FOR IMMEDIATE RELEASE
Bio-Rad Laboratories Reports First-Quarter Financial Results
HERCULES, CA - May 6, 2004 - Bio-Rad Laboratories, Inc. (AMEX: BIO
and BIOb), a multinational manufacturer and distributor of life
science research products and clinical diagnostics, announced
financial results today for the first quarter ended March 31, 2004.
First quarter net sales were $266.6 million, up 8.4 percent
compared to the $246.0 million reported for the same quarter of
2003. This growth was largely the result of currency effects. Net
income for the quarter was $22.0 million compared to $26.4 million
in the first quarter of last year. The reduction in income can be
attributed primarily to the Company's planned investments in
infrastructure and new product development as well as the expense
for purchased in-process R&D associated with the acquisition of the
assets of Hematronix, Inc.
First Quarter Highlights
- Overall Company net sales for the first quarter improved by
8.4 percent to reach $266.6 million compared to $246.0 million
reported in the first quarter of 2003. On a currency-neutral
basis, revenues were essentially flat versus the first quarter of
2003.
- Basic earnings were $0.86 per share, or $0.83 per share on a
diluted basis, compared to basic earnings per share of $1.04 and
diluted earnings per share of $1.01 in the same period of 2003.
During the quarter, the Company recorded a write-down on an
investment of $2.4 million. The impact of this write-down on
earnings per share is approximately $0.09 per share on a diluted
basis before tax.
- Life Science segment net sales for the quarter were $125.6
million, 6.9 percent higher than the comparable period last year.
On a currency neutral basis, segment sales declined by 2.3 percent
for the quarter. Solid performers in this segment included
products used for process chromatography, imaging, nucleic acid
amplification, and multiplex immunoassays while overall performance
in the Life Science segment was negatively impacted by price
declines in the BSE (bovine spongiform encephalopathy or mad cow
disease) business and sales volume decreases of confocal microscopy
products versus last year.
- The Company's rapid TeSeEr test used for the detection of BSE
was recently licensed by the United States Department of
Agriculture (USDA) for use in the National Veterinary Service
Laboratories (NVSL) network as part of the USDA's newly enhanced
BSE testing program. Furthermore, the Company has recently
received notification that its test has been chosen for use in all
of the laboratories performing BSE surveillance in the United
States. It is estimated that approximately 250,000 animals will be
tested in this program over the next 12-18 months.
(more)
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Bio-Rad Reports First Quarter 2004
Page 2
- The Clinical Diagnostics segment reported net sales of $138.9
million for the quarter, up 10.1 percent compared to the first
quarter of 2003, or 1.0 percent excluding currency effects. These
results were the result of growth in several areas including
autoimmune testing, quality-control management, and diabetes
monitoring, offset by timing differences of large customer orders
in the blood virus business.
- In March, the Company purchased the assets of Hematronix Inc.
for approximately $17 million in cash. This acquisition further
enhances Bio-Rad's leadership position in the quality-control
management industry.
"The quarterly financial results reflect strength in many of our
product families, offset by challenges in our BSE business and the
Japanese market. The underlying fundamentals of Bio-Rad remain
strong," said Norman Schwartz, President and Chief Executive
Officer. "Our outlook is positive as we have a number of exciting
new products and opportunities in the pipeline."
Management will discuss these results in a conference call at 2:00
p.m. PT (5:00 p.m. ET) May 6, 2004. Interested parties can access
the call by dialing (888) 482-0024 (in the U.S.), or (617) 801-9702
(international), access number 98190073. The live web cast 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 55549918, for seven days following
the call and the web cast can be accessed at http://www.bio-rad.com
for 30 days.
Bio-Rad Laboratories, Inc. is a multinational manufacturer and
distributor of life science research products and clinical
diagnostics. It is based in Hercules, California, and serves more
than 70,000 research and industry customers worldwide through a
network of more than 30 wholly owned subsidiary offices.
Various statements made within this press release may constitute
"forward-looking statements" for purposes of the Securities and
Exchange Commission's "safe harbor" provisions under the Private
Securities Litigation Reform Act of 1995 and Rule 3b-6 under the
Securities Exchange Act of 1934. The forward-looking statements
contained herein involve risks and uncertainties that could cause
results to differ materially from the Company's expectations.
