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 Relations
   (703) 754-2848

BARD ANNOUNCES FOURTH QUARTER RESULTS

DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS UP

68 PERCENT, 15 PERCENT ON ADJUSTED BASIS

MURRAY HILL, NJ — (January 31, 2008) — C. R. Bard, Inc. (NYSE: BCR) today reported 2007 fourth quarter financial results. Fourth quarter 2007 net sales were $583.3 million, an increase of 12 percent over the prior-year period. Excluding the impact of foreign exchange, fourth quarter 2007 net sales increased 9 percent over the prior-year period.

For the fourth quarter 2007, net sales in the U.S. were $393.7 million and net sales outside the U.S. were $189.6 million, an increase of 9 percent and 19 percent, respectively, over the prior-year period. Excluding the impact of foreign exchange, fourth quarter 2007 net sales outside the U.S. increased 9 percent over the prior-year period.

Net sales for the full year 2007 were $2,202.0 million, an increase of 11 percent over the prior-year period. Excluding the impact of foreign exchange, full year 2007 net sales increased 9 percent over the prior-year period.

For the fourth quarter 2007, income from continuing operations was $105.2 million and diluted earnings per share from continuing operations were $1.01, an increase of 64 percent and 68 percent, respectively, as compared to fourth quarter 2006 results. Adjusting for items that affect comparability between periods as detailed in the tables below, fourth quarter 2007 income from continuing operations and related diluted earnings per share increased 12 percent and 15 percent, respectively, as compared to fourth quarter 2006 results.

For the full year 2007, income from continuing operations was $406.4 million and diluted earnings per share from continuing operations were $3.84, an increase of 29 percent and 31 percent, respectively, as compared to full year 2006 results. Adjusting for items that affect comparability between periods, full year 2007 income from continuing operations and related diluted earnings per share increased 15 percent and 16 percent, respectively, as compared to full year 2006 results.

Timothy M. Ring, chairman and chief executive officer, commented, “We are pleased to conclude our centennial year with solid fourth quarter and full year results. Our 2007 performance marks the fifth consecutive year that Bard has delivered adjusted EPS growth above the company’s target of 14 percent. This success demonstrates the effectiveness of our strategy, and the ability of our organization to execute. We look forward to making 2008 another successful year for Bard and its shareholders.”

C. R. Bard, Inc. (www.crbard.com), headquartered in Murray Hill, NJ, 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 the Cautionary Statement Regarding Forward-Looking Information in our September 30, 2007 Form 10-Q/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.

Consolidated Statements of Income

(in thousands except per share amounts, unaudited)

 

     Quarter Ended
December 31,
    Twelve Months Ended
December 31,
 
     2007     2006     2007     2006  

Net sales

   $ 583,300     $ 519,700     $ 2,202,000     $ 1,979,600  

Costs and expenses:

        

Cost of goods sold

     227,700       201,200       864,500       767,600  

Marketing, selling & administrative expense

     169,700       158,800       644,800       615,200  

Research & development expense

     36,600       38,500       135,800       144,900  

Interest expense

     3,100       3,700       11,900       16,900  

Other (income) expense, net

     (7,200 )     42,300       (32,300 )     40,400  
                                

Total costs and expenses

     429,900       444,500       1,624,700       1,585,000  
                                

Income from continuing operations before tax provision

     153,400       75,200       577,300       394,600  
                                

Income tax provision

     48,200       11,100       170,900       80,100  
                                

Income from continuing operations

     105,200       64,100       406,400       314,500  
                                

Income (loss) from discontinued operations, net of tax

     —         (42,100 )     —         (42,400 )
                                

Net income

   $ 105,200     $ 22,000     $ 406,400     $ 272,100  
                                

Basic earnings per share from continuing operations

   $ 1.04     $ 0.62     $ 3.96     $ 3.04  

Basic earnings (loss) per share from discontinued operations

     —       $ (0.41 )     —       $ (0.41 )

Basic earnings per share

   $ 1.04     $ 0.21     $ 3.96     $ 2.63  

Diluted earnings per share from continuing operations

   $ 1.01     $ 0.60     $ 3.84     $ 2.94  

Diluted earnings (loss) per share from discontinued operations

     —       $ (0.39 )     —       $ (0.40 )

