BD Announces Results For 2015 Fourth Fiscal Quarter And Full Year; Provides Fiscal 2016 Guidance

- Announces full fiscal year adjusted revenues of $10.302 billion, an increase of 22.0 percent, or 29.5 percent on a currency-neutral basis. On a comparable, currency-neutral basis, adjusted revenues grew 5.3 percent for the full year. As reported, full-year revenues increased 21.7 percent to $10.282 billion.

- For the full fiscal year, adjusted diluted earnings per share of $7.16 increased 10.2 percent, or 21.2 percent on a currency-neutral basis. As reported, full-year diluted earnings per share were $3.35.

- Expects full-year fiscal 2016 adjusted diluted earnings per share to be between $8.37 and $8.44 including the estimated unfavorable impact from foreign currency. This represents growth of approximately 17.0 to 18.0 percent. On a currency-neutral basis, full-year fiscal 2016 adjusted diluted earnings per share are expected to be between $8.73 and $8.80, which represents growth of 22.0 to 23.0 percent. These fiscal 2016 earnings per share expectations include approximately 22.0 percentage points of accretion from the CareFusion acquisition. As reported, the Company expects full fiscal year diluted earnings per share to be between $6.57 and $6.64.

Nov 04, 2015, 06:00 ET from BD (Becton, Dickinson and Company)

FRANKLIN LAKES, N.J., Nov. 4, 2015 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly adjusted revenues of $3.067 billion for the fourth fiscal quarter ended September 30, 2015, an increase of 39.3 percent over the prior-year period as reported, or 49.1 percent on a currency-neutral basis.  On a comparable, currency-neutral basis, fourth quarter adjusted revenues grew 5.1 percent.  As reported, fourth quarter revenues were $3.059 billion.  For the full fiscal year ended September 30, 2015, BD reported adjusted revenues of $10.302 billion, an increase of 22.0 percent over the prior-year period as reported, or 29.5 percent on a currency-neutral basis.  On a comparable, currency-neutral basis, full fiscal year adjusted revenues grew 5.3 percent.  As reported, full fiscal year revenues were $10.282 billion.

"Fiscal 2015 was a significant year for BD with the successful completion of the largest acquisition in the Company's history," said Vincent A. Forlenza, Chairman, CEO and President. "We are very proud of our strong fourth quarter and fiscal year 2015 results, which exceeded our expectations.  We enter fiscal 2016 with continued confidence in our ability to execute our strategy, deliver against our financial commitments, and return value to our shareholders."

All "comparable" basis revenue growth rates presented throughout this release include the results of CareFusion in the current and prior-year periods.  For reconciliations of these revenue amounts and growth rates to the most directly comparable GAAP measures, please refer to the tables at the end of this release.

Fourth Quarter and Full Year Fiscal 2015 Operating Results Adjusted diluted earnings per share were $1.94, compared with $1.74 in the prior-year period. This represents an increase of 11.5 percent, or 21.8 percent on a currency-neutral basis. On a reported basis, diluted earnings per share for the fourth quarter were $0.84 compared with $1.53 in the prior-year period.

For the full fiscal year ended September 30, 2015, adjusted diluted earnings per share were $7.16, compared with $6.50 in the prior-year period. This represents an increase of 10.2 percent, or 21.2 percent on a currency-neutral basis. On a reported basis, diluted earnings per share were $3.35, compared with $5.99 in the prior-year period.

Current and prior-year adjusted results exclude the impact of the non-cash amortization of intangible assets and other certain specified items. These specified items are detailed in the accompanying reconciliation of reported diluted earnings per share to adjusted diluted earnings per share.

Segment Results In the BD Medical segment, worldwide adjusted revenues for the quarter were $2.091 billion, an increase of 75.3 percent over the prior-year period as reported, or 86.6 percent on a currency-neutral basis.  On a comparable, currency-neutral basis, adjusted Medical revenues grew 5.2 percent, which reflects strong sales across the Medication Management Solutions, Medication and Procedural Solutions, Pharmaceutical Systems, and Diabetes Care units, partially offset by a decline in the Respiratory Solutions unit.   On a reported basis, Medical revenues were $2.083 billion.

For the twelve-month period ended September 30, 2015, BD Medical adjusted revenues of $6.480 billion increased 41.7 percent over the prior-year period as reported, or 50.2 percent on a currency-neutral basis.  On a comparable, currency-neutral basis, adjusted revenues grew 5.5 percent.  On a reported basis, revenues were $6.460 billion.

In the BD Life Sciences segment, worldwide revenues for the quarter were $976 million, a decrease of 3.3 percent from the prior-year period, or an increase of 4.8 percent on a currency-neutral basis. The segment's results reflect solid growth in the Preanalytical Systems and Diagnostic Systems units, and moderate growth in the Biosciences unit.

For the twelve-month period ended September 30, 2015, BD Life Sciences revenues of $3.822 billion decreased 1.3 percent from the prior-year period, and increased 5.0 percent on a currency-neutral basis.

Geographic Results Fourth quarter adjusted revenues in the U.S. of $1.640 billion represent an increase of 88.3 percent over the prior-year period as reported. On a comparable basis, adjusted U.S. revenues increased 4.6 percent. Within the BD Medical segment, growth was driven by strong sales in the Medication Management Solutions and Medication and Procedural Solutions units, partially offset by a decline in the Respiratory Systems unit.  Growth in the BD Life Sciences segment was driven by strong performance in the Biosciences unit.  On a reported basis, U.S. revenues were $1.632 billion.

