C. R. Bard, Inc. (NYSE: BCR) today reported 2015 first quarter
financial results. First quarter 2015 net sales were $819.7
million, an increase of 3 percent over the prior-year period
on an as-reported basis. Excluding the impact of foreign exchange,
first quarter 2015 net sales increased 5 percent over the
prior-year period.
For the first quarter 2015, net sales in the U.S. were $574.1
million, an increase of 4 percent over the prior-year period. Net
sales outside the U.S. were $245.6 million, a decline of 1 percent
over the prior-year period on an as-reported basis. Excluding the
impact of foreign exchange, first quarter 2015 net sales outside
the U.S. increased 8 percent over the prior-year period.
For the first quarter 2015, net income was $139.8 million and
diluted earnings per share were $1.82, a decrease of 6 percent and
2 percent, respectively, as compared to first quarter 2014 results.
Adjusting for certain items that affect comparability between
periods as detailed in the tables below, first quarter 2015 net
income was $142.4 million and diluted earnings per share, after
adjusting for certain items that affect comparability between
periods and excluding amortization of intangible assets, were
$2.10, an increase of 6 percent and 10 percent, respectively, as
compared to first quarter 2014 results.
Timothy M. Ring, chairman and chief executive officer,
commented, “Our results in the first quarter represented a good
start to what is an important year of execution for us, as we once
again exceeded our expectations for both sales and earnings per
share. In 2015, we expect the returns from our strategic investment
plan to begin to contribute to the improved long-term growth
profile of the business.”
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, 2014 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,
2015
2014
Net sales $ 819,700 $ 799,300 Costs and expenses
Cost of goods sold
311,200 309,500
Marketing, selling and administrative
expense
235,700 236,800
Research and development expense
60,600 64,300
Interest expense
11,300 11,100
Other (income) expense, net
16,300 (6,000 ) Total costs and expenses
635,100 615,700 Income from operations before
income taxes 184,600 183,600
Income tax provision
44,800 35,200 Net income $ 139,800 $
148,400 Basic earnings per share available to common
shareholders $ 1.85 $ 1.89 Diluted earnings per share
available to common shareholders $ 1.82 $ 1.86 Wt.
avg. common shares outstanding - basic 74,400 77,000 Wt.
avg. common and common equivalent shares outstanding - diluted
75,800 78,500
Product Group Summary of Net Sales (dollars in thousands,
unaudited) Quarter Ended March 31, Constant 2015 2014
Change Currency Vascular $ 231,900 $ 219,200 6% 10% Urology 205,600
201,400 2% 5% Oncology 224,600 219,000 3% 5% Surgical Specialties
135,900 135,200 1% 3% Other 21,700 24,500 -11% -9%
Net sales $ 819,700 $ 799,300 3% Foreign exchange
impact (20,400) Constant Currency $ 819,700 $ 778,900
5%
Non-GAAP Reconciliation of Earnings (dollars in millions
except per share amounts, unaudited) Quarter Ended March 31,
2015 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 $ 311.2 $ 235.7 $ 60.6
$ 16.3 $ 44.8 $ 139.8 $ 1.82
Items that affect
comparability of
results between
periods:
Acquisition-related items 9.9 (0.2 ) - (0.5 ) 0.2 (9.4 ) Litigation
charges - - - (10.3 ) 0.9 9.4 Restructuring and productivity
initiative costs - - -
(3.9 ) 1.3 2.6 Total 9.9
(0.2 ) - (14.7 ) 2.4 2.6 0.03
Adjusted Basis $ 321.1 $ 235.5 $ 60.6 $
1.6 $ 47.2 $ 142.4 Amortization of intangible
assets $ 28.9 $ 9.7 $ 19.2 0.25 Adjusted
Earnings $ 161.6 $ 2.10 Quarter Ended March
31, 2014 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 $ 309.5 $ 236.8 $ 64.3
$ (6.0 ) $ 35.2 $ 148.4 $ 1.86
Items that affect
comparability of
results between
periods:
Acquisition-related items (0.6 ) (0.1 ) (0.4 ) (2.0 ) 0.8 2.3 Gain
on sale of investment - - - 7.1 (2.2 ) (4.9 ) Tax item -
- - - 10.9
(10.9 ) Total (0.6 ) (0.1 ) (0.4 ) 5.1 9.5
(13.5 ) (0.17 ) Adjusted
Basis $ 308.9 $ 236.7 $ 63.9 $ (0.9 ) $ 44.7
$ 134.9 Amortization of intangible assets $ 26.6 $
8.9 $ 17.7 0.22 Adjusted Earnings $ 152.6
$ 1.91
Notes to Non-GAAP Reconciliation of
Earnings
• For the three months ended March 31, 2015, the following
items affected the comparability of results between periods: (i) a
net benefit of $9.2 million pre-tax from acquisition-related items
including transaction costs, purchase accounting adjustments and
integration costs; (ii) litigation charges of $10.3 million pre-tax
for litigation-related defense costs in connection with the
District Court’s pre-trial orders that the company prepare 500
individual cases for trial (the “WHP Pre-Trial Orders”) and other
litigation-related matters; and (iii) charges of $3.9 million
pre-tax for restructuring and productivity initiatives. The net
effect of these items decreased net income by $2.6 million, or
$0.03 diluted earnings per share available to common shareholders.
Amortization of intangible assets was $28.9 million pre-tax, which
decreased net income on an adjusted basis by $19.2 million, or
$0.25 diluted earnings per share available to common shareholders.
• For the three months ended March 31, 2014, the following
items affected the comparability of results between periods: (i)
charges of $3.1 million pre-tax for acquisition-related items
including transaction costs, purchase accounting adjustments and
integration costs; (ii) a gain of $7.1 million pre-tax related to
the sale of an equity investment; and (iii) a decrease of $10.9
million in the income tax provision associated with the completion
of IRS examinations for the tax years 2008 through 2010. The net
effect of these items increased net income by $13.5 million, or
$0.17 diluted earnings per share available to common shareholders.
Amortization of intangible assets was $26.6 million pre-tax, which
decreased net income on an adjusted basis by $17.7 million, or
$0.22 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 the
impact of 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 acquisition-related items, litigation charges (which
includes litigation-related defense costs in connection with the
WHP Pre-Trial Orders) and other litigation-related matters, gain on
sale of investment, restructuring and productivity initiative
costs; (5) income tax provision excluding a decrease associated
with the completion of IRS examinations and 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 common shareholders excluding the
items set forth in (1) through (5) above and amortization of
intangible assets. 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 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, 2015 2014 Earnings per Share
Numerator: GAAP Basis - basic and diluted Net income $ 139,800 $
148,400 Less: Income allocated to participating securities (1)
2,100 2,500 Net income available to common
shareholders $ 137,700 $ 145,900 Earnings per Share
Numerator: Adjusted Earnings Net income $ 161,600 $ 152,600 Less:
Income allocated to participating securities (1) 2,400
2,500 Net income available to common shareholders $ 159,200
$ 150,100 Earnings per Share Denominator: Wt. avg. common
shares outstanding - basic 74,400 77,000 Wt. avg. common and
common equivalent shares outstanding - diluted 75,800 78,500
Earnings per Share: GAAP Basis Basic earnings per share available
to common shareholders $ 1.85 $ 1.89 Diluted earnings per
share available to common shareholders $ 1.82 $ 1.86
Earnings per Share: Adjusted Earnings Diluted earnings per share
available to common shareholders $ 2.10 $ 1.91 (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.
C. R. Bard, Inc.Investor Relations:Todd W.
Garner, 908-277-8065Vice President, Investor
RelationsorMedia Relations:Scott T. Lowry,
908-277-8365Vice President and Treasurer
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