Exhibit 99.1
FOR IMMEDIATE RELEASE BIO-RAD REPORTS THIRD-QUARTER 2007 FINANCIAL RESULTS HERCULES, CA – November 6, 2007 – Bio-Rad Laboratories, Inc. (AMEX: BIO and BIOb), a multinational manufacturer and distributor of life science research and clinical diagnostic products, announced financial results today for the third quarter ended September 30, 2007. Third-quarter revenues were$339.7 million in 2007, up11.5% compared to$304.8 millionreported for thesame period in 2006.These results were driven by continued growth across product areas in both the Life Science and Clinical Diagnostics segments. On a currency-neutral basis, revenues increased 8.0% compared to the same period last year. Net income for the third quarter in 2007 was $28.0 million compared to $23.2 million reported for thesame period in 2006. Third-quarter net income in 2006 benefited from a pre-tax investment gain of $4.7 million. Net income for the third quarter in 2007 was $1.05 per share, or $1.03 per share on a fully diluted basis, compared to $0.88 and $0.86, respectively, during the same quarter last year. Third-quarter gross margin was 55.4%compared to 54.7% in the third quarter last year. Year-to-date revenues grew by 7.6%to $1.0 billion compared to the first three quarters in 2006. Normalizing for the impact of currency effects, growth was 3.8%.Year-to-date net income for 2007 was$80.6 millioncompared to $86.6 million in the same period last year.Year-to-date results for the first three quarters in 2006 was favorably impacted by one-time additional revenue of $11.7 million resulting from a licensing settlement agreement reached with bioMérieux as well as the aforementioned pre-tax investment gain of $4.7 million. Year-to-date gross margin was 55.7% compared to 56.6% in the same period in 2006. On a per share basis, year-to-date net income for 2007 was$3.03 per share, or $2.96 per share on a fully diluted basis, and $3.29 and $3.22, respectively, for the same period of 2006. “We are pleased with the Company’s performance during the quarter and encouraged by the success of new products,” said Norman Schwartz, Bio-Rad President and Chief Executive (more) |
Bio-Rad Reports Third-Quarter 2007 Financial Results Page 2 Officer. “As we wrap up the year, we will continue to focus on our ongoing businesses and work to integrate the recently acquired DiaMed into Bio-Rad’s organization.” Life Science Life Science segment net sales for the quarter were $143.0 million, up 4.1% compared to the same period last year. On a currency-neutral basis, segment sales increased by 1.2%. Performance in the Life Science segment benefited from sales of the new ProteOn™ XPR36 protein interaction array system as well as the Bio-Plex® suspension array systems and reagents. Bio-Plex suspension array system sales continue to be boosted by the over 50 new assays that were introduced in 2006. Sales of process chromatography media, particularly CHT™ Ceramic Hydroxyapatite, were strong as the products continued to gain broad market acceptance. These materials are used in the purification stages in the manufacture of a variety of pharmaceuticals with a particular applicability to monoclonal antibody based medicines. Sales results in this segment were somewhat tempered by continued erosion of BSE (bovine spongifo rm encephalopathy) testing revenue. Clinical Diagnostics The Clinical Diagnostics segment reported net salesof $193.3 million for the quarter,up17.6% compared to the third quarter last year,or13.5% excluding currency effects. These gains were the result of strong sales across all product lines, particularly in quality control, auto-immune, diabetes, and blood virus testing products. During the quarter, Bio-Rad launched a test for syphilis for use on its BioPlex® 2200 system, a fully-automated random access multiplex testing system that can generate multiple results from a single patient sample. The BioPlex 2200 Syphilis IgG kit simultaneously detects three of the most clinically relevant bacteria that cause syphilis. In September, the Company received FDA clearance to market the MRSASelect™ test, a chromogenic medium used for the r apid screening of MRSA (methicillin resistant Staphylococcus aureus). With high sensitivity and specificity as well as rapid and direct identification, the MRSASelecttest can identify MRSA carriers in 24 hours. Also during the quarter, the Company released the Dengue NS1 Ag STRIP rapid test. The test provides early diagnosis of dengue acute infections, a tropical disease transmitted to humans from mosquitoes. In the beginning of the fourth quarter of 2007, Bio-Rad completed the purchase of 77.7% of Switzerland-based DiaMed Holding AG for approximately $409 million in cash. DiaMed (more) |
Bio-Rad Reports Third-Quarter 2007 Financial Results Page 3 develops, manufactures, and markets a complete line of reagents and instruments used in blood typing and screening and has annual sales of approximately $200 million. DiaMed’s results will be included in our consolidated financial statements beginning in the fourth quarter of 2007. Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) November 6, 2007. Interested parties can access the call by dialing 800-510-9834 (in the U.S.), or 617-614-3669 (international), access number 71052630. The live webcast 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 61856426, 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 diagnostic 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 6,300 people globally and had revenues of nearly $1.3 billion in 2006. For more information, visit www.bio-rad.com. This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, “believe,” “expect,” “may,” “will,” “intend,” “estimate,” “continue,” or similar expressions or the negative of those terms or expressions. Such statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. For further information regarding the Company's risks and uncertainties, please refer to the “Risk Factors” in the Company’s public reports filed with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2006, as updated by subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company cautions you not to place undue reliance on forward-looking statements, which reflect an analysis only and speak only as of the date hereof. Bio-Rad Laboratories, Inc., disclaims any obligation to update these forward-looking statements. 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, |
