SOURCE: Bio-Rad Laboratories

Bio-Rad Laboratories

May 05, 2016 16:15 ET

Bio-Rad Reports First-Quarter 2016 Currency-Neutral Revenue Growth of Nearly 4 Percent

HERCULES, CA--(Marketwired - May 5, 2016) - Bio-Rad Laboratories, Inc. (NYSE: BIO) and (NYSE: BIO.B), a global provider of life science research and clinical diagnostic products, announced financial results today for the first quarter ended March 31, 2016.

First-quarter 2016 reported revenues were $471.2 million, down 0.3% compared to $472.8 million reported for the first quarter of 2015. On a currency-neutral basis, quarterly revenues increased 3.9% compared to the same period last year. First-quarter 2016 gross margin was 56.0% compared to 57.1% during the same quarter last year. The decrease in gross margin during the first quarter of 2016 was primarily the result of less favorable manufacturing variances compared to the same period last year. 

Net income for the first quarter of 2016 was $12.3 million, or $0.42 per share on a fully diluted basis, compared to $17.8 million, or $0.61 per share during the same period last year. The decrease in net income was largely attributed to lower margins mentioned above as well as an increase in research & development expense. 

The effective tax rate for the first quarter of 2016 was 39%, compared to the 33% tax rate for the same quarter in 2015. The higher tax rate in 2016 was due to certain foreign losses for which no benefit is expected and increased reserves for foreign tax audits.

"We are pleased with the good sales performance in this first quarter," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "The growth of our Life Science business, at close to 10%, is a very encouraging start for the year."

Life Science
The Life Science segment net sales in the first quarter of 2016 were $165.9 million, an increase of 6.4% compared to the same period last year. On a currency-neutral basis, Life Science segment sales increased 9.8% compared to the first quarter in 2015. The sales increase for the first quarter benefitted from sales of our Droplet Digital™ PCR and process media products. In January, Bio-Rad and Illumina, Inc. (NASDAQ: ILMN) announced an exclusive partnership to develop the most comprehensive next-generation sequencing (NGS) workflow for single-cell analysis. The end-to-end commercial solution will enable high-throughput sequencing of thousands of individual cells, traditionally a challenging, costly, and time-consuming process. Also during the first quarter of 2016, Bio-Rad acquired a high performance analytical flow cytometer platform from Propel Labs that will enable advanced and novice users to perform basic and multi-parameter cytometry for a wide range of applications and chemistries. Bio-Rad expects to launch the instrument later this year.

Clinical Diagnostics 
Net sales for the Clinical Diagnostics segment in the first quarter of 2016 were $301.7 million, a decrease of 3.8% compared to the first quarter of 2015. On a currency-neutral basis, Clinical Diagnostics sales increased 0.9% compared to the same period last year. Results from the first quarter reflected modest growth across most product lines, most notably clinical immunology, quality controls, and diabetes products. In February, the Company announced it had received CE IVD marking for its QX200™ Droplet Digital™ PCR (ddPCR™) System, the first digital PCR system with the CE IVD mark for use as an in vitro diagnostic (IVD) in the European Union. With the CE IVD mark, medical practitioners in Europe can use the QX200 system for highly-accurate detection and quantification of nucleic acids, aiding clinical decision-making in the treatment of diseases ranging from cancer to transplant rejection and viral infection.

Management will discuss these results in a conference call at 2 PM Pacific Daylight Time (5 PM Eastern Daylight Time) May 5, 2016. Interested parties may access the call at 855-779-9068 within the U.S. or 631-485-4862 outside the U.S., passcode: 89354960. You may also listen to the conference call live via a webcast that is available on the "Investor Relations" section of our website under "Quarterly Results" at www.bio-rad.com. The webcast will be available for up to a year. 

About Bio-Rad
Bio-Rad Laboratories, Inc. (NYSE: BIO) and (NYSE: BIO.B) develops, manufactures, and markets 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 more than 7,800 people worldwide and had revenues exceeding $2 billion in 2015. For more information, please visit www.bio-rad.com.

