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The Cooper Companies Announces Fourth Quarter And Full Year 2013 Results

PLEASANTON, Calif., Dec. 5, 2013 (GLOBE NEWSWIRE) -- The Cooper Companies, Inc. (NYSE:COO) today announced financial results for the fiscal fourth quarter and full year ended October 31, 2013.

  • Fourth quarter revenue increased 4% year-over-year to $411.9 million. Fiscal 2013 revenue increased 10% to $1,587.7 million.  
  • Fourth quarter GAAP earnings per share (EPS) $1.15, down 31 cents or 21% from last year's fourth quarter. Fiscal 2013 GAAP EPS $5.96, up 18% from fiscal 2012.  
  • Fourth quarter non-GAAP EPS $1.48, up one cent or 1% from last year's fourth quarter. Fiscal 2013 non-GAAP EPS $5.95, up 15% from fiscal 2012. See "Reconciliation of Non-GAAP EPS to GAAP EPS" below.  
  • Fourth quarter free cash flow $78.3 million. Fiscal 2013 free cash flow $239.4 million.

Commenting on the results, Robert S. Weiss, Cooper's president and chief executive officer said, "I am pleased to report record financial results for fiscal 2013 including record revenues at both of our business units and record EPS for the Company. We are proud of our many accomplishments throughout the year including CooperVision's success with its Biofinity ® family of products and launch of MyDay along with CooperSurgical's success with its fertility franchise. As we enter fiscal 2014, we remain encouraged by our business trends and believe we are well positioned to deliver strong operating results."

Fourth Quarter GAAP Operating Highlights

  • Revenue $411.9 million, up 4% from last year's fourth quarter, 7% excluding currency.  
  • Gross margin 64% compared with 64% in last year's fourth quarter. Gross margin was positively impacted by a lower royalty payment on silicone hydrogel lens sales and increased manufacturing efficiencies, offset by lower revenue due to currency, primarily the yen.  
  • Operating margin 15% compared with 20% in last year's fourth quarter. The decrease was the result of $21.1 million in costs related to the completion of the Aime divestiture. Excluding these costs, operating margin would have been 20%.  
  • Depreciation $24.1 million, up 2% from last year's fourth quarter. Amortization $7.7 million, up 5% from last year's fourth quarter.  
  • Total debt increased $101.0 million from July 31, 2013, to $344.7 million, due to the repurchase of $123.0 million or 960 thousand shares, offset by operational cash flow generation. Interest expense $1.9 million compared with $2.7 million in last year's fourth quarter.  
  • Cash provided by operations $150.3 million and capital expenditures $72.0 million resulted in free cash flow of $78.3 million.

Fourth Quarter CooperVision (CVI) GAAP Operating Highlights

  • Revenue $327.1 million, up 3% from last year's fourth quarter, 6% in constant currency.  
  • Revenue by category:
        Constant Currency
  (In millions) % of CVI Revenue %chg %chg
  4Q13 4Q13 y/y y/y
Toric  $ 98.2 30% 7% 8%
Multifocal  31.8 10% 20% 19%
Single-use sphere  71.1 22% -2% 8%
Non single-use sphere, other  126.0 38% -1% 1%
Total  $ 327.1 100% 3% 6%
  • Revenue by geography:
        Constant Currency
  (In millions) % of CVI Revenue %chg %chg
  4Q13 4Q13 y/y y/y
Americas  $ 141.7 43% 2% 2%
EMEA  114.3 35% 12% 8%
Asia Pacific  71.1 22% -7% 11%
Total  $ 327.1 100% 3% 6%
  • Selected revenue by material:
        Constant Currency
  (In millions) % of CVI Revenue %chg %chg
  4Q13 4Q13 y/y y/y
         
Silicone hydrogel  $ 146.9 45% 18% 19%
Proclear ®  $ 81.6 25% 2% 4%
  • Gross margin 64% compared with 64% in last year's fourth quarter. Gross margin was positively impacted by a lower royalty payment on silicone hydrogel lens sales and increased manufacturing efficiencies, offset by lower revenue due to currency, primarily the yen.

Fourth Quarter CooperSurgical (CSI) GAAP Operating Highlights

  • Revenue $84.8 million, up 8% from last year's fourth quarter.  
  • Revenue by category:
  (In millions) % of CSI Revenue %chg
  4Q13 4Q13 y/y
Office and surgical procedures  $ 55.8 66% 2%
Fertility  29.0 34% 24%
Total  $ 84.8 100% 8%
  • Gross margin 64%, compared with 64% in last year's fourth quarter.

Fiscal Year 2013 Operating Highlights

  • Revenue $1,587.7 million, up 10% from fiscal 2012, 8% excluding currency and acquisitions.  
  • CVI revenue $1,268.3 million, up 7% from fiscal 2012, 10% in constant currency, and CSI revenue $319.4 million, up 25% from fiscal 2012, 3% excluding acquisitions.  
  • Gross margin 65% compared with 64% in fiscal 2012, both GAAP and non-GAAP.  
  • Operating margin 19% compared with 20% in fiscal 2012. Non-GAAP 21% from 20% in fiscal 2012.  
  • Depreciation and amortization expense $125.3 million.  
  • Interest expense $9.2 million compared with $11.8 million in fiscal 2012.  
  • Cash provided by operations $415.9 million, capital expenditures $178.1 million, insurance recovery $1.3 million and acquisition costs $0.3 million resulted in free cash flow of $239.4 million.

Other

  • As previously announced on November 7, 2013, Cooper completed the sale of Aime, its rigid gas permeable contact lens and solutions business in Japan, to Nippon Contact Lens Inc. effective October 31, 2013. The company recognized a fiscal 2013 charge to GAAP earnings per share of $0.26.

2014 Guidance

The Company initiated its full year 2014 guidance. Guidance is summarized as follows:

  FY14 Guidance
Revenues (In millions)  
Total $1,675 - $1,735
CVI $1,355 - $1,395
CSI $320 - $340
EPS  
GAAP $6.70 - $7.00
Non-GAAP $6.70 - $7.00

Guidance assumes constant currency at the date of issuance.

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