FRANKLIN LAKES, N.J., Nov. 6, 2018 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly revenues of $4.402 billion for the fourth fiscal quarter ended September 30, 2018. This represents an increase of 39.0 percent from the prior-year period, which is primarily due to the acquisition of C. R. Bard. On a comparable, currency-neutral basis that includes the revenues of C. R. Bard in the current and prior year, fourth quarter revenues increased 8.4 percent over the prior-year period. For the full fiscal year ended September 30, 2018, revenues of $15.983 billion increased 32.2 percent from the prior-year period, primarily due to the acquisition of C. R. Bard. On a comparable, currency-neutral basis that includes the revenues of C. R. Bard in the current and prior year, full fiscal year revenues of $16.930 billion grew 5.8 percent. This includes an estimated 60 basis point adverse impact from the previously disclosed change in the U.S. dispensing business model and the estimated sales impact from Hurricane Maria in Puerto Rico on Bard's business during BD's first fiscal quarter.
"Fiscal 2018 was a historic year for BD with the successful completion of the acquisition of C. R. Bard. We are extremely proud of our strong fourth quarter and fiscal year results, which demonstrate how agile we can be as an organization while executing concurrently on two transformative acquisitions," said Vincent A. Forlenza, Chairman and CEO. "We enter fiscal 2019 with continued strong momentum and confidence in our ability to execute on our strategy, deliver on our commitments and create value for our shareholders."
Fourth Quarter and Twelve-Month Fiscal 2018 Operating Results
As reported, diluted earnings per share for the fourth quarter were $(0.64), compared with $1.24 in the prior-year period. This represents a decrease of 151.6 percent and is primarily due to purchase accounting expenses relating to acquisitions and additional tax expense relating to new U.S. tax legislation. Adjusted diluted earnings per share were $2.93, compared with $2.40 in the prior-year period. This represents an increase in adjusted diluted earnings per share of 22.1 percent, or 24.6 percent on a currency-neutral basis.
For the twelve-month period ended September 30, 2018, as reported, diluted earnings per share were $0.60, compared with $4.60 in the prior-year period. This represents a decrease of 87.0 percent and is primarily due to purchase accounting and other expenses relating to acquisitions and additional tax expense relating to new U.S. tax legislation, offset by a non-cash charge in the prior year related to the change in the U.S. dispensing model. Adjusted diluted earnings per share were $11.01, compared with $9.48 in the prior-year period. This represents an increase in adjusted diluted earnings per share of 16.1 percent, or 12.3 percent on a currency-neutral basis.
Segment Results
In the BD Medical segment, as reported, worldwide revenues for the quarter of $2.346 billion increased 20.8 percent over the prior-year period, primarily due to the acquisition of C. R. Bard. On a comparable, currency-neutral basis, BD Medical revenues increased 10.1 percent over the prior-year period. The segment's results were driven by strong performance in the Medication Management Solutions, Medication Delivery Solutions and Pharmaceutical Systems units.
For the twelve-month period ended September 30, 2018, BD Medical revenues were $8.616 billion as reported, an increase of 16.1 percent over the prior-year period. On a comparable, currency-neutral basis, BD Medical revenues of $8.826 billion increased 5.6 percent over the prior-year period, which includes an estimated 80 basis point adverse impact from the change in the U.S. dispensing business model.
In the BD Life Sciences segment, as reported, worldwide revenues for the quarter were $1.108 billion, an increase of 5.5 percent over the prior-year period, or 6.9 percent on a currency-neutral basis. Revenue growth reflects strong performance across the segment.
For the twelve-month period ended September 30, 2018, BD Life Sciences revenues were $4.330 billion as reported, an increase of 8.6 percent over the prior-year period, or an increase of 6.8 percent on a currency-neutral basis.
In the BD Interventional segment, as reported, worldwide revenues for the quarter were $0.948 billion. On a comparable, currency-neutral basis, revenues increased 6.0 percent over the prior-year period. The segment's results reflect strong performance in the Peripheral Intervention and Urology and Critical Care units.
For the twelve-month period ended September 30, 2018, BD Interventional revenues were $3.037 billion as reported. On a comparable, currency-neutral basis, BD Interventional revenues of $3.774 billion increased 5.2 percent, which includes an estimated 90 basis point adverse impact from Hurricane Maria in Puerto Rico on Bard's business during BD's first fiscal quarter.
Geographic Results
As reported, fourth quarter revenues in the U.S. of $2.448 billion increased 48.9 percent over the prior-year period, primarily due to the acquisition of C. R. Bard. On a comparable basis, U.S. revenues increased 8.7 percent over the prior-year period. Growth in the U.S. was primarily driven by very strong performance in the Medication Management Solutions and Pharmaceutical Systems units within the BD Medical segment.
As reported, revenues outside of the U.S. of $1.954 billion increased 28.4 percent from the prior-year period, primarily due to the acquisition of C. R. Bard. On a comparable, currency-neutral basis, revenues outside of the U.S. increased 7.9 percent over the prior-year period. International revenue growth was driven by strong performance from all three segments.
For the twelve-month period ended September 30, 2018, U.S. revenues were $8.768 billion as reported, an increase of 34.8 percent over the prior-year period. On a comparable basis, U.S. revenues of $9.364 billion increased 5.0 percent over the prior-year period, which includes an estimated 100 basis point adverse impact from the change in the U.S. dispensing business model and Hurricane Maria. As reported, revenues outside of the U.S. of $7.215 billion increased 29.1 percent over the prior-year period. On a comparable, currency-neutral basis, revenues outside the U.S. of $7.566 billion increased 7.0 percent over the prior-year period.
