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Bio-Rad Laboratories Reports Fourth-Quarter and Full-Year
Financial Results
HERCULES, Calif., Feb. 17 /PRNewswire-FirstCall/ -- Bio-Rad Laboratories, Inc.
(Amex: BIO; BIOb), a multinational manufacturer and distributor of life science
research products and clinical diagnostics, announced financial results today
for the fourth quarter ended December 31, 2004. Fourth-quarter net sales from
continuing operations were $307.9 million, up 19.3 percent compared to the
$258.1 million reported for the same quarter of 2003. On a currency-neutral
basis, revenues were up 14.1 percent versus fourth-quarter 2003 results. This
growth was largely due to a combination of events including organic growth in
Bio-Rad's two main business segments and the addition of MJ GeneWorks products
to the Company's portfolio. For the quarter, income from continuing operations
was $17.1 million compared to $18.6 million in the fourth quarter of last year.
For the full year, overall Company sales from continuing operations grew by
11.3 percent to $1,090.0 million compared to $979.6 million in 2003.
Normalizing for the impact of currency effects, growth was 5.5 percent.
Year-over-year income from continuing operations fell by 14.2 percent to $66.3
million, or $2.58 per share, from $77.3 million, or $3.04 per share in 2003,
due to the Company's acquisition and integration of MJ GeneWorks which included
more than $14 million of one-time costs, continued investment in R&D and
infrastructure development projects, and additional expenses associated with
Sarbanes-Oxley Act compliance. Full-year gross margin from continuing
operations was 56.0 percent, down slightly compared to 56.8 percent over the
same period of 2003.
Fourth-Quarter Highlights
-- Overall net sales from continuing operations for the fourth quarter grew by
19.3 percent versus fourth-quarter 2003 results.
-- Fourth-quarter basic earnings from continuing operations were $0.66 per
share, or $0.65 per share on a diluted basis, compared to $0.73 and $0.71,
respectively, in the same period of last year.
-- Segment net sales for the quarter were 21.6 percent higher for the Life
Science segment and 17.1 percent higher for the Clinical Diagnostics segment
compared to their respective figures in 2003.
-- During the quarter, Bio-Rad sold $200 million aggregate principal amount of
6.125% Senior Subordinated Notes due 2014 in a private offering.
Life Science segment net sales for the quarter were $148.5 million, 21.6
percent higher than last year's comparable period. On a currency-neutral
basis, segment sales grew by 16.4 percent. Full-year reported sales from
continuing operations were $504.7 million for the segment, up 10.6 percent over
the previous year, or 4.8 percent on a currency-neutral basis. Performance in
this segment was boosted by the addition of acquired MJ GeneWorks products and
by increased sales in several product areas including multiplex array
technology and amplification reagents. During the quarter, the Life Science
Group launched a number of products including the new Experion(TM) Automated
Electrophoresis System, a novel approach to RNA and protein analysis and
separation that will revolutionize the way electrophoresis is performed. The
Life Science segment was negatively impacted by price erosion in the BSE
(bovine spongiform encephalopathy or mad cow disease) product line, which was
partially offset by a continued expansion in unit volume.
The Clinical Diagnostics segment reported net sales of $156.7 million for the
quarter, up 17.1 percent compared to the fourth quarter of 2003, or 11.9
percent excluding currency effects. Full-year segment sales from continuing
operations were $576.4 million, a 12.0 percent increase compared to 2003
results, or 6.3 percent excluding currency effects. These results are due in
part to continued growth in the blood virus, diabetes monitoring and quality
controls product lines. During the quarter, the Company received marketing
clearance from the U.S. Food and Drug Administration (FDA) for its new
BioPlex(TM)2200 system, a revolutionary new immunoassay platform that employs
multiplexing technology to analyze for multiple disease states from single
patient samples. Bio-Rad also received approval from the FDA for its new
Multispot HIV-1/HIV-2 Rapid Test, the only single-use assay to be approved by
the FDA for the detection and differentiation of HIV-1 and HIV-2 antibodies.
