CR Bard (BCR) Q4 2010 Earnings Call January 31, 2011 5:00 pm ET Executives John Weiland - President, Chief Operating Officer and Director Timothy Ring - Chairman, Chief Executive Officer and Chairman of Executive Committee Todd Schermerhorn - Chief Financial Officer and Senior Vice President John DeFord - Senior Vice President of Science Technology & Clinical Affairs Eric Shick - Vice President of Investor Relations Analysts Matthew Dodds - Citigroup Inc David Roman - Goldman Sachs Group Inc. Robert Hopkins Michael Weinstein - JP Morgan Chase & Co Douglas Tsao - Barclays Capital Matthew O'Brien - William Blair & Company L.L.C. Kristen Stewart - Deutsche Bank AG Thomas Gunderson - Piper Jaffray Companies Frederick Wise - Leerink Swann LLC David Lewis - Morgan Stanley Robert Goldman - CL King & Associates, Inc Paul Choi - Caris & Company Lawrence Keusch - Morgan Keegan & Company, Inc. Joanne Wuensch - BMO Capital Markets U.S. Presentation Operator
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Timothy RingThank you. Good afternoon, everybody. I'd like to welcome you all to Bard's fourth quarter 2010 earnings call. We expect the presentation portion of this call will last about 25 minutes. The agenda today will go as follows: I'll begin with an overview of the results for the fourth quarter; John Weiland, our President and COO, will review fourth quarter product line revenue; Todd Schemerhorn, our Senior VP and CFO, will review the fourth quarter income statement, balance sheet, as well as our expectations for the first quarter. And since we've just covered our product development pipeline in depth at our December 13 analyst meeting, we'll wait until our first quarter earnings call to give you a detailed update on those projects. And then finally, we'll close with a Q&A. Fourth quarter 2010 net sales totaled $717.1 million. That's up 6% over Q4 of last year on an as reported basis and 7% on a constant currency basis. The currency impact for the quarter versus the Q4 was unfavorable by 100 basis points. Our net sales for the full year 2010 were $2,720,200,000, up 7% on both an as reported and a constant currency basis. Net income for the fourth quarter was $136.2 million and diluted EPS were $1.47. Excluding items that affected the comparability results between periods, which Todd will cover later, fourth quarter 2010 net income and diluted EPS were $143.4 million and $1.54, up 5% and 11% respectively. EPS for the quarter versus our guidance benefited from the true up of our tax rate for the last minute retroactive renewal of the R&D tax credit, and Todd will cover this again later. Full year 2010 net income was $509.2 million. Diluted EPS were $5.32. Excluding items that again affect comparability between periods, full year 2010 net income was $535.7 million and diluted EPS were $5.60, up 5% and 10% respectively over 2009 results.
Looking at our revenue growth geographically compared to the fourth quarter of 2009, again on a constant currency basis, net sales in the U.S. increased 6%. Europe was up 5%. Japan, we were down 3% versus the prior year period, following a particularly strong Q3 as sales into our joint venture there tend to be somewhat variable from period to period. Our other international businesses had a very strong quarter, growing 22%, including 43% in our emerging markets, which now represent about 4% of our global revenue. We define our emerging markets as Central and South America and Asia, excluding Japan. We are rapidly expanding our presence in China, which is helping fuel our growth in emerging markets. In fact, over the last two years, we've expanded our headcount there by four-fold. We're also making selective investments in several other countries in our emerging markets.The business development has been discussed at our analyst meeting last month. During Q4, we closed the Romadex [ph] (14:48) transaction, acquiring the Sapiens TCS tip confirmation system. Beyond that, we acquired technology that we plan to use in the development of a next generation cranial repairing implant. Looking back on 2010, we did 10 deals, ranging from technology acquisitions to the SenoRx transaction. And looking ahead, we have a number of potential product and technology deals in our business development pipeline. As Todd discussed when he laid out the recash [ph] (15:18) transaction at our analyst meeting, what's important here is our strategic objectives remain unchanged and most importantly, our commitment to strategic acquisitions remains a top priority. Let me now turn you over to John Weiland for a review of our product line revenue Read the rest of this transcript for free on seekingalpha.com