SOURCE: Bio-Rad Laboratories

May 01, 2012 16:15 ET

Bio-Rad Reports First-Quarter 2012 Financial Results

HERCULES, CA--(Marketwire - May 1, 2012) - Bio-Rad Laboratories, Inc. (NYSE: BIO) (NYSE: BIOb), a multinational manufacturer and distributor of life science research and clinical diagnostic products, announced financial results today for the first quarter ended March 31, 2012.

First-quarter reported revenues were $486.3 million, up 0.2% compared to $485.1 million reported for the first quarter of 2011. On a currency-neutral basis, quarterly revenues increased 1.4% compared to the same period last year. First-quarter gross margin was 57.3% compared to 57.2% during the same quarter last year. Net income attributable to Bio-Rad for the first quarter of 2012 was $31.0 million, or $1.09 per share on a fully diluted basis compared to $1.16 per share during the same period last year. These results include $7.7 million in operating losses (including approximately $2.5 million of amortization expense) resulting from Bio-Rad's acquisition of QuantaLife, Inc., in October 2011. First-quarter results also reflect recognition of an indirect tax in Brazil for the periods of 2007 through 2011 totaling $6.1 million.

"While we are off to a little bit of a slow start for the year, our outlook remains positive," said Norman Schwartz, Bio-Rad President and Chief Executive Officer.

Life Science
The Life Science segment net sales for the first quarter were $154.8 million, up 0.2% compared to the first quarter of 2011. On a currency-neutral basis, Life Science segment sales increased 0.7% compared to the same period last year. Results for the Life Science segment benefitted from sales of electrophoresis, imaging, and western blot products as well as application reagents. Recently introduced products, including the V3 Western Workflow™ system and the QX100™ Droplet Digital™ PCR system continued to gain rapid customer acceptance during the first quarter of 2012.

Clinical Diagnostics
Net sales for the Clinical Diagnostics segment in the first quarter of 2012 were essentially flat at $327.2 million compared to the first quarter for 2011. On a currency-neutral basis, net sales were up 1.6% compared to the same period last year. The company's year-over-year results were impacted by a one-time sale of blood typing products to Japan during the first quarter of 2011. Without this one-time sale, growth for the Clinical Diagnostics segment in the first quarter of 2012 would have shown an increase of approximately 4% on a currency neutral basis.

Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) May 1, 2012. Interested parties may access the call by dialing 800-299-6183 (in the U.S.) or 617-801-9713 (international), access number 23066392.

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 73110502, 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) (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 100,000 research and industry customers worldwide through its global network of operations. The company employs over 7,000 people globally and had revenues exceeding $2 billion in 2011. 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
March 31,
2012 2011
Net sales $ 486,277 $ 485,121
Cost of goods sold 207,695 207,510
Gross profit 278,582 277,611
Selling, general and administrative expense 171,293 167,763
Research and development expense 52,923 42,730
Income from operations 54,366 67,118
Interest expense 13,196 16,766
Foreign exchange losses, net 1,441 3,042
Other (income) expense, net (6,450 ) (951 )
Income before income taxes 46,179 48,261
Provision for income taxes (15,235 ) (15,323 )
Net income including noncontrolling interests 30,944 32,938
Net loss attributable to noncontrolling interests 61 101
Net income attributable to Bio-Rad $ 31,005 $ 33,039
Basic earnings per share:
Net income per share basic attributable to Bio-Rad $ 1.10 $ 1.18
Weighted average common shares - basic 28,201 27,904
Diluted earnings per share:
Net income per share diluted attributable to Bio-Rad $ 1.09 $ 1.16
Weighted average common shares - diluted 28,553 28,389
Bio-Rad Laboratories, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
March 31, December 31,
2012 2011
(UNAUDITED)
Current assets:
Cash and cash equivalents $ 533,812 $ 574,231
Short-term investments 273,238 238,884
Accounts receivable, net 387,619 398,674
Inventories, net 463,369 433,510
Other current assets 159,410 152,856
Total current assets 1,817,448 1,798,155
Property, plant and equipment, net 369,199 349,501
Goodwill, net 480,060 468,933
Purchased intangibles, net 258,312 259,497
Other assets 262,855 220,717
Total assets $ 3,187,874 $ 3,096,803
Current liabilities:
Accounts payable $ 109,571 $ 129,124
Accrued payroll and employee benefits 119,749 112,564
Notes payable and current maturities of long-term debt 809 814
Income and other taxes payable 50,032 52,285
Other current liabilities 163,919 164,328
Total current liabilities 444,080 459,115
Long-term debt, net of current maturities 731,899 731,698
Other long-term liabilities 171,849 161,608
Total liabilities 1,347,828 1,352,421
Bio-Rad stockholders' equity 1,839,649 1,743,937
Noncontrolling interests 397 445
Total stockholders' equity 1,840,046 1,744,382
Total liabilities and stockholders' equity $ 3,187,874 $ 3,096,803
Bio-Rad Laboratories, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(UNAUDITED)
Three Months
Ended March 31,
2012 2011
Cash flows from operating activities:
Cash received from customers $ 501,075 $ 496,749
Cash paid to suppliers and employees (428,733 ) (436,430 )
Interest paid (12,340 ) (22,189 )
Income tax payments (25,010 ) (18,373 )
Other operating activities 268 25
Net cash provided by operating activities 35,260 19,782
Cash flows from investing activities:
Payment for acquisitions and long-term investments (15,329 ) (3,571 )
Other investing activities (70,956 ) (73,722 )
Net cash used in investing activities (86,285 ) (77,293 )
Cash flows from financing activities:
Payments on long-term debt (225 ) (225,763 )
Other financing activities 3,944 11,020
Net cash provided by (used in) financing activities 3,719 (214,743 )
Effect of foreign exchange rate changes on cash 6,887 (6,389 )
Net decrease in cash and cash equivalents (40,419 ) (278,643 )
Cash and cash equivalents at beginning of period 574,231 906,551
Cash and cash equivalents at end of period $ 533,812 $ 627,908
Reconciliation of net income including noncontrolling interests to net cash provided by operating activities:
Net income including noncontrolling interests $ 30,944 $ 32,938
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:
Depreciation and amortization 31,096 28,115
Changes in working capital (20,753 ) (54,625 )
Other (6,027 ) 13,354
Net cash provided by operating activities $ 35,260 $ 19,782

Contact Information

  • For more information, contact:
    Christine Tsingos
    Vice President and Chief Financial Officer
    Ron Hutton
    Treasurer
    Bio-Rad Laboratories, Inc.
    510-724-7000