Market Newsdesk

Dallas, Texas, March 06, 2025 (GLOBE NEWSWIRE) — Kronos Worldwide, Inc. (NYSE:KRO) today reported a net loss of $13.2 million, or $.12 per share, in the fourth quarter of 2024 compared to a net loss of $5.3 million, or $.05 per share, in the fourth quarter of 2023. For the full year of 2024, Kronos Worldwide reported net income of $86.2 million, or $.75 per share, compared to a net loss of $49.1 million, or $.43 per share, for the full year of 2023. Net income decreased in the fourth quarter 2024 compared to the fourth quarter of 2023 primarily due to increases in the Company’s income tax expense resulting from (i) final tax regulations on the treatment of certain currency translation gains and losses, which resulted in a non-cash deferred income tax expense of $16.5 million ($.14 per share) and (ii) the recognition of a deferred income tax asset valuation allowance related to the Company’s Belgian net deferred tax assets, which resulted in a non-cash deferred income tax expense of $8.2 million ($.07 per share). Income before income taxes increased $24.9 million in the fourth quarter of 2024 as compared to the fourth quarter of 2023 due to higher income from operations as a result of the effects of higher sales and production volumes and lower production costs (primarily energy and raw materials). Net income increased in the full year of 2024 compared to full year of 2023 due to higher income from operations as a result of the effects of higher sales and production volumes and lower production costs (primarily energy and raw materials), partially offset by lower average TiO₂ selling prices. Comparability of our results was also impacted by the effects of changes in currency exchange rates. Our results of operations for the full year of 2023 were significantly impacted by reduced demand for TiO₂ in all major markets and unabsorbed fixed production as a result of production curtailments in response to the sharp decline in demand. Demand improved in all of our major markets in 2024 compared to 2023 and we increased production volumes accordingly, contributing to our improved profitability. As previously reported, effective July 16, 2024, we acquired the 50% joint venture interest in Louisiana Pigment Company, L.P. (“LPC”) previously held by Venator Investments, Ltd. Prior to the acquisition, we held a 50% joint venture interest in LPC. Following the acquisition, LPC became a wholly-owned subsidiary of ours. We accounted for the acquisition as a business combination. The results of operations of LPC have been included in our results of operations beginning as of the acquisition date. Net income for the full year 2024 includes the recognition of a non-cash gain of $64.5 million ($50.9 million, or $.44 per share, net of income tax expense) associated with the remeasurement of our investment in LPC as a result of the acquisition.

Net sales of $423.1 million in the fourth quarter of 2024 were $23.0 million, or 6%, higher than in the fourth quarter of 2023. Net sales of $1.9 billion for the full year of 2024 were $220.6 million, or 13%, higher than the full year of 2023. Net sales increased in the fourth quarter of 2024 compared to the fourth quarter of 2023 primarily due to the effects of higher sales volumes due to strengthening demand for TiO₂ in all our major markets and higher average TiO₂ selling prices. Net sales increased for the full year of 2024 compared to the same period in 2023 primarily due to the net effects of higher sales volumes and lower average TiO₂ selling prices. TiO₂ sales volumes were 4% higher in the fourth quarter of 2024 as compared to the fourth quarter of 2023 and 20% higher in the full year of 2024 as compared to the full year of 2023. Sales volumes resulting from the LPC acquisition did not materially impact prior period comparisons. Average TiO₂ selling prices were 2% higher in the fourth quarter of 2024 (primarily from our European and export markets) as compared to the fourth quarter of 2023 but 5% lower in the full year of 2024 as compared to the full year of 2023. For the full year, changes in product sales mix negatively affected net sales, primarily due to changes in product sales mix in export markets in 2024 as compared to 2023. Changes in currency exchange rates had a nominal effect on net sales in the fourth quarter of 2024 as compared to the fourth quarter of 2023; however, changes in currency exchange rates (primarily the euro) increased our net sales by approximately $5 million in the full year of 2024 as compared to the full year of 2023. The table at the end of this press release shows how each of these items impacted net sales.

Our TiO₂ segment profit (see description of non-GAAP information below) in the fourth quarter of 2024 was $33.1 million as compared to a segment loss of $1.3 million in the fourth quarter of 2023. For the full year of 2024, our segment profit was $141.0 million as compared to a segment loss of $39.8 million in the full year of 2023. Segment profit increased in the fourth quarter of 2024 compared to the fourth quarter of 2023 primarily due to higher income from operations due to an increase in sales and production volumes, lower production costs (primarily energy and raw materials) and higher average TiO₂ selling prices. Segment profit increased for the full year of 2024 compared to the same period in 2023 primarily due to higher income from operations due to the net effects of an increase in sales and production volumes, lower production costs (primarily energy and raw materials) and lower average TiO₂ selling prices. Due to improved overall demand and a more favorable production cost environment, we increased our production rates to 96% of practical capacity utilization in the full year of 2024 (87%, 99%, 92% and 97% in the first, second, third and fourth quarters of 2024, respectively) compared to 72% in the full year of 2023 (76%, 64%, 73% and 75% in the first, second, third and fourth quarters of 2023, respectively). As a result, our unabsorbed fixed production costs in the full year of 2024 were $12 million (incurred in the first quarter) compared to $96 million in the full year of 2023. Sales and production volumes resulting from the LPC acquisition did not materially impact comparisons to the prior periods. During the third quarter of 2024, we completed the closure of our sulfate process line in Canada and our segment profit for the full year of 2024 includes non-cash charges of approximately $14 million related to accelerated depreciation and a charge of approximately $2 million related to workforce reductions. Our selling, general and administrative expense for the full year of 2024 includes $2.2 million of transaction costs incurred in connection with the LPC acquisition. Fluctuations in currency exchange rates (primarily the euro) increased our segment profit by approximately $10 million in the full year of 2024 as compared to 2023. Fluctuations in currency exchange rates had a nominal effect on segment profit in the fourth quarter of 2024 as compared to the fourth quarter of 2023.

