The Cooper Companies Reports Third Quarter Results; Revenue Up 48% to $90.6 Million; EPS 86 Cents Up 28%.Business Editors & Health/Medical Writers LAKE FOREST, Calif.--(BUSINESS WIRE)--Sept. 4, 2002 The Cooper Companies, Inc. (NYSE NYSE See: New York Stock Exchange :COO) today reported financial results for its third fiscal quarter ended July 31, 2002: -- In 2000, CSI acquired Leisegang Medical, Inc. the world leader in colposcopy, whose products are widely regarded by practitioners as the finest colposcopy equipment in the world. -- Digital imaging technology is evolving rapidly, and CSI has elected to consolidate its colposcopy development into the Leisegang Prism System(TM) in order to capitalize on Leisegang's reputation for superior optics. Commenting on the results, Chairman and Chief Executive Officer A. Thomas Bender, said: "Cooper continued its consistent quarterly performance as once again revenue, 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. and earnings per share showed strong growth and exceeded consensus estimates for the quarter. "In our 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, revenue growth was strong, the integration of the Biocompatibles acquisition is ahead of plan, and our new products are performing well around the world. "In women's healthcare, we continue to consolidate the in-office gynecology market through acquisition and evaluate opportunities for further growth. Operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: have improved significantly this year in this business." Outlook For the fourth quarter of fiscal 2002, Cooper estimates revenue between $91 million and $94 million, 39% to 42% above the fourth quarter of 2001, with earnings per share ranging from $0.99 to $1.03. Fourth quarter 2002 CooperVision revenue is expected to range between $72 million and $74 million and CooperSurgical revenue is expected to be about $20 million. For fiscal 2002, Cooper estimates revenue between $312 million and $315 million, a 33% to 34% increase, and has raised earnings per share guidance to $3.09 to $3.13 from the previous estimate of $3.07 to $3.12. For fiscal 2003, Cooper estimates revenue between $380 million and $400 million with earnings per share ranging from $3.95 to $4.05. Business Unit P&L Highlights ($'s in millions)
Three Months Ended July 31,
Revenue Operating Income
% % Inc %Revenue %Revenue
2002 2001 Inc. 2002 2001 (Dec) 2002 2001
CVI $70.6 $46.0 54% $16.8 $13.2 28% 24% 29%
CSI 20.0 15.4 30% 2.5 2.6 (6%) 12% 17%
Sub-
total 90.6 61.4 48% 19.3 15.8 22% 21% 26%
HQ
Expense - - - (2.3) (1.8) - - -
TOTAL $90.6 $61.4 48% $17.0 $14.0 21% 19% 23%
Nine Months Ended July 31,
Revenue Operating Income
% %Revenue %Revenue
2002 2001 Inc. 2002 2001 % Inc 2002 2001
CVI $168.9 $126.4 34% $40.5 $35.6 14% 24% 28%
CSI 51.7 42.1 23% 10.0 6.7 49% 19% 16%
Sub-
total 220.6 168.5 31% 50.5 42.3 19% 23% 25%
HQ
Expense - - - (5.7) (5.0) - - -
TOTAL $220.6 $168.5 31% $44.8 $37.3 20% 20% 22%
Note: Cooper implemented Statement of Financial Accounting Standards No. 142, "Goodwill and Other 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. " at the beginning of this year, and no longer amortizes goodwill. Goodwill amortization included in 2001 results reduced operating income by $1.2 million in the three-month period and $3 million in the nine-month period. Third Quarter Operating Highlights CooperVision Pro Forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma Results At the end of February, CVI CVI C (Language) Virtual Instrument CVI Clinical and Vaccine Immunology (journal) CVI Chronic Venous Insufficiency CVI Coastal Vulnerability Index CVI Canaan Valley Institute acquired the eye care business of Biocompatibles International, plc which had worldwide revenue of about $70 million in calendar 2001, about $50 million outside of 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. . CVI's consolidated results, therefore, include Biocompatibles performance beginning in March 2002. In order to measure organic growth, discussions below of results and comparisons in CVI's business are on a pro forma basis as if Biocompatibles eye care revenue in the third quarter of 2001 was included. Third Quarter CVI Soft Lens Revenue Highlights (Note: Soft lens revenue includes sales of CooperVision's soft contact lens products to commercial customers. It excludes sales to other contact lens manufacturers (OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and sales), royalties, freight charges passed on to customers, and sales of discontinued products and low volume hard contact lens products. CooperVision's 2001 soft lens revenue (excluding Biocompatibles) adjusted for these exclusions was $41.4 million in the third quarter and $115.0 million for the nine-month period.) -- In 2000, CSI acquired Leisegang Medical, Inc. the world leader in colposcopy, whose products are widely regarded by practitioners as the finest colposcopy equipment in the world. -- Digital imaging technology is evolving rapidly, and CSI has elected to consolidate its colposcopy development into the Leisegang Prism System(TM) in order to capitalize on Leisegang's reputation for superior optics. Third Quarter CVI Geographic Soft Lens Revenue Highlights -- In 2000, CSI acquired Leisegang