e5758ff728d25a55d750a49fae67989ed8179060db1438c3840e373238973a5b

549eff44f08f0263eb2a706b1c32a50880f1e3fb5ab79b4ccc618bc445dbeaa5

United States

Europe

Rest of World

Americas

- EMEA

- Asia Pacific

Total Revenue

555ab4abca377067a578f3d7dfc33b6dce350fe0b34d13b9573cb0efe9e5619f

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from Debt (USD, millions)

Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

75f5ba3960acbc1c5ce93f0c43c4491206ea72e164db4901b41667a813e4740a

The significant drop in short-term debt in Q4 2024 was primarily due to the repayment of borrowings under the company’s revolving credit facilities. Specifically, on May 1, 2024, COO used **$1.2 billion** from its new 2024 Revolving Credit Facility to fully repay all borrowings under its older 2020 Term Loan Facility and the 2020 Revolving Credit Facility, effectively restructuring its debt and resulting in a decrease from **$45.4 million** in Q4 2023 to **$33.3 million** in Q4 2024.  **[0000711404-24-000069_cooperq42024pressrelease.htm:10]** **[0000711404-24-000074_coo-20241031.htm:86]** **[0000711404-24-000074_coo-20241031.htm:101]** 

Why did Short-term debt drop significantly in Q4 2024?

The increase in long-term debt in Q1 2024 was primarily driven by a **$200 million draw on the revolving credit facility** to finance the **Cook Medical acquisition**, which was completed in November 2023.  **[0000711404-24-000016_cooperq12024pressrelease.htm:9]** **[0000711404-24-000020_coo-20240131.htm:17]** 

What led to the increase in Long-term debt in Q1 2024?

The decline in **Cash and cash equivalents** for FY 2024 was primarily due to significantly higher cash outflows in investing activities. The company used **$764.6 million** in investing outflows—mainly driven by **$343.4 million** spent on acquisitions and **$421.2 million** on property, plant, and equipment—which more than offset the **$709.3 million** generated from operating activities and the positive effect from financing activities. This led to the decrease from **$120.8 million in FY 2023** to **$107.6 million in FY 2024**.  **[0000711404-24-000074_coo-20241031.htm:88]** **[0000711404-24-000074_coo-20241031.htm:76]** **[0000711404-24-000074_coo-20241031.htm:99]** 

Why did Cash and cash equivalents decline in FY 2024?

The **increase in Total assets in Q4 2024** was primarily driven by several factors. **Goodwill** rose from **$3,624.5 million** to **$3,838.4 million** due to net additions and a favorable foreign currency translation adjustment, while **Property, Plant, and Equipment (PP&E)** increased as a result of investments in expanding manufacturing capacity. In addition, there were increases in **Other Intangibles, Net**, **Trade Receivables, Net**, and **Inventories** reflecting higher sales volumes and preparation for future demand, which more than offset the decline in **Deferred Tax Assets** during the period.  **[0000711404-24-000074_coo-20241031.htm:86]** **[0000711404-24-000074_coo-20241031.htm:100]** **[0000711404-24-000069_cooperq42024pressrelease.htm:10]** 

What contributed to the increase in Total assets in Q4 2024?

988a0040d1f4b50fadbaaf99b69a84bbe43988ae9f397b6b823b47ae79ccae3d

**Operating Income** in **Q2 2024** was notably high at **$161.7 million** primarily for three reasons. First, the **CooperVision segment** achieved stronger performance with higher net sales, resulting in operating income increasing to **$160.2 million** from **$137.9 million** in Q2 2023.  **[0000711404-24-000043_coo-20240430.htm:19]**  Second, the **CooperSurgical segment** turned around from an operating loss to generating **$21.6 million** in operating income by avoiding a one-time **$45.0 million termination fee** expense that had negatively impacted Q2 2023.  **[0000711404-24-000043_coo-20240430.htm:19]**  Finally, despite a modest uptick in share-based compensation in the corporate segment, the overall improvements across segments drove the significant increase in Operating Income.  **[0000711404-24-000043_coo-20240430.htm:19]** 

Why was Operating Income so high in Q2 2024?

The surge in **Net Income** in Q2 2024 was primarily driven by a combination of **revenue growth**—with consolidated revenues increasing by **7% to $942.6 million**, fueled by strong performance in both CooperVision and CooperSurgical—and a significant improvement in the **operating margin** from **11% to 17%** due to enhanced efficiencies from prior investments in manufacturing, distribution, and IT infrastructure. Additionally, the company benefited from a modest **gross margin** expansion (from **66% to 67%**) and favorable impacts from tax and stock option adjustments, which helped offset some of the rising interest expenses and negative FX effects.  **[0000711404-24-000038_cooperq22024pressrelease.htm:0]** **[COO_3391183_19]** **[COO_3391183_14]** **[COO_3391183_4]** **[COO_3391183_15]** 

What drove the surge in Net Income in Q2 2024?

