Revenue up 13 Percent as Reported, 11 Percent Excluding Foreign Exchange MURRAY HILL, N.J., Apr 24, 2007 (BUSINESS WIRE) -- C. R. Bard, Inc. (NYSE-BCR) today reported 2007 first quarter
financial results. First quarter 2007 net sales were $528.2 million,
an increase of 13 percent over the prior-year period. Excluding the
impact of foreign exchange, first quarter 2007 net sales increased 11
percent over the prior-year period.
For the first quarter 2007, net sales in the U.S. were $373.9
million and net sales outside the U.S. were $154.3 million, up 14
percent and 12 percent, respectively, over the prior-year period.
Excluding the impact of foreign exchange, first quarter 2007 net sales
outside the U.S. increased 6 percent over the prior-year period.
In the first quarter 2007, the company completed its previously
disclosed plan to withdraw from the synthetic bulking market and
discontinue the sale of the Tegress(TM) synthetic bulking product,
which was formerly reported in the Urology product group.
Consequently, the company will account for this withdrawal as a
discontinued operation for all periods referred to in this release.
For the first quarter 2007, income from continuing operations was
$101.6 million and diluted earnings per share from continuing
operations were 95 cents, both up 25 percent as compared to first
quarter 2006 results. Adjusting for certain items that affect
comparability between periods, first quarter 2007 income from
continuing operations and diluted earnings per share from continuing
operations were both up 16 percent as compared to first quarter 2006
results. Adjustments to the first quarter 2006 results included an
item detailed in the tables below that decreased net income by $6.3
million (after-tax), or 6 cents per diluted share.
"We are pleased to begin Bard's centennial year with a quarter of
healthy revenue and earnings growth. Recent new product introductions
and increased demand for many of our existing technologies helped
drive solid net sales growth in each of our four businesses," said
Chairman and Chief Executive Officer Timothy M. Ring. "We continue to
be pleased with the execution and productivity of our strategic growth
initiatives. Looking ahead, we see ample opportunity to expand our
investment in market-leading technologies."
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, 2006 10-K/A for more
detailed information about these and other factors that may cause
actual results to differ materially from those expressed or implied.
C. R. Bard, Inc.
Condensed Consolidated Statements of Income
(in thousands except per share amounts, unaudited)
Quarter Ended March 31,
-----------------------
2007 2006
----------- ---------
Net sales $528,200 $465,900
Costs and expenses:
Cost of goods sold 206,500 178,100
Marketing, selling & administrative expense 153,700 142,300
Research & development expense 30,100 38,300
Interest expense 2,900 4,700
Other (income) expense, net (7,400) (7,700)
----------- ---------
Total costs and expenses 385,800 355,700
----------- ---------
Income from continuing operations before tax
provision 142,400 110,200
Income tax provision 40,800 28,700
----------- ---------
Income from continuing operations 101,600 81,500
----------- ---------
Loss from discontinued operations, net of tax
provision --- (400)
----------- ---------
Net income $101,600 $81,100
=========== =========
Basic earnings per share from continuing
operations $0.98 $0.79
Basic loss per share from discontinued
operations --- ---
Basic earnings per share $0.98 $0.78
Diluted earnings per share from continuing
operations $0.95 $0.76
Diluted earnings per share from discontinued
operations --- ---
Diluted earnings per share $0.95 $0.76
Wt. avg. common shares outstanding - basic 103,300 103,800
Wt. avg. common shares outstanding - diluted 106,700 107,000
Product Group Summary of Net Sales
(in thousands, unaudited)
Quarter Ended March 31,
Constant
2007 2006 Change Currency
------------- --------- -------- ------------
Vascular $127,700 $113,700 12% 9%
Urology 155,200 132,700 17% 15%
Oncology 127,800 111,000 15% 14%
Surgical Specialties 97,100 88,100 10% 9%
Other 20,400 20,400 --- -1%
------------- --------- -------- ------------
Reported Sales $528,200 $465,900 13%
========
FX Impact --- 8,100
------------- ---------
Con. Currency $528,200 $474,000 11%
============= ========= ============
Reconciliation of Income From Continuing Operations
Comparison of Quarters Ended March 31,
