Alcon's Third Quarter Earnings Rise 52.2 Percent on 11.8 Percent Sales Growth.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 $1,071.1 million for the third quarter of 2005, an increase of 11.8 percent over global sales in the third quarter of 2004, or 10.5 percent excluding the impact of foreign exchange fluctuations. Net earnings for the third quarter of 2005 increased 52.2 percent to $295.8 million, or $0.95 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 net earnings of $194.3 million or $0.62 per share for the third quarter of 2004. "Our third quarter results showed solid sales growth and continued strong improvement in gross margins as our sales mix sales mix See product mix. shifted to higher profit products," 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. "Our global brand teams and regional management continue to execute our key strategies to drive market share and increase sales of our featured brands. We also have been able to manage our costs well and to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. our global infrastructure to grow profits faster than sales." Third Quarter Sales Highlights Highlights of sales for the third quarter of 2005 are provided below. Unless otherwise noted, all comparisons are versus the third quarter of 2004. --U.S. sales grew 12.1 percent to $560.5 million, accounting for 52.3 percent of total sales. --International sales grew 11.4 percent to $510.6 million, accounting for 47.7 percent of total sales. Excluding the impact of foreign exchange fluctuations, International sales grew 8.7 percent. --Pharmaceutical sales grew 16.3 percent to $437.8 million and contributed 40.9 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 13.6 percent, led by a 34.2 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. . In the U.S., Travatan(R) solution has increased its share of the prostaglandin prostaglandin (prŏs'təglăn`dən), any of a group of about a dozen compounds synthesized from fatty acids in mammals as well as in lower animals. market 3.0 share points on a 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). ) basis through August 2005 and continued to build share on a global basis. --Sales of infection/inflammation products rose 13.5 percent led by sales of Vigamox(R) ophthalmic solution and the launch of Nevanac(TM) 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. suspension during the third quarter of 2005. Vigamox(R) solution is the leading 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. 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 44.9 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 August 2005 YTD. --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 3.4 percent as the normal, seasonal reduction in wholesaler inventories had a greater impact in the third quarter of 2005. Patanol(R) solution has maintained its number one share position in the U.S., accounting for 67.0 percent of total ocular allergy prescriptions through August 2005 YTD. --Sales of otic products increased 38.4 percent, led by Ciprodex Cip·ro·dex A trademark for a combination of the drugs ciprofloxacin and dexamethasone. (R) otic suspension. The otic franchise, including Ciprodex(R) and Cipro(R) HC otic suspensions, increased 3.7 share points in the U.S. through August 2005 YTD, compared to August YTD 2004, to reach 31.4 percent. --Surgical sales rose 10.4 percent to $484.3 million, accounting for 45.2 percent of total sales. --Sales of intraocular lenses Intraocular lens Lens made of silicone or plastic placed within the eye; can be corrective. Mentioned in: Cataract Surgery increased 18.2 percent to $165.0 million. Sales growth was attributable to market share gains, the launch of the AcrySof(R) ReSTOR(R) intraocular lens, continued conversion to single-piece intraocular lenses in general and the AcrySof(R) Natural lens specifically. Global sales of the AcrySof(R) ReSTOR(R) lens in the third quarter of 2005 and September September: see month. 