Fiscal 2019 Outlook for Full Year
As reported, the company expects full fiscal year 2019 revenues to increase 8.5 to 9.5 percent, primarily due to the C. R. Bard acquisition. The company estimates full fiscal year 2019 revenues will increase 5.0 to 6.0 percent on a comparable, currency-neutral basis that includes the revenues of C. R. Bard in fiscal 2019 as well as the full 2018 fiscal year.
The company expects adjusted diluted earnings per share to be between $12.05 and $12.15, resulting in growth of approximately 13.0 to 14.0 percent on a currency-neutral basis, which includes an adverse impact of approximately 600 basis points related to headwinds and divestitures. This represents growth of approximately 10.0 percent including the estimated unfavorable impact of foreign currency over fiscal 2018 adjusted diluted earnings per share of $11.01. Fiscal 2019 earnings per share expectations include high-single digit accretion from the C. R. Bard acquisition.
Estimated adjusted diluted earnings per share for fiscal 2019 includes an estimate of the impact of adopting ASU 2014-09, Revenue from Contracts with Customers, as of October 1, 2018, and excludes potential charges or gains that may be recorded during the fiscal year, such as, among other things, the non-cash amortization of intangible assets, acquisition-related charges, and certain tax, litigation and regulatory compliance matters. BD does not attempt to provide reconciliations of forward-looking non-GAAP earnings guidance to the comparable GAAP measure because the impact and timing of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of BD's financial performance.
Conference Call Information
A conference call regarding BD's fourth quarter results will be broadcast live on BD's website,
www.bd.com/investors
, along with related slides, at 8:00 a.m. (ET) Tuesday, November 6, 2018. 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, November 13, 2018, confirmation number 3197559.
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.
All "comparable" basis revenue growth rates relating to fiscal years 2018 and 2019 presented throughout this release include the results of C. R. Bard, Inc. ("Bard") in the current and prior-year periods and are further adjusted for certain items as detailed in the attached tables. Beginning in the second quarter of fiscal year 2018, the company's organizational structure was based upon three principal business segments: BD Medical ("Medical"), BD Life Sciences ("Life Sciences") and BD Interventional ("Interventional"). The Interventional segment was added upon the company's completion of its acquisition of Bard, and this new segment includes the majority of Bard's product offerings and certain product offerings which were previously reported in the Medical segment. Certain of Bard's product offerings are included under the Company's Medical segment, specifically within the new Medication Delivery Solutions unit, which was formerly the Medical segment's Medication and Procedural Solutions unit. Prior-year amounts have been revised to reflect the movement of certain product offerings which were previously reported in the Medical segment and which are now reported in the Interventional segment, as discussed above. Current and prior-year adjusted diluted earnings per share results exclude, among other things, the impact of purchase accounting adjustments (including the non-cash amortization of acquisition-related intangible assets); integration, restructuring and transaction costs; the reversal of a litigation reserve; and the loss on debt extinguishment. These measures are also provided on a currency-neutral basis after eliminating the effect of foreign currency translation, where applicable. Foreign currency-neutral percentages are calculated by converting the current-period local currency financial results using the prior period foreign currency exchange rates and comparing these adjusted amounts to the current-period results. Reconciliations of these amounts to the most directly comparable GAAP measures are included in the tables at the end of this release. As previously announced, comparable historical revenue schedules inclusive of Bard for BD's 2016 and 2017 fiscal years, and the first quarter of BD's 2018 fiscal year, are available on the Investor page of BD's website, www.bd.com/investors .
About BD
BD is one of the largest global medical technology companies in the world and is advancing the world of health by improving medical discovery, diagnostics and the delivery of care. The company supports the heroes on the frontlines of health care by developing innovative technology, services and solutions that help advance both clinical therapy for patients and clinical process for health care providers. BD and its 65,000 employees have a passion and commitment to help improve patient outcomes, improve the safety and efficiency of clinicians' care delivery process, enable laboratory scientists to better diagnose disease and advance researchers' capabilities to develop the next generation of diagnostics and therapeutics. BD has a presence in virtually every country and partners with organizations around the world to address some of the most challenging global health issues. By working in close collaboration with customers, BD can help enhance outcomes, lower costs, increase efficiencies, improve safety and expand access to health care. In 2017, BD welcomed C. R. Bard and its products into the BD family. For more information on BD, please visit bd.com.
