Bausch & Lomb Earnings Per Share Up 32 Percent on Eight Percent Higher Sales.ROCHESTER, N.Y. -- 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 ) --Worldwide revenues grow four percent excluding currency effects --Third-quarter earnings per share were $0.79, compared to $0.60 in 2003 --Company expects full-year 2004 earnings per share between $2.85 and $2.90, growing to between $3.30 and $3.40 in 2005 Bausch & Lomb (NYSE:BOL) today reported worldwide sales of $548.9 million for the quarter ended September 25, 2004, an eight percent increase (or growth of four percent on a constant-currency basis) over the prior-year period. Sales gains were reported in each of the company's geographic business segments and in all product categories except lens care. Earnings per share of $0.79 grew 32 percent as compared to the $0.60 per share reported a year ago. Operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: were 14 percent of sales in the third quarter, compared to 12 percent in the prior year. Lower-than-planned research and development expenditures combined with operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. management more than offset a decline in the company's gross margin ratio. Gross margins were 57.8 percent of sales in the third quarter compared to 58.8 percent in 2003, due to unfavorable sales mix sales mix See product mix. shifts as compared to the prior-year period, as well as charges taken in the current quarter for manufacturing asset and inventory obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. write-downs that will not recur. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. 2004 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 of $1.6 billion increased 11 percent versus 2003, or six percent excluding the effect of currency. Earnings per share of $2.00 grew 39 percent compared to the $1.44 earnings per share before the cumulative effect of a change in accounting principle in the prior year. Including that item, net earnings per share were $1.42 for the first nine months of 2003. The company indicated that it now expects full-year 2004 constant-currency revenue growth of approximately six percent, translating to reported growth of between nine and ten percent, should exchange rates remain where they are today. Earnings per share are now forecast at between $2.85 and $2.90 per share, up from previous expectations of between $2.80 and $2.85 per share. For 2005, the company projects constant-currency revenue growth of between six and seven percent, yielding earnings per share between $3.30 and $3.40. It should be noted that these projections do not include the impact of new accounting guidance contained in Emerging Issues Task Force Issue 04-8, "The Effect of Contingently Convertible Debt on Diluted Earnings per Share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of ". At this time, the company has not reached any conclusion regarding the economic and financial advantages of 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). its outstanding convertible notes so that they would not fall under the provisions of the new standard. Bausch & Lomb estimates that its 2004 full-year results and 2005 guidance would each be reduced between eight and 10 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. should the company decide not to restructure its convertible debt. Bausch & Lomb Chairman and Chief Executive Officer Ronald L. Zarrella said of today's announcement, "Our third-quarter results demonstrate the opportunities within our leaner organization to leverage sales growth into even higher earnings growth on an ongoing basis. Some of the quarter's upside Upside The potential dollar amount by which the market or a stock could rise. Notes: This is basically an educated guess on how high a stock could go in the near future. See also: Bull, Downside was due to lower R&D spending, reflecting the timing of certain in-licensing opportunities as compared to our original projections, and not a change in our commitment to accelerate R&D investment to fuel long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth. Given the leverage opportunities within our current structure, we are confident in our ability to achieve the 2005 earnings targets we set forth today." Revenues by Geography Third-quarter U.S. revenues were $216.9 million, up two percent from the prior year, and represented 40 percent of total company sales. Revenues derived in markets outside the U.S. increased 12 percent over the same period in 2003 and were up five percent on a constant-currency basis. Revenue increases in each of the company's geographic operating segments were as follows:
Constant
Actual Currency
----------------------------------------------------------------------
Americas + 2% + 2%
Europe, Middle East and Africa + 12% + 2%
Asia + 14% + 9%
These operating segment revenue trends were largely the result of the factors discussed below which influence each of the company's product categories. Revenues by Product Category Revenue increases for each of the company's product categories were as follows:
Constant
Actual Currency
----------------------------------------------------------------------
Contact Lenses + 10% + 5%
Lens Care - 2% - 4%
Pharmaceuticals + 10% + 6%
Cataract and Vitreoretinal + 10% + 5%
Refractive + 22% + 16%
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 grew in each geographic region, led by the SofLens66(R) Toric tor·ic adj. Of, relating to, or shaped like a torus or part of a torus. , SofLens(R) One Day, SofLens(R) Multi-Focal, SofLens(R)59 and PureVision(TM) brands, which posted solid double-digit growth in the quarter, benefiting from continued market expansion and share gains. This performance more than offset overall declines in the remainder of the company's contact lens portfolio. Constant-currency lens care sales declined in both the Americas and Europe regions, more than offsetting growth in Asia. As expected, Americas region revenue declines reflected the timing of customer orders around the company's annual plant shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down that essentially shifted sales from the third quarter into the second. Additionally, throughout the third quarter several large customers systematically reduced orders for earlier generation multi-purpose solution products in anticipation of the launch of ReNu(R) with MoistureLoc(TM), which began late in September and continued into October. Constant-currency pharmaceuticals revenues increased in the Americas and Asia regions, and were flat to the prior year in Europe. The company's lines of 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. nutritional