CR Bard Inc. (NYSE:BCR) Q1 2016 Earnings Conference Call - Final Transcript

Apr 27, 2016 • 05:00 pm ET


CR Bard Inc. (NYSE:BCR) Q1 2016 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. Welcome to the C.R. Bard, Inc. First Quarter 2016 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 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 M. Ring

Thank you. Good afternoon and welcome to Bard's first quarter 2016 earnings conference call, and thanks to 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, and we're going to try and keep the total call to about an hour. There is a slide deck available on the Investor Relations page of our website intended to help explain some of the moving pieces in our results and guidance.

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

First quarter 2016 net sales totaled $873.5 million. That's up 7% over the first quarter last year on an as-reported basis and up 8.5% on a constant currency basis. The currency impact for the quarter versus the same quarter last year was unfavorable by about 190 basis points. Our organic revenue growth this quarter was 9%, which was significantly better than our guidance of 5.5% to 6%. Net income for the first quarter was $116.2 million and diluted earnings per share were $1.54, that's down 17% and 15% respectively.

Excluding amortization and certain items that affected the comparability results between periods, which Chris will cover later, first quarter 2016 net income and diluted earnings per share were $177 million and $2.34; that's up 10% and 11%, respectively. This was also significantly above our expectations and represents a pretty good start to the year.

Looking at our revenue growth, geographically, compared to the same quarter last year, first quarter net sales in the U.S. grew 9% compared to a year ago. On a constant currency basis, in Europe, we were up 5%, Japan was