C. R. Bard, Inc. (NYSE:BCR) today reported 2015 second quarter
financial results. Second quarter 2015 net sales were $859.8
million, an increase of 4 percent over the prior-year period
on an as-reported basis. Excluding the impact of foreign exchange,
second quarter 2015 net sales increased 8 percent over the
prior-year period.
For the second quarter 2015, net sales in the U.S. were $592.0
million, an increase of 7 percent over the prior-year period. Net
sales outside the U.S. were $267.8 million, a decrease of 2 percent
from the prior-year period on an as-reported basis. Excluding the
impact of foreign exchange, second quarter 2015 net sales outside
the U.S. increased 11 percent over the prior-year period.
For the second quarter 2015, net loss was ($54.7 million) and
diluted loss per share was ($0.74), reflecting a net charge for
estimated costs related to product liability matters. Adjusting for
this charge and certain other items that affect the comparability
of results between periods as detailed in the tables below, second
quarter 2015 net income was $154.3 million and diluted earnings per
share, after adjusting for certain items that affect comparability
between periods and excluding amortization of intangible assets,
was $2.27, an increase of 8 percent and 10 percent, respectively,
as compared to second quarter 2014 results.
Timothy M. Ring, chairman and chief executive officer,
commented, “We are pleased with the strong start to 2015, which, as
we’ve said, is an important year of execution for us. More than two
years ago, we introduced our strategic investment plan designed to
accelerate the growth rate of the company and put us in a position
to provide revenue growth in the mid-to-high single digits with
attractive returns for shareholders. We are pleased with the
results to date and we remain focused on that objective.”
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 March 31, 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
Operations (dollars and shares in thousands except per share
amounts, unaudited)
Quarter Ended Six Months Ended June 30, June 30,
2015
2014
2015
2014
Net sales $ 859,800 $ 827,100 $ 1,679,500 $ 1,626,400 Costs
and expenses Cost of goods sold 333,700 320,700 644,900 630,200
Marketing, selling and administrative expense 250,000 245,200
485,700 482,000 Research and development expense 64,000 85,400
124,600 149,700 Interest expense 11,200 11,300 22,500 22,400 Other
(income) expense, net 141,700 257,300
158,000 251,300 Total costs and expenses
800,600 919,900 1,435,700
1,535,600 Income (loss) from operations before income taxes
59,200 (92,800 ) 243,800 90,800
Income tax provision 113,900 26,600
158,700 61,800 Net (loss) income $ (54,700 ) $
(119,400 ) $ 85,100 $ 29,000 Basic (loss) earnings per share
available to common shareholders $ (0.74 ) $ (1.59 ) $ 1.13 $ 0.38
Diluted (loss) earnings per share available to common
shareholders $ (0.74 ) $ (1.59 ) $ 1.11 $ 0.37 Wt. avg.
common shares outstanding - basic 74,200 75,100 74,300 76,000
Wt. avg. common and common equivalent shares outstanding -
diluted 74,200 75,100 75,700 77,500
Product Group
Summary of Net Sales (dollars in thousands, unaudited)
Quarter Ended June 30,
Six Months Ended June 30,
Constant
Constant 2015 2014 Change
Currency 2015 2014 Change Currency Vascular $ 248,600 $
233,000 7 % 12 % $ 480,500 $ 452,200 6 % 11 % Urology 209,200
207,100 1 % 4 % 414,800 408,500 2 % 4 % Oncology 235,200 224,700 5
% 8 % 459,800 443,700 4 % 6 % Surgical Specialties 143,800 139,300
3 % 6 % 279,700 274,500 2 % 5 % Other 23,000 23,000
0 % 2 % 44,700 47,500 -6 % -4 %
Net sales $ 859,800 $ 827,100 4 % $ 1,679,500 $ 1,626,400
3 % Foreign exchange impact (29,800 )
- (50,200 ) Constant Currency $ 859,800 $ 797,300
8 % $ 1,679,500 $ 1,576,200 7 %
Non-GAAP Reconciliation of (Loss) Earnings (dollars in
millions except per share amounts, unaudited)
Quarter Ended June 30, 2015
Diluted (Loss) Earnings Marketing, per Share
Cost of Selling and Research & Other Net Available Goods
Administrative Development (Income) Income (Loss) to Common Sold