products, including the PreserVision(TM) brand of 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. vitamins, posted strong sales growth in each geographic segment. Double-digit sales gains were also posted in the Americas region by Lotemax(R) and Alrex(R), the company's lines of proprietary ophthalmic drops. Year-over-year European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. continued to be negatively impacted by market disruption Market Disruption A situation where markets cease to function in a regular manner, typically characterized by rapid and large market declines. Market disruptions can result from both physical threats to the stock exchange or a unusual trading (as in a crash). in Germany due to recent pharmaceuticals pricing legislation. Constant-currency 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 vitreoretinal surgery revenues increased in all geographic segments, reflecting higher sales of intraocular lenses Intraocular lens Lens made of silicone or plastic placed within the eye; can be corrective. Mentioned in: Cataract Surgery , disposables and Millennium(TM) microsurgical systems. Growth in revenues from products used in refractive surgery Refractive surgery A surgical procedure that corrects visual defects. Mentioned in: Photorefractive Keratectomy and Laser-Assisted In-Situ Keratomileusis refractive surgery was primarily driven by higher sales of per-procedure cards, upgrades to the Zyoptix(TM) platform for customized 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 and diagnostic equipment. Constant-currency revenue growth of more than 30 percent in the Americas region, combined with strong double-digit gains in Europe, more than offset moderate declines in Asia. Liquidity Highlights Cash and investments at the end of September totaled $662.9 million. Cash flows from operations were $183.4 million in the first nine months of 2004 versus $128.7 million in the prior year, primarily reflecting higher reported earnings and lower payments associated with foreign currency hedging contracts, partially offset by higher tax payments and pension plan funding. Year-to-date capital expenditures were $73.5 million compared to $57.6 million in the prior year. The company generated free cash flow (defined as cash generated before the payment of dividends, the borrowing or repayment of debt, stock repurchases Stock repurchase A firm's repurchase of outstanding shares of its common stock. , the acquisition of businesses and 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. , and divestitures) of $107.1 million in the first nine months of 2004, compared to $79.8 million in the year-ago period. A reconciliation between cash flow and free cash flow follows:
Year-to- Year-to-
Date Date
2004 2003
------------------------------------------------------------ --------
Net change in cash and cash equivalents $100.3 $(6.9)
Net cash used in financing activities 6.1 80.3
Net cash paid for acquisitions of businesses and
other intangible assets 0.7 6.4
-------- --------
Free Cash Flow $107.1 $79.8
-------- --------
The company increased its guidance for full-year 2004 free cash flow to approximately $120 million, up from its previous guidance of approximately $110 million. This reflects expectations for continued improved operating performance offset by higher capital expenditures and tax payments as compared to the prior year. 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 # 272227
The rebroadcast of the conference call will be available starting at 1:30 p.m. ET October 20, 2004 through midnight October 22, 2004. 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 news 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, without limitation, those concerning global and local economic, political and sociological conditions; currency exchange rates; government pricing changes and initiatives with respect to healthcare products; changes in laws and regulations relating to the Company's products and the import and export of such products; product development and rationalization rationalization, in psychology: see defense mechanism. ; enrollment and completion of clinical trials; the ability of the Company to obtain regulatory approvals; the outcome of 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. ; the success of product introductions; the financial well-being of key customers, development partners and suppliers; the successful execution of marketing strategies; the continued successful implementation of the Company's efforts in managing and reducing costs and expenses; the Company's success in the process of management testing and auditor attestation The act of attending the execution of a document and bearing witness to its authenticity, by signing one's name to it to affirm that it is genuine. The certification by a custodian of records that a copy of an original document is a true copy that is demonstrated by his or her of internal controls, as required under the Sarbanes-Oxley Act See SOX. of 2002; the Company's success in introducing and implementing its enterprise-wide information technology initiatives, including the corresponding impact on controls and reporting; continued positive relations with third party financing sources and the risk factors listed from time to time in the Company's SEC filings, including but not limited to the current report on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. , dated June 14, 2002 and the Form 10-Q Form 10-Q See 10-Q. for the quarter ended June 26, 2004. Bausch & Lomb is the eye health company, dedicated to perfecting vision and enhancing life for consumers around the world. 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 and lens care products, and ophthalmic surgical and pharmaceutical products. The Bausch & Lomb name is one of the best known and most respected healthcare brands in the world. Celebrating its 150th anniversary, the Company is headquartered in Rochester, New York This article is about the city of Rochester in Monroe County. For the town in Ulster County, see Rochester, Ulster County, New York. Rochester, once known as The Flour City, and more recently as The Flower City or . Bausch & Lomb's 2003 revenues were $2.0 billion; it employs approximately 11,500 people worldwide and its products are available in more than 100 countries. More information about the Company can be found on the Bausch & Lomb Web site at www.bausch.com. Copyright Bausch & Lomb. (R) and (TM) denote de·note tr.v. de·not·ed, de·not·ing, de·notes 1. To mark; indicate: a frown that denoted increasing impatience. 2. trademarks of Bausch & Lomb Incorporated and its affiliates.
