Bausch & Lomb Reports Solid First Quarter.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 ): --Earnings Per Share Up 47 Percent on Nine Percent Sales Gain --Company Raises 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. Guidance Five Cents to $3.45 Bausch & Lomb (NYSE:BOL) today released results for the first quarter ended March 26, 2005. Total reported sales of $554.3 million increased nine percent over the $510.3 million reported in the first quarter of 2004, or six percent on a constant-currency basis. The Company's lens care category led sales growth, increasing 13 percent in the quarter (11 percent in constant currency), primarily reflecting the timing of a significant order from a major U.S. retail customer. First-quarter earnings per share rose 47 percent to $0.63, compared to $0.43 a year ago, reflecting a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. sales mix sales mix See product mix. due to the strong lens care performance, partially offset by increased investment in research and development, and higher selling, general and administrative expenses. Gross margins increased to 58.1 percent of sales, compared to 56.8 percent in 2004, reflecting favorable sales mix and manufacturing efficiencies, somewhat offset by negative currency effects. Selling, general and administrative expenses of $222.5 million increased five percent from 2004, while research and development expense of $39.2 million increased 13 percent. "This was a solid first quarter," said Bausch & Lomb Chairman and Chief Executive Officer Ronald L. Zarrella. "Strong overall operating performance generated about three cents of earnings 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 compared to our expectations. That was augmented by the earnings impact from higher-than-anticipated lens care sales. While the majority of the lens care upside was associated with the timing of a major customer promotion that shifted sales from the second quarter to the first, we believe some of it was incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. to our previous expectations. As a result, we have increased full-year EPS guidance from $3.40 to $3.45." Revenue Trends First-quarter U.S. revenues of $212.3 million increased nine percent from the prior year, and represented 38 percent of total Company sales. Revenues derived in markets outside the U.S. increased eight percent over the same period in 2004, and were up four percent on a constant-currency basis. Revenue trends for each of the Company's geographic operating segments were: Constant Unaudited Reported Currency ------------------------------------------------------------ --------- Americas + 9% + 9% Europe, Middle East and Africa + 7% + 3% Asia + 9% + 7% Reported sales 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. reflected gains for contact lenses contact lenses contact npl → verres mpl de contact contact lenses contact npl → Kontaktlinsen pl contact lenses npl , lens care products, pharmaceuticals, and 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 products in each geographic region, which more than offset declines in sales of refractive surgery Refractive surgery A surgical procedure that corrects visual defects. Mentioned in: Photorefractive Keratectomy and Laser-Assisted In-Situ Keratomileusis refractive surgery products. Revenue trends by product category were: Constant Unaudited Reported Currency ------------------------------------------------------------ --------- Contact Lenses + 9% + 6% Lens Care + 13% + 11% Pharmaceuticals + 13% + 10% Cataract and Vitreoretinal + 6% + 3% Refractive - 12% - 14% 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. sales growth was attributable to the Company's lines of soft contact lenses, led by double-digit gains for Bausch & Lomb's SofLens(R) Toric tor·ic adj. Of, relating to, or shaped like a torus or part of a torus. , SofLens Multi-Focal, PureVision(TM), SofLens One Day and SofLens59 lines. Lens care category growth mainly reflected higher sales of multi-purpose solutions, which grew in excess of 20 percent. Fueling that increase were sales associated with the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. U.S. retail customer's promotion; market share gains by ReNu(R) with MoistureLoc(TM) following its late 2004 launch; and incremental sales associated with the launch of ReNu MultiPlus(R) in Japan. Pharmaceuticals category growth primarily reflected incremental sales from the U.S. launch of Zylet(TM) combination 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 and continued gains by the Company's lines 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. nutritional products in each geographic segment. Overall gains in European pharmaceutical revenues also reflected higher sales of dry eye and anti-inflammatory products. Cataract and vitreoretinal growth was led by the Company's lines of intraocular lenses Intraocular lens Lens made of silicone or plastic placed within the eye; can be corrective. Mentioned in: Cataract Surgery (IOLs) and insertion insertion n. the addition of language at a place within an existing typed or written document, which is always suspect unless initialled by all parties. systems, and phacoemulsification phacoemulsification /phaco·emul·si·fi·ca·tion/ (-e-mul?si-fi-ka´shun) a method of cataract extraction in which the lens is fragmented by ultrasonic vibrations and simultaneously irrigated and aspirated. products, which more than offset declines in viscoelastics. Constant-currency IOL IOL Intraocular lens, see there sales growth of six percent reflected strong double-digit gains for Bausch & Lomb's SofPort(TM) and Akreos(TM) lines of foldable IOLs. Refractive surgery sales declines were attributed to lower laser equipment sales in the Americas and Europe regions. Prior-year results for the Americas included revenues associated with initial placements and upgrades to Bausch & Lomb's Zyoptix(TM) system 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, which had received U.S. regulatory clearance late in 2003. Non-U.S. revenues in the prior-year period had included sales associated with the launch of the Bausch & Lomb Technolas(R) z100 laser. Liquidity Highlights and Trends Cash and investments totaled $483.0 million at the end of the first quarter, reflecting a total cash outflow of $18.8 million since the end of 2004. Cash flows from operating activities totaled $13.2 million in the quarter, compared to $19.0 million a year ago. Higher earnings and lower tax payments were more than offset by the impact of higher inventories and the timing of cash collections on accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying . Capital expenditures totaled $14.9 million in the 2005 first quarter, compared to $18.9 million in 2004. Bausch & Lomb Senior Vice President and Chief Financial Officer Stephen C. McCluski commented, "In the first quarter, our balance sheet and liquidity positions remained very strong, and our financial flexibility was enhanced by Standard & Poor's upgrade to our credit rating and by Fitch Ratings' investment grade assessment of our debt. Given our performance to date, we continue to project full-year cash flows from operating activities of approximately $270 million and 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. of approximately $120 million." Expectations for Remainder of 2005 Bausch & Lomb continues to project full-year constant-currency sales growth between six and seven percent. At current exchange rates, reported growth is expected to be approximately two percentage points higher. The Company also continues to expect full-year 2005 gross margin improvement as compared to 2004, as well as declines in SG&A spending as a percentage of sales, and R&D expenses growing at a faster rate than sales. The foregoing projections do not include the effect of any potential future decision to repatriate repatriate To bring home assets that are currently held in a foreign country. Domestic corporations are frequently taxed on the profits that they repatriate, a factor inducing the firms to leave overseas the profits earned there. foreign earnings for purposes consistent with the American Jobs Creation Act of 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)
News media is invited to listen only on this call.
