Exhibit 99.1
FOR IMMEDIATE RELEASE BIO-RAD REPORTS FIRST-QUARTER 2009 FINANCIAL RESULTS HERCULES, CA – May 5, 2009 –Bio-Rad Laboratories, Inc. (NYSE: BIO and BIOb), a multinational manufacturer and distributor of life science research and clinical diagnostic products, announced financial results today for the first quarter ended March 31, 2009. First-quarterreported revenues were$400.9 million, down 5.0%compared to $422.2 million reported for the first quarter of 2008.On a currency-neutral basis, quarterly revenuesincreased 3.2% compared to the same period last year.Net income attributable to Bio-Rad for the first quarter was$30.3 million, or $1.10 per share on a fully diluted basis, compared to $26.5 million or $0.96 per share, respectively, during the same period last year. Reflected in operating income are $5.4 million of amortization and purchase accounting adjustments for the first quarter of 2009 associated with the DiaMed acquisition, a decrease of approximately $1.0 million versus the first quarter of 2008. First-quarter gross margin was stronger than usual at 57.1%compared to 53.7% during the same quarter last year.The higher margin in the first quarter of 2009 was the result of favorable sales mix and improved manufacturing efficiencies, as well as some favorable, non-recurring events. “Performance for the first quarter of 2009 shows continued progress in spite of a weakened global economy and currency headwinds,”said Norman Schwartz, Bio-Rad President and Chief Executive Officer. “While there is still uncertainty about the economy, we are encouraged by the resilience of our markets to date.” (more) |
Bio-Rad Reports First-Quarter 2009 Financial Results Page 2 Life Science The Life Science segment net sales for the quarter were $140.3 million, down 9.2% or 3.0% on a currency-neutral basis, compared to the same period last year. Performance of the Life Science segment was negatively impacted by a general slowness in the research market in the U.S. and Europe. In addition, the timing of the delivery of certain process chromatography products in the first quarter last year had an adverse impact on the comparison to the first quarter this year. Sales across a number of product lines in the Life Science segment performed well during the quarter, in particular the Bio-Plex® suspension array system assays and the Company’s real-time polymerase chain reaction (PCR) instruments and reagents. Clinical Diagnostics The Clinical Diagnostics segment reported net sales of $257.5 million for the quarter, down 2.3% compared to the first quarter in 2008.On a currency-neutral basis, sales for the segment increased 7.2%. These results reflect continued growth across all product lines, most notably quality control, diabetes, microbiology, and blood virus testing products. Performance in this segment also benefited from placements of the Company’s 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 5, 2009.Interested parties may access the call by dialing 800-561-2718 (in the U.S.) or 617-614-3525 (international), access number62277042.The live webcast may also 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 51476577 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. (NYSE: 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 First-Quarter 2009 Financial Results 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 over 6,500 people globally and had revenues exceeding $1.7 billion in 2008. For more information, please 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 most recent Annual Report on Form 10-K, 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 (more) |
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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| 2009 |
| 2008 |
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Net sales |
| $ 400,933 |
| $ 422,197 |
Cost of goods sold |
| 172,031 |
| 195,314 |
Gross profit |
| 228,902 |
| 226,883 |
Selling, general and administrative expense |
| 140,313 |
| 139,655 |
Product research and development expense |
| 37,152 |
| 37,489 |
Income from operations |
| 51,437 |
| 49,739 |
Interest expense |
| 7,807 |
| 7,957 |
Foreign exchange (gains) losses, net |
| (774) |
| 2,593 |
Other (income) expense, net |
| 1,159 |
| (193) |
Income before taxes |
| 43,245 |
| 39,382 |
Provision for income taxes |
| (11,202) |
| (10,823) |
Net income |
| 32,043 |
| 28,559 |
Less: Net income attributable to noncontrolling interests |
| (1,778) |
| (2,064) |
Net income attributable to Bio-Rad |
| $ 30,265 |
| $ 26,495 |
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Basic earnings per share: |