Diluted earnings per share

   $ 1.01     $ 0.21     $ 3.84     $ 2.55  

Wt. avg. common shares outstanding—basic

     101,000       103,300       102,700       103,500  

Wt. avg. common shares outstanding—diluted

     104,100       106,800       105,900       106,900  

Product Group Summary of Net Sales

(in thousands, unaudited)

 

     Quarter Ended December 31,     Twelve Months Ended December 31,  
     2007    2006    Change     Constant
Currency
    2007    2006    Change     Constant
Currency
 

Vascular

   $ 141,900    $ 125,900    13 %   8 %   $ 539,600    $ 479,600    13 %   9 %

Urology

     176,400      154,700    14 %   12 %     658,900      582,000    13 %   11 %

Oncology

     148,000      128,600    15 %   12 %     558,600      481,300    16 %   14 %

Surgical Specialties

     96,500      90,100    7 %   5 %     363,500      357,400    2 %   —    

Other

     20,500      20,400    —       -1 %     81,400      79,300    3 %   1 %
                                    

Continuing operations

     583,300      519,700    12 %       2,202,000      1,979,600    11 %  
                                    

FX impact

     —        14,600          —        40,000     
                                    

Constant currency

   $ 583,300    $ 534,300      9 %   $ 2,202,000    $ 2,019,600      9 %
                                    


Reconciliation of Earnings From Continuing Operations

(in millions except per share amounts, unaudited)

 

     Quarter Ended December 31, 2007  
     Research &
Development
Expense
    Other
(Income)
Expense, Net
    Income
Tax
Provision
(Benefit)
    Income
From
Continuing
Operations
    Diluted
Earnings
Per Share
 

GAAP basis

   $ 36.6     $ (7.2 )   $ 48.2     $ 105.2     $ 1.01  
                                        

Adjusted basis

   $ 36.6     $ (7.2 )   $ 48.2     $ 105.2     $ 1.01  
                                        
     Quarter Ended December 31, 2006  
     Research &
Development
Expense
    Other
(Income)
Expense, Net
    Income
Tax
Provision
(Benefit)
    Income
From
Continuing
Operations
    Diluted
Earnings
Per Share
 
          
          
          

GAAP basis

   $ 38.5     $ 42.3     $ 11.1     $ 64.1     $ 0.60  

Items that affect comparability of results between periods:

          

Purchased research & development

     (7.2 )     —         0.4       6.8    

Investment gains

     —         1.3       (0.5 )     (0.8 )  

Settlement of legal matter

     —         (49.0 )     18.5       30.5    

Settlement of a tax matter by joint venture in Japan

     —         (1.2 )     —         1.2    

Reduction in tax provision

     —         —         7.6       (7.6 )  
                                  

Total

     (7.2 )     (48.9 )     26.0       30.1       0.28  
                                        

Adjusted basis

   $ 31.3     $ (6.6 )   $ 37.1     $ 94.2     $ 0.88  
                                        
     Twelve Months Ended December 31, 2007  
     Research &
Development
Expense
    Other
(Income)
Expense, Net
    Income
Tax
Provision
(Benefit)
    Income
From
Continuing
Operations
    Diluted
Earnings
Per Share
 
          
          
          

GAAP basis

   $ 135.8     $ (32.3 )   $ 170.9     $ 406.4     $ 3.84  

Items that affect comparability of results between periods:

          

Purchased research & development

     (1.6 )     —         0.1       1.5    

Reduction in tax provision

     —         —         3.7       (3.7 )  
                                  

Total

     (1.6 )     —         3.8       (2.2 )     (0.02 )
                                        

Adjusted basis

   $ 134.2     $ (32.3 )   $ 174.7     $ 404.2     $ 3.82  
                                        
     Twelve Months Ended December 31, 2006  
     Research &
Development
Expense
    Other
(Income)
Expense, Net
    Income
Tax
Provision
(Benefit)
    Income
From
Continuing
Operations
    Diluted
Earnings
Per Share
 
