coo-20240430

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________________________________________________

FORM 10-Q

_____________________________________________________________


☒			Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended April 30, 2024


☐			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File Number 1-8597

_____________________________________________________________

The Cooper Companies, Inc.

(Exact name of registrant as specified in its charter)

_____________________________________________________________


Delaware			94-2657368
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

6101 Bollinger Canyon Road, Suite 500,

San Ramon, California 94583

(Address of principal executive offices) (Zip Code)

(925) 460-3600

(Registrant’s telephone number, including area code)

_____________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock, $0.10 par value

COO

Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.): Yes ☐ No ☒

On May 24, 2024, 199,119,880 shares of Common Stock, $0.10 par value, were outstanding.

INDEX


		Page No.
PART I.	FINANCIAL INFORMATION

Item 1.	Unaudited Financial Statements

	Consolidated Condensed Statements of Income and Comprehensive Income	3

	Consolidated Condensed Balance Sheets	4

	Consolidated Condensed Statements of Stockholders' Equity	5

	Consolidated Condensed Statements of Cash Flows	7

	Notes to Consolidated Condensed Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15

Item 3.	Quantitative and Qualitative Disclosure About Market Risk	27

Item 4.	Controls and Procedures	27

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	28

Item 1A.	Risk Factors	28

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28

Item 3.	Defaults Upon Senior Securities	28

Item 4.	Mine Safety Disclosures	28

Item 5.	Other Information	28

Item 6.	Exhibits	29

Signatures		30

PART I. FINANCIAL INFORMATION

Item 1. Unaudited Financial Statements

THE COOPER COMPANIES, INC. AND SUBSIDIARIES

Consolidated Condensed Statements of Income and Comprehensive Income

Periods Ended April 30,

(In millions, except for earnings per share)

(Unaudited)


	Three Months				Six Months
	2024		2023		2024		2023
Net sales	$	942.6	$	877.4	$	1,874.2	$	1,735.9
Cost of sales	311.4		294.5		619.2		594.5
Gross profit	631.2		582.9		1,255.0		1,141.4
Selling, general and administrative expense	380.3		407.5		761.2		738.4
Research and development expense	38.9		32.6		78.4		64.2
Amortization of intangibles	50.3		46.5		100.6		93.0


Operating income	161.7		96.3		314.8		245.8
Interest expense	28.9		26.1		58.8		52.2


Other expense, net	2.8		4.6		6.0		5.9
Income before income taxes	130.0		65.6		250.0		187.7
Provision for income taxes (Note 6)	41.1		25.8		79.9		63.3
Net income	$	88.9	$	39.8	$	170.1	$	124.4


Earnings per share (Note 7)*:
Basic	$	0.45	$	0.20	$	0.86	$	0.63
Diluted	$	0.44	$	0.20	$	0.85	$	0.63
Number of shares used to compute earnings per share*:
Basic	198.9		197.9		198.6		197.7
Diluted	200.5		199.2		200.2		198.9
Other comprehensive income, net of tax:
Cash flow hedges	$	21.4	$	(5.5)	$	(6.6)	$	(26.5)
Foreign currency translation adjustment	(22.0)		(14.5)		37.8		69.5




Comprehensive income	$	88.3	$	19.8	$	201.3	$	167.4

*All periods presented have been adjusted to reflect the four-for-one stock split effected on February 16, 2024. Refer to Note 1. General for further information.

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

THE COOPER COMPANIES, INC. AND SUBSIDIARIES

Consolidated Condensed Balance Sheets

(In millions, unaudited)


	April 30, 2024		October 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	112.4	$	120.8
Trade accounts receivable, net of allowance for credit losses of $39.9 at April 30, 2024, and $31.3 at October 31, 2023	688.7		609.7
Inventories (Note 3)	775.4		735.6
Prepaid expense and other current assets	282.5		238.8

Total current assets	1,859.0		1,704.9
Property, plant and equipment, net	1,709.3		1,632.6
Goodwill	3,761.3		3,624.5
Other intangibles, net (Note 4)	1,796.9		1,710.3
Deferred tax assets	2,283.7		2,349.5
Other assets	637.2		637.1
Total assets	$	12,047.4	$	11,658.9
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt (Note 5)	$	41.7	$	45.4
Accounts payable	230.7		261.9
Employee compensation and benefits	144.7		174.8
Deferred revenue	121.7		123.6
Other current liabilities	413.7		363.3