Revenues outside of the U.S. were $1.427 billion, representing an increase of 7.2 percent over the prior-year period, or an increase of 23.4 percent on a currency-neutral basis. On a comparable, currency-neutral basis, international revenues grew 5.5 percent which reflects continued strength in Western Europe.

For the twelve-month period ended September 30, 2015, adjusted revenues in the U.S. were $5.090 billion, an increase of 49.0 percent over the prior-year period as reported.  On a comparable basis, U.S. revenues grew 4.1 percent. On a reported basis, U.S. revenues were $5.069 billion.  Revenues outside of the U.S. were $5.213 billion, an increase of 3.6 percent over the prior-year period as reported, or an increase of 16.2 percent on a currency-neutral basis. On a comparable, currency-neutral basis, revenues outside the U.S. grew 6.6 percent.  

Fiscal 2016 Outlook for Full Year The Company estimates that currency-neutral adjusted revenues for the full fiscal year 2016, including the accretion from the acquisition of CareFusion, will increase 24.5 to 25.0 percent. Including the impact of foreign currency, adjusted revenues are expected to increase 23.0 to 23.5 percent.  On a comparable, currency-neutral basis, the Company estimates organic adjusted revenues will increase 4.5 to 5.0 percent. As reported, the Company expects full fiscal year revenues to increase 23.0 to 23.5 percent.

The Company expects adjusted diluted earnings per share to be between $8.37 and $8.44 for the full fiscal year 2016 including the estimated unfavorable impact from foreign currency. This represents growth of approximately 17.0 to 18.0 percent.  On a currency-neutral basis, full-year fiscal 2016 adjusted diluted earnings per share are expected to be between $8.73 and $8.80, which represents growth of 22.0 to 23.0 percent over 2015 adjusted diluted earnings per share of $7.16.  Adjusted diluted earnings per share exclude, among other specified items, the non-cash amortization of intangible assets, and include approximately 22.0 percentage points of accretion from the CareFusion acquisition.  As reported, the Company expects full fiscal year diluted earnings per share to be between $6.57 and $6.64.

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) Wednesday, November 4, 2015.  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 Wednesday, November 11, 2015, confirmation number 51724857.

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.

About BD BD is a leading medical technology company that partners with customers and stakeholders to address many of the world's most pressing and evolving health needs. Our innovative solutions are focused on improving medication management and patient safety; supporting infection prevention practices; equipping surgical and interventional procedures; improving drug delivery; aiding anesthesiology and respiratory care; advancing cellular research and applications; enhancing the diagnosis of infectious diseases and cancers; and supporting the management of diabetes. We are more than 45,000 associates in 50 countries who strive to fulfill our purpose of "Helping all people live healthy lives" by advancing the quality, accessibility, safety and affordability of healthcare around the world. In 2015, BD welcomed CareFusion and its products into the BD family of solutions. For more information on BD, please visit www.bd.com.

***

This press release, including the section entitled "Fiscal 2016 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 CareFusion's 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; potential cuts in governmental healthcare spending, which could result in reduced demand for our product or downward pricing pressure; measures to contain healthcare costs; adverse changes in regional, national or foreign economic conditions, including any impact on our ability to access credit markets and finance our operations, the demand for our products and services as a result of reduced government funding, lower utilization rates or otherwise, or our suppliers' ability to provide products needed for our operations; changes in interest or foreign currency exchange rates; our ability to successfully integrate any businesses we acquire; the adverse impact of cyber-attacks on our information systems; competitive factors including technological advances and new products introduced by competitors; pricing and market pressures; difficulties inherent in product development, delays in product introductions and uncertainty of market acceptance of new products; increases in energy costs and their effect on, among other things, the cost of producing BD's products; efficacy or safety concerns relating to product recalls; fluctuations in costs and availability of raw materials and in BD's ability to maintain favorable supplier arrangements and relationships; new or changing laws and regulations impacting our business or changes in enforcement practices with respect to such laws; uncertainties of litigation (as described in BD's filings with the Securities and Exchange Commission); future healthcare reform, including changes in government pricing and reimbursement policies or other cost containment reforms; the effects of potential pandemic diseases; 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,

2015

2014

% Change

REVENUES

$

3,059

$

2,202

38.9

Cost of products sold

1,630

1,099

48.2

Selling and administrative expense

756

561

34.8

Research and development expense

196

140

39.6

Acquisition-related costs

182

-

        NM 

TOTAL OPERATING COSTS

     AND EXPENSES

2,764

1,801

53.5

OPERATING INCOME

296

401

(26.3)

Interest expense

(99)

(36)

        NM 

Interest income

(5)

10

        NM 

Other (expense) income, net

(2)

1

        NM 

INCOME BEFORE INCOME TAXES

190

376

(49.6)

Income tax provision

9

76

(88.4)

NET INCOME

$

181

$

301

(39.9)

EARNINGS PER SHARE

Basic Earnings per Share

$

0.86

$

1.56

(44.9)

Diluted Earnings per Share

$

0.84

$

1.53

(45.1)

AVERAGE SHARES OUTSTANDING (in thousands)

     Basic

210,985

192,332

     Diluted

215,719

196,460

NM - Not Meaningful

 

 

BECTON DICKINSON AND COMPANY

CONSOLIDATED INCOME STATEMENTS

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

Twelve Months Ended September 30,

2015

2014

% Change

REVENUES

$

10,282

$

8,446

21.7

Cost of products sold

5,587

4,145

34.8

Selling and administrative expense

2,563

2,145

19.5

Research and development expense

632

550

14.8

Acquisition-related costs

426

-

        NM 

TOTAL OPERATING COSTS

     AND EXPENSES

9,207

6,840

34.6

OPERATING INCOME

1,074

1,606

(33.1)

