Revenue up 13 Percent as Reported, 10 Percent Excluding Foreign Exchange
MURRAY HILL, N.J., Jul 23, 2008 (BUSINESS WIRE) -- C. R. Bard, Inc. (NYSE: BCR) today reported 2008 second quarter
financial results. Second quarter 2008 net sales were $617.1 million,
an increase of 13 percent over the prior-year period. Excluding the
impact of foreign exchange, second quarter 2008 net sales increased 10
percent over the prior-year period.
For the second quarter 2008, net sales in the U.S. were $406.3
million and net sales outside the U.S. were $210.8 million, an
increase of 8 percent and 23 percent, respectively, over the
prior-year period. Excluding the impact of foreign exchange, second
quarter 2008 net sales outside the U.S. increased 13 percent over the
prior-year period.
For the second quarter 2008, net income was $77.9 million and
diluted earnings per share were $0.76, a decrease of 20 percent and 16
percent, respectively, as compared to second quarter 2007 results.
Adjusting for items that affect comparability between periods as
detailed in the tables below, second quarter 2008 net income was
$112.8 million and diluted earnings per share were $1.10, an increase
of 14 percent and 18 percent, respectively, as compared to second
quarter 2007 results.
Timothy M. Ring, chairman and chief executive officer, commented,
"We are pleased with our overall performance in the second quarter.
Through the strength of our diversified portfolio, we delivered
double-digit revenue growth in constant currency. Earnings results
were again strong and we continue to invest for long-term growth
through our new product and business development activities."
C. R. Bard, Inc. (www.crbard.com), headquartered in Murray Hill,
NJ, is a leading multinational developer, manufacturer and marketer of
innovative, life-enhancing medical technologies in the fields of
vascular, urology, oncology and surgical specialty products.
This press release may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995,
which are based on management's current expectations, the accuracy of
which is necessarily subject to risks and uncertainties. These
statements are not historical in nature and use words such as
"anticipate", "estimate", "expect", "project", "intend", "forecast",
"plan", "believe", and other words of similar meaning in connection
with any discussion of future operating or financial performance. Many
factors may cause actual results to differ materially from anticipated
results including product developments, sales efforts, income tax
matters, the outcomes of contingencies such as legal proceedings, and
other economic, business, competitive and regulatory factors. The
company undertakes no obligation to update its forward-looking
statements. Please refer to the Cautionary Statement Regarding
Forward-Looking Information in our March 31, 2008 Form 10-Q for more
detailed information about these and other factors that may cause
actual results to differ materially from those expressed or implied.
C. R. Bard, Inc.
Consolidated Statements of Income
(in thousands except per share amounts, unaudited)
Quarter Ended Six Months Ended
June 30, June 30,
------------------ ----------------------
2008 2007 2008 2007
-------- --------- ---------- -----------
Net Sales $617,100 $545,700 $1,201,100 $1,073,900
Cost and Expenses
Cost of goods sold 243,600 216,600 469,100 423,100
Marketing, selling &
administrative expense 180,800 160,500 349,700 314,200
Research and development
expense 38,200 35,100 124,000 65,200
Interest expense 3,000 3,000 6,000 5,900
Other (income) expense,
net 32,600 (8,800) 28,600 (16,200)
-------- --------- ---------- -----------
Total costs and expenses 498,200 406,400 977,400 792,200
-------- --------- ---------- -----------
Income from continuing
operations before income
taxes 118,900 139,300 223,700 281,700
-------- --------- ---------- -----------
Income tax provision 41,000 41,800 67,800 82,600
-------- --------- ---------- -----------
Income from continuing
operations 77,900 97,500 155,900 199,100
-------- --------- ---------- -----------
Income on discontinued
operations - - - -
-------- --------- ---------- -----------
Net income $ 77,900 $ 97,500 $ 155,900 $ 199,100
======== ========= ========== ===========
Basic earnings per share:
Income from continuing
operations $ 0.78 $ 0.94 $ 1.56 $ 1.93
Net income per share $ 0.78 $ 0.94 $ 1.56 $ 1.93
======== ========= ========== ===========
Diluted earnings per share:
Income from continuing
operations $ 0.76 $ 0.91 $ 1.52 $ 1.86
