Exhibit 99.1
Bio-Rad Reports Second-Quarter 2008 Sales Increase of 33% Page 2 Life Science Life Science segment net sales for the quarter were $161.6 million,up 10.7%compared to the same period last year.On a currency-neutral basis, segment sales increased by3.2%. Performance in the Life Science segment benefited from sales of its electrophoresis, chromatography, and gel imaging products as well as Bio-Plex® suspension array system reagents, as several new assay panels for the Bio-Plex system were introduced during the quarter. Customer acceptance of the Company’s next generation polymerase chain reaction (PCR) instruments, the new 1000-series thermal cycling and CFX Real Time platforms continued to gain momentum during the second quarter. Capital instrument sales for the segment were down slightly during in the quarter, reflecting a general softness in the market resulting from reduce d spending by both academic and bio-pharmaceutical customers.
Clinical Diagnostics The Clinical Diagnostics segment reported net sales of $287.4 million for the second quarter, up 51.4% compared to the second quarter last year, or 42.9%excluding currency effects. Excluding revenue from the DiaMed acquisition, net sales were up17.9%,or 9.4% on a currency-neutral basis, from the same period last year.This performance was the result of growth across all product lines, in particular, quality control, diabetes, and autoimmune products. Sales were boosted in the Clinical Diagnostics segment by additional revenue from DiaMed, which added blood typing instruments and reagents to the Company’s product offerings. Sales of the Company’s in2itTM analyzer for point-of-care hemoglobin A1C testing; the MRSASelectTM test, a chromogenic medium used for the rapid screening of MRSA (me thicillin-resistant Staphylococcus aureus); and the BioPlex® 2200 instrument and reagents also continued to fuel growth in the segment.
Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) August 5, 2008. Interested parties can access the call by dialing 866-700-7101 (in the U.S.), or 617-213-8837(international), access number 62490028. 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 39213228, 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 (more) |
Bio-Rad Reports Second-Quarter 2008 Sales Increase of 33% Page 3 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 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 f or 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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BIO-RAD LABORATORIES, INC. | |||||||
Condensed Consolidated Statements of Income | |||||||
(In thousands, except per share data) | |||||||
(Unaudited) | |||||||
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| ||||
| Three Months Ended |
| Six Months Ended | ||||
| June 30, |
| June 30, | ||||
| 2008 |
| 2007 |
| 2008 |
| 2007 |
|
|
|
|
|
|
|
|
Net sales | $ 452,361 |
| $ 339,114 |
| $ 874,558 |
| $ 661,622 |
Cost of goods sold | 203,940 |
| 149,123 |
| 399,254 |
| 292,250 |
Gross profit | 248,421 |
| 189,991 |
| 475,304 |
| 369,372 |
|
|
|
|
|
|
|
|
Selling, general and administrative expense | 146,634 |
| 119,551 |
| 286,289 |
| 227,301 |
Product research and development expense | 42,079 |
| 34,754 |
| 79,568 |
| 67,535 |
Income from operations | 59,708 |
| 35,686 |
| 109,447 |
| 74,536 |
|
|
|
|
|
|
|
|
Interest expense | 7,991 |
| 7,867 |
| 15,948 |
| 15,736 |
Foreign exchange (gains) losses | (288) |
| (398) |
| 2,305 |
| (670) |
Other (income) expense, net | (3,951) |
| (7,495) |
| (4,144) |
| (13,681) |
Income before taxes and minority interests | 55,956 |
| 35,712 |
| 95,338 |
| 73,151 |
|
|
|
|
|
|
|
|
Provision for income taxes | (10,632) |
| (10,041) |
| (21,455) |
| (20,483) |
Minority interests in earnings of |
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|
|
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|
consolidated subsidiaries | (1,926) |
| -- |
| (3,990) |
| -- |
Net income | $ 43,398 |
| $ 25,671 |
| $ 69,893 |
| $ 52,668 |
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Basic earnings per share: |
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Net income | $ 1.61 |
| $ 0.96 |
| $ 2.60 |
| $ 1.98 |
Weighted average common shares | 26,947 |
| 26,657 |
| 26,914 |
| 26,619 |
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Diluted earnings per share: |
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|
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Net income | $ 1.58 |
| $ 0.95 |