Our net income (loss) before interest expense, income taxes and depreciation and amortization expense (EBITDA) (see description of non-GAAP information below) in the fourth quarter of 2024 was $41.7 million compared to EBITDA of $6.9 million in the fourth quarter of 2023. For the full year of 2024, our EBITDA was $252.9 million compared to EBITDA of ($7.2) million in the full year of 2023. EBITDA comparisons for the full year of 2024 were impacted by the $64.5 million non-cash gain associated with the remeasurement of our investment in LPC discussed above.

Interest expense for the full year of 2024 includes a charge of $1.5 million ($1.1 million, or $.01 per share, net of income tax benefit) for the write-off of deferred financing costs.

Our loss from operations in the full year of 2023 includes an insurance settlement gain related to a 2020 business interruption insurance claim of $2.5 million ($2.0 million, or $.02 per share, net of income tax expense), a fixed asset impairment related to the write-off of certain costs resulting from a capital project termination of $3.8 million ($2.8 million, or $.02 per share, net of income tax expense) and restructuring costs related to workforce reductions of $5.8 million ($4.3 million, or $.04 per share, net of income tax expense). Other components of net periodic pension and OPEB cost in 2023 includes a $1.3 million settlement loss incurred in the second quarter related to the termination and buy-out of our UK pension plan ($.9 million, or $.01 per share, net of income tax expense).

The statements in this release relating to matters that are not historical facts are forward-looking statements that represent management’s beliefs and assumptions based on currently available information. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we cannot give any assurances that these expectations will prove to be correct. Such statements by their nature involve substantial risks and uncertainties that could significantly impact expected results, and actual future results could differ materially from those described in such forward-looking statements. While it is not possible to identify all factors, we continue to face many risks and uncertainties. The factors that could cause actual future results to differ materially include, but are not limited to, the following:

• Future supply and demand for our products;
• Our ability to realize expected cost savings from strategic and operational initiatives;
• Our ability to integrate acquisitions, including LPC, into our operations and realize expected synergies and innovations;
• The extent of the dependence of certain of our businesses on certain market sectors;
• The cyclicality of our business;
• Customer and producer inventory levels;
• Unexpected or earlier-than-expected industry capacity expansion;
• Changes in raw material and other operating costs (such as energy and ore costs);
• Changes in the availability of raw materials (such as ore);
• General global economic and political conditions that harm the worldwide economy, disrupt our supply chain, increase material and energy costs or reduce demand or perceived demand for our TiO₂ products or impair our ability to operate our facilities (including changes in the level of gross domestic product in various regions of the world, tariffs, natural disasters, terrorist acts, global conflicts and public health crises);
• Operating interruptions (including, but not limited to, labor disputes, leaks, natural disasters, fires, explosions, unscheduled or unplanned downtime, transportation interruptions, certain regional and world events or economic conditions and public health crises);
• Technology related disruptions (including, but not limited to, cyber-attacks; software implementation, upgrades or improvements; technology processing failures; or other events) related to our technology infrastructure that could impact our ability to continue operations, or at key vendors which could impact our supply chain, or at key customers which could impact their operations and cause them to curtail or pause orders;
• Competitive products and substitute products;
• Competition from Chinese suppliers with less stringent regulatory and environmental compliance requirements;
• Customer and competitor strategies;
• Potential consolidation of our competitors;
• Potential consolidation of our customers;
• The impact of pricing and production decisions;
• Competitive technology positions;
• Potential difficulties in upgrading or implementing accounting and manufacturing software systems;
• The introduction of new, or changes in existing, tariffs, trade barriers or trade disputes (including potential new tariffs imposed by the U.S. federal government on imports from Canada, where we have a manufacturing facility);
• Fluctuations in currency exchange rates (such as changes in the exchange rate between the U.S. dollar and each of the euro, the Norwegian krone and the Canadian dollar and between the euro and the Norwegian krone), or possible disruptions to our business resulting from uncertainties associated with the euro or other currencies;
• Our ability to renew or refinance credit facilities or other debt instruments in the future;
• Changes in interest rates;
• Our ability to comply with covenants contained in our revolving bank credit facility;
• Our ability to maintain sufficient liquidity;
• The ultimate outcome of income tax audits, tax settlement initiatives or other tax matters, including future tax reform;
• Our ability to utilize income tax attributes, the benefits of which may or may not have been recognized under the more-likely-than-not recognition criteria;
• Environmental matters (such as those requiring compliance with emission and discharge standards for existing and new facilities);
• Government laws and regulations and possible changes therein including new environmental, health and safety, sustainability or other regulations (such as those seeking to limit or classify TiO₂ or its use); and
• Pending or possible future litigation or other actions.

Should one or more of these risks materialize (or the consequences of such a development worsen), or should the underlying assumptions prove incorrect, actual results could differ materially from those forecasted or expected. The Company disclaims any intention or obligation to update or revise any forward-looking statement whether as a result of changes in information, future events or otherwise.

