[April 26, 2017] |
|
Baxter Reports First-Quarter 2017 Results and Increases Financial Outlook for Full-Year 2017
Baxter International Inc. (NYSE:BAX) today reported results for the
first quarter of 2017 and increased its full-year 2017 guidance.
"Encouraged by a solid start to 2017 and the on-going momentum of our
business transformation initiatives, we are raising our full-year sales
and earnings outlook," said José (Joe) E. Almeida, chairman and chief
executive officer. "We are driving growth through disciplined execution
and particular strength across our U.S. businesses. We will continue to
invest in evolving our portfolio through the introduction of innovative
products and technologies along with geographic expansion to deliver
future growth."
First-Quarter Financial Results
In the first quarter, worldwide sales totaled $2.5 billion, an increase
of 4 percent on a reported basis and 5 percent on a constant currency
basis as compared to the prior-year period. Operationally, Baxter's
sales rose 7 percent, which excludes the impact of foreign exchange,
generic competition for U.S. cyclophosphamide and the previously
communicated select strategic product exits the company is undertaking.
Sales within the U.S. were $1.1 billion, advancing 11 percent on a
reported basis. International sales of $1.4 billion declined 1 percent
on a reported basis and were comparable to the prior year on a constant
currency basis. Baxter's operational sales increased 13 percent in the
U.S. and 2 percent internationally.
Global sales for Hospital Products totaled $1.6 billion in the first
quarter, increasing 7 percent on both a reported and constant currency
basis and advancing 10 percent operationally as compared to the
prior-year period. Contributing to performance in the quarter were
strong U.S. sales of IV therapies, IV access sets, and select anesthesia
and critical care products along with favorable demand for parenteral
nutrition therapies and international biosurgery products.
Baxter's Renal sales totaled $896 million, comparable to the prior year
on a reported basis and grew 1 percent globally on a constant currency
basis. Operationally, global Renal sales advanced 2 percent benefitting
from increased sales of peritoneal dialysis therapies driven by the
continued adoption of the company's newest Automated Peritoneal Dialysis
(APD) cyclers - AMIA in the U.S. and HOMECHOICE CLARIA in international
markets. Additionally, sales of Baxter's acute renal care products
advanced globally, reflecting growing demand for continuous renal
replacement therapies (CRRT).
Baxter reported income from continuing operations of $273 million, or
$0.50 per diluted share, on a GAAP (Generally Accepted Accounting
Principles) basis for the first quarter. These results included special
items totaling $62 million ($45 million net after-tax), primarily
related to business optimization and intangible asset amortization.
On an adjusted basis, excluding special items, Baxter's first quarter
income from continuing operations totaled $318 million, or $0.58 per
diluted share, exceeding the company's previously issued guidance of
$0.50 to $0.52 per diluted share.
Business Highlights
Baxter has recently achieved a number of operational, pipeline and
commercial milestones in support of its strategy to drive accelerated
growth and deliver meaningful innovation for patients and healthcare
professionals around the world.
-
In Surgical Care:
-
Introduced customer-centric enhancements to Baxter's leading
hemostatic agents, FLOSEAL and TISSEEL, designed to enhance
patient safety and ease of use for clinicians.
-
Published two health economic data analyses in the Journal of
Medical Economics supporting FLOSEAL as a cost-effective
hemostat that may contribute to broader cost savings at hospitals
as compared to other options.
-
Acquired Wound Care Technologies Incorporated, manufacturer of the
DERMACLOSE Continuous Tissue Expander, an innovative wound closure
technology that is complementary to Baxter's surgical portfolio
and directly leverages its existing expertise and channel strength.
-
In Integrated Pharmacy Solutions:
-
Entered into an exclusive strategic partnership with Scinopharm,
one of the world's leading active pharmaceutical ingredient (API)
manufacturers, to bring to market five generic injectables used in
cancer treatments, with an option to add up to 15 additional
injectable molecules.
