Bio-Rad Laboratories, Inc. Reports First-Quarter Currency-Neutral Revenue Growth of 4.9 Percent
HERCULES, CA--(Marketwire - May 03, 2011) - 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, 2011.
First-quarter reported revenues were $485.1 million, up 6.8% compared to $454.2 million reported for the first quarter of 2010. On a currency-neutral basis, quarterly revenues increased 4.9% compared to the same period last year. First-quarter gross margin was 57.2% compared to 56.6% during the same quarter last year. Net income attributable to Bio-Rad for the first quarter of 2011 was $33.0 million, or $1.16 per share on a fully diluted basis compared to $1.24 per share, during the same period last year. Earnings per share in the first quarter was negatively impacted by one-time expenses of approximately $4 million related to the retirement of debt as well as a higher effective tax rate for the quarter, primarily due to adjustments to foreign tax credits.
"Performance in the first quarter reflects strength across many of our product areas," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "As we had anticipated, budgetary constraints faced by some of our customers outside the U.S. had an impact on our performance during the quarter. As the year progresses, we will continue to seek opportunities to improve our operational efficiencies and grow our business."
Life Science
The Life Science segment net sales for the first quarter were $154.5 million, up 2.1% compared to the first quarter of 2010. On a currency-neutral basis, Life Science segment sales were essentially flat compared to the same period last year. Sales in the U.S. for the Life Science segment were strong but were offset by a continued slowness during the first quarter in markets outside the U.S., primarily in Europe and Japan. Sales of recently introduced products continued to gain rapid customer acceptance in the first quarter, these include the TC10™ automated cell counter as well as the Mini-PROTEAN® TGX™ precast electrophoresis gel product line. In March, Bio-Rad launched the Trans-Blot® Turbo™ transfer system, a rapid western blotting instrument that allows researchers to efficiently transfer proteins from gel to blot in three minutes.
Clinical Diagnostics
The Clinical Diagnostics segment reported net sales of $327.2 million for the first quarter, up 9.1% compared to the first quarter in 2010. On a currency-neutral basis, net sales were up 7.3% from the same period last year. These gains were largely due to growth across product lines most notably blood typing, quality controls, and microbiology. Performance in the Clinical Diagnostics segment also benefited from placements of the Company's BioPlex® 2200 system in addition to sales of assays that run on the system. Customer interest of the Company's IH-1000 blood typing system continues to increase in markets outside the U.S. The instrument is a fully-automated, high-throughput system designed for the blood transfusion laboratory.
Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) May 3, 2011. Interested parties may access the call by dialing 800-261-3417 (in the U.S.) or 617-614-3673 (international), access number 12268652.
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 45024697, 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.
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 100,000 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.
Bio-Rad Laboratories, Inc.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(UNAUDITED)
Three Months Ended
March 31,
--------------------------
2011 2010
------------ ------------
Net sales $ 485,121 $ 454,234
Cost of goods sold 207,510 197,107
------------ ------------
Gross profit 277,611 257,127
Selling, general and administrative expense 167,763 153,617
Research and development expense 42,730 40,263
------------ ------------
Income from operations 67,118 63,247
Interest expense 16,766 14,444
Foreign exchange losses (gains), net 3,042 (217)
Other (income) expense, net (951) (799)
------------ ------------
Income before income taxes 48,261 49,819
Provision for income taxes (15,323) (14,427)
------------ ------------
Net income including noncontrolling interests 32,938 35,392
Net loss (income) attributable to
noncontrolling interests 101 (531)
------------ ------------
Net income attributable to Bio-Rad $ 33,039 $ 34,861
============ ============
Basic earnings per share:
Net income per share basic attributable to
Bio-Rad $ 1.18 $ 1.27
============ ============
Weighted average common shares - basic 27,904 27,545
============ ============
Diluted earnings per share:
Net income per share diluted attributable to
Bio-Rad $ 1.16 $ 1.24
============ ============
Weighted average common shares - diluted 28,389 28,072
============ ============
Bio-Rad Laboratories, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(UNAUDITED)
March 31, December 31,
2011 2010
------------- -------------
Current assets:
Cash and cash equivalents $ 627,908 $ 906,551
Restricted cash 6,533 6,422
Short-term investments 163,528 118,636
Accounts receivable, net 388,554 387,996
Inventories 429,975 398,100
Other current assets 180,812 157,641
------------- -------------
Total current assets 1,797,310 1,975,346
Property, plant and equipment, net 337,625 333,617
Goodwill, net 369,107 363,981
Purchased intangibles, net 198,658 203,881
Other assets 206,073 185,939
------------- -------------
Total assets $ 2,908,773 $ 3,062,764
============= =============
Current liabilities:
Accounts payable $ 111,373 $ 113,440
Accrued payroll and employee benefits 116,733 131,381
Notes payable and current maturities of
long-term debt 10,269 233,181
Income and other taxes payable 59,658 50,935
Other current liabilities 129,558 137,690
------------- -------------
Total current liabilities 427,591 666,627
Long-term debt, net of current maturities 731,214 731,100
Other long-term liabilities 136,480 124,518
------------- -------------
Total liabilities 1,295,285 1,522,245
Bio-Rad stockholders' equity 1,612,292 1,536,696
Noncontrolling interests 1,196 3,823
------------- -------------
Total stockholders' equity 1,613,488 1,540,519
------------- -------------
Total liabilities and stockholders'
equity $ 2,908,773 $ 3,062,764
============= =============
Bio-Rad Laboratories, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(UNAUDITED)
Three Months Ended
March 31,
2011 2010
------------ ------------
Cash flows from operating activities:
Cash received from customers $ 496,749 $ 445,669
Cash paid to suppliers and employees (436,430) (389,505)
Interest paid (22,189) (21,086)
Income tax payments (18,373) (13,279)
Other operating activities 25 470
------------ ------------
Net cash provided by operating activities 19,782 22,269
Cash flows from investing activities:
Payment for acquisitions and long-term
investments (3,571) (66,496)
Other investing activities (73,722) (10,518)
------------ ------------
Net cash used in investing activities (77,293) (77,014)
Cash flows from financing activities:
Payments on long-term borrowings (225,763) (1,595)
Other financing activities 11,020 2,628
------------ ------------
Net cash (used in) provided by financing
activities (214,743) 1,033
Effect of foreign exchange rate changes on cash (6,389) 1,908
------------ ------------
Net decrease in cash and cash equivalents (278,643) (51,804)
Cash and cash equivalents at beginning of
period 906,551 649,938
------------ ------------
Cash and cash equivalents at end of period $ 627,908 $ 598,134
============ ============
Reconciliation of net income including
noncontrolling interests to net cash
provided by operating activities:
Net income including noncontrolling interests $ 32,938 $ 35,392
Adjustments to reconcile net income including
noncontrolling interests to net cash provided
by operating activities:
Depreciation and amortization 28,115 27,548
Changes in working capital (54,625) (32,746)
Other 13,354 (7,925)
------------ ------------
Net cash provided by operating activities $ 19,782 $ 22,269
============ ============
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