Exhibit 99.1
For immediate release
Alcon’s Third Quarter Earnings
Rise 52.2 Percent on 11.8 Percent Sales Growth
HUNENBERG, Switzerland – October 19, 2005 –Alcon, Inc. (NYSE:ACL) reported global sales of $1,071.1 million for the third quarter of 2005, an increase of 11.8 percent over global sales in the third quarter of 2004, or 10.5 percent excluding the impact of foreign exchange fluctuations. Net earnings for the third quarter of 2005 increased 52.2 percent to $295.8 million, or $0.95 per share on a diluted basis, compared to net earnings of $194.3 million or $0.62 per share for the third quarter of 2004.
“Our third quarter results showed solid sales growth and continued strong improvement in gross margins as our sales mix shifted to higher profit products,” said Cary Rayment, Alcon’s chairman, president and chief executive officer. “Our global brand teams and regional management continue to execute our key strategies to drive market share and increase sales of our featured brands. We also have been able to manage our costs well and to capitalize on our global infrastructure to grow profits faster than sales.”
Third Quarter Sales Highlights
Highlights of sales for the third quarter of 2005 are provided below. Unless otherwise noted, all comparisons are versus the third quarter of 2004.
• | U.S. sales grew 12.1 percent to $560.5 million, accounting for 52.3 percent of total sales. |
• | International sales grew 11.4 percent to $510.6 million, accounting for 47.7 percent of total sales. Excluding the impact of foreign exchange fluctuations, International sales grew 8.7 percent. |
• | Pharmaceutical sales grew 16.3 percent to $437.8 million and contributed 40.9 percent of total sales. |
• | Sales of glaucoma products increased 13.6 percent, led by a 34.2 percent rise in sales ofTravatan® ophthalmic solution. In the U.S.,Travatan® solution has increased its share of the prostaglandin market 3.0 share points on a year-to-date (YTD) basis through August 2005 and continued to build share on a global basis. |
• | Sales of infection/inflammation products rose 13.5 percent led by sales ofVigamox®ophthalmic solution and the launch ofNevanacTMophthalmic suspension during the third quarter of 2005.Vigamox® solution is the leading ocular anti-infective in the U.S. with a 44.9 percent share of the fluoroquinolone category through August 2005 YTD. |
• | Sales of allergy products, includingPatanol® ophthalmic solution, rose 3.4 percent as the normal, seasonal reduction in wholesaler inventories had a greater impact in the third quarter of 2005.Patanol® solution has maintained its number one share position in the U.S., accounting for 67.0 percent of total ocular allergy prescriptions through August 2005 YTD. |
• | Sales of otic products increased 38.4 percent, led byCiprodex® otic suspension. The otic franchise, includingCiprodex® andCipro®HC otic suspensions, increased 3.7 share points in the U.S. through August 2005 YTD, compared to August YTD 2004, to reach 31.4 percent. |
• | Surgical sales rose 10.4 percent to $484.3 million, accounting for 45.2 percent of total sales. |
• | Sales of intraocular lenses increased 18.2 percent to $165.0 million. Sales growth was attributable to market share gains, the launch of theAcrySof®ReSTOR®intraocular lens, continued conversion to single-piece intraocular lenses in general and theAcrySof®Natural lens specifically. Global sales of theAcrySof®ReSTOR®lens in the third quarter of 2005 and September 2005 YTD were $17.5 million and $27.9 million, respectively. |
• | Sales of cataract and vitrectomy products rose 8.9 percent, with sales of vitreoretinal surgical products, cataract removal systems and cataract procedure paks being key drivers of growth in this sector. |
• | Refractive revenue declined 29.1 percent due to a decrease in global equipment sales and procedures. |
• | Consumer eye care sales increased 4.1 percent to $149.0 million, accounting for 13.9 percent of total sales. |
• | Sales of contact lens disinfectants declined 1.5 percent as growth fromOpti-Free®Express®contact lens disinfectant did not offset declines in older disinfecting solutions. |
• | Sales of artificial tears products increased 15.6 percent asSystane® lubricant eye drops continued to gain global market share. |
Third Quarter Earnings Highlights
Highlights of earnings for the third quarter of 2005 are provided below. Unless otherwise noted, all comparisons are versus the third quarter of 2004.
