MURRAY HILL, N.J.--(BUSINESS WIRE)--Jan. 26, 2017--
C. R. Bard, Inc. (NYSE:BCR) today reported 2016 fourth quarter financial
results. Fourth quarter 2016 net sales were $967.1 million, an increase
of 11 percent on an as-reported basis over the prior-year period.
Excluding the impact of foreign exchange, fourth quarter 2016 net sales
increased 12 percent over the prior-year period.
For the fourth quarter 2016, net sales in the U.S. were $655.0 million
and net sales outside the U.S. were $312.1 million, an increase of 8
percent and 18 percent, respectively, over the prior-year period.
Excluding the impact of foreign exchange, fourth quarter 2016 net sales
outside the U.S. increased 21 percent over the prior-year period.
Net sales for the full year 2016 were $3,714.0 million, an increase of 9
percent over the prior-year period on an as-reported basis. Excluding
the impact of foreign exchange, full year 2016 net sales increased 10
percent over the prior-year period.
For the fourth quarter 2016, net income was $159.6 million and diluted
earnings per share were $2.11, an increase of 17 percent and 18 percent,
respectively, as compared to fourth quarter 2015 results. Adjusting for
amortization of intangibles and certain items that affect comparability
between periods as detailed in the tables below, fourth quarter 2016 net
income was $208.6 million and diluted earnings per share were $2.77, an
increase of 13 percent and 14 percent, respectively, as compared to
fourth quarter 2015 results.
For the full year 2016, net income was $531.4 million and diluted
earnings per share were $7.03, an increase of 292 percent and 297
percent, respectively, as compared to full year 2015 results. Adjusting
for amortization of intangibles and certain items that affect
comparability between periods, full year 2016 net income was $777.3
million and diluted earnings per share were $10.29, an increase of 12
percent and 13 percent, respectively, as compared to full year 2015
results.
Timothy M. Ring, chairman and chief executive officer, commented, “Our
strong performance in 2016 once again demonstrated the effectiveness of
the execution of our strategic investment plan. We are seeing a broad
contribution to growth across our portfolio, from each of our four
businesses both domestically and internationally. We remain in
investment mode and continue to focus on providing shareholders with
above-average revenue growth and attractive profitability.”
In conjunction with the fourth quarter results, the company is also
providing 2017 financial guidance. For the full year 2017, net sales are
forecasted to increase between 4 percent and 5 percent on an as-reported
basis. Excluding the impact of foreign exchange, full year 2017 net
sales are forecasted to increase between 6 percent and 6.5 percent over
2016. Full year 2017 diluted earnings per share, after adjusting for
amortization of intangibles and certain items that affect comparability
between periods, are projected to be between $11.45 and $11.75,
representing growth between 11 percent and 14 percent compared to full
year 2016 results.
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 contains financial measures that are not calculated
in accordance with United States generally accepted accounting
principles (GAAP). These non-GAAP measures are reconciled to their most
directly comparable GAAP measures in the tables below and related notes.
Non-GAAP measures included in our guidance were not reconciled to the
appropriate GAAP financial measures because the GAAP measures are not
accessible on a forward-looking basis. Items that impact our non-GAAP
financial measures may include acquisition-related items, asset
impairments, litigation charges, restructuring and productivity
initiative costs, tax items and amortization of certain intangible
assets, such as in connection with future acquisitions. These items
cannot all be reasonably predicted and may directly impact our non-GAAP
net income and our non-GAAP diluted earnings per share, although changes
with respect to certain of these items may offset other changes. In
addition, certain of these items are dependent on various factors.
Accordingly, a reconciliation of the non-GAAP financial measure guidance
to the corresponding GAAP measures is not available without unreasonable
effort.
