Bard Announces Fourth Quarter Results Diluted EPS of $1.52, $1.70 on Adjusted Basis
MURRAY HILL, N.J.--(BUSINESS WIRE)--
C. R. Bard, Inc. (NYSE: BCR) today reported 2012 fourth quarter
financial results. Fourth quarter 2012 net sales were $762.6 million, an
increase of 1 percent over the prior-year period on an as-reported
basis. Excluding the impact of foreign exchange, fourth quarter 2012 net
sales increased 2 percent over the prior-year period.
For the fourth quarter 2012, net sales in the U.S. were $498.1 million
and net sales outside the U.S. were $264.5 million, a decrease of 1
percent and an increase of 6 percent, respectively, over the prior-year
period. Excluding the impact of foreign exchange, fourth quarter 2012
net sales outside the U.S. increased 8 percent over the prior-year
period.
Net sales for the full year 2012 were $2,958.1 million, an increase of 2
percent over the prior-year period. Excluding the impact of foreign
exchange, full year 2012 net sales increased 3 percent over the
prior-year period.
For the fourth quarter 2012, net income was $128.2 million and diluted
earnings per share available to common shareholders were $1.52, an
increase of 13 percent and 17 percent, respectively, as compared to
fourth quarter 2011 results. Adjusting for items that affect
comparability between periods as detailed in the tables below, fourth
quarter 2012 net income was $143.9 million and diluted earnings per
share available to common shareholders were $1.70, a decrease of 3
percent and unchanged, respectively, as compared to fourth quarter 2011
results.
For the full year 2012, net income was $530.1 million and diluted
earnings per share available to common shareholders were $6.16, an
increase of 62 percent and 67 percent, respectively, as compared to full
year 2011 results. Adjusting for items that affect comparability between
periods, full year 2012 net income was $565.3 million and diluted
earnings per share available to common shareholders were $6.57, a
decrease of 1 percent and an increase of 3 percent, respectively, as
compared to full year 2011 results.
Timothy M. Ring, chairman and chief executive officer, commented, “While
the near term environment remains challenging, especially in our
developed markets, we are executing a strategy to return to faster
growth through investments in emerging markets and new product
categories. We believe the size of the opportunities in front of us and
the capabilities of our organization have never been better, and we are
investing to aggressively pursue these opportunities.”
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 September 30,
2012 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,
2012
2011
2012
2011
Net sales
$
762,600
$
751,900
$
2,958,100
$
2,896,400
Costs and expenses
Cost of goods sold
287,600
282,100
1,125,300
1,097,300
Marketing, selling and administrative expense
213,000
214,200
817,300
794,600
Research and development expense
52,700
43,600
203,200
185,400
Interest expense
10,700
9,300
39,600
36,400
Other (income) expense, net
21,300
60,700
40,300
271,900
Total costs and expenses
585,300
609,900
2,225,700
2,385,600
Income from operations before income taxes
177,300
142,000
732,400
510,800
Income tax provision
49,100
28,200
202,300
182,800
Net income
$
128,200
$
113,800
$
530,100
$
328,000
Basic earnings per share available to common shareholders
$
1.54
$
1.31
$
6.24
$
3.75
Diluted earnings per share available to common shareholders
$
1.52
$
1.30
$
6.16
$
3.69
Wt. avg. common shares outstanding - basic
82,000
85,200
83,300
85,800
Wt. avg. common and common equivalent shares outstanding - diluted
83,100
86,000
84,400
87,300
Product Group Summary of Net Sales
(dollars in thousands, unaudited)
Quarter Ended December 31,
Twelve Months Ended December 31,
Constant
Constant
2012
2011
Change
Currency
2012
2011
Change
Currency
Vascular
$
212,000
$
220,700
-4
%
-2
%
$
845,000
$
842,400
-
3
%
Urology
195,800
190,400
3
%
3
%
757,800
734,800
3
%
4
%
Oncology
210,500
201,400
5
%
5
%
812,400
779,500
4
%
5
%
Surgical Specialties
121,300
116,600
4
%
4
%
455,100
450,000
1
%
2
%
Other
23,000
22,800
1
%
-
87,800
89,700
-2
%
-2
%
Net sales
$
762,600
$
751,900
1
%
$
2,958,100
$
2,896,400
2
%
Foreign exchange impact
(4,300
)
(34,100
)
Constant Currency
$
762,600
$
747,600
2
%
$
2,958,100
$
2,862,300
3
%
Reconciliation of Earnings
(dollars in millions except per share amounts, unaudited)
Quarter Ended December 31, 2012
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
$
287.6
$
213.0
$
52.7
$
21.3
$
49.1
$
128.2
$
1.52
Items that affect comparability of
results between periods:
Acquisition related items
(0.1
)
(0.8
)
(1.9
)
(0.3
)
0.3
2.8
Restructuring
-
-
-
(19.0
)
6.1
12.9
Total
(0.1
)
(0.8
)
(1.9
)
(19.3
)
6.4
15.7
0.19
Adjusted Basis
$
287.5
$
212.2
$
50.8
$
2.0
$
55.5
$
143.9
$
1.70
Quarter Ended December 31, 2011
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
$
282.1
$
