C. R. Bard, Inc. (NYSE:BCR) today reported 2015 fourth quarter
financial results. Fourth quarter 2015 net sales were $870.8
million, compared to fourth quarter 2014 net sales of $867.2
million on an as-reported basis. Excluding the impact of foreign
exchange, fourth quarter 2015 net sales increased 3 percent over
the prior-year period.
For the fourth quarter 2015, net sales in the U.S. were $605.8
million and net sales outside the U.S. were $265.0 million, an
increase of 2 percent and a decrease of 4 percent, respectively,
over the prior-year period. Excluding the impact of foreign
exchange, fourth quarter 2015 net sales outside the U.S. increased
5 percent over the prior-year period.
Net sales for the full year 2015 were $3,416.0 million, an
increase of 3 percent over the prior-year period on an as-reported
basis. Excluding the impact of foreign exchange, full year 2015 net
sales increased 6 percent over the prior-year period.
For the fourth quarter 2015, net income was $136.3 million and
diluted earnings per share were $1.79. Adjusting for certain items
that affect comparability between periods as detailed in the tables
below, fourth quarter 2015 net income was $164.6 million and
diluted earnings per share, after adjusting for certain items that
affect comparability between periods and excluding amortization of
intangibles, were $2.43, an increase of 4 percent and 6 percent,
respectively, as compared to fourth quarter 2014 results.
For the full year 2015, net income was $135.4 million and
diluted earnings per share were $1.77. Adjusting for certain items
that affect comparability between periods, full year 2015 net
income was $615.8 million and diluted earnings per share, after
adjusting for certain items that affect comparability between
periods and excluding amortization of intangibles, were $9.08, an
increase of 5 percent and 8 percent, respectively, as compared to
full year 2014 results.
Timothy M. Ring, chairman and chief executive officer,
commented, “We said a year ago that 2015 was an important year of
execution for our strategic investment plan, and we are happy to
report that we exceeded expectations for both revenue and adjusted
cash earnings per share for every quarter in 2015. We are pleased
with the acceleration in our organic revenue growth and
profitability; and we remain focused on investing in areas of
faster growth with the objective of providing our shareholders with
sustainable attractive returns.”
In conjunction with the fourth quarter results, the company is
also providing 2016 financial guidance. For the full year 2016, net
sales are forecasted to increase between 4.5 percent and 6.5
percent on an as-reported basis. Excluding the impact of foreign
exchange, full year 2016 net sales are forecasted to increase
between 6 percent and 8 percent over 2015. Full year 2016 diluted
earnings per share, after adjusting for certain items that affect
comparability between periods and excluding amortization of
intangibles, are projected to be between $9.90 and $10.05,
representing reported growth between 9 percent and 11 percent
compared to full year 2015 results.
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”, “objective” 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 September 30, 2015 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
Twelve Months Ended December 31, December 31,
2015
2014
2015
2014
Net sales $ 870,800 $ 867,200 $ 3,416,000 $ 3,323,600 Costs
and expenses Cost of goods sold 320,000 319,500 1,301,200 1,258,600
Marketing, selling and administrative expense 279,300 257,500
1,012,100 981,500 Research and development expense 69,400 79,200
259,200 302,000 Interest expense 11,200 11,200 44,900 44,800 Other
(income) expense, net 32,900 25,100 449,200
290,900 Total costs and expenses 712,800
692,500 3,066,600 2,877,800 Income from
operations before income taxes 158,000 174,700
349,400 445,800 Income tax provision 21,700
40,500 214,000 151,300 Net income $
136,300 $ 134,200 $ 135,400 $ 294,500 Basic earnings per
share available to common shareholders $ 1.82 $ 1.76 $ 1.80 $ 3.83
Diluted earnings per share available to common shareholders
$ 1.79 $ 1.72 $ 1.77 $ 3.76 Wt. avg. common shares
outstanding - basic 73,900 75,100 74,100 75,600 Wt. avg.
common and common equivalent shares outstanding - diluted 75,200
76,600 75,400 77,100
Product Group Summary of Net
Sales (dollars in thousands, unaudited)
Quarter Ended December 31, Twelve Months Ended December 31,
Constant Constant 2015 2014 Change Currency 2015 2014 Change
Currency Vascular $ 239,300 $ 244,600 -2 % 1 % $ 970,300 $ 928,300
5 % 9 % Urology 217,900 217,800 - 3 % 845,000 835,900 1 % 4 %
Oncology 237,800 237,500 - 3 % 936,900 910,900 3 % 6 % Surgical
Specialties 152,800 145,000 5 % 8 % 572,300 555,100 3 % 6 % Other
23,000 22,300 3 % 5 % 91,500
93,400 -2 % - Net sales $ 870,800 $ 867,200 -
$ 3,416,000 $ 3,323,600 3 % Foreign exchange impact
(24,400 ) (103,100 ) Constant Currency
$ 870,800 $ 842,800 3 % $ 3,416,000 $ 3,220,500 6 %
Non-GAAP Reconciliation of Earnings (dollars
in millions except per share amounts, unaudited)
Quarter Ended
December 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 $ 320.0 $
279.3 $ 69.4 $ 32.9 $ 21.7 $ 136.3 $ 1.79
Items that affect
comparability of
results between
periods:
Acquisition-related items (2.4 ) (8.0 ) (0.1 ) (23.4 ) 19.3 14.6
Asset impairment - - (4.5 ) - 1.7 2.8 Restructuring and
productivity initiative costs - -
- (14.5 ) 3.6 10.9
Total (2.4 ) (8.0 ) (4.6 ) (37.9 ) 24.6 28.3 0.37
Adjusted Basis $ 317.6 $
271.3 $ 64.8 $ (5.0 ) $ 46.3 $ 164.6
Amortization of intangible assets $ 30.9 $ 10.4 $ 20.5
0.27 Adjusted Earnings $ 185.1 $ 2.43 Quarter
Ended December 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 $
319.5 $ 257.5 $ 79.2 $ 25.1 $ 40.5 $ 134.2 $ 1.72
Items that affect
comparability of
results between
periods:
Acquisition-related items 0.3 - (7.7 ) (0.1 ) (0.1 ) 7.6 Medical
device excise tax - 3.5 - - (1.2 ) (2.3 ) Litigation charges - - -
(12.7 ) 0.2 12.5 Restructuring and productivity initiative costs
- - - (10.1 )
3.2 6.9 Total 0.3 3.5 (7.7 )
(22.9 ) 2.1 24.7 0.32
Adjusted Basis $ 319.8 $ 261.0 $ 71.5 $ 2.2
$ 42.6 $ 158.9 Amortization of intangible
assets $ 29.1 $ 9.8 $ 19.3 0.25 Adjusted Earnings $
178.2 $ 2.29 Twelve Months Ended December 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(1) GAAP Basis $ 1,301.2 $
1,012.1 $ 259.2 $ 449.2 $ 214.0 $ 135.4 $ 1.77
Items that affect
comparability of
results between
periods:
Acquisition-related items 4.6 (10.0 ) (1.6 ) (24.7 ) 20.6 11.1
Asset impairment - - (4.5 ) - 1.7 2.8 Litigation charges, net - - -
(595.1 ) 26.3 568.8 Gore proceeds - - - 210.5 (78.8 ) (131.7 )
Restructuring and productivity initiative costs -
- - (41.5 ) 12.1
29.4 Total 4.6 (10.0 ) (6.1 ) (450.8 ) (18.1 )
480.4 6.28 Adjusted Basis
$ 1,305.8 $ 1,002.1 $ 253.1 $ (1.6 ) $ 195.9
$ 615.8 Amortization of intangible assets $ 119.5 $
40.2 $ 79.3 1.04 Adjusted Earnings $ 695.1 $
9.08 Twelve Months Ended December 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 $ 1,258.6 $ 981.5 $ 302.0 $ 290.9 $
151.3 $ 294.5 $ 3.76
Items that affect
comparability of
results between
periods:
Acquisition-related items 1.4 (0.7 ) (30.3 ) (2.3 ) 1.4 30.5
Medical device excise tax - 3.5 - - (1.2 ) (2.3 ) Asset impairment
- - (6.2 ) - 2.3 3.9 Litigation charges, net - - - (288.6 ) 21.4
267.2 Restructuring and productivity initiative costs - - - (11.8 )
3.8 8.0 Gain on sale of investment - - - 7.1 (2.2 ) (4.9 ) Tax item
- - - -
10.9 (10.9 ) Total 1.4 2.8 (36.5 )
(295.6 ) 36.4 291.5 3.72
Adjusted Basis $ 1,260.0 $ 984.3 $ 265.5 $
(4.7 ) $ 187.7 $ 586.0 Amortization of intangible
assets $ 108.8 $ 36.4 $ 72.4 0.92 Adjusted Earnings $
658.4 $ 8.40 (1) Total per share amounts do not add
due to rounding.
Notes to Non-GAAP
Reconciliation of Earnings
- For the fourth quarter 2015, the
following items affected the comparability of results between
periods: (i) charges of $33.9 million pre-tax for
acquisition-related items including transaction costs, purchase
accounting adjustments and integration costs; (ii) a charge of $4.5
million pre-tax related to an asset impairment; and (iii) charges
of $14.5 million pre-tax for restructuring and productivity
initiatives. The net effect of these items decreased net income by
$28.3 million, or $0.37 diluted earnings per share available to
common shareholders. Amortization of intangible assets was $30.9
million pre-tax, which decreased net income on an adjusted basis by
$20.5 million, or $0.27 diluted earnings per share available to
common shareholders.
