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Bard Announces Third Quarter Results Diluted EPS of $1.34, $1.43 on Adjusted Basis

^{Published on 2010-10-21 13:15:57 - Market Wire}
 

MURRAY HILL, N.J.--([ BUSINESS WIRE ])--C. R. Bard, Inc. (NYSE: BCR) today reported 2010 third quarter financial results. Third quarter 2010 net sales were $678.4 million, an increase of 6percent over the prior-year period. Excluding the impact of foreign exchange, third quarter 2010 net sales increased 8 percent over the prior-year period.

For the third quarter 2010, net sales in the U.S. were $479.3 million and net sales outside the U.S. were $199.1 million, an increase of 8 percent and 2 percent, respectively, over the prior-year period. Excluding the impact of foreign exchange, third quarter 2010 net sales outside the U.S. increased 7 percent over the prior-year period.

For the third quarter 2010, net income attributable to common shareholders was $127.5 million and diluted earnings per share available to common shareholders were $1.34, a decrease of 2 percent and an increase of 2 percent, respectively, as compared to third quarter 2009 results. Adjusting for items that affect comparability between periods as detailed in the tables below, third quarter 2010 net income attributable to common shareholders was $135.9 million and diluted earnings per share available to common shareholders were $1.43, an increase of 5 percent and 9 percent, respectively, as compared to third quarter 2009 results.

Timothy M. Ring, chairman and chief executive officer, commented, aWe are pleased to report solid revenue growth again this quarter. With gross margin at a record level, we were able to deliver strong EPS performance while continuing to increase our investment in R&D. We remain focused on improving our growth profile through the execution of our expanded product development and acquisition strategy.a

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 managementa™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 aanticipatea, aestimatea, aexpecta, aprojecta, aintenda, aforecasta, aplana, abelievea, 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, 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.

Notes to Reconciliation of Earnings

• For the third quarter 2010, the following items affected the comparability of results between periods: (i) charges of $10.2 million pre-tax for acquisition related items including transaction costs, which consisted primarily of legal and valuation costs, purchase accounting adjustments and integration costs; and (ii) a net increase of $1.4 million in the income tax provision, including an increase of $5.6 million due to a planned cash repatriation of certain foreign earnings as a result of new tax legislation, partially offset by a decrease of $4.2 million due to a remeasurement of certain tax positions related to the IRS examinations of the tax years 2003 and 2004. The net effect of these items decreased net income attributable to common shareholders by $8.4 million, or $0.09 diluted earnings per share available to common shareholders.
• For the third quarter 2009, there were no items that affected the comparability of results between periods.
• For the nine months ended September 30, 2010 the following items affected the comparability of results between periods: (i) charges of $18.2 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; (ii) a charge of $3.8 million pre-tax for the write-down of public hospital receivables in Greece and (iii) a net increase of $1.4 million in the income tax provision, including an increase of $5.6 million due to a planned cash repatriation of certain foreign earnings as a result of new tax legislation, partially offset by a decrease of $4.2 million due to a remeasurement of certain tax positions related to the IRS examinations of the tax years 2003 and 2004. The net effect of these items decreased net income attributable to common shareholders by $19.3 million, or $0.20 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 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 companya™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 an increase resulting from a planned cash repatriation of certain foreign earnings, a decrease due to a remeasurement of certain tax positions 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 companya™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 investorsa™ understanding of the companya™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 companya™s actual performance in relation to its business plan and operating budgets; (3) to evaluate the companya™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.