Exhibit 99.1
FOR IMMEDIATE RELEASE
Bio-Rad Reports Second Quarter Financial Results
HERCULES, CA – August 4, 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 second quarter ended June 30, 2005. Second-quarter net sales from continuing operations were $291.3 million, up 11.8 percent compared to the $260.5 million reported for the second quarter of 2004, while sales were up by 8.5 percent on a currency neutral basis for the same period. This increase was the result of strong sales in the areas of diabetes monitoring, blood virus screening, quality controls, protein expression analysis and amplification products (due in part to the acquisition of MJ Research). While overall profit margins were down slightly due to the declining average selling price of BSE tests and real time PCR instrumentation, Bio-Rad continues to retain significant market share of the BSE business worldw ide and has now resumed the sale of real time PCR products in Japan, following a ruling by the Japanese patent authority invalidating Applera’s patent. Second quarter income from continuing operations was $18.4 million, or $0.71 per share, down 9.3 percent from the same period last year, due to the company’s continuing investment in systems and infrastructure and increased interest expense associated with the sale of bonds in December 2004.
Net sales for the first half of the year increased by 12.8 percent to $590.5 million compared to the $523.3 million reported in the same period of 2004. Income from continuing operations increased by 11.7 percent to $47.9 million, or $1.85 per share, compared to $42.9 million, or $1.67 per share, for the first six months of 2004. Year-over-year net sales for the Life Science segment increased by 17.7 percent to $277.2 million, compared to the $235.5 million reported June 30, 2004; Clinical Diagnostics net sales also increased to $307.2, up 8.4 percent from the $283.3 million reported for the first six months of 2004.
Second-Quarter Highlights
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Net sales for the quarter increased by 11.8 percent to $291.3 million compared to $260.5 million reported in the second quarter of 2004.
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Life Science segment net sales for the quarter were $133.1 million, up 16.9 percent over the same period last year, which includes a 3.2 percent increase due to currency effects. Sales of the Bio-Plex platform and protein expression analysis reagents used with this system continue to grow and sales of the new ExperionTM automated electrophoresis system are also increasing significantly.
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The Life Science segment introduced several new products during the second quarter which include the EXQuest proteomics robotics platform used in protein expression research to harvest samples from two-dimensional electrophoresis gels, and two real time amplification platforms, the iQ5 and the MiniOpticon, which is among the first generation of new products to come out of the acquisition of MJ Research. Integration of MJ continues to proceed as planned and Bio-Rad now operates direct selling and support channels in most regions.
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Another significant event during the quarter was the official USDA confirmation of the first reported indigenous case of BSE in the United States in June. These results corroborate the initial findings of two
Bio-Rad BSE screening tests conducted on the suspect cow last November. The company’s tests have been used to screen more than 400,000 cattle in the USDA’s enhanced surveillance program.
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Clinical Diagnostics segment net sales for the quarter were $155.2 million, an increase of 7.5 percent compared to the $144.4 million reported in the second quarter of 2004. A little less than half of this gain is the result of currency effects. Strong sales of blood virus screening products in the U.S. transfusion sector and expanding worldwide demand for the company’s quality control products were the primary contributors to increased quarterly net sales. Other gains in the Clinical Diagnostics segment include increased sales of newborn screening products in Northern Europe and strong demand for the company’s diabetes monitoring products in Asia Pacific.
“At the halfway mark of 2005, it appears that the year is shaping up to be another one of progress on a number of fronts. Sales in many regions are meeting or exceeding expectations, new products are finding acceptance around the world and the outlook for the remainder of the year is positive,” said President and Chief Executive Officer Norman Schwartz.
Management will discuss these results in a conference call scheduled for 2:00 p.m. PT (5:00 p.m. ET) today, August 4, 2005. Interested parties can access the call by dialing 866-271-6130 (in the U.S.), or 617-213-8894 (international), access number 76386582. 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 57744653 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 thousands of 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:
Christine Tsingos, Chief Financial Officer, or
Ron Hutton, Treasurer
Bio-Rad Laboratories, Inc.
