation may negatively impact our financial condition and results of operations; litigation settlements may adversely impact our financial condition; the occurrence of excessive property and casualty, general liability or business interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. losses, for which we are self-insured self-insured Self fund Health insurance adjective Referring to the practice of carrying an individual health insurance policy for oneself; self insurance is usually more expensive than group insurance , may adversely impact our financial condition; product recalls or withdrawals may negatively impact our financial condition or results of operations; government regulation or legislation may negatively impact our financial condition or results of operations; changes in tax laws or regulations in the jurisdictions in which we and our subsidiaries are subject to taxation may adversely impact our financial performance; supply and manufacturing disruptions could negatively impact our financial condition or results of operations. You should read this press release with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. Except to the extent required under the federal securities laws and the rules and regulations promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. by the Securities and Exchange Commission, we undertake no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information or future events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or or otherwise. |
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