Exhibit 99.1
FOR IMMEDIATE RELEASE
BIO-RAD LABORATORIES REPORTS THIRD-QUARTER RESULTS
HERCULES, CA – November 2, 2006 – Bio-Rad Laboratories, Inc. (AMEX: BIO and BIOb), a multinational manufacturer and distributor of life science research and clinical diagnostics products, announced financial results today for the third quarter ended September 30, 2006.Third-quarter revenues from continuing operations were $304.8 million, up 7.6% compared to$283.2 million reported for thethird quarter of 2005.On a currency-neutral basis, revenues increased 5.1% compared to the same period last year.This growth was driven by solid sales across product areas in both the Life Science and Clinical Diagnostics segments. Third-quarterincome from continuing operations was $23.2 millioncompared to $16.2 million during the third quarter last year. The increase in net income included a pre-tax investment gain of $4.7 million realized during the quarter. Third-quarter gross margin from continuing operations was 54.7% compared to 55.4% in the same period last year.
Year-to-date revenues from continuing operationsgrew by6.5% to $930.8 million compared to the first nine months of 2005. Normalizing for the impact of currency effects, year-to-date growth was 7.7%. Income from continuing operations increased by 35.1% to $86.6 million, or $3.29 per share compared to $64.1 million, or $2.47 per share,in the same period last year. Year-to-date gross margin was 56.6% compared to 55.4% for the first nine months of 2005.
Third-Quarter Highlights
· | Third-quarter basic earnings from continuing operations were $0.88 per share, or $0.86 per share |
| on a diluted basis, compared to $0.62 and $0.61, respectively, during the same period |
| of last year. |
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· | The Life Science segment reported sales of $137.4 million, a 4.0% increase over the same period |
| last year of $132.1 million. On a currency-neutral basis, segment sales increased 2.0%. |
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· | Clinical Diagnostics segment net sales for the quarter were $164.4 million, a 10.8% increase over |
| the same period last year of $148.3 million. On a currency-neutral basis, segment sales in this |
| area increased by 7.8% compared to the same period last year. |
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· | In August, Bio-Rad announced that it had signed a definitive agreement to acquire Ciphergen |
| Biosystems, Inc.’s life science business including worldwide technology rights to Ciphergen’s |
| Surface Enhanced Laser Desorption/Ionization (SELDI-TOF-MS) technology and |
| ProteinChip® System. |
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Bio-Rad Reports Third-Quarter Results
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· | During September, Bio-Rad announced the availability of the ProteOn™ XPR36 Protein |
| Interaction Array System. |
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· | In July, Bio-Rad and Integrated DNA Technologies, Inc. entered into a collaboration to develop |
| validated RNA interference (RNAi) reagents for life science researchers. |
Life Science segment net sales for the quarter were $137.4 million, up 4.0% compared to $132.1 million in the third quarter last year. On a currency-neutral basis, sales increased by 2.0%.Performance in this segment was the result of a number of factorsincluding first deliveries of the ProteOn XPR36 Protein Interaction Array System. The new instrument provides researchers studying proteins with the ability to capture richer and more comparable data and run more experiments in a shorter period of time. Sales of amplification reagentsandprocess chromatography media also continued to show growth worldwide. Segment results were somewhat tempered by the continued erosion of BSE testing revenue. In July, Bio-Rad and Integrated DNA Technologies, Inc. entered into a collaboration to develop validated RNA interference (RNAi) reagents for life science researchers.
The Clinical Diagnostics segment reported sales of $164.4 million, a 10.8% increase over the same period last year of $148.3 million. On a currency-neutral basis, segment sales increased 7.8%. These results are due to continued growth across all product lines especially in the blood virus and quality control product areas. In September, the Company announced that it had completed the purchase of the diagnostics business of Provalis plc, a UK-based provider of point of care diagnostic products for chronic disease management of diabetes and osteoporosis. This acquisition expands Bio-Rad’s market breadth in the area of diabetes monitoring.