• | Gross profit margin increased 2.9 percentage points to 77.0 percent of sales, primarily due to manufacturing efficiencies, product mix and reduced royalty expense. |
• | As a percent of sales, SG&A expenses decreased to 30.9 percent from 32.4 percent of sales. The company continued to exercise good cost control by taking advantage of its global operating infrastructure. |
• | As a percent of sales, R&D expenses decreased to 9.7 percent from 10.6 percent of sales due to prior year expenses associated with a license agreement executed in the third quarter of 2004. |
• | Led primarily by increased gross margins, operating income increased 32.8 percent to $367.9 million, or 34.3 percent of sales, from 28.9 percent of sales. |
• | The company’s nine month effective tax rate was 22.7 percent. This represents a decline in the effective tax rate of 5.0 percentage points compared to the 2004 full year adjusted tax rate of 27.7 percent. The reduction in the effective tax rate was primarily due to the resumption of funding a portion of research and development expenses in the U.S. and favorable mix between tax jurisdictions. The 2004 full year adjusted effective tax rate includes non-GAAP adjustments reconciled in the table below. The reported effective tax rate for the full year 2004 was 22.6 percent. |
Third Quarter Research and Development Update
Summarized below are updates on key research and development activities.
• | The company received approval from the U.S. Food and Drug Administration (FDA) forNevanacTM ophthalmic suspension for the treatment of pain and inflammation associated with cataract surgery. |
• | The company received approval from the FDA for theAcrySof®ReSTOR®Natural intraocular lens. The lens contains a blue-light absorbing chromophore and is designed for cataract patients with and without presbyopia. |
• | The company received approval from the FDA for theAcrySof®Toric intraocular lens for use in cataract patients with pre-existing corneal astigmatism. The company is pursuing approval of the lens with a blue-light absorbing chromophore and plans to launch the lens in the spring of 2006. |
• | The company received clearance from the FDA to marketOpti-Free®RepleniSHTM multi-purpose disinfecting solution for soft contact lenses and expects full commercial launch in the first quarter of 2006. |
• | The company received approval for its Travoprost plus Timolol Fixed Combination glaucoma treatment in Australia. |
• | The company launchedICaps®MV dietary supplement, a next generation ocular supplement that provides an advanced ocular nutrition formula and a complete multivitamin in one formula. |
• | The company has enrolled more than 2,100 patients in the two risk reduction clinical trials onRETAANE®suspension. The company expects to enroll the full complement of 2,500 patients for the trials by the end of 2005. Once fully enrolled, these studies are expected to last four years. |
• | During October 2005, the company presented 24 month data onRETAANE® suspension. The results confirmed the safety of the drug after two years of administration, which was the purpose of the 24 month analysis. The company is continuing its discussions with the FDA and other international regulatory bodies regarding approval of the drug. |
Financial Guidance
• | Sales for the full year 2005 are expected to be between $4,350 million and $4,400 million. |
• | Diluted earnings per share for the full year 2005 are expected to be between $3.58 and $3.60. |
• | Guidance for sales of theAcrySof® ReSTOR® lens remains unchanged. |
Company Description
Alcon, Inc. is the world’s leading eye care company, with sales of $3.9 billion in 2004. Alcon, which has been dedicated to the ophthalmic industry for more than 50 years, develops, manufactures and markets pharmaceuticals, surgical equipment and devices, contact lens care solutions and other vision care products that treat diseases, disorders and other conditions of the eye. Alcon’s majority shareholder is Nestlé, S.A., the world’s largest food company. All trademarks noted in this release are the property of Alcon, Inc., with the exception ofCipro® andCiprodex®, which are the property of Bayer AG and licensed to Alcon.Vigamox® solution is licensed to Alcon, Inc. by Bayer AG.
