Diluted EPS of $1.11, $1.23 on Adjusted Basis

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.

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.

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