The Cooper Companies Inc.
) revealed that it has closed a 5-year Senior Unsecured Term Loan
of $300 million that will give financial flexibility to the
company in the way of extended maturity, additional capacity and
reduced interest rates. It will mature on Sep 12, 2018 and result
in annual interest savings of $370,000 (net of fees) in fiscal
ALIGN TECH INC (ALGN): Free Stock Analysis
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Cooper plans to use the proceeds from the term loan to repay its
$1 billion Senior Unsecured Revolving Line of Credit, which will
mature on May 31, 2017. The revolving credit facility is the
result of an amendment made to its credit agreement on May 31,
Cooper Companies reported earnings and revenues for the fiscal
third quarter ended Jul 31, 2013, both of which surpassed the
Zacks Consensus Estimate. The company's adjusted earnings of
$1.74 per share exceeded the year-ago level of $1.45 by 20% as
well as the Zacks Consensus Estimate by 3 cents. On a reported
basis, earnings per share improved 31.6% to $1.79 from $1.36 a
Revenues in the quarter grew 8.9% to $412.0 million, ahead of the
Zacks Consensus Estimate of $410 million. Thanks to the solid
CooperVision (CVI) and CooperSurgical (CSI) sales during the
quarter and their continued market share gains.
Gross margin improved 160 basis points to 65.1% from 63.5% in the
last year's fiscal third quarter. The increase was attributable
to lower royalty payment on silicone hydrogel lens sales, product
mix and increased manufacturing efficiencies, partially offset by
negative impact of currency, particularly the Japanese yen.
Cooper exited fiscal second quarter with higher cash and cash
equivalents of $25.5 million as of Jul 31, 2013 compared with
$12.8 million as of Oct 31, 2012. Total debt decreased 34.8% to
$243.6 million as of Jul 31, 2013 from $373.7 million as of Oct
31, 2012. Consequently, debt-to-capitalization ratio decreased
540 basis points to 9.2% from 14.6% as of Oct 31, 2012.
For the fourth fiscal quarter, Cooper Companies expects total
revenues between $410 million and $425 million, including CVI and
CSI revenues of $330 million-$340 million and $80 million-$85
million, respectively. Both reported and adjusted earnings are
expected in the range of $1.76-$1.81 for the quarter.
For fiscal 2013, COO upgraded the lower range of its revenue
guidance to the range of $1,586 million-$1,601 million compared
with the earlier guidance of $1,575 million-$1,605 million,
comprising CVI revenues between $1,271 million and $1,281 million
(previously $1,260 million to $1,280 million) and CSI revenues
between $315 million and $320 million (previously $315 million to
Cooper Companies also upgraded its reported and adjusted earnings
per share guidance for the fiscal year. The company now expects
reported earnings in the band of $6.57 to $6.62 compared with the
earlier range of $6.42 to $6.52 and adjusted earnings in the
range of $6.23 to $6.28 compared with the earlier range of $6.15
Currently, COO carries a Zacks Rank #2 (Buy). Other Medical
Supplies stocks that also worth a look include
STRAUMANN HLD N AKT
) with a Zacks Rank #1 (Strong Buy), and
Alphatec Holdings, Inc.
Align Technology Inc.
), both with a Zacks Rank #2 (Buy).