FRANKLIN LAKES, N.J.,
Feb. 6, 2020 /PRNewswire/ -- BD
(Becton, Dickinson and Company) (NYSE: BDX), a leading global
medical technology company, today reported quarterly revenues of
$4.225 billion for the first fiscal
quarter ended December 31, 2019. This represents an
increase of 1.6 percent as reported over the prior-year period, or
2.5 percent on a currency-neutral basis.
BD also announced today that it is continuing to work with the
U.S. Federal Drug Administration (FDA) on its software remediation
plan for the Alaris System, which will require additional
regulatory filings beyond what the company previously anticipated.
The company expects to submit its comprehensive regulatory filing
in the fourth quarter of fiscal year 2020. In the interim, the
company will partner with the FDA and existing customers to ensure
continued access to the Alaris System under medical necessity. As a
result, the company is lowering its full fiscal year revenue and
adjusted diluted earnings per share guidance.
"In the first quarter, the BD team delivered solid results, in
line with our expectations," said Tom
Polen, CEO and president. "As we look ahead to the balance
of the fiscal year, we are focused on the resolution of the Alaris
pump matter. We stand behind the safety of the Alaris System, which
is used in the care of 70 percent of patients undergoing infusion
therapy. Now, we need to take the necessary steps to meet the FDA's
expectations with respect to the Alaris System. We are committed to
doing what is right for customers, patients and shareholders. You
can expect that our purpose and values will always be at the core
of who we are and how we work to resolve this situation moving
forward."
First Quarter Fiscal 2020 Operating Results
As
reported, diluted earnings per share for the first quarter were
$0.87, compared with $2.05 in the prior-year period. This
represents a decrease of 57.6 percent, and is primarily due to the
gain on the sale of the Advanced Bioprocessing business in the
prior-year period. Adjusted diluted earnings per share were
$2.65, compared with $2.70 in the prior-year period. This
represents a decrease in adjusted diluted earnings per share of 1.9
percent, or 0.4 percent on a currency-neutral basis.
Segment Results
In the BD Medical segment, as
reported, worldwide revenues for the quarter of $2.090 billion decreased 2.1 percent from the
prior-year period, or 1.1 percent on a currency-neutral
basis. As anticipated, the segment's results reflect growth
in the Pharmaceutical Systems unit that was offset by declines in
the Medication Management Solutions and Diabetes Care units and
revenues in the Medication Delivery Solutions unit that were about
flat when compared to the prior year.
In the BD Life Sciences segment, as reported, worldwide revenues
for the quarter of $1.123 billion
increased 6.4 percent over the prior-year period, or 7.4 percent on
a currency-neutral basis. Revenue growth was driven by
performance in the Biosciences and Diagnostic Systems units.
BD Life Sciences' growth was aided by flu-related revenues in the
Diagnostic Systems unit as a result of a stronger flu season in
comparison to the prior year.
In the BD Interventional segment, as reported, worldwide
revenues for the quarter of $1.012
billion increased 4.4 percent over the prior-year period, or
5.0 percent on a currency-neutral basis. Revenue growth was
driven by performance across the Surgery, Urology and Critical Care
and Peripheral Intervention units.
Geographic Results
As reported, first quarter revenues
in the U.S. of $2.430 billion
increased 1.8 percent over the prior-year period. Growth in
the U.S. was driven by performance in the Life Sciences and
Interventional segments, partially offset by a decline in the
Medical segment, as anticipated.
As reported, revenues outside of the U.S. of $1.795 billion increased 1.2 percent over the
prior-year period, or 3.4 percent on a currency-neutral
basis. International revenue growth was driven by performance
in China and the Asia Pacific region.
Fiscal 2020 Outlook for Full Year
The company is
lowering its full fiscal year 2020 revenue and adjusted diluted
earnings per share guidance to reflect the impact of the
remediation effort and anticipated loss of sales of the Alaris
infusion system.
