Bard Announces Fourth Quarter Results; Earnings Per Share up 15 Percent.MURRAY HILL Murray Hill may refer to one of the following places:
See: New York Stock Exchange : BCR BCR B Cell Receptor BCR Business Communications Review (magazine) BCR Banca Comerciala Romana (Romanian bank) BCR Breakpoint Cluster Region BCR Benefit/Cost Ratio BCR Bay City Rollers ) today reported 2005 fourth quarter and full year financial results. Fourth quarter 2005 net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight were $452.0 million, an increase of 7 percent over the prior-year period on both a reported and constant currency basis. As previously announced, during the quarter the company initiated a voluntary product recall of its Composix(R) Kugel ku·gel n. A baked pudding of noodles or potatoes, eggs, and seasonings, traditionally eaten by Jews on the Sabbath. [Yiddish kugel, ball (from its puffed-up shape), from Middle High German. (R) Mesh X-Large X-Large is a clothing store/line founded in Los Angeles in 1991. It soon became popular with urban youth and Hip-hop artists (The Beastie Boys' Michael Diamond was one of the company's original partners). It is very popular in Hong Kong, it is most famous for its Ape Logo. Patch. The fourth quarter 2005 results include a reduction in net sales associated with the recall of $7.8 million, resulting in a 2 percentage point reduction in constant currency net sales growth. For the fourth quarter 2005, net sales in the U.S. were $308.3 million and net sales outside the U.S. were $143.7 million, up 6 percent and 8 percent, respectively, over the prior-year period. Excluding the impact of foreign exchange, fourth quarter 2005 net sales outside the U.S. increased 11 percent over the prior-year period. The recall reduced fourth quarter 2005 net sales in the U.S. by $7.4 million, resulting in a 2 percentage point reduction in net sales growth. Net sales for the full year 2005 were $1,771.3 million, an increase of 7 percent over the prior year. Excluding the impact of a 2004 divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). and foreign exchange, full year 2005 ongoing net sales increased 9 percent over the prior year. The recall resulted in a reduction of 1 percentage point in full year 2005 ongoing net sales growth in constant currency. For the fourth quarter 2005, net income was $80.1 million and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were 75 cents, both up 15 percent over the prior-year period. The 2005 fourth quarter results included certain items that increased net income by $2.1 million (after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. ), or 2 cents per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. Excluding certain items, fourth quarter 2005 net income was $78.0 million and diluted earnings per share were 73 cents, both up 12 percent as compared to the prior-year period. Included in the 2005 fourth quarter results were a reduction in net sales and charges associated with the recall that reduced net income by $6.6 million (after-tax), or 6 cents per diluted share. For the full year 2005, net income was $337.1 million and diluted earnings per share were $3.12, both up 11 percent over the prior-year period. The full year 2005 results included certain items that increased net income by $16.0 million (after-tax), or 15 cents per diluted share. For comparison, the full year 2004 results included certain items that increased net income by $40.1 million (after-tax), or 37 cents per diluted share. Excluding these items in both periods, net income and diluted earnings per share for the full year 2005 increased 22 percent and 21 percent, respectively, as compared to the prior-year period. Timothy M. Ring, chairman and chief executive officer, commented, "We are pleased to report that 2005 was another solid year for Bard bard, in Wales, term originally used to refer to the order of minstrel-poets who composed and recited the poems that celebrated the feats of Celtic chieftains and warriors. . Operationally, our portfolio of businesses and products is well positioned across a broad range of medical device markets. We continue to focus on expanding the definition of these markets and therefore the opportunity they represent. We have strong management teams driving our businesses forward, leveraging our new product pipeline and market leadership positions. We look forward to 2006, ready to execute another successful year and deliver healthy revenue and earnings growth along with robust cash flow to support the continuation of our strategy. We remain focused on making ourselves a reliable double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. revenue growth company over the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. ." C. R. Bard, Inc. (www.crbard.com), headquartered in Murray Hill, N.J., is a leading multinational developer, manufacturer and marketer of innovative, life-enhancing medical technologies in the fields of vascular vascular /vas·cu·lar/ (vas´ku-ler) 1. pertaining to vessels, particularly blood vessels. 