Expense Expense Expense, Net Taxes Income Shareholders(1)
GAAP Basis $ 333.7 $ 250.0 $ 64.0 $ 141.7 $ 113.9 $ (54.7 ) $ (0.74
)
Items that affect
comparability of
results between
periods:
Acquisition-related items (2.0 ) (1.0 ) (1.5 ) - 0.5 4.0 Litigation
charges, net - - - (343.7 ) 12.5 331.2 Gore proceeds - - - 210.5
(78.8 ) (131.7 ) Restructuring and productivity initiative costs
- - - (8.5 )
3.0 5.5 Total (2.0 ) (1.0 ) (1.5
) (141.7 ) (62.8 ) 209.0 2.73
Adjusted Basis $ 331.7 $ 249.0 $ 62.5 $
- $ 51.1 $ 154.3 Amortization of intangible
assets $ 29.3 $ 9.9 $ 19.4 0.25 Adjusted
Earnings $ 173.7 $ 2.27 Quarter Ended June 30,
2014 Diluted (Loss) Earnings Marketing, per Share Cost of Selling
and Research & Other Net Available Goods Administrative
Development (Income) Income (Loss) to Common Sold Expense Expense
Expense, Net Taxes Income Shareholders(1) GAAP Basis $ 320.7
$ 245.2 $ 85.4 $ 257.3 $ 26.6 $ (119.4 ) $ (1.59 )
Items that affect
comparability of
results between
periods:
Acquisition-related items (0.9 ) (0.3 ) (21.2 ) (0.1 ) 0.4 22.1
Litigation charges, net - - -
(262.7 ) 22.4 240.3
Total (0.9 ) (0.3 ) (21.2 ) (262.8 ) 22.8 262.4 3.37
Adjusted Basis $ 319.8 $
244.9 $ 64.2 $ (5.5 ) $ 49.4 $ 143.0
Amortization of intangible assets $ 26.6 $ 8.9 $ 17.7
0.23 Adjusted Earnings $ 160.7 $ 2.06
Six Months Ended June 30, 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 $ 644.9 $ 485.7 $ 124.6 $ 158.0 $ 158.7 $ 85.1 $ 1.11
Items that affect
comparability of
results between
periods:
Acquisition-related items 7.9 (1.2 ) (1.5 ) (0.5 ) 0.7 (5.4 )
Litigation charges, net - - - (354.0 ) 13.4 340.6 Gore proceeds - -
- 210.5 (78.8 ) (131.7 ) Restructuring and productivity initiative
costs - - - (12.4
) 4.3 8.1 Total 7.9 (1.2 ) (1.5
) (156.4 ) (60.4 ) 211.6 2.75
Adjusted Basis $ 652.8 $ 484.5 $ 123.1
$ 1.6 $ 98.3 $ 296.7 Amortization of
intangible assets $ 58.2 $ 19.6 $ 38.6 0.50
Adjusted Earnings $ 335.3 $ 4.36 Six
Months Ended June 30, 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 $ 630.2 $ 482.0 $ 149.7 $ 251.3 $ 61.8 $ 29.0 $ 0.37
Items that affect
comparability of
results between
periods:
Acquisition-related items (1.5 ) (0.4 ) (21.6 ) (2.1 ) 1.2 24.4
Litigation charges, net - - - (262.7 ) 22.4 240.3 Gain on sale of
investment - - - 7.1 (2.2 ) (4.9 ) Tax item -
- - - 10.9
(10.9 ) Total (1.5 ) (0.4 ) (21.6 ) (257.7 ) 32.3 248.9 3.16
Adjusted Basis $ 628.7
$ 481.6 $ 128.1 $ (6.4 ) $ 94.1 $ 277.9
Amortization of intangible assets $ 53.2 $ 17.8 $ 35.4
0.45 Adjusted Earnings $ 313.3 $ 3.98
(1) For the quarters ended June 30, 2015 and 2014, diluted loss
per share on a GAAP basis does not include common share equivalents
of approximately 1.3 million and 1.5 million, respectively. Common
share equivalents primarily from share-based compensation plans
were not included in these periods because their effect would have
been antidilutive. As a result, total per share amounts do not
add.
Notes to Non-GAAP Reconciliation of (Loss)
Earnings
- For the second quarter 2015, the
following items affected the comparability of results between
periods: (i) charges of $4.5 million pre-tax for
acquisition-related items including transaction costs, purchase
accounting adjustments and integration costs; (ii) charges of
$343.7 million pre-tax related to estimated costs for product
liability matters, net of recoveries, which includes $6.8 million
of litigation-related defense costs in connection with the District
Court’s pre-trial orders that the company prepare 200 and then an
additional 300 individual cases for trial (the “WHP Pre-Trial
Orders”); (iii) a gain of $210.5 million pre-tax related to a
patent infringement litigation against W.L. Gore & Associates,
Inc. (“Gore”); and (iv) charges of $8.5 million pre-tax for
restructuring and productivity initiatives. The net effect of these
items increased net loss by $209.0 million, or $2.73 diluted loss
per share available to common shareholders. Amortization of
intangible assets was $29.3 million pre-tax, which decreased net
income on an adjusted basis by $19.4 million, or $0.25 diluted
earnings per share available to common shareholders.