The company now expects full fiscal year 2020 revenues to
increase 1.5 to 2.5 percent as reported, or 2.5 to 3.5 percent on a
currency-neutral basis.
The company now expects full fiscal year 2020 adjusted diluted
earnings per share to be between $11.90 and $12.10. This represents growth of
approximately 4.0 to 5.5 percent on a currency-neutral basis over
fiscal 2019 adjusted diluted earnings per share of $11.68, or growth of approximately 2.0 to 3.5
percent including the estimated unfavorable impact of foreign
currency. Adjusted diluted earnings per share guidance
includes an adverse impact of approximately 500 basis points
related to the expiration of the Gore royalty.
Adjusted diluted earnings per share for fiscal 2020 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) Thursday,
February 6, 2020. 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 Thursday,
February 13, 2020, confirmation number 6886458.
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.
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; transactional and product related impacts;
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
health care by developing innovative technology, services and
solutions that help advance both clinical therapy for patients and
clinical process for health care 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 health care. For more information on BD, please visit
bd.com.
This press release, including the section entitled "Fiscal
2020 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. or foreign healthcare systems,
potential cuts in governmental healthcare spending, or governmental
or private measures to contain healthcare costs, including changes
in pricing and reimbursement policies, 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, or our suppliers' ability to
provide products needed for our operations; 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
(including the potential ongoing impact of the FDA letters
regarding the use of drug-coated balloons); our ability to
successfully integrate any businesses we acquire; uncertainties of
litigation (as described in BD's filings with the Securities and
Exchange Commission); 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
December 31,
|
|
|
2019
|
|
2018
|
|
% Change
|
REVENUES
|
|
$
|
4,225
|
|
|
$
|
4,160
|
|
|
1.6
|
|
|
|
|
|
|
|
|
Cost of products
sold
|
|
2,247
|
|
|
2,187
|
|
|
2.7
|
|
Selling and
administrative expense
|
|
1,121
|
|
|
1,073
|
|
|
4.5
|
|
Research and
development expense
|
|
270
|
|
|
258
|
|
|
4.9
|
|
Acquisitions and
other restructurings
|
|
86
|
|
|
91
|
|
|
(5.3)
|
|
Other operating
income, net
|
|
—
|
|
|
(335)
|
|
|
100.0
|
|
TOTAL OPERATING COSTS
AND EXPENSES
|
|
3,724
|
|
|
3,273
|
|
|
13.8
|
|
OPERATING
INCOME
|
|
501
|
|
|
888
|
|
|
(43.5)
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(136)
|
|
|
(171)
|
|
|
(20.6)
|
|
Interest income,
net
|
|
1
|
|
|
(12)
|
|
|
110.4
|
|
Other income,
net
