BD Announces Results for Fourth Fiscal Quarter and Full Year
- Reports record revenues for the quarter and year
- Fourth-quarter earnings per share from continuing operations increased 15% to 98 cents
- Full-year earnings per share from continuing operations, excluding specified items, increased 15% to $3.84
- Expects full fiscal year 2008 earnings per share from continuing operations, excluding specified items, to increase 10%-12%
FRANKLIN LAKES, N.J., Nov. 1 /PRNewswire-FirstCall/ -- BD (Becton, Dickinson and Company) (NYSE: BDX) today reported record quarterly revenues of $1.651 billion for the fourth fiscal quarter ended September 30, 2007, representing an increase of 13 percent over the prior year period. This quarter's growth rate reflects the favorable impact on all segments from foreign currency translation, which overall is estimated to account for 3 percentage points of the increase in quarterly revenues.
For the full fiscal year ended September 30, 2007, BD reported record revenues of $6.360 billion, representing an increase of 11 percent over the prior year, which reflects an overall estimated 3 percent favorable impact from foreign currency translation that affected all segments.
"We are pleased with our solid finish to another successful year during which BD exceeded its financial and operating goals," said Edward J. Ludwig, Chairman, President and Chief Executive Officer. "Our performance was strong across all three segments. We continue to invest in innovation while delivering double-digit earnings growth. Strong cash flow driven by operating margin expansion enables us to return value to shareholders through dividend increases and share repurchases. We are enthusiastic about our outlook for fiscal 2008."
Fourth Quarter Earnings and Analysis of Full Fiscal Year 2007 and 2006 Earnings
Reported diluted earnings per share from continuing operations of 98 cents for the fourth quarter increased by 15 percent over diluted earnings per share from continuing operations of 85 cents for the fourth fiscal quarter of 2006.
For the twelve-month period ending September 30, 2007, reported diluted earnings per share were $3.36. The following analysis (Table 1) of diluted earnings per share from continuing operations for the twelve-month periods ended September 30, 2007 and 2006 identifies specified items that affect the comparability of results between periods. As illustrated, diluted earnings per share from continuing operations, excluding specified items, of $3.84 for fiscal 2007 increased by 15 percent over diluted earnings per share from continuing operations, excluding specified items, of $3.34 for fiscal 2006.
(Table 1)
Twelve Months Ended
September 30,
FY2007 FY2006 % Change
Diluted EPS from Continuing Operations: $ 3.36 $ 3.18 6%
Specified Items:
In-Process Research and Development Charge(1) 0.48 0.21
Insurance Settlement(2) - (0.04)
Rounding - (0.01)
0.48 0.16
Diluted EPS from Continuing Operations
Excluding Specified Items: $ 3.84 $ 3.34 15%
(1) Represents the effect on diluted earnings per share from continuing
operations of the in-process research and development ("IPR&D")
charges recorded in fiscal 2007 primarily related to the TriPath
acquisition, and in fiscal 2006 related to the GeneOhm acquisition.
(2) Represents the effect on diluted earnings per share from continuing
operations in fiscal 2006 related to proceeds received from insurance
settlements associated with the Company's previously owned latex
glove business.
Segment Results
In the BD Medical segment, worldwide revenues for the quarter were $868 million, representing an increase of 11 percent from the prior year period. For the full fiscal year ended September 30, 2007, the BD Medical segment reported 10 percent revenue growth to $3.421 billion. Strong sales in the Pharmaceutical Systems unit continued to significantly contribute to the growth of the segment.
In the BD Diagnostics segment, worldwide revenues for the quarter were $498 million, representing an increase of 16 percent from the prior year's quarter. This growth includes $29 million of revenues from TriPath, a maker of innovative solutions to improve the clinical management of cancer, which was acquired at the end of the first quarter of fiscal 2007. For the full fiscal year ended September 30, 2007, the BD Diagnostics segment reported revenue growth of 11 percent to $1.905 billion, which includes $88 million of revenues from TriPath.
In the BD Biosciences segment, worldwide revenues for the quarter were $285 million, representing an increase of 14 percent from the prior year period. Sales of flow cytometry and bioimaging instruments, flow cytometry reagents, and advanced bioprocessing products contributed to growth. For the full fiscal year ended September 30, 2007, the BD Biosciences segment reported 13 percent revenue growth to $1.034 billion, resulting from continued strong sales of those same products.
