New Brunswick Scientific Reports First-Quarter 2005 Results

New Brunswick Scientific Reports First-Quarter 2005 Results 


EDISON, N.J., April 29  /PRNewswire-FirstCall/ -- New Brunswick Scientific Co.,
Inc. (NBS) (NASDAQ:NBSC), today announced results for the 2005 first quarter
ended April 2, 2005.

Net sales for 2005's first three months increased to a first record of $16.1
million, versus $14.6 million for the 2004 first quarter as a result of a 21.7%
increase in international sales while domestic sales decreased 3.7%. Net income
for the quarter increased to $407,000 from $280,000 for the comparable year-ago
period. Diluted earnings per share rose to $0.05, up from the $0.03 per share
reported for last year's first quarter. The increase in net income was
favorably impacted by two non-operating items: the change in the fair value of
the Company's interest rate swaps and foreign exchange gains.  Net income in
the 2005 quarter benefited from a lower effective income tax rate when compared
with the rate utilized in the 2004 quarter.  Income from operations for the
current quarter declined, as discussed below.

Gross margin contracted during the quarter due primarily to product mix and the
Company's aggressive pricing strategy, which is aimed at gaining market share
for its products in certain markets, partially offset by higher absorption of
overhead as a result of the increased volume. Gross margin for the period was
39.1% compared with 39.7% in fourth-quarter 2004 and 40.6% in first-quarter
2004. First-quarter 2005 selling, general and administrative expenses decreased
as a percentage of sales to 28.1% from 29.2% in 2004's initial three months,
despite additional expenses related to the Company's ongoing efforts to comply
with Section 404 of the Sarbanes-Oxley Act. Research, development and
engineering expenses increased as a percentage of sales to 7.1% from 6.2% in
the 2004 first-quarter in support of the Company's new-product development
program.

Commenting on the financial results, NBS Chairman David Freedman stated: "This
year's opening quarter reflected a continuation of the industry conditions
experienced in 2004. We realized increased shipments of fermentation and cell
culture equipment, ultra-low temperature freezers and CO2 incubators during the
period with new-order intake up slightly from last year's pace.

"We have an aggressive new-product development schedule underway designed to
enhance shareholder value. As a result, we increased our research, development
and engineering investments by nearly 26% compared with last year's first
quarter.  We intend to introduce several new products at the upcoming American
Society of Microbiology meeting in Atlanta and also expect to introduce
additional new products in the third and fourth quarters. We continue to
experience excellent results in our export markets but remain concerned
regarding the US market for the balance of 2005."

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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
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
                                            April 2, 2005   April 3, 2004
                                                               Restated*

  Net sales                                    $16,108         $14,622
  Operating costs and expenses:
    Cost of sales                                9,806           8,691
    Selling, general and administrative
     expenses                                    4,522           4,272
    Research, development and
     engineering expenses                        1,137             903

  Total operating costs and expenses            15,465          13,866
  Income from operations                           643             756
  Other income (expense):
    Interest income                                 53              18
    Interest expense                               (36)           (211)
    Other, net                                      19             (64)
                                                    36            (257)

  Income before income tax expense                 679             499
  Income tax expense                               272             219
  Net income                                      $407            $280
  Basic income per share                         $0.05           $0.03
  Diluted income per share                       $0.05           $0.03

  Basic weighted average number of shares
   outstanding                                   8,896           8,650
  Diluted weighted average number of
   shares outstanding                            8,990           8,794


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

                                            April 2, 2005  December 31, 2004

  Cash and cash equivalents                       $9,672           $10,846
  Accounts receivable, net                        12,434            11,332
  Inventories                                     12,973            12,139
  Property, plant and equipment, net               6,328             6,495
  Total assets                                    54,770            53,795
  Accounts payable and accrued expenses            8,839             7,592
  Long-term debt, net of current
   installments                                    5,772             6,022
  Shareholders' equity                            36,124            35,955
  Working capital                                 27,292            27,198
  Current ratio                                 3.6 to 1          3.9 to 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:  Investors - Samuel Eichenbaum, Vice President, Finance and

Treasurer of New Brunswick Scientific Co., Inc., [phone],

; or Matthew J. Dennis, NBS Investor Relations, CFA Clear

Perspective Group, LLC [phone], 



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

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