Interest expense

(371)

(135)

        NM 

Interest income

15

46

(67.0)

Other income, net 

21

5

        NM 

INCOME BEFORE INCOME TAXES

739

1,522

(51.4)

Income tax provision

44

337

(87.0)

NET INCOME

$

695

$

1,185

(41.3)

EARNINGS PER SHARE

Basic Earnings per Share

$

3.43

$

6.13

(44.0)

Diluted Earnings per Share

$

3.35

$

5.99

(44.1)

AVERAGE SHARES OUTSTANDING (in thousands)

     Basic

202,537

193,299

     Diluted

207,509

197,709

NM - Not Meaningful

 

 

 

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

D=(A-B)/B

E=(C-B)/B

As Reported

Adjusted

 % Change 

2015

2014

2015

 Reported 

Adjusted

BD MEDICAL

   Medication and Procedural Solutions

$

481

$

257

$

481

87.0

87.0

   Medication Management Solutions

390

-

390

        NM 

        NM 

   Diabetes Care

130

123

130

5.7

5.7

   Pharmaceutical Systems

78

76

78

2.5

2.5

   Respiratory Solutions

133

-

133

        NM 

        NM 

   Deferred Revenue Adjustment *

(8)

-

-

        NM 

-

TOTAL

$

1,203

$

456

$

1,211

164.1

165.8

BD LIFE SCIENCES

   Preanalytical Systems

$

173

$

171

$

173

1.5

1.5

   Diagnostic Systems

146

148

146

(1.8)

(1.8)

   Biosciences

110

96

110

14.5

14.5

TOTAL

$

429

$

415

$

429

3.3

3.3

TOTAL UNITED STATES

$

1,632

$

871

$

1,640

87.4

88.3

* In accordance with U.S. GAAP business combination accounting rules, CareFusion's deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date.  The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

NM - Not Meaningful

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL

Three Months Ended September 30, (continued)

(Unaudited; Amounts in millions)

A

B

C

D=(A-B)/B

E=(A-B-C)/B

As Reported

FX

 % Change 

2015

2014

Impact

 Reported 

 FXN 

BD MEDICAL

   Medication and Procedural Solutions

$

356

$

331

$

(52)

7.6

23.3

   Medication Management Solutions

89

-

(14)

        NM 

        NM 

   Diabetes Care

127

141

(23)

(10.2)

6.0

   Pharmaceutical Systems

254

265

(39)

(4.0)

10.8

   Respiratory Solutions

54

-

(6)

        NM 

        NM 

TOTAL

$

880

$

737

$

(134)

19.4

37.6

BD LIFE SCIENCES

   Preanalytical Systems

$

175

$

187

$

(30)

(6.4)

9.8

   Diagnostic Systems

196

202

(29)

(2.9)

11.5

   Biosciences

176

205

(22)

(14.3)

(3.5)

TOTAL

$

547

$

594

$

(81)

(7.9)

5.8

TOTAL INTERNATIONAL

$

1,427

$

1,331

$

(216)

7.2

23.4

NM - Not Meaningful

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL

Three Months Ended September 30, (continued)

(Unaudited; Amounts in millions)

A

B

C

D

E=(A-B)/B

F=(A-B-D)/B

G=(C-B)/B

H=(C-B-D)/B

 % Change 

As Reported

Adjusted

FX

Adjusted

2015

2014

2015

Impact

 Reported 

 FXN 

 Adjusted 

 FXN 

BD MEDICAL

   Medication and Procedural Solutions

$

836

$

588

$

836

$

(52)

42.3

51.2

42.3

51.2

   Medication Management Solutions

479

-

479

(14)

        NM 

        NM 

        NM 

        NM 

   Diabetes Care

257

264

257

(23)

(2.8)

5.8

(2.8)

5.8

   Pharmaceutical Systems

332

341

332

(39)

(2.6)

9.0

(2.6)

9.0

   Respiratory Solutions

187

-

187

(6)

        NM 

        NM 

        NM 

        NM 

   Deferred Revenue Adjustment *

(8)

-

-

-

        NM 

        NM 

-

-

TOTAL

$

2,083

$

1,193

$

2,091

$

(134)

74.7

85.9

75.3

86.6

BD LIFE SCIENCES

   Preanalytical Systems

$

349

$

358

$

349

$

(30)

(2.6)

5.8

(2.6)

5.8

   Diagnostic Systems

342

350

342

(29)

(2.4)

5.9

(2.4)

5.9

   Biosciences

286

301

286

(22)

(5.1)

2.2

(5.1)

2.2

TOTAL

$

976

$

1,009

$

976

$

(81)

(3.3)

4.8

(3.3)

4.8

TOTAL REVENUES

$

3,059

$

2,202

$

3,067

$

(216)

38.9

48.7

39.3

49.1

* In accordance with U.S. GAAP business combination accounting rules, CareFusion's deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date.  The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

NM - Not Meaningful

 

 

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

D=(A-B)/B

E=(C-B)/B

As Reported

Adjusted

 % Change 

2015

2014

2015

 Reported 

Adjusted

BD MEDICAL

   Medication and Procedural Solutions

$

1,483

$

1,016

$

1,483

46.0

46.0

   Medication Management Solutions

832

-

832

        NM 

        NM 

   Diabetes Care

491

481

491

2.2

2.2

   Pharmaceutical Systems

304

303

304

0.3

0.3

   Respiratory Solutions

297

-

297

        NM 

        NM 

   Deferred Revenue Adjustment *

(20)

