Science & Technology
Science and Technology
Science and Technology
Wed, November 4, 2009
Tue, November 3, 2009 Bio-Rad Reports Third-Quarter Currency-Neutral Revenue Growth of 11 Percent
HERCULES, CA--(Marketwire - November 3, 2009) - Bio-Rad Laboratories, Inc. (
Third-quarter reported revenues were $461.1 million, up 4.4% compared to $441.8 million reported for the third quarter of 2008. On a currency-neutral basis, quarterly revenues increased 11.1% compared to the same period last year. This improvement is primarily the result of organic growth across a range of products in Bio-Rad's two main areas, Life Science and Clinical Diagnostics as well as the additional revenue generated from the purchase of certain DiaMed distributors since the third quarter of 2008.
Net income attributable to Bio-Rad for the third quarter was $38.5 million, or $1.38 per share on a fully diluted basis, compared to $27.8 million or $1.00 per share, respectively, during the same period last year. Third-quarter gross margin increased to 56.5% compared to 54.4% during the same quarter last year.
Year-to-date revenues were $1.3 billion, down 2.1% compared to the first three quarters in 2008. Adjusting for the impact of currency effects, revenue growth was 5.9%. Year-to-date net income attributable to Bio-Rad for 2009 was $106.8 million, or $3.85 per share on a fully diluted basis, compared to $97.7 million, or $3.54 per share, respectively, during the same period in 2008.
"We are pleased with the results of the third-quarter, which show continued strength in many of our product areas," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "As we had expected, the economy continued to have somewhat of a negative impact on customer spending particularly in our Life Science segment, but we are encouraged by the resiliency we've seen in many of our markets."
Life Science
The Life Science segment net sales for the third quarter were $150.4 million, down 4.1% or 0.4% on a currency-neutral basis, compared to the same period last year. Sales across a number of product lines in the Life Science segment performed well during the quarter, in particular, process chromatography and gene expression products. Performance of the segment also benefited from sales of the Company's ProteOn™ protein interaction array system, as many customers began to order additional instruments. Growth in the Life Science segment was negatively impacted by slowed research markets in both the U.S. and Europe, which reflect constraint and delays in spending by academic and biopharmaceutical customers. In September, Bio-Rad and Bruker Corporation (
Clinical Diagnostics
The Clinical Diagnostics segment reported net sales of $307.5 million for the third quarter, up 9.3% compared to the third quarter in 2008. On a currency-neutral basis, sales for the segment increased 17.8%. These gains are the result of strong sales across a number of product lines, including blood virus testing products, quality control products, and the Company's BioPlex® 2200 system. The segment also benefited from additional revenue resulting from the purchase of certain DiaMed European distributors in the fourth quarter of 2008, as well as the purchase of the DiaMed distributor in India in the second quarter of this year. In September, Bio-Rad announced the launch of Unity Real Time® 2.0, the latest version of its expert QC Data Management solution. The platform is designed to manage laboratory QC and to validate analytical runs.
Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) November 3, 2009. Interested parties may access the call by dialing 866-700-7173 (in the U.S.) or 617-213-8838 (international), access number 78653201.
The live webcast may also be accessed at [ http://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 96529078 for seven days following the call, and the webcast can be accessed at [ http://www.bio-rad.com ] for 30 days.
