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.
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