Exhibit 99.1
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| Conference Call: | | February 9 at 4:30 p.m. EST |
| Dial-in numbers: | | 800/ 779-2934 or 646/ 862-1143 |
| Webcast /Replay URL: | | http://www.seracare.com/html/news.html |
| Telephone Replay: | | available for 4 days at 800/ 633-8284 or 402/ 977-9140 |
| | | Res. #21231887 |
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| News Announcement | | For Immediate Release |
SERACARE Q1 EPS ROSE 67% TO $0.15 ON A 161% SALES INCREASE
- Gross Margin Improved to 45% From 38% a Year Ago -
- Reiterates FY 2005 EPS Guidance of $0.65 to $0.70 -
OCEANSIDE, California, February 9, 2004 — SeraCare Life Sciences, Inc. (Nasdaq: SRLS), an innovative developer and provider of human and animal based diagnostic, therapeutic and research products for the life science industry, today reported financial results for the fiscal 2005 first quarter ended December 31, 2004.
Sales for the fiscal 2005 first quarter increased 161% to $13.0 million compared with $5.0 million in the year-ago period. The increase in sales was principally due to contributions from acquisitions completed in fiscal 2004, as well as from organic growth. SeraCare’s continued focus on higher margin products increased gross profit to $5.9 million (45%) from $1.9 million (38%) in the year-ago period. Selling, general and administrative expenses increased by $1.2 million, but declined as a percentage of sales to 20% from 26% in the year ago period, underscoring efficiencies being created though the integration of the company’s expanded operations. Income from operations rose over five-fold to $3.3 million in the first quarter of fiscal 2005 from $0.6 million in the year-ago period.
Reflecting acquisition-related borrowings, interest expense rose to $0.6 million in the FY 2005 first quarter, compared to $0.02 million a year-ago. Commencing with the FY 2005 first quarter SeraCare’s operating results are now taxed at 38%. Accordingly, its FY 2005 first quarter included income tax expense of $1.0 million, versus an income tax benefit of $0.2 million in the year-ago period.
Despite higher interest expense and income tax provisions, net income for the first quarter of fiscal 2005 more than doubled to $1,680,000, or $0.15 per diluted share, as compared with net income of $767,000, or $0.09 per diluted share, in the first quarter of fiscal 2004. The Company’s weighted average diluted share count increased approximately 24% to 11.0 million in the first quarter of fiscal 2005, compared to 8.9 million in the first quarter of fiscal 2004.
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SeraCare Life Sciences, Inc., 2/9/05 | | page 2 of 4 |
Michael F. Crowley, Jr., President and CEO of SeraCare Life Sciences, said, “In the first full quarter following our acquisition of the BBI Diagnostics and BBI Biotech Research Laboratories assets, SeraCare reaped the benefits of our business model and acquisition strategy by achieving record sales, operating income and net income. Our near term focus remains on integrating our new operations, products, facilities and customer relationships. Through this process, which is proceeding on plan, we aim to extract the greatest possible service and product benefits for our customers, while also driving sales, marketing and cost synergies throughout the organization. We continue to seek acquisitions that will be accretive to earnings and fall within our core competencies.”
SeraCare Reiterates Fiscal 2005 Guidance:
Mr. Crowley added, “SeraCare continues to expect sales of approximately $55-60 million, and diluted earnings per share of $0.65 to $0.70 for the full fiscal 2005 year.”
About SeraCare Life Sciences:
SeraCare Life Sciences, Inc. is a manufacturer and provider of biological products and services for diagnostic, therapeutic, drug discovery, and research organizations worldwide. The Company’s offerings include plasma-based therapeutic products, diagnostic products and reagents, cell culture products, specialty plasmas,in vitro stabilizers, and the Global Repository®, comprised of clinical samples (DNA, RNA, tissue, and serum) for the application of human genetics to target validation for drug discovery. SeraCare is headquartered in Oceanside, CA and maintains facilities in Massachusetts, Maryland and Pennsylvania. For more information please visitwww.seracare.com or divisional websites atwww.bbii.com andwww.getdna.com.
