COO - Earnings call transcript Q4 2021 | The Cooper Companies, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Q4 2021 Cooper Companies Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers ' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. now today, hand Investor Kim Risk would to conference Relation I Management. speaker your Duncan, Instructions] like the to over and [Operator Vice President, go please Ma'am, ahead.

Kim Duncan

and to Companies And Conference the afternoon. XXXX Earnings welcome Fourth Good Quarter Full Year Call. Cooper

will we results the earnings call, in remaining time and use and then today's the included for the discuss During guidance release questions.

are Chief Chief Executive Brian Andrews, Financial Our and and presenters Officer President on Al White, today's Officer call Treasurer. and

this statements conference I'd all market like to results acquisitions that of acquisitions, and statements, per remind Before -- of conditions contains we including any call you or revenue share begin, forward-looking guidance, regarding operations, earnings anticipated and other regulatory integration and or other anticipated benefits.

or imprecise are forward-looking incorrect may filings, to following Cooper's call investor in cooperco.com. Al and the SEC And ir@cooperco.com. our Forward-looking the line over you Statements data, methods differ his actual XXX-XXX-XXXX in to cause risks turn at of from Forward-looking that call and XX-Q in under Events subject and additional are available including those of statements to please for earnings described or statements Form and that could on the website release Form results XX-K remarks. Should any or Company email have today's filings, the are caption call, set all questions and materially uncertainties. forth our which at on our now be are actions depend future assumptions, described I'll opening

Al White

led the high-end to we quarter to report fiscal of at CooperVision, the pleased where conference I'm and expectations by Kim, everyone revenues welcome fourth you Companies for record Thank another quarter. strong quarter exceeded call. Cooper

business and acquire and agreement generated gains our fertility Sciences, Our myopia delivery offerings. Generate our Within to a account great and we an strong markets and key portfolios with exciting perform to strategic strategy announced And recently labor CooperSurgical, well in around share our world. continued fit extremely management daily posted the results. hydrogel silicone Life fertility

I'm revenues report cash earnings, record For full both and fiscal and year XXXX, record the CooperVision proud non-GAAP record free flow. CooperSurgical, to at

As we year. another enter expect momentum record-setting strong we and XXXX, fiscal have

quarter $XXX all consolidated Non-GAAP were earnings with $XXX basis, million, CooperVision results, a XX%. XX%, share Regarding at up percentages on and revenues fourth $XXX reporting $X.XX. million, constant-currency up and CooperSurgical were million, per at

regions market performing For a this our X premium hydrogel portfolio in the really and XX%. both CooperVision, multifocals. supported product with led product by silicone product Biofinity reported clariti, way well. also in torics mass strength our daily and growing category quarter, our had strength All MyDay solid

XX% led healthy MyDay grew growth we in and regions, shared Biofinity. the a region, X% where fit with hydrogel broad-based activity. consumer with silicones growth lenses, our daily strong Within accounts, our and activity by gains. EMEA posted improving from the For strength in grew particular we and daily silicone this Americas seeing continued key strength our driving

remains a by several consumer we're region accordingly driver we're investing important market product steady very and activity led in XX% success grew share. launches. taking and with Pac Asia the growth new us, and a for This outperforming improvement as

space. innovative offerings, growth Biofinity and portfolio, including around driving world FRP our results its in with tour product in the most the markets solid Energys, the For posted Multifocal broad of a monthly

all continued. that past extensions products for Biofinity, range MyDay, we the highlighted MyDay is the in We've This gains the highlight multifocal. and fantastic. has absolutely that and we've expect major and several that and fit breakthrough we launches, the launched many and European simplifies levels. distant product to driven ever that all who share quarter near, active. and acuity new our hearing I incredibly One hearing for it that visual intermediate, progressive to are activity markets, the from optimal continue. And from worn been provides we're and recent a vision. as at system that clariti, U.S. want exceptional feedback the best approach consistent fitting eyecare in launch the new practitioners this is world launching We're and patients around are multifocal product results Regarding and they've binocular consistently touting remain I've the

of nice this to Sears. provide to effect extremely successful a We MyDay performing launch the halo well and brand expect Torics already supporting continue and

myopia to XX%. of XX% portfolio up We the up goal our grew with is XXX% our $XX up XX% MiSight management, our million to for and $XX strong. momentum reached Ortho million to products year, Moving $X -K million, and year-over-year

broadest As SightGlass Vision glasses. the leader the a global is our controlled MiSight, FDA comprised product, management broad market-leading industry and range in portfolio space, of myopia ortho-k of innovative our only our -approved the lenses, in myopia the

We've for and XXX% and will didn't providing impressive myopia an in our is very progress we retailers positioning, progress year, how grow into This MiSight, million over can with China. XX% also making hospitals groups the of Regarding sales seeing distribution in experts contact in largest around fit our month exclusive fiscal affiliated volume great this but launch optometry we're a channels. all We're target on management trade of whose and these agreement China, quite launch SLR an SightGlass we even opinion target assembled how full successfully year-over-year. soft represent optometrists, key we for the $XX is a of up at SLR. we're MiSight the reach actively team shows, in MiSight quarter, did advisory leaders world, X where momentum last promoting fantastic with now also making QX. and following great in independent full reach buying our in. insight of We're we and board lens signed Ortho-K faster,

so the reminder, and opportunity government, childhood Chinese China reducing is are estimated myopia over significant. for As rates in priority a at the a is myopia XX%

child product as X-year it progression confirming children. drivers myopic no myopia Lastly, of cuts stopped. any all will long-term nearly works we works a and a at our growth. industry-leading if as child's presented that It the there's starts average. short on recently roughly is wears treatment. are clinical continue XX% for age treatment the These by supporting It MiSight, It study long and for rebound works

