Exhibit 99.1
Bio-Rad Reports First-Quarter Sales Increase 31% Page 2 softness in the market resulting from reduced spending by both academic and bio-pharmaceutical customers. Clinical Diagnostics The Clinical Diagnostics segment reported net sales of $263.7 million for the first quarter, up 48.4% compared to the first quarter last year, or 41.3% excluding currency effects. Excluding revenue from the DiaMed acquisition,net sales were up 13.1%, or 6.0% on a currency-neutral basis, from the same period last year. These results were largely due to growth across all product lines most notably diabetes, microbiology, virology, and quality control products, as well as additional revenue resulting from the acquisition of DiaMed in October 2007, which contributed instruments and reagents used in blood typing and screening to the Company’s product offerings. During the quarter, the MRSASelectTM test, a chromogenic medium used for the rapid screening of MRSA (methicillin-resistantStaphylococcus aureus), continued to gain market acceptance in the U.S. along with the in2itTM analyzer for point-of-care hemoglobin A1C testing, which was introduced in the fourth quarter o f 2007. During the quarter, the segment introduced the BioPlex® 2200 Vasculitis kit for use on the BioPlex® 2200 system, which employs multiplexing technology to analyze multiple disease markers from a single patient sample.
Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) May 6, 2008. Interested parties can access the call by dialing 800-599-9829 (in the U.S.), or 617-847-8703 (international), access number 53867766. 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 44990505, 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 approximately 6,300 people globally and had revenues approaching $1.5 billion in 2007. 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 (more) |
Bio-Rad Reports First-Quarter Sales Increase 31% Page 3 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, 2007, 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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PART 1 – FINANCIAL INFORMATION | ||||
Item 1. Financial Statements. | ||||
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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 | ||
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| March 31, | ||
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| 2008 |
| 2007 |
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Net sales |
| $ 422,197 |
| $ 322,508 |
Cost of goods sold |
| 195,314 |
| 143,127 |
Gross profit |
| 226,883 |
| 179,381 |
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Selling, general and administrative expense |
| 139,655 |
| 107,750 |
Product research and development expense |
| 37,489 |
| 32,781 |
Interest expense |
| 7,957 |
| 7,869 |
Foreign exchange (gains) losses, net |
| 2,593 |
| (272) |
Other (income) expense, net |
| (193) |
| (6,186) |
Income before taxesand minority interests |
| 39,382 |
| 37,439 |
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Provision for incometaxes |
| (10,823) |
| (10,442) |
Minority interests in earnings of consolidated subsidiaries |
| (2,064) |
| -- |
Net income |
| $ 26,495 |
| $ 26,997 |
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Basic earnings per share: |
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Net income |
| $ 0.99 |
| $ 1.02 |
Weighted average common shares |
| 26,881 |
| 26,580 |
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Diluted earnings per share: |
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Net income |
| $ 0.96 |
| $ 0.99 |
Weighted average common shares |
| 27,464 |
| 27,156 |
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The accompanying notes are an integral part of these condensed consolidated financial statements. |
BIO-RAD LABORATORIES, INC
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
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| March 31, |
| December 31, |
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| 2008 |
| 2007 |
Current assets: |
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Cash and cash equivalents |
| $ 129,480 |
| $ 161,764 |
Short-term investments |
| 47,643 |
| 61,977 |
Accounts receivable, net |
| 366,509 |
| 358,076 |
Inventories, net |
| 365,059 |
| 321,015 |
Other current assets |
| 140,340 |
| 126,142 |
Total current assets |
| 1,049,031 |
| 1,028,974 |
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Net property, plant and equipment |
| 287,573 |
| 271,561 |
Goodwill |
| 352,671 |
| 328,439 |
Purchased intangibles, net |
| 232,614 |
| 210,304 |
Other assets |
| 131,399 |
| 132,316 |
Total assets |
| $ 2,053,288 |
| $ 1,971,594 |
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Current liabilities: |
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Notes payable and current maturities of long-term debt |
| $ 15,677 |
| $ 15,627 |
Accounts payable |
| 98,929 |
| 96,470 |
Accrued payroll and employee benefits |
| 96,836 |
| 121,255 |
Sales, income and other taxes payable |
| 36,832 |
| 27,905 |
Other current liabilities |
| 139,172 |
| 152,911 |
Total current liabilities |
| 387,446 |
| 414,168 |
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Long-term debt, net of current maturities |
| 442,446 |
| 441,805 |
Other long-term liabilities |
| 110,880 |
| 109,497 |
Minority interests |
| 30,249 |
| 34,434 |
Stockholders’ equity |
| 1,082,267 |
| 971,690 |
Total liabilities, minority interests and stockholders’ equity |
| $ 2,053,288 |
| $ 1 ,971,594 |
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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, | ||
| 2008 |
| 2007 |
Cash flows from operating activities: |
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Cash received from customers | $ 436,521 |
| $ 327,214 |
Cash paid to suppliers and employees | (421,973) |
| (324,067) |
Interest paid | (8,938) |
| (8,540) |
Income tax payments | (6,398) |
| (12,424) |
Litigation settlement | (1,098) |
| (1,033) |
Other operating activities | (291) |
| 6,209 |
Net cash used in operating activities | (2,177) |
| (12,641) |
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Cash flows from investing activities: |
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Payments for acquisitions and long-term investments | (17,106) |
| (860) |
Other investing activities | (17,858) |
| 12,718 |
Net cash provided by (used in) investing activities | (34,964) |
| 11,858 |
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Cash flows from financing activities: |
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Payments on long-term debt | (2,190) |
| (123) |
Other financing activities | 4,979 |
| 7,388 |
Net cash provided by financing activities | 2,789 |
| 7,265 |
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Effect of exchange rate changes on cash | 2,068 |
| 225 |
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Net increase (decrease) in cash and cash equivalents | (32,284) |
| 6,707 |
Cash and cash equivalents at beginning of period | 161,764 |
| 223,607 |
Cash and cash equivalents at end of period | $ 129,480 |
| $ 230,314 |
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Reconciliation of net income to net cash used in operating activities: |
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Net income | $ 26,495 |
| $ 26,997 |
Adjustments to reconcile net income to net cash used in operating activities: |
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Depreciation and amortization | 23,740 |
| 14,375 |
Changes in working capital | (60,027) |
| (51,579) |
Litigation settlement | (1,098) |
| (1,033) |
Other | 8,713 |
| (1,401) |
Net cash used in operating activities | $ (2,177) |
| $ (12,641) |
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