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:  

Scott T. Lowry

Vice President and Treasurer

(908) 277-8365

BARD ANNOUNCES SECOND QUARTER RESULTS

DILUTED EPS OF $1.29, $1.39 ON ADJUSTED BASIS

MURRAY HILL, NJ — (July 22, 2010) — C. R. Bard, Inc. (NYSE: BCR) today reported 2010 second quarter financial results. Second quarter 2010 net sales were $673.9 million, an increase of 8 percent over the prior-year period. Excluding the impact of foreign exchange, second quarter 2010 net sales increased 7 percent over the prior-year period.

For the second quarter 2010, net sales in the U.S. were $464.9 million and net sales outside the U.S. were $209.0 million, an increase of 7 percent and 9 percent, respectively, over the prior-year period. Excluding the impact of foreign exchange, second quarter 2010 net sales outside the U.S. increased 6 percent over the prior-year period.

For the second quarter 2010, net income attributable to common shareholders was $124.6 million and diluted earnings per share available to common shareholders were $1.29, an increase of 11 percent and 16 percent, respectively, as compared to second quarter 2009 results. Adjusting for items that affect comparability between periods as detailed in the tables below, second quarter 2010 net income attributable to common shareholders was $134.0 million and diluted earnings per share available to common shareholders were $1.39, an increase of 8 percent and 13 percent, respectively, as compared to second quarter 2009 results.

Timothy M. Ring, chairman and chief executive officer, commented, “Bard delivered strong EPS growth this quarter, fueled by a record gross margin performance, while accelerating organic investment in R&D. We are dedicated to driving revenue growth by offering our customers products that are clinically and economically differentiated. Looking ahead, we see ample opportunity to expand our investment in the development and acquisition of market-leading technologies.”

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, 2010 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

(dollars and shares in thousands except per share amounts, unaudited)

 

     Quarter Ended
June 30,
   Six Months Ended
June 30,
     2010    2009    2010    2009

Net sales

   $ 673,900    $ 624,600    $ 1,324,700    $ 1,221,000

Costs and expenses

           

Cost of goods sold

     251,700      238,600      504,400      462,900

Marketing, selling and administrative expense

     189,500      169,900      369,200      334,200

Research and development expense

     45,100      41,700      85,700      78,100

Interest expense

     2,800      3,000      5,700      6,000

Other (income) expense, net

     2,100      7,600      2,000      16,900
                           

Total costs and expenses

     491,200      460,800      967,000      898,100
                           

Income from operations before income taxes

     182,700      163,800      357,700      322,900
                           

Income tax provision

     58,000      51,400      111,800      97,300
                           

Net income

     124,700      112,400      245,900      225,600
                           

Net income attributable to noncontrolling interest

     100      200      400      900
                           

Net income attributable to common shareholders

   $ 124,600    $ 112,200    $ 245,500    $ 224,700
                           

Basic earnings per share available to common shareholders

   $ 1.31    $ 1.13    $ 2.56    $ 2.25
                           

Diluted earnings per share available to common shareholders

   $ 1.29    $ 1.11    $ 2.53    $ 2.22
                           

Wt. avg. common shares outstanding - basic

     94,400      98,500      94,900      98,900

Wt. avg. common and common equivalent shares outstanding - diluted

     95,600      99,600      96,100      100,300

Product Group Summary of Net Sales

(dollars in thousands, unaudited)

 

     Quarter Ended June 30,     Six Months Ended June 30,  
     2010    2009    Change     Constant
Currency
    2010    2009    Change     Constant
Currency
 

Vascular

   $ 187,500    $ 169,100    11   10   $ 359,900    $ 326,500    10   8

Urology

     179,700      174,700    3   2     354,000      337,500    5   3

Oncology

     178,300      167,200    7   5     352,300      328,200    7   5

Surgical Specialties

     106,200      91,900    16   15     215,400      186,000    16   14

Other

     22,200      21,700    2   2     43,100      42,800    1   -     
                                    

Net sales

   $ 673,900    $ 624,600    8     $ 1,324,700    $ 1,221,000    8  
                                    

Foreign exchange impact

        6,300             21,400     
                                    

Constant Currency

   $ 673,900    $ 630,900      7   $ 1,324,700    $ 1,242,400      7
                                    


Reconciliation of Earnings

(dollars in millions except per share amounts, unaudited)