Total current liabilities	952.5		969.0
Long-term debt (Note 5)	2,671.3		2,523.8
Deferred tax liabilities	94.2		101.5
Long-term tax payable	59.0		90.2
Deferred revenue	188.6		184.2
Other liabilities	277.9		239.2
Total liabilities	$	4,243.5	$	4,107.9
Contingencies (Note 10)
Stockholders’ equity*:
Preferred stock, $0.10 par value, 1.0 shares authorized, zero shares issued or outstanding	—		—
Common stock, $0.10 par value, 480.0 shares authorized, 216.8 issued and 199.1 outstanding at April 30, 2024, and 215.8 issued and 198.1 outstanding at October 31, 2023	21.7		21.6
Additional paid-in capital	1,866.7		1,817.2
Accumulated other comprehensive loss	(422.6)		(453.8)
Retained earnings	7,046.2		6,876.1
Treasury stock at cost: 17.7 shares at April 30, 2024, and 17.7 shares at October 31, 2023	(708.3)		(710.3)
Total Cooper stockholders’ equity	7,803.7		7,550.8
Noncontrolling interests	0.2		0.2
Stockholders’ equity (Note 9)	7,803.9		7,551.0
Total liabilities and stockholders’ equity	$	12,047.4	$	11,658.9

*All periods presented have been adjusted to reflect the four-for-one stock split effected on February 16, 2024. Refer to Note 1. General for further information.

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

THE COOPER COMPANIES, INC. AND SUBSIDIARIES

Consolidated Condensed Statements of Stockholders' Equity

(In millions, unaudited)


	Common Shares			Treasury Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Treasury Stock		Noncontrolling Interests		Total Stockholders' Equity
	Shares	Amount		Shares	Amount
Balance at November 1, 2022*	197.4	$	19.7	17.8	$	1.8	$	1,749.4	$	(466.8)	$	6,584.9	$	(714.5)	$	0.2	$	7,174.7
Net income	—	—		—	—		—		—		84.6		—		—		84.6
Other comprehensive income, net of tax	—	—		—	—		—		63.0		—		—		—		63.0
Issuance of common stock for stock plans, net and employee stock purchase plan	0.4	—		—	—		(2.5)		—		—		1.2		—		(1.3)
Dividends on common stock ($0.03 per share)	—	—		—	—		—		—		(1.5)		—		—		(1.5)
Share-based compensation expense	—	—		—	—		16.2		—		—		—		—		16.2

Balance at January 31, 2023*	197.8	$	19.7	17.8	$	1.8	$	1,763.1	$	(403.8)	$	6,668.0	$	(713.3)	$	0.2	$	7,335.7
Net income	—	—		—	—		—		—		39.8		—		—		39.8
Other comprehensive income (loss), net of tax	—	—		—	—		—		(20.0)		—		—		—		(20.0)
Issuance of common stock for stock plans, net and employee stock purchase plan	0.2	0.1		—	—		6.7		—		—		1.0		—		7.8
Share-based compensation expense	—	—		—	—		14.7		—		—		—		—		14.7

Balance at April 30, 2023*	198.0	$	19.8	17.8	$	1.8	$	1,784.5	$	(423.8)	$	6,707.8	$	(712.3)	$	0.2	$	7,378.0

*All periods presented have been adjusted to reflect the four-for-one stock split effected on February 16, 2024. Refer to Note 1. General for further information.

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

THE COOPER COMPANIES, INC. AND SUBSIDIARIES

Consolidated Condensed Statements of Stockholders' Equity

(In millions, unaudited)

Common Shares

Treasury Stock

Additional Paid-In Capital

Accumulated
Other
Comprehensive
Loss

Retained Earnings

Treasury Stock

Noncontrolling Interests

Total
Stockholders'
Equity

Amount

Balance at November 1, 2023*

198.1

19.8

17.7

1.8

1,817.2

(

SEC Form 10-Q filed by The Cooper Companies Inc.