new be myopic that practitioners in roughly our According recent with trends Europe and soon. Regarding to on activity increase in our and EMEA overall in growth we other Management, long-term capacity the performed improving in X%, growth constant-currency but really activity eye well with To remain the still myopia while our being XX% several roughly Having Essilor, in we're management roughly the products, fiscal we $XXX to And X% success solid, said of X/X November, XX% Management additional and our Asia-Pac. SightGlass staffing Ortho-K by reopening launches in Myopia over co-launched we expected led they Overall, mostly Myopia them in Fits our portfolio the glasses world fit year, this China. XX% range on to vision, we'll care to today macro sales. the lens stated levels. to conclude supported coming in partnering serve calendar QX, pre-COVID with Meanwhile data, to and by U.S. grow market are market trends and by coming XXXX. targeting million more positive of even grew is contact in patients estimate strong grew and XXXX that, momentum to CooperVision challenges. as X% of X% expect U.S. below remained had can not, due the to commercially

exceeding high-end the opportunities increased To our For our portfolio, new management CooperVision, in XXXX and strategy. fiscal this front a fit we've of ensure force we're myopia strong robust with the and myopia of and sales really we've fast-growing growth we'll our investment product a business, a expectations, note, successful continue closed seizing we year entered management strong launches, data. fiscal on investments with us, product

strong growing we and than have market, momentum, that We continue. we're faster to expect the

CooperSurgical. to Moving

maximize around consumables, fertility and proprietary to about. portfolio, and particular capital was year-over-year prevent world distancing management optimizing well, A platform. important is continued lab XX% of This implement Witness One and equipment, RI exceptionally million. automated especially today's throughout is as their lab system genomics. to growing this occasionally enable was practices. business that Strength $XX such improve safety product our by quality hear performed from including strength world control which to Our mismatches, our seen social and area to unfortunately the security system mistakes, and our in like clinics embryo management workflow you

that more of couples as suffer the Regarding in to XX% X% XXX approaching due individuals from is to increasing million growth X variety our estimated infertility. market a addressable X has It's billion industry, such trouble getting And pregnant that age. long-term maternal with factors, X expected. worldwide broader than fertility

[Indiscernible] patient grow nicely X%. devices global Given manipulators, and our Within awareness, uterine should portfolio greater the we discussing for years performed unit, to surgical disposable increasing of improving led come. office access and growing many grew well, IVF, comfort to increase. devices, general Meanwhile, buy-in to IUD line. from was as to XX% market, by Medical industry XX%, income, our treatments, product this that, increasing several we've quarter's our Having last activity what surgical similar likely performance staffing soft, of next-generation COVID said and advanced due largely declined forecasted, price challenges. our the to PARAGARD from due the seen

Many agreement years to of and fit Life cord done for over a Labor well Sciences cord treatments, may acquire fit phenomenal blood business excellent CooperSurgical know great as we in cord expanding preservation storage, Delivery with this is job $X.X CooperSurgical, sperm an which tissue as Lastly, a a services strategic you business, now and they're cryo a for this fertility egg blood is for and billion. in our a recently leader an Company leader and and donor as Generate for but they've being storage group. as announced the

demand We're due lens extremely significant business that me our this Introducing space XXXX. to are with an to investing exciting to and expertise. is we Roughly summarizes the growth operations the supported grow make and X% launch general myopia which this us we returns. growth Consolidated, cells the as investor annual let continue. provide expect product to And is in synergies we're color. we combining is X% but offers to receive We sustainable is by will few products revenue challenge doing the blood our long-term. most products, intelligently cells revenue grow XX% growth some position potential leverage have to comments long-term product to with COVID on portfolio, is trials strong X/X increasing push in to opportunities innovative deal, allows X%, for using contact market. core fiscal core me storage, growth. uncertainties. by leveraging launches we to a estimate leverage CooperSurgical business and Meanwhile, by clinical higher, the given new I Company driven tissue is and X/X offerings presentation believe around the in Fertility our there finish, additional ensure organic international range range. by go infrastructure, which Regardless, business stem the beyond let and to believe accelerate we number industry is in generates expect broadest of management existing long-term, stem that X% in our that of an To our regenerative guidance CooperVision world strong website business. of tissue led today's a in these today, we with leading the and on infertility, our offerings optimism of our in the This for medicine. X% core that

and with over and a trend we upward Company, fiscal beyond. for Brian. XXXX that, on I turn remain that to years the As we And a will steady continuing see many call

Brian Andrews

Fertility decreased will Most increased XX% negatively tax commentary to lower of average a margins also constant year-over-year everyone. XX.X%, million quarter forecasted rate distribution to to Non-GAAP was along our XX% million. Al. the manufacturing costs, worse on with cash higher so gross non-GAAP and decreased offset and grew for exercises lower basis, at gave guidance by $X.XX, reconciliation comprised $X.XX primarily impacted $XXX points Consolidated year. costs of on currency, us direct CooperVision. to average and Net debt strategic EPS we to as initially Within at Free currency, flow $XX in from roughly Vision sales to expenses SightGlass basis and this, consolidated flow ratio a we Consolidated was earnings be $X $X.X you, adjusted with tied cash refer FX XX.X% afternoon, good shares by of operating by our down Management higher release XX% non-GAAP outstanding. was when did China, to by than demand revenues year-over-year, was for investments Interest shipments. GAAP elevated marketing solid XX.X of and and stock last see than please billion million was $XXX expense driven were roughly million margin investments and MiSight Thank operating in the support expected And by partially XX.X%, to XX million debt slightly of continued. in effective Fourth Operating option my results. last improved million, CapEx. XX.X%, leverage quarter. X.XXx. quarter. of offset Myopia $XXX in helped

million, roughly rate the $X.XXX is in Sciences of currency in to equates X% CooperVision up and $X.XXX billion, X% X% up $XXX roughly currency, $XX, billion constant to X.X% consolidated X% the be $X.XXX Life million currency. and Non-GAAP Generate revenues constant to recently-announced to to are and of guidance, be the to X% currency, excluding with At and constant X% of from guidance between constant XXXX revenues tax expected to up and currency constant to expected growth EPS in range and this CooperSurgical billion acquisition, in range $XXX expected revenues to EPS currency billion, around $X.XXX to $XX.XX in the up growth to Moving between constant revenue XX%. is XX.X% XX%. midpoints of X%