Net income per share $ 0.76 $ 0.91 $ 1.52 $ 1.86
======== ========= ========== ===========
Wt. avg. common shares
outstanding - basic 99,300 103,600 99,700 103,400
Wt. avg. common shares
outstanding - diluted 102,400 106,900 102,900 106,800
Product Group Summary of Net Sales
(in thousands, unaudited)
Quarter Ended June 30,
-------------------------------------
Constant
2008 2007 Change Currency
-------------------------------------
Vascular $163,600 $135,900 20% 14%
Urology 176,400 160,900 10% 8%
Oncology 163,700 141,900 15% 13%
Surgical Specialties 88,900 86,500 3% -
Other 24,500 20,500 20% 18%
---------------------
Net sales $617,100 $545,700 13%
---------------------
FX impact 16,100
---------------------
Constant Currency $617,100 $561,800 10%
=====================
Six Months Ended June 30,
--------------------------------------
Constant
2008 2007 Change Currency
--------------------------------------
Vascular $314,000 $263,600 19% 14%
Urology 345,100 316,100 9% 7%
Oncology 313,700 269,700 16% 14%
Surgical Specialties 181,900 183,600 (1)% (3)%
Other 46,400 40,900 13% 12%
---------------------
Net sales $1,201,100 $1,073,900 12%
---------------------
FX impact 28,200
---------------------
Constant Currency $1,201,100 $1,102,100 9%
=====================
Reconciliation of Earnings
(in millions except per share amounts, unaudited)
Quarter Ended June 30, 2008
------------------------------------------------------
Cost Other Income Diluted
of Research & (Income) Tax Net Earnings
Goods Development Expense, Provision Income Per
Sold Expense Net (Benefit) (Loss) Share
------------------------------------------------------
GAAP Basis $243.6 $38.2 $32.6 $41.0 $77.9 $0.76
Items that
affect
comparability
of results
between
periods:
---------------
Asset
disposition (3.7) - (36.8) 5.6 34.9
------------------------------------------------------
Total (3.7) - (36.8) 5.6 34.9 0.34
------------------------------------------------------
Adjusted Basis $239.9 $38.2 $(4.2) $46.6 $112.8 $1.10
======================================================
Quarter Ended June 30, 2007
------------------------------------------------------
Cost Other Income Diluted
of Research & (Income) Tax Net Earnings
Goods Development Expense, Provision Income Per
Sold Expense Net (Benefit) (Loss) Share
------------------------------------------------------
GAAP Basis $216.6 $35.1 $(8.8) $41.8 $97.5 $0.91
Items that
affect
comparability
of results
between
periods:
---------------
Purchased
research &
development - (1.6) - 0.1 1.5
------------------------------------------------------
Total - (1.6) - 0.1 1.5 0.02
------------------------------------------------------
Adjusted Basis $216.6 $33.5 $(8.8) $41.9 $99.0 $0.93
======================================================
Six Months Ended June 30, 2008
------------------------------------------------------
Cost Other Income Diluted
of Research & (Income) Tax Net Earnings
Goods Development Expense, Provision Income Per
Sold Expense Net (Benefit) (Loss) Share
------------------------------------------------------
GAAP Basis $469.1 $124.0 $28.6 $67.8 $155.9 $1.52
Items that
affect
comparability
of results
between
periods:
---------------
Asset
disposition (3.7) - (36.8) 5.6 34.9
Purchased
research &
development - (49.3) - 18.2 31.1
------------------------------------------------------
Total (3.7) (49.3) (36.8) 23.8 66.0 0.64
------------------------------------------------------
Adjusted Basis $465.4 $74.7 $(8.2) $91.6 $221.9 $2.16
======================================================
Six Months Ended June 30, 2007
------------------------------------------------------
Cost Other Income Diluted
of Research & (Income) Tax Net Earnings
Goods Development Expense, Provision Income Per
Sold Expense Net (Benefit) (Loss) Share
------------------------------------------------------
GAAP Basis $423.1 $65.2 $(16.2) $82.6 $199.1 $1.86
Items that
affect
comparability
of results
between
periods:
---------------
Purchased
research &
development - (1.6) - 0.1 1.5
------------------------------------------------------
Total - (1.6) - 0.1 1.5 0.02
------------------------------------------------------
Adjusted Basis $423.1 $63.6 $(16.2) $82.7 $200.6 $1.88
======================================================
Notes
-- For the second quarter 2008, a charge of $40.5 million pretax
for an asset disposition affected the comparability of results
between periods. The effect of this charge decreased net
income by $34.9 million, or $0.34 diluted earnings per share.
