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| 8-K - SERACARE LIFE SCIENCES INC | v204166_8k.htm |
Exhibit 99.1
SeraCare
Reports Fourth Quarter and Fiscal Year 2010 Results
—Company
reports sixth consecutive quarter of profitability with $0.11 EPS and a 40%
increase in net income over prior year—
—Fiscal year 2010 revenues grew
13%—
—Conference
call scheduled for 8:30 A.M. E.T.—
Milford, MA, December 1,
2010—SeraCare Life Sciences, Inc. (NASDAQ: SRLS), a global life sciences
company providing vital products and services to facilitate the discovery,
development and production of human diagnostics and therapeutics, today reported
operational and financial results for its fourth quarter and fiscal year ended
September 30, 2010.
“Through
the continued successful execution of our business strategy, we firmly
established SeraCare’s financial strength in fiscal year 2010,” said Susan Vogt,
President and Chief Executive Officer. “Now, based on six consecutive quarters
of profitable growth and the impressive strength of our balance sheet, we are
poised for the next step in the evolution of SeraCare—to execute on our goal of
doubling the Company’s revenues. We expect to achieve this goal over the next
three to four years through a combination of both profitable organic growth and
opportunistic acquisitions.”
SeraCare
reported revenue growth of 13% increasing to $50.4 million for the year ended
September 30, 2010 compared to $44.4 million for the year ended September 30,
2009. Gross margins increased to 41% compared to 35% for the prior year. The
Company earned net income of $6.7 million and earnings per share on a basic and
diluted basis of $0.36 and $0.35, respectively, for the year ended September 30,
2010 compared to a net loss of $15.4 million (which included impairment charges
of $15.7 million) and a loss per share on a basic and diluted basis of $0.83
during fiscal 2009.
SeraCare
reported revenue growth of 6% increasing to $13.3 million for the quarter ended
September 30, 2010 compared to $12.5 million for the same quarter of the prior
year. Gross margins decreased to 39% for the quarter compared to 41% for the
same quarter of the prior year. The Company earned net income of $2.0 million
and earnings per share on a basic and diluted basis of $0.11 for the quarter
ended September 30, 2010 compared to $1.4 million and $0.08 per share on a basic
and diluted basis during the same period in fiscal 2009.
Corporate
Highlights:
|
·
|
Increased
BioServices revenue by $4.7 million, or 40%, and Diagnostic &
Biopharmaceutical Products revenue by $1.3 million, or 4%, for the year
ended September 30, 2010 compared to the prior
year
|
|
·
|
Delivered
EPS on a basic and diluted basis of $0.36 and $0.35, respectively, for the
year ended September 30, 2010 compared to a loss per share on a basic and
diluted basis of $0.83 during fiscal
2009
|
|
·
|
Generated
$10.4 million in operating cash flow during fiscal 2010, ending fiscal
year 2010 with $16.1 million of
cash
|
|
·
|
Achieved
sixth consecutive quarter of profitability during the fourth quarter of
fiscal 2010
|
|
·
|
Introduced
14 new products in fiscal year 2010 including Accurun®
controls and seroconversion panels
|
|
·
|
Continued
a major initiative to drive European sales, obtaining CE markings for
high-volume products and growing European sales 14% in fiscal 2010 over
the prior year
|
In an
effort consistent with the Company’s long-term growth initiatives, SeraCare also
announced the departure of Bill Smutny, Vice President of Sales and Marketing.
The Company is in the process of identifying and hiring a successor who will be
charged with realigning the sales and marketing organization to drive increased
growth.
“SeraCare
drove revenues and earnings growth during both the fourth quarter and fiscal
year 2010,” stated Gregory Gould, Chief Financial Officer. “In fiscal year 2010,
we also generated more than $10.4 million in operating cash flow, ending the
year with $16.1 million in cash. Given the strength of our operational business,
balance sheet and our consistent ability to generate cash, we believe we are
well positioned to leverage substantial growth in the coming
years.”
Fiscal
Year 2011 Goals:
|
·
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Optimize
the sales organization to drive growth with an increased focus on
diagnostics and pharmaceutical product sales in both North America and
Europe
|
|
·
|
Introduce
a minimum of 12 new products focused on supporting growth in research and
clinical laboratory markets
|
|
·
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Continue
to expand operating margins through improved operating efficiencies and a
focus on higher margin products
|
|
·
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Identify
new expansion opportunities through strategic alliances and/or
acquisitions
|
Conference
Call Information:
SeraCare
will host a conference call at 8:30 A.M. Eastern Time today, December 1, 2010,
to review 2010 results and provide an overview of goals and strategic
initiatives for fiscal 2011 and beyond. The conference call will be webcast live
over the Internet and can be accessed by logging on to the "Investor Center,
Events" section of the SeraCare Life Sciences website at www.seracare.com. The
call can also be accessed by dialing 866-314-5050 (within the United States) or
617-213-8051 (outside the United States). The passcode for participants is
72056979.
