SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
APRIL 29, 2005
Date of Report
(Date of earliest event reported)
NEW BRUNSWICK SCIENTIFIC CO., INC.
(Exact Name of Registrant as Specified in Charter)
NEW JERSEY 0-6994 22-1630072
(State or Other
Jurisdiction of (Commission File Number) (IRS Employer
Identification No.)
Incorporation)
44 TALMADGE ROAD, EDISON, NJ 08818-4005
(Address of Principal Executive Offices) (ZIP Code)
Registrant's telephone number, including area code: (732) 287-1200
(Former Name or Former Address, if Changed Since Last Report)
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
NEW BRUNSWICK SCIENTIFIC CO., INC.
P.O. Box 4005 - 44 Talmadge Road - Edison, NJ 08818-4005 U.S.A.
INVESTOR CONTACTS:
Samuel Eichenbaum . . . . . . . . . . Matthew J. Dennis, CFA
Vice President, Finance and Treasurer NBS Investor Relations
New Brunswick Scientific Co., Inc.. . Clear Perspective Group, LLC
732.650.2500. . . . . . . . . . . . . 440.353.0552
same@nbsc.com . . . . . . . . . . . . mdennis@cpg-llc.com
FOR IMMEDIATE RELEASE
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NEW BRUNSWICK SCIENTIFIC REPORTS FIRST-QUARTER 2005 RESULTS
EDISON, NEW JERSEY, APRIL 29, 2005-New Brunswick Scientific Co., Inc. (NBS)
(NASDAQ: NBSC), today announced results for the 2005 first quarter ended April
2, 2005.
Net sales for 2005's first three months increased to a first quarter record of
$16.1 million, versus $14.6 million for the 2004 first quarter as a result of a
21.7% increase in international sales while domestic sales decreased 3.7%. Net
income for the quarter increased to $407,000 from $280,000 for the comparable
year-ago period. Diluted earnings per share rose to $0.05, up from the $0.03 per
share reported for last year's first quarter. The increase in net income was
favorably impacted by two non-operating items: the change in the fair value of
the Company's interest rate swaps and foreign exchange gains. Net income in the
2005 quarter benefited from a lower effective income tax rate when compared with
the rate utilized in the 2004 quarter. Income from operations for the current
quarter declined, as discussed below.
Gross margin contracted during the quarter due primarily to product mix and the
Company's aggressive pricing strategy, which is aimed at gaining market share
for its products in certain markets, partially offset by higher absorption of
overhead as a result of the increased volume. Gross margin for the period was
39.1% compared with 39.7% in fourth-quarter 2004 and 40.6% in first-quarter
2004. First-quarter 2005 selling, general and administrative expenses decreased
as a percentage of sales to 28.1% from 29.2% in 2004's initial three months,
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Despite additional expenses related to the Company's ongoing efforts to comply
with Section 404 of the Sarbanes-Oxley Act. Research, development and
engineering expenses increased as a percentage of sales to 7.1% from 6.2% in the
2004 first-quarter in support of the Company's new-product development program.
Commenting on the financial results, NBS Chairman David Freedman stated: "This
year's opening quarter reflected a continuation of the industry conditions
experienced in 2004. We realized increased shipments of fermentation and cell
culture equipment, ultra-low temperature freezers and CO2 incubators during the
period with new-order intake up slightly from last year's pace.
"We have an aggressive new-product development schedule underway designed to
enhance shareholder value. As a result, we increased our research, development
and engineering investments by nearly 26% compared with last year's first
quarter. We intend to introduce several new products at the upcoming American
Society of Microbiology meeting in Atlanta and also expect to introduce
additional new products in the third and fourth quarters. We continue to
experience excellent results in our export markets but remain concerned
regarding the US market for the balance of 2005."
To be added to New Brunswick Scientific's e-mail distribution list, please click
on the link below:
HTTP://WWW.CLEARPERSPECTIVEGROUP.COM/CLEARSITE/NBSC/EMAILOPTIN.HTML
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ABOUT NEW BRUNSWICK SCIENTIFIC
New Brunswick Scientific Co., Inc., is a leading global provider of a
comprehensive line of research equipment and scientific instrumentation for use
in the life science industry. The Company's products are used in the creation,
maintenance and control of physical and biochemical environments required for
the growth, detection and storage of microorganisms for medical, biological and
chemical applications, as well as environmental research and commercial product
development. NBS is a forerunner in the research and development of pioneering
equipment to meet the challenges of new areas of advancement in life science.