| $ 2.54 |
| $ 1.94 |
Weighted average common shares | 27,478 |
| 27,164 |
| 27,470 |
| 27,160 |
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The accompanying notes are an integral part of these condensed consolidated financial statements. | |||||||
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BIO-RAD LABORATORIES, INC. | ||||
Condensed Consolidated Balance Sheets | ||||
(In thousands) | ||||
(Unaudited) | ||||
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|
|
| June 30, |
| December 31, |
|
| 2008 |
| 2007 |
Current assets: |
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|
Cash and cash equivalents |
| $ 183,643 |
| $ 161,764 |
Short-term investments |
| 43,512 |
| 61,977 |
Accounts receivable, net |
| 376,985 |
| 358,076 |
Inventories, net |
| 382,684 |
| 321,015 |
Other current assets |
| 132,958 |
| 126,142 |
Total current assets |
| 1,119,782 |
| 1,028,974 |
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Net property, plant and equipment |
| 290,737 |
| 328,439 |
Goodwill |
| 347,439 |
| 210,304 |
Purchased intangibles, net |
| 221,681 |
| 111,887 |
Other assets |
| 119,281 |
| 132,316 |
Total assets |
| $ 2,098,920 |
| $ 1,971,594 |
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Current liabilities: |
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Notes payable and current maturities of long-term debt |
| $ 14,680 |
| $ 15,627 |
Accounts payable |
| 102,320 |
| 96,470 |
Accrued payroll and employee benefits |
| 105,069 |
| 121,255 |
Sales, income and other taxes payable |
| 41,241 |
| 27,905 |
Other current liabilities |
| 144,777 |
| 152,911 |
Total current liabilities |
| 408,087 |
| 414,168 |
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Long-term debt, net of current maturities |
| 440,681 |
| 441,805 |
Other long-term liabilities |
| 103,413 |
| 109,497 |
Minority interests |
| 32,175 |
| 34,434 |
Stockholders’ equity |
| 1,114,558 |
| 971,690 |
Total liabilities, minority interests and stockholders’ equity |
| $ 2,098,920 |
| $ 1,975,594 |
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BIO-RAD LABORATORIES, INC. | |||
Condensed Consolidated Statements of Cash Flows | |||
(In thousands) | |||
(Unaudited) | |||
|
| ||
| Six Months Ended | ||
| June 30, | ||
| 2008 |
| 2007 |
Cash flows from operating activities: |
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Cash received from customers | $ 877,910 |
| $ 654,230 |
Cash paid to suppliers and employees | (781,755) |
| (600,174) |
Interest paid | (15,448) |
| (15,026) |
Income tax payments | (16,848) |
| (17,835) |
Litigation settlement | (2,213) |
| (2,082) |
Other operating activities | 5,265 |
| 14,318 |
Net cash provided by operating activities | 66,911 |
| 33,431 |
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Cash flows from investing activities: |
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|
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Payments for acquisitions and long-term investments | (17,110) |
| (24,496) |
Other investing activities | (35,043) |
| (33,486) |
Net cash used in investing activities | (52,153) |
| (35,982) |
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Cash flows from financing activities: |
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Payments on long-term debt | (4,414) |
| (305) |
Other financing activities | 8,274 |
| 9,660 |
Net cash provided by financing activities | 3,676 |
| 9,355 |
|
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Effect of exchange rate changes on cash | 3,445 |
| 1,992 |
|
|
|
|
Net increase (decrease) in cash and cash equivalents | 21,879 |
| 8,796 |
Cash and cash equivalents at beginning of period | 161,764 |
| 223,607 |
Cash and cash equivalents at end of period | $ 183,643 |
| $ 232,403 |
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Reconciliation of net income to net cash provided by operating activities: |
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| |
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|
|
Net income | $ 69,893 |
| $ 52,668 |
Adjustments to reconcile net income to net cash provided by operating activities: |
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| |
Depreciation and amortization | 49,323 |
| 28,840 |
Changes in working capital | (61,270) |
| (44,755) |
Litigation settlement | (2,213) |
| (2,082) |
Other | 11,178 |
| (1,240) |
Net cash provided by operating activities | $ 66,911 |
| $ 33,431 |
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