New Brunswick Scientific Co., Inc., Reports Strong Sales and Earnings Growth for Third-Quarter and Nine-Months 2005

EDISON, N.J., Nov. 4  /PRNewswire-FirstCall/ -- 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

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 http://www.nbsc.com/.

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.

           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

  Total operating costs
   and expenses             14,801        14,665       45,373        42,818

  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)
                                17          (152)         (32)         (341)

  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.


DATASOURCE: New Brunswick Scientific Co., Inc.



CONTACT:  Samuel Eichenbaum, Vice President, Finance and Treasurer,

New Brunswick Scientific Co., Inc., [phone], ; Matthew J.

Dennis, CFA, NBS Investor Relations, Clear Perspective Group, LLC,

[phone], 



Web site:  http://www.nbsc.com/ 

Copyright