BD Announces Results for 2019 First Fiscal Quarter; Reaffirms Fiscal 2019 Guidance
- As reported, revenues of $4.160 billion increased 35.1 percent.
- On a comparable, currency-neutral basis, revenues increased 5.2 percent.
- As reported, diluted earnings per share of $2.05 increased 369.7 percent.
- As adjusted, diluted earnings per share of $2.70 increased 8.9 percent, or 14.9 percent on a currency-neutral basis.
- The company reaffirms its full fiscal year 2019 revenue and adjusted diluted earnings per share guidance.
PR Newswire

FRANKLIN LAKES, N.J., Feb. 5, 2019 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly revenues of $4.160 billion for the first fiscal quarter ended December 31, 2018. This represents an increase of 35.1 percent from the prior-year period, which is primarily due to the acquisition of C. R. Bard. On a comparable, currency-neutral basis, revenues increased 5.2 percent over the prior-year period.

"We are very pleased with our strong start to fiscal year 2019. As noted in our pre-announcement, results were better than expected across all three segments," said Vincent A. Forlenza, Chairman and CEO. "It is evident that the combination of BD and C. R. Bard is delivering value to customers, patients and shareholders around the world."

First Quarter Fiscal 2019 Operating Results
As reported, diluted earnings per share for the first quarter were $2.05, compared with $(0.76) in the prior-year period. This represents an increase of 369.7 percent and is primarily due to the gain on the sale of the Advanced Bioprocessing business, and net expense related to U.S. tax reform in the prior-year period. Adjusted diluted earnings per share were $2.70, compared with $2.48 in the prior-year period. This represents an increase in adjusted diluted earnings per share of 8.9 percent, or 14.9 percent on a currency-neutral basis.

Segment Results
In the BD Medical segment, as reported, worldwide revenues for the quarter of $2.135 billion increased 15.3 percent from the prior-year period, primarily due to the acquisition of C. R. Bard. On a comparable, currency-neutral basis, BD Medical revenues increased 5.2 percent over the prior-year period. The segment's results were driven by strong performance in the Medication Management Solutions and Pharmaceutical Systems units.

In the BD Life Sciences segment, as reported, worldwide revenues for the quarter were $1.056 billion. This represents an increase of 1.0 percent over the prior-year period. On a comparable, currency-neutral basis that excludes the revenues associated with the divested Advanced Bioprocessing business, BD Life Sciences revenues of $1.047 billion increased 4.7 percent over the prior-year period. Revenue growth was primarily driven by strong performance in the Preanalytical Systems unit.

In the BD Interventional segment, as reported, worldwide revenues for the quarter were $0.970 billion. On a comparable, currency-neutral basis, revenues increased 5.7 percent over the prior-year period. The segment's results reflect strong performance in the Surgery and Urology and Critical Care units. Growth in the Peripheral Intervention unit reflects a tough comparison to the prior-year period.

Geographic Results
As reported, first quarter revenues in the U.S. of $2.387 billion increased 44.1 percent from the prior-year period, primarily due to the acquisition of C. R. Bard. On a comparable basis, U.S. revenues increased 6.0 percent over the prior-year period. Growth in the U.S. was driven by strong performance from all three segments.

As reported, revenues outside of the U.S. of $1.773 billion increased 24.6 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 4.1 percent over the prior-year period. International revenue growth was driven by strong performance in China and the rest of Asia, as well as Latin America.

Fiscal 2019 Outlook for Full Year
The company reaffirms previously issued fiscal year 2019 revenue and adjusted diluted earnings per share guidance.

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.

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. 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.

Estimated adjusted diluted earnings per share for fiscal 2019 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 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 first 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, February 5, 2019. 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, 2019, confirmation number 7064558.

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 year 2019 presented throughout this release include, where applicable, the results of C. R. Bard, Inc. ("Bard") in the prior-year period, and also include adjustments 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 that 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 that were previously reported in the Medical segment and that 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; and the loss on debt extinguishment. We also provide these measures on a currency-neutral basis after eliminating the effect of foreign currency translation, where applicable. We calculate foreign currency-neutral percentages by converting our current-period local currency financial results using the prior period foreign currency exchange rates and comparing these adjusted amounts to our 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.

