Browse Careers
Browse Investors

Bard Announces Third Quarter Results

Revenue up 13 Percent as Reported, 11 Percent Excluding Foreign Exchange

MURRAY HILL, N.J.--(BUSINESS WIRE)--C. R. Bard, Inc. (NYSE: BCR) today reported 2008 third quarter financial results. Third quarter 2008 net sales were $616.8 million, an increase of 13 percent over the prior-year period. Excluding the impact of foreign exchange, third quarter 2008 net sales increased 11 percent over the prior-year period.

For the third quarter 2008, net sales in the U.S. were $419.5 million and net sales outside the U.S. were $197.3 million, an increase of 11 percent and 18 percent, respectively, over the prior-year period. Excluding the impact of foreign exchange, third quarter 2008 net sales outside the U.S. increased 11 percent over the prior-year period.

For the third quarter 2008, net income was $111.2 million and diluted earnings per share were $1.09, an increase of 9 percent and 14 percent, respectively, as compared to third quarter 2007 results. Adjusting for items that affect comparability between periods as detailed in the tables below, third quarter 2008 net income was $112.4 million and diluted earnings per share were $1.10, an increase of 14 percent and 18 percent, respectively, as compared to third quarter 2007 results.

Timothy M. Ring, chairman and chief executive officer, commented, "Bard's performance this quarter was solid from the top down. Our broad product portfolio delivered another quarter of strong revenue growth while expanded margins helped us achieve adjusted EPS above our 14 percent growth target. Our dedicated employees, innovative products and disciplined financial management are great assets that position us well in a turbulent economic environment."

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 June 30, 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
      (dollars in thousands except per share amounts, unaudited)
                               Quarter Ended      Nine Months Ended
                               September 30,        September 30,
                            ------------------- ----------------------
                              2008      2007       2008       2007
                            --------- --------- ---------- -----------

Net sales                   $616,800  $544,800  $1,817,900 $1,618,700
Costs and expenses
   Cost of goods sold        239,500   213,700     708,600    636,800
   Marketing, selling &
    administrative expense   180,600   160,900     530,300    475,100
   Research and development
    expense                   35,100    34,000     159,100     99,200
   Interest expense            3,100     2,900       9,100      8,800
   Other (income) expense ,
    net                       (1,900)   (8,900)     26,700    (25,100)
                            --------- --------- ---------- -----------

Total costs and expenses     456,400   402,600   1,433,800  1,194,800
                            --------- --------- ---------- -----------
Income from continuing
 operations before income
 taxes                       160,400   142,200     384,100    423,900
                            --------- --------- ---------- -----------

   Income tax provision       49,200    40,100     117,000    122,700
                            --------- --------- ---------- -----------
Income from continuing
 operations                  111,200   102,100     267,100    301,200
                            --------- --------- ---------- -----------

Income from discontinued
 operations                        -         -           -          -
                            --------- --------- ---------- -----------

Net income                  $111,200  $102,100  $  267,100 $  301,200
                            ========= ========= ========== ===========

Basic earnings per share:
   Income from continuing
    operations              $   1.12  $   0.99  $     2.68 $     2.92
   Net income per share     $   1.12  $   0.99  $     2.68 $     2.92
                            ========= ========= ========== ===========

Diluted earnings per share:
   Income from continuing
    operations              $   1.09  $   0.96  $     2.60 $     2.83
   Net income per share     $   1.09  $   0.96  $     2.60 $     2.83
                            ========= ========= ========== ===========

Wt. avg. common shares
 outstanding - basic          99,300   102,700      99,600    103,100

Wt. avg. common shares
 outstanding - diluted       102,300   105,900     102,700    106,400
                  Product Group Summary of Net Sales
                  (dollars in thousands, unaudited)


                                        Quarter Ended September 30,
                                     ---------------------------------
                                                              Constant
                                       2008     2007   Change Currency
                                     ---------------------------------
Vascular                             $160,600 $134,100    20%      15%
Urology                               174,500  166,400     5%       4%
Oncology                              169,300  140,900    20%      18%
Surgical Specialties                   90,800   83,400     9%       7%
Other                                  21,600   20,000     8%       8%
                                     -----------------

