Cooper Companies Delivers Strong Third Quarter:Revenue And Operating Income Increase 35%; EPS 55 Cents Versus 40 Cents.IRVINE, Calif.--(BW HealthWire)--Aug. 27, 1997--The Cooper Companies, Inc. (NYSE NYSE See: New York Stock Exchange :COO) today reported financial results for the third quarter of fiscal 1997. For the three months ended July 31, 1997, the Company reported net income of $7.2 million, or 55 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. , including 8 cents per share of net tax benefits, up 54% from $4.7 million, or 40 cents per share, in the third quarter of 1996 including net tax benefits of 5 cents per share. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 35% from $5.5 million in the 1996 quarter to $7.4 million in 1997. Revenue increased 35% to $38.9 million. In the first three quarters of fiscal 1997, the Company generated net income of $15.9 million, or $1.28 per share, up 95% from $8.1 million, or 69 cents per share, in the comparable 1996 period. The 1997 results include net tax benefits of 15 cents per share compared with 4 cents per share in the 1996 period. Nine-month operating income increased 58% from $11.2 million in 1996 to $17.8 million in 1997. Nine-month revenue increased 30% to $101.0 million. Commenting on the third quarter's results, A. Thomas Bender, president and chief executive officer, said, "Each of our operating businesses delivered solid revenue growth compared with last year's third quarter. Sales at CooperVision (CVI CVI C (Language) Virtual Instrument CVI Clinical and Vaccine Immunology (journal) CVI Chronic Venous Insufficiency CVI Coastal Vulnerability Index CVI Canaan Valley Institute ), the specialty 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. business, grew 37% for the quarter and are ahead by 28% year to date, driven by strong sales of toric tor·ic adj. Of, relating to, or shaped like a torus or part of a torus. lenses to correct astigmatism astigmatism (əstĭg`mətĭz'əm), type of faulty vision caused by a nonuniform curvature in the refractive surfaces—usually the cornea, less frequently the lens—of the eye. . "Sales at CooperSurgical (CSI CSI Crime Scene Investigator CSI CompuServe, Inc. CSI Commodity Systems, Inc. CSI Commodity Systems Inc. (Boca Raton, FL) CSI Crime Scene Investigation (CBS TV show) CSI Christian Schools International ), the gynecology products business, increased 42% and are up 46% for the nine-month period reflecting the favorable effect of recent acquisitions and internally developed new products. Revenue at Hospital Group of America (HGA HGA High-Gain Antenna HGA Handweavers Guild of America HGA Hammel Green and Abrahamson HGA Hercules Graphics Adapter HGA Homogentisic Acid HGA Honor Guard Academy HGA Holy Guardian Angels (Reading, PA catholic church) ), Cooper's mental health services health services Managed care The benefits covered under a health contract business, grew 29% in the third quarter and is up 26% year to date, with total outpatient visits strongly favorable to last year, and Hampton Hospital's results much improved, now that HGA's own clinical service management is in place." -0-
Business Unit Performance
P&L OPERATING HIGHLIGHTS BY BUSINESS UNIT
Quarter Ended July 31,
($'s in Millions)
Revenue Operating Income
% % %Revenue %Revenue
1997 1996 Inc. 1997 1996 Inc. 1997 1996
CVI $17.8 $13.0 37% $6.2 $5.6 11% 35% 43%
CSI 7.1 5.0 42% 0.9 0.5 81% 12% 10%
HGA 14.0 10.9 29% 1.8 0.8 133% 13% 7%
Subtotal 38.9 28.9 35% 8.9 6.9 30% 23% 24%
HQ expense (1.5) (1.4)
TOTAL $38.9 $28.9 35% $7.4 $5.5 35% 19% 19%
Nine Months Ended July 31,
($'s in Millions)
Revenue Operating Income
% % %Revenue %Revenue
1997 1996 Inc. 1997 1996 Inc. 1997 1996
CVI $44.9 $35.2 28% $16.2 $13.5 20% 36% 38%
CSI 17.7 12.1 46% 1.8 1.1 68% 10% 9%
HGA 38.4 30.6 26% 4.1 1.2 230% 11% 4%
Subtotal 101.0 77.9 30% 22.1 15.8 40% 22% 20%
HQ expense (4.3) (4.6)
TOTAL $101.0 $77.9 30% $17.8 $11.2 58% 18% 14%
CooperVision CooperVision's third quarter reflected continuing successful execution of its strategy to strengthen its position in the specialty contact lens market. New products developed internally since fiscal 1995 have generated more than 25% of CVI's sales in the first nine months of 1997. During the third quarter, CVI introduced a new planned replacement spherical lens spherical lens n. Abbr. sph A lens in which all refracting surfaces are spherical. 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. and Canada. CVI expects to introduce three new specialty products into domestic market segments it does not currently serve in the 1998 fiscal year. Sales of contact lenses contact lenses contact npl → verres mpl de contact contact lenses contact npl → Kontaktlinsen pl contact lenses npl outside North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. have more than doubled year to date. For the nine-month period, sales of toric lenses to correct astigmatism have increased 39%, representing over 50% of CVI's business. The products that CVI most actively markets, Hydrasoft, Preference Toric, Preference and Natural Touch, have grown 42% year to date and together represent nearly 70% of the unit's nine-month sales. CooperSurgical CooperSurgical continued to show strong results as sales grew 42% and operating income rose 81% during the third quarter. These increases reflect the acquisitions of Unimar, Inc. and Marlow Surgical Technologies, Inc., as well as sales increases of the RUMI line of products and sales of internally developed new products. Year to date, CSI sales have increased 46% with operating income ahead 68%. The integration of Marlow Surgical Technologies, Inc., acquired in April, has been completed. Marlow develops and markets surgical products and disposable products for reproductive medicine. Since its acquisition in April, Marlow has contributed approximately $2.4 million in sales. -0-