In August, Bio-Rad announced that it had signed a definitive agreement to acquire Ciphergen Biosystems, Inc.’s life science business including worldwide technology rights to Ciphergen’s Surface Enhanced Laser Desorption/Ionization (SELDI-TOF-MS) technology and ProteinChip System. The acquisition, which is in the process of being completed, provides Bio-Rad with access to leading protein analysis technology for the life science market and represents a significant addition to the Company’s portfolio of products.
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Bio-Rad Reports Third-Quarter Results
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“Overall, we are pleased with the company’s performance in the third quarter,” said Norman Schwartz, Bio-Rad President and Chief Executive Officer. “Sales are meeting or exceeding expectations and new products are finding acceptance around the world.”
Management will discuss these results in a conference call at 2 p.m. Pacific Standard Time (5 p.m. Eastern Standard Time) November 2, 2006.Interested parties can access the call by dialing 866-543-6411 (in the U.S.), or617-213-8900 (international),access number 91475971.The live webcast can be accessed athttp://www.bio-rad.com. A replay of the call will be available at888-286-8010 (in the U.S.), or 617-801-6888 (international), access number 39220678, for seven days following the call and the webcast can be accessed athttp://www.bio-rad.com for 30 days.
About Bio-Rad
Bio-Rad Laboratories, Inc. (AMEX: BIO and BIOb), 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 85,000 research and industry customers worldwide through its global network of operations. The company employs over 5,000 people globally and had revenues of $1.1 billion in 2005. For more information, please visit
www.bio-rad.com.
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, Vice President and Chief Financial Officer, or
Ron Hutton, Treasurer
Bio-Rad Laboratories, Inc.
510-724-7000
investor_relations@bio-rad.com
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BIO-RAD LABORATORIES, INC. | |||||||
Condensed Consolidated Statements of Income | |||||||
(In thousands, except per share data) | |||||||
(Unaudited) | |||||||
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| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||
| 2006 |
| 2005 |
| 2006 |
| 2005 |
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Net sales | $ 304,764 |
| $ 283,225 |
| $ 930,849 |
| $ 873,698 |
Cost of goods sold | 137,975 |
| 126,413 |
| 403,870 |
| 389,837 |
Gross profit | 166,789 |
| 156,812 |
| 526,979 |
| 483,861 |
Selling, general and administrative expense | 105,950 |
| 102,738 |
| 316,486 |
| 306,458 |
Product research and development expense | 30,988 |
| 28,673 |
| 90,050 |
| 83,995 |
Interest expense | 8,212 |
| 8,210 |
| 24,111 |
| 24,371 |
Foreign exchange (gains) losses, net | (293) |
| (97) |
| 959 |
| (1,296) |
Other (income) expense, net | (10,514) |
| (3,506) |
| (22,809) |
| (14,033) |
Income from continuing operations before taxes | 32,446 |
| 20,794 |
| 118,182 |
| 84,366 |
Provision for income taxes | 9,296 |
| 4.575 |
| 31,568 |
| 20,239 |
Income from continuing operations | 23,150 |
| 16,219 |
| 86,614 |
| 64,127 |
Discontinued operations |
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Gain on divestiture, net of tax benefits of zero in 2005 | -- |
| -- |
| -- |
| 3,974 |
Net income | $ 23,150 |
| $ 16,219 |
| $ 86,614 |
| $ 68,101 |
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Basic earnings per share: |
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Continuing operations | $ 0.88 |
| $ 0.62 |
| $ 3.29 |
| $ 2.47 |
Discontinued operations | -- |
| -- |
| -- |
| 0.15 |
Net income | $ 0.88 |
| $ 0.62 |
| $ 3.29 |
| $ 2.62 |
Weighted average common shares | 26,407 |
| 26,115 |
| 26,342 |
| 26,015 |
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Diluted earnings per share: |
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Continuing operations | $ 0.86 |
| $ 0.61 |
| $ 3.22 |
| $ 2.41 |
Discontinued operations | -- |
| -- |
| -- |
| 0.15 |
Net income | $ 0.86 |
| $ 0.61 |
| $ 3.22 |
| $ 2.56 |
Weighted average common shares | 26,971 |
| 26,695 |
| 26,900 |
