SOURCE: Bio-Rad Laboratories

February 24, 2010 16:24 ET

Bio-Rad Reports Record Fourth-Quarter and Full-Year 2009 Financial Results

HERCULES, CA--(Marketwire - February 24, 2010) - 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, 2009.

Fourth-quarter reported revenues were $495.1 million, up 10.5% compared to $448.0 million reported for the fourth quarter of 2008. On a currency-neutral basis, quarterly revenues increased 4.3% compared to the same period last year. This increase was the result of organic growth across Bio-Rad's two main areas, Life Science and Clinical Diagnostics. Fourth-quarter gross margin was 54.2% compared to 55.1% during the same quarter last year.

Net income attributable to Bio-Rad for the fourth quarter of 2009 was $37.9 million, or $1.35 per share on a fully diluted basis compared to ($0.30) per share, during the same period last year. The fourth quarter 2008 loss was a result of non-cash impairment charges of $35.0 million. Included in the fourth quarter of 2009 were non-cash impairment charges of $3.8 million.

For the full year, sales grew by 1.1% to $1,784.2 million compared to $1,764.4 million in 2008. After normalizing for the impact of currency effects, Bio-Rad sales grew by 5.5%.

Full-year net income attributable to Bio-Rad was $144.6 million, or $5.20 per share on a fully diluted basis, compared to $89.5 million, or $3.24 per share, respectively, in 2008. Full-year gross margin was 56.0% compared to last year's figure of 54.6%. This improvement in gross margin is primarily the result of improved manufacturing planning and utilization as well as a reduction in purchase accounting and royalty-related expenses.

"We are pleased with our performance in the fourth quarter as well as the entire year," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "We approached 2009 with caution as the world faced some tough economic conditions. Yet in spite of those challenges, 2009 turned out to be another successful year for Bio-Rad. Looking ahead to 2010, we will focus on the integration of the diagnostics businesses of Biotest AG that Bio-Rad acquired in January and the introduction of new products."

Life Science

The Life Science segment net sales for the fourth quarter were $191.0 million, up 12.1% compared to the same period last year. On a currency-neutral basis, Life Science segment sales increased by 6.6%. Full-year reported revenues for the Life Science segment were $631.5 million, down 1.9% over the prior year, or an increase of 0.8% on a currency-neutral basis. Performance in the Life Science segment during the fourth quarter benefited from sales of the Company's next generation PCR instruments, in particular, the CFX96™ real-time thermal cycler. Segment performance was also boosted by sales of the Company's protein separation and analysis tools including electrophoresis, chromatography, and imaging products as well as sales of the ProteOn™ protein interaction array system. During the quarter, the segment launched the Mini-PROTEAN® TGX precast electrophoresis gel product line, which delivers ultra-fast time to results, high resolution, and extended shelf life.

Clinical Diagnostics

The Clinical Diagnostics segment reported net sales of $300.5 million for the fourth quarter, up 9.7% compared to the prior-year quarter. On a currency-neutral basis, net sales were up 2.9%. Full-year reported revenues for the Clinical Diagnostics segment were $1,139.9 million, an increase of 3.0% over the prior year. On a currency-neutral basis, full-year sales increased 8.5% compared to 2008 results. Performance in the Clinical Diagnostics segment during the fourth quarter was the result of growth across all product lines, most notably quality controls, blood typing, and diabetes monitoring. During the fourth quarter, Bio-Rad announced that it had signed an agreement to acquire certain diagnostics businesses of Biotest AG, including its diagnostics products in the areas of blood transfusion testing, transplantation, and infectious diseases. (The transaction was completed in the first quarter of 2010).

