SOURCE: Bio-Rad Laboratories

Bio-Rad Laboratories

May 06, 2014 16:15 ET

Bio-Rad Reports First-Quarter 2014 Financial Results

HERCULES, CA--(Marketwired - May 6, 2014) - Bio-Rad Laboratories, Inc. (NYSE: BIO) (NYSE: BIO.B), a global manufacturer and distributor of life science research and clinical diagnostic products, announced financial results today for the first quarter ended March 31, 2014.

First-quarter reported revenues were $509.3 million, up 1.9% compared to $499.7 million reported for the first quarter of 2013. On a currency-neutral basis, quarterly revenues increased 2.9% compared to the same period last year. First-quarter 2014 gross margin was 54.0% compared to 54.3% during the same quarter last year.

Net income attributable to Bio-Rad for the first quarter of 2014 was $6.7 million, or $0.23 per share on a fully diluted basis compared to $20.2 million or $0.70 per share during the same period last year. The lower net income in the first quarter of 2014 versus the first quarter of 2013 reflected higher relative SG&A expenses primarily due to an accrued expense of $9.8 million during the first quarter of 2014 in connection with the Company's efforts to resolve the previously disclosed investigation of the Company in connection with the United States Foreign Corrupt Practices Act, as well as higher information technology and employee-related expenses. Tax expense was skewed during the first quarters of 2013 and 2014 due to certain discrete items and the expiration of the U.S. research & development tax credit in 2014 versus the retroactive reinstatement of that credit in the first quarter of 2013. Cash flow was strong in the quarter, as cash provided by operations was $68.9 million versus $24.0 million in the same period last year. This strength was primarily due to an increase in customer collections, a decrease in interest paid resulting from the redemption of our 8% Senior Subordinated Notes, and a decrease in taxes paid. 

"We are encouraged with sales results in the first quarter especially in emerging markets," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "Investments in acquired technologies and in systems will continue to moderate our profitability in the near term but should yield significant benefit to the company in the future." 

Life Science
The Life Science segment net sales for the first quarter of 2014 were $161.5 million, up 3.3% compared to the same period last year. On a currency-neutral basis, Life Science segment sales increased 4.6% compared to the first quarter in 2013. Results from the first quarter benefitted from increased sales of Droplet Digital PCR, food science, and process chromatography products, as well as strength in the European and China markets. Growth of the Life Science segment during the first quarter of 2014 was offset by continued challenges in the research spending environment, particularly in the U.S.

Clinical Diagnostics
Net sales for the Clinical Diagnostics segment in the first quarter of 2014 were $344.3 million, an increase of 1.3% compared to the first quarter for 2013. On a currency-neutral basis, net sales were up 2.1% compared to the same period last year. Performance of the Clinical Diagnostics segment reflects modest growth across most product lines as well as strength in the Asia Pacific and Latin America markets.

Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) May 6, 2014. Interested parties may access the call by dialing 800-299-9630 within the U.S. or 617-786-2904 outside the U.S., access number 16595168.

A live webcast of the conference call may be accessed in the Investor Relations section of our website at www.bio-rad.com. A replay of the call will be available at 888-286-8010 within the U.S. or 617-801-6888 outside the U.S., access number 44551012, for seven days following the call. The webcast of the call will be archived on the Bio-Rad site and may be accessed in the Investor Relations section of www.bio-rad.com

About Bio-Rad
Bio-Rad Laboratories, Inc. (NYSE: BIO) (NYSE: BIO.B) designs, manufactures, and distributes a broad range of innovative products and solutions for the life science research and clinical diagnostic markets. The company is renowned for its commitment to quality and customer service among university and research institutions, hospitals, public health and commercial laboratories, as well as the biotechnology, pharmaceutical, and food safety industries. Founded in 1952, Bio-Rad is based in Hercules, California, and serves more than 100,000 research and healthcare industry customers through its global network of operations. The company employs over 7,750 people worldwide and had revenues exceeding $2.1 billion in 2013. For more information, visit our website at 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 and Quarterly Reports on Form 10-Q. 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,
 
    2014     2013  
Net sales   $ 509,344     $ 499,672  
  Cost of goods sold     234,055       228,260  
Gross profit     275,289       271,412  
                 
  Selling, general and administrative expense     202,275       185,917  
  Research and development expense     52,543       50,343  
Income from operations     20,471       35,152  
                 