***
This press release, including the section entitled "Fiscal 2019 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 the C.R. Bard 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; uncertainty regarding the impact of the recent U.S. tax reform; legislative or regulatory changes to the U.S. healthcare system, potential cuts in governmental healthcare spending or measures to contain healthcare costs, each of which could result in reduced demand for our products or downward pricing pressure; changes in interest or foreign currency exchange rates; adverse changes in regional, national or foreign economic conditions, particularly in emerging markets, including any impact on our ability to access credit markets and finance our operations, the demand for our products and services, utilization rates or otherwise, or our suppliers' ability to provide products needed for our operations; new or changing laws and regulations impacting our business (including the imposition of tariffs or changes in laws impacting international trade) or changes in enforcement practices with respect to such laws; our ability to successfully integrate any businesses we acquire; the adverse impact of cyber-attacks on our information systems or products; competitive factors including technological advances and new products introduced by competitors; interruptions in our supply chain or manufacturing processes; pricing and market pressures; difficulties inherent in product development, delays in product introductions and uncertainty of market acceptance of new products; adverse changes in geopolitical conditions; increases in energy costs and their effect on, among other things, the cost of producing BD's products; product efficacy or safety concerns resulting in product recalls or actions being taken by the FDA or other regulators; fluctuations in costs and availability of raw materials and in BD's ability to maintain favorable supplier arrangements and relationships; risks relating to our ability to continue to successfully integrate CareFusion's operations in order to fully obtain the benefits of the transaction; uncertainties of litigation (as described in BD's filings with the Securities and Exchange Commission); future healthcare reform outside the U.S., including changes in government pricing and reimbursement policies or other cost containment reforms; 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 September 30,
2018 2017 % Change
REVENUES $
4,402 $
3,166 39.0
Cost of products sold 2,311 1,612 43.4
Selling and administrative expense 1,103 774 42.6
Research and development expense 278 221 25.7
Acquisitions and other restructurings 140 111 25.9
Other operating expense, net 5 (100.0)
TOTAL OPERATING COSTS AND EXPENSES 3,832 2,723 40.7
OPERATING INCOME 570 443 28.7
Interest expense (181) (156) 15.6
Interest income 9 45 (79.8)
Other income (expense), net 16 (7) 339.9
INCOME BEFORE INCOME TAXES 415 326 27.4
Income tax provision (benefit) 550 (1) 44,493.5
NET (LOSS) INCOME (135) 327 (141.3)
Preferred stock dividends (38) (38)
NET (LOSS) INCOME APPLICABLE TO COMMON
SHAREHOLDERS $
(173) $
289 (159.8)
EARNINGS PER SHARE
Basic (Loss) Earnings per Share $
(0.64) $
1.27 (150.4)
Diluted (Loss) Earnings per Share $
(0.64) $
1.24 (151.6)
AVERAGE SHARES OUTSTANDING (in
thousands)
Basic 268,500 228,218
Diluted 268,500 232,657
BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in millions, except share and per share data)
Twelve Months Ended September 30,
2018 2017 % Change
REVENUES $
15,983 $
12,093 32.2
Cost of products sold 8,721 6,151 41.8
Selling and administrative expense 4,015 2,925 37.3
Research and development expense 1,006 774 29.9
Acquisitions and other restructurings 744 354 110.1
Other operating expense, net 410 (100.0)
TOTAL OPERATING COSTS AND EXPENSES 14,487 10,615 36.5
OPERATING INCOME 1,497 1,478 1.3
Interest expense (706) (521) 35.5
Interest income 65 76 (15.0)
Other income (expense), net 318 (57) 655.9
INCOME BEFORE INCOME TAXES 1,173 976 20.2
Income tax provision (benefit) 862 (124) 795.8
NET INCOME 311 1,100 (71.7)
Preferred stock dividends (152) (70) 115.6
NET INCOME APPLICABLE TO COMMON
SHAREHOLDERS $
159 $
1,030 (84.5)
EARNINGS PER SHARE
Basic Earnings per Share $
0.62 $
4.70 (86.8)
Diluted Earnings per Share $
0.60 $
4.60 (87.0)
AVERAGE SHARES OUTSTANDING (in
thousands)
Basic 258,354 218,943
Diluted 264,621 223,588
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES
Three Months Ended September 30,
(Unaudited; Amounts in millions)
A
B C=(A-B)/B
2018 2017 % Change
BD MEDICAL
---
Medication Delivery Solutions (a) $
512 $
352 45.7
Medication Management Solutions 542 440 23.2
Diabetes Care 149 147 1.7
Pharmaceutical Systems 118 96 22.1
TOTAL $
1,322 $
1,035 27.7
BD LIFE SCIENCES
---
Preanalytical Systems $
196 $
189 3.7
Diagnostic Systems 159 151 5.9
Biosciences 125 123 1.6
TOTAL $
481 $
463 3.8
BD INTERVENTIONAL
---
Surgery (a) $
259 $
143
NM
Peripheral Intervention (a) 201 3
NM
Urology and Critical Care 186
NM
TOTAL $
646 $
146
NM
TOTAL UNITED STATES $
2,448 $
1,644 48.9
(a) The presentation of prior-period amounts reflects a reclassification of $146 million associated with the movement, effective on January 1, 2018, of
certain product offerings from the Medical segment to the Interventional segment.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL
Three Months Ended September 30, (continued)
(Unaudited; Amounts in millions)
D=(A-B)/B E=(A-B-
C)/B
A
B
C
% Change
2018 2017 FX Impact Reported FXN
BD MEDICAL
---
Medication Delivery Solutions (a) $
454 $
369 $
(12) 23.0 26.4
Medication Management Solutions 149 131 (1) 14.1 15.0