2. indicative of a copious blood supply. vas·cu·lar adj. , urology urology Medical specialty dealing with the urinary system and male reproductive organs. It traces its origin to medieval lithologists, itinerant healers who specialized in surgical removal of bladder stones. , oncology oncology /on·col·o·gy/ (ong-kol´ah-je) the sum of knowledge regarding tumors; the study of tumors. on·col·o·gy n. and surgical specialty surgical specialty A specialty of health care in which interventions constitute a significant component of Pt management Examples OB/GYN, ophthalmology, ENT, surgery–cardiothoracic, colorectal, general, neurologic, orthopedic, plastic, urology. products. This press release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. such as legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. , and other economic, business, competitive and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. factors. The company undertakes no obligation to update its forward-looking statements. Please refer to our September September: see month. 30, 2005 10-Q for more detailed information about these and other factors that may cause actual results to differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. . The company sold certain assets of its Endoscopic en·do·scope n. An instrument for examining visually the interior of a bodily canal or a hollow organ such as the colon, bladder, or stomach. en Technologies division on September 30, 2004. Net sales excluding sales of the divested Endoscopic Technologies products are referred to as "ongoing net sales". Net sales, excluding foreign exchange, ongoing net sales and net income and diluted earnings per share (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) excluding certain items are non-GAAP financial measures. The company analyzes net sales on a constant currency and ongoing 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. The company believes that comparing ongoing net sales between periods provides an additional and meaningful analysis of comparable operations. Net income and EPS excluding certain items are used by the company to measure the comparability of results between periods. Because certain items such as investment gains and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. outcomes may not reflect underlying operating results, the company believes the exclusion of these and similar items provides an additional and meaningful assessment of net income and EPS. The limitation of these non-GAAP measures is that, by excluding certain items, they do not reflect results on a standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. reporting basis. All non-GAAP financial measures are intended to supplement the applicable GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). disclosures and should not be viewed as a replacement for GAAP results. For a reconciliation of these non-GAAP measures to the most comparable GAAP measures, please see the attached tables.
C. R. Bard, Inc.
Consolidated Statements of Income
(in thousands except per share amounts, unaudited)
Quarter Ended Twelve Months Ended
December 31, December 31,
------------------- -----------------------
2005 2004 2005 2004
--------- --------- ----------- -----------
Net sales $452,000 $424,100 $1,771,300 $1,656,100
Costs and expenses:
Cost of goods sold 177,900 161,600 682,700 660,300
Marketing, selling &
administrative expense 137,300 139,000 534,600 521,000
Research & development
expense 29,200 28,200 114,600 111,600
Interest expense 2,900 2,900 12,200 12,700
Other (income) expense,
net (7,400) (2,700) (22,400) (63,700)
--------- --------- ----------- -----------
Total costs and expenses 339,900 329,000 1,321,700 1,241,900
--------- --------- ----------- -----------
Income before tax
provision 112,100 95,100 449,600 414,200
Income tax provision 32,000 25,300 112,500 111,400
--------- --------- ----------- -----------
Net income $80,100 $69,800 $337,100 $302,800
========= ========= =========== ===========
Basic earnings per share $0.77 $0.67 $3.22 $2.90
========= ========= =========== ===========
Diluted earnings per share $0.75 $0.65 $3.12 $2.82
========= ========= =========== ===========
Wt. avg. common shares
outstanding - basic 104,400 104,600 104,800 104,400
Wt. avg. common shares
outstanding - diluted 107,400 107,500 108,000 107,200
Product Group Summary of Net Sales
(in thousands, unaudited)
Quarter Ended December 31,
-------------------------------------
Constant
2005 2004 Change Currency
---------- --------- ------ ---------
Vascular $112,600 $101,400 11% 13%
Urology 134,000 130,400 3% 3%
Oncology 107,400 92,600 16% 16%
Surgery 81,200 83,100 -2% -2%
Other 16,800 16,600 1% 1%
--------- ---------
Ongoing Sales $452,000 $424,100 7%
FX Impact --- (3,000)
--------- ---------
Con. Currency $452,000 $421,100 7%
========= =========
Ongoing Sales $452,000 $424,100 7%
Divested Sales --- ---
--------- ---------
Reported Sales $452,000 $424,100 7%
========= =========
Twelve Months Ended December 31,
---------------------------------------
Constant
2005 2004 Change Currency
----------- ---------- ------ --------
Vascular $434,500 $393,000 11% 10%
Urology 524,000 493,100 6% 6%
Oncology 405,500 342,800 18% 18%
Surgery 333,200 313,300 6% 6%
Other 74,100 67,800 9% 9%
----------- -----------
Ongoing Sales $1,771,300 $1,610,000 10%
FX Impact --- 8,700
----------- -----------
Con. Currency $1,771,300 $1,618,700 9%
=========== ===========
Ongoing Sales $1,771,300 $1,610,000 10%
Divested Sales --- 46,100
----------- -----------
Reported Sales $1,771,300 $1,656,100 7%
=========== ===========
Condensed Consolidated Balance Sheets
(in thousands, unaudited)
December 31,
-----------------------
ASSETS 2005 2004
----------------------------------------------------------------------
Cash and short-term
investments $758,200 $545,400
Accounts receivable, net 267,700 290,100
Inventories 169,600 156,700
Other current assets 68,600 61,800
----------------------
Total current assets 1,264,100 1,054,000
----------------------
Property, plant and
equipment, net 310,000 260,800
Intangible assets 232,500 234,500