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 healthcare by developing innovative technology, services and solutions that help advance both clinical therapy for patients and clinical process for healthcare providers. BD and its 65,000 employees have a passion and commitment to help enhance the safety and efficiency of clinicians' care delivery process, enable laboratory scientists to accurately detect 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 healthcare. 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; 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; fluctuations in costs and availability of raw materials and in BD's ability to maintain favorable supplier arrangements and relationships; 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; 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; 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.

Contact:
Monique N. Dolecki, Investor Relations - 201-847-5378
Kristen Cardillo, Corporate Communications - 201-847-5657


     BECTON DICKINSON AND COMPANY



     CONSOLIDATED INCOME STATEMENTS



     (Unaudited; Amounts in millions, except share and per share data)




                                                                                
        Three Months Ended December 31,


                                                                           2018                     2017             % Change




     REVENUES                                                                  $
        4,160                                    $
      3,080            35.1





     Cost of products sold                                               2,187                                1,527                         43.2



     Selling and administrative expense                                  1,073                                  773                         38.9



     Research and development expense                                      258                                  191                         34.8



     Acquisitions and other restructurings                                  91                                  354                       (74.4)



     Other operating income, net                                         (335)                                                           100.0



     TOTAL OPERATING COSTS AND EXPENSES                                  3,273                                2,845                         15.1




     OPERATING INCOME                                                      888                                  235                        277.3





     Interest expense                                                    (171)                               (158)                         7.7



     Interest income, net                                                 (12)                                  44                      (128.3)



     Other income (expense), net                                            10                                 (16)                       163.6




     INCOME BEFORE INCOME TAXES                                            714                                  105                        580.7



     Income tax provision                                                  115                                  241                       (52.4)




     NET INCOME (LOSS)                                                     599                                (136)                       539.3



     Preferred stock dividends                                            (38)                                (38)



     NET INCOME (LOSS) APPLICABLE TO COMMON SHAREHOLDERS                         $
        562                                    $
      (174)          422.1






     EARNINGS PER SHARE



     Basic Earnings (Loss) per Share                                            $
        2.09                                   $
      (0.76)          375.0



     Diluted Earnings (Loss) per Share                                          $
        2.05                                   $
      (0.76)          369.7





     AVERAGE SHARES OUTSTANDING (in thousands)



     Basic                                                             269,035                  230,038



     Diluted                                                           274,256                  230,038


     BECTON DICKINSON AND COMPANY



     CONDENSED CONSOLIDATED BALANCE SHEETS



     (Amounts in millions)




                                                 December 31, 2018              September 30, 2018



                                                    (Unaudited)



     ASSETS



     Cash and equivalents                                            $
        943                     $
      1,140



     Restricted cash                                           98                      96



     Short-term investments                                     5                      17



     Trade receivables, net                                 2,216                   2,319



     Inventories                                            2,522                   2,451



     Assets held for sale                                                            137



     Prepaid expenses and other                             1,157                   1,251




     TOTAL CURRENT ASSETS                                   6,941                   7,411



     Property, plant and equipment, net                     5,362                   5,375



     Goodwill and other intangibles, net                   39,567                  40,041



     Other Assets                                           1,062                   1,078



     TOTAL ASSETS                                                 $
        52,932                    $
      53,904




     LIABILITIES AND SHAREHOLDERS' EQUITY



     Short-term debt                                               $
        3,254                     $
      2,601



     Other current liabilities                              3,891                   4,615



     Long-term debt                                        17,817                  18,894



     Long-term employee benefit obligations                   805                   1,056



     Deferred income taxes and other                        5,762                   5,743



     Shareholders' equity                                  21,404                  20,994



     TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                   $
        52,932                    $
      53,904



     BECTON DICKINSON AND COMPANY



     CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS



     (Unaudited; Amounts in millions)




                                                                                        Three Months Ended December 31,


                                                                                   2018                             2017




     OPERATING ACTIVITIES



     Net income (loss)                                                                     $
              599                        $
     (136)



     Depreciation and amortization                                                 563                                        291



     Change in operating assets and liabilities and other, net                   (918)                                       166




     NET CASH PROVIDED BY OPERATING ACTIVITIES                                     245                                        320




     INVESTING ACTIVITIES



     Capital expenditures                                                        (167)                                     (178)



     Acquisitions of businesses, net of cash acquired                                                                   (14,900)



     Proceeds from divestitures, net                                               476



     Other, net                                                                    (9)                                     (125)




     NET CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES                          299                                   (15,203)




     FINANCING ACTIVITIES



     Change in credit facility borrowings                                           50



     Proceeds from long-term debt and term loans                                                                           2,250



