Bard Announces Third Quarter Results

  Bard Announces Third Quarter Results

Business Wire

MURRAY HILL, N.J. -- October 23, 2012

C. R. Bard, Inc. (NYSE: BCR) today reported 2012 third quarter financial
results. Third quarter 2012 net sales were $722.9 million, an increase of
1percent over the prior-year period on a reported basis. Excluding the impact
of foreign exchange, third quarter 2012 net sales increased 3 percent over the
prior-year period.

For the third quarter 2012, net sales in the U.S. were $483.4 million, a
decrease of 1 percent from the prior-year period. Net sales outside the U.S.
were $239.5 million, an increase of 3 percent over the prior-year period on a
reported basis. Excluding the impact of foreign exchange, third quarter 2012
net sales outside the U.S. increased 11 percent over the prior-year period.

For the third quarter 2012, net income was $129.3 million and diluted earnings
per share available to common shareholders were $1.50, a decrease of 1 percent
and an increase of 3 percent, respectively, as compared to third quarter 2011
results. Adjusting for items that affect comparability between periods as
detailed in the tables below, third quarter 2012 net income was $141.4 million
and diluted earnings per share available to common shareholders were $1.64, a
decrease of 2 percent and an increase of 1 percent, respectively, as compared
to third quarter 2011 results.

Timothy M. Ring, chairman and chief executive officer, commented, “We
delivered adjusted earnings per share at the top end of our guidance range
this quarter, despite significant headwinds in the United States. Our
international investments are shifting the mix of our portfolio to faster
growing markets, which remains a key focus for us as we continue to improve
our growth profile by investing in geographic and product markets with
superior growth 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 June 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           Nine Months Ended
                             September 30,           September 30,
                             2012        2011        2012          2011
                                                                   
Net sales                    $ 722,900   $ 719,200   $ 2,195,500   $ 2,144,500
Costs and expenses
Cost of goods sold             272,600     274,900     837,700       815,200
Marketing, selling and         196,600     189,300     604,300       580,400
administrative expense
Research and development       52,200      46,900      150,500       141,800
expense
Interest expense               9,700       9,000       28,900        27,100
Other (income) expense,       13,600     17,000     19,000       211,200
net
                                                                   
Total costs and expenses      544,700    537,100    1,640,400    1,775,700
Income from operations        178,200    182,100    555,100      368,800
before income taxes
                                                                   
Income tax provision          48,900     52,000     153,200      154,600
                                                                   
Net income                   $ 129,300   $ 130,100   $ 401,900     $ 214,200
                                                                   
Basic earnings per share
available to common          $ 1.52      $ 1.48      $ 4.70        $ 2.44
shareholders
                                                                   
Diluted earnings per share
available to common          $ 1.50      $ 1.46      $ 4.64        $ 2.40
shareholders
                                                                   
Wt. avg. common shares         83,400      86,600      83,800        86,000
outstanding - basic
                                                                   
Wt. avg. common and common
equivalent shares              84,600      87,800      84,900        87,700
outstanding - diluted


Product Group Summary of Net Sales
(dollars in thousands, unaudited)
                                                                                          
              Quarter Ended September 30,                  Nine Months Ended September 30,
                                                 Constant                                          Constant
               2012       2011      Change  Currency  2012           2011        Change  Currency
Vascular      $ 202,500   $ 208,200     -3  %    1    %     $ 633,000     $ 621,700       2   %    4    %
Urology         188,100     182,200     3   %    5    %       562,000       544,400       3   %    4    %
Oncology        203,900     198,900     3   %    4    %       601,900       578,100       4   %    5    %
Surgical        107,700     107,600     -        2    %       333,800       333,400       -        1    %
Specialties
Other          20,700     22,300     -7  %    -6   %      64,800       66,900       -3  %    -3   %
                                                                                                   
Net sales     $ 722,900   $ 719,200    1   %               $ 2,195,500   $ 2,144,500    2   %
                                                                                                   
Foreign
exchange                  (16,000 )                                     (29,800   )
impact
Constant      $ 722,900   $ 703,200             3    %     $ 2,195,500   $ 2,114,700             4    %
Currency
                                                                                                        


Reconciliation of Earnings
(dollars in millions except per share amounts, unaudited)
                                                                                        
