CR Bard Inc. (NYSE:BCR) Q4 2016 Earnings Conference Call - Final Transcript

Jan 26, 2017 • 05:00 pm ET


CR Bard Inc. (NYSE:BCR) Q4 2016 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. Welcome to C.R. Bard, Inc. Fourth 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 with instructions being 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 CEO, along with John H. Weiland, President and COO; Christopher S. Holland, SVP and CFO; and John A. DeFord, SVP, Science, Technology and Clinical Affairs. Also in attendance today is Todd W. Garner, VP, IR.

(Forward-Looking Cautionary Statements)

At this time, I will turn the call over to Mr. Timothy Ring. Please go ahead.

Timothy Ring

Thanks, Gary. I would like to welcome everyone to Bard's fourth quarter 2016 earnings 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 35 minutes. We have also placed a few slides on the IR page of our website to help you understand some of the moving pieces in our results and guidance.

The agenda today will go as follows. I will begin with an overview of the results for the fourth quarter of 2016. John Weiland, our President and COO, will review fourth quarter product line revenue. John DeFord, our Senior Vice President Science, Technology and Clinical Affairs, will give you an update on our product development pipeline.

And then, Chris Holland, our Senior VP and CFO, will review the fourth-quarter income statement, balance sheet, and provide our financial guidance for 2017. And then, finally, we will close with Q&A.

So looking at the fourth quarter, net sales totalled $967.1 million. That is up 11% on an as reported basis and 12% up on a constant currency basis over the fourth quarter of last year, which exceeded the guidance we gave you heading into the quarter.

The currency impact for the quarter versus the prior year was unfavorable by 100 basis points. On an organic basis, we grew 6.9% in Q4. We, again, have provided a summary of these quarterly revenue results on slide 3 of the deck provided on the website. Net sales for the full-year 2016 were $3.7 billion. That is up 9% as reported and up 10% on a constant currency basis compared to our original guidance last January of 6% to 8% constant currency growth for the full year.

When we look at each of the businesses on a constant currency revenue growth basis, one business performed near the top of our guidance for the year, and the other three all performed above the range we provided with two of those well above the range. This broad strength across the portfolio contributed to 7% organic growth for the full year compared to our original guidance of 5% to 6%.

2016 was an outstanding year of sales execution