Bausch & Lomb Announces Fourth-Quarter 2001 Results.Business Editors ROCHESTER Rochester (rŏch`ĕstər, –ĭstər). 1 City (1990 pop. 70,745), seat of Olmsted co., SE Minn.; inc. 1858. , N.Y.--(BUSINESS WIRE)--Jan. 24, 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 ): - Fourth-quarter revenues of $452.0 million decrease 3% from prior year - Comparable basis 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 of $0.38 sequentially improved from third quarter - Company provides 2002 outlook - Clinical studies for third indication for Envision TD(TM)technology underway Bausch & Lomb (NYSE:BOL) announced today the results of its operations for the fourth quarter, which ended December December: see month. 29, 2001. 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 $452.0 million, down 3% from the $465.1 million reported in the fourth quarter of 2000. In constant dollars (excluding the impact of changes in foreign currency exchange rates), revenues declined 1% from the prior year. Full-year 2001 reported revenues were $1,711.9 million, down 3% from the $1,772.4 million reported in 2000. On a constant dollar basis, full-year revenues decreased 1%. For the fourth quarter the company reported a net loss of $8.0 million, or $0.15 per share, compared to a net loss of $5.0 million, or $0.09 per share, in the prior year's fourth quarter. Full-year 2001 reported net earnings were $21.2 million, or $0.39 per share, compared to $83.4 million, or $1.52 per share, in 2000. Reported earnings from continuing operations were $13.1 million, or $0.24 per share, in the fourth quarter of 2001 compared to a net loss from continuing operations of $6.4 million, or $0.12 per share, in the prior year. For the full year, reported earnings from continuing operations were $42.0 million, or $0.78 per share, as compared to $82.0 million, or $1.49 per share, in the prior year. 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 is presented below.
Dollars in Millions,
Except Per Share Data Fourth Quarter 2001 Full Year 2001
------------------- ----------------
$ Per Share $ Per Share
------- --------- ------ ---------
Reported net (loss) earnings $(8.0) $(0.15) $21.2 $0.39
Adjustment to gain on disposal
of discontinued operations 21.1 0.39 21.1 0.39
Gain on adoption of SFAS 133 - - (0.3) -
----- ------ ----- -----
Reported earnings
from continuing operations $13.1 $0.24 $42.0 $0.78
CEO hiring costs 4.6 0.09 4.6 0.09
Restructuring charges
and asset write-offs 2.8 0.05 13.8 0.26
Gain on sale of stock investment - - (12.6) (0.24)
Severance of former CEO - - 1.8 0.03
----- ------ ------ -----
Comparable basis net earnings
from continuing operations $20.5 $0.38 $49.6 $0.92
----- ------ ------ -----
Dollars in Millions,
Except Per Share Data Fourth Quarter 2000 Full Year 2000
------------------- ----------------
$ Per Share $ Per Share
------ --------- ------ ---------
Reported net (loss) earnings $(5.0) $(0.09) $83.4 $1.52
Extraordinary gain
on retirement of debt (1.4) (0.03) (1.4) (0.03)
----- ------ ------ ------
Reported earnings
from continuing operations $(6.4) $(0.12) $82.0 $1.49
Restructuring charges
and asset write-offs 23.1 0.43 21.7 0.40
Litigation settlements
and failed acquisition costs 9.6 0.18 (0.2) -
Purchase accounting adjustments 1.3 0.03 2.0 0.04
In-process
research and development - - 23.8 0.43
----- ------ ------ ------
Comparable basis net earnings
from continuing operations $27.6 $0.52 $129.3 $2.36
----- ------ ------ ------
Brief explanations of the items that impact the fourth quarters of both periods follow. The company has reached agreement with the buyer of its former eyewear eye·wear n. 1. Eyeglasses, goggles, or other objects worn over the eyes. 2. Fashionable eyeglasses. segment on certain purchase price adjustments. To reflect this settlement, an adjustment of $21.1 million after taxes to the previously reported gain on divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). was recorded in discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. in the fourth quarter of 2001. Additionally, certain costs were incurred in the fourth quarter of 2001 to secure the hiring of the company's new chief executive officer, Ronald L. Zarrella. These costs mainly represent Bausch & Lomb's replacing certain benefits and incentives, primarily retirement benefits, forfeited for·feit n. 1. Something surrendered or subject to surrender as punishment for a crime, an offense, an error, or a breach of contract. 