  Interest expense     3,857       10,977  
  Foreign exchange losses, net     2,737       1,528  
  Other (income) expense, net     (661 )     (1,400 )
Income before income taxes     14,538       24,047  
                 
  Provision for income taxes     (7,870 )     (3,875 )
Net income including noncontrolling interests     6,668       20,172  
                 
  Net income attributable to noncontrolling interests     -       (21 )
Net income attributable to Bio-Rad   $ 6,668     $ 20,151  
                 
Basic earnings per share:                
  Net income per basic share attributable to Bio-Rad   $ 0.23     $ 0.71  
                 
  Weighted average common shares - basic     28,791       28,494  
                 
Diluted earnings per share:                
  Net income per diluted share attributable to Bio-Rad   $ 0.23     $ 0.70  
                 
  Weighted average common shares - diluted     29,059       28,817  
                   
                 
 
Bio-Rad Laboratories, Inc.
Condensed Consolidated Balance Sheets
 
(In thousands)
         
    March 31,   December 31,
    2014   2013
    (UNAUDITED)    
Current assets:            
  Cash and cash equivalents   $ 364,507   $ 331,551
  Short-term investments     276,826     277,369
  Accounts receivable, net     383,928     422,660
  Inventories, net     513,852     501,291
  Other current assets     227,697     214,985
    Total current assets     1,766,810     1,747,856
             
Property, plant and equipment, net     430,876     429,355
Goodwill, net     520,525     517,770
Purchased intangibles, net     256,444     266,188
Other assets     466,723     427,621
      Total assets   $ 3,441,378   $ 3,388,790
             
Current liabilities:            
  Accounts payable   $ 130,864   $ 148,510
  Accrued payroll and employee benefits     133,048     130,658
  Notes payable and current maturities of long-term debt     1,732     1,786
  Income and other taxes payable     32,596     33,555
  Other current liabilities     183,011     172,963
    Total current liabilities     481,251     487,472
             
Long-term debt, net of current maturities     435,611     435,615
Other long-term liabilities     291,913     278,981
      Total liabilities     1,208,775     1,202,068
             
      Total stockholders' equity     2,232,603     2,186,722
      Total liabilities and stockholders' equity   $ 3,441,378   $ 3,388,790
                   
             
   
Bio-Rad Laboratories, Inc.  
Condensed Consolidated Statements of Cash Flows  
   
(In thousands)  
(UNAUDITED)  
             
    Three Months
Ended March 31,
 
             
    2014     2013  
                 
Cash flows from operating activities:                
  Cash received from customers   $ 544,447     $ 504,158  
  Cash paid to suppliers and employees     (468,101 )     (460,093 )
  Interest paid     (292 )     (11,675 )
  Income tax payments     (6,909 )     (14,195 )
  Other operating activities     (224 )     5,822  
  Net cash provided by operating activities     68,921       24,017  
                 
                 
Cash flows from investing activities:                
  Payment for acquisitions and long-term investments     (1,364 )     (64,056 )
  Other investing activities     (37,557 )     (44,226 )
  Net cash used in investing activities     (38,921 )     (108,282 )
                 
Cash flows from financing activities:                
  Payments on long-term debt     (66 )     (74 )
  Other financing activities     3,556       (7,352 )
  Net cash provided by (used in) financing activities     3,490       (7,426 )
                 
Effect of foreign exchange rate changes on cash     (534 )     (3,068 )
                 
Net increase (decrease) in cash and cash equivalents     32,956       (94,759 )
Cash and cash equivalents at beginning of period     331,551       463,388  
Cash and cash equivalents at end of period   $ 364,507     $ 368,629  
                 
                 
Reconciliation of net income including noncontrolling interests to net cash provided by operating activities:                
                 
Net income including noncontrolling interests   $ 6,668     $ 20,172  
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:                
    Depreciation and amortization     36,671       33,290  
    Changes in working capital     25,689       (33,892 )
    Other     (107 )     4,447  
Net cash provided by operating activities   $ 68,921     $ 24,017  
                 
                 

Contact Information

  • Investor and Financial Contacts:
    Bio-Rad Laboratories, Inc.
    Christine Tsingos
    Executive Vice President and Chief Financial Officer
    Ron Hutton
    Vice President, Treasurer
    510-724-7000
    Email Contact