|
|
27
|
|
|
10
|
|
|
167.8
|
|
INCOME BEFORE INCOME
TAXES
|
|
394
|
|
|
714
|
|
|
(44.8)
|
|
Income tax
provision
|
|
117
|
|
|
115
|
|
|
1.4
|
|
NET INCOME
|
|
278
|
|
|
599
|
|
|
(53.7)
|
|
Preferred stock
dividends
|
|
(38)
|
|
|
(38)
|
|
|
—
|
|
NET INCOME APPLICABLE
TO COMMON SHAREHOLDERS
|
|
$
|
240
|
|
|
$
|
562
|
|
|
(57.3)
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE
|
|
|
|
|
|
|
Basic Earnings per
Share
|
|
$
|
0.88
|
|
|
$
|
2.09
|
|
|
(57.9)
|
|
Diluted Earnings per
Share
|
|
$
|
0.87
|
|
|
$
|
2.05
|
|
|
(57.6)
|
|
|
|
|
|
|
|
|
AVERAGE SHARES
OUTSTANDING (in thousands)
|
|
|
|
|
|
|
Basic
|
|
271,102
|
|
|
269,035
|
|
|
|
Diluted
|
|
274,952
|
|
|
274,256
|
|
|
|
BECTON DICKINSON AND
COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in millions)
|
|
|
|
December 31,
2019
|
|
September 30,
2019
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
Cash and
equivalents
|
|
$
|
560
|
|
|
$
|
536
|
|
Restricted
cash
|
|
49
|
|
|
54
|
|
Short-term
investments
|
|
8
|
|
|
30
|
|
Trade receivables,
net
|
|
2,074
|
|
|
2,345
|
|
Inventories
|
|
2,760
|
|
|
2,579
|
|
Prepaid expenses and
other
|
|
987
|
|
|
1,119
|
|
TOTAL CURRENT
ASSETS
|
|
6,438
|
|
|
6,664
|
|
Property, plant and
equipment, net
|
|
5,782
|
|
|
5,659
|
|
Goodwill and other
intangibles, net
|
|
38,160
|
|
|
38,354
|
|
Other
Assets
|
|
1,573
|
|
|
1,088
|
|
TOTAL
ASSETS
|
|
$
|
51,952
|
|
|
$
|
51,765
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Short-term
debt
|
|
$
|
2,456
|
|
|
$
|
1,309
|
|
Other current
liabilities
|
|
4,269
|
|
|
4,345
|
|
Long-term
debt
|
|
16,949
|
|
|
18,081
|
|
Long-term employee
benefit obligations
|
|
1,290
|
|
|
1,272
|
|
Deferred income taxes
and other liabilities
|
|
5,785
|
|
|
5,676
|
|
Shareholders'
equity
|
|
21,202
|
|
|
21,081
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
$
|
51,952
|
|
|
$
|
51,765
|
|
BECTON DICKINSON AND
COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; Amounts in millions)
|
|
|
|
Three Months Ended
December 31,
|
|
|
2019
|
|
2018
|
OPERATING
ACTIVITIES
|
|
|
|
|
Net income
|
|
$
|
278
|
|
|
$
|
599
|
|
Depreciation and
amortization
|
|
530
|
|
|
563
|
|
Change in operating
assets and liabilities and other, net
|
|
(94)
|
|
|
(918)
|
|
NET CASH PROVIDED BY
OPERATING ACTIVITIES
|
|
713
|
|
|
245
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
Capital
expenditures
|
|
(173)
|
|
|
(167)
|
|
Proceeds from
divestitures, net
|
|
—
|
|
|
476
|
|
Other, net
|
|
(114)
|
|
|
(9)
|
|
NET CASH (USED FOR)
PROVIDED BY INVESTING ACTIVITIES
|
|
(287)
|
|
|
299
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
Change in credit
facility borrowings
|
|
210
|
|
|
50
|
|
Payments of debt and
term loans
|
|
(303)
|
|
|
(453)
|
|
Dividends
paid
|
|
(252)
|
|
|
(245)
|
|
Other, net
|
|
(68)
|
|
|
(86)
|
|
NET CASH USED FOR
FINANCING ACTIVITIES
|
|
(413)
|
|
|
(734)
|
|
Effect of exchange
rate changes on cash and equivalents and restricted cash
|
|
6
|