2005 YTD were $17.5 million and $27.9 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 8.9 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 products, 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 29.1 percent due to a decrease in global equipment sales and procedures. --Consumer eye care sales increased 4.1 percent to $149.0 million, accounting for 13.9 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 1.5 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 15.6 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. Third Quarter Earnings Highlights Highlights of earnings for the third quarter of 2005 are provided below. Unless otherwise noted, all comparisons are versus the third quarter of 2004. --Gross profit margin increased 2.9 percentage points to 77.0 percent of sales, primarily due to manufacturing efficiencies, product mix and reduced royalty expense. --As a percent of sales, SG&A expenses decreased to 30.9 percent from 32.4 percent of sales. The company continued to exercise good cost control by taking advantage of its global operating infrastructure. --As a percent of sales, R&D expenses decreased to 9.7 percent from 10.6 percent of sales due to prior year expenses associated with a license agreement executed in the third quarter of 2004. --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 32.8 percent to $367.9 million, or 34.3 percent of sales, from 28.9 percent of sales. --The company's nine month effective tax rate was 22.7 percent. This represents a decline in the effective tax rate of 5.0 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. and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. mix between tax jurisdictions. 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. Third Quarter Research and Development Update Summarized below are updates on key research and development activities. --The company received approval from 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 Nevanac(TM) ophthalmic suspension for the treatment of pain and inflammation inflammation, reaction of the body to injury or to infectious, allergic, or chemical irritation. The symptoms are redness, swelling, heat, and pain resulting from dilation of the blood vessels in the affected part with loss of plasma and leucocytes (white blood associated with cataract surgery Cataract Surgery Definition Cataract surgery is a procedure performed to remove a cloudy lens from the eye; usually an intraocular lens is implanted at the same time. Purpose The purpose of cataract surgery is to restore clear vision. . --The company received approval from the FDA for the AcrySof(R) ReSTOR(R) Natural intraocular lens. The lens contains a blue-light absorbing chromophore chromophore /chro·mo·phore/ (kro´mo-for) any chemical group whose presence gives a decided color to a compound and which unites with certain other groups (auxochromes) to form dyes. and is designed for cataract patients with and without presbyopia Presbyopia Definition The term presbyopia means "old eye" and is a vision condition involving the loss of the eye's ability to focus on close objects. . --The company received approval from the FDA for the AcrySof(R) Toric tor·ic adj. Of, relating to, or shaped like a torus or part of a torus. intraocular lens 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 corneal astigmatism corneal astigmatism n. Astigmatism due to a defect in the curvature of the corneal surface. . The company is pursuing approval of the lens with a blue-light absorbing chromophore and plans to launch the lens in the spring of 2006. --The company received clearance from the FDA to market Opti-Free(R) RepleniSH re·plen·ish v. re·plen·ished, re·plen·ish·ing, re·plen·ish·es v.tr. 1. To fill or make complete again; add a new stock or supply to: replenish the larder. 2. (TM) multi-purpose disinfecting solution for soft contact lenses contact lenses contact npl → verres mpl de contact contact lenses contact npl → Kontaktlinsen pl contact lenses npl and expects full commercial launch in the first quarter of 2006. --The company received approval 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 in Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. . --The company launched ICaps(R) MV dietary supplement Noun 1. dietary supplement - something added to complete a diet or to make up for a dietary deficiency diet - a prescribed selection of foods vitamin pill - a pill containing one or more vitamins; taken as a dietary supplement , a next generation ocular supplement that provides an advanced ocular nutrition formula and a complete multivitamin mul·ti·vi·ta·min adj. Containing many vitamins. n. A preparation containing many vitamins. multivitamin in one formula. --The company has enrolled more than 2,100 patients in the two risk reduction clinical trials on RETAANE(R) suspension. 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. --During October October: see month. 