Goodwill 358,800 365,700
Other assets 100,200 94,100
----------------------
TOTAL ASSETS $2,265,600 $2,009,100
======================
December 31,
----------------------
LIABILITIES AND SHAREHOLDERS' INVESTMENT 2005 2004
----------------------------------------------------------------------
Short-term debt & current maturity of
long-term debt $300,600 $100
Accounts payable 52,500 52,200
Accrued liabilities 287,500 338,000
-----------------------
Total current liabilities 640,600 390,300
-----------------------
Long-term debt 800 151,400
Long-term liabilities 88,100 91,600
-----------------------
Noncontrolling interest ---- 15,700
Total shareholders' investment 1,536,100 1,360,100
-----------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' INVESTMENT $2,265,600 $2,009,100
=======================
Notes to Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Statements of Income --The voluntary product recall announced January January: see month. 13, 2006 resulted in a $7.8 million net sales reduction to the surgery product group for the quarter and year ended December December: see month. 31, 2005. --2004 net sales of divested products were previously reported in the oncology product group. --All earnings per share numbers reflect the company's 2 for 1 stock split that became effective May 28, 2004. --For the fourth quarter ended December 31, 2005, in addition to interest income and exchange gains and losses, other (income) expense, net included investment gains of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $3.4 million pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern ($2.1 million after-tax), or $0.02 diluted earnings per share. --For the year ended December 31, 2005, in addition to interest income and exchange gains and losses, other (income) expense, net included the following certain items: investment gains and the resolution of a royalty matter for a net adjustment of approximately $16.8 million pretax ($10.4 million after-tax), offset by a charge for an asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of approximately $8.9 million pretax ($8.0 million after-tax). Certain items also included a reduction in the income tax provision of approximately $45.6 million predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. related to the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. completion of the Internal Revenue Service audit for the tax years 1996-1999, as well as the resolution of certain other tax positions. Additionally, the company recorded an income tax provision of approximately $32.0 million related to the company's planned repatriation Repatriation The process of converting a foreign currency into the currency of one's own country. Notes: If you are American, converting British Pounds back to U.S. dollars is an example of repatriation. of $600.0 million of undistributed Adj. 1. undistributed - (of investments) not distributed among a variety of securities undiversified - not diversified foreign earnings under the American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Jobs Creation Act. In total, these certain items resulted in a net gain of $16.0 million after-tax, or $0.15 diluted earnings per share. --For the fourth quarter ended December 31, 2004, in addition to interest income and exchange gains and losses, other (income) expense, net included an adjustment to the gain from the sale of certain assets of the company's Endoscopic Technologies division of $0.6 million pretax ($0.3 million after-tax). --For the year ended December 31, 2004, in addition to interest income and exchange gains and losses, other (income) expense, net included the following certain items: a gain from the sale of certain assets of the company's Endoscopic Technologies division of $45.5 million pretax ($31.1 million after-tax), the adjustment of a 2003 reserve recorded in conjunction with a legal verdict, offset by unrelated legal settlements and investment gains for a net adjustment of approximately $7.8 million pretax ($4.9 million after-tax). The company also recorded miscellaneous gains related to the sale of a facility and the conclusion of an intellectual property matter of $3.5 million pretax ($3.0 million after-tax). In addition, the company recorded a $1.1 million tax credit in income tax provision related to the retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a effective date of its Malaysian high-technology pioneer grant. In total, these items resulted in a net gain of $40.1 million after-tax, or $0.37 diluted earnings per share.
The aggregate impact of these items on net income and diluted
earnings per share is reflected in the following table:
Reconciliation of Earnings
(in millions, except per share)
-------------------------------
Quarter Ended December 31,
-------------------------------
2005 2004
--------------- ----------------
Net Diluted Net Diluted
Income EPS Income EPS
------- ------- ------- --------
GAAP Basis $80.1 $0.75 $69.8 $0.65
Adjustment (2.1) (0.02) (0.3) ---
------- ------- ------- -------
Adjusted Basis $78.0 $0.73 $69.5 $0.65
======= ======= ======= =======
--------------------------------
Twelve Months Ended December 31,
--------------------------------
2005 2004
--------------- ---------------
Net Diluted Net Diluted
Income EPS Income EPS
------- ------- ------- -------
GAAP Basis $337.1 $3.12 $302.8 $2.82
Adjustment (16.0) (0.15) (40.1) (0.37)
------- ------- ------- -------
Adjusted Basis $321.1 $2.97 $262.7 $2.45
======= ======= ======= =======
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion