MURRAY HILL, N.J.--(BUSINESS WIRE)--Jul. 22, 2009--
C. R. Bard, Inc. (NYSE: BCR) today reported 2009 second quarter
financial results. Second quarter 2009 net sales were $624.6 million, an
increase of 1 percent over the prior-year period. Excluding the impact
of foreign exchange, second quarter 2009 net sales increased 6 percent
over the prior-year period.
For the second quarter 2009, net sales in the U.S. were $433.6 million
and net sales outside the U.S. were $191.0 million, an increase of 7
percent and a decrease of 9 percent, respectively, over the prior-year
period. Excluding the impact of foreign exchange, second quarter 2009
net sales outside the U.S. increased 5 percent over the prior-year
period.
For the second quarter 2009, net income attributable to common
shareholders was $112.2 million and diluted earnings per share available
to common shareholders were $1.11, an increase of 44 percent and 46
percent, respectively, as compared to second quarter 2008 results.
Adjusting for items that affect comparability between periods as
detailed in the tables below, second quarter 2009 net income
attributable to common shareholders was $124.2 million and diluted
earnings per share available to common shareholders were $1.23, an
increase of 10 percent and 12 percent, respectively, as compared to
second quarter 2008 results.
Timothy M. Ring, chairman and chief executive officer, commented, “We
delivered another quarter of solid adjusted EPS growth despite
continuing macroeconomic challenges. We are carefully managing our
discretionary expenses while continuing to invest in R&D and business
development to support our growth objectives. We believe that product
leadership is the key to growth in our markets, and our commitment to
this strategy remains unchanged.”
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, 2009
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 and shares in thousands except per share amounts, unaudited)
Quarter Ended
Six Months Ended
June 30,
June 30,
2009
2008
2009
2008
Net sales
$
624,600
$
617,100
$
1,221,000
$
1,201,100
Costs and expenses
Cost of goods sold
238,600
242,900
462,900
468,100
Marketing, selling and administrative expense
169,900
180,800
334,200
349,700
Research and development expense
41,700
38,200
78,100
124,000
Interest expense
3,000
3,000
6,000
6,000
Other (income) expense, net
7,600
32,600
16,900
28,600
Total costs and expenses
460,800
497,500
898,100
976,400
Income from operations before income taxes
163,800
119,600
322,900
224,700
Income tax provision
51,400
41,000
97,300
67,800
Net income
112,400
78,600
225,600
156,900
Net income attributable to noncontrolling interest
200
700
900
1,000
Net income attributable to common shareholders
$
112,200
$
77,900
$
224,700
$
155,900
Basic earnings per share available to common shareholders (1)
$
1.13
$
0.77
$
2.25
$
1.54
Diluted earnings per share available to common shareholders (1)
$
1.11
$
0.76
$
2.22
$
1.51
Wt. avg. common shares outstanding - basic
98,500
99,300
98,900
99,700
Wt. avg. common and common equivalent shares outstanding - diluted
99,600
101,400
100,300
101,900
(1) Reflects the retrospective adoption of FASB Staff Position
("FSP") No. EITF 03-6-1, Determining Whether Instruments Granted
in Share-Based Payment Transactions Are Participating Securities.
See Notes to Earnings per Share included within this press release
for additional information.
