Bard Announces Fourth Quarter Results Revenue up 9 Percent as Reported, 12 Percent Excluding Foreign Exchange
MURRAY HILL, N.J.--(BUSINESS WIRE)--
C. R. Bard, Inc. (NYSE: BCR) today reported 2008 fourth quarter
financial results. Fourth quarter 2008 net sales were $634.2 million, an
increase of 9 percent over the prior-year period. Excluding the impact
of foreign exchange, fourth quarter 2008 net sales increased 12 percent
over the prior-year period.
For the fourth quarter 2008, net sales in the U.S. were $436.3 million
and net sales outside the U.S. were $197.9 million, an increase of 11
percent and 4 percent, respectively, over the prior-year period.
Excluding the impact of foreign exchange, fourth quarter 2008 net sales
outside the U.S. increased 14 percent over the prior-year period.
Net sales for the full year 2008 were $2,452.1 million, an increase of
11 percent over the prior-year period. Excluding the impact of foreign
exchange, full year 2008 net sales increased 10 percent over the
prior-year period.
For the fourth quarter 2008, net income was $149.4 million and diluted
earnings per share were $1.47, an increase of 42 percent and 46 percent,
respectively, as compared to fourth quarter 2007 results. Adjusting for
items that affect comparability between periods as detailed in the
tables below, fourth quarter 2008 net income was $121.1 million and
diluted earnings per share were $1.19, an increase of 15 percent and 18
percent, respectively, as compared to fourth quarter 2007 results.
For the full year 2008, net income was $416.5 million and diluted
earnings per share were $4.06, an increase of 2 percent and 6 percent,
respectively, as compared to full year 2007 results. Adjusting for items
that affect comparability between periods, full year 2008 net income was
$455.4 million and diluted earnings per share were $4.44, an increase of
13 percent and 16 percent, respectively, as compared to full year 2007
results.
Timothy M. Ring, chairman and chief executive officer, commented, “We
are pleased to report strong revenue and earnings results for the fourth
quarter and full year 2008. Bard has built a consistent record of
performance, delivering adjusted EPS growth above our 14 percent target
for six consecutive years. We have achieved this through successful
product innovation, a commitment to market leadership and the talent and
hard work of our employees around the world. The strength of our broad
product portfolio and our healthy financial condition position us well
for continued success.”
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 September 30,
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
(dollars in thousands except per share amounts, unaudited)
Quarter Ended
Twelve Months Ended
December 31,
December 31,
2008
2007
2008
2007
Net sales
$
634,200
$
583,300
$
2,452,100
$
2,202,000
Costs and expenses
Cost of goods sold
243,500
227,700
952,100
864,500
Marketing, selling & administrative expense
179,200
169,700
709,500
644,800
Research and development expense
40,000
36,600
199,100
135,800
Interest expense
3,000
3,100
12,100
11,900
Other expense (income), net
2,700
(7,200
)
29,400
(32,300
)
Total costs and expenses
468,400
429,900
1,902,200
1,624,700
Income from continuing operations before income taxes
165,800
153,400
549,900
577,300
Income tax provision
16,400
48,200
133,400
170,900
Income from continuing operations
149,400
105,200
416,500
406,400
Income from discontinued operations
-
-
-
-
Net income
$
149,400
$
105,200
$
416,500
$
406,400
Basic earnings per share:
Income from continuing operations
$
1.50
$
1.04
$
4.19
$
3.96
Net income per share
$
1.50
$
1.04
$
4.19
$
3.96
Diluted earnings per share:
Income from continuing operations
$
1.47
$
1.01
$
4.06
$
3.84
Net income per share
$
1.47
$
1.01
$
4.06
$
3.84
Wt. avg. common shares outstanding - basic
99,300
101,000
99,500
102,700
Wt. avg. common shares outstanding - diluted
101,900
104,100
102,500
105,900
Product Group Summary of Net Sales
(dollars in thousands, unaudited)
Quarter Ended December 31,
Twelve Months Ended December 31,
Constant
Constant
2008
2007
Change
Currency
2008
2007
Change
Currency
Vascular
$
168,500
$
141,900
19
%
23
%
$
643,100
$
539,600
19
%
17
%
Urology
188,900
176,400
7
%
10
%
708,500
658,900
8
%
7
%
Oncology
163,600
148,000
11
%
13
%
646,600
558,600
16
%
15
%
Surgical Specialties
95,500
96,500
-1
%
1
%
368,200
363,500
1
%
-
Other
