Bio-Rad Reports First Quarter Financial Results

Bio-Rad Reports First Quarter Financial Results 


HERCULES, Calif., May 5  /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 first quarter ended March 31, 2005. First-quarter net sales from
continuing operations were $299.2 million, up 13.9 percent compared to the
$262.7 million reported for the first quarter of 2004. On a currency- neutral
basis, revenues increased 10.2 percent compared to the first quarter of 2004.
This sales growth was the result of gains across a broad array of product
areas. Income from continuing operations was $29.5 million compared to $22.6
million in the first quarter last year. Net income for the quarter was $33.5
million. This includes a $4 million gain recorded in discontinued operations
related to the sale of the confocal microscopy business. This gain is a result
of the resolution of a lease commitment in the UK.

  First-Quarter Highlights

   -- Fully diluted earnings were $1.26 per share, compared to $0.83
      reported for the first quarter of 2004.
   -- Life Science segment net sales from continuing operations for the
      quarter were $144.1 million, up 18.5 percent from the $121.6 million
      reported last March. On a currency-neutral basis, sales in this area
      increased by 14.9 percent.
   -- The Clinical Diagnostics segment reported consistent growth in its
      core businesses with total net sales of $151.9 million, a 9.4 percent
      increase over the comparable period last year. On a currency-neutral
      basis, segment sales increased 5.5 percent over the first quarter of
      2004.
   -- The settlement of the UK lease commitment along with certain other
      one-time international tax benefits caused the Company's effective tax
      rate to fall for the quarter to 22.5%.
   -- In March, the Japanese government overturned an injunction against
      Bio-Rad, enabling the company to resume sales of its real time PCR
      instrumentation in that country. Positive sales effects are expected
      to materialize in the second quarter of 2005.
   -- Throughout the first quarter, the company's new Experion(TM)
      Electrophoresis System was well received by customers worldwide.



For the Life Science segment, growth in the first quarter was the result of a
combination of factors including substantial sales of amplification reagents,
process chromatography media and the Bio-Plex(TM) protein assay system. This
growth was somewhat tempered, however, by erosion in the average selling price
of BSE tests and competition in the real time PCR instrumentation business.

Overall, the Clinical Diagnostics segment experienced considerable growth due
to increased worldwide sales of its quality control products, continued success
in the U.S. with its Aspergillus test, as well as consistent demand in the
U.S., Japanese and Asian markets for its blood virus products including the
Evolis(TM) System.

"While we are still somewhat cautious about 2005, first quarter financial
results are a healthy start for the year," said President and Chief Executive
Officer Norman Schwartz. "Additionally, the integration of MJ Research is
proceeding as planned. Full assimilation of the sales efforts were completed
during the first quarter and we have begun to experience some of the
operational efficiencies. During the next several quarters, we hope to realize
the full potential of the combined businesses."

Management will discuss these results in a conference call scheduled for 2:00
p.m. PT (5:00 p.m. ET) today, May 5, 2005. Interested parties can access the
call by dialing 800-591-6942 (in the U.S.), or 617-614-4909 (international),
access number 51782785. 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
59115610 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. (http://www.bio-rad.com/) 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.
                            First Quarter 2005
               Condensed Consolidated Statements of Income

                  (In thousands, except per share data)
                               (UNAUDITED)

                                                   Three Months Ended
                                                         March 31,
                                                  2005              2004

  Net sales                                     $299,171          $262,749
  Cost of goods sold                             132,765           113,485
  Gross profit                                   166,406           149,264

  Selling, general and administrative expense     99,498            87,057
  Product research and development expense        26,823            24,333
  Purchased in-process research and
   development expense                                --               900
  Interest expense                                 8,117             5,050
  Foreign exchange (gains) losses, net              (277)              202
  Other (income) expense, net                     (5,838)              216
  Income from continuing operations before taxes  38,083            31,506
  Provision for income taxes                       8,563             8,886
  Income from continuing operations               29,520            22,620
  Loss from discontinued operations
        Discontinued operations, net of tax           --              (642)
        Gain on divestiture net of tax             3,974                --
  Net income                                     $33,494           $21,978

