Bausch & Lomb 1999 Annual Report

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Advanced Products for Contact Lens Wear Over the last three years, Bausch & Lomb’s full line of products for the contact lens wearer has been transformed with the introduction of innovative new products. Perhaps the most revolutionary is PureVision, a breakthrough contact lens designed to be worn continuously from seven days up to a month at a time, depending on regulatory approvals. Its patented material offers an optimal balance of attributes for healthy and comfortable extended wear. New products such as PureVision lenses have reestablished Bausch & Lomb as the technology leader in vision care. During 1999, we dramatically ramped up our investment in research and development (R&D), with spending increasing 27% to 5.6% of net sales. Our focus on technology generated accelerated revenue growth, with our ongoing businesses posting a healthy 10% gain over 1998. Products introduced over the past 24 months drove this expansion, accounting for more than 20% of total revenues. Our emphasis on improving the top line through higher margin eye care products, combined with aggressive product and administrative cost reduction programs, has led to a renewed focus on profitable growth. For the year, net earnings and earnings per share from continuing operations before one-time events increased 31% and 27%, respectively. The divestiture of non-strategic businesses also significantly strengthened the financial health of the company. The roughly $1 billion in proceeds we received reduced our debt to capital ratio to 45.3% (from 63.5% in 1998) and significantly enhanced our ability to fund future acquisition opportunities to accelerate further growth and add shareholder value. We are using a portion of the proceeds to buy back up to five million shares of stock because we believe it's a great investment that will improve the return to our shareholders, a goal of any EVA company. As our financial strength and performance have improved, so too has our stock price. Over the past two years, the value of Bausch & Lomb shares has increased at a compound rate “Our goals are in focus” See the future 2 Bausch & Lomb
Increased R&D Driving Revenue Growth Percent of consolidated sales New & innovative products will continue to drive growth. Research & Development Expense 4.5 4.8 5.6 97 98 99 See the future 3 Bausch & Lomb Sales from Products Introduced Since 1997 2.7 11.4 20.6 97 98 99 Timing: Delivering new technologies We’re in a race against time. Time to bring new and better products to market. To win that race we’ve stepped up our efforts in research and development, investing more, and investing smarter. Our efforts are paying off in innovative new products that are propelling our growth. In our vision care business alone, almost 20% of 1999 revenues came from products introduced in just the past two years. We are committed to investing more each year to develop new technologies, because time doesn’t stand still.
Page 1 and 2: “See the future” Bausch & Lomb
Page 3 and 4: At a Glance Key Products Vision Car
Page 5: Dear Fellow Shareholders: We entere
Page 9 and 10: 20/10 vision can be realized sooner
Page 11 and 12: The tiny Vitrasert implant pictured
Page 13 and 14: Financial Review Dollar Amounts In
Page 15 and 16: costs by streamlining functions and
Page 17 and 18: 1999 Versus 1998 Sales in markets o
Page 19 and 20: Working Capital Working capital and
Page 21 and 22: Information Concerning Forward-Look
Page 23 and 24: Statements Of Income For The Years
Page 25 and 26: Statements Of Cash Flows For The Ye
Page 27 and 28: Notes To Financial Statements Dolla
Page 29 and 30: accepted accounting principles to r
Page 31 and 32: The costs of employee terminations
Page 33 and 34: 5. Restructuring Charges And Asset
Page 35 and 36: Business Segment The following tabl
Page 37 and 38: 8. Other Short- And Long-Term Inves
Page 39 and 40: Reconciliations of the statutory U.
Page 41 and 42: Interest rate swap agreements on lo
Page 43 and 44: For amounts pertaining to postretir
Page 45 and 46: See the future 41 Bausch & Lomb 199
Page 47 and 48: Quarterly Stock Prices (unaudited)
Page 49 and 50: Report Of Independent Accountants T
Page 51: Corporate Information Internet Addr

Bausch & Lomb 1999 Annual Report

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