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Bard Exceeds Fourth Quarter Expectations - Earnings Per Share at $.89

MURRAY HILL, N.J.--(BUSINESS WIRE)--Jan. 28, 2003--C. R. Bard, Inc. (NYSE-BCR) today reported 2002 fourth quarter and full year financial results.

Fourth quarter 2002 net sales were $331.7 million, an increase of 10 percent over the prior- year period. Adjusting for the favorable impact of foreign exchange, fourth quarter net sales increased 8 percent. Fourth quarter 2002 net sales in the U.S. were $239.2 million, up 9 percent over the prior-year period, and net sales outside the U.S. were $92.5 million, up 12 percent over the prior-year period. Adjusting for the favorable impact of foreign exchange, net sales outside the U.S. increased by 6 percent over the prior-year quarter.

Net sales for the full year 2002 were $1,273.8 million, an increase of 8 percent on a reported basis and an increase of 7 percent on a constant currency basis over 2001 full-year results. Full year 2002 net sales in the U.S. were $928.7 million, up 8 percent over prior year, and net sales outside the U.S. were $345.1 million also up 8 percent over the prior year. Adjusting for the favorable impact of foreign exchange, net sales outside the U.S. increased by 6 percent for the year.

Reported net income for the 2002 fourth quarter was $46.6 million and diluted earnings per share were 89 cents, up 19 and 20 percent, respectively, over the same period in the prior year, with diluted earnings per share one cent ahead of Wall Street consensus estimates. In the prior-year quarter, Bard reported net income of $39.3 million and diluted earnings per share of 74 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 goodwill amortization in the fourth quarter 2001, net income and diluted earnings per share increased 10 percent and 11 percent, respectively, for the quarter.

For the full year 2002, reported net income was $155.0 million and diluted earnings per share were $2.94. Included in reported net income for the year are non-recurring items including pre-tax charges totaling $34.9 million associated with the termination of the proposed merger with Tyco International Ltd., the realignment and consolidation of certain divisional and manufacturing operations and corporate severance costs offset by the reversal of certain legal accruals, and a tax credit of $3.5 million. The net after-tax impact of these non-recurring items was $21.7 million or 41 cents per diluted share. Excluding the impact of the non-recurring items, net income for full year 2002 was $176.7 million or $3.35 per diluted share.

In the prior year, Bard reported net income of $143.2 million and diluted earnings per share of $2.75, which includes pre-tax goodwill amortization of $13.2 million (24 cents per diluted share). Excluding the impact of the 2002 non-recurring items and the impact of 2001 goodwill amortization, net income and diluted earnings per share grew 14 percent and 12 percent, respectively, for the year.

William H. Longfield, chairman and chief executive officer, commented, "Bard's record of delivering consistent, reliable growth has continued through 2002. Fourth quarter 2002 marks the 16th consecutive quarter the company has achieved sales growth between 7 and 10 percent on a constant currency basis. In addition, our realignment efforts have improved margins and are allowing us to direct more investment dollars to research and development. The fourth quarter results reflect the fundamental health of the business and provide an indicator for 2003 performance. We are very confident in the company's ability to meet its financial commitments and deliver steady and reliable returns to its shareholders."

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 full-year 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, the accuracy of which is necessarily subject to risks and uncertainties. Please refer to our September 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      Twelve Months Ended
                             December 31,          December 31,
                          ------------------- -----------------------
                             2002     2001        2002       2001
                           -------- --------   ---------   ---------

Net sales                  $331,700 $302,800  $1,273,800  $1,181,300

Costs and expenses:
     Cost of goods sold     147,000  140,300     582,700     550,500
     Marketing, selling &
      administrative (1)    100,900   91,900     377,200     364,200
     Research &
      development expense    17,600   13,100      61,700      53,400
     Interest expense         3,100    3,000      12,600      14,200
     Other (income)
      expense, net (2)       (1,400)  (1,800)     28,600      (5,900)
                           -------- --------   ---------   ---------
Total costs and expenses    267,200  246,500   1,062,800     976,400
                           -------- --------   ---------   ---------

Income before taxes          64,500   56,300     211,000     204,900
     Income tax 
      provision (3)          17,900   17,000      56,000      61,700
                           -------- --------   ---------   ---------

Net income                  $46,600  $39,300    $155,000    $143,200
                           ======== ========   =========   =========

Basic earnings per share      $0.90    $0.76       $2.98       $2.80
                           ======== ========   =========   =========

Diluted earnings per share    $0.89    $0.74       $2.94       $2.75
                           ======== ========   =========   =========

Average common shares
 outstanding - basic         51,700   52,000      52,000      51,200

Average common shares
 outstanding - diluted       52,400   52,900      52,800      52,000

(1) 2001 marketing, selling & administrative expense included $3.3
    million pretax and $13.2 million pretax of goodwill amortization
    for the fourth quarter and twelve-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 included special
    charges related to the realignment of certain divisional and
    manufacturing operations ($24.6 million pretax). In addition to
    interest income and exchange gains and losses, first quarter 2002
    other (income) expense, net included special charges related to
    the termination of the Tyco merger ($6.2 million pretax),
    divisional and manufacturing consolidation projects ($2.6 million
    pretax) and corporate severance related costs ($6.5 million
    pretax). These charges are offset with the reversal of certain
    legal accruals ($5.0 million pretax).

(3) In the third quarter of 2002, the company recorded a $3.5 million
    tax credit related to a change in a statutory tax rate.


                     Product Group Summary of Net Sales
                         Quarter Ended December 31,
                    ------------------------------------
                                                Constant
                        2002      2001  Change  Currency
                    -------- --------- ------- ---------
Vascular             $70,500   $65,200     8%       4%
Urology              107,300    98,800     9%       8%
Oncology              77,100    70,600     9%       8%
Surgery               60,400    53,300    13%      12%
Other                 16,400    14,900    10%       8%
                    -------- ---------
Total net
 sales              $331,700  $302,800    10%       8%
                    ======== =========


                    Product Group Summary of Net Sales
                      Twelve Months Ended December 31,
                 -----------------------------------------
                                                 Constant
                       2002        2001  Change  Currency
                 ---------- ----------- ------ -----------
Vascular           $259,700    $250,900     4%      2%
Urology             419,700     390,100     8%      7%
Oncology            299,000     274,600     9%      9%
Surgery             229,500     205,200    12%     11%
Other                65,900      60,500     9%      7%
                 ---------- -----------
Total net
 sales           $1,273,800  $1,181,300     8%      7%
                 ========== ===========


                           C. R. Bard, Inc.
            Impact of 2002 Nonrecurring Earnings Items and
           2001 Goodwill Amortization on Financial Results
      (dollars in millions except per share amounts, unaudited)


                                       For the Quarter Ended December
                                                     31,
                                       -------------------------------
                                       Pretax           Net    Diluted
             2002                      Income  Taxes   Income    EPS
-------------------------------------- ------- ------ ------- --------
As reported - GAAP basis                $64.5  $17.9   $46.6    $0.89
Impact of nonrecurring items              ---    ---     ---      ---
                                       ------- ------ ------- --------
Pro forma                               $64.5  $17.9   $46.6    $0.89
                                       ======= ====== ======= ========
             2001
--------------------------------------
As reported - GAAP basis                $56.3  $17.0   $39.3    $0.74
Impact of goodwill amortization           3.3    0.3     3.0      0.6
                                       ------- ------ ------- --------
Pro forma                               $59.6  $17.3   $42.3    $0.80
                                       ======= ====== ======= ========
Percentage growth                           8%     3%     10%      11%


                                         For the Twelve Months Ended
                                                 December 31,
                                        ------------------------------
                                        Pretax          Net    Diluted
             2002                       Income  Taxes  Income    EPS
--------------------------------------- ------- ------ ------- -------
As reported - GAAP basis                $211.0  $56.0  $155.0   $2.94
Impact of nonrecurring items              34.9   13.2    21.7    0.41
                                        ------- ------ ------- -------
Pro forma                               $245.9  $69.2  $176.7   $3.35
                                        ======= ====== ======= =======
             2001
---------------------------------------
As reported - GAAP basis                $204.9  $61.7  $143.2   $2.75
Impact of goodwill amortization           13.2    0.9    12.3    0.24
                                        ------- ------ ------- -------
Pro forma                               $218.1  $62.6  $155.5   $2.99
                                        ======= ====== ======= =======
Percentage growth                           13%    11%     14%     12%


                           C. R. BARD, INC.
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                        (thousands of dollars)
                              (UNAUDITED)

                                                     December 31,

ASSETS                                                2002       2001
                                                ----------------------

Cash and short-term investments                   $383,200   $271,000
Accounts receivable, net                           183,400    176,800
Inventories                                        147,100    182,000
Other current assets                                44,300     39,900
                                                ----------------------

     Total current assets                          758,000    669,700
                                                ----------------------

Property, plant and equipment, net                 168,000    157,900
Intangible assets                                  381,300    372,900
Other assets                                       109,400     79,400
                                                ----------------------

 TOTAL ASSETS                                   $1,416,700 $1,279,900
                                                ======================

LIABILITIES AND SHAREHOLDERS' INVESTMENT

Short-term debt                                       $900       $800
Accounts payable                                    46,900     43,600
Accrued liabilities                                269,100    234,300
                                                ----------------------

     Total current liabilities                     316,900    278,700
                                                ----------------------

Long-term debt                                     152,200    156,400

Other long-term liabilities                         67,200     56,100

Total shareholders' investment                     880,400    788,700
                                                ----------------------

TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT  $1,416,700 $1,279,900
                                                ======================

--30--tav/ny*

CONTACT: C. R. Bard, Inc.
Investor Relations:
Todd C. Schermerhorn, 908/277-8139
or
Media Relations:
Holly Glass, 703/754-2848





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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