Exhibit 99.1
Investor Contact
| | Media Contact
|
Geoffrey Helliwell | | Thomas Anderson |
Treasurer | | Vice President |
(978) 715—1041 | | Corporate Communications |
(800) 225—3384 | | (978) 715-1043 |
Geoffrey_Helliwell@Millipore.com | | (800) 225-3384 |
| | | Thomas_Anderson@Millipore.com |
Millipore Reports Second Quarter Earnings of $0.46 per Share
On 12 Percent Revenue Growth
Billerica, Massachusetts, July 16, 2003 – Millipore Corporation (NYSE/MIL) announced today that its second quarter sales were $196 million, up 12 percent from the same period last year. Sales growth in local currencies was 3 percent. Second quarter earnings from continuing operations were $0.46 per share.
Fran Lunger, Millipore’s Chairman, CEO and President said: “We achieved our earnings guidance for the second quarter while generating $35 million in cash from operations. In terms of revenue growth, biotechnology, about 34 percent of overall revenues, grew less than 1 percent in local currencies during the second quarter. This is primarily a timing issue related to the scheduling of manufacturing campaigns and plant build-outs by our customers. Based on industry trends and current customer plans we expect strong second half 2003 growth in biotechnology. Our long-term success in biotechnology depends, ultimately, on the success of our customers in new drug approvals and commercialization of those drugs. We are very optimistic given the current outlook for the approval and market acceptance of new biotherapeutics.”
Lunger noted: “Life sciences, comprising 14 percent of our business, grew 2 percent in local currencies. The decline in genomics product sales and a slowdown in sales of life science lab water systems affected life science growth rates. Our “other bioscience” business, 52 percent of overall revenues, grew at 5 percent in local currencies, driven primarily by laboratory and process consumable sales to pharmaceutical customers.”
Millipore’s second quarter revenue growth by geography from continuing operations was as follows($’s in millions):
Revenues by Geographic Area
| | Q2, 2003
| | Q2, 2002
| | % Growth
| | | % Growth
Local Currency
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Americas | | $ | 84 | | $ | 80 | | 6 | % | | 5 | % |
Europe | | | 76 | | | 64 | | 19 | % | | (1 | %) |
Asia/Pacific | | | 36 | | | 32 | | 11 | % | | 5 | % |
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Total | | $ | 196 | | $ | 176 | | 12 | % | | 3 | % |
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Use of Non-GAAP Financial Measures
All references to “local currencies” represent the foreign currency balances translated, in all periods presented, at Millipore’s predetermined budgeted exchange rates for 2003, thus excluding the impact of fluctuations in the actual foreign currency rates. The Company’s management uses this presentation for internal evaluation of the financial performance of the Company because it believes that the local currency results provide a clearer presentation of underlying business trends.
Quarterly Earnings Call
Millipore will have a Live Webcast Quarterly Earnings call today, July 16, 2003 at 5:30 p.m., Eastern Daylight Time. Please visit the Millipore web site at www.millipore.com for details about this event. The replay of the webcast, as well as a transcript of the conference call, will be available online the day after the event.
About Millipore
Millipore is a multinational, bioscience company that provides technologies, tools and services for the discovery, development and production of new therapeutic drugs. It serves the life science research, biotechnology and pharmaceutical industries. For more information about Millipore visit www.millipore.com.
Millipore Forward Looking Statement Disclaimer
The matters discussed herein, as well as in future oral and written statements by management of Millipore Corporation that are forward-looking statements, are based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. Potential risks and uncertainties that could affect Millipore’s future operating results include, without limitation, foreign exchange rates; regulatory delay in the approval of new therapeutics and their ultimate commercial
success; further consolidation of drug manufacturers; competitive factors such as new membrane technology; lack of availability of raw materials or component products on a timely basis; inventory risks due to shifts in market demand; change in product mix; conditions in the economy in general and in the bioscience markets in particular; potential environmental liabilities; the inability to utilize technology in current or planned products due to overriding rights by third parties; difficulties inherent in research and development activities; and the risk factors listed from time to time in Millipore’s filings with the SEC.
