HERCULES, CA--(Marketwire - May 05, 2009) - Bio-Rad Laboratories, Inc. (NYSE: BIO) and (NYSE: BIOb), a multinational manufacturer and distributor of life science research and clinical diagnostic products, announced financial results today for the first quarter ended March 31, 2009.
First-quarter reported revenues were $400.9 million, down 5.0% compared to $422.2 million reported for the first quarter of 2008. On a currency-neutral basis, quarterly revenues increased 3.2% compared to the same period last year. Net income attributable to Bio-Rad for the first quarter was $30.3 million, or $1.10 per share on a fully diluted basis, compared to $26.5 million or $0.96 per share, respectively, during the same period last year. Reflected in operating income are $5.4 million of amortization and purchase accounting adjustments for the first quarter of 2009 associated with the DiaMed acquisition, a decrease of approximately $1.0 million versus the first quarter of 2008.
First-quarter gross margin was stronger than usual at 57.1% compared to 53.7% during the same quarter last year. The higher margin in the first quarter of 2009 was the result of favorable sales mix and improved manufacturing efficiencies, as well as some favorable, non-recurring events.
"Performance for the first quarter of 2009 shows continued progress in spite of a weakened global economy and currency headwinds," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "While there is still uncertainty about the economy, we are encouraged by the resilience of our markets to date."
Life Science
The Life Science segment net sales for the quarter were $140.3 million, down 9.2% or 3.0% on a currency-neutral basis, compared to the same period last year. Performance of the Life Science segment was negatively impacted by a general slowness in the research market in the U.S. and Europe. In addition, the timing of the delivery of certain process chromatography products in the first quarter last year had an adverse impact on the comparison to the first quarter this year. Sales across a number of product lines in the Life Science segment performed well during the quarter, in particular the Bio-Plex® suspension array system assays and the Company's real-time polymerase chain reaction (PCR) instruments and reagents.
Clinical Diagnostics
The Clinical Diagnostics segment reported net sales of $257.5 million for the quarter, down 2.3% compared to the first quarter in 2008. On a currency-neutral basis, sales for the segment increased 7.2%. These results reflect continued growth across all product lines, most notably quality control, diabetes, microbiology, and blood virus testing products. Performance in this segment also benefited from placements of the Company's BioPlex® 2200 system, which employs multiplexing technology to analyze multiple disease markers from a single patient sample.
Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) May 5, 2009. Interested parties may access the call by dialing 800-561-2718 (in the U.S.) or 617-614-3525 (international), access number 62277042. The live webcast may also be accessed at http://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 51476577 for seven days following the call, and the webcast can be accessed at http://www.bio-rad.com for 30 days.
About Bio-Rad
Bio-Rad Laboratories, Inc. (NYSE: BIO) and (NYSE: BIOb) 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 85,000 research and industry customers worldwide through its global network of operations. The Company employs over 6,500 people globally and had revenues exceeding $1.7 billion in 2008. 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
March 31,
----------- -----------
2009 2008
----------- -----------
Net sales $ 400,933 $ 422,197
Cost of goods sold 172,031 195,314
----------- -----------
Gross profit 228,902 226,883
Selling, general and administrative expense 140,313 139,655
Product research and development expense 37,152 37,489
----------- -----------
Income from operations 51,437 49,739
Interest expense 7,807 7,957
Foreign exchange (gains) losses, net (774) 2,593
Other (income) expense, net 1,159 (193)
----------- -----------
Income before taxes 43,245 39,382
Provision for income taxes (11,202) (10,823)
----------- -----------
Net income 32,043 28,559
Less: Net income attributable to
noncontrolling interests (1,778) (2,064)
----------- -----------
Net income attributable to Bio-Rad $ 30,265 $ 26,495
=========== ===========
Basic earnings per share
Net income attibutable to Bio-Rad $ 1.11 $ 0.98
=========== ===========
Weighted average common shares 27,321 26,955
=========== ===========
Diluted earnings per share
Net income attibutable to Bio-Rad $ 1.10 $ 0.96
=========== ===========
Weighted average common shares 27,618 27,538
=========== ===========
Bio-Rad Laboratories, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(UNAUDITED)
March 31, December 31,
2009 2008
------------ ------------
Current Assets:
Cash and cash equivalents $ 192,870 $ 204,524
Short-term investments 29,960 38,950
Accounts receivable, net 326,307 339,653
Inventories, net 369,041 375,616
Other current assets 131,744 135,198
------------ ------------
Total current assets 1,049,922 1,093,941
Net property, plant and equipment 294,611 300,732
Goodwill 307,916 321,820
Purchased intangibles, net 211,245 228,590
Other assets 91,614 92,181
------------ ------------
Total assets $ 1,955,308 $ 2,037,264
============ ============
Current liabilities:
Notes payable and current maturities of
long-term debt $ 6,253 $ 9,578
Accounts payable 95,952 117,982
Accrued payroll and employee benefits 91,621 119,420
Sales, income and other taxes payable 36,739 33,731
Other current liabilities 125,314 137,323
------------ ------------
Total current liabilities 355,879 418,034
Long-term debt, net of current maturities 444,209 445,979
Other long-term liabilities 96,921 102,611
------------ ------------
Total liabilities 897,009 966,624
Bio-Rad stockholders' equity 1,026,612 1,040,731
Noncontrolling interests 31,687 29,909
------------ ------------
Total stockholders' equity 1,058,299 1,070,640
------------ ------------
Total liabilities and stockholders' equity $ 1,955,308 $ 2,037,264
============ ============
Bio-Rad Laboratories, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(UNAUDITED)
Three Months
Ended March 31,
2009 2008
----------- -----------
Cash flows from operating activities:
Cash received from customers $ 395,356 $ 436,521
Cash paid to suppliers and employees (375,628) (421,973)
Interest paid (8,775) (8,938)
Income tax payments (6,012) (6,398)
Other operating activities 1,430 (1,389)
----------- -----------
Net cash provided by (used in) operating
activities 6,371 (2,177)
Cash flows from investing activities:
Payment for acquisitions and long-term
investments (441) (17,106)
Other investing activities (12,275) (17,858)
----------- -----------
Net cash used in investing activities (12,716) (34,964)
Cash flows from financing activities:
Payments on long-term debt (1,882) (2,190)
Other financing activities (161) 4,979
----------- -----------
Net cash provided by (used in) financing
activities (2,043) 2,789
Effect of exchange rate changes on cash (3,266) 2,068
----------- -----------
Net decrease in cash and cash equivalents (11,654) (32,284)
Cash and cash equivalents at beginning of period 204,524 161,764
----------- -----------
Cash and cash equivalents at end of period $ 192,870 $ 129,480
=========== ===========
Reconciliation of net income attributable to
Bio-Rad to net cash provided by (used in)
operating activities
Net income attributable to Bio-Rad $ 30,265 $ 26,495
Adjustments to reconcile net income attributable
to Bio-Rad to net cash provided by (used in)
operating activities:
Depreciation and amortization 22,327 23,740
Changes in working capital (46,871) (60,027)
Other 650 7,615
----------- -----------
Net cash provided by (used in) operating
activities $ 6,371 $ (2,177)
=========== ===========
For more information contact:
Christine Tsingos, Vice President and Chief Financial Officer, or
Ron Hutton, Treasurer
Bio-Rad Laboratories, Inc.
510-724-7000
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