-
In Renal:
-
Surpassed 500,000 patient treatments administered globally
utilizing Baxter's SHARESOURCE Connectivity Platform. SHARESOURCE
is the first and only two-way remote patient management system for
home dialysis therapy and is available on both AMIA and HOMECHOICE
CLARIA APD cyclers.
-
Successful deployment of PRISMAX, Baxter's next generation
continuous renal replacement therapy platform, in several European
locations as part of an initial limited distribution prior to the
planned full-scale launch in 2018.
Financial Outlook
-
For full-year 2017: Based on the
company's strong first quarter, Baxter is raising its financial
outlook for the year. The company now expects sales growth of
approximately 1 to 2 percent on a reported basis or 2 to 3 percent on
a constant currency basis, and earnings from continuing operations,
before special items, of $2.20 to $2.28 per diluted share for the full
year. Adjusting for the impact of generic cyclophosphamide competition
(an estimated one percent) and selected strategic product exits (an
estimated one percent), Baxter expects underlying constant currency
sales growth of approximately 4 to 5 percent. This guidance does not
include any impact from the company's proposed acquisition of Claris
Injectables, which is expected to close in the second half of 2017.
-
For the second quarter: The company
expects flat sales growth on a reported basis, or approximately 2
percent on a constant currency basis. Adjusting for the impact of
generic cyclophosphamide competition (less than an estimated one-half
percent) and selected strategic product exits (less than an estimated
1 percent), Baxter expects underlying constant currency sales growth
of approximately 3 percent. The company expects earnings from
continuing operations, before special items, of $0.55 to $0.57 per
diluted share.
Please see the schedules accompanying this press release for a
reconciliation between the projected 2017 adjusted earnings per diluted
share and projected GAAP earnings per diluted share.
A webcast of Baxter's first quarter conference call for investors can be
accessed live from a link on the company's website at www.baxter.com
beginning at 7:30 a.m. CT on April 26, 2017. Please see www.baxter.com
for more information regarding this and future investor events and
webcasts.
Baxter provides a broad portfolio of essential renal and hospital
products, including home, acute and in-center dialysis; sterile IV
solutions; infusion systems and devices; parenteral nutrition;
biosurgery products and anesthetics; and pharmacy automation, software
and services. The company's global footprint and the critical nature of
its products and services play a key role in expanding access to
healthcare in emerging and developed countries. Baxter's employees
worldwide are building upon the company's rich heritage of medical
breakthroughs to advance the next generation of healthcare innovations
that enable patient care.
This release includes forward-looking statements concerning the
company's financial results, business development activities, capital
structure, cost savings initiatives, R&D pipeline including results of
clinical trials and planned product launches, and outlook for 2017. The
statements are based on assumptions about many important factors,
including the following, which could cause actual results to differ
materially from those in the forward-looking statements: demand for and
market acceptance of risks for new and existing products, and the impact
of those products on quality or patient safety concerns; product
development risks; product quality or patient safety concerns; future
actions of regulatory bodies and other governmental authorities,
including the FDA, the Department of Justice, the New York Attorney
General and foreign counterparts; failures with respect to compliance
programs; future actions of third parties, including payers; U.S.
healthcare reform and other global austerity measures; pricing,
reimbursement, taxation and rebate policies of government agencies and
private payers; the impact of competitive products and pricing,
including generic competition, drug reimportation and disruptive
technologies; global, trade and tax policies; accurate identification of
and execution on business development and R&D opportunities and
realization of anticipated benefits (including the proposed acquisition
of Claris Injectables); fluctuations in supply and demand; the
availability of acceptable raw materials and component supply; the
inability to create timely production capacity or other manufacturing
supply difficulties; the ability to achieve the intended results
associated with the separation of the biopharmaceutical and medical
products businesses; the ability to enforce owned or in-licensed patents
or the patents of third parties preventing or restricting manufacture,
sale or use of affected products or technology; the impact of global
economic conditions; fluctuations in foreign exchange and interest
rates; any change in law concerning the taxation of income, including
income earned outside the United States; actions taken by tax
authorities in connection with ongoing tax audits; breaches or failures
of the company's information technology systems; loss of key employees
or inability to identify and recruit new employees; the outcome of
pending or future litigation; the adequacy of the company's cash flows
from operations to meet its ongoing cash obligations and fund its
investment program; and other risks identified in Baxter's most recent
filing on Form 10-K and other Securities and Exchange Commission
filings, all of which are available on Baxter's website. Baxter
does not undertake to update its forward-looking statements.
