Bausch & Lomb Announces First-Quarter 2002 Results.Business Editors/Health & Medical Writers ROCHESTER, N.Y.-(BUSINESS WIRE)--April 25, 2002--Bausch & Lomb (NYSE NYSE See: New York Stock Exchange :BOL BOL Bolivia (ISO Country code) BOL Books Online BOL Bole (SIL code, Nigeria) BOL Bill Of Lading BOL Beginning Of Line BOL Best Of Luck BOL Buzz Out Loud BOL Bruin Online BOL Beginning Of Life ) -- Consolidated Revenues Increase 3% Over Prior Year -- Comparable-Basis Earnings Per Share Increase $0.12, Including $0.08 Impact from Adoption of SFAS 142 -- Company Reaffirms Full-Year EPS and Revenue Expectations Bausch & Lomb (NYSE:BOL) announced today the results of its operations for the first quarter ended March 30, 2002. Reported Revenues and Net Income Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight during the period were $414.2 million, up 3% from the $402.6 million reported in the first quarter of 2001. In constant dollars (excluding the impact of changes in foreign currency exchange rates), revenues increased 5% from the prior year. For the first quarter the Company reported net earnings of $8.8 million, or $0.16 per share, compared to a net loss of $1.0 million, or $0.02 per share, in the prior-year period. Impact of Change in Accounting for Goodwill These results include an $0.08 per share earnings benefit from the Company's first-quarter 2002 adoption of Statement of Financial Accounting Standards (SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System ) No. 142 - Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , under which it will no longer amortize amortize To write off gradually and systematically a given amount of money within a specific number of time periods. For example, an accountant amortizes the cost of a long-term asset by deducting a portion of that cost against income in each period. goodwill recorded on its balance sheet. The Company had previously estimated the earnings benefit of this adoption to be approximately $0.35 per share for all of 2002. That amount has now been determined to be $0.33 per share. Had the adoption been made as of the beginning of 2001, prior-year first-quarter pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. per share would have increased by $0.09, to $0.07 per share. Reconciliation of Reported Results to Comparable-Basis Results A number of items reflected in the Company's reported net earnings impact the comparability of year-over-year results. A reconciliation of reported net earnings and earnings per share to comparable-basis net earnings and earnings per share from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the is presented in the following table.
Dollars in Millions,
Except Per Share Data First Quarter 2002 First Quarter 2001
----------------------------------------------------------------------
$ Per Share $ Per Share
--------------------- ---------- ----------
Reported net
earnings(loss) $8.8 $0.16 $(1.0) $(0.02)
Gain on adoption
of SFAS 133 - - (0.3) -
---------- ----------- ---------- -----------
Reported earnings
from continuing
operations $8.8 $0.16 $(1.3) $(0.02)
Restructuring charges
and asset write-offs 15.4 0.28 11.0 0.21
Gain on sale of stock
investment (18.1) (0.33) (3.5) (0.07)
Minority interest charge 7.0 0.13 - -
---------- ----------- ---------- ----------
Comparable basis net
earnings from continuing
operations $13.1 $0.24 $6.2 $0.12
---------- ----------- ---------- ----------
Brief explanations of the items that impact both periods follow. In the current quarter, the Company recorded restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. and asset write-offs totaling $23.5 million before taxes, or $15.4 million after taxes, associated with a 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). program announced in January and designed to reduce ongoing operating costs operating costs npl → gastos mpl operacionales . First-quarter 2001 results included charges of $16.9 million before taxes, or $11.0 million after taxes, associated with restructuring initiatives to implement a new organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. , as well as the write-off of an investment in a business-to-business e-commerce venture. Both quarters included gains from the sale of equity interests in Charles River Charles River River, eastern Massachusetts, U.S. The longest river wholly in the state, it flows into Boston Bay after a course of about 80 mi (130 km). Navigable for about 7 mi (11 km), its estuary separates the cities of Boston and Cambridge. Laboratories, Inc. which the Company retained when it divested that entity in 1999. Such gains amounted to $27.6 million before taxes, or $18.1 million after taxes, in 2002 and $5.4 million before taxes, or $3.5 million after taxes, in 2001. The Company no longer holds an equity position in Charles River. As previously announced, Moody's Investor Services downgraded the Company's debt securities during the first quarter of 2002, triggering the early termination of a partnership transaction that is classified as minority interest on the Company's balance sheet. In the 2002 first quarter, the Company recorded a charge to minority interest expense of $7.0 million after taxes, representing a previously announced early liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy premium associated with the termination, which is expected to occur in the second quarter of this year. First-Quarter Revenues by Geographic Location On a geographic segment basis, first-quarter revenues in the Americas region increased 5% over the prior year, and were up 6% in constant dollars. Revenues were flat in Europe on a reported basis and up 3% in constant dollars. In the Asia region, revenues increased 2% on a reported basis, and grew 7% in constant dollars, reflecting primarily movements in the Japanese yen “Yen” redirects here. For the other use, see Yen (disambiguation). “JPY” redirects here. For the Australian singer with the same moniker, see John Paul Young. . U.S. revenues increased 4% over the prior year, and constituted 44% of total Company sales. Outside the U.S., revenues increased 2%, but increased 6% in constant dollars. First-Quarter Revenues by Product Category 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. revenues increased 8% from the same period in 2001, and were up 11% in constant dollars. Double-digit increases in sales of the Company's newer-technology planned replacement and disposable products Disposable products are items that are not intended by the manufacturer to be reused more than once or a few times as compared to more permanent serviceable and reusable items. Some products that have disposable versions are:
adj. Of, relating to, or shaped like a torus or part of a torus. , outpaced relatively flat performance for the Company's lines of older-technology offerings. Lens care revenues increased 3% from the prior year, and were up 5% in constant dollars, with sales increases in the Americas and Asia more than offsetting modest declines in Europe. In the U.S. market, the Company experienced slight revenue increases from the prior year, following a period of retail inventory reductions that had impacted sales performance throughout 2001, and benefiting from the recent launch of ReNu MultiPlus No Rub RUB In currencies, this is the abbreviation for the Russian Ruble. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. Formula. Pharmaceutical revenues increased 10% over the prior year, and grew 13% in constant dollars. Gains were driven by the Americas region, which benefited from higher sales of proprietary and multi-source products as well as the launch of Ocuvite PreserVision, the 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. vitamin supplement used by the National Eye Institute in its landmark Age-Related Eye Disease Study The Age-Related Eye Disease Study was a clinical trial sponsored by the National Eye Institute, one of the National Institutes of Health in the United States. The study was designed to tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. pending generic pharmaceutical price legislation in Germany. 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. product revenues declined 7% from the prior year, and were down 6% in constant dollars, with lower sales reported in all regions. This reflects the residual impact of market share lost throughout 2001 as the Company addressed product supply issues in this category. With these issues largely resolved, the Company is focusing on regaining customer confidence and rebuilding its share position. Refractive surgery Refractive surgery A surgical procedure that corrects visual defects. Mentioned in: Photorefractive Keratectomy and Laser-Assisted In-Situ Keratomileusis refractive surgery product revenues declined 9% in actual dollars and 8% in constant dollars from the prior year. As anticipated by the Company, softness in the U.S. economy has led to a slowing in the number of consumers electing to have LASIK LASIK laser-assisted in-situ keratomileusis. LA·SIK n. Eye surgery in which the surface of the cornea is reshaped using a laser, performed to correct certain refractive disorders such as myopia. surgery than in the year-ago quarter. Outside the U.S., the Company noted continued increases in sales of procedure cards and equipment used in its Zyoptix system for customized refractive surgery. "This quarter's results represent a good first step on our road to improved financial performance," commented Ronald L. Zarrella, Bausch & Lomb's chairman and chief executive officer. "We were particularly pleased with our comparable-basis operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before performance, which improved nearly 40% had goodwill been treated similarly in both years. But we still have work to do to achieve our three-year targets of upper-single digit A single character in a numbering system. In decimal, digits are 0 through 9. In binary, digits are 0 and 1. digit - An employee of Digital Equipment Corporation. See also VAX, VMS, PDP-10, TOPS-10, DEChead, double DECkers, field circus. revenue growth and mid-teen operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: . With our continuing aggressive efforts to manage costs, the adoption of a more disciplined approach to the business, and strategic investments in growth opportunities, these goals should be attainable at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. ." Company Provides Updated 2002 Outlook Commenting on the Company's expectations for