-

-

        NM 

-

TOTAL

$

3,386

$

1,799

$

3,407

88.2

89.4

BD LIFE SCIENCES

   Preanalytical Systems

$

689

$

678

$

689

1.7

1.7

   Diagnostic Systems

592

573

592

3.1

3.1

   Biosciences

402

366

402

9.7

9.7

TOTAL

$

1,683

$

1,617

$

1,683

4.0

4.0

TOTAL UNITED STATES

$

5,069

$

3,417

$

5,090

48.4

49.0

* In accordance with U.S. GAAP business combination accounting rules, CareFusion's deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date.  The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

NM - Not Meaningful

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL

Twelve Months Ended September 30, (continued)

(Unaudited; Amounts in millions)

A

B

C

D=(A-B)/B

E=(A-B-C)/B

As Reported

FX

 % Change 

2015

2014

Impact

 Reported 

 FXN 

BD MEDICAL

   Medication and Procedural Solutions

$

1,367

$

1,292

$

(147)

5.8

17.2

   Medication Management Solutions

201

-

(34)

        NM 

        NM 

   Diabetes Care

521

557

(69)

(6.5)

6.0

   Pharmaceutical Systems

863

926

(124)

(6.8)

6.7

   Respiratory Solutions

122

-

(14)

        NM 

        NM 

TOTAL

$

3,074

$

2,774

$

(389)

10.8

24.8

BD LIFE SCIENCES

   Preanalytical Systems

$

701

$

734

$

(90)

(4.5)

7.8

   Diagnostic Systems

708

728

(84)

(2.8)

8.7

   Biosciences

730

793

(69)

(7.9)

0.8

TOTAL

$

2,139

$

2,255

$

(244)

(5.1)

5.7

TOTAL INTERNATIONAL

$

5,213

$

5,029

$

(633)

3.6

16.2

NM - Not Meaningful

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL

Twelve Months Ended September 30, (continued)

(Unaudited; Amounts in millions)

A

B

C

D

E=(A-B)/B

F=(A-B-D)/B

G=(C-B)/B

H=(C-B-D)/B

 % Change 

As Reported

Adjusted

FX

Adjusted

2015

2014

2015

Impact

 Reported 

 FXN 

 Adjusted 

 FXN 

BD MEDICAL

   Medication and Procedural Solutions

$

2,850

$

2,307

$

2,850

$

(147)

23.5

29.9

23.5

29.9

   Medication Management Solutions

1,033

-

1,033

(34)

        NM 

        NM 

        NM 

        NM 

   Diabetes Care

1,012

1,037

1,012

(69)

(2.4)

4.3

(2.4)

4.3

   Pharmaceutical Systems

1,167

1,229

1,167

(124)

(5.0)

5.1

(5.0)

5.1

   Respiratory Solutions

419

-

419

(14)

        NM 

        NM 

        NM 

        NM 

   Deferred Revenue Adjustment *

(20)

-

-

-

        NM 

        NM 

-

-

TOTAL

$

6,460

$

4,573

$

6,480

$

(389)

41.3

49.8

41.7

50.2

BD LIFE SCIENCES

   Preanalytical Systems

$

1,391

$

1,412

$

1,391

$

(90)

(1.5)

4.9

(1.5)

4.9

   Diagnostic Systems

1,299

1,301

1,299

(84)

(0.2)

6.3

(0.2)

6.3

   Biosciences

1,132

1,159

1,132

(69)

(2.4)

3.6

(2.4)

3.6

TOTAL

$

3,822

$

3,872

$

3,822

$

(244)

(1.3)

5.0

(1.3)

5.0

TOTAL REVENUES

$

10,282

$

8,446

$

10,302

$

(633)

21.7

29.2

22.0

29.5

* In accordance with U.S. GAAP business combination accounting rules, CareFusion's deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date.  The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

NM - Not Meaningful

 

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE ADJUSTED REVENUE CHANGE - UNITED STATES

Three Months Ended September 30,

(Unaudited; Amounts in millions)

A

B

C=A+B

D

E

F=D+E

G=(C-F)/F

Deferred 

BD

CFN

Comparable

Comparable

Reported

Revenue

Adjusted

Reported

Reported

Historical

Adjusted

2015

Adjustment

2015

2014

2014

2014

% Change

BD MEDICAL 

   Medication and Procedural Solutions

$

481

$

-

$

481

$

257

$

199

$

456

5.4

   Medication Management Solutions

390

-

390

-

346

346

12.7

   Diabetes Care

130

-

130

123

-

123

5.7

   Pharmaceutical Systems

78

-

78

76

-

76

2.5

   Respiratory Solutions

133

-

133

-

152

152

(12.5)

   Deferred Revenue Adjustment *

(8)

8

-

-

-

-

-

TOTAL

$

1,203

$

8

$

1,211

$

456

$

697

$

1,152

5.1

BD LIFE SCIENCES

   Preanalytical Systems

$

173

$

-

$

173

$

171

$

-

$

171

1.5

   Diagnostic Systems

146

-

146

148

-

148

(1.8)

   Biosciences

110

-

110

96

-

96

14.5

TOTAL

$

429

$

-

$

429

$

415

$

-

$

415

3.3

TOTAL UNITED STATES

$

1,632

$

8

$

1,640

$

871

$

697

$

1,567

4.6

* In accordance with U.S. GAAP business combination accounting rules, CareFusion's deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date.  The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE FXN REVENUE CHANGE - INTERNATIONAL