2005, the company presented 24 month data on RETAANE(R) suspension. The results confirmed the safety of the drug after two years of administration, which was the purpose of the 24 month analysis. The company is continuing its discussions with the FDA and other international regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. bodies regarding approval of the drug. Financial Guidance --Sales for the full year 2005 are expected to be between $4,350 million and $4,400 million. --Diluted earnings per share for the full year 2005 are expected to be between $3.58 and $3.60. --Guidance for sales of the AcrySof(R) ReSTOR(R) lens remains unchanged. 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 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 are 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) solution is licensed to Alcon, Inc. 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 Nine Months Ended
September 30, September 30,
------------------------- -------------------------
2005 2004 2005 2004
------------ ------------ ------------ ------------
Sales $1,071.1 $958.1 $3,313.6 $2,960.9
Cost of goods sold 246.4 248.6 822.7 812.6
------------ ------------ ------------ ------------
Gross profit 824.7 709.5 2,490.9 2,148.3
Selling, general
and
administrative 331.1 310.1 1,009.4 913.2
Research and
development 103.6 101.8 302.9 282.0
Amortization of
intangibles 22.1 20.6 64.1 51.8
------------ ------------ ------------ ------------
Operating income 367.9 277.0 1,114.5 901.3
Other income
(expense):
Gain (loss) from
foreign
currency, net 0.5 1.4 2.3 (1.8)
Interest income 12.8 5.7 33.4 15.9
Interest expense (10.1) (6.5) (28.2) (19.8)
Other, net 3.9 (0.1) 3.9 (0.1)
------------ ------------ ------------ ------------
Earnings before
income taxes 375.0 277.5 1,125.9 895.5
Income taxes 79.2 83.2 255.6 211.0
------------ ------------ ------------ ------------
Net earnings $295.8 $194.3 $870.3 $684.5
============ ============ ============ ============
Basic earnings per
common share $0.96 $0.64 $2.84 $2.24
============ ============ ============ ============
Diluted earnings
per common share $0.95 $0.62 $2.79 $2.20
============ ============ ============ ============
Basic weighted
average common
shares 306,536,803 305,519,598 306,001,571 305,909,907
Diluted weighted
average common
shares 312,525,956 311,019,235 311,700,220 310,941,464
ALCON, INC. AND SUBSIDIARIES
Global Sales
(USD in millions)
Three Months
Ended %Change
September 30, %Foreign in
----------------- Currency Constant
2005 2004 %Change Change Currency
--------- ------- -------- -------- --------
GEOGRAPHIC SALES
United States:
Pharmaceutical $260.9 $226.5 15.2% --% 15.2%
Surgical 225.3 200.7 12.3 -- 12.3
Consumer Eye Care 74.3 72.7 2.2 -- 2.2
--------- -------
Total United States
Sales 560.5 499.9 12.1 -- 12.1
--------- -------
International:
Pharmaceutical 176.9 149.9 18.0 3.3 14.7
Surgical 259.0 237.8 8.9 2.0 6.9
Consumer Eye Care 74.7 70.5 6.0 3.7 2.3
--------- -------
Total International
Sales 510.6 458.2 11.4 2.7 8.7
--------- -------
Total Global Sales $1,071.1 $958.1 11.8% 1.3% 10.5%
========= =======
PRODUCT SALES
Infection/inflammation $157.6 $138.8 13.5%
Glaucoma 153.3 134.9 13.6
Allergy 73.3 70.9 3.4
Otic 74.9 54.1 38.4
Other
pharmaceuticals/rebates (21.3) (22.3) N/M
--------- -------
Total Pharmaceutical 437.8 376.4 16.3 1.3% 15.0%
--------- -------
Intraocular lenses 165.0 139.6 18.2
Cataract/vitreoretinal 307.6 282.4 8.9
Refractive 11.7 16.5 (29.1)
--------- -------
Total Surgical 484.3 438.5 10.4 1.1 9.3
--------- -------
Contact lens
disinfectants 78.3 79.5 (1.5)
Artificial tears 42.2 36.5 15.6
Other 28.5 27.2 4.8
--------- -------
Total Consumer Eye Care 149.0 143.2 4.1 1.9 2.2
--------- -------
Total Global Sales $1,071.1 $958.1 11.8% 1.3% 10.5%
========= =======
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)
Nine months ended %Change
September 30, %Foreign in
------------------- Currency Constant
2005 2004 %Change Change Currency
--------- --------- -------- -------- --------
GEOGRAPHIC SALES
United States:
Pharmaceutical $824.5 $746.1 10.5% --% 10.5%
Surgical 637.0 578.1 10.2 -- 10.2
Consumer Eye Care 215.1 210.3 2.3 -- 2.3
--------- ---------
Total United States
Sales 1,676.6 1,534.5 9.3 -- 9.3
--------- ---------
International:
Pharmaceutical 547.9 449.9 21.8 5.1 16.7
Surgical 856.4 763.4 12.2 4.1 8.1
Consumer Eye Care 232.7 213.1 9.2 4.8 4.4
--------- ---------
Total International
Sales 1,637.0 1,426.4 14.8 4.6 10.2