A replay
of the call will be available approximately two hours after the live call
concludes through December 15, 2010. To access the replay, dial 888-286-8010
(within the United States) or 617-801-6888 (outside the United States). The
passcode is 16721231. The webcast will also be archived on the Company's
website.
About
SeraCare Life Sciences, Inc.:
SeraCare
serves the global life sciences industry by providing vital products and
services to facilitate the discovery, development and production of human
diagnostics and therapeutics. The Company's innovative portfolio includes
diagnostic controls, plasma-derived reagents and molecular biomarkers,
biobanking and contract research services. SeraCare's quality systems,
scientific expertise and state-of-the-art facilities support its customers in
meeting the stringent requirements of the highly regulated life sciences
industry.
Forward-Looking
Statements:
This
press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 about SeraCare Life Sciences,
Inc. ("SeraCare"
or the "Company"). All statements regarding our expected future financial
position, results of operations, cash flows, dividends, financing plans,
business strategy, budget, projected costs or cost savings, capital
expenditures, competitive positions, growth opportunities for existing products
or products under development, plans and objectives of management for future
operations and markets for stock are forward-looking statements. In addition,
forward-looking statements include statements in which we use words such as
"expect," "believe," "anticipate," "intend," or similar expressions. Although we
believe the expectations reflected in such forward-looking statements are based
on reasonable assumptions, we cannot assure you that these expectations will
prove to have been correct, and actual results may differ materially from those
reflected in the forward-looking statements. Factors that could cause our actual
results to differ from the expectations reflected in the forward-looking
statements in this press release include, but are not limited to, failure to
maintain proper inventory levels, availability of financing, reductions or
terminations of government or other contracts, interruption in our supply of
products or raw materials, actions of SeraCare's competitors, changes in the
regulatory environment, delays
in new product introductions, lack of market acceptance of new products,
decreased healthcare spending, reduced margins resulting from a shift in revenue
towards services, prolonged impairment of sales from changes in our sales
organization, absence or loss of acquisition opportunities to higher bidders,
potential failure to complete any announced acquisition, and potential failure
of any acquisition to produce expected revenues, profits or
synergies. Many of
these factors are beyond our ability to control or predict.
Contacts:
Gregory
A. Gould
Chief
Financial Officer
SeraCare
Life Sciences, Inc.
508-244-6400
Sarah
Cavanaugh
MacDougall
Biomedical Communications
781-235-3060
—
financials to follow —
SERACARE
LIFE SCIENCES, INC.
STATEMENTS
OF OPERATIONS — UNAUDITED
|
For the Three Months Ended
September 30,
|
For the Twelve Months Ended
September 30,
|
|||||||||||||||
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2010
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2009
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2010
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2009
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Revenue
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$ | 13,296,546 | $ | 12,521,818 | $ | 50,380,140 | $ | 44,434,171 | ||||||||
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Cost
of revenue
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8,093,745 | 7,354,655 | 29,594,419 | 28,989,764 | ||||||||||||
|
Gross
profit
|
5,202,801 | 5,167,163 | 20,785,721 | 15,444,407 | ||||||||||||
|
Research
and development expense
|
234,768 | 208,536 | 777,068 | 1,122,077 | ||||||||||||
|
Selling,
general and administrative expenses
|
2,982,117 | 3,429,093 | 13,160,750 | 13,714,119 | ||||||||||||
|
Impairment
of goodwill
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- | - | - | 15,091,099 | ||||||||||||
|
Loss
related to assets held for sale
|
- | 50,000 | - | 650,000 | ||||||||||||
|
Operating
income (loss)
|
1,985,916 | 1,479,534 | 6,847,903 | (15,132,888 | ) | |||||||||||
|
Interest
expense
|
(1,911 | ) | (88,059 | ) | (234,745 | ) | (380,128 | ) | ||||||||
|
Other
income, net
|
29,410 | 76,887 | 99,493 | 183,256 | ||||||||||||
|
Income
(loss) before income taxes
|
2,013,415 | 1,468,362 | 6,712,651 | (15,329,760 | ) | |||||||||||
|
Income
tax (benefit) expense
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(675 | ) | 28,331 | 7,900 | 49,435 | |||||||||||
|
Net
income (loss)
|
$ | 2,014,090 | $ | 1,440,031 | $ | 6,704,751 | $ | (15,379,195 | ) | |||||||
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Earnings
(loss) per common share
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||||||||||||||||
|
Basic
|
$ | 0.11 | $ | 0.08 | $ | 0.36 | $ | (0.83 | ) | |||||||
|
Diluted
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$ | 0.11 | $ | 0.08 | $ | 0.35 | $ | (0.83 | ) | |||||||
|
Weighted
average shares outstanding
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||||||||||||||||
|
Basic
|
18,853,544 | 18,652,383 | 18,817,478 | 18,598,844 | ||||||||||||
|
Diluted
|
19,143,702 | 18,739,797 | 19,108,186 | 18,598,844 | ||||||||||||