2. Games a. by Mr. Zarrella upon leaving his former employer. Such costs totaled $7.1 million before taxes. Fourth-quarter 2001 results included charges of $8.3 million before taxes related to the first phase of a previously announced 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 designed to reduce ongoing operating costs operating costs npl → gastos mpl operacionales . These charges were partially offset by the reversal of a portion of previously recorded restructuring reserves totaling $4.0 million before taxes, generating a net after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. charge of $0.05 per share. Fourth-quarter 2000 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 were associated with the implementation of the company's new organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. , offset by a reversal of prior reserves. The prior year quarter's results also included a previously disclosed extraordinary gain on retirement of debt, 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. settlement charges, and purchase accounting adjustments related to the write-up Write-Up An increase made to the book value of an asset because it is undervalued compared to market values. Notes: A write-up will increase a company's accounting book value without any expenditures. of inventories associated with newly acquired businesses. Fourth-Quarter Revenues by Geographic Location On a geographic segment basis, fourth-quarter revenues in the company's Americas A·mer·i·cas , the See America. region declined 1% from the prior year's fourth quarter, and were flat in constant dollars. Revenues in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). grew 5% on a reported basis and 6% in constant dollars. In the
company's Asia region, revenues declined 17% on a reported basis,
and were down 10% when adjusted for currency changes, primarily
attributable to Japan. In the U.S., revenues declined 6% from the same
period last year, and constituted 41% of total company sales. Outside
the U.S., revenues declined 1%, but increased 3% in constant dollars.
Fourth-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 were down 4% from the same period in 2000, and were flat in constant dollars. 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. lenses) continued to post strong double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. growth over the prior year. For the first time, these gains offset declining sales for the company's older product offerings. Lens care revenues declined 16%, and 14% in constant dollars, driven by further retail trade inventory reductions in the U.S. during the quarter and, to a lesser extent, economic conditions in Japan. The U.S. retail inventory declines resulted from the trade's continuing efforts to operate more efficiently in response to ongoing economic pressure. Pharmaceuticals revenues increased 39% over last year, and grew 40% in constant dollars, benefiting primarily from increased sales of proprietary and multisource products in the U.S. Prior-year reported revenues had been negatively impacted by severe competition for several of the company's lines of multisource products, and by a change in the method of estimating pricing allowances in that business. Revenues from products for 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. declined 5%, and were down 3% in constant dollars. These results were largely driven by the Americas region. Product supply issues that hampered recent results in the business are improving, and sequential growth was experienced versus the third quarter. Nevertheless, the company has yet to regain market share lost as a result of these earlier issues. Refractive surgery Refractive surgery A surgical procedure that corrects visual defects. Mentioned in: Photorefractive Keratectomy and Laser-Assisted In-Situ Keratomileusis refractive surgery revenues declined 18% in both actual and constant dollars from the prior year, with the Americas region again driving the decline. Continued softness in the economy further delayed capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. by providers and resulted in consumers postponing elective surgery elective surgery Surgery Any operation that can be performed with advanced planning–eg, cholecystectomy, hernia repair, colonic resection, coronary artery bypass . Outside the Americas region, sales of refractive surgery products continued to post solid growth in Europe, and were essentially flat with the prior year in Asia. The company's revenue growth outside the U.S. continues to reflect increasing equipment and procedure card sales for the Zyoptix(TM) system for personalized per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. refractive refractive capacity to refract light. refractive error a difference between the focal length of the cornea and lens, and the length of the eye, resulting in myopia or hyperopia. procedures. The company remains pleased with the market demand for the improved surgical outcomes available with this technology. "The issues that drove 2001 performance can be addressed and we have begun that process," commented Zarrella. "Continued emphasis on reducing costs, improving execution through a more disciplined business process, and focusing on new technology products will all enable