Exhibit 99.1
FOR IMMEDIATE RELEASE
BIO-RAD REPORTS FIRST-QUARTER 2007 FINANCIAL RESULTS
HERCULES, CA – May 3, 2007 – 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 first quarter year ended March 31, 2007.
The Company posted revenues of $322.5 million, up 4.6% compared to $308.3 million reported for the first quarter of 2006.On a currency-neutral basis, revenues increased0.4% compared to the same period last year.Net income for the first quarter was $27.0 million compared to $31.2 million reported for the same quarter in 2006.First-quarter net income was$1.02 per share, or $0.99 per share on a fully diluted basis, compared to$1.19 and $1.16, respectively, during the first quarter last year. First-quarter gross margin from operations was 55.6% compared to 56.9% in the same period last year.
“While sales were solid in our Clinical Diagnostics segment, our Life Science segment continues to face some slowness in the US and Asian academic segments,” saidNorman Schwartz, Bio-Rad President and Chief Executive Officer. “We are encouraged, however, by growth across several product lines and the introduction of new products like the Mini-PROTEAN® Tetra cell and the Profinia™ protein purification system.”
Life Science
Life Science segment net sales for the quarter were $141.6 million, down 2.2% compared to the same period last year. On a currency-neutral basis, segment sales decreased by 5.7%. Overall performance in this segment continued to be impacted by the drop in BSE (bovine spongiform encephalopathy) testing revenues as both the number of animals tested and the average selling price continues to decline. In addition, reduced government sponsored research funding has impacted sales across the segment's traditional product lines. This weakness was somewhat offset, however, by the introduction of the ProteOn™ XPR36 protein interaction array system and growth of the Bio-Plex® suspension array system instrument and reagents. Sales of the Bio-Plex system were driven in part by 57 new assays that were introduced in 2006. During the quarter, the segment introduced a number of new products including the Mini-PROTEAN Tetra cell, th e Company’s fourth generation electrophoresis system; as well as the Profinia protein purification system.
Clinical Diagnostics
The Clinical Diagnostics segment reported net sales of$177.6 million for the quarter, up10.8%
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Bio-Rad Reports First-Quarter 2007 Financial Results
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compared to the first quarter last year,or 5.9% excluding currency effects.These results were largely due to continued growth across all product lines, most notably blood virus and quality control products. Strong blood virus sales in the US were in part the result of customers converting to the HIV-1/HIV-2 PLUS O EIA test. In addition, the segment had record installations of QCNet™ software, which allows customers to connect to Bio-Rad via the Internet for their QC data processing needs.
Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) May 3, 2007. Interested parties can access the call by dialing 800-295-4740 (in the US), or 617-614-3925 (international), access number 87033646. The live webcast can be accessed athttp://www.bio-rad.com. A replay of the call will be available at 888-286-8010 (in the US), or 617-801-6888 (international), access number 53777366, for seven days following the call and the webcast can be accessed at
http://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 nearly $1.3 billion in 2006. For more information, visit www.bio-rad.com.
Various statements made within this press release may constitute “forward-looking statements” for the 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 expectation.
