SOURCE: Bio-Rad Laboratories

Bio-Rad Laboratories

August 06, 2015 16:15 ET

Bio-Rad Reports Second-Quarter 2015 Financial Results

HERCULES, CA--(Marketwired - Aug 6, 2015) - Bio-Rad Laboratories, Inc. (NYSE: BIO) (NYSE: BIOb), a global provider of life science research and clinical diagnostic products, today announced financial results for the second quarter ended June 30, 2015.

Second-quarter reported revenues were $506.1 million, down 5.7 percent compared to $536.8 million reported for the second quarter of 2014. On a currency-neutral basis, quarterly revenues increased 4.2 percent compared to the same period last year. Second-quarter gross margin was 55.2 percent compared to 55.4 percent reported during the same quarter in 2014.

Net income for the second quarter of 2015 was $28.4 million, or $0.97 per share on a fully diluted basis, compared to $31.6 million, or $1.09 per share, respectively, during the same period last year.

The year-over-year decrease of net income for the second quarter of 2015 was primarily due to the impact of currency as well as several discrete items including an increase of $2.6 million of bad debt expense, a one-time distributor termination expense of $1.9 million, and a change of $1.7 million of expense reflecting the revaluation of contingent consideration for certain acquisitions. The effective income tax rate for the second quarter of 2015 was 28 percent compared to the tax rate for the second quarter of 2014 of 35 percent. The lower tax rate in 2015 was due to a decrease in tax reserves as a result of the expiration of statutes of limitation.

On a reported basis, revenues for the first half of 2015 were down 6.4 percent to $978.9 million compared to $1.05 billion for the same period in 2014. On a currency-neutral basis, revenues grew 2.9 percent.

Year-to-date net income for 2015 was $46.2 million, or $1.58 per share on a fully diluted basis, compared to $38.3 million, or $1.32 per share, respectively, during the same period in 2014.

Life Science
Life Science segment net sales for the second quarter of 2015 were $170.6 million, essentially flat, when compared to the same period last year. On a currency-neutral basis, Life Science segment net sales increased by 8.6 percent compared to the same quarter last year. Results from the second quarter benefitted from currency-neutral increased sales of the Company's Droplet Digital PCR products, western blotting instruments and reagents, and cell biology products. Currency-neutral sales increased primarily in the U.S., Europe, and China during the second quarter of 2015 and were partially offset by slowness in Eastern Europe and Asia Pacific. In April, Bio-Rad introduced the S3e Cell Sorter (488/640 nm), the latest addition to the Company's series of S3e Cell Sorters. The new Cell Sorter incorporates the fluorescence wavelengths commonly used by immunologists. Also during the quarter Bio-Rad released a new product line of PrecisonAb Antibodies that are validated specifically for use in western blotting and offer improved sensitivity, specificity, and reliability.

Clinical Diagnostics
Reported net sales for the Clinical Diagnostics segment in the second quarter of 2015 were $332.1 million, a decrease of 8.5 percent compared to the same quarter last year. On a currency-neutral basis, sales increased 2.2 percent compared to the same period last year. The Clinical Diagnostics segment sales performance on a currency-neutral basis reflected growth of diabetes, immunology, and quality controls products. Sales growth in North America, Latin America, and Asia Pacific was offset by European markets, which are still experiencing consolidation and pricing pressures. During the quarter, 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. The assay offers an automated method for the quantitative measurement of total 25-hydroxyvitamin D in human serum. 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.

Management will discuss these results in a conference call at 2 PM Pacific Daylight Time (5 PM Eastern Daylight Time) August 6, 2015. Interested parties may access the call at 877-311-4349 within the U.S. or 720-634-9933 outside the U.S., passcode: 78772878. You may also listen to the conference call live via a webcast that is available on 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: BIOb) 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 7,600 people worldwide and had revenues exceeding $2.1 billion in 2014. 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, our ability to compete effectively, product quality and liability issues, supply chain issues, reductions in government funding or capital spending of our customers, international legal and regulatory risks, foreign currency exchange fluctuations, difficulties in implementing our global enterprise resource planning system, 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 Operation" 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 June 30, 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
June 30,
    Six Months Ended
June 30,
 
    2015     2014     2015     2014  
Net sales   $ 506,102     $ 536,832     $ 978,923     $ 1,046,176  
  Cost of goods sold     226,505       239,590       429,220       473,645  
Gross profit     279,597       297,242       549,703       572,531  
                                 