ALCON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings (Unaudited)
(USD in millions, except share and per share data)
| Three Months Ended |
| Nine Months Ended |
|
| ||||||||
| September 30, |
| September 30, |
|
| ||||||||
|
| 2005 |
|
| 2004 |
|
| 2005 |
|
| 2004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales | $ | 1,071.1 |
| $ | 958.1 |
| $ | 3,313.6 |
| $ | 2,960.9 |
|
|
Cost of goods sold |
| 246.4 |
|
| 248.6 |
|
| 822.7 |
|
| 812.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
| 824.7 |
|
| 709.5 |
|
| 2,490.9 |
|
| 2,148.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
| 331.1 |
|
| 310.1 |
|
| 1,009.4 |
|
| 913.2 |
|
|
Research and development |
| 103.6 |
|
| 101.8 |
|
| 302.9 |
|
| 282.0 |
|
|
Amortization of intangibles |
| 22.1 |
|
| 20.6 |
|
| 64.1 |
|
| 51.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
| 367.9 |
|
| 277.0 |
|
| 1,114.5 |
|
| 901.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) from foreign currency, net |
| 0.5 |
|
| 1.4 |
|
| 2.3 |
|
| (1.8 | ) |
|
Interest income |
| 12.8 |
|
| 5.7 |
|
| 33.4 |
|
| 15.9 |
|
|
Interest expense |
| (10.1 | ) |
| (6.5 | ) |
| (28.2 | ) |
| (19.8 | ) |
|
Other, net |
| 3.9 |
|
| (0.1 | ) |
| 3.9 |
|
| (0.1 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes |
| 375.0 |
|
| 277.5 |
|
| 1,125.9 |
|
| 895.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
| 79.2 |
|
| 83.2 |
|
| 255.6 |
|
| 211.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings | $ | 295.8 |
| $ | 194.3 |
| $ | 870.3 |
| $ | 684.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share | $ | 0.96 |
| $ | 0.64 |
| $ | 2.84 |
| $ | 2.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share | $ | 0.95 |
| $ | 0.62 |
| $ | 2.79 |
| $ | 2.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average common shares |
| 306,536,803 |
|
| 305,519,598 |
|
| 306,001,571 |
|
| 305,909,907 |
|
|
Diluted weighted average common shares |
| 312,525,956 |
|
| 311,019,235 |
|
| 311,700,220 |
|
| 310,941,464 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALCON, INC. AND SUBSIDIARIES
Global Sales
(USD in millions)
| Three Months Ended |
|
|
|
|
| %Foreign |
|
| %Change in |
|
| ||||
| September 30, |
|
|
|
|
| Currency |
|
| Constant |
|
| ||||
|
| 2005 |
|
| 2004 |
|
| %Change |
|
| Change |
|
| Currency |
|
|
GEOGRAPHIC SALES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical | $ | 260.9 |
| $ | 226.5 |
|
| 15.2 | % |
| - | % |
| 15.2 | % |
|
Surgical |
| 225.3 |
|
| 200.7 |
|
| 12.3 |
|
| - |
|
| 12.3 |
|
|
Consumer Eye Care |
| 74.3 |
|
| 72.7 |
|
| 2.2 |
|
| - |
|
| 2.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total United States Sales |
| 560.5 |
|
| 499.9 |
|
| 12.1 |
|
| - |
|
| 12.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical |
| 176.9 |
|
| 149.9 |
|
| 18.0 |
|
| 3.3 |
|
| 14.7 |
|
|
Surgical |
| 259.0 |
|
| 237.8 |
|
| 8.9 |
|
| 2.0 |
|
| 6.9 |
|
|
Consumer Eye Care |
| 74.7 |
|
| 70.5 |
|
| 6.0 |
|
| 3.7 |
|
| 2.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total International Sales |
| 510.6 |
|
| 458.2 |
|
| 11.4 |
|
| 2.7 |
|
| 8.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Global Sales | $ | 1,071.1 |
| $ | 958.1 |
|
| 11.8 | % |
| 1.3 | % |
| 10.5 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRODUCT SALES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infection/inflammation | $ | 157.6 |
| $ | 138.8 |
|
| 13.5 | % |
|
|
|
|
|
|
|
Glaucoma |
| 153.3 |
|
| 134.9 |
|
| 13.6 |
|
|
|
|
|
|
|
|
Allergy |
| 73.3 |
|
| 70.9 |
|
| 3.4 |
|
|
|
|
|
|
|
|
Otic |
| 74.9 |
|
| 54.1 |
|
| 38.4 |
|
|
|
|
|
|
|
|
Other pharmaceuticals/rebates |
| (21.3 | ) |
| (22.3 | ) |
| N/M |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Pharmaceutical |
| 437.8 |
|
| 376.4 |
|
| 16.3 |
|
| 1.3 | % |
| 15.0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intraocular lenses |
| 165.0 |
|
| 139.6 |
|
| 18.2 |
|
|
|
|
|
|
|
|
Cataract/vitreoretinal |
| 307.6 |
|
| 282.4 |
|
| 8.9 |
|
|
|
|
|
|
|
|
Refractive |