|
|
(5)
|
|
NET INCREASE
(DECREASE) IN CASH AND EQUIVALENTS AND RESTRICTED CASH
|
|
18
|
|
|
(195)
|
|
OPENING CASH AND
EQUIVALENTS AND RESTRICTED CASH
|
|
590
|
|
|
1,236
|
|
CLOSING CASH AND
EQUIVALENTS AND RESTRICTED CASH
|
|
$
|
609
|
|
|
$
|
1,042
|
|
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
|
|
|
2019
|
|
2018
|
|
% Change
|
BD MEDICAL
|
|
|
|
|
|
|
Medication Delivery
Solutions (a)
|
|
$
|
520
|
|
|
$
|
519
|
|
|
0.2
|
|
Medication Management
Solutions (a)
|
|
462
|
|
|
508
|
|
|
(9.0)
|
|
Diabetes
Care
|
|
139
|
|
|
145
|
|
|
(4.1)
|
|
Pharmaceutical
Systems
|
|
84
|
|
|
68
|
|
|
23.2
|
|
TOTAL
|
|
$
|
1,204
|
|
|
$
|
1,239
|
|
|
(2.8)
|
|
|
|
|
|
|
|
|
BD LIFE
SCIENCES
|
|
|
|
|
|
|
Integrated Diagnostic
Solutions (b)
|
|
|
|
|
|
|
Preanalytical
Systems
|
|
$
|
202
|
|
|
$
|
201
|
|
|
0.7
|
|
Diagnostic
Systems
|
|
184
|
|
|
175
|
|
|
5.1
|
|
Total Integrated
Diagnostic Solutions
|
|
386
|
|
|
376
|
|
|
2.7
|
|
Biosciences
|
|
152
|
|
|
108
|
|
|
40.4
|
|
TOTAL
|
|
$
|
538
|
|
|
$
|
484
|
|
|
11.2
|
|
|
|
|
|
|
|
|
BD
INTERVENTIONAL
|
|
|
|
|
|
|
Surgery
(c)
|
|
$
|
256
|
|
|
$
|
246
|
|
|
4.1
|
|
Peripheral
Intervention (c)
|
|
225
|
|
|
223
|
|
|
1.2
|
|
Urology and Critical
Care (c)
|
|
206
|
|
|
195
|
|
|
5.8
|
|
TOTAL
|
|
$
|
688
|
|
|
$
|
664
|
|
|
3.6
|
|
|
|
|
|
|
|
|
TOTAL UNITED
STATES
|
|
$
|
2,430
|
|
|
$
|
2,387
|
|
|
1.8
|
|
|
|
(a)
|
The presentation of
prior-period amounts reflects the reclassification of $2 million
associated with the movement, effective on October 1, 2019, of
certain products from the Medication Delivery Solutions unit to the
Medication Management Solutions unit.
|
(b)
|
Effective October 1,
2019, the Preanalytical Systems and Diagnostic Systems units were
joined to create the new Integrated Diagnostic Solutions
unit.
|
(c)
|
The presentation of
prior-period amounts reflects the total reclassifications of $31
million associated with the movement, effective on October 1, 2019,
of certain products from the Surgery unit and the Urology and
Critical Care unit to the Peripheral Intervention unit.
|
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
|
|
|
2019
|
|
2018
|
|
FX Impact
|
|
Reported
|
|
FXN
|
BD MEDICAL
|
|
|
|
|
|
|
|
|
|
|
Medication Delivery
Solutions
|
|
$
|
428
|
|
|
$
|
438
|
|
|
$
|
(10)
|
|
|
(2.2)
|
|
|
0.2
|
|
Medication Management
Solutions
|
|
113
|
|
|
118
|
|
|
(3)
|
|
|
(4.0)
|
|
|
(1.2)
|
|
Diabetes
Care
|
|
129
|
|
|
129
|
|
|
(3)
|
|
|
0.6
|
|
|
2.5
|
|
Pharmaceutical
Systems
|
|
215
|
|
|
212
|
|
|
(7)
|
|
|
1.5
|
|
|
4.7
|
|
TOTAL
|
|
$
|
886
|
|
|
$
|
896
|
|
|
$
|
(23)
|
|
|
(1.1)
|
|
|
1.4
|
|
|
|
|
|
|
|
|
|
|
|
|
BD LIFE
SCIENCES
|
|
|
|
|
|
|
|
|
|
|
Integrated Diagnostic
Solutions (a)
|
|
|
|
|
|
|
|
|
|
|
Preanalytical
Systems
|
|
$
|
196
|
|
|
$
|
192
|
|
|
$
|
(4)
|
|
|
2.2
|
|
|
4.4
|
|
Diagnostic
Systems
|
|
218
|
|
|
207
|
|
|
(4)
|
|
|
5.4
|
|
|
7.2
|
|
Total Integrated
Diagnostic Solutions
|
|
414
|
|
|
399
|