Medical, Inc. the world leader in colposcopy, whose products are widely regarded by practitioners as the finest colposcopy equipment in the world. -- Digital imaging technology is evolving rapidly, and CSI has elected to consolidate its colposcopy development into the Leisegang Prism System(TM) in order to capitalize on Leisegang's reputation for superior optics. CVI's gross margin was 66% in the quarter, unchanged from the quarter a year ago. Biocompatibles Integration Cooper has said that the Biocompatibles transaction would be cumulatively neutral to 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. for the eight-month period ending October 31, 2002 and accretive after that. "Our Biocompatibles integration plan is ahead of plan," said Bender. "To date we have lowered costs by reducing general and administrative expenses and rationalizing manufacturing, and we have accelerated sales of the Proclear line of products, which are often prescribed for patients with dry eye symptoms. "The integration of the Biocompatibles manufacturing in Farnborough, U.K. into our Southampton facility is well under way and we have been able to improve cost of goods through manufacturing efficiencies. "A favorable shift in product mix is also improving CVI profitability, as we trade up customers to higher margin Proclear products. Going forward, our objective is to have the gross margin of the former Biocompatibles product line approach that of CVI's products prior to the acquisition by the end of our next fiscal year, and we are currently ahead of our target to do that. "We expect that these operating improvements combined with Biocompatibles' favorable impact to lower our tax rate will achieve the accretion targets we have forecast. We continue to expect that Biocompatibles will contribute about 50 cents to Cooper's earnings per share in 2003, and 79 cents in 2004. "We estimate that Biocompatibles will add more than $45 million to CVI's worldwide revenue in the eight months of 2002 following the acquisition and between $75 million and $80 million in 2003, following selected product and market rationalization." New Products Sales of CVI's Frequency(R) Multifocal multifocal /mul·ti·fo·cal/ (mul?te-fo´k'l) arising from or pertaining to many foci. mul·ti·fo·cal adj. Relating to or arising from many foci. are ahead of expectations. This product has been placed in over 1,100 practitioner offices to date 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 CVI expects an additional 2,000 office placements by fiscal year-end Fiscal Year-End The completion of a one-year, or 12-month, accounting period. Notes: The reason that a company's fiscal year often differs from the calendar year and does not close on Dec 31, is due to the nature of company's needs. . CVI's line of cosmetic lenses is estimated to reach about $15-$17 million in revenue in fiscal 2002. A launch of Frequency Enhancements, a line of cosmetic products that accentuates the natural color of the eye, is planned for the fourth calendar quarter of 2002. In 2003, CVI expects to begin an extended wear contact lens development program using a unique material. CooperSurgical Discontinuation dis·con·tin·u·a·tion n. A cessation; a discontinuance. Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent) discontinuance of Cerveillance Colposcopy Colposcopy Definition Colposcopy is a procedure that allows a physician to take a closer look at a woman's cervix and vagina using a special instrument called a colposcope. It is used to check for precancerous or abnormal areas. System 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 Company's women's healthcare business, decided during the third quarter to phase out the Cerveillance colposcopy system, which captures and stores digital images of the cervix cervix /cer·vix/ (ser´viks) pl. cer´vices [L.] 1. neck. 2. the front portion of the neck. 3. cervix uteri. , and recorded a charge against cost of sales of about $2 million; an after tax charge of 8 cents a share. Cerveillance is being phased out primarily because: -- In 2000, CSI acquired Leisegang Medical, Inc. the world leader in colposcopy, whose products are widely regarded by practitioners as the finest colposcopy equipment in the world. -- Digital imaging technology is evolving rapidly, and CSI has elected to consolidate its colposcopy development into the Leisegang Prism System(TM) in order to capitalize on Leisegang's reputation for superior optics. Third Quarter CSI Operating Highlights CSI's third quarter revenue increased 30% to $20 million and is up 23% year to date. Organic growth from gynecology products(a) in the third quarter of 2002 was 10%. CSI expects revenue of about $20 million in the fourth quarter of fiscal 2002. Due to the $2 million provision to phase out the Cerveillance colposcopy system, CSI's operating margin fell to 12%, below the prior year's quarter of 17%. Without this charge, CSI's operating margin would have been 22%, down from 26% in the previous quarter due to expenses incurred in integrating the recent Norland and Ackrad acquisitions. Year to date, CSI's operating margin is 19%, 23% without the Cerveillance charge, up from 16% in the nine-month period of 2001. Building on its strategy to develop a franchise in the infertility