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| 8-K - FORM 8-K 06-30-2012 - BIO-RAD LABORATORIES, INC. | bio-8k8712.htm |
Exhibit 99.1
For Immediate Release
Bio-Rad Reports Second-Quarter 2012 Financial Results
HERCULES, CA - August 7, 2012 - 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 second quarter ended June 30, 2012.
Second-quarter reported revenues were $510.4 million, down 2.2 percent compared to $521.7 million reported for the second quarter of 2011. On a currency-neutral basis, quarterly revenues increased 3.0 percent compared to the same period last year. Second-quarter gross margin was 56.4 percent compared to 56.2 percent reported during the same quarter last year. Gross margin includes approximately $2.2 million of amortization expense resulting from the Company's acquisition of QuantaLife, Inc. in October 2011. Bio-Rad's current quarter operating income results were favorably impacted by $8.1 million due to a reduction in the valuation of the contingent consideration associated with the QuantaLife acquisition. Additionally, the receipt of certain foreign receivables, that had been previously reserved, benefitted quarterly results.
Net income for the second quarter of 2012 was $48.3 million compared to $40.0 million reported for the second quarter of 2011. Second-quarter earnings were $1.69 per share on a fully diluted basis versus $1.41 per share reported for the same period last year.
On a reported basis, year-to-date revenues were down 1.0 percent to $996.7 million compared to $1,006.8 million for the first two quarters of 2011. On a currency-neutral basis, revenues grew 2.3 percent.
Year-to-date net income was $79.3 million, or $2.78 per share on a fully diluted basis, compared to $73.1 million, or $2.57 per share, respectively, during the same period in 2011.
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Bio-Rad Reports Second-Quarter 2012 Financial Results
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“Currency changes mask what was otherwise a decent result for the year so far, given the continued challenges of the global economy,” said Norman Schwartz, Bio-Rad President and Chief Executive Officer. “While the economic outlook suggests more of the same for the remainder of the year, we continue to pursue opportunities on a number of fronts.”
Life Science
Life Science segment net sales for the second quarter were $162.4 million, down 4.4 percent compared to the same period last year. On a currency-neutral basis, Life Science segment net sales decreased by 0.9 percent compared to the second quarter of 2011. Solid growth in Asia Pacific and Japan were offset by slowness in North America and Europe. During the quarter, shipments of process media were down simply as a result of timing. In April, the company introduced its V3 Western Workflow™ system that offers a portfolio of best-in-class products for electrophoresis, blotting, and imaging, saving time and generating more reliable and robust data.
Clinical Diagnostics
Reported net sales for the Clinical Diagnostics segment in the second quarter were $344.0 million, down 1.2 percent compared to the same quarter last year. On a currency-neutral basis, net sales increased 4.9 percent. These gains were the result of growth across many products lines, most notably from blood virus, quality controls, diabetes, and microbiology products as well as the BioPlex® 2200 system. Strength in the emerging markets, Asia Pacific, and Japan helped to offset weakness in the European market.
Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) August 7, 2012. Interested parties may access the call by dialing 888-873-4896 (in the U.S.) or 617-213-8850 (international), access number 91064548.
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 63337374, 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 Second-Quarter 2012 Financial Results
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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 diagnostics 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 100,000 research and industry customers worldwide through its global network of operations. The Company employs over 7,100 people globally and had revenues exceeding $2 billion in 2011. For more information, please 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 | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net sales | $ | 510,422 | $ | 521,656 | $ | 996,699 | $ | 1,006,777 | |||||||
Cost of goods sold | 222,522 | 228,520 | 430,217 | 436,030 | |||||||||||
Gross profit | 287,900 | 293,136 | 566,482 | 570,747 | |||||||||||
Selling, general and administrative expense | 162,256 | 176,740 | 333,549 | 344,503 | |||||||||||
Research and development expense | 52,336 | 48,210 | 105,259 | 90,940 | |||||||||||
