SEGMENT INFORMATION
TECHNE CORPORATION AND SUBISIDARIES
(in thousands of $'s, except per share data)
Increase (Decrease)
Fiscal 2006 From Fiscal 2005
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First Second Third Fourth Percent First Second Third Fourth
Quarter Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter Quarter YTD
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Sales 47,709 48,029 54,813 52,066 202,617 100% 6,790 5,782 6,878 4,515 23,965
Cost of sales 11,096 10,695 12,105 11,822 45,718 23% 2,209 1,754 2,967 1,975 8,905
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Gross margin 36,613 37,334 42,708 40,244 156,899 77% 4,581 4,028 3,911 2,540 15,060
Gross margin
percentage 76.7% 77.7% 77.9% 77.3% 77.4%
SG&A expense 6,454 7,980 6,901 6,269 27,604 14% 820 1,690 522 96 3,128
R&D expense 4,717 4,574 4,761 4,773 18,825 9% 29 (45) 130 332 446
Amortization
expense 492 492 492 491 1,967 1% 187 186 187 186 746
Interest expense 223 238 245 258 964 -- (22) 60 52 52 142
Interest income (974) (1,130) (1,082) (1,522) (4,708) (2%) 79 59 (144) (593) (599)
Other non-
operating
ex., net 211 281 229 363 1,084 -- (255) (135) (94) 405 (79)
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11,123 12,435 11,546 10,632 45,736 22% 838 1,815 653 478 3,784
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Earnings before
income taxes 25,490 24,899 31,162 29,612 111,163 55% 3,743 2,213 3,258 2,062 11,276
Income taxes 8,489 8,385 10,815 10,123 37,812 19% 934 633 1,350 1,140 4,057
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17,001 16,514 20,347 19,489 73,351 36% 2,809 1,580 1,908 922 7,219
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Diluted earnings
per share 0.43 0.42 0.52 0.49 1.85
Weighted average
diluted shares
outstanding 39,669 39,761 39,425 39,487 39,594
BIOTECHNOLOGY (1)
(in thousands of $'s)
Increase (Decrease)
Fiscal 2006 From Fiscal 2005
------------------------------------------------ ----------------------------------------
First Second Third Fourth Percent First Second Third Fourth
Quarter Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- --------
Sales 37,599 37,697 43,013 40,076 158,385 100% 6,908 7,625 6,675 4,434 25,642
Intersegment sales (5,299) (6,555) (6,396) (5,711)(23,961) (495) (1,351) (798) 273 (2,371)
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32,300 31,142 36,617 34,365 134,424 6,413 6,274 5,877 4,707 23,271
Cost of sales 8,470 8,147 9,125 8,597 34,339 22% 2,359 2,077 2,757 1,555 8,748
Intersegment sales (5,323) (6,140) (6,478) (5,757)(23,698) (567) (930) (999) 240 (2,256)
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3,147 2,007 2,647 2,840 10,641 1,792 1,147 1,758 1,795 6,492
Gross margin 29,153 29,135 33,970 31,525 123,783 78% 4,621 5,127 4,119 2,912 16,779
Gross margin
Percentage 77.5% 78.4% 78.8% 78.5% 78.3%
SG&A expense 3,639 4,194 4,199 3,410 15,442 10% 666 779 487 (7) 1,925
R&D expense 4,532 4,404 4,593 4,585 18,114 11% 32 (26) 161 338 505
Amortization
expense 492 492 492 491 1,967 1% 187 186 187 186 746
Interest, net (268) (373) (285) (501) (1,427) (1%) 146 191 35 (222) 150
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8,395 8,717 8,999 7,985 34,096 21% 1,031 1,130 870 295 3,326
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Pretax result 20,758 20,418 24,971 23,540 89,687 57% 3,590 3,997 3,249 2,617 13,453
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(1) Fiscal 2006 includes R&D Systems' Biotechnology Division,
Fortron Bio Science, Inc., and BiosPacific, Inc.