          
          
          

GAAP basis

   $ 144.9     $ 40.4     $ 80.1     $ 314.5     $ 2.94  

Items that affect comparability of results between periods:

          

Purchased research & development

     (24.0 )     —         4.5       19.5    

Investment gains

     —         2.9       (1.1 )     (1.8 )  

Settlement of legal matter

     —         (69.0 )     25.9       43.1    

Settlement of a tax matter by joint venture in Japan

     —         (1.2 )     —         1.2    

Reduction in tax provision

     —         —         23.8       (23.8 )  
                                  

Total

     (24.0 )     (67.3 )     53.1       38.2       0.36  
                                        

Adjusted basis

   $ 120.9     $ (26.9 )   $ 133.2     $ 352.7     $ 3.30  
                                        


Notes to Consolidated Statements of Income

 

 

 

   

For the fourth quarter ended December 31, 2007, there were no items that met the criteria described below that affected the comparability of results between periods.

 

   

For the fourth quarter ended December 31, 2006, the following items affected the comparability of results between periods: (i) charges totaling approximately $7.2 million pretax ($6.8 million after-tax) for purchased research and development; (ii) investment gains of approximately $1.3 million pretax ($0.8 million after-tax); (iii) a charge of approximately $49.0 million pretax ($30.5 million after-tax) for the settlement of a legal matter; (iv) a charge of approximately $1.2 million pretax ($1.2 million after-tax) related to the settlement of a tax matter by the company’s joint venture in Japan; and (v) a reduction in the income tax provision of approximately $7.6 million predominantly related to the expiration of the statute of limitations in the United States for the 2002 tax year. The net effect of these items decreased income from continuing operations by $30.1 million after-tax, or $0.28 diluted earnings per share from continuing operations.

 

   

For the year ended December 31, 2007, the following items affected the comparability of results between periods: (i) a charge of approximately $1.6 million pretax ($1.5 million after-tax) for purchased research and development; and (ii) a reduction in the income tax provision of approximately $3.7 million due to changes in certain statutory tax rates outside the United States that resulted in the revaluation of deferred taxes. The net effect of these items increased income from continuing operations by $2.2 million after-tax, or $0.02 diluted earnings per share from continuing operations.

 

   

For the year ended December 31, 2006, the following items affected the comparability of results between periods: (i) charges of approximately $24.0 million pretax ($19.5 million after-tax) for purchased research and development; (ii) investment gains of approximately $2.9 million pretax ($1.8 million after-tax); (iii) a charge of approximately $69.0 million pretax ($43.1 million after-tax) for the settlement of legal matters; (iv) a charge of approximately $1.2 million pretax ($1.2 million after-tax) related to the settlement of a tax matter by the company’s joint venture in Japan; and (v) a reduction in the income tax provision of approximately $23.8 million predominately related to the expiration of the statute of limitations in the United States for the tax years 2000 through 2002. The net effect of these items decreased income from continuing operations by $38.2 million after-tax, or $0.36 diluted earnings per share from continuing operations.

In the first quarter of 2007, the company completed its previously disclosed plan to withdraw from the synthetic bulking market and discontinue the sale of the Tegress™ synthetic bulking product, which was formerly reported in the Urology product group category. Consequently, the company accounts for this withdrawal as a discontinued operation for all periods referred to in this release.

This press release contains financial measures that are not calculated in accordance with United States generally accepted accounting principles (GAAP). These non-GAAP financial measures are reconciled to their most directly comparable GAAP measures in the above tables.

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) other (income) expense, net excluding investment gains, a charge for the settlement of a legal matter, and a charge related to the settlement of a tax matter by the company’s joint venture operating in Japan; (3) income tax provision excluding reductions relating to expired statutes of limitations, reductions relating to changes in statutory tax rates and the tax effect of the items set forth in (1) and (2) above; (4) income from continuing operations excluding the items set forth in (1) through (3) above; and (5) diluted earnings per share from continuing operations excluding the items set forth in (1) through (3) above.

The company excluded the items described above because they may cause certain statements 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 above tables.