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 SECOND QUARTER RESULTS

REVENUE UP 13 PERCENT AS REPORTED,

10 PERCENT EXCLUDING FOREIGN EXCHANGE

MURRAY HILL, NJ — (July 23, 2008) — C. R. Bard, Inc. (NYSE: BCR) today reported 2008 second quarter financial results. Second quarter 2008 net sales were $617.1 million, an increase of 13 percent over the prior-year period. Excluding the impact of foreign exchange, second quarter 2008 net sales increased 10 percent over the prior-year period.

For the second quarter 2008, net sales in the U.S. were $406.3 million and net sales outside the U.S. were $210.8 million, an increase of 8 percent and 23 percent, respectively, over the prior-year period. Excluding the impact of foreign exchange, second quarter 2008 net sales outside the U.S. increased 13 percent over the prior-year period.

For the second quarter 2008, net income was $77.9 million and diluted earnings per share were $0.76, a decrease of 20 percent and 16 percent, respectively, as compared to second quarter 2007 results. Adjusting for items that affect comparability between periods as detailed in the tables below, second quarter 2008 net income was $112.8 million and diluted earnings per share were $1.10, an increase of 14 percent and 18 percent, respectively, as compared to second quarter 2007 results.

Timothy M. Ring, chairman and chief executive officer, commented, “We are pleased with our overall performance in the second quarter. Through the strength of our diversified portfolio, we delivered double-digit revenue growth in constant currency. Earnings results were again strong and we continue to invest for long-term growth through our new product and business development activities.”

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 March 31, 2008 Form 10-Q 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     Six Months Ended  
     June 30,     June 30,  
     2008    2007     2008    2007  

Net Sales

   $ 617,100    $ 545,700     $ 1,201,100    $ 1,073,900  

Cost and Expenses

          

Cost of goods sold

     243,600      216,600       469,100      423,100  

Marketing, selling & administrative expense

     180,800      160,500       349,700      314,200  

Research and development expense

     38,200      35,100       124,000      65,200  

Interest expense

     3,000      3,000       6,000      5,900  

Other (income) expense, net

     32,600      (8,800 )     28,600      (16,200 )
                              

Total costs and expenses

     498,200      406,400       977,400      792,200  
                              

Income from continuing operations before income taxes

     118,900      139,300       223,700      281,700  
                              

Income tax provision

     41,000      41,800       67,800      82,600  
                              

Income from continuing operations

     77,900      97,500       155,900      199,100  
                              

Income on discontinued operations

     —        —         —        —    
                              

Net income

   $ 77,900    $ 97,500     $ 155,900    $ 199,100  
                              

Basic earnings per share:

          

Income from continuing operations

   $ 0.78    $ 0.94     $ 1.56    $ 1.93  

Net income per share

   $ 0.78    $ 0.94     $ 1.56    $ 1.93  
                              

Diluted earnings per share:

          

Income from continuing operations

   $ 0.76    $ 0.91     $ 1.52    $ 1.86  

Net income per share

   $ 0.76    $ 0.91     $ 1.52    $ 1.86  
                              

Wt. avg. common shares outstanding—basic

     99,300      103,600       99,700      103,400  

Wt. avg. common shares outstanding—diluted

     102,400      106,900       102,900      106,800  

Product Group Summary of Net Sales

(in thousands, unaudited)

 

     Quarter Ended June 30,     Six Months Ended June 30,  
                     Constant                     Constant  
     2008    2007    Change     Currency     2008    2007    Change     Currency  

Vascular

   $ 163,600    $ 135,900    20 %   14 %   $ 314,000    $ 263,600    19 %   14 %

Urology

     176,400      160,900    10 %   8 %     345,100      316,100    9 %   7 %

Oncology

     163,700      141,900    15 %   13 %     313,700      269,700    16 %   14 %

Surgical Specialties

     88,900      86,500    3 %   —         181,900      183,600    (1 )%   (3 )%

Other

     24,500      20,500    20 %   18 %     46,400      40,900    13 %   12 %
                                    

Net sales

   $ 617,100    $ 545,700    13 %     $ 1,201,100    $ 1,073,900    12 %  
                                    

FX impact

        16,100             28,200     
                                    

Constant Currency

   $ 617,100    $ 561,800      10 %   $ 1,201,100    $ 1,102,100      9 %
                                    


Reconciliation of Earnings

(in millions except per share amounts, unaudited)

 

