C.R. Bard Inc. (BCR, Financial) filed Quarterly Report for the period ended 2009-06-30.
C.R. Bard Inc. is one of the worldwide leaders in developing manufacturing and supplying healthcare products that focus on Vascular Urology and Oncology Disease States. In addition Bard offers a complete line of advanced Surgical Specialty products and services that address needs in hernia repair performance irrigation hemostasis and other areas. C.R. Bard Inc. has a market cap of $7.05 billion; its shares were traded at around $71 with a P/E ratio of 15.1 and P/S ratio of 2.9. The dividend yield of C.R. Bard Inc. stocks is 1%. C.R. Bard Inc. had an annual average earning growth of 14.5% over the past 10 years. GuruFocus rated C.R. Bard Inc. the business predictability rank of 3-star.
On April 22, 2009, the company announced a plan (the Plan) to reduce its overall cost structure and improve efficiency. The Plan included the consolidation of certain businesses in the United States and the realignment of certain sales and marketing functions outside the United States. The Plan resulted in the elimination of certain positions and other employee terminations worldwide. The company recorded one-time termination costs of $5.6 million ($3.7 million after tax) in the second quarter of 2009. Activities under the Plan were substantially complete as of June 30, 2009, with the total pre-tax cost of $15.4 million ($10.2 million after tax). Substantially all of these costs are cash expenditures that are related to separation and other employee termination benefits of which the majority are expected to be paid by the end of 2009. The company expects the Plan to result in pre-tax cost savings of approximately $25 million on an annual basis. See Note 3 of the notes to condensed consolidated financial statements for additional discussion of the restructuring.
$617.1 million. Bards consolidated net sales for the six months ended June 30, 2009 were $1,221.0 million, an increase of 2% on a reported basis (6% on a constant currency basis) over consolidated net sales of $1,201.1 million for the six months ended June 30, 2008. Net sales on a constant currency basis is a non-GAAP financial measure and should not be viewed as a replacement of GAAP results. See Managements Use of Non-GAAP Measures below.
Bards United States net sales for the quarter ended June 30, 2009 of $433.6 million increased 7% compared to $406.3 million in the prior year quarter. International net sales for the quarter ended June 30, 2009 of $191.0 million decreased 9% on a reported basis (increased 5% on a constant currency basis) compared to $210.8 million in the prior year quarter. Bards United States net sales for the six months ended June 30, 2009 of $856.1 million increased 6% compared to $805.5 million in the prior year period. International net sales for the six months ended June 30, 2009 of $364.9 million decreased 8% on a reported basis (increased 6% on a constant currency basis) compared to $395.6 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. All research and development costs are expensed as incurred. For the quarter ended June 30, 2009, the company spent $41.7 million on research and development activities compared to $38.2 million in the prior year quarter. For the six months ended June 30, 2009, the company spent $78.1 million on research and development activities compared to $124.0 million in the prior year period. A purchased R&D charge of $2.3 million was included for the quarter and six months ended June 30, 2009. A purchased R&D charge of $49.3 million primarily associated with the acquisition of the LifeStent® family of stents from Edwards Lifesciences was included for the six months ended June 30, 2008.
Net income attributable to common shareholders and diluted earnings per share available to common shareholders for the second quarter of 2009 were $112.2 million and $1.11, respectively. Net income attributable to common shareholders and diluted earnings per share available to common shareholders for the prior year second quarter were $77.9 million and $0.76, respectively. Net income attributable to common shareholders and diluted earnings per share available to common shareholders for the six months ended June 30, 2009 were $224.7 million and $2.22 per diluted share. Net income attributable to common shareholders and diluted earnings per share available to common shareholders for the six months ended June 30, 2008 were $155.9 million and $1.51 per diluted share. The current year quarter reflects a restructuring charge of $3.7 million, or $0.04 per diluted share. In addition, the current periods reflect a non-cash charge related to an asset write-off of $5.2 million, or $0.05 per diluted share, and acquisition related adjustments, primarily consisting of purchased R&D charges, of $3.1 million, or $0.03 per diluted share. The current year-to-date period reflects restructuring charges of $10.2 million, or $0.10 per diluted share. The prior year periods include a non-cash charge for the write-off of assets related to the Salute II hernia fixation device of $34.9 million, or $0.34 per diluted share. The prior year-to-date period also reflects purchased R&D charges of $31.1 million, or $0.30 per diluted share, primarily associated with the acquisition of the assets of the Lifestent® family of stents from Edwards Lifesciences.
Read the The complete ReportBCR is in the portfolios of Richard Aster Jr of Meridian Fund, Ken Heebner of CAPITAL GROWTH MANAGEMENT LP.