 

     Quarter Ended June 30, 2010
     Cost of
Goods
Sold
    Marketing,
Selling and
Administrative
Expense
    Research &
Development
Expense
    Other
(Income)
Expense, Net
    Income
Taxes
   Net
Income
Attributable
to Common
Shareholders
   Diluted
Earnings

per Share
Available

to Common
Shareholders

GAAP Basis

   $ 251.7      $ 189.5      $ 45.1      $ 2.1      $ 58.0    $ 124.6    $ 1.29
Items that affect comparability of results between periods:                 

Acquisition related items

     (1.8     (2.5     (0.5     (1.6     0.8      5.6   

Write-down of receivables

     -          (3.8     -          -          -        3.8   
                                                    

Total

     (1.8     (6.3     (0.5     (1.6     0.8      9.4      0.10
                                                    

Adjusted Basis

   $ 249.9      $ 183.2      $ 44.6      $ 0.5      $ 58.8    $ 134.0    $ 1.39
                                                    
     Quarter Ended June 30, 2009
     Cost of
Goods
Sold
    Marketing,
Selling and
Administrative
Expense
    Research &
Development
Expense
    Other
(Income)
Expense, Net
    Income
Taxes
   Net
Income
Attributable
to Common
Shareholders
   Diluted
Earnings

per Share
Available

to Common
Shareholders

GAAP Basis

   $ 238.6      $ 169.9      $ 41.7      $ 7.6      $ 51.4    $ 112.2    $ 1.11
Items that affect comparability of results between periods:                 

Asset disposition

     (1.2     -          -          (4.5     0.5      5.2   

Acquisition related items

     (0.1     (0.8     (2.3     -          0.1      3.1   

Restructuring charge

     -          -          -          (5.6     1.9      3.7   
                                                    

Total

     (1.3     (0.8     (2.3     (10.1     2.5      12.0      0.12
                                                    

Adjusted Basis

   $ 237.3      $ 169.1      $ 39.4      $ (2.5   $ 53.9    $ 124.2    $ 1.23
                                                    
     Six Months Ended June 30, 2010
     Cost of
Goods
Sold
    Marketing,
Selling and
Administrative
Expense
    Research &
Development
Expense
    Other
(Income)
Expense, Net
    Income
Taxes
   Net Income
Attributable
to Common
Shareholders
   Diluted
Earnings per
Share
Available to
Common
Shareholders

GAAP Basis

   $ 504.4      $ 369.2      $ 85.7      $ 2.0      $ 111.8    $ 245.5    $ 2.53
Items that affect comparability of results between periods:                 

Acquisition related items

     (2.2     (3.7     (0.5     (1.6     0.9      7.1   

Write-down of receivables

     -          (3.8     -          -          -        3.8   
                                                    

Total

     (2.2     (7.5     (0.5     (1.6     0.9      10.9      0.11
                                                    

Adjusted Basis

   $ 502.2      $ 361.7      $ 85.2      $ 0.4      $ 112.7    $ 256.4    $ 2.64
                                                    
     Six Months Ended June 30, 2009
     Cost of
Goods
Sold
    Marketing,
Selling and
Administrative
Expense
    Research &
Development
Expense
    Other
(Income)
Expense, Net
    Income
Taxes
   Net
Income
Attributable
to Common
Shareholders
   Diluted
Earnings

per Share
Available

to Common
Shareholders

GAAP Basis

   $ 462.9      $ 334.2      $ 78.1      $ 16.9      $ 97.3    $ 224.7    $ 2.22
Items that affect comparability of results between periods:                 

Asset disposition

     (1.2     -          -          (4.5     0.5      5.2   

Acquisition related items

     (0.1     (0.8     (2.3     -          0.1      3.1   

Restructuring charge

     -          -          -          (15.4     5.2      10.2   
                                                    

Total

     (1.3     (0.8     (2.3     (19.9     5.8      18.5      0.18
                                                    

Adjusted Basis

   $ 461.6      $ 333.4      $ 75.8      $ (3.0   $ 103.1    $ 243.2    $ 2.40
                                                    


Notes to Reconciliation of Earnings

 

 

 

   

For the second quarter 2010, the following items affected the comparability of results between periods: (i) charges of $6.4 million pre-tax for acquisition related items including purchased research and development, transaction costs, which consisted primarily of legal and valuation costs, purchase accounting adjustments and integration costs; and (ii) a charge of $3.8 million pre-tax for the write-down of public hospital receivables in Greece. The net effect of these items decreased net income attributable to common shareholders by $9.4 million, or $0.10 diluted earnings per share available to common shareholders.

