Earnings Per Share up 20 Percent, 15 Percent on Adjusted Basis
MURRAY HILL, N.J.--(BUSINESS WIRE)--July 24, 2007--C. R. Bard,
Inc. (NYSE: BCR) today reported 2007 second quarter financial results.
Second quarter 2007 net sales were $545.7 million, an increase of 10
percent over the prior-year period. Excluding the impact of foreign
exchange, second quarter 2007 net sales increased 8 percent over the
prior-year period.
For the second quarter 2007, net sales in the U.S. were $374.8
million and net sales outside the U.S. were $170.9 million, up 8
percent and 13 percent, respectively, over the prior-year period.
Excluding the impact of foreign exchange, second quarter 2007 net
sales outside the U.S. increased 7 percent over the prior-year period.
For the second quarter 2007, income from continuing operations was
$97.5 million and diluted earnings per share from continuing
operations were 91 cents, both up 20 percent as compared to second
quarter 2006 results. Adjusting for certain items that affect
comparability between periods, second quarter 2007 income from
continuing operations and related diluted earnings per share were up
14 percent and 15 percent, respectively, as compared to second quarter
2006 results. The adjustment to the second quarter 2007 results
included an item detailed in the tables below that decreased income
from continuing operations by $1.5 million (after-tax), or 2 cents per
diluted share. Adjustments to the second quarter 2006 results included
items that decreased income from continuing operations by $5.4 million
(after-tax), or 5 cents per diluted share.
Timothy M. Ring, chairman and chief executive officer, commented,
"Despite a challenging quarter in our Surgical Specialties category,
we delivered earnings performance above our 14 percent EPS growth
target. Customer demand for our products continues to be healthy. Our
focus remains on execution, especially as it relates to the
productivity of our R&D and business development pipelines."
C. R. Bard, Inc. (www.crbard.com), headquartered in Murray Hill,
N.J., 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 our March 31, 2007 10Q 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 Six Months Ended
June 30, June 30,
----------------------- -------------------------
2007 2006 2007 2006
---------- ---------- ---------- ------------
Net sales $ 545,700 $ 496,500 $1,073,900 $ 962,400
Costs and expenses:
Cost of goods
sold 216,600 194,800 423,100 372,900
Marketing,
selling &
administrative
expense 160,500 153,300 314,200 295,600
Research &
development
expense 35,100 37,200 65,200 75,500
Interest
expense 3,000 4,500 5,900 9,200
Other (income)
expense, net (8,800) (7,600) (16,200) (15,300)
----------- ----------- ----------- -------------
Total costs and
expenses 406,400 382,200 792,200 737,900
----------- ----------- ----------- -------------
Income from
continuing
operations before
tax provision 139,300 114,300 281,700 224,500
----------- ----------- ----------- -------------
Income tax
provision 41,800 33,200 82,600 61,900
----------- ----------- ----------- -------------
Income from
continuing
operations $ 97,500 $ 81,100 $ 199,100 $ 162,600
----------- ----------- ----------- -------------
Income (loss) from
discontinued
operations, net of
tax - 300 - (100)
----------- ----------- ----------- -------------
Net Income $ 97,500 $ 81,400 $ 199,100 $ 162,500
=========== =========== =========== =============
Basic earnings per
share from
continuing
operations $ 0.94 $ 0.78 $ 1.93 $ 1.57
Basic earnings per
share from
discontinued
operations - - - -
Basic earnings per
share $ 0.94 $ 0.79 $ 1.93 $ 1.57
Diluted earnings per
share from
continuing
operations $ 0.91 $ 0.76 $ 1.86 $ 1.52
Diluted earnings per
share from
discontinued
operations - - - -
Diluted earnings per
share $ 0.91 $ 0.76 $ 1.86 $ 1.52
Wt. avg. common
shares outstanding
- basic 103,600 103,500 103,400 103,700
Wt. avg. common
shares outstanding
- diluted 106,900 107,000 106,800 107,000
Product Group Summary of Net Sales
(in thousands, unaudited)
Quarter Ended June 30,
---------------------------------
Constant
2007 2006 Change Currency
-------- -------- ------ --------
Vascular $135,900 $119,700 14% 10%
Urology 160,900 147,500 9% 8%
Oncology 141,900 117,000 21% 20%
Surgical Specialties 86,500 94,500 -8% -10%
Other 20,500 17,800 15% 13%
-------- --------
Reported sales $545,700 $496,500 10%
-------- --------
FX impact --- 9,000
-------- --------
Con. currency $545,700 $505,500 8%
======== ========
Six Months Ended June 30,
-----------------------------------
Constant
2007 2006 Change Currency
---------- -------- ------ --------
Vascular $ 263,600 $233,400 13% 10%
Urology 316,100 280,200 13% 11%
Oncology 269,700 228,000 18% 17%
Surgical Specialties 183,600 182,600 1% -1%
Other 40,900 38,200 7% 6%
---------- --------
Reported sales $1,073,900 $962,400 12%
---------- --------
FX impact --- 17,100
---------- --------
Con. currency $1,073,900 $979,500 10%
========== ========
Reconciliation of Earnings From Continuing Operations
(in millions except per share amounts, unaudited)
Quarter Ended June 30, 2007
--------------------------------------------------------
Other Income Income
(Income) Tax From Diluted
Research & Expense, Provision Continuing Earnings
Development Net (Benefit) Operations Per Share
------------ --------- ---------- ---------- -----------
GAAP basis $ 35.1 $ (8.8) $ 41.8 $ 97.5 $ 0.91
Items
impacting
comparability
of results
between
periods:
--------------
Purchased
research &
development $ (1.6) $ - $ 0.1 $ 1.5
------------ --------- ---------- ----------
Total $ (1.6) $ - $ 0.1 $ 1.5 $ 0.02
------------ --------- ---------- ---------- -----------
Adjusted
basis $ 33.5 $ (8.8) $ 41.9 $ 99.0 $ 0.93
============ ========= ========== ========== ===========
Quarter Ended June 30, 2006
--------------------------------------------------------
Other Income Income
(Income) Tax From Diluted
Research & Expense, Provision Continuing Earnings
Development Net (Benefit) Operations Per Share
------------ --------- ---------- ---------- -----------
GAAP basis $ 37.2 $ (7.6) $ 33.2 $ 81.1 $ 0.76
Items
impacting
comparability
of results
between
periods:
--------------
Purchased
research &
development $ (6.4) $ - $ - $ 6.4
Investment
gains $ - $ 1.6 $ (0.6) $ (1.0)
------------ --------- ---------- ----------
Total $ (6.4) $ 1.6 $ (0.6) $ 5.4 $ 0.05
------------ --------- ---------- ---------- -----------
Adjusted
basis $ 30.8 $ (6.0) $ 32.6 $ 86.5 $ 0.81
============ ========= ========== ========== ===========
Six Months Ended June 30, 2007
--------------------------------------------------------
Other Income Income
(Income) Tax From Diluted
Research & Expense, Provision Continuing Earnings
Development Net (Benefit) Operations Per Share
------------ --------- ---------- ---------- -----------
GAAP basis $ 65.2 $ (16.2) $ 82.6 $ 199.1 $ 1.86
Items
impacting
comparability
of results
between
periods:
--------------
Purchased
research &
development $ (1.6) $ - $ 0.1 $ 1.5
------------ --------- ---------- ----------
Total $ (1.6) $ - $ 0.1 $ 1.5 $ 0.02
------------ --------- ---------- ---------- -----------
Adjusted
basis $ 63.6 $ (16.2) $ 82.7 $ 200.6 $ 1.88
============ ========= ========== ========== ===========
Six Months Ended June 30, 2006
--------------------------------------------------------
Other Income Income
(Income) Tax From Diluted
Research & Expense, Provision Continuing Earnings
Development Net (Benefit) Operations Per Share
------------ --------- ---------- ---------- -----------
GAAP basis $ 75.5 $ (15.3) $ 61.9 $ 162.6 $ 1.52
Items
impacting
comparability
of results
between
periods:
--------------
Purchased
research &
development $ (16.8) $ - $ 4.1 $ 12.7
Investment
gains $ - $ 1.6 $ (0.6) $ (1.0)
------------ --------- ---------- ----------
Total $ (16.8) $ 1.6 $ 3.5 $ 11.7 $ 0.11
------------ --------- ---------- ---------- -----------
Adjusted
basis $ 58.7 $ (13.7) $ 65.4 $ 174.3 $ 1.63
============ ========= ========== ========== ===========
Notes to Consolidated Statements of Income
- For the second quarter of 2007, research and development
expense included a charge of approximately $1.6 million pretax
for purchased research and development ($1.5 million
after-tax), or $0.02 diluted earnings per share from
continuing operations.
- For the second quarter of 2006, in addition to interest income
and exchange gains and losses, other (income) expense, net
included investment gains of approximately $1.6 million pretax
($1.0 million after-tax). For the second quarter ended June
30, 2006, research and development expense included a charge
of approximately $6.4 million pretax for purchased research
and development ($6.4 million after-tax). In total, these
certain items decreased income from continuing operations by
$5.4 million after-tax, or $0.05 diluted earnings per share
from continuing operations.
- For the six months ended June 30, 2007, research and
development expense included a charge of approximately $1.6
million pretax for purchased research and development ($1.5
million after-tax), or $0.02 diluted earnings per share from
continuing operations.
- For the six months ended June 30, 2006, in addition to
interest income and exchange gains and losses, other (income)
expense, net included investment gains of approximately $1.6
million pretax ($1.0 million after-tax). For the six months
ended June 30, 2006, research and development expense included
charges of approximately $16.8 million pretax for purchased
research and development ($12.7 million after-tax). In total,
these certain items decreased income from continuing
operations by $11.7 million after-tax, or $0.11 diluted
earnings per share from continuing operations.
In the first quarter 2007, the company completed its previously
disclosed plan to withdraw from the synthetic bulking market and
discontinue the sale of the Tegress(TM) synthetic bulking product,
which was formerly reported in the Urology product group.
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 U.S. 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) other (income) expense, net
excluding investment gains, (3) income tax provision excluding the tax
effect of the items set forth in (1) and (2) above; (4) income from
continuing operations excluding the items set forth in (1) through (3)
above; and (5) diluted earnings per share from continuing operations
excluding the items set forth in (1) through (3) above.
The company excluded the items described above because they may
cause certain statement 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
Vice President, Investor Relations
908-277-8413
or
Media Relations:
Holly P. Glass
Vice President, Government and Public Affairs
703-754-2848
SOURCE: C. R. Bard, Inc.
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