Bard Announces Fourth Quarter Results.Revenue Up 15 Percent as Reported, 14 Percent Excluding Foreign Exchange MURRAY HILL Murray Hill may refer to one of the following places:
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 $520.9 million, an increase of 15 percent over the prior-year period. Excluding the impact of foreign exchange, fourth quarter 2006 net sales increased 14 percent over the prior-year period. For the fourth quarter 2006, net sales in the U.S. were $361.5 million and net sales outside the U.S. were $159.4 million, up 17 percent and 11 percent, respectively, over the prior-year period. Excluding the impact of foreign exchange, fourth quarter 2006 net sales outside the U.S. increased 7 percent over the prior-year period. Net sales for the full year 2006 were $1,985.5 million, an increase of 12 percent over the prior-year period on both a reported and constant currency basis. For the fourth quarter 2006, net income was $22.0 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 21 cents. Net income and diluted earnings per share as reported were down 73 percent and 72 percent, respectively, as compared to fourth quarter 2005 results. Adjusting for certain items that affect comparability between periods, fourth quarter 2006 net income was $99.2 million and diluted earnings per share were 93 cents, both up 27 percent as compared to fourth quarter 2005 results on a comparable basis. Adjustments to the fourth quarter 2006 results reduced net income by $77.2 million (after-tax), or 72 cents per diluted share, and included a charge of $5.6 million (after-tax), or 5 cents per diluted share for share-based compensation under FAS 123R and other items detailed in the statements below. Adjustments to the fourth quarter 2005 results included items that increased net income by $2.1 million (after-tax), or 2 cents per diluted share. For the full year 2006, net income was $272.1 million and diluted earnings per share were $2.55. Net income and diluted earnings per share as reported, were down 19 percent and 18 percent, respectively, as compared to full year 2005 results. Adjusting for certain items that affect comparability between periods, full year 2006 net income was $374.7 million and diluted earnings per share were $3.51, up 17 percent and 18 percent, respectively, as compared to full year 2005 results on a comparable basis. Timothy M. Ring, chairman and chief executive officer, commented, "We are pleased to report strong results for the 4th quarter and full year 2006. This marks the fourth consecutive year in which 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. has delivered adjusted earnings growth above the company's target of 14 percent. This success has been achieved through product innovation, a commitment to market leadership and the efforts and dedication of all our employees. While pleased with our past results, we are equally as excited about the future. In 2007, we will celebrate our 100th anniversary and expect to eclipse $2 billion in revenue as we continue to build on our growth strategy to enhance shareholder value." 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, 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 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 factors. The company undertakes no obligation to update its forward-looking statements. Please refer to our September 30, 2006 10-Q for more detailed information about these and other factors that may cause actual results to differ materially from those expressed or implied. Net sales excluding foreign exchange and net income, 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. ) and individual statement of income categories excluding certain items that affect the comparability of results between periods are non-GAAP financial measures. 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. Net income, EPS and individual statement of income categories excluding certain items are used by the company to measure the comparability of results between periods. Certain items such as investment gains, acquisition-related charges 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, and other items such as the FAS 123R stock option expense may affect the comparability of results between periods. As a result, the company believes the exclusion of these and similar items provides an additional and meaningful assessment of charges in net income, EPS and individual statement of income categories. 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. [TABLE OMITTED] [TABLE OMITTED] Notes to Consolidated Statements of Income * The results for the fourth quarter ended December 31, 2006 included the following certain items: Other (income) expense, net included investment gains of approximately $1.3 million pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern ($0.8 million after-tax), a charge of approximately $1.2 million pretax ($1.2 million after-tax) related to the pending settlement of a tax matter by the company's joint venture operating in Japan, and a charge of approximately $49.0 million pretax ($30.5 million after-tax) for the previously disclosed settlement of a legal matter. In the fourth quarter of 2006, as previously announced, the company decided to discontinue dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: the sale of its Tegress(TM) urinary incontinence Urinary Incontinence Definition Urinary incontinence is unintentional loss of urine that is sufficient enough in frequency and amount to cause physical and/or emotional distress in the person experiencing it. bulking agent and recorded charges of approximately $0.5 million pretax in cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold , approximately $0.2 million pretax in marketing, selling & administrative expense and approximately $45.7 million pretax in other (income) expense, net for a total charge of approximately $46.4 million pretax ($41.5 million after-tax). For the fourth quarter ended December 31, 2006, research and development expense included payments of approximately $7.2 million pretax ($6.8 million after-tax) for purchased research and development. Certain items also included a reduction in the income tax provision of approximately $7.6 million predominantly related to the expiration of the statute of limitations A type of federal or state law that restricts the time within which legal proceedings may be brought. Statutes of limitations, which date back to early Roman Law, are a fundamental part of European and U.S. law. in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. for the 2002 tax year. The results of the fourth quarter ended December 31, 2006 also included the incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. impact of the new accounting standard for share-based payments under FAS 123R, as detailed in the table below. In total, these certain items decreased net income by approximately $77.2 million after-tax, or $0.72 diluted earnings per share. * The results for the year ended December 31, 2006 included the following certain items: Other (income) expense, net included investment gains of approximately $2.9 million pretax ($1.8 million after-tax), a charge of approximately $1.2 million pretax ($1.2 million after-tax) related to the pending settlement of a tax matter by the company's joint venture operating in Japan, and charges totaling approximately $69.0 million pretax ($43.1 million after-tax) for the settlement of legal matters. In 2006, the company decided to discontinue the sale of its Tegress(TM) urinary incontinence bulking agent and recorded charges of approximately $0.5 million pretax in cost of goods sold, approximately $0.2 million pretax in marketing, selling & administrative expense and approximately $45.7 million pretax in other (income) expense, net for a total charge of approximately $46.4 million pretax ($41.5 million after-tax). For the year ended December 31, 2006, research and development expense included payments of approximately $24.0 million pretax ($19.5 million after-tax) for purchased research and development. Certain items also included a reduction in the income tax provision of approximately $23.8 million predominantly related to the expiration of the statute of limitations in the United States for the 2000 through 2002 tax years. The results of the year ended December 31, 2006 also included the incremental impact of the new accounting standard for share-based payments under FAS 123R, as detailed in the table below. In total, these certain items decreased net income by approximately $102.6 million after-tax, or $0.96 diluted earnings per share. * 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 $3.4 million pretax ($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 related to the favorable 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 Jobs Creation Act. In total, these certain items resulted in a net gain of approximately $16.0 million after-tax, or $0.15 diluted earnings per share. The aggregate impact of these items on net income and diluted earnings per share is reflected in the following table: [TABLE OMITTED] [TABLE OMITTED] |
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