214.2
$
43.6
$
60.7
$
28.2
$
113.8
$
1.30
Items that affect comparability of
results between periods:
Acquisition related items
-
(3.8
)
-
(4.1
)
1.0
6.9
Legal settlement
-
-
-
(51.0
)
10.2
40.8
Impairment of bonds
-
-
-
(4.5
)
-
4.5
Restructuring
-
-
-
1.1
(0.2
)
(0.9
)
Tax items
-
-
-
-
16.5
(16.5
)
Total
-
(3.8
)
-
(58.5
)
27.5
34.8
0.40
Adjusted Basis
$
282.1
$
210.4
$
43.6
$
2.2
$
55.7
$
148.6
$
1.70
Twelve Months Ended December 31, 2012
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
$
1,125.3
$
817.3
$
203.2
$
40.3
$
202.3
$
530.1
$
6.16
Items that affect comparability of
results between periods:
Acquisition related items
(0.2
)
(2.0
)
(5.1
)
(2.1
)
0.9
8.5
Asset impairments
-
-
-
(22.2
)
8.4
13.8
Restructuring
-
-
-
(17.4
)
5.6
11.8
Tax item
-
-
-
-
(1.1
)
1.1
Total
(0.2
)
(2.0
)
(5.1
)
(41.7
)
13.8
35.2
0.41
Adjusted Basis
$
1,125.1
$
815.3
$
198.1
$
(1.4
)
$
216.1
$
565.3
$
6.57
Twelve Months Ended December 31, 2011
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
$
1,097.3
$
794.6
$
185.4
$
271.9
$
182.8
$
328.0
$
3.69
Items that affect comparability of
results between periods:
Acquisition related items
0.4
(6.8
)
(3.5
)
(4.4
)
2.6
11.7
Legal settlements and commitments
-
-
-
(246.5
)
16.2
230.3
Impairment of bonds
-
-
-
(11.5
)
-
11.5
Restructuring
-
-
-
(7.8
)
2.8
5.0
Tax items
-
-
-
-
17.6
(17.6
)
Total
0.4
(6.8
)
(3.5
)
(270.2
)
39.2
240.9
2.71
Adjusted Basis
$
1,097.7
$
787.8
$
181.9
$
1.7
$
222.0
$
568.9
$
6.40
(1) Total per share amounts do not add due to rounding.
Notes to Reconciliation of Earnings
For the fourth quarter 2012, the following items affected the
comparability of results between periods: (i) charges of $3.1 million
pre-tax for acquisition related items including purchased research and
development, transaction costs, purchase accounting adjustments and
integration costs; and (ii) net charges of $19.0 million pre-tax for
restructuring costs. The net effect of these items decreased net
income by $15.7 million, or $0.19 diluted earnings per share available
to common shareholders.
For the fourth quarter 2011, the following items affected the
comparability of results between periods: (i) charges of $7.9 million
pre-tax for acquisition related items including transaction costs,
purchase accounting adjustments and integration costs; (ii) a charge
of $51.0 million pre-tax related to a preliminary legal settlement;
(iii) a charge of $4.5 million pre-tax for the impairment of Greek
bonds; (iv) a net reversal of $1.1 million pre-tax for restructuring
costs; and (v) a decrease of $16.5 million in the income tax provision
associated with audit settlements related to the completion of IRS
examinations for the tax years from 2005 through 2007 and certain
examinations in a foreign jurisdiction. The net effect of these items
decreased net income by $34.8 million, or $0.40 diluted earnings per
share available to common shareholders.
For the twelve months ended December 31, 2012, the following items
affected the comparability of results between periods: (i) charges of
$9.4 million pre-tax for acquisition related items including purchased
research and development, transaction costs, purchase accounting
adjustments and integration costs; (ii) charges of $22.2 million
pre-tax related to asset impairments; (iii) net charges of $17.4
million pre-tax for restructuring costs; and (iv) an increase of $1.1
million in the income tax provision due to the write-down of a tax
receivable in a foreign jurisdiction. The net effect of these items
decreased net income by $35.2 million, or $0.41 diluted earnings per
share available to common shareholders.
For the twelve months ended December 31, 2011, the following items
affected the comparability of results between periods: (i) charges of
$14.3 million pre-tax for acquisition related items including
purchased research and development, transaction costs, purchase
accounting adjustments and integration costs; (ii) charges of $246.5
million pre-tax related to legal settlements and commitments; (iii)
charges of $11.5 million pre-tax for the impairment of Greek bonds;
(iv) net charges of $7.8 million pre-tax for restructuring costs; and
(v) a decrease of $17.6 million in the income tax provision associated
with audit settlements related to the completion of IRS examinations
for the tax years from 2005 through 2007 and certain examinations in
other jurisdictions. The net effect of these items decreased net
income by $240.9 million, or $2.71 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 charges for 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 charges for acquisition related
items, asset impairments, legal settlements and commitments,
restructuring and impairment of bonds; (5) income tax provision
excluding an increase due to the write-down of a tax receivable in a
foreign jurisdiction, a decrease due to audit settlements, 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.