2009 Full-Year Highlights

-- Full-year Company sales grew by 1.1% to $1,784.2 million.
-- Full-year net income attributable to Bio-Rad was $144.6 million, or
   $5.20 per share on a fully diluted basis, compared to $89.5 million, or
   $3.24 per share, respectively, in 2008.
-- In April, the Life Science segment launched its SsoFast™ EvaGreen®
   Supermix, the first member of Bio-Rad's next-generation family of
   high-performance, real-time PCR reagents.
-- In June, the Clinical Diagnostics segment announced that it had
   received FDA clearance of two new multiplex infectious disease serology
   panels for use on the BioPlex 2200 system: the BioPlex ToRC IgG panel
   and the BioPlex HSV-1 & HSV-2 IgG panel. The ToRC IgG kit simultaneously
   detects IgG class antibodies to Toxoplasma gondii (T. gondii), Rubella,
   and Cytomegalovirus (CMV). The HSV-1 & HSV-2 IgG kit utilizes
   type-specific proteins to simultaneously detect and differentiate IgG
   class antibodies to the two most common herpes subtypes, HSV-1 and
   HSV-2.
-- In September, Bio-Rad and Bruker Corporation, a manufacturer of mass
   spectrometry (MS) instruments, announced the launch of the Lucid
   Proteomics System, which improves the possibility of discovering
   biomarkers that have clinical relevance.
-- Also in September, Bio-Rad announced the launch of Unity Real Time®
   2.0, the latest version of its expert QC Data Management solution. The
   platform is designed to manage laboratory QC and to validate analytical
   runs.
-- In October, Bio-Rad announced it had signed an agreement to acquire
   certain diagnostics businesses of Biotest AG, including its diagnostics
   products in the areas of blood transfusion testing, transplantation, and
   infectious diseases. (The transaction was completed in the first quarter
   of 2010).

Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) February 24, 2010. Interested parties may access the call by dialing 866-277-1181 (in the U.S.) or 617-597-5358 (international), access number 83859462. The live webcast can be accessed at http://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 44802116 for seven days following the call, and the webcast can be accessed at http://www.bio-rad.com for 30 days.

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 85,000 research and industry customers worldwide through its global network of operations. The Company employs over 6,700 people globally and had revenues of nearly $1.8 billion in 2009. 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       Twelve Months Ended
                            December 31,              December 31,
                       ------------------------  ------------------------
                          2009         2008         2009         2008
                       -----------  -----------  -----------  -----------
Net sales              $   495,073  $   447,965  $ 1,784,244  $ 1,764,365
  Cost of goods sold       226,604      201,289      784,401      801,843
                       -----------  -----------  -----------  -----------
Gross profit               268,469      246,676      999,843      962,522

  Selling, general and
   administrative
   expense                 163,862      154,497      601,468      591,304
  Product research and
   development expense      44,510       41,120      163,585      159,518
  Impairment losses on
   goodwill and
   long-lived assets         3,802       28,757        3,802       28,757
                       -----------  -----------  -----------  -----------
Income from operations      56,295       22,302      230,988      182,943

  Interest expense          14,363        7,985       47,024       32,113
  Foreign exchange
   losses                    1,754        5,238        5,003        7,634
  Other (income)
   expense, net             (1,915)       5,020       (6,871)         353
                       -----------  -----------  -----------  -----------
Income before taxes         42,093        4,059      185,832      142,843

  Provision for income
   taxes                    (3,571)     (10,567)     (36,667)     (44,579)
                       -----------  -----------  -----------  -----------
Net income (loss)
 including
 noncontrolling
 interests                  38,522       (6,508)     149,165       98,264

  Less: Net income
   attributable to
   noncontrolling
   interests                  (660)      (1,708)      (4,545)      (8,754)
                       -----------  -----------  -----------  -----------
Net income (loss)
 attributable to
 Bio-Rad               $    37,862  $    (8,216) $   144,620  $    89,510
                       ===========  ===========  ===========  ===========

Basic earnings (loss)
 per share:
  Net income (loss)
   attributable to
   Bio-Rad             $      1.38  $     (0.30) $      5.28  $      3.30
                       ===========  ===========  ===========  ===========

  Weighted average
   common shares            27,491       27,278       27,404       27,112
                       ===========  ===========  ===========  ===========

Diluted earnings (loss)
 per share:
  Net income (loss)
   attributable to
   Bio-Rad             $      1.35  $     (0.30) $      5.20  $      3.24
                       ===========  ===========  ===========  ===========

  Weighted average
   common shares            28,006       27,278       27,828       27,638
                       ===========  ===========  ===========  ===========






                        Bio-Rad Laboratories, Inc.

