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The Cooper Companies Inc. (COO)
F1Q2012 Earnings Conference Call
March 8, 2012 5:00 PM ET
Kim Duncan – Director of Investor Relations
Bob Weiss – President and Chief Executive Officer
Greg Matz – Vice President and Chief Financial Officer
Larry Keusch – Morgan Keegan
Jeff Johnson – Robert W. Baird
Steve Willoughby – Cleveland Research
Chris Cooley – Stephens
Matthew O’Brien – William Blair
Larry Biegelsen – Wells Fargo
Kim Gailun – JP Morgan
Joanne Wuensch – BMO Capital Market
Amit Bhalla – Citi
Previous Statements by COO
» The Cooper Companies' CEO Presents at JP Morgan Healthcare Conference (Transcript)
» The Cooper Companies CEO Discusses F4Q11 Results - Earnings Call Transcript
» The Cooper Companies CEO Discusses F3Q11 Results - Earnings Call Transcript
I would now like to turn the conference over to your host for today Ms. Kim Duncan, Senior Director of Investor Relations. Please go ahead ma’am.
Good afternoon and welcome to The Cooper Companies' first quarter 2012 earnings conference call. I'm Kim Duncan, Senior Director of Investor Relations, and joining me on today's call are Bob Weiss, President and Chief Executive Officer; Greg Matz, Vice President and Chief Financial Officer, and Al White, VP, Investor Relations, Treasurer and Chief Strategic Officer.
Before we get started, I'd like to remind you that this conference call contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, including all revenue and earnings per share guidance, and other statements regarding anticipated results of operations, market conditions and integration of any acquisitions.
Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise, and are subject to risks and uncertainties. Events that could cause our actual results and future actions of the Company to differ materially from those described in forward-looking statements are set forth under the caption, 'Forward-Looking Statements,' in today's earnings release, and are described in our SEC filings, including the business section of Cooper's Annual Report on Form 10-K. These are publicly available and on request from the Company's Investor Relations department.
Now, before I turn the call over to Bob, let me comment on the agenda for the call. Bob will begin by providing highlights on the quarter, followed by Greg who will then discuss first quarter results.
We will keep the formal presentation to roughly 30 minutes then open up the call for questions. We expect the call to last approximately one hour. We request that anyone asking questions please limit yourselves to one question. Should you have any additional questions, please call our Investor line at 925-460-3663 or email firstname.lastname@example.org. As a reminder, this call is being webcast and a copy of the earnings release is available through the Investor Relations section of the Cooper Companies' website.
And with that, I'll turn the call over to Bob for his opening remarks.
Thank you, Kim. Good afternoon good evening everyone. After a successful 2011 we started 2012 out strong. Our Biofinity and Proclear momentum continued for the first quarter of 2012 we put up solid top line growth plus 11% also in constant currency. We delivered $326 million in revenue, our gross profit margin achieved 65% with the strong top line, solid margins, lower interest expense non-GAAP earnings per share was up 32% to $1.12 35% on a GAAP basis.
The soft contact lens market rebounded in calendar year fourth quarter to 5% to provision at 7%. Key takeaways from today’s call we again put up great results with strong revenue growth, good margins, favorable impact from lowering interest expense with solid bottom line. Biofinity global rollout continues with Biofinity Sphere in Japan and Biofinity Multifocal in the United States and Europe. This work horse sealed 40% constant currency growth in our silicone hydrogel family Biofinity and Avaira.
During the quarter, given the strength of our balance sheet and free cash flow $200 million on an annualized basis we announced the share repurchase program of up to $150 million. We in fact executed on part of the plan buying 666,000 shares for $46 million in a transaction that was $0.01 accretive for the quarter and will be $0.05 accretive for the fiscal year. I will continue to put solid results in free cash flow we continue to invest. Our sales force expansion, marketing and R&D expenses are up in the 17% to 18% range.
For competitive reasons we won’t give the exact numbers but our sales force expansion is 22% in the past 15 months and overall 36% in the past two and a quarter year. During the same two and a quarter year period our G&A net count is up only 11% so we are leveraging what we need to leverage. There were no callout GAAP numbers equal non-GAAP numbers for the quarter.
Nothing major with the FDA on Avaira Toric we have ongoing dialogue with them and still hoping to relaunch our Avaira Toric ends April of this year. We made the decision to launch a single use single silicon hydrogel this year and will be began manufacturing shortly. For competitive reasons I won’t provide any more at this time.
Our silicon hydrogel family is driving our growth. During the first quarter the family achieved $87 million in revenues that equates to 40% constant currency increase versus the prior year. Silicon hydrogel is now 32% of our CDI revenues. We continue to feel positive about future of our silicon hydrogel sales driven by multiple factors this includes success of Biofinity Multifocal launch and $150 million silicon hydrogel multifocal market and the launch of Biofinity Sphere in Japan’s $400 million silicon hydrogel market.