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,
2016 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
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
$
|
967,100
|
|
$
|
870,800
|
|
$
|
3,714,000
|
|
$
|
3,416,000
|
Costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
|
|
|
|
|
|
348,100
|
|
|
320,000
|
|
|
1,371,700
|
|
|
1,301,200
|
|
Marketing, selling and administrative expense
|
|
|
|
280,200
|
|
|
279,300
|
|
|
1,101,900
|
|
|
1,012,100
|
|
Research and development expense
|
|
|
|
|
79,000
|
|
|
69,400
|
|
|
292,800
|
|
|
259,200
|
|
Interest expense
|
|
|
|
|
|
|
|
|
14,900
|
|
|
11,200
|
|
|
54,500
|
|
|
44,900
|
|
Other (income) expense, net
|
|
|
|
|
|
|
44,000
|
|
|
32,900
|
|
|
229,400
|
|
|
449,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs and expenses
|
|
|
|
|
|
|
766,200
|
|
|
712,800
|
|
|
3,050,300
|
|
|
3,066,600
|
Income from operations before income taxes
|
|
|
|
|
200,900
|
|
|
158,000
|
|
|
663,700
|
|
|
349,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
|
|
|
|
|
|
|
|
41,300
|
|
|
21,700
|
|
|
132,300
|
|
|
214,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
|
|
$
|
159,600
|
|
$
|
136,300
|
|
$
|
531,400
|
|
$
|
135,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share available to common shareholders
|
|
$
|
2.15
|
|
$
|
1.82
|
|
$
|
7.15
|
|
$
|
1.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share available to common shareholders
|
|
$
|
2.11
|
|
$
|
1.79
|
|
$
|
7.03
|
|
$
|
1.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wt. avg. common shares outstanding - basic
|
|
|
|
|
74,000
|
|
|
73,900
|
|
|
74,000
|
|
|
74,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wt. avg. common and common equivalent shares outstanding - diluted
|
|
|
75,100
|
|
|
75,200
|
|
|
75,200
|
|
|
75,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Group Summary of Net Sales
|
(dollars in thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 31,
|
|
Twelve Months Ended December 31,
|
|
|
|
|
|
|
|
|
|
Constant
|
|
|
|
|
|
|
|
Constant
|
|
|
|
2016
|
|
|
2015
|
|
|
Change
|
|
Currency
|
|
2016
|
|
|
2015
|
|
|
Change
|
|
Currency
|
Vascular
|
|
$
|
262,000
|
|
$
|
239,300
|
|
|
9
|
%
|
|
10
|
%
|
|
$
|
1,014,900
|
|
$
|
970,300
|
|
|
5
|
%
|
|
6
|
%
|
Urology
|
|
|
253,000
|
|
|
217,900
|
|
|
16
|
%
|
|
18
|
%
|
|
|
951,800
|
|
|
845,000
|
|
|
13
|
%
|
|
14
|
%
|
Oncology
|
|
|
259,400
|
|
|
237,800
|
|
|
9
|
%
|
|
10
|
%
|
|
|
1,012,100
|
|
|
936,900
|
|
|
8
|
%
|
|
9
|
%
|
Surgical Specialties
|
|
|
167,200
|
|
|
152,800
|
|
|
9
|
%
|
|
10
|
%
|
|
|
637,300
|
|
|
572,300
|
|
|
11
|
%
|
|
12
|
%
|
Other
|
|
|
25,500
|
|
|
23,000
|
|
|
11
|
%
|
|
15
|
%
|
|
|
97,900
|
|
|
91,500
|
|
|
7
|
%
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
967,100
|
|
$
|
870,800
|
|
|
11
|
%
|
|
|
|
$
|
3,714,000
|
|
$
|
3,416,000
|
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange impact
|
|
|
|
|
(7,800
|
)
|
|
|
|
|
|
|
|
|
(34,700
|
)
|
|
|
|
|
Constant Currency
|
|
$
|
967,100
|
|
$
|
863,000
|
|
|
|
|
12
|
%
|
|
$
|
3,714,000
|
|
$
|
3,381,300
|
|
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Reconciliation of Earnings
|
(dollars in millions except per share amounts, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
|
|
|
|
|
Marketing,
|
|
|
|
|
|
|
|
|
|
per Share
|
|
|
Cost of
|
|
Selling and
|
|
Research &
|
|
Other
|
|
|
|
|
|
Available
|
|
|
Goods
|
|
Administrative
|
|
Development
|
|
(Income)
|
|
Income
|
|
Net
|
|
to Common
|
|
|
Sold
|
|
Expense
|
|
Expense
|
|
Expense, Net
|
|
Taxes
|
|
Income
|
|
Shareholders(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Basis
|
|
$
|
348.1
|
|
|
$
|
280.2
|
|
|
$
|
79.0
|
|
|
$
|
44.0
|
|
|
$
|
41.3
|
|
|
$
|
159.6
|
|
|
$
|
2.11
|
Amortization of intangible assets
|
|
|
(32.6
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
11.2
|
|
|
|
21.4
|
|
|
|
Items that affect comparability of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
results between periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related items
|
|
|
4.2
|
|
|
|
(1.5
|
)
|
|
|
(0.5
|
)
|
|
|
4.6
|
|
|
|
(1.0
|
)
|
|
|
(5.8
|
)
|
|
|
Litigation charges, net
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(45.7
|
)
|
|
|
15.0
|
|
|
|
30.7
|
|
|
|
Restructuring and productivity initiative costs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4.1
|
)
|
|
|
1.4
|
|
|
|
2.7
|
|
|
|
Total
|
|
|
(28.4
|
)
|
|
|
(1.5
|
)
|
|
|
(0.5
|
)
|
|
|
(45.2
|
)
|
|
|
26.6
|
|
|
|
49.0
|
|
|
|
0.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Basis
|
|
$
|
319.7
|
|
|
$
|
278.7
|
|
|
$
|
78.5
|
|
|
$
|
(1.2
|
)
|
|
$
|
67.9
|
|
|
$
|
208.6
|
|
|
$
|
2.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
|
|
|
|
|
Marketing,
|
|
|
|
|
|
|
|
|
|
per Share
|
|
|
Cost of
|
|
Selling and
|
|
Research &
|
|
Other
|
|
|
|
|
|
Available
|
|
|
Goods
|
|
Administrative
|
|
Development
|
|
(Income)
|
|
Income
|
|
Net
|
|
to Common
|
|
|
Sold
|
|
Expense
|
|
Expense
|
|
Expense, Net
|
|
Taxes
|
|
Income
|
|
Shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Basis
|
|
$
|
320.0
|
|
|
$
|
279.3
|
|
|
$
|
69.4
|
|
|
$
|
32.9
|
|
|
$
|
21.7
|
|
|
$
|
136.3
|
|
|
$
|
1.79
|
Amortization of intangible assets
|
|
|
(30.9
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10.4
|
|
|
|
20.5
|
|
|
|
Items that affect comparability of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
results between periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related items
|
|
|
(2.4
|
)
|
|
|
(8.0
|
)
|
|
|
(0.1
|
)
|
|
|
(23.4
|
)
|
|
|
19.3
|
|
|
|
14.6
|
|
|
|
Asset impairment
|
|
|
-
|
|
|
|
-
|
|
|
|
(4.5
|
)
|
|
|
-
|
|
|
|
1.7
|
|
|
|
2.8
|
|
|
|
Restructuring and productivity initiative costs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(14.5
|
)
|
|
|
3.6
|
|
|
|
10.9
|
|
|
|
Total
|
|
|
(33.3
|
)
|
|
|
(8.0
|
)
|
|
|
(4.6
|
)
|
|
|
(37.9
|
)
|
|
|
35.0
|
|
|
|
48.8
|
|
|
|
0.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Basis
|
|
$
|
286.7
|
|
|
$
|
271.3
|
|
|
$
|
64.8
|
|
|
$
|
(5.0
|
)
|
|
$
|
56.7
|
|
|
$
|
185.1
|
|
|
$
|
2.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
|
|
|
|
|
Marketing,
|
|
|
|
|
|
|
|
|
|
per Share
|
|
|
Cost of
|
|
Selling and
|
|
Research &
|
|
Other
|
|
|
|
|
|
Available
|
|
|
Goods
|
|
Administrative
|
|
Development
|
|
(Income)
|
|
Income
|
|
Net
|
|
to Common
|
|
|
Sold
|
|
Expense
|
|
Expense
|
|
Expense, Net
|
|
Taxes
|
|
Income
|
|
Shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Basis
|
|
$
|
1,371.7
|
|
|
$
|
1,101.9
|
|
|
$
|
292.8
|
|
|
$
|
229.4
|
|
|
$
|
132.3
|
|
|
$
|
531.4
|
|
|
$
|
7.03
|
Amortization of intangible assets
|
|
|
(130.5
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
44.4
|
|
|
|
86.1
|
|
|
|
Items that affect comparability of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
results between periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related items
|
|
|
4.9
|
|
|
|
(10.2
|
)
|
|
|
(2.7
|
)
|
|
|
1.4
|
|
|
|
4.6
|
|
|
|
2.0
|
|
|
|
Asset impairment
|
|
|
(1.2
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1.2
|
|
|
|
Litigation charges, net
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(205.2
|
)
|
|
|
66.2
|
|
|
|
139.0
|
|
|
|
Restructuring and productivity initiative costs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(30.4
|
)
|
|
|
10.2
|
|
|
|
20.2
|
|
|
|
Tax item
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2.6
|
|
|
|
(2.6
|
)
|
|
|
Total
|
|
|
(126.8
|
)
|
|
|
(10.2
|
)
|
|
|
(2.7
|
)
|
|
|
(234.2
|
)
|
|
|
128.0
|
|
|
|
245.9
|
|
|
|
3.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Basis
|
|
$
|
1,244.9
|
|
|
$
|
1,091.7
|
|
|
$
|
290.1
|
|
|
$
|
(4.8
|
)
|
|
$
|
260.3
|
|
|
$
|
777.3
|
|
|
$
|
10.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
|
|
|
|
|
Marketing,
|
|
|
|
|
|
|
|
|
|
per Share
|
|
|
Cost of
|
|
Selling and
|
|
Research &
|
|
Other
|
|
|
|
|
|
Available
|
|
|
Goods
|
|
Administrative
|
|
Development
|
|
(Income)
|
|
Income
|
|
Net
|
|
to Common
|
|
|
Sold
|
|
Expense
|
|
Expense
|
|
Expense, Net
|
|
Taxes
|
|
Income
|
|
Shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Basis
|
|
$
|
1,301.2
|
|
|
$
|
1,012.1
|
|
|
$
|
259.2
|
|
|
$
|
449.2
|
|
|
$
|
214.0
|
|
|
$
|
135.4
|
|
|
$
|
1.77
|
Amortization of intangible assets
|
|
|
(119.5
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
40.2
|
|
|
|
79.3
|
|
|
|
Items that affect comparability of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
results between periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related items
|
|
|
4.6
|
|
|
|
(10.0
|
)
|
|
|
(1.6
|
)
|
|
|
(24.7
|
)
|
|
|
20.6
|
|
|
|
11.1
|
|
|
|
Asset impairment
|
|
|
-
|
|
|
|
-
|
|
|
|
(4.5
|
)
|
|
|
-
|
|
|
|
1.7
|
|
|
|
2.8
|
|
|
|
Litigation charges, net
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(595.1
|
)
|
|
|
26.3
|
|
|
|
568.8
|
|
|
|
Gore proceeds
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
210.5
|
|
|
|
(78.8
|
)
|
|
|
(131.7
|
)
|
|
|
Restructuring and productivity initiative costs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(41.5
|
)
|
|
|
12.1
|
|
|
|
29.4
|
|
|
|
Total
|
|
|
(114.9
|
)
|
|
|
(10.0
|
)
|
|
|
(6.1
|
)
|
|
|
(450.8
|
)
|
|
|
22.1
|
|
|
|
559.7
|
|
|
|
7.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Basis
|
|
$
|
1,186.3
|
|
|
$
|
1,002.1
|
|
|
$
|
253.1
|
|
|
$
|
(1.6
|
)
|
|
$
|
236.1
|
|
|
$
|
695.1
|
|
|
$
|
9.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Total per share amounts do not add due to rounding.
|
|
Notes to Non-GAAP Reconciliation of Earnings
-
For the fourth quarter 2016, amortization of intangible assets was
$32.6 million pre-tax and the following items affected the
comparability of results between periods: (i) a net benefit of $6.8
million pre-tax from acquisition-related items including purchased
research and development, transaction costs, purchase accounting
adjustments and integration costs; (ii) charges of $45.7 million
pre-tax related to estimated costs for product liability matters, net
of recoveries; and (iii) charges of $4.1 million pre-tax for
restructuring and productivity initiatives. The net effect of these
items decreased net income by $49.0 million, or $0.65 diluted earnings
per share available to common shareholders.
-
For the fourth quarter 2015, amortization of intangible assets was
$30.9 million pre-tax and the following items affected the
comparability of results between periods: (i) charges of $33.9 million
pre-tax for acquisition-related items including transaction costs,
purchase accounting adjustments and integration costs; (ii) a charge
of $4.5 million pre-tax related to an asset impairment; and (iii)
charges of $14.5 million pre-tax for restructuring and productivity
initiatives. The net effect of these items decreased net income by
$48.8 million, or $0.64 diluted earnings per share available to common
shareholders.
-
For the twelve months ended December 31, 2016, amortization of
intangible assets was $130.5 million pre-tax and the following items
affected the comparability of results between periods: (i) net charges
of $6.6 million pre-tax from acquisition-related items including
purchased research and development, transaction costs, purchase
accounting adjustments and integration costs; (ii) a charge of $1.2
million pre-tax related to an asset impairment; (iii) charges of
$205.2 million pre-tax related to estimated costs for product
liability matters, net of recoveries; (iv) charges of $30.4 million
pre-tax for restructuring and productivity initiatives; and (v) a
decrease of $2.6 million in the income tax provision as a result of
the completion of certain IRS examinations. The net effect of these
items decreased net income by $245.9 million, or $3.26 diluted
earnings per share available to common shareholders.