                  Condensed Consolidated Balance Sheets

                              (In thousands)
                                (UNAUDITED)



                                                 December 31, December 31,
                                                     2009         2008
                                                  ----------- -----------
Current assets:
  Cash and cash equivalents                       $   649,938 $   204,524
  Short-term investments                               94,876      38,950
  Accounts receivable, net                            345,734     339,653
  Inventories                                         351,206     375,616
  Other current assets                                120,920     135,198
                                                  ----------- -----------
    Total current assets                            1,562,674   1,093,941

Property, plant and equipment, net                    302,417     300,732
Goodwill, net                                         327,626     321,820
Purchased intangibles, net                            204,779     228,590
Other assets                                          138,357      92,181
                                                  ----------- -----------
    Total assets                                  $ 2,535,853 $ 2,037,264
                                                  =========== ===========


Current liabilities:
  Accounts payable                                $    92,988 $   117,982
  Accrued payroll and employee benefits               126,702     119,420
  Notes payable and current maturities of
   long-term debt                                       5,132       9,578
  Income and other taxes payable                       42,322      33,731
  Other current liabilities                           152,828     137,323
                                                  ----------- -----------
    Total current liabilities                         419,972     418,034

Long-term debt, net of current maturities             737,919     445,979
Other long-term liabilities                            98,749     102,611
                                                  ----------- -----------
    Total liabilities                               1,256,640     966,624

Bio-Rad stockholders' equity                        1,259,726   1,041,139
Noncontrolling interests                               19,487      29,501
                                                  ----------- -----------
    Total stockholders' equity                      1,279,213   1,070,640
                                                  ----------- -----------
    Total liabilities and stockholders'
     equity                                       $ 2,535,853 $ 2,037,264
                                                  =========== ===========




                        Bio-Rad Laboratories, Inc.

              Condensed Consolidated Statements of Cash Flows

                              (In thousands)
                                (UNAUDITED)


                                                      Year Ended
                                                     December 31,

                                                   2009         2008
                                               -----------  -----------

Cash flows from operating activities:
  Cash received from customers                 $ 1,778,316  $ 1,765,667
  Cash paid to suppliers and employees          (1,386,382)  (1,495,669)
  Interest paid                                    (38,471)     (30,792)
  Income tax payments                              (37,749)     (49,159)
  Other operating activities                         9,360        1,324
                                               -----------  -----------
  Net cash provided by operating activities        325,074      191,371


Cash flows from investing activities:
  Payment for acquisitions and long-term
   investments                                     (35,990)     (53,014)
  Other investing activities                      (139,962)     (93,093)
                                               -----------  -----------
  Net cash used in investing activities           (175,952)    (146,107)

Cash flows from financing activities:
  Long-term borrowings                             294,750        1,600
  Payments on long-term borrowings                  (6,823)     (11,589)
  Other financing activities                         6,006       16,320
                                               -----------  -----------
  Net cash provided by financing activities        293,933        6,331

Effect of foreign exchange rate changes on cash      2,359       (8,835)
                                               -----------  -----------

Net increase in cash and cash equivalents          445,414       42,760
Cash and cash equivalents at beginning of year     204,524      161,764
                                               -----------  -----------
Cash and cash equivalents at end of year       $   649,938  $   204,524
                                               ===========  ===========


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

Net income including noncontrolling interests  $   149,165  $    98,264
Adjustments to reconcile net income including
 noncontrolling interests to net cash provided
 by operating activities:
  Depreciation and amortization                    101,682       97,088
  Impairment losses on goodwill and long-lived
   assets                                            3,802       28,757
  Changes in working capital                        66,707      (46,563)
  Other                                              3,718       13,825
                                               -----------  -----------
Net cash provided by operating activities      $   325,074  $   191,371
                                               ===========  ===========

Contact Information

  • For more information contact:
    Christine Tsingos
    Vice President and Chief Financial Officer
    Ron Hutton
    Treasurer
    Bio-Rad Laboratories, Inc.
    510-724-7000
    Email Contact