New Brunswick Scientific Reports Record Sales for 2006
Published: Mar 29, 2007
EDISON, N.J., March 29 /PRNewswire-FirstCall/ -- New Brunswick Scientific Co., Inc. (NBS) , today announced record net sales and higher net income for the year ended December 31, 2006.
Net sales advanced 11.6% to $75.5 million in 2006, exceeding the previous record of $67.6 million reported for the year ended December 31, 2005. Full- year net income increased 50.8%, reaching $3.8 million compared with 2005's net income of $2.5 million. Diluted earnings per share advanced 46.4% to $0.41, versus last year's $0.28. During the year's final quarter a one-time pre-tax recognition bonus of $396,000 was paid to the company's co-founder upon his retirement as chief executive officer. Excluding the impact from this item, adjusted net income for the year was $4.0 million, or $0.43 per diluted share. Please see the related disclosure and reconciliation of GAAP to non- GAAP measures contained in this release(1).
Net sales for fourth-quarter 2006 rose 8.7% to a new quarterly high of $21.9 million from $20.2 million for the comparable 2005 period. Fourth- quarter net income was $1.1 million, or $0.11 per diluted share, compared with $1.25 million, or $0.14 per diluted share, for the same period one year ago. Excluding the impact of the aforementioned one-time item, adjusted net income for the quarter was $1.3 million or $0.14 per diluted share. Please see the related disclosure and reconciliation of GAAP to non-GAAP measures contained in this release(1).
The increase in net sales was due principally to higher shipments of ultra-low temperature freezers, cell culture and fermentation equipment, and shakers. To a lesser extent, full-year sales benefited from a $247,000 foreign currency translation effect on international sales due to the weaker dollar relative to the 2005 period.
Gross margin for the full year improved to 40.5% from 2005's 40.0%. The margin improvement resulted from increased absorption of overhead expenses due to higher sales, and also reflects discounting that occurred on certain product lines in 2005.
Selling, general and administrative expenses as a percentage of sales declined to 26.6% for the full-year, versus 27.0% in last year's corresponding period. Research, development and engineering expenses for 2006 were $4.5 million, compared with $4.6 million in 2005.
Income from operations for the year increased 43% to $6.0 million, compared with $4.2 million for the corresponding period a year ago.
As previously announced, NBS is in the process of implementing a new Oracle Enterprise Resource Planning system. The Company went live with a significant portion of that system in the first Quarter of 2007. Such an implementation is a major undertaking both financially and from a management and personnel perspective. The implementation of this system is having the effect of temporarily slowing down the manufacturing process which will result in a temporary reduction in shipments and net sales.
Commenting on the results, NBS President and Chief Executive Officer James Orcutt said, "NBS realized a very good year in 2006. Order intake increased 6% over last year, and through better management of production planning and shorter cycle times, we were able to increase inventory turnover significantly. In addition, we also paid down approximately $4.5 million in debt and shareholders' equity increased by 23.0% from $36.7 million at the end of last year to $45.1 million at the end of 2006.
"As we look forward to 2007, we are encouraged by sustained momentum in order rates. We anticipate sales will be further augmented by new product launches and improvements made to existing products resulting from our focused R&D efforts."
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(1)Use of Non-GAAP Measures
Management believes that net earnings, basic and diluted earnings per share before special items, which are non-GAAP measurements, are meaningful to investors because they provide a view of the Company with respect to ongoing operating results. Special items represent significant charges or credits that are important to an understanding of the Company's overall operating results in the period presented. Such non-GAAP measurements are not recognized in accordance with generally accepted accounting principles (GAAP) and should not be viewed as an alternative to GAAP measures of performance. A reconciliation of GAAP measurements to non-GAAP can be found at the end of this release.
About New Brunswick Scientific
New Brunswick Scientific Co., Inc., is a leading global innovator providing a comprehensive line of equipment and instrumentation for the life science industry. The Company's products are used in the creation, maintenance and control of physical and biochemical environments required for the growth, detection and storage of microorganisms for medical, biological and chemical applications, environmental research and commercial products. Established in 1946, the Company is headquartered in Edison, New Jersey, with sales and distribution facilities located in the United States, Europe and Asia. For more information, please visit: http://www.nbsc.com
This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will" or words of similar meaning and include, but are not limited to, statements about the expected future business and financial performance of the Company. The forward-looking statements include a number of risks and uncertainties, which are detailed in Part I, Item 1A, "Risk Factors" of our Annual Reports on Form 10-K, and other risk factors identified herein or from time to time in our periodic filings with the Securities and Exchange Commission. Forward-looking statements are based on management's current expectations and assumptions, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially from these expectations and assumptions due to changes in global political, economic, business, competitive, market, regulatory, and other, factors. The Company undertakes no obligation to publicly update or review any forward-looking information, whether as a result of new information, future developments or otherwise.
-Financial Tables Follow- NEW BRUNSWICK SCIENTIFIC CO., INC., AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per-share amounts) (Unaudited) Three Months Ended Year Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2006 2005 2006 2005 Net sales $21,939 $20,191 $ 75,463 $67,616 Operating costs and expenses: Cost of sales 13,597 12,148 44,912 40,573 Selling, general and administrative expenses 5,671 4,841 20,085 18,243 Research, development and engineering expenses 1,052 1,074 4,488 4,620 Total operating costs and expenses 20,320 18,063 69,485 63,436 Income from operations 1,619 2,128 5,978 4,180 Other income (expense): Interest income 138 92 405 272 Interest expense (78) (92) (333) (359) Other, net 56 36 9 91 116 36 81 4 Income before income tax expense 1,735 2,164 6,059 4,184 Income tax expense 674 914 2,298 1,690 Net income $1,061 $1,250 $3,761 $2,494 Basic income per share $0.12 $0.14 $0.41 $0.28 Diluted income per share $0.11 $0.14 $0.41 $0.28 Basic weighted average number of shares outstanding 9,211 9,004 9,157 8,959 Diluted weighted average number of shares outstanding 9,272 9,083 9,222 9,022 SELECTED CONSOLIDATED BALANCE SHEET ITEMS (Dollars in thousands) (Unaudited) Dec. 31, 2006 Dec. 31, 2005 Cash and cash equivalents $8,082 $11,351 Accounts receivable, net 15,520 11,989 Inventories 13,483 13,155 Property, plant and equipment, net 8,921 6,595 Total assets 59,117 54,966 Accounts payable and accrued expenses 11,366 10,782 Long-term debt, net of current installments 874 1,389 Shareholders' equity 45,146 36,718 Working capital 27,333 22,870 Current ratio 3.3 to 1 2.5 to 1 (1) RECONCILIATION OF GAAP AND NON-GAAP MEASURES (In thousands, except per-share amounts) (Unaudited) Three Months Ended Year Ended December 31, 2006 December 31, 2006 Net Income Diluted EPS Net Income Diluted EPS GAAP Net income $1,061 $0.11 $3,761 $0.41 Recognition bonus (net of tax) 246 0.03 246 0.02 Non-GAAP Net income $1,307 $0.14 $ 4,007 $0.43
New Brunswick Scientific Co., Inc.
CONTACT: Investor Contacts - Thomas Bocchino, Chief Financial Officer andTreasurer of New Brunswick Scientific Co., Inc., +1-732-650-2500,email@example.com, or Matthew J. Dennis, CFA, NBS Investor Relations,Clear Perspective Group, LLC, +1-732-226-3030, firstname.lastname@example.org
Web site: http://www.nbsc.com/