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Bard Announces Second Quarter Results

Revenue up 13 Percent as Reported, 10 Percent Excluding Foreign Exchange

MURRAY HILL, N.J., Jul 23, 2008 (BUSINESS WIRE) -- C. R. Bard, Inc. (NYSE: BCR) today reported 2008 second quarter financial results. Second quarter 2008 net sales were $617.1 million, an increase of 13 percent over the prior-year period. Excluding the impact of foreign exchange, second quarter 2008 net sales increased 10 percent over the prior-year period.

For the second quarter 2008, net sales in the U.S. were $406.3 million and net sales outside the U.S. were $210.8 million, an increase of 8 percent and 23 percent, respectively, over the prior-year period. Excluding the impact of foreign exchange, second quarter 2008 net sales outside the U.S. increased 13 percent over the prior-year period.

For the second quarter 2008, net income was $77.9 million and diluted earnings per share were $0.76, a decrease of 20 percent and 16 percent, respectively, as compared to second quarter 2007 results. Adjusting for items that affect comparability between periods as detailed in the tables below, second quarter 2008 net income was $112.8 million and diluted earnings per share were $1.10, an increase of 14 percent and 18 percent, respectively, as compared to second quarter 2007 results.

Timothy M. Ring, chairman and chief executive officer, commented, "We are pleased with our overall performance in the second quarter. Through the strength of our diversified portfolio, we delivered double-digit revenue growth in constant currency. Earnings results were again strong and we continue to invest for long-term growth through our new product and business development activities."

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 March 31, 2008 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
          (in thousands except per share amounts, unaudited)

                               Quarter Ended       Six Months Ended
                                  June 30,             June 30,
                             ------------------ ----------------------
                               2008     2007       2008       2007
                             -------- --------- ---------- -----------

Net Sales                    $617,100 $545,700  $1,201,100 $1,073,900
Cost and Expenses
  Cost of goods sold          243,600  216,600     469,100    423,100
  Marketing, selling &
   administrative expense     180,800  160,500     349,700    314,200
  Research and development
   expense                     38,200   35,100     124,000     65,200
  Interest expense              3,000    3,000       6,000      5,900
  Other (income) expense,
   net                         32,600   (8,800)     28,600    (16,200)
                             -------- --------- ---------- -----------

Total costs and expenses      498,200  406,400     977,400    792,200
                             -------- --------- ---------- -----------
Income from continuing
 operations before income
 taxes                        118,900  139,300     223,700    281,700
                             -------- --------- ---------- -----------

  Income tax provision         41,000   41,800      67,800     82,600
                             -------- --------- ---------- -----------
Income from continuing
 operations                    77,900   97,500     155,900    199,100
                             -------- --------- ---------- -----------
Income on discontinued
 operations                         -        -           -          -
                             -------- --------- ---------- -----------
Net income                   $ 77,900 $ 97,500  $  155,900 $  199,100
                             ======== ========= ========== ===========

Basic earnings per share:
  Income from continuing
   operations                $   0.78 $   0.94  $     1.56 $     1.93
  Net income per share       $   0.78 $   0.94  $     1.56 $     1.93
                             ======== ========= ========== ===========

Diluted earnings per share:
Income from continuing
 operations                  $   0.76 $   0.91  $     1.52 $     1.86
Net income per share         $   0.76 $   0.91  $     1.52 $     1.86
                             ======== ========= ========== ===========

Wt. avg. common shares
 outstanding - basic           99,300  103,600      99,700    103,400

Wt. avg. common shares
 outstanding - diluted        102,400  106,900     102,900    106,800

                  Product Group Summary of Net Sales
                      (in thousands, unaudited)


                                        Quarter Ended June 30,
                                 -------------------------------------
                                                              Constant
                                    2008       2007    Change Currency
                                 -------------------------------------
Vascular                           $163,600   $135,900    20%      14%
Urology                             176,400    160,900    10%       8%
Oncology                            163,700    141,900    15%      13%
Surgical Specialties                 88,900     86,500     3%        -
Other                                24,500     20,500    20%      18%
                                 ---------------------

Net sales                          $617,100   $545,700    13%
                                 ---------------------
FX impact                                       16,100
                                 ---------------------
Constant Currency                  $617,100   $561,800             10%
                                 =====================

                                       Six Months Ended June 30,
                                --------------------------------------
                                                              Constant
                                    2008       2007    Change Currency
                                --------------------------------------
Vascular                           $314,000   $263,600    19%      14%
Urology                             345,100    316,100     9%       7%
Oncology                            313,700    269,700    16%      14%
Surgical Specialties                181,900    183,600   (1)%     (3)%
Other                                46,400     40,900    13%      12%
                                 ---------------------

