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Bard Announces First Quarter Results

MURRAY HILL, N.J., Apr 19, 2005 (BUSINESS WIRE) -- C. R. Bard, Inc. (NYSE-BCR) today reported 2005 first quarter financial results. First quarter 2005 net sales were $428.6 million, an increase of 9 percent over the prior-year period. Excluding the impact of a 2004 divestiture and foreign exchange, first quarter 2005 ongoing net sales increased 12 percent over the prior-year period.

For the first quarter 2005, net sales in the U.S. were $300.4 million and net sales outside the U.S. were $128.2 million, both up 9 percent over the prior-year period. Excluding the impact of the 2004 divestiture and foreign exchange, first quarter 2005 ongoing net sales in the U.S. and outside the U.S. increased 14 percent and 7 percent, respectively, over the prior-year period.

For the first quarter 2005, net income was $81.3 million and diluted earnings per share were 75 cents, an increase of 13 percent and 12 percent, respectively, over the prior-year period.

The 2005 first quarter results included certain items that increased net income by $2.0 million (after-tax), or 2 cents per diluted share. Excluding certain items, first quarter 2005 net income was $79.3 million and diluted earnings per share were 73 cents. Net income and diluted earnings per share, excluding certain items, increased by 25 percent and 24 percent, respectively, for the first quarter 2005, as compared to the prior-year period.

"We are pleased to start 2005 with good momentum. Revenue growth for the first quarter was strong across all of our major product groups, reflecting the power of our broad portfolio and the importance of new technology," commented Timothy M. Ring, chairman and chief executive officer. "Our earnings performance benefited from healthy gross margin expansion and lower operating spending for the quarter. Going forward, we will leverage our operating efficiencies to provide us with the means to invest in our key franchises, deliver innovative clinical solutions and enhance 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 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", "forecast", "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 December 31, 2004 10-K for more detailed information about these and other factors that may cause actual results to differ materially from those expressed or implied.

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 as "ongoing net sales". 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.

"Net sales, excluding foreign exchange", "ongoing net sales" and "net income and diluted earnings per share excluding certain items" are non-GAAP financial measures. 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 investment gains 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, by excluding certain items, they do not reflect results on a standardized reporting basis. 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
                                                        March 31,
                                                   -------------------
                                                       2005      2004
                                                   --------- ---------

Net sales                                          $428,600  $393,800

Costs and expenses:
     Cost of goods sold                             164,900   161,600
     Marketing, selling & administrative expense    128,600   120,700
     Research & development expense                  27,200    23,200
     Interest expense                                 3,100     3,400
     Other (income) expense, net                     (6,400)  (13,400)
                                                   --------- ---------
Total costs and expenses                            317,400   295,500
                                                   --------- ---------

Income before tax provision                         111,200    98,300
     Income tax provision                            29,900    26,400
                                                   --------- ---------

Net income                                          $81,300   $71,900
                                                   ========= =========

Basic earnings per share                              $0.78     $0.69
                                                   ========= =========

Diluted earnings per share                            $0.75     $0.67
                                                   ========= =========

Wt. avg. common shares outstanding - basic          104,900   104,000

Wt. avg. common shares outstanding - diluted        108,200   106,600
Product Group Summary of Net Sales
                                  (dollars in thousands, unaudited)
                                         Quarter Ended March 31,
                                   -----------------------------------
                                                              Constant
                                    2005      2004    Change  Currency
                                  --------- --------- ------  --------
Vascular                          $104,300   $92,100     13%      11%
Urology                            127,400   116,500      9%       8%
Oncology                            93,200    79,200     18%      17%
Surgery                             85,600    75,200     14%      13%
Other                               18,100    15,700     15%      15%
                                  --------- --------- ------  --------

Ongoing Sales                     $428,600  $378,700     13%
                                                      ======
FX Impact                              ---     4,500
                                  --------- ---------
Con. Currency                     $428,600  $383,200              12%
                                  ========= =========         ========

Ongoing Sales                     $428,600  $378,700     13%
                                                      ======
Divested Sales                         ---    15,100
                                  --------- ---------
Reported Sales                    $428,600  $393,800      9%
                                  ========= ========= ======

Notes to Consolidated Statements of Income

-- Net sales of divested products were previously reported in the oncology product group.

-- All earnings per share numbers reflect the company's 2 for 1 stock split that became effective May 28, 2004.

-- For the first quarter of 2005, in addition to interest income and exchange gains and losses, other (income) expense, net included income of approximately $3.2 million pretax ($2.0 million after-tax; $0.02 diluted earnings per share) resulting from a milestone payment related to the company's sale of an investment during the second quarter of 2004.

-- 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).

Reconciliation of Earnings
                          (in millions, except per share)
                              Quarter Ended March 31,
                    --------------------------------------------------
                             2005                      2004
                    -----------------------  -------------------------
                    Net Income  Diluted EPS   Net Income   Diluted EPS
                    ----------  -----------   ----------   -----------
GAAP Basis             $81.3         $0.75        $71.9         $0.67
Adjustment              (2.0)        (0.02)        (8.6)        (0.08)
                      -------       -------      -------      --------

Adjusted Basis         $79.3         $0.73        $63.3         $0.59
                      =======       =======      =======      ========

SOURCE: C. R. Bard, Inc.

C. R. Bard, Inc.
Investor Relations:
Eric J. Shick, 908-277-8413
Media Relations:
Holly P. 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