us to improve beyond the results we're we're Contraction of we are. we're we are reporting today." Company Provides 2002 Outlook Bausch & Lomb provided investors with a general outlook for full-year 2002 comparable-basis results, indicating that it anticipates revenue growth in the mid-to-upper single digits. Expense savings from planned restructuring efforts are expected to yield operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of approximately 9%. Net financing expense is expected to increase, as lower interest rates will generate less investment income as compared to 2001. As a result, earnings per share are expected to be at or slightly above the current First Call consensus estimate. This outlook does not consider the impact of the company's adoption of Statement of Financial Accounting Standards 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. , in 2002. The company anticipates this adoption will further increase comparable-basis earnings per share by approximately $0.35. Zarrella said, "Although we currently anticipate reporting earnings per share at or slightly above the current consensus estimate, we are committed to finding ways to improve upon this outlook. Over the next several quarters, I believe we can make additional progress in reducing structural costs and unlocking the earnings potential of our base businesses." Company Begins Testing Envision TD Technology for Use Against 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. Bausch & Lomb also said today that it has begun Phase II clinical studies for the use of its Envision TD targeted drug delivery Scientists began to study targeted drug delivery, because the traditional drug delivery system had many disadvantages, such as high toxic effect and high minimum effective dose. In traditional drug delivery system, after the patient takes some drugs, the drugs will be all over his body technology in the treatment of both the classic and occult forms of Age-Related Macular Degeneration. Assuming positive results from these studies, the company expects to move into Phase III Noun 1. phase III - a large clinical trial of a treatment or drug that in phase I and phase II has been shown to be efficacious with tolerable side effects; after successful conclusion of these clinical trials it will receive formal approval from the FDA trials by year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2002. Providing an update on its ongoing clinical trials of the technology for posterior posterior /pos·ter·i·or/ (pos-ter´e-er) directed toward or situated at the back; opposite of anterior. pos·te·ri·or adj. 1. Located behind a part or toward the rear of a structure. uveitis uveitis Inflammation of the uvea, the middle coat of the eyeball. Anterior uveitis, involving the iris or ciliary body (containing the muscle that adjusts the lens) or both, can lead to glaucoma and blindness. and 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 , the company indicated it continues to target receiving approval for its first indication around the end of 2003, with commercialization in 2004. 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 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. 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 no.461878
The rebroadcast of the conference call will be
available starting at 1:30 p.m. ET January
24, 2002 through midnight January 28, 2002.
Additionally, the investor call will be broadcast live over the
Internet. It can be accessed from the Investor Relations 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 for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. 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, testing, approval and introduction, the performance and financial well-being of key customers and other third parties, the successful execution of marketing strategies, the continued successful implementation of its efforts in managing and reducing costs and expenses, as well as the risk factors listed from time to time in the company's SEC filings, including but not limited to the Form 10Q for the quarter ended September September: see month. 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 Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. , 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
STATEMENT OF EARNINGS
Quarter Ended Twelve Months Ended
--------------------- -----------------------
Dollar Amounts
in Millions- Dec. 29, Dec. 30, Dec. 29, Dec. 30,
Except Per
Share Data 2001 2000 2001 2000
---------------------- -------- --------- ---------- --------
Net Sales
Americas $ 210.0 $ 212.3 $ 805.0 $ 926.0
Europe 153.6 146.3 583.8 474.9
Asia-Pacific 88.4 106.5 323.1 371.5
-------- --------- ---------- ---------
452.0 465.1 1,711.9 1,772.4
Costs and Expenses
Cost of products
sold (1) 200.2 199.3 763.7 746.9
Selling,
administrative
and general (2) 185.5 170.7 718.3 681.2