               Quarter Ended September 30, 2012
                                                                                               Diluted
                                                                                               Earnings
                           Marketing,                                                          per Share
               Cost of     Selling and      Research &    Other                                Available
               Goods       Administrative   Development   (Income)     Income                  to Common
               Sold        Expense          Expense       Expense,     Taxes       Net         Shareholders
                                                          Net                      Income
                                                                                               
GAAP Basis     $ 272.6     $    196.6       $   52.2      $ 13.6       $ 48.9      $ 129.3     $     1.50
Items that
affect
comparability
of
results
between
periods:
Acquisition      -              (1.1   )        (2.4  )     (1.0   )     0.4         4.1
related items
Asset           -            -             -         (13.2  )    5.2       8.0      
impairment
Total            -              (1.1   )        (2.4  )     (14.2  )     5.6         12.1            0.14
                                                                                         
Adjusted       $ 272.6    $    195.5      $   49.8     $ (0.6   )   $ 54.5     $ 141.4    $     1.64
Basis
                                                                                               
                                                                                               
               Quarter Ended September 30, 2011
                                                                                               Diluted
                                                                                               Earnings
                           Marketing,                                                          per Share
               Cost of     Selling and      Research &    Other                                Available
               Goods       Administrative   Development   (Income)     Income                  to Common
               Sold        Expense          Expense       Expense,     Taxes       Net         Shareholders
                                                          Net                      Income      (1)
                                                                                               
GAAP Basis     $ 274.9     $    189.3       $   46.9      $ 17.0       $ 52.0      $ 130.1     $     1.46
Items that
affect
comparability
of
results
between
periods:
Acquisition      (0.1  )        (2.1   )        (0.5  )     -            0.5         2.2
related items
Restructuring    -              -               -           (10.0  )     3.3         6.7
Impairment of    -              -               -           (7.0   )     -           7.0
bonds
Tax item        -            -             -         -          1.1       (1.1  )   
Total            (0.1  )        (2.1   )        (0.5  )     (17.0  )     4.9         14.8            0.17
                                                                                         
Adjusted       $ 274.8    $    187.2      $   46.4     $ -         $ 56.9     $ 144.9    $     1.62
Basis
                                                                                               
                                                                                               
               Nine Months Ended September 30, 2012
                                                                                               Diluted
                                                                                               Earnings
                           Marketing,                                                          per Share
               Cost of     Selling and      Research &    Other                                Available
               Goods       Administrative   Development   (Income)     Income                  to Common
               Sold        Expense          Expense       Expense,     Taxes       Net         Shareholders
                                                          Net                      Income
                                                                                               
GAAP Basis     $ 837.7     $    604.3       $   150.5     $ 19.0       $ 153.2     $ 401.9     $     4.64
Items that
affect
comparability
of
results
between
periods:
Acquisition      (0.1  )        (1.2   )        (3.2  )     (1.8   )     0.6         5.7
related items
Asset            -              -               -           (22.2  )     8.4         13.8
impairments
Restructuring    -              -               -           1.6          (0.5  )     (1.1  )
Tax item        -            -             -         -          (1.1  )    1.1      
Total            (0.1  )        (1.2   )        (3.2  )     (22.4  )     7.4         19.5            0.23
                                                                                         
Adjusted       $ 837.6    $    603.1      $   147.3    $ (3.4   )   $ 160.6    $ 421.4    $     4.87
Basis
                                                                                               
                                                                                               
               Nine Months Ended September 30, 2011
                                                                                               Diluted
                                                                                               Earnings
                           Marketing,                                                          per Share
               Cost of     Selling and      Research &    Other                                Available
               Goods       Administrative   Development   (Income)     Income                  to Common
               Sold        Expense          Expense       Expense,     Taxes       Net         Shareholders
                                                          Net                      Income      (1)
                                                                                               
GAAP Basis     $ 815.2     $    580.4       $   141.8     $ 211.2      $ 154.6     $ 214.2     $     2.40
Items that
affect
comparability
of
results
between
periods:
Acquisition      0.4            (3.0   )        (3.5  )     (0.3   )     1.6         4.8
related items
Legal
settlements      -              -               -           (195.5 )     6.0         189.5
and
commitments
Restructuring    -              -               -           (8.9   )     3.0         5.9
Impairment of    -              -               -           (7.0   )     -           7.0
bonds
Tax item        -            -             -         -          1.1       (1.1  )   
Total            0.4            (3.0   )        (3.5  )     (211.7 )     11.7        206.1           2.31
                                                                                         
Adjusted       $ 815.6    $    577.4      $   138.3    $ (0.5   )   $ 166.3    $ 420.3    $     4.70
Basis
                                                                                               
(1) Total per share amounts do not add due to rounding.