(in millions, except per share amounts, unaudited)
2007
---------------------------------------------
Income
Income from Diluted
Research & Tax Continuing Earnings
Development Provision Operations Per Share
------------ ---------- ----------- ---------
GAAP basis $30.1 $40.8 $101.6 $0.95
============ ========== =========== =========
2006
---------------------------------------------
Income
Income from Diluted
Research & Tax Continuing Earnings
Development Provision Operations Per Share
------------ ---------- ----------- ---------
GAAP basis $38.3 $28.7 $81.5 $0.76
Items Impacting
Comparability of
Results Between
Periods:
------------------------
Purchased research &
development (10.4) 4.1 6.3
------------ ---------- -----------
Total $(10.4) $4.1 $6.3 $0.06
------------ ---------- ----------- ---------
Adjusted basis $27.9 $32.8 $87.8 $0.82
============ ========== =========== =========
Notes to Condensed Consolidated Statements of Income
-- For the first quarter of 2007, there were no items that met
the criteria described below that affected the comparability
of results between periods.
-- For the first quarter of 2006, research and development
expense included payments of approximately $10.4 million
pretax ($6.3 million after-tax; $0.06 diluted earnings per
share) for purchased research and development.
This press release contains financial measures that are not
calculated in accordance with U.S. generally accepted accounting
principles ("GAAP"). These non-GAAP financial measures are reconciled
to their most directly comparable GAAP measures in the tables above.
This press release includes net sales excluding the impact of
foreign exchange. 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 to both
management and the company's investors.
In addition, this press release includes the following non-GAAP
measures: (1) research & development expense excluding payments for
purchased research and development; (2) income tax provision excluding
the tax effect of the item in (1) above; (3) income from continuing
operations excluding the items set forth in (1) and (2) above; and (4)
diluted earnings per share (EPS) excluding the items set forth in (1)
and (2) above.
The company excluded the items described above because they may
cause certain statement of income categories not to be indicative of
ongoing operating results, and therefore affect the comparability of
results between periods. The company therefore believes that these
non-GAAP measures provide an additional and meaningful assessment of
the company's ongoing operating performance. Because the company has
historically reported these non-GAAP results to the investment
community, management also believes that the inclusion of these
non-GAAP measures provides consistency in its financial reporting and
facilitates investors' understanding of the company's historic
operating trends by providing an additional basis for comparisons to
prior periods. Management uses these non-GAAP measures (1) to
establish financial and operational goals, (2) to monitor the
company's actual performance in relation to its business plan and
operating budgets, (3) to evaluate the company's core operating
performance and understand key trends within the business, and (4) as
part of several components it considers in determining incentive
compensation.
Management recognizes that the use of these non-GAAP measures has
limitations, including the fact that they may not be comparable with
similar non-GAAP financial measures used by other companies and that
management must exercise judgment in determining which types of
charges or other items should be excluded from the non-GAAP financial
information. Management compensates for these limitations by providing
full disclosure of each non-GAAP financial measure and a
reconciliation to the most directly comparable GAAP financial measure.
All non-GAAP financial measures are intended to supplement the
applicable GAAP disclosures and should not be considered in isolation
from, or as a replacement for, financial information prepared in
accordance with GAAP. For a reconciliation of these non-GAAP measures
to the most comparable GAAP measures, please see the tables above.
SOURCE: C. R. Bard, Inc.
C. R. Bard, Inc.
Investor Relations:
Eric J. Shick, 908-277-8413
Vice President, Investor Relations
or
Media Relations:
Holly P. Glass, 703-754-2848
Vice President, Government and Public Affairs
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