Phone: (510) 724-7000
E-mail: investor_relations@bio-rad.com
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BIO-RAD LABORATORIES, INC. | |||||||
Second Quarter 2005 | |||||||
Condensed Consolidated Statements of Income | |||||||
(In thousands, except per share data) | |||||||
(Unaudited) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2005 | 2004 | 2005 | 2004 | ||||
Net sales | $ 291,302 | $ 260,546 | $ 590,473 | $ 523,295 | |||
Cost of good sold | 130,659 | 110,885 | 263,424 | 224,370 | |||
Gross profit | 160,643 | 149,661 | 327,049 | 298,925 | |||
Selling, general and administrative expense | 104,222 | 90,199 | 203,720 | 177,256 | |||
Product research and development expense | 28,499 | 25,545 | 55,322 | 49,878 | |||
Purchased in-process research and development expense | -- | -- | -- | 900 | |||
Interest expense | 8,044 | 4,919 | 16,161 | 9,969 | |||
Foreign exchange (gains) losses, net | (922) | 545 | (1,199) | 747 | |||
Other (income) expense, net | (4,689) | (866) | (10,527) | (650) | |||
Income from continuing operations before taxes | 25,489 | 29,319 | 63,572 | 60,825 | |||
Provision for income taxes | 7,101 | 9,048 | 15,664 | 17,934 | |||
Income from continuing operations | 18,388 | 20,271 | 47,908 | 42,891 | |||
Discontinued operations | |||||||
Discontinued operations (net of tax) | -- | (845) | -- | (1,487) | |||
Gain on divestiture (net of tax) | -- | 3,437 | 3,974 | 3,437 | |||
Total discontinued operations | -- | 2,592 | 3,974 | 1,950 | |||
Net income | $ 18,388 | $ 22,863 | $ 51,882 | $ 44,841 | |||
Basic earnings per share: | |||||||
Continuing operations | $ 0.71 | $ 0.79 | $ 1.85 | $ 1.67 | |||
Discontinued operations | -- | 0.10 | 0.15 | 0.08 | |||
Net income | $ 0.71 | $ 0.89 | $ 2.00 | $ 1.75 | |||
Weighted average common shares | 26,020 | 25,699 | 25,965 | 25,662 | |||
Diluted earnings per share: | |||||||
Continuing operations | $ 0.69 | $ 0.76 | $ 1.80 | $ 1.62 | |||
Discontinued operations | -- | 0.10 | 0.15 | 0.07 | |||
Net income | $ 0.69 | $ 0.86 | $ 1.95 | $ 1.69 | |||
Weighted average common shares | 26,610 | 26,504 | 26,583 | 26,474 | |||
BIO-RAD LABORATORIES, INC | ||||
Condensed Consolidated Balance Sheets | ||||
(In thousands) | ||||
(Unaudited) | ||||
June 30, 2005 | December 31, 2004 | |||
Current Assets: | ||||
Cash and cash equivalents | $ 252,132 | $ 195,734 | ||
Restricted cash | 35,565 | -- | ||
Short-term investments | 91,252 | 165,899 | ||
Accounts receivable, net | 243,387 | 261,243 | ||
Inventories, net | 211,526 | 205,512 | ||
Prepaid expenses, taxes and other current assets | 83,496 | 80,072 | ||
Total current assets | 917,358 | 908,460 | ||
Net property, plant and equipment | 189,802 | 202,324 | ||
Goodwill | 113,276 | 113,276 | ||
Purchased intangibles, net | 53,260 | 58,638 | ||
Other assets | 118,879 | 109,304 | ||
Total assets | $ 1,392,575 | $ 1,392,002 | ||
Current liabilities: | ||||
Notes payable and current maturities of long-term debt | $ 11,479 | $ 9,457 | ||
Accounts payable | 69,254 | 71,194 | ||
Accrued payroll and employee benefits | 67,926 | 79,061 | ||
Sales, income and other taxes payable | 11,549 | 15,835 | ||
Other current liabilities | 130,640 | 139,828 | ||
Total current liabilities | 290,848 | 315,375 | ||
Long-term debt, net of current maturities | 425,864 | 425,979 | ||
Deferred tax liabilities | 27,011 | 24,772 | ||
Other long-term liabilities | 20,208 | 28,988 | ||
Stockholders’ equity | 628,644 | 596,888 | ||
Total liabilities and stockholders’ equity | $ 1,392,575 | $ 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) | ||||
Six Months Ended | ||||
June 30, | ||||
2005 | 2004 | |||
Cash flows from operating activities: | ||||
Cash received from customers | $ 583,459 | $ 517,385 | ||
Cash paid to suppliers and employees | (527,665) | (440,664) | ||
Interest paid | (15,459) | (9,866) | ||
Income tax payments | (20,161) | (20,860) | ||
Miscellaneous receipts | 8,971 | 3,568 | ||
Discontinued operations | (1,327) | (2,019) | ||
Net cash provided by operating activities | 27,818 | 47,544 | ||
Cash flows from investing activities: | ||||
Capital expenditures, net | (17,591) | (29,057) | ||
Other investing activities | 40,585 | (55,181) | ||
Net cash provided by (used in) investing activities | 22,994 | (84,238) | ||
Cash flows from financing activities: | ||||
Payments on long-term debt | (231) | (212) | ||
Other financing activities | 5,323 | 3,465 | ||
Net cash provided by financing activities | 5,092 | 3,253 | ||
Effect of exchange rate changes on cash | 494 | 1,325 | ||
Net increase (decrease) in cash and cash equivalents | 56,398 | (32,116) | ||
Cash and cash equivalents at beginning of period | 195,734 | 65,395 | ||
Cash and cash equivalents at end of period | $ 252,132 | $ 33,279 | ||
Reconciliation of income from continuing operations to net cash provided by | ||||
operating activities: | ||||
Income from continuing operations | $ 47,908 | $ 42,891 | ||
Adjustments to reconcile net income to net cash provided by | ||||
operating activities (net of effects of acquisitions): | ||||
Depreciation and amortization | 30,091 | 22,881 | ||
Changes in working capital | (45,925) | (19,540) | ||
Other | (8,230) | 2,799 | ||
Discontinued operations | 3,974 | (1,487) | ||
Net cash provided by operating activities | $ 27,818 | $ 47,544 | ||
Certain items have been reclassified to conform to the current year presentation. |