MURRAY HILL, N.J.--(BUSINESS WIRE)--Jul. 26, 2016--
C. R. Bard, Inc. (NYSE:BCR) today reported 2016 second quarter financial
results. Second quarter 2016 net sales were $931.5 million, an increase
of 8 percent over the prior-year period on an as-reported basis.
Excluding the impact of foreign exchange, second quarter 2016 net sales
increased 9 percent over the prior-year period.
For the second quarter 2016, net sales in the U.S. were $633.1 million,
an increase of 7 percent over the prior-year period. Net sales outside
the U.S. were $298.4 million, an increase of 11 percent from the
prior-year period on an as-reported basis. Excluding the impact of
foreign exchange, second quarter 2016 net sales outside the U.S.
increased 14 percent over the prior-year period.
For the second quarter 2016, net income was $159.2 million and diluted
earnings per share were $2.11. Adjusting for amortization of intangibles
and certain items that affect the comparability of results between
periods, as detailed in the tables below, second quarter 2016 net income
was $192.2 million and diluted earnings per share were $2.54, an
increase of 11 percent and 12 percent, respectively, as compared to
second quarter 2015 results.
Timothy M. Ring, chairman and chief executive officer, commented, “We
continue to see strong results as we prioritize product leadership
across the globe. Our commitment to innovation and product
differentiation, along with a focus on delivering economic benefits to
the healthcare system, have driven global demand for our products, and
our targeted investments in emerging markets continue to expand our
presence internationally. We believe this investment approach positions
us well to continue to provide attractive returns to our shareholders.”
In conjunction with the second quarter results, the company is also
increasing 2016 financial guidance. For the full year 2016, net sales
are forecasted to increase between 7 percent and 8 percent on an
as-reported basis. Excluding the impact of foreign exchange, full year
2016 net sales are forecasted to increase between 8 percent and 9
percent over 2015. Full year 2016 diluted earnings per share, after
adjusting for amortization of intangibles and certain items that affect
comparability between periods are projected to be between $10.10 and
$10.20, representing growth between 11 percent and 12 percent compared
to full year 2015 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 March 31, 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.
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C. R. Bard, Inc.
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Consolidated Statements of Operations
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(dollars and shares in thousands except per share amounts, unaudited)
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Quarter Ended
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Six Months Ended
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June 30,
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June 30,
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2016
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2015
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2016
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2015
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Net sales
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$
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931,500
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$
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859,800
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$
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1,805,000
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$
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1,679,500
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Costs and expenses
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Cost of goods sold
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351,000
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333,700
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671,400
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644,900
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Marketing, selling and administrative expense
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278,500
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250,000
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549,100
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485,700
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Research and development expense
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71,300
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64,000
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139,600
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124,600
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Interest expense
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13,400
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11,200
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24,700
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22,500
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Other (income) expense, net
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9,600
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141,700
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69,600
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158,000
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Total costs and expenses
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723,800
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800,600
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1,454,400
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1,435,700
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Income from operations before income taxes
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207,700
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59,200
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350,600
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243,800
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Income tax provision