|
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BAXTER INTERNATIONAL INC.
|
Consolidated Statements of Income
|
Three Months Ended March 31, 2017 and 2016
|
(unaudited)
|
(in millions, except per share and percentage data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
|
|
|
|
|
|
NET SALES
|
|
$2,475
|
|
$2,375
|
|
4%
|
|
|
|
|
|
|
|
COST OF SALES
|
|
1,433
|
|
1,410
|
|
2%
|
|
|
|
|
|
|
|
GROSS MARGIN
|
|
1,042
|
|
965
|
|
8%
|
% of Net Sales
|
|
42.1%
|
|
40.6%
|
|
1.5 pts
|
|
|
|
|
|
|
|
MARKETING AND ADMINISTRATIVE EXPENSES
|
|
570
|
|
641
|
|
(11%)
|
% of Net Sales
|
|
23.0%
|
|
27.0%
|
|
(4 pts)
|
|
|
|
|
|
|
|
RESEARCH AND DEVELOPMENT EXPENSES
|
|
128
|
|
136
|
|
(6%)
|
% of Net Sales
|
|
5.2%
|
|
5.7%
|
|
(0.5 pts)
|
|
|
|
|
|
|
|
OPERATING INCOME
|
|
344
|
|
188
|
|
83%
|
% of Net Sales
|
|
13.9%
|
|
7.9%
|
|
6 pts
|
|
|
|
|
|
|
|
NET INTEREST EXPENSE
|
|
14
|
|
28
|
|
(50%)
|
|
|
|
|
|
|
|
OTHER EXPENSE (INCOME), NET
|
|
2
|
|
(3,169)
|
|
(100%)
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
|
328
|
|
3,329
|
|
(90%)
|
|
|
|
|
|
|
|
INCOME TAX EXPENSE (BENEFIT)
|
|
55
|
|
(58)
|
|
(195%)
|
% of Income from Continuing Operations before Income Taxes
|
|
16.8%
|
|
(1.7%)
|
|
18.5 pts
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS
|
|
273
|
|
3,387
|
|
(92%)
|
|
|
|
|
|
|
|
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX A
|
|
(1)
|
|
(7)
|
|
(86%)
|
|
|
|
|
|
|
|
NET INCOME
|
|
$272
|
|
$3,380
|
|
(92%)
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE
|
|
|
|
|
|
|
Basic
|
|
$0.50
|
|
$6.17
|
|
(92%)
|
Diluted
|
|
$0.50
|
|
$6.13
|
|
(92%)
|
|
|
|
|
|
|
|
LOSS FROM DISCONTINUED OPERATIONS PER COMMON SHARE
|
|
|
|
|
|
|
Basic
|
|
$0.00
|
|
($0.01)
|
|
(100%)
|
Diluted
|
|
($0.01)
|
|
($0.01)
|
|
0%
|
|
|
|
|
|
|
|
NET INCOME PER COMMON SHARE
|
|
|
|
|
|
|
Basic
|
|
$0.50
|
|
$6.16
|
|
(92%)
|
Diluted
|
|
$0.49
|
|
$6.12
|
|
(92%)
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
|
|
|
|
|
|
|
Basic
|
|
541
|
|
549
|
|
|
Diluted
|
|
551
|
|
552
|
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING INCOME (excluding special items)
|
|
$406
|
B
|
$249
|
B
|
63%
|
ADJUSTED PRE-TAX INCOME FROM CONTINUING OPERATIONS (excluding
special items)
|
|
$390
|
B
|
$248
|
B
|
57%
|
ADJUSTED INCOME FROM CONTINUING OPERATIONS (excluding special
items)
|
|
$318
|
B
|
$199
|
B
|
60%
|
ADJUSTED DILUTED EPS FROM CONTINUING OPERATIONS (excluding
special items)
|
|
$0.58
|
B
|
$0.36
|
B
|
61%
|
|
|
|
|
|
|
|
A Operating results from Baxalta Incorporated
("Baxalta") are classified as discontinued operations for all
periods presented.