R&D SYSTEMS EUROPE
(in thousands of British pound sterling)
Increase (Decrease)
Fiscal 2006 From Fiscal 2005
------------------------------------------------ ----------------------------------------
First Second Third Fourth Percent First Second Third Fourth
Quarter Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- --------
Sales 6,690 7,529 8,256 7,278 29,753 100% 610 721 1,125 (297) 2,159
Cost of sales 3,292 3,765 4,191 3,630 14,878 50% 361 632 966 8 1,967
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Gross margin 3,398 3,764 4,065 3,648 14,875 50% 249 89 159 (305) 192
Gross margin
percentage 50.8% 50.0% 49.2% 50.1% 50.0%
SG&A expense 1,004 1,185 1,070 1,115 4,374 15% 54 24 48 18 144
Interest income (326) (329) (342) (369) (1,366) (5%) (72) (66) (62) (62) (262)
Exchange loss/
(gain) 15 26 (49) (9) (17) -- (11) 70 (65) 39 33
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693 882 679 737 2,991 10% (29) 28 (79) (5) (85)
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Pretax result 2,705 2,882 3,386 2,911 11,884 40% 278 61 238 (300) 277
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R&D SYSTEMS EUROPE
(in thousands of $'s)
Increase (Decrease)
Fiscal 2006 From Fiscal 2005
------------------------------------------------ ----------------------------------------
First Second Third Fourth Percent First Second Third Fourth
Quarter Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- --------
Sales 11,875 13,106 14,496 13,477 52,954 100% 856 242 953 (412) 1,639
Cost of sales 5,844 6,554 7,358 6,723 26,479 50% 532 636 1,232 68 2,468
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Gross margin 6,031 6,552 7,138 6,754 26,475 50% 324 (394) (279) (480) (829)
Gross margin
percentage 50.8% 50.0% 49.2% 50.1% 50.0%
SG&A expense 1,782 2,059 1,879 2,064 7,784 15% 60 (135) (60) 53 (82)
Interest income (579) (572) (600) (680) (2,431) (5%) (119) (75) (69) (115) (378)
Exchange loss/
(gain) 28 46 (87) (17) (30) -- (19) 128 (116) 71 64
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1,231 1,533 1,192 1,367 5,323 10% (78) (82) (245) 9 (396)
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Pretax result 4,800 5,019 5,946 5,387 21,152 40% 402 (312) (34) (489) (433)
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HEMATOLOGY
(in thousands of $'s)
Increase (Decrease)
Fiscal 2006 From Fiscal 2005
------------------------------------------------ ----------------------------------------
First Second Third Fourth Percent First Second Third Fourth
Quarter Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- --------
Sales 3,534 3,781 3,700 4,224 15,239 100% (479) (734) 48 22 (945)
Cost of sales 2,105 2,134 2,100 2,259 8,598 56% (115) (29) (23) 112 (55)
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Gross margin 1,429 1,647 1,600 1,965 6,641 44% (364) (705) 71 108 (890)
Gross margin
percentage 40.4% 43.6% 43.2% 46.5% 43.6%
SG&A expense 384 424 441 376 1,625 11% (25) (12) (64) (82) (183)
R&D expense 185 170 168 188 711 5% (3) (19) (31) (6) (59)
Interest, net (37) (50) (40) (74) (201) (2%) 19 27 4 (36) 14
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532 544 569 490 2,135 14% (9) (4) (91) (124) (228)
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Pretax result 897 1,103 1,031 1,475 4,506 30% (355) (701) 162 232 (662)
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CORPORATE AND OTHER (2)
(in thousands of $'s)
Increase (Decrease)
Fiscal 2006 From Fiscal 2005
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First Second Third Fourth First Second Third Fourth
Quarter Quarter Quarter Quarter YTD Quarter Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- ------- ------- ------- ------- --------
Interest income 90 135 157 267 649 48 84 114 220 466
Rental income 342 337 287 320 1,286 323 284 (31) (40) 536
------- ------- ------- ------- ------- ------- ------- ------- ------- --------
432 472 444 587 1,935 371 368 83 180 1,002
SG&A expense 649 1,303 382 419 2,753 119 1,058 159 132 1,468
Interest expense 223 238 245 258 964 59 60 52 52 223
Other-Building
expenses 443 490 520 529 1,982 79 12 (7) 197 281
Other-Hemerus
losses 82 82 83 171 418 8 9 (2) 97 112
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1,397 2,113 1,230 1,377 6,117 265 1,139 202 478 2,084
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Pretax result (965) (1,641) (786) (790) (4,182) 106 (771) (119) (298) (1,082)
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(2) Unallocated corporate expenses and Techne's share of
losses by Hemerus Medical, LLC.