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48,500
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113,900
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75,200
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158,700
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Net income (loss)
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$
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159,200
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$
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(54,700
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)
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$
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275,400
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$
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85,100
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Basic earnings (loss) per share available to common shareholders
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$
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2.14
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$
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(0.74
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)
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$
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3.70
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$
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1.13
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Diluted earnings (loss) per share available to common shareholders
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$
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2.11
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$
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(0.74
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)
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$
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3.64
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$
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1.11
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Wt. avg. common shares outstanding - basic
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74,000
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74,200
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74,000
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74,300
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Wt. avg. common and common equivalent shares outstanding - diluted
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75,200
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74,200
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75,200
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75,700
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Product Group Summary of Net Sales
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(dollars in thousands, unaudited)
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Quarter Ended June 30,
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Six Months Ended June 30,
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Constant
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Constant
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2016
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2015
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Change
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Currency
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2016
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2015
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Change
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Currency
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Vascular
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$
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255,300
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$
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248,600
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3
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%
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3
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%
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$
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494,800
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$
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480,500
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3
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%
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4
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%
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Urology
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240,000
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209,200
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15
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%
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16
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%
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456,700
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414,800
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10
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%
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11
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%
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Oncology
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252,400
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235,200
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7
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%
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8
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%
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494,300
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459,800
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8
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%
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9
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%
