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Bard Announces First Quarter Results; Revenue up 9 Percent as Reported, 11 Percent in Constant Currency

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.


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