SOURCE: Bio-Rad Laboratories

February 26, 2013 16:15 ET

Bio-Rad Reports Fourth-Quarter and Full-Year 2012 Financial Results

HERCULES, CA--(Marketwire - Feb 26, 2013) - Bio-Rad Laboratories, Inc. (NYSE: BIO) (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, 2012.

Fourth-quarter reported revenues were $573.8 million, up 4.3% compared to $550.2 million reported for the fourth quarter of 2011. On a currency-neutral basis, quarterly revenues increased 6.1% compared to the same period in 2011. Fourth-quarter gross margin was 55.9% compared to 56.5% during the same quarter in 2011.

Net income for the fourth quarter of 2012 was $47.5 million, or $1.65 per share on a fully diluted basis, compared to $59.2 million, or $2.08 per share, respectively, during the same period in 2011. These results include a one-time gain of $4.3 million resulting from the sale of real property.

For the full year, sales were $2,069.2 million compared to $2,073.5 million in 2011. After normalizing for the impact of currency effects, full year revenues increased 3.6%.

Full-year net income was $169.2 million, or $5.91 per share on a fully diluted basis, compared to $178.2 million, or $6.26 per share, respectively, in 2011. The decrease in net income reflects lower gross margins and an increase in R&D expense. Full-year gross margin was 56.1% compared to 56.8% reported in 2011. Incremental gross profit for 2012 was impacted by additional amortization expense of $10.0 million related to acquisitions. Earnings were favorably impacted by a $16.1 million reduction in the valuation of contingent consideration associated with the Quantalife acquisition as well as an increase in other income resulting from certain investment gains. 

"We are pleased with our performance in the fourth quarter, with good momentum across many of our product areas," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "As we had expected, full-year results reflect macroeconomic challenges, which impacted many of our markets. Looking ahead to 2013, we anticipate a similar economic environment." 

Life Science
The Life Science segment net sales for the fourth quarter were $204.2 million, up 2.7% compared to the same period in 2011. On a currency-neutral basis, Life Science segment sales increased by 3.7%. Results for the fourth quarter benefitted from sales of process chromatography media and electrophoresis products as well the Company's QX100™ Droplet Digital™ PCR system. During the fourth quarter, the Company announced that it had signed a definitive agreement to acquire AbD Serotec, which provides a comprehensive catalog of antibodies. The purchase was completed in January of 2013. Also during the fourth quarter, Bio-Rad announced the launch of several new platforms, including the S3™ cell sorter and a series of new chromatography instruments. Full-year reported revenues for the Life Science segment were $688.4 million, down 0.9% compared to 2011, or an increase of 1.5% on a currency-neutral basis.

Clinical Diagnostics
The Clinical Diagnostics segment reported net sales of $365.9 million for the fourth quarter, up 5.3% compared to the same period in 2011. On a currency-neutral basis, net sales were up 7.5%. Performance in the Clinical Diagnostics segment in the fourth quarter reflects strength across all product lines, most notably the Company's quality controls, blood typing, and diabetes monitoring products. Full-year reported revenues for the Clinical Diagnostics segment were $1,365.5 million, up 0.1% compared to the same period in 2011. On a currency-neutral basis, full-year sales increased 4.7% compared to 2011. 

2012 Full-Year Highlights

  • Full-year, sales were $2,069.2 million compared to $2,073.5 million in 2011. After normalizing for the impact of currency effects, full year revenues increased 3.6%.
  • Year-over-year net income was $169.2 million, or $5.91 per share on a fully diluted basis, compared to $178.2 million, or $6.26 per share in 2011.
  • In April, the company introduced its V3 Western Workflow™ system, which offers a portfolio of best-in-class products for electrophoresis, blotting, and imaging, saving researchers time and generating richer and more reliable data.
  • In July, Bio-Rad and Myriad RBM, Inc., a wholly owned subsidiary of Myriad Genetics Inc., announced that they partnered to develop and distribute immunoassay kits. Under the terms of the agreement, Myriad RBM grants Bio-Rad exclusive distribution rights, for research purposes, to the largest catalog of quantitative multiplexed immunoassays currently available to run on the Bio-Plex® 200, Bio-Plex® 3D, and Bio-Plex® MAGPIX™ instruments.
  • In August, Bio-Rad announced the launch of a Digital Biology Center to focus on the development of new products based on the Company's recently acquired droplet partitioning technology. The first product based on this technology, Bio-Rad's QX100 Droplet Digital PCR system, applies a sample partitioning technology to polymerase chain reaction (PCR) offering a new approach to nucleic acid quantification.
  • In September, Bio-Rad introduced the TC20™ automated cell counter, the next generation of the TC10™ automated cell counter that provides accurate and reliable counts of live mammalian cells in 30 seconds.
  • Also during the third quarter, Bio-Rad acquired an automated benchtop cell sorting system from Propel Labs. The first shipments of the S3 Cell Sorter began during the first quarter of 2013.
  • In December, Bio-Rad announced that it had signed a definitive agreement to acquire AbD Serotec. The purchase was completed in January 2013.
  • Also in December, Bio-Rad announced that they had entered into an agreement with Lamprogen, Inc., granting Bio-Rad exclusive rights to commercialize a class of bright, stable, and non-toxic fluorescent particles for use in a broad array of assays and research applications including flow cytometry. 

Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) February 26, 2013. Interested parties may access the call by dialing 866-383-8008 (in the U.S.) or 617-597-5341 (international), access number 81335034. 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 15517550, for seven days following the call. The webcast of the call will be archived on the Bio-Rad site for 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: BIO.B) has been at the center of scientific discovery for 60 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 approximately 7,300 people globally and had revenues exceeding $2 billion in 2012. For more information, please 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 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
December 31,
    Year Ended
December 31,
 
    2012     2011     2012     2011  
Net sales   $ 573,839     $ 550,238     $ 2,069,235     $ 2,073,529  
  Cost of goods sold     252,786       239,272       908,190       895,640  
Gross profit     321,053       310,966       1,161,045       1,177,889  
                                 
  Selling, general and administrative expense     189,075       174,924       682,898       696,294  
  Research and development expense     59,777       50,112       214,040       186,439  
Income from operations     72,201       85,930       264,107       295,156  
                                 
  Interest expense     11,765       11,987       49,263       53,135  
  Foreign exchange losses, net     1,532       1,710       5,040       13,842  
  Other (income) expense, net     (7,086 )     (1,676 )     (21,778 )     (7,583 )
Income before income taxes     65,990       73,909       231,582       235,762  
                                 
  Provision for income taxes     (18,567 )     (14,708 )     (62,279 )     (57,739 )
Net income including noncontrolling interests     47,423       59,201       169,303       178,023  
                                 
  Net loss (income) attributable to noncontrolling interests     79       38       (69 )     200  
Net income attributable to Bio-Rad   $ 47,502     $ 59,239     $ 169,234     $ 178,223  
                                 
Basic earnings per share:                                
  Net income per share basic attributable to Bio-Rad   $ 1.67     $ 2.11     $ 5.98     $ 6.36  
                                 
  Weighted average common shares - basic     28,394       28,131       28,290       28,031  
                                 
Diluted earnings per share:                                
  Net income per share diluted attributable to Bio-Rad   $ 1.65     $ 2.08     $ 5.91     $ 6.26  
                                 
  Weighted average common shares - diluted     28,712       28,462       28,642       28,468  
 
 
Bio-Rad Laboratories, Inc.
 
Condensed Consolidated Balance Sheets
 
(In thousands)
         
    December 31,   December 31,
    2012   2011
    (UNAUDITED)    
Current assets:            
  Cash and cash equivalents   $ 463,388   $ 574,231
  Short-term investments     457,685     238,884
  Accounts receivable, net     398,739     398,674
  Inventories, net     448,370     433,510
  Other current assets     156,612     152,856
    Total current assets     1,924,794     1,798,155
             
Property, plant and equipment, net     416,938     349,501
Goodwill, net     495,418     468,933
Purchased intangibles, net     260,939     259,497
Other assets     333,527     220,717
    Total assets   $ 3,431,616   $ 3,096,803
             
             
Current liabilities:            
  Accounts payable   $ 130,972   $ 129,124
  Accrued payroll and employee benefits     135,955     112,564
  Notes payable and current maturities of long-term debt     1,750     814
  Income and other taxes payable     32,271     52,285
  Other current liabilities     160,292     164,328
    Total current liabilities     461,240     459,115
             
Long-term debt, net of current maturities     732,414     731,698
Other long-term liabilities     221,237     161,608
    Total liabilities     1,414,891     1,352,421
             
Bio-Rad stockholders' equity     2,016,190     1,743,937
Noncontrolling interests     535     445
    Total stockholders' equity     2,016,725     1,744,382
    Total liabilities and stockholders' equity   $ 3,431,616   $ 3,096,803
   
   
Bio-Rad Laboratories, Inc.  
   
Condensed Consolidated Statements of Cash Flows  
   
(In thousands)  
             
    Year Ended
December 31,
 
             
    2012     2011  
    (UNAUDITED)        
Cash flows from operating activities:                
  Cash received from customers   $ 2,063,805     $ 2,018,755  
  Cash paid to suppliers and employees     (1,661,101 )     (1,656,467 )
  Interest paid     (46,369 )     (56,859 )
  Income tax payments     (87,434 )     (52,131 )
  Other operating activities     9,997       6,518  
  Net cash provided by operating activities     278,898       259,816  
                 
Cash flows from investing activities:                
  Payments for acquisitions and long-term investments     (39,443 )     (158,538 )
  Other investing activities     (373,361 )     (224,875 )
  Net cash used in investing activities     (412,804 )     (383,413 )
                 
Cash flows from financing activities:                
  Payments on long-term borrowings     (620 )     (226,835 )
  Other financing activities     13,208       13,275  
  Net cash provided by (used in) financing activities     12,588       (213,560 )
                 
Effect of foreign exchange rate changes on cash     10,475       4,837  
                 
Net decrease in cash and cash equivalents     (110,843 )     (332,320 )
Cash and cash equivalents at beginning of year     574,231       906,551  
Cash and cash equivalents at end of year   $ 463,388     $ 574,231  
                 
                 
Reconciliation of net income including noncontrolling interests to net cash provided by operating activities:                
                 
Net income including noncontrolling interests   $ 169,303     $ 178,023  
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:                
    Depreciation and amortization     130,424       120,956  
    Write off of goodwill     1,044       -  
    Changes in working capital     (11,487 )     (54,570 )
    Other     (10,386 )     15,407  
Net cash provided by operating activities   $ 278,898     $ 259,816  
                 

Contact Information

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