SOURCE: Bio-Rad Laboratories

August 05, 2008 16:02 ET

Bio-Rad Reports Second-Quarter 2008 Sales Increase of 33%

HERCULES, CA--(Marketwire - August 5, 2008) - Bio-Rad Laboratories, Inc. (AMEX: BIO) and (AMEX: BIOb), a multinational manufacturer and distributor of life science research and clinical diagnostic products, announced financial results today for the second quarter ended June 30, 2008.

Second-quarter revenues were $452.4 million, up 33.4% compared to $339.1 million reported for the second quarter of 2007. On a currency-neutral basis, revenues increased 25.4% compared to the same period last year. The increase resulted from the addition of DiaMed Holding AG products to the Company's portfolio as well as organic growth across key product areas in both the Life Science and Clinical Diagnostics segments. Excluding the additional revenue from the DiaMed acquisition, second-quarter revenues were up 14.7%, or 6.6% on a currency-neutral basis, compared to the same quarter in 2007. Second-quarter gross margin was 54.9% compared to 56.0% in the second quarter last year.

Net income for the quarter was $43.4 million, or $1.58 per share on a fully diluted basis, compared to $25.7 million, or $0.95 per share during the second quarter of 2007.

Year-to-date revenues grew by 32.2% to $874.6 million compared to the same period last year. Adjusting for the impact of currency effects, revenue growth was 24.7%. Excluding the additional revenue from the DiaMed acquisition and currency, year-to-date organic revenues grew by 13.1% to $748.4 million, or 5.6% on a currency neutral basis.

Year-to-date net income for 2008 was $69.9 million compared to $52.7 million in the same period last year. On a per share basis, year-to-date net income for 2008 was $2.60 per share, or $2.54 per share on a fully diluted basis, and $1.98 and $1.94 for the first six months of 2007.

"We are pleased with our performance for the first half of the year," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "During the second quarter, we saw an increase in organic growth within our core businesses as well as broad customer acceptance of new products. As the year continues, we will continue to focus on the integration of DiaMed, which is on track and proceeding well, to date."

Life Science

Life Science segment net sales for the quarter were $161.6 million, up 10.7% compared to the same period last year. On a currency-neutral basis, segment sales increased by 3.2%. Performance in the Life Science segment benefited from sales of its electrophoresis, chromatography, and gel imaging products as well as Bio-Plex® suspension array system reagents, as several new assay panels for the Bio-Plex system were introduced during the quarter. Customer acceptance of the Company's next generation polymerase chain reaction (PCR) instruments, the new 1000-series thermal cycling and CFX Real Time platforms continued to gain momentum during the second quarter. Capital instrument sales for the segment were down slightly during in the quarter, reflecting a general softness in the market resulting from reduced spending by both academic and bio-pharmaceutical customers.

Clinical Diagnostics

The Clinical Diagnostics segment reported net sales of $287.4 million for the second quarter, up 51.4% compared to the second quarter last year, or 42.9% excluding currency effects. Excluding revenue from the DiaMed acquisition, net sales were up 17.9%, or 9.4% on a currency-neutral basis, from the same period last year. This performance was the result of growth across all product lines, in particular, quality control, diabetes, and autoimmune products. Sales were boosted in the Clinical Diagnostics segment by additional revenue from DiaMed, which added blood typing instruments and reagents to the Company's product offerings. Sales of the Company's in2it™ analyzer for point-of-care hemoglobin A1C testing; the MRSASelectTM test, a chromogenic medium used for the rapid screening of MRSA (methicillin-resistant Staphylococcus aureus); and the BioPlex® 2200 instrument and reagents also continued to fuel growth in the segment.

Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) August 5, 2008. Interested parties can access the call by dialing 866-700-7101 (in the U.S.), or 617-213-8837 (international), access number 62490028. The live webcast can 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 39213228, 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. (AMEX: BIO) and (AMEX: 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 approximately 6,300 people globally and had revenues approaching $1.5 billion in 2007. 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 Annual Report on Form 10-K for the fiscal year ended December 31, 2007, as updated by subsequent 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,
                                --------------------  --------------------
                                  2008       2007       2008       2007
                                ---------  ---------  ---------  ---------
Net sales                       $ 452,361  $ 339,114  $ 874,558  $ 661,622
Cost of goods sold                203,940    149,123    399,254    292,250
                                ---------  ---------  ---------  ---------
Gross profit                      248,421    189,991    475,304    369,372

    Selling, general, and
     administrative expense       146,634    119,551    286,289    227,301
    Product research and
     development expense           42,079     34,754     79,568     67,535
                                ---------  ---------  ---------  ---------
Income from operations             59,708     35,686    109,447     74,536

    Interest expense                7,991      7,867     15,948     15,736
    Foreign exchange (gains)
     losses                          (288)      (398)     2,305       (670)
    Other (income) expense, net    (3,951)    (7,495)    (4,144)   (13,681)
                                ---------  ---------  ---------  ---------
Income before taxes and
 minority interests                55,956     35,712     95,338     73,151

    Provision for income taxes    (10,632)   (10,041)   (21,455)   (20,483)
    Minority interests in
     earnings of consolidated
     subsidiaries                  (1,926)         -     (3,990)         -
                                ---------  ---------  ---------  ---------
Net income                      $  43,398  $  25,671  $  69,893  $  52,668
                                =========  =========  =========  =========

Basic earnings per share
     Net income                 $    1.61  $    0.96  $    2.60  $    1.98
                                =========  =========  =========  =========

     Weighted average common
      shares                       26,947     26,657     26,914     26,619
                                =========  =========  =========  =========

Diluted earnings per share
     Net income                 $    1.58  $    0.95  $    2.54  $    1.94
                                =========  =========  =========  =========

     Weighted average common
      shares                       27,478     27,164     27,470     27,160
                                =========  =========  =========  =========





                        Bio-Rad Laboratories, Inc.
                  Condensed Consolidated Balance Sheets

                              (In thousands)

                                (UNAUDITED)


                                                    June 30,   December 31,
                                                      2008         2007
                                                  ------------ ------------
Current assets:
     Cash and cash equivalents                    $    183,643 $    161,764
     Short-term investments                             43,512       61,977
     Accounts receivable, net                          376,985      358,076
     Inventories, net                                  382,684      321,015
     Other current assets                              132,958      126,142
                                                  ------------ ------------
              Total current assets                $  1,119,782 $  1,028,974

Net property, plant, and equipment                     290,737      271,561
Goodwill                                               347,439      328,439
Purchased intangibles, net                             221,681      210,304
Other assets                                           119,281      132,316
                                                  ------------ ------------
              Total assets                        $  2,098,920 $  1,971,594
                                                  ============ ============

Current liabilities:
     Notes payable and current maturities of
      long-term debt                              $     14,680 $     15,627
     Accounts payable                                  102,320       96,470
     Accrued payroll and employee benefits             105,069      121,255
     Sales, income and other taxes payable              41,241       27,905
     Other current liabilities                         144,777      152,911
                                                  ------------ ------------
              Total current liabilities                408,087      414,168

Long-term debt, net of current maturities              440,687      441,805
Other long-term liabilities                            103,413      109,497
Minority interests                                      32,175       34,434
Stockholders' equity                                 1,114,558      971,690
                                                  ------------ ------------
              Total liabilities, minority
               interests and stockholders' equity $  2,098,920 $  1,971,594
                                                  ============ ============



                       Bio-Rad Laboratories, Inc.
              Condensed Consolidated Statements of Cash Flows

                              (In thousands)

                                (UNAUDITED)

                                                      Six Months Ended
                                                          June 30,
                                                      2008         2007
                                                  -----------  -----------

Cash flows from operating activities:
     Cash received from customers                 $   877,910  $   654,230
     Cash paid to suppliers and employees            (781,755)    (600,174)
     Interest paid                                    (15,448)     (15,026)
     Income tax payments                              (16,848)     (17,835)
     Litigation settlement                             (2,213)      (2,082)
     Other operating activities                         5,265       14,318
                                                  -----------  -----------
     Net cash provided by operating activities         66,911       33,431

Cash flows from investing activities:
     Payments for acquisitions and long-term
      investments                                     (17,110)      (2,496)
     Other investing activities                       (35,043)     (33,486)
                                                  -----------  -----------
     Net cash used in investing activities            (52,153)     (35,982)

Cash flows from financing activities:
     Payments on long-term debt                        (4,414)        (305)
     Other financing activities                         8,090        9,660
                                                  -----------  -----------
     Net cash provided by financing activities          3,676        9,355

Effect of exchange rate changes on cash                 3,445        1,992

                                                  -----------  -----------
Net increase (decrease) in cash and cash
 equivalents                                           21,879        8,796
Cash and cash equivalents at beginning of the
 period                                               161,764      223,607
                                                  -----------  -----------
Cash and cash equivalents at end of period        $   183,643  $   232,403
                                                  ===========  ===========

Reconciliation of net income to net cash provided
 by operating activities:

Net income                                        $    69,893  $    52,668

Adjustments to reconcile net income to net
 cash provided by operating activities:
     Depreciation and amortization                     49,323       28,840
     Changes in working capital                       (61,270)     (44,855)
     Litigation settlement                             (2,213)      (2,082)
     Other                                             11,178       (1,140)
                                                  -----------  -----------
Net cash provided by operating activities         $    66,911  $    33,431
                                                  ===========  ===========

Contact Information

  • 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