In an effort to provide investors with additional information regarding the Company’s results of operations as determined by accounting principles generally accepted in the United States of America (GAAP), the Company has disclosed certain non-GAAP information which the Company believes provides useful information to investors:

• The Company discloses segment profit, which is used by the Company’s management to assess the performance of the Company’s TiO₂ operations. The Company believes disclosure of segment profit provides useful information to investors because it allows investors to analyze the performance of the Company’s TiO₂ operations in the same way that the Company’s management assesses performance. The Company defines segment profit as net income before income tax expense and certain general corporate items. These general corporate items include corporate expense and the components of other income (expense) except for trade interest income; and
• The Company discloses EBITDA, which is also used by the Company’s management to assess the performance of the Company’s TiO₂ operations. The Company believes disclosure of EBITDA provides useful information to investors because it allows investors to analyze the performance of the Company’s TiO₂ operations in the same way that the Company’s management assesses performance. The Company defines EBITDA as net income before interest expense, income taxes and depreciation and amortization expense.

Kronos Worldwide, Inc. is a major international producer of titanium dioxide products.

Investor Relations Contact:        
Bryan A. Hanley
Senior Vice President & Treasurer
Tel: (972) 233-1700

KRONOS WORLDWIDE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share and metric ton data)

		Three months ended						Year ended
		December 31,						December 31,
		2023			2024			2023			2024
		(unaudited)
Net sales		$	400.1		$	423.1		$	1,666.5		$	1,887.1
Cost of sales			344.5			336.7			1,501.6			1,527.8
Gross margin			55.6			86.4			164.9			359.3
Selling, general and administrative expense			54.3			51.2			211.2			225.6
Other operating income (expense):
Currency transactions, net			(3.2)			(3.3)			1.4			1.6
Other income (expense), net			(.2)			.6			3.3			2.4
Corporate expense			(3.6)			(3.9)			(14.4)			(14.8)
Income (loss) from operations			(5.7)			28.6			(56.0)			122.9
Other income (expense):
Gain on remeasurement of investment in TiO2 manufacturing joint venture			–			–			–			64.5
Trade interest income			.8			.6			1.8			3.3
Other interest and dividend income			1.1			.4			5.1			2.2
Marketable equity securities			.3			(1.4)			(1.0)			1.2
Other components of net periodic pension    and OPEB cost			(1.6)			(0.6)			(5.7)			(1.6)
Interest expense			(4.3)			(12.1)			(17.1)			(42.9)
Income (loss) before income taxes			(9.4)			15.5			(72.9)			149.6
Income tax expense (benefit)			(4.1)			28.7			(23.8)			63.4
Net income (loss)		$	(5.3)		$	(13.2)		$	(49.1)		$	86.2
Net income (loss) per basic and diluted share		$	(.05)		$	(.12)		$	(.43)		$	.75
Weighted average shares used in the    calculation of net income per share			115.0			115.0			115.1			115.0
TiO2 data – metric tons in thousands:
Sales volumes			106			110			419			504
Production volumes			105			136			401			535

KRONOS WORLDWIDE, INC.
RECONCILIATION OF INCOME (LOSS) FROM
OPERATIONS TO SEGMENT PROFIT (LOSS)
(In millions)

		Three months ended								Year ended
		December 31,								December 31,
		2023				2024				2023				2024
		(unaudited)
Income (loss) from operations		$	(5.7)			$	28.6			$	(56.0)			$	122.9
Adjustments:
Trade interest income			.8				.6				1.8				3.3
Corporate expense			3.6				3.9				14.4				14.8
Segment profit (loss)		$	(1.3)			$	33.1			$	(39.8)			$	141.0

RECONCILIATION OF NET INCOME (LOSS) TO EBITDA
(In millions)

		Three months ended							Year ended
		December 31,							December 31,
		2023			2024				2023			2024
		(unaudited)
Net income (loss)		$	(5.3)		$	(13.2)			$	(49.1)		$	86.2
Adjustments:
Depreciation expense			12.0			14.1				48.6			60.4
Interest expense			4.3			12.1				17.1			42.9
Income tax expense (benefit)			(4.1)			28.7				(23.8)			63.4
EBITDA		$	6.9		$	41.7			$	(7.2)		$	252.9

IMPACT OF PERCENTAGE CHANGE IN NET SALES
(unaudited)

		Three months ended		Year ended
		December 31,		December 31,
		2024 vs. 2023		2024 vs. 2023
Percentage change in net sales:
TiO2 sales volume		4	%	20	%
TiO2 product pricing		2		(5)
TiO2 product mix/other		–		(2)
Changes in currency exchange rates		–		–
Total		6	%	13	%

SAN RAMON, Calif., March 06, 2025 (GLOBE NEWSWIRE) — CooperCompanies (Nasdaq: COO), a leading global medical device company, today announced financial results for its fiscal first quarter ended January 31, 2025.

• Revenue increased 4% year-over-year to $964.7 million. CooperVision (CVI) revenue up 4% to $646.1 million, and CooperSurgical (CSI) revenue up 3% to $318.6 million.
• GAAP diluted earnings per share (EPS) of $0.52, up $0.11 from last year’s first quarter.
• Non-GAAP diluted EPS of $0.92, up $0.07 from last year’s first quarter. See “Reconciliation of Selected GAAP Results to Non-GAAP Results” below.

Commenting on the results, Al White, Cooper’s President and CEO said, “We started the year on a positive note meeting our revenue expectations and exceeding our operational targets. Moving forward, we remain confident in our ability to deliver strong growth and operational excellence, and this is reflected in our guidance.”