|
B Refer to page 9 for a description of the
adjustments and a reconciliation to GAAP measures.
|
|
|
|
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BAXTER INTERNATIONAL INC.
|
Note to Consolidated Statements of Income
|
Three Months Ended March 31, 2017 and 2016
|
Description of Adjustments and Reconciliation of GAAP to Non-GAAP
Measures
|
(unaudited)
|
(in millions, except per share and percentage data)
|
|
|
|
|
|
|
|
|
|
The company's GAAP results for the three months ended March 31, 2017
and 2016 included special items which impacted the GAAP measures as
follows:
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
Gross Margin
|
|
$1,042
|
|
$965
|
|
8%
|
|
|
Intangible asset amortization expense 1
|
|
38
|
|
40
|
|
|
|
|
Business optimization items 2
|
|
16
|
|
12
|
|
|
|
|
Product-related items 4
|
|
-
|
|
(12)
|
|
|
Adjusted Gross Margin
|
|
$1,096
|
|
$1,005
|
|
9%
|
% of Net Sales
|
|
44.3%
|
|
42.3%
|
|
2 pts
|
|
|
|
|
|
|
|
|
|
Marketing and Administrative Expenses
|
|
$570
|
|
$641
|
|
(11%)
|
|
|
Business optimization items 2
|
|
(15)
|
|
(3)
|
|
|
|
|
Baxalta separation-related costs 3
|
|
(7)
|
|
(18)
|
|
|
|
|
Historical rebate and discount adjustments 5
|
|
12
|
|
-
|
|
|
Adjusted Marketing and Administrative Expenses
|
|
$560
|
|
$620
|
|
(10%)
|
% of Net Sales
|
|
22.6%
|
|
26.1%
|
|
(3.5 pts)
|
|
|
|
|
|
|
|
|
|
Research and Development Expenses
|
|
$128
|
|
$136
|
|
(6%)
|
|
|
Business optimization items 2
|
|
2
|
|
-
|
|
|
Adjusted Research and Development Expenses
|
|
$130
|
|
$136
|
|
(4%)
|
% of Net Sales
|
|
5.3%
|
|
5.7%
|
|
(0.4 pts)
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
$344
|
|
$188
|
|
83%
|
|
|
Impact of special items
|
|
62
|
|
61
|
|
|
Adjusted Operating Income
|
|
$406
|
|
$249
|
|
63%
|
% of Net Sales
|
|
16.4%
|
|
10.5%
|
|
5.9 pts
|
|
|
|
|
|
|
|
|
|
Other Expense (Income), Net
|
|
$2
|
|
$(3,169)
|
|
(100%)
|
|
|
Net realized gains on Retained Shares transactions 6
|
|
-
|
|
3,243
|
|
|
|
|
Loss on debt extinguishment 7
|
|
-
|
|
(101)
|
|
|
Adjusted Other Expense (Income), Net
|
|
$2
|
|
$(27)
|
|
(107%)
|
|
|
|
|
|
|
|
|
|
Pre-Tax Income from Continuing Operations
|
|
$328
|
|
$3,329
|
|
(90%)
|
|
|
Impact of special items
|
|
62
|
|
(3,081)
|
|
|
Adjusted Pre-Tax Income from Continuing Operations
|
|
$390
|
|
$248
|
|
57%
|
|
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
$55
|
|
$(58)
|
|
(195%)
|
|
|
Impact of special items
|
|
17
|
|
107
|
|
|
Adjusted Income Tax Expense
|
|
$72
|
|
$49
|
|
47%
|
% of Adjusted Pre-Tax Income from Continuing Operations
|
|
18.5%
|
|
19.8%
|
|
(1.3 pts)
|
|
|
|
|
|
|
|
|
|
Income from Continuing Operations
|
|
$273
|
|
$3,387
|
|
(92%)
|
|
|
Impact of special items
|
|
45
|
|
(3,188)
|
|
|
Adjusted Income from Continuing Operations
|
|
$318
|
|
$199
|
|
60%
|
|
|
|
|
|
|
|
|
|
Diluted EPS from Continuing Operations
|
|
$0.50
|
|
$6.13
|
|
(92%)
|
|
|
Impact of special items
|
|
0.08
|
|
(5.77)
|
|
|
Adjusted Diluted EPS from Continuing Operations
|
|
$0.58
|
|
$0.36
|
|
61%
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
|
|
|
Diluted
|
|
551
|
|
552
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
The company's results in 2017 and 2016 included intangible asset
amortization expense of $38 million ($28 million, or $0.05 per
diluted share, on an after-tax basis) and $40 million ($29 million,
or $0.05 per diluted share, on an after-tax basis), respectively.