     Payments of debt and term loans                                             (453)



     Dividends paid                                                              (245)                                     (210)



     Other, net                                                                   (86)                                     (101)




     NET CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES                        (734)                                     1,938




     Effect of exchange rate changes on cash and equivalents and restricted cash   (5)                                         2




     NET DECREASE IN CASH AND EQUIVALENTS AND RESTRICTED CASH                    (195)                                  (12,943)



     OPENING CASH AND EQUIVALENTS AND RESTRICTED CASH                            1,236                                     14,179




     CLOSING CASH AND EQUIVALENTS AND RESTRICTED CASH                                    $
              1,042                        $
     1,236



       BECTON DICKINSON AND COMPANY



       SUPPLEMENTAL REVENUE INFORMATION



       REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES



       Three Months Ended December 31,



       (Unaudited; Amounts in millions)




                                                                
        A            
       B      C=(A-B)/B



                                                                  2018              2017       % Change




       
                BD MEDICAL

    ---


       Medication Delivery Solutions (a)                                $
       520                         $
       370             40.5



       Medication Management Solutions                            506                   471                         7.5



       Diabetes Care                                              145                   146                       (0.5)



       Pharmaceutical Systems                                      68                    54                        26.8



       TOTAL                                                          $
       1,239                       $
       1,040             19.1






       
                BD LIFE SCIENCES

    ---


       Preanalytical Systems                                            $
       201                         $
       184              8.8



       Diagnostic Systems                                         175                   167                         5.2



       Biosciences                                                108                   108                       (0.2)



       TOTAL                                                            $
       484                         $
       459              5.4






       
                BD INTERVENTIONAL

    ---


       Surgery (a)                                                      $
       275                         $
       152           
       NM



       Peripheral Intervention (a)                                191                     5                         
        NM



       Urology and Critical Care                                  197                                              
        NM




       TOTAL                                                            $
       664                         $
       157           
       NM






       TOTAL UNITED STATES                                            $
       2,387                       $
       1,657             44.1





              (a)                The presentation of prior-period
                                   amounts reflects a reclassification
                                   of $157 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 December 31, (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)                                $
        438                          $
        372                          $
       (20)        17.7           23.0



       Medication Management Solutions                            118                    116                                   (3)                  1.1          3.8



       Diabetes Care                                              129                    132                                   (5)                (2.2)         1.5



       Pharmaceutical Systems                                     212                    192                                   (4)                 10.5         12.6



       TOTAL                                                            $
        896                          $
        811                          $
       (32)        10.4           14.3






       
                BD LIFE SCIENCES

    ---


       Preanalytical Systems                                            $
        192                          $
        191                           $
       (9)         0.8            5.4



       Diagnostic Systems                                         207                    214                                   (7)                (3.6)       (0.2)



       Biosciences                                                173                    181                                   (5)                (4.3)       (1.6)



       TOTAL                                                            $
        572                          $
        586                          $
       (21)       (2.4)           1.2






       
                BD INTERVENTIONAL

    ---


       Surgery (a)                                                       $
        73                           $
        25                           $
       (2)     
        NM         
      NM



       Peripheral Intervention (a)                                145                      1                                   (5)                  
        NM           
      NM



       Urology and Critical Care                                   88                                                         (2)                  
        NM           
      NM



       TOTAL                                                            $
        306                           $
        26                           $
       (9)     
        NM         
      NM






       TOTAL INTERNATIONAL                                            $
        1,773                        $
        1,423                          $
       (62)        24.6           28.9





              (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 December 31, (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)                        $
       958                          $
       742                          $
       (20)        29.1           31.7



       Medication Management Solutions                    624                   587                                  (3)                  6.2          6.7



       Diabetes Care                                      274                   277                                  (5)                (1.3)         0.5



       Pharmaceutical Systems                             280                   245                                  (4)                 14.0         15.7



       TOTAL                                                  $
       2,135                        $
       1,852                          $
       (32)        15.3           17.0






       
                BD LIFE SCIENCES

    ---


       Preanalytical Systems                                    $
       393                          $
       375                           $
       (9)         4.7            7.1



       Diagnostic Systems                                 382                   381                                  (7)                  0.2          2.1



       Biosciences                                        281                   289                                  (5)                (2.8)       (1.1)



       TOTAL                                                  $
       1,056                        $
       1,045                          $
       (21)         1.0            3.0






