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, N.J., Nov. 8  /PRNewswire-FirstCall/ -- 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 the 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 month peroids 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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  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 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 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

  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

  Total operating costs and       16,206    14,801       49,165     45,373
   expenses
  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
                                      23        17          (35)       (32)
  Income before income tax
   expense                         1,788     1,353        4,324      2,020
  Income tax expense                 688       520        1,624        776
  Net income                     $ 1,100   $   833      $ 2,700    $ 1,244
  Basic income per share         $  0.12   $  0.09      $  0.30    $  0.14
  Diluted income per share       $  0.12   $  0.09      $  0.29    $  0.14

  Basic weighted average
   number of shares
   outstanding                     9,204     8,996        9,140      8,945
  Diluted weighted average
   number of shares
   outstanding                     9,250     9,048        9,196      9,003




                SELECTED CONSOLIDATED BALANCE SHEET ITEMS
                          (Dollars in thousands)
                               (Unaudited)

                                               September 30,   December 31,
                                                   2006            2005

  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


DATASOURCE: New Brunswick Scientific Co., Inc.



CONTACT:  Thomas Bocchino, 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/ 

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