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 Fourth Quarter and Full Year 2004 Results
Billerica, Massachusetts, January 27, 2005 – Millipore Corporation (NYSE/MIL) announced today that its fourth quarter sales were $225 million, up 4 percent from the same period of 2003. In constant currency, quarterly revenue growth was 1 percent for the quarter.
Fourth quarter earnings totaled $0.49 per share, compared to $0.66 per share in the same quarter of last year. Earnings in each of the fourth quarters included unusual items. In 2004, the fourth quarter results included the impact of the CEO transition costs ($0.02 per share) and the write-off of assets related to terminated R&D projects ($0.05 per share). Also included in the fourth quarter was a lower than expected income tax rate that increased earnings $0.07 per share. There is an open question as to whether some or all of this tax benefit should have been recorded in an earlier period. The Company expects to resolve this question in the near future. The fourth quarter earnings in 2003 included charges related to severance costs and fixed asset write-offs (reducing earnings by $0.11 per share) and the reversal of tax valuation allowances (increasing earnings by $0.24 per share).
Millipore’s fourth quarter revenue growth by market area was as follows($’s in millions):
Revenues by Market Area | Q4 2004 | Q4 2003 | % Growth | ||||||
Biotechnology | $ | 71 | $ | 69 | 3 | % | |||
Life science | 28 | 29 | (2 | %) | |||||
Other bioscience | 103 | 102 | — | ||||||
Total constant currency net sales | 202 | 200 | 1 | % | |||||
Foreign exchange | 23 | 16 | |||||||
Total U.S. dollar net sales | $ | 225 | $ | 216 | 4 | % | |||
Millipore’s fourth quarter revenue growth by geography was as follows($’s in millions):
Revenues by Geographic Area | Q4 2004 | Q4 2003 | % Growth U.S. Dollars | % Growth Constant Currency | ||||||||
Americas | $ | 91 | $ | 89 | 3 | % | 2 | % | ||||
Europe | 92 | 86 | 7 | % | (1 | %) | ||||||
Asia/Pacific | 42 | 41 | 3 | % | — | |||||||
Total | $ | 225 | $ | 216 | 4 | % | 1 | % | ||||
For the full year 2004, revenues were $883 million, up 10 percent from 2003. In constant currency, full year growth was 6 percent.
For the full year, earnings were $2.10 per share for 2004 compared with $2.06 per share last year. Earnings for 2004 included the impact of the CEO transition costs ($0.06 per share) and the write-off of assets related to terminated R&D projects ($0.05 per share). Also included was a lower than expected income tax rate that increased earnings $0.07 per share. There is an open question as to whether some or all of this tax benefit should have been recorded in an earlier period. The Company expects to resolve this question in the near future. Earnings for 2003 included charges related to severance costs and fixed asset write-offs (reducing earnings by $0.11 per share), the reversal of tax valuation allowances (increasing earnings by $0.24 per share) and other unusual credits (increasing earnings by $0.03).
Cash flow from operations was $167 million in 2004 compared to $132 million in 2003.
Millipore’s full year revenue growth by market area was as follows($’s in millions):
Revenues by Market Area | 2004 | 2003 | % Growth | ||||||
Biotechnology | $ | 286 | $ | 262 | 9 | % | |||
Life science | 115 | 108 | 6 | % | |||||
Other bioscience | 408 | 395 | 3 | % | |||||
Total constant currency net sales | 809 | 765 | 6 | % | |||||
Foreign exchange | 74 | 35 | |||||||
Total U.S. dollar net sales | $ | 883 | $ | 800 | 10 | % | |||
Millipore’s full year revenue growth by geography was as follows($’s in millions):
Revenues by Geographic Area | 2004 | 2003 | % Growth U.S. Dollars | % Growth Constant Currency | ||||||||
Americas | $ | 367 | $ | 336 | 9 | % | 9 | % | ||||
Europe | 354 | 319 | 11 | % | 2 | % | ||||||
Asia/Pacific | 162 | 145 | 12 | % | 5 | % | ||||||
Total | $ | 883 | $ | 800 | 10 | % | 6 | % | ||||
Use of Non-GAAP Financial Measures
In addition to analyzing U.S. GAAP financial results, management also analyzes “non-GAAP” and “pro forma” financial measures as we believe these measures may allow for a better understanding of the underlying business trends. “Constant currency” is a non-GAAP measure whereby foreign currency balances are translated, in all periods presented, at Millipore’s predetermined budgeted exchange rates for 2004, thus excluding the impact of fluctuations in the actual foreign currency rates. Pro forma basis financial results reflect U.S. GAAP results, translated at actual rates of exchange and adjusted for unusual or non-operating items.
