FOR IMMEDIATE RELEASE
CONTACT:
Norris Battin
nbattin@usa.net
THE COOPER COMPANIES, INC. HOLDS
ANNUAL MEETING OF STOCKHOLDERS
LAKE FOREST, Calif., March 25, 2003--At its annual meeting held today in New
York City, stockholders of The Cooper Companies, Inc. (NYSE: COO) elected eight
directors, ratified the appointment of KPMG LLP as the Company's auditors for
fiscal 2003 and approved amendments to the Company's Long Term Incentive Plan
and to its Certificate of Incorporation.
In his remarks to stockholders, A. Thomas Bender, chairman, president and chief
executive officer, said that Cooper has three major business objectives going
forward:
o To increase revenue and earnings 15% to 20% per year for the next five
years.
o To continue to be the fastest growing specialty contact lens company
and achieve global market leadership by mid-decade.
o To grow revenue at CooperSurgical, the Company's women's healthcare
business, at mid-teens rates over the next five years and achieve
operating margins in the mid-twenty percent range.
Business Reviews
Bender said that he expects the worldwide soft contact lens market to grow in
the high single digits over the next three years and then accelerate its growth
into double digits toward the end of the decade. Favorable market demographics
throughout the industrialized world will drive this growth, as a new cohort of
teenagers--the primary market for contact lenses--enters the market.
In addition, underpenetrated international markets offer great promise for
improved soft contact lens acceptance. In the United States, over 20% of those
requiring vision correction wear contact lenses, but in other major markets,
their acceptance is significantly less. In Japan, the world's second largest
contact lens market, only about 12% of people with visual defects wear contacts;
in Europe, about 8% wear them.
"Given these favorable market dynamics and the continuing adoption by patients
and practitioners of the specialty and value added contact lens products that
CVI is noted for, I expect that CVI will continue to achieve 15% to 20% revenue
growth per year over the next five years," said Bender. "For 2003, I expect CVI
worldwide revenue of $310 to $315 million."
CVI's 2002 acquisition of Biocompatibles Eyecare, Inc., a contact lens
manufacturer specializing in contact lenses for patients with discomfort from
dry eyes - a major cause of lens wearers dropping out of the market - adds
another important niche to its specialty lens franchise and makes CVI the
world's fourth leading contact lens manufacturer. Biocompatibles is expected to
contribute about $90 million to CVI's 2003 revenue.
"In the fastest growing specialty segment of the contact lens market, toric
lenses that correct astigmatism, CVI's nearly 33% market share now leads the
worldwide market, and new product introductions continue around the world," said
Bender. "More and more practitioners are accepting our cosmetic lens products
which enhance or change the appearance of the color of the eye, and our monthly
Frequency'r' Multifocal, which provides presbyopic correction.
"CVI's revenue momentum continues, as market demand shifts from commodity lenses
to specialty lenses and value added spherical lenses, CVI's predominant product
lines."
Bender said that he expects CooperSurgical (CSI), the Company's women's
healthcare business, to expand its franchise through continued market
consolidation and through internal growth from its expanded line of products
used in incontinence, osteoporosis, reproductive medicine and pap testing. In
2002, CSI grew 22%, including 8% from organic growth and the remainder from
acquisitions.
In executing its business strategy, CSI has acquired 18 companies or product
lines in the past eight years in the medical device sector of the women's
healthcare market. In 2002, CSI acquired the bone densitometry business of
Norland Medical Systems, and two companies that specialize in reproductive
medicine, Ackrad Laboratories and Sage BioPharma.
For fiscal 2003, CSI expects to reach $85 million to $90 million in revenue with
operating margins exceeding 20%.
Revenue and Earnings Guidance
For fiscal 2003, The Cooper Companies estimates that its earnings per share will
range between $2.03 and $2.07 with revenue between $395 million and $405
million. For the second fiscal quarter of 2003, Cooper expects revenue to range
from $96 million to $99 million with earnings per share ranging from 46 cents to
49 cents.
Other Business
In other business stockholders:
o Approved an increase in the authorized shares of the Company's common
stock from 40 million to 70 million shares
o Approved amendments to the Company's Long Term Incentive Plan that:
o Increased the number of shares under the plan to 4.7 million
o Extended the term of the plan to December 31, 2006
o Eliminated certain unused features in the current plan.