Call-in Number: 913.981.5507
Rebroadcast Number: 719.457.0820
Confirmation #921349
The rebroadcast of the conference call will be available starting at 1:30 p.m. ET April 19, 2005 through midnight April 23, 2005. 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, and the effect on economic, commerce, social and political systems caused by natural disasters (such as, without limitation, earthquakes, hurricanes/typhoons, tornadoes and tsunamis), 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 ability of the Company to launch products within planned timeframes, 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 introducing and implementing its enterprise-wide information technology initiatives, including the corresponding impact on internal controls and reporting, the Company's success in the process of management testing, including the evaluation of results, 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 continued successful execution of the Company's profitability improvement plans, 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 25, 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 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. Founded in 1853, 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 2004 revenues were $2.2 billion; it employs approximately 12,400 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.
Bausch & Lomb
STATEMENTS OF EARNINGS
Three Months Ended
-----------------------
March 26, March 27,
Dollar Amounts in Millions- 2005 2004
Except Per Share Data (Unaudited) (Unaudited)
---------------------------------------------- ----------- -----------
Net Sales
Americas $ 235.1 $ 215.0
Europe 216.1 201.1
Asia-Pacific 103.1 94.2
----------- -----------
554.3 510.3
Costs and Expenses
Cost of products sold 232.0 220.4
Selling, administrative and general 222.6 211.8
Research and development 39.2 34.6
----------- -----------
493.8 466.8
----------- -----------
Operating Earnings 60.5 43.5
Other (Income) Expense
Interest and investment income (3.9) (4.0)
Interest expense 10.9 11.8
(Gain) / Loss from foreign currency - (1.3)
----------- -----------
7.0 6.5
----------- -----------
Earnings Before Income Taxes and Minority
Interest 53.5 37.0
Provision for income taxes 17.7 12.4
----------- -----------
Earnings Before Minority Interest 35.8 24.6
Minority interest in subsidiaries 1.3 1.1
----------- -----------
Net Earnings $ 34.5 $ 23.5
=========== ===========
Net Earnings Per Share $ 0.63 $ 0.43
=========== ===========
Average Shares Outstanding - (000s) 55,220 54,566
=========== ===========
SUPPLEMENTAL REVENUE INFORMATION
Net Sales
Contact Lens $ 171.0 $ 157.1
Lens Care 129.4 114.2
Pharmaceuticals 130.3 115.7
Cataract and Vitreoretinal 89.5 84.4
Refractive 34.1 38.9
----------- -----------
$ 554.3 $ 510.3
=========== ===========
Bausch & Lomb
BALANCE SHEETS
March December
26, 25,
2005 2004
Dollar Amounts in Millions (Unaudited)
---------------------------------------------- ------------ ---------
Assets
Cash and Short-term Investments $ 483.0 $ 501.8
Trade Receivables, Net 504.0 511.4
Inventories, Net 219.8 204.4
Other Current Assets 176.6 162.9
------------ ---------
Current Assets 1,383.4 1,380.5
Properties, Net 573.1 580.9
Goodwill and Intangible Assets 951.8 940.6
Other Assets 117.6 120.1
------------ ---------
Total Assets $ 3,025.9 $ 3,022.1
============ =========
Liabilities and Shareholders' Equity
Short-Term Debt $ 100.9 $ 100.8
Other Current Liabilities 693.3 731.7
------------ ---------
Current Liabilities 794.2 832.5
Long-Term Debt 542.0 543.3
Other Long-Term Liabilities 199.6 203.9
Minority Interest 16.7 15.5
------------ ---------
Total Liabilities 1,552.5 1,595.2
Shareholders' Equity 1,473.4 1,426.9
------------ ---------
Total Liabilities and Shareholders'
Equity $ 3,025.9 $ 3,022.1
============ =========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion