MURRAY HILL, N.J., Jan 31, 2011 (BUSINESS WIRE) --

C. R. Bard, Inc. (NYSE: BCR) today reported 2010 fourth quarter financial results. Fourth quarter 2010 net sales were $717.1 million, an increase of 6 percent over the prior-year period. Excluding the impact of foreign exchange, fourth quarter 2010 net sales increased 7 percent over the prior-year period.

For the fourth quarter 2010, net sales in the U.S. were $490.3 million and net sales outside the U.S. were $226.8 million, an increase of 6 percent and 5 percent, respectively, over the prior-year period. Excluding the impact of foreign exchange, fourth quarter 2010 net sales outside the U.S. increased 8 percent over the prior-year period.

Net sales for the full year 2010 were $2,720.2 million, an increase of 7 percent over the prior-year period. Excluding the impact of foreign exchange, full year 2010 net sales increased 7 percent over the prior-year period.

For the fourth quarter 2010, net income attributable to common shareholders was $136.2 million and diluted earnings per share available to common shareholders were $1.47, an increase of 29 percent and 36 percent, respectively, as compared to fourth quarter 2009 results. Adjusting for items that affect comparability between periods as detailed in the tables below, fourth quarter 2010 net income attributable to common shareholders was $143.4 million and diluted earnings per share available to common shareholders were $1.54, an increase of 5 percent and 11 percent, respectively, as compared to fourth quarter 2009 results.

For the full year 2010, net income attributable to common shareholders was $509.2 million and diluted earnings per share available to common shareholders were $5.32, an increase of 11 percent and 16 percent, respectively, as compared to full year 2009 results. Adjusting for items that affect comparability between periods, full year 2010 net income attributable to common shareholders was $535.7 million and diluted earnings per share available to common shareholders were $5.60, an increase of 5 percent and 10 percent, respectively, as compared to full year 2009 results.

Timothy M. Ring, chairman and chief executive officer, commented, "In 2010, we achieved another year of solid results in a challenging environment. Bard continued to drive revenue growth through innovation, providing clinicians with differentiated products to better meet the needs of patients. We reached record levels of organic research and development, business development, gross margin, and sales-force deployment, all key components of our growth strategy. Once again, we delivered strong EPS growth while investing and building for our future."

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, 2010 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.

Notes to Reconciliation of Earnings

• For the fourth quarter 2010, the following items affected the comparability of results between periods: (i) a charge of $2.6 million pre-tax for acquisition related items including purchased research and development, transaction costs, which consisted primarily of legal and valuation costs, and purchase accounting adjustments; (ii) a charge of $16.7 million pre-tax for restructuring; and (iii) a decrease of $6.2 million in the income tax provision associated with the completion of certain foreign tax examinations, and the expiration of statutes of limitations in foreign jurisdictions. The net effect of these items decreased net income attributable to common shareholders by $7.2 million, or $0.08 diluted earnings per share available to common shareholders.
• For the fourth quarter 2009, the following items affected the comparability of results between periods: (i) a charge of $18.5 million pre-tax for acquisition related items including purchased research and development, transaction costs, which consisted primarily of legal and valuation costs, purchase accounting adjustments and integration costs; (ii) a charge of $2.7 million pre-tax for an asset disposition; (iii) a charge of $25.0 million pre-tax related to an insurance settlement; (iv) a gain of $18.0 million pre-tax for an insurance recovery; and (v) an increase of $2.1 million in the income tax provision resulting from a tax assessment that related to prior periods. The net effect of these items decreased net income attributable to common shareholders by $30.9 million, or $0.32 diluted earnings per share available to common shareholders.
• For the twelve months ended December 31, 2010, the following items affected the comparability of results between periods: (i) a charge of $20.8 million pre-tax for acquisition related items including purchased research and development, transaction costs, which consisted primarily of legal and valuation costs, purchase accounting adjustments and integration costs; (ii) a charge of $3.8 million pre-tax for the write-down of public hospital receivables in Greece; (iii) a charge of $16.7 million pre-tax for restructuring; and (iv) a net decrease of $4.8 million in the income tax provision, including a decrease of $10.4 million due to a remeasurement of certain tax positions related to the completion of the IRS examinations of the tax years 2003 and 2004, the completion of certain foreign tax examinations, and the expiration of statutes of limitations in foreign jurisdictions, offset by an increase of $5.6 million due to cash repatriation of certain foreign earnings as a result of new tax legislation. The net effect of these items decreased net income attributable to common shareholders by $26.5 million, or $0.28 diluted earnings per share available to common shareholders.
• For the twelve months ended December 31, 2009, the following items affected the comparability of results between periods: (i) a charge of $21.7 million pre-tax for acquisition related items including purchased research and development, transaction costs, which consisted primarily of legal and valuation costs, purchase accounting adjustments and integration costs; (ii) a charge of $8.4 million pre-tax for asset dispositions; (iii) a charge of $25.0 million pre-tax related to an insurance settlement; (iv) a gain of $18.0 million pre-tax for an insurance recovery; (v) a charge of $15.4 million pre-tax for restructuring; and (vi) an increase of $2.1 million in the income tax provision resulting from a tax assessment that related to prior periods. The net effect of these items decreased net income attributable to common shareholders by $49.4 million, or $0.49 diluted earnings per share available to common shareholders.

This press release contains financial measures that are not calculated in accordance with United States generally accepted accounting principles (GAAP). These non-GAAP 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 charges for an asset disposition and acquisition related items; (2) marketing, selling and administrative expense excluding charges for acquisition related items and the write-down of public hospital receivables in Greece; (3) research and development expense excluding acquisition related items; (4) other (income) expense, net, excluding charges for restructuring, acquisition related items, asset dispositions, an insurance settlement, and a gain related to an insurance recovery; (5) income tax provision excluding a decrease due to reductions of certain tax positions and excluding an increase resulting from a cash repatriation of certain foreign earnings, and the tax effect of the items set forth in (1) through (4) above; (6) net income attributable to common shareholders excluding the items set forth in (1) through (5) above; and (7) diluted earnings per share available to common shareholders excluding the items set forth in (1) through (5) 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 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 information. Management compensates for these limitations by providing full disclosure of each non-GAAP measure and a reconciliation to the most directly comparable GAAP measure. All non-GAAP 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:
Scott T. Lowry, 908-277-8365
Vice President and Treasurer