CR Bard Inc. (NYSE:BCR) Q2 2016 Earnings Conference Call - Final Transcript

Jul 26, 2016 • 05:00 pm ET

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CR Bard Inc. (NYSE:BCR) Q2 2016 Earnings Conference Call - Final Transcript

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Presentation
Operator
operator

Ladies and gentlemen, thank you for standing by. Welcome to the C.R. Bard, Inc. Second 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 Statement).

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 product franchises. Reconciliations of historical 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 26, 2016, 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.

Executive
Timothy Ring

Thank you, Kathy. Welcome to Bard's second quarter 2016 earnings call, and thanks for taking the time to join us today. I'd expect the presentation portion of the call to last about 25 minutes, and we're going to try and keep the total call to an hour. I'll also direct your attention to the slide deck that's available on the Investor Relations page of our website, which is intended to help explain some of the moving pieces in our results and guidance.

The discussion today will go as follows; I'll begin with an overview of the results for the second quarter of 2016; John Weiland, our President and COO, will review second quarter product line revenue; John DeFord, our Senior VP, Science, Technology and Clinical Affairs, will give you a brief update on our product pipeline; and then, Chris Holland, our Senior VP and CFO, will go over the second quarter income statement and balance sheet as well as our expectations for the third quarter and the remainder of the year; and then finally, we'll close with Q&A.

Second quarter 2016 net sales totaled $931.5 million. That's up 8% over Q2 of last year on an as-reported basis and up 9% on a constant currency basis. The currency impact for the quarter versus the same quarter last year was unfavorable by about 70 basis points.

The organic growth rate was approximately 6.4% this quarter, which exceeded our expectations. As we told you earlier, the prior year Q2 included the initial stocking of Lutonix by Boston Scientific. And when you factor that in,