The operating income jump in Q3 2024 was driven by multiple factors. **Revenue growth** played a key role, with consolidated revenue increasing by **8% year-over-year** to **$1,002.8 million**, largely due to strong performance in both key segments—**CooperVision** and **CooperSurgical** ( **[0000711404-24-000058_cooperq32024pressrelease.htm:0]** **[COO_3400054_1]** ). In addition, **gross margin improvements** were significant, as the non-GAAP gross margin increased to **67%** from **66%** in Q3 2023, which was supported by efficiency gains, an improved product mix, and pricing enhancements ( **[COO_3400054_4]** **[0000711404-24-000058_cooperq32024pressrelease.htm:0]** ). The company also benefited from **SG&A leverage**, where operating expenses grew slower than sales, reflecting the positive impact of prior investments ( **[COO_3400054_4]** **[0000711404-24-000058_cooperq32024pressrelease.htm:0]** ). Finally, **non-GAAP adjustments**, which excluded certain charges, further enhanced operating income ( **[0000711404-24-000064_filename1.htm:4]** ).

What contributed to the jump in Operating Income in Q3 2024?

The improvement in Q4 2024’s **net income** was driven by a combination of factors. **Revenue grew by 10%** to **$1,018.4 million**, which boosted the company's overall profitability.  **[0000711404-24-000069_cooperq42024pressrelease.htm:0]**  Additionally, there was an improvement in the **gross margin** from **65% to 67%** and an **expansion in operating margin** from **15% to 19%**, both of which directly contributed to higher earnings.  **[0000711404-24-000069_cooperq42024pressrelease.htm:0]**  Moreover, beneficial **non-GAAP adjustments**—including factors such as the amortization of acquired intangibles and other charges—further enhanced the net income, raising the non-GAAP figure from **$173.2 million to $208.5 million**.  **[0000711404-24-000069_cooperq42024pressrelease.htm:3]**  These elements collectively account for the significant increase in net income in Q4 2024.  **[0000711404-24-000069_cooperq42024pressrelease.htm:3]** 

Why did Net Income improve significantly in Q4 2024?

The **net sales** boost in Q3 2024 was driven by multiple factors. **CooperVision (CVI)** delivered a **7% revenue increase** with strong performance from **toric and multifocal lenses** (such as the success of Biofinity and MyDay lenses), supported further by solid geographic growth in the **Americas (13%)** and **EMEA (6%)**, while Asia Pacific remained flat.  **[0000711404-24-000058_cooperq32024pressrelease.htm:0]** **[0000711404-24-000062_coo-20240731.htm:19]**  Additionally, **CooperSurgical (CSI)** achieved a **9% revenue increase**, driven by stronger performance in **fertility products** (with a **6%** rise) and **office and surgical products** (up **11%**), with fertility returning to **double-digit growth**.  **[0000711404-24-000058_cooperq32024pressrelease.htm:0]** **[0000711404-24-000062_coo-20240731.htm:20]** **[COO_3400054_3]**  Strategic investments in **R&D, manufacturing,** and **product innovation** also significantly contributed to the growth, despite some offset from unfavorable foreign currency fluctuations, with both segments achieving **10% constant currency growth**.  **[COO_3400054_1]** **[0000711404-24-000058_cooperq32024pressrelease.htm:0]** 

What factors boosted Net Sales in Q3 2024?

2d6baf4f7b43af017a1fab859938310f4fd6f6868079ce08677a1d058e88722a

Net Sales (USD, millions)

Cost of Sales (USD, millions)

Gross Profit (USD, millions)

Selling, General and Administrative Expense (USD, millions)

Research and Development Expense (USD, millions)

Amortization of Intangibles (USD, millions)

Operating Income (USD, millions)

Interest Expense (USD, millions)

Other Expense (Income) (USD, millions)

Income Before Income Taxes (USD, millions)

Provision for Income Taxes (USD, millions)

Net Income (USD, millions)

3391fbeca9e9666ce5c3b54bdd1f0a563f8c453b169dcfbbaf85bf7a9ce061ef

CooperVision

- Toric and Multifocal

- Sphere, Other

CooperSurgical

- Office and Surgical

- Fertility

5c669936cf9734e9a2833f8831434e468ee40a1ce584309a54227dfb080e155e

Net income (USD, millions)

Depreciation and amortization (USD, millions)

3aeefa3f256b8e72a6c2c0484d2cff9e4d14627c35e4b6ec9c31a9a1aacb5753

Cash and cash equivalents (USD, millions)

Trade accounts receivable, net (USD, millions)

Inventories (USD, millions)

Prepaid expense and other current assets (USD, millions)

Total current assets (USD, millions)

Property, plant and equipment, net (USD, millions)

Goodwill (USD, millions)

Other intangibles, net (USD, millions)

Deferred tax assets (USD, millions)

Other assets (USD, millions)

Total assets (USD, millions)

Short-term debt (USD, millions)

Accounts payable (USD, millions)

Employee compensation and benefits (USD, millions)

Deferred revenue (current) (USD, millions)

Other current liabilities (USD, millions)

Total current liabilities (USD, millions)

Long-term debt (USD, millions)

Deferred tax liabilities (USD, millions)

Long-term tax payable (USD, millions)

Deferred revenue (non-current) (USD, millions)

Other liabilities (USD, millions)

Total liabilities (USD, millions)

Stockholders’ equity (USD, millions)

Total liabilities and stockholders’ equity (USD, millions)

58dcbabc589a90db87d6be21b277cd0355b663e1b3d43808ce9dabb3b02961f0

Cooper Companies Inc (COO)

Financials