SOURCE: Bio-Rad Laboratories

August 07, 2012 16:15 ET

Bio-Rad Reports Second-Quarter 2012 Financial Results

HERCULES, CA--(Marketwire - Aug 7, 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 second quarter ended June 30, 2012.

Second-quarter reported revenues were $510.4 million, down 2.2 percent compared to $521.7 million reported for the second quarter of 2011. On a currency-neutral basis, quarterly revenues increased 3.0 percent compared to the same period last year. Second-quarter gross margin was 56.4 percent compared to 56.2 percent reported during the same quarter last year. Gross margin includes approximately $2.2 million of amortization expense resulting from the Company's acquisition of QuantaLife, Inc. in October 2011. Bio-Rad's current quarter operating income results were favorably impacted by $8.1 million due to a reduction in the valuation of the contingent consideration associated with the QuantaLife acquisition. Additionally, the receipt of certain foreign receivables, that had been previously reserved, benefitted quarterly results. 

Net income for the second quarter of 2012 was $48.3 million compared to $40.0 million reported for the second quarter of 2011. Second-quarter earnings were $1.69 per share on a fully diluted basis versus $1.41 per share reported for the same period last year.

On a reported basis, year-to-date revenues were down 1.0 percent to $996.7 million compared to $1,006.8 million for the first two quarters of 2011. On a currency-neutral basis, revenues grew 2.3 percent. 

Year-to-date net income was $79.3 million, or $2.78 per share on a fully diluted basis, compared to $73.1 million, or $2.57 per share, respectively, during the same period in 2011.

"Currency changes mask what was otherwise a decent result for the year so far, given the continued challenges of the global economy," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "While the economic outlook suggests more of the same for the remainder of the year, we continue to pursue opportunities on a number of fronts." 

Life Science
Life Science segment net sales for the second quarter were $162.4 million, down 4.4 percent compared to the same period last year. On a currency-neutral basis, Life Science segment net sales decreased by 0.9 percent compared to the second quarter of 2011. Solid growth in Asia Pacific and Japan were offset by slowness in North America and Europe. During the quarter, shipments of process media were down simply as a result of timing. In April, the company introduced its V3 Western Workflow system that offers a portfolio of best-in-class products for electrophoresis, blotting, and imaging, saving time and generating more reliable and robust data.

Clinical Diagnostics
Reported net sales for the Clinical Diagnostics segment in the second quarter were $344.0 million, down 1.2 percent compared to the same quarter last year. On a currency-neutral basis, net sales increased 4.9 percent. These gains were the result of growth across many products lines, most notably from blood virus, quality controls, diabetes, and microbiology products as well as the BioPlex® 2200 system. Strength in the emerging markets, Asia Pacific, and Japan helped to offset weakness in the European market.

Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) August 7, 2012. Interested parties may access the call by dialing 888-873-4896 (in the U.S.) or 617-213-8850 (international), access number 91064548.

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 63337374, 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 diagnostics 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, 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, 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
June 30,
    Six Months Ended
June 30,
 
    2012     2011     2012     2011  
Net sales   $ 510,422     $ 521,656     $ 996,699     $ 1,006,777  
  Cost of goods sold     222,522       228,520       430,217       436,030  
Gross profit     287,900       293,136       566,482       570,747  
                                 
  Selling, general and administrative expense     162,256       176,740       333,549       344,503  
  Research and development expense     52,336       48,210       105,259       90,940  
Income from operations     73,308       68,186       127,674       135,304  
                                 
  Interest expense     12,401       12,041       25,597       28,807  
  Foreign exchange losses, net     1,619       2,744       3,060       5,786  
  Other (income) expense, net     (6,731 )     (4,418 )     (13,181 )     (5,369 )
Income before income taxes     66,019       57,819       112,198       106,080  
                                 
  Provision for income taxes     (17,454 )     (17,797 )     (32,689 )     (33,120 )
Net income including noncontrolling interests     48,565       40,022       79,509       72,960  
                                 