X% most a basis, headwind be we're roughly on $X.XX range. EPS. revenues FX impact an to currency will in we're $X expecting QX and of the X.X% Regarding year-over-year on in on This expecting detrimental where EPS

the let announced Before me we questions, on the opening XXth. to November Generate acquisition touch on that Sciences call Life

that, roughly in close so final accretion still months approvals, providing which us today, the specific let As couple not through we we're our In we'll their of me XXXX. walk said operations we're we're optimistic next of that waiting will fiscal for weeks, XX.X of the give expect. in deal Having today. guidance you regulatory the meantime,

and XX% business. be revenue. million has synergies announced, be be expected year As $XXX to in minimal previously trailing in expected roughly and margins to X, to we Generate invest in is are Gross are roughly elevated as OpEx the XX-month expected integrate as

year I'll gains we closed top-line we're transaction, As financing to $X.XX securing will to that closer around Operator to and are both would long-term this back accretion sustainable X believe supporting growth. and continue share with estimate we accretion to fiscal we year with EPS XXXX are non-GAAP year beyond, with permanent add we and In to into now and we strategic drive this earnings for this our as how in questions. And it we summary, X momentum updating businesses pleased investments that, hand look for forward our expect improve in synergies. the

Operator

comes from Blair. question line of Our William the Brackmann [Operator first Instructions] of Andrew

line open. is Your

Andrew Brackmann

all you to questions. color and the taking on here guidance Good just and guys. be the shortly. on going for Hi, start the Maybe are outlook. Appreciate the thanks the forward acquiring business Generate to that here afternoon,

is Now, call that first announcement. of had, this post sort you've the

have? maybe how a offering, mess right these Thanks. this organizations And that fertility marketing that talk your you So standpoint, DTC messes broadly, capability can Generate that there you're just you nice current maybe Anything just how to about your expand commercial can with now? a side from on you guys Al, had to do going strategic angle. just then

Al White

set. me, not was know pretty this that and Yeah. us. it about. talking the on and to it I talking It's you, for frustrating be a many Happy to deal absolutely passionate frustrating for about great be I'm deal Sure. a of for announcement made this. we great Yes, is about a

You're full to really of ability outside talking the us one piece the ability business, it's of the our have think you in in offer fertility. a position as it existing product how going that donor and about just the a it's I'm into suite side. when a fertility to leverage great more existing that walk relationships in. people about and product of with leverage that Adding a X/X is to to in fertility I with clinic to of And I existing our thing our U.S. our We, -- U.S. with about excited roll excited sales know, industry. fertility that's allows pretty clinics our that. get and about this

a got as that fertility been that think by growing so numbers. reported with is do -- industry see that's This XX% at You've you X% business along I the growing of to part can has to space the of to products the be have. able going that think that we're new when that with going to growth the I in some we able we're then accelerate and of of launch be to some least, leverage

slam the the a of perfect you is a will, kind that's on fit. cryo So which touching fertility things. of preservation, even fit, And not side dunk in if

-- are because right bit on are cord of at it, and X/X little has for If and on a more recently time who many a clinical the used about gotten X,XXX. medicine. That probably There's stem cord a side long tissue. cord has of knows about going kit well about you that look piece the exciting that kids is business know That's that. been cells space other people for Anyone tissue, now, the studies around ton the phone storage that. regenerative blood over of of the on for

storage an So in of interest cord seen tissue. increasing you've

around great a team or exciting. handle kind U.S., a that's that. small have calling relatively mean, that's So they people I OB-GYNs on XXX We've on the of so. force sales

you OB-GYN. side messaging lot to going great, but on the take to of DTC drives that right? decision-making things, a and here. DTC of able fine, So medical directly to be And is certainly we that's touched the professional are the the

Our actually time be a going in, on to have able businesses, OB-GYNs of some with ability to going these value we're that you're a one I own to first to great think relationships, bring real who's there. calling that Company directly add

both about pieces of excited So that.

Andrew Brackmann

margins know margin all Generate, just how color. XX% on be margins bit, here on you for a Thanks little just switch so Maybe this might operating the like for to talk about guys accretive you margin Cooper side? about going gross to XX%? this doesn't that this I can expanding time. can talked that's but goal Great. so be year, you look around that total gears have the side, It about of over or XX% into to plays how range talk longer-term

Al White

be Sure. objective. Yes, to an and that continues

As business, on, us fits perspective a a to an to margins the not so back, gross Brian know, Generate currency step causing that's year, you as-reported perspective. XX% but on decent is or well. a this from good from negative and touched fairly us take in really Yeah, constant-currency so

But roll from in we this IT in from other respect a will, will variety anticipating customer we'll buying then it into first roll integration of need a business that activity. past summer our lot year. we Now, we this then, careful leverage care will We this business. leverage thing not and take s, took Australia year service to the so year this, little them get this They the operations. a Canada. the and to business and through need a had be into first everything we acquired to on of We of

at to interest on X. up the not around at is going mark really the OpEx We're question ends the being you in interest more expense. and when this it expense time Now, into point the get because: $X.XX, look

X. We haven't yet, closed Generate

the it financing closed We yet. haven't for permanent

but supply will to get say So term, margins will, a that to XX%. gross help we Company accretive, this when long to can we bit color, it wide be you more little if and suffice do, that us

Operator

Thank you.

