NEW BRUNSWICK SCIENTIFIC CO., INC.
P.O. Box 4005 - 44 Talmadge Road - Edison, NJ 08818-4005 U.S.A.
INVESTOR CONTACTS:
Thomas Bocchino Matthew J. Dennis, CFA
Vice President, Finance and Treasurer NBS Investor Relations
New Brunswick Scientific Co., Inc. Clear Perspective Group, LLC
732.650.2500 732.226.3030
tbocchino@nbsc.com mdennis@cpg-llc.com
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FOR IMMEDIATE RELEASE
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NEW BRUNSWICK SCIENTIFIC CO., INC., REPORTS
THIRD-QUARTER AND NINE-MONTH 2006 FINANCIAL RESULTS
NINE-MONTH EARNINGS MORE THAN DOUBLE ON 13% HIGHER SALES
EDISON, NEW JERSEY, NOVEMBER 8, 2006-New Brunswick Scientific Co., Inc. (NBS)
(NASDAQ: NBSC), today announced record 2006 third-quarter and nine-month net
sales and higher net income versus the corresponding periods of 2005.
For the three months ended September 30, 2006, net sales were up 11.4% to $18.0
million from $16.1 million reported for the 2005 comparable period.
Third-quarter net income rose 32.1%, to $1.1 million. This compares with
$833,000 for the same period one year ago. Earnings per diluted share increased
to $0.12 from last year's $0.09.
For the nine months ended September 30, 2006, net sales advanced 12.9% to $53.5
million from the $47.4 million reported for the 2005 nine-month period. The
revenue improvement reflected international and domestic sales increases of
16.0% and 8.4%, respectively, from the prior-year period. Net income more than
doubled to $2.7 million, or $0.29 per diluted share, from $1.2 million, or $0.14
per diluted share, for the 2005 nine-month period.
The increase in net sales for the nine months was due principally to higher
shipments of fermentation equipment, ultra-low temperature freezers and cell
culture equipment, partially offset by a $339,000 foreign currency translation
effect on international sales due to the stronger dollar versus the year-ago
period.
Gross margin for the third quarter was 42.5% versus 42.0% in the same period a
year ago, and for the nine months, increased to 41.5% from 2005's 40.1%.
Selling, general and administrative expenses as a percentage of sales amounted
to 27.1% for third-quarter and 26.9% for the nine-month period of 2006, versus
26.5% and 28.3%, respectively, for last year's corresponding periods. Research,
development and engineering expenses for the 2006 quarter were $167,000 lower
than in 2005, and declined to $3.4 million from 2005's $3.5 million for the
first nine months of 2006.
Income from operations for the third-quarter and nine-months improved
significantly to $1.8 million and $4.4 million, respectively, compared with $1.3
million and $2.1 million for the corresponding year-ago periods. These increases
represent operating income growth of 32.1% for the quarter and 112.4% for the
nine-months.
During the 2006 third quarter, new orders increased 9.4% from
third-quarter 2005. New orders also rose for the first nine months of
the year, up 8.0% from the same period a year ago.
Co-founder and Chairman David Freedman said: "Our product-development
investments continue to augment the effects of the healthy demand in our
markets, validating our strategy. For the third consecutive quarter, net sales
set new quarterly records."
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on the link below:
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ABOUT NEW BRUNSWICK SCIENTIFIC
New Brunswick Scientific Co., Inc., is a leading global innovator providing a
comprehensive line of equipment and instrumentation for 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, environmental research and commercial products. Established in
1946, the Company is headquartered in Edison, New Jersey, with sales and
distribution facilities 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 include
a number of risks and uncertainties, which are detailed in Part I, Item 1A,
"Risk Factors" of our Annual Report on Form 10-K for the year ended December 31,
2005, and other risk factors identified herein or from time to time in our
periodic filings with the Securities and Exchange Commission. 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
SEPT. 30, OCT. 1, SEPT. 30, OCT. 1,
2006 2005 2006 2005
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Net sales $17,971 $16,137 $53,524 $47,425
Operating costs and expenses:
Cost of sales 10,333 9,352 31,315 28,425
Selling, general and administrative
expenses 4,870 4,279 14,414 13,402
Research, development and
engineering expenses 1,003 1,170 3,436 3,546
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Total operating costs and expenses 16,206 14,801 49,165 45,373
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Income from operations 1,765 1,336 4,359 2,052
Other income (expense):
Interest income 93 69 267 180
Interest expense (88) (86) (255) (267)
Other, net 18 34 (47) 55
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23 17 (35) (32)
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Income before income tax expense 1,788 1,353 4,324 2,020
Income tax expense 688 520 1,624 776
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Net income $1,100 $ 833 $2,700 $1,244
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Basic income per share $ 0.12 $ 0.09 $ 0.30 $ 0.14
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Diluted income per share $ 0.12 $ 0.09 $ 0.29 $ 0.14
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Basic weighted average number of shares
outstanding 9,204 8,996 9,140 8,945
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Diluted weighted average number of
shares outstanding 9,250 9,048 9,196 9,003
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SELECTED CONSOLIDATED BALANCE SHEET ITEMS
(Dollars in thousands)
(Unaudited)
SEPTEMBER 30, DECEMBER 31,
2006 2006
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Cash and cash equivalents $ 10,814 $ 11,351
Accounts receivable, net 11,582 11,989
Inventories 15,847 13,155
Property, plant and equipment, net 8,569 6,595
Total assets 59,330 54,966
Accounts payable and accrued expenses 10,152 10,782
Long-term debt, net of current installments 1,072 1,389
Shareholders' equity 42,533 36,718
Working capital 25,340 22,870
Current ratio 2.7 to 1 2.5 to 1