  Selling, general and administrative expense     192,845       195,838       381,400       398,113  
  Research and development expense     46,547       55,717       93,749       108,260  
Income from operations     40,205       45,687       74,554       66,158  
                                 
  Interest expense     4,834       5,564       9,836       9,421  
  Foreign currency exchange losses (gains), net     2,938       (286 )     6,744       2,451  
  Other (income) expense, net     (7,107 )     (8,388 )     (8,260 )     (9,049 )
Income before income taxes     39,540       48,797       66,234       63,335  
                                 
  Provision for income taxes     (11,117 )     (17,166 )     (19,993 )     (25,036 )
                                 
Net income   $ 28,423     $ 31,631     $ 46,241     $ 38,299  
                                 
Basic earnings per share:                                
  Net income per basic share   $ 0.98     $ 1.10     $ 1.59     $ 1.33  
                                 
  Weighted average common shares - basic     29,136       28,826       29,114       28,809  
                                 
Diluted earnings per share:                                
  Net income per diluted share   $ 0.97     $ 1.09     $ 1.58     $ 1.32  
                                 
  Weighted average common shares - diluted     29,381       29,092       29,338       29,076  
           
 
Bio-Rad Laboratories, Inc.
Condensed Consolidated Balance Sheets
 
(In thousands)
         
    June 30,   December 31,
    2015   2014
    (UNAUDITED)    
Current assets:            
  Cash and cash equivalents   $ 450,133   $ 413,251
  Short-term investments     277,513     284,384
  Accounts receivable, net     354,161     377,640
  Inventories, net     500,975     470,997
  Other current assets     159,146     170,095
    Total current assets     1,741,928     1,716,367
             
Property, plant and equipment, net     439,644     428,836
Goodwill, net     514,078     500,441
Purchased intangibles, net     237,706     254,228
Other investments     541,732     389,309
Other assets     50,255     52,097
    Total assets   $ 3,525,343   $ 3,341,278
             
             
Current liabilities:            
  Accounts payable, accrued payroll and employee benefits   $ 239,847   $ 282,034
  Current maturities of long-term debt     268     265
  Income and other taxes payable     25,238     35,165
  Other current liabilities     138,541     129,297
    Total current liabilities     403,894     446,761
             
Long-term debt, net of current maturities     435,660     435,710
Other long-term liabilities     326,892     273,652
    Total liabilities     1,166,446     1,156,123
             
    Total stockholders' equity     2,358,897     2,185,155
    Total liabilities and stockholders' equity   $ 3,525,343   $ 3,341,278
             
   
Bio-Rad Laboratories, Inc.  
Condensed Consolidated Statements of Cash Flows  
   
(In thousands)  
(UNAUDITED)  
             
    Six Months Ended June 30,  
    2015     2014  
                 
Cash flows from operating activities:                
  Cash received from customers   $ 971,616     $ 1,087,487  
  Cash paid to suppliers and employees     (898,757 )     (925,534 )
  Interest paid, net     (9,071 )     (10,912 )
  Income tax payments, net     (6,269 )     (17,059 )
  Other operating activities     10,460       8,460  
  Net cash provided by operating activities     67,979       142,442  
                 
Cash flows from investing activities:                
  Payments for acquisitions and long-term investments     (2,589 )     (42,010 )
  Other investing activities     (53,267 )     (52,546 )
  Net cash used in investing activities     (55,856 )     (94,556 )
                 
Cash flows from financing activities:                
  Payments on long-term borrowings     (131 )     (118 )
  Other financing activities     2,861       6,416  
  Net cash provided by financing activities     2,730       6,298  
                 
Effect of foreign exchange rate changes on cash     22,029       (1,065 )
                 
Net increase in cash and cash equivalents     36,882       53,119  
Cash and cash equivalents at beginning of period     413,251       331,551  
Cash and cash equivalents at end of period   $ 450,133     $ 384,670  
                 
                 
Reconciliation of net income to net cash provided by operating activities:                
Net income   $ 46,241     $ 38,299  
Adjustments to reconcile net income to net cash provided by operating activities:                
    Depreciation and amortization     64,409       73,007  
    Changes in working capital     (44,196 )     30,663  
    Other     1,525       473  
Net cash provided by operating activities   $ 67,979     $ 142,442  
                 

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