Three Months Ended September 30, (continued)

(Unaudited; Amounts in millions)

A

B

C

D=B+C

E

F=(A-D-E)/D

BD

CFN

Comparable

Comparable

Comparable

Reported

Reported

Reported

Historical

FX

FXN

2015

2014

2014

2014

Impact

% Change

BD MEDICAL 

   Medication and Procedural Solutions

$

356

$

331

$

60

$

391

$

(52)

4.5

   Medication Management Solutions

89

-

97

97

(14)

5.5

   Diabetes Care

127

141

-

141

(23)

6.0

   Pharmaceutical Systems

254

265

-

265

(39)

10.8

   Respiratory Solutions

54

-

69

69

(6)

(12.2)

TOTAL

$

880

$

737

$

226

$

963

$

(134)

5.4

BD LIFE SCIENCES

   Preanalytical Systems

$

175

$

187

$

-

$

187

$

(30)

9.8

   Diagnostic Systems

196

202

-

202

(29)

11.5

   Biosciences

176

205

-

205

(22)

(3.5)

TOTAL

$

547

$

594

$

-

$

594

$

(81)

5.8

TOTAL INTERNATIONAL

$

1,427

$

1,331

$

226

$

1,557

$

(216)

5.5

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE ADJUSTED FXN REVENUE CHANGE - TOTAL

Three Months Ended September 30, (continued)

(Unaudited; Amounts in millions)

A

B

C=A+B

D

E

F=D+E

G

H=(C-F-G)/F

Comparable

Deferred 

BD

CFN

Comparable

Comparable

Adjusted

Reported

Revenue

Adjusted

Reported

Reported

Historical

FX

FXN

2015

Adjustment

2015

2014

2014

2014

Impact

% Change

BD MEDICAL 

   Medication and Procedural Solutions

$

836

$

-

$

836

$

588

$

258

$

846

$

(52)

5.0

   Medication Management Solutions

479

-

479

-

443

443

(14)

11.1

   Diabetes Care

257

-

257

264

-

264

(23)

5.8

   Pharmaceutical Systems

332

-

332

341

-

341

(39)

9.0

   Respiratory Solutions

187

-

187

-

220

220

(6)

(12.4)

   Deferred Revenue Adjustment *

(8)

8

-

-

-

-

-

-

TOTAL

$

2,083

$

8

$

2,091

$

1,193

$

922

$

2,115

$

(134)

5.2

BD LIFE SCIENCES

   Preanalytical Systems

$

349

$

-

$

349

$

358

$

-

$

358

$

(30)

5.8

   Diagnostic Systems

342

-

342

350

-

350

(29)

5.9

   Biosciences

286

-

286

301

-

301

(22)

2.2

TOTAL

$

976

$

-

$

976

$

1,009

$

-

$

1,009

$

(81)

4.8

TOTAL REVENUES

$

3,059

$

8

$

3,067

$

2,202

$

922

$

3,124

$

(216)

5.1

* In accordance with U.S. GAAP business combination accounting rules, CareFusion's deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date.  The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE ADJUSTED REVENUE CHANGE - UNITED STATES

Twelve Months Ended September 30,

(Unaudited; Amounts in millions)

A

B

C=A+B

D

E=C+D

F

G

H=F+G

I=(E-H)/H

Comparable

Deferred 

CFN

Historical

BD

CFN

Comparable

Comparable

Reported

Revenue

Adjusted

Reported

Adjusted

Reported

Reported

Historical

Adjusted

2015

Adjustment

2015

1st Half 2015 **

2015

2014

2014

2014

% Change

BD MEDICAL 

   Medication and Procedural Solutions

$

1,483

$

-

$

1,483

$

427

$

1,910

$

1,016

$

800

$

1,816

5.2

   Medication Management Solutions

832

-

832

843

1,675

-

1,607

1,607

4.2

   Diabetes Care

491

-

491

-

491

481

-

481

2.2

   Pharmaceutical Systems

304

-

304

-

304

303

-

303

0.3

   Respiratory Solutions

297

-

297

333

630

-

604

604

4.3

   Deferred Revenue Adjustment *

(20)

20

-

-

-

-

-

-

-

TOTAL

$

3,386

$

20

$

3,407

$

1,603

$

5,010

$

1,799

$

3,011

$

4,810

4.2

BD LIFE SCIENCES

   Preanalytical Systems

$

689

$

-

$

689

$

-

$

689

$

678

$

-

$

678

1.7

   Diagnostic Systems

592

-

592

-

592

573

-

573

3.1

   Biosciences

402

-

402

-

402

366

-

366

9.7

TOTAL

$

1,683

$

-

$

1,683

$

-

$

1,683

$

1,617

$

-

$

1,617

4.0

TOTAL UNITED STATES

$

5,069

$

20

$

5,090

$

1,603

$

6,693

$

3,417

$

3,011

$

6,427

4.1

* In accordance with U.S. GAAP business combination accounting rules, CareFusion's deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date.  The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

** For the quarters ended December 31, 2014 and March 31, 2015

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE FXN REVENUE CHANGE - INTERNATIONAL

Twelve Months Ended September 30, (continued)

(Unaudited; Amounts in millions)

A

B

C=A+B

D

E

F=D+E

G

H=(C-F-G)/F

CFN

Comparable

BD

CFN

Comparable

Comparable

Comparable

Reported

Reported

Historical

Reported

Reported

Historical

FX

FXN

2015

1st Half 2015 *

2015

2014

2014

2014

Impact

% Change

BD MEDICAL 

   Medication and Procedural Solutions

$

1,367

$

117

$

1,483

$

1,292

$

240

$

1,532

$

(154)

