SOURCE: Bio-Rad Laboratories

February 23, 2012 16:30 ET

Bio-Rad Reports Fourth-Quarter and Full-Year 2011 Financial Results

HERCULES, CA--(Marketwire - Feb 23, 2012) - 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 fourth quarter and fiscal year ended December 31, 2011.

Fourth-quarter reported revenues were $550.2 million, up 3.1% compared to $533.7 million reported for the fourth quarter of 2010. On a currency-neutral basis, quarterly revenues increased 2.4% compared to the same period in 2010. Fourth-quarter gross margin increased to 56.5% compared to 56.2% during the same quarter in 2010.

Net income attributable to Bio-Rad for the fourth quarter of 2011 was $59.2 million, or $2.08 per share on a fully diluted basis compared to $2.41 per share, during the same period in 2010. These results include a net $7.0 million in operating costs including approximately $2.5 million of amortization expense resulting from Bio-Rad's acquisition of QuantaLife, Inc., in October 2011. Fourth-quarter results in 2010 reflected a tax provision benefit of $10.7 million that was the result of repatriation of foreign earnings and the favorable impact of the extension of the U.S. Research and Experimentation tax credit. Without these two items, the fourth-quarter effective tax rate in 2010 would have been approximately 25% compared to the 20% tax rate in the fourth quarter of 2011 and the annual 2011 tax rate of 24%.

For the full year, sales grew by 7.6% to $2,073.5 million compared to $1,927.1 million in 2010. After normalizing for the impact of currency effects, full year revenues increased 3.1%. Full-year net income attributable to Bio-Rad was $178.2 million, or $6.26 per share on a fully diluted basis, compared to $185.5 million, or $6.59 per share in 2010. Full-year results in 2010 benefitted from a one-time favorable tax event mentioned above. Full-year gross margin increased to 56.8% compared to 56.6% reported in 2010.

"As we had anticipated, performance in the fourth quarter and throughout the year was impacted by an uncertain global economy that affected many of our markets in the U.S. and abroad," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "In spite of these challenges, we continued to make progress in 2011, achieving a milestone for Bio-Rad of crossing the $2 billion mark. While the global economic outlook suggests similar macroeconomic headwinds for 2012, we will continue to monitor these pressures on our global operation and look for opportunities to grow our business."

Life Science
The Life Science segment net sales for the fourth quarter were $198.9 million, up 3.1% compared to the same period in 2010. On a currency-neutral basis, Life Science segment sales increased by 2.3%. Full-year reported revenues for the Life Science segment were $694.7 million, up 7.2% over the same period in 2010, or an increase of 3.4% on a currency-neutral basis. Results of the fourth quarter reflect good momentum across all product lines, in particular, recently introduced imaging products including the ChemiDoc MP imaging system and Gel Doc EZ system as well as 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. In October, Bio-Rad acquired QuantaLife, Inc., a company that developed an innovative digital PCR (Polymerase Chain Reaction) system providing quantification of target molecules with unprecedented precision and sensitivity.

Clinical Diagnostics
The Clinical Diagnostics segment reported net sales of $347.3 million for the fourth quarter, up 3.2% compared to the same period in 2010. On a currency-neutral basis, net sales were up 2.5%. Full-year reported revenues for the Clinical Diagnostics segment were $1,363.8 million, an increase of 7.8% over 2010. On a currency-neutral basis, full-year sales increased 2.9% compared to 2010 results. Overall performance in the Clinical Diagnostics segment in the fourth quarter reflects global economic challenges impacting healthcare markets worldwide. These headwinds were partially offset by growth of the Company's quality controls, blood typing, and diabetes monitoring products, as well as sales of the BioPlex® 2200 system.

2011 Full-Year Highlights

  • Full-year Company sales grew by 7.6% to $2,073.5 million.
  • Year-over-year net income was $178.2 million, or $6.26 per share on a fully diluted basis, compared to $185.5 million, or $6.59 per share in 2010.
  • 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.
  • During the second quarter, Bio-Rad announced the European and Canadian launch of its BioPlex® 2200 Antiphospholipid Syndrome IgG, IgM, and IgA kits for use on its BioPlex 2200 system. Antiphospholipid Syndrome is an autoimmune disease in which the body's immune system mistakenly produces antibodies to certain blood proteins causing thrombosis (clotting) within arteries, veins, and small blood vessels.
  • In July, the Company announced that it had received FDA Premarket Application approval from the FDA for its fourth-generation HIV assay, the GS HIV Combo Ag/Ab EIA (enzyme immunoassay), which detects both HIV antigens and HIV antibodies, offering earlier detection of HIV infections.
  • In July, Bio-Rad introduced several PCR thermal cyclers including the CFX96 Touch and CFX384 Touch real-time PCR detection systems, which feature touch screens for run setup and display of real-time PCR data.
  • Also in July, the C1000 Touch thermal cycler was introduced, offering high thermal performance with a touch screen for large high-throughput labs as well as the T100 thermal cycler, a compact PCR instrument designed for smaller labs.
  • In September, Bio-Rad launched ChemiDoc MP imaging system for more accurate western blot quantification.
  • In October, Bio-Rad acquired QuantaLife, Inc., a company that developed an innovative digital PCR (Polymerase Chain Reaction) system.

Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) February 23, 2012. Interested parties may access the call by dialing 866-831-6270 (in the U.S.) or 617-213-8858 (international), access number 20400404.

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 37059477, 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 7,100 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
December 31,
Year Ended
December 31,
2011 2010 2011 2010
Net sales $ 550,238 $ 533,720 $ 2,073,529 $ 1,927,118
Cost of goods sold 239,272 233,997 895,640 835,630
Gross profit 310,966 299,723 1,177,889 1,091,488
Selling, general and administrative expense 174,924 176,672 696,294 635,213
Research and development expense 50,112 45,267 186,439 172,266
Income from operations 85,930 77,784 295,156 284,009
Interest expense 11,987 20,548 53,135 63,717
Foreign exchange losses, net 1,710 338 13,842 3,884
Other (income) expense, net (1,676 ) (303 ) (7,583 ) (3,875 )
Income before income taxes 73,909 57,201 235,762 220,283
(Provision) benefit for income taxes (14,708 ) 10,736 (57,739 ) (33,348 )
Net income including noncontrolling interests 59,201 67,937 178,023 186,935
Net loss (income) attributable to noncontrolling interests 38 (29 ) 200 (1,445 )
Net income attributable to Bio-Rad $ 59,239 $ 67,908 $ 178,223 $ 185,490
Basic earnings per share:
Net income per share basic attributable to Bio-Rad $ 2.11 $ 2.44 $ 6.36 $ 6.70
Weighted average common shares - basic 28,131 27,808 28,031 27,665
Diluted earnings per share:
Net income per share diluted attributable to Bio-Rad $ 2.08 $ 2.41 $ 6.26 $ 6.59
Weighted average common shares - diluted 28,462 28,233 28,468 28,151
Bio-Rad Laboratories, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
December 31, December 31,
2011 2010
(UNAUDITED)
Current assets:
Cash and cash equivalents $ 574,231 $ 906,551
Restricted cash - 6,422
Short-term investments 238,884 118,636
Accounts receivable, net 398,674 387,996
Inventories, net 433,510 398,100
Other current assets 152,856 157,641
Total current assets 1,798,155 1,975,346
Property, plant and equipment, net 349,501 333,617
Goodwill, net 468,933 363,981
Purchased intangibles, net 259,497 203,881
Other assets 220,717 185,939
Total assets $ 3,096,803 $ 3,062,764
Current liabilities:
Accounts payable $ 129,124 $ 113,440
Accrued payroll and employee benefits 112,564 131,381
Notes payable and current maturities of long-term debt 814 233,181
Income and other taxes payable 52,285 50,935
Other current liabilities 164,328 137,690
Total current liabilities 459,115 666,627
Long-term debt, net of current maturities 731,698 731,100
Other long-term liabilities 161,608 124,518
Total liabilities 1,352,421 1,522,245
Bio-Rad stockholders' equity 1,743,937 1,536,696
Noncontrolling interests 445 3,823
Total stockholders' equity 1,744,382 1,540,519
Total liabilities and stockholders' equity $ 3,096,803 $ 3,062,764
Bio-Rad Laboratories, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
Year Ended
December 31,
2011 2010
(UNAUDITED)
Cash flows from operating activities:
Cash received from customers $ 2,018,755 $ 1,877,483
Cash paid to suppliers and employees (1,656,467 ) (1,536,935 )
Interest paid (56,859 ) (59,834 )
Income tax payments (52,131 ) (55,502 )
Other operating activities 6,518 697
Net cash provided by operating activities 259,816 225,909
Cash flows from investing activities:
Payments for acquisitions and long-term investments (158,538 ) (89,307 )
Other investing activities (224,875 ) (127,205 )
Net cash used in investing activities (383,413 ) (216,512 )
Cash flows from financing activities:
Long-term borrowings - 424,633
Payments on long-term borrowings (226,835 ) (206,706 )
Other financing activities 13,275 10,818
Net cash (used in) provided by financing activities (213,560 ) 228,745
Effect of foreign exchange rate changes on cash 4,837 18,471
Net (decrease) increase in cash and cash equivalents (332,320 ) 256,613
Cash and cash equivalents at beginning of year 906,551 649,938
Cash and cash equivalents at end of year $ 574,231 $ 906,551
Reconciliation of net income including noncontrolling interests to net cash provided by operating activities:
Net income including noncontrolling interests $ 178,023 $ 186,935
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:
Depreciation and amortization 120,956 108,911
Changes in working capital (54,570 ) (72,350 )
Other 15,407 2,413
Net cash provided by operating activities $ 259,816 $ 225,909

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