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Net income attributable to Bio-Rad |
| $ 1.11 |
| $ 0.98 |
Weighted average common shares |
| 27,321 |
| 26,955 |
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Diluted earnings per share: |
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Net income attributable to Bio-Rad |
| $ 1.10 |
| $ 0.96 |
Weighted average common shares |
| 27,618 |
| 27,538 |
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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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| 2009 |
| 2008 |
Current assets: |
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Cash and cash equivalents |
| $ 192,870 |
| $ 204,524 |
Short-term investments |
| 29,960 |
| 38,950 |
Accounts receivable, net |
| 326,307 |
| 339,653 |
Inventories, net |
| 369,041 |
| 375,616 |
Other current assets |
| 131,744 |
| 135,198 |
Total current assets |
| 1,049,922 |
| 1,093,941 |
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Net property, plant and equipment |
| 294,611 |
| 300,732 |
Goodwill |
| 307,916 |
| 321,820 |
Purchased intangibles, net |
| 211,245 |
| 228,590 |
Other assets |
| 91,614 |
| 92,181 |
Total assets |
| $ 1,955,308 |
| $ 2,037,264 |
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Current liabilities: |
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Notes payable and current maturities of long-term debt |
| $ 6,253 |
| $ 9,578 |
Accounts payable |
| 95,952 |
| 117,982 |
Accrued payroll and employee benefits |
| 91,621 |
| 119,420 |
Sales, income and other taxes payable |
| 36,739 |
| 33,731 |
Other current liabilities |
| 125,314 |
| 137,323 |
Total current liabilities |
| 355,879 |
| 418,034 |
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Long-term debt, net of current maturities |
| 444,209 |
| 445,979 |
Other long-term liabilities |
| 96,921 |
| 102,611 |
Total liabilities |
| 897,009 |
| 966,624 |
Bio-Rad stockholders’equity |
| 1,026,612 |
| 1,040,731 |
Noncontrolling interests |
| 31,687 |
| 29,909 |
Total stockholders’ equity |
| 1,058,299 |
| 1,070,640 |
Total liabilities and stockholders’ equity |
| $ 1,955,308 |
| $ 2,037,264 |
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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, | ||
| 2009 |
| 2008 |
Cash flows from operating activities: |
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Cash received from customers | $ 395,356 |
| $ 436,521 |
Cash paid to suppliers and employees | (375,628) |
| (421,973) |
Interest paid | (8,775) |
| (8,938) |
Income tax payments | (6,012) |
| (6,398) |
Other operating activities | 1,430 |
| (1,389) |
Net cash provided by (used in) operating activities | 6,371 |
| (2,177) |
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Cash flows from investing activities: |
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Payments for acquisitions and long-term investments | (441) |
| (17,106) |
Other investing activities | (12,275) |
| (17,858) |
Net cash used in investing activities | (12,716) |
| (34,964) |
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Cash flows from financing activities: |
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Payments on long-term debt | (1,882) |
| (2,190) |
Other financing activities | (161) |
| 4,979 |
Net cash provided by (used in) financing activities | (2,043) |
| 2,789 |
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Effect of exchange rate changes on cash | (3,266) |
| 2,068 |
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Net decrease in cash and cash equivalents | (11,654) |
| (32,284) |
Cash and cash equivalents at beginning of the period | 204,524 |
| 161,764 |
Cash and cash equivalents at end of period | $ 192,870 |
| $ 129,480 |
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Reconciliation of net income attributable to Bio-Rad to net cash provided by |
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(used in) operating activities: |
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Net income attributable to Bio-Rad | $ 30,265 |
| $ 26,495 |
Adjustments to reconcile net income attributable to Bio-Rad to net cash provided by |
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(used in) operating activities: |
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Depreciation and amortization | 22,327 |
| 23,740 |
Changes in working capital | (46,871) |
| (60,027) |
Other | 650 |
| 7,615 |
Net cash provided by (used in ) operating activities | $ 6,371 |
| $ (2,177) |
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