BIO-RAD LABORATORIES, INC. - FORM 8-K - EX-99.1 - EARNINGS RELEASE 11-01-2011 - November 1, 2011

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8-K - FORM 8-K 09-30-2011 - BIO-RAD LABORATORIES, INC.bio-8k1112011.htm
Exhibit 99.1


FOR IMMEDIATE RELEASE


Bio-Rad Reports Third-Quarter Revenue Growth of More Than 9 Percent


HERCULES, CA - November 1, 2011 - Bio-Rad Laboratories, Inc. (NYSE: BIO and BIOb), a multinational manufacturer and distributor of life science research and clinical diagnostic products, announced financial results today for the third quarter ended September 30, 2011.

Third-quarter reported revenues were $516.5 million, up 9.5% compared to $471.5 million reported for the third quarter of 2010. On a currency-neutral basis, quarterly revenues increased 1.1% compared to the same period last year. Third-quarter gross margin increased to 57.3%, compared to 56.5% during the same quarter in 2010.

Net income attributable to Bio-Rad for the third quarter was $45.9 million, or $1.61 per share on a fully diluted basis versus $1.59 per share reported for the same period last year.

Year-to-date revenues grew by 9.3% to $1.5 billion compared to $1.4 billion for the first three quarters of 2010. Adjusting for the impact of currency, revenue growth was 3.4%.

Year-to-date net income attributable to Bio-Rad for 2011 was $119.0 million, or $4.18 per share on a fully diluted basis compared to $117.6 million, or $4.18 per share during the same period in 2010.

“While performance in the third-quarter shows good momentum and growth in many of our core product areas, we are feeling the impact of an uncertain economic environment in many of our markets abroad,” said Norman Schwartz, Bio-Rad President and Chief Executive Officer. “As we wrap up the year, we will carefully monitor these pressures on our global operation and look for new opportunities to grow our business.”


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Bio-Rad Reports Third-Quarter Revenue Growth of More Than 9 Percent
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Life Science
The Life Science segment net sales for the third quarter were $171.5 million, up 11.9% compared to the same period last year. On a currency-neutral basis, Life Science segment sales increased by 5.1% compared to the third quarter of 2010. These results reflect strength of the segment's electrophoresis and imaging product lines, which showed solid growth during the third quarter. Performance was also bolstered by the Company's amplification products, several new product launches, as well as assays for the Bio-Plex® suspension array system, which can analyze up to 100 biomolecules in a single patient sample.

Clinical Diagnostics
Reported net sales for the Clinical Diagnostics segment in the third quarter rose to $341.3 million, up 8.4% compared to the same quarter last year. On a currency-neutral basis, sales were down 0.9%. Overall performance of the Clinical Diagnostics segment was negatively affected by economic challenges impacting worldwide healthcare markets, partially offset by continuing growth of our quality controls and BioPlex® 2200 product lines. In July, the Company announced that it had received FDA Premarket Application approval from the FDA for its fourth-generation HIV assay, the GS HIV Combo Ag/Ab EIA (enzyme immunoassay). The new assay detects both HIV antigens and HIV antibodies, offering earlier detection of HIV infections, including acute HIV infections.

Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) November 1, 2011. Interested parties may access the call by dialing 800-322-5044 (in the U.S.) or 617-614-4927 (international), access number 51248028.

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 19666335, 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.

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Bio-Rad Reports Third-Quarter Revenue Growth of More Than 9 Percent
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About Bio-Rad
Bio-Rad Laboratories, Inc. (NYSE: BIO and BIOb), 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 exceeding $1.9 billion in 2010. 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.


For more information contact:
Christine Tsingos, Vice President and Chief Financial Officer, or
Ron Hutton, Treasurer
Bio-Rad Laboratories, Inc.
510-724-7000
investor_relations@bio-rad.com

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Bio-Rad Laboratories, Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)

 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2011
 
2010
 
2011
 
2010
Net sales
$
516,514

 
$
471,502

 
$
1,523,291

 
$
1,393,398

Cost of goods sold
220,338

 
205,172

 
656,368

 
601,633

Gross profit
296,176

 
266,330

 
866,923

 
791,765

Selling, general and administrative expense
176,867

 
148,654

 
521,370

 
458,541

Research and development expense
45,387

 
42,874

 
136,327

 
126,999

Income from operations
73,922

 
74,802

 
209,226

 
206,225

Interest expense
12,341

 
14,400

 
41,148

 
43,169

Foreign exchange losses, net
6,346

 
2,749

 
12,132

 
3,546

Other (income) expense, net
(538
)
 
