CooperCompanies Announces Fourth Quarter and Full Year 2020 Results

Rhea-AI Summary

CooperCompanies (NYSE: COO) reported its fiscal fourth quarter and full year results for the period ending October 31, 2020. Revenue fell by 1% year-over-year to $681.6 million, with CooperVision down 1% to $506.3 million, and CooperSurgical down 4% to $175.3 million. GAAP diluted EPS was $1.64, a 32% decrease from the prior year. Non-GAAP diluted EPS also dropped 4% to $3.16. Despite these declines, the company reported taking market share in its contact lens and fertility sectors.

Positive

• Market share increase in both contact lenses and fertility sectors.
• Improvements in non-GAAP gross margin to 68% from 67% year-over-year.
• Reduction in interest expense to $6.7 million from $14.6 million due to lower rates.

Negative

• Revenue decline of 1% year-over-year and 3% in constant currency.
• GAAP diluted EPS decreased by 32% year-over-year.
• Operating margin reduced to 15% from 21% in the previous year.

SAN RAMON, Calif., Dec. 03, 2020 (GLOBE NEWSWIRE) -- CooperCompanies (NYSE: COO) today announced financial results for its fiscal fourth quarter and full year ended October 31, 2020.

• Fourth quarter revenue decreased 1% year-over-year to $681.6 million. CooperVision (CVI) revenue down 1% to $506.3 million, and CooperSurgical (CSI) revenue down 4% to $175.3 million.
  
  
• Fourth quarter GAAP diluted earnings per share (EPS) $1.64, down 78 cents or 32% from last year's fourth quarter.
  
  
• Fourth quarter Non-GAAP diluted EPS $3.16, down 14 cents or 4% from last year's fourth quarter. See "Reconciliation of Selected GAAP Results to Non-GAAP Results" below.
  

Commenting on the results, Al White, Cooper’s President and CEO said, "This was a solid quarter where we took market share globally in both contact lenses and fertility. We're continuing to have success with our daily silicone hydrogel portfolio, with unique products like Biofinity Energys^®, and with our myopia management program which includes MiSight^® and our Ortho K lenses."

Fourth Quarter Operating Results

• Revenue $681.6 million, down 1% from last year’s fourth quarter, down 3% in constant currency.
  
  
• Gross margin 62% down from 66% in last year’s fourth quarter. On a non-GAAP basis, gross margin was 68%, up from 67% last year driven by improvements at both CooperVision and CooperSurgical.
  
  
• Operating margin 15% compared with 21% in last year’s fourth quarter. On a non-GAAP basis, operating margin was 27%, down from 28% last year driven primarily by planned MiSight^® investments.
  
  
• Interest expense $6.7 million compared with $14.6 million in last year's fourth quarter driven by lower interest rates and lower average debt.
  
  
• Total debt outstanding at the end of the quarter was $1,793.2 million with quarter-end cash and cash equivalents of $115.9 million. Adjusted leverage ratio (net debt over adjusted EBITDA) of 2.15x.
  
  
• Cash provided by operations $218.3 million offset by capital expenditures $107.0 million resulted in free cash flow of $111.3 million.

Fourth Quarter CooperVision (CVI) Revenue

• Revenue $506.3 million, down 1% from last year’s fourth quarter, down 3% in constant currency.
  
  
• Revenue by category:

										Constant Currency
		(In millions)				% of CVI Revenue		%chg		%chg
		4Q20				4Q20		y/y		y/y
	Toric	$	161.9			32%		4%		2%
	Multifocal	53.2				11%		3%		—%

FAQ

What are CooperCompanies' fourth quarter financial results for 2020?

CooperCompanies reported a fourth quarter revenue of $681.6 million, down 1% year-over-year, with GAAP diluted EPS of $1.64.

How did CooperVision perform in Q4 2020?

CooperVision's revenue for Q4 2020 was $506.3 million, representing a 1% decline from the previous year.

What was the non-GAAP EPS for CooperCompanies in Q4 2020?

The non-GAAP diluted EPS for CooperCompanies in Q4 2020 was $3.16, down 4% from the prior year's fourth quarter.

What was the gross margin for CooperCompanies in Q4 2020?

CooperCompanies reported a gross margin of 62% in Q4 2020, a decrease from 66% in the same quarter last year.