| 11.7 |
|
| 16.5 |
|
| (29.1 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Surgical |
| 484.3 |
|
| 438.5 |
|
| 10.4 |
|
| 1.1 |
|
| 9.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact lens disinfectants |
| 78.3 |
|
| 79.5 |
|
| (1.5 | ) |
|
|
|
|
|
|
|
Artificial tears |
| 42.2 |
|
| 36.5 |
|
| 15.6 |
|
|
|
|
|
|
|
|
Other |
| 28.5 |
|
| 27.2 |
|
| 4.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consumer Eye Care |
| 149.0 |
|
| 143.2 |
|
| 4.1 |
|
| 1.9 |
|
| 2.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Global Sales | $ | 1,071.1 |
| $ | 958.1 |
|
| 11.8 | % |
| 1.3 | % |
| 10.5 | % |
|
N/M - Not Meaningful
Note: Percent Change in Constant Currency calculates sales growth without the impact of foreign exchange fluctuations. Management believes constant currency sales growth is an important measure of the company’s operations because it provides investors with a clearer picture of the core rate of sales growth due to changes in unit volumes and local currency prices.
ALCON, INC. AND SUBSIDIARIES
Global Sales
(USD in millions)
| Nine months ended |
|
|
|
|
| %Foreign |
|
| %Change in |
|
| ||||
| September 30, |
|
|
|
|
| Currency |
|
| Constant |
|
| ||||
|
| 2005 |
|
| 2004 |
|
| %Change |
|
| Change |
|
| Currency |
|
|
GEOGRAPHIC SALES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical | $ | 824.5 |
| $ | 746.1 |
|
| 10.5 | % |
| - | % |
| 10.5 | % |
|
Surgical |
| 637.0 |
|
| 578.1 |
|
| 10.2 |
|
| - |
|
| 10.2 |
|
|
Consumer Eye Care |
| 215.1 |
|
| 210.3 |
|
| 2.3 |
|
| - |
|
| 2.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total United States Sales |
| 1,676.6 |
|
| 1,534.5 |
|
| 9.3 |
|
| - |
|
| 9.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical |
| 547.9 |
|
| 449.9 |
|
| 21.8 |
|
| 5.1 |
|
| 16.7 |
|
|
Surgical |
| 856.4 |
|
| 763.4 |
|
| 12.2 |
|
| 4.1 |
|
| 8.1 |
|
|
Consumer Eye Care |
| 232.7 |
|
| 213.1 |
|
| 9.2 |
|
| 4.8 |
|
| 4.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total International Sales |
| 1,637.0 |
|
| 1,426.4 |
|
| 14.8 |
|
| 4.6 |
|
| 10.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Global Sales | $ | 3,313.6 |
| $ | 2,960.9 |
|
| 11.9 | % |
| 2.2 | % |
| 9.7 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRODUCT SALES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infection/inflammation | $ | 490.2 |
| $ | 440.9 |
|
| 11.2 | % |
|
|
|
|
|
|
|
Glaucoma |
| 463.8 |
|
| 394.6 |
|
| 17.5 |
|
|
|
|
|
|
|
|
Allergy |
| 295.4 |
|
| 268.9 |
|
| 9.9 |
|
|
|
|
|
|
|
|
Otic |
| 178.0 |
|
| 138.8 |
|
| 28.2 |
|
|
|
|
|
|
|
|
Other pharmaceuticals/rebates |
| (55.0 | ) |
| (47.2 | ) |
| N/M |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Pharmaceutical |
| 1,372.4 |
|
| 1,196.0 |
|
| 14.7 |
|
| 1.9 | % |
| 12.8 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intraocular lenses |
| 493.9 |
|
| 429.7 |
|
| 14.9 |
|
|
|
|
|
|
|
|
Cataract/vitreoretinal |
| 956.3 |
|
| 863.6 |
|
| 10.7 |
|
|
|
|
|
|
|
|
Refractive |
| 43.2 |
|
| 48.2 |
|
| (10.4 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Surgical |
| 1,493.4 |
|
| 1,341.5 |
|
| 11.3 |
|
| 2.3 |
|
| 9.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact lens disinfectants |
| 229.5 |
|
| 229.9 |
|
| (0.2 | ) |
|
|
|
|
|
|
|
Artificial tears |
| 129.4 |
|
| 104.9 |
|
| 23.4 |
|
|
|
|
|
|
|
|
Other |
| 88.9 |
|
| 88.6 |
|
| 0.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consumer Eye Care |
| 447.8 |
|
| 423.4 |
|
| 5.8 |
|
| 2.4 |
|
| 3.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total Global Sales | $ | 3,313.6 |
| $ | 2,960.9 |
|
| 11.9 | % |
| 2.2 | % |
| 9.7 | % |
|
N/M - Not Meaningful
Note: Percent Change in Constant Currency calculates sales growth without the impact of foreign exchange fluctuations. Management believes constant currency sales growth is an important measure of the company’s operations because it provides investors with a clearer picture of the core rate of sales growth due to changes in unit volumes and local currency prices.
