Diluted Earnings Per Share From Continuing Operations Up 68
Percent, 15 Percent on Adjusted Basis
MURRAY HILL, N.J.--(BUSINESS WIRE)--Jan. 31, 2008--C. R. Bard,
Inc. (NYSE: BCR) today reported 2007 fourth quarter financial results.
Fourth quarter 2007 net sales were $583.3 million, an increase of 12
percent over the prior-year period. Excluding the impact of foreign
exchange, fourth quarter 2007 net sales increased 9 percent over the
prior-year period.
For the fourth quarter 2007, net sales in the U.S. were $393.7
million and net sales outside the U.S. were $189.6 million, an
increase of 9 percent and 19 percent, respectively, over the
prior-year period. Excluding the impact of foreign exchange, fourth
quarter 2007 net sales outside the U.S. increased 9 percent over the
prior-year period.
Net sales for the full year 2007 were $2,202.0 million, an
increase of 11 percent over the prior-year period. Excluding the
impact of foreign exchange, full year 2007 net sales increased 9
percent over the prior-year period.
For the fourth quarter 2007, income from continuing operations was
$105.2 million and diluted earnings per share from continuing
operations were $1.01, an increase of 64 percent and 68 percent,
respectively, as compared to fourth quarter 2006 results. Adjusting
for items that affect comparability between periods as detailed in the
tables below, fourth quarter 2007 income from continuing operations
and related diluted earnings per share increased 12 percent and 15
percent, respectively, as compared to fourth quarter 2006 results.
For the full year 2007, income from continuing operations was
$406.4 million and diluted earnings per share from continuing
operations were $3.84, an increase of 29 percent and 31 percent,
respectively, as compared to full year 2006 results. Adjusting for
items that affect comparability between periods, full year 2007 income
from continuing operations and related diluted earnings per share
increased 15 percent and 16 percent, respectively, as compared to full
year 2006 results.
Timothy M. Ring, chairman and chief executive officer, commented,
"We are pleased to conclude our centennial year with solid fourth
quarter and full year results. Our 2007 performance marks the fifth
consecutive year that Bard has delivered adjusted EPS growth above the
company's target of 14 percent. This success demonstrates the
effectiveness of our strategy, and the ability of our organization to
execute. We look forward to making 2008 another successful year for
Bard and its shareholders."
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 September 30, 2007 Form 10-Q/A 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 Twelve Months Ended
December 31, December 31,
------------------- -----------------------
2007 2006 2007 2006
--------- --------- ----------- -----------
Net sales $583,300 $519,700 $2,202,000 $1,979,600
Costs and expenses:
Cost of goods sold 227,700 201,200 864,500 767,600
Marketing, selling &
administrative expense 169,700 158,800 644,800 615,200
Research & development
expense 36,600 38,500 135,800 144,900
Interest expense 3,100 3,700 11,900 16,900
Other (income) expense,
net (7,200) 42,300 (32,300) 40,400
--------- --------- ----------- -----------
Total costs and expenses 429,900 444,500 1,624,700 1,585,000
--------- --------- ----------- -----------
Income from continuing
operations before tax
provision 153,400 75,200 577,300 394,600
--------- --------- ----------- -----------
Income tax provision 48,200 11,100 170,900 80,100
--------- --------- ----------- -----------
Income from continuing
operations 105,200 64,100 406,400 314,500
--------- --------- ----------- -----------
Income (loss) from
discontinued operations,
net of tax - (42,100) - (42,400)
--------- --------- ----------- -----------
Net income $105,200 $ 22,000 $ 406,400 $ 272,100
========= ========= =========== ===========
Basic earnings per share
from continuing
operations $ 1.04 $ 0.62 $ 3.96 $ 3.04
Basic earnings (loss) per
share from discontinued