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 these 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,
2012
2011
2012
2011
Earnings per Share Numerator: GAAP Basis - basic and diluted
Net income
$
128,200
$
113,800
$
530,100
$
328,000
Less: Income allocated to participating securities (1)
2,200
2,000
10,000
6,100
Net income available to common shareholders
$
126,000
$
111,800
$
520,100
$
321,900
Earnings per Share Numerator: Adjusted Basis - diluted
Net income
$
143,900
$
148,600
$
565,300
$
568,900
Less: Income allocated to participating securities (1)
2,500
2,700
10,600
10,100
Net income available to common shareholders
$
141,400
$
145,900
$
554,700
$
558,800
Earnings per Share Denominator:
Wt. avg. common shares outstanding - basic
82,000
85,200
83,300
85,800
Wt. avg. common and common equivalent shares outstanding - diluted
83,100
86,000
84,400
87,300
Earnings per Share: GAAP Basis
Basic earnings per share available to common shareholders
$
1.54
$
1.31
$
6.24
$
3.75
Diluted earnings per share available to common shareholders
$
1.52
$
1.30
$
6.16
$
3.69
Earnings per Share: Adjusted Basis
Diluted earnings per share available to common shareholders
$
1.70
$
1.70
$
6.57
$
6.40
(1) Basic and diluted earnings per share available to common
shareholders is calculated using a numerator, which represents the
total of net income attributable to common shareholders less income
allocated to participating securities.
C. R. Bard, Inc. Investor Relations: Todd W.
Garner, 908-277-8065 Vice President, Investor
Relations or Media Relations: Scott
T. Lowry, 908-277-8365 Vice President and Treasurer
Press Release $BCR CR Bard Inc.
MURRAY HILL, N.J.--(BUSINESS WIRE)-- C. R. Bard, Inc. (NYSE: BCR) today reported 2012 fourth quarter financial results. Fourth quarter 2012 net sales were $762.6 million, an increase of 1 percent over the prior-year period on an as-reported basis. Excluding the impact of foreign exchange, fourth quarter 2012 net sales increased 2 percent over the prior-year period.
For the fourth quarter 2012, net sales in the U.S. were $498.1 million and net sales outside the U.S. were $264.5 million, a decrease of 1 percent and an increase of 6 percent, respectively, over the prior-year period. Excluding the impact of foreign exchange, fourth quarter 2012 net sales outside the U.S. increased 8 percent over the prior-year period.
Net sales for the full year 2012 were $2,958.1 million, an increase of 2 percent over the prior-year period. Excluding the impact of foreign exchange, full year 2012 net sales increased 3 percent over the prior-year period.
For the fourth quarter 2012, net income was $128.2 million and diluted earnings per share available to common shareholders were $1.52, an increase of 13 percent and 17 percent, respectively, as compared to fourth quarter 2011 results. Adjusting for items that affect comparability between periods as detailed in the tables below, fourth quarter 2012 net income was $143.9 million and diluted earnings per share available to common shareholders were $1.70, a decrease of 3 percent and unchanged, respectively, as compared to fourth quarter 2011 results.
For the full year 2012, net income was $530.1 million and diluted earnings per share available to common shareholders were $6.16, an increase of 62 percent and 67 percent, respectively, as compared to full year 2011 results. Adjusting for items that affect comparability between periods, full year 2012 net income was $565.3 million and diluted earnings per share available to common shareholders were $6.57, a decrease of 1 percent and an increase of 3 percent, respectively, as compared to full year 2011 results.
Timothy M. Ring, chairman and chief executive officer, commented, “While the near term environment remains challenging, especially in our developed markets, we are executing a strategy to return to faster growth through investments in emerging markets and new product categories. We believe the size of the opportunities in front of us and the capabilities of our organization have never been better, and we are investing to aggressively pursue these opportunities.”
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 September 30, 2012 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.
2012
2011
2012
2011
Items that affect comparability of
results between periods:
Notes to Reconciliation of Earnings
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 charges for 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 charges for acquisition related items, asset impairments, legal settlements and commitments, restructuring and impairment of bonds; (5) income tax provision excluding an increase due to the write-down of a tax receivable in a foreign jurisdiction, a decrease due to audit settlements, 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.
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 these 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)
C. R. Bard, Inc.
Investor Relations:
Todd W. Garner, 908-277-8065
Vice President, Investor Relations
or
Media Relations:
Scott T. Lowry, 908-277-8365
Vice President and Treasurer
Source: C. R. Bard, Inc.