Bausch & Lomb First-Quarter Earnings Per Share Rise 39 Percent on 14 Percent Higher Revenues.Business Editors ROCHESTER, N.Y.--(BUSINESS WIRE)--April 21, 2004 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 ): -- Sales grow six percent excluding currency benefits -- First-quarter earnings per share of $0.43 compare to $0.31 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 in 2003 -- Company raises full-year earnings per share guidance by $0.10 to $2.70 to $2.75 Bausch & Lomb (NYSE:BOL) today reported worldwide sales of $510.3 million for its first quarter ended March 27, 2004, an increase of 14 percent (or six percent on a constant-currency basis) over the $448.0 million reported in the first quarter of 2003. Constant-currency sales growth was reported in the Company's 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. , pharmaceuticals, refractive surgery Refractive surgery A surgical procedure that corrects visual defects. Mentioned in: Photorefractive Keratectomy and Laser-Assisted In-Situ Keratomileusis refractive surgery and lens care categories, with a slight decline reported 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. products. Net earnings per share were $0.43 in the first quarter of 2004, compared to earnings per share from continuing operations of $0.31 in 2003 and net earnings per share of $0.29, which reflected a $0.02 per share cumulative impact from adopting a new accounting principle. Bausch & Lomb Chairman and Chief Executive Officer Ronald L. Zarrella said, "Our first-quarter results were solid, with constant-currency sales growth in line with, and operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: somewhat above, our original projections. These operational factors generated about half the earnings per share 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 as compared to our previous guidance, with the rest coming from lower-than-anticipated net financing expense." Zarrella continued, "We remain comfortable with our projections for full-year 2004 constant-currency revenue growth in the mid-single digits and expect full-year operating margins above 12 percent, reflecting leverage from favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. mix shifts and continuing benefits from our profitability improvement programs. Combined with the results reported today, those trends should result in earnings per share in the range of $2.70 to $2.75 for the year, assuming currency rates remain relatively consistent with current levels." Revenues by Geography First-quarter U.S. revenues of $194.4 million represented 38 percent of consolidated sales, and increased seven percent compared to the prior year. Revenues in markets outside the U.S. increased 18 percent over the same period in 2003 and were up five percent on a constant-currency basis. Revenue increases for the Company's geographic operating segments were as follows:
Constant
Actual Currency
----------------------------------------------------------------------
Americas + 8% + 7%
Europe, Middle East and Africa + 18% + 2%
Asia + 20% + 10%
These operating segment revenue trends were largely the result of the factors discussed below which influenced the Company's product categories. Revenues by Product Category Revenue comparisons to the first quarter of 2003 for Bausch & Lomb's product categories were as follows:
Constant
Actual Currency
----------------------------------------------------------------------
Contact Lenses + 18% + 8%
Lens Care + 7% + 2%
Pharmaceuticals + 17% + 8%
Cataract and Vitreoretinal + 7% - 1%
Refractive + 29% + 22%
Contact lens sales rose in each geographic segment in the first quarter, mainly due to the Company's core contact lens offerings, which grew close to 25 percent. The SofLens38 line of planned replacement and disposable disposable Nursing adjective Referring to that which is discarded or disposed of noun An item used in health care-related Pt contact which is discarded after use–eg masks, gloves, gowns, needles, paper products, syringes, wipes. See Biohazardous waste. contact lenses contact lenses contact npl → verres mpl de contact contact lenses contact npl → Kontaktlinsen pl contact lenses npl also registered mid-single-digit gains, helping to offset declines in the remainder of the contact lens portfolio. Constant-currency lens care revenue growth was primarily attributable to higher sales of multipurpose mul·ti·pur·pose adj. Designed or used for several purposes: a multipurpose room; multipurpose software. multipurpose Adjective lens care solutions in the Americas, which offset essentially flat overall performance in Europe and Asia. In the pharmaceuticals category, constant-currency gains were registered in the Americas and Asia regions, while the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. business was essentially flat with the prior year, reflecting the negative impact of pricing legislation in Germany. Overall growth was mainly due to the Company's lines of nutritional supplements Nutritional Supplements Definition Nutritional supplements include vitamins, minerals, herbs, meal supplements, sports nutrition products, natural food supplements, and other related products used to boost the nutritional content of the diet. , which posted gains in excess of 30 percent, led by PreserVision 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. Constant-currency revenue gains for 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 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. products in Europe were more than offset by declines in the Americas and Asia. Sales gains were noted for the SofPort and Akreos lines of foldable IOLs and for 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:
Refractive surgery sales grew in each geographic segment, reflecting higher revenues from equipment placements, Zyoptix system upgrades and per-procedure cards. Particularly strong performance was registered in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , where revenues grew close to 40 percent, following the late-2003 approval of the Zyoptix system for customized surgery. Liquidity Highlights and Trends Cash and investments totaled $560.7 million at the end of March, representing a total cash outflow of $1.9 million in the first quarter. Cash flows from operating activities were $19.0 million in 2004 compared to $30.1 million in 2003. As anticipated, 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) was lower than the prior year, and was an outflow of $0.6 million, compared to an inflow in·flow n. 1. The act or process of flowing in or into: an inflow of water; an inflow of information. 2. of $15.0 million in 2003. A reconciliation between GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). cash flow and free cash flow follows:
First First
Quarter Quarter
2004 2003
----------------------------------------------------------------------
Net Change in Cash and Cash Equivalents $(1.9)$(33.9)
Net cash used in financing activities 1.3 42.7
Net cash paid for acquisitions of businesses and other
intangible assets - 6.2
---------------
Free Cash Flow $(0.6) $15.0
---------------
The decrease in free cash flow primarily reflected the timing of payments to vendors as well as higher tax payments and capital expenditures compared to the prior year. Bausch & Lomb continues to project it will generate full-year 2004 free cash flow of approximately $110 million. 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 #302736
The rebroadcast of the conference call will be available from
1:30 p.m. ET on April 21, 2004 through midnight on
April 26, 2004.
