SOURCE: Bio-Rad Laboratories

May 04, 2006 16:00 ET

Bio-Rad Laboratories Reports First-Quarter Results

HERCULES, CA -- (MARKET WIRE) -- May 4, 2006 -- Bio-Rad Laboratories, Inc. (AMEX: BIO) (AMEX: BIOb), a multinational manufacturer and distributor of life science research products and clinical diagnostics, announced financial results today for the first quarter ended March 31, 2006. First-quarter revenues from continuing operations were $308.3 million, up 3.0% compared to the $299.2 million reported for the first quarter of 2005. On a currency-neutral basis, revenues increased 8.3% compared to the first quarter of 2005. This sales increase was the result of organic growth across a broad array of product areas. For the quarter, income from continuing operations was $31.2 million compared to $29.5 million in the same period last year. At 56.9%, first-quarter gross margin from continuing operations was markedly higher than the 55.6% reported for the first quarter of 2005. The higher margin was due to a combination of improved efficiencies and certain non-recurring items.

First-Quarter Highlights

--  First-quarter basic earnings from continuing operations were $1.19 per
    share, or $1.16 per share on a diluted basis, compared to $1.14 and $1.11,
    respectively, in the same period of last year.
--  Life Science segment net sales from continuing operations for the
    quarter were $144.8 million, up slightly from the $144.1 million reported
    last year. Normalizing for the impact of currency effects, sales in this
    area increased by 5.6%.
--  The Clinical Diagnostics segment reported solid growth in its core
    businesses with net sales of $160.3 million, a 5.5% increase over the
    comparable period last year. On a currency-neutral basis, segment sales
    increased 10.9% over the first quarter of 2005.
--  In February, the Company reached a settlement agreement with Applera
    and Roche, enabling the Company to resume U.S. sales of certain MJ Research
    thermal cycling products.
--  Early in the quarter, Bio-Rad announced that it renewed a
    collaboration agreement with the Institut Pasteur of Paris for an
    additional four years.  This relationship gives Bio-Rad exclusive
    commercialization rights to Pasteur's developments in the areas of
    virology, microbiology, physiology, biochemistry, parasitology and
    mycology.
    
Life Science segment net sales for the quarter were $144.8 million, up 0.5% compared to the first quarter of last year. On a currency-neutral basis, sales increased by 5.6%. Performance in this segment was the result of a combination of factors including sales increases in the amplification reagents and instrumentation, automated electrophoresis and process chromatography product areas. In particular, the segment benefited from a resumption of U.S. sales of certain thermal cycling products as well as from continued penetration into the bio-pharmaceutical drug separation market with products such as Bio-Rad's Macro-Prep® support used in the purification of inhalable insulin. Segment performance was somewhat tempered, however, by a reduction in BSE testing revenue.

The Clinical Diagnostics segment reported net sales of $160.3 million for the quarter, up 5.5% compared to the prior-year quarter, or 10.9% excluding currency effects. These results are due in part to continued growth in the blood typing, blood virus screening, autoimmune testing and diabetes monitoring product lines. Following the placement of a substantial number of systems last year, reagent sales associated with the Company's Evolis™ automated microplate processors were up dramatically for the quarter. In addition, sales to low- and mid-volume customers in the diabetes monitoring market benefited from the March release of the Company's new Rack Loader for use in conjunction with the D-10™ Hemoglobin Testing System, expanding the sample handling capacity of the system to 50 samples. These benefits were partially offset, however, by increased competition in the high-volume segment of the market.

"The year is getting off to an excellent start, with sales in most regions meeting or exceeding expectations," said Norman Schwartz, President and Chief Executive Officer. "As the year unfolds, we will continue to work on a number of projects aimed at growing our core businesses and improving operational efficiency over the longer term."

Management will discuss these results in a conference call at 2 p.m. Pacific Daylight Time (5 p.m. Eastern Daylight Time) May 4, 2006. Interested parties can access the call by dialing (866) 713-8567 (in the U.S.), or (617) 597-5326 (international), access number 34910773. 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 96738625, 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., is a multinational manufacturer and distributor of life science research products and clinical diagnostics. Based in Hercules, California, Bio-Rad serves more than 70,000 research and industry customers worldwide through a network of more than 30 wholly owned subsidiary offices.

Various statements made within this press release may constitute "forward-looking statements" for purposes of the Securities and Exchange Commission's "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. The forward-looking statements contained herein involve risks and uncertainties that could cause results to differ materially from the Company's expectations.

                        Bio-Rad Laboratories, Inc.