 

   

For the second quarter 2009, the following items affected the comparability of results between periods: (i) a charge of $5.7 million pre-tax for an asset disposition; (ii) charges of $3.2 million pre-tax for acquisition related items including purchased research and development, transaction costs, which consisted primarily of legal and valuation costs, and purchase accounting adjustments; and (iii) a charge of $5.6 million pre-tax for restructuring. The net effect of these items decreased net income attributable to common shareholders by $12.0 million, or $0.12 diluted earnings per share available to common shareholders.

 

   

For the six months ended June 30, 2010 the following items affected the comparability of results between periods: (i) charges of $8.0 million pre-tax for acquisition related items including purchased research and development, transaction costs, which consisted primarily of legal and valuation costs, purchase accounting adjustments and integration costs; and (ii) a charge of $3.8 million pre-tax for the write-down of public hospital receivables in Greece. The net effect of these items decreased net income attributable to common shareholders by $10.9 million, or $0.11 diluted earnings per share available to common shareholders.

 

   

For the six months ended June 30, 2009, the following items affected the comparability of results between periods: (i) a charge of $5.7 million pre-tax for an asset disposition; (ii) charges of $3.2 million pre-tax for acquisition related items including purchased research and development, transaction costs, which consisted primarily of legal and valuation costs, and purchase accounting adjustments; and (iii) a charge of $15.4 million pre-tax for restructuring. The net effect of these items decreased net income attributable to common shareholders by $18.5 million, or $0.18 diluted earnings per share available to common shareholders.

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 charges for an asset disposition and acquisition related items; (2) marketing, selling and administrative expense excluding charges for acquisition related items and the write-down of public hospital receivables in Greece; (3) research and development expense excluding acquisition related items; (4) other (income) expense, net, excluding charges for an asset disposition, acquisition related items and restructuring; (5) income tax provision excluding the tax effect of the items set forth in (1) through (4) above; (6) net income attributable to common shareholders excluding the items set forth in (1) through (5) above; and (7) diluted earnings per share available to common shareholders excluding the items set forth in (1) through (5) 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.


Notes to Earnings per Share

(dollars and shares in thousands, except per share amounts, unaudited)

 

 

 

     Quarter Ended
June 30,
   Six Months Ended
June 30,
     2010    2009    2010    2009

Earnings per Share Numerator (1): GAAP Basis - basic and diluted

           

Net income attributable to common shareholders

   $ 124,600    $ 112,200    $ 245,500    $ 224,700

Less: Income allocated to participating securities

     1,400      1,200      2,800      2,500
                           

Net income available to common shareholders

   $ 123,200    $ 111,000    $ 242,700    $ 222,200
                           

Earnings per Share Numerator (1): Adjusted Basis - diluted

           

Net income attributable to common shareholders

   $ 134,000    $ 124,200    $ 256,400    $ 243,200

Less: Income allocated to participating securities

     1,500      1,300      2,900      2,800
                           

Net income available to common shareholders

   $ 132,500    $ 122,900    $ 253,500    $ 240,400
                           

Earnings per Share Denominator:

           

Wt. avg. common shares outstanding - basic

     94,400      98,500      94,900      98,900

Wt. avg. common and common equivalent shares outstanding - diluted

     95,600      99,600      96,100      100,300

Earnings per Share: GAAP Basis

           

Basic earnings per share available to common shareholders

   $ 1.31    $ 1.13    $ 2.56    $ 2.25
                           

Diluted earnings per share available to common shareholders

   $ 1.29    $ 1.11    $ 2.53    $ 2.22
                           

Earnings per Share: Adjusted Basis

           

Diluted earnings per share available to common shareholders

   $ 1.39    $ 1.23    $ 2.64    $ 2.40
                           

 

(1) Basic and diluted earnings per share available to common shareholders is calculated using a numerator, which represents the total of net income attributable to common shareholders less income allocated to participating securities.