Also during the quarter, the Clinical Diagnostics Group won a major blood-bank
tender in Russia, making Bio-Rad the largest supplier of HIV and hepatitis
blood screening products in that country.
2004 Highlights
-- Full-year Company sales from continuing operations grew by 11.3 percent to
$1,090.0 million.
-- Year-over-year income from continuing operations fell by 14.2 percent to
$66.3 million from $77.3 million in 2003.
-- In March, the Company purchased the assets of Hematronix Inc. for
approximately $17 million in cash. This acquisition further enhances Bio-Rad's
leadership position in the quality-control management industry.
-- In August, the Company purchased MJ GeneWorks, Inc. and its subsidiaries,
including MJ Research, Inc., for approximately $31 million in cash and the
assumption of certain liabilities of those companies. The acquisition
significantly enhances Bio-Rad's portfolio of gene expression products.
"2004 was as much a year of investment as it was of continued progress. The
year brought increased organic growth in our core businesses, expansion of our
product lines through new product introductions and strategic acquisitions,
infrastructure improvements and increased R&D," said Norman Schwartz, President
and Chief Executive Officer. "These efforts give Bio-Rad a larger
proprietary-technology base, improved operational systems and an increased
presence in certain key markets, all of which help strengthen the foundation
for future success."
Management will discuss these results in a conference call at 2:00 p.m. PT
(5:00 p.m. ET) February 17, 2005. Interested parties can access the call by
dialing 800-901-5217 (in the U.S.), or 617-786-2964 (international), access
number 43140553. The live web cast can be accessed at http://www.bio-rad.com/
. A replay of the call will be available at 888-286-8010 (in the U.S.), or
617-801-6888 (international), access number 58162472, for seven days following
the call and the web cast can be accessed at http://www.bio-rad.com/ for 30
days.
Bio-Rad Laboratories, Inc. is a multinational manufacturer and distributor of
life science research products and clinical diagnostics. It is based in
Hercules, California, and serves more than 70,000 research and industry
customers worldwide through a network of more than 30 wholly owned subsidiary
offices.
Various statements made within this press release may constitute
"forward-looking statements" for purposes of the Securities and Exchange
Commission's "safe harbor" provisions under the Private Securities Litigation
Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. The
forward-looking statements contained herein involve risks and uncertainties
that could cause results to differ materially from the Company's expectations.
Bio-Rad Laboratories, Inc.
Fourth-Quarter and Full-Year 2004
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(UNAUDITED)
Three Months, Twelve Months,
Ended Ended
December 31, December 31,
2004 2003 2004 2003
Net sales $307,868 $258,098 $1,090,012 $979,631
Cost of goods sold 139,533 112,598 479,939 423,401
Gross profit 168,335 145,500 610,073 556,230
Selling, general and
administrative expense 110,825 87,037 378,264 317,524
Product research and development
expense 31,885 25,648 108,344 91,273
Purchased in-process research
and development expense -- -- 14,620 --
Interest expense 5,255 4,772 20,219 31,006
Foreign exchange losses 774 1,242 2,394 4,080
Other income, net (7,789) (1,001) (11,095) (3,012)
Income from continuing
operations before taxes 27,385 27,802 97,327 115,359
Provision for income taxes 10,274 9,164 31,035 38,055
Income from continuing
operations 17,111 18,638 66,292 77,304
Discontinued operations
Gain (loss) from
discontinued operations,
net of tax -- 553 (1,487) (1,133)
Gain on divestiture, net of
tax -- -- 3,437 --
Total discontinued
operations -- 553 1,950 (1,133)
Net income $17,111 $19,191 $68,242 $76,171
Basic earnings per share
Continuing operations $0.66 $0.73 $2.58 $3.04
Discontinued operations -- 0.02 0.07 (0.04)
Net income $0.66 $0.75 $2.65 $3.00
Weighted average common
shares 25,819 25,524 25,724 25,416
Diluted earnings per share
Continuing operations $0.65 $0.71 $2.50 $2.94
Discontinued operations -- 0.02 0.08 (0.04)
Net income $0.65 $0.73 $2.58 $2.90
Weighted average shares 26,528 26,405 26,489 26,310
Certain items have been reclassified to conform to the current year
presentation.
Bio-Rad Laboratories, Inc.
Summary Condensed Consolidated Balance Sheets
(In thousands, except per share data)
(UNAUDITED)
At December 31, At December 31,
2004 2003
Current Assets:
Cash and cash equivalents $195,734 $65,395
Short-term investments 165,899 83,247
Accounts receivable, net 261,243 234,085
Inventories, net 205,512 190,258
Deferred tax assets 34,492 31,056
Prepaid expenses and other
current assets 48,344 51,357
Total current assets 911,224 655,398
Property, plant and equipment, net 202,324 179,123
Goodwill, net 113,276 69,503
Purchased intangibles, net 58,638 12,251
Long-term tax assets 26,544 21,218
Other assets 79,996 55,103
Total assets $1,392,002 $992,596
Current liabilities:
Notes payable and current
maturities of long-term debt $9,457 $10,423
Accounts payable 71,194 53,995
Accrued payroll and employee
benefits 79,061 71,650
Sales, income and other taxes
payable 15,835 20,833
Litigation accrual 50,000 --
Accrued royalties 39,317 34,168
Other current liabilities 50,511 48,183
Total current liabilities 315,375 239,252
Long-term debt, net of current
maturities 425,979 225,835
Deferred tax liabilities 24,772 14,803
Other long-term liabilities 28,988 16,899
Stockholder's equity 596,888 495,807
Total liabilities and
stockholder's equity $1,392,002 $992,596
Certain items have been reclassified to conform to the current year
presentation.
Bio-Rad Laboratories, Inc.
Summary Condensed Consolidated Statement of Cash Flows
(In thousands, except per share data)
(UNAUDITED)
Twelve Months Ended December 31,
2004 2003
Cash flows from operating activities:
Cash received from customers $1,081,645 $996,384
Cash paid to suppliers and
employees (912,286) (800,633)
Interest paid (19,543) (17,088)
Income tax payments (33,637) (51,280)
Miscellaneous receipts 8,933 1,928
Discontinued operations (2,019) (1,671)
Net cash provided by operating
activities 123,093 127,640
Cash flows from investing activities:
Capital expenditures, net (60,493) (69,003)
Other investing activities (125,825) (121,238)
Net cash used in investing
activities (186,318) (190,241)
Cash flows from financing activities:
Long-term borrowings 200,000 249,335
Payments on long-term debt (1,781) (132,012)
Other financing activities (4,992) (9,154)
Net cash provided by financing
activities 193,227 108,169
Effect of exchange rate changes on
cash 337 (7,906)
Net increase in cash and cash
equivalents 130,339 37,662
Cash and cash equivalents at
beginning of period 65,395 27,733
Cash and cash equivalents at end of
period $195,734 $65,395
Reconciliation of income from
continuing operations to net cash
provided by operating activities:
Income from continuing operations $66,292 $77,304
Adjustments to reconcile net income
to net cash provided by
operating activities (net of effects of
acquisitions):
Depreciation and amortization 56,143 42,009
Changes in working capital and
other 2,145 9,460
Discontinued operations (1,487) (1,133)
Net cash provided by operating
activities $123,093 $127,640
Certain items have been reclassified to conform to the current year
presentation.
DATASOURCE: Bio-Rad Laboratories, Inc.
CONTACT: Christine Tsingos, Vice President and Chief Financial Officer,
or Ron Hutton, Treasurer, both of Bio-Rad Laboratories, Inc., +1-510-724-7000,
or
Web site: http://www.bio-rad.com/