HERCULES, CA--(Marketwire - November 01, 2011) - 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, 2011.
Third-quarter reported revenues were $516.5 million, up 9.5% compared to $471.5 million reported for the third quarter of 2010. On a currency-neutral basis, quarterly revenues increased 1.1% compared to the same period last year. Third-quarter gross margin increased to 57.3%, compared to 56.5% during the same quarter in 2010.
Net income attributable to Bio-Rad for the third quarter was $45.9 million, or $1.61 per share on a fully diluted basis versus $1.59 per share reported for the same period last year.
Year-to-date revenues grew by 9.3% to $1.5 billion compared to $1.4 billion for the first three quarters of 2010. Adjusting for the impact of currency, revenue growth was 3.4%.
Year-to-date net income attributable to Bio-Rad for 2011 was $119.0 million, or $4.18 per share on a fully diluted basis compared to $117.6 million, or $4.18 per share during the same period in 2010.
"While performance in the third-quarter shows good momentum and growth in many of our core product areas, we are feeling the impact of an uncertain economic environment in many of our markets abroad," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "As we wrap up the year, we will carefully monitor these pressures on our global operation and look for new opportunities to grow our business."
Life Science
The Life Science segment net sales for the third quarter were $171.5 million, up 11.9% compared to the same period last year. On a currency-neutral basis, Life Science segment sales increased by 5.1% compared to the third quarter of 2010. These results reflect strength of the segment's electrophoresis and imaging product lines, which showed solid growth during the third quarter. Performance was also bolstered by the Company's amplification products, several new product launches, as well as assays for the Bio-Plex® suspension array system, which can analyze up to 100 biomolecules in a single patient sample.
Clinical Diagnostics
Reported net sales for the Clinical Diagnostics segment in the third quarter rose to $341.3 million, up 8.4% compared to the same quarter last year. On a currency-neutral basis, sales were down 0.9%. Overall performance of the Clinical Diagnostics segment was negatively affected by economic challenges impacting worldwide healthcare markets, partially offset by continuing growth of our quality controls and BioPlex® 2200 product lines. In July, the Company announced that it had received FDA Premarket Application approval from the FDA for its fourth-generation HIV assay, the GS HIV Combo Ag/Ab EIA (enzyme immunoassay). The new assay detects both HIV antigens and HIV antibodies, offering earlier detection of HIV infections, including acute HIV infections.
Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) November 1, 2011. Interested parties may access the call by dialing 800-322-5044 (in the U.S.) or 617-614-4927 (international), access number 51248028.
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 19666335, 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 85,000 research and industry customers worldwide through its global network of operations. The Company employs over 6,800 people globally and had revenues exceeding $1.9 billion in 2010. 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, 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 Nine Months Ended
September 30, September 30,
------------------------ ------------------------
2011 2010 2011 2010
----------- ----------- ----------- -----------
Net sales $ 516,514 $ 471,502 $ 1,523,291 $ 1,393,398
Cost of goods sold 220,338 205,172 656,368 601,633
----------- ----------- ----------- -----------
Gross profit 296,176 266,330 866,923 791,765
Selling, general and
administrative
expense 176,867 148,654 521,370 458,541
Research and
development expense 45,387 42,874 136,327 126,999
----------- ----------- ----------- -----------
Income from operations 73,922 74,802 209,226 206,225
Interest expense 12,341 14,400 41,148 43,169
Foreign exchange
losses, net 6,346 2,749 12,132 3,546
Other (income)
expense, net (538) (256) (5,907) (3,572)
----------- ----------- ----------- -----------
Income before income
taxes 55,773 57,909 161,853 163,082
Provision for income
taxes (9,911) (12,824) (43,031) (44,084)
