SOURCE: Bio-Rad Laboratories
Bio-Rad Reports Second-Quarter 2008 Sales Increase of 33%
HERCULES, CA--(Marketwire - August 5, 2008) - Bio-Rad Laboratories, Inc. (
Second-quarter revenues were $452.4 million, up 33.4% compared to $339.1 million reported for the second quarter of 2007. On a currency-neutral basis, revenues increased 25.4% compared to the same period last year. The increase resulted from the addition of DiaMed Holding AG products to the Company's portfolio as well as organic growth across key product areas in both the Life Science and Clinical Diagnostics segments. Excluding the additional revenue from the DiaMed acquisition, second-quarter revenues were up 14.7%, or 6.6% on a currency-neutral basis, compared to the same quarter in 2007. Second-quarter gross margin was 54.9% compared to 56.0% in the second quarter last year.
Net income for the quarter was $43.4 million, or $1.58 per share on a fully diluted basis, compared to $25.7 million, or $0.95 per share during the second quarter of 2007.
Year-to-date revenues grew by 32.2% to $874.6 million compared to the same period last year. Adjusting for the impact of currency effects, revenue growth was 24.7%. Excluding the additional revenue from the DiaMed acquisition and currency, year-to-date organic revenues grew by 13.1% to $748.4 million, or 5.6% on a currency neutral basis.
Year-to-date net income for 2008 was $69.9 million compared to $52.7 million in the same period last year. On a per share basis, year-to-date net income for 2008 was $2.60 per share, or $2.54 per share on a fully diluted basis, and $1.98 and $1.94 for the first six months of 2007.
"We are pleased with our performance for the first half of the year," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "During the second quarter, we saw an increase in organic growth within our core businesses as well as broad customer acceptance of new products. As the year continues, we will continue to focus on the integration of DiaMed, which is on track and proceeding well, to date."
Life Science
Life Science segment net sales for the quarter were $161.6 million, up 10.7% compared to the same period last year. On a currency-neutral basis, segment sales increased by 3.2%. Performance in the Life Science segment benefited from sales of its electrophoresis, chromatography, and gel imaging products as well as Bio-Plex® suspension array system reagents, as several new assay panels for the Bio-Plex system were introduced during the quarter. Customer acceptance of the Company's next generation polymerase chain reaction (PCR) instruments, the new 1000-series thermal cycling and CFX Real Time platforms continued to gain momentum during the second quarter. Capital instrument sales for the segment were down slightly during in the quarter, reflecting a general softness in the market resulting from reduced spending by both academic and bio-pharmaceutical customers.
Clinical Diagnostics
The Clinical Diagnostics segment reported net sales of $287.4 million for the second quarter, up 51.4% compared to the second quarter last year, or 42.9% excluding currency effects. Excluding revenue from the DiaMed acquisition, net sales were up 17.9%, or 9.4% on a currency-neutral basis, from the same period last year. This performance was the result of growth across all product lines, in particular, quality control, diabetes, and autoimmune products. Sales were boosted in the Clinical Diagnostics segment by additional revenue from DiaMed, which added blood typing instruments and reagents to the Company's product offerings. Sales of the Company's in2it™ analyzer for point-of-care hemoglobin A1C testing; the MRSASelectTM test, a chromogenic medium used for the rapid screening of MRSA (methicillin-resistant Staphylococcus aureus); and the BioPlex® 2200 instrument and reagents also continued to fuel growth in the segment.
Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) August 5, 2008. Interested parties can access the call by dialing 866-700-7101 (in the U.S.), or 617-213-8837 (international), access number 62490028. The live webcast 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 39213228, for seven days following the call and the webcast can be accessed at http://www.bio-rad.com for 30 days.
About Bio-Rad
Bio-Rad Laboratories, Inc. (
This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, "believe," "expect," "may," "will," "intend," "estimate," "continue," or similar expressions or the negative of those terms or expressions. Such statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. For further information regarding the Company's risks and uncertainties, please refer to the "Risk Factors" in the Company's public reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2007, as updated by subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company cautions you not to place undue reliance on forward-looking statements, which reflect an analysis only and speak only as of the date hereof. Bio-Rad Laboratories, Inc. disclaims any obligation to update these forward-looking statements.
Bio-Rad Laboratories, Inc.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Net sales $ 452,361 $ 339,114 $ 874,558 $ 661,622
Cost of goods sold 203,940 149,123 399,254 292,250
--------- --------- --------- ---------
Gross profit 248,421 189,991 475,304 369,372
Selling, general, and
administrative expense 146,634 119,551 286,289 227,301
Product research and
development expense 42,079 34,754 79,568 67,535
--------- --------- --------- ---------
Income from operations 59,708 35,686 109,447 74,536
Interest expense 7,991 7,867 15,948 15,736
Foreign exchange (gains)
losses (288) (398) 2,305 (670)
Other (income) expense, net (3,951) (7,495) (4,144) (13,681)
--------- --------- --------- ---------
Income before taxes and
minority interests 55,956 35,712 95,338 73,151
Provision for income taxes (10,632) (10,041) (21,455) (20,483)
Minority interests in
earnings of consolidated
subsidiaries (1,926) - (3,990) -
--------- --------- --------- ---------
Net income $ 43,398 $ 25,671 $ 69,893 $ 52,668
========= ========= ========= =========
Basic earnings per share
Net income $ 1.61 $ 0.96 $ 2.60 $ 1.98
========= ========= ========= =========
Weighted average common
shares 26,947 26,657 26,914 26,619
========= ========= ========= =========
Diluted earnings per share
Net income $ 1.58 $ 0.95 $ 2.54 $ 1.94
========= ========= ========= =========
Weighted average common
shares 27,478 27,164 27,470 27,160
========= ========= ========= =========
Bio-Rad Laboratories, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(UNAUDITED)
June 30, December 31,
2008 2007
------------ ------------
Current assets:
Cash and cash equivalents $ 183,643 $ 161,764
Short-term investments 43,512 61,977
Accounts receivable, net 376,985 358,076
Inventories, net 382,684 321,015
Other current assets 132,958 126,142
------------ ------------
Total current assets $ 1,119,782 $ 1,028,974
Net property, plant, and equipment 290,737 271,561
Goodwill 347,439 328,439
Purchased intangibles, net 221,681 210,304
Other assets 119,281 132,316
------------ ------------
Total assets $ 2,098,920 $ 1,971,594
============ ============
Current liabilities:
Notes payable and current maturities of
long-term debt $ 14,680 $ 15,627
Accounts payable 102,320 96,470
Accrued payroll and employee benefits 105,069 121,255
Sales, income and other taxes payable 41,241 27,905
Other current liabilities 144,777 152,911
------------ ------------
Total current liabilities 408,087 414,168
Long-term debt, net of current maturities 440,687 441,805
Other long-term liabilities 103,413 109,497
Minority interests 32,175 34,434
Stockholders' equity 1,114,558 971,690
------------ ------------
Total liabilities, minority
interests and stockholders' equity $ 2,098,920 $ 1,971,594
============ ============
Bio-Rad Laboratories, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(UNAUDITED)
Six Months Ended
June 30,
2008 2007
----------- -----------
Cash flows from operating activities:
Cash received from customers $ 877,910 $ 654,230
Cash paid to suppliers and employees (781,755) (600,174)
Interest paid (15,448) (15,026)
Income tax payments (16,848) (17,835)
Litigation settlement (2,213) (2,082)
Other operating activities 5,265 14,318
----------- -----------
Net cash provided by operating activities 66,911 33,431
Cash flows from investing activities:
Payments for acquisitions and long-term
investments (17,110) (2,496)
Other investing activities (35,043) (33,486)
----------- -----------
Net cash used in investing activities (52,153) (35,982)
Cash flows from financing activities:
Payments on long-term debt (4,414) (305)
Other financing activities 8,090 9,660
----------- -----------
Net cash provided by financing activities 3,676 9,355
Effect of exchange rate changes on cash 3,445 1,992
----------- -----------
Net increase (decrease) in cash and cash
equivalents 21,879 8,796
Cash and cash equivalents at beginning of the
period 161,764 223,607
----------- -----------
Cash and cash equivalents at end of period $ 183,643 $ 232,403
=========== ===========
Reconciliation of net income to net cash provided
by operating activities:
Net income $ 69,893 $ 52,668
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 49,323 28,840
Changes in working capital (61,270) (44,855)
Litigation settlement (2,213) (2,082)
Other 11,178 (1,140)
----------- -----------
Net cash provided by operating activities $ 66,911 $ 33,431
=========== ===========
Christine Tsingos
Vice President and Chief Financial Officer
or
Ron Hutton
Treasurer
Bio-Rad Laboratories, Inc.
510-724-7000
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