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Bard Reports Third Quarter Results; Net Sales up 17 Percent, 15 Percent on Constant Currency Basis

MURRAY HILL, N.J.--(BUSINESS WIRE)--Oct. 19, 2004--C. R. Bard, Inc. (NYSE-BCR) today reported net sales of $421.9 million for the quarter ended September 30, 2004, up 17 percent over the prior year's net sales of $361.8 million. On a constant currency basis, third quarter 2004 net sales increased 15 percent. Net sales in the U.S. were $298.6 million, up 15 percent over the prior-year period, and net sales outside the U.S. were $123.3 million, up 20 percent over the prior-year period. On a constant currency basis, net sales outside the U.S. increased by 13 percent over the prior-year period.

For the third quarter of 2004, net income was $102.4 million and diluted earnings per share were 95 cents, up 99 percent and 94 percent, respectively, over the same period in the prior year. Included in the third quarter 2004 results were certain items that increased net income by $33.8 million, or 31 cents per diluted share, thereby affecting comparability with the prior-year quarter. This includes a gain of $30.8 million (after tax) related to the previously announced sale of certain assets of the company's Endoscopic Technologies division. For the third quarter of 2003, Bard reported net income of $51.5 million and diluted earnings per share of 49 cents. Excluding the items comprising the $33.8 million, net income and diluted earnings per share increased 33 percent and 31 percent, respectively, in the third quarter of 2004 as compared to the same period in the prior year. The earnings per share figures reported in this press release reflect the company's two-for-one common stock split that became effective on May 28, 2004.

Timothy M. Ring, chairman and chief executive officer, commented, "We are pleased with the results for the quarter. The combination of an expanded sales organization and innovative new products continues to drive healthy levels of revenue growth. Our gross margin exceeded sixty percent for the first time in our history as a public company. The quarter's R&D investment is nearly twice the level of just two years ago, supporting our objective to achieve sustainable, double digit revenue growth. Overall, our organization continues to execute very well and we remain committed to enhancing long-term shareholder value."

C. R. Bard, Inc. (www.crbard.com), headquartered in Murray Hill, N.J., is a leading multinational developer, manufacturer and marketer of innovative, life-enhancing medical technologies in the fields of vascular, urology, oncology and surgical specialty products.

This press release may contain forward-looking statements, the accuracy of which is necessarily subject to risks and uncertainties. Please refer to our June 30, 2004 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. Net sales on a constant currency basis and net income and diluted earnings per share excluding certain items are non-GAAP financial measures and should not be considered a replacement for GAAP results. Please refer to the company's web site for management's statement regarding the use of non-GAAP measures.


                           C. R. Bard, Inc.
                   Consolidated Statements of Income
          (in thousands except per share amounts, unaudited)

                              Quarter Ended       Nine Months Ended
                              September 30,         September 30,
                           ------------------- -----------------------
                             2004      2003       2004         2003
                           --------- --------- ----------- -----------

Net sales                  $421,900  $361,800  $1,232,000  $1,051,900

Costs and expenses:
 Cost of goods sold         168,100   154,700     498,700     453,500
 Marketing, selling &
  administrative
  expense                   130,800   112,300     382,000     326,300
 Research & development
  expense (1)                28,600    21,600      83,400      62,900
 Interest expense             3,400     3,200       9,800       9,500
 Other (income) expense,
  net                       (50,700)   (1,100)    (61,000)     (4,300)
                           --------  --------   ---------   ---------
Total costs and expenses    280,200   290,700     912,900     847,900
                           --------  --------   ---------   ---------

Income before tax provision 141,700    71,100     319,100     204,000
 Income tax provision        39,300    19,600      86,100      56,100
                           --------  --------   ---------   ---------

Net income (2)             $102,400   $51,500    $233,000    $147,900
                           ========  ========   =========   =========

Basic earnings per share      $0.98     $0.50       $2.23       $1.43
                           ========  ========   =========   =========

Diluted earnings per share    $0.95     $0.49       $2.17       $1.41
                           ========  ========   =========   =========

Wt. avg. common shares
 outstanding - basic        104,600   103,600     104,400     103,400

Wt. avg. common shares
 outstanding - diluted      107,400   105,200     107,200     105,200




(dollars in thousands, unaudited)


                  Product Group Summary of Net Sales

                                      Quarter Ended September 30,
                                  -----------------------------------
                                                             Constant
                                    2004       2003   Change Currency
                                  --------- --------- ------ --------
Vascular                           $99,400   $77,400    28%      25%
Urology                            124,700   113,300    10%       8%
Oncology                           101,800    86,300    18%      16%
Surgery                             78,100    68,500    14%      13%
Other                               17,900    16,300    10%       8%
                                 --------- ---------
Reported                          $421,900  $361,800    17%
                                 --------- ---------
FX Impact                                      6,100
                                 --------- ---------
Con. Currency                     $421,900  $367,900             15%
                                 ========= =========


                                    Nine Months Ended September 30,
                                -------------------------------------
                                                             Constant
                                  2004         2003   Change Currency
                                ---------   --------- ------ --------
Vascular                         $291,600    $220,800    32%     26%
Urology                           362,700     337,100     8%      5%
Oncology                          296,300     244,000    21%     19%
Surgery                           230,200     200,300    15%     14%
Other                              51,200      49,700     3       1%
                              ----------- -----------
Reported                       $1,232,000  $1,051,900    17%
                              ----------- -----------
FX Impact                                      25,400
                              ----------- -----------
Con. Currency                  $1,232,000  $1,077,300            14%
                              =========== ===========

Notes

(1) Included in research and development expense is approximately $6.7
    million and $1.0 million in acquired in-process research and
    development for the quarters ended June 30, 2004 and 2003,
    respectively.

(2) For the first quarter of 2004, in addition to interest income and
    exchange gains and losses, other (income) expense, net included
    the adjustment of a 2003 reserve recorded in connection with the
    legal action entitled Nelson N. Stone, M.D., et al. v. C. R. Bard,
    Inc., et. al. This adjustment resulted in additional pretax income
    of $16.0 million ($9.8 million after-tax; $0.09 diluted earnings
    per share), partially offset by a charge for an unrelated legal
    settlement of $3.9 million pretax ($2.3 million after-tax; $0.02
    diluted earnings per share). In addition the company recorded a
    $1.1 million tax credit in income tax provision related to the
    retroactive effective date of its Malaysian high-technology
    pioneer grant ($0.01 diluted earnings per share).

For the second quarter of 2004, in addition to interest income and
exchange gains and losses, other (income) expense, net included a
charge for a legal settlement partially offset by an investment gain,
which resulted in a net pretax charge of $4.3 million ($2.6 million
after-tax; $0.02 diluted earnings per share).

For the third quarter of 2004, in addition to interest income and
exchange gains and losses, other (income) expense, net included a gain
from the sale of certain assets of the company's Endoscopic
Technologies division of $44.9 million pretax ($30.8 million
after-tax; $0.29 diluted earnings per share). In addition, the company
recorded miscellaneous gains related to the sale of a facility and the
conclusion of an intellectual property matter of $3.5 million pretax
($3.0 million after-tax). In total these items resulted in a gain of
$0.31 diluted earnings per share.

    CONTACT: C. R. Bard, Inc.
             Investor Relations:
             Eric J. Shick, 908-277-8413
                 or
             Media Relations:
             Holly P. Glass, 703-754-2848

    SOURCE: C. R. Bard, Inc.

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