-- For the second quarter 2007, a charge of $1.6 million pretax
for purchased research and development affected the
comparability of results between periods. The effect of this
charge decreased net income by $1.5 million, or $0.02 diluted
earnings per share.
-- For the six months ended June 30, 2008, charges of $49.3
million pretax for purchased research and development and
$40.5 million pretax for an asset disposition affected the
comparability of results between periods. The effect of these
charges decreased net income by $66.0 million, or $0.64
diluted earnings per share.
-- For the six months ended June 30, 2007, a charge of $1.6
million pretax for purchased research and development affected
the comparability of results between periods. The effect of
this charge decreased net income by $1.5 million, or $0.02
diluted earnings per share.
This press release contains financial measures that are not
calculated in accordance with United States generally accepted
accounting principles (GAAP). These non-GAAP financial measures are
reconciled to their most directly comparable GAAP measures in the
above tables.
This press release includes net sales excluding the impact of
foreign exchange. The company analyzes net sales on a constant
currency basis to better measure the comparability of results between
periods. Because changes in foreign currency exchange rates have a
non-operating impact on net sales, the company believes that
evaluating growth in net sales on a constant currency basis provides
an additional and meaningful assessment of net sales to both
management and the company's investors.
In addition, this press release includes the following non-GAAP
measures: (1) cost of goods sold excluding a charge for an asset
disposition; (2) research & development expense excluding payments for
purchased research and development; (3) other (income) expense, net
excluding a charge for an asset disposition; (4) the tax effect of the
items set forth in (1) through (3) above; (5) net income excluding the
items set forth in (1) through (4) above; and (6) diluted earnings per
share excluding the items set forth in (1) through (4) above.
The company excluded the items described above because they may
cause certain statements of income categories not to be indicative of
ongoing operating results, and therefore affect the comparability of
results between periods. The company therefore believes that these
non-GAAP measures provide an additional and meaningful assessment of
the company's ongoing operating performance. Because the company has
historically reported these non-GAAP results to the investment
community, management also believes that the inclusion of these
non-GAAP measures provides consistency in its financial reporting and
facilitates investors' understanding of the company's historic
operating trends by providing an additional basis for comparisons to
prior periods. Management uses these non-GAAP measures: (1) to
establish financial and operational goals; (2) to monitor the
company's actual performance in relation to its business plan and
operating budgets; (3) to evaluate the company's core operating
performance and understand key trends within the business; and (4) as
part of several components it considers in determining incentive
compensation.
Management recognizes that the use of these non-GAAP measures has
limitations, including the fact that they may not be comparable with
similar non-GAAP financial measures used by other companies and that
management must exercise judgment in determining which types of
charges or other items should be excluded from the non-GAAP financial
information. Management compensates for these limitations by providing
full disclosure of each non-GAAP financial measure and a
reconciliation to the most directly comparable GAAP financial measure.
All non-GAAP financial measures are intended to supplement the
applicable GAAP disclosures and should not be considered in isolation
from, or as a replacement for, financial information prepared in
accordance with GAAP. For a reconciliation of these non-GAAP measures
to the most comparable GAAP measures, please see the above tables.
SOURCE: C. R. Bard, Inc.
C. R. Bard, Inc.
Investor Relations:
Eric J. Shick, 908-277-8413
Vice President, Investor Relations
or
Media Relations:
Holly P. Glass, 703-754-2848
Vice President, Government and Public Relations
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