|
|
|
|
2
|
|
The company's results in 2017 included a net charge of $29 million
($21 million, or $0.04 per diluted share, on an after-tax basis)
related to business optimization initiatives. This included a net
charge of $3 million related to restructuring activities, $21
million of costs to implement business optimization programs which
primarily included external consulting and project employee costs,
and $5 million of accelerated depreciation associated with
facilities to be closed. The $3 million of net restructuring charges
($2 million, or $0.00 per diluted share, on an after-tax basis)
included net $2 million of employee termination costs and $1 million
related to contract termination costs.
|
|
|
|
|
|
The company's results in 2016 included a net charge of $15 million
($10 million, or $0.02 per diluted share, on an after-tax basis)
related to business optimization initiatives. This included a net
charge of $4 million related to restructuring activities, $4 million
of costs to implement business optimization programs which primarily
included external consulting fees, and $7 million of Gambro
integration costs. The $4 million of net restructuring charges ($2
million, or $0.00 per diluted share, on an after-tax basis) related
to employee termination costs.
|
|
|
|
3
|
|
The company's results in 2017 and 2016 included costs incurred
related to the Baxalta separation totaling $7 million ($5 million,
or $0.01 per diluted share, on an after-tax basis) and $18 million
($12 million, or $0.02 per diluted share, on an after-tax basis),
respectively.
|
|
|
|
4
|
|
The company's results in 2016 included a benefit of $12 million ($7
million, or $0.01 per diluted share, on an after-tax basis) related
to an adjustment to the SIGMA SPECTRUM infusion pump reserves.
|
|
|
|
5
|
|
The company's results in 2017 included a benefit of $12 million ($9
million, or $0.02 per diluted share, on an after-tax basis) related
to an adjustment to the company's historical rebates and discount
reserves.
|
|
|
|
6
|
|
The company's results in 2016 included net realized gains of $3.2
billion ($3.3 billion, or $5.97 per diluted share, on an after-tax
basis), related to the debt-for-equity exchanges of the company's
retained shares in Baxalta for certain company indebtedness
(together the "Retained Shares transactions"). A tax benefit of $54
million was recognized as a result of the Retained Shares
transactions.
|
|
|
|
7
|
|
The company's results in 2016 included a net debt extinguishment
loss totaling $101 million ($65 million, or $0.12 per diluted
share, on an after-tax basis) related to the March 2016
debt-for-equity exchange for certain company indebtedness in a
Retained Shares transaction.
|
|
|
|
|
|
|
|
|
|
For more information on the company's use of non-GAAP financial
measures in this press release, please see the company's Current
Report on Form 8-K filed with the Securities and Exchange Commission
on the date of this press release.
|
|
|
BAXTER INTERNATIONAL INC.