For more information contact:
Christine Tsingos, Vice President and Chief Financial Officer, or
Ron Hutton, Treasurer
Bio-Rad Laboratories, Inc.
Phone: (510) 724-7000
E-mail: investor_relations@bio-rad.com
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Bio-Rad Laboratories, Inc.
First Quarter 2004
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(UNAUDITED)
Three Months Ended
March 31,
2004 2003
-------- --------
Net sales $266,645 $245,969
Cost of goods sold 115,866 103,256
-------- --------
Gross profit 150,779 142,713
Selling, general and administrative
expense 88,492 77,159
Product research and development
expense 25,224 21,388
Purchased in-process research and
development expense 900 -
Interest expense 5,050 4,651
Foreign exchange losses, net 202 769
Other (income) expense, net 216 (604)
-------- --------
Income before Taxes 30,695 39,350
Provision for income taxes (8,717) (12,986)
-------- --------
Net income $ 21,978 $26,364
======== ========
Basic earnings per share $0.86 $1.04
======== ========
Weighted average common shares 25,624 25,284
======== ========
Diluted earnings per share $0.83 $1.01
======== ========
Adjusted weighted average shares 26,444 26,057
======== ========
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Bio-Rad Laboratories, Inc.
Summary Condensed Consolidated Balance Sheets
(In thousands)
(UNAUDITED)
At March 31, At December 31,
2004 2003
--------- ---------
Current assets:
Cash and cash equivalents $ 141,548 $ 148,642
Accounts receivable, net 228,925 234,085
Inventories, net 190,034 190,258
Prepaid expenses, taxes and other current assets 102,442 97,893
--------- ---------
Total current assets 662,949 670,878
Net property, plant and equipment 182,964 179,123
Goodwill, net 72,741 69,503
Other assets 78,909 67,354
--------- ---------
Total assets $ 997,563 $ 986,858
========= =========
Current liabilities:
Notes payable and current maturities of
long-term debt $ 8,530 $ 10,423
Accounts payable 57,033 53,995
Accrued payroll and employee benefits 59,761 71,650
Sales, income and other taxes payable 21,752 20,833
Other current liabilities 74,120 77,425
--------- ---------
Total current liabilities 221,196 234,326
Long-term debt, net of current maturities 226,171 225,835
Deferred tax liabilities 14,581 13,991
Other long-term liabilities 17,293 16,899
Stockholders' equity 518,322 495,807
--------- ---------
Total liabilities and stockholders' equity $ 997,563 $ 986,858
========= =========
Certain items have been reclassified to conform to the current year
presentation.
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Bio-Rad Laboratories, Inc.
Summary Condensed Consolidated Statement of Cash Flows
(In thousands)
(UNAUDITED)
Period Ended March 31,
2004 2003
--------- ---------
Cash flows from operating activities:
Cash received from customers $ 270,680 $ 250,079
Cash paid to suppliers and employees (226,543) (207,392)
Interest paid (9,360) (8,529)
Income tax payments (9,682) (12,537)
Miscellaneous receipts 2,211 99
--------- ---------
Net cash provided by operating activities 27,306 21,720
Cash flows from investing activities:
Capital expenditures, net (13,417) (10,981)
Other investing activities (21,252) (9,747)
--------- ---------
Net cash used in investing activities (34,669) (20,728)
Cash flows from financing activities:
Long-term borrowings 0 6,000
Payments on long-term debt (117) (13,035)
Other financing activities 93 4,623
--------- ---------
Net cash used in financing activities (24) (2,412)
Effect of exchange rate changes on cash 293 (1,090)
--------- ---------
Net decrease in cash and cash equivalents (7,094) (2,510)
Cash and cash equivalents at beginning of period 148,642 27,733
--------- ---------
Cash and cash equivalents at end of period $ 141,548 $ 25,223
========= =========
Reconciliation of net income to net cash provided by operating
activities:
Net Income $ 21,978 $ 26,364
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 10,500 9,896
Changes in working capital (2,014) (22,835)
Other (3,158) 8,295
--------- ---------
Net cash provided by operating activities $ 27,306 $ 21,720
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