       
                BD INTERVENTIONAL

    ---


       Surgery (a)                                              $
       348                          $
       177                           $
       (2)     
        NM         
      NM



       Peripheral Intervention (a)                        337                     6                                  (5)                  
        NM           
      NM



       Urology and Critical Care                          285                                                       (2)                  
        NM           
      NM



       TOTAL                                                    $
       970                          $
       183                           $
       (9)     
        NM         
      NM






       TOTAL REVENUES                                         $
       4,160                        $
       3,080                          $
       (62)        35.1           37.1





              (a)                   The presentation of prior-period
                                      amounts reflects a reclassification
                                      of $183 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 December 31,



       (Unaudited; Amounts in millions)




                                                                                             
          A                 
           B               C=A+B                
            D             
              E           
           F           
           G                    H=D+E+F+G        I=(C-H)/H



                                                                                               BD Reported              Divestiture        Comparable                BD Reported (b)            Bard Q1 (c)        Intercompany        Divestiture                               Comparable %
                                                                                                                         Adjustments                                                                                Adjustment          Adjustments                                  Change
                                                                                                                             (a)                                                                                        (d)                 (a)                   Comparable



                                                                                                      2018                           2018                     2017                   2017                                       2017




       
                BD MEDICAL

    ---


       Medication Delivery Solutions (b)                                                                    $
       520                     
              $                                       $
              520                                             $
       370                $
              145            $
      (3)  
      $              $
       512  1.6



       Medication Management Solutions                                                                506                                                    506                                            471                                                                                               471              7.5



       Diabetes Care                                                                                  145                                                    145                                            146                                                                                               146            (0.5)



       Pharmaceutical Systems                                                                          68                                                     68                                             54                                                                                                54             26.8



       TOTAL                                                                                              $
       1,239                     
              $                                     $
              1,239                                           $
       1,040                $
              145            $
      (3)  
      $            $
       1,182  4.8






       
                BD LIFE SCIENCES

    ---


       Preanalytical Systems                                                                                $
       201                     
              $                                       $
              201                                             $
       184            
     $                      
      $          
      $              $
       184  8.8



       Diagnostic Systems                                                                             175                                                    175                                            167                                                                                               167              5.2



       Biosciences                                                                                    108                            (4)                     105                                            108                                                                                 (10)           98              6.4



       TOTAL                                                                                                $
       484                                  $
     (4)                                $
              480                                             $
       459            
     $                      
      $                $
      (10)    $
       449  6.9






       
                BD INTERVENTIONAL

    ---


       Surgery (b)                                                                                          $
       275                     
              $                                       $
              275                                             $
       152                $
              105       
      $                $
      (10)    $
       247 11.3



       Peripheral Intervention (b)                                                                    191                                                    191                                              5                                   188                                                          193            (0.6)



       Urology and Critical Care                                                                      197                                                    197                                                                                 177                                                          177             11.5



       TOTAL                                                                                                $
       664                     
              $                                       $
              664                                             $
       157                $
              470       
      $                $
      (10)    $
       617  7.6






       TOTAL UNITED STATES                                                                                $
       2,387                                  $
     (4)                              $
              2,383                                           $
       1,657                $
              614            $
      (3)        $
      (20)  $
       2,248  6.0





              (a)                   The amounts for the quarters ended
                                      December 31, 2018 and 2017 include
                                      adjustments for BD's divestiture of
                                      its Advanced Bioprocessing
                                      business.  The amounts for the
                                      quarter ended December 31, 2017
                                      also include adjustments for BD's
                                      divestitures of its soft tissue
                                      core needle biopsy product line and
                                      Bard's divestiture of its Aspira(R)
                                      product line.



              (b)                   Reflects a reclassification of $157
                                      million associated with the
                                      movement, effective on January 1,
                                      2018, of certain product offerings
                                      from the Medical segment to the
                                      Interventional segment.



              (c)                   Amounts represent revenues for the
                                      quarter ended December 31, 2017.
                                      BD reported a Gore royalty amount,
                                      which was previously reported as
                                      revenues by Bard, as non-operating
                                      income in the current-year period.



              (d)                   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.


