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.
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