Diabetes Care 135 136 (3) (0.8) 1.8
Pharmaceutical Systems 285 271 1 5.4 4.9
TOTAL $
1,025 $
908 $
(16) 12.9 14.6
BD LIFE SCIENCES
---
Preanalytical Systems $
197 $
189 $
(8) 4.4 8.6
Diagnostic Systems 224 208 (5) 7.6 9.8
Biosciences 206 191 (3) 8.2 9.6
TOTAL $
627 $
588 $
(15) 6.7 9.3
BD INTERVENTIONAL
---
Surgery (a) $
69 $
24 $
(1)
NM
NM
Peripheral Intervention (a) 148 2 (1)
NM
NM
Urology and Critical Care 85
NM
NM
TOTAL $
302 $
26 $
(2)
NM
NM
TOTAL INTERNATIONAL $
1,954 $
1,522 $
(33) 28.4 30.6
(a) The presentation of prior-period amounts reflects a reclassification of $26 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL
Three Months Ended September 30, (continued)
(Unaudited; Amounts in millions)
D=(A-B)/B E=(A-B-
C)/B
A
B
C
% Change
2018 2017 FX Impact Reported FXN
BD MEDICAL
---
Medication Delivery Solutions (a) $
967 $
721 $
(12) 34.1 35.8
Medication Management Solutions 692 571 (1) 21.1 21.3
Diabetes Care 285 283 (3) 0.5 1.7
Pharmaceutical Systems 403 367 1 9.8 9.4
TOTAL $
2,346 $
1,943 $
(16) 20.8 21.6
BD LIFE SCIENCES
---
Preanalytical Systems $
393 $
378 $
(8) 4.0 6.1
Diagnostic Systems 384 359 (5) 6.9 8.2
Biosciences 331 314 (3) 5.6 6.4
TOTAL $
1,108 $
1,051 $
(15) 5.5 6.9
BD INTERVENTIONAL
---
Surgery (a) $
328 $
167 $
(1)
NM
NM
Peripheral Intervention (a) 348 5 (1)
NM
NM
Urology and Critical Care 271
NM
NM
TOTAL $
948 $
172 $
(2)
NM
NM
TOTAL REVENUES $
4,402 $
3,166 $
(33) 39.0 40.1
(a) The presentation of prior-period amounts reflects a reclassification of $172 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES
Twelve Months Ended September 30,
(Unaudited; Amounts in millions)
A
B C=(A-B)/B
2018 2017 % Change
BD MEDICAL
---
Medication Delivery Solutions (a) $
1,892 $
1,378 37.3
Medication Management Solutions 1,957 1,843 6.2
Diabetes Care 564 546 3.2
Pharmaceutical Systems 357 328 8.9
TOTAL $
4,770 $
4,095 16.5
BD LIFE SCIENCES
---
Preanalytical Systems $
761 $
741 2.6
Diagnostic Systems 678 622 8.9
Biosciences 475 455 4.6
TOTAL $
1,914 $
1,818 5.3
BD INTERVENTIONAL
---
Surgery (a) $
946 $
577
NM
Peripheral Intervention (a) 594 14
NM
Urology and Critical Care 544
NM
TOTAL $
2,084 $
591
NM
TOTAL UNITED STATES $
8,768 $
6,504 34.8
(a) The presentation of prior-period amounts reflects a reclassification of $591 million associated with the movement, effective on January 1, 2018, of
certain product offerings from the Medical segment to the Interventional segment.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL
Twelve Months Ended September 30, (continued)
(Unaudited; Amounts in millions)
D=(A-B)/B E=(A-B-
C)/B
A
B
C
% Change
2018 2017 FX Impact Reported FXN
BD MEDICAL
---
Medication Delivery Solutions (a) $
1,752 $
1,434 $
52 22.2 18.5
Medication Management Solutions 513 452 25 13.6 8.0
Diabetes Care 541 510 17 6.0 2.6
Pharmaceutical Systems 1,040 929 60 12.0 5.5
TOTAL $
3,846 $
3,325 $
155 15.7 11.0
BD LIFE SCIENCES
---
Preanalytical Systems $
792 $
730 $
21 8.5 5.7
Diagnostic Systems 858 756 26 13.5 10.1
Biosciences 766 684 24 11.9 8.3
TOTAL $
2,416 $
2,170 $
71 11.3 8.1
BD INTERVENTIONAL
---
Surgery (a) $
245 $
89 $
11
NM
NM
Peripheral Intervention (a) 451 6 20
NM
NM
Urology and Critical Care 256 11
NM
NM
TOTAL $
953 $
95 $
43
NM
NM
TOTAL INTERNATIONAL $
7,215 $
5,589 $
269 29.1 24.3
(a) The presentation of prior-period amounts reflects a reclassification of $95 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL
Twelve Months Ended September 30, (continued)
(Unaudited; Amounts in millions)
D=(A-B)/B E=(A-B-
C)/B
A
B
C
% Change
2018 2017 FX Impact Reported FXN
BD MEDICAL
---
Medication Delivery Solutions (a) $
3,644 $
2,812 $
52 29.6 27.7
Medication Management Solutions 2,470 2,295 25 7.7 6.6
Diabetes Care 1,105 1,056 17 4.6 2.9
Pharmaceutical Systems 1,397 1,256 60 11.2 6.4
TOTAL $
8,616 $
7,419 $
155 16.1 14.0
BD LIFE SCIENCES
---
Preanalytical Systems $
1,553 $
1,471 $
21 5.5 4.1
Diagnostic Systems 1,536 1,378 26 11.5 9.6
Biosciences 1,241 1,139 24 9.0 6.8
TOTAL $
4,330 $
3,988 $
71 8.6 6.8
BD INTERVENTIONAL
---
Surgery (a) $
1,192 $
666 $
11
NM
NM
Peripheral Intervention (a) 1,045 19 20
NM
NM
Urology and Critical Care 800 11
NM
NM
TOTAL $
3,037 $
685 $
43
NM
NM
TOTAL REVENUES $
15,983 $
12,093 $
269 32.2 29.9
(a) The presentation of prior-period amounts reflects a reclassification of $685 million associated with the movement, effective on January 1, 2018, of certain product offerings from the Medical segment to the Interventional segment.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - UNITED STATES
Three Months Ended September 30,
(Unaudited; Amounts in millions)
A
B
C
D
E F=B+C+D+E G=(A-F)/F
BD Reported BD Reported (a) Bard (b) Intercompany Divestiture Comparable Comparable %
Change
Adjustment (c) Adjustments (d)
2018 2017 2017 2017
BD MEDICAL
---
Medication Delivery Solutions (a) $
512 $
352 $
143 $
(3)
$ $
491 4.4
Medication Management Solutions 542 440 440 23.2
Diabetes Care 149 147 147 1.7
Pharmaceutical Systems 118 96 96 22.1
TOTAL $
1,322 $
1,035 $
143 $
(3)
$ $
1,174 12.6
BD LIFE SCIENCES
---
Preanalytical Systems $
196 $
189
$
$
$ $
189 3.7
Diagnostic Systems 159 151 151 5.9
Biosciences 125 123 123 1.6
TOTAL $
481 $
463
$
$
$ $
463 3.8
BD INTERVENTIONAL
---
Surgery (a) $
259 $
143 $
122
$ $
(10) $
256 1.5
Peripheral Intervention (a) 201 3 184 187 7.2
Urology and Critical Care 186 172 172 8.3
TOTAL $
646 $
146 $
478
$ $
(10) $
614 5.1
TOTAL UNITED STATES $
2,448 $
1,644 $
621 $
(4) $
(10) $
2,251 8.7
(a) Reflects a reclassification of $146
million associated with the
movement, effective on January 1,
2018, of certain product offerings
from the Medical segment to the
Interventional segment.
