Murray Hill, NJ -- April 16, 2002 -- C. R. Bard, Inc. (NYSE-BCR) today reported net sales of $301.9 million for the quarter ended March 31, 2002, up 6 percent over the prior year's net sales of $284.8 million. Adjusting for a 1 percent negative effect of currency translation, first quarter net sales increased 7 percent.
Bard's first quarter 2002 results include several one-time items. Excluding the impact of these items, net income for the first quarter was $41.6 million and diluted earnings per share were 78 cents, up 25 percent and 20 percent, respectively, over the same period in the prior year.
Reported net income for the first quarter was $34.7 million and diluted earnings per share were 65 cents. Included in reported net income for the quarter are one-time items totaling $10.3 million (pre-tax) or 13 cents per diluted share including costs related to the termination of the merger agreement with Tyco International Ltd., costs to realign certain divisional and manufacturing operations and corporate severance-related costs. The one-time costs are partly offset by the reversal of a legal accrual. The realignment and severance costs are expected to generate annual pre-tax savings of $7 million by the first quarter of 2003.
In the prior-year period, Bard reported net income of $33.2 million and diluted earnings per share of 65 cents, which includes pre-tax goodwill amortization of $3.3 million (6 cents per share diluted) that is not required for years subsequent to 2001. Excluding the impact of the one-time items recorded in the first quarter of 2002 and the impact of goodwill amortization on the first quarter of 2001, net income and diluted earnings per share for the quarter were up 15 percent and 10 percent, respectively, over 2001. William H. Longfield, chairman and chief executive officer, commented, "We are pleased with the overall sales and earnings results for the quarter. Our operations are on track to meet our previously released guidance for full-year sales and EPS."
For the first quarter, net sales in the U.S. were $223.3 million, up 7 percent, and net sales outside the U.S. were $78.6 million, up 4 percent from the prior-year period. Adjusting for the negative effect of currency translation, net sales outside the U.S. increased by 7 percent over the prior-year period.
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, the accuracy of which is necessarily subject to risks and uncertainties. Please refer to our December 31, 2001 Form 10-K 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)
| ||For the Three Months Ended March 31, |
| || 2002 ||2001 |
|Net sales || $ 301,900 || $ 284,800 |
| Costs and expenses: |
| Cost of goods sold ||139,500 ||132,500 |
| Marketing, selling & administrative (1) ||88,300||87,400 |
| Research & development expense ||14,300 ||13,600 |
| Interest expense ||3,200 ||4,000 |
| Other (income) expense, net (2)||8,200||(100) |
|Total costs and expenses ||253,500 ||237,400 |
|Income before taxes ||48,400 ||47,400 |
| Income tax provision ||13,700||14,200|
| Net income ||$ 34,700 ||$ 33,200 |
| Basic earnings per share ||$ 0.66||$ 0.65 |
| Diluted earnings per share ||$ 0.65 || $ 0.65 |
| Average common shares outstanding - basic ||52,500 ||50,700|
| Average common shares outstanding - diluted||53,200 ||51,300 |
(1) First quarter 2001 marketing, selling & administrative expense includes $3.3 million pretax of goodwill amortization ($0.06 diluted earnings per share). 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 realized exchange gains and losses, 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
| For the Three Months Ended March 31,|
| 2002 ||2001 ||Change ||Currency|
|Vascular|| $ 59,900 || $ 61,200 || (2)%|| (1)%|
|Urology || 99,200 || 91,900 || 8% || 9%|
| Oncology || 70,900 || 65,000 || 9% || 10%|
| Surgery || 56,000 ||51,400 || 9%|| 9%|
|Other ||15,900|| 15,300|| 4% || 3%|
| Total net sales ||$ 301,900 || $ 284,800|| 6% || 7%|