First
Quarter Operating Results

• Revenue of $964.7 million, up 4% from last year’s first quarter, up 5% in constant currency, up 5% organically.
• Gross margin of 68% compared with 67% in last year’s first quarter driven by efficiency gains and mix. On a non-GAAP basis, gross margin was 69%, up from 67% last year.
• Operating margin of 19% compared with 16% in last year’s first quarter driven by stronger gross margins and targeted G&A expense leverage. On a non-GAAP basis, operating margin was 25%, up from 24% last year.
• Interest expense of $26.0 million compared with $29.9 million in last year’s first quarter driven by lower interest rates and lower average debt. On a non-GAAP basis, interest expense was $25.3 million, down from $28.6 million.
• Cash provided by operations of $190.6 million offset by capital expenditures of $89.4 million resulted in free cash flow of $101.2 million.

First
Quarter CooperVision (CVI) Revenue

• Revenue of $646.1 million, up 4% from last year’s first quarter, up 6% in constant currency, up 6% organically.
• Revenue by category:

					% change y/y
		(In millions)			Reported			Currency Impact			Constant Currency			Acquisitions and Divestitures			Organic
		1Q25
	Toric and multifocal	$	319.4		7	%		3	%		10	%		—	%		10	%
	Sphere, other		326.7		1	%		2	%		3	%		—	%		3	%
	Total	$	646.1		4	%		2	%		6	%		—	%		6	%

• Revenue by geography:

					% change y/y
		(In millions)			Reported			Currency Impact			Constant Currency			Acquisitions and Divestitures			Organic
		1Q25
	Americas	$	270.9		7	%		1	%		8	%		—	%		8	%
	EMEA		246.5		3	%		3	%		6	%		—	%		6	%
	Asia Pacific		128.7		(2	)%		5	%		3	%		—	%		3	%
	Total	$	646.1		4	%		2	%		6	%		—	%		6	%

First
Quarter CooperSurgical (CSI) Revenue

• Revenue of $318.6 million, up 3% from last year’s first quarter, up 4% in constant currency, up 2% organically.

• Revenue by category:

					% change y/y
		(In millions)			Reported			Currency Impact			Constant Currency			Acquisitions and Divestitures			Organic
		1Q25
	Office and surgical	$	198.9		4	%		—	%		4	%		(2	)%		2	%
	Fertility		119.7		1	%		2	%		3	%		(2	)%		1	%
	Total	$	318.6		3	%		1	%		4	%		(2	)%		2	%

Fiscal Year 2025 Financial Guidance

The Company updated its fiscal year 2025 financial guidance. Details are summarized as follows:

• Fiscal 2025 total revenue of $4,080 – $4,158 million (organic growth of 6% to 8%)
  • CVI revenue of $2,733 – $2,786 million (organic growth of 6.5% to 8.5%)
  • CSI revenue of $1,347 – $1,372 million (organic growth of 4% to 6%)
• Fiscal 2025 non-GAAP diluted EPS of $3.94 – $4.02 (raised from previous guidance of $3.92 – $4.02)

Non-GAAP diluted earnings per share guidance excludes amortization and impairment of intangible assets, and certain income or gains and charges or expenses including acquisition and integration costs which we may incur as part of our continuing operations.

With respect to the Company’s guidance expectations, the Company has not reconciled non-GAAP diluted earnings per share guidance to GAAP diluted earnings per share due to the inherent difficulty in forecasting acquisition-related, integration and restructuring charges and expenses, which are reconciling items between the non-GAAP and GAAP measure. Due to the unknown effect, timing and potential significance of such charges and expenses that impact GAAP diluted earnings per share, the Company is not able to provide such guidance.

Reconciliation of Selected GAAP Results to Non-GAAP Results

To supplement our financial results and guidance presented on a GAAP basis, we provide non-GAAP measures such as non-GAAP gross margin, non-GAAP operating margin, non-GAAP diluted earnings per share, as well as constant currency and organic revenue growth because we believe they are helpful for the investors to understand our consolidated operating results. Management uses supplemental non-GAAP financial measures internally to understand, manage and evaluate our business, to make operating decisions, and to plan and forecast for future periods. The non-GAAP measures exclude costs which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. We provide further details of the non-GAAP adjustments made to arrive at our non-GAAP measures in the GAAP to non-GAAP reconciliations below. Our non-GAAP financial results and guidance are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

To present constant currency revenue growth, current period revenue for entities reporting in currencies other than the United States dollar are converted into United States dollars at the average foreign exchange rates for the corresponding period in the prior year. To present organic revenue growth, we excluded the effect of foreign currency fluctuations and the impact of any acquisitions, divestitures and discontinuations that occurred in the comparable period.

We define the non-GAAP measure of free cash flow as cash provided by operating activities less capital expenditures. We believe free cash flow is useful for investors as an additional measure of liquidity because it represents cash that is available to grow the business, make strategic acquisitions, repay debt, or buyback common stock. Management uses free cash flow internally to understand, manage, make operating decisions and evaluate our business. In addition, we use free cash flow to help plan and forecast future periods.

Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP.

THE COOPER COMPANIES, INC. AND SUBSIDIARIES
GAAP to Non-GAAP Reconciliation Gross Margin, Operating Margin, and EPS
	Three Months Ended January 31,
(In millions)		2025	Margin %			2024	Margin %
GAAP Gross Profit	$	660.2	68	%	$	623.8	67	%
Acquisition and integration-related charges (1)		1.6	1	%		0.8	—	%
Exit of business (2)		—	—	%		0.1	—	%
Medical device regulations (3)		0.6	—	%		1.0	—	%
Business optimization charges (4)		—	—	%		1.6	—	%
Total		2.2	1	%		3.5	—	%
Non-GAAP Gross Profit	$	662.4	69	%	$	627.3	67	%

	Three Months Ended January 31,
(In millions)		2025	Margin %			2024	Margin %
GAAP Operating Income	$	182.0	19	%	$	153.1	16	%
Amortization of acquired intangibles		49.6	5	%		50.3	5	%
Acquisition and integration-related charges (1)		4.3	—	%		10.5	1	%
Exit of business (2)		—	—	%		0.4	—	%
Medical device regulations (3)		5.4	1	%		5.2	1	%
Business optimization charges (4)		—	—	%		6.8	1	%
Other (5)		0.6	—	%		0.8	—	%
Total		59.9	6	%		74.0	8	%
Non-GAAP Operating Income	$	241.9	25	%	$	227.1	24	%

	Three Months Ended January 31,
(In millions, except per share amounts)		2025		EPS				2024		EPS
GAAP Net Income	$	104.3		$	0.52		$	81.2		$	0.41
Amortization of acquired intangibles		49.6			0.25			50.3			0.25
Acquisition and integration-related charges (1)		4.3			0.02			10.5			0.05
Exit of business (2)		—			—			0.4			—
Medical device regulations (3)		5.4			0.03			5.2			0.03
Business optimization charges (4)		—			—			6.8			0.03
Other (5)		2.5			0.01			3.6			0.02
Tax effects related to the above items		(14.7	)		(0.07	)		(19.8	)		(0.10	)
Intra-entity asset transfers (6)		33.0			0.16			32.4			0.16
Total		80.1			0.40			89.4			0.44
Non-GAAP Net Income	$	184.4		$	0.92		$	170.6		$	0.85
Weighted average diluted shares used		201.2						199.9

EPS, amounts and percentages may not sum or recalculate due to rounding.

⁽¹⁾ Charges include the direct effects of acquisition accounting, such as amortization of inventory fair value step-up, professional services fees, regulatory fees and changes in fair value of contingent considerations, and items related to integrating acquired businesses, such as redundant personnel costs for transitional employees, other acquired employee related costs, and integration-related professional services, manufacturing integration costs, legal entity rationalization and other integration-related activities. The acquisition and integration-related charges in fiscal 2025 were primarily related to the obp Surgical and the Cook Medical acquisition and integration expenses. The acquisition and integration-related charges in fiscal 2024 were primarily related to the Cook Medical acquisition and integration expenses.

Charges included $1.3 million related to redundant personnel costs for transitional employees, $1.3 million of professional services fees, $0.9 million of inventory fair value step-up amortization, and $0.8 million of other acquisition and integration-related activities in the three months ended January 31, 2025.

Charges included $4.0 million related to redundant personnel costs for transitional employees, $3.1 million of professional services fees, $0.7 million of manufacturing integration costs, and $2.7 million of other acquisition and integration-related activities in the three months ended January 31, 2024.

⁽²⁾ Charges include costs related to product line exits such as inventory write-offs, site closure costs, contract termination costs and specifically-identified long-lived asset write-offs.

There were no exit of business charges in the three months ended January 31, 2025.

Charges included $0.3 million site closures costs due to the exit of the lens care business and $0.1 million of inventory write-offs in the three months ended January 31, 2024.

⁽³⁾ Charges represent incremental costs of complying with the new European Union (E.U.) medical device regulations for previously registered products and primarily include charges for contractors supporting the project and other direct third-party expenses. We consider these costs to be limited to a specific time period.

⁽⁴⁾ Charges represent the costs associated with initiatives to increase efficiencies across the organization and optimize our overall cost structure, including changes to our IT infrastructure and operations, employee severance costs, legal entity and other business reorganizations, write-offs or impairments of certain long-lived assets associated with the business optimization activities.

There were no business optimization charges in the three months ended January 31, 2025.

Charges included $6.0 million of employee severance costs, $0.3 million related to changes to our IT infrastructure and operations, and $0.5 million of legal entity and other business reorganizations costs in the three months ended January 31, 2024.

⁽⁵⁾ Charges include certain business disruptions from natural causes, litigation matters and other items that are not part of ordinary operations. The adjustments to arrive at non-GAAP net income also include gains and losses on minority interest investments and accretion of interest attributable to acquisition installment payables.

Charges included $1.2 million of gains and losses on minority interest investments, $0.7 million of accretion of interest attributable to acquisition installment payables, and $0.6 million of legal matters in the three months ended January 31, 2025.

Charges included $1.4 million of gains and losses on minority interest investments, $1.4 million of accretion of interest attributable to acquisition installment payables, and $0.8 million related to legal matters in the three months ended January 31, 2024.

⁽⁶⁾ In fiscal 2021, the Company transferred its CooperVision intellectual property and goodwill to its UK subsidiary. As a result, we recorded a deferred tax asset equal to approximately $2.0 billion as a one-time tax benefit in accordance with U.S. GAAP in fiscal 2021 as subsequently adjusted for changes in UK tax law. The non-GAAP adjustments reflect the ongoing net deferred tax benefit from tax amortization each period under UK tax law.

Audio Webcast and Conference Call

The Company will host an audio webcast today for the public, investors, analysts and news media to discuss its first quarter results and current corporate developments. The audio webcast will be broadcast live on CooperCompanies’ website, www.investor.coopercos.com, at approximately 5:00 PM ET. It will also be available for replay on CooperCompanies’ website, www.investor.coopercos.com. Alternatively, you can dial in to the conference call at 800-715-9871; conference ID 7466264.