Net sales                            $616,800 $544,800    13%
                                     -----------------

FX impact                                       10,900
                                     -----------------
Constant Currency                    $616,800 $555,700             11%
                                     =================

                                    Nine Months Ended September 30,
                                --------------------------------------
                                                              Constant
                                    2008       2007    Change Currency
                                --------------------------------------
Vascular                         $  474,600 $  397,700    19%      14%
Urology                             519,600    482,500     8%       6%
Oncology                            483,000    410,600    18%      15%
Surgical Specialties                272,700    267,000     2%       -
Other                                68,000     60,900    12%      11%
                                 ---------------------

Net sales                        $1,817,900 $1,618,700    12%
                                 ---------------------

FX impact                                       39,100
                                 ---------------------
Constant Currency                $1,817,900 $1,657,800             10%
                                 =====================
                      Reconciliation of Earnings
      (dollars in millions except per share amounts, unaudited)


                                     Quarter Ended September 30, 2008
                                     ---------------------------------

                                     Cost of Research &     Other
                                      Goods  Development   (Income)
                                      Sold     Expense   Expense, Net
                                     ------- ----------- -------------

GAAP Basis                           $239.5      $ 35.1       $ (1.9)
Items that affect comparability of
 results between periods:
------------------------------------
Reorganization costs                      -           -         (1.3)
Gain on asset sale                        -           -          0.7
Tax adjustment                            -           -            -
                                     ------- ----------- -------------
    Total                                 -           -         (0.6)

                                     ------- ----------- -------------
Adjusted Basis                       $239.5      $ 35.1       $ (2.5)
                                     ======= =========== =============


                                     Quarter Ended September 30, 2007
                                     ---------------------------------

                                     Cost of Research &     Other
                                      Goods  Development   (Income)
                                      Sold     Expense   Expense, Net
                                     ------- ----------- -------------

GAAP Basis                           $213.7      $ 34.0       $ (8.9)
Items that affect comparability of
 results between periods:
------------------------------------
Tax adjustment                            -           -            -
                                     ------- ----------- -------------
    Total                                 -           -            -

                                     ------- ----------- -------------
Adjusted Basis                       $213.7      $ 34.0       $ (8.9)
                                     ======= =========== =============


                                     Nine Months Ended September 30,
                                                    2008
                                     ---------------------------------

                                     Cost of Research &     Other
                                      Goods  Development   (Income)
                                      Sold     Expense   Expense, Net
                                     ------- ----------- -------------

GAAP Basis                           $708.6      $159.1       $ 26.7
Items that affect comparability of
 results between periods:
------------------------------------
Asset disposition                      (3.7)          -        (36.8)
Reorganization costs                      -           -         (1.3)
Purchased research & development          -       (49.3)           -
Gain on asset sale                        -           -          0.7
Tax adjustment                            -           -            -
                                     ------- ----------- -------------
    Total                              (3.7)      (49.3)       (37.4)

                                     ------- ----------- -------------
Adjusted Basis                       $704.9      $109.8       $(10.7)
                                     ======= =========== =============


                                     Nine Months Ended September 30,
                                                    2007
                                     ---------------------------------

                                     Cost of Research &     Other
                                      Goods  Development   (Income)
                                      Sold     Expense   Expense, Net
                                     ------- ----------- -------------

GAAP Basis                           $636.8      $ 99.2       $(25.1)
Items that affect comparability of
 results between periods:
------------------------------------
Purchased research & development          -        (1.6)           -
Tax adjustment                            -           -            -
                                     ------- ----------- -------------
    Total                                 -        (1.6)           -

                                     ------- ----------- -------------
Adjusted Basis                       $636.8      $ 97.6       $(25.1)
                                     ======= =========== =============



* Items may not add due to rounding.