|
Net Sales
|
Periods Ending March 31, 2017 and 2016
|
(unaudited)
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
|
Q1
|
|
|
% Growth @
|
|
|
% Growth @
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
Actual Rates
|
|
|
Constant Rates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Renal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
|
|
|
$216
|
|
|
$201
|
|
|
7%
|
|
|
7%
|
International
|
|
|
|
|
|
|
680
|
|
|
697
|
|
|
(2%)
|
|
|
(1%)
|
Total Renal
|
|
|
|
|
|
|
$896
|
|
|
$898
|
|
|
(0%)
|
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospital Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
|
|
|
$887
|
|
|
$791
|
|
|
12%
|
|
|
12%
|
International
|
|
|
|
|
|
|
692
|
|
|
686
|
|
|
1%
|
|
|
2%
|
Total Hospital Products
|
|
|
|
|
|
|
$1,579
|
|
|
$1,477
|
|
|
7%
|
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Baxter International Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
|
|
|
$1,103
|
|
|
$992
|
|
|
11%
|
|
|
11%
|
International
|
|
|
|
|
|
|
1,372
|
|
|
1,383
|
|
|
(1%)
|
|
|
0%
|
Total Baxter
|
|
|
|
|
|
|
$2,475
|
|
|
$2,375
|
|
|
4%
|
|
|
5%
|
|
|
BAXTER INTERNATIONAL INC.
|
Sales by Franchise
|
Periods Ending March 31, 2017 and 2016
|
(unaudited)
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
|
Q1
|
|
|
% Growth @
|
|
|
% Growth @
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
Actual Rates
|
|
|
Constant Rates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Renal 1
|
|
|
|
|
|
$896
|
|
|
$898
|
|
|
(0%)
|
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospital Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fluid Systems 2
|
|
|
|
|
|
$585
|
|
|
$524
|
|
|
12%
|
|
|
12%
|
Integrated Pharmacy Solutions 3
|
|
|
|
|
|
552
|
|
|
556
|
|
|
(1%)
|
|
|
0%
|
Surgical Care 4
|
|
|
|
|
|
334
|
|
|
305
|
|
|
10%
|
|
|
10%
|
Other 5
|
|
|
|
|
|
108
|
|
|
92
|
|
|
17%
|
|
|
18%
|
Total Hospital Products
|
|
|
|
|
|
$1,579
|
|
|
$1,477
|
|
|
7%
|
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Baxter
|
|
|
|
|
|
$2,475
|
|
|
$2,375
|
|
|
4%
|
|
|
5%
|
1
|
|
Includes sales of the company's peritoneal dialysis, hemodialysis
and continuous renal replacement therapies.
|
|
|
|
2
|
|
Includes sales of the company's IV therapies, infusion pumps and
administration sets.
|
|
|
|
3
|
|
Includes sales of the company's premixed and oncology drug
platforms, nutrition products and pharmacy compounding services.
|
|
|
|
4
|
|
Includes sales of the company's inhaled anesthesia products as well
as biological products and medical devices used in surgical
procedures for hemostasis, tissue sealing and adhesion prevention.
|
|
|
|
5
|
|
Includes sales primarily from the company's pharmaceutical
partnering business.
|
|
|
BAXTER INTERNATIONAL INC.
|
Franchise Sales by U.S. and International
|
Periods Ending March 31, 2017 and 2016
|
(unaudited)
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2017
|
|
|
|
Q1 2016
|
|
|
|
% Growth
|
|
|
|
|
U.S.
|
|
International
|
|
Total
|
|
|
|
U.S.
|
|
International
|
|
Total
|
|
|
|
U.S.
|
|
International
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Renal
|
|
|
|
$216
|
|
$680
|
|
$896
|
|
|
|
$201
|
|
$697
|
|
$898
|
|
|
|
7%
|
|
(2%)
|
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospital Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fluid Systems
|
|
|
|
$359
|
|
$226
|
|
$585
|
|
|
|
$298
|
|
$226
|
|
$524
|
|
|
|
20%
|
|
0%
|
|
12%
|
Integrated Pharmacy Solutions
|
|
|
|
266
|
|
286
|
|
552
|
|
|
|
264
|
|
292
|
|
556
|
|
|
|
1%
|
|
(2%)
|
|
(1%)
|
Surgical Care
|
|
|
|
202
|
|
132
|
|
334
|
|
|
|
181
|
|
124
|
|
305
|
|
|
|
12%
|
|
6%
|
|
10%
|
Other
|
|
|
|
60
|
|
48
|
|
108
|
|
|
|
48
|
|
44
|
|
92
|
|
|
|
25%
|
|
9%
|
|
17%
|
Total Hospital Products
|
|
|
|
$887
|
|
$692
|
|
$1,579
|
|
|
|
$791
|
|
$686
|
|
$1,477
|
|
|
|
12%
|
|
1%
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Baxter
|
|
|
|
$1,103
|
|
$1,372
|
|
$2,475
|
|
|
|
$992
|
|
$1,383
|
|
$2,375
|
|
|
|
11%
|
|
(1%)
|
|
4%
|
|
|
BAXTER INTERNATIONAL INC.
