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Bard Announces Third Quarter Results

MURRAY HILL, N.J.--(BUSINESS WIRE)--Oct. 18, 2005--C. R. Bard, Inc. (NYSE-BCR) today reported 2005 third quarter financial results. Third quarter 2005 net sales were $443.3 million, an increase of 5 percent over the prior-year period. Excluding the impact of a 2004 divestiture and foreign exchange, third quarter 2005 ongoing net sales increased 9 percent over the prior-year period.

For the third quarter 2005, net sales in the U.S. were $311.0 million and net sales outside the U.S. were $132.3 million, up 4 percent and 7 percent, respectively, over the prior-year period. Excluding the impact of a 2004 divestiture and foreign exchange, third quarter 2005 ongoing net sales in the U.S. and outside the U.S. increased 8 percent and 10 percent, respectively, over the prior-year period.

For the third quarter 2005, net income was $90.4 million and diluted earnings per share were 83 cents, a decrease of 12 percent and 13 percent, respectively, over the prior-year period. The 2005 third quarter results included certain items that increased net income by $6.8 million (after-tax), or 6 cents per diluted share. Excluding certain items, third quarter 2005 net income was $83.6 million and diluted earnings per share were 77 cents. For comparison, the 2004 third quarter results included certain items that increased net income by $33.8 million (after-tax), or 31 cents per diluted share. Excluding certain items in both periods, net income and diluted earnings per share increased 22 percent and 20 percent, respectively, as compared to the prior-year period.

"We are pleased with our strong earnings performance this quarter. Driven by healthy gross margin and operating leverage, we again delivered results above our 2005 goal of 14 percent growth. As we continue to increase our R&D investment and expand our field sales coverage, we are confident that our robust new product pipeline will provide us with greater opportunities in our markets," commented Timothy M. Ring, chairman and chief executive officer. "We remain focused on our long-term strategy to achieve annual top line growth in double digits."

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, income tax matters, 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 June 30, 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".

Net sales, excluding foreign exchange, ongoing net sales and net income and diluted earnings per share (EPS) 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        Nine Months Ended
                           September 30,         September 30,
                       --------------------------------------------
                         2005        2004       2005        2004
                      ---------- ----------  ----------  ----------

Net sales             $  443,300 $  421,900  $1,319,300  $1,232,000

Costs and expenses:
  Cost of goods sold     166,400    168,100     504,800     498,700
  Marketing, selling &
   administrative
   expense               132,700    130,800     397,300     382,000
  Research &
   development expense    29,200     28,600      85,400      83,400
  Interest expense         3,100      3,400       9,300       9,800
  Other (income)
   expense, net            2,900    (50,700)    (15,000)    (61,000)
                      ---------- ----------  ----------  ----------
Total costs and
 expenses                334,300    280,200     981,800     912,900
                      ---------- ----------  ----------  ----------
Income before tax
 provision               109,000    141,700     337,500     319,100
  Income tax provision    18,600     39,300      80,500      86,100
                      ---------- ----------  ----------  ----------
Net income            $   90,400 $  102,400  $  257,000  $  233,000
                      ========== ==========  ==========  ==========
Basic earnings per
 share                $     0.86 $     0.98  $     2.45  $     2.23
                      ========== ==========  ==========  ==========
Diluted earnings per
 share                $     0.83 $     0.95  $     2.37  $     2.17
                      ========== ==========  ==========  ==========
Wt. avg. common shares
 outstanding - basic     105,000    104,600     105,000     104,400
Wt. avg. common shares
 outstanding - diluted   108,300    107,400     108,300     107,200


                  Product Group Summary of Net Sales
                   (dollars in thousands, unaudited)

                   Quarter Ended September 30,
                 --------------------------------------
                                               Constant
                   2005      2004     Change   Currency
                 --------- --------- --------  --------
Vascular         $ 108,800 $  99,400       9%        9%
Urology            130,700   124,700       5%        5%
Oncology           102,900    86,800      19%       18%
Surgery             80,900    78,100       4%        3%
Other               20,000    17,900      12%       11%
                 --------- ---------
Ongoing Sales      443,300   406,900       9%
                                     ========
FX Impact              ---       900
                 --------- ---------
Con. Currency    $ 443,300 $ 407,800                 9%
                 ========= =========           ========
Ongoing Sales    $ 443,300 $ 406,900       9%
                                     ========
Divested Sales         ---    15,000
                 --------- ---------
Reported Sales   $ 443,300 $ 421,900       5%
                 ========= ========= ========


                 Nine Months Ended September 30,
               ----------------------------------------
                                               Constant
                  2005       2004     Change   Currency
               ---------- ---------- --------  --------
Vascular       $  321,900 $  291,600      10%        9%
Urology           390,000    362,700       8%        7%
Oncology          298,100    250,100      19%       18%
Surgery           252,000    230,200       9%        9%
Other              57,300     51,200      12%       11%
               ---------- ----------
Ongoing Sales   1,319,300  1,185,800      11%
                                     ========
FX Impact             ---     11,800
               ---------- ----------
Con. Currency  $1,319,300 $1,197,600                10%
               ========== ==========           ========

Ongoing Sales  $1,319,300 $1,185,800      11%
                                     ========
Divested Sales        ---     46,200
               ---------- ----------
Reported Sales $1,319,300 $1,232,000       7%
               ========== ========== ========



    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 third quarter ended September 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 $1.9 million pretax ($1.2
        million after-tax) and an asset impairment charge of
        approximately $8.9 million pretax ($8.0 million after-tax).
        Certain items also included a reduction in the income tax
        provision of approximately $45.6 million predominantly related
        to the favorable completion of the Internal Revenue Service
        audit for the tax years 1996-1999, as well as the resolution
        of certain other tax positions. Additionally, the company
        recorded an income tax provision of approximately $32.0
        million related to the company's planned repatriation of
        $600.0 million of undistributed foreign earnings under the
        American Jobs Creation Act. In total, these certain items
        resulted in a net gain of $6.8 million after-tax, or $0.06
        diluted earnings per share.

    --  For the nine months ended September 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 $13.4 million pretax ($8.3 million
        after-tax), offset by a charge for an asset impairment of
        approximately $8.9 million pretax ($8.0 million after-tax).
        Certain items also included a reduction in the income tax
        provision of approximately $45.6 million predominantly related
        to the favorable completion of the Internal Revenue Service
        audit for the tax years 1996-1999, as well as the resolution
        of certain other tax positions. Additionally, the company
        recorded an income tax provision of approximately $32.0
        million related to the company's planned repatriation of
        $600.0 million of undistributed foreign earnings under the
        American Jobs Creation Act. In total, these certain items
        resulted in a net gain of $13.9 million after-tax, or $0.13
        diluted earnings per share.

    --  For the third quarter ended September 30, 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). 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 certain items resulted in a gain of $33.8 million
        after-tax, or $0.31 diluted earnings per share.

    --  For the nine months ended September 30, 2004, in addition to
        interest income and exchange gains and losses, other (income)
        expense, net included the following certain items: 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), the adjustment of a 2003 reserve recorded in
        conjunction with a legal verdict, offset by unrelated legal
        settlements and investment gains for a net adjustment of
        approximately $7.8 million pretax ($4.9 million after-tax).
        The company also 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 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.
        In total, these certain items resulted in a net gain of $39.8
        million, or $0.37 diluted earnings per share.


                      Reconciliation of Earnings
           (in millions except per share amounts, unaudited)

                                 Quarter Ended September 30,
                           ----------------------------------------
                                  2005                 2004
                           ------------------   -------------------
                             Net     Diluted      Net      Diluted
                            Income     EPS       Income      EPS
                           --------  --------   --------  ---------
GAAP Basis                 $   90.4  $   0.83   $  102.4  $    0.95
Certain Items                  (6.8)    (0.06)     (33.8)     (0.31)
                           --------  --------   --------  ---------

Adjusted Basis             $   83.6  $   0.77   $   68.6  $    0.64
                           ========  ========   ========  =========


                      Reconciliation of Earnings
           (in millions except per share amounts, unaudited)

                              Nine Months Ended September 30,
                           ----------------------------------------
                                  2005                 2004
                           ------------------   -------------------
                             Net      Diluted      Net     Diluted
                            Income      EPS      Income      EPS
                           --------  --------   --------  ---------
GAAP Basis                 $  257.0  $   2.37   $  233.0  $    2.17
Certain Items                 (13.9)    (0.13)     (39.8)     (0.37)
                           --------  --------   --------  ---------
Adjusted Basis             $  243.1  $   2.24   $  193.2  $    1.80
                           ========  ========   ========  =========

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.


bard-pubs

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