     Quarter Ended June 30, 2008
                 Other     Income          
     Cost of     Research &     (Income)     Tax    Net    Diluted
     Goods     Development     Expense,     Provision    Income    Earnings
     Sold     Expense     Net     (Benefit)    (Loss)    Per Share

GAAP Basis

   $ 243.6     $ 38.2     $ 32.6     $ 41.0    $ 77.9    $ 0.76

Items that affect comparability of results between periods:

              

Asset disposition

     (3.7 )     —         (36.8 )     5.6      34.9   
                                            

Total

     (3.7 )     —         (36.8 )     5.6      34.9      0.34
                                            

Adjusted Basis

   $ 239.9     $ 38.2     $ (4.2 )   $ 46.6    $ 112.8    $ 1.10
                                            
     Quarter Ended June 30, 2007
                 Other     Income          
     Cost of     Research &     (Income)     Tax    Net    Diluted
     Goods     Development     Expense,     Provision    Income    Earnings
     Sold     Expense     Net     (Benefit)    (Loss)    Per Share

GAAP Basis

   $ 216.6     $ 35.1     $ (8.8 )   $ 41.8    $ 97.5    $ 0.91

Items that affect comparability of results between periods:

              

Purchased research & development

     —         (1.6 )     —         0.1      1.5   
                                            

Total

     —         (1.6 )     —         0.1      1.5      0.02
                                            

Adjusted Basis

   $ 216.6     $ 33.5     $ (8.8 )   $ 41.9    $ 99.0    $ 0.93
                                            
     Six Months Ended June 30, 2008
                 Other     Income          
     Cost of     Research &     (Income)     Tax    Net    Diluted
     Goods     Development     Expense,     Provision    Income    Earnings
     Sold     Expense     Net     (Benefit)    (Loss)    Per Share

GAAP Basis

   $ 469.1     $ 124.0     $ 28.6     $ 67.8    $ 155.9    $ 1.52

Items that affect comparability of results between periods:

              

Asset disposition

     (3.7 )     —         (36.8 )     5.6      34.9   

Purchased research & development

     —         (49.3 )     —         18.2      31.1   
                                            

Total

     (3.7 )     (49.3 )     (36.8 )     23.8      66.0      0.64
                                            

Adjusted Basis

   $ 465.4     $ 74.7     $ (8.2 )   $ 91.6    $ 221.9    $ 2.16
                                            
     Six Months Ended June 30, 2007
                 Other     Income          
     Cost of     Research &     (Income)     Tax    Net    Diluted
     Goods     Development     Expense,     Provision    Income    Earnings
     Sold     Expense     Net     (Benefit)    (Loss)    Per Share

GAAP Basis

   $ 423.1     $ 65.2     $ (16.2 )   $ 82.6    $ 199.1    $ 1.86

Items that affect comparability of results between periods:

              

Purchased research & development

     —         (1.6 )     —         0.1      1.5   
                                            

Total

     —         (1.6 )     —         0.1      1.5      0.02
                                            

Adjusted Basis

   $ 423.1     $ 63.6     $ (16.2 )   $ 82.7    $ 200.6    $ 1.88
                                            


Notes

 

 

   

For the second quarter 2008, a charge of $40.5 million pretax for an asset disposition affected the comparability of results between periods. The effect of this charge decreased net income by $34.9 million, or $0.34 diluted earnings per share.

 

   

For the second quarter 2007, a charge of $1.6 million pretax for purchased research and development affected the comparability of results between periods. The effect of this charge decreased net income by $1.5 million, or $0.02 diluted earnings per share.

 

   

For the six months ended June 30, 2008, charges of $49.3 million pretax for purchased research and development and $40.5 million pretax for an asset disposition affected the comparability of results between periods. The effect of these charges decreased net income by $66.0 million, or $0.64 diluted earnings per share.

 

   

For the six months ended June 30, 2007, a charge of $1.6 million pretax for purchased research and development affected the comparability of results between periods. The effect of this charge decreased net income by $1.5 million, or $0.02 diluted earnings per share.

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) cost of goods sold excluding a charge for an asset disposition; (2) research & development expense excluding payments for purchased research and development; (3) other (income) expense, net excluding a charge for an asset disposition; (4) the tax effect of the items set forth in (1) through (3) above; (5) net income excluding the items set forth in (1) through (4) above; and (6) diluted earnings per share excluding the items set forth in (1) through (4) 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.