Product Group Summary of Net Sales
(dollars in thousands, unaudited)
Quarter Ended June 30,
Six Months Ended June 30,
Constant
Constant
2009
2008
Change
Currency
2009
2008
Change
Currency
Vascular
$
169,100
$
163,600
3%
11%
$
326,500
$
314,000
4%
11%
Urology
174,700
176,400
-1%
3%
337,500
345,100
-2%
2%
Oncology
167,200
163,700
2%
6%
328,200
313,700
5%
8%
Surgical Specialties
91,900
88,900
3%
8%
186,000
181,900
2%
6%
Other
21,700
24,500
-11%
-7%
42,800
46,400
-8%
-4%
Net sales
$
624,600
$
617,100
1%
$
1,221,000
$
1,201,100
2%
Foreign exchange impact
(29,100)
(51,600)
Constant Currency
$
624,600
$
588,000
6%
$
1,221,000
$
1,149,500
6%
Reconciliation of Earnings
(dollars in millions except per share amounts, unaudited)
Quarter Ended June 30, 2009
Diluted
Net
Earnings
Marketing,
Income
per Share
Cost of
Selling and
Research &
Other
Attributable
Available
Goods
Administrative
Development
(Income)
Income
to Common
to Common
Sold
Expense
Expense
Expense, Net
Taxes
Shareholders
Shareholders (1)
GAAP Basis
$
238.6
$
169.9
$
41.7
$
7.6
$
51.4
$
112.2
$
1.11
Items that affect comparability of
results between periods:
Asset disposition
(1.2
)
-
-
(4.5
)
0.5
5.2
Acquisition related adjustments
(0.1
)
(0.8
)
(2.3
)
-
0.1
3.1
Restructuring charge
-
-
-
(5.6
)
1.9
3.7
Total
(1.3
)
(0.8
)
(2.3
)
(10.1
)
2.5
12.0
0.12
Adjusted Basis
$
237.3
$
169.1
$
39.4
$
(2.5
)
$
53.9
$
124.2
$
1.23
Quarter Ended June 30, 2008
Diluted
Net
Earnings
Marketing,
Income
per Share
Cost of
Selling and
Research &
Other
Attributable
Available
Goods
Administrative
Development
(Income)
Income
to Common
to Common
Sold
Expense
Expense
Expense, Net
Taxes
Shareholders
Shareholders (1)
GAAP Basis
$
242.9
$
180.8
$
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
0.34
Adjusted Basis
$
239.2
$
180.8
$
38.2
$
(4.2
)
$
46.6
$
112.8
$
1.10
Six Months Ended June 30, 2009
Diluted
Net
Earnings
Marketing,
Income
per Share
Cost of
Selling and
Research &
Other
Attributable
Available
Goods
Administrative
Development
(Income)
Income
to Common
to Common
Sold
Expense
Expense
Expense, Net
Taxes
Shareholders
Shareholders (1)
GAAP Basis
$
462.9
$
334.2
$
78.1
$
16.9
$
97.3
$
224.7
$
2.22
Items that affect comparability of
results between periods:
Asset disposition
(1.2
)
-
-
(4.5
)
0.5
5.2
Acquisition related adjustments
(0.1
)
(0.8
)
(2.3
)
-
0.1
3.1
Restructuring charge
-
-
-
(15.4
)
5.2
10.2
Total
(1.3
)
(0.8
)
(2.3
)
(19.9
)
5.8
18.5
0.18
Adjusted Basis
$
461.6
$
333.4
$
75.8
$
(3.0
)
$
103.1
$
243.2
$
2.40
Six Months Ended June 30, 2008
Diluted
Net
Earnings
Marketing,
Income
per Share
Cost of
Selling and
Research &
Other
Attributable
Available
Goods
Administrative
Development
(Income)
Income
to Common
to Common
Sold
Expense
Expense
Expense, Net
Taxes
Shareholders
Shareholders (1)
GAAP Basis
$
468.1
$
349.7
$
124.0
$
28.6
$
67.8
$
155.9
$
1.51
Items that affect comparability of
results between periods:
Asset disposition
(3.7
)
-
-
(36.8
)
5.6
34.9
Acquisition related adjustments
-
-
(49.3
)
-
18.2
31.1
Total
(3.7
)
-
(49.3
)
(36.8
)
23.8
66.0
0.64
Adjusted Basis
$
464.4
$
349.7
$
74.7
$
(8.2
)
$
91.6
$
221.9
$
2.15
(1) Reflects the retrospective adoption of FSP No. EITF 03-6-1.
See Notes to Earnings per Share included within this press release
for additional information.