- For the fourth quarter 2014, the
following items affected the comparability of results between
periods: (i) net charges of $7.5 million pre-tax for
acquisition-related items including purchased research and
development, transaction costs, purchase accounting adjustments and
integration costs; (ii) a credit of $3.5 million pre-tax related to
the excise tax paid on U.S. medical device sales in 2013 associated
with an agreement reached with the IRS during 2014; (iii) charges
of $12.7 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 (iv) charges of $10.1 million pre-tax for
restructuring and productivity initiatives. The net effect of these
items decreased net income by $24.7 million, or $0.32 diluted
earnings per share available to common shareholders. Amortization
of intangible assets was $29.1 million pre-tax, which decreased net
income on an adjusted basis by $19.3 million, or $0.25 diluted
earnings per share available to common shareholders.
- For the twelve months ended December
31, 2015, the following items affected the comparability of results
between periods: (i) net charges of $31.7 million pre-tax for
acquisition-related items including transaction costs, purchase
accounting adjustments and integration costs; (ii) a charge of $4.5
million pre-tax related to an asset impairment; (iii) charges of
$595.1 million pre-tax related to estimated costs for product
liability matters (net of recoveries), which includes $15.1 million
of litigation-related defense costs in connection with the WHP
Pre-Trial Orders and other litigation-related charges; (iv) a gain
of $210.5 million pre-tax related to a patent infringement
litigation against W.L. Gore & Associates, Inc. (“Gore”); and
(v) charges of $41.5 million pre-tax for restructuring and
productivity initiatives. The net effect of these items decreased
net income by $480.4 million, or $6.28 diluted earnings per share
available to common shareholders. Amortization of intangible assets
was $119.5 million pre-tax, which decreased net income on an
adjusted basis by $79.3 million, or $1.04 diluted earnings per
share available to common shareholders.
- For the twelve months ended December
31, 2014, the following items affected the comparability of results
between periods: (i) net charges of $31.9 million pre-tax for
acquisition-related items including purchased research and
development, transaction costs, purchase accounting adjustments and
integration costs; (ii) a credit of $3.5 million pre-tax related to
the excise tax paid on U.S. medical device sales in 2013 associated
with an agreement reached with the IRS during 2014; (iii) a charge
of $6.2 million pre-tax related to an asset impairment; (iv)
charges of $288.6 million pre-tax related to estimated costs for
product liability matters, net of recoveries, which includes $30.1
million of litigation-related defense costs in connection with the
WHP Pre-Trial Orders; (v) charges of $11.8 million pre-tax for
restructuring and productivity initiatives; (vi) a gain of $7.1
million pre-tax related to the sale of an equity investment; and
(vii) 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 decreased
net income by $291.5 million, or $3.72 diluted earnings per share
available to common shareholders. Amortization of intangible assets
was $108.8 million pre-tax, which decreased net income on an
adjusted basis by $72.4 million, or $0.92 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 and a credit related to the excise tax paid on U.S. medical
device sales in 2013 associated with an agreement reached with the
IRS during 2014; (3) research and development expense excluding
charges for acquisition-related items and asset impairments; (4)
other (income) expense, net, excluding acquisition-related items,
litigation charges, net of recoveries (which includes
litigation-related defense costs in connection with the WHP
Pre-Trial Orders) and other litigation-related charges, Gore
proceeds, restructuring and productivity initiative costs, and gain
on sale of investment; (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 Twelve Months Ended December 31, December 31, 2015 2014 2015
2014 Earnings per Share Numerator: GAAP Basis - basic and diluted
Net income $ 136,300 $ 134,200 $ 135,400 $ 294,500 Less: Income
allocated to participating securities (1) 1,900 2,200
1,900 4,800 Net income available to common
shareholders $ 134,400 $ 132,000 $ 133,500 $ 289,700
Earnings per Share Numerator: Adjusted Earnings Net income $
185,100 $ 178,200 $ 695,100 $ 658,400 Less: Income allocated to
participating securities (1) 2,700 2,800
10,200 10,900 Net income available to common shareholders $
182,400 $ 175,400 $ 684,900 $ 647,500 Earnings per Share
Denominator: Wt. avg. common shares outstanding - basic 73,900
75,100 74,100 75,600 Wt. avg. common and common equivalent shares
outstanding - diluted 75,200 76,600 75,400 77,100 Earnings
per Share: GAAP Basis Basic earnings per share available to common
shareholders $ 1.82 $ 1.76 $ 1.80 $ 3.83 Diluted earnings per share
available to common shareholders $ 1.79 $ 1.72 $ 1.77 $ 3.76
Earnings per Share: Adjusted Earnings Diluted earnings per share
available to common shareholders $ 2.43 $ 2.29 $ 9.08 $ 8.40
(1) Basic and diluted earnings per share available to common
shareholders is calculated using a numerator, which represents the
total of income less income allocated to participating securities.
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version on businesswire.com: http://www.businesswire.com/news/home/20160128006464/en/
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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