Geographic Results
Fourth quarter revenues in the U.S. were $790 million, representing an increase of 12 percent over the prior year period. Revenues outside the U.S. were $861 million, representing an increase of 13 percent over the prior year period, and reflected an estimated 5 percent favorable impact from foreign currency translation.
For the full fiscal year ended September 30, 2007, revenues in the U.S. were $3.033 billion, representing an increase of 11 percent over the prior year period. Revenues outside of the U.S. were $3.327 billion, representing an increase of 11 percent over the prior year period, and reflected an estimated 5 percent favorable impact from foreign currency translation.
Fiscal 2008 Outlook for Full Year
The Company estimates that diluted earnings per share from continuing operations for the full fiscal year 2008 will increase approximately 10 to 12 percent over diluted earnings per share from continuing operations, excluding specified items, of $3.84 for the fiscal year 2007.
Conference Call Information
A conference call regarding BD's fourth fiscal quarter and full year results and its expectations for fiscal year 2008 will be broadcast live on BD's website, www.bd.com/investors, at 10:00 a.m. (ET) Thursday, November 1, 2007. The conference call will be available for replay through the close of business on November 8, 2007 on BD's website, www.bd.com/investors, or at 1- 800-475-6701 (domestic) and 1-320-365-3844 (international), access code 889224.
This news release contains certain non-GAAP financial measures. A reconciliation of these and other measures to the comparable GAAP measures is included in this release and in the attached financial tables.
About BD
BD, a leading global medical technology company that manufactures and sells medical devices, instrument systems and reagents, is dedicated to improving people's health throughout the world. BD is focused on improving drug therapy, enhancing the quality and speed of diagnosing infectious diseases, and advancing research and discovery of new drugs and vaccines. The Company's capabilities are instrumental in combating many of the world's most pressing diseases. Founded in 1897 and headquartered in Franklin Lakes, New Jersey, BD employs approximately 28,000 people in approximately 50 countries throughout the world. The Company serves healthcare institutions, life science researchers, clinical laboratories, industry and the general public. For more information, please visit www.bd.com.
This press release, including the section entitled "Fiscal 2008 Outlook for Full Year," contains certain estimates and other forward-looking statements (as defined under Federal securities laws) regarding BD's performance, including future revenues, earnings per share and income, or events or developments that BD expects to occur or anticipates occurring in the future. All such statements are based upon current expectations of BD and involve a number of business risks and uncertainties. Actual results could vary materially from anticipated results described, implied or projected in any forward-looking statement. With respect to forward-looking statements contained herein, factors that could cause actual results to vary materially from any forward-looking statement include, but are not limited to: competitive factors; pricing and market share pressures; changes in interest or foreign currency exchange rates; difficulties inherent in product development and delays in product introductions; changes in regional, national or foreign economic conditions; further increases in energy costs and their effect on, among other things, the cost of producing BD's products; fluctuations in costs and availability of raw materials and in BD's ability to maintain favorable supplier arrangements and relationships; uncertainties of litigation (as described in BD's filings with the Securities and Exchange Commission); the effects of potential pandemic diseases; changes in healthcare or other governmental regulation; and issuance of new or revised accounting standards, as well as other factors discussed in this press release and in BD's filings with the Securities and Exchange Commission. We do not intend to update any forward-looking statements to reflect events or circumstances after the date hereof except as required by applicable laws or regulations.
BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in thousands, except per-share data)
Three Months Ended September 30,
2007 2006 % Change
REVENUES $ 1,651,101 $ 1,462,616 12.9
Cost of products sold 807,377 709,038 13.9
Selling and administrative 399,525 378,252 5.6
Research and development 100,430 82,399 21.9
TOTAL OPERATING COSTS
AND EXPENSES 1,307,332 1,169,689 11.8
OPERATING INCOME 343,769 292,927 17.4
Interest expense (10,268) (14,056) (26.9)
Interest income 9,083 15,488 (41.4)
Other expense, net (4,334) (4,763) (9.0)
INCOME FROM CONTINUING
OPERATIONS BEFORE INCOME
TAXES 338,250 289,596 16.8
Income tax provision 89,142 72,716 22.6
INCOME FROM CONTINUING
OPERATIONS 249,108 216,880 14.9
INCOME/(LOSS) FROM DISCONTINUED
OPERATIONS NET OF INCOME TAX
PROVISION/(BENEFIT) OF $1,176
AND $(20,695), RESPECTIVELY 1,923 (42,901) NM
NET INCOME $ 251,031 $ 173,979 44.3
EARNINGS PER SHARE
Basic:
Income from continuing
operations $ 1.02 $ 0.88 15.9
Income/(loss) from discontinued
operations $ 0.01 $ (0.17) NM
Net income $ 1.03 $ 0.71 45.1
Diluted:
Income from continuing
operations $ 0.98 $ 0.85 15.3
Income/(loss) from discontinued
operations $ 0.01 $ (0.17) NM
Net income $ 0.99 $ 0.68 45.6
AVERAGE SHARES OUTSTANDING
Basic 243,841 245,522
Diluted 253,009 254,843
NM - Not Meaningful
BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in thousands, except per-share data)
Twelve Months Ended September 30,
2007 2006 % Change
REVENUES $ 6,359,708 $ 5,738,017 10.8
Cost of products sold 3,071,921 2,793,265 10.0
Selling and administrative 1,602,404 1,448,166 10.7
Research and development 360,050 301,872 19.3
Acquired in-process research and
development 122,133 53,300 NM
TOTAL OPERATING COSTS AND
EXPENSES 5,156,508 4,596,603 12.2
OPERATING INCOME 1,203,200 1,141,414 5.4
Interest expense (46,420) (66,046) (29.7)
Interest income 46,221 59,296 (22.1)
Other expense, net 944 (8,762) NM
INCOME FROM CONTINUING
OPERATIONS BEFORE INCOME
TAXES 1,203,945 1,125,902 6.9
Income tax provision 347,778 310,792 11.9
INCOME FROM CONTINUING
OPERATIONS 856,167 815,110 5.0
INCOME (LOSS) FROM DISCONTINUED
OPERATIONS NET OF INCOME TAX
PROVISION/(BENEFIT) OF $15,242
AND $(32,823), RESPECTIVELY 25,085 (62,830) NM
NET INCOME $ 881,252 $ 752,280 17.1
EARNINGS PER SHARE
Basic:
Income from continuing
operations $ 3.50 $ 3.30 6.1
Income (loss) from discontinued
operations $ 0.10 $ (0.25) NM
Net income (1) $ 3.60 $ 3.04 18.4
Diluted:
Income from continuing
operations $ 3.36 $ 3.18 5.7
Income (loss) from discontinued
operations $ 0.10 $ (0.24) NM
Net income (1) $ 3.46 $ 2.93 18.1
AVERAGE SHARES OUTSTANDING
Basic 244,929 247,067
Diluted 254,810 256,554
NM - Not Meaningful
(1) Total per share amounts may not add due to rounding.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
Twelve Months Ended September 30,
(Unaudited; Amounts in thousands, except per-share data)
2007
As TriPath Plasso Excluding
Reported IPR&D (1) IPR&D (1) Items
Operating Income $ 1,203,200 $ 114,739 $ 7,394 $ 1,325,333
as a % of revenues 18.9% 20.8%
Income taxes 347,778 - - 347,778
effective tax rate 28.9% - - 26.2%
Income from continuing
operations 856,167 114,739 7,394 978,300
as a % of revenues 13.5% 15.4%
Diluted earnings per
share
Income from continuing
operations $ 3.36 $ 0.45 $ 0.03 $ 3.84
(1) Represents the acquired in-process research and development charges of
$114,739 and $7,394 related to the TriPath and Plasso acquisitions,
respectively.
2006
As Insurance GeneOhm
Reported Settlement IPR&D Excluding
(1) (2) Items
Selling and
administrative $ 1,448,166 $ 17,000 $ - $ 1,465,166
as a % of revenues 25.2% 25.5%
Operating Income 1,141,414 (17,000) 53,300 1,177,714
as a % of revenues 19.9% 20.5%
Income taxes 310,792 (6,460) - 304,332
effective tax rate 27.6% 26.2%
Income from continuing
operations 815,110 (10,540) 53,300 857,870
as a % of revenues 14.2% 15.0%
Diluted earnings per
share
Income from continuing
operations (3) $ 3.18 $ (0.04) $ 0.21 $ 3.34
(1) Represents the effect in 2006 related to proceeds received from
insurance settlements in connection with the Company's previously owned
latex glove business.
(2) Represents the acquired in-process research and development charge of
$53,300 related to the GeneOhm acquisition.
(3) Total per share amounts may not add due to rounding.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY SEGMENT AND GEOGRAPHIC AREA
(Unaudited; Amounts in thousands)
Three Months Ended September 30,
2007 2006 % Change
BD MEDICAL
United States $ 392,166 $ 361,198 8.6
International 476,128 422,616 12.7
TOTAL $ 868,294 $ 783,814 10.8
BD DIAGNOSTICS
United States $ 272,743 $ 232,343 17.4
International 225,206 196,523 14.6
TOTAL $ 497,949 $ 428,866 16.1
BD BIOSCIENCES
United States $ 125,367 $ 110,319 13.6
International 159,491 139,617 14.2
TOTAL $ 284,858 $ 249,936 14.0
TOTAL REVENUES
United States $ 790,276 $ 703,860 12.3
International 860,825 758,756 13.5
TOTAL $ 1,651,101 $ 1,462,616 12.9
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY SEGMENT AND GEOGRAPHIC AREA
(Unaudited; Amounts in thousands)
Twelve Months Ended September 30,
2007 2006 % Change
BD MEDICAL
United States $ 1,538,308 $ 1,418,077 8.5
International 1,882,362 1,688,569 11.5
TOTAL $ 3,420,670 $ 3,106,646 10.1
BD DIAGNOSTICS
United States $ 1,054,388 $ 919,071 14.7
International 850,717 796,019 6.9
TOTAL $ 1,905,105 $ 1,715,090 11.1
BD BIOSCIENCES
United States $ 440,309 $ 402,196 9.5
International 593,624 514,085 15.5
TOTAL $ 1,033,933 $ 916,281 12.8
TOTAL REVENUES
United States $ 3,033,005 $ 2,739,344 10.7
International 3,326,703 2,998,673 10.9
TOTAL $ 6,359,708 $ 5,738,017 10.8
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Three Months Ended September 30,
(Unaudited; Amounts in thousands)
United States
2007 2006 % Change
BD MEDICAL
Medical Surgical Systems $ 243,427 $ 231,932 5.0
Diabetes Care 98,384 90,789 8.4
Pharmaceutical Systems 44,376 32,856 35.1
Ophthalmic Systems 5,979 5,621 6.4
TOTAL $ 392,166 $ 361,198 8.6
BD DIAGNOSTICS
Preanalytical Systems $ 138,203 $ 131,838 4.8
Diagnostic Systems 134,540 100,505 33.9
TOTAL $ 272,743 $ 232,343 17.4
BD BIOSCIENCES
Discovery Labware $ 40,234 $ 37,377 7.6
Immunocytometry Systems 64,232 52,679 21.9
Pharmingen 20,901 20,263 3.1
TOTAL $ 125,367 $ 110,319 13.6
TOTAL UNITED STATES $ 790,276 $ 703,860 12.3
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Three Months Ended September 30, (continued)
(Unaudited; Amounts in thousands)
International
% Change
-------------------------
FX FX
2007 2006 Reported Neutral Impact
BD MEDICAL
Medical Surgical Systems $ 233,366 $ 215,951 8.1 2.0 6.1
Diabetes Care 82,851 75,337 10.0 4.5 5.5
Pharmaceutical Systems 149,023 121,886 22.3 15.9 6.4
Ophthalmic Systems 10,888 9,442 15.3 8.9 6.4
TOTAL $ 476,128 $ 422,616 12.7 6.6 6.1
BD DIAGNOSTICS
Preanalytical Systems $ 122,337 $ 107,399 13.9 7.5 6.4
Diagnostic Systems 102,869 89,124 15.4 10.3 5.1
TOTAL $ 225,206 $ 196,523 14.6 8.8 5.8
BD BIOSCIENCES
Discovery Labware $ 32,976 $ 30,601 7.8 3.1 4.7
Immunocytometry Systems 105,403 89,768 17.4 12.6 4.8
Pharmingen 21,112 19,248 9.7 4.6 5.1
TOTAL $ 159,491 $ 139,617 14.2 9.4 4.8
TOTAL INTERNATIONAL $ 860,825 $ 758,756 13.5 7.7 5.8
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Three Months Ended September 30, (continued)
(Unaudited; Amounts in thousands)
Total
% Change
-------------------------
FX FX
2007 2006 Reported Neutral Impact
BD MEDICAL
Medical Surgical Systems $ 476,793 $ 447,883 6.5 3.5 3.0
Diabetes Care 181,235 166,126 9.1 6.6 2.5
Pharmaceutical Systems 193,399 154,742 25.0 20.0 5.0
Ophthalmic Systems 16,867 15,063 12.0 7.9 4.1
TOTAL $ 868,294 783,814 10.8 7.5 3.3
BD DIAGNOSTICS
Preanalytical Systems $ 260,540 $ 239,237 8.9 6.0 2.9
Diagnostic Systems 237,409 189,629 25.2 22.8 2.4
TOTAL $ 497,949 428,866 16.1 13.4 2.7
BD BIOSCIENCES
Discovery Labware $ 73,210 $ 67,978 7.7 5.6 2.1
Immunocytometry Systems 169,635 142,447 19.1 16.0 3.1
Pharmingen 42,013 39,511 6.3 3.8 2.5
TOTAL $ 284,858 249,936 14.0 11.3 2.7
TOTAL REVENUES $ 1,651,101 $ 1,462,616 12.9 9.9 3.0
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Twelve Months Ended September 30,
(Unaudited; Amounts in thousands)
United States
2007 2006 % Change
BD MEDICAL
Medical Surgical
Systems $ 954,971 $ 904,371 5.6
Diabetes Care 378,639 363,298 4.2
Pharmaceutical
Systems 180,337 127,896 41.0
Ophthalmic Systems 24,361 22,512 8.2
TOTAL $ 1,538,308 $ 1,418,077 8.5
BD DIAGNOSTICS
Preanalytical
Systems $ 541,415 $ 511,948 5.8
Diagnostic Systems 512,973 407,123 26.0
TOTAL $ 1,054,388 $ 919,071 14.7
BD BIOSCIENCES
Discovery Labware $ 149,939 $ 138,205 8.5
Immunocytometry
Systems 210,916 186,369 13.2
Pharmingen 79,454 77,622 2.4
TOTAL $ 440,309 $ 402,196 9.5
TOTAL UNITED STATES $ 3,033,005 $ 2,739,344 10.7
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Twelve Months Ended September 30, (continued)
(Unaudited; Amounts in thousands)
International
% Change
-------------------------
FX FX
2007 2006 Reported Neutral Impact
BD MEDICAL
Medical Surgical
Systems $ 909,109 $ 844,372 7.7 2.8 4.9
Diabetes Care 317,342 293,235 8.2 3.3 4.9
Pharmaceutical
Systems 611,563 511,798 19.5 12.5 7.0
Ophthalmic Systems 44,348 39,164 13.2 6.7 6.5
TOTAL $ 1,882,362 $ 1,688,569 11.5 5.9 5.6
BD DIAGNOSTICS
Preanalytical
Systems $ 465,276 $ 415,811 11.9 6.2 5.7
Diagnostic Systems 385,441 380,208 1.4 (2.5) 3.9
TOTAL $ 850,717 $ 796,019 6.9 2.0 4.9
BD BIOSCIENCES
Discovery Labware $ 127,963 $ 117,880 8.6 4.4 4.2
Immunocytometry
Systems 377,485 316,478 19.3 14.2 5.1
Pharmingen 88,176 79,727 10.6 5.8 4.8
TOTAL $ 593,624 $ 514,085 15.5 10.7 4.8
TOTAL INTERNATIONAL $ 3,326,703 $ 2,998,673 10.9 5.7 5.2
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Twelve Months Ended September 30, (continued)
(Unaudited; Amounts in thousands)
Total
% Change
-------------------------
FX FX
2007 2006 Reported Neutral Impact
BD MEDICAL
Medical Surgical
Systems $ 1,864,080 $ 1,748,743 6.6 4.2 2.4
Diabetes Care 695,981 656,533 6.0 3.8 2.2
Pharmaceutical
Systems 791,900 639,694 23.8 18.2 5.6
Ophthalmic Systems 68,709 61,676 11.4 7.3 4.1
TOTAL $ 3,420,670 $ 3,106,646 10.1 7.1 3.0
BD DIAGNOSTICS
Preanalytical
Systems $ 1,006,691 $ 927,759 8.5 5.9 2.6
Diagnostic Systems 898,414 787,331 14.1 12.2 1.9
TOTAL $ 1,905,105 $ 1,715,090 11.1 8.8 2.3
BD BIOSCIENCES
Discovery Labware $ 277,902 $ 256,085 8.5 6.6 1.9
Immunocytometry
Systems 588,401 502,847 17.0 13.8 3.2
Pharmingen 167,630 157,349 6.5 4.1 2.4
TOTAL $ 1,033,933 $ 916,281 12.8 10.1 2.7
TOTAL REVENUES $ 6,359,708 $ 5,738,017 10.8 8.1 2.7
SOURCE BD (Becton Dickinson and Company)
Released November 1, 2007