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.
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