|
|
(8)
|
|
|
3.8
|
|
|
5.9
|
|
Biosciences
|
|
171
|
|
|
173
|
|
|
(3)
|
|
|
(1.3)
|
|
|
0.7
|
|
TOTAL
|
|
$
|
585
|
|
|
$
|
572
|
|
|
$
|
(11)
|
|
|
2.3
|
|
|
4.3
|
|
|
|
|
|
|
|
|
|
|
|
|
BD
INTERVENTIONAL
|
|
|
|
|
|
|
|
|
|
|
Surgery
(b)
|
|
$
|
70
|
|
|
$
|
64
|
|
|
$
|
(1)
|
|
|
9.5
|
|
|
11.5
|
|
Peripheral
Intervention (b)
|
|
170
|
|
|
160
|
|
|
(4)
|
|
|
6.5
|
|
|
8.9
|
|
Urology and Critical
Care (b)
|
|
85
|
|
|
83
|
|
|
—
|
|
|
2.8
|
|
|
3.0
|
|
TOTAL
|
|
$
|
325
|
|
|
$
|
306
|
|
|
$
|
(5)
|
|
|
6.1
|
|
|
7.8
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
INTERNATIONAL
|
|
$
|
1,795
|
|
|
$
|
1,773
|
|
|
$
|
(39)
|
|
|
1.2
|
|
|
3.4
|
|
|
|
(a)
|
Effective October 1,
2019, the Preanalytical Systems and Diagnostic Systems units were
joined to create the new Integrated Diagnostic Solutions
unit.
|
(b)
|
The presentation of
prior-period amounts reflects the total reclassifications of $14
million associated with the movement, effective on October 1, 2019,
of certain products from the Surgery unit and the Urology and
Critical Care unit to the Peripheral Intervention unit.
|
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
|
|
|
2019
|
|
2018
|
|
FX Impact
|
|
Reported
|
|
FXN
|
BD MEDICAL
|
|
|
|
|
|
|
|
|
|
|
Medication Delivery
Solutions (a)
|
|
$
|
948
|
|
|
$
|
956
|
|
|
$
|
(10)
|
|
|
(0.9)
|
|
|
0.2
|
|
Medication Management
Solutions (a)
|
|
575
|
|
|
625
|
|
|
(3)
|
|
|
(8.0)
|
|
|
(7.5)
|
|
Diabetes
Care
|
|
268
|
|
|
274
|
|
|
(3)
|
|
|
(1.9)
|
|
|
(1.0)
|
|
Pharmaceutical
Systems
|
|
299
|
|
|
280
|
|
|
(7)
|
|
|
6.8
|
|
|
9.2
|
|
TOTAL
|
|
$
|
2,090
|
|
|
$
|
2,135
|
|
|
$
|
(23)
|
|
|
(2.1)
|
|
|
(1.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
BD LIFE
SCIENCES
|
|
|
|
|
|
|
|
|
|
|
Integrated Diagnostic
Solutions (b)
|
|
|
|
|
|
|
|
|
|
|
Preanalytical
Systems
|
|
$
|
398
|
|
|
$
|
393
|
|
|
$
|
(4)
|
|
|
1.4
|
|
|
2.5
|
|
Diagnostic
Systems
|
|
402
|
|
|
382
|
|
|
(4)
|
|
|
5.3
|
|
|
6.2
|
|
Total Integrated
Diagnostic Solutions
|
|
800
|
|
|
774
|
|
|
(8)
|
|
|
3.3
|
|
|
4.3
|
|
Biosciences
|
|
323
|
|
|
281
|
|
|
(3)
|
|
|
14.8
|
|
|
16.0
|
|
TOTAL
|
|
$
|
1,123
|
|
|
$
|
1,056
|
|
|
$
|
(11)
|
|
|
6.4
|
|
|
7.4
|
|
|
|
|
|
|
|
|
|
|
|
|
BD
INTERVENTIONAL
|
|
|
|
|
|
|
|
|
|
|
Surgery
(c)
|
|
$
|
326
|
|
|
$
|
310
|
|
|
$
|
(1)
|
|
|
5.2
|
|
|
5.6
|
|
Peripheral
Intervention (c)
|
|
395
|
|
|
382
|
|
|
(4)
|
|
|
3.4
|
|
|
4.4
|
|
Urology and Critical
Care (c)
|
|
291
|
|
|
277
|
|
|
—
|
|
|
4.9
|
|
|
5.0
|
|
TOTAL
|
|
$
|
1,012
|
|
|
$
|
970
|
|
|
$
|
(5)
|
|
|
4.4
|
|
|
5.0
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
REVENUES
|
|
$
|
4,225
|
|
|
$
|
4,160
|
|
|
$
|
(39)
|
|
|
1.6
|
|
|
2.5
|
|
|
|
(a)
|
The presentation of
prior-period amounts reflects the reclassification of $2 million
associated with the movement, effective on October 1, 2019, of
certain products from the Medication Delivery Solutions unit to the
Medication Management Solutions unit.