This release may be deemed to contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements we make regarding our release of new products, the growth of our business and future financial performance. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, "believe," "expect," "anticipate," "may," "will," "intend," "estimate," "continue," or similar expressions or the negative of those terms or expressions, although not all forward-looking statements contain these words. 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. These risks and uncertainties include our ability to develop and market new or improved products, foreign currency exchange fluctuations, difficulties in implementing our global enterprise resource planning system, our ability to compete effectively, product quality and liability issues, supply chain issues, our ability to realize anticipated benefits from acquisitions, reductions in government funding or capital spending of our customers, international legal and regulatory risks, recent changes to our global organizational structure and executive management team, changes in the healthcare industry, global economic conditions, and natural disasters and other catastrophic events beyond our control. For further information regarding the Company's risks and uncertainties, please refer to the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's public reports filed with the Securities and Exchange Commission (the "SEC"), including the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, and its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2016 to be filed with the SEC. 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,
 
  2016     2015  
Net sales $ 471,197     $ 472,821  
  Cost of goods sold   207,168       202,715  
Gross profit   264,029       270,106  
               
  Selling, general and administrative expense   189,716       188,555  
  Research and development expense   48,586       47,202  
Income from operations   25,727       34,349  
               
  Interest expense   5,580       5,002  
  Foreign currency exchange losses, net   1,129       3,806  
  Other (income) expense, net   (1,177 )     (1,153 )
Income before income taxes   20,195       26,694  
               
  Provision for income taxes   (7,919 )     (8,876 )
Net income $ 12,276     $ 17,818  
               
Basic earnings per share:              
  Net income per basic share $ 0.42     $ 0.61  
               
  Weighted average common shares - basic   29,364       29,092  
               
Diluted earnings per share:              
  Net income per diluted share $ 0.42     $ 0.61  
               
  Weighted average common shares - diluted   29,506       29,289  
                 
                 
                 
Bio-Rad Laboratories, Inc.
Condensed Consolidated Balance Sheets
 
(In thousands)
 
       
       
       
  March 31,   December 31,
  2016   2015
  (UNAUDITED)    
Current assets:          
  Cash and cash equivalents $ 403,615   $ 457,549
  Short-term investments   349,255     332,928
  Accounts receivable, net   381,100     391,485
  Inventories, net   533,312     490,224
  Other current assets   107,982     105,410
    Total current assets   1,775,264     1,777,596
           
Property, plant and equipment, net   449,226     437,690
Goodwill, net   509,582     495,948
Purchased intangibles, net   242,264     214,026
Other investments   711,437     719,840
Other assets   65,640     64,618
    Total assets $ 3,753,413   $ 3,709,718
           
Current liabilities:          
  Accounts payable, accrued payroll and employee benefits $ 241,249   $ 280,248
  Current maturities of long-term debt   296     298
  Income and other taxes payable   27,725     29,339
  Other current liabilities   131,618     131,466
    Total current liabilities   400,888     441,351
           
Long-term debt, net of current maturities   433,980     433,883
Other long-term liabilities   374,096     343,981
    Total liabilities   1,208,964     1,219,215
           
    Total stockholders' equity   2,544,449     2,490,503
    Total liabilities and stockholders' equity $ 3,753,413   $ 3,709,718
               
               
               
Bio-Rad Laboratories, Inc.  
Condensed Consolidated Statements of Cash Flows  
   
(In thousands)  
(UNAUDITED)  
             
             
             
             
    Three Months
Ended March 31,
 
             
    2016     2015  
                 
Cash flows from operating activities:                
  Cash received from customers   $ 492,407     $ 478,479  
  Cash paid to suppliers and employees     (508,820 )     (453,986 )
  Interest (paid) received, net     (187 )     471  
  Income tax refunds     10,421       1,503  
  Other operating activities     (1,269 )     2,979  
  Net cash (used in) provided by operating activities     (7,448 )     29,446  
                 
Cash flows from investing activities:                
  Payments for acquisition and long-term investment     (9,634 )     (895 )
  Other investing activities     (41,224 )     (27,096 )
  Net cash used in investing activities     (50,858 )     (27,991 )
                 
Cash flows from financing activities:                
  Payments on long-term borrowings     (77 )     (66 )
  Other financing activities     335       (265 )
  Net cash provided by (used in) financing activities     258       (331 )
                 
Effect of foreign exchange rate changes on cash     4,114       11,353  
                 
Net (decrease) increase in cash and cash equivalents     (53,934 )     12,477  
Cash and cash equivalents at beginning of period     457,549       413,251  
Cash and cash equivalents at end of period   $ 403,615     $ 425,728  
                 
                 
Reconciliation of net income to net cash                
provided by operating activities:                
Net income   $ 12,276     $ 17,818  
Adjustments to reconcile net income to net cash                
provided by operating activities:                
    Depreciation and amortization     34,090       32,283  
    Changes in working capital     (63,730 )     (20,619 )
    Other     9,916       (36 )
Net cash (used in) provided by operating activities   $ (7,448 )   $ 29,446  
                 

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