                Condensed Consolidated Statements of Income

                  (in thousands, except per share data)

                                (UNAUDITED)

                                                    Three Months Ended
                                                        March 31,
                                                --------------------------
                                                    2006          2005
                                                ------------  ------------
Net sales                                       $    308,338  $    299,171
Cost of goods sold                                   132,810       132,765
                                                ------------  ------------
Gross profit                                         175,528       166,406

Selling, general and administrative expense          100,070        99,498
Product research and development expense              28,091        26,823
Interest expense                                       8,019         8,117
Foreign exchange (gains) losses, net                      11          (277)
Other (income) expense, net                           (4,542)       (5,838)
                                                ------------  ------------
Income from continuing operations before taxes        43,879        38,083
Provision for income taxes                            12,681         8,563
                                                ------------  ------------
Income from continuing operations                     31,198        29,520
Discontinued operations                                    -         3,974
                                                ------------  ------------
Net income                                      $     31,198  $     33,494
                                                ============  ============

Basic earnings per share
  Continuing operations                         $       1.19  $       1.14
  Discontinued operations                                  -          0.15
                                                ------------  ------------
  Net income                                    $       1.19  $       1.29
                                                ============  ============

  Weighted average common shares                      26,277        25,909
                                                ============  ============

Diluted earnings per share
  Continuing operations                         $       1.16  $       1.11
  Discontinued operations                                  -          0.15
                                                ------------  ------------
  Net income                                    $       1.16  $       1.26
                                                ============  ============

  Weighted average common shares                      26,829        26,555
                                                ============  ============



                        Bio-Rad Laboratories, Inc.
                  Condensed Consolidated Balance Sheets

                              (In thousands)
                                (UNAUDITED)

                                                  March 31,   December 31,
                                                    2006          2005
                                                ------------- -------------
Current Assets:
     Cash and cash equivalents                  $     265,587 $     296,716
     Restricted cash                                        -        36,138
     Short-term investments                           129,176       116,343
     Accounts receivable, net                         259,231       247,192
     Inventories, net                                 225,844       212,342
     Other current assets                             111,811        99,480
                                                ------------- -------------
          Total current assets                        991,649     1,008,211

Net property, plant and equipment                     180,774       180,258
Goodwill                                              113,276       113,276
Purchased intangibles, net                             27,269        28,449
Other assets                                          101,817        96,388
                                                ------------- -------------
          Total assets                          $   1,414,785 $   1,426,582
                                                ============= =============



Current liabilities:
     Notes payable and current maturities of
      long-term debt                            $       3,785 $       3,341
     Accounts payable                                  66,643        72,950
     Accrued payroll and employee benefits             67,921        81,076
     Sales, income and other taxes payable             22,268        15,841
     Other current liabilities                         91,021       146,035
                                                ------------- -------------
          Total current liabilities                   251,638       319,243

Long-term debt, net of current maturities             425,971       425,687
Other long-term liabilities                            34,521        23,678
Stockholders' equity                                  702,655       657,974
                                                ------------- -------------
          Total liabilities and stockholders'
           equity                               $   1,414,785 $   1,426,582
                                                ============= =============



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

                              (In thousands)
                                (UNAUDITED)

                                                        Three Months
                                                       Ended March 31,
                                                      2006         2005
                                                  -----------  -----------

Cash flows from operating activities:
  Cash received from customers                    $   299,764  $   296,648
  Cash paid to suppliers and employees               (282,673)    (259,242)
  Interest paid                                        (8,938)      (8,973)
  Income tax payments                                  (9,562)      (6,532)
  Litigation settlement related to MJ acquisition     (45,467)           -
  Other operating activities                            4,805        2,982
                                                  -----------  -----------
  Net cash provided by (used in) operating
   activities                                         (42,071)      24,883

Cash flows from investing activities:
  Capital expenditures, net                           (11,318)      (9,774)
  Receipt of restricted cash                           36,498            -
  Other investing activities                          (16,943)     103,659
                                                  -----------  -----------
  Net cash provided by investing activities             8,237       93,885

Cash flows from financing activities:
  Proceeds from issuance of common stock                2,323        2,708
  Other financing activities                              373           87
                                                  -----------  -----------
  Net cash provided by financing activities             2,696        2,795

Effect of exchange rate changes on cash                     9          601
                                                  -----------  -----------

Net increase (decrease) in cash and cash
 equivalents                                          (31,129)     122,164
Cash and cash equivalents at beginning of period      296,716      195,734
                                                  -----------  -----------
Cash and cash equivalents at end of period        $   265,587  $   317,898
                                                  ===========  ===========


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

Net income                                        $    31,198  $    33,494
Adjustments to reconcile net income to net cash
 provided by operating activities:
  Depreciation and amortization                        12,971       15,171
  Changes in working capital                          (52,513)      (6,905)
  Litigation settlement related to MJ acquisition     (45,467)           -
  Other                                                11,740      (16,877)
                                                  -----------  -----------
Net cash provided by (used in) operating
 activities                                       $   (42,071) $    24,883
                                                  ===========  ===========

Certain items have been reclassified to conform to the current year
presentation.

Contact Information

  • For more information contact:
    Christine Tsingos
    Vice President and Chief Financial Officer

    Ron Hutton
    Treasurer
    Bio-Rad Laboratories, Inc.
    Phone: (510) 724-7000
    E-mail: Email Contact