SOURCE: Bio-Rad Laboratories

August 04, 2009 16:30 ET

Bio-Rad Reports Second-Quarter Currency-Neutral Revenue Growth of 3.5 Percent

HERCULES, CA--(Marketwire - August 4, 2009) - 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, 2009.

Second-quarter reported revenues were $427.2 million, down 5.6% compared to $452.4 million reported for the second quarter of 2008. On a currency-neutral basis, quarterly revenues increased 3.5% compared to the same period last year. Net income attributable to Bio-Rad for the second quarter was $38.0 million, or $1.37 per share on a fully diluted basis, compared to $43.4 million or $1.57 per share, respectively, during the same period last year. Reflected in operating income are $5.5 million of amortization and purchase accounting adjustments for the second quarter of 2009 associated with the 2007 DiaMed acquisition. Second-quarter gross margin increased to 56.6% compared to 54.9% during the same quarter last year.

Year-to-date revenues were $828.1 million, down 5.3% compared to the first two quarters in 2008. Adjusting for the impact of currency effects, revenue growth was 3.4%. Year-to-date net income attributable to Bio-Rad for 2009 was $68.2 million, or $2.47 per share on a fully diluted basis, compared to $69.9 million, or $2.54 per share, respectively, during the same period in 2008.

"We are encouraged by the strength we continue to see in many of our core markets despite currency headwinds and a weakened global economy, which have tempered our reported performance so far this year," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "As the year progresses, we will remain focused on opportunities to improve our operational efficiencies as well as expand our business."

Life Science

The Life Science segment net sales for the quarter were $149.7 million, down 7.4% or 0.4% on a currency-neutral basis, compared to the same period last year. Growth in the Life Science segment was negatively impacted by slowed research markets in both the U.S. and Europe, which reflect constraint and delays in spending by academic and biopharmaceutical customers. Performance during the quarter benefited from strong sales in protein function and gene expression products, in particular polymerase chain reaction (PCR) instruments and reagents. SsoFast™ EvaGreen® Supermix, the first member of Bio-Rad's next-generation family of high-performance, real-time PCR reagents that was launched in April continues to gain customer acceptance.

Clinical Diagnostics

The Clinical Diagnostics segment reported net sales of $274.3 million for the quarter, down 4.6% compared to the second quarter in 2008. On a currency-neutral basis, sales for the segment increased 5.8%. This performance is the result of continued growth across all product lines, most notably blood virus testing products, microbiology, quality control products, and the Company's BioPlex® 2200 system. Shipments of blood virus test systems were particularly strong during the quarter across most regions. In June, the Company announced 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.

Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) August 4, 2009. Interested parties may access the call by dialing 866-270-6057 (in the U.S.) or 617-213-8891 (international), access number 69361175.

The live webcast may also 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 62221247 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 6,500 people globally and had revenues exceeding $1.7 billion in 2008. 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     Six Months Ended
                                       June 30,             June 30,
                                --------------------  --------------------
                                  2009       2008       2009       2008
                                ---------  ---------  ---------  ---------
Net sales                       $ 427,183  $ 452,361  $ 828,116  $ 874,558
Cost of goods sold                185,221    203,940    357,253    399,254
                                ---------  ---------  ---------  ---------
Gross profit                      241,962    248,421    470,863    475,304

Selling, general and
 administrative expense           143,670    146,634    283,983    286,289
Research and development
 expense                           42,407     42,079     79,558     79,568
                                ---------  ---------  ---------  ---------
Income from operations             55,885     59,708    107,322    109,447

Interest expense                   10,367      7,991     18,174     15,948
Foreign exchange (gains)
 losses, net                        2,551       (288)     1,777      2,305
Other (income) expense, net        (6,307)    (3,951)    (5,148)    (4,144)
                                ---------  ---------  ---------  ---------
Income before taxes                49,274     55,956     92,519     95,338

Provision for income taxes         (9,974)   (10,632)   (21,176)   (21,455)
                                ---------  ---------  ---------  ---------
Net income including
 noncontrolling interests          39,300     45,324     71,343     73,883
  Less: Net income attributable
         to noncontrolling
         interests                 (1,331)    (1,926)    (3,109)    (3,990)
                                ---------  ---------  ---------  ---------

Net income attributable to
 Bio-Rad                        $  37,969  $  43,398  $  68,234  $  69,893
                                =========  =========  =========  =========