the remainder of 2002, Zarrella said, "Our business performance in the first quarter was generally in line with our internal expectations, and we expect the positive trends to continue, with sequential earnings per share improvement in each of the next three quarters. As a result, we remain comfortable with our original guidance for the year (adjusting for the final impact of adopting SFAS 142) of full-year EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. in the mid-$1.60s range, with revenue growth in the mid-to-upper single digits." Company Updates Status of Envision TD Technology Program With respect to the development program for the Envision TD drug delivery implant implant /im·plant/ (im-plant´) to insert or to graft (tissue, or inert or radioactive material) into intact tissues or a body cavity. , the Company indicated that it is still targeting approval of a first indication around the end of 2003 with product commercialization in 2004. Six-month data from the first diabetic diabetic /di·a·bet·ic/ (-bet´ik) 1. pertaining to or affected with diabetes. 2. a person with diabetes. di·a·bet·ic adj. 1. macular edema macular edema Ophthalmology Waxing and waning retinal thickening due to the accumulation of fluid, seen in Pts with diabetic retinopathy, seen with a binocular slit lamp or stereoscopic fundus photography; while ME has no visual consequences, it is often clinical study will be analyzed an·a·lyze tr.v. an·a·lyzed, an·a·lyz·ing, an·a·lyz·es 1. To examine methodically by separating into parts and studying their interrelations. 2. Chemistry To make a chemical analysis of. 3. during the second quarter, after which the Company anticipates providing information concerning those results. Quarterly Dividend Reduced In a separate news release, the Company announced a reduction in its quarterly dividend from $0.26 to $0.13 per share in order to better align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. its dividend payout pay·out n. 1. The act or an instance of paying out. 2. A percentage of corporate earnings that is paid as dividends to shareholders. with its own financial objectives and the payout rates of its industry peers. Note: All per share amounts in this release are calculated on the 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, as defined by Statement of Financial Accounting Standards (SFAS) No. 128.
Investor Conference Call Information
10:00 a.m. (ET)
The News Media is invited to listen only on this call.
Call-in Number: 913-981-5507
Rebroadcast Number: 719-457-0820
Confirmation #508942
The rebroadcast of the conference call will be available starting at 1:30 p.m. ET April 25, 2002 through midnight April 29, 2002. Additionally, the investor call will be broadcast live over the Internet. It can be accessed from the Investor Relations Investor relations The process by which the corporation communicates with its investors. page of the Company's Web site, www.bausch.com, or at www.vcall.com. This press release contains, among other things, certain statements of a forward-looking nature relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future events or the future business performance of Bausch & Lomb. Such statements involve a number of risks and uncertainties including those concerning economic conditions, currency exchange rates, product development, enrollment and completion of clinical trials, regulatory approvals, product introductions, the financial well-being of key customers, the successful execution of marketing strategies, the continued successful implementation of its efforts in managing and reducing costs and expenses, continued positive relations with third party financing sources, as well as the risk factors listed from time to time in the Company's SEC filings, including but not limited to the Form 10K for the year ended December 29, 2001. Bausch & Lomb Incorporated is the preeminent pre·em·i·nent or pre-em·i·nent adj. Superior to or notable above all others; outstanding. See Synonyms at dominant, noted. [Middle English, from Latin prae global technology-based healthcare Company for the eye, dedicated to helping consumers see, look and feel better through innovative technology. Its core businesses include soft and rigid gas permeable gas permeable gas adj (lenses) → luftdurchlässig contact lenses contact lenses contact npl → verres mpl de contact contact lenses contact npl → Kontaktlinsen pl contact lenses npl , lens care products, 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. surgical and pharmaceutical products. The Company is advantaged with some of the most respected brands in the world starting with its name, Bausch & Lomb, and including SofLens, PureVision, Boston, ReNu, Storz and Technolas. Founded in 1853 in Rochester, N.Y., where it continues to have its headquarters, the Company had revenues of approximately $1.7 billion in 2001, and employs approximately 12,000 people in more than 50 countries. Bausch & Lomb products are available in more than 100 countries around the world. Additional information about the Company can be found on Bausch & Lomb's Worldwide Web site at http://www.bausch.com. Copyright Bausch & Lomb Incorporated. The trademarks of Bausch & Lomb Incorporated and its affiliates are italicized.