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Surgical Specialties
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159,900
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143,800
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11
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%
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12
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%
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311,300
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279,700
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11
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%
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12
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%
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Other
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23,900
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23,000
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4
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%
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5
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%
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47,900
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44,700
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7
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%
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9
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%
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Net sales
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|
$
|
931,500
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|
$
|
859,800
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|
8
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%
|
|
|
|
|
|
$
|
1,805,000
|
|
|
|
$
|
1,679,500
|
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|
7
|
%
|
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|
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|
|
|
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|
|
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|
|
|
|
|
|
|
|
|
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|
Foreign exchange impact
|
|
|
|
|
|
|
(5,300
|
)
|
|
|
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|
|
|
|
|
|
|
|
|
(19,600
|
)
|
|
|
|
|
|
|
Constant Currency
|
|
|
$
|
931,500
|
|
|
$
|
854,500
|
|
|
|
|
|
|
|
9
|
%
|
|
|
$
|
1,805,000
|
|
|
|
$
|
1,659,900
|
|
|
|
|
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
|
|
|
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|
|
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|
Non-GAAP Reconciliation of Earnings (Loss)
|
(dollars in millions except per share amounts, unaudited)
|
|
|
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|
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|
|
|
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|
|
|
|
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|
|
|
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|
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|
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|
|
|
|
|
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|
|
Quarter Ended June 30, 2016
|
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|
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|
|
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|
|
Diluted
|
|
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|
Earnings
|
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Marketing,
|
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|
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|
per Share
|
|
|
|
Cost of
|
|
|
Selling and
|
|
|
Research &
|
|
|
Other
|
|
|
|
|
|
|
|
|
Available
|
|
|
|
Goods
|
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|
Administrative
|
|
|
Development
|
|
|
(Income)
|
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|
Income
|
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|
Net
|
|
|
to Common
|
|
|
|
Sold
|
|
|
Expense
|
|
|
Expense
|
|
|
Expense, Net
|
|
|
Taxes
|
|
|
Income
|
|
|
Shareholders(1)
|
|
|
|
|
|
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|
|
|
|
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|
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|
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|
|
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|
|
GAAP Basis
|
|
|
$
|
351.0
|
|
|
|
$
|
278.5
|
|
|
|
$
|
71.3
|
|
|
|
$
|
9.6
|
|
|
|
$
|
48.5
|
|
|
|
$
|
159.2
|
|
|
|
$
|
2.11
|
|
Amortization of intangible assets
|
|
|
|
(32.8
|
)
|
|
|
|
-
|
|
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|
|
-
|
|
|
|
|
-
|
|
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|
11.1
|
|
|
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21.7
|
|
|
|
|
Items that affect comparability of
|
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results between periods:
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|
|
|
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|
|
|
|
|
|
Acquisition-related items
|
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|
|
(1.7
|
)
|
|
|
|
(2.0
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)
|
|
|
|
(0.4
|
)
|
|
|
|
0.2
|
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|
|
|
1.6
|
|
|
|
|
2.3
|
|
|
|
|
Asset impairment
|
|
|
|
(1.2
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
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|
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-
|
|
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1.2
|
|
|
|
|
Restructuring and productivity initiative costs
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(11.9
|
)
|
|
|
|
4.1
|
|
|
|
|
7.8
|
|
|
|
|
Total
|
|
|
|
(35.7
|
)
|
|
|
|
(2.0
|
)
|
|
|
|
(0.4
|
)
|
|
|
|
(11.7
|
)
|
|
|
|
16.8
|
|
|
|
|
33.0
|
|
|
|
|
0.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Basis
|
|
|
$
|
315.3
|
|
|
|
$
|
276.5
|
|
|
|
$
|
70.9
|
|
|
|
$
|
(2.1
|
)
|
|
|
$
|
65.3
|
|
|
|
$
|
192.2
|
|
|
|
$
|
2.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
|
|
|
|
|
|
|
Marketing,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per Share
|
|
|
|
Cost of
|
|
|
Selling and
