EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

 

Contacts:

 

Investor Relations:

  Eric J. Shick
    Vice President, Investor Relations
    (908) 277-8413

Media Relations:

  Holly P. Glass
    Vice President, Government and Public Affairs
    (703) 754-2848

 

BARD ANNOUNCES SECOND QUARTER RESULTS

 

MURRAY HILL, NJ — (July 19, 2005) — C. R. Bard, Inc. (NYSE-BCR) today reported 2005 second quarter financial results. Second quarter 2005 net sales were $447.4 million, an increase of 7 percent over the prior-year period. Excluding the impact of a 2004 divestiture and foreign exchange, second quarter 2005 ongoing net sales increased 10 percent over the prior-year period.

 

For the second quarter 2005, net sales in the U.S. were $304.1 million and net sales outside the U.S. were $143.3 million, up 5 percent and 14 percent, respectively, over the prior-year period. Excluding the impact of a 2004 divestiture and foreign exchange, second quarter 2005 ongoing net sales in the U.S. and outside the U.S. increased 9 percent and 12 percent, respectively, over the prior-year period.

 

For the second quarter 2005, net income was $85.3 million and diluted earnings per share were 79 cents, an increase of 45 percent and 44 percent, respectively, over the prior-year period.

 

The 2005 second quarter results included certain items that increased net income by $5.1 million (after-tax), or 5 cents per diluted share. Excluding certain items, second quarter 2005 net income was $80.2 million and diluted earnings per share were 74 cents. Net income and diluted earnings per share, excluding certain items, increased 31 percent and 30 percent, respectively, as compared to the prior-year period.

 

“We are pleased to report solid revenue and earnings results for the quarter. Our diversified product portfolio helped drive top line growth and we benefited specifically from strong sales in our Oncology business,” commented Timothy M. Ring, chairman and chief executive officer. “Healthy margins and controlled spending have again positively impacted earnings this quarter. We continue to prudently invest operational savings into the business with a goal to enhance growth and increase 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.

 

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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, expenses, 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, 2005 10-Q for more detailed information about these and other factors that may cause actual results to differ materially from those expressed or implied.

 

The company sold certain assets of its Endoscopic Technologies division on September 30, 2004. Net sales excluding sales of the divested Endoscopic Technologies products are referred to as “ongoing net sales”. The earnings per share figures reported in this press release reflect the company’s two-for-one common stock split that became effective on May 28, 2004.

 

Net sales, excluding foreign exchange, ongoing net sales and net income and diluted earnings per share excluding certain items are non-GAAP financial measures. The company analyzes net sales on a constant currency and ongoing 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. The company believes that comparing ongoing net sales between periods provides an additional and meaningful analysis of comparable operations. Net income and EPS excluding certain items are used by the company to measure the comparability of results between periods. Because certain items such as investment gains and litigation outcomes may not reflect underlying operating results, 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.

 

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C. R. Bard, Inc.

Consolidated Statements of Income

(dollars in thousands except per share amounts, unaudited)

 

    

Quarter Ended

June 30,


  

Six Months Ended

June 30,


 
     2005

    2004

   2005

    2004

 

Net sales

   $ 447,400     $ 416,300    $ 876,000     $ 810,100  

Costs and expenses:

                               

Cost of goods sold

     173,500       169,000      338,400       330,600  

Marketing, selling & administrative expense

     136,000       130,500      264,600       251,200  

Research & development expense

     29,000       31,600      56,200       54,800  

Interest expense

     3,100       3,000      6,200       6,400  

Other (income) expense, net

     (11,500 )     3,100      (17,900 )     (10,300 )
    


 

  


 


Total costs and expenses

     330,100       337,200      647,500       632,700  
    


 

  


 


Income before tax provision

     117,300       79,100      228,500       177,400  

Income tax provision

     32,000       20,400      61,900       46,800  
    


 

  


 


Net income

   $ 85,300     $ 58,700    $ 166,600     $ 130,600  
    


 

  


 


Basic earnings per share

   $ 0.81     $ 0.56    $ 1.59     $ 1.25  
    


 