Established in 1946, New Brunswick Scientific is headquartered in Edison, New
Jersey, with sales and distribution facilities strategically located in the
United States, Europe and Asia. For more information, please visit www.nbsc.com
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This document contains "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
may be identified by words such as "expects," "anticipates," "intends," "plans,"
"believes," "seeks," "estimates," "will" or words of similar meaning and
include, but are not limited to, statements about the expected future business
and financial performance of the Company. The forward-looking statements involve
a number of risks and uncertainties, including but not limited to, changes in
economic conditions, demand for the Company's products, pricing pressures,
intense competition in the industries in which the Company operates, the need
for the Company to keep pace with technological developments and respond in a
timely manner to changes in customer needs, the Company's dependence on
third-party suppliers, the effect on foreign sales of currency fluctuations,
acceptance of new products, the labor relations of the Company and its customers
and other factors identified in the Company's Securities and Exchange Commission
filings. Forward-looking statements are based on management's current
expectations and assumptions, which are inherently subject to uncertainties,
risks and changes in circumstances that are difficult to predict. Actual
outcomes and results may differ materially from these expectations and
assumptions due to changes in global political, economic, business, competitive,
market, regulatory and other factors. The Company undertakes no obligation to
publicly update or review any forward-looking information, whether as a result
of new information, future developments or otherwise.
--FINANCIAL RESULTS FOLLOW--
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NEW BRUNSWICK SCIENTIFIC CO., INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per-share amounts)
(Unaudited)
THREE MONTHS ENDED
APRIL 2, 2005 APRIL 3, 2004
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RESTATED*
Net sales . . . . . . . . . . . . . . . . . . . . . . $ 16,108 $ 14,622
Operating costs and expenses:
Cost of sales . . . . . . . . . . . . . . . . . . . 9,806 8,691
Selling, general and administrative expenses. . . . 4,522 4,272
Research, development and
engineering expenses. . . . . . . . . . . . . . . . . 1,137 903
-------------------- ---------------
Total operating costs and expenses. . . . . . . . . . 15,465 13,866
-------------------- ---------------
Income from operations. . . . . . . . . . . . . . . . 643 756
Other income (expense):
Interest income . . . . . . . . . . . . . . . . . . 53 18
Interest expense. . . . . . . . . . . . . . . . . . (36) (211)
Other, net. . . . . . . . . . . . . . . . . . . . . 19 (64)
-------------------- ---------------
36 (257)
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Income before income tax expense. . . . . . . . . . . 679 499
Income tax expense. . . . . . . . . . . . . . . . . . 272 219
-------------------- ---------------
Net income. . . . . . . . . . . . . . . . . . . . . . $ 407 $ 280
==================== ===============
Basic income per share. . . . . . . . . . . . . . . . $ 0.05 $ 0.03
==================== ===============
Diluted income per share. . . . . . . . . . . . . . . $ 0.05 $ 0.03
==================== ===============
Basic weighted average number of shares outstanding . 8,896 8,650
==================== ===============
Diluted weighted average number of shares outstanding 8,990 8,794
==================== ===============
SELECTED CONSOLIDATED BALANCE SHEET ITEMS
(Dollars in thousands)
(Unaudited)
APRIL 2, 2005 DECEMBER 31, 2004
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Cash and cash equivalents . . . . . . . . . $ 9,672 $ 10,846
Accounts receivable, net. . . . . . . . . . 12,434 11,332
Inventories . . . . . . . . . . . . . . . . 12,973 12,139
Property, plant and equipment, net. . . . . 6,328 6,495
Total assets. . . . . . . . . . . . . . . . 54,770 53,795
Accounts payable and accrued expenses . . . 8,839 7,592
Long-term debt, net of current installments 5,772 6,022
Shareholders' equity. . . . . . . . . . . . 36,124 35,955
Working capital . . . . . . . . . . . . . . 27,292 27,198
Current ratio . . . . . . . . . . . . . . . 3.6 to 1 3.9 to 1
*RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS:
On March 21, 2005, the Company announced that certain of its historical
financial statements required restatement because of a misapplication of
Statement No. 133 "Accounting for Derivative Instruments and Hedging Activities"
(SFAS No. 133) as it applies to three interest rate swaps that were entered into
in 1999 and 2004 to fix the interest rates on variable rate debt incurred
primarily for acquisitions in 1999 and 2003. The required changes affected the
previously filed financial statements for the years ended December 31, 2001,
2002 and 2003 as well as for the 2003 quarters and the 2004 quarters through
October 2, 2004. The restatement did not affect the Company's reported cash and
cash equivalents or income (loss) from operations in any of the above periods.
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