MURRAY HILL, N.J.--(BUSINESS WIRE)--Oct. 16, 2002--C. R. Bard,
Inc. (NYSE-BCR) today reported net sales of $322.7 million for the
quarter ended September 30, 2002, up 8 percent over the prior-year
period.
For the quarter ended September 30, 2001, Bard reported net sales
of $297.8 million. Adjusting for the favorable impact of foreign
exchange, third quarter net sales increased 7 percent.
Reported net income for the third quarter was $29.8 million and
diluted earnings per share were 57 cents. Included in reported net
income for the quarter are non-recurring items including charges
totaling $24.6 million pre-tax associated with the previously
announced realignment of certain divisional and manufacturing
operations and a tax credit of $3.5 million. The net after-tax impact
of these non-recurring items was $14.8 million or 28 cents per diluted
share. Excluding the impact of the non-recurring items, net income for
the third quarter was $44.6 million and diluted earnings per share
were 85 cents, 2 cents above Wall Street consensus estimates.
In the prior-year quarter, Bard reported net income of $35.7
million and diluted earnings per share of 68 cents, which includes
pre-tax goodwill amortization of $3.3 million (6 cents per diluted
share) that is not required for years subsequent to 2001. Excluding
the impact of the non-recurring items recorded in the third quarter of
2002 and the impact of goodwill amortization on the third quarter
2001, net income and diluted earnings per share for the quarter were
both up 15 percent over 2001 third quarter results.
William H. Longfield, chairman and chief executive officer,
commented, "We continue to be pleased with the consistency of our
sales performance. In addition, this quarter's realignment efforts
will generate approximately $15 million in annual savings by 2004. In
total, our 2002 realignment efforts will be less costly than first
anticipated and are progressing at a faster pace than we planned.
Gross margins should begin to expand as early as the fourth quarter.
Combine this with the recent improvements in our tax rate and we
become very comfortable with our ability to expand R&D funding in the
next several quarters."
For the third quarter, net sales in the U.S. were $234.5 million,
up 7 percent, and net sales outside the U.S. were $88.2 million, up 11
percent over the prior-year period. Adjusting for the favorable impact
of foreign exchange, net sales outside the U.S. increased by 4 percent
over the prior-year period.
The accompanying tables summarize the impact of the 2002
non-recurring items and 2001 goodwill amortization on diluted earnings
per share for both the quarter and year-to-date results.
C. R. Bard, Inc., (www.crbard.com) headquartered in Murray Hill,
New Jersey, is a leading multinational developer, manufacturer and
marketer of health care products in the fields of vascular, urology,
oncology and surgical specialty products.
This press release contains forward-looking statements, including
statements about future cost savings, the accuracy of which is
necessarily subject to risks and uncertainties. It is not possible to
predict or identify all such risks and uncertainties, but such risks
include that we may not achieve manufacturing or administrative
efficiencies as a result of our realignment efforts. In addition,
please refer to our June 30, 2002 Form 10-Q for a statement with
regard to forward-looking statements, including disclosure of
additional factors that could cause actual results to differ
materially from those expressed or implied.
C. R. Bard, Inc.
Consolidated Statements of Income
(thousands of dollars except per share amounts, unaudited)
Quarter Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2002 2001 2002 2001
--------- --------- --------- ---------
Net sales $322,700 $297,800 $942,100 $878,500
Costs and expenses:
Cost of goods sold 149,200 139,500 435,700 410,200
Marketing, selling &
administrative (1) 95,200 91,200 276,300 272,300
Research & development
expense 14,900 13,100 44,100 40,300
Interest expense 3,100 3,500 9,500 11,200
Other (income) expense,
net (2) 23,600 (700) 30,000 (4,100)
--------- --------- --------- ---------
Total costs and expenses 286,000 246,600 795,600 729,900
--------- --------- --------- ---------
Income before taxes 36,700 51,200 146,500 148,600
Income tax provision (2) 6,900 15,500 38,100 44,700
--------- --------- --------- ---------
Net income $29,800 $35,700 $108,400 $103,900
========= ========= ========= =========
Basic earnings per share $0.58 $0.70 $2.08 $2.04
========= ========= ========= =========
Diluted earnings per share $0.57 $0.68 $2.05 $2.01
========= ========= ========= =========
Average common shares
outstanding - basic 51,700 51,300 52,100 51,000
Average common shares
outstanding - diluted 52,300 52,300 52,900 51,700
(1) 2001 marketing, selling & administrative expense includes $3.3
million pretax ($0.06 diluted earnings per share) and $9.9 million
pretax ($0.18 diluted earnings per share) of goodwill amortization for
the third quarter and nine month period, respectively. Goodwill
amortization is not required for fiscal years beginning after December
15, 2001 per Financial Accounting Standard 142, "Goodwill and Other
Intangible Assets".