       BECTON DICKINSON AND COMPANY



       SUPPLEMENTAL INFORMATION



       RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - INTERNATIONAL



       Three Months Ended December 31, (continued)



       (Unaudited; Amounts in millions)




                                                                                               
          A                  
           B               C=A+B                
            D             
              E           
           F            G=D+E+F                 
           H                 I=(C-G-
                                                                                                                                                                                                                                                                                             H)/G



                                                                                                 BD Reported               Divestiture        Comparable                BD Reported (b)            Bard Q1 (c)        Divestiture
                                                                                                                            Adjustments                                                                                Adjustments
                                                                                                                                (a)                                                                                        (a)         Comparable                  FX Impact (d)        FXN % Change



                                                                                                        2018                            2018                     2017                   2017                                      2017




       
                BD MEDICAL

    ---


       Medication Delivery Solutions (b)                                                                      $
        438                     
              $                                       $
              438                                        $
        372                         $
              68       
      $                   $
        440   $
       (22)  4.3



       Medication Management Solutions                                                                  118                                                     118                                            116                                                                                     116                   (3)          3.8



       Diabetes Care                                                                                    129                                                     129                                            132                                                                                     132                   (5)          1.8



       Pharmaceutical Systems                                                                           212                                                     212                                            192                                                                                     192                   (4)         12.6



       TOTAL                                                                                                  $
        896                     
              $                                       $
              896                                        $
        811                         $
              68       
      $                   $
        880   $
       (34)  5.7






       
                BD LIFE SCIENCES

    ---


       Preanalytical Systems                                                                                  $
        192                     
              $                                       $
              192                                        $
        191                    
     $                      
      $                   $
        191   $
       (11)  6.3



       Diagnostic Systems                                                                               207                                                     207                                            214                                                                                     214                   (9)          0.8



       Biosciences                                                                                      173                             (5)                     168                                            181                                                            (10)                     171                   (6)          2.0



       TOTAL                                                                                                  $
        572                                  $
     (5)                                $
              567                                        $
        586                    
     $                            $
       (10)        $
        576   $
       (26)  3.0






       
                BD INTERVENTIONAL

    ---


       Surgery (b)                                                                                             $
        73                     
              $                                        $
              73                                         $
        25                         $
              49              $
       (2)         $
        71    $
       (2)  5.4



       Peripheral Intervention (b)                                                                      145                                                     145                                              1                              146                                                     147                   (5)          2.2



       Urology and Critical Care                                                                         88                                                      88                                                                             90                                                      90                   (2)        (1.0)



       TOTAL                                                                                                  $
        306                     
              $                                       $
              306                                         $
        26                        $
              285              $
       (2)        $
        309    $
       (9)  2.0






       TOTAL INTERNATIONAL                                                                                  $
        1,773                                  $
     (5)                              $
              1,768                                      $
        1,423                        $
              353             $
       (12)      $
        1,764   $
       (69)  4.1





              (a)                   The amounts for the quarters ended
                                      December 31, 2018 and 2017 include
                                      adjustments for BD's divestiture of
                                      its Advanced Bioprocessing
                                      business.  The amounts for the
                                      quarter ended December 31, 2017
                                      also include adjustments for BD's
                                      divestitures of its soft tissue
                                      core needle biopsy product line and
                                      Bard's divestiture of its Aspira(R)
                                      product line.



              (b)                   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.



              (c)                   Amounts represent revenues for the
                                      quarter ended December 31, 2017.



              (d)                   Under U.S. generally accepted
                                      accounting principles and as a
                                      result of Argentina's highly
                                      inflationary economy, the
                                      functional currency of the
                                      Company's operations in Argentina
                                      was the U.S. dollar for the quarter
                                      ended December 31, 2018.  The total
                                      foreign currency translation impact
                                      above includes $7 million that was
                                      calculated by comparing local
                                      currency revenues in Argentina for
                                      the quarter ended December 31,
                                      2018, translated using the prior-
                                      period exchange rate, to the
                                      reported U.S. dollar revenues for
                                      this same period.


       BECTON DICKINSON AND COMPANY



       SUPPLEMENTAL INFORMATION



       RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE REVENUE CHANGE - TOTAL



       Three Months Ended December 31, (continued)



       (Unaudited; Amounts in millions)




                                                                                                  A            
     B                      C=A+B                
            D             
              E           
           F                      G               H=D+E+F+G      
           I                  J=(C-H-
                                                                                                                                                                                                                                                                                                      I)/H



                                                                                       BD Reported                Divestiture        Comparable                BD Reported (b)            Bard Q1 (c)        Intercompany      Divestiture
                                                                                                                   Adjustments                                                                                Adjustment       Adjustments
                                                                                                                       (a)                                                                                        (d)              (a)                    Comparable       FX Impact (e)         FXN % Change