Research and
development 31.4 40.0 122.0 121.5
Purchased in
process research
and development (3) - - - 23.8
Other expense - 15.0 - 23.4
Restructuring
charges (4) 4.3 35.8 21.2 33.7
-------- --------- ---------- ---------
421.4 460.8 1,625.2 1,630.5
-------- --------- ---------- ---------
Operating Earnings 30.6 4.3 86.7 141.9
Other (Income)
Expense
Interest and
investment
income (5) (4.7) (9.4) (48.4) (52.3)
Interest expense 10.6 17.6 58.3 68.5
Gain from foreign
currency (0.6) (1.1) (8.2) (11.4)
Other income - - - (23.6)
-------- --------- ---------- ---------
5.3 7.1 1.7 (18.8)
-------- --------- ---------- ---------
Earnings (Loss)
Before Income Taxes
and Minority
Interest 25.3 (2.8) 85.0 160.7
Provision for
income taxes 8.9 (1.0) 28.7 65.5
-------- --------- ---------- ---------
Earnings (Loss)
Before Minority
Interest 16.4 (1.8) 56.3 95.2
Minority interest
in subsidiaries 3.3 4.6 14.3 13.2
-------- --------- ---------- ---------
Earnings (Loss)
from Continuing
Operations 13.1 (6.4) 42.0 82.0
Gain from
Extinguishment of
Debt, net of
taxes (6) - 1.4 - 1.4
Gain from Change in
Accounting Principle,
net of taxes (7) - - 0.3 -
Adjustment to Gain on
Disposal of
Discontinued
Operations,
net of taxes (8) (21.1) - (21.1) -
-------- --------- ---------- ---------
Net (Loss) Earnings $ (8.0) $ (5.0) $ 21.2 $ 83.4
======== ========= ========== =========
Per Share:
Earnings (Loss)
from Continuing
Operations $ 0.24 $ (0.12) $ 0.78 $ 1.49
Gain from
Extinguishment of
Debt, net of taxes - 0.03 - 0.03
Gain from Change in
Accounting Principle,
net of taxes - - - -
Adjustment to Gain on
Disposal of
Discontinued
Operations, net
of taxes (0.39) - (0.39) -
-------- --------- ---------- ---------
Net (Loss) Earnings $ (0.15) $ (0.09) $ 0.39 $ 1.52
======== ========= ========== =========
Average Shares
Outstanding - (000s) 53,720 53,450 53,715 54,724
======== ========= ========== =========
(1) 2000 amounts reflect the impact of higher reported cost of
products sold related to the write-up of acquired inventory
for accounting purposes. Fourth-quarter pre-tax results
include $2.0 ($1.3 after taxes or $0.03 per diluted share) of
such costs. Full-year results include $3.1 ($2.0 after taxes
or $0.04 per diluted share) of such costs.
(2) Fourth-quarter CEO hiring costs reduced 2001 earnings by $7.1
($4.6 after taxes or $0.09 per diluted share). Year to date,
including the severance accrual for the former CEO, 2001
earnings include $9.9 ($6.4 after taxes or $0.12 per diluted
share) of related costs.
(3) Write-off of purchased in process research and development
reduced 2000 net earnings by $23.8 or $0.43 per diluted share.
(4) Restructuring charges reduced fourth-quarter and full-year
2001 net earnings by $2.8 or $0.05 per diluted share and $13.8
or $0.26 per diluted share, respectively. Such charges reduced
fourth-quarter and full-year 2000 net earnings by $23.1 or
$0.43 per diluted share and $21.7 or $0.40 per diluted share,
respectively.
(5) Includes $19.4 income 2001 year to date ($12.6 after taxes or
$0.24) for the sale of Charles River stock.
(6) Income taxes related to the gain on early extinguishment of
debt were $.8 for the twelve months ended December 2000.
(7) Income taxes related to the adoption of SFAS 133 were $.1 for
the twelve months ended 2001.
(8) Income taxes related to the settlement of litigation impacting
the gain on sale of the Eyewear business were $14.1 for the
fourth-quarter 2001.
SUPPLEMENTAL
REVENUE
INFORMATION
Net Sales
Contact Lens $ 123.4 $ 128.9 $ 481.3 $ 501.8
Lens Care 115.8 138.5 437.9 511.9
Pharmaceuticals 95.9 68.8 350.0 282.5
Cataract 81.3 85.4 304.5 309.2
Refractive 35.6 43.5 138.2 167.0
--------- --------- ---------- ---------
--------- --------- ---------- ---------
$ 452.0 $ 465.1 $ 1,711.9 $ 1,772.4
========= ========= ========== =========
BALANCE SHEET
December 29, December 30,
Dollar Amounts in Millions 2001 2000
----------------------------------------- --------- ---------
Assets
Cash and Short-term Investments $ 534.4 $ 660.3
Trade Receivables, Net 380.7 417.2
Other Investments, Available for Sale 41.9 167.4
Inventories, Net 253.4 247.7
Other Current Assets 186.9 232.7
--------- ---------
Current Assets 1,397.3 1,725.3
Properties, Net 543.3 494.8
Intangible Assets, Net 842.2 815.7
Other Investments, Net 4.5 8.6
Other Assets 206.2 194.9
--------- ---------
Total Assets $ 2,993.5 $ 3,239.3
--------- ---------
Liabilities and
Shareholders' Equity
Short-Term Debt $ 123.3 $ 235.2
Other Current Liabilities 580.3 590.3
--------- ---------
Current Liabilities 703.6 825.5
Long-Term Debt 703.2 763.1
Other Long-Term Liabilities 397.1 394.3
Minority Interest 214.6 217.0
--------- ---------
Total Liabilities 2,018.5 2,199.9
Shareholders' Equity 975.0 1,039.4
--------- ---------
Total Liabilities and
Shareholders' Equity $ 2,993.5 $ 3,239.3
--------- ---------
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