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COOPER COMPANIES REPORTS LOSSES FOR FOURTH QUARTER, YEAR; RESTRUCTURES HEALTHCARE GROUP AND FORECASTS HIGHER SALES AND IMPROVED RESULTS

COOPER COMPANIES REPORTS LOSSES FOR FOURTH QUARTER, YEAR; RESTRUCTURES
 HEALTHCARE GROUP AND FORECASTS HIGHER SALES AND IMPROVED RESULTS
 NEW YORK, Dec. 20 /PRNewswire/ -- The Cooper Companies, Inc. (NYSE: COO) today reported financial results for its fourth quarter and fiscal year ended Oct. 31, 1991, and announced it was restructuring its Healthcare Group to cut expenses and facilitate operational improvements.
 For the quarter, the company reported a net loss applicable to common stock of $6.8 million or $.26 per share on net sales of $10.2 million compared with net income applicable to common stock of $682,000 or $.03 per share on net sales of $13.3 million in the same period a year ago.
 For the 1991 fiscal year, Cooper reported a net loss applicable to common stock of $21.7 million or $.84 per share on net sales of $35.5 million compared with net income applicable to common stock of $3 million or $.12 per share on net sales of $48.2 million in fiscal 1990. Current fiscal year results include extraordinary gains of $5.4 million from the repurchase of $23 million principal amount of the company's 10-5/8 percent debentures, compared to extraordinary gains of $10.2 million from the repurchase of $31.6 million principal amount of those debentures in 1990.
 The company also reported that it expects improved results from continuing operations in fiscal 1992. This improvement is expected to be driven primarily by sales of CooperSurgical's LEEP System 6000 (TM) and related products, combined with reduced general and administrative expenses.
 Co-Chairman Gary A. Singer and Bruce D. Sturman commented, in a jointly released statement, "This has been a difficult year, reflecting success with our new CooperSurgical subsidiary but continued problems at CooperVision. We received FDA clearances for eight new CooperSurgical products, the most important of which is our LEEP system 6000 (TM), but were unable to outperform the declining U.S. contact lens industry. Accordingly we have restructured the Healthcare Group in an effort to cut overhead expenses and to integrate corporate and subsidiary management."
 "Together with cuts at the corporate level, we expect overhead to be reduced by $3 million in fiscal 1992. We also expect sales to increase by over 20 percent next year with virtually all our growth resulting from sales at CooperSurgical approaching parity with those of CooperVision. Achieving that kind of internal growth at CooperSurgical would make the corporation less susceptible to difficulties within the contact lens industry," they said.
 In addition, they reported that the company continues to actively pursue acquisitions.
 Financial Highlights for Fiscal 1991
 CooperSurgical reported higher sales, but CooperVision's reduced sales generated net reductions in aggregate sales for the 1991 year. Margins declined to 52 percent from 62 percent in fiscal 1990, caused by reduced sales and changes in product mix.
 The company's current ratio, 3.36:1 vs. 4.36:1 last year, reflects the use of cash and cash equivalents for the repurchase of some of the company's debentures, legal expenses and operations including divisional expansion and research and development fees.
 CooperSurgical Performance
 CooperSurgical's sales rose 145 percent in the fourth quarter to $3.2 million, and increased 133 percent to $7.9 million for the current fiscal year, compared to sales of $1.3 million and $3.4 million, respectively, in the comparable 1990 periods.
 CooperSurgical's fiscal year growth is attributable to sales from new products including LEEP System 6000 (TM) and seven other products granted FDA market clearance in fiscal '91, and the earlier acquisitions of Euro-Med Endoscope, Inc. and Euro-Med, Inc., whose medical instruments catalog is now distributed worldwide.
 The subsidiary continued to assess Cooper's royalty-free worldwide rights to manufacture and distribute Staar Surgical Company's foldable intraocular lenses (IOLs), for which the FDA granted market approval to Staar in September 1991. Cooper holds those rights along with the rights to purchase private label and hard and soft IOLs from Staar.
 Later this month the company expects to begin benefiting from two developments begun earlier in fiscal 1991. Through an exclusive agreement with S.A. Manufacture Belge de Gembloux of Brussels (MBG), Cooper's Euro-Med division will begin to domestically market certain specially designed and manufactured instruments for use in minimally invasive surgical procedures.
 In addition, CooperSurgical will expand its manufacturing capacity for Frigitronics (R) equipment and LEEP (TM) products by 25 percent in opening a new 25,000 square foot manufacturing plant in Shelton, Conn.
 CooperVision Performance
 CooperVision, the company's oldest business segment and which generated 78 percent and 93 percent of 1991 and 1990 net sales, respectively, reported that fourth quarter sales decreased 42 percent to $7 million from $12 million in the fourth quarter of 1990. For the 1991 fiscal year, CooperVision sales declined 38 percent to $27.7 million from $44.8 million in fiscal 1990.
 The reduced sales are attributed to the mid-1991 expiration of supply agreements and general industry turmoil in the United States, including the 5-10 percent decline in the contact lens wearer-base and shifts in demand toward frequent replacement lenses. In Canada, CooperVision reported higher net sales.