| 26,620 |
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BIO-RAD LABORATORIES, INC
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
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| September 30, 2006 |
| December 31, 2005 |
Current assets: |
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Cash and cash equivalents |
| $ 238,418 |
| $ 296,716 |
Restricted cash |
| -- |
| 36,138 |
Short-term investments |
| 243,155 |
| 116,343 |
Accounts receivable, net |
| 273,367 |
| 247,192 |
Inventories, net |
| 246,207 |
| 212,342 |
Other current assets |
| 91,566 |
| 99,480 |
Total current assets |
| 1,092,713 |
| 1,008,211 |
Net property, plant and equipment |
| 182,728 |
| 180,258 |
Goodwill |
| 113,276 |
| 113,276 |
Purchased intangibles, net |
| 24,926 |
| 28,449 |
Other assets |
| 109,992 |
| 96,388 |
Total assets |
| $ 1,523,635 |
| $ 1,426,582 |
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Current liabilities: |
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Notes payable and current maturities of long-term debt |
| $ 3,768 |
| $ 3,341 |
Accounts payable |
| 64,513 |
| 72,950 |
Accrued payroll and employee benefits |
| 79,456 |
| 81,076 |
Sales, income and other taxes payable |
| 19,075 |
| 15,841 |
Other current liabilities |
| 114,500 |
| 146,035 |
Total current liabilities |
| 281,312 |
| 319,243 |
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Long-term debt, net of current maturities |
| 425,750 |
| 425,687 |
Other long-term liabilities |
| 31,833 |
| 23,678 |
Stockholders’ equity |
| 784,740 |
| 657,974 |
Total liabilities and stockholders’ equity |
| $ 1,523,635 |
| $ 1,426,582 |
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BIO-RAD LABORATORIES, INC. | |||
Condensed Consolidated Statements of Cash Flows | |||
(In thousands) | |||
(Unaudited) | |||
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| Nine Months Ended | ||
| September 30, | ||
| 2006 |
| 2005 |
Cash flows from operating activities: |
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Cash received from customers | $ 915,289 |
| $ 865,235 |
Cash paid to suppliers and employees | (789,626) |
| (762,788) |
Interest paid | (24,528) |
| (24,489) |
Income tax payments | (9,595) |
| (30,085) |
Litigation settlement related to MJ acquisition | (45,963) |
| -- |
Other operating activities | 17,789 |
| 11,018 |
Net cash provided by operating activities | 63,366 |
| 58,891 |
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Cash flows from investing activities: |
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Capital expenditures, net | (38,079) |
| (26,297) |
Receipt (payment) of restricted cash | 36,138 |
| (35,828) |
Other investing activities | (132,102) |
| 47,830 |
Net cash used in investing activities | (134,043) |
| (14,295) |
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Cash flows from financing activities: |
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Proceeds from issuance of common stock | 8,511 |
| 6,919 |
Other financing activities | 1,051 |
| (2,416) |
Net cash provided by financing activities | 9,562 |
| 4,503 |
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Effect of exchange rate changes on cash | 2,817 |
| (853) |
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Net increase (decrease) in cash and cash equivalents | (58,298) |
| 48,246 |
Cash and cash equivalents at beginning of period | 296,716 |
| 195,734 |
Cash and cash equivalents at end of period | $ 238,418 |
| $ 243,980 |
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Reconciliation of net income to net cash provided by operating activities: |
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Net income | $ 86,614 |
| $ 68,101 |
Adjustments to reconcile net income to net cash provided by |
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operating activities: |
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Depreciation and amortization | 40,300 |
| 44,581 |
Changes in working capital | (29,876) |
| (37,674) |
Litigation settlement related to MJ acquisition | (45,963) |
| -- |
Other | 12,291 |
| (16,117) |
Net cash provided by operating activities | $ 63,366 |
| $ 58,891 |
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