|
(b)
|
Effective October 1,
2019, the Preanalytical Systems and Diagnostic Systems units were
joined to create the new Integrated Diagnostic Solutions
unit.
|
(c)
|
The presentation of
prior-period amounts reflects the total reclassifications of $45
million associated with the movement, effective on October 1, 2019,
of certain products from the Surgery unit and the Urology and
Critical Care unit to the Peripheral Intervention unit.
|
BECTON DICKINSON AND
COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS
(Unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
|
2019
|
|
2018
|
|
Growth
|
|
Foreign
Currency
Translation
|
|
Foreign
Currency
Neutral
Growth
|
|
Growth %
|
|
Foreign
Currency
Neutral
Growth %
|
Reported Diluted
Earnings per Share
|
|
$
|
0.87
|
|
|
$
|
2.05
|
|
|
$
|
(1.18)
|
|
|
$
|
(0.03)
|
|
|
$
|
(1.15)
|
|
|
(57.6)
|
%
|
|
(56.1)
|
%
|
Purchase accounting
adjustments ($348 million and $379 million pre-tax, respectively)
(1)
|
|
1.27
|
|
|
1.38
|
|
|
|
|
—
|
|
|
|
|
|
|
|
Integration costs
($62 million and $73 million pre-tax, respectively)
(2)
|
|
0.23
|
|
|
0.27
|
|
|
|
|
—
|
|
|
|
|
|
|
|
Restructuring costs
($23 million and $41 million pre-tax, respectively)
(2)
|
|
0.08
|
|
|
0.15
|
|
|
|
|
—
|
|
|
|
|
|
|
|
Transaction gain/loss
and product-related matters ($59 million and $(335) million
pre-tax, respectively) (3)
|
|
0.22
|
|
|
(1.22)
|
|
|
|
|
—
|
|
|
|
|
|
|
|
European regulatory
initiative-related costs ($17 million and $5 million pre-tax,
respectively) (4)
|
|
0.06
|
|
|
0.02
|
|
|
|
|
—
|
|
|
|
|
|
|
|
Income tax benefit of
special items and impact of tax reform ($(22) million and $17
million, respectively) (5)
|
|
(0.08)
|
|
|
0.06
|
|
|
|
|
—
|
|
|
|
|
|
|
|
Adjusted Diluted
Earnings per Share
|
|
$
|
2.65
|
|
|
$
|
2.70
|
|
|
$
|
(0.05)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.01)
|
|
|
(1.9)
|
%
|
|
(0.4)
|
%
|
|
|
(1)
|
Includes amortization
and other adjustments related to the purchase accounting for
acquisitions impacting identified intangible assets and valuation
of fixed assets and debt.
|
(2)
|
Represents
integration and restructuring costs associated with
acquisitions.
