Bausch & Lomb Responds to Credit Rating Downgrade by Moody's Investors Service; With Strong Balance Sheet and Cash Position, Company Anticipates No Liquidity Issues.Business Editors ROCHESTER, N.Y.--(BUSINESS WIRE)--March 11, 2002 Company reaffirms full-year operating guidance 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 ) responded today to Moody's Investors Service's downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. of its senior ratings to Ba1 and its short-term rating to Not-Prime based on lagging operating performance. The company emphasized that it faces no liquidity issues and is more than able to satisfy all of its outstanding maturing obligations. Bausch & Lomb also reaffirmed the 2002 operating guidance it provided to investors on its fourth quarter earnings release conference call on January 24, 2002. Specifically, the Company expects to report mid-to-upper single-digit revenue growth for the year. Operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: are expected to be 9% of sales, excluding the impact of the Company's adoption of Statement of Financial Accounting Standards No. 142. Bausch & Lomb Chairman and Chief Executive Officer Ronald L. Zarrella said, "It is disappointing to have Moody's take this action on the basis of past operating performance. We're continuing to move very aggressively to reduce operating and product costs; we have new products in the market that should help to grow our revenues; and our prospects for improving profitability are good." Zarrella continued, "Today's action by Moody's will not alter our focus on improving our performance and reducing costs. We have an operating plan in place that we are confident will lead us to solid earnings improvements quarter after quarter." Bausch & Lomb said it foresees no liquidity issues as a result of the downgrade, given its strong balance sheet and healthy cash flows from operations, and further emphasized that it is not a party to any off-balance-sheet financings Off-Balance-Sheet Financing A way of raising money that does not appear on the balance sheet. Notes: This is unlike loans, debt and equity, which do appear on the balance sheet. . The Company indicated that, as noted in Moody's press release, the downgrade may trigger an 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 of a $200 million partnership transaction that was classified as minority interest on the Company's balance sheet. In the event this occurs, the Company will be required to record a one-time early liquidation premium of approximately $7 million after taxes. Absent this item, the Company indicated that the downgrade will not have a material impact on its net financing costs Net financing cost Also called the cost of carry or, simply carry, the difference between the cost of financing the purchase of an asset and the asset's cash yield. Positive carry means that the yield earned is greater than the financing cost; negative carry means that the for the year. 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 and 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 10Q for the quarter ended September 29, 2001. Bausch & Lomb Incorporated is the preeminent 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 $1.8 billion in 2000, 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 |
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