Basic earnings per share:
    Net income attributable to
     Bio-Rad                    $    1.39  $    1.61  $    2.50  $    2.59
                                =========  =========  =========  =========

    Weighted average common
     shares                        27,370     27,038     27,346     26,997
                                =========  =========  =========  =========

Diluted earnings per share:
    Net income attributable to
     Bio-Rad                    $    1.37  $    1.57  $    2.47  $    2.54
                                =========  =========  =========  =========

    Weighted average common
     shares                        27,742     27,569     27,681     27,553
                                =========  =========  =========  =========




                        Bio-Rad Laboratories, Inc.
                  Condensed Consolidated Balance Sheets

                              (In thousands)
                                (UNAUDITED)


                                                  June 30,   December 31,
                                                    2009         2008
                                                ------------ --------------
Current assets:
  Cash and cash equivalents                     $    533,474 $      204,524
  Short-term investments                              29,885         38,950
  Accounts receivable, net                           335,828        339,653
  Inventories, net                                   377,594        375,616
  Other current assets                               121,054        135,198
                                                ------------ --------------
    Total current assets                           1,397,835      1,093,941

Net property, plant and equipment                    302,836        300,732
Goodwill                                             318,264        321,820
Purchased intangibles, net                           213,933        228,590
Other assets                                         111,589         92,181
                                                ------------ --------------
    Total assets                                $  2,344,457 $    2,037,264
                                                ============ ==============


Current liabilities:
  Notes payable and current maturities of
   long-term debt                               $      5,874 $        9,578
  Accounts payable                                    90,850        117,982
  Accrued payroll and employee benefits              104,267        119,420
  Sales, income and other taxes payable               46,486         33,731
  Other current liabilities                          136,132        137,323
                                                ------------ --------------
    Total current liabilities                        383,609        418,034

Long-term debt, net of current maturities            738,454        445,979
Other long-term liabilities                           94,753        102,611
                                                ------------ --------------
    Total liabilities                              1,216,816        966,624

Bio-Rad stockholders' equity                       1,110,181      1,041,139
Noncontrolling interests                              17,460         29,501
                                                ------------ --------------
    Total stockholders' equity                     1,127,641      1,070,640
                                                ------------ --------------
    Total liabilities and stockholders' equity  $  2,344,457 $    2,037,264
                                                ============ ==============




                        Bio-Rad Laboratories, Inc.
              Condensed Consolidated Statements of Cash Flows

                              (In thousands)
                                (UNAUDITED)


                                                        Six Months Ended
                                                            June 30,
                                                        2009       2008
                                                      ---------  ---------

Cash flows from operating activities:
    Cash received from customers                      $ 831,208  $ 877,910
    Cash paid to suppliers and employees               (698,527)  (781,755)
    Interest paid                                       (15,340)   (15,448)
    Income tax payments                                 (13,220)   (16,848)
    Other operating activities                            7,742      3,052
                                                      ---------  ---------
    Net cash provided by operating activities           111,863     66,911

Cash flows from investing activities:
    Payments for acquisitions and long-term
     investments                                        (33,805)   (17,110)
    Other investing activities                          (36,965)   (35,043)
                                                      ---------  ---------
    Net cash used in investing activities               (70,770)   (52,153)

Cash flows from financing activities:
    Payments on long-term debt                           (3,585)    (4,414)
    Long-term borrowings                                294,750          -
    Other financing activities                              (60)     8,090
                                                      ---------  ---------
    Net cash provided by financing activities           291,105      3,676

Effect of exchange rate changes on cash                  (3,248)     3,445
                                                      ---------  ---------

Net increase in cash and cash equivalents               328,950     21,879
Cash and cash equivalents at beginning of period        204,524    161,764
                                                      ---------  ---------
Cash and cash equivalents at end of period            $ 533,474  $ 183,643
                                                      =========  =========


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

Net income including noncontrolling interests         $  71,343  $  73,883
Adjustments to reconcile net income including
 noncontrolling interests to net cash provided by
 operating activities:
    Depreciation and amortization                        47,765     49,323
    Changes in working capital                           (7,490)   (61,270)
    Other                                                   245      4,975
                                                      ---------  ---------
Net cash provided by operating activities             $ 111,863  $  66,911
                                                      =========  =========

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