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The Cooper Companies Announces Second Quarter 2014 Results

PLEASANTON, Calif., June 5, 2014 (GLOBE NEWSWIRE) -- The Cooper Companies, Inc. (NYSE:COO) today announced financial results for the fiscal second quarter ended April 30, 2014.

  • Revenue increased 7% year-over-year to $412.3 million, up 9% in constant currency and excluding the divestiture of Aime. CooperVision (CVI) revenue up 7% to $331.1 million, up 9% in constant currency and excluding the divestiture of Aime. CooperSurgical (CSI) revenue up 9% to $81.2 million.
  • GAAP earnings per share (EPS) $1.62, up 10 cents or 7% from last year's second quarter.
  • Non-GAAP EPS $1.64, up 14 cents or 9% from last year's second quarter. See "Reconciliation of Non-GAAP EPS to GAAP EPS" below.

Commenting on the results, Robert S. Weiss, Cooper's president and chief executive officer said, "I am proud to report another strong quarter for the Company. We continued gaining market share within CVI driven by our silicone hydrogel family of products, especially Biofinity ® and MyDay TM. CSI also posted solid revenue growth driven by its fertility business. As we move into the second half of the year, we remain positive on our markets and our ability to continue taking market share."

Second Quarter GAAP Operating Highlights

  • Revenue $412.3 million, up 7% from last year's second quarter, 9% 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 66% in last year's second quarter. Gross margin was down year-over-year primarily due to planned costs associated with MyDay TM.  
  • Operating margin 22% compared with 21% in last year's second quarter. The increase was the result of leveraging operating expenses.  
  • Depreciation $24.3 million, up 4% from last year's second quarter. Amortization $7.5 million, down 1% from last year's second quarter.  
  • Total debt decreased $10.3 million in the quarter to $335.4 million. Interest expense $1.6 million compared with $2.4 million in last year's second quarter.  
  • Cash provided by operations $126.3 million and capital expenditures $61.2 million resulted in free cash flow $65.1 million.

Second Quarter CooperVision GAAP Operating Highlights

  • Revenue $331.1 million, up 7% from last year's second quarter, 9% in constant currency and excluding the divestiture of Aime.  
  • Revenue by category:
        Constant Currency
  (In millions) % of CVI Revenue %chg %chg
  2Q14 2Q14 y/y y/y
Toric  $ 104.8 32% 8% 8%
Multifocal  35.5 11% 20% 19%
Single-use sphere  71.7 22% 12% 15%
Non single-use sphere, other  119.1 35%  --%  --%
Total  $ 331.1 100% 7% 7%

Excluding the impact of the divestiture of Aime, "Non single-use sphere, other" would have grown 5% year over year and 5% year over year in constant currency.

  • Revenue by geography:
        Constant Currency
   (In millions)  % of CVI Revenue %chg %chg
   2Q14  2Q14 y/y y/y
Americas  $ 142.1 43% 4% 5%
EMEA  119.2 36% 14% 9%
Asia Pacific  69.8 21% 3% 9%
Total  $ 331.1 100% 7% 7%

Excluding the impact of the divestiture of Aime, Asia Pacific would have grown 12% year over year and 20% year over year in constant currency.

  • Selected revenue by material:
        Constant Currency
   (In millions)  % of CVI Revenue %chg %chg
   2Q14  2Q14 y/y y/y
         
Silicone hydrogel  $ 161.0 49% 21% 20%
Proclear®  $ 83.6 25% 8% 8%
  • Gross margin 65% compared with 67% in last year's second quarter. Gross margin was down year-over-year primarily due to planned costs associated with MyDay TM.

Second Quarter CooperSurgical GAAP Operating Highlights

  • Revenue $81.2 million, up 9% from last year's second quarter.  
  • Revenue by category:
  (In millions) % of CSI Revenue %chg
  2Q14 2Q14 y/y
Office and surgical procedures  $ 51.7 64% 4%
Fertility  29.5 36% 17%
Total  $ 81.2 100% 9%
  • Gross margin 65% compared with 65% in last year's second quarter. 

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 $1,685 - $1,725 $1,685 - $1,725
CVI $1,365 - $1,395 $1,365 - $1,395
CSI $320 - $330 $320 - $330
EPS    
GAAP $6.75 - $7.00 $6.78 - $7.00
Non-GAAP $6.75 - $7.00 $6.80 - $7.00

Guidance assumes constant currency as of June 5, 2014.

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