Bausch & Lomb
STATEMENT OF EARNINGS
Quarter Ended Nine Months Ended
------------------- --------------------
September September September September
Dollar Amounts in Millions- 25, 27, 25, 27,
Except Per Share Data 2004 2003 2004 2003
---------------------------- ------- ------- -------- ---------
Net Sales
Americas $ 240.2 $ 234.7 $ 702.7 $ 661.6
Europe 191.9 171.2 594.9 526.9
Asia-Pacific 116.8 102.9 328.1 280.9
------- ------- -------- ---------
548.9 508.8 1,625.7 1,469.4
Costs and Expenses
Cost of products sold 231.4 209.5 679.4 621.5
Selling, administrative
and general 203.3 199.7 637.1 584.2
Research and
development 37.4 38.3 113.7 106.4
------- ------- -------- ---------
472.1 447.5 1,430.2 1,312.1
------- ------- -------- ---------
Operating Earnings 76.8 61.3 195.5 157.3
Other (Income) Expense
Interest and investment
income (2.3) (5.2) (8.5) (10.6)
Interest expense 12.5 13.8 36.1 41.9
(Gain) / Loss from
foreign currency (0.4) 1.8 0.2 5.1
------- ------- -------- ---------
9.8 10.4 27.8 36.4
------- ------- -------- ---------
Earnings Before Income Taxes
and Minority Interest 67.0 50.9 167.7 120.9
Provision for income
taxes 22.4 17.3 56.2 41.1
------- ------- -------- ---------
Earnings Before Minority
Interest 44.6 33.6 111.5 79.8
Minority interest in
subsidiaries 1.3 1.3 3.4 2.7
------- ------- -------- ---------
Earnings Before Cumulative
Effect of Change in
Accounting Principle 43.3 32.3 108.1 77.1
Cumulative Effect of Change in
Accounting Principle, net of
taxes (1) - - - (0.9)
------- ------- -------- ---------
Net Earnings $ 43.3 $ 32.3 $ 108.1 $ 76.2
======= ======= ======== =========
Per Share:
Earnings Before Cumulative
Effect of Change in
Accounting Principle $ 0.79 $ 0.60 $ 2.00 $ 1.44
Cumulative Effect of Change
in Accounting Principle - - - (0.02)
------- ------- -------- ---------
Net Earnings $ 0.79 $ 0.60 $ 2.00 $ 1.42
======= ======= ======== =========
Average Shares Outstanding -
(000s) 54,460 53,379 54,167 53,486
======= ======= ======== =========
(1) Income taxes related to the adoption of SFAS No. 143 in Q1 2003
were $0.5.
SUPPLEMENTAL REVENUE INFORMATION
Net Sales
Contact Lens $ 171.1 $ 154.9 $ 495.3 $ 436.9
Lens Care 128.9 131.2 378.0 363.5
Pharmaceuticals 128.6 116.7 383.7 341.1
Cataract and
Vitreoretinal 85.6 77.5 259.5 238.9
Refractive 34.7 28.5 109.2 89.0
------- ------- -------- ---------
$ 548.9 $ 508.8 $ 1,625.7 $ 1,469.4
======= ======= ======== =========
Bausch & Lomb
BALANCE SHEET
September December
25, 27,
Dollar Amounts in Millions 2004 2003
-------------------------- --------- ---------
Assets
Cash and Short-term Investments $ 662.9 $ 562.6
Trade Receivables, Net 484.0 476.3
Inventories, Net 204.2 207.3
Other Current Assets 150.5 175.2
--------- ---------
Current Assets 1,501.6 1,421.4
Properties, Net 549.9 548.1
Goodwill and Intangible Assets 903.2 929.6
Other Assets 114.4 107.3
--------- ---------
Total Assets $ 3,069.1 $ 3,006.4
========= =========
Liabilities and Shareholders' Equity
Short-Term Debt $ 296.9 $ 195.0
Other Current Liabilities 676.8 681.4
--------- ---------
Current Liabilities 973.7 876.4
Long-Term Debt 543.7 652.0
Other Long-Term Liabilities 228.7 259.1
Minority Interest 14.3 15.5
--------- ---------
Total Liabilities 1,760.4 1,803.0
Shareholders' Equity 1,308.7 1,203.4
--------- ---------
Total Liabilities and Shareholders' Equity $ 3,069.1 $ 3,006.4
========= =========
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion