CooperCompanies Proclaims Fourth Quarter and Full Yr 2020 Outcomes NYSE:COO

SAN RAMON, Calif., Dec. 03, 2020 (GLOBE NEWSWIRE) — CooperCompanies (NYSE: COO) immediately introduced monetary outcomes for its fiscal fourth quarter and full yr ended October 31, 2020.

• Fourth quarter income decreased 1% year-over-year to $681.6 million. CooperVision (CVI) income down 1% to $506.Three million, and CooperSurgical (CSI) income down 4% to $175.Three million.
• Fourth quarter GAAP diluted earnings per share (EPS) $1.64, down 78 cents or 32% from final yr’s fourth quarter.
• Fourth quarter Non-GAAP diluted EPS $3.16, down 14 cents or 4% from final yr’s fourth quarter. See “Reconciliation of Chosen GAAP Outcomes to Non-GAAP Outcomes” under.

Commenting on the outcomes, Al White, Cooper’s President and CEO mentioned, “This was a stable quarter the place we took market share globally in each contact lenses and fertility. We’re persevering with to have success with our every day silicone hydrogel portfolio, with distinctive merchandise like Biofinity Energys^®, and with our myopia administration program which incorporates MiSight^® and our Ortho Ok lenses.”

Fourth Quarter Working Outcomes

• Income $681.6 million, down 1% from final yr’s fourth quarter, down 3% in fixed forex.
• Gross margin 62% down from 66% in final yr’s fourth quarter. On a non-GAAP foundation, gross margin was 68%, up from 67% final yr pushed by enhancements at each CooperVision and CooperSurgical.
• Working margin 15% in contrast with 21% in final yr’s fourth quarter. On a non-GAAP foundation, working margin was 27%, down from 28% final yr pushed primarily by deliberate MiSight^® investments.
• Curiosity expense $6.7 million in contrast with $14.6 million in final yr’s fourth quarter pushed by decrease rates of interest and decrease common debt.
• Whole debt excellent on the finish of the quarter was $1,793.2 million with quarter-end cash and cash equivalents of $115.9 million. Adjusted leverage ratio (internet debt over adjusted EBITDA) of two.15x.
• Cash offered by operations $218.Three million offset by capital expenditures $107.Zero million resulted in free cash movement of $111.Three million.

Fourth Quarter CooperVision (CVI) Income

• Income $506.Three million, down 1% from final yr’s fourth quarter, down 3% in fixed forex.
• Income by class:

Fourth Quarter CooperSurgical (CSI) Income

• Income $175.Three million, down 4% from final yr’s fourth quarter, down 4% in fixed forex.
• Income by class:

Fiscal Yr 2020 Working Outcomes

• Income $2,430.9 million, down 8% from fiscal 2019, down 8% fixed forex.
• CVI income $1,843.Zero million, down 7% from fiscal 2019, down 6% fixed forex, and CSI income $587.9 million, down 14% from fiscal 2019, down 13% fixed forex.
• Gross margin 63% in contrast with 66% in fiscal 2019. Non-GAAP gross margin 67% according to 67% in fiscal 2019.
• Working margin 13% in contrast with 21% in fiscal 2019. Non-GAAP working margin 23% down from 28% in fiscal 2019.
• GAAP diluted EPS $4.81, down 48% from fiscal 2019. Non-GAAP diluted EPS $9.64, down 22% from fiscal 2019.
• Cash offered by operations $486.6 million offset by capital expenditures of $310.Four million resulted in free cash movement of $176.2 million.

Steerage

Given the unsure scope and length of the continuing COVID-19 pandemic, the corporate is unable to supply formal monetary steering for fiscal yr 2021. Fiscal first quarter 2021 steering is summarized as follows:

• Fiscal first quarter 2021 whole income $642 – $670 million (down 3% to up 2% fixed forex)

•  CVI income $482 – $502 million (down 3% to up 1% fixed forex)

•  CSI income $160 – $168 million (down 1% to up 4% fixed forex)

• Fiscal first quarter 2021 non-GAAP diluted earnings per share $2.66 – $2.86

Non-GAAP diluted earnings per share steering excludes amortization and impairment of intangible belongings, and different distinctive or uncommon earnings or beneficial properties and expenses or bills together with acquisition, integration and manufacturing associated prices which we may incur as a part of our persevering with operations.

With respect to the Firm’s steering expectations, the Firm has not reconciled non-GAAP diluted earnings per share steering to GAAP diluted earnings per share as a result of inherent issue in forecasting acquisition-related, integration and restructuring expenses and bills, that are reconciling gadgets between the non-GAAP and GAAP measure. As a result of unknown impact, timing and potential significance of such expenses and bills that affect GAAP diluted earnings per share, the Firm shouldn’t be capable of present such steering.

Reconciliation of Chosen GAAP Outcomes to Non-GAAP Outcomes

To complement our monetary outcomes and steering offered on a GAAP foundation, we use non-GAAP measures that we imagine are useful in understanding our outcomes. The non-GAAP measures exclude prices which we typically wouldn’t have in any other case incurred within the intervals offered as part of our persevering with operations. Our non-GAAP monetary outcomes and steering aren’t meant to be thought-about in isolation or as an alternative choice to comparable GAAP measures and ought to be learn solely together with our consolidated monetary statements ready in accordance with GAAP. Administration makes use of supplemental non-GAAP monetary measures internally to grasp, handle and consider our enterprise and make working choices. These non-GAAP measures are among the many components administration makes use of in planning and forecasting for future intervals. We imagine it’s helpful for buyers to grasp the consequences of these things on our consolidated working outcomes. Our non-GAAP monetary measures may embody the next changes, and as acceptable, the associated earnings tax results and modifications in earnings attributable to noncontrolling pursuits:

• We exclude the impact of amortization and impairment of intangible belongings from our non-GAAP monetary outcomes. Amortization of intangible belongings will recur in future intervals; nevertheless, the quantities are affected by the timing and dimension of our acquisitions. Impairment of intangible belongings is a non-recurring value.
• We exclude the impact of acquisition and integration bills and the impact of restructuring bills from our non-GAAP monetary outcomes. Such bills typically diminish over time with respect to previous acquisitions; nevertheless, we typically will incur comparable bills in reference to any future acquisitions. We incurred important bills in reference to our acquisitions and in addition incurred sure different working bills or earnings, which we typically wouldn’t have in any other case incurred within the intervals offered as part of our persevering with operations. Acquisition and integration bills embody direct results of acquisition accounting, corresponding to stock honest value step-up and gadgets corresponding to personnel prices for transitional workers, different acquired worker associated prices and integration associated skilled companies. Restructuring bills embody gadgets corresponding to worker severance, product rationalization, facility and different exit prices.
• We exclude different distinctive or uncommon expenses or bills and beneficial properties or earnings. These may be variable and tough to foretell, corresponding to COVID associated expenses, sure litigation bills and product transition prices, and aren’t what we think about as typical of our persevering with operations. Buyers ought to think about non-GAAP monetary measures along with, and never as replacements for, or superior to, measures of economic efficiency ready in accordance with GAAP.
• We report income progress utilizing the non-GAAP monetary measure of fixed forex in order that income outcomes may be evaluated excluding the impact of international forex price fluctuations. To current this data, present interval income for entities reporting in currencies apart from the US greenback are transformed into United States {dollars} on the common international exchange charges for the corresponding interval within the prior yr.
• We outline the non-GAAP measure of free cash movement as cash offered by working actions much less capital expenditures. We imagine free cash movement is beneficial for buyers as an extra measure of liquidity as a result of it represents cash that’s out there to develop the enterprise, make strategic acquisitions, repay debt, buyback frequent stock or to fund dividend funds. Administration makes use of free cash movement internally to grasp, handle, make working choices and consider our enterprise. As well as, we use free cash movement to assist plan and forecast future intervals.
• We exclude unrealized and realized beneficial properties and losses on our minority investments as we don’t imagine that these elements of earnings or expense have a direct correlation to our ongoing operations.

Convention Name and Webcast

The Firm will host a convention name immediately at 5:00 PM ET to debate its fiscal fourth quarter and full yr 2020 outcomes and present company developments. The stay dial-in quantity for the decision is 855-643-4430 (U.S.) / 707-294-1332 (Worldwide). The participant passcode for the decision is “Cooper”. A simultaneous webcast of the decision will likely be out there via the “Investor Relations” part of the CooperCompanies web site at http://investor.coopercos.com and a transcript of the decision will likely be archived on this website for no less than 12 months. A recording of the decision will likely be out there starting at 8:00 PM ET on December 3, 2020 via December 10, 2020. To listen to this recording, dial 855-859-2056 (U.S.) / 404-537-3406 (Worldwide) and enter code 5599209.

About CooperCompanies

CooperCompanies (“Cooper”) is a world medical machine firm publicly traded on the NYSE (NYSE: COO). Cooper operates via two enterprise models, CooperVision and CooperSurgical. CooperVision brings a refreshing perspective on imaginative and prescient care with a dedication to creating a variety of high-quality merchandise for contact lens wearers and offering targeted practitioner help. CooperSurgical is dedicated to advancing the well being of girls, infants and households with its diversified portfolio of services and products specializing in medical units and fertility & genomics. Headquartered in San Ramon, Calif., Cooper has a workforce of greater than 12,00Zero with merchandise offered in over 100 nations. For extra data, please go to www.coopercos.com.

Ahead-Wanting Statements

This earnings launch comprises “forward-looking statements” as outlined by the Non-public Securities Litigation Reform Act of 1995. Statements regarding steering, plans, prospects, objectives, methods, future actions, occasions or efficiency and different statements of that are apart from statements of historic reality, together with our Fiscal First Quarter 2021 Steerage and all statements relating to the anticipated affect of the continuing COVID-19 pandemic on our enterprise are ahead wanting. As well as, all statements relating to anticipated progress in our internet gross sales and anticipated market circumstances, deliberate product launches and anticipated outcomes of operations are forward-looking. To establish these statements search for phrases like “believes,” “outlook,” “possible,” “expects,” “may,” “will,” “ought to,” “may,” “seeks,” “intends,” “plans,” “estimates” or “anticipates” and comparable phrases or phrases. Ahead-looking statements essentially depend upon assumptions, information or strategies that may be incorrect or imprecise and are topic to dangers and uncertainties.

Among the many components that might trigger our precise outcomes and future actions to vary materially from these described in forward-looking statements are: the consequences of the continuing COVID-19 pandemic and associated financial disruptions and new governmental laws on our enterprise, outcomes of operations, cash movement and monetary situation, together with however not restricted to the potential affect on our gross sales, operations and provide chain; opposed modifications within the world or regional normal enterprise, political and financial circumstances, together with the affect of constant uncertainty and instability of sure nations, that might adversely have an effect on our world markets, and the potential opposed financial affect and associated uncertainty brought on by these things, together with however not restricted to, the continuing COVID-19 pandemic, and escalating world commerce obstacles together with further tariffs, by nations corresponding to China; opposed modifications in world political and financial circumstances, and associated uncertainty brought on by the UK’s (UK) withdrawal from the European Union (EU) and its potential affect on, amongst different issues, the motion of products and supplies in our provide chain, further regulatory approvals and necessities, and elevated tariffs and duties; modifications in tax legal guidelines or their interpretation and modifications in statutory tax charges, together with however not restricted to, the U.S., the UK and different nations may have an effect on our taxation of earnings acknowledged in international jurisdictions and/or negatively affect our efficient tax price; international forex exchange price and rate of interest fluctuations together with the chance of fluctuations within the value of foreign exchange or rates of interest that might lower our internet gross sales and earnings; our current and future variable price indebtedness and related curiosity expense is impacted by price will increase, which may adversely have an effect on our monetary well being or restrict our skill to borrow further funds; acquisition-related opposed results together with the failure to efficiently receive the anticipated internet gross sales, margins and earnings advantages of acquisitions, integration delays or prices and the requirement to document important changes to the preliminary honest value of belongings acquired and liabilities assumed throughout the measurement interval, required regulatory approvals for an acquisition not being obtained or being delayed or topic to circumstances that aren’t anticipated, opposed impacts of modifications to accounting controls and reporting procedures, contingent liabilities or indemnification obligations, elevated leverage and lack of entry to out there financing (together with financing for the acquisition or refinancing of debt owed by us on a well timed foundation and on affordable phrases); compliance prices and potential legal responsibility in reference to U.S. and international legal guidelines and well being care laws pertaining to privateness and safety of non-public data, corresponding to HIPAA and the California Shopper Privateness Act (CCPA) within the U.S. and the General Knowledge Safety Regulation (GDPR) necessities in Europe, together with however not restricted to these ensuing from information safety breaches; a significant disruption within the operations of our manufacturing, accounting and monetary reporting, analysis and improvement, distribution services or uncooked materials provide chain as a result of ongoing COVID-19 pandemic, integration of acquisitions, man-made or pure disasters, cybersecurity incidents or different causes; a significant disruption within the operations of our manufacturing, accounting and monetary reporting, analysis and improvement or distribution services attributable to technological issues, together with any associated to our data programs upkeep, enhancements or new system deployments, integrations or upgrades; market consolidation of enormous clients globally via mergers or acquisitions leading to a bigger proportion or focus of our enterprise being derived from fewer clients; disruptions in provides of uncooked supplies, significantly elements used to fabricate our silicone hydrogel lenses; new U.S. and international authorities legal guidelines and laws, and modifications in current legal guidelines, laws and enforcement steering, which have an effect on areas of our operations together with, however not restricted to, these affecting the well being care trade together with the contact lens trade particularly and the medical machine or pharmaceutical industries typically, together with however not restricted to the MDR and the EU In Vitro Diagnostic Medical Units Regulation; authorized prices, insurance coverage bills, settlement prices and the chance of an opposed resolution, prohibitive injunction or settlement associated to product legal responsibility, patent infringement or different litigation; limitations on gross sales following product introductions attributable to poor market acceptance; new rivals, product improvements or applied sciences, together with however not restricted to, technological advances by rivals, new merchandise and patents attained by rivals, and rivals’ growth via acquisitions; decreased gross sales, lack of clients and prices and bills associated to product recollects and warning letters; failure to obtain, or delays in receiving, regulatory approvals for merchandise; failure of our clients and finish customers to acquire enough protection and reimbursement from third-party payors for our services and products; the requirement to supply for a major legal responsibility or to write down off, or speed up depreciation on, a major asset, together with goodwill, different intangible belongings and idle manufacturing services and gear; the success of our analysis and improvement actions and different start-up initiatives; dilution to earnings per share from acquisitions or issuing stock; affect and prices incurred from modifications in accounting requirements and insurance policies; environmental dangers, together with rising environmental laws and the broader impacts of local weather change; and different occasions described in our Securities and Alternate Fee filings, together with the “Business”, “Risk Factors” and “Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations” sections within the Firm’s Annual Report on Type 10-Ok for the fiscal yr ended October 31, 2019, as such Danger Components may be up to date in quarterly filings.

We warning buyers that forward-looking statements mirror our evaluation solely on their acknowledged date. We disclaim any intent to replace them besides as required by regulation.

Contact:

Kim Duncan
Vice President, Investor Relations and Danger Administration
925-460-3663
ir@cooperco.com

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THE COOPER COMPANIES, INC. AND SUBSIDIARIES
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