Hospital Group of America
HOSPITAL GROUP OF AMERICA
SELECTED STATISTICAL INFORMATION
3 Months Ended July 31, 9 Months Ended July 31,
1997 1996 % Chg 1997 1996 % Chg
Licensed inpatient
beds 319(a) 269 19% 319(a) 269 19%
Inpatient admissions 1,616 1,373 18% 4,711 3,847 22%
Total inpatient days 20,392 15,932 28% 55,669 46,279 20%
Average length of
stay (days) 11.6 11.6 0% 11.4 12.2 -7%
Total outpatient
visits 20,930 11,884 76% 54,081 34,476 57%
(a) Midwest Center for Youth and Families opened in April 1997
adding 50-bed capacity.
Revenue at HGA increased 29% for the third quarter and is ahead 26% year to date. Operating income more than doubled during the quarter and more than trebled through nine months. Operating statistics for the quarter reflect increases in both inpatient and outpatient days with average length of stay stabilizing. The growth in outpatient volume contributes to improvement in HGA's operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: as staff and facilities charges are proportionately less than inpatient care inpatient care Managed care Services delivered to a Pt who needs physician care for > 24 hrs in a hospital . Incremental operating margins approach 20% of net revenue. Results at HGA's Hampton Hospital continue to improve as a result of HGA assuming management of its clinical services late in last year's first quarter. In April, HGA opened the Midwest Center for Youth and Families, a 50-bed residential treatment facility in Kouts, Indiana Kouts is a town in Porter County, Indiana. The population was 1,698 at the 2000 census. Geography Kouts is located at (41.315434, -87.027536)GR1. . The Kouts facility, which is currently operating profitability at about 64% of capacity, extends HGA's continuum of care to include inpatient, outpatient, day, educational and residential treatment programs positioning HGA to better compete for managed care business. HGA's management services division, which manages a variety of behavioral health Behavioral health was first used in the 1980's to name the combination of the fields mental health and substance abuse. As an example, an organization serving both mental health and substance abuse clients might refer to its practice as behavioral health or programs for acute care hospitals, has entered into or renewed five contracts with two providers through the first nine months of the fiscal year. In June, MeadowWood Hospital announced plans to establish a psychiatric evaluation psychiatric evaluation The assessment of a person's mental, social, psychologic functionality. See DSM-IV-table multiaxial assessment, Personality testing, Psychiatric history, Psychiatric interview. and treatment program for older adults in collaboration with Christiana Care (formerly known as Medical Center of Delaware). During the third quarter, the Company raised $51.2 million in a public offering of 2.3 million shares of its common stock. The offering was underwritten by Deutsche Morgan Grenfell and PaineWebber Incorporated. As indicated in the prospectus, the Company is using the proceeds to repay outstanding indebtedness. Since the follow-on offering Follow-On Offering An offering of additional shares after a company has had an initial public offering. Notes: This sometimes means the company is strapped for cash. So they need to issue more shares to pay bills or finance a new project. , the Company has repaid approximately $22 million of debt (approximately $12 million of which was repaid in the third quarter) and has called for redemption on September 1, 1997, all $21.9 million principal amount of its 10% Senior Subordinated Secured Notes due 2003. Following these repayments, the Company's debt will be reduced to approximately $9.1 million. As previously announced, the Company expects to complete a $50 million secured revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility in its fourth fiscal quarter. The facility would have a term of five years, with borrowings having interest rates ranging from 0.5% to 2.25% over the London Interbank Offered Rates London Interbank Offered Rate A short-term interest rate often quoted as a 1,3,6-month rate for U.S.dollars. (LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). ) depending on certain financial ratios. The thirty day LIBOR was 5 5/8% on August 25, 1997. The Company intends to use this debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay to fund acquisitions and for general corporate purposes. -0- Statements in this press release that