SOURCE: Bio-Rad Laboratories

November 06, 2008 16:02 ET

Bio-Rad Reports Third-Quarter 2008 Sales Increase of 30%

HERCULES, CA--(Marketwire - November 6, 2008) - 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 third quarter ended September 30, 2008.

Third-quarter revenues were $441.8 million in 2008, up 30.1% compared to $339.7 million reported for the same period in 2007. This increase was due to organic growth across product areas in both the Life Science and Clinical Diagnostics segments as well as the addition of the products of DiaMed Holding AG acquired in the fourth quarter of 2007, which resulted in additional revenue of $63.5 million included in the third-quarter results. Excluding the revenue from the DiaMed products, third-quarter revenues were up 11.4%, or 5.6% on a currency-neutral basis, compared to the same quarter last year.

Net income for the third quarter in 2008 was $27.8 million, or $1.01 per share on a fully diluted basis, compared to $28.0 million, or $1.03 per share reported for the same period in 2007. Reflected in operating income is $7.7 million of amortization of intangibles and purchase accounting adjustments associated with the DiaMed acquisition. Third-quarter gross margin was 54.4% compared to 55.4% in the third quarter last year. Of the previously mentioned DiaMed adjustments, $5.7 million was recorded in cost of goods sold.

Year-to-date revenues grew by 31.5% compared to the first three quarters in 2007 to $1.316 billion. On a currency neutral basis, growth was 24.5%. Excluding the additional revenue resulting from the DiaMed acquisition, year-to-date revenue for 2008 grew by 12.5% to $1.127 billion or 5.6% on a currency-neutral basis. Year-to-date earnings per share for 2008 were $3.63 per share, or $3.55 per share on a fully diluted basis, and $3.03 and $2.96, respectively, for the same period of 2007.

"We are encouraged by financial results of the third quarter, which reflect strength in many of our product areas despite a continuing soft capital equipment market," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "As we move into the end of the fiscal year, we will carefully monitor our global business for signs of economic pressure."

Life Science

Life Science segment net sales for the quarter were $156.9 million, up 9.7% compared to the same period last year. On a currency-neutral basis, segment sales increased by 4.4%. Contributing to these results were strong sales of electrophoresis, chromatography, and gel imaging products as well as Bio-Plex® suspension array system reagents. Customer acceptance of Bio-Rad's next generation PCR instruments, the 1000-series thermal cycling and CFX Real Time platforms, continued to gain momentum during the third quarter. Capital instrument sales for the segment were down slightly in the quarter as a result of reduced spending by both academic and bio-pharmaceutical customers. Sales results in this segment were also somewhat tempered by continued erosion of BSE (bovine spongiform encephalopathy) testing revenue.

Clinical Diagnostics

The Clinical Diagnostics segment reported net sales of $281.4 million for the quarter, up 45.6% compared to the third quarter last year, or 39.4% on a currency neutral basis. Excluding revenue from the DiaMed acquisition, net sales were up 12.7% or 6.5%, on a currency neutral basis. These gains were the result of strong sales across a number of product lines, in particular, quality control, autoimmune, diabetes, and blood virus testing products. In September, Bio-Rad launched the BioPlex® 2200 Syphilis IgM kit in Europe. The new test detects IgM class antibodies to a bacterium that causes syphilis.

Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) November 6, 2008. Interested parties can access the call by dialing 866-383-7989 (in the U.S.), or 617-597-5328 (international), access number 50351132. 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 66463159, 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 6,300 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         Nine Months Ended
                              September 30,             September 30,
                        ------------------------  ------------------------
                            2008         2007         2008         2007
                        -----------  -----------  -----------  -----------
Net sales               $   441,842  $   339,742  $ 1,316,400  $ 1,001,364
Cost of goods sold          201,300      151,385      600,554      443,635
                        -----------  -----------  -----------  -----------
Gross profit                240,542      188,357      715,846      557,729

Selling, general, and
 administrative expense     150,518      117,687      436,807      344,988
Product research and
 development expense         38,830       33,145      118,398      100,680
                        -----------  -----------  -----------  -----------
Income from operations       51,194       37,525      160,641      112,061

   Interest expense           8,180        7,847       24,128       23,583
   Foreign exchange
    (gains) losses               91          257        2,396         (413)
   Other (income)
    expense, net               (523)      (5,687)      (4,667)     (19,368)
                        -----------  -----------  -----------  -----------
Income before taxes and
 minority interests          43,446       35,108      138,784      108,259