- For the second quarter 2014, the
following items affected the comparability of results between
periods: (i) charges of $22.5 million pre-tax for
acquisition-related items including transaction costs, purchase
accounting adjustments and integration costs; and (ii) charges of
$262.7 million pre-tax related to estimated costs for product
liability matters, net of recoveries, which includes $4.2 million
of litigation-related defense costs in connection with the District
Court’s pre-trial order that the company prepare 200 individual
cases for trial. The net effect of these items increased net loss
by $262.4 million, or $3.37 diluted loss 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 $0.23 diluted earnings per share available to
common shareholders.
- For the six months ended June 30, 2015,
the following items affected the comparability of results between
periods: (i) a net benefit of $4.7 million pre-tax for
acquisition-related items including transaction costs, purchase
accounting adjustments and integration costs; (ii) charges of
$354.0 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; (iii) a gain
of $210.5 million pre-tax related to a patent infringement
litigation against Gore; and (iv) charges of $12.4 million pre-tax
for restructuring and productivity initiatives. The net effect of
these items decreased net income by $211.6 million, or $2.75
diluted earnings per share available to common shareholders.
Amortization of intangible assets was $58.2 million pre-tax, which
decreased net income on an adjusted basis by $38.6 million, or
$0.50 diluted earnings per share available to common
shareholders.
- For the six months ended June 30, 2014,
the following items affected the comparability of results between
periods: (i) charges of $25.6 million pre-tax for
acquisition-related items including transaction costs, purchase
accounting adjustments and integration costs; (ii) charges of
$262.7 million pre-tax related to estimated costs for product
liability matters, net of recoveries, which includes $4.2 million
of litigation-related defense costs in connection with the District
Court’s pre-trial order that the company prepare 200 individual
cases for trial; (iii) a gain of $7.1 million pre-tax related to
the sale of an equity investment; and (iv) 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 $248.9 million, or
$3.16 diluted earnings per share available to common shareholders.
Amortization of intangible assets was $53.2 million pre-tax, which
decreased net income on an adjusted basis by $35.4 million, or
$0.45 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, 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 (Loss) Earnings per
Share
(dollars and shares in thousands, except
per share amounts, unaudited)
Quarter Ended Six
Months Ended June 30, June 30, 2015 2014 2015
2014 (Loss) earnings per Share Numerator: GAAP Basis - basic
and diluted Net (loss) income $ (54,700 ) $ (119,400 ) $ 85,100 $
29,000 Less: Income allocated to participating securities (1)
- - 1,200 400 Net (loss)
income available to common shareholders $ (54,700 ) $ (119,400 ) $
83,900 $ 28,600 Earnings per Share Numerator: Adjusted
Earnings Net income $ 173,700 $ 160,700 $ 335,300 $ 313,300 Less:
Income allocated to participating securities (1) 2,600
2,700 5,000 5,200 Net income
available to common shareholders $ 171,100 $ 158,000
$ 330,300 $ 308,100 Earnings per Share Denominator: Wt. avg.
common shares outstanding - basic 74,200 75,100 74,300 76,000 Wt.
avg. common and common equivalent shares outstanding (2): GAAP
Basis - diluted 74,200 75,100 75,700 77,500 Wt. avg. common and
common equivalent shares outstanding: Adjusted Basis - diluted
75,500 76,600 75,700 77,500 (Loss) earnings per Share: GAAP
Basis Basic (loss) earnings per share available to common
shareholders $ (0.74 ) $ (1.59 ) $ 1.13 $ 0.38 Diluted (loss)
earnings per share available to common shareholders $ (0.74 ) $
(1.59 ) $ 1.11 $ 0.37 Earnings per Share: Adjusted Earnings
Diluted earnings per share available to common shareholders $ 2.27
$ 2.06 $ 4.36 $ 3.98
(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.
(2) For the quarters ended June 30, 2015 and 2014, diluted loss
per share on a GAAP basis does not include common share equivalents
of approximately 1.3 million and 1.5 million, respectively. Common
share equivalents primarily from share-based compensation plans
were not included in these periods because their effect would have
been antidilutive.
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version on businesswire.com: http://www.businesswire.com/news/home/20150723006420/en/
For 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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