Bard Exceeds Third Quarter Earnings Expectations - EPS of $0.85 Per Share Before Non-Recurring Items.Business Editors/Health/Medical Writers MURRAY HILL Murray Hill may refer to one of the following places:
C. R. Bard C. R. Bard, Inc. (NYSE: BCR) is one of the large S&P 500 companies of the United States, a surgical specialties and hospital medical device manufacturer in Murray Hill, New Jersey. It is named after its founder, who sold the company within only a few years of its founding. , Inc. (NYSE-BCR) today reported 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 of $322.7 million for the quarter ended September September: see month. 30, 2002, up 8 percent over the prior-year period. For the quarter ended September 30, 2001, 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. reported net sales of $297.8 million. Adjusting for the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact of foreign exchange, third quarter net sales increased 7 percent. Reported net income for the third quarter was $29.8 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 57 cents. Included in reported net income for the quarter are non-recurring items including charges totaling $24.6 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta associated with the previously announced realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. of certain divisional and manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. and a tax credit of $3.5 million. The net 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. impact of these non-recurring items was $14.8 million or 28 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 the impact of the non-recurring items, net income for the third quarter was $44.6 million and diluted earnings per share were 85 cents, 2 cents above Wall Street consensus estimates. In the prior-year quarter, Bard reported net income of $35.7 million and diluted earnings per share of 68 cents, which includes pre-tax goodwill amortization of $3.3 million (6 cents per diluted share) that is not required for years subsequent to 2001. Excluding the impact of the non-recurring items recorded in the third quarter of 2002 and the impact of goodwill amortization on the third quarter 2001, net income and diluted earnings per share for the quarter were both up 15 percent over 2001 third quarter results. William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack H. Longfield, chairman and chief executive officer, commented, "We continue to be pleased with the consistency of our sales performance. In addition, this quarter's realignment efforts will generate approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $15 million in annual savings by 2004. In total, our 2002 realignment efforts will be less costly than first anticipated and are progressing at a faster pace than we planned. Gross margins should begin to expand as early as the fourth quarter. Combine this with the recent improvements in our tax rate and we become very comfortable with our ability to expand R&D funding in the next several quarters." For the third quarter, net sales in the U.S. were $234.5 million, up 7 percent, and net sales outside the U.S. were $88.2 million, up 11 percent over the prior-year period. Adjusting for the favorable impact of foreign exchange, net sales outside the U.S. increased by 4 percent over the prior-year period. The accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. tables summarize sum·ma·rize intr. & tr.v. sum·ma·rized, sum·ma·riz·ing, sum·ma·riz·es To make a summary or make a summary of. sum the impact of the 2002 non-recurring items and 2001 goodwill amortization on diluted earnings per share for both the quarter and year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. results. C. R. Bard, Inc., (www.crbard.com) headquartered in Murray Hill, New Jersey
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 contains 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. , including statements about future cost savings, the accuracy of which is necessarily subject to risks and uncertainties. It is not possible to predict or identify all such risks and uncertainties, but such risks include that we may not achieve manufacturing or administrative efficiencies as a result of our realignment efforts. In addition, please refer to our June June: see month. 30, 2002 Form 10-Q Form 10-Q See 10-Q. for a statement with regard to forward-looking statements, including disclosure of additional factors that could 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. .
C. R. Bard, Inc.
Consolidated Statements of Income
(thousands of dollars except per share amounts, unaudited)
Quarter Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2002 2001 2002 2001
--------- --------- --------- ---------
Net sales $322,700 $297,800 $942,100 $878,500
Costs and expenses:
Cost of goods sold 149,200 139,500 435,700 410,200
Marketing, selling &
administrative (1) 95,200 91,200 276,300 272,300
Research & development
expense 14,900 13,100 44,100 40,300
Interest expense 3,100 3,500 9,500 11,200
Other (income) expense,
net (2) 23,600 (700) 30,000 (4,100)
--------- --------- --------- ---------
Total costs and expenses 286,000 246,600 795,600 729,900
--------- --------- --------- ---------
Income before taxes 36,700 51,200 146,500 148,600
Income tax provision (2) 6,900 15,500 38,100 44,700
--------- --------- --------- ---------
Net income $29,800 $35,700 $108,400 $103,900
========= ========= ========= =========
Basic earnings per share $0.58 $0.70 $2.08 $2.04
========= ========= ========= =========
Diluted earnings per share $0.57 $0.68 $2.05 $2.01
========= ========= ========= =========
Average common shares
outstanding - basic 51,700 51,300 52,100 51,000
Average common shares
outstanding - diluted 52,300 52,300 52,900 51,700
(1) 2001 marketing, selling & administrative expense includes $3.3
million pretax ($0.06 diluted earnings per share) and $9.9 million
pretax ($0.18 diluted earnings per share) of goodwill amortization for
the third quarter and nine month period, respectively. Goodwill
amortization is not required for fiscal years beginning after December
15, 2001 per Financial Accounting Standard 142, "Goodwill and Other
Intangible Assets".