About CooperCompanies

CooperCompanies (Nasdaq: COO) is a leading global medical device company focused on helping people experience life’s beautiful moments through its two business units, CooperVision and CooperSurgical. CooperVision is a trusted leader in the contact lens industry, helping to improve the way people see each day. CooperSurgical is a leading fertility and women’s healthcare company dedicated to putting time on the side of women, babies, and families at the healthcare moments that matter most. Headquartered in San Ramon, CA, CooperCompanies has a workforce of more than 16,000, sells products in over 130 countries, and positively impacts over fifty million lives each year. For more information, please visit www.coopercos.com.

Forward-Looking Statements

This earnings release contains “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Statements relating to guidance, plans, prospects, goals, strategies, future actions, events or performance and other statements of which are other than statements of historical fact, including our fiscal year 2025 financial guidance, are forward looking. In addition, all statements regarding anticipated growth in our revenues, anticipated effects of any product recalls, anticipated market conditions, planned product launches, restructuring or business transition expectations, regulatory plans, and expected results of operations and integration of any acquisition are forward-looking. To identify these statements look for words like “believes,” “outlook,” “probable,” “expects,” “may,” “will,” “should,” “could,” “seeks,” “intends,” “plans,” “estimates” or “anticipates” and similar words or phrases. Forward-looking statements necessarily depend on assumptions, data or methods that may be incorrect or imprecise and are subject to risks and uncertainties.

Among the factors that could cause our actual results and future actions to differ materially from those described in forward-looking statements are: adverse changes in the global or regional general business, political and economic conditions including the impact of continuing uncertainty and instability of certain countries, man-made or natural disasters and pandemic conditions, that could adversely affect our global markets, and the potential adverse economic impact and related uncertainty caused by these items; the impact of international conflicts and the global response to international conflicts on the global and local economy, financial markets, energy markets, currency rates and our ability to supply product to, or through, affected countries; our substantial and expanding international operations and the challenges of managing an organization spread throughout multiple countries and complying with a variety of legal, compliance and regulatory requirements; foreign currency exchange rate and interest rate fluctuations including the risk of fluctuations in the value of foreign currencies or interest rates that would decrease our net sales and earnings; our existing and future variable rate indebtedness and associated interest expense is impacted by rate increases, which could adversely affect our financial health or limit our ability to borrow additional funds; changes in tax laws, examinations by tax authorities, and changes in our geographic composition of income; acquisition-related adverse effects including the failure to successfully achieve the anticipated net sales, margins and earnings benefits of acquisitions, integration delays or costs and the requirement to record significant adjustments to the preliminary fair value of assets acquired and liabilities assumed within the measurement period, required regulatory approvals for an acquisition not being obtained or being delayed or subject to conditions that are not anticipated, adverse impacts of changes to accounting controls and reporting procedures, contingent liabilities or indemnification obligations, increased leverage and lack of access to available financing (including financing for the acquisition or refinancing of debt owed by us on a timely basis and on reasonable terms); compliance costs and potential liability in connection with U.S. and foreign laws and health care regulations pertaining to privacy and security of personal information such as the Health Insurance Portability and Accountability Act of 1996 (HIPAA) and the California Consumer Privacy Act (CCPA) in the U.S. and the General Data Protection Regulation (GDPR) requirements in Europe, including but not limited to those resulting from data security breaches; a major disruption in the operations of our manufacturing, accounting and financial reporting, research and development, distribution facilities or raw material supply chain due to challenges associated with integration of acquisitions, man-made or natural disasters, pandemic conditions, cybersecurity incidents or other causes; a major disruption in the operations of our manufacturing, accounting and financial reporting, research and development or distribution facilities due to the failure to perform by third-party vendors, including cloud computing providers or other technological problems, including any related to our information systems maintenance, enhancements or new system deployments, integrations or upgrades; a successful cybersecurity attack which could interrupt or disrupt our information technology systems, or those of our third-party service providers, or cause the loss of confidential or protected data; market consolidation of large customers globally through mergers or acquisitions resulting in a larger proportion or concentration of our business being derived from fewer customers; disruptions in supplies of raw materials, particularly components used to manufacture our silicone hydrogel lenses; new U.S. and foreign government laws and regulations, and changes in existing laws, regulations and enforcement guidance, which affect areas of our operations including, but not limited to, those affecting the health care industry, including the contact lens industry specifically and the medical device or pharmaceutical industries generally, including but not limited to the EU Medical Devices Regulation (MDR), and the EU In Vitro Diagnostic Medical Devices Regulation (IVDR); legal costs, insurance expenses, settlement costs and the risk of an adverse decision, prohibitive injunction or settlement related to product liability, patent infringement, contractual disputes, or other litigation; limitations on sales following product introductions due to poor market acceptance; new competitors, product innovations or technologies, including but not limited to, technological advances by competitors, new products and patents attained by competitors, and competitors’ expansion through acquisitions; reduced sales, loss of customers, reputational harm and costs and expenses, including from claims and litigation related to product recalls and warning letters; failure to receive, or delays in receiving, regulatory approvals or certifications for products; failure of our customers and end users to obtain adequate coverage and reimbursement from third-party payers for our products and services; the requirement to provide for a significant liability or to write off, or accelerate depreciation on, a significant asset, including goodwill, other intangible assets and idle manufacturing facilities and equipment; the success of our research and development activities and other start-up projects; dilution to earnings per share from acquisitions or issuing stock; impact and costs incurred from changes in accounting standards and policies; risks related to environmental laws and requirements applicable to our facilities, products or manufacturing processes, including evolving regulations regarding the use of hazardous substances or chemicals in our products; risks related to environmental, social and corporate governance (ESG) issues, including those related to regulatory and disclosure requirements, climate change and sustainability; and other events described in our Securities and Exchange Commission filings, including the “Business”, “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2024, as such Risk Factors may be updated in annual and quarterly filings.