C.R. Bard Inc. is one of the worldwide leaders in developing manufacturing and supplying healthcare products that focus on Vascular Urology and Oncology Disease States. In addition Bard offers a complete line of advanced Surgical Specialty products and services that address needs in hernia repair performance irrigation hemostasis and other areas. C.R. Bard Inc. has a market cap of $7.05 billion; its shares were traded at around $71 with a P/E ratio of 15.1 and P/S ratio of 2.9. The dividend yield of C.R. Bard Inc. stocks is 1%. C.R. Bard Inc. had an annual average earning growth of 14.5% over the past 10 years. GuruFocus rated C.R. Bard Inc. the business predictability rank of 3-star.
Highlight of Business Operations:
On June 15, 2009, the company acquired worldwide rights and related assets of the hernia products business of Brennen Medical, LLC for $17.0 million. The acquisition includes technology for a non-crosslinked xenograft device, which expands Bards product offerings in hernia repair. In connection with this acquisition, the company decided to discontinue the sale of an existing xenograft device by the end of 2009 and recorded a related non-cash charge of $5.7 million ($5.2 million after tax). See Note 2 of the notes to condensed consolidated financial statements for additional discussion of the acquisition.On April 22, 2009, the company announced a plan (the Plan) to reduce its overall cost structure and improve efficiency. The Plan included the consolidation of certain businesses in the United States and the realignment of certain sales and marketing functions outside the United States. The Plan resulted in the elimination of certain positions and other employee terminations worldwide. The company recorded one-time termination costs of $5.6 million ($3.7 million after tax) in the second quarter of 2009. Activities under the Plan were substantially complete as of June 30, 2009, with the total pre-tax cost of $15.4 million ($10.2 million after tax). Substantially all of these costs are cash expenditures that are related to separation and other employee termination benefits of which the majority are expected to be paid by the end of 2009. The company expects the Plan to result in pre-tax cost savings of approximately $25 million on an annual basis. See Note 3 of the notes to condensed consolidated financial statements for additional discussion of the restructuring.
$617.1 million. Bards consolidated net sales for the six months ended June 30, 2009 were $1,221.0 million, an increase of 2% on a reported basis (6% on a constant currency basis) over consolidated net sales of $1,201.1 million for the six months ended June 30, 2008. Net sales on a constant currency basis is a non-GAAP financial measure and should not be viewed as a replacement of GAAP results. See Managements Use of Non-GAAP Measures below.
Bards United States net sales for the quarter ended June 30, 2009 of $433.6 million increased 7% compared to $406.3 million in the prior year quarter. International net sales for the quarter ended June 30, 2009 of $191.0 million decreased 9% on a reported basis (increased 5% on a constant currency basis) compared to $210.8 million in the prior year quarter. Bards United States net sales for the six months ended June 30, 2009 of $856.1 million increased 6% compared to $805.5 million in the prior year period. International net sales for the six months ended June 30, 2009 of $364.9 million decreased 8% on a reported basis (increased 6% on a constant currency basis) compared to $395.6 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. All research and development costs are expensed as incurred. For the quarter ended June 30, 2009, the company spent $41.7 million on research and development activities compared to $38.2 million in the prior year quarter. For the six months ended June 30, 2009, the company spent $78.1 million on research and development activities compared to $124.0 million in the prior year period. A purchased R&D charge of $2.3 million was included for the quarter and six months ended June 30, 2009. A purchased R&D charge of $49.3 million primarily associated with the acquisition of the LifeStent® family of stents from Edwards Lifesciences was included for the six months ended June 30, 2008.
Net income attributable to common shareholders and diluted earnings per share available to common shareholders for the second quarter of 2009 were $112.2 million and $1.11, respectively. Net income attributable to common shareholders and diluted earnings per share available to common shareholders for the prior year second quarter were $77.9 million and $0.76, respectively. Net income attributable to common shareholders and diluted earnings per share available to common shareholders for the six months ended June 30, 2009 were $224.7 million and $2.22 per diluted share. Net income attributable to common shareholders and diluted earnings per share available to common shareholders for the six months ended June 30, 2008 were $155.9 million and $1.51 per diluted share. The current year quarter reflects a restructuring charge of $3.7 million, or $0.04 per diluted share. In addition, the current periods reflect a non-cash charge related to an asset write-off of $5.2 million, or $0.05 per diluted share, and acquisition related adjustments, primarily consisting of purchased R&D charges, of $3.1 million, or $0.03 per diluted share. The current year-to-date period reflects restructuring charges of $10.2 million, or $0.10 per diluted share. The prior year periods include a non-cash charge for the write-off of assets related to the Salute II hernia fixation device of $34.9 million, or $0.34 per diluted share. The prior year-to-date period also reflects purchased R&D charges of $31.1 million, or $0.30 per diluted share, primarily associated with the acquisition of the assets of the Lifestent® family of stents from Edwards Lifesciences.
Read the The complete ReportBCR is in the portfolios of Richard Aster Jr of Meridian Fund, Ken Heebner of CAPITAL GROWTH MANAGEMENT LP.