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Bard Announces Second Quarter Results; Revenue up 11 Percent as Reported, 12 Percent Excluding Foreign Exchange

MURRAY HILL, N.J.--(BUSINESS WIRE)--July 19, 2006--C. R. Bard, Inc. (NYSE-BCR) today reported 2006 second quarter financial results. Second quarter 2006 net sales were $498.2 million, an increase of 11 percent over the prior-year period. Excluding the impact of foreign exchange, second quarter 2006 net sales increased 12 percent over the prior-year period.

For the second quarter 2006, net sales in the U.S. were $347.3 million and net sales outside the U.S. were $150.9 million, up 14 percent and 5 percent, respectively, over the prior-year period. Excluding the impact of foreign exchange, second quarter 2006 net sales outside the U.S. increased 8 percent over the prior-year period.

For the second quarter 2006, net income was $81.4 million and diluted earnings per share were 76 cents. Net income and diluted earnings per share, as reported, were down 5 percent and 4 percent, respectively, as compared to second quarter 2005 results. Adjusting for certain items that affect comparability between periods, second quarter 2006 net income was $90.8 million and diluted earnings per share were 85 cents, up 13 percent and 15 percent, respectively, as compared to second quarter 2005 results on a comparable basis. Adjustments to the second quarter 2006 results (see the table below) included charges of $4.0 million (after-tax), or 4 cents per diluted share, for share-based compensation under FAS 123R and $6.4 million (after-tax), or 6 cents per diluted share, for purchased R&D related to the acquisition of Venetec International, Inc. These charges were partially offset by investment gains of $1.0 million (after-tax), or 1 cent per diluted share. Adjustments to the second quarter 2005 results included certain items that increased net income by $5.1 million (after-tax), or 5 cents per diluted share.

Timothy M. Ring, chairman and chief executive officer, commented, "Results for the quarter were again strong. Revenue in all four of our businesses grew at or above our expectations reflecting the productivity of our new product pipeline. Our business model is allowing us to strategically reinvest in the company while still maintaining our full-year adjusted EPS growth target of a minimum of 14 percent. We continue to be pleased with the execution of our strategy, remaining focused on our goal to deliver double-digit revenue growth."

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 March 31, 2006 10-Q 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 that affect the comparability of results between periods 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     Six Months Ended
                                    June 30,            June 30,
                               ------------------- -------------------
                                   2006      2005      2006      2005
                               --------- --------- --------- ---------
Net sales                      $498,200  $447,400  $965,700  $876,000
Costs and expenses:
     Cost of goods sold         196,100   173,500   375,500   338,400
     Marketing, selling &
      administrative expense    153,500   136,000   296,100   264,600
     Research & development
      expense                    37,100    29,000    75,700    56,200
     Interest expense             4,500     3,100     9,200     6,200
     Other (income) expense,
      net                        (7,600)  (11,500)  (15,300)  (17,900)
                               --------- ---------
Total costs and expenses        383,600   330,100   741,200   647,500
                               --------- --------- --------- ---------
Income before tax provision     114,600   117,300   224,500   228,500
     Income tax provision        33,200    32,000    62,000    61,900
                               --------- --------- --------- ---------
Net income                      $81,400   $85,300  $162,500  $166,600
                               ========= ========= ========= =========
Basic earnings per share          $0.79     $0.81     $1.57     $1.59
                               ========= ========= ========= =========
Diluted earnings per share        $0.76     $0.79     $1.52     $1.54
                               ========= ========= ========= =========

Wt. avg. common shares
 outstanding - basic            103,500   105,200   103,700   105,000
Wt. avg. common shares
 outstanding - diluted          107,000   108,500   107,000   108,300


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

                                        Quarter Ended June 30,
                                  -----------------------------------
                                                             Constant
                                   2006      2005     Change Currency
                                  --------- --------- ------ --------
Vascular                          $119,700  $108,800     10%      12%
Urology                            149,200   131,900     13%      14%
Oncology                           117,000   102,000     15%      15%
Surgical Specialties                94,500    85,600     10%      11%
Other                               17,800    19,100     -7%      -6%
                                  --------- ---------

Reported Sales                    $498,200  $447,400     11%
FX Impact                              ---    (3,300)
                                  --------- ---------
Con. Currency                     $498,200  $444,100              12%
                                  ========= =========


