Bard Announces Third Quarter Results
More News related to BCR
- Morgan Keegan Starts BDX, HAE, BCR, MASI, COO at Outperform, BAX, HRC, COV, TFX, ISRG at Market Perform
- Bard to Host December 2009 Investor Conference
- CR Bard (BCR) Tops Q3 EPS by 3c
- Bard Announces Third Quarter Results
- Barclays Starts Stocks in Medical Equipment Group: EW, COV, MDT, ZMH at Overweight, SYK, BCR at Underweight
More News related to Press Releases
- Unusual 11 Mid-Day Movers 11/30: SOMX, CLWT, KBX, CSGS Higher; AIG, BGP, BONT, HEB Lower
- Notable ETF Movers: SLX, EWJ, USO Higher; UNG, XRT Lower
- Best of the Web 11/30: Some Banks So Bad Buyers Won't Touch 'Em, Risky Bets Hurt Harvard, Eurozone Inflation Turns Positive
- Notable Analyst Rating Changes for 11/30: X, DE, AFL, AEO Upgraded; BIDU, SWY, BKC, SVU Downgraded
- Morning Movers 11/30: PEIX, CLRT, PROV, SOMX, OTIV Higher; HPOL, MELA Lower
Diluted EPS of $1.31
MURRAY HILL, N.J.--(BUSINESS WIRE)-- C. R. Bard, Inc. (NYSE: BCR) today reported 2009 third quarter financial results. Third quarter 2009 net sales were $637.0 million, an increase of 3 percent over the prior-year period. Excluding the impact of foreign exchange, third quarter 2009 net sales increased 6 percent over the prior-year period.
For the third quarter 2009, net sales in the U.S. were $442.6 million and net sales outside the U.S. were $194.4 million, an increase of 6 percent and a decrease of 1 percent, respectively, over the prior-year period. Excluding the impact of foreign exchange, third quarter 2009 net sales outside the U.S. increased 7 percent over the prior-year period.
For the third quarter 2009, net income attributable to common shareholders was $129.5 million and diluted earnings per share available to common shareholders were $1.31, an increase of 16 percent and 21 percent, respectively, as compared to third quarter 2008 results. Adjusting for items that affect comparability between periods as detailed in the tables below, third quarter 2009 net income attributable to common shareholders and diluted earnings per share available to common shareholders increased 15 percent and 20 percent, respectively, as compared to third quarter 2008 results.
Timothy M. Ring, chairman and chief executive officer, commented, "Bard delivered another quarter of strong EPS performance while funding a record level of organic investment in R&D. We remain focused on the future through the development and acquisition of products that are differentiated by their clinical and economic benefits. We believe that superior technology is key to improving the lives of patients and sustaining a product leadership position in the market."
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 June 30, 2009 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 Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Net sales $ 637,000 $ 616,800 $ 1,858,000 $ 1,817,900
Costs and expenses
Cost of goods sold 240,900 238,600 703,800 706,700
Marketing, selling and 164,300 180,600 498,500 530,300
administrative expense
Research and development 43,000 35,100 121,100 159,100
expense
Interest expense 3,000 3,100 9,000 9,100
Other (income) expense, net 600 (1,900 ) 17,500 26,700
Total costs and expenses 451,800 455,500 1,349,900 1,431,900
Income from operations before 185,200 161,300 508,100 386,000
income taxes
Income tax provision 55,200 49,200 152,500 117,000
Net income 130,000 112,100 355,600 269,000
Net income attributable to 500 900 1,400 1,900
noncontrolling interest
Net income attributable to $ 129,500 $ 111,200 $ 354,200 $ 267,100
common shareholders
Basic earnings per share
available to common $ 1.32 $ 1.10 $ 3.57 $ 2.64
shareholders (1)
Diluted earnings per share
available to common $ 1.31 $ 1.08 $ 3.52 $ 2.59
shareholders (1)
Wt. avg. common shares 97,000 99,300 98,200 99,600
outstanding - basic
Wt. avg. common and common
equivalent shares outstanding 98,100 101,300 99,500 101,700
- diluted
(1) Reflects the retrospective adoption of the FASB Staff Position (the "FSP"), determining whether awards granted in share-based payment transactions are participating securities. See Notes to Earnings per Share included within this press release for additional information.
