SOURCE: Bio-Rad Laboratories

May 03, 2011 16:20 ET

Bio-Rad Reports First-Quarter Currency-Neutral Revenue Growth of 4.9 Percent

HERCULES, CA--(Marketwire - May 3, 2011) - 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 first quarter ended March 31, 2011.

First-quarter reported revenues were $485.1 million, up 6.8% compared to $454.2 million reported for the first quarter of 2010. On a currency-neutral basis, quarterly revenues increased 4.9% compared to the same period last year. First-quarter gross margin was 57.2% compared to 56.6% during the same quarter last year. Net income attributable to Bio-Rad for the first quarter of 2011 was $33.0 million, or $1.16 per share on a fully diluted basis compared to $1.24 per share, during the same period last year. Earnings per share in the first quarter was negatively impacted by one-time expenses of approximately $4 million related to the retirement of debt as well as a higher effective tax rate for the quarter, primarily due to adjustments to foreign tax credits.

"Performance in the first quarter reflects strength across many of our product areas," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "As we had anticipated, budgetary constraints faced by some of our customers outside the U.S. had an impact on our performance during the quarter. As the year progresses, we will continue to seek opportunities to improve our operational efficiencies and grow our business."

Life Science

The Life Science segment net sales for the first quarter were $154.5 million, up 2.1% compared to the first quarter of 2010. On a currency-neutral basis, Life Science segment sales were essentially flat compared to the same period last year. Sales in the U.S. for the Life Science segment were strong but were offset by a continued slowness during the first quarter in markets outside the U.S., primarily in Europe and Japan. Sales of recently introduced products continued to gain rapid customer acceptance in the first quarter, these include the TC10™ automated cell counter as well as the Mini-PROTEAN® TGX™ precast electrophoresis gel product line. In March, Bio-Rad launched the Trans-Blot® Turbo™ transfer system, a rapid western blotting instrument that allows researchers to efficiently transfer proteins from gel to blot in three minutes.

Clinical Diagnostics

The Clinical Diagnostics segment reported net sales of $327.2 million for the first quarter, up 9.1% compared to the first quarter in 2010. On a currency-neutral basis, net sales were up 7.3% from the same period last year. These gains were largely due to growth across product lines most notably blood typing, quality controls, and microbiology. Performance in the Clinical Diagnostics segment also benefited from placements of the Company's BioPlex® 2200 system in addition to sales of assays that run on the system. Customer interest of the Company's IH-1000 blood typing system continues to increase in markets outside the U.S. The instrument is a fully-automated, high-throughput system designed for the blood transfusion laboratory.

Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) May 3, 2011. Interested parties may access the call by dialing 800-261-3417 (in the U.S.) or 617-614-3673 (international), access number 12268652.

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 45024697, 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) 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 100,000 research and industry customers worldwide through its global network of operations. The Company employs over 6,800 people globally and had revenues exceeding $1.9 billion in 2010. 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,
                                                --------------------------
                                                    2011          2010
                                                ------------  ------------
Net sales                                       $    485,121  $    454,234
   Cost of goods sold                                207,510       197,107
                                                ------------  ------------
Gross profit                                         277,611       257,127

   Selling, general and administrative expense       167,763       153,617
   Research and development expense                   42,730        40,263
                                                ------------  ------------
Income from operations                                67,118        63,247

   Interest expense                                   16,766        14,444
   Foreign exchange losses (gains), net                3,042          (217)
   Other (income) expense, net                          (951)         (799)
                                                ------------  ------------
Income before income taxes                            48,261        49,819

   Provision for income taxes                        (15,323)      (14,427)
                                                ------------  ------------
Net income including noncontrolling interests         32,938        35,392

   Net loss (income) attributable to
    noncontrolling interests                             101          (531)
                                                ------------  ------------
Net income attributable to Bio-Rad              $     33,039  $     34,861
                                                ============  ============

Basic earnings per share:
   Net income per share basic attributable to
    Bio-Rad                                     $       1.18  $       1.27
                                                ============  ============