(256
)
 
(5,907
)
 
(3,572
)
Income before income taxes
55,773

 
57,909

 
161,853

 
163,082

Provision for income taxes
(9,911
)
 
(12,824
)
 
(43,031
)
 
(44,084
)
Net income including noncontrolling interests 
45,862

 
45,085

 
118,822

 
118,998

Net loss (income) attributable to noncontrolling interests
35

 
(321
)
 
162

 
(1,416
)
Net income attributable to Bio-Rad
$
45,897

 
$
44,764

 
$
118,984

 
$
117,582

 
 
 
 
 
 
 
 
Basic earnings per share:
 
 
 
 
 
 
 
Net income per share basic attributable to Bio-Rad
$
1.63

 
$
1.62

 
$
4.25

 
$
4.26

Weighted average common shares - basic
28,072

 
27,697

 
27,997

 
27,616

 
 
 
 
 
 
 
 
Diluted earnings per share:
 
 
 
 
 
 
 
Net income per share diluted attributable to Bio-Rad
$
1.61

 
$
1.59

 
$
4.18

 
$
4.18

Weighted average common shares - diluted
28,456

 
28,103

 
28,454

 
28,110


4

Bio-Rad Laboratories, Inc.
Condensed Consolidated Balance Sheets
(In thousands)


 
September 30,
2011
 
December 31,
2010
 
 (Unaudited)
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
671,028

 
$
906,551

Restricted cash
—

 
6,422

Short-term investments
239,174

 
118,636

Accounts receivable, net
375,031

 
387,996

Inventories, net
445,581

 
398,100

Other current assets
146,889

 
157,641

Total current assets
1,877,703

 
1,975,346

 
 
 
 
Property, plant and equipment, net
338,942

 
333,617

Goodwill, net
371,227

 
363,981

Purchased intangibles, net
180,228

 
203,881

Other assets
201,695

 
185,939

Total assets
$
2,969,795

 
$
3,062,764

 
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
113,476

 
$
113,440

Accrued payroll and employee benefits
120,167

 
131,381

Notes payable and current maturities of long-term debt
806

 
233,181

Income and other taxes payable
46,368

 
50,935

Other current liabilities
134,509

 
137,690

Total current liabilities
415,326

 
666,627

 
 
 
 
Long-term debt, net of current maturities
731,597

 
731,100

Other long-term liabilities
129,226

 
124,518

Total liabilities
1,276,149

 
1,522,245

 
 
 
 
Bio-Rad stockholders’ equity
1,693,149

 
1,536,696

Noncontrolling interests
497

 
3,823

Total stockholders’ equity
1,693,646

 
1,540,519

Total liabilities and stockholders’ equity
$
2,969,795

 
$
3,062,764



5
Bio-Rad Laboratories, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

 
Nine Months Ended
 
September 30,
 
2011
 
2010
Cash flows from operating activities:
 
 
 
Cash received from customers
$
1,508,934

 
$
1,367,777

Cash paid to suppliers and employees
(1,249,674
)
 
(1,143,699
)
Interest paid
(46,086
)
 
(48,812
)
Income tax payments
(38,029
)
 
(50,254
)
Other operating activities
6,094

 
509

Net cash provided by operating activities
181,239

 
125,521

Cash flows from investing activities:
 
 
 
Payments for acquisitions and long-term investments
(8,698
)
 
(88,694
)
Other investing activities
(205,191
)
 
(75,716
)
Net cash used in investing activities
(213,889
)
 
(164,410
)
Cash flows from financing activities:
 
 
 
Long-term borrowings
—

 
2,000

Payments on long-term borrowings
(226,615
)
 
(5,441
)
Other financing activities
14,788

 
10,664

Net cash (used in) provided by financing activities
(211,827
)
 
7,223

Effect of foreign exchange rate changes on cash
8,954

 
12,368

Net decrease in cash and cash equivalents
(235,523
)
 
(19,298
)
Cash and cash equivalents at beginning of period
906,551

 
649,938

Cash and cash equivalents at end of period
$
671,028

 
$
630,640

Reconciliation of net income including noncontrolling interests to net cash provided by operating activities:
 
 
 
Net income including noncontrolling interests
$
118,822

 
$
118,998

Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:
 
 
 
Depreciation and amortization
88,127

 
79,964

Changes in working capital
(49,450
)
 
(73,589
)
Other
23,740

 
148

Net cash provided by operating activities
$
181,239

 
$
125,521


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BIO-RAD LABORATORIES, INC. Reports