News | News By Subject | News by Disease News By Date | Search News
Get Our FREE
Industry eNewsletter
email:    
   

Bio-Rad Laboratories, Inc. (BIO) Reports Third-Quarter 2013 Financial Results



11/8/2013 9:01:39 AM

free biotech news Get the latest biotech news where you want it. Sign up for the free GenePool newsletter today!

HERCULES, CA--(Marketwired - November 07, 2013) - 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 third quarter ended September 30, 2013.

Third-quarter reported revenues were $505.1 million, an increase of 1.3% compared to $498.7 million reported for the third quarter of 2012. These results include $5.5 million of sales resulting from the Company's acquisition of AbD Serotec in January 2013. On a currency-neutral basis, quarterly revenues increased 1.8% compared to the same period last year. Third-quarter gross margin was 56.3%, compared to 54.9% during the same quarter in 2012.

The Company recorded a net loss for the third quarter of ($7.1) million, or ($0.25) per share on a fully diluted basis versus net income of $42.6 million, or $1.49 per share reported for the same period last year. These results include interest expense of $15.6 million associated with our decision to redeem certain bonds in the third quarter of 2013 as well as the recording of an accrued expense of $20 million in connection with the Company's initial efforts to resolve the previously disclosed investigation of the Company in connection with the United States Foreign Corrupt Practices Act.

Year-to-date revenues were $1.53 billion, an increase of 2.3% compared to $1.50 billion reported in the first three quarters of 2012. Adjusting for the impact of currency, year-to-date revenue growth was 3.1%.

Year-to-date net income for the first three quarters of 2013 was $47.7 million, or $1.65 per share on a fully diluted basis compared to $122.2 million, or $4.27 per share reported during the same period in 2012.

In addition to the impact of the bond redemption and legal accrual mentioned above, the lower net income in the third quarter and year-to-date of 2013, when compared to the third quarter and year-to-date of 2012, was the result of higher SG&A expense, primarily due to employee expenses associated with acquisitions; expenses associated with the enterprise resource planning (ERP) implementation; as well as certain events that occurred during the first three quarters of 2012 that favorably impacted results in 2012 including reductions in the valuation of the contingent consideration associated with the QuantaLife acquisition of $8.5 million in the third quarter of 2012 and $16.0 million in the nine months ended September 30, 2012.

"As anticipated, third-quarter results continued the modest pace of growth set in the first half of the year," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "We continued to see a softness in some of our markets this quarter, which impacted our results. Although we expect more of the same for the rest of 2013, we remain focused on new products and investments in our future."

Life Science
The Life Science segment net sales for the third quarter were $162.9 million, down 2.5% compared to the same period last year. On a currency-neutral basis, Life Science segment sales decreased by 1.2% compared to the third quarter of 2012. Third-quarter 2013 results reflected continued slowness in the research spending environment. Performance of the Life Science segment was positively impacted by sales of antibodies and reagents from the Company's acquisition of AbD Serotec, as well as sales of biochromatography and cell sorting instruments.

Clinical Diagnostics
Reported net sales for the Clinical Diagnostics segment in the third quarter were $338.8 million, an increase of 3.2% compared to the third quarter in 2012 on both a reported and currency-neutral basis. During the quarter, the Clinical Diagnostics segment had growth across most product lines most notably from quality controls, diabetes, and autoimmune products. Strength in China and Latin America markets was offset by weakness of sales in Western Europe.

Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) November 7, 2013. Interested parties may access the call at 866-543-6403 (in the U.S.) or 617-213-8896 (international), access number 45118924.

A live webcast of the conference call may be accessed in the Investor Relations area 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 78604858, for seven days following the call. The webcast of the call will be archived on the Bio-Rad site for replay for up to a year and may be accessed in the Investor Relations area of www.bio-rad.com.

