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Bio-Rad Laboratories, Inc. (BIO) Reports Second-Quarter 2012 Financial Results



8/8/2012 9:41:39 AM

HERCULES, CA--(Marketwire - August 07, 2012) - 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 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.

"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.

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 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.

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 ========= ========= ========= ========== Bio-Rad Laboratories, Inc. Condensed Consolidated Balance Sheets (In thousands) June 30, December 31, 2012 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 ============= ============= Bio-Rad Laboratories, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (UNAUDITED) Six Months Ended June 30, 2012 2011 ------------ ------------ 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 ============ ============


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


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