(2) In addition to interest income and exchange gains and losses,
third quarter 2002 other (income) expense, net includes special
charges related to the realignment of certain divisional and
manufacturing operations ($24.6 million pretax). These special charges
and a $3.5 million tax credit (included in income tax provision)
related to a change in a statutory tax rate result in an impact of
$0.28 on diluted earnings per share. In addition to interest income
and exchange gains and losses, first quarter 2002 other (income)
expense, net includes special charges related to the termination of
the Tyco merger ($6.2 million pretax $0.08 diluted earnings per
share), divisional and manufacturing consolidation projects ($2.6
million pretax $0.03 diluted earnings per share) and corporate
severance related costs ($6.5 million pretax $0.08 diluted earnings
per share). These charges are offset with the reversal of certain
legal accruals ($5.0 million pretax $0.06 diluted earnings per share).
Product Group Summary of Net Sales
Quarter Ended September 30,
-----------------------------------
Constant
2002 2001 Change Currency
--------- --------- ------ --------
Vascular $65,600 $62,600 5% 1%
Urology 107,100 100,000 7% 6%
Oncology 76,100 70,700 8% 7%
Surgery 56,800 49,700 14% 13%
Other 17,100 14,800 16% 13%
--------- ---------
Total net sales $322,700 $297,800 8% 7%
========= =========
Nine Months Ended September 30,
-----------------------------------
Constant
2002 2001 Change Currency
--------- --------- ------ --------
Vascular $189,200 $185,700 2% 1%
Urology 312,400 291,300 7% 7%
Oncology 221,900 204,000 9% 9%
Surgery 169,100 151,900 11% 11%
Other 49,500 45,600 9% 7%
--------- ---------
Total net sales $942,100 $878,500 7% 7%
========= =========
C. R. Bard, Inc.
Impact of 2002 Non-Recurring Items and
2001 Goodwill Amortization on Financial Results
(dollars in millions except per share amounts, unaudited)
For the quarter ended
September 30,
-------------------------------
Pretax Net Diluted
2002 Income Taxes Income EPS
---------------------------------- -------------------------------
As reported $36.7 $6.9 $29.8 $0.57
Impact of non-recurring items 24.6 9.8 14.8 0.28
------- ------ ------- --------
Adjusted $61.3 $16.7 $44.6 $0.85
======= ====== ======= ========
2001
----------------------------------
As reported $51.2 $15.5 $35.7 $0.68
Impact of goodwill amortization 3.3 0.2 3.1 0.06
------- ------ ------- --------
Adjusted $54.5 $15.7 $38.8 $0.74
======= ====== ======= ========
Percentage growth 12% 6% 15% 15%
For the nine months ended
September 30,
-------------------------------
Pretax Net Diluted
2002 Income Taxes Income EPS
-------------------------------------- -------------------------------
As reported $146.5 $38.1 $108.4 $2.05
Impact of non-recurring items 34.9 13.2 21.7 0.41
------- ------ ------- --------
Adjusted $181.4 $51.3 $130.1 $2.46
======= ====== ======= ========
2001
--------------------------------------
As reported $148.6 $44.7 $103.9 $2.01
Impact of goodwill amortization 9.9 0.6 9.3 0.18
------- ------ ------- --------
Adjusted $158.5 $45.3 $113.2 $2.19
======= ====== ======= ========
Percentage growth 14% 13% 15% 12%
Contact:
C. R. Bard, Inc.
Todd C. Schermerhorn, 908/277-8139
Holly Glass, 703/754-2848