are not based on historical fact may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements may be identified by the use of forward-looking terminology such as "may," "will," "expect," "estimate," "anticipate," "continue" or similar terms. Certain statements in the Company's periodic and other filings with the Securities and Exchange Commission, including all the statements under the headings "Risk Factors" and "Recent Developments" in the Prospectus and Prospectus Supplement for shares of the Company's common stock attached as an exhibit to a 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. filed July 23, 1997, constitute cautionary statements identifying important factors that could cause actual results to differ materially from those contained in the forward-looking statements. Additional factors that could cause or contribute to differences include: major changes in business conditions and the economy in general; loss of key members of senior management; new competitive inroads inroads Noun, pl make inroads into to start affecting or reducing: my gambling has made great inroads into my savings inroads npl to make inroads into [+ ; costs to integrate acquisitions; decisions to invest in research and development projects; dilution to earnings per share associated with acquisitions or stock issuance; regulatory issues; unexpected changes in reimbursement rates and payor mix; costs associated with debt restructuring Debt Restructuring A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage. Notes: ; unforeseen 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. and decisions to divest businesses. Future results are also dependent on each subsidiary of the Company meeting specific objectives. The Cooper Companies, Inc. and its subsidiaries develop, manufacture and market specialty healthcare products and services. Corporate offices are located in Irvine and Pleasanton, Calif. CooperVision, Inc., headquartered in Irvine, Calif., with manufacturing facilities in Huntington Beach Huntington Beach, city (1990 pop. 181,519), Orange co., S Calif., on the Pacific coast, across from Santa Catalina Island, in an oil-producing area; inc. 1909. It manufactures aerospace vehicles, aircraft parts, optical instruments, and heat transfer equipment. , Calif., Rochester, N.Y., and Toronto, markets a broad range of contact lenses for the vision care market. CooperSurgical, Inc., headquartered in Shelton, Conn., markets diagnostic and surgical instruments A surgical instrument is a specially designed tool or device for performing specific actions of carrying out desired effects during a surgery or operation, such as modifying biological tissue, or to provide access or viewing it. , equipment and accessories for the gynecological gynecological /gy·ne·co·log·i·cal/ (-kah-loj´i-k'l) gynecologic. market. Hospital Group of America, Inc. provides psychiatric services through hospitals in New Jersey, Delaware, Illinois and Indiana and satellite locations near these facilities. NOTE: A toll free interactive telephone system at 1-800-334-1986 provides stock quotes, recent press releases and financial data. The Company's Internet address is www.coopercos.com . Hydrasoft, Preference, Natural Touch and RUMI are trademarks of The Cooper Companies, Inc., its subsidiaries or affiliates. -0-
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Income
(In thousands, except per share figures)
(Unaudited)
Three Months Ended Nine Months Ended
July 31, July 31,
1997 1996 1997 1996
Net sales of products $24,951 $18,001 $ 62,608 $47,339
Net service revenue 13,998 10,870 38,380 30,556
Net operating revenue 38,949 28,871 100,988 77,895
Cost of products sold 8,277 5,507 19,412 14,252
Cost of services provided 12,107 10,027 34,162 29,164
Selling, general and
administrative expense 10,173 7,283 27,213 21,627
Research and development
expense 487 294 1,225 887
Amortization of intangibles 503 286 1,195 717
Income from operations 7,402 5,474 17,781 11,248
Interest expense 1,335 1,403 3,819 3,965
Other income, net 94 2 37 407
Income before income taxes 6,161 4,073 13,999 7,690
(Benefit of) income taxes (1,025) (596) (1,870) (440)
Net income $ 7,186 $ 4,669 $ 15,869 $ 8,130
Earnings per share $ 0.55 $ 0.40 $ 1.28 $ 0.69
Number of shares used to compute
earnings per share 12,981 11,793 12,365 11,741
-0-
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(In thousands)
(Unaudited)
July 31, October 31,
1997 1996
ASSETS
Current assets:
Cash and cash equivalents $ 43,291 $ 6,837
Trade receivables, net 27,329 21,650
Inventories 13,871 10,363
Other current assets 4,625 3,645
Total current assets 89,116 42,495
Property, plant and equipment, net 38,487 34,674
Intangibles, net 37,246 21,468
Other assets 8,808 4,272
$173,657 $102,909
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt $ 34,407 $ 844
Other current liabilities 31,867 32,464
Total current liabilities 66,274 33,308
Long-term debt 8,841 47,920
Other liabilities 2,845 6,351
Total liabilities 77,960 87,579
Stockholders' equity 95,697 15,330
$173,657 $102,909
CONTACT: The Cooper Companies, Inc. Norris Battin 888/822-2660 714/673-4299 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion