FRANKLIN LAKES, N.J., Aug. 6, 2015 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly adjusted revenues of $3.133 billion for the third fiscal quarter ended June 30, 2015, an increase of 45.2 percent over the prior-year period as reported, or 55.6 percent on a currency-neutral basis. On a comparable, currency-neutral basis, adjusted revenues grew 2.4 percent. As reported, revenues were $3.120 billion.
"We are pleased with our performance this quarter, which includes the results of CareFusion, and marks a historic milestone for BD," said Vincent A. Forlenza, Chairman, CEO and President. "We are progressing well with the integration of CareFusion and are on track to achieve the accretion targets we communicated for fiscal 2015 and 2016. We have confidence in our increased earnings outlook for fiscal year 2015 and remain committed to serving our customers with superior healthcare products."
All "comparable" basis revenue growth rates presented throughout this release include the results of CareFusion in the current and prior-year periods. For reconciliations of these revenue amounts and growth rates to the most directly comparable GAAP measures, please refer to the tables at the end of this release.
Third Quarter and Nine-Month Fiscal 2015 Operating Results
Adjusted diluted earnings per share were $2.05, compared with $1.75 in the prior-year period. This represents an increase of 17.1 percent, or 34.3 percent on a currency-neutral basis. Current and prior-year adjusted results exclude the impact of the non-cash amortization of intangible assets and other certain specified items. These specified items are detailed in the accompanying reconciliation of reported diluted earnings per share to adjusted diluted earnings per share. On a reported basis, diluted earnings per share for the third quarter were $0.29 compared with $1.65 in the prior-year period.
For the nine-month period ended June 30, 2015, adjusted diluted earnings per share were $5.22, compared with $4.77 in the prior-year period. This represents an increase of 9.4 percent, or 20.8 percent on a currency-neutral basis. On a reported basis, diluted earnings per share were $2.52, compared with $4.47 in the prior-year period.
Segment Results
In the BD Medical segment, worldwide adjusted revenues for the quarter were $2.212 billion, an increase of 84.2 percent over the prior-year period as reported, or 96.5 percent on a foreign currency-neutral basis. On a comparable, currency-neutral basis, adjusted Medical revenues grew 1.6 percent, which reflects strong sales in the Medication and Procedural Solutions and Pharmaceutical Systems units, partially offset by an unfavorable comparison to the prior-year period in the Medication Management Solutions unit. On a reported basis, Medical revenues were $2.199 billion.
For the nine-month period ended June 30, 2015, BD Medical adjusted revenues of $4.389 billion increased 29.8 percent over the prior-year period as reported, or 37.4 percent on a currency-neutral basis. On a comparable, currency-neutral basis, adjusted revenues grew 5.6 percent. On a reported basis, revenues were $4.377 billion.
In the BD Life Sciences segment, worldwide revenues for the quarter were $921 million, a decrease of 3.7 percent from the prior-year period, or an increase of 4.2 percent on a currency-neutral basis. The segment's results reflect solid growth in the Preanalytical Systems and Biosciences units.
For the nine-month period ended June 30, 2015, BD Life Sciences revenues of $2.845 billion decreased 0.6 percent from the prior-year period, and increased 5.1 percent on a currency-neutral basis.
Geographic Results
Third quarter adjusted revenues in the U.S. of $1.706 billion represent an increase of 95.9 percent over the prior-year period as reported. On a comparable basis, adjusted U.S. revenues decreased 1.5 percent which reflects a decline in the BD Medical segment partially offset by solid growth in the BD Life Sciences segment. Within the BD Medical segment, the aforementioned unfavorable comparison to the prior-year period in the Medication Management Solutions unit was partially offset by solid growth in the Medication and Procedural Solutions unit. Growth in the BD Life Sciences segment was driven by strong performance in the Biosciences unit. On a reported basis, U.S. revenues were $1.693 billion.
Revenues outside of the U.S. were $1.427 billion, representing an increase of 10.9 percent over the prior-year period, or an increase of 28.4 percent on a currency-neutral basis. On a comparable, currency-neutral basis, international revenues grew 6.6 percent which reflects strength in Western Europe and growth in emerging markets. The Company continues to expect growth of approximately 10 percent in emerging markets for the total fiscal year on a legacy BD basis.
For the nine-month period ended June 30, 2015, adjusted revenues in the U.S. were $3.450 billion, an increase of 35.5 percent over the prior-year period as reported, or 4.0 percent on a comparable basis. On a reported basis, U.S. revenues were $3.437 billion. Revenues outside of the U.S. were $3.785 billion, an increase of 2.4 percent over the prior-year period as reported, or an increase of 13.7 percent on a currency-neutral basis. On a comparable, currency-neutral basis, revenues outside the U.S. grew 7.0 percent.
Fiscal 2015 Outlook for Full Year
The Company expects currency-neutral adjusted revenues for the full fiscal year 2015, including the accretion from the acquisition of CareFusion, to grow 28.5 to 29.0 percent, which is at the high end of its previously communicated guidance range. Including the impact of foreign currency, adjusted revenues are expected to grow 21.0 to 21.5 percent, compared to 21.0 to 22.0 percent previously communicated due to an incrementally negative estimated impact from foreign currency. On a comparable, currency-neutral basis, the Company continues to estimate organic revenue growth to be approximately 4.5 percent. As reported, the Company expects full fiscal year revenues to grow 20.7 to 21.2 percent.
The Company is raising its full-year fiscal 2015 adjusted diluted earnings per share guidance to a range of $7.08 to $7.12. This represents growth of 20.0 to 21.0 percent on a currency-neutral basis. Including the incrementally negative estimated impact from foreign currency, the Company expects adjusted diluted earnings per share growth of 8.5 to 9.5 percent. Adjusted diluted earnings per share exclude, among other specified items, the non-cash amortization of intangible assets, and include the accretion from the CareFusion acquisition. As reported, the Company expects full fiscal year diluted earnings per share to be between $3.85 and $3.89.
Conference Call Information
A conference call regarding BD's third quarter results will be broadcast live on BD's website, www.bd.com/investors, along with related slides, at 8:00 a.m. (ET) Thursday, August 6, 2015. 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 Thursday, August 13, 2015, confirmation number 78953246.
Non-GAAP Financial Measures/Financial Tables
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. Within the attached financial tables presented, certain columns and rows may not add due to the use of rounded numbers. Percentages and earnings per share amounts presented are calculated from the underlying amounts.
About BD
BD is a leading medical technology company that partners with customers and stakeholders to address many of the world's most pressing and evolving health needs. Our innovative solutions are focused on improving medication management and patient safety; supporting infection prevention practices; equipping surgical and interventional procedures; improving drug delivery; aiding anesthesiology and respiratory care; advancing cellular research and applications; enhancing the diagnosis of infectious diseases and cancers; and supporting the management of diabetes. We are more than 45,000 associates in 50 countries who strive to fulfill our purpose of "Helping all people live healthy lives" by advancing the quality, accessibility, safety and affordability of healthcare around the world. In 2015, BD welcomed CareFusion and its products into the BD family of solutions. For more information on BD, please visit www.bd.com.
***
This press release, including the section entitled "Fiscal 2015 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. These factors include, but are not limited to: risks relating to the integration of CareFusion's operations, products and employees into BD and the possibility that the anticipated synergies and other benefits of the proposed acquisition will not be realized or will not be realized within the expected timeframe; potential cuts in governmental healthcare spending, which could result in reduced demand for our product or downward pricing pressure; measures to contain healthcare costs; adverse changes in regional, national or foreign economic conditions, including any impact 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; the adverse impact of cyber-attacks on our information systems; competitive factors including technological advances and new products introduced by competitors; pricing and market pressures; difficulties inherent in product development, delays in product introductions and uncertainty of market acceptance of new products; increases in energy costs and their effect on, among other things, the cost of producing BD's products; efficacy or safety concerns relating to product recalls; fluctuations in costs and availability of raw materials and in BD's ability to maintain favorable supplier arrangements and relationships; new or changing laws and regulations 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.
BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in millions, except share and per share data)
Three Months Ended June 30,
2015 2014 % Change
---- ---- --------
REVENUES $3,120 $2,157 44.6
Cost of products sold 1,932 1,046 84.7
Selling and administrative
expense 764 528 44.8
Research and development
expense 178 137 29.9
Acquisition-related costs 108 - NM
------------------------- --- --- ---
TOTAL OPERATING COSTS
AND EXPENSES 2,983 1,712 74.3
------------ ----- ----- ----
OPERATING INCOME 137 445 (69.2)
Interest expense (105) (33) NM
Interest income 2 12 (84.7)
Other income (expense), net 5 (2) NM
--------------------------- --- --- ---
INCOME BEFORE INCOME TAXES 39 423 (90.8)
Income tax (benefit) provision (23) 97 NM
------------------------------ --- --- ---
NET INCOME $62 $326 (80.9)
---------- --- ---- -----
EARNINGS PER SHARE
Basic Earnings per Share $0.30 $1.69 (82.2)
Diluted Earnings per Share $0.29 $1.65 (82.4)
-------------------------- ----- ----- -----
AVERAGE SHARES OUTSTANDING (in
thousands)
Basic 210,175 193,054
Diluted 214,928 197,005
------- ------- -------
NM - Not Meaningful
BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in millions, except share and per share data)
Nine Months Ended June 30,
2015 2014 % Change
---- ---- --------
REVENUES $7,222 $6,244 15.7
Cost of products sold 3,943 3,045 29.5
Selling and administrative expense 1,820 1,584 14.9
Research and development expense 437 410 6.5
Acquisition-related costs 244 - NM
------------------------- --- --- ---
TOTAL OPERATING COSTS
AND EXPENSES 6,444 5,039 27.9
------------ ----- ----- ----
OPERATING INCOME 779 1,204 (35.4)
Interest expense (272) (99) NM
Interest income 20 36 (43.3)
Other income, net 23 4 NM
----------------- --- --- ---
INCOME BEFORE INCOME TAXES 549 1,145 (52.0)
Income tax provision 35 261 (86.6)
-------------------- --- --- -----
NET INCOME $514 $884 (41.8)
---------- ---- ---- -----
EARNINGS PER SHARE
Basic Earnings per Share $2.58 $4.57 (43.5)
Diluted Earnings per Share $2.52 $4.47 (43.6)
-------------------------- ----- ----- -----
AVERAGE SHARES OUTSTANDING (in thousands)
Basic 199,690 193,624
Diluted 204,236 197,813
------- ------- -------
NM - Not Meaningful
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES
Three Months Ended June 30,
(Unaudited; Amounts in millions)
As Reported Adjusted % Change
----------- --------
2015 2014 2015 Reported Adjusted
---- ---- ---- -------- --------
BD MEDICAL
----------
Medication and Procedural Solutions $479 $256 $479 86.7 86.7
Medication Management Solutions 442 - 442 NM NM
Diabetes Care 118 118 118 0.3 0.3
Pharmaceutical Systems 88 94 88 (5.8) (5.8)
Respiratory Solutions 164 - 164 NM NM
Deferred Revenue Adjustment * (13) - - NM -
TOTAL $1,279 $468 $1,291 173.1 175.8
----- ------ ---- ------ ----- -----
BD LIFE SCIENCES
----------------
Preanalytical Systems $175 $172 $175 1.3 1.3
Diagnostic Systems 138 137 138 0.4 0.4
Biosciences 102 93 102 9.6 9.6
----------- --- --- --- ---
TOTAL $414 $403 $414 2.9 2.9
----- ---- ---- ---- --- ---
TOTAL UNITED STATES $1,693 $871 $1,706 94.4 95.9
------------------- ------ ---- ------ ---- ----
* In accordance with U.S. GAAP business combination accounting rules, CareFusion's deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of
this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL
Three Months Ended June 30, (continued)
(Unaudited; Amounts in millions)
As Reported FX % Change
----------- --------
2015 2014 Impact Reported FXN
---- ---- ------ -------- ---
BD MEDICAL
----------
Medication and Procedural Solutions $369 $333 $(49) 10.9 25.6
Medication Management Solutions 112 - (20) NM NM
Diabetes Care 126 140 (22) (9.9) 6.1
Pharmaceutical Systems 245 259 (48) (5.4) 13.0
Respiratory Solutions 67 - (8) NM NM
TOTAL $920 $733 $(148) 25.6 45.9
----- ---- ---- ----- ---- ----
BD LIFE SCIENCES
----------------
Preanalytical Systems $175 $192 $(29) (8.8) 6.6
Diagnostic Systems 164 178 (25) (7.7) 6.2
Biosciences 167 184 (22) (8.9) 2.8
----------- --- ---
TOTAL $506 $553 $(76) (8.5) 5.2
----- ---- ---- ---- ---- ---
TOTAL INTERNATIONAL $1,427 $1,286 $(224) 10.9 28.4
------------------- ------ ------ ----- ---- ----
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL
Three Months Ended June 30, (continued)
(Unaudited; Amounts in millions)
% Change
--------
As Reported Adjusted FX Adjusted
-----------
2015 2014 2015 Impact Reported FXN Adjusted FXN
---- ---- ---- ------ -------- --- -------- ---
BD MEDICAL
----------
Medication and Procedural Solutions $848 $590 $848 $(49) 43.8 52.2 43.8 52.2
Medication Management Solutions 554 - 554 (20) NM NM NM NM
Diabetes Care 245 258 245 (22) (5.2) 3.4 (5.2) 3.4
Pharmaceutical Systems 333 353 333 (48) (5.5) 8.0 (5.5) 8.0
Respiratory Solutions 232 - 232 (8) NM NM NM NM
Deferred Revenue Adjustment * (13) - - - NM NM - -
TOTAL $2,199 $1,201 $2,212 $(148) 83.1 95.5 84.2 96.5
----- ------ ------ ------ ----- ---- ---- ---- ----
BD LIFE SCIENCES
----------------
Preanalytical Systems $349 $364 $349 $(29) (4.0) 4.1 (4.0) 4.1
Diagnostic Systems 302 315 302 (25) (4.2) 3.7 (4.2) 3.7
Biosciences 269 277 269 (22) (2.7) 5.1 (2.7) 5.1
----------- --- ---
TOTAL $921 $956 $921 $(76) (3.7) 4.2 (3.7) 4.2
----- ---- ---- ---- ---- ---- --- ---- ---
TOTAL REVENUES $3,120 $2,157 $3,133 $(224) 44.6 55.0 45.2 55.6
-------------- ------ ------ ------ ----- ---- ---- ---- ----
* In accordance with U.S. GAAP business combination accounting rules, CareFusion's deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is
typically deferred and recognized over the term of the contracts.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES
Nine Months Ended June 30,
(Unaudited; Amounts in millions)
As Reported Adjusted % Change
----------- --------
2015 2014 2015 Reported Adjusted
---- ---- ---- -------- --------
BD MEDICAL
----------
Medication and Procedural Solutions $1,003 $759 $1,003 32.1 32.1
Medication Management Solutions 442 - 442 NM NM
Diabetes Care 361 358 361 1.0 1.0
Pharmaceutical Systems 226 227 226 (0.4) (0.4)
Respiratory Solutions 164 - 164 NM NM
Deferred Revenue Adjustment * (13) - - NM -
TOTAL $2,183 $1,344 $2,196 62.5 63.4
----- ------ ------ ------ ---- ----
BD LIFE SCIENCES
----------------
Preanalytical Systems $516 $507 $516 1.8 1.8
Diagnostic Systems 446 425 446 4.9 4.9
Biosciences 292 270 292 8.0 8.0
----------- --- --- --- ---
TOTAL $1,254 $1,202 $1,254 4.3 4.3
----- ------ ------ ------ --- ---
TOTAL UNITED STATES $3,437 $2,546 $3,450 35.0 35.5
------------------- ------ ------ ------ ---- ----
* In accordance with U.S. GAAP business combination accounting rules, CareFusion's deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of this write-down
which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL
Nine Months Ended June 30, (continued)
(Unaudited; Amounts in millions)
As Reported FX % Change
----------- --------
2015 2014 Impact Reported FXN
---- ---- ------ -------- ---
BD MEDICAL
----------
Medication and Procedural Solutions $1,011 $961 $(95) 5.2 15.1
Medication Management Solutions 112 - (20) NM NM
Diabetes Care 394 415 (47) (5.2) 6.0
Pharmaceutical Systems 609 661 (85) (7.9) 5.0
Respiratory Solutions 67 - (8) NM NM
TOTAL $2,193 $2,037 $(255) 7.7 20.2
----- ------ ------ ----- --- ----
BD LIFE SCIENCES
----------------
Preanalytical Systems $526 $547 $(60) (3.9) 7.1
Diagnostic Systems 512 526 (55) (2.7) 7.7
Biosciences 555 588 (47) (5.7) 2.4
----------- --- ---
TOTAL $1,592 $1,661 $(162) (4.2) 5.6
----- ------ ------ ----- ---- ---
TOTAL INTERNATIONAL $3,785 $3,698 $(417) 2.4 13.7
------------------- ------ ------ ----- --- ----
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL
Nine Months Ended June 30, (continued)
(Unaudited; Amounts in millions)
% Change
--------
As Reported Adjusted FX Adjusted
-----------
2015 2014 2015 Impact Reported FXN Adjusted FXN
---- ---- ---- ------ -------- --- -------- ---
BD MEDICAL
----------
Medication and Procedural Solutions $2,014 $1,720 $2,014 $(95) 17.1 22.6 17.1 22.6
Medication Management Solutions 554 - 554 (20) NM NM NM NM
Diabetes Care 755 773 755 (47) (2.3) 3.7 (2.3) 3.7
Pharmaceutical Systems 835 888 835 (85) (6.0) 3.6 (6.0) 3.6
Respiratory Solutions 232 - 232 (8) NM NM NM NM
Deferred Revenue Adjustment * (13) - - - NM NM - -
TOTAL $4,377 $3,381 $4,389 $(255) 29.5 37.0 29.8 37.4
----- ------ ------ ------ ----- ---- ---- ---- ----
BD LIFE SCIENCES
----------------
Preanalytical Systems $1,042 $1,054 $1,042 $(60) (1.1) 4.6 (1.1) 4.6
Diagnostic Systems 957 951 957 (55) 0.7 6.4 0.7 6.4
Biosciences 846 858 846 (47) (1.4) 4.1 (1.4) 4.1
----------- --- ---
TOTAL $2,845 $2,863 $2,845 $(162) (0.6) 5.1 (0.6) 5.1
----- ------ ------ ------ ----- ---- --- ---- ---
TOTAL REVENUES $7,222 $6,244 $7,235 $(417) 15.7 22.4 15.9 22.6
-------------- ------ ------ ------ ----- ---- ---- ---- ----
* In accordance with U.S. GAAP business combination accounting rules, CareFusion's deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is
typically deferred and recognized over the term of the contracts.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE ADJUSTED REVENUE CHANGE - UNITED STATES
Three Months Ended June 30,
(Unaudited; Amounts in millions)
A B C=A+B D E F=D+E G=(C-F)/F
--- --- ----- --- --- ----- ---------
Deferred BD CFN Comparable Comparable
Reported Revenue Adjusted Reported Reported Historical Adjusted
2015 Adjustment 2015 2014 2014 2014 % Change
---- ---------- ---- ---- ---- ---- --------
BD MEDICAL
----------
Medication and Procedural Solutions $479 $ - $479 $256 $203 $459 4.2
Medication Management Solutions 442 - 442 - 488 488 (9.5)
Diabetes Care 118 - 118 118 - 118 0.3
Pharmaceutical Systems 88 - 88 94 - 94 (5.8)
Respiratory Solutions 164 - 164 - 169 169 (2.9)
Deferred Revenue Adjustment * (13) 13 - - - - -
TOTAL $1,279 $13 $1,291 $468 $860 $1,328 (2.8)
----- ------ --- ------ ---- ---- ------ ----
BD LIFE SCIENCES
----------------
Preanalytical Systems $175 $ - $175 $172 $ - $172 1.3
Diagnostic Systems 138 - 138 137 - 137 0.4
Biosciences 102 - 102 93 - 93 9.6
TOTAL $414 $ - $414 $403 $ - $403 2.9
----- ---- --- --- ---- ---- --- --- ---- ---
TOTAL UNITED STATES $1,693 $13 $1,706 $871 $860 $1,731 (1.5)
------------------- ------ --- ------ ---- ---- ------ ----
* In accordance with U.S. GAAP business combination accounting rules, CareFusion's deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United
States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE FXN REVENUE CHANGE - INTERNATIONAL
Three Months Ended June 30, (continued)
(Unaudited; Amounts in millions)
A B C D=B+C E F=(A-D-E)/D
--- --- --- ----- --- -----------
BD CFN Comparable Comparable Comparable
Reported Reported Reported Historical FX FXN
2015 2014 2014 2014 Impact % Change
---- ---- ---- ---- ------ --------
BD MEDICAL
----------
Medication and Procedural Solutions $369 $333 $62 $396 $(49) 5.8
Medication Management Solutions 112 - 124 124 (20) 7.0
Diabetes Care 126 140 - 140 (22) 6.1
Pharmaceutical Systems 245 259 - 259 (48) 13.0
Respiratory Solutions 67 - 76 76 (8) 0.1
TOTAL $920 $733 $262 $995 $(148) 7.4
----- ---- ---- ---- ---- ----- ---
BD LIFE SCIENCES
----------------
Preanalytical Systems $175 $192 $ - $192 $(29) 6.6
Diagnostic Systems 164 178 - 178 (25) 6.2
Biosciences 167 184 - 184 (22) 2.8
TOTAL $506 $553 $ - $553 $(76) 5.2
----- ---- ---- --- --- ---- ---- ---
TOTAL INTERNATIONAL $1,427 $1,286 $262 $1,548 $(224) 6.6
------------------- ------ ------ ---- ------ ----- ---
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE ADJUSTED FXN REVENUE CHANGE - TOTAL
Three Months Ended June 30, (continued)
(Unaudited; Amounts in millions)
A B C=A+B D E F=D+E G H=(C-F-G)/F
--- --- ----- --- --- ----- --- -----------
Comparable
Deferred BD CFN Comparable Comparable Adjusted
Reported Revenue Adjusted Reported Reported Historical FX FXN
2015 Adjustment 2015 2014 2014 2014 Impact % Change
---- ---------- ---- ---- ---- ---- ------ --------
BD MEDICAL
----------
Medication and Procedural Solutions $848 $ - $848 $590 $265 $855 $(49) 5.0
Medication Management Solutions 554 - 554 - 612 612 (20) (6.1)
Diabetes Care 245 - 245 258 - 258 (22) 3.4
Pharmaceutical Systems 333 - 333 353 - 353 (48) 8.0
Respiratory Solutions 232 - 232 - 245 245 (8) (2.0)
Deferred Revenue Adjustment * (13) 13 - - - - - -
TOTAL $2,199 $13 $2,212 $1,201 $1,122 $2,323 $(148) 1.6
----- ------ --- ------ ------ ------ ------ ----- ---
BD LIFE SCIENCES
----------------
Preanalytical Systems $349 $ - $349 $364 $ - $364 $(29) 4.1
Diagnostic Systems 302 - 302 315 - 315 (25) 3.7
Biosciences 269 - 269 277 - 277 (22) 5.1
TOTAL $921 $ - $921 $956 $ - $956 $(76) 4.2
----- ---- --- --- ---- ---- --- --- ---- ---- ---
TOTAL REVENUES $3,120 $13 $3,133 $2,157 $1,122 $3,279 $(224) 2.4
-------------- ------ --- ------ ------ ------ ------ ----- ---
* In accordance with U.S. GAAP business combination accounting rules, CareFusion's deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically
deferred and recognized over the term of the contracts.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE ADJUSTED REVENUE CHANGE - UNITED STATES
Nine Months Ended June 30,
(Unaudited; Amounts in millions)
A B C=A+B D E=C+D F G H=F+G I=(E-H)/H
--- --- ----- --- ----- --- --- ----- ---------
Comparable
Deferred CFN Historical BD CFN Comparable Comparable
Reported Revenue Adjusted Reported Adjusted Reported Reported Historical Adjusted
2015 Adjustment 2015 1st Half 2015
** 2015 2014 2014 2014 % Change
---- ---------- ---- -------------- ---- ---- ---- ---- --------
BD MEDICAL
----------
Medication and Procedural Solutions $1,003 $ - $1,003 $427 $1,430 $759 $601 $1,360 5.2
Medication Management Solutions 442 - 442 843 1,285 - 1,261 1,261 1.9
Diabetes Care 361 - 361 - 361 358 - 358 1.0
Pharmaceutical Systems 226 - 226 - 226 227 - 227 (0.4)
Respiratory Solutions 164 - 164 333 497 - 452 452 9.9
Deferred Revenue Adjustment * (13) 13 - - - - - - -
TOTAL $2,183 $13 $2,196 $1,603 $3,799 $1,344 $2,314 $3,658 3.9
----- ------ --- ------ ------ ------ ------ ------ ------ ---
BD LIFE SCIENCES
----------------
Preanalytical Systems $516 $ - $516 $ - $516 $507 $ - $507 1.8
Diagnostic Systems 446 - 446 - 446 425 - 425 4.9
Biosciences 292 - 292 - 292 270 - 270 8.0
TOTAL $1,254 $ - $1,254 $ - $1,254 $1,202 $ - $1,202 4.3
----- ------ --- --- ------ --- --- ------ ------ --- --- ------ ---
TOTAL UNITED STATES $3,437 $13 $3,450 $1,603 $5,053 $2,546 $2,314 $4,860 4.0
------------------- ------ --- ------ ------ ------ ------ ------ ------ ---
* In accordance with U.S. GAAP business combination accounting rules, CareFusion's deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term
of the contracts.
** For the quarters ended December 31, 2014 and March 31, 2015
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE FXN REVENUE CHANGE - INTERNATIONAL
Nine Months Ended June 30, (continued)
(Unaudited; Amounts in millions)
A B C=A+B D E F=D+E G H=(C-F-G)/F
--- --- ----- --- --- ----- --- -----------
CFN Comparable BD CFN Comparable Comparable Comparable
Reported Reported Historical Reported Reported Historical FX FXN
2015 1st Half 2015
* 2015 2014 2014 2014 Impact % Change
---- ------------- ---- ---- ---- ---- ------ --------
BD MEDICAL
----------
Medication and Procedural Solutions $1,011 $117 $1,128 $961 $181 $1,141 $(102) 7.8
Medication Management Solutions 112 208 320 - 319 319 (42) 13.5
Diabetes Care 394 - 394 415 - 415 (47) 6.0
Pharmaceutical Systems 609 - 609 661 - 661 (85) 5.0
Respiratory Solutions 67 138 206 - 198 198 (16) 12.0
TOTAL $2,193 $463 $2,656 $2,037 $697 $2,735 $(292) 7.8
----- ------ ---- ------ ------ ---- ------ ----- ---
BD LIFE SCIENCES
----------------
Preanalytical Systems $526 $ - $526 $547 $ - $547 $(60) 7.1
Diagnostic Systems 512 - 512 526 - 526 (55) 7.7
Biosciences 555 - 555 588 - 588 (47) 2.4
TOTAL $1,592 $ - $1,592 $1,661 $ - $1,661 $(162) 5.6
----- ------ --- --- ------ ------ --- --- ------ ----- ---
TOTAL INTERNATIONAL $3,785 $463 $4,248 $3,698 $697 $4,395 $(454) 7.0
------------------- ------ ---- ------ ------ ---- ------ ----- ---
* For the quarters ended December 31, 2014 and March 31, 2015
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE ADJUSTED FXN REVENUE CHANGE - TOTAL
Nine Months Ended June 30, (continued)
(Unaudited; Amounts in millions)
A B C=A+B D E=C+D F G H=F+G I J=(E-H-I)/H
--- --- ----- --- ----- --- --- ----- --- -----------
Comparable Comparable
Deferred CFN Historical BD CFN Comparable Comparable Adjusted
Reported Revenue Adjusted Reported Adjusted Reported Reported Historical FX FXN
2015 Adjustment 2015 1st Half 2015
** 2015 2014 2014 2014 Impact % Change
---- ---------- ---- ------------- ---- ---- ---- ---- ------ --------
BD MEDICAL
----------
Medication and Procedural Solutions $2,014 $ - $2,014 $544 $2,557 $1,720 $781 $2,501 $(102) 6.3
Medication Management Solutions 554 - 554 1,051 1,605 - 1,580 1,580 (42) 4.2
Diabetes Care 755 - 755 - 755 773 - 773 (47) 3.7
Pharmaceutical Systems 835 - 835 - 835 888 - 888 (85) 3.6
Respiratory Solutions 232 - 232 471 703 - 650 650 (16) 10.5
Deferred Revenue Adjustment * (13) 13 - - - - - - - -
TOTAL $4,377 $13 $4,389 $2,066 $6,456 $3,381 $3,012 $6,392 $(292) 5.6
----- ------ --- ------ ------ ------ ------ ------ ------ ----- ---
BD LIFE SCIENCES
----------------
Preanalytical Systems $1,042 $ - $1,042 $ - $1,042 $1,054 $ - $1,054 $(60) 4.6
Diagnostic Systems 957 - 957 - 957 951 - 951 (55) 6.4
Biosciences 846 - 846 - 846 858 - 858 (47) 4.1
TOTAL $2,845 $ - $2,845 $ - $2,845 $2,863 $ - $2,863 $(162) 5.1
----- ------ --- --- ------ --- --- ------ ------ --- --- ------ ----- ---
TOTAL REVENUES $7,222 $13 $7,235 $2,066 $9,301 $6,244 $3,012 $9,255 $(454) 5.4
-------------- ------ --- ------ ------ ------ ------ ------ ------ ----- ---
* In accordance with U.S. GAAP business combination accounting rules, CareFusion's deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date. The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.
** For the quarters ended December 31, 2014 and March 31, 2015
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
SAFETY REVENUES
(Unaudited; Amounts in millions)
Three Months Ended June 30,
---------------------------
As Reported FX % Change
----------- --------
2015 2014 Impact Reported FXN
---- ---- ------ -------- ---
TOTAL SAFETY REVENUES
---------------------
United States $427 $304 $ - 40.4 40.4
International 304 265 (49) 14.7 33.2
-------------
TOTAL $731 $569 $(49) 28.4 37.1
----- ---- ---- ---- ---- ----
BY SEGMENT
----------
BD Medical $456 $284 $(27) 60.6 69.9
BD Life Sciences 275 285 (23) (3.6) 4.3
----------------
TOTAL $731 $569 $(49) 28.4 37.1
----- ---- ---- ---- ---- ----
Nine Months Ended June 30,
--------------------------
As Reported FX % Change
----------- --------
2015 2014 Impact Reported FXN
---- ---- ------ -------- ---
TOTAL SAFETY REVENUES
---------------------
United States $1,030 $906 $ - 13.6 13.6
International 825 751 (93) 9.8 22.2
-------------
TOTAL $1,855 $1,657 $(93) 11.9 17.5
----- ------ ------ ---- ---- ----
BY SEGMENT
----------
BD Medical $1,033 $832 $(47) 24.1 29.8
BD Life Sciences 822 825 (46) (0.4) 5.1
----------------
TOTAL $1,855 $1,657 $(93) 11.9 17.5
----- ------ ------ ---- ---- ----
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF SAFETY REVENUE CHANGE TO COMPARABLE FXN REVENUE CHANGE
(Unaudited; Amounts in millions)
Three Months Ended June 30,
---------------------------
A B C D=B+C E F=(A-D-E)/D
--- --- --- ----- --- -----------
BD BD CFN Comparable Comparable Comparable
Reported Reported Historical FX FXN
Reported
2015 2014 2014 2014 Impact % Change
---- ---- ---- ---- ------ --------
TOTAL SAFETY REVENUES
---------------------
United States $427 $304 $119 $424 $ - 0.9
International 304 265 46 311 (49) 13.5
------------- --- ---
TOTAL $731 $569 $165 $735 $(49) 6.2
----- ---- ---- ---- ---- ---- ---
BY SEGMENT
----------
BD Medical $456 $284 $165 $450 $(27) 7.4
BD Life Sciences 275 285 - 285 (23) 4.3
---------------- --- ---
TOTAL $731 $569 $165 $735 $(49) 6.2
----- ---- ---- ---- ---- ---- ---
Nine Months Ended June 30,
--------------------------
A B C=A+B D E F=D+E G H=(C-F-G)/F
--- --- ----- --- --- ----- --- -----------
CFN Comparable BD CFN Comparable Comparable Comparable
Reported Reported Historical Reported Reported Historical FX FXN
2015 1st Half 2015
* 2015 2014 2014 2014 Impact % Change
---- ------------- ---- ---- ---- ---- ------ --------
TOTAL SAFETY REVENUES
---------------------
United States $1,030 $252 $1,281 $906 $348 $1,254 $ - 2.2
International 825 83 908 751 127 878 (99) 14.8
------------- --- --- --- --- --- ---
TOTAL $1,855 $334 $2,189 $1,657 $475 $2,132 $(99) 7.3
----- ------ ---- ------ ------ ---- ------ ---- ---
BY SEGMENT
----------
BD Medical $1,033 $334 $1,367 $832 $475 $1,307 $(54) 8.7
BD Life Sciences 822 - 822 825 - 825 (46) 5.1
---------------- --- --- --- --- --- ---
TOTAL $1,855 $334 $2,189 $1,657 $475 $2,132 $(99) 7.3
----- ------ ---- ------ ------ ---- ------ ---- ---
* For the quarters ended December 31, 2014 and March 31, 2015
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS
(Unaudited)
Three Months Ended June 30,
---------------------------
Foreign Foreign
Foreign Currency Currency
Currency Neutral Neutral
2015 2014 Growth Translation Growth Growth % Growth %
---- ---- ------ ----------- ------ ------- -------
Reported Diluted Earnings per Share $0.29 $1.65 $(1.36) $(0.29) $(1.07) (82.4%) (64.8%)
----- ----- ------ ------ ------ ------ ------
Financing Costs ($5 million or $3 million after-tax) (1) 0.01 -
Transaction Costs ($9 million or $6 million after-tax) (1) 0.03 -
Integration Costs ($24 million or $15 million after-tax) (1) 0.07 -
Restructuring Costs ($75 million or $47 million after-tax) (1) 0.22 -
Purchase Accounting Adjustments ($439 million or $311 million after-tax and $19 million or $13 million after-tax, respectively) 1.45 (2) 0.07 (3) (0.01)
Employee Termination Cost-related Amounts ($5 million or $3 million after-tax) (4) (0.01) -
Research and Development Charges ($9 million or $6 million after-tax) (5) - 0.03
Adjusted Diluted Earnings per Share $2.05 $1.75 $0.30 $(0.30) $0.60 17.1% 34.3%
----- ----- ----- ------ ----- ---- ----
(1) Represents financing, transaction, integration and restructuring costs associated with the CareFusion acquisition.
(2) Represents non-cash amortization expense of $148 million pre-tax associated with acquisition related identifiable intangible assets, including CareFusion, as well as the net amortization of purchase accounting adjustments of $291 million pre-tax to reflect CareFusion's inventory, fixed assets, debt and deferred revenue balances at fair value as of the acquisition date.
(3) Represents non-cash amortization expense associated with acquisition related identifiable intangible assets.
(4) Represents an adjustment to the liability for employee termination costs recorded relative to workforce reduction actions taken in the fourth quarter of fiscal year 2014.
(5) Represents a charge associated with the decision to terminate a research and development program in the Medical segment; the charge relates to program asset write-offs and obligations.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS
(Unaudited)
Nine Months Ended June 30,
--------------------------
Foreign Foreign
Foreign Currency Currency
Currency Neutral Neutral
2015 2014 Growth Translation Growth Growth % Growth %
---- ---- ------ ----------- ------ ------- -------
Reported Diluted Earnings per Share $2.52 $4.47 $(1.95) $(0.52) $(1.43) (43.6%) (32.0%)
----- ----- ------ ------ ------ ------ ------
Financing Costs ($107 million or $65 million after-tax) (1) 0.32 -
Transaction Costs ($52 million or $35 million after-tax) (1) 0.17 -
Integration Costs ($55 million or $34 million after-tax) (1) 0.17 -
Restructuring Costs ($136 million or $83 million after-tax) (1) 0.41 -
Purchase Accounting Adjustments ($466 million or $326 million after-tax and $56 million or $38 million after-tax, respectively) 1.60 (2) 0.19 (3) (0.02)
Employee Termination Cost-related Amounts ($5 million or $3 million after-tax) (4) (0.01) -
Litigation-related Charge ($12 million or $7 million after-tax) (5) 0.04 -
Dilutive Share Impact (6) 0.02 -
Research and Development Charges ($29 million or $18 million after-tax) (7) - 0.09
Other Specified Items, Net ($2 million or $2 million after-tax) (8) - 0.01
Adjusted Diluted Earnings per Share $5.22 $4.77 $0.45 $(0.54) $0.99 9.4% 20.8%
----- ----- ----- ------ ----- --- ----
(1) Represents financing, transaction, integration and restructuring costs associated with the CareFusion acquisition.
(2) Represents non-cash amortization expense of $184 million pre-tax associated with acquisition related identifiable intangible assets, including CareFusion, as well as the net amortization of purchase accounting adjustments of $291 million pre-tax to reflect CareFusion's inventory, fixed assets, debt and deferred revenue balances at fair value as of the acquisition date. Also includes an acquisition-date accounting
gain on a previously held investment in CRISI Medical Systems, Inc. of $9 million pre-tax.
(3) Represents non-cash amortization expense associated with acquisition related identifiable intangible assets.
(4) Represents an adjustment to the liability for employee termination costs recorded relative to workforce reduction actions taken in the fourth quarter of fiscal year 2014.
(5) Represents a charge for plaintiff's attorneys' fees associated with the unfavorable verdict in the antitrust and false advertising lawsuit filed against BD by RTI.
