|
Murray Hill, NJ -- July 17, 2002 -- C. R. Bard, Inc. (NYSE-BCR) today reported net sales of $317.5 million for the quarter ended June 30, 2002, up 7 percent on both a reported and constant currency basis. For the quarter ended June 30, 2001, Bard reported net sales of $295.9 million. Net income for the second quarter was $43.9 million, and diluted earnings per share was 83 cents, up 25 percent and 22 percent, respectively, over the same period in the prior year. For the quarter ended June 30, 2001, Bard reported net income of $35.0 million and diluted earnings per share of 68 cents, which included pretax goodwill amortization of $3.3 million (6 cents per share diluted) no longer required due to the company's adoption of Financial Accounting Standard 142, "Goodwill and Other Intangible Assets." Excluding the impact of goodwill amortization in the prior-year period, net income and diluted earnings per share for the quarter increased 15 percent and 12 percent, respectively, over 2001.
William H. Longfield, chairman and chief executive officer, commented, "Bard continues to generate reliable sales growth which translates into healthy earnings and a strong balance sheet. This marks the 14th consecutive quarter that the company has recorded sales growth of at least 7 percent on a constant currency basis."
Second quarter net sales in the U.S. were $231.7 million, up 8 percent, and net sales outside the U.S. were $85.8 million, up 6 percent from the prior-year period on both a reported and constant currency basis.
C. R. Bard (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, the accuracy of which is necessarily subject to risks and uncertainties. Please refer to our March 31, 2002 Form 10-Q for a statement with regard to forward-looking statements, including disclosure of the 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 June 30,
| Six Months Ended June 30,
| | | 2002
| 2001
| 2002
| 2001
| | Net sales | $317,500 | $295,900 | $619,400 | $580,700 | | Costs and expenses: | | | Cost of goods sold | 147,000 | 138,200 | 286,500 | 270,700 | | Marketing, selling & administrative (1) | 92,800 | 93,700 | 181,100 | 181,100 | | Research & development expense | 14,900 | 13,600 | 29,200 | 27,200 | | Interest expense | 3,200 | 3,700 | 6,400 | 7,700 | | Other (income) expense, net (2) | (1,800)
| (3,300)
| 6,400
| (3,400)
| | Total costs and expenses | 256,100
| 245,900
| 509,600
| 483,300
| | Income before taxes | 61,400 | 50,000 | 109,800 | 97,400 | | Income tax provision | 17,500
| 15,000
| 31,200
| 29,200
| | Net income | $43,900
| $35,000
| $78,600
| $68,200
| | Basic earnings per share | $0.84
| $0.69
| $1.50
| $1.34
| | Diluted earnings per share | $0.83
| $0.68
| $1.48
| $1.33
| | Average common shares outstanding - basic | 52,300 | 50,700 | 52,400 | 50,750 |
| Average common shares outstanding - diluted | 53,100 | 51,400 | 53,100 | 51,300 | (1) 2001 marketing, selling & administrative expense includes $3.3 million pretax ($0.06 diluted earnings per share) and $6.6 million pretax ($0.12 diluted earnings per share) of goodwill amortization for the second quarter and six 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, first quarter 2002 other (income) expense, net includes costs 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 costs 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 June 30,
| Six Months Ending June 30,
| | | | | | Constant | | | | Constant | | | 2002
| 2001
| Change
| Currency
| 2002
| 2001
| Change
| Currency
| | Vascular | $63,700 | $61,900 | 3% | 3% | $123,600 | $123,100 | - | 1% | | Urology | 106,100 | 99,400 | 7% | 7% | 205,300 | 191,300 | 7% | 8% | | Oncology | 74,900 | 68,300 | 10% | 10% | 145,800 | 133,400 | 9% | 10% | | Surgery | 56,300 | 50,800 | 11% | 10% | 112,300 | 102,200 | 10% | 10% | | Other | 16,500
| 15,500
| 6% | 6% | 32,400
| 30,700
| 6% | 5% | | Total net sales | $317,500
| $295,900
| 7% | 7% | $619,400
| $580,700
| 7% | 7% |
|