Bausch & Lomb Incorporated
STATEMENT OF EARNINGS
Three Months Ended
-------------------------
Dollar Amounts in Millions- March 30, March 31,
Except Per Share Data 2002 2001
------------------------- ----------- ----------
Net Sales
Americas $ 199.2 $ 189.0
Europe 144.9 144.7
Asia-Pacific 70.1 68.9
----------- ----------
414.2 402.6
Costs and Expenses
Cost of products sold 181.4 188.0
Selling, administrative
and general 174.9 169.4
Research and development 30.1 29.8
Restructuring charges (1) 23.5 16.9
----------- ----------
409.9 404.1
----------- ----------
Operating Earnings 4.3 (1.5)
Other (Income) Expense
Interest and investment
income (2) (37.2) (14.8)
Interest expense 12.7 18.2
Gain from foreign currency 0.2 (6.6)
----------- ----------
(24.3) (3.2)
----------- ----------
Earnings (Loss) Before Income
Taxes and Minority Interest 28.6 1.7
Provision for income taxes 9.8 (0.5)
----------- ----------
Earnings (Loss) Before Minority
Interest 18.8 2.2
Minority interest in
subsidiaries (3) 10.0 3.5
----------- ----------
Earnings (Loss) from Continuing
Operations 8.8 (1.3)
Gain from Change in Accounting
Principle, net of taxes (4) - 0.3
----------- ----------
Net Earnings (Loss) $ 8.8 $ (1.0)
=========== ==========
Per Share:
Earnings (Loss) from Continuing
Operations $ 0.16 $ (0.02)
Gain from Change in Accounting
Principle, net of taxes - -
----------- ----------
Net Earnings (Loss) $ 0.16 $ (0.02)
=========== ==========
Average Shares Outstanding - (000s) 53,979 53,499
=========== ==========
(1) Restructuring charges reduced first-quarter 2002 net earnings
by $15.4 or $0.28 per diluted share. Such charges reduced
first-quarter 2001 net earnings by $11.0 or $0.21 per diluted
share.
(2) Includes $27.6 income for the first-quarter 2002 ($18.1 after
taxes or $0.33 per diluted share) and $5.4 income for the
first-quarter 2001 ($3.5 after taxes or $0.07 per diluted
share) for the sale of Charles River stock.
(3) First-quarter 2002 reflects a $7.0 after-tax or $0.13 per
diluted share charge related to the liquidation of a
partnership agreement.
(4) Income taxes related to the adoption of SFAS 133 were $0.1 for
the first-quarter 2001.
SUPPLEMENTAL REVENUE INFORMATION
Net Sales
Contact Lens $ 119.9 $ 111.1
Lens Care 105.5 102.1
Pharmaceuticals 85.5 77.4
Cataract 72.4 78.0
Refractive 30.9 34.0
----------- ----------
$ 414.2 $ 402.6
=========== ==========
Bausch & Lomb Incorporated
BALANCE SHEET
March 30, December 29,
Dollar Amounts in Millions 2002 2001
-------------------------- ----------------- -----------------
Assets
Cash and Short-term
Investments $ 501.6 $ 534.4
Trade Receivables, Net 368.3 380.7
Other Investments,
Available for Sale - 41.9
Inventories, Net 254.9 253.4
Other Current Assets 203.1 186.9
----------------- -----------------
Current Assets 1,327.9 1,397.3
Properties, Net 537.2 543.3
Goodwill and Intangible
Assets 815.5 842.2
Other Investments, Net 4.5 4.5
Other Assets 235.7 206.2
----------------- -----------------
Total Assets $ 2,920.8 $ 2,993.5
----------------- -----------------
Liabilities and
Shareholders'
Equity
Short-Term Debt $ 101.9 $ 123.3
Other Current Liabilities 585.2 580.3
----------------- -----------------
Current Liabilities 687.1 703.6
Long-Term Debt 683.6 703.2
Other Long-Term Liabilities 384.7 397.1
Minority Interest 225.8 214.6
----------------- -----------------
Total Liabilities 1,981.2 2,018.5
Shareholders' Equity 939.6 975.0
----------------- -----------------
Total Liabilities and
Shareholders' Equity $ 2,920.8 $ 2,993.5
----------------- -----------------
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