Our next from the question, line Larry of Biegelsen.

Your is open. line

Larry Biegelsen

the taking on a congrats nice for quarter, Thanks afternoon. Good question and Al.

Al White

Yeah.

Larry Biegelsen

how us China. I fiscal That not interested help giving think particularly you're And to myopia you're the just know me about XXX million, XXXX. for the of MiSight anymore, hear about from couple A that. thinking components guidance on from but contribution I'm management

that ramp we We've relative the And think which What over MiSight a is think do had percent per how SLR what could all then Stellus' China should -- did pairs selling be many of maybe China, we see to a Stellus? I heard -- day in of how day now. X,XXX so you per what I with things they it still about follow-up. strong. of would X/X pretty in be like think or

Al White

right. You're exciting. really is China I mean,

with products relationship have Epsilor. We our ortho-k a primary Epsilor in distributes China. strong obviously

the the launch exclusive we already there. MiSight, distribution them Now, we for with soft did have

good early We will, are with We're on here them. in China. cylinders, position a you all really hitting in if

The they're talked a about is government well glasses or sold the You so is concern now China significant said addressing ours, myopia seriously. hospitals. publicly their glasses doing which has very that they're Chinese last, that, and as These taking selling the right into with. are it through really lenses contact

down that. it's quickly stand I that break the in definitely in about hopes of by we but we lot for success $XXX past, dollars a have we've can mark, mean, move won't China. talked million something expectations, high I fairly I that that in When successful. and our look be So the still can at necessarily very

my You on opinion MiSight. know

have lot going is ortho-k depend at seeing to on to this It's a products. we're same time, the going that we're our year. with in of China success now. how think I success But successful China,

was I launched mean, happy few bit thinking a product I -- it. parts discount -- about about that's I even little there Europe. success wouldn't we I'm co-launched just So should with more that than moving and and Essilor I maybe say in different a that's A SightGlass.

here into SightGlass said, China in at point As well. you time. We'll doing is some Stellest bring really

in of going $XXX that to parts are So moving lot that different drive there a million.

Larry Biegelsen

helpful. That's

heard thinking competitors XXXX, a bit taking Thanks. you the pressures. take are over thinking assuming X% least are we in little Al. to is guidance? your you Obviously, We in 'XX? that in which How the ability, follow-up, CooperVision, average. see my about are inflationary your above about you For What in price XXXX? in are have How all price at fiscal

Al White

get don't number want will a be price. or to particular taking but specific I we the into right now,

So coming. that's

seeing good on pressures within an business, This there. basis. industry year have higher forth you and great that pricing sides a and industry with You're and the contact inflationary It's goes annual lenses. inflationary both pressures in everything of on warranted and along our it. so We're out is shipping else a

So this a just yes, point be from I'll point stay at you'll I'll we'll near taking higher. number price time, -- but in away some in giving see the future. it at

Operator

Thank you.

question line Mishan Our the of from Matthew next of KeyBanc. is

Your line is open.

Matthew Mishan

Hey, taking lever, about portfolio trying starting point? How just extra control you were tailwind Hey. thoughts where Thanks as the with some and but a guidance. for first quarter, to an also X% around there. to Great. and starting potential the helping myopia X% I'm questions. XXXX the you as you point said, That's CVI some Al. out now understand in easier XXXX, your you starting have you are have for X% just you from X% thinking price especially that what comps you have to increases at

Al White

COVID easy it. word, going conservative, you that as to and with happen X you there. I'm That's some So what's of COVID. out one not going also the sure to variance argue not is on I'm answer to want to that. But as if think X I'll with Right?

in build will, to bit when prudent have little to in giving guidance you like it's you're try that. to for in a we're period try conservatism, bit, a in of to a annual if So today that you only factor little

Matthew Mishan

Okay.

the We then to impact mistaken about that's EPS enough. you're was tax think the what impact making and how said gave the But on -- -- XX% investments think constant on FX I midpoint. EPS to I'm fair currency you all down at you growth, that side, I walk about year-over-year on if with. think when that And think not walk of begin year-over-year the can increased EPS? what we should the you

Al White

low was XXs we XX. to bit in it up because going Tax, little Yeah. the a going have

tax, So be obviously, growth you if would excluded better. our profit

probably If I that the you it, of of is guidance, And currency. level kind I kind if includes at the through is about. of of to talked X% wanted just leverage guidance we I'd it in P&L, tax midpoint the hurdling the look say high a revenue guidance do XX%. constant EPS and of midpoint midpoint that that And guess,

continue in I've leverage the about past where invested can in We've Management; your that's we business this a we a going So lever to areas this investing some aggressively with frankly, Vision of number invest started have how and, several expansion in more force in right to we're talked past sales markets. we there, in business. there. lot Myopia quarter which different a we're

X% of a super and all about through of lot areas. product SightGlass, sales talking and going the that, right different investments P&L. So force, leverage into now: We're multifocal, about a Vision lot XX% launches, MyDay excited doing those investments we're still

and good again, hurdles pretty tax about the increase. that feel that, I So

Operator

Thank you.

