Summary
Becton, Dickinson and Company (BD) filed an 8-K on February 6, 2018, to report its financial results for the first fiscal quarter ending December 31, 2017. The filing primarily furnished a press release detailing these results, which included several non-GAAP financial measures designed to provide investors with a clearer view of underlying operational performance. These non-GAAP measures adjust for factors such as currency fluctuations, the integration of the C.R. Bard acquisition, the impact of Hurricane Maria, changes in business models, and other one-time items impacting comparability. Investors should note that BD is providing these adjusted metrics to offer insights beyond standard GAAP reporting. These include currency-neutral revenue growth, comparable revenue growth (which pro-forma accounts for the Bard acquisition and other adjustments), and adjusted earnings per share (EPS). Management utilizes these non-GAAP measures internally for performance evaluation and budget planning, believing they better reflect the company's core operations and facilitate period-to-period comparisons. While valuable for understanding trends, investors are reminded to consider these non-GAAP figures alongside GAAP results, as excluded items can materially impact reported net income and EPS.
Key Highlights
- 1BD reported Q1 fiscal 2018 results via a press release furnished with the 8-K filing.
- 2The company is emphasizing non-GAAP financial measures to provide a clearer view of underlying performance.
- 3Key non-GAAP metrics include currency-neutral revenue growth and comparable revenue growth.
- 4Comparable revenue growth for fiscal year 2018 is presented with adjustments for the C.R. Bard acquisition, product line movements, divestitures, royalty reclassifications, and intercompany revenues.
- 5Additional adjustments to comparable revenue growth account for Hurricane Maria's impact and a business model change in the dispensing business.
- 6Adjusted Earnings Per Share (EPS) is provided, excluding items such as purchase accounting, integration costs, financing costs, hurricane recovery, debt extinguishment, litigation reserve reversal, share issuance for acquisition funding, and U.S. tax legislation impacts.
- 7Management uses these non-GAAP measures for performance evaluation, budget planning, and investor communication, believing they enhance comparability and insight into core operations.