Bio-Rad Reports First-Quarter 2010 Financial Results
HERCULES, CA -- (Marketwire)
05/04/10
Bio-Rad Laboratories, Inc. (NYSE: BIO) and
(NYSE: BIO.B), a multinational manufacturer and distributor of life science
research and clinical diagnostic products, announced financial results
today for the first quarter ended March 31, 2010.
First-quarter reported revenues were $454.2 million, up 13.3% compared to
$400.9 million reported for the first quarter of 2009. On a
currency-neutral basis, quarterly revenues increased 7.9% compared to the
same period last year. This increase was due to a combination of organic
growth across Bio-Rad's two main areas, Life Science and Clinical
Diagnostics, and the addition of certain diagnostics businesses of Biotest
AG to the Company's portfolio in the first quarter of 2010 that resulted in
additional revenue in the first quarter of $12.7 million. Excluding the
revenue from the Biotest acquisition, first-quarter revenues were up 10.1%
or 4.9% on a currency neutral basis, compared to the same period last year.
Net income attributable to Bio-Rad for the first quarter of 2010 was $34.9
million, or $1.24 per share on a fully diluted basis compared to $1.10 per
share, during the same period last year. First-quarter gross margin was
56.6% compared to 57.1% during the same quarter last year.
"Performance so far this year reflects strength across many of our product
areas," said Norman Schwartz, Bio-Rad President and Chief Executive
Officer. "During the first quarter we were pleased to add the new
diagnostics businesses to our operation. As the year continues, we will
focus on the seamless integration of these new products into our
organization and look for other opportunities to invest in our future."
Life Science
The Life Science segment net sales for the first quarter were $151.4
million, up 7.9% compared to the same period last year. On a
currency-neutral basis, Life Science segment sales increased by 3.4%. The
core Life Science product lines, excluding the impact from the BSE (bovine
spongiform encephalopathy) product line, grew at 9.7% compared to the same
period last year, or 5.3% on a currency-neutral basis. Performance in the
Life Science segment during the first quarter benefited from sales of the
ProteOn? protein interaction array system as well as the Company's next
generation PCR instruments, in particular, the CFX96? real-time thermal
cycler.
Bio-Rad's Mini-PROTEAN® TGX precast electrophoresis gel product line,
which launched in March, is gaining rapid customer acceptance by offering
ultra-fast time to results, high resolution, and extended shelf life. Also
in March, the Company introduced its TC10? automated cell counter, which
accurately provides total mammalian cell counts in 30 seconds or less,
providing a simple, rapid, and reproducible alternative to researchers who
manually count cells under the microscope using a hemocytometer.
Clinical Diagnostics
The Clinical Diagnostics segment reported net sales of $299.8 million for
the first quarter, up 16.4% compared to the prior-year quarter. On a
currency-neutral basis, net sales were up 10.5%. Excluding revenue from the
Biotest acquisition, net sales were up 11.5%, or 5.8% on a currency-neutral
basis, from the same period last year. These gains were largely due to
growth across all product line most notably quality controls, blood typing,
and diabetes monitoring. During the first quarter, Bio-Rad acquired
certain diagnostics businesses from Biotest AG, including its diagnostics
products in the areas of blood transfusion testing, transplantation, and
infectious diseases. Also during the quarter, Bio-Rad announced the launch
of an anti-CCP test for markets outside the U.S. The assay runs on
Bio-Rad's BioPlex® 2200 system and measures anti-CCP (anti-cyclic
citrullinated peptide antibodies), a novel marker that has been shown to
have superior specificity in the diagnosis of rheumatoid arthritis.
Management will discuss these results in a conference call at 2 PM Pacific
Time (5 PM Eastern Time) May 4, 2010. Interested parties may access the
call by dialing 800-599-9829 (in the U.S.) or 617-847-8703 (international),
access number 91876357.
A live webcast of the conference call may be accessed in the "Investor
Relations" section of www.bio-rad.com. A replay of the call will be
available at 888-286-8010 (in the U.S.) or 617-801-6888 (international),
access number 68368901, for seven days following the call. The webcast of
the call will be archived on the Bio-Rad site for on-demand replay for up
to a year and may be accessed in the "Investor Relations" section of
www.bio-rad.com.
Internal Investigation
The Company disclosed today that, based on an internal review by the
Company, the Company has identified conduct in certain of our overseas
operations that may have violated the anti-bribery provisions of the United
States Foreign Corrupt Practices Act ("FCPA"), the FCPA's books and records
and internal controls provisions, and the Company's own internal policies.
The Company has not assessed at this time whether any of the activities in
question violated the laws of the foreign jurisdictions in which they took
place. In May 2010, the Company voluntarily disclosed these matters to the
U.S. Department of Justice ("DOJ") and the Securities and Exchange
Commission ("SEC"). The Audit Committee of the Board of Directors has
assumed direct responsibility for reviewing these matters and has hired
experienced counsel to conduct an investigation and provide legal advice.
The Company intends to provide additional information to the DOJ and the
SEC as the Audit Committee's investigation progresses.
The Company is presently unable to predict the duration, scope, or result
of the Audit Committee's investigation, of any investigations by the DOJ or
the SEC or whether either agency will commence any legal action. The
outcome of any of the foregoing actions could have a material adverse
effect on our business.
About Bio-Rad
Bio-Rad Laboratories, Inc. (NYSE: BIO) and (NYSE: BIO.B), has remained at
the center of scientific discovery for more than 50 years, manufacturing
and distributing a broad range of products for the life science research
and clinical diagnostic markets. The Company is renowned worldwide among
hospitals, universities, major research institutions, as well as
biotechnology and pharmaceutical companies for its commitment to quality
and customer service. Founded in 1952, Bio-Rad is headquartered in
Hercules, California, and serves more than 85,000 research and industry
customers worldwide through its global network of operations. The Company
employs over 6,800 people globally and had revenues of nearly $1.8 billion
in 2009. For more information, visit www.bio-rad.com.