6.9

   Medication Management Solutions

201

208

409

-

416

416

(55)

11.6

   Diabetes Care

521

-

521

557

-

557

(69)

6.0

   Pharmaceutical Systems

863

-

863

926

-

926

(124)

6.7

   Respiratory Solutions

122

138

260

-

267

267

(22)

5.8

TOTAL

$

3,074

$

463

$

3,536

$

2,774

$

923

$

3,697

$

(426)

7.2

BD LIFE SCIENCES

   Preanalytical Systems

$

701

$

-

$

701

$

734

$

-

$

734

$

(90)

7.8

   Diagnostic Systems

708

-

708

728

-

728

(84)

8.7

   Biosciences

730

-

730

793

-

793

(69)

0.8

TOTAL

$

2,139

$

-

$

2,139

$

2,255

$

-

$

2,255

$

(244)

5.7

TOTAL INTERNATIONAL

$

5,213

$

463

$

5,675

$

5,029

$

923

$

5,952

$

(669)

6.6

* For the quarters ended December 31, 2014 and March 31, 2015

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED REVENUE CHANGE TO COMPARABLE ADJUSTED FXN REVENUE CHANGE - TOTAL

Twelve Months Ended September 30, (continued)

(Unaudited; Amounts in millions)

A

B

C=A+B

D

E=C+D

F

G

H=F+G

I

J=(E-H-I)/H

Comparable

Comparable

Deferred 

CFN

Historical

BD

CFN

Comparable

Comparable

Adjusted

Reported

Revenue

Adjusted

Reported

Adjusted

Reported

Reported

Historical

FX

FXN

2015

Adjustment

2015

1st Half 2015 **

2015

2014

2014

2014

Impact

% Change

BD MEDICAL 

   Medication and Procedural Solutions

$

2,850

$

-

$

2,850

$

544

$

3,394

$

2,307

$

1,040

$

3,347

$

(154)

6.0

   Medication Management Solutions

1,033

-

1,033

1,051

2,084

-

2,023

2,023

(55)

5.7

   Diabetes Care

1,012

-

1,012

-

1,012

1,037

-

1,037

(69)

4.3

   Pharmaceutical Systems

1,167

-

1,167

-

1,167

1,229

-

1,229

(124)

5.1

   Respiratory Solutions

419

-

419

471

890

-

871

871

(22)

4.7

   Deferred Revenue Adjustment *

(20)

20

-

-

-

-

-

-

-

-

TOTAL

$

6,460

$

20

$

6,480

$

2,066

$

8,547

$

4,573

$

3,934

$

8,507

$

(426)

5.5

BD LIFE SCIENCES

   Preanalytical Systems

$

1,391

$

-

$

1,391

$

-

$

1,391

$

1,412

$

-

$

1,412

$

(90)

4.9

   Diagnostic Systems

1,299

-

1,299

-

1,299

1,301

-

1,301

(84)

6.3

   Biosciences

1,132

-

1,132

-

1,132

1,159

-

1,159

(69)

3.6

TOTAL

$

3,822

$

-

$

3,822

$

-

$

3,822

$

3,872

$

-

$

3,872

$

(244)

5.0

TOTAL REVENUES

$

10,282

$

20

$

10,302

$

2,066

$

12,368

$

8,446

$

3,934

$

12,380

$

(669)

5.3

* In accordance with U.S. GAAP business combination accounting rules, CareFusion's deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date.  The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

** For the quarters ended December 31, 2014 and March 31, 2015

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

SAFETY REVENUES

(Unaudited; Amounts in millions)

Three Months Ended September 30,

A

B

C

D=(A-B)/B

E=(A-B-C)/B

As Reported

FX

 % Change 

2015

2014

Impact

 Reported 

 FXN 

TOTAL SAFETY REVENUES

   United States

$

441

$

301

$

-

46.6

46.6

   International

303

265

(49)

14.1

32.7

TOTAL

$

744

$

566

$

(49)

31.3

40.0

BY SEGMENT

   BD Medical

$

468

$

287

$

(26)

63.3

72.4

   BD Life Sciences

276

279

(23)

(1.4)

6.8

TOTAL

$

744

$

566

$

(49)

31.3

40.0

Twelve Months Ended September 30,

A

B

C

D=(A-B)/B

E=(A-B-C)/B

As Reported

FX

 % Change 

2015

2014

Impact

 Reported 

 FXN 

TOTAL SAFETY REVENUES

   United States

$

1,471

$

1,207

$

-

21.8

21.8

   International

1,128

1,016

(142)

10.9

24.9

TOTAL

$

2,598

$

2,223

$

(142)

16.9

23.3

BY SEGMENT

   BD Medical

$

1,501

$

1,119

$

(74)

34.1

40.7

   BD Life Sciences

1,097

1,104

(69)

(0.7)

5.6

TOTAL

$

2,598

$

2,223

$

(142)

16.9

23.3

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF SAFETY REVENUE CHANGE TO COMPARABLE FXN REVENUE CHANGE

(Unaudited; Amounts in millions)

Three Months Ended September 30,

A

B

C

D=B+C

E

F=(A-D-E)/D

BD

BD

CFN

Comparable

Comparable

Comparable

Reported

Reported

Reported

Historical

FX

FXN

2015

2014

2014

2014

Impact

% Change

TOTAL SAFETY REVENUES

   United States

$

441

$

301

$

122

$

422

$

-

4.4

   International

303

265

45

311

(49)

