SOURCE: Bio-Rad Laboratories

Bio-Rad Laboratories

February 25, 2016 16:15 ET

Bio-Rad Reports Fourth-Quarter and Full-Year 2015 Financial Results

HERCULES, CA--(Marketwired - Feb 25, 2016) - Bio-Rad Laboratories, Inc. (NYSE: BIO) (NYSE: BIO.B), a global provider of life science research and clinical diagnostic products, today announced financial results for the fourth quarter and fiscal year ended December 31, 2015.

Fourth-quarter 2015 reported revenues were $570.6 million, a decrease of 4.6% compared to $598.2 million reported for the fourth quarter of 2014. On a currency-neutral basis, quarterly revenues increased 2.8% compared to the same period in 2014. Fourth-quarter gross margin was 54.1% compared to 53.1% during the fourth quarter in 2014.

Net income for the fourth quarter of 2015 was $49.5 million, or $1.68 per share on a fully diluted basis, compared to $39.0 million, or $1.34 per share during the same period in 2014. The increase in net income was largely due to lower SG&A and research & development (R&D) expenses as well as a lower effective tax rate in the fourth quarter of 2015 of 8.7%, which was the result of expected utilization of foreign tax credits in the U.S. and the permanent reinstatement of the federal R&D credit in the fourth quarter of 2015. This increase was partially offset by a lower gross profit during the fourth quarter of 2015 compared to the same period in 2014. 

For the full year of 2015, sales were $2,019.4 million compared to $2,175.0 million in 2014, a decrease of 7.2%. On a currency neutral basis, sales increased by 1.6%. Full-year gross margin was 55.5% compared to 54.2% reported in 2014. The gross margin increase compared to 2014 primarily reflected sales mix as well as costs associated with plant closures and a product line discontinuation that occurred in 2014.

Full-year net income in 2015 was $113.1 million, or $3.85 per share on a fully diluted basis, compared to $88.8 million, or $3.05 per share in 2014. The year-over-year net income increase in 2015 was primarily the result of lower SG&A expenses, lower R&D expenses, and the effect of currency in 2015. SG&A in 2014 included approximately $23.7 million in non-recurring expense. The effective tax rate of 22.5% for 2015 compared to 32.5% in 2014 was primarily due to expected utilization of foreign tax credits on certain foreign dividends as well as a reduction in certain tax reserves as statutes lapsed.

"Despite currency headwinds, we are encouraged with our underlying performance in the fourth quarter and the entire year, which reflected good momentum across many of our core product lines," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "Overall, 2015 was a year of progress on many fronts, with continued investment in infrastructure to support our growth now and in the future."

Life Science
The Life Science segment net sales for the fourth quarter were $218.1 million, a decrease of 2.5% compared to the same period in 2014. On a currency-neutral basis, Life Science segment sales increased by 3.4%. Results from the fourth quarter benefited from currency-neutral increased sales of the segment's core businesses, in particular, process chromatography media, the Droplet Digital PCR, and cell biology products. Full-year reported revenues for the Life Science segment were $695.0 million, a decrease of 4.6% compared to the same period in 2014. On a currency-neutral basis, full-year sales increased 2.5%. 

Clinical Diagnostics
The Clinical Diagnostics segment reported net sales of $348.6 million for the fourth quarter, a decrease of 5.9% compared to the same period in 2014. On a currency-neutral basis, net sales were up 2.5%. Results from the fourth quarter reflected growth across certain product lines, most notably clinical immunology, quality controls, blood testing, and diabetes products. During the fourth quarter, Bio-Rad announced that its D-100 System for A1c testing had obtained clearance from the U.S. Food and Drug Administration (FDA) to monitor the long-term blood glucose control of individuals with diabetes, as an aid in the diagnosis of diabetes, and to help identify those who may be at risk for developing the disease. Also during the fourth quarter, the Company announced that it had received clearance from the FDA for the company's TANGO infinity® system. The system automates routine blood typing and screening testing procedures for patients and donors. Full-year reported revenues for the Clinical Diagnostics segment were $1,310.4 million, a decrease of 8.5% compared to the same period in 2014. On a currency-neutral basis, full-year sales increased 1.1% compared to 2014.

2015 Full-Year Highlights

  • Full-year, sales were $2,019.4 million compared to $2,175.0 million in 2014. After normalizing for the impact of currency effects, full year revenues increased 1.6%.
  • Year-over-year net income in 2015 was $113.1 million, or $3.85 per share on a fully diluted basis, compared to $88.8 million, or $3.05 per share in 2014.
  • In April, Bio-Rad introduced a new laser configuration for its S3e Cell Sorter, providing new capabilities for stem cell and other research applications. Also that month, Bio-Rad announced the availability in U.S. markets of its BioPlex® 2200 25-OH Vitamin D kit for use on the company's BioPlex® 2200 system.
  • In June, Bio-Rad announced that its VARIANT™ II TURBO HbA1c Kit - 2.0 had obtained clearance from the U.S. Food and Drug Administration for use as an aid in diagnosing diabetes and identifying people who may be at risk for developing the disease.
  • In July, Bio-Rad announced that it had received U.S. Food and Drug Administration pre-market approval to offer its BioPlex® 2200 HIV Ag-Ab assay, the company's 5th generation HIV diagnostic test.
  • In August, Bio-Rad introduced its IH-500, a fully automated random access system for blood typing and screening for small and medium-size transfusion medicine laboratories. The instrument is available in Europe, Asia, Africa, Australia, and Latin America.
  • In December, Bio-Rad received clearance from the FDA for the Company's D-100 System for A1c testing and its TANGO infinity system. 

Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) February 25, 2016. Interested parties may access the call at 855-779-9068 within the U.S. or 631-485-4862 outside the U.S., passcode: 30616978. You may also listen to the conference call via a webcast that is available in 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) (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 7,700 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, sales by region 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, supply chain issues, our ability to compete effectively, product quality and liability issues, 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, 2014, and its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2015, and its Annual Report on Form 10-K for the fiscal year ended December 31, 2015 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
December 31,
    Year Ended
December 31,
 
    2015     2014     2015     2014  
Net sales   $ 570,557     $ 598,224     $ 2,019,441     $ 2,175,044  
  Cost of goods sold     262,042       280,814       897,771       996,527  
Gross profit     308,515       317,410       1,121,670       1,178,517  
                                 
  Selling, general and administrative expense     193,145       207,537       761,990       808,200  
  Research and development expense     55,887       59,287       192,972       220,333  
Income from operations     59,483       50,586       166,708       149,984  
                                 
  Interest expense     6,034       5,000       21,692       22,131  
  Foreign currency exchange losses, net     1,339       3,187       10,249       9,305  
  Other (income) expense, net     (2,088 )     (3,347 )     (11,080 )     (13,009 )
Income before income taxes     54,198       45,746       145,847       131,557  
                                 
  Provision for income taxes     (4,716 )     (6,709 )     (32,754 )     (42,712 )
Net income   $ 49,482     $ 39,037     $ 113,093     $ 88,845  
                                 
Basic earnings per share:                                
  Net income per basic share   $ 1.69     $ 1.35     $ 3.87     $ 3.08  
                                 
  Weighted average common shares - basic     29,321       29,000       29,186       28,876  
                                 
Diluted earnings per share:                                
  Net income per diluted share   $ 1.68     $ 1.34     $ 3.85     $ 3.05  
                                 
  Weighted average common shares - diluted     29,470       29,192       29,409       29,133  
                                 
                                 
 
Bio-Rad Laboratories, Inc.
Condensed Consolidated Balance Sheets
 
(in thousands)
(UNAUDITED)
           
    December 31,   December 31,
    2015   2014
             
Current assets:            
  Cash and cash equivalents   $ 457,549   $ 413,251
  Short-term investments     332,928     284,384
  Accounts receivable, net     391,485     377,640
  Inventories, net     490,224     470,997
  Other current assets     105,410     170,095
    Total current assets     1,777,596     1,716,367
             
Property, plant and equipment, net     437,690     428,836
Goodwill, net     495,948     500,441
Purchased intangibles, net     214,026     254,228
Other investments     719,840     389,309
Other assets     66,442     52,097
    Total assets   $ 3,711,542   $ 3,341,278
             
             
Current liabilities:            
  Accounts payable, accrued payroll and employee benefits   $ 280,248   $ 282,034
  Current maturities of long-term debt     298     265
  Income and other taxes payable     29,339     35,165
  Other current liabilities     131,466     129,297
    Total current liabilities     441,351     446,761
             
Long-term debt, net of current maturities     435,707     435,710
Other long-term liabilities     343,981     273,652
    Total liabilities     1,221,039     1,156,123
                 
    Total stockholders' equity     2,490,503     2,185,155
    Total liabilities and stockholders' equity   $ 3,711,542   $ 3,341,278
                 
                 
   
Bio-Rad Laboratories, Inc.  
Condensed Consolidated Statements of Cash Flows  
   
(in thousands)  
(UNAUDITED)  
             
    Year Ended
December 31,
 
             
    2015     2014  
                 
Cash flows from operating activities:                
  Cash received from customers   $ 1,956,084     $ 2,162,520  
  Cash paid to suppliers and employees     (1,730,062 )     (1,806,526 )
  Interest paid     (20,793 )     (20,793 )
  Income tax payments     (31,715 )     (28,939 )
  Settlement to the SEC and DOJ relating to the FCPA, including interest     -       (55,050 )
  Other operating activities     12,696       22,100  
  Net cash provided by operating activities     186,210       273,312  
                 
Cash flows from investing activities:                
  Payments for acquisitions and long-term investments     (4,356 )     (44,627 )
  Other investing activities     (162,513 )     (145,884 )
  Net cash used in investing activities     (166,869 )     (190,511 )
                 
Cash flows from financing activities:                
  Payments on long-term borrowings     (282 )     (253 )
  Other financing activities     8,863       11,942  
  Net cash provided by financing activities     8,581       11,689  
                 
Effect of foreign exchange rate changes on cash     16,376       (12,790 )
                 
Net increase in cash and cash equivalents     44,298       81,700  
Cash and cash equivalents at beginning of year     413,251       331,551  
Cash and cash equivalents at end of year   $ 457,549     $ 413,251  
                 
                 
Reconciliation of net income to net cash provided by operating activities:                
Net income   $ 113,093     $ 88,845  
Adjustments to reconcile net income to net cash provided by operating activities:                
  Depreciation and amortization     131,848       149,889  
  Changes in working capital     (51,821 )     21,700  
  Other     (6,910 )     12,878  
Net cash provided by operating activities   $ 186,210     $ 273,312  
                 

Contact Information

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