--------- ---------
Total Global Sales $3,313.6 $2,960.9 11.9% 2.2% 9.7%
========= =========
PRODUCT SALES
Infection/inflammation $490.2 $440.9 11.2%
Glaucoma 463.8 394.6 17.5
Allergy 295.4 268.9 9.9
Otic 178.0 138.8 28.2
Other pharmaceuticals/
rebates (55.0) (47.2) N/M
--------- ---------
Total Pharmaceutical 1,372.4 1,196.0 14.7 1.9% 12.8%
--------- ---------
Intraocular lenses 493.9 429.7 14.9
Cataract/vitreoretinal 956.3 863.6 10.7
Refractive 43.2 48.2 (10.4)
--------- ---------
Total Surgical 1,493.4 1,341.5 11.3 2.3 9.0
--------- ---------
Contact lens
disinfectants 229.5 229.9 (0.2)
Artificial tears 129.4 104.9 23.4
Other 88.9 88.6 0.3
--------- ---------
Total Consumer Eye
Care 447.8 423.4 5.8 2.4 3.4
--------- ---------
Total Global Sales $3,313.6 $2,960.9 11.9% 2.2% 9.7%
========= =========
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)
Sept 30, Dec 31,
2005 2004
--------- ---------
Assets
Current assets:
Cash and cash equivalents $1,112.5 $1,093.4
Short term investments 287.1 138.2
Trade receivables, net 770.4 696.8
Inventories 424.6 455.2
Deferred income tax assets 175.4 176.1
Other current assets 85.2 84.4
--------- ---------
Total current assets 2,855.2 2,644.1
Long term investments 239.9 --
Property, plant and equipment, net 812.2 830.2
Intangible assets, net 315.4 329.3
Goodwill 550.4 549.2
Long term deferred income tax assets 83.9 66.4
Other assets 55.2 48.9
--------- ---------
Total assets $4,912.2 $4,468.1
========= =========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $131.1 $126.2
Short term borrowings 890.5 911.6
Current maturities of long term debt 5.7 4.5
Other current liabilities 908.3 835.1
--------- ---------
Total current liabilities 1,935.6 1,877.4
--------- ---------
Long term debt, net of current maturities 68.6 71.9
Long term deferred income tax liabilities 20.5 23.3
Other long term liabilities 327.1 307.6
Contingencies
Shareholders' equity:
Common shares 43.3 42.7
Additional paid-in capital 762.8 547.3
Accumulated other comprehensive income 101.5 225.4
Deferred compensation (0.6) (2.6)
Retained earnings 2,221.6 1,653.6
Treasury shares, at cost (568.2) (278.5)
--------- ---------
Total shareholders' equity 2,560.4 2,187.9
--------- ---------
Total liabilities and shareholders' equity $4,912.2 $4,468.1
========= =========
ALCON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in millions)
Nine months ended
Sept 30,
------------------
2005 2004
--------- --------
Cash provided by operating activities:
Net cash from operating activities $1,073.1 $862.5
--------- --------
Cash provided by (used in) investing activities:
Purchases of property, plant and equipment (106.7) (109.1)
Purchases of intangible assets (43.2) (69.9)
Net purchases of investments (381.3) (39.7)
Other 2.2 1.2
--------- --------
Net cash from investing activities (529.0) (217.5)
--------- --------
Cash provided by (used in) financing activities:
Net proceeds from (repayment of) short term debt (11.7) (505.2)
Repayment of long term debt (5.2) (9.0)
Dividends on common shares (302.0) (169.4)
Proceeds from exercise of stock options 138.1 19.9
Acquisition of treasury shares (292.7) (174.2)
--------- --------
Net cash from financing activities (473.5) (837.9)
--------- --------
Effect of exchange rates on cash and cash
equivalents (51.5) (12.9)
--------- --------
Net increase (decrease) in cash and cash
equivalents 19.1 (205.8)
Cash and cash equivalents, beginning of period 1,093.4 1,086.0
--------- --------
Cash and cash equivalents, end of period $1,112.5 $880.2
========= ========
Supplemental disclosure of cash flow information:
Cash paid during the period for the following:
Interest expense, net of amount capitalized $28.1 $21.2
========= ========
Income taxes $111.8 $199.4
========= ========
ALCON, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Disclosures (Unaudited)
(USD in Millions, except per share data)
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 item above is considered a non-GAAP financial measure
as defined by Regulation G promulgated by the U.S. Securities and
Exchange Commission related to the favorable impact of 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 this
non-GAAP measure 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 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 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. 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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