(b) Amounts presented in alignment with
BD's current-period segment,
organizational unit and regional
reporting structure. Also reflects
the elimination of revenues from
the Peripheral Intervention unit
related to a royalty income stream,
reported as revenues by Bard, which
BD reports as non-operating income
in the current-year period.
(c) Represents the elimination of
revenues from the Medication
Delivery Solutions unit which BD
previously recognized from Bard as
third-party revenues and that
would be treated as intercompany
revenues in the current-year
period.
(d) Represents adjustments for BD's
divestiture of its soft tissue core
needle biopsy product line and
Bard's divestiture of its Aspira(R)
product line.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - INTERNATIONAL
Three Months Ended September 30, (continued)
(Unaudited; Amounts in millions)
A
B
C
D E=B+C+D
F G=(A-E-F)/E
BD Reported BD Reported (a) Bard (b) Divestiture Comparable FX Impact FXN % Change
Adjustments (c)
2018 2017 2017 2017
BD MEDICAL
---
Medication Delivery Solutions (a) $
454 $
369 $
64
$ $
434 $
(12) 7.6
Medication Management Solutions 149 131 131 (1) 15.0
Diabetes Care 135 136 136 (3) 1.8
Pharmaceutical Systems 285 271 271 1 4.9
TOTAL $
1,025 $
908 $
64
$ $
972 $
(16) 7.0
BD LIFE SCIENCES
---
Preanalytical Systems $
197 $
189
$
$ $
189 $
(8) 8.6
Diagnostic Systems 224 208 208 (5) 9.8
Biosciences 206 191 191 (3) 9.6
TOTAL $
627 $
588
$
$ $
588 $
(15) 9.3
BD INTERVENTIONAL
---
Surgery (a) $
69 $
24 $
41 $
(3) $
63 $
(1) 10.5
Peripheral Intervention (a) 148 2 136 138 (1) 8.1
Urology and Critical Care 85 81 81 5.5
TOTAL $
302 $
26 $
258 $
(3) $
282 $
(2) 7.9
TOTAL INTERNATIONAL $
1,954 $
1,522 $
323 $
(3) $
1,842 $
(33) 7.9
(a) Reflects a reclassification of $26
million associated with the
movement, effective on January 1,
2018, of certain product offerings
from the Medical segment to the
Interventional segment.
(b) Amounts presented in alignment with
BD's current-period segment,
organizational unit and regional
reporting structure.
(c) Represents adjustments for BD's
divestiture of its soft tissue core
needle biopsy product line and
Bard's divestiture of its Aspira(R)
product line.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - TOTAL
Three Months Ended September 30, (continued)
(Unaudited; Amounts in millions)
A
B
C
D
E F=B+C+D+E
G H=(A-F-G)/F
BD Reported BD Reported (a) Bard (b) Intercompany Divestiture Comparable FX Impact FXN % Change
Adjustment (c) Adjustments (d)
2018 2017 2017 2017
BD MEDICAL
---
Medication Delivery Solutions (a) $
967 $
721 $
207 $
(3)
$ $
925 $
(12) 5.9
Medication Management Solutions 692 571 571 (1) 21.3
Diabetes Care 285 283 283 (3) 1.7
Pharmaceutical Systems 403 367 367 1 9.4
TOTAL $
2,346 $
1,943 $
207 $
(3)
$ $
2,146 $
(16) 10.1
BD LIFE SCIENCES
---
Preanalytical Systems $
393 $
378
$
$
$ $
378 $
(8) 6.1
Diagnostic Systems 384 359 359 (5) 8.2
Biosciences 331 314 314 (3) 6.4
TOTAL $
1,108 $
1,051
$
$
$ $
1,051 $
(15) 6.9
BD INTERVENTIONAL
---
Surgery (a) $
328 $
167 $
163
$ $
(13) $
318 $
(1) 3.3
Peripheral Intervention (a) 348 5 320 325 (1) 7.6
Urology and Critical Care 271 253 253 7.4
TOTAL $
948 $
172 $
736
$ $
(13) $
896 $
(2) 6.0
TOTAL REVENUES $
4,402 $
3,166 $
943 $
(4) $
(13) $
4,093 $
(33) 8.4
(a) Reflects a reclassification of $172
million associated with the
movement, effective on January 1,
2018, of certain product offerings
from the Medical segment to the
Interventional segment.
(b) Amounts presented in alignment with
BD's current-period segment,
organizational unit and regional
reporting structure. Also reflects
the elimination of revenues from
the Peripheral Intervention unit
related to a royalty income stream,
reported as revenues by Bard, which
BD reports as non-operating income
in the current-year period.
(c) Represents the elimination of
revenues from the Medication
Delivery Solutions unit which BD
previously recognized from Bard as
third-party revenues and that
would be treated as intercompany
revenues in the current-year
period.