13.4

TOTAL

$

744

$

566

$

167

$

733

$

(49)

8.2

BY SEGMENT

   BD Medical

$

468

$

287

$

167

$

453

$

(26)

9.0

   BD Life Sciences

276

279

-

279

(23)

6.8

TOTAL

$

744

$

566

$

167

$

733

$

(49)

8.2

Twelve Months Ended September 30,

A

B

C=A+B

D

E

F=D+E

G

H=(C-F-G)/F

CFN

Comparable

BD

CFN

Comparable

Comparable

Comparable

Reported

Reported

Historical

Reported

Reported

Historical

FX

FXN

2015

1st Half 2015 *

2015

2014

2014

2014

Impact

% Change

TOTAL SAFETY REVENUES

   United States

$

1,471

$

252

$

1,722

$

1,207

$

470

$

1,677

$

-

2.7

   International

1,128

83

1,210

1,016

172

1,188

(149)

14.4

TOTAL

$

2,598

$

334

$

2,932

$

2,223

$

641

$

2,865

$

(149)

7.6

BY SEGMENT

   BD Medical

$

1,501

$

334

$

1,835

$

1,119

$

641

$

1,760

$

(80)

8.8

   BD Life Sciences

1,097

-

1,097

1,104

-

1,104

(69)

5.6

TOTAL

$

2,598

$

334

$

2,932

$

2,223

$

641

$

2,865

$

(149)

7.6

* For the quarters ended December 31, 2014 and March 31, 2015

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS

(Unaudited)

Three Months Ended September 30,

Foreign

Foreign

Foreign

 Currency

 Currency

Currency

Neutral

Neutral

2015

2014

Growth

Translation

Growth

Growth %

Growth %

Reported Diluted Earnings per Share

$

0.84

$

1.53

$

(0.69)

$

(0.17)

$

(0.52)

(45.1%)

(34.0%)

Transaction Costs ($7 million or $4 million after-tax and $6 million or $4 million after-tax, respectively) (1)

0.02

0.02

Integration Costs ($40 million or $25 million after-tax) (1)

0.12

-

Restructuring Costs ($135 million or $84 million after-tax) (1)

0.39

-

Purchase Accounting Adjustments ($179 million or $125 million after-tax and $18 million or $13 million after-tax, respectively)

0.58

(2)

0.06

(3)

(0.01)

Employee Termination Cost-related Amounts ($36 million or $23 million after-tax) (4)

-

0.12

Research and Development Adjustment ($(4) million or $(2) million after-tax) (5)

-

(0.01)

Pension Settlement Charges ($3 million or $2 million after-tax) (6)

-

0.01

Other Specified Items, Net ($5 million or $3 million after-tax) (7)

-

0.02

Adjusted Diluted Earnings per Share

$

1.94

$

1.74

$

0.20

$

(0.18)

$

0.38

11.5%

21.8%

(1) Represents transaction, integration and restructuring costs associated with the CareFusion acquisition.

(2) Represents non-cash amortization expense of $152 million pre-tax associated with acquisition related identifiable intangible assets, including CareFusion, as well as the net amortization of purchase accounting adjustments of $27 million pre-tax to reflect CareFusion's inventory, fixed assets, debt and deferred revenue balances at fair value as of the acquisition date.

(3) Represents non-cash amortization expense associated with acquisition related identifiable intangible assets.

(4) Represents amounts recorded to a liability for employee termination costs associated with workforce reduction actions taken in the fourth quarter of fiscal year 2014.

(5) Represents a revision to the estimated probable loss previously recorded as a result of the decision to terminate a research and development program in the Medical segment.

(6) Represents non-cash pension settlement charges associated with lump sum benefit payments made primarily from the Company's U.S. supplemental pension plan, as such payments exceeded the service and interest components of the plan's pension cost in each year. The charges also included settlement losses associated with certain foreign pension plans.

(7) Represents a charge resulting from the adjustment to the carrying amount of an asset that is being held for sale.

 

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS

(Unaudited)

Twelve Months Ended September 30,

Foreign

Foreign

Foreign

 Currency

 Currency

Currency

Neutral

Neutral

2015

2014

Growth

Translation

Growth

Growth %

Growth %

Reported Diluted Earnings per Share

$

3.35

$

5.99

$

(2.64)

$

(0.69)

$

(1.95)

(44.1%)

(32.6%)

Financing Costs ($107 million or $65 million after-tax) (1)

0.31

-

Transaction Costs ($59 million or $39 million after-tax and $6 million or $4 million after-tax, respectively) (1)

0.19

0.02

Integration Costs ($95 million or $59 million after-tax) (1)

0.29

-

Restructuring Costs ($271 million or $167 million after-tax) (1)

0.80

-

Purchase Accounting Adjustments ($645 million or $451 million after-tax and $74 million or $51 million after-tax, respectively)

2.17

(2)

0.26

(3)

(0.02)

Employee Termination Cost-related Amounts ($(5) million or $(3) million after-tax and $36 million or $23 million after-tax, respectively) (4)

(0.01)

0.12

Litigation-related Charge ($12 million or $7 million after-tax) (5)

0.04

-

Dilutive Share Impact (6)

0.02

-

Research and Development Charges ($26 million or $16 million after-tax) (7)

-

0.08

Pension Settlement Charges ($3 million or $2 million after-tax) (8)

-

0.01

Other Specified Items, Net ($8 million or $6 million after-tax) (9)

-

0.03

Adjusted Diluted Earnings per Share

$

7.16

$

6.50

$

0.66

$

(0.72)

$

1.38

10.2%

21.2%

(1) Represents financing, transaction, integration and restructuring costs associated with the CareFusion acquisition.

