Bio-Rad Laboratories, Inc. Reports Third-Quarter 2012 Financial Results

HERCULES, CA--(Marketwire - November 06, 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 third quarter ended September 30, 2012.

Third-quarter reported revenues were $498.7 million, a decrease of 3.5% compared to $516.5 million reported for the third quarter of 2011. On a currency-neutral basis, quarterly revenues increased 3.6% compared to the same period last year. This growth includes $5.2 million of sales of droplet digital PCR products related to Bio-Rad’s acquisition of QuantaLife in October 2011. Third-quarter gross margin was 54.8%, compared to 57.3% during the same quarter in 2011. Gross margin was impacted by approximately $2.2 million of amortization expense related to the Company’s acquisition of QuantaLife, as well as a $3.8 million reserve associated with certain environmental issues.

Net income for third quarter was $42.4 million, or $1.48 per share on a fully diluted basis versus $45.9 million, or $1.61 per share reported for the same period last year. Bio-Rad’s current quarter income results were favorably impacted by $8.5 million due to a reduction in the valuation of the contingent consideration associated with the QuantaLife acquisition.

Year-to-date revenues were $1.50 billion, a decrease of 1.8% compared to $1.52 billion reported in the first three quarters of 2011. Adjusting for the impact of currency, year-to-date revenue growth was 2.7%.

Year-to-date net income for the first three quarters of 2012 was $121.7 million, or $4.26 per share on a fully diluted basis compared to $119.0 million, or $4.18 per share reported during the same period in 2011.

“Performance in the third quarter reflects momentum and growth in many of our product areas, although macroeconomic challenges continue to have an impact on our performance,” said Norman Schwartz, Bio-Rad President and Chief Executive Officer.

Life Science
The Life Science segment net sales for the third quarter were $167.0 million, down 2.6% compared to the same period last year. On a currency-neutral basis, Life Science segment sales increased by 2.2% compared to the third quarter of 2011. Performance during the third quarter reflects strength across the segment’s product lines, in particular, the Company’s QX100™ Droplet Digital™ PCR system as well as shipments of process chromatography media. Strong sales in North America were offset by slowness in Europe and Japan. In September, Bio-Rad introduced the TC20™ automated cell counter, the next generation of the Company’s TC10™ automated cell counter that provides accurate and reliable counts of live mammalian cells in 30 seconds. Also during the quarter, Bio-Rad acquired an automated benchtop cell sorting system from Propel Labs. First shipments of the S3™ Cell Sorter are anticipated in January 2013.

Clinical Diagnostics
Reported net sales for the Clinical Diagnostics segment in the third quarter were $328.4 million, down 3.8% compared to the third quarter in 2011. On a currency-neutral basis, sales were up 4.5%. During the quarter, the Clinical Diagnostics segment had growth across most product lines most notably from quality controls, diabetes and immunohematology products, as well as the BioPlex® 2200 system. Strength in the Pacific Rim, the U.S., and Eastern Europe were offset by weakness in Western Europe.

Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) November 6, 2012. Interested parties may access the call by dialing 866-730-5764 (in the U.S.) or 857-350-1588 (international), access number 44911474.