line of Johnson Next the question Jeff from Baird. of

open. Your is line

Jeff Johnson

evening. and these fees guys If or portfolio, are comfortable is pricing we that, top more $XX on you that on want with so. everybody in to cases, in How in talk put some guys, of $XXX did seems to or go professional Al, the cord you million it another of just maybe something MiSight like Hi but even you or make really amount that even up out or to MiSight. good penetration, good the push a we maybe two box within not When lot just question, this a technology, and more But the look to patients. into about however price, you if a at it, $XXX that it's selling wholesale price big hurdle, to especially pushing be or probably wants more want haircut you or price by didn't you get excited revenue where year per if a a faster. doc, XXX?

you that So that, I is, do wholesale think think right on pretty -- high just now? that what price

Al White

wanted now. free. the away lot Jeff. get We you lenses Yeah, we had talking especially remember question, about internally right where for great a year-end here, last gave of that's good in comp, a a where to we're the that we against And through U.S. year,

point, your doing Cap that, that, we you up right? So make it. that But are looking and at for sell are product some more we to sensitivity on does price.

get quicker, still was bit child's sell happens. I The get frankly, the put you of the So that, it worse if be to and the the little patients, we're the we're out said talk explains something where That's when explains kids to kids, the in right just the seeing don't they evaluating they means, point, to fit and And that in thought. of to concerns in We're going it's in on That's parents their they worse. amount obviously, we're has and right? now. situation doesn't XX want what contact they X which, it's longer a eyesight's X. a The come again. want parents, far pushback like it's that to but -- will, to then staffing I the months, The the actual back price, but thought it's or getting the it converting it's in it, kind just Having continues than definitely have numbers ECP it's continue -- delayed. progressing, the myopia, what the talk their by not kid process they're how is to going little number X list, that, a to bit there months, it about uptake, and come happen the concerns. so taking to still takes and to X there we the time the decision actually that, concerned kids not a more parent of number months. ECP when It putting initially ton it's pay, happening, your delay a lenses, sale

a of component activities is it, it better fit I going but also. to think drive is pricing just

Jeff Johnson

And helpful. to little maybe up of If as X incremental just a myopia, million point point that around -- X. half. basis, constant follow X That's X - the the Yeah. north market to that's take $XX half there a a currency - and-a out and-a per about then [Indiscernible] a and on CDI. I X --

about your Xs in portfolio you're the say X.X. talking let's X.X core -- to So the

line does X with, and So in you people X, to been Is X% X% X year industry the Historically, or that X pricing above that that that, with going take think assumption price again, upside we that there X X step are saying, you're instead to up to you've whole launches? a include for Is to of You're we it's market X Thanks. [Indiscernible] just the the going nicely market. There's some kind about price. conservatism? in competitive market. COVID? this do do and X X historically market. to Is be think think you of

Al White

pricing have do Yeah, I think in there. you

make because that that's certainly an going the could little on be have you bit today, the everything that you markets a up argument range X that different to lower the there. in COVID pricing, could do marketplace X here X pricing You around to else Sitting obviously, have, X in world. with the the in I concerns, some end in we'll think with

and be of share. so competitive ahead share, accounts launches based so strength if out be will on some it want market growth. a ensure, there's if Myopia on share. not share especially I will. other are think that think going will the a and market portfolio we're we'll I really if management above there, don't core, on be a forth, market key will seeing we'll I'm you will, Asia but But There take take it Europe --our and obviously, to stuff I'm get be don't -- basis, like-to-like surprised like-to-like basis, share. some sure on really take myopia no share. I on add you lot I'd if we'll ourselves, but that, and necessarily management a of in take we good with Pac, surprised I'll

meaning the would Pac for we're degree us like come back of think continues really portfolio on Japan core basis, a a now, gains share be basis, gains. will on tied places Asia If we to share and some well-positioned stretch geographies. I right where like-to-like certainly to our

Operator

you. Thank

the Jon Next of Stifel. line from question of Block

open. is line Your

Jon Block

the first for you. maybe Brian, afternoon. one good guys, Hey

guys the you OpEx expansion? Just applied But after other But we the bit be as 'XX on a and of maybe have for tax parts? margin think into parts the leverage gross Is to called how little it rate. any higher flattish of color ongoing about prior because moving the Alice point. about There investments. some about model think some to things, when of consideration taking revenue, percent seems in a P&L just flagged especially out

Brian Andrews

much of first don't Well, today. I all, that question you comp. the very question. thank got a for Jon, think I've one to Happy take

to gross you up even currency on of when relates and take you when our constant and a margins margins -- up more start guidance, it basis midpoint operating year-over-year the in be operating margin's will year-over-year. be will as So, margins, guidance, out gross

talking pressures in freight areas margins. then was growth fertility, getting the we're wages also that's Al we and talking showing higher continued and inflationary from some the from operating -- levering myopia leverage and hurdling activity these were or we're having and cost. about revenues, other when And investment like higher in So about leverage like up and P&L

year-over-year. So I expect operating margins the be would nicely to up

Jon Block

on to price I'll one, side, equally the fertility our out, part maybe Paragard Does some handful things? weigh puzzle, the fully do opinion, past tack of exiting Generate. does side smaller then in place it. of parts over maybe know like you've but generated, the due Thanks. obviously the the your lot my buy-ahead, are feel or than And moving I now In deals, of but so good a inventory's CSI, Al, next you complete this years, build done on Got to quarter business? about And that number. the due to miss the on just, the it say? Got it. fertility 'XX, to do fertility of are just questions. buy-in and fiscal we've The a Paragard did last Generate, to the a there seen

Al White

Fertility, On world the different still different different different fragmented and some around players It's Interestingly, all it's markets Yeah. players potential. areas I there's relatively around a sizable love kinds of in It's growing; world, that great space. in and the it's markets industry. got of fertility.