operations - $ (0.41) - $ (0.41)
Basic earnings per share $ 1.04 $ 0.21 $ 3.96 $ 2.63
Diluted earnings per share
from continuing
operations $ 1.01 $ 0.60 $ 3.84 $ 2.94
Diluted earnings (loss)
per share from
discontinued operations - $ (0.39) - $ (0.40)
Diluted earnings per share $ 1.01 $ 0.21 $ 3.84 $ 2.55
Wt. avg. common shares
outstanding - basic 101,000 103,300 102,700 103,500
Wt. avg. common shares
outstanding - diluted 104,100 106,800 105,900 106,900
Product Group Summary of Net Sales
(in thousands, unaudited)
Quarter Ended December 31,
-------------------------------------------------
Constant
2007 2006 Change Currency
------------ ----------- ----------- ------------
Vascular $141,900 $125,900 13% 8%
Urology 176,400 154,700 14% 12%
Oncology 148,000 128,600 15% 12%
Surgical
Specialties 96,500 90,100 7% 5%
Other 20,500 20,400 - -1%
------------ -----------
Continuing
operations 583,300 519,700 12%
------------ -----------
FX impact --- 14,600
------------ -----------
Constant currency $583,300 $534,300 9%
============ ===========
Twelve Months Ended December 31,
-------------------------------------------------
Constant
2007 2006 Change Currency
------------ ------------ ---------- ------------
Vascular $539,600 $479,600 13% 9%
Urology 658,900 582,000 13% 11%
Oncology 558,600 481,300 16% 14%
Surgical
Specialties 363,500 357,400 2% -
Other 81,400 79,300 3% 1%
------------ ------------
Continuing
operations 2,202,000 1,979,600 11%
------------ ------------
FX impact --- 40,000
------------ ------------
Constant currency $2,202,000 $2,019,600 9%
============ ============
Reconciliation of Earnings From Continuing Operations
(in millions except per share amounts, unaudited)
Quarter Ended December 31, 2007
--------------------------------------------------
Other Income Income Diluted
Research & (Income) Tax From Earnings
Development Expense, Provision Continuing Per
Expense Net (Benefit) Operations Share
----------- -------- --------- ---------- --------
GAAP basis $ 36.6 $ (7.2) $ 48.2 $ 105.2 $ 1.01
----------- -------- --------- ---------- --------
Adjusted basis $ 36.6 $ (7.2) $ 48.2 $ 105.2 $ 1.01
=========== ======== ========= ========== ========
Quarter Ended December 31, 2006
--------------------------------------------------
Other Income Income Diluted
Research & (Income) Tax From Earnings
Development Expense, Provision Continuing Per
Expense Net (Benefit) Operations Share
----------- -------- --------- ---------- --------
GAAP basis $ 38.5 $ 42.3 $ 11.1 $ 64.1 $ 0.60
Items that affect
comparability of
results between
periods:
--------------------
Purchased research &
development (7.2) - 0.4 6.8
Investment gains - 1.3 (0.5) (0.8)
Settlement of legal
matter - (49.0) 18.5 30.5
Settlement of a tax
matter by joint
venture in Japan - (1.2) - 1.2
Reduction in tax
provision - - 7.6 (7.6)
----------- -------- --------- ----------
Total (7.2) (48.9) 26.0 30.1 0.28
----------- -------- --------- ---------- --------
Adjusted basis $ 31.3 $ (6.6) $ 37.1 $ 94.2 $ 0.88
=========== ======== ========= ========== ========
Twelve Months Ended December 31, 2007
--------------------------------------------------
Other Income Income Diluted
Research & (Income) Tax From Earnings
Development Expense, Provision Continuing Per
Expense Net (Benefit) Operations Share
----------- -------- --------- ---------- --------
GAAP basis $ 135.8 $ (32.3) $ 170.9 $ 406.4 $ 3.84
Items that affect
comparability of
results between
periods:
--------------------
Purchased research &
development (1.6) - 0.1 1.5
Reduction in tax
provision - - 3.7 (3.7)
----------- -------- --------- ----------
Total (1.6) - 3.8 (2.2) (0.02)
----------- -------- --------- ---------- --------
Adjusted basis $ 134.2 $ (32.3) $ 174.7 $ 404.2 $ 3.82
=========== ======== ========= ========== ========
Twelve Months Ended December 31, 2006
--------------------------------------------------
Other Income Income Diluted
Research & (Income) Tax From Earnings
Development Expense, Provision Continuing Per