  *For the third quarter 2012, the following items affected the comparability
    of results between periods: (i) charges of $4.5 million pre-tax for
    acquisition related items including purchased research and development,
    transaction costs, which consisted primarily of legal costs, purchase
    accounting adjustments and integration costs; and (ii) a charge of $13.2
    million pre-tax related to an asset impairment. The net effect of these
    items decreased net income by $12.1 million, or $0.14 diluted earnings per
    share available to common shareholders.
  *For the third quarter 2011, the following items affected the comparability
    of results between periods: (i) charges of $2.7 million pre-tax for
    acquisition related items including purchased research and development,
    transaction costs, which consisted primarily of legal and valuation costs,
    and purchase accounting adjustments; (ii) net charges of $10.0 million
    pre-tax for restructuring; (iii) a charge of $7.0 million pre-tax for the
    impairment of Greek bonds; and (iv) a decrease of $1.1 million in the
    income tax provision due to an audit settlement. The net effect of these
    items decreased net income by $14.8 million, or $0.17 diluted earnings per
    share available to common shareholders.
  *For the nine months ended September 30, 2012, the following items affected
    the comparability of results between periods: (i) charges of $6.3 million
    pre-tax for acquisition related items including purchased research and
    development, transaction costs, which consisted primarily of legal costs,
    purchase accounting adjustments and integration costs; (ii) charges of
    $22.2 million pre-tax related to asset impairments; (iii) a reversal of
    $1.6 million pre-tax of 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 $19.5 million, or $0.23 diluted earnings per share
    available to common shareholders.
  *For the nine months ended September 30, 2011, the following items affected
    the comparability of results between periods: (i) charges of $6.4 million
    pre-tax for acquisition related items including purchased research and
    development, transaction costs, which consisted primarily of legal and
    valuation costs, purchase accounting adjustments and integration costs;
    (ii) charges of $195.5 million pre-tax related to legal settlements and
    commitments; (iii) net charges of $8.9 million pre-tax for restructuring;
    (iv) a charge of $7.0 million pre-tax for the impairment of Greek bonds;
    and (v) a decrease of $1.1 million in the income tax provision due to an
    audit settlement. The net effect of these items decreased net income by
    $206.1 million, or $2.31 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, and restructuring; (5) income tax provision
    excluding an increase due to the write-down of a tax receivable in a
    foreign jurisdiction, a decrease due to an audit settlement, 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             Nine Months Ended
                               September 30,             September 30,
                               2012       2011          2012       2011
Earnings per Share
Numerator: GAAP Basis -
basic and diluted
Net income                     $ 129,300   $ 130,100     $ 401,900   $ 214,200
Less: Income allocated to
participating securities        2,400      2,300        7,700      4,000
(1)
Net income available to        $ 126,900   $ 127,800     $ 394,200   $ 210,200
common shareholders
                                                                     
Earnings per Share
Numerator: Adjusted Basis
- diluted
Net income                     $ 141,400   $ 144,900     $ 421,400   $ 420,300
Less: Income allocated to
participating securities        2,500      2,600        8,000      8,000
(1)
Net income available to        $ 138,900   $ 142,300     $ 413,400   $ 412,300
common shareholders
                                                                     
Earnings per Share
Denominator:
Wt. avg. common shares           83,400      86,600        83,800      86,000
outstanding - basic
                                                                     
Wt. avg. common and common
equivalent shares                84,600      87,800        84,900      87,700
outstanding - diluted
                                                                     
Earnings per Share: GAAP
Basis
Basic earnings per share
available to common            $ 1.52      $ 1.48        $ 4.70      $ 2.44
shareholders
                                                                     
Diluted earnings per share
available to common            $ 1.50      $ 1.46        $ 4.64      $ 2.40
shareholders
                                                                     
Earnings per Share:
Adjusted Basis
Diluted earnings per share
available to common            $ 1.64      $ 1.62        $ 4.87      $ 4.70
shareholders


(1) Basic and diluted earnings per share available to common shareholders is
calculated using a numerator, which represents the total of net income less
income allocated to participating securities.

Contact:

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