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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
MARCH 22, 2006
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
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(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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800.631.5417 - 732.287.1200 - fax: 732.287.4222 - www.nbsc.com
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- e-mail: bioinfo@nbsc.com
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
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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 440.353.0552
tbocchino@nbsc.com mdennis@cpg-llc.com
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FOR IMMEDIATE RELEASE
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NEW BRUNSWICK SCIENTIFIC CO., INC., REPORTS INCREASES IN 2005 FOURTH-QUARTER AND
FULL-YEAR EARNINGS ON RECORD SALES
EDISON, NEW JERSEY, MARCH 20, 2006-New Brunswick Scientific Co., Inc. (NBS)
(NASDAQ: NBSC), today announced record net sales and higher net income for the
fourth quarter and the year ended December 31, 2005, versus the respective
periods of 2004.
Net sales for fourth-quarter 2005 rose 16.0% to a new quarterly high of $20.2
million from $17.4 million for the comparable 2004 period. The impact of the
stronger dollar had a negative impact on the quarter's sales of approximately
$0.6 million. Fourth-quarter net income rose 26.3% to $1,250,000, or $0.14 per
diluted share, from $990,000, or $0.11 per diluted share, for the same period
one year ago.
For the year ended December 31, 2005, net sales advanced 8.8% to $67.6 million,
exceeding the previous record of $62.1 million reported for the year ended
December 31, 2004. Full-year net income of $2,494,000, or $0.28 per diluted
share, was up 29.2% from 2004's net income of $1,931,000, or $0.22 per diluted
share. Results in 2004 were inclusive of a $346,000 pretax severance payment.
Gross margins for the years ended December 31, 2005 and 2004 were a flat 40%.
The Company's U.S. operation gross margins declined slightly due to the higher
level of export sales through dealer organizations which carry lower margins
than direct sales and competitive discounting. Offsetting this decline were (i)
higher margins realized by the Company's European sales subsidiaries, (ii)
greater absorption of overhead due to the increase in volume, and (iii) lower
provisions for excess and obsolete inventory in 2005 as a result of improved
inventory management.
Selling, general and administrative expenses declined as a percentage of net
sales to 27.0% in 2005, compared with 28.2% of net sales in 2004. Supporting the
Company's ongoing new-
800.631.5417 - 732.287.1200 - fax: 732.287.4222 - www.nbsc.com
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- e-mail: bioinfo@nbsc.com
product development program, research, development and engineering expenses
surpassed $4.6 million in 2005, reflecting a 25.3% increase compared with last
year's $3.7 million.
Co-founder and Chairman David Freedman said: "NBS' aggressive development
initiatives resulted in several new products that helped propel sales to record
levels during the year. Demand remained especially strong for the Company's
fermentation equipment, ultra-low temperature freezers and carbon dioxide
incubators, which contributed to international sales growth of 16% compared with
2004. Supported by our increased profitability in 2005, we anticipate additional
product launches during the current year.
"Looking ahead, we are encouraged by strong order activity. Orders increased by
14% in 2005 versus the prior year. Entering 2006, our order backlog was more
than 28% higher than at the beginning of 2005," concluded Freedman.
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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800.631.5417 - 732.287.1200 - fax: 732.287.4222 - www.nbsc.com
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- e-mail: bioinfo@nbsc.com
NEW BRUNSWICK SCIENTIFIC CO., INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per-share amounts)
(Unaudited)
THREE MONTHS ENDED YEAR ENDED
Dec. 31, 2005 Dec. 31, 2004 Dec. 31, 2005 Dec. 31, 2004
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Net sales $ 20,191 $ 17,405 $ 67,616 $ 62,124
Operating costs and expenses:
Cost of sales 12,148 10,495 40,573 37,292
Selling, general and administrative
expenses 4,841 4,250 18,243 17,493
Research, development and
engineering expenses 1,074 909 4,620 3,687
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Total operating costs and expenses 18,063 15,654 63,436 58,472
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Income from operations 2,128 1,751 4,180 3,652
Other income (expense):
Interest income 92 28 272 85
Interest expense (92) (66) (359) (394)
Other, net 36 (6) 91 (76)
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36 (44) 4 (385)
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Income before income tax expense 2,164 1,707 4,184 3,267
Income tax expense 914 717 1,690 1,336
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Net income $ 1,250 $ 990 $ 2,494 $ 1,931
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Basic income per share $ 0.14 $ 0.11 $ 0.28 $ 0.22
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Diluted income per share $ 0.14 $ 0.11 $ 0.28 $ 0.22
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Basic weighted average number of
shares outstanding 9,004 8,833 8,959 8,741
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Diluted weighted average number of
shares outstanding 9,083 8,906 9,022 8,835
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SELECTED CONSOLIDATED BALANCE SHEET ITEMS
(Dollars in thousands)
(Unaudited)
DECEMBER 31, 2005 DECEMBER 31, 2004
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Cash and cash equivalents $ 11,351 $ 10,846
Accounts receivable, net 11,989 11,332
Inventories 13,155 12,139
Property, plant and equipment, net 6,595 6,495
Total assets 54,966 53,795
Accounts payable and accrued expenses 10,782 7,592
Long-term debt, net of current installments 1,389 6,022
Shareholders' equity 36,718 35,955
Working capital 22,870 27,198
Current ratio 2.5 to 1 3.9 to 1
800.631.5417 - 732.287.1200 - fax: 732.287.4222 - www.nbsc.com
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- e-mail: bioinfo@nbsc.com
ITEM 8.01 OTHER EVENTS
Bonuses for the year ended December 31, 2005, have been awarded by the board of
directors of New Brunswick Scientific Co., Inc. to the following executive
offices of the Company:
David Freedman $86,600
James T. Orcutt $66,750
Samuel Eichenbaum $55,400
Lee Eppstein $41,250
800.631.5417 - 732.287.1200 - fax: 732.287.4222 - www.nbsc.com
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- e-mail: bioinfo@nbsc.com