|
(3)
|
The current-period
amount represents the estimated cost of a product recall which was
recorded in Cost of products sold. The prior-period
amount represents the pre-tax gain recognized as a result of BD's
sale of its Advanced Bioprocessing business which was recorded to
Other operating income, net.
|
(4)
|
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").
|
(5)
|
The amount for the
three months ended December 31, 2018 included additional tax
expense, net, of $51 million relating to new U.S. tax
legislation.
|
BECTON DICKINSON AND
COMPANY
SUPPLEMENTAL INFORMATION
FY 2020 OUTLOOK RECONCILIATION
|
|
|
|
FY2019
|
|
FY2020
Outlook
|
|
|
|
Revenues
|
|
% Change
|
|
FX Impact
|
|
% Change
FXN
|
|
BDX
Revenue
|
|
$
|
17,290
|
|
|
1.5% to
2.5%
|
|
~1.0%
|
|
2.5% to
3.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY2020
Outlook
|
|
|
|
|
|
Full Year
FY2019
|
|
Full Year
FY2020 Outlook
|
|
% Increase
|
|
|
|
Reported Diluted
Earnings per Share
|
|
$
|
3.94
|
|
|
|
|
|
|
|
|
Purchase accounting
adjustments ($1.499 billion pre-tax) (1)
|
|
5.46
|
|
|
|
|
|
|
|
|
Restructuring costs
($180 million pre-tax) (2)
|
|
0.66
|
|
|
|
|
|
|
|
|
Integration costs
($323 million pre-tax) (2)
|
|
1.18
|
|
|
|
|
|
|
|
|
Transaction gain/loss
and product-related matters ($646 million pre-tax)
(3)
|
|
2.35
|
|
|
|
|
|
|
|
|
Impacts of debt
extinguishment ($54 million pre-tax) (4)
|
|
0.20
|
|
|
|
|
|
|
|
|
European regulatory
initiative-related costs ($51 million pre-tax)
(5)
|
|
0.19
|
|
|
|
|
|
|
|
|
Investment
gains/losses and asset impairments ($17 million pre-tax)
(6)
|
|
0.06
|
|
|
|
|
|
|
|
|
Hurricane-related
insurance proceeds ($(24) million pre-tax)
|
|
(0.09)
|
|
|
|
|
|
|
|
|
Income tax benefit of
special items and impact of tax reform ($(622) million)
|
|
(2.26)
|
|
|
|
|
|
|
|
|
Adjusted Diluted
Earnings per Share
|
|
$
|
11.68
|
|
|
$11.90 to
12.10
|
|
2.0% to
3.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated FX
Impact
|
|
|
|
|
|
~2.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted FXN
Growth
|
|
|
|
|
|
4.0% to
5.5%
|
|
|
|
|
FXN - Foreign
Currency Neutral
|
|
(1)
|
Includes amortization
and other 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)
|
Includes amounts
recorded to Other operating expense, net to record product
liability reserves, including related legal defense costs, of $914
million and the estimated cumulative costs of a product recall of
$75 million. Also includes the pre-tax gain of $336 million
recognized in Other operating expense, net related to BD's
sale of its Advanced Bioprocessing business.
|
(4)
|
Represents the
impacts recognized upon the extinguishment of certain long-term
senior notes.
|
(5)
|
Represents initial
costs required to develop processes and systems to comply with
emerging regulations such as the EUMDR and GDPR.
|
(6)
|
Includes an
unrealized gain recorded within Other income (expense),
net relating to an investment and a charge recorded
to write down the carrying value of certain intangible assets in
the Surgery unit.
|
Contact:
Monique N. Dolecki, Investor
Relations - 201-847-5378
Kristen Cardillo, Corporate
Communications - 201-847-5657
View original
content:http://www.prnewswire.com/news-releases/bd-announces-results-for-2020-first-fiscal-quarter-lowers-fiscal-2020-guidance-300999958.html
SOURCE BD (Becton, Dickinson and Company)