17,700
20,500
-14
%
-11
%
85,700
81,400
5
%
5
%
Net sales
$
634,200
$
583,300
9
%
$
2,452,100
$
2,202,000
11
%
FX impact
(16,400
)
22,700
Constant Currency
$
634,200
$
566,900
12
%
$
2,452,100
$
2,224,700
10
%
Reconciliation of Earnings
(dollars in millions except per share amounts, unaudited)
Quarter Ended December 31, 2008
Cost of Goods Sold
Research & Development Expense
Other Expense (Income), Net
Income Tax Provision (Benefit)
Net Income (Loss)
Diluted Earnings Per Share
GAAP Basis
$
243.5
$
40.0
$
2.7
$
16.4
$
149.4
$
1.47
Items that affect comparability of
results between periods:
Tax adjustment
-
-
-
28.3
(28.3
)
Total
-
-
-
28.3
(28.3
)
(0.28
)
Adjusted Basis
$
243.5
$
40.0
$
2.7
$
44.7
$
121.1
$
1.19
Quarter Ended December 31, 2007
Cost of Goods Sold
Research & Development Expense
Other Expense (Income), Net
Income Tax Provision (Benefit)
Net Income (Loss)
Diluted Earnings Per Share
GAAP Basis
$
227.7
$
36.6
$
(7.2
)
$
48.2
$
105.2
$
1.01
Adjusted Basis
$
227.7
$
36.6
$
(7.2
)
$
48.2
$
105.2
$
1.01
Twelve Months Ended December 31, 2008
Cost of Goods Sold
Research & Development Expense
Other Expense (Income), Net
Income Tax Provision (Benefit)
Net Income (Loss)
Diluted Earnings Per Share
GAAP Basis
$
952.1
$
199.1
$
29.4
$
133.4
$
416.5
$
4.06
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
Reorganization costs
-
-
(1.3
)
0.5
0.8
Gain on asset sale
-
-
0.7
(0.1
)
(0.6
)
Tax adjustments
-
-
-
27.3
(27.3
)
Total
(3.7
)
(49.3
)
(37.4
)
51.5
38.9
0.38
Adjusted Basis
$
948.4
$
149.8
$
(8.0
)
$
184.9
$
455.4
$
4.44
Twelve Months Ended December 31, 2007
Cost of Goods Sold
Research & Development Expense
Other Expense (Income), Net
Income Tax Provision (Benefit)
Net Income (Loss)
Diluted Earnings Per Share
GAAP Basis
$
864.5
$
135.8
$
(32.3
)
$
170.9
$
406.4
$
3.84
Items that affect comparability of
results between periods:
Purchased research & development
-
(1.6
)
-
0.1
1.5
Tax adjustment
-
-
-
3.7
(3.7
)
Total
-
(1.6
)
-
3.8
(2.2
)
(0.02
)
Adjusted Basis
$
864.5
$
134.2
$
(32.3
)
$
174.7
$
404.2
$
3.82
Notes to Reconciliation of Earnings
For the fourth quarter 2008, a decrease in the income tax provision as
a result of the completion of the U.S. Internal Revenue Service (IRS)
examination for the tax years of 2003 and 2004 affected the
comparability of results between periods. The effect of this item
increased net income by $28.3 million, or $0.28 diluted earnings per
share.
For the fourth quarter 2007, there were no items that affected the
comparability of results between periods.
For the twelve months ended December 31, 2008, the following items
affected the comparability of results between periods: (i) a charge of
$40.5 million pretax for an asset disposition; (ii) a charge of $49.3
million pretax for purchased research and development; (iii) a charge
of $1.3 million pretax for reorganization costs; (iv) a gain of $0.7
million pretax associated with the sale of an asset; and (v) a net
decrease of $27.3 million in the income tax provision including a
decrease of $28.3 million as a result of the completion of the IRS
examination for the tax years of 2003 and 2004, offset by an increase
of $1.0 million due to a tax-related interest adjustment. The net
effect of these items decreased net income by $38.9 million, or $0.38
diluted earnings per share.
For the twelve months ended December 31, 2007, the following items
affected the comparability of results between periods: (i) a charge of
$1.6 million pretax for purchased research and development; and (ii) a
decrease in the income tax provision of $3.7 million due to changes in
certain statutory tax rates outside the United States that resulted in
the revaluation of deferred taxes. The net effect of these items
increased net income by $2.2 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 expense (income), net,
excluding charges for an asset disposition, reorganization costs and a
gain on an asset sale; (4) income tax provision excluding: a decrease
resulting from the completion of the IRS examination for the tax years
of 2003 and 2004; an increase due to a tax-related interest adjustment;
a decrease related to changes in statutory tax rates; and 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
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding C.R. Bard, Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.
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