Diluted EPS from Continuing Operations of $0.76, $1.06 on Adjusted Basis
MURRAY HILL, N.J.--(BUSINESS WIRE)--April 23, 2008--C. R. Bard,
Inc. (NYSE: BCR) today reported 2008 first quarter financial results.
First quarter 2008 net sales were $584.0 million, an increase of 11
percent over the prior-year period. Excluding the impact of foreign
exchange, first quarter 2008 net sales increased 8 percent over the
prior-year period.
For the first quarter 2008, net sales in the U.S. were $399.2
million and net sales outside the U.S. were $184.8 million, an
increase of 7 percent and 20 percent, respectively, over the
prior-year period. Excluding the impact of foreign exchange, first
quarter 2008 net sales outside the U.S. increased 11 percent over the
prior-year period.
For the first quarter 2008, income from continuing operations was
$78.0 million and diluted earnings per share from continuing
operations were $0.76, a decrease of 23 percent and 20 percent,
respectively, as compared to first quarter 2007 results. Adjusting for
items that affect comparability between periods as detailed in the
tables below, first quarter 2008 income from continuing operations was
$109.1 million and related diluted earnings per share were $1.06, an
increase of 7 percent and 12 percent, respectively, as compared to
first quarter 2007 results.
Timothy M. Ring, chairman and chief executive officer, commented,
"Despite a challenging quarter in our hernia fixation business, we
continue to deliver healthy earnings. These results demonstrate the
benefits of a diverse product portfolio and the strength of our
vascular, urology and oncology franchises. Our focus remains on
sustaining growth through the execution of our R&D and business
development strategies."
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 December 31, 2007 Form 10-K 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
(in thousands except per share amounts, unaudited)
Quarter Ended
March 31,
-------------------
2008 2007
--------- ---------
Net sales $584,000 $528,200
Costs and Expenses:
Cost of goods sold 225,500 206,500
Marketing, selling and administrative expense 168,900 153,700
Research and development expense 85,800 30,100
Interest expense 3,000 2,900
Other income, net (4,000) (7,400)
--------- ---------
Total costs and expenses 479,200 385,800
--------- ---------
Income from continuing operations before income
taxes 104,800 142,400
--------- ---------
Income tax provision 26,800 40,800
--------- ---------
Income from continuing operations 78,000 101,600
--------- ---------
Income from discontinued operations, net of tax - -
--------- ---------
Net income $ 78,000 $101,600
========= =========
Basic earnings per share:
Income from continuing operations $ 0.78 $ 0.98
Income on discontinued operations - -
Net income per share $ 0.78 $ 0.98
========= =========
Diluted earnings per share:
Income from continuing operations $ 0.76 $ 0.95
Income on discontinued operations - -
Net income per share $ 0.76 $ 0.95
========= =========
Wt. avg. common shares outstanding - basic 100,000 103,300
Wt. avg. common shares outstanding - diluted 103,300 106,700
Product Group Summary of Net Sales
(in thousands, unaudited)
Quarter Ended March 31,
---------------------------------
Constant
2008 2007 Change Currency
-------- -------- ------ --------
Vascular $150,400 $127,700 18% 13%
Urology 168,700 155,200 9% 7%
Oncology 150,000 127,800 17% 15%
Surgical Specialties 93,000 97,100 -4% -6%
Other 21,900 20,400 7% 6%
-------- --------
Net sales $584,000 $528,200 11%
-------- --------
FX impact 12,100
-------- --------
Constant Currency $584,000 $540,300 8%
======== ========
Reconciliation of Earnings From Continuing Operations
(in millions except per share amounts, unaudited)
Quarter Ended March 31, 2008
------------------------------------------
Income Income
Research & Tax From Diluted
Development Provision Continuing Earnings
Expense (Benefit) Operations Per Share
----------- --------- ---------- ---------
GAAP Basis $ 85.8 $ 26.8 $ 78.0 $ 0.76
Items that affect
comparability of
results between periods:
----------------------------
Purchased research &
development (49.3) 18.2 31.1 0.30
----------- --------- ---------- ---------
Adjusted Basis $ 36.5 $ 45.0 $ 109.1 $ 1.06
=========== ========= ========== =========
Notes
- For the first quarter 2008, charges of approximately $49.3
million pretax for purchased research and development affected
the comparability of results between periods. The effect of
these charges decreased income from continuing operations by
$31.1 million, or $0.30 diluted earnings per share from
continuing operations.
- For the first quarter 2007, there were no items that met the
criteria described below that affected the comparability of
results between periods.
- In the first quarter 2007, the company withdrew from the
synthetic bulking market and discontinued the sale of the
Tegress(TM) synthetic bulking product, which was formerly
reported in the Urology product group category. Consequently,
the company accounts for this withdrawal as a discontinued
operation for all periods referred to in this release.
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) research & development expense excluding payments for
purchased research and development; (2) the tax effect of the item set
forth in (1) above; (3) income from continuing operations excluding
the items set forth in (1) and (2) above; and (4) diluted earnings per
share from continuing operations excluding the items set forth in (1)
and (2) 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.
CONTACT: 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
SOURCE: C. R. Bard, Inc.
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