Board of Directors and Officers
Cooper's stockholders elected the following as members of the board of
directors: A. Thomas Bender, president and chief executive officer of the
Company; Michael H. Kalkstein, a partner in the law firm of Oppenheimer, Wolff &
Donnelly, LLP; Moses Marx, general partner of United Equities; Donald Press,
executive vice president of Broadway Management Company, Inc., and principal in
the firm of Donald Press, P. C.; Steven Rosenberg, president, chief executive
officer and chief financial officer of Berkshire Bankcorp Inc; Allan E.
Rubenstein, M.D., chairman of the board of directors of University HeartScan and
a member of the faculty of the Mt. Sinai School of Medicine and the Mt. Sinai
Neurofibromatosis Research and Treatment Center, Robert S. Weiss, executive vice
president and chief financial officer of the Company; and Stanley Zinberg, M. D,
executive vice president and vice president for practice activities for the
American College of Obstetricians and Gynecologists.
Following the stockholders' meeting, the board elected A. Thomas Bender,
chairman of the board and chief executive officer and president of The Cooper
Companies, Inc., and president of CooperVision, Inc. and Allan E. Rubenstein,
M.D., vice-chairman of the board and lead director.
The board also elected as officers of the Company: Robert S. Weiss, executive
vice president and chief financial officer, B. Norris Battin, vice president
investor relations and communications, Carol R. Kaufman, vice president of legal
affairs, secretary and chief administrative officer, Stephen C. Whiteford, vice
president and corporate controller and David Acosta, treasurer.
Forward Looking Statements
Some of the information included in this news release contains "forward-looking
statements" as defined by the Private Securities Litigation Reform Act of 1995.
The forward-looking statements include certain statements pertaining to our
capital resources, performance and results of operations. In addition, all
statements regarding anticipated growth in our revenue, anticipated market
conditions and results of operations are forward-looking statements. To identify
forward-looking statements look for words like "believes," "expects," "may,"
"will," "should," "seeks," "intends," "plans," "estimates" or "anticipates" and
similar words or phrases. Discussions of strategy, plans or intentions often
contain forward-looking statements. These, and all forward-looking statements,
necessarily depend on assumptions, data or methods that may be incorrect or
imprecise.
Events, among others, that could cause actual results and future actions to
differ materially from those described in forward-looking statements include
major changes in business conditions, a major disruption in the operations of
our manufacturing facilities, new competitors or technologies, significant
delays in new product introductions, the impact of an undetected virus on our
computer systems, acquisition integration delays or costs, increases in interest
rates, foreign currency exchange exposure, investments in research and
development and other start-up projects, dilution to earnings per share from
acquisitions or issuing stock, regulatory issues, cost of complying with new
corporate governance regulatory requirements, changes in tax laws or their
interpretation, changes in geographic profit mix effecting tax rates,
significant environmental cleanup costs above those already accrued, litigation
costs including any related settlements or judgments, cost of business
divestitures, the requirement to provide for a significant liability or to write
off a significant asset, changes in accounting principles or estimates, and
other factors described in our Securities and Exchange Commission filings,
including the "Business" section in our Annual Report on Form 10-K for the year
ended October 31, 2002. We caution investors that forward-looking statements
reflect our analysis only on their stated date. We disclaim any intent to update
them except as required by law.
Earnings per share
All references to earnings per share in this report are to diluted earnings per
share from continuing operations.
Corporate Information
The Cooper Companies, Inc. and its subsidiaries develop, manufacture and market
specialty healthcare products. Corporate offices are located in Lake Forest and
Pleasanton, Calif. A toll free interactive telephone system at 1-800-334-1986
provides stock quotes, recent press releases and financial data. The Cooper
Companies' World Wide Web address is www.coopercos.com.
CooperVision, Inc., markets a broad range of contact lenses. Headquartered in
Lake Forest, Calif., it manufactures in Huntington Beach, Calif., Rochester,
N.Y., Norfolk, Va., Adelaide, Australia, Farnborough and Hamble, England,
Madrid, Spain and Toronto. Its Web address is www.coopervision.com.
CooperSurgical, Inc., supplies diagnostic products, surgical instruments and
accessories to the gynecology market. With headquarters and manufacturing
facilities in Trumbull, Conn., it also manufactures in Bedminster, N.J.,
Cranford, N.J., Fort Atkinson, Wis., Malmo, Sweden, Montreal and Berlin. Its
World Wide Web address is www.coopersurgical.com.
Trademarks of The Cooper Companies, Inc., and its affiliates are italicized.
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