(2) In addition to interest income and exchange gains and losses,
third quarter 2002 other (income) expense, net includes special
charges related to the realignment of certain divisional and
manufacturing operations ($24.6 million pretax). These special charges
and a $3.5 million tax credit (included in income tax provision)
related to a change in a statutory tax rate result in an impact of
$0.28 on diluted earnings per share. In addition to interest income
and exchange gains and losses, first quarter 2002 other (income)
expense, net includes special charges related to the termination of
the Tyco merger ($6.2 million pretax $0.08 diluted earnings per
share), divisional and manufacturing consolidation projects ($2.6
million pretax $0.03 diluted earnings per share) and corporate
severance related costs ($6.5 million pretax $0.08 diluted earnings
per share). These charges are offset with the reversal of certain
legal accruals ($5.0 million pretax $0.06 diluted earnings per share).
Product Group Summary of Net Sales
Quarter Ended September 30,
-----------------------------------
Constant
2002 2001 Change Currency
--------- --------- ------ --------
Vascular $65,600 $62,600 5% 1%
Urology 107,100 100,000 7% 6%
Oncology 76,100 70,700 8% 7%
Surgery 56,800 49,700 14% 13%
Other 17,100 14,800 16% 13%
--------- ---------
Total net sales $322,700 $297,800 8% 7%
========= =========
Nine Months Ended September 30,
-----------------------------------
Constant
2002 2001 Change Currency
--------- --------- ------ --------
Vascular $189,200 $185,700 2% 1%
Urology 312,400 291,300 7% 7%
Oncology 221,900 204,000 9% 9%
Surgery 169,100 151,900 11% 11%
Other 49,500 45,600 9% 7%
--------- ---------
Total net sales $942,100 $878,500 7% 7%
========= =========
C. R. Bard, Inc.
Impact of 2002 Non-Recurring Items and
2001 Goodwill Amortization on Financial Results
(dollars in millions except per share amounts, unaudited)
For the quarter ended
September 30,
-------------------------------
Pretax Net Diluted
2002 Income Taxes Income EPS
---------------------------------- -------------------------------
As reported $36.7 $6.9 $29.8 $0.57
Impact of non-recurring items 24.6 9.8 14.8 0.28
------- ------ ------- --------
Adjusted $61.3 $16.7 $44.6 $0.85
======= ====== ======= ========
2001
----------------------------------
As reported $51.2 $15.5 $35.7 $0.68
Impact of goodwill amortization 3.3 0.2 3.1 0.06
------- ------ ------- --------
Adjusted $54.5 $15.7 $38.8 $0.74
======= ====== ======= ========
Percentage growth 12% 6% 15% 15%
For the nine months ended
September 30,
-------------------------------
Pretax Net Diluted
2002 Income Taxes Income EPS
-------------------------------------- -------------------------------
As reported $146.5 $38.1 $108.4 $2.05
Impact of non-recurring items 34.9 13.2 21.7 0.41
------- ------ ------- --------
Adjusted $181.4 $51.3 $130.1 $2.46
======= ====== ======= ========
2001
--------------------------------------
As reported $148.6 $44.7 $103.9 $2.01
Impact of goodwill amortization 9.9 0.6 9.3 0.18
------- ------ ------- --------
Adjusted $158.5 $45.3 $113.2 $2.19
======= ====== ======= ========
Percentage growth 14% 13% 15% 12%
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