|
|
|
Research &
|
|
|
Other
|
|
|
|
|
|
|
|
|
Available
|
|
|
|
Goods
|
|
|
Administrative
|
|
|
Development
|
|
|
(Income)
|
|
|
Income
|
|
|
Net (Loss)
|
|
|
to Common
|
|
|
|
Sold
|
|
|
Expense
|
|
|
Expense
|
|
|
Expense, Net
|
|
|
Taxes
|
|
|
Income
|
|
|
Shareholders(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Basis
|
|
|
$
|
333.7
|
|
|
|
$
|
250.0
|
|
|
|
$
|
64.0
|
|
|
|
$
|
141.7
|
|
|
|
$
|
113.9
|
|
|
|
$
|
(54.7
|
)
|
|
|
$
|
(0.74
|
)
|
Amortization of intangible assets
|
|
|
|
(29.3
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
9.9
|
|
|
|
|
19.4
|
|
|
|
|
Items that affect comparability of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
results between periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related items
|
|
|
|
(2.0
|
)
|
|
|
|
(1.0
|
)
|
|
|
|
(1.5
|
)
|
|
|
|
-
|
|
|
|
|
0.5
|
|
|
|
|
4.0
|
|
|
|
|
Litigation charges, net
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(343.7
|
)
|
|
|
|
12.5
|
|
|
|
|
331.2
|
|
|
|
|
Gore proceeds
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
210.5
|
|
|
|
|
(78.8
|
)
|
|
|
|
(131.7
|
)
|
|
|
|
Restructuring and productivity initiative costs
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(8.5
|
)
|
|
|
|
3.0
|
|
|
|
|
5.5
|
|
|
|
|
Total
|
|
|
|
(31.3
|
)
|
|
|
|
(1.0
|
)
|
|
|
|
(1.5
|
)
|
|
|
|
(141.7
|
)
|
|
|
|
(52.9
|
)
|
|
|
|
228.4
|
|
|
|
|
2.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Basis
|
|
|
$
|
302.4
|
|
|
|
$
|
249.0
|
|
|
|
$
|
62.5
|
|
|
|
$
|
-
|
|
|
|
$
|
61.0
|
|
|
|
$
|
173.7
|
|
|
|
$
|
2.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 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
|
|
|
$
|
671.4
|
|
|
|
$
|
549.1
|
|
|
|
$
|
139.6
|
|
|
|
$
|
69.6
|
|
|
|
$
|
75.2
|
|
|
|
$
|
275.4
|
|
|
|
$
|
3.64
|
|
Amortization of intangible assets
|
|
|
|
(65.2
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
22.1
|
|
|
|
|
43.1
|
|
|
|
|
Items that affect comparability of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
results between periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related items
|
|
|
|
2.6
|
|
|
|
|
(6.1
|
)
|
|
|
|
(1.9
|
)
|
|
|
|
(3.0
|
)
|
|
|
|
4.1
|
|
|
|
|
4.3
|
|
|
|
|
Asset impairment
|
|
|
|
(1.2
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
1.2
|
|
|
|
|
Litigation charges
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(48.9
|
)
|
|
|
|
18.1
|
|
|
|
|
30.8
|
|
|
|
|
Restructuring and productivity initiative costs
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(21.7
|
)
|
|
|
|
7.3
|
|
|
|
|
14.4
|
|
|
|
|
Total
|
|
|
|
(63.8
|
)
|
|
|
|
(6.1
|
)
|
|
|
|
(1.9
|
)
|
|
|
|
(73.6
|
)
|
|
|
|
51.6
|
|
|
|
|
93.8
|
|
|
|
|
1.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Basis
|
|
|
$
|
607.6
|
|
|
|
$
|
543.0
|
|
|
|
$
|
137.7
|
|
|
|
$
|
(4.0
|
)
|
|
|
$
|
126.8
|
|
|
|
$
|
369.2
|
|
|
|
$
|
4.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 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(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Basis
|
|
|
$
|
644.9
|
|
|
|
$
|
485.7
|
|
|
|
$
|
124.6
|
|
|
|
$
|
158.0
|
|
|
|
$
|
158.7
|
|
|
|
$
|
85.1
|
|
|
|
$
|
1.11
|
|
Amortization of intangible assets
|
|
|
|
(58.2
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
19.6
|
|
|
|
|
38.6
|
|
|
|
|
Items that affect comparability of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
results between periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related items
|
|
|
|
7.9
|
|
|
|
|
(1.2
|
)
|
|
|
|
(1.5
|
)
|
|
|
|
(0.5
|
)
|
|
|
|
0.7
|
|
|
|
|
(5.4
|
)
|
|
|
|
Litigation charges, net
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(354.0
|
)
|
|
|
|
13.4
|
|
|
|
|
340.6
|
|
|
|
|
Gore proceeds
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
210.5
|
|
|
|
|
(78.8
|
)
|
|
|
|
(131.7
|
)
|
|
|
|
Restructuring and productivity initiative costs
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(12.4
|
)
|
|
|
|
4.3
|
|
|
|
|
8.1
|
|
|
|
|
Total
|
|
|
|
(50.3
|
)
|
|
|
|
(1.2
|
)
|
|
|
|
(1.5
|
)
|
|
|
|
(156.4
|
)
|
|
|
|
(40.8
|
)
|
|
|
|
250.2
|
|
|
|
|
3.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Basis
|
|
|
$
|
594.6
|
|
|
|
$
|
484.5
|
|
|
|
$
|
123.1
|
|
|
|
$
|
1.6
|
|
|
|
$
|
117.9
|
|
|
|
$
|
335.3
|
|
|
|
$
|
4.36
|
|
|
|
|
|
|
|
(1) Total per share amounts do not add due to rounding.
(2) For the quarter ended June 30, 2015, diluted loss per share on a
GAAP basis does not include common share equivalents of approximately
1.3 million. Common share equivalents primarily from share-based
compensation plans were not included in this period because their effect
would have been antidilutive. As a result, total per share amounts do
not add.
Notes to Non-GAAP Reconciliation of Earnings
(Loss)
-
For the second quarter 2016, amortization of intangible assets was
$32.8 million pre-tax and the following items affected the
comparability of results between periods: (i) net charges of $3.9
million pre-tax from acquisition-related items including transaction
costs, purchase accounting adjustments and integration costs; (ii) a
charge of $1.2 million pre-tax related to an asset impairment; and
(iii) charges of $11.9 million pre-tax for restructuring and
productivity initiatives. The net effect of these items decreased net
income by $33.0 million, or $0.44 diluted earnings per share available
to common shareholders.
-
For the second quarter 2015, amortization of intangible assets was
$29.3 million pre-tax and the following items affected the
comparability of results between periods: (i) charges of $4.5 million
pre-tax for acquisition-related items including transaction costs,
purchase accounting adjustments and integration costs; (ii) charges of
$343.7 million pre-tax related to estimated costs for product
liability matters, net of recoveries, which includes $6.8 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”); (iii) a gain of $210.5 million
pre-tax related to a patent infringement litigation against W.L. Gore
& Associates, Inc. (“Gore”); and (iv) charges of $8.5 million pre-tax
for restructuring and productivity initiatives. The net effect of
these items increased net loss by $228.4 million, or $2.98 diluted
loss per share available to common shareholders.