ALCON, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(USD in millions)
|
| Sept 30, |
|
| Dec 31, |
|
|
|
| 2005 |
|
| 2004 |
|
|
Assets |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents | $ | 1,112.5 |
| $ | 1,093.4 |
|
|
Short term investments |
| 287.1 |
|
| 138.2 |
|
|
Trade receivables, net |
| 770.4 |
|
| 696.8 |
|
|
Inventories |
| 424.6 |
|
| 455.2 |
|
|
Deferred income tax assets |
| 175.4 |
|
| 176.1 |
|
|
Other current assets |
| 85.2 |
|
| 84.4 |
|
|
|
|
|
|
|
|
|
|
Total current assets |
| 2,855.2 |
|
| 2,644.1 |
|
|
|
|
|
|
|
|
|
|
Long term investments |
| 239.9 |
|
| - |
|
|
Property, plant and equipment, net |
| 812.2 |
|
| 830.2 |
|
|
Intangible assets, net |
| 315.4 |
|
| 329.3 |
|
|
Goodwill |
| 550.4 |
|
| 549.2 |
|
|
Long term deferred income tax assets |
| 83.9 |
|
| 66.4 |
|
|
Other assets |
| 55.2 |
|
| 48.9 |
|
|
|
|
|
|
|
|
|
|
Total assets | $ | 4,912.2 |
| $ | 4,468.1 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable | $ | 131.1 |
| $ | 126.2 |
|
|
Short term borrowings |
| 890.5 |
|
| 911.6 |
|
|
Current maturities of long term debt |
| 5.7 |
|
| 4.5 |
|
|
Other current liabilities |
| 908.3 |
|
| 835.1 |
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
| 1,935.6 |
|
| 1,877.4 |
|
|
|
|
|
|
|
|
|
|
Long term debt, net of current maturities |
| 68.6 |
|
| 71.9 |
|
|
Long term deferred income tax liabilities |
| 20.5 |
|
| 23.3 |
|
|
Other long term liabilities |
| 327.1 |
|
| 307.6 |
|
|
Contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
|
|
Common shares |
| 43.3 |
|
| 42.7 |
|
|
Additional paid-in capital |
| 762.8 |
|
| 547.3 |
|
|
Accumulated other comprehensive income |
| 101.5 |
|
| 225.4 |
|
|
Deferred compensation |
| (0.6 | ) |
| (2.6 | ) |
|
Retained earnings |
| 2,221.6 |
|
| 1,653.6 |
|
|
Treasury shares, at cost |
| (568.2 | ) |
| (278.5 | ) |
|
|
|
|
|
|
|
|
|
Total shareholders' equity |
| 2,560.4 |
|
| 2,187.9 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity | $ | 4,912.2 |
| $ | 4,468.1 |
|
|
ALCON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in millions)
| Nine months ended Sept 30, |
|
| ||||
|
| 2005 |
|
| 2004 |
|
|
|
|
|
|
|
|
|
|
Cash provided by operating activities: |
|
|
|
|
|
|
|
Net cash from operating activities | $ | 1,073.1 |
| $ | 862.5 |
|
|
|
|
|
|
|
|
|
|
Cash provided by (used in) investing activities: |
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
| (106.7 | ) |
| (109.1 | ) |
|
Purchases of intangible assets |
| (43.2 | ) |
| (69.9 | ) |
|
Net purchases of investments |
| (381.3 | ) |
| (39.7 | ) |
|
Other |
| 2.2 |
|
| 1.2 |
|
|
|
|
|
|
|
|
|
|
Net cash from investing activities |
| (529.0 | ) |
| (217.5 | ) |
|
|
|
|
|
|
|
|
|
Cash provided by (used in) financing activities: |
|
|
|
|
|
|
|
Net proceeds from (repayment of) short term debt |
| (11.7 | ) |
| (505.2 | ) |
|
Repayment of long term debt |
| (5.2 | ) |
| (9.0 | ) |
|
Dividends on common shares |
| (302.0 | ) |
| (169.4 | ) |
|
Proceeds from exercise of stock options |
| 138.1 |
|
| 19.9 |
|
|
Acquisition of treasury shares |
| (292.7 | ) |
| (174.2 | ) |
|
|
|
|
|
|
|
|
|
Net cash from financing activities |
| (473.5 | ) |
| (837.9 | ) |
|
|
|
|
|
|
|
|
|
Effect of exchange rates on cash and cash equivalents |
| (51.5 | ) |
| (12.9 | ) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
| 19.1 |
|
| (205.8 | ) |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning of period |
| 1,093.4 |
|
| 1,086.0 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period | $ | 1,112.5 |
| $ | 880.2 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
|
Cash paid during the period for the following: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net of amount capitalized | $ | 28.1 |