  


 


Diluted earnings per share

   $ 0.79     $ 0.55    $ 1.54     $ 1.22  
    


 

  


 


Wt. avg. common shares outstanding – basic

     105,200       104,500      105,000       104,300  

Wt. avg. common shares outstanding – diluted

     108,500       107,500      108,300       107,100  

 

Product Group Summary of Net Sales

(dollars in thousands, unaudited)

 

     Quarter Ended June 30,

    Six Months Ended June 30,

 
     2005

   2004

   Change

   

Constant

Currency


    2005

   2004

   Change

    Constant
Currency


 

Vascular

   $ 108,800    $ 100,100    9 %   6 %   $ 213,100    $ 192,200    11 %   8 %

Urology

     131,900      121,500    9 %   7 %     259,300      238,000    9 %   8 %

Oncology

     102,000      84,200    21 %   19 %     195,200      163,300    20 %   18 %

Surgery

     85,600      76,900    11 %   10 %     171,100      152,100    12 %   12 %

Other

     19,100      17,500    9 %   8 %     37,300      33,300    12 %   11 %
    

  

              

  

            

Ongoing Sales

   $ 447,400    $ 400,200    12 %         $ 876,000    $ 778,900    12 %      
                  

                     

     

FX Impact

     —        6,400                  —        10,900             
    

  

              

  

            

Con. Currency

   $ 447,400    $ 406,600          10 %   $ 876,000    $ 789,800          11 %
    

  

        

 

  

        

Ongoing Sales

   $ 447,400    $ 400,200    12 %         $ 876,000    $ 778,900    12 %      
                  

                     

     

Divested Sales

     —        16,100                  —        31,200             
    

  

              

  

            

Reported Sales

   $ 447,400    $ 416,300    7 %         $ 876,000    $ 810,100    8 %      
    

  

  

       

  

  

     

 

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Notes to Consolidated Statements of Income

 

    Net sales of divested products were previously reported in the oncology product group.

 

    All earnings per share numbers reflect the company’s 2 for 1 stock split that became effective May 28, 2004.

 

    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; $0.01 diluted earnings per share) and the resolution of a royalty matter of approximately $7.1 million pretax ($4.4 million after-tax; $0.04 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).

 

    For the second quarter of 2004, in addition to interest income and exchange gains and losses, other (income) expense, net included the following certain items: a charge for a legal settlement partially offset by an investment gain, which resulted in a net pretax charge of $4.3 million ($2.6 million after tax; $0.02 diluted earnings per share). For the six months ended June 30, 2004, in addition to interest income and exchange gains and losses, other (income) expense, net included the following certain items: the adjustment of a fourth quarter 2003 reserve recorded in connection with a legal verdict, offset by unrelated legal settlements and investment gains for a net adjustment of $7.8 million pretax ($4.9 million after tax; $.05 diluted earnings per share).

 

Additionally in the first quarter of 2004, the company recorded a $1.1 million tax credit in income tax provision related to the retroactive effective date of its Malaysian high-technology pioneer grant ($0.01 diluted earnings per share).

 

Reconciliation of Earnings

(in millions, except per share)

Quarter Ended June 30,

 

     2005

    2004

     Net Income

    Diluted EPS

    Net Income

   Diluted EPS

GAAP Basis

   $ 85.3     $ 0.79     $ 58.7    $ 0.55

Certain Items

     (5.1 )     (0.05 )     2.6      0.02
    


 


 

  

Adjusted Basis

   $ 80.2     $ 0.74     $ 61.3    $ 0.57
    


 


 

  

 

Reconciliation of Earnings

(in millions, except per share)

Six Months Ended June 30,

 

     2005

    2004

 
     Net Income

    Diluted EPS

    Net Income

    Diluted EPS

 

GAAP Basis

   $ 166.6     $ 1.54     $ 130.6     $ 1.22  

Certain Items

     (7.1 )     (0.07 )     (6.0 )     (0.06 )
    


 


 


 


Adjusted Basis

   $ 159.5     $ 1.47     $ 124.6     $ 1.16  
    


 


 


 


 

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