This release contains certain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995 and Section 21E of
the Securities Exchange Act of 1934. Forward-looking statements generally
can be identified by the use of forward-looking terminology such as,
"believe," "expect," "may," "will," "intend," "estimate," "continue," or
similar expressions or the negative of those terms or expressions. Such
statements involve risks and uncertainties, which could cause actual
results to vary materially from those expressed in or indicated by the
forward-looking statements. For further information regarding the Company's
risks and uncertainties, please refer to the "Risk Factors" in the
Company's public reports filed with the Securities and Exchange Commission,
including the Company's most recent Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K. The Company cautions
you not to place undue reliance on forward-looking statements, which
reflect an analysis only and speak only as of the date hereof. Bio-Rad
Laboratories, Inc., disclaims any obligation to update these
forward-looking statements.
Bio-Rad Laboratories, Inc.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(UNAUDITED)
Three Months Ended
March 31,
--------------------------
2010 2009
------------ ------------
Net sales $ 454,234 $ 400,933
Cost of goods sold 197,107 172,031
------------ ------------
Gross profit 257,127 228,902
Selling, general and administrative expense 153,617 140,313
Product research and development expense 40,263 37,152
------------ ------------
Income from operations 63,247 51,437
Interest expense 14,444 7,807
Foreign exchange gains, net (217) (774)
Other (income) expense, net (799) 1,159
------------ ------------
Income before taxes 49,819 43,245
Provision for income taxes (14,427) (11,202)
------------ ------------
Net income including noncontrolling interests 35,392 32,043
Less: Net income attributable to
noncontrolling interests (531) (1,778)
------------ ------------
Net income attributable to Bio-Rad $ 34,861 $ 30,265
============ ============
Basic earnings per share:
Net income attributable to Bio-Rad $ 1.27 $ 1.11
============ ============
Weighted average common shares 27,545 27,321
============ ============
Diluted earnings per share:
Net income attributable to Bio-Rad $ 1.24 $ 1.10
============ ============
Weighted average common shares 28,072 27,618
============ ============
Bio-Rad Laboratories, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(UNAUDITED)
March 31, December 31,
2010 2009
------------- -------------
Current assets:
Cash and cash equivalents $ 598,134 $ 649,938
Short-term investments 93,648 94,876
Accounts receivable, net 344,989 345,734
Inventories, net 380,707 351,206
Other current assets 125,809 120,920
------------- -------------
Total current assets 1,543,287 1,562,674
Property, plant and equipment, net 313,549 302,417
Goodwill, net 335,085 327,626
Purchased intangibles, net 213,342 204,779
Other assets 141,609 138,357
------------- -------------
Total assets $ 2,546,872 $ 2,535,853
============= =============
Current liabilities:
Accounts payable $ 99,160 $ 92,988
Accrued payroll and employee benefits 106,261 126,702
Notes payable and current maturities of
long-term debt 5,104 5,132
Income and other taxes payable 41,881 42,322
Other current liabilities 145,764 152,828
------------- -------------
Total current liabilities 398,170 419,972
Long-term debt, net of current maturities 738,662 737,919
Other long-term liabilities 109,117 98,749
------------- -------------
Total liabilities 1,245,949 1,256,640
Bio-Rad stockholders' equity 1,282,187 1,259,726
Noncontrolling interests 18,736 19,487
------------- -------------
Total stockholders' equity 1,300,923 1,279,213
------------- -------------
Total liabilities and stockholders'
equity $ 2,546,872 $ 2,535,853
============= =============
Bio-Rad Laboratories, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(UNAUDITED)
Three Months
Ended March 31,
2010 2009
------------ ------------
Cash flows from operating activities:
Cash received from customers $ 445,669 $ 395,356
Cash paid to suppliers and employees (389,505) (375,628)
Interest paid (21,086) (8,775)
Income tax payments (13,279) (6,012)
Other operating activities 470 1,430
------------ ------------
Net cash provided by operating activities 22,269 6,371
Cash flows from investing activities:
Payment for acquisitions and long-term
investments (66,496) (441)
Other investing activities (10,518) (12,275)
------------ ------------
Net cash used in investing activities (77,014) (12,716)
Cash flows from financing activities:
Payments on long-term borrowings (1,595) (1,882)
Other financing activities 2,628 (161)
------------ ------------
Net cash provided by (used in) financing
activities 1,033 (2,043)
Effect of foreign exchange rate changes on cash 1,908 (3,266)
------------ ------------
Net decrease in cash and cash equivalents (51,804) (11,654)
Cash and cash equivalents at beginning of
period 649,938 204,524
------------ ------------
Cash and cash equivalents at end of period $ 598,134 $ 192,870
============ ============
Reconciliation of net income including
noncontrolling interests to net cash
provided by operating activities:
Net income including noncontrolling interests $ 35,392 $ 32,043
Adjustments to reconcile net income including
noncontrolling interests to net cash provided
by operating activities:
Depreciation and amortization 27,548 22,327
Changes in working capital (32,746) (46,871)
Other (7,925) (1,128)
------------ ------------
Net cash provided by operating activities $ 22,269 $ 6,371
============ ============
For more information contact:
Christine Tsingos
Vice President and Chief Financial Officer
or
Ron Hutton
Treasurer
Bio-Rad Laboratories, Inc.
510-724-7000
Email Contact
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