BD Announces Results for 2013 First Fiscal Quarter
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For best results when printing this announcement, please click on the link below: http://pdf.reuters.com/pdfnews/pdfnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20130205:nPnNY53006 FRANKLIN LAKES, N.J., Feb. 5, 2013 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly revenues of $1.90 billion for the first fiscal quarter ended December 31, 2012, representing an increase of 3.7 percent from the prior-year period, or 5.2 percent on a foreign currency-neutral basis. "We are very pleased with our start to fiscal year 2013," said Vincent A. Forlenza, Chairman, Chief Executive Officer and President. "After two years of significant investments in our business, we are starting to see notable results. We are growing revenues across our three segments, driving margin expansion and delivering a higher quality of earnings. Our positive first quarter results give us the confidence to raise the bottom end of our guidance range on revenues and earnings per share." Company Completes Acquisition of Safety Syringes, Inc. On December 24, 2012, the Company completed its acquisition of Safety Syringes, Inc., or "SSI", a privately held California-based company that specializes in the development of anti-needlestick devices for prefilled syringes. SSI will be reported in the BD Medical - Pharmaceutical Systems unit. First Quarter Earnings Reported diluted earnings per share from continuing operations for the first quarter were $1.35, compared with $1.14 in the prior-year period, representing an 18.4 percent increase. On a foreign currency-neutral basis, diluted earnings per share from continuing operations for the first quarter increased by 15.8 percent. Reported diluted earnings per share from continuing operations were aided in part by the benefit of an early flu season and favorable comparisons to the prior-year period. Segment Results In the BD Medical segment, worldwide revenues for the quarter were $983 million, representing an increase of 3.5 percent compared with the prior-year period, or an increase of 5.1 percent on a foreign currency-neutral basis. The segment's revenue growth reflects strong sales in the Diabetes Care unit, which partially benefitted from a favorable comparison due to lower international sales in the prior-year period. Revenues also reflect strong international sales of safety-engineered products, as well as solid sales in the Medical Surgical Systems and Pharmaceutical Systems units. In the BD Diagnostics segment, worldwide revenues for the quarter were $652 million, representing an increase of 5.0 percent compared with the prior-year period, or 6.1 percent on a foreign currency-neutral basis. The segment's growth was primarily driven by international expansion, a favorable comparison to the prior-year period in the Preanalytical Systems unit and an early flu season. In the BD Biosciences segment, worldwide revenues for the quarter were $265 million, representing an increase of 1.7 percent compared with the prior-year period, or an increase of 3.3 percent on a foreign currency-neutral basis. Segment revenue growth was driven by solid instrument placements in the U.S., as well as a benefit from a favorable comparison versus the prior-year period. Prior-year results reflected reduced U.S. research funding and lower demand for high-end instruments. Geographic Results First quarter revenues in the U.S. of $830 million represent an increase of 3.0 percent over the prior-year period. Revenues outside of the U.S. were $1.07 billion, representing an increase of 4.3 percent compared with the prior-year period, or an increase of 7.0 percent on a foreign currency-neutral basis. International revenues reflected continued strength in emerging markets and strong sales of safety-engineered products. Fiscal 2013 Outlook for Full Year The Company is raising the bottom end of its previously communicated revenue growth guidance for the year of 3.5 to 4.5 percent to 4.0 to 4.5 percent on a foreign currency-neutral basis. Reported revenue growth for the full fiscal year 2013 is expected to be between 3.5 and 4.0 percent. Reported diluted earnings per share from continuing operations for fiscal year 2013 is expected to be between $5.69 and $5.72, representing growth of 6.0 to 6.5 percent over adjusted 2012 diluted earnings per share of $5.37 after excluding the pension settlement charge in 2012. On a foreign currency-neutral basis, diluted earnings per share from continuing operations are expected to grow 7.5 to 8.0 percent over 2012 adjusted diluted earnings per share, or 10.5 to 11.0 percent, excluding the estimated impact of the medical device tax that went into effect last month under the U.S. healthcare reform law. In line with its previously disclosed guidance, the Company plans to repurchase, subject to market conditions, $500 million of its common stock in fiscal year 2013. Conference Call Information A conference call regarding BD's first quarter results and its expectations for the full fiscal year 2013 will be broadcast live on BD's website, www.bd.com/investors, along with related slides, at 8:00 a.m. (ET) Tuesday, February 5, 2013. The conference call will be available for replay on BD's website, www.bd.com/investors, or at 1-800-585-8367 (domestic) and 1-404-537-3406 (international) through the close of business on Tuesday, February 12, 2013, access code 87420149. Non-GAAP Financial Measures This news release contains certain non-GAAP financial measures. Reconciliations of these and other non-GAAP measures to the comparable GAAP measures are included in the attached financial tables. About BD BD is a leading global medical technology company that develops, manufactures and sells medical devices, instrument systems and reagents. The Company is dedicated to improving people's health throughout the world. BD is focused on improving drug delivery, enhancing the quality and speed of diagnosing infectious diseases and cancers, and advancing research, discovery and production of new drugs and vaccines. BD'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 nearly 30,000 associates in more than 50 countries throughout the world. The Company serves healthcare institutions, life science researchers, clinical laboratories, the pharmaceutical industry and the general public. For more information, please visit www.bd.com. This press release, including the section entitled "Fiscal 2013 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 and earnings per share. 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, a number of factors could cause actual results to vary materially from any forward-looking statement. These factors include, but are not limited to: potential cuts in healthcare spending by the U.S. government as part of deficit reduction measures, including "sequestration", which could result in reduced demand for our product or downward pricing pressure; the unknown consequences of healthcare reform in the United States, including the impact of the reduction in Medicare and Medicaid payments to hospitals, pharmaceutical companies and other customers, which could reduce demand for our products and increase downward pricing pressure; adverse changes in regional, national or foreign economic conditions, including any impact that may result from the current global economic conditions on our ability to access credit markets and finance our operations, the demand for our products and services as a result of reduced government funding, lower utilization rates or otherwise, or our suppliers' ability to provide products needed for our operations; changes in interest or foreign currency exchange rates; our ability to successfully integrate any businesses we acquire; competitive factors; pricing and market share pressures; difficulties inherent in product development and delays in product introductions; 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; new or changing laws impacting our business or changes in enforcement practices with respect to such laws; uncertainties of litigation (as described in BD's filings with the Securities and Exchange Commission); future healthcare reform, including changes in government pricing and reimbursement policies or other cost containment reforms; the effects of potential pandemic diseases; and issuance of new or revised accounting standards, as well as other factors discussed 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. Contact: Monique N. Dolecki, Investor Relations - 201-847-5453 Colleen T. White, Corporate Communications - 201-847-5369 BECTON DICKINSON AND COMPANY CONSOLIDATED INCOME STATEMENTS (Unaudited; Amounts in thousands, except per share data) Three Months Ended December 31, 2012 2011 % Change REVENUES $ 1,900,192 $ 1,831,720 3.7 Cost of products sold 894,063 900,465 (0.7) Selling and administrative 495,878 482,271 2.8 Research and development 118,162 112,227 5.3 TOTAL OPERATING COSTS AND EXPENSES 1,508,103 1,494,963 0.9 OPERATING INCOME 392,089 336,757 16.4 Interest income 7,922 15,448 (48.7) Interest expense (35,029) (29,378) 19.2 Other income (expense), net 714 (385) NM INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 365,696 322,442 13.4 Income tax provision 95,447 73,898 29.2 INCOME FROM CONTINUING OPERATIONS 270,249 248,544 8.7 INCOME FROM DISCONTINUED OPERATIONS NET OF INCOME TAX PROVISION OF $216,336 AND $7,327, RESPECTIVELY 355,187 14,441 NM NET INCOME $ 625,436 $ 262,985 NM EARNINGS PER SHARE Basic: Income from continuing operations $ 1.38 $ 1.16 19.0 Income from discontinued operations $ 1.81 $ 0.07 NM Net income (1) $ 3.18 $ 1.23 NM Diluted: Income from continuing operations $ 1.35 $ 1.14 18.4 Income from discontinued operations $ 1.78 $ 0.07 NM Net income $ 3.13 $ 1.21 NM AVERAGE SHARES OUTSTANDING Basic 196,427 214,300 Diluted 199,570 217,634 NM - Not Meaningful (1) 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 December 31, 2012 2011 % Change BD MEDICAL United States $ 425,366 $ 414,669 2.6 International 558,007 535,728 4.2 TOTAL $ 983,373 $ 950,397 3.5 BD DIAGNOSTICS United States $ 320,540 $ 311,623 2.9 International 331,385 309,120 7.2 TOTAL $ 651,925 $ 620,743 5.0 BD BIOSCIENCES United States $ 84,195 $ 79,926 5.3 International 180,699 180,654 0.0 TOTAL $ 264,894 $ 260,580 1.7 TOTAL REVENUES United States $ 830,101 $ 806,218 3.0 International 1,070,091 1,025,502 4.3 TOTAL $ 1,900,192 $ 1,831,720 3.7 BECTON DICKINSON AND COMPANY SUPPLEMENTAL REVENUE INFORMATION REVENUES BY BUSINESS SEGMENTS AND UNITS Three Months Ended December 31, (Unaudited; Amounts in thousands) United States 2012 2011 % Change BD MEDICAL Medical Surgical Systems $ 249,192 $ 248,415 0.3 Diabetes Care 112,404 105,526 6.5 Pharmaceutical Systems 63,770 60,728 5.0 TOTAL $ 425,366 $ 414,669 2.6 BD DIAGNOSTICS Preanalytical Systems $ 166,949 $ 162,115 3.0 Diagnostic Systems 153,591 149,508 2.7 TOTAL $ 320,540 $ 311,623 2.9 BD BIOSCIENCES $ 84,195 $ 79,926 5.3 TOTAL UNITED STATES $ 830,101 $ 806,218 3.0 BECTON DICKINSON AND COMPANY SUPPLEMENTAL REVENUE INFORMATION REVENUES BY BUSINESS SEGMENTS AND UNITS Three Months Ended December 31, (continued) (Unaudited; Amounts in thousands) International % Change 2012 2011 Reported FXN FX Impact BD MEDICAL Medical Surgical Systems $ 286,746 $ 273,893 4.7 7.1 (2.4) Diabetes Care 130,398 120,394 8.3 11.4 (3.1) Pharmaceutical Systems 140,863 141,441 (0.4) 3.5 (3.9) TOTAL $ 558,007 $ 535,728 4.2 7.1 (2.9) BD DIAGNOSTICS Preanalytical Systems $ 167,818 $ 154,507 8.6 11.0 (2.4) Diagnostic Systems 163,567 154,613 5.8 7.9 (2.1) TOTAL $ 331,385 $ 309,120 7.2 9.4 (2.2) BD BIOSCIENCES $ 180,699 $ 180,654 0.0 2.4 (2.4) TOTAL INTERNATIONAL $ 1,070,091 $ 1,025,502 4.3 7.0 (2.7) BECTON DICKINSON AND COMPANY SUPPLEMENTAL REVENUE INFORMATION REVENUES BY BUSINESS SEGMENTS AND UNITS Three Months Ended December 31, (continued) (Unaudited; Amounts in thousands) Total % Change 2012 2011 Reported FXN FX Impact BD MEDICAL Medical Surgical Systems $ 535,938 $ 522,308 2.6 3.9 (1.3) Diabetes Care 242,802 225,920 7.5 9.1 (1.6) Pharmaceutical Systems 204,633 202,169 1.2 4.0 (2.8) TOTAL $ 983,373 $ 950,397 3.5 5.1 (1.6) BD DIAGNOSTICS Preanalytical Systems $ 334,767 $ 316,622 5.7 6.9 (1.2) Diagnostic Systems 317,158 304,121 4.3 5.3 (1.0) TOTAL $ 651,925 $ 620,743 5.0 6.1 (1.1) BD BIOSCIENCES $ 264,894 $ 260,580 1.7 3.3 (1.6) TOTAL REVENUES $ 1,900,192 $ 1,831,720 3.7 5.2 (1.5) BECTON DICKINSON AND COMPANY SUPPLEMENTAL REVENUE INFORMATION SAFETY REVENUES (Unaudited; Amounts in thousands) Three Months Ended December 31, % Change 2012 2011 Reported FXN FX Impact TOTAL SAFETY REVENUES United States $ 290,943 $ 290,612 0.1 0.1 - International 220,233 196,957 11.8 14.3 (2.5) TOTAL $ 511,176 $ 487,569 4.8 5.9 (1.1) BY SEGMENT BD Medical $ 251,857 $ 239,783 5.0 6.0 (1.0) BD Diagnostics 259,319 247,786 4.7 5.7 (1.0) TOTAL $ 511,176 $ 487,569 4.8 5.9 (1.1) BECTON DICKINSON AND COMPANY SUPPLEMENTAL INFORMATION Quarter-to-Date Fiscal 2013 Reconciliation - FX Impact (Unaudited; Amounts in millions, except per share data) Three Months Ended December 31, Reported Reported Reported Foreign FXN FXN Growth Currency FY2013 FY2012 $ Translation Change Growth REVENUES $ 1,900 $ 1,832 $ 68 $ (27) $ 96 5.2% Diluted Earnings per Share from Continuing Operations $ 1.35 $ 1.14 $ 0.21 $ 0.03 $ 0.18 15.8% FXN = Foreign Currency Neutral All figures rounded. Totals may not add due to rounding. BECTON DICKINSON AND COMPANY SUPPLEMENTAL INFORMATION FY2012 Total Year Reconciliation Reported Diluted Earnings per Share from Continuing Operations $ 5.30 Pension Settlement Charge(1) 0.06 Adjusted Diluted Earnings per Share from Continuing Operations $ 5.37 (1) Primarily represents a non-cash pension settlement charge associated with lump sum benefit payments made from the Company's U.S. supplemental pension plan, as such payments exceeded the service and interest components of the plan's pension cost for the year. The charge also included settlement losses associated with certain foreign pension plans. All figures rounded. Totals may not add due to rounding. BECTON DICKINSON AND COMPANY SUPPLEMENTAL INFORMATION FY2013 Outlook Reconciliation Revenues Diluted EPS Adjusted Growth 3.5%-4.0% 6.0%-6.5% FX impact (0.5%) (1.5%) Adjusted FX neutral growth 4.0%-4.5% 7.5%-8.0% Medical device tax impact (3.0%) Adjusted FX neutral growth, excluding the medical device tax 10.5%-11.0% SOURCE BD (Becton, Dickinson and Company)
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