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
BIO-RAD LABORATORIES, INC. | ||||
Condensed Consolidated Statements of Income | ||||
(In thousands except per share data) | ||||
(Unaudited) | ||||
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| Three Months Ended | ||
|
| March 31, | ||
|
| 2007 |
| 2006 |
|
|
|
|
|
Net sales |
| $ 322,508 |
| $ 308,338 |
Cost of good sold |
| 143,127 |
| 132,810 |
Gross profit |
| 179,381 |
| 175,528 |
|
|
|
|
|
Selling, general and administrative expense |
| 107,750 |
| 100,070 |
Product research and development expense |
| 32,781 |
| 28,091 |
Interest expense |
| 7,869 |
| 8,019 |
Foreign exchange (gains) losses, net |
| (272) |
| 11 |
Other (income) expense, net |
| (6,186) |
| (4,542) |
Income from continuing operations before taxes |
| 37,439 |
| 43,879 |
Provision for income taxes |
| 10,442 |
| 12,681 |
Net income |
| $ 26,997 |
| $ 31,198 |
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|
|
|
|
Basic earnings per share: |
|
|
|
|
Net income |
| $ 1.02 |
| $ 1.19 |
Weighted average common shares |
| 26,580 |
| 26,277 |
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|
Diluted earnings per share: |
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|
|
|
Net income |
| $ 0.99 |
| $ 1.16 |
Weighted average common shares |
| 27,156 |
| 26,829 |
|
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BIO-RAD LABORATORIES, INC. | |||
Condensed Consolidated Balance Sheets | |||
(In thousands) | |||
(Unaudited) | |||
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| ||
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| ||
| March 31, |
| December 31, |
| 2007 |
| 2006 |
|
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Current Assets: |
|
|
|
Cash and cash equivalents | $ 230,314 |
| $ 223,607 |
Short-term investments | 241,418 |
| 264,473 |
Accounts receivable, net | 290,116 |
| 292,970 |
Inventories, net | 259,965 |
| 253,045 |
Other current assets | 107,879 |
| 95,682 |
Total current assets | 1,129,692 |
| 1,129,777 |
|
|
|
|
Net property, plant and equipment | 188,763 |
| 189,627 |
Goodwill | 119,492 |
| 119,492 |
Purchased intangibles, net | 44,220 |
| 44,605 |
Other assets | 124,876 |
| 112,667 |
Total assets | $ 1,607,043 |
| $ 1,596,168 |
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Current liabilities: |
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Notes payable and current maturities of long-term debt | $ 4,609 |
| $ 3,042 |
Accounts payable | 61,946 |
| 83,411 |
Accrued payroll and employee benefits | 70,590 |
| 92,101 |
Sales, income and other taxes payable | 22,240 |
| 19,949 |
Other current liabilities | 112,706 |
| 121,030 |
Total current liabilities | 272,091 |
| 319,533 |
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Long-term debt, net of current maturities | 425,504 |
| 425,625 |
Other long-term liabilities | 48,784 |
| 31,472 |
Stockholders’ equity | 860,664 |
| 819,538 |
Total liabilities and stockholders’ equity | $ 1,607,043 |
| $ 1,596,168 |
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BIO-RAD LABORATORIES, INC. | ||||
Condensed Consolidated Statements of Cash Flows | ||||
(in thousands) | ||||
(Unaudited) | ||||
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| |
| Three Months Ended | |||
| March 31, | |||
| 2007 |
| 2006 | |
Cash flows from operating activities: |
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Cash received from customers | $ 327,214 |
| $ 299,764 | |
Cash paid to suppliers and employees | (324,067) |
| (283,973) | |
Interest paid | (8.540) |
| (8,938) | |
Income tax payments | (12,424) |
| (9,562) | |
Litigation settlement | (1,033) |
| (44,167) | |
Other operating activities | 6,209 |
| 4,805 | |
Net cash used in operating activities | (12,641) |
| (42,071) | |
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Cash flows from investing activities: |
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Capital expenditures, net | (10,636) |
| (11,318) | |
Receipt of restricted cash | -- |
| 36,498 | |
Other investing activities | 22,494 |
| (16,943) | |
Net cash provided by investing activities | 11,858 |
| 8,237 | |
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Cash flows from financing activities: |
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Payments on long-term debt | (123) |
| (117) | |
Other financing activities | 7,388 |
| 2,813 | |
Net cash provided by financing activities | 7,265 |
| 2,696 | |
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| |
Effect of exchange rate changes on cash | 225 |
| 9 | |
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Net (decrease) increase in cash and cash equivalents | 6,707 |
| (31,129) | |
Cash and cash equivalents at beginning of period | 223,607 |
| 296,716 | |
Cash and cash equivalents at end of period | $ 230,314 |
| $ 265,587 | |
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Reconciliation of net income to net cash provided by operating activities: |
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Net Income | $ 26,997 |
| $ 31,198 | |
Adjustments to reconcile net income to net cash provided by |
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operating activities (net of effects of acquisitions): |
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Depreciation and amortization | 14,375 |
| 12,971 | |
Changes in working capital | (51,999) |
| (53,198) | |
Litigation settlement | (1,033) |
| (44,167) | |
Other | (981) |
| 11,125 | |
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| |
Net cash used in operating activities | $ (12,641) |
| $ (42,071) | |
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