Browse Careers
Browse Investors

Bard Exceeds Third Quarter Earnings Expectations - EPS of $0.85 Per Share Before Non-Recurring Items

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


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