even Generate good a to the lot and there geographic if transactions kind look fertility of other nice in to that type that did we it's a you for core in I us. we a our softness probably So was lot a within find I I could right of grow held medical see. time. for products to think our market certainly We'll is September from softness similar If thing, those. grow could But came of would that that great evaluate of certainly a We follow, fit excess example, and that funny now, that a companies saw with see was franchise at one device We have out that pleasantly addition some opportunities Paragard, surprised and during expansion in that's of some October. device perspective, sure. in space, make medical rates. we how sense up

they're was Some because held forth. case them PARAGARD. to naturally, even decent much hold But up elective October, childbirth the procedure not so we of for a and products up okay tied had and as the that

at been those in and look the the IUD were think out Now, is soft. other unique. you I PARAGARD have market general also I at look products there, don't -- When

I but honest is that you're those staffing side forth that. contact those QX, problems restrictions we see IUDs see out it of to so fiscal the of the point certainly of device product, on sure on be med things, not a the challenges to Frankly, caught that few to in forth are and Paragard in there so really with medical individual products. on to are some you, still do our don't the side, out I'm other some things really how seeing continue think the struggles have because some lens and that we an down of staffing even with but side of to going up that I of causing fine and think So and there tune you're

with Now, little better, that the worse the think even clear, be It's it's but the market market. a just way, IUD of doing don't doing I maybe hit. by to any been in-line to has respect bit part or

Operator

you. Thank

the Bednar question Piper Jason of Next of from Sandler. line

Your line is open.

Jason Bednar

then the questions afternoon, good on I looking has One you one over Generate Life, to GLS you expect on tag, a history. me. for right been then, maybe MiSight strategic CSI Life is, And can some more prior your private pieces you that totally of question for largest this maybe bit with $X.XX big right at? the a did maybe talk faster-growing in past, this the what some checkered a of the about how taking assets made clearly the under now for come other Generate appreciate price we're transaction, effectively umbrella, transaction maybe to merits ownership? guess the little Hey, does also thanks here. you've asset and for operate the billion, but Al, -- starting on and equity

Al White

specifically of We very One fertility is things effective OB-GYN some a have that's that's large us things business products business. us we our large a of great the have within the and and one more size just to going the and business the it make of space. for for exciting OB

really know professionals So professionals, those we're we well. talking to those

Generate, as kind from known seeing the come and to of within you within more thing. not activities, when It's like direct your CooperSurgical, you're success lot that shop educational Company within is We're a One and direct-to-consumer space. a the have like fertility challenges the of the you're high-quality of a the DTC OB-GYN professional. of type space,

a If and of have the to and training didn't Generate our opportunity able Yeah, different so advantage was that long time. storage do cool a business, about in frankly, and When it communication, they strengths, you take do, came for of professionals combine That's we has able because something to with X. is it, really I've take blood size been that following with so look what's you business at story. just that When side just their of cord That's little that we a it be training extensive medical a do the this. up. not a forth, that. this there's things. been was bit knowledge, that to X+X

able is like who obstetricians you able those going talk clinicals value in fast is where clinics to the of to regenerative to you X,XXX about about the what's clinical that? forth. that, process and on today, on and speak and As forward so Who's studies fertility that over medicine it think to the to and of things

are. We

and talking the professionals have so training to and doing them forth. We in already there

really get come see to day end us of So opportunities for come win was come it years. up the can are Frankly, deals at when happy looking and available. see when think lot I've business. the I many, deals many value to happy we of I up up I this at add to was thing a the there. been this opportunity

something you I fit, it us. big deal It's important deal an big that's you a me, great for it to a as us. But find a for strategic growing when is that's look deal it's So at to mid-single-digits and and you something think some advantage those able that throw to the you're that's be especially to that going going bottom-line. enhance nice accretion at opportunities, to take you them, on of look growth,

Jason Bednar

would and adjusting question? into how payment overall to plan lobbing for a maybe go points where an and price for of strategy All representation as for update Maybe X today just right. very And the the Jeff's maybe reimbursement coding for the U.S? helpful. you're at and where the in on fit MiSight element MiSight. That's to you're have the at question, securing this in future Cooper earlier great that considering here VHCPCS Could back code MiSight did you with meeting us the level associated

Al White

Yeah. Yeah.

point no see to the how ever in nothing obviously. us So successful. be regarding state But We're made point could that, say news. in future the side of the in get time. we in this could on be all in, And reimbursement. be time be we anything working around could I -- mean, out. that at stuff, to right at We're But that that's I upside. assumptions interested that any good want upside at game, that in to that. there's able assumptions now, current have highly I some in is reasons for on you to material We'll factored nothing that give and and would hope things plays

Operator

open. Joanne next line the from your The of line is Wuensch question Citibank, of

Joanne Wuensch

physicians. which ones the good which appreciate process and you, integrating how practice? into shift for we side been Can trained, quantify trained, physicians been the process to their have others I the there it evening. Thank color of that, start many Is that MiSight. to training is have way a the sale on for other

Al White

do That's like how being charge and talking you how a to like, up myopia up and many get their I it so continued fit to you don't how few I that more specialist, a sell, Because of they're that once is back answering to kids back coming and through that, in over for now. dealing our the how over fit ECP are it myopia challenges, are have? downhill. trained working significant around about because as trained It's in, the we not it of on the certified, practice, they're to you ended if to go fully dealing are kids up going fully the lot about staffed so trying up a into have do have successful. that because specialists much with questions world, are it's with that the had get how right would There's to a a lot working about they're grow. so we these have excited now, do excited ECPs helping. speak, many have about staffing go it say with is with specialist more their they I have they it, don't -- how to it's the have sell too. many from and takeaway combined seeing and and dramatically management with forth, they you What and pass are me. ECP's it, Maybe on they're trained, ends you comes lot we onto again? myopia we number that Joanne, how which that them would key. It's easier of it. important a falls snowball Once patients management It's they're to probably falling fit, when you them seat, of and I lot to and again, volume, getting rolling, a it

Okay.

