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The Cooper Companies Announces First Quarter 2014 Results

Stocks in this article: COO

PLEASANTON, Calif., March 6, 2014 (GLOBE NEWSWIRE) -- The Cooper Companies, Inc. (NYSE:COO) today announced financial results for the fiscal first quarter ended January 31, 2014.

  • Revenue increased 7% year-over-year to $405.0 million, up 11% in constant currency and excluding the divestiture of Aime. CooperVision (CVI) revenue up 8% to $326.3 million, up 14% in constant currency and excluding the divestiture of Aime. CooperSurgical (CSI) revenue up 0.3% to $78.7 million.  
  • GAAP earnings per share (EPS) and non-GAAP EPS of $1.47, down 3 cents or 2% and up 24 cents or 20% year over year, respectively.

Commenting on the results, Robert S. Weiss, Cooper's president and chief executive officer said, "We are very pleased to report a strong first quarter. CooperVision continued to gain share in all geographies and modalities with silicone hydrogel products showing especially strong growth led by Biofinity®. CooperSurgical also continued to post solid revenue growth in fertility. Our businesses continue to perform well and we remain excited about the future."

First Quarter GAAP Operating Highlights

  • Revenue $405.0 million, up 7% from last year's first quarter, 11% excluding currency and the divestiture of Aime (CVI's rigid gas permeable contact lens and solutions business in Japan, sold effective October 31, 2013).  
  • Gross margin 65% compared with 63% in last year's first quarter. Gross margin was positively impacted by a lower royalty payment on silicone hydrogel lens sales and favorable product mix, partially offset by lower revenue due to currency, primarily the yen.  
  • Operating margin 20% compared with 18% in last year's first quarter. The increase was the result of gross margin improvement and SG&A leverage.   
  • Depreciation $23.9 million, down 1% from last year's first quarter. Amortization $7.5 million, up 2% from last year's first quarter.  
  • Total debt increased $1.1 million from October 31, 2013 to $345.7 million. Interest expense $1.7 million compared with $2.6 million in last year's first quarter.  
  • Cash provided by operations $68.6 million, capital expenditures $61.0 million and insurance recovery of $1.4 million, resulted in free cash flow $9.0 million.   
  • Shares repurchased $50.0 million (396 thousand shares).

First Quarter CooperVision GAAP Operating Highlights

  • Revenue $326.3 million, up 8% from last year's first quarter, 14% in constant currency and excluding the divestiture of Aime.  
  • Revenue by category:  
        Constant Currency
  (In millions) % of CVI Revenue %chg %chg
  1Q14 1Q14 y/y y/y
Toric  $ 101.2 31% 10% 12%
Multifocal  33.7 10% 24% 24%
Single-use sphere  68.8 21% 5% 14%
Non single-use sphere, other  122.6 38% 5% 6%
Total  $ 326.3 100% 8% 11%
  • Revenue by geography:
        Constant Currency
   (In millions)  % of CVI Revenue %chg %chg
   1Q14  1Q14 y/y y/y
Americas  $ 140.7 43% 13% 13%
EMEA  117.9 36% 16% 13%
Asia Pacific  67.7 21% -9% 6%
Total  $ 326.3 100% 8% 11%
  • Selected revenue by material:
        Constant Currency
   (In millions)  % of CVI Revenue %chg %chg
   1Q14  1Q14 y/y y/y
         
Silicone hydrogel  $ 154.2 47% 29% 30%
Proclear®  $ 82.6 25% 9% 12%
  • Gross margin 65% compared with 63% in last year's first quarter. Gross margin was positively impacted by a lower royalty payment on silicone hydrogel lens sales and favorable product mix, partially offset by lower revenue due to currency, primarily the yen.

First Quarter CooperSurgical GAAP Operating Highlights

  • Revenue $78.7 million, up 0.3% from last year's first quarter.  
  • Revenue by category:
  (In millions) % of CSI Revenue %chg
  1Q14 1Q14 y/y
Office and surgical procedures  $ 50.8 65% -6%
Fertility  27.9 35% 15%
Total  $ 78.7 100% 0%
  • Gross margin 63% compared with 64% in last year's first quarter. The decrease was primarily the result of lower margins associated with the fertility business.

2014 Guidance

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

  FY14 Guidance FY14 Guidance
  Old New
Revenues (In millions)    
Total $ 1,675 -- $1,735 $ 1,685 -- $1,725
CVI $ 1,355 -- $1,395 $ 1,365 -- $1,395
CSI $ 320 -- $340 $ 320 -- $330
EPS    
GAAP $ 6.70 -- $7.00 $ 6.75 -- $7.00
Non-GAAP $ 6.70 -- $7.00 $ 6.75 -- $7.00

Guidance assumes constant currency as of March 6, 2014.

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