[GRAPHIC OMITED]
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
NOVEMBER 4, 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
Incorporationg) 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)
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 CO., INC., REPORTS STRONG SALES AND EARNINGS
GROWTH FOR THIRD-QUARTER AND NINE-MONTHS 2005
EDISON, NEW JERSEY, NOVEMBER 4, 2005-New Brunswick Scientific Co., Inc. (NBS)
(NASDAQ: NBSC), today announced improved net sales and higher net income for the
third quarter and nine months ended October 1, 2005, versus the respective
periods of 2004.
Net sales for third-quarter 2005 rose 6.2% to $16.1 million from $15.2 million
for the comparable 2004 period. Third-quarter net income reached $833,000, or
$0.09 per diluted share, from $229,000, or $0.03 per diluted share, for the same
period one year ago.
For the first nine months of 2005, net sales advanced 6.1% to $47.4 million from
the $44.7 million reported for nine-months 2004. Net income increased 32.2% to
$1,244,000, or $0.14 per diluted share, from $941,000, or $0.11 per diluted
share, for the 2004 nine-months. Net sales increased during both periods due to
robust international sales increases of 11.8% for the quarter and 12.3% for the
nine-months versus the same periods of 2004.
Gross margin expanded during the quarter due primarily to a favorable product
mix in conjunction with the effect of increased absorption of manufacturing
overhead occasioned by the higher sales volumes. Gross margin for the 2005 third
quarter increased to 42.0% from 39.3% for the comparable prior-year period, and
was flat for the nine-months at 40.1%
Selling, general and administrative expenses declined for the quarter to $4.3
million, or 26.5% of sales, from $4.5 million, or 29.9% of sales, during last
year's third quarter. Last year's SG&A expense included approximately $346,000
of severance costs.
Supporting the Company's new-product development program, research, development
and engineering expenses increased 29.7% for the quarter and 27.6% for the
nine-months compared with last year's respective periods.
Co-founder and Chairman David Freedman said: "End-market demand for our
fermentation equipment, ultra-low temperature freezers and CO2 incubators helped
to generate continued strong international sales growth. Even more encouraging
is our recent increase in order intake-up 21.4% and 10.8%, respectively, for the
third quarter and nine-months from the comparable year-ago periods."
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-
# # #
NEW BRUNSWICK SCIENTIFIC CO., INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per-share amounts)
(Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED
OCT. 1, 2005 OCT. 2, 2004 OCT. 1, 2005 OCT. 2, 2004
-------------------- ------------------- -------------- --------------
Restated(1) Restated(1)
Net sales $ 16,137 $ 15,192 $ 47,425 $ 44,719
Operating costs and expenses:
Cost of sales 9,352 9,223 28,425 26,797
Selling, general and administrative
expenses 4,279 4,540 13,402 13,243
Research, development and
engineering expenses 1,170 902 3,546 2,778
-------------------- ------------------- -------------- --------------
42,818
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Total operating costs and expenses 14,801 14,665 45,373
-------------------- ------------------- --------------
Income from operations 1,336 527 2,052 1,901
Other income (expense):
Interest income 69 22 180 57
Interest expense (86) (173) (267) (328)
Other, net 34 (1) 55 (70)
-------------------- ------------------- -------------- --------------
(341)
--------------
17 (152) (32)
-------------------- ------------------- --------------
Income before income tax expense 1,353 375 2,020 1,560
Income tax expense 520 146 776 619
-------------------- ------------------- -------------- --------------
Net income $ 833 $ 229 $ 1,244 $ 941
==================== =================== ============== ==============
Basic income per share $ 0.09 $ 0.03 $ 0.14 $ 0.11
==================== =================== ============== ==============
Diluted income per share $ 0.09 $ 0.03 $ 0.14 $ 0.11
==================== =================== ============== ==============
Basic weighted average number of shares outstanding 8,996 8,768 8,945 8,709
==================== =================== ============== ==============
Diluted weighted average number of
shares outstanding 9,048 8,899 9,003 8,857
==================== =================== ============== ==============
SELECTED CONSOLIDATED BALANCE SHEET ITEMS
(Dollars in thousands)
(Unaudited)
OCTOBER 1, 2005 DECEMBER 31, 2004
---------------- -------------------
Cash and cash equivalents $ 11,171 $ 10,846
Accounts receivable, net 9,672 11,332
Inventories 14,135 12,139
Property, plant and equipment, net 6,010 6,495
Total assets 53,622 53,795
Accounts payable and accrued expenses 8,868 7,592
Long-term debt, net of current installments 5,438 6,022
Shareholders' equity 35,952 35,955
Working capital 27,117 27,198
Current ratio 3.6 to 1 3.9 to 1
(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.