  Net (income) loss attributable to noncontrolling interests     (222 )     26       (161 )     127  
Net income attributable to Bio-Rad   $ 48,343     $ 40,048     $ 79,348     $ 73,087  
                                 
Basic earnings per share:                                
  Net income per share basic attributable to Bio-Rad   $ 1.71     $ 1.43     $ 2.81     $ 2.61  
                                 
  Weighted average common shares - basic     28,250       28,014       28,226       27,959  
                                 
Diluted earnings per share:                                
  Net income per share diluted attributable to Bio-Rad   $ 1.69     $ 1.41     $ 2.78     $ 2.57  
                                   
  Weighted average common shares - diluted     28,610       28,495       28,582       28,443  
                                   
                                   
                                   
Bio-Rad Laboratories, Inc.
Condensed Consolidated Balance Sheets
 
(In thousands)
         
    June 30,   December 31,
    2012   2011
    (UNAUDITED)    
Current assets:            
  Cash and cash equivalents   $ 456,487   $ 574,231
  Short-term investments     378,770     238,884
  Accounts receivable, net     373,817     398,674
  Inventories, net     449,457     433,510
  Other current assets     152,541     152,856
    Total current assets     1,811,072     1,798,155
             
Property, plant and equipment, net     380,656     349,501
Goodwill, net     466,157     468,933
Purchased intangibles, net     241,341     259,497
Other assets     269,669     220,717
    Total assets   $ 3,168,895   $ 3,096,803
             
             
Current liabilities:            
  Accounts payable   $ 119,448   $ 129,124
  Accrued payroll and employee benefits     113,435     112,564
  Notes payable and current maturities of long-term debt     783     814
  Income and other taxes payable     32,609     52,285
  Other current liabilities     150,909     164,328
    Total current liabilities     417,184     459,115
             
Long-term debt, net of current maturities     732,054     731,698
Other long-term liabilities     167,165     161,608
    Total liabilities     1,316,403     1,352,421
             
Bio-Rad stockholders' equity     1,851,888     1,743,937
Noncontrolling interests     604     445
    Total stockholders' equity     1,852,492     1,744,382
    Total liabilities and stockholders' equity   $ 3,168,895   $ 3,096,803
                 
                 
                 
Bio-Rad Laboratories, Inc.  
Condensed Consolidated Statements of Cash Flows  
   
(In thousands)  
(UNAUDITED)  
             
    Six Months Ended
June 30,
 
    2012     2011  
                 
Cash flows from operating activities:                
  Cash received from customers   $ 1,008,515     $ 1,020,282  
  Cash paid to suppliers and employees     (835,174 )     (842,830 )
  Interest paid     (24,101 )     (33,296 )
  Income tax payments     (47,619 )     (18,709 )
  Other operating activities     7,281       4,634  
  Net cash provided by operating activities     108,902       130,081  
                 
Cash flows from investing activities:                
  Payments for acquisitions and long-term investments     (18,589 )     (5,228 )
  Other investing activities     (218,249 )     (152,848 )
  Net cash used in investing activities     (236,838 )     (158,076 )
                 
Cash flows from financing activities:                
  Payments on long-term borrowings     (367 )     (226,368 )
  Other financing activities     6,886       12,485  
  Net cash provided by (used in) financing activities     6,519       (213,883 )
                 
Effect of foreign exchange rate changes on cash     3,673       5,628  
                 
Net decrease in cash and cash equivalents     (117,744 )     (236,250 )
Cash and cash equivalents at beginning of period     574,231       906,551  
Cash and cash equivalents at end of period   $ 456,487     $ 670,301  
                 
                 
Reconciliation of net income including noncontrolling interests to net cash provided by operating activities:                
                 
Net income including noncontrolling interests   $ 79,509     $ 72,960  
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:                
  Depreciation and amortization     62,749       57,743  
  Changes in working capital     (24,144 )     (27,348 )
  Other     (9,212 )     26,726  
Net cash provided by operating activities   $ 108,902     $ 130,081  
                 

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