About Bio-Rad
Bio-Rad Laboratories, Inc. (
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 Nine Months Ended September 30, September 30, ------------------ ---------------------- 2009 2008 2009 2008 -------- -------- ---------- ---------- Net sales $461,055 $441,842 $1,289,171 $1,316,400 Cost of goods sold 200,545 201,300 557,797 600,554 -------- -------- ---------- ---------- Gross profit 260,510 240,542 731,374 715,846 Selling, general and administrative expense 153,623 150,518 437,606 436,807 Research and development expense 39,516 38,830 119,075 118,398 -------- -------- ---------- ---------- Income from operations 67,371 51,194 174,693 160,641 Interest expense 14,487 8,180 32,661 24,128 Foreign exchange losses, net 1,472 91 3,249 2,396 Other (income) expense, net 192 (523) (4,956) (4,667) -------- -------- ---------- ---------- Income before taxes 51,220 43,446 143,739 138,784 Provision for income taxes (11,920) (12,557) (33,096) (34,012) -------- -------- ---------- ---------- Net income including noncontrolling interests 39,300 30,889 110,643 104,772 Less: Net income attributable to noncontrolling interests (776) (3,056) (3,885) (7,046) -------- -------- ---------- ---------- Net income attributable to Bio-Rad $ 38,524 $ 27,833 $ 106,758 $ 97,726 ======== ======== ========== ========== Basic earnings per share: Net income attributable to Bio-Rad $ 1.40 $ 1.02 $ 3.90 $ 3.61 ======== ======== ========== ========== Weighted average common shares 27,431 27,171 27,375 27,055 ======== ======== ========== ========== Diluted earnings per share: Net income attributable to Bio-Rad $ 1.38 $ 1.00 $ 3.85 $ 3.54 ======== ======== ========== ========== Weighted average common shares 27,875 27,747 27,749 27,619 ======== ======== ========== ========== Bio-Rad Laboratories, Inc. Condensed Consolidated Balance Sheets (In thousands) (UNAUDITED) September 30, December 31, 2009 2008 ------------- ------------- Current assets: Cash and cash equivalents $ 554,179 $ 204,524 Short-term investments 87,930 38,950 Accounts receivable, net 350,762 339,653 Inventories, net 383,896 375,616 Other current assets 126,634 135,198 ------------- ------------- Total current assets 1,503,401 1,093,941 Net property, plant and equipment 305,921 300,732 Goodwill 327,469 321,820 Purchased intangibles, net 216,730 228,590 Other assets 124,685 92,181 ------------- ------------- Total assets $ 2,478,206 $ 2,037,264 ============= ============= Current liabilities: Notes payable and current maturities of long-term debt $ 5,346 $ 9,578 Accounts payable 92,381 117,982 Accrued payroll and employee benefits 118,891 119,420 Sales, income and other taxes payable 53,810 33,731 Other current liabilities 145,267 137,323 ------------- ------------- Total current liabilities 415,695 418,034 Long-term debt, net of current maturities 738,687 445,979 Other long-term liabilities 96,153 102,611 ------------- ------------- Total liabilities 1,250,535 966,624 Bio-Rad stockholders' equity 1,208,661 1,041,139 Noncontrolling interests 19,010 29,501 ------------- ------------- Total stockholders' equity 1,227,671 1,070,640 ------------- ------------- Total liabilities and stockholders' equity $ 2,478,206 $ 2,037,264 ============= ============= Bio-Rad Laboratories, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (UNAUDITED) Nine Months Ended September 30, 2009 2008 ----------- ----------- Cash flows from operating activities: Cash received from customers $ 1,291,054 $ 1,318,003 Cash paid to suppliers and employees (1,030,153) (1,152,538) Interest paid (31,511) (24,141) Income tax payments (27,746) (31,053) Other operating activities 7,708 2,759 ----------- ----------- Net cash provided by operating activities 209,352 113,030 Cash flows from investing activities: Payments for acquisitions and long-term investments (35,937) (18,069) Other investing activities (117,424) (63,799) ----------- ----------- Net cash used in investing activities (153,361) (81,868) Cash flows from financing activities: Payments on long-term debt (5,253) (9,349) Long-term borrowings 294,750 - Other financing activities 2,766 13,758 ----------- ----------- Net cash provided by financing activities 292,263 4,409 Effect of exchange rate changes on cash 1,401 (3,708) ----------- ----------- Net increase in cash and cash equivalents 349,655 31,863 Cash and cash equivalents at beginning of period 204,524 161,764 ----------- ----------- Cash and cash equivalents at end of period $ 554,179 $ 193,627 =========== =========== Reconciliation of net income including noncontrolling interests to net cash provided by operating activities: Net income including noncontrolling interests $ 110,643 $ 104,772 Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities: Depreciation and amortization 74,003 74,322 Changes in working capital 23,583 (67,670) Other 1,123 1,606 ----------- ----------- Net cash provided by operating activities $ 209,352 $ 113,030 =========== ===========