About Bio-Rad
Bio-Rad Laboratories, Inc. (NYSE: BIO) and (NYSE: BIO.B) has been at the center of scientific discovery for 60 years, manufacturing and distributing a broad range of products for life science research and clinical diagnostic markets. The company is renowned for its commitment to quality and customer service among university and research institutions, hospitals, public health and commercial laboratories, as well as the biotechnology, pharmaceutical, and food safety industries. Founded in 1952, Bio-Rad is based in Hercules, California, and serves more than 100,000 research and industry customers through its global network of operations. The company employs approximately 7,600 people worldwide and had revenues exceeding $2 billion in 2012. Visit us at 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 Operations (in thousands, except per share data) (UNAUDITED) Three Months Ended Nine Months Ended September 30, September 30, ------------------------ ------------------------ 2013 2012 2013 2012 ----------- ----------- ----------- ----------- Net sales $ 505,066 $ 498,697 $ 1,530,059 $ 1,495,396 Cost of goods sold 220,850 224,927 674,330 654,784 ----------- ----------- ----------- ----------- Gross profit 284,216 273,770 855,729 840,612 Selling, general and administrative expense 202,238 160,134 583,486 492,913 Research and development expense 52,920 47,795 155,104 150,637 ----------- ----------- ----------- ----------- Income from operations 29,058 65,841 117,139 197,062 Interest expense 31,611 11,901 54,252 37,498 Foreign exchange losses, net 3,330 448 5,723 3,508 Other (income) expense, net (667) (1,511) (10,711) (14,692) ----------- ----------- ----------- ----------- (Loss) income before income taxes (5,216) 55,003 67,875 170,748 Provision for income taxes (1,883) (12,383) (20,200) (48,375) ----------- ----------- ----------- ----------- Net (loss) income including noncontrolling interests (7,099) 42,620 47,675 122,373 Net (income) loss attributable to noncontrolling interests - 13 (21) (148) ----------- ----------- ----------- ----------- Net (loss) income attributable to Bio-Rad $ (7,099) $ 42,633 $ 47,654 $ 122,225 =========== =========== =========== =========== Basic (loss) earnings per share: Net (loss) income per basic share attributable to Bio- Rad $ (0.25) $ 1.51 $ 1.67 $ 4.33 =========== =========== =========== =========== Weighted average common shares - basic 28,603 28,312 28,545 28,255 =========== =========== =========== =========== Diluted (loss) earnings per share: Net (loss) income per diluted share attributable to Bio- Rad $ (0.25) $ 1.49 $ 1.65 $ 4.27 =========== =========== =========== =========== Weighted average common shares - diluted 28,603 28,645 28,870 28,609 =========== =========== =========== =========== Bio-Rad Laboratories, Inc. Condensed Consolidated Balance Sheets (In thousands) September 30, December 31, 2013 2012 -------------- -------------- (UNAUDITED) Current assets: Cash and cash equivalents $ 291,793 $ 463,388 Short-term investments 270,027 457,685 Accounts receivable, net 383,471 398,739 Inventories, net 523,503 455,120 Other current assets 205,749 161,750 -------------- -------------- Total current assets 1,674,543 1,936,682 Property, plant and equipment, net 425,076 416,938 Goodwill, net 513,705 495,418 Purchased intangibles, net 276,054 260,939 Other assets 391,030 333,526 -------------- -------------- Total assets $ 3,280,408 $ 3,443,503 ============== ============== Current liabilities: Accounts payable $ 131,899 $ 130,867 Accrued payroll and employee benefits 133,218 135,955 Notes payable and current maturities of long-term debt 1,705 1,750 Income and other taxes payable 32,424 34,779 Other current liabilities 163,639 169,049 -------------- -------------- Total current liabilities 462,885 472,400 Long-term debt, net of current maturities 435,541 732,414 Other long-term liabilities 257,742 223,149 -------------- -------------- Total liabilities 1,156,168 1,427,963 -------------- -------------- Bio-Rad stockholders' equity 2,124,240 2,015,005 Noncontrolling interests - 535 -------------- -------------- Total stockholders' equity 2,124,240 2,015,540 -------------- -------------- Total liabilities and stockholders' equity $ 3,280,408 $ 3,443,503 ============== ============== Bio-Rad Laboratories, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (UNAUDITED) Nine Months Ended September 30, 2013 2012 -------------- -------------- Cash flows from operating activities: Cash received from customers $ 1,531,251 $ 1,512,991 Cash paid to suppliers and employees (1,341,006) (1,227,911) Interest paid (50,188) (35,929) Income tax payments (50,140) (77,411) Other operating activities 12,118 8,504 -------------- -------------- Net cash provided by operating activities 102,035 180,244 Cash flows from investing activities: Payments for acquisitions and long-term investments (68,510) (38,479) Other investing activities 105,425 (302,285) -------------- -------------- Net cash provided by (used in) investing activities 36,915 (340,764) Cash flows from financing activities: Payments on long-term borrowings (300,178) (496) Other financing activities (15,287) 9,569 -------------- -------------- Net cash (used in) provided by financing activities (315,465) 9,073 Effect of foreign exchange rate changes on cash 4,920 3,673 -------------- -------------- Net decrease in cash and cash equivalents (171,595) (147,774) Cash and cash equivalents at beginning of period 463,388 574,231 -------------- -------------- Cash and cash equivalents at end of period $ 291,793 $ 426,457 ============== ============== Reconciliation of net income including noncontrolling interests to net cash provided by operating activities: Net income including noncontrolling interests $ 47,675 $ 122,373 Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities: Depreciation and amortization 105,181 94,885 Changes in working capital (59,545) (31,101) Other 8,724 (5,913) -------------- -------------- Net cash provided by operating activities $ 102,035 $ 180,244 ============== ==============


Investor and Financial Contacts:
Bio-Rad Laboratories, Inc.
Christine Tsingos
Executive Vice President and Chief Financial Officer
Ron Hutton
Vice President, Treasurer
510-724-7000
Email Contact



Help employers find you! Check out all the jobs and post your resume.

Read at BioSpace.com


comments powered by Disqus
   

ADD TO DEL.ICIO.US    ADD TO DIGG    ADD TO FURL    ADD TO STUMBLEUPON    ADD TO TECHNORATI FAVORITES