                                                                                               2018                            2018                     2017                   2017                                       2017




       
                BD MEDICAL

    ---


       Medication Delivery Solutions (b)                                                             $
       958                      
              $                                       $
              958                                           $
       742                   $
              213                         $
      (3)  
      $                     $
        952  $
       (22)  2.9



       Medication Management Solutions                                                         624                                                     624                                            587                                                                                                             587              (3)   6.7



       Diabetes Care                                                                           274                                                     274                                            277                                                                                                             277              (5)   0.6



       Pharmaceutical Systems                                                                  280                                                     280                                            245                                                                                                             245              (4)  15.7



       TOTAL                                                                                       $
       2,135                      
              $                                     $
              2,135                                         $
       1,852                   $
              213                         $
      (3)  
      $                   $
        2,062  $
       (34)  5.2






       
                BD LIFE SCIENCES

    ---


       Preanalytical Systems                                                                         $
       393                      
              $                                       $
              393                                           $
       375            
     $                                      
      $          
      $                     $
        375  $
       (11)  7.6



       Diagnostic Systems                                                                      382                                                     382                                            381                                                                                                             381              (9)   2.7



       Biosciences                                                                             281                             (9)                     273                                            289                                                                                  (20)                       269              (6)   3.6



       TOTAL                                                                                       $
       1,056                                   $
     (9)                              $
              1,047                                         $
       1,045            
     $                                      
      $                $
      (20)         $
        1,025  $
       (26)  4.7






       
                BD INTERVENTIONAL

    ---


       Surgery (b)                                                                                   $
       348                      
              $                                       $
              348                                           $
       177                   $
              153                    
      $                $
      (12)           $
        318   $
       (2) 10.0



       Peripheral Intervention (b)                                                             337                                                     337                                              6                                 334                                                                          340              (5)   0.6



       Urology and Critical Care                                                               285                                                     285                                                                               267                                                                          267              (2)   7.3



       TOTAL                                                                                         $
       970                      
              $                                       $
              970                                           $
       183                   $
              755                    
      $                $
      (12)           $
        925   $
       (9)  5.7






       TOTAL REVENUES                                                                              $
       4,160                                   $
     (9)                              $
              4,152                                         $
       3,080                   $
              968                         $
      (3)        $
      (33)         $
        4,012  $
       (69)  5.2





              (a)                   The amounts for the quarters ended
                                      December 31, 2018 and 2017 include
                                      adjustments for BD's divestiture of
                                      its Advanced Bioprocessing
                                      business.  The amounts for the
                                      quarter ended December 31, 2017
                                      also include adjustments for BD's
                                      divestitures of its soft tissue
                                      core needle biopsy product line and
                                      Bard's divestiture of its Aspira(R)
                                      product line.



              (b)                   Reflects a reclassification of $183
                                      million associated with the
                                      movement, effective on January 1,
                                      2018, of certain product offerings
                                      from the Medical segment to the
                                      Interventional segment.



              (c)                   Amounts represent revenues for the
                                      quarter ended December 31, 2017.
                                      BD reported a Gore royalty amount,
                                      which was previously reported as
                                      revenues by Bard, as non-operating
                                      income in the current-year period.



              (d)                   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.



              (e)                   Under U.S. generally accepted
                                      accounting principles and as a
                                      result of Argentina's highly
                                      inflationary economy, the
                                      functional currency of the
                                      Company's operations in Argentina
                                      was the U.S. dollar for the quarter
                                      ended December 31, 2018.  The total
                                      foreign currency translation impact
                                      above includes $7 million that was
                                      calculated by comparing local
                                      currency revenues in Argentina for
                                      the quarter ended December 31,
                                      2018, translated using the prior-
                                      period exchange rate, to the
                                      reported U.S. dollar revenues for
                                      this same period.