----------- ----------- ----------- -----------
Net income including
noncontrolling
interests 45,862 45,085 118,822 118,998
Net loss (income)
attributable to
noncontrolling
interests 35 (321) 162 (1,416)
----------- ----------- ----------- -----------
Net income attributable
to Bio-Rad $ 45,897 $ 44,764 $ 118,984 $ 117,582
=========== =========== =========== ===========
Basic earnings per
share:
Net income per share
basic attributable to
Bio-Rad $ 1.63 $ 1.62 $ 4.25 $ 4.26
=========== =========== =========== ===========
Weighted average
common shares - basic 28,072 27,697 27,997 27,616
=========== =========== =========== ===========
Diluted earnings per
share:
Net income per share
diluted attributable
to Bio-Rad $ 1.61 $ 1.59 $ 4.18 $ 4.18
=========== =========== =========== ===========
Weighted average
common shares -
diluted 28,456 28,103 28,454 28,110
=========== =========== =========== ===========
Bio-Rad Laboratories, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
September 30, December 31,
2011 2010
-------------- --------------
(UNAUDITED)
Current assets:
Cash and cash equivalents $ 671,028 $ 906,551
Restricted cash - 6,422
Short-term investments 239,174 118,636
Accounts receivable, net 375,031 387,996
Inventories, net 445,581 398,100
Other current assets 146,889 157,641
-------------- --------------
Total current assets 1,877,703 1,975,346
Property, plant and equipment, net 338,942 333,617
Goodwill, net 371,227 363,981
Purchased intangibles, net 180,228 203,881
Other assets 201,695 185,939
-------------- --------------
Total assets $ 2,969,795 $ 3,062,764
============== ==============
Current liabilities:
Accounts payable $ 113,476 $ 113,440
Accrued payroll and employee benefits 120,167 131,381
Notes payable and current maturities of
long-term debt 806 233,181
Income and other taxes payable 46,368 50,935
Other current liabilities 134,509 137,690
-------------- --------------
Total current liabilities 415,326 666,627
Long-term debt, net of current maturities 731,597 731,100
Other long-term liabilities 129,226 124,518
-------------- --------------
Total liabilities 1,276,149 1,522,245
Bio-Rad stockholders' equity 1,693,149 1,536,696
Noncontrolling interests 497 3,823
-------------- --------------
Total stockholders' equity 1,693,646 1,540,519
-------------- --------------
Total liabilities and stockholders' equity $ 2,969,795 $ 3,062,764
============== ==============
Bio-Rad Laboratories, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(UNAUDITED)
Nine Months
Ended September 30,
2011 2010
------------- -------------
Cash flows from operating activities:
Cash received from customers $ 1,508,934 $ 1,367,777
Cash paid to suppliers and employees (1,249,674) (1,143,699)
Interest paid (46,086) (48,812)
Income tax payments (38,029) (50,254)
Other operating activities 6,094 509
------------- -------------
Net cash provided by operating activities 181,239 125,521
Cash flows from investing activities:
Payments for acquisitions and long-term
investments (8,698) (88,694)
Other investing activities (205,191) (75,716)
------------- -------------
Net cash used in investing activities (213,889) (164,410)
Cash flows from financing activities:
Long-term borrowings - 2,000
Payments on long-term borrowings (226,615) (5,441)
Other financing activities 14,788 10,664
------------- -------------
Net cash (used in) provided by financing
activities (211,827) 7,223
Effect of foreign exchange rate changes on
cash 8,954 12,368
------------- -------------
Net decrease in cash and cash equivalents (235,523) (19,298)
Cash and cash equivalents at beginning of
period 906,551 649,938
------------- -------------
Cash and cash equivalents at end of period $ 671,028 $ 630,640
============= =============
Reconciliation of net income including
noncontrolling interests to net cash provided
by operating activities:
Net income including noncontrolling interests $ 118,822 $ 118,998
Adjustments to reconcile net income including
noncontrolling interests to net cash provided
by operating activities:
Depreciation and amortization 88,127 79,964
Changes in working capital (49,450) (73,589)
Other 23,740 148
------------- -------------
Net cash provided by operating activities $ 181,239 $ 125,521
============= =============
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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