   Weighted average common shares - basic             27,904        27,545
                                                ============  ============

Diluted earnings per share:
   Net income per share diluted attributable to
    Bio-Rad                                     $       1.16  $       1.24
                                                ============  ============

   Weighted average common shares - diluted           28,389        28,072
                                                ============  ============




                        Bio-Rad Laboratories, Inc.
                  Condensed Consolidated Balance Sheets

                              (In thousands)
                                (UNAUDITED)

                                                  March 31,   December 31,
                                                    2011          2010
                                                ------------- -------------
Current assets:
     Cash and cash equivalents                  $     627,908 $     906,551
     Restricted cash                                    6,533         6,422
     Short-term investments                           163,528       118,636
     Accounts receivable, net                         388,554       387,996
     Inventories                                      429,975       398,100
     Other current assets                             180,812       157,641
                                                ------------- -------------
          Total current assets                      1,797,310     1,975,346

Property, plant and equipment, net                    337,625       333,617
Goodwill, net                                         369,107       363,981
Purchased intangibles, net                            198,658       203,881
Other assets                                          206,073       185,939
                                                ------------- -------------
          Total assets                          $   2,908,773 $   3,062,764
                                                ============= =============



Current liabilities:
     Accounts payable                           $     111,373 $     113,440
     Accrued payroll and employee benefits            116,733       131,381
     Notes payable and current maturities of
      long-term debt                                   10,269       233,181
     Income and other taxes payable                    59,658        50,935
     Other current liabilities                        129,558       137,690
                                                ------------- -------------
          Total current liabilities                   427,591       666,627

Long-term debt, net of current maturities             731,214       731,100
Other long-term liabilities                           136,480       124,518
                                                ------------- -------------
          Total liabilities                         1,295,285     1,522,245

Bio-Rad stockholders' equity                        1,612,292     1,536,696
Noncontrolling interests                                1,196         3,823
                                                ------------- -------------
          Total stockholders' equity                1,613,488     1,540,519
                                                ------------- -------------
          Total liabilities and stockholders'
           equity                               $   2,908,773 $   3,062,764
                                                ============= =============




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

                              (In thousands)
                                (UNAUDITED)

                                                   Three Months Ended
                                                         March 31,
                                                    2011          2010
                                                ------------  ------------
Cash flows from operating activities:
     Cash received from customers               $    496,749  $    445,669
     Cash paid to suppliers and employees           (436,430)     (389,505)
     Interest paid                                   (22,189)      (21,086)
     Income tax payments                             (18,373)      (13,279)
     Other operating activities                           25           470
                                                ------------  ------------
     Net cash provided by operating activities        19,782        22,269


Cash flows from investing activities:
     Payment for acquisitions and long-term
      investments                                     (3,571)      (66,496)
     Other investing activities                      (73,722)      (10,518)
                                                ------------  ------------
     Net cash used in investing activities           (77,293)      (77,014)

Cash flows from financing activities:
     Payments on long-term borrowings               (225,763)       (1,595)
     Other financing activities                       11,020         2,628
                                                ------------  ------------
     Net cash (used in) provided by financing
      activities                                    (214,743)        1,033

Effect of foreign exchange rate changes on cash       (6,389)        1,908
                                                ------------  ------------

Net decrease in cash and cash equivalents           (278,643)      (51,804)
Cash and cash equivalents at beginning of
 period                                              906,551       649,938
                                                ------------  ------------
Cash and cash equivalents at end of period      $    627,908  $    598,134
                                                ============  ============


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

Net income including noncontrolling interests   $     32,938  $     35,392
Adjustments to reconcile net income including
 noncontrolling interests to net cash provided
 by operating activities:
             Depreciation and amortization            28,115        27,548
             Changes in working capital              (54,625)      (32,746)
             Other                                    13,354        (7,925)
                                                ------------  ------------
Net cash provided by operating activities       $     19,782  $     22,269
                                                ============  ============

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