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
AUGUST 10, 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
Incorporation) Identification No.)
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)
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ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
[GRAPHIC OMITED]
800.631.5417 - 732.287.1200 - fax: 732.287.4222 - www.nbsc.com - e-mail:
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bioinfo@nbsc.com
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 CO., INC., REPORTS
SECOND-QUARTER AND FIRST-HALF 2005 FINANCIAL RESULTS
EDISON, NEW JERSEY, AUGUST 10, 2005-New Brunswick Scientific Co., Inc. (NBS)
(NASDAQ: NBSC), today announced results for the 2005 second quarter and first
six months ended July 2, 2005.
Net sales for the second quarter of 2005 increased 1.9% to $15.2 million,
compared with last year's second-quarter sales of $14.9 million. Second-quarter
net income was $4,000, or breakeven on a per-share basis, versus $432,000, or
$0.05 per diluted share, in 2004's comparable period. First-half 2005 net sales
advanced to $31.3 million from $29.5 million for the 2004 six-month period-an
increase of 6.0%. Net income for the 2005 first half was $411,000, or $0.05 per
diluted share, compared with $712,000, or $0.08 per diluted share, for the
year-ago first six months. Profitability in 2005 has been negatively impacted by
lower margins and higher planned R&D expenses to support the Company's new
product development program.
The increase in net sales during 2005's first half was due principally to higher
shipments of fermentation equipment, ultra-low temperature freezers and CO2
incubators, and $385,000 was attributable to foreign currency translation. Soft
sales in the U.S. were more than offset by higher international sales,
particularly in Europe.
During the 2005 second quarter, new orders increased 9.9% versus 2004's second
quarter. New orders also rose for the first half of the year-up 5.6%-compared
with orders received in the first six months of last year. The increased order
activity was aided by the positive effect of the weakness of the U.S. dollar on
international sales.
Gross margin contracted during the second quarter and first half due primarily
to product mix, partially offset by higher absorption of overhead as a result of
the increased volume. Gross margin for the quarter was 39.0% compared with 40.4%
in second-quarter 2004; and for the 2005 first half, gross margin was 39.0%
versus 40.5% in last year's first six months.
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Commenting on the results, co-founder and Chairman David Freedman said: "The
increase in order activity, especially as of late in the U.S. market, is very
encouraging and brightens our outlook for the balance of the year. We continue
to invest in our new-product development program and expect these efforts to
enhance shareholder value in future periods."
Supporting the Company's new-product development program, research, development
and engineering expenses increased 27.3% for the quarter and 26.7% for the half
versus last year's respective periods. The increases were due to the cost of
outsourcing of certain engineering efforts, prototypes and additional personnel.
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 TABLES 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 SIX MONTHS ENDED
JULY 2, 2005 JULY 3, 2004 JULY 2, 2005 JULY 3, 2004
-------------------- ------------------ -------------- --------------
Restated* Restated*
Net sales $ 15,180 $ 14,905 $ 31,288 $ 29,527
Operating costs and expenses:
Cost of sales 9,267 8,883 19,073 17,574
Selling, general and administrative expenses 4,601 4,431 9,123 8,703
Research, development and engineering expenses 1,239 973 2,376 1,876
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Total operating costs and expenses 15,107 14,287 30,572 28,153
-------------------- ------------------ -------------- --------------
Income from operations
73 618 716 1,374
Other income (expense):
Interest income 58 17 111 35
Interest (expense) credit (145) 56 (181) (155)
Other, net 2 (5) 21 (69)
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(85) 68 (49) (189)
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(Loss) income before income tax (benefit) expense (12) 686 667 1,185
Income tax (benefit) expense (16) 254 256 473
-------------------- ------------------ -------------- --------------
Net income $ 4 $ 432 $ 411 $ 712
==================== ================== ============== ==============
Basic income per share $ 0.00 $ 0.05 $ 0.05 $ 0.08
==================== ================== ============== ==============
Diluted income per share $ 0.00 $ 0.05 $ 0.05 $ 0.08
==================== ================== ============== ==============
Basic weighted average number of
shares outstanding 8,951 8,714 8,922 8,681
==================== ================== ============== ==============
Diluted weighted average number of
shares outstanding 9,002 8,882 8,988 8,837
==================== ================== ============== ==============
SELECTED CONSOLIDATED BALANCE SHEET ITEMS
(Dollars in thousands)
(Unaudited)
JULY 2, 2005 DECEMBER 31, 2004
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Cash and cash equivalents $ 10,347 $ 10,846
Accounts receivable, net 9,103 11,332
Inventories 13,675 12,139
Property, plant and equipment, net 6,055 6,495
Total assets 51,694 53,795
Accounts payable and accrued expenses 7,060 7,592
Long-term debt, net of current installments 5,594 6,022
Shareholders' equity 35,239 35,955
Working capital 26,881 27,198
Current ratio 4.1 to 1 3.9 to 1
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*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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