                                          Quarter Ended September 30,
                                                      2008
                                         -----------------------------
                                            Income
                                              Tax      Net    Diluted
                                           Provision Income  Earnings
                                           (Benefit) (Loss)  Per Share
                                           --------- ------- ---------

GAAP Basis                                   $ 49.2  $111.2    $ 1.09
Items that affect comparability of
 results between periods:
-----------------------------------------
Reorganization costs                            0.5     0.8
Gain on asset sale                             (0.1)   (0.6)
Tax adjustment                                 (1.0)    1.0
                                           --------- ------- ---------
    Total                                      (0.6)    1.2      0.01

                                           --------- ------- ---------
Adjusted Basis                               $ 48.6  $112.4    $ 1.10
                                           ========= ======= =========


                                          Quarter Ended September 30,
                                                      2007
                                         -----------------------------
                                            Income
                                              Tax      Net    Diluted
                                           Provision Income  Earnings
                                           (Benefit) (Loss)  Per Share
                                           --------- ------- ---------

GAAP Basis                                   $ 40.1  $102.1    $ 0.96
Items that affect comparability of
 results between periods:
-----------------------------------------
Tax adjustment                                  3.7    (3.7)
                                           --------- ------- ---------
    Total                                       3.7    (3.7)    (0.03)

                                           --------- ------- ---------
Adjusted Basis                               $ 43.8  $ 98.4    $ 0.93
                                           ========= ======= =========


                                          Nine Months Ended September
                                                    30, 2008
                                         -----------------------------
                                            Income
                                              Tax      Net    Diluted
                                           Provision Income  Earnings
                                           (Benefit) (Loss)  Per Share
                                           --------- ------- ---------

GAAP Basis                                   $117.0  $267.1    $ 2.60
Items that affect comparability of
 results between periods:
-----------------------------------------
Asset disposition                               5.6    34.9
Reorganization costs                            0.5     0.8
Purchased research & development               18.2    31.1
Gain on asset sale                             (0.1)   (0.6)
Tax adjustment                                 (1.0)    1.0
                                           --------- ------- ---------
    Total                                      23.2    67.2      0.65

                                           --------- ------- ---------
Adjusted Basis                               $140.2  $334.3    $ 3.26*
                                           ========= ======= =========


                                          Nine Months Ended September
                                                    30, 2007
                                         -----------------------------
                                            Income
                                              Tax      Net    Diluted
                                           Provision Income  Earnings
                                           (Benefit) (Loss)  Per Share
                                           --------- ------- ---------

GAAP Basis                                   $122.7  $301.2    $ 2.83
Items that affect comparability of
 results between periods:
-----------------------------------------
Purchased research & development                0.1     1.5
Tax adjustment                                  3.7    (3.7)
                                           --------- ------- ---------
    Total                                       3.8    (2.2)    (0.02)

                                           --------- ------- ---------
Adjusted Basis                               $126.5  $299.0    $ 2.81
                                           ========= ======= =========



* Items may not add due to rounding.

Notes to Reconciliation of Earnings

  • For the third quarter 2008, the following items affected the comparability of results between periods: (i) a charge of $1.3 million pretax for reorganization costs; (ii) a gain of $0.7 million pretax associated with the sale of an asset; and (iii) an increase of $1.0 million in the income tax provision due to a tax-related interest adjustment. The net effect of these items decreased net income by $1.2 million, or $0.01 diluted earnings per share.
  • For the third quarter 2007, a reduction in the income tax provision of $3.7 million for changes in certain statutory tax rates outside the United States that resulted in the revaluation of deferred taxes affected the comparability of results between periods. The effect of this item increased net income by $3.7 million, or $0.03 diluted earnings per share.
  • For the nine months ended September 30, 2008, the following items affected the comparability of results between periods: (i) a charge of $40.5 million pretax for an asset disposition; (ii) a charge of $1.3 million pretax for reorganization costs; (iii) a charge of $49.3 million pretax for purchased research and development; (iv) a gain of $0.7 million pretax associated with the sale of an asset; and (v) an increase of $1.0 million in the income tax provision due to a tax-related interest adjustment. The net effect of these items decreased net income by $67.2 million, or $0.65 diluted earnings per share.
  • For the nine months ended September 30, 2007, the following items impacted the comparability of results between periods: (i) a charge of $1.6 million pretax for purchased research and development; and (ii) a reduction in the income tax provision of $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 net income by $2.2 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 charges for an asset disposition and reorganization costs as well as a gain on an asset sale; (4) income tax provision excluding an increase related to a tax-related interest adjustment, a reduction related to changes in statutory tax rates and 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.


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