(d) Represents adjustments for BD's
divestiture of its soft tissue core
needle biopsy product line and
Bard's divestiture of its Aspira(R)
product line.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - UNITED STATES
Twelve Months Ended September 30,
(Unaudited; Amounts in millions)
A
B
C
D E=A+B+C+D
F
G
H
I J=F+G+H+I K=(E-J)/J
BD Reported Bard Q1 (b) Intercompany Divestiture Comparable BD Reported (a) Bard (b) Intercompany Divestiture Comparable Comparable %
Change
Adjustment (c) Adjustments (d) Adjustment (c) Adjustments (d)
2018 2018 2018 2017 2017 2017
BD MEDICAL
---
Medication Delivery Solutions (a) $
1,892 $
145 $
(3)
$ $
2,033 $
1,378 $
572 $
(14)
$ $
1,935 5.1
Medication Management Solutions 1,957 1,957 1,843 1,843 6.2
Diabetes Care 564 564 546 546 3.2
Pharmaceutical Systems 357 357 328 328 8.9
TOTAL $
4,770 $
145 $
(3)
$ $
4,912 $
4,095 $
572 $
(14)
$ $
4,652 5.6
BD LIFE SCIENCES
---
Preanalytical Systems $
761
$
$
$ $
761 $
741
$
$
$ $
741 2.6
Diagnostic Systems 678 678 622 622 8.9
Biosciences 475 475 455 455 4.6
TOTAL $
1,914
$
$
$ $
1,914 $
1,818
$
$
$ $
1,818 5.3
BD INTERVENTIONAL
---
Surgery (a) $
946 $
105
$ $
(15) $
1,036 $
577 $
513
$ $
(39) $
1,051 (1.4)
Peripheral Intervention (a) 594 188 782 14 705 718 8.8
Urology and Critical Care 544 177 721 681 681 5.8
TOTAL $
2,084 $
470
$ $
(15) $
2,539 $
591 $
1,899
$ $
(39) $
2,451 3.6
TOTAL UNITED STATES $
8,768 $
614 $
(3) $
(15) $
9,364 $
6,504 $
2,471 $
(14) $
(39) $
8,921 5.0
(a) Reflects a reclassification of $591
million associated with the
movement, effective on January 1,
2018, of certain product offerings
from the Medical segment to the
Interventional segment.
(b) Amounts in 2018 represent revenues
for the quarter ended December 31,
2017; amounts in 2017 represent
revenues for the quarterly periods
included in BD's fiscal year 2017.
Amounts presented in alignment with
BD's current-period segment,
organizational unit and regional
reporting structure. Also reflects
the elimination of revenues from
the Peripheral Intervention unit
related to a royalty income stream,
reported as revenues by Bard, which
BD reports as non-operating income
in the current-year period.
(c) Represents the elimination of
revenues from the Medication
Delivery Solutions unit which BD
previously recognized from Bard as
third-party revenues and that
would be treated as intercompany
revenues in the current-year
period.
(d) Represents adjustments for BD's
divestiture of its soft tissue core
needle biopsy product line and
Bard's divestiture of its Aspira(R)
product line.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - INTERNATIONAL
Twelve Months Ended September 30, (continued)
(Unaudited; Amounts in millions)
A
B
C D=A+B+C
E
F
G H=E+F+G
I J=(D-H-
I)/H
BD Reported Bard Q1 (b) Divestiture Comparable BD Reported (a) Bard (b) Divestiture Comparable FX Impact FXN % Change
Adjustments (c) Adjustments (c)
2018 2018 2018 2017 2017 2017
BD MEDICAL
---
Medication Delivery Solutions (a) $
1,752 $
68
$ $
1,821 $
1,434 $
228
$ $
1,663 $
55 6.2
Medication Management Solutions 513 513 452 452 25 8.0
Diabetes Care 541 541 510 510 17 2.6
Pharmaceutical Systems 1,040 1,040 929 929 60 5.5
TOTAL $
3,846 $
68
$ $
3,915 $
3,325 $
228
$ $
3,553 $
157 5.7
BD LIFE SCIENCES
---
Preanalytical Systems $
792
$
$ $
792 $
730
$
$ $
730 $
21 5.7
Diagnostic Systems 858 858 756 756 26 10.1
Biosciences 766 766 684 684 24 8.3
TOTAL $
2,416
$
$ $
2,416 $
2,170
$
$ $
2,170 $
71 8.1
BD INTERVENTIONAL
---
Surgery (a) $
245 $
49 $
(3) $
291 $
89 $
167 $
(10) $
247 $
13 12.9
Peripheral Intervention (a) 451 146 597 6 515 521 25 9.9
Urology and Critical Care 256 90 347 320 320 13 4.2
TOTAL $
953 $
285 $
(3) $
1,235 $
95 $
1,003 $
(10) $
1,088 $
51 8.9
TOTAL INTERNATIONAL $
7,215 $
353 $
(3) $
7,566 $
5,589 $
1,231 $
(10) $
6,811 $
279 7.0
(a) Reflects a reclassification of $95
million associated with the
movement, effective on January 1,
2018, of certain product offerings
from the Medical segment to the
Interventional segment.
(b) Amounts in 2018 represent revenues
for the quarter ended December 31,
2017; amounts in 2017 represent
revenues for the quarterly periods
included in BD's fiscal year 2017.
Amounts presented in alignment with
BD's current-period segment,
organizational unit and regional
reporting structure.
