Summary
Becton, Dickinson and Company (BDX) reported its third-quarter and nine-month results for the period ending June 30, 2015. The most significant event for the quarter was the completion of the acquisition of CareFusion Corporation on March 17, 2015, for approximately $12.5 billion. This acquisition substantially reshaped the company's financial statements, leading to a significant increase in total assets and liabilities, particularly in intangible assets and goodwill. Financially, the third quarter saw a substantial increase in revenue, driven primarily by the inclusion of CareFusion's results. However, net income and earnings per share were significantly lower compared to the prior year, largely due to the impact of "specified items" related to the acquisition, including transaction, integration, and financing costs. These items, along with purchase accounting adjustments, masked the underlying operational performance. The company also saw a substantial increase in long-term debt to finance the acquisition, leading to higher interest expenses. Investors should closely examine the "specified items" and pro forma information to understand the operational performance before these significant one-time costs.
Financial Highlights
51 data points| Revenue | $3.12B |
| Cost of Revenue | $1.95B |
| Gross Profit | $1.17B |
| R&D Expenses | $178.00M |
| SG&A Expenses | $751.00M |
| Operating Expenses | $2.98B |
| Operating Income | $137.00M |
| Interest Expense | $105.00M |
| Net Income | $62.00M |
| EPS (Basic) | $0.30 |
| EPS (Diluted) | $0.29 |
| Shares Outstanding (Basic) | 210.18M |
| Shares Outstanding (Diluted) | 214.93M |
Key Highlights
- 1Acquisition of CareFusion completed on March 17, 2015, for approximately $12.5 billion, significantly impacting the balance sheet with increased assets, liabilities, goodwill, and intangible assets.
- 2Third-quarter revenues surged by 44.6% to $3.120 billion, largely due to the inclusion of CareFusion's sales, while international sales also showed growth.
- 3Net income for the quarter decreased significantly to $62 million from $326 million in the prior year, primarily driven by acquisition-related costs and purchase accounting adjustments.
- 4Diluted EPS dropped to $0.29 from $1.65 in the prior year, heavily influenced by the "specified items" and foreign currency impacts.
- 5Total assets more than doubled from $12.4 billion to $27.1 billion, largely attributable to the CareFusion acquisition.
- 6Long-term debt increased substantially from $3.8 billion to $11.4 billion, reflecting the financing of the CareFusion acquisition.
- 7Cash flow from operations decreased to $1.052 billion for the first nine months of 2015 from $1.207 billion in the prior year, influenced by changes in operating assets and liabilities and acquisition-related outflows.