Notes to Reconciliation of Earnings
For the second quarter 2009, the following items affected the
comparability of results between periods: (i) a charge of $5.7 million
pre-tax for an asset disposition; (ii) charges of $3.2 million pre-tax
for acquisition related adjustments including purchased research and
development and other transaction costs consisting primarily of legal
and valuation costs directly related to acquisition activities; and
(iii) a charge of $5.6 million pre-tax for the restructuring plan. The
net effect of these items decreased net income attributable to common
shareholders by $12.0 million, or $0.12 diluted earnings per share
available to common shareholders.
For the second quarter 2008, a charge of $40.5 million pre-tax for an
asset disposition affected the comparability of results between
periods. The effect of this charge decreased net income attributable
to common shareholders by $34.9 million, or $0.34 diluted earnings per
share available to common shareholders.
For the six months ended June 30, 2009, the following items affected
the comparability of results between periods: (i) a charge of $5.7
million pre-tax for an asset disposition; (ii) charges of $3.2 million
pre-tax for acquisition related adjustments including purchased
research and development and other transaction costs consisting
primarily of legal and valuation costs directly related to acquisition
activities; and (iii) a charge of $15.4 million pre-tax for the
restructuring plan. The net effect of these items decreased net income
attributable to common shareholders by $18.5 million, or $0.18 diluted
earnings per share available to common shareholders.
For the six months ended June 30, 2008, the following items affected
the comparability of results between periods: (i) a charge of $40.5
million pre-tax for an asset disposition; and (ii) charges of $49.3
million pre-tax for acquisition related adjustments consisting of
purchased research and development. The net effect of these items
decreased net income attributable to common shareholders by $66.0
million, or $0.64 diluted earnings per share available to common
shareholders.
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 charges for asset
dispositions and acquisition related adjustments; (2) marketing, selling
and administrative expenses excluding acquisition related adjustments
(3) research & development expense excluding acquisition related
adjustments; (4) other (income) expense, net, excluding charges for
asset dispositions and restructuring; (5) income tax provision excluding
the tax effect of the items set forth in (1) through (4) above; (6) net
income attributable to common shareholders excluding the items set forth
in (1) through (5) above; and (7) diluted earnings per share available
to common shareholders excluding the items set forth in (1) through (5)
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.
Notes to Earnings per Share
(dollars and shares in thousands, except per share amounts,
unaudited)
Quarter Ended
Six Months Ended
June 30,
June 30,
2009
2008
2009
2008
Earnings per Share Numerator (1): GAAP Basis - basic and
diluted
Net income attributable to common shareholders
$
112,200
$
77,900
$
224,700
$
155,900
Less: Income allocated to participating securities
1,200
1,100
2,500
2,100
Net income available to common shareholders
$
111,000
$
76,800
$
222,200
$
153,800
Earnings per Share Numerator (1): Adjusted Basis - diluted
Net income attributable to common shareholders
$
124,200
$
112,800
$
243,200
$
221,900
Less: Income allocated to participating securities
1,300
1,600
2,800
2,900
Net income available to common shareholders
$
122,900
$
111,200
$
240,400
$
219,000
Earnings per Share Denominator:
Wt. avg. common shares outstanding - basic
98,500
99,300
98,900
99,700
Wt. avg. common and common equivalent shares outstanding - diluted
99,600
101,400
100,300
101,900
Earnings per Share: GAAP Basis
Basic earnings per share available to common shareholders
$
1.13
$
0.77
$
2.25
$
1.54
Diluted earnings per share available to common shareholders
$
1.11
$
0.76
$
2.22
$
1.51
Earnings per Share: Adjusted Basis
Diluted earnings per share available to common shareholders
$
1.23
$
1.10
$
2.40
$
2.15
(1) Basic and diluted earnings per share available to common
shareholders is calculated using a numerator, which represents the
total of net income attributable to common shareholders less income
allocated to participating securities under FSP No. EITF 03-6-1.
Source: C. R. Bard, Inc.
C. R. Bard, Inc. Investor Relations: Eric J.
Shick Vice President, Investor Relations 908-277-8413 or Media
Relations: Scott T. Lowry Vice President and
Treasurer 908-277-8365
"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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