Product Group Summary of Net Sales
(dollars in thousands, unaudited)
Quarter Ended September 30, Nine Months Ended September 30,
Constant Constant
2009 2008 Change Currency 2009 2008 Change Currency
Vascular $ 173,600 $ 160,600 8% 13% $ 500,100 $ 474,600 5% 12%
Urology 177,500 174,500 2% 4% 515,000 519,600 -1% 2%
Oncology 171,600 169,300 1% 3% 499,800 483,000 3% 6%
Surgical 93,100 90,800 3% 5% 279,100 272,700 2% 6%
Specialties
Other 21,200 21,600 -2% - 64,000 68,000 -6% -2%
Net sales $ 637,000 $ 616,800 3% $ 1,858,000 $ 1,817,900 2%
Foreign
exchange (15,700 ) (67,300 )
impact
Constant $ 637,000 $ 601,100 6% $ 1,858,000 $ 1,750,600 6%
Currency
Reconciliation of Earnings
(dollars in millions except per share amounts, unaudited)
Quarter Ended September 30, 2009
Diluted
Net Earnings
Marketing, Income per Share
Cost of Selling and Research & Other Attributable Available
Goods Administrative Development (Income) Income to Common to Common
Sold Expense Expense Expense, Taxes Shareholders Shareholders
Net (1)
GAAP Basis $ 240.9 $ 164.3 $ 43.0 $ 0.6 $ 55.2 $ 129.5 $ 1.31
Adjusted Basis $ 240.9 $ 164.3 $ 43.0 $ 0.6 $ 55.2 $ 129.5 $ 1.31
Quarter Ended September 30, 2008
Diluted
Net Earnings
Marketing, Income per Share
Cost of Selling and Research & Other Attributable Available
Goods Administrative Development (Income) Income to Common to Common
Sold Expense Expense Expense, Taxes Shareholders Shareholders
Net (1)
GAAP Basis $ 238.6 $ 180.6 $ 35.1 $ (1.9 ) $ 49.2 $ 111.2 $ 1.08
Items that
affect
comparability
of results
between
periods:
Reorganization - - - (1.3 ) 0.5 0.8
costs
Gain on asset - - - 0.7 (0.1 ) (0.6 )
sale
Tax adjustment - - - - (1.0 ) 1.0
Total - - - (0.6 ) (0.6 ) 1.2 0.01
Adjusted Basis $ 238.6 $ 180.6 $ 35.1 $ (2.5 ) $ 48.6 $ 112.4 $ 1.09
Nine Months Ended September 30, 2009
Diluted
Net Earnings
Marketing, Income per Share
Cost of Selling and Research & Other Attributable Available
Goods Administrative Development (Income) Income to Common to Common
Sold Expense Expense Expense, Taxes Shareholders Shareholders
Net (1)
GAAP Basis $ 703.8 $ 498.5 $ 121.1 $ 17.5 $ 152.5 $ 354.2 $ 3.52
Items that
affect
comparability
of results
between
periods:
Asset (1.2 ) - - (4.5 ) 0.5 5.2
disposition
Acquisition
related (0.1 ) (0.8 ) (2.3 ) - 0.1 3.1
adjustments
Restructuring - - - (15.4 ) 5.2 10.2
charge
Total (1.3 ) (0.8 ) (2.3 ) (19.9 ) 5.8 18.5 0.18
Adjusted Basis $ 702.5 $ 497.7 $ 118.8 $ (2.4 ) $ 158.3 $ 372.7 $ 3.70
Nine Months Ended September 30, 2008
Diluted
Net Earnings
Marketing, Income per Share
Cost of Selling and Research & Other Attributable Available
Goods Administrative Development (Income) Income to Common to Common
Sold Expense Expense Expense, Taxes Shareholders Shareholders
Net (1)
GAAP Basis $ 706.7 $ 530.3 $ 159.1 $ 26.7 $ 117.0 $ 267.1 $ 2.59
Items that
affect
comparability
of results
between
periods:
Asset (3.7 ) - - (36.8 ) 5.6 34.9
disposition
Acquisition
related - - (49.3 ) - 18.2 31.1
adjustments
Reorganization - - - (1.3 ) 0.5 0.8
costs
Gain on asset - - - 0.7 (0.1 ) (0.6 )
sale
Tax adjustment - - - - (1.0 ) 1.0
Total (3.7 ) - (49.3 ) (37.4 ) 23.2 67.2 0.65
Adjusted Basis $ 703.0 $ 530.3 $ 109.8 $ (10.7 ) $ 140.2 $ 334.3 $ 3.24
(1) Reflects the retrospective adoption of the FSP. See Notes to Earnings per Share included within this press release for additional information.
