CR Bard (BCR) Q2 2012 Earnings Call July 25, 2012 5:00 pm ET Executives Timothy M. Ring - Chairman, Chief Executive Officer and Chairman of Executive Committee Christopher S. Holland - Chief Financial Officer and Senior Vice President John H. Weiland - President, Chief Operating Officer and Director John A. DeFord - Senior Vice President of Science, Technology & Clinical Affairs Analysts Jonathan J. Palmer - Credit Agricole Securities (USA) Inc., Research Division Lawrence S. Keusch - Raymond James & Associates, Inc., Research Division Matthew Taylor - Barclays Capital, Research Division Michael N. Weinstein - JP Morgan Chase & Co, Research Division Robert A. Hopkins - BofA Merrill Lynch, Research Division David R. Lewis - Morgan Stanley, Research Division Matthew J. Dodds - Citigroup Inc, Research Division Topher Orr - Goldman Sachs Group Inc., Research Division Thomas J. Gunderson - Piper Jaffray Companies, Research Division Kristen M. Stewart - Deutsche Bank AG, Research Division Matthew O'Brien - William Blair & Company L.L.C., Research Division Michael Matson - Mizuho Securities USA Inc., Research Division Joanne K. Wuensch - BMO Capital Markets U.S. Joshua T. Jennings - Cowen and Company, LLC, Research Division Presentation Operator
Previous Statements by BCR
» CR Bard's CEO Discusses Q1 2012 Results - Earnings Call Transcript
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» CR Bard Inc., 2012 Guidance/Update Call, Dec 20, 2011
Today, Bard's management will discuss some forward-looking statements, the accuracy of which are necessarily subject to risks and uncertainties. Please refer to the cautionary statement regarding forward-looking information in Bard's March 31, 2012, Form 10-Q and the information under the caption Risk Factors in Bard's 2011 10-K, including disclosure of factors that could cause actual results to differ materially from those expressed or implied.During the call, references will be made to certain non-GAAP measures, which management believes provide an additional and meaningful assessment of the core operating performance of the company and its individual products franchises. Reconciliations of non-GAAP measures to the most comparable GAAP measures are provided in Bard's earnings press release and on the company's website at www.crbard.com. All information that is not historical is given only as of July 25, 2012, and the company undertakes no responsibility to update any information. Unless otherwise noted, all comparisons are to the prior-year period. At this time, I will turn the call over to Mr. Timothy Ring. Please go ahead, sir. Timothy M. Ring Thanks, Tom. Good afternoon, everybody. I'd like to welcome you to Bard's Second Quarter 2012 Earnings Conference Call and thank all of you for taking the time to join us today. I would expect the presentation portion of the call to last about 30 minutes. I'd like to begin today by introducing Chris Holland. Chris joined us in May as our Senior VP and Chief Financial Officer, replacing Todd Schermerhorn, who, as you know, retired after 9 years of being in that role and 27 years in total at Bard. We all wish Todd the best in retirement, and I would like to publicly thank him for his passion, intellect and insight he brought to our organization. He certainly left some big shoes to fill and I have to tell you, I couldn't be happier with our choice. Although Chris has only been here a short time, a couple of months now, his many years of senior management experience at ARAMARK and his extensive background in medical devices at JPMorgan have prepared him well to contribute significantly from day 1. As you get the chance to meet him in the coming months, I'm confident that you will quickly see, as we have, that he's an exceptional leader who will help us successfully navigate the sizable opportunities and the challenges ahead of us. So Chris, welcome.
Christopher S. HollandThank you very much, Tim. Timothy M. Ring The discussion today will go as follows. I'll begin with an overview of the results for the second quarter of 2012. John Weiland, our President and COO, will go through the second quarter product line revenue results. Then you'll hear from Chris, who will review the second quarter income statement, balance sheet and our expectations for the third quarter. And then John DeFord, our Senior VP of Science, Technology and Clinical Affairs, will give you an update on our product development pipeline, and then we'll close with Q&A. Second quarter 2012 net sales totaled $742.6 million, up 2% over Q2 of last year on an as-reported basis and up 4% on a constant currency basis. Currency impact for the quarter versus the same quarter last year was unfavorable by about 170 basis points. Net income for the second quarter of 2012 was $133.9 million. Diluted EPS were $1.54. Excluding items that affected the comparability of results between the periods, which Chris will cover later, second quarter 2012 net income and diluted EPS were $140.5 million and $1.62, down 1% and up 3%, respectively. That's within our guidance for the quarter, albeit at the lower end and reflects the impact from the challenging macro environment and currency headwinds. As a reminder, in Q1, we did exceed the top end of our guidance by $0.04, and Chris will give you further context on how we view the back half of the year a little bit later. Looking at revenue growth geographically compared to Q2 last year, second quarter net sales in the U.S. increased 2% and once again, while internationally we grew 8% on a constant currency basis. Europe was a little weaker this quarter with a couple fewer sales bids compared to last year and grew 2% on constant currency basis. Japan had another strong quarter, growing 19% having some continued benefit from a competitor's quality issue in stents that we talked about last quarter. Our other international businesses grew 13% in constant currency, driven by 29% growth in our emerging markets. Read the rest of this transcript for free on seekingalpha.com