infertility, inability to conceive or carry a child to delivery. The term is usually limited to situations where the couple has had intercourse regularly for one year without using birth control. market, in May CSI acquired Ackrad Laboratories, Inc., a developer and manufacturer of medical devices used primarily in the assessment of infertility and other gynecological gynecological /gy·ne·co·log·i·cal/ (-kah-loj´i-k'l) gynecologic. disorders. Ackrad had revenue of $5.3 million in 2001. Tax Rate Cooper's effective tax rate (income tax expense divided by pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. ) was 27% for the third quarter and is projected at 27% for the full fiscal year. (a) About 9% of CSI's revenue derives from medical devices that are in markets outside of women's healthcare such as cardiology cardiology Medical specialty dealing with heart diseases and disorders. It began with the 1749 publication by Jean Baptiste de Sénac of contemporary knowledge of the heart. Diagnostic methods improved in the 19th century, and in 1905 the electrocardiograph was invented. , gastroenterology gastroenterology Medical specialty dealing with digestion and the digestive system. In the 17th century Jan Baptista van Helmont conducted the first scientific studies in the field; William Beaumont published his own observations in 1833. and ophthalmology ophthalmology (ŏf'thălmŏl`əjē), branch of medicine specializing in the anatomy, function and diseases of the eye. Ophthalmologists specialize in the medical and surgical treatment of eye disorders, vision measurements for . CSI does not actively market these products. As CSI's business is women's healthcare, the organic growth comparison refers only to products used in this market. Balance Sheet Items Cooper continued to lower its Days of Sales Outstanding (DSOs) following collection difficulties related to the installation of a new enterprise reporting With the dramatic expansion of information technology, and the desire for increased competitiveness in corporations, there has been an increase in the use of computing power to produce unified reports which join different views of the enterprise in one place. system earlier in the fiscal year. At the end of the third quarter, Cooper's DSOs were 69 days, down from 75 days with Biocompatibles (73 days excluding the Biocompatibles impact) at the end of the second quarter. DSOs are expected to remain in the upper 60s to low 70s range. Inventory months on hand (MOH See modem on hold. ) continue at appropriate levels, at 7.1 months, equal to the end of the second quarter including pro forma Biocompatibles operations. During 2000, inventory fell below the level needed to support the more than 500 thousand stock keeping items CVI carries. CVI's extensive range of toric tor·ic adj. Of, relating to, or shaped like a torus or part of a torus. lens parameters offers practitioners the widest choice of fitting alternatives in the industry. During the quarter, capital expenditures were about $5 million; $17 million year to date. Depreciation and amortization was $3.3 million for the quarter; $8.5 million through nine months. New Credit Facility In May, Cooper announced the successful syndication of a $225 million bank credit facility: a $75 million five-year term loan with an interest only payment in the first year then fully amortized in the next four years, and a $150 million three-year 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. Interest rates under this facility are based on LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus additional basis points determined by Cooper's ratio of debt to its earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Cooper plans to use the facility for general corporate purposes, including acquisitions, and capital expenditures. At the closing, Cooper paid off $62 million under its existing line of credit and (pound)44 million (approximately $62 million) in notes owed to Biocompatibles International plc as a result of Cooper's purchase of the Biocompatibles eye care business. Investment in Quidel Common Stock In the first quarter of 2001, Quidel Corporation acquired Litmus litmus, organic dye usually used in the laboratory as an indicator of acidity or alkalinity (see acids and bases). Naturally pink in color, it turns blue in alkali solutions and red in acids. Concepts, Inc., a company that Cooper had invested in. Cooper received 1,138,725 shares of Quidel's common stock for its interest in Litmus. At that time, Cooper recorded a pre tax gain of $719 thousand -- a net income gain of 3 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. -- representing the amount that the fair market value of the Quidel shares received exceeded the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of Cooper's investment in Litmus. In the third quarter of 2002, Cooper received an additional 334,727 shares of Quidel common stock previously held in escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. and recorded a pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern gain of $2.1 million -- a net income gain of 8 cents per share. Cooper currently carries 881,452 shares of Quidel's common stock on its balance sheet at a cost of $5.69 per share. Unrealized