Safe Harbor For Forward Looking Statements:
Certain statements contained in this press release may be deemed to be forward looking statements under federal securities laws, and the Company intends that such forward looking statements be subject to the safe harbor created thereby. Such forward looking statements include (i) the Company’s expectation that it will achieve net sales of $55—$60 million and diluted EPS of $0.65 to $0.70 for the full fiscal 2005 year, and (ii) the Company’s expectation with respect to the synergies described in this press release resulting from its acquisitions of substantially all of the assets of the BBI Diagnostics and BBI Biotechnology Research Laboratories divisions of Boston Biomedica, Inc. The Company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward looking statements. Such factors include, but are not limited to (i) the Company’s ability to integrate the acquired operations into its own, (ii) market demand for plasma and plasma-based products, (iii) the Company’s ability to retain its existing customers and attract new ones, and (iv) the Company’s access to adequate blood and plasma raw materials on terms consistent with its existing contracts. Information on these and additional factors that could affect the Company and its financial results is included in the Company’s report on Form 10-K for the year ended September 30, 2004 filed with the Securities and Exchange Commission (SEC) as well as the Company’s other periodic filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.
CONTACT:
Carol Young, David Collins
Jaffoni & Collins Incorporated
212/835-8500 orsrls@jcir.com
-tables follow-
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SeraCare Life Sciences, Inc., 2/9/05 | | page 3 of 4 |
SeraCare Life Sciences, Inc.
Statements of Income
(In thousands, except per share data)
(unaudited)
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| | | Three months ended
December 31,
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| | | 2004
| | 2003
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Net sales | | $ | 13,000 | | $ | 4,977 | |
Cost of sales | | | 7,113 | | | 3,073 | |
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Gross profit | | | 5,887 | | | 1,904 | |
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Research and development expense | | | 54 | | | — | |
Selling, general and administrative expenses | | | 2,542 | | | 1,314 | |
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Income from operations | | | 3,291 | | | 590 | |
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Interest expense – net | | | 581 | | | 24 | |
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Income before income tax expense (benefit) | | | 2,710 | | | 566 | |
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Income tax expense (benefit) | | | 1,030 | | | (201 | ) |
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Net income | | $ | 1,680 | | $ | 767 | |
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Earnings per common share: | | | | | | | |
Basic | | $ | 0.17 | | $ | 0.10 | |
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Diluted | | $ | 0.15 | | $ | 0.09 | |
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Weighted average shares used in per share calculation: | | | | | | | |
Basic | | | 9,886 | | | 7,729 | |
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Diluted | | | 11,019 | | | 8,907 | |
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-table follows-
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SeraCare Life Sciences, Inc., 2/9/05 | | page 4 of 4 |
SeraCare Life Sciences, Inc.
Balance Sheets
(In thousands, except for share data)
(unaudited)
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| | | December 31,
2004
| | September 30, 2004
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ASSETS | | | | | | |
Current assets: | | | | | | |
Cash and cash equivalents | | $ | 337 | | $ | 1,476 |
Accounts receivable, net of allowance for doubtful accounts of $108 as of Dec. 31, 2004 and Sept. 30, 2004 | | | 11,599 | | | 12,025 |
Inventory | | | 28,377 | | | 26,162 |
Prepaid expenses and other current assets | | | 1,043 | | | 1,269 |
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Total current assets | | | 41,356 | | | 40,932 |
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Property and equipment, net | | | 8,046 | | | 7,423 |
Goodwill | | | 32,605 | | | 33,198 |
Other intangible assets | | | 6,720 | | | 6,404 |
Other assets | | | 1,166 | | | 1,171 |
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Total assets | | $ | 89,893 | | $ | 89,128 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | |
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Current liabilities: | | | | | | |
Accounts payable | | $ | 6,297 | | $ | 7,180 |
Accounts payable to related parties | | | 1,438 | | | 1,700 |
Accrued expenses | | | 4,406 | | | 4,321 |
Current portion long-term debt | | | 3,883 | | | 3,808 |
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Total current liabilities | | | 16,024 | | | 17,009 |
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Long-term debt | | | 22,301 | | | 22,467 |
Long-term notes payable to related parties | | | 3,500 | | | 3,500 |
Other liabilities | | | 395 | | | 388 |
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Total liabilities | | | 42,220 | | | 43,364 |
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Stockholders’ equity: | | | | | | |
Preferred stock, no par value, 25,000,000 shares authorized, no shares issued or outstanding | | | — | | | — |
Common stock, no par value, 25,000,000 shares authorized, 9,914,448 and 9,762,116 shares issued and outstanding as of Dec. 31, 2004 and Sept. 30, 2004, respectively | | | 23,165 | | | 22,936 |
Additional paid-in capital | | | 13,519 | | | 13,519 |
Retained earnings | | | 10,989 | | | 9,309 |
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Total stockholders’ equity | | | 47,673 | | | 45,764 |
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Total liabilities and stockholders’ equity | | $ | 89,893 | | $ | 89,128 |
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