Bard Announces First Quarter Results

C. R. Bard, Inc. (NYSE-BCR) today reported 2007 first quarter financial results. First quarter 2007 net sales were $528.2 million, an increase of 13 percent over the prior-year period. Excluding the impact of foreign exchange, first quarter 2007 net sales increased 11 percent over the prior-year period. For the first quarter 2007, net sales in the U.S. were $373.9 million and net sales outside the U.S. were $154.3 million, up 14 percent and 12 percent, respectively, over the prior-year period. Excluding the impact of foreign exchange, first quarter 2007 net sales outside the U.S. increased 6 percent over the prior-year period. In the first quarter 2007, the company completed its previously disclosed plan to withdraw from the synthetic bulking market and discontinue the sale of the Tegress™ synthetic bulking product, which was formerly reported in the Urology product group. Consequently, the company will account for this withdrawal as a discontinued operation for all periods referred to in this release. For the first quarter 2007, income from continuing operations was $101.6 million and diluted earnings per share from continuing operations were 95 cents, both up 25 percent as compared to first quarter 2006 results. Adjusting for certain items that affect comparability between periods, first quarter 2007 income from continuing operations and diluted earnings per share from continuing operations were both up 16 percent as compared to first quarter 2006 results. Adjustments to the first quarter 2006 results included an item detailed in the tables below that decreased net income by $6.3 million (after-tax), or 6 cents per diluted share. "We are pleased to begin Bard’s centennial year with a quarter of healthy revenue and earnings growth. Recent new product introductions and increased demand for many of our existing technologies helped drive solid net sales growth in each of our four businesses,” said Chairman and Chief Executive Officer Timothy M. Ring. "We continue to be pleased with the execution and productivity of our strategic growth initiatives. Looking ahead, we see ample opportunity to expand our investment in market-leading technologies.” 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, 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 our December 31, 2006 10-K/A 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. Condensed Consolidated Statements of Income (in thousands except per share amounts, unaudited)   Quarter Ended March 31, 2007  2006    Net sales $528,200  $465,900    Costs and expenses: Cost of goods sold 206,500  178,100  Marketing, selling & administrative expense 153,700  142,300  Research & development expense 30,100  38,300  Interest expense 2,900  4,700  Other (income) expense, net (7,400) (7,700) Total costs and expenses 385,800  355,700    Income from continuing operations before tax provision 142,400  110,200  Income tax provision 40,800  28,700    Income from continuing operations 101,600  81,500    Loss from discontinued operations, net of tax provision ---  (400)   Net income $101,600  $81,100    Basic earnings per share from continuing operations $0.98  $0.79  Basic loss per share from discontinued operations ---  ---  Basic earnings per share $0.98  $0.78    Diluted earnings per share from continuing operations $0.95  $0.76  Diluted earnings per share from discontinued operations ---  ---  Diluted earnings per share $0.95  $0.76    Wt. avg. common shares outstanding – basic 103,300  103,800    Wt. avg. common shares outstanding – diluted 106,700  107,000  Product Group Summary of Net Sales (in thousands, unaudited) Quarter Ended March 31, Constant 2007  2006  Change Currency Vascular $127,700  $113,700  12% 9% Urology 155,200  132,700  17% 15% Oncology 127,800  111,000  15% 14% Surgical Specialties 97,100  88,100  10% 9% Other 20,400  20,400  ---  -1%   Reported Sales $528,200  $465,900  13% FX Impact ---  8,100  Con. Currency $528,200  $474,000  11% Reconciliation of Income From Continuing Operations Comparison of Quarters Ended March 31, (in millions, except per share amounts, unaudited)   2007  Research &Development IncomeTaxProvision IncomefromContinuingOperations DilutedEarningsPer Share GAAP basis $30.1  $40.8  $101.6  $0.95    2006  Research &Development IncomeTaxProvision IncomefromContinuingOperations DilutedEarningsPer Share GAAP basis $38.3  $28.7  $81.5  $0.76  Items Impacting Comparability of Results Between Periods: Purchased research & development (10.4) 4.1  6.3  Total $(10.4) $4.1  $6.3  $0.06          Adjusted basis $27.9  $32.8  $87.8  $0.82  Notes to Condensed Consolidated Statements of Income For the first quarter of 2007, there were no items that met the criteria described below that affected the comparability of results between periods. For the first quarter of 2006, research and development expense included payments of approximately $10.4 million pretax ($6.3 million after-tax; $0.06 diluted earnings per share) for purchased research and development. This press release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP”). These non-GAAP financial measures are reconciled to their most directly comparable GAAP measures in the tables above. 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) research & development expense excluding payments for purchased research and development; (2) income tax provision excluding the tax effect of the item in (1) above; (3) income from continuing operations excluding the items set forth in (1) and (2) above; and (4) diluted earnings per share (EPS) excluding the items set forth in (1) and (2) above. The company excluded the items described above because they may cause certain statement of income 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 financial 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 financial information. Management compensates for these limitations by providing full disclosure of each non-GAAP financial measure and a reconciliation to the most directly comparable GAAP financial measure. All non-GAAP financial 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 tables above.