  Basic earnings per share
        Continuing operations                      $1.14             $0.88
        Discontinued operations                     0.15             (0.02)
        Net income                                 $1.29             $0.86

        Weighted average common shares            25,909            25,624

  Diluted earnings per share
        Continuing operations                      $1.11             $0.85
        Discontinued operations                     0.15             (0.02)
        Net income                                 $1.26             $0.83

        Weighted average common shares            26,555            26,444



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 March 31,  At December 31,
                                                   2005             2004
  Current Assets:
       Cash and cash equivalents                 $317,898          $195,734
       Short-term investments                      65,907           165,899
       Accounts receivable, net                   250,968           261,243
       Inventories, net                           208,920           205,512
       Prepaid expenses, taxes and other
        current assets                             77,362            80,072
            Total current assets                  921,055           908,460

  Net property, plant and equipment               197,303           202,324
  Goodwill, net                                   113,276           113,276
  Other assets                                    167,280           167,942
            Total assets                       $1,398,914        $1,392,002



  Current liabilities:
       Notes payable and current
        maturities of long-term debt               $9,658            $9,457
       Accounts payable                            67,145            71,194
       Accrued payroll and employee benefits       67,615            79,061
       Sales, income and other taxes payable       15,369            15,835
       Other current liabilities                  138,693           139,828
            Total current liabilities             298,480           315,375

  Long-term debt, net of current maturities       425,807           425,979
  Deferred tax liabilities                         26,588            24,772
  Other long-term liabilities                      23,753            28,988
  Stockholders' equity                            624,286           596,888
            Total liabilities and
             stockholders' equity              $1,398,914        $1,392,002



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)

                                                Three Months Ended March 31
                                                  2005               2004
  Cash flows from operating activities:
      Cash received from customers              $296,648           $266,784
      Cash paid to suppliers and employees      (259,242)          (221,836)
      Interest paid                               (8,973)            (9,360)
      Income tax payments                         (6,532)            (9,682)
      Miscellaneous receipts                       4,309              2,211
      Discontinued operations                     (1,327)              (811)
      Net cash provided by operating activities   24,883             27,306

  Cash flows from investing activities:
      Capital expenditures, net                   (9,774)           (13,417)
      Other investing activities (principally
       short-term investments)                   103,659            (37,405)
      Net cash used in investing activities       93,885            (50,822)

  Cash flows from financing activities:
      Payments on long-term debt                    (121)              (117)
      Other financing activities                   2,916                 93
      Net cash provided by (used in)
       financing activities                        2,795                (24)

  Effect of exchange rate changes on cash            601                293

  Net increase (decrease) in cash and
   cash equivalents                              122,164            (23,247)
  Cash and cash equivalents at
   beginning of period                           195,734             65,395
  Cash and cash equivalents at end of period    $317,898            $42,148


  Reconciliation of income from continuing
   operations to net cash provided by operating
   activities:

  Income from continuing operations              $29,520            $22,620
  Adjustments to reconcile net income to net
   cash provided by operating activities (net
   of effects of acquisitions):
      Depreciation and amortization               15,171             10,500
      Changes in working capital                  (6,905)            (2,014)
      Other                                      (16,877)            (3,158)
      Discontinued operations                      3,974               (642)
  Net cash provided by operating activities      $24,883            $27,306



Certain items have been reclassified to conform to the current year
presentation. 

DATASOURCE: Bio-Rad Laboratories, Inc.



CONTACT:  Christine Tsingos, Chief Financial Officer, or Ron Hutton,

Treasurer, both of Bio-Rad Laboratories, Inc., [phone], or





Web site:  http://www.bio-rad.com/ 

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