Bard Announces First Quarter Results

C. R. Bard, Inc. (NYSE: BCR) today reported 2012 first quarter financial results. First quarter 2012 net sales were $730.0 million, an increase of 4 percent over the prior-year period on a reported basis. Excluding the impact of foreign exchange, first quarter 2012 net sales increased 5 percent over the prior-year period.

For the first quarter 2012, net sales in the U.S. were $496.2 million, an increase of 2 percent over the prior-year period. Net sales outside the U.S. were $233.8 million, an increase of 10 percent over the prior-year period on a reported basis. Excluding the impact of foreign exchange, first quarter 2012 net sales outside the U.S. increased 11 percent over the prior-year period.

For the first quarter 2012, net income was $138.7 million and diluted earnings per share available to common shareholders were $1.60, an increase of 5 percent and 7 percent, respectively, as compared to first quarter 2011 results. Adjusting for items that affect comparability between periods as detailed in the tables below, first quarter 2012 net income was $139.5 million and diluted earnings per share available to common shareholders were $1.61, an increase of 4 percent and 7 percent, respectively, as compared to first quarter 2011 results.

Timothy M. Ring, chairman and chief executive officer, commented, “The results this quarter reflect a good start to the year. While we haven’t seen much change in the U.S. environment, our increased focus and investments in international markets have provided rapid returns and strengthened our growth profile. We remain focused on daily execution of our product leadership strategy to take advantage of current opportunities while positioning ourselves for stronger growth in the future.”

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 December 31, 2011 Form 10-K 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
March 31,

2012

2011

Net sales $ 730,000 $ 700,300
Costs and expenses
Cost of goods sold 279,400 264,800
Marketing, selling and administrative expense 202,300 194,300
Research and development expense 48,200 48,000
Interest expense 9,500 9,100
Other (income) expense, net (800 ) 100
Total costs and expenses 538,600 516,300
Income from operations before income taxes 191,400 184,000
Income tax provision 52,700 52,100
Net income $ 138,700 $ 131,900
Basic earnings per share available to common shareholders $ 1.62 $ 1.52
Diluted earnings per share available to common shareholders $ 1.60 $ 1.49
Wt. avg. common shares outstanding - basic 84,100 85,300
Wt. avg. common and common equivalent shares outstanding - diluted 85,100 87,000
Product Group Summary of Net Sales
(dollars in thousands, unaudited)
Quarter Ended March 31,
Constant
2012 2011 Change Currency
Vascular $ 209,200 $ 198,300 5 % 6 %
Urology 185,100 179,500 3 % 3 %
Oncology 198,900 186,400 7 % 7 %
Surgical Specialties 114,700 114,900 - -
Other 22,100 21,200 4 % 5 %
Net sales $ 730,000 $ 700,300 4 %
Foreign exchange impact (2,300 )
Constant Currency $ 730,000 $ 698,000 5 %
Reconciliation of Earnings
(dollars in millions except per share amounts, unaudited)
Quarter Ended March 31, 2012
Diluted
Earnings
Marketing, per Share
Cost of Selling and Research & Other Available
Goods Administrative Development (Income) Income Net to Common
Sold Expense Expense Expense, Net Taxes Income Shareholders
GAAP Basis $ 279.4 $ 202.3 $ 48.2 $ (0.8 ) $ 52.7 $ 138.7 $ 1.60

Items that affect comparability of results between periods:

Acquisition related items - - (0.4 ) (0.6 ) 0.2 0.8 0.01
Adjusted Basis $ 279.4 $ 202.3 $ 47.8 $ (1.4 ) $ 52.9 $ 139.5 $ 1.61
Quarter Ended March 31, 2011
Diluted
Earnings
Marketing, per Share
Cost of Selling and Research & Other Available
Goods Administrative Development (Income) Income Net to Common
Sold Expense Expense Expense, Net Taxes Income Shareholders
GAAP Basis $ 264.8 $ 194.3 $ 48.0 $ 0.1 $ 52.1 $ 131.9 $ 1.49

Items that affect comparability of results between periods:

Acquisition related items 0.6 (0.2 ) (3.0 ) (0.2 ) 1.0 1.8 0.02
Adjusted Basis $ 265.4 $ 194.1 $ 45.0 $ (0.1 ) $ 53.1 $ 133.7 $ 1.51

Notes to Reconciliation of Earnings

  • For the three months ended March 31, 2012, a charge of $1.0 million pre-tax for acquisition-related items including transaction costs, purchase accounting adjustments and integration costs, affected the comparability of results between periods. The effect of this charge decreased net income by $0.8 million, or $0.01 diluted earnings per share available to common shareholders.
  • For the three months ended March 31, 2011, a charge of $2.8 million pre-tax for acquisition-related items including purchased research and development, transaction costs, purchase accounting adjustments and integration costs, affected the comparability of results between periods. The effect of this charge decreased net income by $1.8 million, or $0.02 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 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 acquisition-related items; (2) marketing, selling and administrative expense excluding charges for acquisition-related items; (3) research and development expense excluding charges for acquisition-related items; (4) other (income) expense, net, excluding charges for acquisition-related items; (5) income tax provision excluding the tax effect of the items set forth in (1) through (4) above; (6) net income excluding the items set forth in (1) through (5) above; and (7) diluted earnings per share available to commons 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 operations 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 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 information. Management compensates for these limitations by providing full disclosure of each non-GAAP measure and a reconciliation to the most directly comparable GAAP measure. All non-GAAP 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
March 31,
2012 2011
Earnings per Share Numerator (1): GAAP Basis - basic and diluted
Net income $ 138,700 $ 131,900
Less: Income allocated to participating securities 2,700 2,600
Net income available to common shareholders $ 136,000 $ 129,300
Earnings per Share Numerator (1): Adjusted Basis - diluted
Net income $ 139,500 $ 133,700
Less: Income allocated to participating securities 2,700 2,600
Net income available to common shareholders $ 136,800 $ 131,100
Earnings per Share Denominator:
Wt. avg. common shares outstanding - basic 84,100 85,300
Wt. avg. common and common equivalent shares outstanding - diluted 85,100 87,000
Earnings per Share: GAAP Basis
Basic earnings per share available to common shareholders $ 1.62 $ 1.52
Diluted earnings per share available to common shareholders $ 1.60 $ 1.49
Earnings per Share: Adjusted Basis
Diluted earnings per share available to common shareholders $ 1.61 $ 1.51
(1) Basic and diluted earnings per share available to common shareholders is calculated using a numerator, which represents the total of net income less income allocated to participating securities.

Contacts:

C. R. Bard, Inc.
Investor Relations: Todd W. Garner
Vice President, Investor Relations
908-277-8065
or
Media Relations: Scott T. Lowry
Vice President and Treasurer
908-277-8365
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