Exhibit 99.1
| Investor Contact | | Media Contact |
Geoffrey Helliwell Treasurer (978) 715-1041 (800) 225-3384 Geoffrey_Helliwell@Millipore.com | | Thomas Anderson Vice President Corporate Communications (978) 715-1043 (800) 225-3384 Thomas_Anderson@Millipore.com |
Millipore Reports Third Quarter Earnings of $0.50 per Share
On 14 Percent Revenue Growth
Billerica, Massachusetts, October 15, 2003 – Millipore Corporation (NYSE/MIL) announced today that its third quarter sales were $200 million, up 14 percent from the same period last year. Sales growth in local currencies was 9 percent. Third quarter earnings from continuing operations were $0.50 per share which includes a $0.01 per share gain on the sale of real estate.
Fran Lunger, Millipore’s Chairman, CEO and President said: “Our third quarter revenue growth was a combination of 16 percent local currency growth in biotechnology and 5 percent local currency growth in both life sciences and other bioscience. The strong performance in biotechnology reflects an increase in demand for process chromatography media for the validation of new processes for existing drugs, systems for the initial manufacturing ramp-up of drugs currently in late stage clinical trials and consumables used in the manufacture of commercialized drugs.”
Lunger also noted; “Based on early indications in the fourth quarter, we do not expect to achieve biotechnology revenue growth at the same level as the third quarter. Long term growth prospects in biotechnology, given our market position and the number of new biotheraputics in the pipeline, remain strong.”
Millipore’s third quarter revenue growth by geography from continuing operations was as follows($’s in millions):
Revenues by Geographic Area
| | Q3, 2003
| | Q3, 2002
| | % Growth
| | | % Growth
Local Currency
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Americas | | $ | 85 | | $ | 80 | | 7 | % | | 7 | % |
Europe | | | 82 | | | 65 | | 25 | % | | 12 | % |
Asia/Pacific | | | 33 | | | 31 | | 9 | % | | 6 | % |
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Total | | $ | 200 | | $ | 176 | | 14 | % | | 9 | % |
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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, October 15, 2003 at 5:30 p.m., Eastern Daylight Time. Please visit the Millipore web site atwww.millipore.com for details about this event. The replay of the webcast 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 visitwww.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 September 30,
| | | Nine Months Ended September 30,
| |
| | | 2003
| | | 2002
| | | 2003
| | | 2002
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Net sales | | $ | 200,053 | | | $ | 175,616 | | | $ | 583,872 | | | $ | 518,372 | |
Cost of sales | | | 91,563 | | | | 76,795 | | | | 262,423 | | | | 220,845 | |
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Gross profit | | | 108,490 | | | | 98,821 | | | | 321,449 | | | | 297,527 | |
Selling, general and administrative expenses | | | 60,030 | | | | 54,226 | | | | 181,869 | | | | 163,070 | |
Research and development expenses | | | 14,030 | | | | 12,940 | | | | 41,908 | | | | 38,858 | |
Restructuring and other | | | (796 | ) | | | 525 | | | | (1,400 | ) | | | 1,025 | |
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Operating income | | | 35,226 | | | | 31,130 | | | | 99,072 | | | | 94,574 | |
Loss on investments | | | — | | | | (2,344 | ) | | | — | | | | (2,344 | ) |
Interest income | | | 441 | | | | 354 | | | | 1,205 | | | | 876 | |
Interest expense | | | (3,980 | ) | | | (4,942 | ) | | | (12,317 | ) | | | (15,035 | ) |
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Income before income taxes | | | 31,687 | | | | 24,198 | | | | 87,960 | | | | 78,071 | |
Provision for income taxes | | | 7,130 | | | | 5,324 | | | | 19,791 | | | | 17,176 | |
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Income from continuing operations | | | 24,557 | | | | 18,874 | | | | 68,169 | | | | 60,895 | |
Income on disposal of discontinued operations, net of taxes | | | — | | | | — | | | | — | | | | 2,900 | |
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Net income | | $ | 24,557 | | | $ | 18,874 | | | $ | 68,169 | | | $ | 63,795 | |
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Diluted income per share: | | | | | | | | | | | | | | | | |
Continuing operations | | $ | 0.50 | | | $ | 0.39 | | | $ | 1.39 | | | $ | 1.26 | |
Discontinued operations | | | — | | | | — | | | | — | | | | 0.06 | |
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Net income | | $ | 0.50 | | | $ | 0.39 | | | $ | 1.39 | | | $ | 1.32 | |
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Diluted weighted average shares outstanding | | | 49,356 | | | | 48,405 | | | | 48,899 | | | | 48,441 | |
Geoffrey E. Helliwell
Treasurer
(800) 225-3384 or (978) 715-1041
Millipore Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
| | | September 30,
2003
| | December 31,
2002
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Assets | | | | | | |
Cash and cash equivalents | | $ | 153,104 | | $ | 101,242 |
Accounts receivable, net | | | 177,914 | | | 160,462 |
Inventories | | | 132,963 | | | 111,332 |
Deferred income taxes | | | 11,694 | | | 11,694 |
Other current assets | | | 7,212 | | | 5,481 |
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Total current assets | | | 482,887 | | | 390,211 |
Property, plant and equipment, net | | | 293,247 | | | 262,604 |
Deferred income taxes | | | 87,824 | | | 87,824 |
Intangible assets, net | | | 25,933 | | | 28,064 |
Goodwill | | | 9,433 | | | 9,646 |
Other assets | | | 6,779 | | | 7,881 |
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Total assets | | $ | 906,103 | | $ | 786,230 |
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Liabilities and shareholders’ equity | | | | | | |
Notes payable | | $ | — | | $ | 1,500 |
Accounts payable | | | 62,409 | | | 57,596 |
Accrued expenses | | | 66,200 | | | 58,431 |
Accrued retirement plan contributions | | | 7,933 | | | 8,438 |
Accrued income taxes payable | | | 14,233 | | | 8,464 |
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Total current liabilities | | | 150,775 | | | 134,429 |
Long-term debt | | | 330,000 | | | 334,000 |
Other liabilities | | | 33,257 | | | 30,297 |
Shareholders’ equity | | | 392,071 | | | 287,504 |
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Total liabilities and shareholders’ equity | | $ | 906,103 | | $ | 786,230 |
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Geoffrey E. Helliwell
Treasurer
(800) 225-3384 or (978) 715-1041