gains Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. and losses on these shares are recorded on the balance sheet and are, therefore, not included in the results of operations until they are sold. Cooper intends to sell these shares from time to time as market conditions indicate. Corporate Governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. The Company's chairman and chief executive officer and its executive vice president and chief financial officer will submit the certifications required by applicable law with this quarter's form 10Q filing to the Securities and Exchange Commission. Patent 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. With CIBA Vision To meet Wikipedia's and conform with our NPOV policy, this article or section may require cleanup. The current version of this article reads like an advertisement. Please discuss this issue on the . is available. Cooper has been engaged in patent litigation in the United States, the United Kingdom and France with CIBA Vision, a division of Novartis, alleging that CVI's Frequency Colors and Expressions opaque contact lenses contact lenses contact npl → verres mpl de contact contact lenses contact npl → Kontaktlinsen pl contact lenses npl infringe certain patents of CIBA Vision. On August 22, Cooper said that CVI had received an Order in the U.S. litigation involving U.S. Patent No. 5,414,477 (the '477 or Jahnke patent) related to cosmetic contact lenses. In the Order, the Court granted Wesley Jessen's motion for summary judgment motion for summary judgment n. a written request for a judgment in the moving party's favor before a lawsuit goes to trial and based on recorded (testimony outside court) affidavits (or declarations under penalty of perjury), depositions, admissions of fact, answers of infringement and found that CVI's Expressions lenses sold in the United States infringe Wesley Jessen's '477 patent. CVI's counter claim challenging the validity of the Jahnke patent is scheduled for trial in October. The Company remains confident that it will ultimately prevail on its defense that the `477 patent is invalid based on prior art. In July, in related litigation in the United Kingdom, CIBA Vision (UK) decided to revoke To annul or make void by recalling or taking back; to cancel, rescind, repeal, or reverse. revoke v. to annul or cancel an act, particularly a statement, document, or promise, as if it no longer existed. the British counterpart to the `477 Jahnke patent, Patent EP (UK) 0498835, also issued to Jahnke. CIBA Vision consented to an Order of the Court that the Jahnke patent be revoked in the United Kingdom and agreed to reimburse re·im·burse tr.v. re·im·bursed, re·im·burs·ing, re·im·burs·es 1. To repay (money spent); refund. 2. To pay back or compensate (another party) for money spent or losses incurred. CooperVision's legal costs in the United Kingdom in relation to the Jahnke suit. The U.K. Court has also heard arguments with regard to the validity and infringement of another opaque lens patent, the "Knapp" patent, and a decision is expected in September. In the United States, CVI has received an Order in the lawsuit involving U.S. Patent No. 4,668,240 (the `240 or Loshaek patent). The Court had previously ruled in Wesley Jessen's favor with respect to the meaning of disputed terms in the `240 patent. In response to a motion for reconsideration recently filed by CVI, the Court found that evidence presented by CVI placed doubt on the Court's prior interpretation of the `240 patent. Accordingly, the Court granted CVI's request to appoint an independent technical advisor to assist the Court in resolving the questions presented by the parties with respect to the technical terms in the patent. CVI was very pleased with this ruling and is confident that it will also prevail on the `240 patent. Revenue from products that include the disputed technology accounts for about 2 percent of Cooper's year-to-date worldwide revenue in fiscal 2002. Earnings per Share All per share amounts mentioned in this report refer to diluted per share amounts 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 . Conference Call The Cooper Companies will hold a conference call to discuss its third quarter results today at 2 p.m. Pacific Daylight Time. To access the live call, dial 1-800-500-0177. A replay will be available at 1-888-203-1112 approximately one hour after the call ends and remain available for five days. The access code for both calls is 718174. This call will also be broadcast live on The Cooper Companies' Web site, www.coopercos.com and at www.bestcalls.com and www.streetevents.