(6) Represents the dilutive impact of BD shares issued as part of purchase consideration for CareFusion acquisition prior to the consolidation of its operating results beginning on April 1, 2015. The year-to-date adjusted diluted average shares outstanding (in thousands) is 203,332.
(7) Includes a $9 million charge associated with the decision to terminate a research and development program in the Medical segment; the charge relates to program asset write-offs and obligations. Also includes a $20 million charge associated with the write-off of capitalized product software and, to a lesser extent, fixed assets primarily resulting from the discontinuance of an instrument product development program in
the Life Sciences segment.
(8) Represents the cost associated with the decision to early terminate a European distributor arrangement in the Life Sciences segment of $11 million pre-tax, which was largely offset by a gain from a cash distribution received from the sale of a company, of which BD had a small equity ownership, of $8 million pre-tax.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
FY2015 OUTLOOK RECONCILIATION
BD Standalone BD Including CareFusion Accretion
------------- ---------------------------------
Revenues FX Impact FXN Basis Revenues FX Impact FXN Basis
-------- --------- --------- -------- --------- ---------
Full Year FY2015 Estimated Growth on a Reported Basis ~(2.0%) ~(7.0%) ~5.0% 20.7% - 21.2% ~(7.5%) 28.2% - 28.7%
Deferred Revenue Adjustment - - - ~0.3% NM ~0.3%
Adjusted Full Year FY2015 Estimated Growth ~(2.0%) ~(7.0%) ~5.0% 21.0% - 21.5% ~(7.5%) 28.5% - 29.0%
Full Year Full Year Full Year Full Year
FY 2015 FY 2014 % Increase FY 2015 FY 2014 % Increase
------- ------- ---------- ------- ------- ----------
(estimated) (estimated)
Reported Fully Diluted Earnings per Share $ 6.19 - 6.26 $5.99 NM $ 3.85 - 3.89 $5.99 NM
Financing Costs - 0.02 0.32 0.02
Transaction Costs - - 0.17 -
Integration Costs - - 0.17 -
Restructuring Costs - - 0.41 -
Purchase Accounting Adjustments 0.18 0.26 2.11 0.26
Employee Termination Cost-related Amounts (0.01) - (0.01) -
Litigation-related Charge 0.04 - 0.04 -
Dilutive Share Impact - - 0.02 -
Non-acquisition Related Employee Termination Costs - 0.12 - 0.12
Research and Development Charges (1) - 0.08 - 0.08
Pension Settlement Charge - 0.01 - 0.01
Other Specified Items, Net (2) - 0.03 - 0.03
Adjusted Fully Diluted Earnings per Share $ 6.40 - 6.47 $6.50 (1.5%) - (0.5%) $ 7.08 - 7.12 $6.50 8.5% - 9.5%
=== =========== ===== === =========== =====
FX Impact (10.5%) (11.5%)
Adjusted FXN Growth 9.0% - 10.0% 20.0% - 21.0%
(1) Includes a write-off of capitalized product software and, to a lesser extent, fixed assets primarily resulting from the discontinuance of an instrument product development program in the Life Sciences segment and a charge associated with the decision to terminate a research and development program in the Medical segment.
(2) Includes the cost associated with the decision to early terminate a European distributor arrangement in the Life Sciences segment. Also includes a charge resulting from the adjustment to the carrying amount of an asset that is being held for sale, and a gain from a cash distribution received from the sale of a company, of which BD had a small equity ownership.
Organic Revenues Growth
Full Year
Q1 Q2 Q3 Q3 Q4 FY2015
YTD
---
(estimated) (estimated)
CareFusion Revenues, Reported 16.1% 3.0% (5.2%) 3.9% ~0.0% ~3.0%
FX Impact (1.4%) (2.4%) (3.2%) (2.4%) ~(3.5%) ~(2.5%)
----- ----- ----- ----- ------ ------
CareFusion Revenues, FXN 17.5% 5.4% (2.0%) 6.3% ~3.5% ~5.5%
CareFusion Inorganic Revenues, FXN (7.6%) - (0.2%) (2.4%) ~(0.5%) ~(2.0%)
----- --- ----- ----- ------ ------
CareFusion Organic Revenues, FXN 9.9% 5.4% (2.2%) 3.9% ~3.0% ~3.5%
BD Standalone Revenues, Reported 1.8% (1.0%) (4.1%) (1.2%) ~(3.5%) ~(2.0%)
FX Impact (3.5%) (5.9%) (8.7%) (6.1%) ~(8.5%) ~(7.0%)
----- ----- ----- ----- ------ ------
BD Standalone Revenues, FXN 5.3% 4.9% 4.7% 5.0% ~5.0% ~5.0%
BD Standalone Inorganic Revenues, FXN NM NM (0.1%) (0.1%) NM NM
--- --- ----- ----- --- ---
BD Standalone Organic Revenues, FXN 5.3% 4.9% 4.6% 4.9% ~5.0% ~5.0%
CareFusion Organic Revenues, FXN ~3.5%
BD Standalone Organic Revenues, FXN ~5.0%
----
BD Including CareFusion Organic Revenues, FXN ~4.5%
NM - Not Meaningful
FXN = Foreign Currency Neutral
Contact:
Monique N. Dolecki, Investor Relations - 201-847-5453
Kristen Cardillo, Corporate Communications - 858-617-2317
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/bd-announces-results-for-2015-third-fiscal-quarter-and-raises-eps-guidance-for-fiscal-2015-300124630.html
SOURCE BD (Becton, Dickinson and Company)