SOURCE: Bio-Rad Laboratories

August 02, 2011 16:15 ET

Bio-Rad Reports Second-Quarter Revenue Growth of 11.5 Percent

HERCULES, CA--(Marketwire - Aug 2, 2011) - 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, 2011.

Second-quarter reported revenues were $521.7 million, up 11.5% compared to $467.7 million reported for the second quarter of 2010. On a currency-neutral basis, quarterly revenues increased 4.2% compared to the same period last year. This improvement is the result of organic growth across Bio-Rad's primary segments, Life Science and Clinical Diagnostics. Second-quarter gross margin was 56.2% compared to 57.4% reported during the same quarter last year.

Net income attributable to Bio-Rad for the second quarter of 2011 was $40.0 million compared to $38.0 million reported for the second quarter of 2010. Second-quarter earnings were $1.41 per share on a fully diluted basis versus $1.35 per share reported for the same period last year.

Year-to-date revenues grew by 9.2% to $1.0 billion compared to $921.9 million for the first two quarters of 2010. Adjusting for the impact of currency, revenue growth was 4.5%.

Year-to-date net income attributable to Bio-Rad was $73.1 million, or $2.57 per share on a fully diluted basis, compared to $72.8 million, or $2.59 per share, respectively, during the same period in 2010.

"The first half of the year reflects continued strength across many of our product lines," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "While the global economic outlook suggests modest growth, we continue to invest in the future and our outlook remains positive for the remainder of the year."

Life Science
Life Science segment net sales for the second quarter were $169.9 million, up 12.8% compared to the same period last year. On a currency-neutral basis, Life Science segment net sales increased by 6.7% compared to the second quarter of 2010. The electrophoresis and imaging product lines performed well during the quarter, supported by several recent product launches including the Trans-Blot® Turbo transfer system and the Gel Doc EZ imaging platform. During the quarter, the Life Science segment also benefitted from sales of the TGX precast electrophoresis gel product line and the TC10 automated cell counter. Deliveries of process chromatography media were also strong.

Clinical Diagnostics
Reported net sales for the Clinical Diagnostics segment in the second quarter rose to $348.0 million, up 10.8% compared to the same quarter last year. On a currency-neutral basis, net sales were up 2.8%. These gains were the result of growth across many product lines, most notably from quality controls and diabetes monitoring. During the second quarter, Bio-Rad announced the European and Canadian launch of its BioPlex® 2200 Antiphospholipid Syndrome IgG, IgM, and IgA kits for use on its BioPlex® 2200 system. Antiphospholipid Syndrome is an autoimmune disease in which the body's immune system mistakenly produces antibodies to certain blood proteins causing thrombosis (clotting) within arteries, veins, and small blood vessels.

Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) August 2, 2011. Interested parties may access the call by dialing 866-277-1181 (in the U.S.) or 617-597-5358 (international), access number 35139244.

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 87791245, 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 6,800 people globally and had revenues exceeding $1.9 billion in 2010. 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,
2011 2010 2011 2010
Net sales $ 521,656 $ 467,662 $ 1,006,777 $ 921,896
Cost of goods sold 228,520 199,354 436,030 396,461
Gross profit 293,136 268,308 570,747 525,435
Selling, general and administrative expense 176,740 156,270 344,503 309,887
Research and development expense 48,210 43,862 90,940 84,125
Income from operations 68,186 68,176 135,304 131,423
Interest expense 12,041 14,325 28,807 28,769
Foreign exchange losses, net 2,744 1,014 5,786 797
Other income, net (4,418 ) (2,517 ) (5,369 ) (3,316 )
Income before income taxes 57,819 55,354 106,080 105,173
Provision for income taxes (17,797 ) (16,833 ) (33,120 ) (31,260 )
Net income including noncontrolling interests 40,022 38,521 72,960 73,913
Net loss (income) attributable to noncontrolling interests 26 (564 ) 127 (1,095 )
Net income attributable to Bio-Rad $ 40,048 $ 37,957 $ 73,087 $ 72,818
Basic earnings per share:
Net income per share basic attributable to Bio-Rad $ 1.43 $ 1.37 $ 2.61 $ 2.64
Weighted average common shares - basic 28,014 27,606 27,959 27,575
Diluted earnings per share:
Net income per share diluted attributable to Bio-Rad $ 1.41 $ 1.35 $ 2.57 $ 2.59
Weighted average common shares - diluted 28,495 28,125 28,443 28,097
Bio-Rad Laboratories, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
June 30, December 31,
2011 2010
(UNAUDITED)
Current assets:
Cash and cash equivalents $ 670,301 $ 906,551
Restricted cash - 6,422
Short-term investments 215,947 118,636
Accounts receivable, net 394,913 387,996
Inventories 449,337 398,100
Other current assets 159,158 157,641
Total current assets 1,889,656 1,975,346
Property, plant and equipment, net 348,439 333,617
Goodwill, net 393,125 363,981
Purchased intangibles, net 201,425 203,881
Other assets 211,600 185,939
Total assets $ 3,044,245 $ 3,062,764
Current liabilities:
Accounts payable $ 120,514 $ 113,440
Accrued payroll and employee benefits 122,254 131,381
Notes payable and current maturities of long-term debt 1,363 233,181
Income and other taxes payable 49,373 50,935
Other current liabilities 149,340 137,690
Total current liabilities 442,844 666,627
Long-term debt, net of current maturities 731,331 731,100
Other long-term liabilities 144,155 124,518
Total liabilities 1,318,330 1,522,245
Bio-Rad stockholders' equity 1,725,834 1,536,696
Noncontrolling interests 81 3,823
Total stockholders' equity 1,725,915 1,540,519
Total liabilities and stockholders' equity $ 3,044,245 $ 3,062,764
Bio-Rad Laboratories, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(UNAUDITED)
Six Months Ended June 30,
2011 2010
Cash flows from operating activities:
Cash received from customers $ 1,020,282 $ 891,658
Cash paid to suppliers and employees (842,830 ) (779,464 )
Interest paid (33,296 ) (27,861 )
Income tax payments (18,709 ) (28,169 )
Other operating activities 4,634 2,491
Net cash provided by operating activities 130,081 58,655
Cash flows from investing activities:
Payments for acquisitions and long-term investments (5,228 ) (67,345 )
Other investing activities (152,848 ) (35,804 )
Net cash used in investing activities (158,076 ) (103,149 )
Cash flows from financing activities:
Long-term borrowings - 2,000
Payments on long-term borrowings (226,368 ) (2,940 )
Other financing activities 12,485 5,131
Net cash (used in) provided by financing activities (213,883 ) 4,191
Effect of foreign exchange rate changes on cash 5,628 4,588
Net decrease in cash and cash equivalents (236,250 ) (35,715 )
Cash and cash equivalents at beginning of period 906,551 649,938
Cash and cash equivalents at end of period $ 670,301 $ 614,223
Reconciliation of net income including noncontrolling interests
to net cash provided by operating activities:
Net income including noncontrolling interests $ 72,960 $ 73,913
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:
Depreciation and amortization 57,743 53,633
Changes in working capital (27,348 ) (53,028 )
Other 26,726 (15,863 )
Net cash provided by operating activities $ 130,081 $ 58,655

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