SOURCE: Bio-Rad Laboratories

Bio-Rad Laboratories

February 27, 2014 16:15 ET

Bio-Rad Reports Fourth-Quarter and Full-Year 2013 Financial Results

HERCULES, CA--(Marketwired - Feb 27, 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 fourth quarter and fiscal year ended December 31, 2013.

Fourth-quarter 2013 reported revenues were $602.6 million, up 5.0% compared to $573.8 million reported for the fourth quarter of 2012. These results included $6.0 million of sales resulting from the Company's acquisition of AbD Serotec in January 2013. On a currency-neutral basis, quarterly revenues increased 5.7% compared to the same period in 2012. Fourth-quarter gross margin was 53.6% compared to 54.8% during the same quarter in 2012.

Net income for the fourth quarter of 2013 was $30.1 million, or $1.04 per share on a fully diluted basis, compared to $43.3 million, or $1.51 per share during the same period in 2012. These results included an accrued expense of $15 million 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; this is in addition to an accrued expense of $20 million in the third quarter of 2013. 

For the full year of 2013, sales were $2,132.7 million compared to $2,069.2 million in 2012, an increase of 3.1%, or 3.9% on a currency neutral basis.

Full-year net income in 2013 was $77.8 million, or $2.69 per share on a fully diluted basis, compared to $165.5 million, or $5.78 per share in 2012. Full-year gross margin was 55.3% compared to 55.8% reported in 2012. The decrease in net income in 2013 was primarily due to higher SG&A expenses resulting from employee expenses associated with acquisitions; the $35 million legal accrual mentioned above, which includes $5 million in interest; and expenses associated with the enterprise resource planning (ERP) implementation. Also in 2013, interest expense increased primarily due to our decision to redeem certain bonds in the third quarter of 2013, which resulted in related expenses of $15.6 million.

In addition, certain events occurred during 2012 that favorably impacted results that year and include reductions in the valuation of the contingent consideration associated with the QuantaLife acquisition of $16.1 million, as well as higher "other income" resulting from certain investment gains. 

"Even though 2013 results were negatively impacted by some one-time events, we are encouraged by the results in the fourth quarter, which reflect strength across many of our product lines," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "Our 2013 results were also tempered by continued investments in new products and systems that will provide the company greater operating leverage for the future." 

Life Science
The Life Science segment net sales for the fourth quarter were $220.5 million, up 8.0% compared to the same period in 2012. On a currency-neutral basis, Life Science segment sales increased by 9.4%. The sales increase during the quarter was primarily driven by sales of antibodies and reagents from the Company's acquisition of AbD Serotec, the QX200 Droplet Digital PCR (ddPCR) system, as well as other recently introduced products including the NGC family of chromatography systems and the S3 cell sorter. During the quarter Bio-Rad's installed base of ddPCR systems exceeded 500 units; the system has been featured in 75-peer-reviewed publications since it was first introduced. Full-year reported revenues for the Life Science segment were $710 million, up 3.1% compared to 2012, or an increase of 4.5% on a currency-neutral basis.

Clinical Diagnostics
The Clinical Diagnostics segment reported net sales of $377.9 million for the fourth quarter, up 3.3% compared to the same period in 2012. On a currency-neutral basis, net sales were up 3.6%. Performance in the Clinical Diagnostics segment in the fourth quarter reflected growth across all product lines, most notably the Company's quality controls, diabetes monitoring, and autoimmune testing products. Full-year reported revenues for the Clinical Diagnostics segment were $1,408.0 million, up 3.1% compared to the same period in 2012. On a currency-neutral basis, full-year sales increased 3.6% compared to 2012. 

2013 Full-Year Highlights

  • Full-year, sales were $2,132.7 million compared to $2,069.2 million in 2012. After normalizing for the impact of currency effects, full year revenues increased 3.9%.
  • Year-over-year net income was $77.8 million, or $2.69 per share on a fully diluted basis, compared to $165.5 million, or $5.78 per share in 2012.
  • In January, Bio-Rad purchased AbD Serotec, one of the world's leading antibody manufacturers offering over 15,000 antibodies, kits, and accessories.
  • During the second quarter, the Company introduced the S3 cell sorter, an easy-to-use, automated and affordable benchtop cell sorter designed for both core facilities and individual research labs.
  • Also in the second quarter, Bio-Rad launched the Geenius HIV 1/2 Confirmatory for markets outside the U.S. The Geenius HIV 1/2 Confirmatory is a complete system that offers several advantages over classic confirmatory methods.
  • In July, the Company launched its PrimePCR assays for Droplet Digital PCR. These new predesigned assays for mutation detection and copy number variation have been experimentally validated to provide single-copy PCR resolution without a standard curve.
  • In October, Bio-Rad launched its TGX FastCast and TGX Stain-Free FastCast acrylamide kits for gel electrophoresis, which provide researchers who handcast their own gels access to Bio-Rad's TGX gel chemistry, previously available only in precast gels.

In connection with the engagement of new auditors during the third quarter of 2013, the Company will delay the filing of its Form 10-K for the year ended December 31, 2013, to allow the newly appointed auditors adequate time to complete their procedures related to the Company's financials for 2013. Bio-Rad will file a Notification of Late Filing on Form 12b-25 with the Securities and Exchange Commission.

Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) February 27, 2014. Interested parties may access the call by dialing 866-314-5232 (in the U.S.) or 617-213-8052 (international), access number 92640314.

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 92261486, 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) 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 approximately 7,750 people worldwide and had revenues exceeding $2 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
December 31,
    Year Ended
December 31,
 
    2013     2012     2013     2012  
Net sales   $ 602,635     $ 573,839     $ 2,132,694     $ 2,069,235  
  Cost of goods sold     279,886       259,293       954,216       914,077  
Gross profit     322,749       314,546       1,178,478       1,155,158  
                                 
  Selling, general and administrative expense     214,584       188,865       798,070       681,778  
  Research and development expense     55,848       58,567       210,952       209,204  
Income from operations     52,317       67,114       169,456       264,176  
                                 
  Interest expense     7,019       13,614       61,271       51,112  
  Foreign exchange losses, net     2,843       1,532       8,566       5,040  
  Other (income) expense, net     (2,055 )     (7,191 )     (12,766 )     (21,883 )
Income before income taxes     44,510       59,159       112,385       229,907  
                                 
  Provision for income taxes     (14,374 )     (15,986 )     (34,574 )     (64,361 )
Net income including noncontrolling interests     30,136       43,173       77,811       165,546  
                                 
  Net loss (income) attributable to noncontrolling interests     -       79       (21 )     (69 )
Net income attributable to Bio-Rad   $ 30,136     $ 43,252     $ 77,790     $ 165,477  
                                 
Basic earnings per share:                                
  Net income per basic share attributable to Bio-Rad   $ 1.05     $ 1.52     $ 2.72     $ 5.85  
                                 
  Weighted average common shares - basic     28,708       28,394       28,586       28,290  
                                 
Diluted earnings per share:                                
  Net income per diluted share attributable to Bio-Rad   $ 1.04     $ 1.51     $ 2.69     $ 5.78  
                                 
  Weighted average common shares - diluted     28,988       28,712       28,906       28,642  
                                 
 
Bio-Rad Laboratories, Inc.
Condensed Consolidated Balance Sheets
 
(In thousands)
         
    December 31,   December 31,
    2013   2012
    (UNAUDITED)    
Current assets:            
  Cash and cash equivalents   $ 331,551   $ 463,388
  Short-term investments     277,369     457,685
  Accounts receivable, net     422,660     398,739
  Inventories, net     501,291     455,120
  Other current assets     214,985     161,750
    Total current assets     1,747,856     1,936,682
             
Property, plant and equipment, net     429,355     416,938
Goodwill, net     517,770     495,418
Purchased intangibles, net     266,188     260,939
Other assets     427,621     333,526
    Total assets   $ 3,388,790   $ 3,443,503
             
             
Current liabilities:            
  Accounts payable   $ 148,510   $ 130,867
  Accrued payroll and employee benefits     130,658     135,955
  Notes payable and current maturities of long-term debt     1,786     1,750
  Income and other taxes payable     33,555     34,779
  Other current liabilities     172,963     169,049
    Total current liabilities     487,472     472,400
             
Long-term debt, net of current maturities     435,615     732,414
Other long-term liabilities     278,981     223,149
    Total liabilities     1,202,068     1,427,963
             
Bio-Rad stockholders' equity     2,186,722     2,015,005
Noncontrolling interests     -     535
    Total stockholders' equity     2,186,722     2,015,540
    Total liabilities and stockholders' equity   $ 3,388,790   $ 3,443,503
                 
   
Bio-Rad Laboratories, Inc.  
Condensed Consolidated Statements of Cash Flows  
   
(In thousands)  
             
    Year Ended
December 31,
 
             
    2013     2012  
    (UNAUDITED)        
Cash flows from operating activities:                
  Cash received from customers   $ 2,090,030     $ 2,063,805  
  Cash paid to suppliers and employees     (1,797,688 )     (1,654,943 )
  Interest paid     (61,233 )     (46,369 )
  Income tax payments     (71,144 )     (93,697 )
  Other operating activities     15,511       7,232  
  Net cash provided by operating activities     175,476       276,028  
                 
Cash flows from investing activities:                
  Payments for acquisitions and long-term investments     (72,054 )     (39,443 )
  Other investing activities     66,633       (370,491 )
  Net cash used in investing activities     (5,421 )     (409,934 )
                 
Cash flows from financing activities:                
  Payments on long-term borrowings     (300,228 )     (620 )
  Other financing activities     (11,469 )     13,208  
  Net cash (used in) provided by financing activities     (311,697 )     12,588  
                 
Effect of foreign exchange rate changes on cash     9,805       10,475  
                 
Net decrease in cash and cash equivalents     (131,837 )     (110,843 )
Cash and cash equivalents at beginning of year     463,388       574,231  
Cash and cash equivalents at end of year   $ 331,551     $ 463,388  
                 
                 
Reconciliation of net income including noncontrolling interests to                
net cash provided by operating activities:                
                 
Net income including noncontrolling interests   $ 77,811     $ 165,546  
Adjustments to reconcile net income including noncontrolling interests                
to net cash provided by operating activities:                
    Depreciation and amortization     147,157       130,424  
    Changes in working capital     (66,610 )     (4,506 )
    Other     17,118       (15,436 )
Net cash provided by operating activities   $ 175,476     $ 276,028  
                 

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