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C.R. Bard Inc. Reports Operating Results (10-Q)

July 27, 2010 | About:
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10qk

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C.R. Bard Inc. (BCR) filed Quarterly Report for the period ended 2010-06-30.

C.r. Bard Inc. has a market cap of $7.47 billion; its shares were traded at around $78.55 with a P/E ratio of 14.7 and P/S ratio of 2.9. The dividend yield of C.r. Bard Inc. stocks is 0.9%. C.r. Bard Inc. had an annual average earning growth of 15.7% over the past 10 years. GuruFocus rated C.r. Bard Inc. the business predictability rank of 5-star.BCR is in the portfolios of Donald Yacktman of Yacktman Asset Management Co., Chris Shumway of Shumway Capital Partners LLC, Pioneer Investments, Jeremy Grantham of GMO LLC, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC, Chuck Royce of Royce& Associates.

Highlight of Business Operations:

On July 6, 2010, the company acquired all of the outstanding stock of SenoRx, Inc. (SenoRx) for a purchase price of $11.00 per share in cash, totaling approximately $213 million. SenoRx was a public company engaged in the manufacture and sale of minimally-invasive medical devices used in the percutaneous diagnosis and treatment of breast cancer. SenoRxs products expand Bards existing biopsy product portfolio to include the EnCor® stereotactic-guided and MRI-guided breast biopsy systems, the Gel Mark® line of breast tissue markers and the Contura® balloon catheter for the treatment of breast cancer. Substantially all of the purchase price for the acquisition was funded through the issuance of commercial paper.

Bards United States net sales for the quarter ended June 30, 2010 of $464.9 million increased 7% compared to $433.6 million in the prior year quarter. International net sales for the quarter ended June 30, 2010 of $209.0 million increased 9% on a reported basis (6% on a constant currency basis) compared to $191.0 million in the prior year quarter. Bards United States net sales for the six months ended June 30, 2010 of $919.4 million increased 7% compared to $856.1 million in the prior year period. International net sales for the six months ended June 30, 2010 of $405.3 million increased 11% on a reported basis (5% on a constant currency basis) compared to the $364.9 million in the prior year period.

Research and development expense - Research and development expense consists principally of costs related to internal research and development activities, milestone payments for third-party research and development activities, and purchased R&D costs arising from the companys business development activities. Purchased R&D payments may impact the comparability of the companys results of operations between periods. A purchased R&D charge of $0.5 million was recorded for the quarter and six months ended June 30, 2010. A purchased R&D charge of $2.3 million was recorded for the quarter and six months ended June 30, 2009. Research and development expense for the quarter ended June 30, 2010 was $45.1 million, an increase of approximately 8% compared to the prior year quarter. Research and development expense for the six months ended June 30, 2010 was $85.7 million, an increase of approximately 10% compared to the prior year period.

Interest expense - Interest expense was $2.8 million and $3.0 million for the quarters ended June 30, 2010 and 2009, respectively. Interest expense was $5.7 million and $6.0 million for the six months ended June 30, 2010 and 2009, respectively.

Net income attributable to common shareholders and diluted earnings per share available to common shareholders for the prior year quarter was $112.2 million and $1.11, respectively. The current year quarter reflects acquisition related items, consisting of transaction costs (primarily legal and valuation costs), integration costs and purchase accounting adjustments of $5.6 million, or $0.06 per diluted share. The current year quarter also reflects bad debt expense of $3.8 million or $0.04 per diluted share related to the write-down of accounts receivable in Greece. The prior year quarter reflects acquisition related items, primarily consisting of a purchased R&D charge, of $3.1 million, or $0.03 per diluted share. The prior year quarter also reflects a restructuring charge of $3.7 million, or $0.04 per diluted share and a non-cash charge related to an asset write-off of $5.2 million, or $0.05 per diluted share.

The company reported net income attributable to common shareholders and diluted earnings per share available to common shareholders for the six months ended June 30, 2010 of $245.5 million and $2.53, respectively. Net income attributable to common shareholders and diluted earnings per share available to common shareholders for the six months ended June 30, 2009 was $224.7 million and $2.22, respectively. The current year to date period reflects acquisition related items, consisting of transaction costs (primarily legal and valuation costs), integration costs and purchase accounting adjustments of $7.1 million, or $0.07 per diluted share and the prior year to date period reflects acquisition related items, primarily consisting of a purchased R&D charge, of $3.1 million, or $0.03 per diluted share. The current year six month period also reflects bad debt expense of $3.8 million or $0.04 per diluted share related to the write-down of accounts receivable in Greece. The prior six month period also reflects restructuring charges of $10.2 million, or $0.10 per diluted share and a non-cash charge related to an asset write-off of $5.2 million, or $0.05 per diluted share.

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