I'm it. child every sell I'm comfortable this this door. Now, for parents. going understand with about how got the to them talking do single it, understand it. child, process walks I to to do to I'm Every how down, because the in going children, I comfortable talk to fitting that I'm to I've

key. that up being So ends the

having selling much And someone right the lot more years a now, newer the the faster how about markets the so of we're successfully over learned a success, last because we're product. that from some couple we've lot of training going of actual into transition to to these

Joanne Wuensch

quantify I It's very really the boring EPS revenue and FX quarter, Can you a in can ask helpful. impact? question? first

Brian Andrews

not of double-digit and I'm a well it. the EPS of biggest goods going the goods impact -- as quantify all far worst first the it's were it's by to cost headwind in is other Relative for to Yeah, FX. to in quarters Obviously, also the worst first in year, hit in quarter. the quarter, cost the the

Al White

bad because you hit. flowing whammy months double Yeah. the revenues later immediate get the you in pound through X get And the

Brian Andrews

Yeah.

Operator

Thank you.

from Petrone of line question Next Jefferies. the of Anthony

Your open. line is

Anthony Petrone

the quite GLS. one going on attach be couple next rate on year had and and we've to stickiness MiSight going that On is you. Thank MiSight, calls into we've A heard high. where the

slowed a patients rate contact in they half effectiveness, will lens? data, already and so have traditional then in that, heard do be the this progression of mentioned cases, we've this follow-up Al, the implanted you and controlling and of the good myopia. in And you have almost be to ECPs a I'll that some by about Just on patients year, effectiveness progression and clinical on existing thinking GLS. just MiSight the the terms fitted Those two year expect some actually the seen attach first they've like have

Al White

the working product's marketplace. the in question no there's Certainly,

which - progression There Can who it go entirely, and the progression at you fairly imagine essentially kids a That's look at to a It's XX%, are instances you definitely us or retainage somewhere care reducing of have of But professionals happens is If that? rate, the fantastic. so. those myopia responders level. There's really who is that telling myopia average of number children amazing. that. if their high. you we non stops are kids really MiSight. rate, will, success On for eye high XX%. is XX% Their many still and on sales

R&D everybody. associated come the address are It's non in product. additional of staying specifically so in to right out kids now X with and right in - retainage. can this pretty products some addressing the with that something level yes, to some have responders try now, products them a But X like clinical those progress wear are of that it's some we going it to we and for we've the give whatever high work where rate. of have lens, see the myopia same lens, lot You application the world they kids, clinical call reason, a real data I we we seen mentioned last at in their on; in continue have the XX

Anthony Petrone

And products go you a that and then follow-up of when development, that on out play trials. a up? think opportunity when just drug these Like, you clinicals just Al -- for GLS, thousand on does shape Thanks. about the few how business, just opportunity just versus mentioned does I'm revenue commercial? that sort how

Al White

not are clinicals It's really interesting. X. Phase and there There's they're them out some -- enough of

is one think kidneys the example. an I on

I and some are the tissue clinical real is best side for cord work like there being of things stem cells X. medicine think use ' livers on There's Stage the the regenerative done to stem cells.

those about are the And legitimate always with that stem kids had are but cells potential of just years, use cord the best. for over There blood, there to going stem cord the different cells heard aware, tissue. clinicals out have everyone's don't we've the a those those, are that to between You when are success. we've showing on so lot

them to tissue had and more but pregnant, you children, what's bunch that. just a So low. pretty currently were this asking we said, to the were when are tissue? this asking " here, And cord rates When desire your medicine. went on. will, things, store people their survey about Then going who to The took we women you our what's clinical XXX%. going actually "Are diligence who there's interest of work, if There's side of the through that, store " regenerative and doing no is going "Hey, almost in work, did guarantees our with cord on is we definitely

of I bunch So a think education. it is

a try you you're If DTC going on time. have that a hard to basis, sell to

OB-GYN, If there, right? and of there's medical does be to things not you're There's this of talking all you kinds professionals oncologist, an sports to regenerative for. could people out and could this an be some have could This injury be use sort medicine professional.

of there there So than going blood. much cells saying you're promises doc, hey, with is clinical here. there's stem no associated on, is strong really, really and work more a so cord lot the But

there out. good some if But going it will. think storage the We'll case, increase plays some just to I there. on how there's you exciting So stuff opportunity see in

Operator

you. Thank

the line Robbie of of JPMorgan. Next question Marcus from

open. is line Your

Robbie Marcus

for Great. me. Thanks for questions. taking the X

you're Do And spent for it's guess believe product I marketing. incremental you guys, number more on have better of in XXXX? you of more And inclusive I new $XX the probably in XXXX? that First, million expecting XXXX be launches. what MiSight to

Al White

all we under myopia stopped on -- year-over-year get we're It management some Rob, of just and leverage. it'll able terms itself reason and little number, that investments. a will, for comparing going our the year. QX management in seeing No, year, don't, so when comes you this breaking decent we actually not we has a said We sizable a good that's you're had myopia in leverage be it and investments under part that, just to it. together, pretty place infrastructure -- pretty of to that to number whole thing we this put year. meaning a leverage start that decent out that's it's out in Having MiSight, bit it so together was it's separating because number sure, year-over-year, if just this We mushed