Additionally, the investor call will be broadcast live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the . 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 successful introduction and implementation of the Company's enterprise-wide information technology initiatives, including the corresponding impact on controls and reporting; 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 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-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 27, 2003. 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 and lens care products, and 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 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. Trademarks of Bausch & Lomb Incorporated and its affiliates are italicized.
Bausch & Lomb
STATEMENT OF EARNINGS
Three Months Ended
------------------------------
Dollar Amounts in Millions- March 27, March 29,
Except Per Share Data 2004 2003
--------------------------------------- -------------- --------------
Net Sales
Americas $ 215.0 $ 199.5
Europe 201.1 169.8
Asia-Pacific 94.2 78.7
-------------- --------------
510.3 448.0
Costs and Expenses
Cost of products sold 220.4 198.2
Selling, administrative and general 211.8 180.2
Research and development 34.6 29.8
-------------- --------------
466.8 408.2
-------------- --------------
Operating Earnings 43.5 39.8
Other (Income) Expense
Interest and investment income (4.0) (1.7)
Interest expense 11.8 14.5
(Gain) / Loss from foreign currency (1.3) 1.7
-------------- --------------
6.5 14.5
-------------- --------------
Earnings Before Income Taxes and
Minority Interest 37.0 25.3
Provision for income taxes 12.4 8.6
-------------- --------------
Earnings Before Minority Interest 24.6 16.7
Minority interest in subsidiaries 1.1 0.2
-------------- --------------
Earnings from Continuing Operations 23.5 16.5
Cumulative Effect of Change in
Accounting Principle, net of taxes (1) - (0.9)
-------------- --------------
Net Earnings $ 23.5 $ 15.6
============== ==============
Per Share:
Earnings from Continuing Operations $ 0.43 $ 0.31
Cumulative Effect of Change in
Accounting Principle, net of taxes - (0.02)
-------------- --------------
Net Earnings $ 0.43 $ 0.29
============== ==============
Average Shares Outstanding - (000s) 54,499 53,830
============== ==============
(1) Income taxes related to the adoption of SFAS No. 143 in Q1 2003
were $0.5.
SUPPLEMENTAL REVENUE INFORMATION
Net Sales
Contact Lens $ 157.1 $ 133.4
Lens Care 114.2 106.5
Pharmaceuticals 115.7 99.0
Cataract and Vitreoretinal 84.4 79.1
Refractive 38.9 30.0
-------------- --------------
$ 510.3 $ 448.0
============== ==============
Bausch & Lomb
BALANCE SHEET
March 27, December 27,
Dollar Amounts in Millions 2004 2003
---------------------------------------- ------------- -------------
Assets
Cash and Short-term Investments $ 560.7 $ 562.6
Trade Receivables, Net 442.1 476.3
Inventories, Net 214.9 207.3
Other Current Assets 179.2 175.2
-------------- --------------
Current Assets 1,396.9 1,421.4
Properties, Net 548.7 548.1
Goodwill and Intangible Assets 923.0 929.6
Other Assets 120.1 107.3
-------------- --------------
Total Assets $ 2,988.7 $ 3,006.4
-------------- --------------
Liabilities and Shareholders' Equity
Short-Term Debt $ 196.3 $ 195.0
Other Current Liabilities 643.8 681.4
-------------- --------------
Current Liabilities 840.1 876.4
Long-Term Debt 648.5 652.0
Other Long-Term Liabilities 258.2 259.1
Minority Interest 12.5 15.5
-------------- --------------
Total Liabilities 1,759.3 1,803.0
Shareholders' Equity 1,229.4 1,203.4
-------------- --------------
Total Liabilities and Shareholders'
Equity $ 2,988.7 $ 3,006.4
-------------- --------------
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