The Cooper Companies Announces Second Quarter 2013 Results

PLEASANTON, Calif., June 6, 2013 (GLOBE NEWSWIRE) -- The Cooper Companies, Inc. (NYSE:COO) today announced financial results for the fiscal second quarter ended April 30, 2013.
  • Revenue increased 11% year-over-year to $384.0 million. CooperVision (CVI) revenue up 7% to $309.3 million, up 11% in constant currency, and CooperSurgical (CSI) revenue up 32% to $74.7 million.  
  • GAAP earnings per share (EPS) $1.52, up 40 cents or 36% from last year's second quarter.  
  • Non-GAAP EPS $1.50, up 38 cents or 34% from last year's second quarter. See "Reconciliation of Non-GAAP EPS to GAAP EPS" below.   
  • Second quarter free cash flow $77.4 million.

Commenting on the results, Robert S. Weiss, Cooper's president and chief executive officer said, "I am enthused by our performance as we continue executing on our long-range strategies that lead to gaining market share and improving our operating margin. Our silicone hydrogel family of lenses continues to show strong growth and we recently announced the launch of MyDay , our branded single-use silicone hydrogel lens, with a goal of continuing this momentum for many years to come."

Second Quarter GAAP Operating Highlights
  • Revenue $384.0 million, up 11% from last year's second quarter, 15% in constant currency.   
  • Gross margin 66% compared with 64% in last year's second quarter. The increase was primarily the result of a lower royalty payment on silicone hydrogel lens sales, product mix, and increased manufacturing efficiencies, partially offset by lower revenue due to currency, primarily the Yen.   
  • Operating margin 21% compared with 19% in last year's second quarter. The increase was the result of higher gross margins.  
  • Depreciation $23.4 million, up 9% from last year's second quarter. Amortization $7.5 million, up 43% from last year's second quarter, primarily related to intangible assets from the acquisition of Origio in July 2012.  
  • Total debt decreased $87.5 million in the quarter to $320.5 million. Interest expense $2.4 million compared with $3.1 million in last year's second quarter.  
  • Cash provided by operations $114.9 million, capital expenditures $38.2 million and insurance recovery of $0.7 million resulted in free cash flow $77.4 million. 

Second Quarter CooperVision GAAP Operating Highlights
  • Revenue $309.3 million, up 7% from last year's second quarter, 11% in constant currency.  
  • Revenue by category:
        Constant Currency
  (In millions) % of CVI Revenue %chg %chg
  2Q13 2Q13 y/y y/y
Toric  $ 96.7 31% 8% 10%
Multifocal  29.7 10% 33% 34%
Single-use sphere  63.7 21% 2% 11%
Non single-use sphere, other  119.2 38% 5% 8%
Total  $ 309.3 100% 7% 11%
  • Revenue by geography:
        Constant Currency
   (In millions)  % of CVI Revenue %chg %chg
   2Q13  2Q13 y/y y/y
Americas  $ 136.5 44% 12% 12%
EMEA  104.8 34% 7% 8%
Asia Pacific  68.0 22% --% 13%
Total  $ 309.3 100% 7% 11%
  • Selected revenue by material:
        Constant Currency
   (In millions)  % of CVI Revenue %chg %chg
   2Q13  2Q13 y/y y/y
         
Silicone hydrogel  $ 133.5 43% 29% 31%
Proclear®  $ 77.3 25% 8% 11%
  • Gross margin 67% compared with 63% in last year's second quarter. The increase was primarily the result of a lower royalty payment on silicone hydrogel sales, product mix, and increased manufacturing efficiencies, partially offset by lower revenue due to currency, primarily the Yen.

Second Quarter CooperSurgical GAAP Operating Highlights
  • Revenue $74.7 million, up 32% from last year's second quarter, driven by the acquisition of Origio in July 2012.   
  • Revenue by category:
  (In millions) % of CSI Revenue %chg
  2Q13 2Q13 y/y
Office, other  $ 28.7 38% -6%
Surgical procedures  21.3 29% -3%
Fertility  24.7 33% 527%
Total  $ 74.7 100% 32%
  • Gross margin 65% compared with 68% in last year's second quarter. The decrease was primarily the result of lower margins associated with the acquisition of Origio.

2013 Guidance

The Company revises its full year fiscal 2013 guidance. Guidance is summarized as follows:
  FY13 Guidance FY13 Guidance
  Old New
Revenues (In millions)    
Total $1,575 - $1,625 $1,575 - $1,605
CVI $1,260 - $1,290 $1,260 - $1,280
CSI $315 - $335 $315 - $325
EPS    
GAAP $6.22 - $6.37 $6.42 - $6.52
Non-GAAP $5.95 - $6.10 $6.15 - $6.25
Free Cash Flow (In millions) $170 - $200 $170 - $200

Guidance assumes constant currency at the date of issuance and excludes the financial impact for the proposed sale of Aime announced May 31, 2013.

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