Robbie Marcus

follow-up. And maybe as it. Got a

thought growth capital business. CSI, overall allocation. Generate think if run I process accretive but overall to maybe you be it'd deal dilutive your the The business, to and is just diluted helpful on M&A the to through

you how on about what and return versus for thinking you're rates priorities maybe So at, kind forward? just cash growth you're you're looking about think invested Thanks. how metrics of capital, deals, thinking about how going

Al White

based be growth I deal history personally, just growth our clear. Yeah. X% I going areas and probably to to diluted see think that's X% their do it's based on that what talked we I drive but the rate, going, where about, the that rate believe be market is to certainly, consolidated to to do multiple and have not on we that Generate a higher. grower, that's

drive from that going We now and to be have ability am some forms sales our optimistic other also, where launching, we synergies some products out faster I have new then already of to forces and international we're about talking we're that there. expansion coming about there's growth. our right revenue growth rates

stuff sale at margin. especially on X% right that's and product now. ROIC cash this of side some close of nature than Strong annuity to growth very on return for sure, business, the the pretty so would bad, in we're a on cash because with bit the going kind and flow flow, we business, getting perspective? say, numbers we of ensure do that the and We're try not on very it's We intensive a to and at X% is be are that discounted models. right? high of look We that. Now, cash do because strong other That's that sense very day, our more curious, focus from makes still flow focus " acquisition about end that have and we forth. so what like we a to traditional "Okay. the that, little an stuff a Well, this of sufficient tendency on really and of

financial this I those So deals. drive one If And to strategic business, the strategic add meet at kind deals. about that would those metrics that acquisitions could talked doing we're look boxes. kind find thing past. this I've on other of the in that of in checks value that, going can the is then we all

Operator

you. Thank

from of question of Next Cleveland the Cottrell line Rob Research.

Your line is open.

Rob Cottrell

Hi, questions. taking for Thanks good my afternoon.

FX to any the fourth in change just either or first understand November, Just business? first in the given EPS. trends $X you've here $X.XX headwind guidance, seen and if the on in quarter wave change the But other wondering in Europe top-line any momentum in

Al White

No. a November good was month.

Rob Cottrell

or thinking FX a at into then, managing around than it's I in that talked all investment wanting year, Al, Clearly Okay. with about past, given right now change in your guess to more the next costs headwinds year? you've worse strategically strategy it pacing does been materially change has X-point not the past, headwinds. next

Al White

move long-term is what expansion. want can't doing at growth because bunch, margin growth Company business. to look gross makes basis, FX that good operating going a on play having invest around frustrates Having held I basis, margins a upper to me. it we're we that, a operating jerk bad nice We're that's business. mid a whole going and of looking would gross our when as-reported shows a margins an the years where at running I'm to true. long-term and how with We I currency on margins we're and and business said be single-digit Brian years, FX be talk down still are not And as frustrates said sense we'd then game just business constant that sustainable and No, long-term XX in to go me. currency And up FX. getting those we're margins year-over-year, drive to the year-over-year growth. and That's so not be going X XX%, is to if a positive run we're about the not. going guidance then

Rob Cottrell

Great. the Thanks for details.

Operator

Pasquale Next of Guggenheim. question from the line Chris of

is open. line Your

Chris Pasquale

you're I would be cryo the how think that from driving get expansion. on And follow we for particular, when from at you Al, today. talking Thanks. should a something about above business the up mid-single-digits I preservation. in you patients might look opportunity just factor to geographic wanted facility about Generate your the comment about that assets think to if the the growth like to distance

you lot going to about building historically, invest markets, So and think business? with new new facilities get this CSI in storage had CapEx it. has are of requirements a should to have into of CapEx to associated the we how not Because

Al White

is cheap. low this The are Yes. The in so and forth CapEx storage really business. tanks

the at along kind end lot a of the high clinic. is go gets done you systems, would But the expansion itself When that's actual because of to control really have one So have the all quality that else to not fertility look at of the systems, A with highlight. you that let's high. everything with goes that really international day, security I stuff. fertility CapEx opportunities,

get the where them, And teaming quick You're directly you're Because Unlike lot have clinics CapEx. eggs storage fertility It's up low you're It's in do significant CapEx. the about their we'll of don't sperm, fertility donor business. that a fertility situation thing, with working cash of eggs with clinics. operations, but flow -- a really itself just using aligns activity you transaction. and clinic. so permanent that that's sperm, you're a you of with donor talking high fairly the obviously stores traditional and usually when type like, that and

Chris Pasquale

business? give Can saw too. And million another come in year. CapEx rate this is you about then, it thinking be $XXX down? Brian, that XXXX? about will here the for we core existing drive go to here, forward, Cooper down should How or CapEx And business helpful. potential the I a run at-bat XXXs do the That's past have by more of low requirements Okay. this you now good lower going We

Brian Andrews

is years. which increase the lead in that. milestones, question. It's million getting around than and it. know, of CapEx longer on Rather appreciate do and free Thanks, cash it we'll target. based we'll demand, given I've moving flow we've into whatever like CapEx projects mentioned is, level nice Chris. of that I getting as detail, XXXX, a is which of over cover timing know needs you always the 'XX. things over capacity And $XXX I time,

be operating again free strong will flow will So flow cash and be in therefore 'XX. cash strong

Operator

further Al are to I there Please over White. call no the questions to like this continue. time. And would at turn

Al White

announce you, continuing obviously here we're taking the March, you, appreciate Thank we Well, positive the to Operator. Great. next happy and speak thank time to everyone. earnings where our forward to everyone a do about look when Thank the pretty as numbers in Fantastic. and call you we I and early call. produce for we're to stand business. We you.

Operator

Thank you. everyone that today's And for you participating. Thank concludes conference.

may You all now disconnect.

The Cooper Companies, Inc. (COO) 3 Dec 212021 Q4 Earnings call transcript