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Some of the information included in this news release contains "forward-looking statements" as defined by 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 include all statements regarding anticipated growth in our revenue, anticipated market conditions and results of operations. To identify forward-looking statements look for words like "believes," "expects," "may," "will," "should," "seeks," "intends," "plans," "estimates" or "anticipates" and similar words or phrases. Discussions of strategy, plans or intentions often contain forward-looking statements. These, and all forward-looking statements, necessarily depend on assumptions, data or methods that may be incorrect or imprecise im·pre·cise adj. Not precise. im  pre·cise ly adv. .Events, among others, that could cause actual results and future actions to differ materially from those described in forward-looking statements include major changes in business conditions, a major disruption in the operations of our manufacturing facilities, new competitors or technologies, the impact of an undetected virus on our computer systems, acquisition integration delays or costs, increases in interest rates, foreign currency exchange exposure, investments in research and development and other start-up projects, dilution to earnings per share from acquisitions or issuing stock, regulatory issues, changes in tax laws, significant environmental cleanup The process of removing solid, liquid, and hazardous wastes, except for unexploded ordnance, resulting from the joint operation of US forces to a condition that approaches the one existing prior to operation as determined by the environmental baseline survey, if one was conducted. costs above those already accrued, litigation costs including any related settlements, cost of business divestitures, the requirement to provide for a significant liability or to write off a significant asset, changes in accounting principles or estimates, and other factors described in our Securities and Exchange Commission filings, including the "Business" section in our Annual Report on 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 October 31, 2001. We caution investors that forward-looking statements reflect our analysis only on their stated date. We disclaim dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. any intent to update them except as required by law. About Cooper The Cooper Companies, Inc. and its subsidiaries develop, manufacture and market specialty healthcare products. Corporate offices are in Lake Forest and Pleasanton, Calif. A toll free interactive telephone system at 1-800-334-1986 provides stock quotes, recent press releases and financial data. Cooper's World Wide Web address is www.coopercos.com. CooperVision, Inc., markets a broad range of contact lenses for the vision care market. Headquartered in Lake Forest, Calif., it manufactures 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., Norfolk, Va., Adelaide, Australia, Farnborough and Hamble, England, Madrid, Spain and Toronto. Its Web address is www.coopervision.com. CooperSurgical, Inc., with operations in Trumbull, Conn., Fort Atkinson Fort Atkinson is the name of three locations in the United States:
Note to Editors: Cerveillance(R), Expressions(TM), Frequency(R), Leisegang Prism System(TM) and Proclear(R) are registered trademarks of The Cooper Companies, Inc., its subsidiaries and affiliates.
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Income
(In thousands, except for per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
July 31, July 31,
2002 2001 2002 2001
Net sales $ 90,563 $ 61,365 $220,585 $168,523
Cost of sales 34,844 22,336 83,217 58,839
Gross profit 55,719 39,029 137,368 109,684
Selling, general and
administrative expense 37,055 22,516 88,439 65,686
Research and development
expense 1,118 1,055 2,893 2,836
Amortization of intangibles 565 1,457 1,265 3,866
Operating income 16,981 14,001 44,771 37,296
Interest expense 2,347 914 4,681 2,814
Other income, net 3,668 131 4,686 908
Income before income
taxes 18,302 13,218 44,776 35,390
Provision for income
taxes 4,941 2,857 12,092 10,010
Net income $ 13,361 $ 10,361 $ 32,684 $ 25,380
Diluted earnings per
share $ 0.86 $ 0.67 $ 2.10 $ 1.68
Number of shares used to
compute earnings per
share 15,605 15,384 15,570 15,128
Memo:
Cash flow (income before
income taxes plus
depreciation and
amortization) per
diluted share. Includes
amounts for depreciation
of $2,779 and $1,381 in
the three months ended,
and $7,224 and $4,040 in
the nine months ended
July 31, 2002 and 2001,
respectively $ 1.39 $ 1.04 $ 3.42 $ 2.86
Note: Following our implementation of Statement of Financial
Accounting Standards No. 142, "Goodwill and Other Intangible Assets"
at the beginning of this year, we no longer amortize goodwill.
Goodwill amortization included in 2001 results reduced operating
income by $1.2 million and $3 million in the three- and nine-month
periods, respectively.
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(In thousands)
(Unaudited)
July 31, October 31,
2002 2001
ASSETS
Current assets:
Cash and cash equivalents $ 8,790 $ 12,928
Trade receivables, net 69,779 55,318
Marketable securities 5,156 7,982
Inventories 77,444 51,153
Deferred tax assets 19,991 17,308
Other current assets 17,109 10,516
Total current assets 198,269 155,205
Property, plant and equipment, net 93,918 61,028
Goodwill 213,091 131,732
Other intangibles, net 17,507 13,890
Deferred tax assets 25,761 31,246
Other assets 4,094 3,748
$ 552,640 $ 396,849
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt $ 32,941 $ 8,249
Other current liabilities 84,884 59,724
Total current liabilities 117,825 67,973
Long-term debt 135,342 60,553
Other liabilities 4,608 12,039
Total liabilities 257,775 140,565
Stockholders' equity 294,865 256,284
$ 552,640 $ 396,849
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