Expense Net (Benefit) Operations Share
----------- -------- --------- ---------- --------
GAAP basis $ 144.9 $ 40.4 $ 80.1 $ 314.5 $ 2.94
Items that affect
comparability of
results between
periods:
--------------------
Purchased research &
development (24.0) - 4.5 19.5
Investment gains - 2.9 (1.1) (1.8)
Settlement of legal
matter - (69.0) 25.9 43.1
Settlement of a tax
matter by joint
venture in Japan - (1.2) - 1.2
Reduction in tax
provision - - 23.8 (23.8)
----------- -------- --------- ----------
Total (24.0) (67.3) 53.1 38.2 0.36
----------- -------- --------- ---------- --------
Adjusted basis $ 120.9 $ (26.9) $ 133.2 $ 352.7 $ 3.30
=========== ======== ========= ========== ========
Notes to Consolidated Statements of Income
-- For the fourth quarter ended December 31, 2007, there were no
items that met the criteria described below that affected the
comparability of results between periods.
-- For the fourth quarter ended December 31, 2006, the following
items affected the comparability of results between periods:
(i) charges totaling approximately $7.2 million pretax ($6.8
million after-tax) for purchased research and development;
(ii) investment gains of approximately $1.3 million pretax
($0.8 million after-tax); (iii) a charge of approximately
$49.0 million pretax ($30.5 million after-tax) for the
settlement of a legal matter; (iv) a charge of approximately
$1.2 million pretax ($1.2 million after-tax) related to the
settlement of a tax matter by the company's joint venture in
Japan; and (v) a reduction in the income tax provision of
approximately $7.6 million predominantly related to the
expiration of the statute of limitations in the United States
for the 2002 tax year. The net effect of these items decreased
income from continuing operations by $30.1 million after-tax,
or $0.28 diluted earnings per share from continuing
operations.
-- For the year ended December 31, 2007, the following items
affected the comparability of results between periods: (i) a
charge of approximately $1.6 million pretax ($1.5 million
after-tax) for purchased research and development; and (ii) a
reduction in the income tax provision of approximately $3.7
million due to changes in certain statutory tax rates outside
the United States that resulted in the revaluation of deferred
taxes. The net effect of these items increased income from
continuing operations by $2.2 million after-tax, or $0.02
diluted earnings per share from continuing operations.
-- For the year ended December 31, 2006, the following items
affected the comparability of results between periods: (i)
charges of approximately $24.0 million pretax ($19.5 million
after-tax) for purchased research and development; (ii)
investment gains of approximately $2.9 million pretax ($1.8
million after-tax); (iii) a charge of approximately $69.0
million pretax ($43.1 million after-tax) for the settlement of
legal matters; (iv) a charge of approximately $1.2 million
pretax ($1.2 million after-tax) related to the settlement of a
tax matter by the company's joint venture in Japan; and (v) a
reduction in the income tax provision of approximately $23.8
million predominately related to the expiration of the statute
of limitations in the United States for the tax years 2000
through 2002. The net effect of these items decreased income
from continuing operations by $38.2 million after-tax, or
$0.36 diluted earnings per share from continuing operations.
In the first quarter of 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 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) other (income) expense, net
excluding investment gains, a charge for the settlement of a legal
matter, and a charge related to the settlement of a tax matter by the
company's joint venture operating in Japan; (3) income tax provision
excluding reductions relating to expired statutes of limitations,
reductions relating to changes in statutory tax rates and 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 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.
|