-
For the twelve months ended December 31, 2015, amortization of
intangible assets was $119.5 million pre-tax and the following items
affected the comparability of results between periods: (i) net charges
of $31.7 million pre-tax for acquisition-related items including
transaction costs, purchase accounting adjustments and integration
costs; (ii) a charge of $4.5 million pre-tax related to an asset
impairment; (iii) charges of $595.1 million pre-tax related to
estimated costs for product liability matters, net of recoveries,
which includes $15.1 million of litigation-related defense costs in
connection with the District Court’s pre-trial orders that the company
prepare 500 individual cases for trial (the “WHP Pre-Trial Orders”)
and other litigation-related charges; (iv) a gain of $210.5 million
pre-tax related to a patent infringement litigation against W.L. Gore
& Associates, Inc. (“Gore”); and (v) charges of $41.5 million pre-tax
for restructuring and productivity initiatives. The net effect of
these items decreased net income by $559.7 million, or $7.31 diluted
earnings per share available to common shareholders.
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 the amortization of
intangible assets, the impact of acquisition-related items and an asset
impairment; (2) marketing, selling and administrative expense excluding
the impact of acquisition-related items; (3) research and development
expense excluding the impact of acquisition-related items and an asset
impairment; (4) other (income) expense, net, excluding
acquisition-related items, litigation charges net of recoveries (which
includes litigation-related defense costs in connection with the WHP
Pre-Trial Orders) and other litigation-related matters, Gore proceeds,
and restructuring and productivity initiative costs; (5) income tax
provision excluding a decrease as a result of the completion of IRS
examinations and the tax effect of the items set forth in (1) through
(4) above; (6) net income 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 operations 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 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 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 information. Management
compensates for these limitations by providing full disclosure of each
non-GAAP measure and a reconciliation to the most directly comparable
GAAP measure. All non-GAAP 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 Non-GAAP Reconciliation of Earnings per Share
(dollars and shares in thousands, except per share amounts,
unaudited)
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Twelve Months Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Earnings per Share Numerator: GAAP Basis - basic and diluted
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
159,600
|
|
$
|
136,300
|
|
$
|
531,400
|
|
$
|
135,400
|
Less: Income allocated to participating securities (1)
|
|
|
800
|
|
|
1,900
|
|
|
2,600
|
|
|
1,900
|
Net income available to common shareholders
|
|
$
|
158,800
|
|
$
|
134,400
|
|
$
|
528,800
|
|
$
|
133,500
|
|
|
|
|
|
|
|
|
|
Earnings per Share Numerator: Adjusted Earnings
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
208,600
|
|
$
|
185,100
|
|
$
|
777,300
|
|
$
|
695,100
|
Less: Income allocated to participating securities (1)
|
|
|
900
|
|
|
2,700
|
|
|
3,700
|
|
|
10,200
|
Net income available to common shareholders
|
|
$
|
207,700
|
|
$
|
182,400
|
|
$
|
773,600
|
|
$
|
684,900
|
|
|
|
|
|
|
|
|
|
Earnings per Share Denominator:
|
|
|
|
|
|
|
|
|
Wt. avg. common shares outstanding - basic
|
|
|
74,000
|
|
|
73,900
|
|
|
74,000
|
|
|
74,100
|
Wt. avg. common and common equivalent shares outstanding - diluted
|
|
|
75,100
|
|
|
75,200
|
|
|
75,200
|
|
|
75,400
|
|
|
|
|
|
|
|
|
|
Earnings per Share: GAAP Basis
|
|
|
|
|
|
|
|
|
Basic earnings per share available to common shareholders
|
|
$
|
2.15
|
|
$
|
1.82
|
|
$
|
7.15
|
|
$
|
1.80
|
Diluted earnings per share available to common shareholders
|
|
$
|
2.11
|
|
$
|
1.79
|
|
$
|
7.03
|
|
$
|
1.77
|
|
|
|
|
|
|
|
|
|
Earnings per Share: Adjusted Earnings
|
|
|
|
|
|
|
|
|
Diluted earnings per share available to common shareholders
|
|
$
|
2.77
|
|
$
|
2.43
|
|
$
|
10.29
|
|
$
|
9.08
|
|
|
|
|
|
|
|
|
|
(1) Basic and diluted earnings per share available to common
shareholders is calculated using a numerator, which represents the
total of income less income allocated to participating securities.
|

View source version on businesswire.com: http://www.businesswire.com/news/home/20170126006141/en/
Source: C. R. Bard, Inc.
C. R. Bard, Inc. Investor Relations: Todd W.
Garner, 908-277-8065 Vice President, Investor
Relations or Media Relations: Scott
T. Lowry, 908-277-8365 Vice President and Treasurer
|