| Six Months Ended September 30, | ||||
| 2007 |
| 2006 |
| 2007 |
| 2006 |
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Net sales | $ 339,742 |
| $ 304,764 |
| $ 1,001,364 |
| $ 930,849 |
Cost of goods sold | 151,385 |
| 137,975 |
| 443,635 |
| 403,870 |
Gross profit | 188,357 |
| 166,789 |
| 557,729 |
| 526,979 |
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Selling, general and administrative expense | 117,687 |
| 105,950 |
| 344,988 |
| 316,486 |
Product research and development expense | 33,145 |
| 30,988 |
| 100,680 |
| 90,050 |
Interest expense | 7,847 |
| 8,212 |
| 23,583 |
| 24,111 |
Foreign exchange (gains) losses, net | 257 |
| (293) |
| (413) |
| 959 |
Other (income) expense, net | (5,687) |
| (10,514) |
| (19,368) |
| (22,809) |
Income before taxes | 35,108 |
| 32,446 |
| 108,259 |
| 118,182 |
Provision for income taxes | 7,137 |
| 9,296 |
| 27,620 |
| 31,568 |
Net income | $ 27,971 |
| $ 23,150 |
| $ 80,639 |
| $ 86,614 |
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Basic earnings per share: |
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Net income | $ 1.05 |
| $ 0.88 |
| $ 3.03 |
| $ 3.29 |
Weighted average common shares | 26,715 |
| 26,407 |
| 26,651 |
| 26,342 |
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Diluted earnings per share: |
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Net income | $ 1.03 |
| $ 0.86 |
| $ 2.96 |
| $ 3.22 |
Weighted average common shares | 27,270 |
| 26,971 |
| 27,197 |
| 26,900 |
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BIO-RAD LABORATORIES, INC
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
|
| September 30, |
| December 31, |
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| 2007 |
| 2006 |
Current assets: |
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Cash and cash equivalents |
| $ 472,792 |
| $ 223,607 |
Short-term investments |
| 70,613 |
| 264,473 |
Accounts receivable, net |
| 303,201 |
| 292,970 |
Inventories, net |
| 273,575 |
| 253,045 |
Other current assets |
| 99,381 |
| 95,682 |
Total current assets |
| 1,219,562 |
| 1,129,777 |
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Net property, plant and equipment |
| 201,608 |
| 189,627 |
Goodwill |
| 121,492 |
| 119,492 |
Purchased intangibles, net |
| 42,535 |
| 44,605 |
Other assets |
| 127,287 |
| 112,667 |
Total assets |
| $ 1,712,484 |
| $ 1,596,168 |
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Current liabilities: |
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Notes payable and current maturities of long-term debt |
| $ 4,907 |
| $ 3,042 |
Accounts payable |
| 68,102 |
| 83,411 |
Accrued payroll and employee benefits |
| 89,769 |
| 92,101 |
Sales, income, and other taxes payable |
| 14,885 |
| 19,949 |
Other current liabilities |
| 108,798 |
| 121,030 |
Total current liabilities |
| 286,461 |
| 319,533 |
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Long-term debt, net of current maturities |
| 426,141 |
| 425,625 |
Other long-term liabilities |
| 53,542 |
| 31,472 |
Stockholders’ equity |
| 946,340 |
| 819,538 |
Total liabilities and stockholders’ equity |
| $ 1,712,484 |
| $ 1,596,168 |
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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, | ||
| 2007 |
| 2006 |
Cash flows from operating activities: |
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Cash received from customers | $ 1,007,292 |
| $ 915,289 |
Cash paid to suppliers and employees | (880,104) |
| (789,626) |
Interest paid | (24,008) |
| (24,528) |
Income tax payments | (32,720) |
| (9,595) |
Litigation settlement | (3,147) |
| (45,963) |
Other operating activities | 21,116 |
| 17,789 |
Net cash provided by operating activities | 88,429 |
| 63,366 |
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Cash flows from investing activities: |
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Cash expenditures, net | (45,938) |
| (38,079) |
Receipt of restricted cash | -- |
| 36,138 |
Other investing activities | 185,996 |
| (132,102) |
Net cash provided by (used in) investing activities | 140,058 |
| (134,043) |
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Cash flows from financing activities: |
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Proceeds from issuance of common stock | 9,109 |
| 8,511 |
Other financing activities | 3,481 |
| 1,051 |
Net cash provided by financing activities | 12,590 |
| 9,562 |
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Effect of exchange rate changes on cash | 8,108 |
| 2,817 |
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Net increase (decrease) in cash and cash equivalents | 249,185 |
| (58,298) |
Cash and cash equivalents at beginning of period | 223,607 |
| 296,716 |
Cash and cash equivalents at end of period | $ 472,792 |
| $ 238,418 |
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Reconciliation of net income to net cash provided by operating activities: |
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Net income | $ 80,639 |
| $ 86,614 |
Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization | 43,406 |
| 40,300 |
Changes in working capital | (43,570) |
| (29,876) |
Litigation settlement | (3,147) |
| (45,963) |
Other | 11,101 |
| 12,291 |
Net cash provided by operating activities | $ 88,429 |
| $ 63,366 |
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