Exhibit 99.1 FOR IMMEDIATE RELEASE Bio-Rad Reports First Quarter Financial Results HERCULES, CA – May 5, 2005 – Bio-Rad Laboratories, Inc. (AMEX: BIO and BIOb), a multinational manufacturer and distributor of life science research products and clinical diagnostics, announced financial results today for the first quarter ended March 31, 2005. First-quarter net sales from continuing operations were $299.2 million, up 13.9 percent compared to the $262.7 million reported for the first quarter of 2004. On a currency-neutral basis, revenues increased 10.2 percent compared to the first quarter of 2004. This sales growth was the result of gains across a broad array of product areas. Income from continuing operations was $29.5 million compared to $22.6 million in the first quarter last year. Net income for the quarter was $33.5 million. This includes a $4 million gain recorded in discontinued operations related to the sale of the confocal microscopy business. This gain is a result of the resolution of a lease commitment in the UK. First-Quarter Highlights - Fully diluted earnings were $1.26 per share, compared to $0.83 reported for the first quarter of 2004. - Life Science segment net sales from continuing operations for the quarter were $144.1 million, up 18.5 percent from the $121.6 million reported last March. On a currency-neutral basis, sales in this area increased by 14.9 percent. - The Clinical Diagnostics segment reported consistent growth in its core businesses with total net sales of $151.9 million, a 9.4 percent increase over the comparable period last year. On a currency-neutral basis, segment sales increased 5.5 percent over the first quarter of 2004. - The settlement of the UK lease commitment along with certain other one-time international tax benefits caused the Company’s effective tax rate to fall for the quarter to 22.5%. - In March, the Japanese government overturned an injunction against Bio-Rad, enabling the company to resume sales of its real time PCR instrumentation in that country. Positive sales effects are expected to materialize in the second quarter of 2005. - Throughout the first quarter, the company’s new ExperionTM Electrophoresis System was well received by customers worldwide. For the Life Science segment, growth in the first quarter was the result of a combination of factors including substantial sales of amplification reagents, process chromatography media and the Bio-PlexTM protein assay system. This growth was somewhat tempered, however, by erosion in the average selling price of BSE tests and competition in the real time PCR instrumentation business. (more) Bio-Rad First Quarter |
Overall, the Clinical Diagnostics segment experienced considerable growth due to increased worldwide sales of its quality control products, continued success in the U.S. with its Aspergillus test, as well as consistent demand in the U.S., Japanese and Asian markets for its blood virus products including the EvolisTM System. “While we are still somewhat cautious about 2005, first quarter financial results are a healthy start for the year,” said President and Chief Executive Officer Norman Schwartz. “Additionally, the integration of MJ Research is proceeding as planned. Full assimilation of the sales efforts were completed during the first quarter and we have begun to experience some of the operational efficiencies. During the next several quarters, we hope to realize the full potential of the combined businesses.” Management will discuss these results in a conference call scheduled for 2:00 p.m. PT (5:00 p.m. ET) today, May 5, 2005. Interested parties can access the call by dialing (800) 591-6942 (in the U.S.), or (617) 614-4909 (international), access number 51782785. The live web cast can 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 59115610 for seven days following the call and the web cast can be accessed at http://www.bio-rad.com" for 30 days. Bio-Rad Laboratories, Inc. (http://www.bio-rad.com") is a multinational manufacturer and distributor of life science research products and clinical diagnostics. It is based in Hercules, California, and serves more than 70,000 research and industry customers worldwide through a network of more than 30 wholly owned subsidiary offices. Various statements made within this press release may constitute “forward-looking statements” for purposes of the Securities and Exchange Commission’s “safe harbor” provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. The forward-looking statements contained herein involve risks and uncertainties that could cause results to differ materially from the Company’s expectations. For more information, contact: Ron Hutton, Treasurer Bio-Rad Laboratories, Inc. Phone: (510) 724-7000 |
Bio-Rad Laboratories, Inc. First Quarter 2005 Consolidated Statements of Income (in thousands, except per share data) (UNAUDITED) | ||||
Three Months Ended March 31, | ||||
2005 | 2004 | |||
Net sales | $ | 299,171 | $ | 262,749 |
Cost of goods sold | 132,765 | 113,485 | ||
Gross profit | 166,406 | 149,264 | ||
Selling, general and administrative expense | 99,498 | 87,057 | ||
Product research and development expense | 26,823 | 24,333 | ||
Purchased in-process research and development expense | -- | 900 | ||
Interest expense | 8,117 | 5,050 | ||
Foreign exchange (gains) losses, net | (277) | 202 | ||
Other (income) expense, net | (5,838) | 216 | ||
Income from continuing operations before taxes | 38,083 | 31,506 | ||
Provision for income taxes | 8,563 | 8,886 | ||
Income from continuing operations | 29,520 | 22,620 | ||
Loss from discontinued operations | ||||
Discontinued operations, net of tax | -- | (642) | ||
Gain on divestiture, net of tax | 3,974 | -- | ||
Net income | $ | 33,494 | $ | 21,978 |
Basic earnings per share: | ||||
Continuing operations | $ | 1.14 | $ | 0.88 |
Discontinued operations | 0.15 | (0.02) | ||
Net income | $ | 1.29 | $ | 0.86 |
Weighted average common shares | 25,909 | 25,624 | ||
Diluted earnings per share: | ||||
Continuing operations | $ | 1.11 | $ | 0.85 |
Discontinued operations | 0.15 | (0.02) | ||
Net income | $ | 1.26 | $ | 0.83 |
Weighted average commonshares | 26,555 | 26,444 | ||
Certain items have been reclassified to conform to the current year presentation. |
BIO-RAD LABORATORIES, INC
Condensed Consolidated Balance Sheets
(In thousands, except share data)
(Unaudited)
March 31, 2005 | December 31, 2004 | |||
Current Assets: | ||||
Cash and cash equivalents | $ | 317,898 | $ | 195,734 |
Short-term investments | 65,907 | 165,899 | ||
Accounts receivable, net | 250,968 | 261,243 | ||
Inventories, net | 208,920 | 205,512 | ||
Prepaid expenses, taxes and other current assets | 77,362 | 80,072 | ||
Total current assets | 921,055 | 908,460 | ||
Net property, plant and equipment | 197,303 | 202,324 | ||
Goodwill, net | 113,276 | 113,276 | ||
Other assets | 167,280 | 167,942 | ||
Total assets | $ | 1,398,914 | $ | 1,392,002 |
Current liabilities: | ||||
Notes payable and current maturities of long-term debt | $ | 9,658 | $ | 9,457 |
Accounts payable | 67,145 | 71,194 | ||
Accrued payroll and employee benefits | 67,615 | 79,061 | ||
Sales, income and other taxes payable | 15,369 | 15,835 | ||
Other current liabilities | 138,693 | 139,828 | ||
Total current liabilities | 298,480 | 315,375 | ||
Long-term debt, net of current maturities | 425,807 | 425,979 | ||
Deferred tax liabilities | 26,588 | 24,772 | ||
Other long-term liabilities | 23,753 | 28,988 | ||
Stockholders’ equity | 624,286 | 596,888 | ||
Total liabilities and stockholders’ equity | $ | 1,398,914 | $ | 1,392,002 |
Certain items have been reclassified to conform to the current year presentation. |
BIO-RAD LABORATORIES, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Three Months Ended March 31, | ||
2005 | 2004 | |
Cash flows from operating activities: | ||
Cash received from customers | $ 296,648 | $ 266,784 |
Cash paid to suppliers and employees | (259,242) | (221,836) |
Interest paid | (8,973) | (9,360) |
Income tax payments | (6,532) | (9.682) |
Miscellaneous receipts | 4,309 | 2,211 |
Discontinued operations | (1,327) | (811) |
Net cash provided by operating activities | 24,883 | 27,306 |
Cash flows from investing activities: | ||
Capital expenditures, net | (9,774) | (13,417) |
Other investing activities (principally short-term investments) | 103,659 | (37,405) |
Net cash used in investing activities | 93,885 | (50,822) |
Cash flows from financing activities: | ||
Payments on long-term debt | (121) | (117) |
Other financial activities | 2,916 | 93 |
Net cash provided by (used in) financial activities | 2,795 | (24) |
Effect of exchange rate changes on cash | 601 | 293 |
Net increase(decrease) in cash and cash equivalents | 122,164 | (23,247) |
Cash and cash equivalents at beginning of period | 195,734 | 65,395 |
Cash and cash equivalents at end of period | 317,898 | 42,148 |
Reconciliation of income from continuing operations to net cash provided by operating activities: | ||
Income from continuing operations | $ 29,520 | $ 22, 620 |
Adjustments to reconcile net income to net cash provided by | ||
operating activities (net of effects of acquisitions): | ||
Depreciation and amortization | 15,171 | 10,500 |
Changes in working capital | (6,905) | (2,014) |
Other | (16,877) | (3,158) |
Discontinued operations | 3,974 | (642) |
Net cash provided by operating activities | $ 24,883 | $ 27,306 |
Certain items have been reclassified to conform to the current year presentation |