Quarterly Earnings Call
Millipore will have a Live Webcast Quarterly Earnings call today, January 27, 2005 at 5:30 p.m., Eastern 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, high technology company that provides technologies, tools and services for the 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
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Net sales | $ | 225,402 | $ | 215,750 | $ | 883,263 | $ | 799,622 | ||||||||
Cost of sales | 110,573 | 106,751 | 412,129 | 369,174 | ||||||||||||
Gross profit | 114,829 | 108,999 | 471,134 | 430,448 | ||||||||||||
Selling, general and administrative expenses | 72,017 | 64,950 | 270,796 | 246,819 | ||||||||||||
Research and development expenses | 15,302 | 16,477 | 62,485 | 58,385 | ||||||||||||
Restructuring and other | — | — | — | (1,400 | ) | |||||||||||
Operating income | 27,510 | 27,572 | 137,853 | 126,644 | ||||||||||||
Interest income | 848 | 830 | 2,073 | 2,035 | ||||||||||||
Interest expense | (2,031 | ) | (4,188 | ) | (9,447 | ) | (16,505 | ) | ||||||||
Income before income taxes | 26,327 | 24,214 | 130,479 | 112,174 | ||||||||||||
Provision (benefit) for income taxes | 1,489 | (8,413 | ) | 24,923 | 11,378 | |||||||||||
Net income | $ | 24,838 | $ | 32,627 | $ | 105,556 | $ | 100,796 | ||||||||
Diluted net income per share | $ | 0.49 | $ | 0.66 | $ | 2.10 | $ | 2.06 | ||||||||
Diluted weighted average shares outstanding | 50,373 | 49,416 | 50,240 | 49,046 |
Geoffrey E. Helliwell
Treasurer
(800) 225-3384 or (978) 715-1041
Millipore Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
December 31, 2004 | December 31, 2003 | |||||
Assets | ||||||
Cash and cash equivalents | $ | 152,144 | $ | 147,027 | ||
Accounts receivable, net | 181,911 | 174,979 | ||||
Inventories | 143,714 | 137,757 | ||||
Deferred income taxes | 31,718 | 51,092 | ||||
Other current assets | 8,839 | 5,507 | ||||
Total current assets | 518,326 | 516,362 | ||||
Property, plant and equipment, net | 351,004 | 316,890 | ||||
Deferred income taxes | 94,451 | 77,226 | ||||
Intangible assets, net | 19,584 | 25,348 | ||||
Goodwill | 9,433 | 9,433 | ||||
Other assets | 7,745 | 6,014 | ||||
Total assets | $ | 1,000,543 | $ | 951,273 | ||
Liabilities and shareholders’ equity | ||||||
Current portion of long-term debt | $ | — | $ | 75,000 | ||
Accounts payable | 66,970 | 60,836 | ||||
Accrued expenses | 83,320 | 81,587 | ||||
Total current liabilities | 150,290 | 217,423 | ||||
Long-term debt | 147,000 | 216,000 | ||||
Other liabilities | 62,675 | 56,809 | ||||
Shareholders’ equity | 640,578 | 461,041 | ||||
Total liabilities and shareholders’ equity | $ | 1,000,543 | $ | 951,273 | ||
Geoffrey E. Helliwell
Treasurer
(800) 225-3384 or (978) 715-1041