(c) Represents adjustments for BD's
divestiture of its soft tissue core
needle biopsy product line and
Bard's divestiture of its Aspira(R)
product line.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - TOTAL
Twelve Months Ended September 30, (continued)
(Unaudited; Amounts in millions
A
B
C
D E=A+B+C+D
F
G
H
I J=F+G+H+I
K L=(E-J-
K)/J
BD Reported Bard Q1 (b) Intercompany Divestiture Comparable BD Reported (a) Bard (b) Intercompany Divestiture
Adjustments Adjustments
(d) (d) Comparable FX Impact FXN % Change
Adjustment (c) Adjustment (c)
2018 2018 2018 2017 2017 2017
BD MEDICAL
---
Medication Delivery Solutions (a) $
3,644 $
213 $
(3)
$ $
3,854 $
2,812 $
800 $
(14)
$ $
3,598 $
55 5.6
Medication Management Solutions 2,470 2,470 2,295 2,295 25 6.6
Diabetes Care 1,105 1,105 1,056 1,056 17 2.9
Pharmaceutical Systems 1,397 1,397 1,256 1,256 60 6.4
TOTAL $
8,616 $
213 $
(3)
$ $
8,826 $
7,419 $
800 $
(14)
$ $
8,205 $
157 5.6
BD LIFE SCIENCES
---
Preanalytical Systems $
1,553
$
$
$ $
1,553 $
1,471
$
$
$ $
1,471 $
21 4.1
Diagnostic Systems 1,536 1,536 1,378 1,378 26 9.6
Biosciences 1,241 1,241 1,139 1,139 24 6.8
TOTAL $
4,330
$
$
$ $
4,330 $
3,988
$
$
$ $
3,988 $
71 6.8
BD INTERVENTIONAL
---
Surgery (a) $
1,192 $
153
$ $
(18) $
1,327 $
666 $
680
$ $
(48) $
1,298 $
13 1.3
Peripheral Intervention (a) 1,045 334 1,379 19 1,220 1,239 25 9.3
Urology and Critical Care 800 267 1,068 1,002 1,002 13 5.3
TOTAL $
3,037 $
755
$ $
(18) $
3,774 $
685 $
2,902
$ $
(48) $
3,539 $
51 5.2
TOTAL REVENUES $
15,983 $
968 $
(3) $
(18) $
16,930 $
12,093 $
3,702 $
(14) $
(48) $
15,732 $
279 5.8
(a) Reflects a reclassification of $685
million associated with the
movement, effective on January 1,
2018, of certain product offerings
from the Medical segment to the
Interventional segment.
(b) Amounts in 2018 represent revenues
for the quarter ended December 31,
2017; amounts in 2017 represent
revenues for the quarterly periods
included in BD's fiscal year 2017.
Amounts presented in alignment with
BD's current-period segment,
organizational unit and regional
reporting structure. Also reflects
the elimination of revenues from
the Peripheral Intervention unit
related to a royalty income stream,
reported as revenues by Bard, which
BD reports as non-operating income
in the current-year period.
(c) Represents the elimination of
revenues from the Medication
Delivery Solutions unit which BD
previously recognized from Bard as
third-party revenues and that
would be treated as intercompany
revenues in the current-year
period.
(d) Represents adjustments for BD's
divestiture of its soft tissue core
needle biopsy product line and
Bard's divestiture of its Aspira(R)
product line.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS
(Unaudited)
Three Months Ended September 30,
2018 2017 Growth Foreign Foreign Growth % Foreign
Currency Currency Currency
Translation Neutral Neutral
Growth Growth %
Reported Diluted (Loss) Earnings per Share $
(0.64) $
1.24 $
(1.88) $
(0.06) $
(1.82) (151.6) (146.8)
% %
Purchase accounting adjustments ($374 million and $130 million pre-tax,
respectively) (1) 1.39 0.56
Restructuring costs ($57 million and $30 million pre-tax, respectively)
(2) 0.21 0.13
Integration costs ($88 million and $78 million pre-tax, respectively) (2) 0.33 0.34
Transaction costs ($(5) million and $2 million pre-tax, respectively) (3) (0.02) 0.01
Financing impacts ($44 million pre-tax) (4) 0.19
Hurricane recovery costs ($2 million pre-tax) 0.01
Net impact of gain on sale of investment and asset impairments ($63 million
pre-tax) (5) 0.23
Lease contract modification-related charge ($6 million pre-tax) (6) 0.03
Litigation-related item ($(1) million pre-tax) (7) (0.01)
Dilutive impact (8) (0.07) 0.31
Impact of tax reform and income tax benefit of special items ($398 million
and $(91) million, respectively) (9) 1.48 (0.39)
Adjusted Diluted Earnings per Share $
2.93 $
2.40 $
0.53 $
(0.06) $
0.59 22.1 24.6
% %
(1) Includes adjustments related to the
purchase accounting for
acquisitions impacting identified
intangible assets and valuation of
fixed assets and debt.
(2) Represents restructuring and
integration costs associated with
the Bard and CareFusion
acquisitions, as well as
restructuring costs associated
with other portfolio
rationalization initiatives.
(3) Represents transaction costs
primarily associated with the Bard
acquisition.
(4) Represents financing impacts
associated with the Bard
acquisition.
(5) Includes $58 million of charges to
write down the value of fixed
assets primarily in the Diabetes
Care unit.
(6) Represents an adjustment to a non-
cash charge resulting from a
modification to our dispensing
equipment lease contracts with
customers.
(7) Represents an adjustment to
litigation-related reserves.
(8) The amount in 2018 represents the
exclusion of share equivalents
associated with share-based plans
from the reported diluted shares
outstanding calculation because
such equivalents would have been
antidilutive due to the net loss
incurred during the period. The
adjusted diluted average shares
outstanding (in thousands) were
274,693. The amount in 2017
represents the dilutive impact of
BD shares issued in May 2017, in
anticipation of the Bard
acquisition.
