|
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 |
|
|
|
