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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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