(9) Includes additional tax expense,
net, of $365 million relating to
new U.S. tax legislation.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS
(Unaudited)
Twelve Months Ended September 30,
2018 2017 Growth Foreign Foreign Growth % Foreign
Currency Currency Currency
Translation Neutral Neutral
Growth Growth %
Reported Diluted Earnings per Share $
0.60 $
4.60 $
(4.00) $
0.32 $
(4.32) (87.0) (93.9)
% %
Purchase accounting adjustments ($1.733 billion and $491 million pre-tax,
respectively) (1) 6.55 2.20 0.01
Restructuring costs ($344 million and $85 million pre-tax, respectively)
(2) 1.30 0.38 0.01
Integration costs ($344 million and $237 million pre-tax, respectively)
(2) 1.30 1.06 0.01
Transaction costs ($56 million and $39 million pre-tax, respectively) (3) 0.21 0.17
Financing impacts ($49 million and $131 million pre-tax, respectively) (4) 0.19 0.58
Hurricane recovery costs ($17 million pre-tax) 0.07
Losses on debt extinguishment ($16 million and $73 million pre-tax,
respectively) (5) 0.06 0.33
Net impact of gain on sale of investment and asset impairments ($(151)
million pre-tax) (6) (0.57) 0.01
Lease contract modification-related charge ($748 million pre-tax) (7) 3.34
Litigation-related item ($(337) million pre-tax) (8) (1.51)
Dilutive Impact (9) 0.30 0.54
Impact of tax reform and income tax benefit of special items ($265 million
and $(495) million, respectively) (10) 1.00 (2.21) (0.01)
Adjusted Diluted Earnings per Share $
11.01 $
9.48 $
1.53 $
0.36 $
1.17 16.1 12.3
% %
(1) Includes adjustments related to the
purchase accounting for acquisitions
impacting identified intangible
assets and valuation of fixed assets
and debt. The amount in 2018 also
included a fair value step-up
adjustment of $478 million recorded
relative to Bard's inventory on the
acquisition date.
(2) Represents restructuring and
integration costs associated with
the Bard and CareFusion
acquisitions, as well as
restructuring costs associated with
other portfolio rationalization
initiatives.
(3) Represents transaction costs
primarily associated with the Bard
acquisition.
(4) Represents financing impacts
associated with the Bard
acquisition.
(5) Represents losses recognized upon the
extinguishment of certain long-term
senior notes.
(6) Represents the net amount recognized
in the period related to BD's sale
of its non-controlling interest in
Vyaire Medical, partially offset by
$81 million of charges recorded to
write down the carrying value of
certain intangible and other assets
in the Biosciences unit as well as
$58 million of charges to write down
the value of fixed assets primarily
in the Diabetes Care unit.
(7) Represents a non-cash charge
resulting from a modification to our
dispensing equipment lease contracts
with customers.
(8) Represents the reversal of certain
reserves related to an appellate
court decision which, among other
things, reversed an unfavorable
antitrust judgment in the RTI case.
(9) Represents the dilutive impact of BD
shares issued in May 2017, in
anticipation of the Bard acquisition
and BD shares issued as
consideration transferred to acquire
Bard. The adjusted diluted average
shares outstanding (in thousands)
was 260,758.
(10) Includes additional tax expense, net,
of $640 million relating to new U.S.
tax legislation.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
FY 2019 OUTLOOK RECONCILIATION
BD Including Bard
FY2018
FY2019 Outlook
Revenues % Change
FX Impact
% Change FXN
BDX Revenue $
15,983 8.5% to 9.5% ~2.0% 10.5% to 11.5%
Comparable Revenue Growth
FY2018 FY2019 Outlook
Revenues % Change FXN
Comparable
BDX As Reported Revenue $
15,983
Bard Q1 968
Intercompany Adjustment (3)
Divestiture Adjustment (1)(2) (124)
BDX NewCo Comparable Revenue $
16,824 5.0% to 6.0%
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
FY 2019 OUTLOOK RECONCILIATION (continued)
FY2018 FY2019 Outlook
Revenues % Change FXN
Comparable
BD Medical As Reported Revenue $
8,616
Bard Q1 213
Intercompany Adjustment (3)
BD Medical Comparable Revenue $
8,826 5.0% to 6.0%
BD Life Sciences As Reported Revenue $
4,330
Divestiture Adjustment (1) (106)
BD Life Sciences Comparable Revenue $
4,224 4.0% to 5.0%
BD Interventional as Reported Revenue $
3,037
Bard Q1 755
Divestiture Adjustment (2) (18)
BD Interventional Comparable Revenue $
3,774 6.0% to 7.0%
BD Including Bard
FY2019 Outlook
Full Year FY2019 Full Year
Outlook FY2018
% Increase
Adjusted Fully Diluted Earnings per Share
$12.05 to 12.15 $
11.01 ~10%
Estimated FX Impact ~3.5%
Adjusted FXN Growth 13% - 14%
FXN - Foreign Currency Neutral
(1) Excludes the impact from the
divestiture of BD's Advanced
Bioprocessing Business.
(2) Excludes the impact from the
divestitures of BD's soft tissue
core needle biopsy product line
and Bard's Aspira product line of
tunneled home drainage catheters
and accessories.
Contact:
Monique N. Dolecki, Investor Relations - 201-847-5378
Kristen Cardillo, Corporate Communications - 201-847-5657
View original content:http://www.prnewswire.com/news-releases/bd-announces-results-for-2018-fourth-fiscal-quarter-and-full-year-provides-fiscal-2019-guidance-300744342.html
SOURCE BD (Becton, Dickinson and Company)