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 48801274, 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 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 100,000 research and industry customers worldwide through its global network of operations. The Company employs over 7,000 people globally and had revenues exceeding $2 billion in 2011. For more information, 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 and Quarterly Reports on Form 10-Q. 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 Nine Months Ended September 30, September 30, ---------------------- ---------------------- 2012 2011 2012 2011 ---------- ---------- ---------- ---------- Net sales $ 498,697 $ 516,514 $1,495,396 $1,523,291 Cost of goods sold 225,187 220,338 655,404 656,368 ---------- ---------- ---------- ---------- Gross profit 273,510 296,176 839,992 866,923 Selling, general and administrative expense 160,274 176,867 493,823 521,370 Research and development expense 49,004 45,387 154,263 136,327 ---------- ---------- ---------- ---------- Income from operations 64,232 73,922 191,906 209,226 Interest expense 11,901 12,341 37,498 41,148 Foreign exchange losses, net 448 6,346 3,508 12,132 Other (income) expense, net (1,511) (538) (14,692) (5,907) ---------- ---------- ---------- ---------- Income before income taxes 53,394 55,773 165,592 161,853 Provision for income taxes (11,023) (9,911) (43,712) (43,031) ---------- ---------- ---------- ---------- Net income including noncontrolling interests 42,371 45,862 121,880 118,822 Net loss (income) attributable to noncontrolling interests 13 35 (148) 162 ---------- ---------- ---------- ---------- Net income attributable to Bio-Rad $ 42,384 $ 45,897 $ 121,732 $ 118,984 ========== ========== ========== ========== Basic earnings per share: Net income per share basic attributable to Bio-Rad $ 1.50 $ 1.63 $ 4.31 $ 4.25 ========== ========== ========== ========== Weighted average common shares - basic 28,312 28,072 28,255 27,997 ========== ========== ========== ========== Diluted earnings per share: Net income per share diluted attributable to Bio-Rad $ 1.48 $ 1.61 $ 4.26 $ 4.18 ========== ========== ========== ========== Weighted average common shares - diluted 28,645 28,456 28,609 28,454 ========== ========== ========== ========== Bio-Rad Laboratories, Inc. Condensed Consolidated Balance Sheets (in thousands) September 30, December 31, 2012 2011 ------------- ------------- (UNAUDITED) Current assets: Cash and cash equivalents $ 426,457 $ 574,231 Short-term investments 427,164 238,884 Accounts receivable, net 375,800 398,674 Inventories, net 458,428 433,510 Other current assets 157,592 152,856 ------------- ------------- Total current assets 1,845,441 1,798,155 Property, plant and equipment, net 397,949 349,501 Goodwill, net 489,355 468,933 Purchased intangibles, net 268,866 259,497 Other assets 301,405 220,717 ------------- ------------- Total assets $ 3,303,016 $ 3,096,803 ============= ============= Current liabilities: Accounts payable $ 113,282 $ 129,124 Accrued payroll and employee benefits 129,690 112,564 Notes payable and current maturities of long- term debt 306 814 Income and other taxes payable 30,396 52,285 Other current liabilities 159,992 164,328 ------------- ------------- Total current liabilities 433,666 459,115 Long-term debt, net of current maturities 732,233 731,698 Other long-term liabilities 201,635 161,608 ------------- ------------- Total liabilities 1,367,534 1,352,421 Bio-Rad stockholders’ equity 1,934,882 1,743,937 Noncontrolling interests 600 445 ------------- ------------- Total stockholders’ equity 1,935,482 1,744,382 ------------- ------------- Total liabilities and stockholders’ equity $ 3,303,016 $ 3,096,803 ============= ============= 

 Bio-Rad Laboratories, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (UNAUDITED) Nine Months Ended September 30, 2012 2011 ----------- ----------- Cash flows from operating activities: Cash received from customers $ 1,512,991 $ 1,508,934 Cash paid to suppliers and employees (1,231,537) (1,249,674) Interest paid (35,929) (46,086) Income tax payments (73,784) (38,029) Other operating activities 8,503 6,094 ----------- ----------- Net cash provided by operating activities 180,244 181,239 Cash flows from investing activities: Payments for acquisitions and long-term investments (38,479) (8,698) Other investing activities (302,285) (205,191) ----------- ----------- Net cash used in investing activities (340,764) (213,889) Cash flows from financing activities: Payments on long-term borrowings (496) (226,615) Other financing activities 9,569 14,788 ----------- ----------- Net cash provided by (used in) financing activities 9,073 (211,827) Effect of foreign exchange rate changes on cash 3,673 8,954 ----------- ----------- Net decrease in cash and cash equivalents (147,774) (235,523) Cash and cash equivalents at beginning of period 574,231 906,551 ----------- ----------- Cash and cash equivalents at end of period $ 426,457 $ 671,028 =========== =========== Reconciliation of net income including noncontrolling interests to net cash provided by operating activities: Net income including noncontrolling interests $ 121,880 $ 118,822 Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities: Depreciation and amortization 94,885 88,127 Changes in working capital (32,271) (49,450) Other (4,250) 23,740 ----------- ----------- Net cash provided by operating activities $ 180,244 $ 181,239 =========== ===========