     BECTON DICKINSON AND COMPANY



     SUPPLEMENTAL INFORMATION



     RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS



     (Unaudited)




                                                                                                                                   
        Three Months Ended December 31,


                                                                                                    2018         2017       Growth                              Foreign   Foreign           Growth %  Foreign

                                                                                                                                                              Currency  Currency                     Currency

                                                                                                                                                            Translation Neutral                      Neutral

                                                                                                                                                                         Growth                      Growth %




     Reported Diluted Earnings (Loss) per Share                                                         $
     2.05                   $
        (0.76)                                   $
      2.81                    $
      (0.14)  $
      2.95  369.7  388.2

                                                                                                                                                                                                                                     %     %




     Purchase accounting adjustments ($379 million and $135 million pre-tax, respectively) (1)     1.38               0.59



     Restructuring costs ($41 million and $236 million pre-tax, respectively) (2)                  0.15               1.03



     Integration costs ($73 million and $74 million pre-tax, respectively) (2)                     0.27               0.32



     European regulatory initiative-related costs ($5 million pre-tax) (3)                         0.02



     Transaction costs ($1 million and $44 million pre-tax, respectively) (2)                                        0.19



     Net impact of gain on sale of business ($(335) million pre-tax) (4)                         (1.22)



     Financing impacts ($50 million pre-tax) (5)                                                                     0.22



     Hurricane recovery costs ($7 million pre-tax)                                                                   0.03



     Dilutive impact (6)                                                                                             0.28



     Impact of tax reform and income tax benefit of special items ($17 million and $135 million,   0.06               0.59


     respectively) (7)




     Adjusted Diluted Earnings per Share                                                                $
     2.70                     $
        2.48                                    $
      0.22                    $
      (0.15)  $
      0.37    8.9   14.9
                                                                                                                                                                                                                                     %     %





              (1)              Includes adjustments related to the
                                  purchase accounting for
                                  acquisitions impacting identified
                                  intangible assets and valuation of
                                  fixed assets and debt.



              (2)              Represents restructuring,
                                  integration and transaction costs
                                  associated with acquisitions.



              (3)              Represents initial costs required
                                  to develop processes and systems
                                  to comply with emerging
                                  regulations such as the European
                                  Union Medical Device Regulation
                                  ("EUMDR") and General Data
                                  Protection Regulation ("GDPR").



              (4)              Represents the pre-tax gain
                                  recognized during the period
                                  related to BD's sale of its
                                  Advanced Bioprocessing business.



              (5)              Represents financing impacts
                                  associated with the Bard
                                  acquisition.



              (6)              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 218,997.



              (7)              The amounts for the three months
                                  ended December 31, 2018 and 2017
                                  reflect additional tax expense,
                                  net, of $51 million and $270
                                  million, respectively, relating to
                                  new U.S. tax legislation.


     BECTON DICKINSON AND COMPANY



     SUPPLEMENTAL INFORMATION



     FY 2019 OUTLOOK RECONCILIATION




                                                     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


                                               BD Including Bard



                                                     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%






     FXN - Foreign Currency Neutral








     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%






     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.




              BECTON DICKINSON AND COMPANY
    SUPPLEMENTAL INFORMATION
    FY 2019 OUTLOOK RECONCILIATION (continued)


                                                                                                                                                        FY2019 Outlook


                                                                                                               Full Year           
              Full Year                                  
     % Increase
                                                                                                           FY2018                    FY2019 Outlook




              Reported Fully Diluted Earnings per Share                                                                  $
      0.60



              Purchase accounting adjustments ($1.733 billion pre-tax) (1)                                         6.55



              Restructuring costs ($344 million pre-tax) (2)                                                       1.30



              Integration costs ($344 million pre-tax) (2)                                                         1.30



              Transaction costs ($56 million pre-tax) (3)                                                          0.21



              Financing impacts ($49 million pre-tax) (4)                                                          0.19



              Hurricane recovery costs ($17 million pre-tax)                                                       0.07



              Losses on debt extinguishment ($16 million pre-tax) (5)                                              0.06



              Net impact of gain on sale of investment and asset impairments ($(151) million pre-tax) (6)        (0.57)



              Dilutive Impact (7)                                                                                  0.30



              Impact of tax reform and income tax benefit of special items ($265 million) (8)                      1.00




              Adjusted Fully Diluted Earnings per Share                                                                 $
      11.01                                     
     $12.05 to 12.15              ~10%






              Estimated FX Impact                                                                                                                                                             ~3.5%





              Adjusted FXN Growth                                                                                                                                                         13% - 14%





              FXN - Foreign Currency Neutral





              (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 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.



              (8)              Includes additional tax expense, net,
                                  of $640 million relating to new U.S.
                                  tax legislation.

View original content:http://www.prnewswire.com/news-releases/bd-announces-results-for-2019-first-fiscal-quarter-reaffirms-fiscal-2019-guidance-300789246.html

SOURCE BD (Becton, Dickinson and Company)