 Since his appointment in June 1991, President Tom Bender has resized the business in line with market demand. Operations from Henrietta, N.Y., were consolidated in the nearby Scottsville facility, manufacturing processes were further integrated and staffing levels were reduced to 213 from 405 earlier in the year. Efforts were also directed at developing a frequent replacement program.
 CooperVision Pharmaceuticals, Inc., began clinical studies on Verapamil after receiving FDA clearance in June. Development work also proceeded on other opthalmic products.
 Healthcare subsidiaries and their operating divisions of the Cooper Companies, Inc., are CooperSurgical, Inc. (CooperSurgical LEEP (TM) products, Euro-Med minimally invasive surgical instruments, ENDOMED (TM) laparoscopy systems, Frigitronics (R) cryosurgical equipment and CooperSurgical International sales and distribution) and CooperVision, Inc. (CooperVision (R) contact lenses and CooperVision Pharmaceuticals, Inc., ophthalmic pharmaceuticals). Product names referred to above are trademarks of the company or one of its subsidiaries. For reporting purposes, CooperSurgical, Inc., results include both the domestic and international sales of CooperSurgical medical instruments and equipment; and CooperVision, Inc., results include both CooperVision contact lenses and CooperVision Pharmaceuticals, Inc.
 THE COOPER COMPANIES, INC. AND SUBSIDIARIES
 STATEMENT OF CONSOLIDATED OPERATIONS
 (In thousands, except per share figures)
 Periods ended Three months Year ended
 Oct. 31 1991 1990 1991 1990
 (unaudited)
 Net sales $10,210 $13,309 $35,524 $48,206
 Cost of sales 5,728 5,026 16,979 18,476
 Gross profit 4,482 8,283 18,545 29,730
 Operating expenses 11,757 8,818 47,895 42,663
 Costs (credits) associated
 with restructuring opers. -- (530) -- 70
 Amort. of intangibles 257 179 946 341
 Investment income, net 2,882 2,207 12,268 16,152
 Gain on sales of assets
 and businesses, net -- 822 -- 1,076
 Other income (exp.), net (99) 502 574 1,226
 Interest expense 1,407 2,148 7,148 8,999
 Income (loss) from cont.
 opers. bef. inc. taxes (6,156) 1,199 (24,602) (3,889)
 Provision for (benefit of)
 income taxes 71 (583) 201 (2,907)
 Income (loss) from cont. opers.
 before extraord. items (6,227) 1,782 (24,803) (982)
 Loss on sale of discont.
 opers., net of taxes -- (731) -- (734)
 Inc. (loss) bef.
 extraordary items (6,227) 1,051 (24,803) (1,716)
 Extraordinary items -- 175 5,428 10,167
 Net income (loss) (6,227) 1,226 (19,375) 8,451
 Less, dividend requirements
 on senior exchangeable
 redeemable restricted voting
 preferred stock 612 544 2,325 5,451
 Net income (loss) applicable
 to common stock (6,839) 682 (21,700) 3,000
 Net income (loss) per
 common share:
 Continuing operations (.26) .05 (1.05) (.26)
 Discontinued operations -- (.03) -- (.03)
 Income (loss) before
 extraordinary items (.26) .02 (1.05) (.29)
 Extraordinary items -- .01 .21 .41
 Net income (loss)
 per common share (.26) .03 (.84) .12
 Average number of common
 shares outstanding 25,922 25,651 25,878 24,895
 CONSOLIDATED CONDENSED BALANCE SHEET
 (In thousands)
 10/31/91 10/31/90
 ASSETS:
 Current assets:
 Cash and cash equivalents $ 76,652 $136,896
 Restricted cash 9,585 9,950
 Marketable securities 58,028 25,907
 Trade and other receivables, net 17,313 14,812
 Inventories 10,906 8,331
 Other current assets 1,373 1,165
 Total current assets 173,857 197,061
 Property, plant and equipment, net 3,593 3,083
 Marketable securities -- 3,824
 Intangibles, net 8,843 6,177
 Other assets 1,340 7,283
 Total 187,633 217,428
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Short-term debt $ 1,131 $ 1,537
 Other current liabilities 50,542 43,665
 Total current liabilities 51,673 45,202
 Long-term debt:
 10-5/8 percent convertible subordinated
 reset debentures due 2005 48,012 70,557
 Other, less current installments 645 306
 Total 48,657 70,863
 Deferred income taxes 15,601 15,780
 Total liabilities 115,931 131,845
 Stockholders' equity:
 Senior exchangeable redeemable
 restricted voting preferred stock,
 $.10 par value 60 53
 Preferred stock, $.10 par value -- --
 Common stock, $.10 par value 2,569 2,554
 Additional paid-in capital 182,567 181,849
 Accumulated deficit (110,120) (90,745)
 Translation adjustments 202 101
 Net unrealized loss on non-current
 marketable securities -- (3,637)
 Unamortized restricted stock award
 compensation (3,576) (4,592)
 Total stockholders' equity 71,702 85,583
 Total 187,633 217,428
 -0-
 /CONTACT: Richard Jay Coyle of Cooper Companies, 212-557-2690/
 (COO) CO: The Cooper Companies, Inc. ST: New York IN: HEA SU: ERN


KD -- NY067 -- 4511 12/20/91 16:27 EST
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Date:Dec 20, 1991
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