SOURCE: Bio-Rad Laboratories

November 03, 2009 16:29 ET

Bio-Rad Reports Third-Quarter Currency-Neutral Revenue Growth of 11 Percent

HERCULES, CA--(Marketwire - November 3, 2009) - 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, 2009.

Third-quarter reported revenues were $461.1 million, up 4.4% compared to $441.8 million reported for the third quarter of 2008. On a currency-neutral basis, quarterly revenues increased 11.1% compared to the same period last year. This improvement is primarily the result of organic growth across a range of products in Bio-Rad's two main areas, Life Science and Clinical Diagnostics as well as the additional revenue generated from the purchase of certain DiaMed distributors since the third quarter of 2008.

Net income attributable to Bio-Rad for the third quarter was $38.5 million, or $1.38 per share on a fully diluted basis, compared to $27.8 million or $1.00 per share, respectively, during the same period last year. Third-quarter gross margin increased to 56.5% compared to 54.4% during the same quarter last year.

Year-to-date revenues were $1.3 billion, down 2.1% compared to the first three quarters in 2008. Adjusting for the impact of currency effects, revenue growth was 5.9%. Year-to-date net income attributable to Bio-Rad for 2009 was $106.8 million, or $3.85 per share on a fully diluted basis, compared to $97.7 million, or $3.54 per share, respectively, during the same period in 2008.

"We are pleased with the results of the third-quarter, which show continued strength in many of our product areas," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "As we had expected, the economy continued to have somewhat of a negative impact on customer spending particularly in our Life Science segment, but we are encouraged by the resiliency we've seen in many of our markets."

Life Science

The Life Science segment net sales for the third quarter were $150.4 million, down 4.1% or 0.4% on a currency-neutral basis, compared to the same period last year. Sales across a number of product lines in the Life Science segment performed well during the quarter, in particular, process chromatography and gene expression products. Performance of the segment also benefited from sales of the Company's ProteOn™ protein interaction array system, as many customers began to order additional instruments. Growth in the Life Science segment was negatively impacted by slowed research markets in both the U.S. and Europe, which reflect constraint and delays in spending by academic and biopharmaceutical customers. In September, Bio-Rad and Bruker Corporation (NASDAQ: BRKR), a manufacturer of mass spectrometry (MS) instruments, announced the launch of the Lucid Proteomics System, which improves the possibility of discovering biomarkers that have clinical relevance.

Clinical Diagnostics

The Clinical Diagnostics segment reported net sales of $307.5 million for the third quarter, up 9.3% compared to the third quarter in 2008. On a currency-neutral basis, sales for the segment increased 17.8%. These gains are the result of strong sales across a number of product lines, including blood virus testing products, quality control products, and the Company's BioPlex® 2200 system. The segment also benefited from additional revenue resulting from the purchase of certain DiaMed European distributors in the fourth quarter of 2008, as well as the purchase of the DiaMed distributor in India in the second quarter of this year. In September, Bio-Rad announced the launch of Unity Real Time® 2.0, the latest version of its expert QC Data Management solution. The platform is designed to manage laboratory QC and to validate analytical runs.

Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) November 3, 2009. Interested parties may access the call by dialing 866-700-7173 (in the U.S.) or 617-213-8838 (international), access number 78653201.

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 96529078 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: 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 6,500 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     Nine Months Ended
                                   September 30,         September 30,
                                ------------------  ----------------------
                                  2009      2008       2009        2008
                                --------  --------  ----------  ----------
Net sales                       $461,055  $441,842  $1,289,171  $1,316,400
Cost of goods sold               200,545   201,300     557,797     600,554
                                --------  --------  ----------  ----------
Gross profit                     260,510   240,542     731,374     715,846

Selling, general and
 administrative expense          153,623   150,518     437,606     436,807
Research and development
 expense                          39,516    38,830     119,075     118,398
                                --------  --------  ----------  ----------
Income from operations            67,371    51,194     174,693     160,641

Interest expense                  14,487     8,180      32,661      24,128
Foreign exchange losses, net       1,472        91       3,249       2,396
Other (income) expense, net          192      (523)     (4,956)     (4,667)
                                --------  --------  ----------  ----------
Income before taxes               51,220    43,446     143,739     138,784

Provision for income taxes       (11,920)  (12,557)    (33,096)    (34,012)
                                --------  --------  ----------  ----------
Net income including
 noncontrolling interests         39,300    30,889     110,643     104,772
   Less: Net income
         attributable to
         noncontrolling
         interests                  (776)   (3,056)     (3,885)     (7,046)
                                --------  --------  ----------  ----------

Net income attributable to
 Bio-Rad                        $ 38,524  $ 27,833  $  106,758  $   97,726
                                ========  ========  ==========  ==========

Basic earnings per share:
     Net income attributable to
      Bio-Rad                   $   1.40  $   1.02  $     3.90  $     3.61
                                ========  ========  ==========  ==========

     Weighted average common
      shares                      27,431    27,171      27,375      27,055
                                ========  ========  ==========  ==========

Diluted earnings per share:
     Net income attributable to
      Bio-Rad                   $   1.38  $   1.00  $     3.85  $     3.54
                                ========  ========  ==========  ==========

     Weighted average common
      shares                      27,875    27,747      27,749      27,619
                                ========  ========  ==========  ==========






                        Bio-Rad Laboratories, Inc.
                  Condensed Consolidated Balance Sheets

                              (In thousands)
                                (UNAUDITED)

                                                September 30,  December 31,
                                                    2009          2008
                                                ------------- -------------
Current assets:
     Cash and cash equivalents                  $     554,179 $     204,524
     Short-term investments                            87,930        38,950
     Accounts receivable, net                         350,762       339,653
     Inventories, net                                 383,896       375,616
     Other current assets                             126,634       135,198
                                                ------------- -------------
          Total current assets                      1,503,401     1,093,941

Net property, plant and equipment                     305,921       300,732
Goodwill                                              327,469       321,820
Purchased intangibles, net                            216,730       228,590
Other assets                                          124,685        92,181
                                                ------------- -------------
          Total assets                          $   2,478,206 $   2,037,264
                                                ============= =============


Current liabilities:
     Notes payable and current maturities of
      long-term debt                            $       5,346 $       9,578
     Accounts payable                                  92,381       117,982
     Accrued payroll and employee benefits            118,891       119,420
     Sales, income and other taxes payable             53,810        33,731
     Other current liabilities                        145,267       137,323
                                                ------------- -------------
          Total current liabilities                   415,695       418,034

Long-term debt, net of current maturities             738,687       445,979
Other long-term liabilities                            96,153       102,611
                                                ------------- -------------
          Total liabilities                         1,250,535       966,624

Bio-Rad stockholders' equity                        1,208,661     1,041,139
Noncontrolling interests                               19,010        29,501
                                                ------------- -------------
          Total stockholders' equity                1,227,671     1,070,640
                                                ------------- -------------
          Total liabilities and stockholders'
           equity                               $   2,478,206 $   2,037,264
                                                ============= =============




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

                              (In thousands)
                                (UNAUDITED)

                                                      Nine Months Ended
                                                        September 30,
                                                      2009         2008
                                                  -----------  -----------

Cash flows from operating activities:
     Cash received from customers                 $ 1,291,054  $ 1,318,003
     Cash paid to suppliers and employees          (1,030,153)  (1,152,538)
     Interest paid                                    (31,511)     (24,141)
     Income tax payments                              (27,746)     (31,053)
     Other operating activities                         7,708        2,759
                                                  -----------  -----------
     Net cash provided by operating activities        209,352      113,030

Cash flows from investing activities:
     Payments for acquisitions and long-term
      investments                                     (35,937)     (18,069)
     Other investing activities                      (117,424)     (63,799)
                                                  -----------  -----------
     Net cash used in investing activities           (153,361)     (81,868)

Cash flows from financing activities:
     Payments on long-term debt                        (5,253)      (9,349)
     Long-term borrowings                             294,750            -
     Other financing activities                         2,766       13,758
                                                  -----------  -----------
     Net cash provided by financing activities        292,263        4,409

Effect of exchange rate changes on cash                 1,401       (3,708)
                                                  -----------  -----------

Net increase in cash and cash equivalents             349,655       31,863
Cash and cash equivalents at beginning of period      204,524      161,764
                                                  -----------  -----------
Cash and cash equivalents at end of period        $   554,179  $   193,627
                                                  ===========  ===========


Reconciliation of net income including
 noncontrolling interests to net cash provided
 by operating activities:

Net income including noncontrolling interests     $   110,643  $   104,772
Adjustments to reconcile net income including
 noncontrolling interests to net cash provided
 by operating activities:
     Depreciation and amortization                     74,003       74,322
     Changes in working capital                        23,583      (67,670)
     Other                                              1,123        1,606
                                                  -----------  -----------
Net cash provided by operating activities         $   209,352  $   113,030
                                                  ===========  ===========

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