We caution investors that forward-looking statements reflect our analysis only on their stated date. We disclaim any intent to update them except as required by law.

Contact:

Kim Duncan
Vice President, Investor Relations and Risk Management
925-460-3663
[email protected]

THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Consolidated Condensed Balance Sheets (In millions) (Unaudited)
	January 31, 2025			October 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	100.9		$	107.6
Trade receivables, net		716.4			717.0
Inventories		842.9			802.7
Prepaid expense and other current assets		326.8			324.2
Total current assets		1,987.0			1,951.5
Property, plant and equipment, net		1,864.7			1,863.4
Goodwill		3,792.1			3,838.4
Other intangibles, net		1,739.4			1,791.0
Deferred tax assets		2,175.3			2,210.3
Other assets		663.7			660.6
Total assets	$	12,222.2		$	12,315.2
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	48.7		$	33.3
Accounts Payable		201.5			260.5
Employee compensation and benefits		190.4			174.8
Deferred revenue		126.3			129.9
Other current liabilities		432.7			424.3
Total current liabilities		999.6			1,022.8
Long-term debt		2,491.2			2,550.4
Deferred tax liabilities		95.2			96.0
Long-term tax payable		54.3			57.5
Deferred revenue		193.4			193.3
Other liabilities		261.0			311.6
Total liabilities		4,094.7			4,231.6
Stockholders’ equity		8,127.5			8,083.6
Total liabilities and stockholders’ equity	$	12,222.2		$	12,315.2

THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Consolidated Statements of Income (In millions, except per share amounts) (Unaudited)
	Three Months Ended January 31,
		2025			2024
Net sales	$	964.7		$	931.6
Cost of sales		304.5			307.8
Gross profit		660.2			623.8
Selling, general and administrative expense		387.9			380.9
Research and development expense		40.7			39.5
Amortization of intangibles		49.6			50.3
Operating income		182.0			153.1
Interest expense		26.0			29.9
Other expense, net		2.7			3.2
Income before income taxes		153.3			120.0
Provision for income taxes		49.0			38.8
Net income	$	104.3		$	81.2
Earnings per share – diluted	$	0.52		$	0.41
Number of shares used to compute diluted earnings per share		201.2			199.9

THE COOPER COMPANIES, INC. AND SUBSIDIARIES
GAAP to Non-GAAP Reconciliation Constant Currency Revenue Growth and Organic Revenue Growth
Net Sales
				% change y/y
	(In millions)			Reported			Currency Impact			Constant Currency			Acquisitions and Divestitures			Organic
	1Q25
CooperVision	$	646.1		4	%		2	%		6	%		—	%		6	%
CooperSurgical		318.6		3	%		1	%		4	%		(2)	%		2	%
Total	$	964.7		4	%		1	%		5	%		—	%		5	%

ISSAQUAH, Wash., March 06, 2025 (GLOBE NEWSWIRE) — Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the second quarter (twelve weeks) and the first 24 weeks of fiscal 2025, ended February 16, 2025.

Net sales for the quarter increased 9.1 percent, to $62.53 billion, from $57.33 billion last year. Net sales for the first 24 weeks increased 8.3 percent, to $123.52 billion, from $114.05 billion last year.

Comparable sales for the second quarter and first 24 weeks of fiscal 2025 were as follows:

	12 Weeks		12 Weeks		24 Weeks		24 Weeks
			Adjusted*				Adjusted*
U.S.	8.3%		8.6%		6.8%		7.9%
Canada	4.6%		10.5%		5.2%		8.6%
Other International	1.7%		10.3%		3.2%		8.7%
Total Company	6.8%		9.1%		6.0%		8.1%
E-commerce	20.9%		22.2%		17.1%		17.9%

^{*Excluding the impacts from changes in gasoline prices and foreign exchange.}

Net income for the quarter was $1,788 million, $4.02 per diluted share, compared to $1,743 million, $3.92 per diluted share, last year. Last year’s second quarter net income was positively impacted by a $94 million ($0.21 per diluted share) tax benefit due to the deductibility of the $15 per share special dividend to the extent received by 401(k) plan participants. Net income for the first 24 weeks was $3.59 billion, $8.06 per diluted share, compared to $3.33 billion, $7.49 per diluted share, last year.

For the four-week reporting month of February, ended March 2, 2025, the Company reported net sales of $19.81 billion, an increase of 8.8 percent from $18.21 billion last year. Net sales for the first 26 weeks were $133.36 billion, an increase of 8.3 percent from $123.15 billion last year.

Comparable sales for the February and year-to-date periods ended March 2, 2025, were as follows:

	4 Weeks		4 Weeks		26 Weeks		26 Weeks
			Adjusted*				Adjusted*
U.S.	8.6%		8.6%		6.9%		7.9%
Canada	3.2%		8.7%		5.1%		8.6%
Other International	-0.6%		6.5%		3.0%		8.7%
Total Company	6.5%		8.3%		6.1%		8.1%
E-commerce	19.0%		20.2%		16.9%		17.7%

^{*Excluding the impacts from changes in gasoline prices and foreign exchange.}

Costco currently operates 897 warehouses, including 617 in the United States and Puerto Rico, 109 in Canada, 41 in Mexico, 36 in Japan, 29 in the United Kingdom, 19 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, two in France, and one each in Iceland, New Zealand and Sweden. Costco also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.

A conference call to discuss these results is scheduled for 2:00 p.m. (PT) today, March 6, 2025, and is available via a webcast on investor.costco.com (click on “Events & Presentations”).

Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For these purposes, forward-looking statements are statements that address activities, events, conditions or developments that the Company expects or anticipates may occur in the future. In some cases forward-looking statements can be identified because they contain words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or similar expressions and the negatives of those terms. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. These risks and uncertainties include, but are not limited to, domestic and international economic conditions, including exchange rates, inflation or deflation, the effects of competition and regulation, uncertainties in the financial markets, consumer and small business spending patterns and debt levels, breaches of security or privacy of member or business information, conditions affecting the acquisition, development, ownership or use of real estate, capital spending, actions of vendors, rising costs associated with employees (generally including health-care costs and wages), workforce interruptions, energy and certain commodities, geopolitical conditions (including tariffs), the ability to maintain effective internal control over financial reporting, regulatory and other impacts related to environmental and social matters, public-health related factors, and other risks identified from time to time in the Company’s public statements and reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and the Company does not undertake to update these statements, except as required by law. Comparable sales and comparable sales excluding impacts from changes in gasoline prices and foreign exchange are intended as supplemental information and are not a substitute for net sales presented in accordance with U.S. GAAP.

CONTACTS:	Costco Wholesale Corporation
	David Sherwood, 425/313-8239
	Josh Dahmen, 425/313-8254
	Andrew Yoon, 425/313-6305

COST-Earn
COST-Sales

COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (dollars in millions, except per share data) (unaudited)
	12 Weeks Ended								24 Weeks Ended
	February 16, 2025				February 18, 2024				February 16, 2025				February 18, 2024
REVENUE
Net sales	$	62,530			$	57,331			$	123,515			$	114,048
Membership fees		1,193				1,111				2,359				2,193
Total revenue		63,723				58,442				125,874				116,241
OPERATING EXPENSES
Merchandise costs		55,744				51,140				109,853				101,597
Selling, general and administrative		5,663				5,240				11,509				10,598
Operating income		2,316				2,062				4,512				4,046
OTHER INCOME (EXPENSE)
Interest expense		(36	)			(41	)			(73	)			(79	)
Interest income and other, net		142				216				289				376
INCOME BEFORE INCOME TAXES		2,422				2,237				4,728				4,343
Provision for income taxes		634				494				1,142				1,011
NET INCOME	$	1,788			$	1,743			$	3,586			$	3,332
NET INCOME PER COMMON SHARE:
Basic	$	4.03			$	3.93			$	8.08			$	7.51
Diluted	$	4.02			$	3.92			$	8.06			$	7.49
Shares used in calculation (000s):
Basic		443,982				443,892				443,985				443,859
Diluted		444,886				444,754				444,888				444,579

COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS  (amounts in millions, except par value and share data) (unaudited)
Subject to Reclassification
	February 16, 2025				September 1, 2024
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	12,356			$	9,906
Short-term investments		802				1,238
Receivables, net		3,060				2,721
Merchandise inventories		18,754				18,647
Other current assets		1,925				1,734
Total current assets		36,897				34,246
OTHER ASSETS
Property and equipment, net		29,809				29,032
Operating lease right-of-use assets		2,531				2,617
Other long-term assets		3,987				3,936
TOTAL ASSETS	$	73,224			$	69,831
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable	$	18,610			$	19,421
Accrued salaries and benefits		5,150				4,794
Accrued member rewards		2,491				2,435
Deferred membership fees		2,824				2,501
Other current liabilities		7,924				6,313
Total current liabilities		36,999				35,464
OTHER LIABILITIES
Long-term debt, excluding current portion		5,755				5,794
Long-term operating lease liabilities		2,284				2,375
Other long-term liabilities		2,609				2,576
TOTAL LIABILITIES		47,647				46,209
COMMITMENTS AND CONTINGENCIES
EQUITY
Preferred stock $0.005 par value; 100,000,000 shares authorized; no shares issued and outstanding		—				—
Common stock $0.005 par value; 900,000,000 shares authorized; 443,730,000 and 443,126,000 shares issued and outstanding		2				2
Additional paid-in capital		8,047				7,829
Accumulated other comprehensive loss		(2,242	)			(1,828	)
Retained earnings		19,770				17,619
TOTAL EQUITY		25,577				23,622
TOTAL LIABILITIES AND EQUITY	$	73,224			$	69,831

COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  (amounts in millions) (unaudited)
Subject to Reclassification
	24 Weeks Ended
	February 16, 2025				February 18, 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	3,586			$	3,332
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		1,100				1,015
Non-cash lease expense		137				148
Stock-based compensation		614				580
Other non-cash operating activities, net		(79	)			(7	)
Changes in working capital		650				314
Net cash provided by operating activities		6,008				5,382
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of short-term investments		(345	)			(719	)
Maturities of short-term investments		752				1,029
Additions to property and equipment		(2,401	)			(2,071	)
Other investing activities, net		(13	)			9
Net cash used in investing activities		(2,007	)			(1,752	)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of short-term borrowings		(389	)			(409	)
Proceeds from short-term borrowings		370				383
Proceeds from issuance of long-term debt		—				498
Tax withholdings on stock-based awards		(390	)			(292	)
Repurchases of common stock		(412	)			(322	)
Cash dividend payments		(515	)			(8,012	)
Financing lease payments and other financing activities, net		(98	)			(96	)
Net cash used in financing activities		(1,434	)			(8,250	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		(117	)			15
Net change in cash and cash equivalents		2,450				(4,605	)
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR		9,906				13,700
CASH AND CASH EQUIVALENTS END OF PERIOD	$	12,356			$	9,095