CR Bard Inc. (NYSE:BCR) Q1 2015 Earnings Conference Call - Final Transcript

Apr 23, 2015 • 05:00 pm ET


CR Bard Inc. (NYSE:BCR) Q1 2015 Earnings Conference Call - Final Transcript


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Welcome to the C.R. Bard Inc. First Quarter 2015 Earnings Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Instructions will be given at that time. (Operator Instructions) As a reminder, this conference call is being recorded, and will be available for future on-demand replay through the Bard's website.

Today's presentation will be hosted by Timothy M. Ring, Chairman and Chief Executive Officer; along with John H. Weiland, President and Chief Operating Officer; Christopher S. Holland, Senior Vice President and Chief Financial Officer; and John A. DeFord, Senior Vice President, Science, Technology and Clinical Affairs. Also in attendance today is Todd W. Garner, Vice President, Investor Relations.

(Forward-Looking Cautionary Statements) At this time, I will turn the call over to Mr. Timothy Ring. Please go ahead, sir.

Timothy Ring

Thank you very much. I would like to welcome everybody to Bard's first quarter 2015 earnings call, and I thank all of you for taking the time to join us today. We would expect the presentation portion of the call to last about 25 minutes, and we are going to try to keep the total call to about an hour or less.

The discussion today will go as follows. I'll begin with an overview of the results for the first quarter. John Weiland, our President and COO, will review first quarter product line revenue. John DeFord, our Senior VP of Science, Technology and Clinical Affairs, will give you an update on our product development pipeline. Afterwards, Chris Holland, our Senior VP and CFO, will cover the first quarter income statement and balance sheet, as well as our expectations for Q2. And finally, we will close with Q&A.

First quarter 2015 net sales totaled $819.7 million. That's up 3% over Q1 last year and as-reported basis, and up 5% on a constant currency basis. The currency impact for the quarter versus last year was unfavorable by about 260 basis points. The quarterly royalty payment from Gore was $38.4 million, which represented slower growth than our product portfolio. So our organic revenue growth this quarter was about 5.3%, which was better than our guidance.

Net income for the first quarter was $139.8 million, and diluted earnings per share were $1.82. That's down 6% and 2% respectively, excluding certain items that affected the comparability of results between periods, which Chris will cover later. First quarter 2015 net income was $142.4 million, up 6%, and diluted adjusted earnings per share, which exclude amortization were $2.10, that's up 10%. This was also above our expectations, despite the additional headwind from currency, and represents a good start to what's an important year of execution for us.

Looking at revenue growth that geographically compared to the first quarter of last year, Q1 net sales in the U.S. grew 4% compared to a year-ago. On a constant currency basis, in Europe, we were up 1%, Japan was up 5%, and our other international businesses were up 18%. We saw strong sales