MURRAY HILL, N.J.--(BUSINESS WIRE)--April 18, 2006--C. R. Bard,
Inc. (NYSE: BCR) today reported 2006 first quarter financial results.
First quarter 2006 net sales were $467.5 million, an increase of 9
percent over the prior-year period. Excluding the impact of foreign
exchange, first quarter 2006 net sales increased 11 percent over the
prior-year period.
For the first quarter 2006, net sales in the U.S. were $330.0
million and net sales outside the U.S. were $137.5 million, up 10
percent and 7 percent, respectively, over the prior-year period.
Excluding the impact of foreign exchange, first quarter 2006 net sales
outside the U.S. increased 13 percent over the prior-year period.
For the first quarter 2006, net income was $81.1 million and
diluted earnings per share were 76 cents. Net income, as reported, was
approximately equal to the prior-year period and diluted earnings per
share were up 1 percent. Adjusting for certain items that affect
comparability between periods, first quarter 2006 net income was $91.9
million and diluted earnings per share were 86 cents, up 16 percent
and 18 percent, respectively, over first quarter 2005 results on a
comparable basis. Adjustments to the first quarter 2006 results
include charges of $4.5 million (after-tax), or 4 cents per diluted
share for share-based compensation under FAS 123R (see the table
below) and $6.3 million (after-tax), or 6 cents per diluted share, for
purchased R&D. Adjustments to the first quarter 2005 results include
certain items that increased net income by $2.0 million (after-tax),
or 2 cents per diluted share.
Timothy M. Ring, chairman and chief executive officer, commented,
"Bard is off to a solid start for 2006. Our first quarter operating
results were strong and we continue to be pleased with the direction
of the company. We were especially productive in the business
development area, entering into five transactions this quarter. Our
healthy constant currency revenue growth this quarter reflects both
our broad product portfolio and our geographic diversification. We
remain focused on our long-term growth strategy to 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, 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 December 31, 2005 10-K for more
detailed information about these and other factors that may cause
actual results to differ materially from those expressed or implied.
Net sales, excluding foreign exchange, 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 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. Net income and
EPS excluding certain items are used by the company to measure the
comparability of results between periods. Certain items such as
investment gains, acquisition-related charges and litigation outcomes
may not reflect underlying operating results, and other items such as
the FAS 123R stock option expense may affect the comparability of
results between periods. As a result, 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
(in thousands except per share amounts, unaudited)
Quarter Ended
March 31,
-------------------
2006 2005
--------- ---------
Net sales $467,500 $428,600
Costs and expenses:
Cost of goods sold 179,400 164,900
Marketing, selling & administrative expense 142,600 128,600
Research & development expense 38,600 27,200
Interest expense 4,700 3,100
Other (income) expense, net (7,700) (6,400)
--------- ---------
Total costs and expenses 357,600 317,400
--------- ---------
Income before tax provision 109,900 111,200
Income tax provision 28,800 29,900
--------- ---------
Net income $81,100 $81,300
========= =========
Basic earnings per share $0.78 $0.78
========= =========
Diluted earnings per share $0.76 $0.75
========= =========
Wt. avg. common shares outstanding - basic 103,800 104,900
Wt. avg. common shares outstanding - diluted 107,000 108,200
Product Group Summary of Net Sales
(dollars in thousands, unaudited)
Quarter Ended March 31,
-----------------------------------
Constant
2006 2005 Change Currency
--------- -------- ------ --------
Vascular $113,700 $104,300 9% 12%
Urology 134,300 127,400 5% 7%
Oncology 111,000 93,200 19% 21%
Surgical Specialties 88,100 85,600 3% 4%
Other 20,400 18,100 13% 13%
--------- --------- ------ --------
Reported Sales $467,500 $428,600 9%
======
FX Impact --- (6,500)
--------- ---------
Con. Currency $467,500 $422,100 11%
========= ========= ========
Notes to Consolidated Statements of Income
-- For the first quarter of 2006, research and development
expense included payments of approximately $10.4 million
pretax ($6.3 million after-tax) for purchased research and
development. The results of the first quarter of 2006 also
include a charge of $7.0 million pretax ($4.5 million
after-tax) related to the incremental impact of the new
accounting treatment for share based payments under Statement
of Financial Accounting Standards No. 123 (revised 2004),
"Share-Based Payment" ("FAS 123R"), as detailed in the table
below. In total, these certain items decreased net income by
$10.8 million after-tax, or $0.10 diluted earnings per share.
-- 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.
Reconciliation of Earnings
(in millions, except per share)
Quarter Ended March 31,
2006 2005
------------------------------- -------------------------
FAS
GAAP 123R Other Adjusted GAAP Other Adjusted
Basis Adj. Items Basis Basis Items Basis
------- ------ ------ --------- ------- ------ --------
Cost of
goods sold $179.4 ($0.2) --- $179.2 $164.9 --- $164.9
Marketing,
selling &
admin. exp. 142.6 (6.4) --- 136.2 128.6 --- 128.6
Research &
development
exp. 38.6 (0.4) (10.4) 27.8 27.2 --- 27.2
Other (income)
expense, net (7.7) --- --- (7.7) (6.4) 3.2 (3.2)
Income tax
provision 28.8 2.5 4.1 35.4 29.9 (1.2) 28.7
Net income $81.1 $4.5 $6.3 $91.9 $81.3 ($2.0) $79.3
Diluted
earnings
per share $0.76 $0.04 $0.06 $0.86 $0.75 ($0.02) $0.73
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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