01—Abstract
Summary
Summary of the 10-K filed November 27, 2013. Cited figures are marked; the original filing is the authoritative source.
Becton Dickinson & Co. (BDX) reported a solid fiscal year 2013, with revenues reaching $8.1 billiona, a 4.5% increase driven by volume growth and strategic acquisitions.
The company operates across three key segments: Medical, Diagnostics, and Biosciences, all contributing to revenue growth, albeit with some regional variations and challenges, particularly in the U.S. Diagnostics segment due to weaker demand in its Women's Health and Cancer platform. BD continued its commitment to innovation and growth through targeted acquisitions like Safety Syringes, Inc. and Cato Software Solutions, and strategic divestitures such as the sale of its Discovery Labware unit.
The company also maintained a strong focus on returning value to shareholders through dividends and share repurchases, alongside strategic investments in emerging markets and R&D. Despite facing headwinds from global economic conditions, healthcare reform, and a significant legal settlement charge in the fourth quarter, BD demonstrated resilience and a commitment to its strategic objectives.
02—Key points
Key Highlights
- BDX reported total revenues of $8.1 billion for fiscal year 2013, an increase of 4.5% year-over-year, driven by volume growth and acquisitions.
- The company successfully integrated two acquisitions in fiscal year 2013: Safety Syringes, Inc. for $124 million and Cato Software Solutions for $23 million.
- BD completed the divestiture of its BD Biosciences — Discovery Labware unit for approximately $740 million, generating a significant gain.
- Operating income was $1.254 billion, though this was impacted by a $341 million pre-tax charge related to an unfavorable jury verdict in a lawsuit with Retractable Technologies, Inc.
- The company returned $450 million to shareholders through share repurchases and $386 million through dividends in fiscal year 2013.
- International revenues grew 6.3% to $4.7 billion, driven by emerging markets and strong sales of safety-engineered products.
- Research and development expenses remained a priority, totaling $494 million for fiscal year 2013.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2013, Becton Dickinson & Co kept $0.16.
- Revenue$8.05B100.0%
- Cost of revenue−$3.88B48.2%
- Gross profit$4.17B51.8%
- Operating costs−$2.92B36.2%
- Operating income$1.25B15.6%
- Interest, other & tax$39.0M0.5%
- Net income$1.29B16.1%
Where FY2013 revenue went
$8.05B- Cost of revenue: $3.88B, 48% of revenue
- SG&A: $2.42B, 30% of revenue
- Operating income: $1.25B, 16% of revenue
- R&D: $494.0M, 6.1% of revenue
Kept 16% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2013filed November 27, 2013Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $8.05B$7.71B | +4.5% |
| Cost of Revenue | $3.88B$3.75B | +3.4% |
| Gross Profit | $4.17B$3.95B | +5.5% |
| R&D Expenses | $494.00M$472.00M | +4.7% |
| SG&A Expenses | $2.42B$1.92B | +25.9% |
| Operating Expenses | $6.80B$6.15B | +10.6% |
| Operating Income | $1.25B$1.56B | −19.5% |
| Interest Expense | $138.00M$135.00M | +2.2% |
| Net Income | $1.29B$1.17B | +10.5% |
| EPS (Basic) | $6.63$5.69 | +16.5% |
| EPS (Diluted) | $6.49$5.59 | +16.1% |
| Shares Outstanding (Basic) | 195.16M205.46M | −5.0% |
| Shares Outstanding (Diluted) | 199.19M209.18M | −4.8% |
05—Questions
Frequently Asked Questions
What were the key drivers of BDX's revenue growth in fiscal year 2013?
BDX's revenue growth in fiscal year 2013 was primarily driven by an estimated 5.5% increase in volume, including contributions from acquisitions (0.8%), partially offset by unfavorable foreign exchange translation (0.9%) and price impacts (0.1%). Growth was solid across the Medical and Diagnostics segments, supported by new product sales, acquisitions, safety-engineered products, and geographic expansion.
What significant legal or litigation matters impacted BDX's financial results in fiscal year 2013?
BDX recorded a significant pre-tax charge of $341 million in the fourth quarter of fiscal year 2013 related to an unfavorable jury verdict in a lawsuit filed by Retractable Technologies, Inc. (RTI). Additionally, the company recorded a $22 million pre-tax charge for a pending litigation settlement related to indirect purchaser antitrust class action cases.
How did the company manage its capital and shareholder returns in fiscal year 2013?
BDX generated strong cash flow from operations of $1.7 billion. The company repurchased approximately $450 million of its common stock and paid $386 million in dividends, demonstrating a commitment to shareholder returns. They also maintained a robust cash position of $2.6 billion in cash and short-term investments at the end of the fiscal year.
What impact did healthcare reform, such as the PPACA, have on BDX's results?
The Patient Protection and Affordable Care Act (PPACA) included a 2.3% excise tax on U.S. sales of certain medical devices. For fiscal year 2013, BDX recorded a pre-tax charge of $40 million related to this tax, impacting operations for three quarters of the year. The company also noted that PPACA could potentially reduce demand for its products and increase pricing pressure due to impacts on hospitals and clinical laboratories.
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