| $ | 21.2 |
|
|
|
|
|
|
|
|
|
|
Income taxes | $ | 111.8 |
| $ | 199.4 |
|
|
|
|
|
|
|
|
|
|
ALCON, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Disclosures (Unaudited)
(USD in Millions, except per share data)
| Year ended December 31, 2004(1) | ||
|
| Non-GAAP | Non-GAAP |
| Reported | Adjustment | Adjusted |
Effective Tax Rate | 22.6% | 5.1% | 27.7% |
(1) | The adjusted item above is considered a non-GAAP financial measure as defined by Regulation G promulgated by the U.S. Securities and Exchange Commission related to the favorable impact of filing amended federal income tax returns to claim research and experimentation tax credits for prior years and to the resolution of several significant tax audit issues. Alcon presents this non-GAAP measure to improve the comparability and consistency of financial results of Alcon's core business activities and to enhance the overall understanding of Alcon's performance and future prospects |
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements principally relate to statements regarding the expectations of our management with respect to the future performance of various aspects of our business. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by our forward-looking statements. Words such as "may," "will," "should," "could," "would," "expect," "plan," "anticipate," "believe," "hope," "intend," "estimate," "project," "predict," "potential" and similar expressions are intended to identify forward-looking statements. These statements reflect the views of our management as of the date of this press release with respect to future events and are based on assumptions and subject to risks and uncertainties and are not intended to give any assurance as to future results. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Factors that might cause future results to differ include, but are not limited to, the following: the development of commercially viable products may take longer and cost more than expected; changes in reimbursement procedures by third party payers may affect our sales and profits; competition may lead to worse than expected financial condition and results of operations; currency exchange rate fluctuations may negatively affect our financial condition and results of operations; pending or future litigation may negatively impact our financial condition and results of operations; litigation settlements may adversely impact our financial condition; the occurrence of excessive property and casualty, general liability or business interruption losses, for which we are self-insured, may adversely impact our financial condition; product recalls or withdrawals may negatively impact our financial condition or results of operations; government regulation or legislation may negatively impact our financial condition or results of operations; changes in tax laws or regulations in the jurisdictions in which we and our subsidiaries are subject to taxation may adversely impact our financial performance; supply and manufacturing disruptions could negatively impact our financial condition or results of operations. You should read this press release with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. Except to the extent required under the federal securities laws and the rules and regulations promulgated by the Securities and Exchange Commission, we undertake no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information or future events or circumstances or otherwise.
For more information, contact:
Doug MacHatton
Vice President,
Investor Relations and Strategic Corporate Communications
817-551-8974
or
Wes Brazell
Director,
Investor Relations
817-551-8897
www.alconinc.com