Notes to Reconciliation of Earnings
-- For the third quarter 2008, the following items affected the
comparability of results between periods: (i) a charge of $1.3 million
pre-tax for reorganization costs; (ii) a gain of $0.7 million pre-tax
associated with the sale of an asset; and (iii) an increase of $1.0
million in the income tax provision due to a tax-related interest
adjustment. The net effect of these items decreased net income
attributable to common shareholders by $1.2 million, or $0.01 diluted
earnings per share available to common shareholders.
-- For the nine months ended September 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 adjustments including purchased
research and development and other transaction costs consisting
primarily of legal and valuation costs directly related to acquisition
activities; 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.
-- For the nine months ended September 30, 2008, the following items
affected the comparability of results between periods: (i) a charge of
$40.5 million pre-tax for an asset disposition; (ii) a charge of $49.3
million pre-tax for acquisition related adjustments consisting of
purchased research and development; (iii) a charge of $1.3 million
pre-tax for reorganization costs; (iv) a gain of $0.7 million pre-tax
associated with the sale of an asset; and (v) an increase of $1.0
million in the income tax provision due to a tax-related interest
adjustment. The net effect of these items decreased net income
attributable to common shareholders by $67.2 million, or $0.65 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 asset dispositions and acquisition related adjustments; (2) marketing, selling and administrative expenses excluding acquisition related adjustments; (3) research & development expense excluding acquisition related adjustments; (4) other (income) expense, net, excluding charges for asset dispositions, restructuring charge, reorganization costs and a gain on an asset sale; (5) income tax provision excluding an increase related to a tax-related interest adjustment and 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 Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Earnings per Share Numerator (1):
GAAP Basis - basic and diluted
Net income attributable to common $ 129,500 $ 111,200 $ 354,200 $ 267,100
shareholders
Less: Income allocated to 1,300 1,600 3,900 3,700
participating securities
Net income available to common $ 128,200 $ 109,600 $ 350,300 $ 263,400
shareholders
Earnings per Share Numerator (1):
Adjusted Basis - diluted
Net income attributable to common $ 129,500 $ 112,400 $ 372,700 $ 334,300
shareholders
Less: Income allocated to 1,300 1,600 4,100 4,600
participating securities
Net income available to common $ 128,200 $ 110,800 $ 368,600 $ 329,700
shareholders
Earnings per Share Denominator:
Wt. avg. common shares outstanding - 97,000 99,300 98,200 99,600
basic
Wt. avg. common and common
equivalent shares outstanding - 98,100 101,300 99,500 101,700
diluted
Earnings per Share: GAAP Basis
Basic earnings per share available $ 1.32 $ 1.10 $ 3.57 $ 2.64
to common shareholders
Diluted earnings per share available $ 1.31 $ 1.08 $ 3.52 $ 2.59
to common shareholders
Earnings per Share: Adjusted Basis
Diluted earnings per share available $ 1.31 $ 1.09 $ 3.70 $ 3.24
to common shareholders
(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 under the FSP.
Source: C. R. Bard, Inc.
Related Categories
Press ReleasesStocks Mentioned
+0.04Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