-
For the six months ended June 30, 2016, amortization of intangible
assets was $65.2 million pre-tax and the following items affected the
comparability of results between periods: (i) net charges of $8.4
million pre-tax from acquisition-related items including transaction
costs, purchase accounting adjustments and integration costs; (ii) a
charge of $1.2 million pre-tax related to an asset impairment; (iii) a
charge of $48.9 million pre-tax related to estimated cost for product
liability matters; and (iv) charges of $21.7 million pre-tax for
restructuring and productivity initiatives. The net effect of these
items decreased net income by $93.8 million, or $1.24 diluted earnings
per share available to common shareholders.
-
For the six months ended June 30, 2015, amortization of intangible
assets was $58.2 million pre-tax and the following items affected the
comparability of results between periods: (i) a net benefit of $4.7
million pre-tax for acquisition-related items including transaction
costs, purchase accounting adjustments and integration costs; (ii)
charges of $354.0 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 WHP
Pre-Trial Orders and other litigation-related charges; (iii) a gain of
$210.5 million pre-tax related to a patent infringement litigation
against Gore; and (iv) charges of $12.4 million pre-tax for
restructuring and productivity initiatives. The net effect of these
items decreased net income by $250.2 million, or $3.26 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; (4) other
(income) expense, net, excluding acquisition-related items, litigation
charges (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 the tax effect of the items set forth in
(1) through (4) above; and (6) net income 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 (Loss) per Share
|
(dollars and shares in thousands, except per share amounts,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2016
|
|
|
2015
|
Earnings (loss) per Share Numerator: GAAP Basis - basic and diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
159,200
|
|
|
$
|
(54,700
|
)
|
|
|
$
|
275,400
|
|
|
$
|
85,100
|
Less: Income allocated to participating securities (1)
|
|
|
|
800
|
|
|
|
-
|
|
|
|
|
1,400
|
|
|
|
1,200
|
Net income (loss) available to common shareholders
|
|
|
$
|
158,400
|
|
|
$
|
(54,700
|
)
|
|
|
$
|
274,000
|
|
|
$
|
83,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share Numerator: Adjusted Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
192,200
|
|
|
$
|
173,700
|
|
|
|
$
|
369,200
|
|
|
$
|
335,300
|
Less: Income allocated to participating securities (1)
|
|
|
|
1,000
|
|
|
|
2,600
|
|
|
|
|
1,900
|
|
|
|
5,000
|
Net income available to common shareholders
|
|
|
$
|
191,200
|
|
|
$
|
171,100
|
|
|
|
$
|
367,300
|
|
|
$
|
330,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
|
Wt. avg. common shares outstanding - basic
|
|
|
|
74,000
|
|
|
|
74,200
|
|
|
|
|
74,000
|
|
|
|
74,300
|
Wt avg. common and common equivalent shares outstanding (2):
GAAP Basis - diluted
|
|
|
|
75,200
|
|
|
|
74,200
|
|
|
|
|
75,200
|
|
|
|
75,700
|
Wt. avg. common and common equivalent shares outstanding: Adjusted
Basis - diluted
|
|
|
|
75,200
|
|
|
|
75,500
|
|
|
|
|
75,200
|
|
|
|
75,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per Share: GAAP Basis
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share available to common shareholders
|
|
|
$
|
2.14
|
|
|
$
|
(0.74
|
)
|
|
|
$
|
3.70
|
|
|
$
|
1.13
|
Diluted earnings (loss) per share available to common shareholders
|
|
|
$
|
2.11
|
|
|
$
|
(0.74
|
)
|
|
|
$
|
3.64
|
|
|
$
|
1.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share: Adjusted Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share available to common shareholders
|
|
|
$
|
2.54
|
|
|
$
|
2.27
|
|
|
|
$
|
4.88
|
|
|
$
|
4.36
|
|
|
|
(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.
(2) For the quarter ended June 30, 2015, diluted loss per share on a
GAAP basis does not include common share equivalents of approximately
1.3 million. Common share equivalents primarily from share-based
compensation plans were not included in this period because their effect
would have been antidilutive.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160726006406/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
|