Income from operations | 73,308 | 68,186 | 127,674 | 135,304 | |||||||||||
Interest expense | 12,401 | 12,041 | 25,597 | 28,807 | |||||||||||
Foreign exchange losses, net | 1,619 | 2,744 | 3,060 | 5,786 | |||||||||||
Other (income) expense, net | (6,731 | ) | (4,418 | ) | (13,181 | ) | (5,369 | ) | |||||||
Income before income taxes | 66,019 | 57,819 | 112,198 | 106,080 | |||||||||||
Provision for income taxes | (17,454 | ) | (17,797 | ) | (32,689 | ) | (33,120 | ) | |||||||
Net income including noncontrolling interests | 48,565 | 40,022 | 79,509 | 72,960 | |||||||||||
Net (income) loss attributable to noncontrolling interests | (222 | ) | 26 | (161 | ) | 127 | |||||||||
Net income attributable to Bio-Rad | $ | 48,343 | $ | 40,048 | $ | 79,348 | $ | 73,087 | |||||||
Basic earnings per share: | |||||||||||||||
Net income per share basic attributable to Bio-Rad | $ | 1.71 | $ | 1.43 | $ | 2.81 | $ | 2.61 | |||||||
Weighted average common shares - basic | 28,250 | 28,014 | 28,226 | 27,959 | |||||||||||
Diluted earnings per share: | |||||||||||||||
Net income per share diluted attributable to Bio-Rad | $ | 1.69 | $ | 1.41 | $ | 2.78 | $ | 2.57 | |||||||
Weighted average common shares - diluted | 28,610 | 28,495 | 28,582 | 28,443 | |||||||||||
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Bio-Rad Laboratories, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
June 30, 2012 | December 31, 2011 | ||||||
(Unaudited) | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 456,487 | $ | 574,231 | |||
Short-term investments | 378,770 | 238,884 | |||||
Accounts receivable, net | 373,817 | 398,674 | |||||
Inventories, net | 449,457 | 433,510 | |||||
Other current assets | 152,541 | 152,856 | |||||
Total current assets | 1,811,072 | 1,798,155 | |||||
Property, plant and equipment, net | 380,656 | 349,501 | |||||
Goodwill, net | 466,157 | 468,933 | |||||
Purchased intangibles, net | 241,341 | 259,497 | |||||
Other assets | 269,669 | 220,717 | |||||
Total assets | $ | 3,168,895 | $ | 3,096,803 | |||
Current liabilities: | |||||||
Accounts payable | $ | 119,448 | $ | 129,124 | |||
Accrued payroll and employee benefits | 113,435 | 112,564 | |||||
Notes payable and current maturities of long-term debt | 783 | 814 | |||||
Income and other taxes payable | 32,609 | 52,285 | |||||
Other current liabilities | 150,909 | 164,328 | |||||
Total current liabilities | 417,184 | 459,115 | |||||
Long-term debt, net of current maturities | 732,054 | 731,698 | |||||
Other long-term liabilities | 167,165 | 161,608 | |||||
Total liabilities | 1,316,403 | 1,352,421 | |||||
Bio-Rad stockholders’ equity | 1,851,888 | 1,743,937 | |||||
Noncontrolling interests | 604 | 445 | |||||
Total stockholders’ equity | 1,852,492 | 1,744,382 | |||||
Total liabilities and stockholders’ equity | $ | 3,168,895 | $ | 3,096,803 | |||
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Bio-Rad Laboratories, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Six Months Ended | |||||||
June 30, | |||||||
2012 | 2012 | ||||||
Cash flows from operating activities: | |||||||
Cash received from customers | $ | 1,008,515 | $ | 1,020,282 | |||
Cash paid to suppliers and employees | (835,174 | ) | (842,830 | ) | |||
Interest paid | (24,101 | ) | (33,296 | ) | |||
Income tax payments | (47,619 | ) | (18,709 | ) | |||
Other operating activities | 7,281 | 4,634 | |||||
Net cash provided by operating activities | 108,902 | 130,081 | |||||
Cash flows from investing activities: | |||||||
Payments for acquisitions and long-term investments | (18,589 | ) | (5,228 | ) | |||
Other investing activities | (218,249 | ) | (152,848 | ) | |||
Net cash used in investing activities | (236,838 | ) | (158,076 | ) | |||
Cash flows from financing activities: | |||||||
Payments on long-term borrowings | (367 | ) | (226,368 | ) | |||
Other financing activities | 6,886 | 12,485 | |||||
Net cash provided by (used in) financing activities | 6,519 | (213,883 | ) | ||||
Effect of foreign exchange rate changes on cash | 3,673 | 5,628 | |||||
Net decrease in cash and cash equivalents | (117,744 | ) | (236,250 | ) | |||
Cash and cash equivalents at beginning of period | 574,231 | 906,551 | |||||
Cash and cash equivalents at end of period | $ | 456,487 | $ | 670,301 | |||
Reconciliation of net income including noncontrolling interests to net cash provided by operating activities: | |||||||
Net income including noncontrolling interests | $ | 79,509 | $ | 72,960 | |||
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities: | |||||||
Depreciation and amortization | 62,749 | 57,743 | |||||
Changes in working capital | (24,144 | ) | (27,348 | ) | |||
Other | (9,212 | ) | 26,726 | ||||
Net cash provided by operating activities | $ | 108,902 | $ | 130,081 | |||
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