|
Free Cash Flow Reconciliation
|
(unaudited)
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
Cash flows from operations - continuing operations
|
|
|
|
|
|
$206
|
|
|
($174)
|
Capital expenditures
|
|
|
|
|
|
(123)
|
|
|
(184)
|
Free cash flow - continuing operations
|
|
|
|
|
|
$83
|
|
|
($358)
|
|
|
BAXTER INTERNATIONAL INC.
|
Reconciliation of Non-GAAP Financial Measure
|
Change in Net Sales As Reported to Operational Sales
|
From The Three Months Ended March 31, 2016 to The Three Months
Ended March 31, 2017
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2017
|
|
|
|
|
|
|
Net sales
|
|
US
|
|
Product
|
|
|
|
|
|
Operational
|
|
|
|
|
|
|
As Reported
|
|
Cyclophosphamide
|
|
Exits
|
|
|
FX
|
|
|
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Renal
|
|
|
|
|
|
0%
|
|
0%
|
|
1%
|
|
|
1%
|
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospital Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fluid Systems
|
|
|
|
|
|
12%
|
|
0%
|
|
1%
|
|
|
0%
|
|
|
13%
|
Integrated Pharmacy Solutions
|
|
|
|
|
|
-1%
|
|
3%
|
|
1%
|
|
|
1%
|
|
|
4%
|
Surgical Care
|
|
|
|
|
|
10%
|
|
0%
|
|
1%
|
|
|
0%
|
|
|
11%
|
Other
|
|
|
|
|
|
17%
|
|
0%
|
|
0%
|
|
|
1%
|
|
|
18%
|
Total Hospital Products
|
|
|
|
|
|
7%
|
|
2%
|
|
1%
|
|
|
0%
|
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Baxter International Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
|
|
11%
|
|
2%
|
|
0%
|
|
|
0%
|
|
|
13%
|
International
|
|
|
|
|
|
-1%
|
|
0%
|
|
2%
|
|
|
1%
|
|
|
2%
|
Total Baxter
|
|
|
|
|
|
4%
|
|
1%
|
|
1%
|
|
|
1%
|
|
|
7%
|
|
|
BAXTER INTERNATIONAL INC.
|
Reconciliation of Non-GAAP Financial Measure
|
Projected 2017 Adjusted Earnings Per Share and Projected GAAP
Earnings Per Share
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 Earnings Per Share Guidance
|
|
|
|
|
|
Q2 2017
|
|
|
|
|
|
FY 2017
|
Earnings per Diluted Share - Adjusted
|
|
|
|
|
|
$0.55 - $0.57
|
|
|
|
|
|
$2.20 - $2.28
|
Estimated intangible asset amortization
|
|
|
|
|
|
$0.05
|
|
|
|
|
|
$0.20
|
Estimated business optimization charges
|
|
|
|
|
|
$0.15 - $0.18
|
|
|
|
|
|
$0.27 - $0.33
|
Estimated Baxalta separation-related expenses
|
|
|
|
|
|
$0.01
|
|
|
|
|
|
$0.02
|
Historical rebate and discount adjustments
|
|
|
|
|
|
-
|
|
|
|
|
|
($0.01)
|
Earnings per Diluted Share - GAAP
|
|
|
|
|
|
$0.31 - $0.36
|
|
|
|
|
|
$1.66 - $1.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170426005688/en/
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