Business Context and Reporting Period
Company: Becton, Dickinson and Company (BD)
Filing Type: Form 8-K (Current Report)
Date of Report: August 6, 2019
Reporting Period: Third fiscal quarter ended June 30, 2019
This filing announces the issuance of a press release (Exhibit 99.1) detailing financial results for the third quarter of fiscal year 2019. The report focuses on the presentation of non-GAAP financial measures to assist investors in evaluating underlying performance following the acquisition of C.R. Bard, Inc.
Key Financial Metrics
Note: This 8-K filing serves as a notification of the press release and defines non-GAAP methodologies. It does not contain specific numerical values for revenue, profit, cash flow, or debt.
- Revenue Metrics: The company reports Currency-Neutral Revenue Growth and Comparable Revenue Growth. Comparable revenue adjusts for the C.R. Bard acquisition, divestitures, customer rebates, royalty reclassifications, and intercompany revenues.
- Earnings Metrics: The company reports Adjusted Earnings Per Share (EPS). Adjustments exclude purchase accounting, acquisition-related costs, restructuring, hurricane recovery, debt extinguishment impacts, litigation/recall charges, asset impairments, and Bard acquisition financing impacts.
- Debt and Liquidity: Specific debt balances, liquidity positions, and cash flow figures are not provided in this text.
Material Changes and Non-GAAP Adjustments
The filing details significant adjustments made to financial metrics to ensure comparability with prior periods, primarily driven by the C.R. Bard acquisition:
- Acquisition Impact: Revenue and EPS figures are adjusted to include C.R. Bard results in the prior year period for "comparable" analysis.
- One-Time Items: Adjusted EPS excludes costs related to integration, restructuring, hurricane recovery, and specific litigation or recall charges.
- Currency Effects: Growth rates are presented on a currency-neutral basis to eliminate fluctuations from foreign currency translation.
Guidance, Outlook, and Management Commentary
Management Commentary: Management utilizes these non-GAAP measures for internal budget planning and to evaluate underlying operational performance against peer companies. They assert that these measures provide a reasonable view of performance before the effects of items outside ordinary operations.
Guidance: The text mentions that the company presents estimated revenue growth and estimated Adjusted EPS for the full fiscal year 2019, including anticipated currency impacts. However, specific numerical guidance targets are not included in this filing text.
Risks and Limitations: Management cautions that non-GAAP results should not be considered in isolation or as a substitute for GAAP results. They note that excluded items may materially impact net income and cash flows. Additionally, the "comparable" revenue figures are for illustrative purposes only and do not guarantee future results or reflect what would have occurred if the Bard acquisition had been consummated at the start of the 2018 fiscal year.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) for specific numerical values regarding Q3 2019 revenue, net income, and EPS.
- Verify the reconciliation between GAAP and non-GAAP measures to understand the magnitude of excluded items (e.g., restructuring costs, acquisition impacts).
- Confirm the specific full-year 2019 revenue and Adjusted EPS guidance estimates mentioned in the press release.
- Assess the impact of foreign currency translation on reported growth rates versus currency-neutral growth.