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

                                        Six Months Ended June 30,
                                   -----------------------------------
                                                              Constant
                                    2006      2005     Change Currency
                                   --------- --------- ------ --------
Vascular                           $233,400  $213,100     10%      12%
Urology                             283,500   259,300      9%      10%
Oncology                            228,000   195,200     17%      18%
Surgical Specialties                182,600   171,100      7%       7%
Other                                38,200    37,300      2%       4%
                                   --------- ---------

Reported Sales                     $965,700  $876,000     10%
FX Impact                               ---    (9,800)
                                   --------- ---------
Con. Currency                      $965,700  $866,200              11%
                                   ========= =========


    Notes to Consolidated Statements of Income

    --  For the second quarter ended June 30, 2006, in addition to
        interest income and exchange gains and losses, other (income)
        expense, net included investment gains of approximately $1.6
        million pretax ($1.0 million after-tax). For the second
        quarter ended June 30, 2006, research and development expense
        included a payment of approximately $6.4 million pretax for
        purchased research and development ($6.4 million after-tax).
        The results of the second quarter of 2006 also include the
        incremental impact of the new accounting standard for
        share-based payments, 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 $9.4 million after-tax,
        or $0.09 diluted earnings per share.

    --  For the six months ended June 30, 2006, in addition to
        interest income and exchange gains and losses, other (income)
        expense, net included investment gains of approximately $1.6
        million pretax ($1.0 million after-tax). For the six months
        ended June 30, 2006, research and development expense included
        payments of approximately $16.8 million pretax for purchased
        research and development ($12.7 million after-tax). The
        results of the six months ended June 30, 2006 also include the
        incremental impact of the new accounting standard for
        share-based payments under FAS 123R, as detailed in the table
        below. In total, these certain items decreased net income by
        $20.2 million after-tax, or $0.19 diluted earnings per share.

    --  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) and the resolution of a royalty matter of
        approximately $7.1 million pretax ($4.4 million after-tax). In
        total, these certain items resulted in a net gain of $5.1
        million after-tax, or $0.05 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).


                      Reconciliation of Earnings
          (in millions except per share amounts, unaudited)
                              Quarter Ended June 30,
            --------------------------------------------------------
                          2006                         2005
            -------------------------------   ------------------------
                     FAS
             GAAP    123R  Certain Adjusted    GAAP   Certain Adjusted
             Basis   Adj.   Items   Basis      Basis   Items   Basis
            ------- ------ ------- --------   ------- ------- --------
Cost of
 goods sold $196.1  ($0.4)    ---   $195.7    $173.5     ---   $173.5
Marketing,
 selling &
 admin.
 expense     153.5   (5.3)    ---    148.2     136.0     ---    136.0
Research &
 development
 expense      37.1   (0.4)   (6.4)    30.3      29.0     ---     29.0
Other
(income)
 expense,
 net          (7.6)   ---     1.6     (6.0)    (11.5)    8.3     (3.2)
Income tax
 provision    33.2    2.1    (0.6)    34.7      32.0    (3.2)    28.8
Net income   $81.4   $4.0    $5.4    $90.8     $85.3   ($5.1)   $80.2
Diluted
 earnings
 per share   $0.76  $0.04   $0.05    $0.85     $0.79  ($0.05)   $0.74



                              Six Months Ended June 30,
            --------------------------------------------------------
                          2006                         2005
            ------------------------------- ------------------------
                     FAS
             GAAP    123R  Certain Adjusted    GAAP   Certain Adjusted
             Basis   Adj.   Items   Basis      Basis   Items   Basis
            ------- ------ ------- --------   ------- ------- --------
Cost of
 goods sold $375.5  ($0.6)    ---   $374.9    $338.4     ---   $338.4
Marketing,
 selling &
 admin.
 expense     296.1  (11.7)    ---    284.4     264.6     ---    264.6
Research &
 development
 expense      75.7   (0.8)  (16.8)    58.1      56.2     ---     56.2
Other
 (income)
 expense,
 net         (15.3)   ---     1.6    (13.7)    (17.9)   11.5     (6.4)
Income tax
 provision    62.0    4.6     3.5     70.1      61.9    (4.4)    57.5
Net income  $162.5   $8.5   $11.7   $182.7    $166.6   ($7.1)  $159.5
Diluted
 earnings
 per share   $1.52  $0.08   $0.11    $1.71     $1.54  ($0.07)   $1.47

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