MURRAY HILL, N.J.--(BUSINESS WIRE)--Jan. 26, 2005--C. R. Bard,
Inc. (NYSE:BCR) today reported 2004 fourth quarter and full year
financial results. Fourth quarter 2004 net sales were $424.1 million,
an increase of 11 percent over the prior-year period. The company sold
certain assets of its Endoscopic Technologies division on September
30, 2004. Net sales excluding sales of the divested Endoscopic
Technologies products are referred to below as ongoing net sales. On a
constant currency basis, fourth quarter 2004 ongoing net sales
increased 13 percent over the prior-year period.
In the fourth quarter of 2004, net sales in the U.S. were $291.2
million and net sales outside the U.S. were $132.9 million, up 8
percent and 18 percent, respectively, over the prior-year period. On a
constant currency basis, fourth quarter 2004 ongoing net sales in the
U.S. and outside the U.S. both increased 13 percent over the
prior-year period.
Net sales for the full year 2004 were $1,656.1 million, an
increase of 16 percent over the prior year. On a constant currency
basis, full year 2004 ongoing net sales increased 14 percent over the
prior year.
For the full year 2004, net sales in the U.S. were $1,156.2
million and net sales outside the U.S. were $499.9 million, up 13
percent and 21 percent, respectively, over the prior year. On a
constant currency basis, full year 2004 ongoing net sales in the U.S.
increased 15 percent and full year 2004 ongoing net sales outside the
U.S. increased 12 percent over the prior year.
For the fourth quarter 2004, net income was $69.8 million and
diluted earnings per share were 65 cents, an increase of 239 and 242
percent over fourth quarter 2003 net income and diluted earnings per
share of $20.6 million and 19 cents, respectively. As further
described in the attached consolidated statements of income, included
in the 2003 fourth quarter results were certain items that reduced net
income by $35.2 million (after-tax), or 33 cents per diluted share,
thereby affecting comparability with the current-year quarter.
Excluding these items, fourth quarter 2004 net income and diluted
earnings per share both increased by 25 percent over 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.
For the full year 2004, net income was $302.8 million and diluted
earnings per share were $2.82. As further described in the attached
consolidated statements of income, included in these full year 2004
results were certain items that increased net income by $40.1 million,
or 37 cents per diluted share, thereby affecting comparability between
years. Excluding these items, net income for the full year 2004 was
$262.7 million and diluted earnings per share were $2.45.
For the full year 2003, Bard reported net income of $168.5 million
and diluted earnings per share of $1.60. Excluding the items
identified above for both the fourth quarter 2003 and the full year
2004, net income and diluted earnings per share in 2004 grew 29
percent and 27 percent, respectively, as compared to the prior year.
"Our results for both the quarter and the year reflect solid
revenue growth across our major product lines and geographies. We
continue to see the benefits of investing in a broad portfolio of
markets and products. Our success in improving our gross margin has
enabled us to increase our investment in product technology,
strengthen our sales organization and enhance our long-term revenue
growth profile," commented Timothy M. Ring, chairman and chief
executive officer. "We continue to be pleased with the progress of our
growth strategy and the execution of the fundamentals of our business.
I am thankful to Bard employees around the world for their meaningful
contributions to a successful 2004."
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 within
the meaning of the Private Securities Litigation Reform Act of 1995,
which are based on management's current expectations, the accuracy of
which is necessarily subject to risks and uncertainties. These
statements are not historical in nature and use words such as
"anticipate", "estimate", "expect", "project", "intend", "plan",
"believe", and other words of similar meaning in connection with any
discussion of future operating or financial performance. Many factors
may cause actual results to differ materially from anticipated results
including product developments, sales efforts, expenses, the outcomes
of contingencies such as legal proceedings, and other economic,
business, competitive and regulatory factors. The company undertakes
no obligation to update its forward-looking statements. Please refer
to our September 30, 2004 10-Q for more detailed information about
these and other factors that may cause actual results to differ
materially from those expressed or implied.
"Net sales on a constant currency basis", "ongoing net sales" and
"net income and diluted earnings per share excluding certain items"
are non-GAAP financial measures. For a reconciliation of these
non-GAAP measures to GAAP, please see the attached tables. The company
analyzes net sales on a constant currency and ongoing basis to better
measure the comparability of results between periods. Because changes
in foreign currency exchange rates have a non-operating impact on net
sales, the company believes that evaluating growth in net sales on a
constant currency basis provides an additional and meaningful
assessment of net sales. The company believes that comparing ongoing
net sales between periods provides an additional and meaningful
analysis of comparable operations. Net income and EPS excluding
certain items are used by the company to measure the comparability of
results between periods. Because certain items such as divestiture
activity and litigation outcomes may not reflect underlying operating
results, the company believes the exclusion of these and similar items
provides an additional and meaningful assessment of net income and
EPS. The limitation of these non-GAAP measures is that they may
exclude items that impact actual GAAP results. All non-GAAP financial
measures are intended to supplement the applicable GAAP disclosures
and should not be viewed as a replacement for GAAP results.
C. R. Bard, Inc.
Consolidated Statements of Income
(in thousands except per share amounts, unaudited)
Quarter Ended Twelve Months Ended
December 31, December 31,
------------------- -----------------------
2004 2003 2004 2003
--------- --------- ----------- -----------
Net sales $424,100 $381,200 $1,656,100 $1,433,100
Costs and expenses:
Cost of goods sold 161,600 155,900 660,300 609,400
Marketing, selling &
administrative expense 139,000 121,800 521,000 448,100
Research & development
expense (1) 28,200 24,500 111,600 87,400
Interest expense 2,900 3,000 12,700 12,500
Other (income) expense,
net (2,700) 56,800 (63,700) 52,500
--------- --------- ----------- -----------
Total costs and expenses 329,000 362,000 1,241,900 1,209,900
--------- --------- ----------- -----------
Income before tax provision 95,100 19,200 414,200 223,200
Income tax provision 25,300 (1,400) 111,400 54,700
--------- --------- ----------- -----------
Net income (2) $69,800 $20,600 $302,800 $168,500
========= ========= =========== ===========
Basic earnings per share $0.67 $0.20 $2.90 $1.63
========= ========= =========== ===========
Diluted earnings per share $0.65 $0.19 $2.82 $1.60
========= ========= =========== ===========
Wt. avg. common shares
outstanding - basic 104,600 103,600 104,400 103,400
Wt. avg. common shares
outstanding - diluted 107,500 105,600 107,200 105,200
Product Group Summary of Net Sales
(dollars in thousands, unaudited)
Quarter Ended December 31,
-----------------------------------
Constant
2004 2003 Change Currency
--------- --------- ------ --------
Vascular $101,400 $86,500 17% 13%
Urology 130,400 114,400 14% 12%
Oncology 92,600 77,800 19% 17%
Surgery 83,100 72,000 15% 14%
Other 16,600 16,000 4% 3%
--------- ---------
Ongoing Sales $424,100 $366,700 16%
FX Impact --- 7,200
--------- ---------
Con. Currency $424,100 $373,900 13%
========= =========
Ongoing Sales $424,100 $366,700 16%
Divested Sales (3) --- 14,500
--------- ---------
Reported Sales $424,100 $381,200 11%
========= =========
Twelve Months Ended December 31,
---------------------------------------
Constant
2004 2003 Change Currency
----------- ----------- ------ --------
Vascular $393,000 $307,300 28% 23%
Urology 493,100 451,500 9% 7%
Oncology 342,800 282,700 21% 19%
Surgery 313,300 272,300 15% 14%
Other 67,800 65,700 3% 2%
----------- -----------
Ongoing Sales $1,610,000 $1,379,500 17%
FX Impact --- 32,200
----------- -----------
Con. Currency $1,610,000 $1,411,700 14%
=========== ===========
Ongoing Sales $1,610,000 $1,379,500 17%
Divested Sales (3) 46,100 53,600
----------- -----------
Reported Sales $1,656,100 $1,433,100 16%
=========== ===========
C. R. BARD, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)
December 31,
-----------------------
ASSETS 2004 2003
----------------------------------------------------------------------
Cash and short-term
investments $545,400 $422,000
Accounts receivable, net 290,100 224,100
Inventories 156,700 156,500
Other current assets 61,800 72,500
-----------------------
Total current assets 1,054,000 875,100
-----------------------
Property, plant and
equipment, net 260,800 222,700
Intangible assets 234,500 137,800
Goodwill 365,700 354,000
Other assets 94,100 102,400
-----------------------
TOTAL ASSETS $2,009,100 $1,692,000
=======================
December 31,
-----------------------
LIABILITIES AND SHAREHOLDERS' INVESTMENT 2004 2003
----------------------------------------------------------------------
Short-term debt $100 $16,600
Accounts payable 52,200 56,100
Accrued liabilities 338,000 349,200
-----------------------
Total current liabilities 390,300 421,900
-----------------------
Long-term debt 151,400 151,500
Long-term liabilities 91,600 72,900
-----------------------
Noncontrolling interest 15,700 - - -
Total shareholders' investment 1,360,100 1,045,700
-----------------------
TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT $2,009,100 $1,692,000
=========== ===========
Notes to Consolidated Statements of Income
(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 years ended December 31, 2004 and 2003,
respectively.
(2) For the fourth quarter and twelve months ended December 31,
2003, in addition to interest income and foreign exchange gains and
losses, other (income) expense, net included the following items: a
charge for a legal verdict in the amount of $58.0 million before tax
($35.5 million after-tax; $0.34 diluted earnings per share), a gain
from a legal settlement of $3.5 million before tax ($2.1 million
after-tax; $0.02 diluted earnings per share) and the final adjustment
of 2002 restructuring charges and reserves for certain items of $2.9
million before tax ($1.8 million after-tax; $0.02 diluted earnings per
share) offset by a charge for product line asset write-downs of $6.1
million before tax ($3.6 million after-tax; $0.03 diluted earnings per
share).
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 fourth quarter 2003 reserve recorded in connection
with a legal verdict. 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.
For the fourth quarter of 2004, in addition to interest income and
exchange gains and losses, other (income) expense, net includes an
adjustment to the gain from the sale of certain assets of the
company's Endoscopic Technologies division of $0.6 million pretax
($0.3 million after-tax).
The aggregate impact of these items on net income and diluted
earnings per share is reflected in the following table:
Reconciliation of Earnings
(in millions, except per share)
---------------------------------
Quarter Ended December 31
---------------------------------
2004 2003
---------------- ---------------
Net Diluted Net Diluted
Income EPS Income EPS
------- ------- ------ -------
GAAP Basis $69.8 $0.65 $20.6 $0.19
Adjustment (0.3) --- 35.2 0.33
------- ------- ------ -------
Adjusted Basis $69.5 $0.65 $55.8 $0.52
======= ======= ====== =======
----------------------------------
Twelve Months Ended December 31
----------------------------------
2004 2003
---------------- ----------------
Net Diluted Net Diluted
Income EPS Income EPS
------- ------- ------- -------
GAAP Basis $302.8 $2.82 $168.5 $1.60
Adjustment (40.1) (0.37) 35.2 .33
------- ------- ------- -------
Adjusted Basis $262.7 $2.45 $203.7 $1.93
======= ======= ======= =======
(3) All divested sales are from the oncology product group.
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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