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
|