Millipore Corporation
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
| | | Three Months Ended June 30,
| | | Six Months Ended June 30,
| |
| | | 2003
| | | 2002
| | | 2003
| | | 2002
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Net sales | | $ | 196,367 | | | $ | 176,124 | | | $ | 383,819 | | | $ | 342,756 | |
Cost of sales | | | 88,535 | | | | 74,819 | | | | 170,860 | | | | 144,050 | |
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Gross profit | | | 107,832 | | | | 101,305 | | | | 212,959 | | | | 198,706 | |
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Selling, general and administrative expenses | | | 61,814 | | | | 54,278 | | | | 121,839 | | | | 108,844 | |
Research and development expenses | | | 14,069 | | | | 13,531 | | | | 27,878 | | | | 25,918 | |
Restructuring and other charges | | | (604 | ) | | | 500 | | | | (604 | ) | | | 500 | |
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Operating income | | | 32,553 | | | | 32,996 | | | | 63,846 | | | | 63,444 | |
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Interest income | | | 379 | | | | 282 | | | | 763 | | | | 522 | |
Interest expense | | | (4,189 | ) | | | (4,610 | ) | | | (8,337 | ) | | | (10,093 | ) |
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Income before income taxes | | | 28,743 | | | | 28,668 | | | | 56,272 | | | | 53,873 | |
Provision for income taxes | | | 6,467 | | | | 6,307 | | | | 12,661 | | | | 11,852 | |
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Income from continuing operations | | | 22,276 | | | | 22,361 | | | | 43,611 | | | | 42,021 | |
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Income on disposal of discontinued operations, net of taxes | | | — | | | | — | | | | — | | | | 2,900 | |
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Net income | | $ | 22,276 | | | $ | 22,361 | | | $ | 43,611 | | | $ | 44,921 | |
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Diluted income per share: | | | | | | | | | | | | | | | | |
Continuing operations | | $ | 0.46 | | | $ | 0.46 | | | $ | 0.90 | | | $ | 0.87 | |
Discontinued operations | | | — | | | | — | | | | — | | | | 0.06 | |
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Net income | | $ | 0.46 | | | $ | 0.46 | | | $ | 0.90 | | | $ | 0.93 | |
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Diluted weighted average shares outstanding | | | 48,834 | | | | 48,476 | | | | 48,676 | | | | 48,477 | |
Geoffrey E. Helliwell
Treasurer
(800) 225-3384 or (978) 715-1041
Millipore Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
| | | June 30,
2003
| | December
31, 2002
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Assets | | | | | | |
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Cash and cash equivalents | | $ | 120,874 | | $ | 101,242 |
Accounts receivable, net | | | 174,573 | | | 160,462 |
Inventories | | | 127,626 | | | 111,332 |
Deferred income taxes | | | 11,694 | | | 11,694 |
Other current assets | | | 7,144 | | | 5,481 |
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Total current assets | | | 441,911 | | | 390,211 |
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Property, plant and equipment, net | | | 280,737 | | | 262,604 |
Deferred income taxes | | | 87,824 | | | 87,824 |
Intangible assets, net | | | 26,793 | | | 28,064 |
Goodwill | | | 9,646 | | | 9,646 |
Other assets | | | 6,833 | | | 7,881 |
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Total assets | | $ | 853,744 | | $ | 786,230 |
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Liabilities and shareholders’ equity | | | | | | |
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Notes payable | | $ | 2,256 | | $ | 1,500 |
Accounts payable | | | 56,675 | | | 57,596 |
Accrued expenses | | | 62,486 | | | 58,431 |
Accrued retirement plan contributions | | | 6,320 | | | 8,438 |
Accrued income taxes payable | | | 10,012 | | | 8,464 |
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Total current liabilities | | | 137,749 | | | 134,429 |
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Long-term debt | | | 327,000 | | | 334,000 |
Other liabilities | | | 32,540 | | | 30,297 |
Shareholders’ equity | | | 356,455 | | | 287,504 |
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Total liabilities and shareholders’ equity | | $ | 853,744 | | $ | 786,230 |
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Geoffrey E. Helliwell
Treasurer
(800) 225-3384 or (978) 715-1041