(2) Represents non-cash amortization expense of $336 million pre-tax associated with acquisition related identifiable intangible assets, including CareFusion, as well as the net amortization of purchase accounting adjustments of $318 million pre-tax to reflect CareFusion's inventory, fixed assets, debt and deferred revenue balances at fair value as of the acquisition date.  Also includes an acquisition-date accounting gain on a previously held investment in CRISI Medical Systems, Inc. of $9 million pre-tax.

(3) Represents non-cash amortization expense associated with acquisition related identifiable intangible assets.

(4) Represents amounts recorded to a liability for employee termination costs associated with workforce reduction actions taken in the fourth quarter of fiscal year 2014.

(5) Represents a charge for plaintiff's attorneys' fees associated with the unfavorable verdict in the antitrust and false advertising lawsuit filed against BD by RTI. 

(6) Represents the dilutive impact of BD shares issued as part of purchase consideration for CareFusion acquisition prior to the consolidation of its operating results beginning on April 1, 2015. The year-to-date adjusted diluted average shares outstanding (in thousands) is 206,833.

(7) Includes a $6 million charge associated with the decision to terminate a research and development program in the Medical segment; the charge relates to program asset write-offs and obligations. Also includes a $20 million charge associated with the write-off of capitalized product software and, to a lesser extent, fixed assets primarily resulting from the discontinuance of an instrument product development program in the Life Sciences segment.

(8) Primarily represents non-cash pension settlement charges associated with lump sum benefit payments made primarily from the Company's U.S. supplemental pension plan, as such payments exceeded the service and interest components of the plan's pension cost in each year. The charges also included settlement losses associated with certain foreign pension plans.

(9) Represents the cost associated with the decision to early terminate a European distributor arrangement in the Life Sciences segment of $11 million pre-tax and a charge resulting from the adjustment to the carrying amount of an asset that is being held for sale of $5 million pre-tax, which were largely offset by a gain from a cash distribution received from the sale of a company, of which BD had a small equity ownership, of $8 million pre-tax. 

 

 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL INFORMATION

FY2016 OUTLOOK RECONCILIATION

FY2016 Outlook

Revenues

FX Impact

FXN Basis

Full Year FY2016 Estimated Growth on a Reported Basis

23.0% - 23.5%

~(1.5%)

24.5% - 25.0%

Deferred Revenue Adjustment

 NM 

 NM 

 NM 

Adjusted Full Year FY2016 Estimated Growth

23.0% - 23.5%

~(1.5%)

24.5% - 25.0%

Full Year

Full Year

FY2016

FY2015

% Increase

(estimated)

Reported Fully Diluted Earnings per Share 

$

6.57 - 6.64

$

3.35

NM

Financing Costs

-

0.31

Transaction Costs

-

0.19

Integration Costs 

-

0.29

Restructuring Costs

-

0.80

Purchase Accounting Adjustments

1.80

2.17

Employee Termination Cost-related Amounts

-

(0.01)

Litigation-related Charge

-

0.04

Dilutive Share Impact

-

0.02

Adjusted Fully Diluted Earnings per Share 

$

8.37 - 8.44

$

7.16

17.0% - 18.0%

FX Impact

$

(0.36)

(5.0%)

Adjusted FXN Growth

$

8.73 - 8.80

22.0% - 23.0%

Organic Revenues Growth

Full Year

Full Year

Q1

Q2

Q3

Q4

FY2015

FY2016

(estimated)

CareFusion Revenues, Reported

16.1%

3.0%

(5.2%)

1.2%

3.3%

~2.0%

FX Impact

(1.4%)

(2.4%)

(3.2%)

(2.8%)

(2.5%)

~(0.5%)

CareFusion Revenues, FXN

17.5%

5.4%

(2.0%)

4.0%

5.8%

~2.5%

CareFusion Inorganic Revenues, FXN

(7.6%)

-

(0.2%)

(0.6%)

(2.0%)

~1.5%

CareFusion Organic Revenues, FXN (1)

9.9%

5.4%

(2.2%)

3.4%

3.8%

~4.0%

BD Standalone Revenues, Reported

1.8%

(1.0%)

(4.1%)

(3.1%)

(1.7%)

~3.0%

FX Impact

(3.5%)

(5.9%)

(8.7%)

(8.6%)

(6.8%)

~(2.0%)

BD Standalone Revenues, FXN

5.3%

4.9%

4.7%

5.5%

5.1%

~5.0%

BD Standalone Inorganic Revenues, FXN

 NM 

 NM 

(0.1%)

 NM 

 NM 

 NM 

BD Standalone Organic Revenues, FXN

5.3%

4.9%

4.6%

5.5%

5.1%

~5.0%

CareFusion Organic Revenues, FXN(1)

3.8%

~4.0%

BD Standalone Organic Revenues, FXN

5.1%

~5.0%

BD Including CareFusion Organic Revenues, FXN

4.7%

4.5%-5.0%

NM - Not Meaningful

FXN = Foreign Currency Neutral

(1) Excludes the impact from a distribution agreement change in the Respiratory Solutions business.

 

Contact: Monique N. Dolecki, Investor Relations – 201-847-5453 Kristen Cardillo, Corporate Communications – 858-617-2317

SOURCE BD (Becton, Dickinson and Company)



RELATED LINKS

http://www.bd.com