Net sales                        $1,201,100 $1,073,900    12%
                                 ---------------------
FX impact                                       28,200
                                 ---------------------
Constant Currency                $1,201,100 $1,102,100              9%
                                 =====================

                      Reconciliation of Earnings
          (in millions except per share amounts, unaudited)

                             Quarter Ended June 30, 2008
                ------------------------------------------------------
                Cost                 Other    Income          Diluted
                  of    Research &  (Income)    Tax     Net   Earnings
                 Goods Development  Expense, Provision Income   Per
                 Sold    Expense      Net    (Benefit) (Loss)   Share
                ------------------------------------------------------
GAAP Basis      $243.6        $38.2    $32.6     $41.0  $77.9    $0.76
Items that
 affect
 comparability
 of results
 between
 periods:
---------------
Asset
 disposition     (3.7)            -   (36.8)       5.6   34.9
                ------------------------------------------------------
   Total         (3.7)            -   (36.8)       5.6   34.9     0.34
                ------------------------------------------------------
Adjusted Basis  $239.9        $38.2   $(4.2)     $46.6 $112.8    $1.10
                ======================================================

                             Quarter Ended June 30, 2007
                ------------------------------------------------------
                Cost                 Other    Income          Diluted
                  of    Research &  (Income)    Tax     Net   Earnings
                Goods  Development  Expense, Provision Income   Per
                 Sold    Expense      Net    (Benefit) (Loss)   Share
                ------------------------------------------------------
GAAP Basis      $216.6        $35.1   $(8.8)     $41.8  $97.5    $0.91
Items that
 affect
 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  $216.6        $33.5   $(8.8)     $41.9  $99.0    $0.93
                ======================================================

                            Six Months Ended June 30, 2008
                ------------------------------------------------------
                Cost                 Other    Income          Diluted
                  of    Research &  (Income)    Tax     Net   Earnings
                Goods  Development  Expense, Provision Income   Per
                 Sold    Expense      Net    (Benefit) (Loss)   Share
                ------------------------------------------------------
GAAP Basis      $469.1       $124.0    $28.6     $67.8 $155.9    $1.52
Items that
 affect
 comparability
 of results
 between
 periods:
---------------
Asset
 disposition     (3.7)            -   (36.8)       5.6   34.9
Purchased
 research &
 development         -       (49.3)        -      18.2   31.1
                ------------------------------------------------------
   Total         (3.7)       (49.3)   (36.8)      23.8   66.0     0.64
                ------------------------------------------------------
Adjusted Basis  $465.4        $74.7   $(8.2)     $91.6 $221.9    $2.16
                ======================================================

                            Six Months Ended June 30, 2007
                ------------------------------------------------------
                Cost                 Other    Income          Diluted
                  of    Research &  (Income)    Tax     Net   Earnings
                Goods  Development  Expense, Provision Income   Per
                 Sold    Expense      Net    (Benefit) (Loss)   Share
                ------------------------------------------------------
GAAP Basis      $423.1        $65.2  $(16.2)     $82.6 $199.1    $1.86
Items that
 affect
 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  $423.1        $63.6  $(16.2)     $82.7 $200.6    $1.88
                ======================================================

Notes

-- For the second quarter 2008, a charge of $40.5 million pretax for an asset disposition affected the comparability of results between periods. The effect of this charge decreased net income by $34.9 million, or $0.34 diluted earnings per share.

-- For the second quarter 2007, a charge of $1.6 million pretax for purchased research and development affected the comparability of results between periods. The effect of this charge decreased net income by $1.5 million, or $0.02 diluted earnings per share.

-- For the six months ended June 30, 2008, charges of $49.3 million pretax for purchased research and development and $40.5 million pretax for an asset disposition affected the comparability of results between periods. The effect of these charges decreased net income by $66.0 million, or $0.64 diluted earnings per share.

-- For the six months ended June 30, 2007, a charge of $1.6 million pretax for purchased research and development affected the comparability of results between periods. The effect of this charge decreased net income by $1.5 million, or $0.02 diluted earnings per share.

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) cost of goods sold excluding a charge for an asset disposition; (2) research & development expense excluding payments for purchased research and development; (3) other (income) expense, net excluding a charge for an asset disposition; (4) the tax effect of the items set forth in (1) through (3) above; (5) net income excluding the items set forth in (1) through (4) above; and (6) diluted earnings per share excluding the items set forth in (1) through (4) 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.

SOURCE: C. R. Bard, Inc.

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


bard-pubs

Primary Media Relations Contact

Scott Lowry
Vice President and Treasurer
C. R. Bard, Inc.
730 Central Avenue
Murray Hill, NJ 07974

Tel: 908-277-8365