MURRAY HILL, N.J.--(BUSINESS WIRE)--July 19, 2005--C. R. Bard,
Inc. (NYSE-BCR) today reported 2005 second quarter financial results.
Second quarter 2005 net sales were $447.4 million, an increase of 7
percent over the prior-year period. Excluding the impact of a 2004
divestiture and foreign exchange, second quarter 2005 ongoing net
sales increased 10 percent over the prior-year period.
For the second quarter 2005, net sales in the U.S. were $304.1
million and net sales outside the U.S. were $143.3 million, up 5
percent and 14 percent, respectively, over the prior-year period.
Excluding the impact of a 2004 divestiture and foreign exchange,
second quarter 2005 ongoing net sales in the U.S. and outside the U.S.
increased 9 percent and 12 percent, respectively, over the prior-year
period.
For the second quarter 2005, net income was $85.3 million and
diluted earnings per share were 79 cents, an increase of 45 percent
and 44 percent, respectively, over the prior-year period.
The 2005 second quarter results included certain items that
increased net income by $5.1 million (after-tax), or 5 cents per
diluted share. Excluding certain items, second quarter 2005 net income
was $80.2 million and diluted earnings per share were 74 cents. Net
income and diluted earnings per share, excluding certain items,
increased 31 percent and 30 percent, respectively, as compared to the
prior-year period.
"We are pleased to report solid revenue and earnings results for
the quarter. Our diversified product portfolio helped drive top line
growth and we benefited specifically from strong sales in our Oncology
business," commented Timothy M. Ring, chairman and chief executive
officer. "Healthy margins and controlled spending have again
positively impacted earnings this quarter. We continue to prudently
invest operational savings into the business with a goal to enhance
growth and increase 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 March 31, 2005 10-Q 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. For a reconciliation of these non-GAAP measures to the most
comparable GAAP measures, please see the attached tables.
C. R. Bard, Inc.
Consolidated Statements of Income
(dollars in thousands except per share amounts, unaudited)
Quarter Ended
June 30,
-------------------
2005 2004
--------- ---------
Net sales $447,400 $416,300
Costs and expenses:
Cost of goods sold 173,500 169,000
Marketing, selling & administrative expense 136,000 130,500
Research & development expense 29,000 31,600
Interest expense 3,100 3,000
Other (income) expense, net (11,500) 3,100
--------- ---------
Total costs and expenses 330,100 337,200
--------- ---------
Income before tax provision 117,300 79,100
Income tax provision 32,000 20,400
--------- ---------
Net income $85,300 $58,700
========= =========
Basic earnings per share $0.81 $0.56
========= =========
Diluted earnings per share $0.79 $0.55
========= =========
Wt. avg. common shares outstanding - basic 105,200 104,500
Wt. avg. common shares outstanding - diluted 108,500 107,500
Six Months Ended
June 30,
-------------------
2005 2004
--------- ---------
Net sales $876,000 $810,100
Costs and expenses:
Cost of goods sold 338,400 330,600
Marketing, selling & administrative
expense 264,600 251,200
Research & development expense 56,200 54,800
Interest expense 6,200 6,400
Other (income) expense, net (17,900) (10,300)
--------- ---------
Total costs and expenses 647,500 632,700
--------- ---------
Income before tax provision 228,500 177,400
Income tax provision 61,900 46,800
--------- ---------
Net income $166,600 $130,600
========= =========
Basic earnings per share $1.59 $1.25
========= =========
Diluted earnings per share $1.54 $1.22
========= =========
Wt. avg. common shares outstanding - basic 105,000 104,300
Wt. avg. common shares outstanding - diluted 108,300 107,100
Product Group Summary of Net Sales
(dollars in thousands, unaudited)
Quarter Ended June 30,
-----------------------------------
Constant
2005 2004 Change Currency
--------- --------- ------ --------
Vascular $108,800 $100,100 9% 6%
Urology 131,900 121,500 9% 7%
Oncology 102,000 84,200 21% 19%
Surgery 85,600 76,900 11% 10%
Other 19,100 17,500 9% 8%
--------- ---------
Ongoing Sales $447,400 $400,200 12%
======
FX Impact --- 6,400
--------- ---------
Con. Currency $447,400 $406,600 10%
========= ========= ========
Ongoing Sales $447,400 $400,200 12%
======
Divested Sales --- 16,100
--------- ---------
Reported Sales $447,400 $416,300 7%
========= ========= ======
Six Months Ended June 30,
-----------------------------------
Constant
2005 2004 Change Currency
--------- --------- ------ --------
Vascular $213,100 $192,200 11% 8%
Urology 259,300 238,000 9% 8%
Oncology 195,200 163,300 20% 18%
Surgery 171,100 152,100 12% 12%
Other 37,300 33,300 12% 11%
--------- ---------
Ongoing Sales $876,000 $778,900 12%
======
FX Impact --- 10,900
--------- ---------
Con. Currency $876,000 $789,800 11%
========= ========= ========
Ongoing Sales $876,000 $778,900 12%
======
Divested Sales --- 31,200
--------- ---------
Reported Sales $876,000 $810,100 8%
========= ========= ======
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 second quarter ended June 30, 2005, in addition to
interest income and exchange gains and losses, other (income)
expense, net included the following certain items: an
investment gain of approximately $1.2 million pretax ($0.7
million after-tax; $0.01 diluted earnings per share) and the
resolution of a royalty matter of approximately $7.1 million
pretax ($4.4 million after-tax; $0.04 diluted earnings per
share). For the six months ended June 30, 2005, in addition to
interest income and exchange gains and losses, other (income)
expense, net included the following certain items: investment
gains and the resolution of a royalty matter for a net
adjustment of approximately $11.5 million pretax ($7.1 million
after-tax; $0.07 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 the following certain items: 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 six
months ended June 30, 2004, in addition to interest income and
exchange gains and losses, other (income) expense, net
included the following certain items: the adjustment of a
fourth quarter 2003 reserve recorded in connection with a
legal verdict, offset by unrelated legal settlements and
investment gains for a net adjustment of $7.8 million pretax
($4.9 million after tax; $.05 diluted earnings per share).
Additionally in the first quarter of 2004, 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 June 30,
--------------------------------------
2005 2004
------------------ ------------------
Net Diluted Net Diluted
Income EPS Income EPS
-------- -------- -------- --------
GAAP Basis $85.3 $0.79 $58.7 $0.55
Certain Items (5.1) (0.05) 2.6 0.02
-------- -------- -------- --------
Adjusted Basis $80.2 $0.74 $61.3 $0.57
======== ======== ======== ========
Reconciliation of Earnings
(in millions, except per share)
Six Months Ended June 30,
--------------------------------------
2005 2004
------------------ ------------------
Net Diluted Net Diluted
Income EPS Income EPS
-------- -------- -------- --------
GAAP Basis $166.6 $1.54 $130.6 $1.22
Certain Items (7.1) (0.07) (6.0) (0.06)
-------- -------- -------- --------
Adjusted Basis $159.5 $1.47 $124.6 $1.16
======== ======== ======== ========
CONTACT: C. R. Bard, Inc.
Investor Relations:
Eric J. Shick, 908-277-8413
Media Relations:
Holly P. Glass, 703-754-2848
SOURCE: C. R. Bard, Inc.
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