   Provision for income
    taxes                   (12,557)      (7,137)     (34,012)     (27,620)
   Minority interests
    in earnings of
    consolidated
    subsidiaries             (3,056)           -       (7,046)           -
                        -----------  -----------  -----------  -----------
Net income              $    27,833       27,971  $    97,726  $    80,639
                        ===========  ===========  ===========  ===========

Basic earnings per
 share
     Net income         $      1.03  $      1.05  $      3.63  $      3.03
                        ===========  ===========  ===========  ===========

     Weighted average
      common shares          27,029       26,715       26,953       26,651
                        ===========  ===========  ===========  ===========

Diluted earnings per
 share
     Net income         $      1.01  $      1.03  $      3.55  $      2.96
                        ===========  ===========  ===========  ===========

     Weighted average
      common shares          27,605       27,270       27,517       27,197
                        ===========  ===========  ===========  ===========




                        Bio-Rad Laboratories, Inc.
                  Condensed Consolidated Balance Sheets

                              (in thousands)
                                (UNAUDITED)


                                                 September 30, December 31,
                                                       2008        2007
                                                    ----------- -----------
Current assets:
     Cash and cash equivalents                      $   193,627 $   161,764
     Short-term investments                              40,685      61,977
     Accounts receivable, net                           348,253     358,076
     Inventories, net                                   383,266     321,015
     Other current assets                               117,615     126,142
                                                    ----------- -----------
              Total current assets                    1,083,446   1,028,974

Net property, plant, and equipment                      293,128     271,561
Goodwill                                                325,641     328,439
Purchased intangibles, net                              199,769     210,304
Other assets                                            112,961     132,316
                                                    ----------- -----------
              Total assets                          $ 2,014,945 $ 1,971,594
                                                    =========== ===========



Current liabilities:
     Notes payable and current maturities of
      long-term debt                                $    11,886 $    15,627
     Accounts payable                                   100,626      96,470
     Accrued payroll and employee benefits              107,502     121,255
     Sales, income, and other taxes payable              32,985      27,905
     Other current liabilities                          132,815     152,911
                                                    ----------- -----------
              Total current liabilities                 385,814     414,168

Long-term debt, net of current maturities               446,378     441,805
Other long-term liabilities                              96,934     109,497
Minority interests                                       35,584      34,434
Stockholders' equity                                  1,050,235     971,690
                                                    ----------- -----------
              Total liabilities, minority interests,
               and stockholders' equity             $ 2,014,945 $ 1,971,594
                                                    =========== ===========



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

                              (In thousands)
                                (UNAUDITED)


                                                      Nine Months Ended
                                                        September 30,
                                                      2008         2007
                                                  -----------  -----------

Cash flows from operating activities:
     Cash received from customers                 $ 1,318,003  $ 1,007,292
     Cash paid to suppliers and employees          (1,152,538)    (880,104)
     Interest paid                                    (24,141)     (24,008)
     Income tax payments                              (31,053)     (32,720)
     Litigation settlement                             (3,344)      (3,147)
     Other operating activities                         6,103       21,116
                                                  -----------  -----------
     Net cash provided by operating activities        113,030       88,429

Cash flows from investing activities:
     Payments for acquisitions and long-term
      investments                                     (18,069)      (2,496)
     Other investing activities                       (63,799)     142,554
                                                  -----------  -----------
     Net cash provided by (used in) investing
      activities                                      (81,868)     140,058

Cash flows from financing activities:
     Payments on long-term debt                        (9,349)        (488)
     Other financing activities                        13,758       13,078
                                                  -----------  -----------
     Net cash provided by financing activities          4,409       12,590

Effect of exchange rate changes on cash                (3,708)       8,108

                                                  -----------  -----------
Net increase in cash and cash equivalents              31,863      249,185
Cash and cash equivalents at beginning of period      161,764      223,607
                                                  -----------  -----------
Cash and cash equivalents at end of period        $   193,627  $   472,792
                                                  ===========  ===========


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

Net income                                        $    97,726  $    80,639
Adjustments to reconcile net income to net cash
 provided by operating activities:
     Depreciation and amortization                     74,322       43,406
     Changes in working capital                       (67,670)     (43,570)
     Litigation settlement                             (3,344)      (3,147)
     Other                                             11,996       11,101
                                                  -----------  -----------
Net cash provided by operating activities         $   113,030  $    88,429
                                                  ===========  ===========

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