HERCULES, CA
-- (Marketwired)
-- 05/07/13
Bio-Rad Laboratories, Inc. (NYSE: BIO) and (NYSE: BIO.B), a multinational manufacturer and distributor of life science research and clinical diagnostic products, announced financial results today for the first quarter ended March 31, 2013.
First-quarter reported revenues were $499.7 million, up 2.8% compared to $486.3 million reported for the first quarter of 2012. These results include $6.2 million of sales resulting from the Company's acquisition of AbD Serotec in January 2013. On a currency-neutral basis, quarterly revenues increased 3.6% compared to the same period last year. First-quarter 2013 gross margin was 54.3% compared to 57.3% during the same quarter last year. The year-over-year reduction in gross margin in the first quarter reflected an unfavorable sales mix, inclusion of amortization expense related to acquisitions, higher manufacturing costs, increased royalty and license accruals, obsolete inventory, and costs associated with the new medical device tax in the U.S.
Net income attributable to Bio-Rad for the first quarter of 2013 was $19.5 million, or $0.68 per share on a fully diluted basis compared to $31.0 million, or $1.09 per share during the same period last year. The lower net income in the first quarter of 2013 versus the first quarter of 2012 reflected lower gross profit, higher relative SG&A expenses largely due to employee expenses associated with acquisitions and our investment in new systems, as well as a decrease in other income due to higher realized gains on the sale of equity investments in the first quarter of 2012. These results were somewhat offset by a lower tax rate due to the retroactive reinstatement of the 2012 U.S. research & development tax credit.
"We continued to see softness in the research markets, impacting our results in the first quarter," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "This softness, together with a number of operational factors, affected our profitability. While first-quarter sales growth was slow, our outlook for the remainder of the year is cautiously optimistic."
Life Science
The Life Science segment net sales for the first quarter of 2013 were $156.3 million, up 0.9% compared to the same period last year. On a currency-neutral basis, Life Science segment sales increased 2.5% compared to the first quarter in 2012. Results from the first quarter benefitted from increased sales of Droplet Digital PCR products, the ProteOn XPR36 protein interaction array system and reagents, as well as sales of antibodies and reagents resulting from the Company's acquisition of AbD Serotec. AbD Serotec is one of the world's leading antibody manufacturers offering over 15,000 antibodies, kits, and accessories. The acquisition provides Bio-Rad access to a comprehensive catalog of antibodies and a powerful in vitro antibody generation technology, enabling the validation of total assay solutions on Bio-Rad's research platforms for western blotting, multiplex protein expression, ELISA, and cell sorting product lines. Growth of the Life Science segment during the first quarter of 2013 was offset by continued challenges in the research spending environment, particularly in the U.S. and Europe.
Clinical Diagnostics
Net sales for the Clinical Diagnostics segment in the first quarter of 2013 were $339.9 million, an increase of 3.9% compared to the first quarter for 2012. On a currency-neutral basis, net sales were up 4.3% compared to the same period last year. During the first quarter, the Clinical Diagnostics segment had growth across its product lines most notably from its quality controls and diabetes products as well as placements of the BioPlex® 2200 system. In February, Bio-Rad and Inpeco, a leading company in the field of laboratory automation, entered into a development agreement to build interfaces between Bio-Rad's clinical diagnostics platforms for diabetes, autoimmune disease, and infectious disease testing and Inpeco's FlexLab 3.6 system. The agreement provides clinical diagnostics labs with a complete and integrated solution that automates sample processing, consolidates testing platforms, and improves operating efficiency of its instruments.
Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) May 7, 2013. Interested parties may access the call by dialing 866-515-2909 within the U.S. or 617-399-5123 outside the U.S., access number 66262761.
A live webcast of the conference call may be accessed in the Investor Relations section of our website at www.bio-rad.com. A replay of the call will be available at 888-286-8010 within the U.S. or 617-801-6888 outside the U.S., access number 43386359, for seven days following the call. The webcast of the call will be archived on the Bio-Rad site and may be accessed in the Investor Relations section of www.bio-rad.com.
About Bio-Rad
Bio-Rad Laboratories, Inc. (NYSE: BIO) and (NYSE: BIO.B) has been at the center of scientific discovery for 60 years, manufacturing and distributing a broad range of products for life science research and clinical diagnostic markets. The company is renowned for its commitment to quality and customer service among university and research institutions, hospitals, public health and commercial laboratories, as well as the biotechnology, pharmaceutical, and food safety industries. Founded in 1952, Bio-Rad is based in Hercules, California, and serves more than 100,000 research and industry customers through its global network of operations. The company employs approximately 7,300 people worldwide and had revenues exceeding $2 billion in 2012. Visit us at www.bio-rad.com.
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 most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. 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
March 31,
--------------------
2013 2012
--------- ---------
Net sales $ 499,672 $ 486,277
Cost of goods sold 228,260 207,695
--------- ---------
Gross profit 271,412 278,582
Selling, general and administrative expense 185,917 171,293
Research and development expense 51,941 52,923
--------- ---------
Income from operations 33,554 54,366
Interest expense 10,977 13,196
Foreign exchange losses, net 1,528 1,441
Other (income) expense, net (1,400) (6,450)
--------- ---------
Income before income taxes 22,449 46,179
Provision for income taxes (2,929) (15,235)
--------- ---------
Net income including noncontrolling interests 19,520 30,944
Net (income) loss attributable to noncontrolling
interests (21) 61
--------- ---------
Net income attributable to Bio-Rad $ 19,499 $ 31,005
========= =========
Basic earnings per share:
Net income per share basic attributable to Bio-Rad $ 0.68 $ 1.10
========= =========
Weighted average common shares - basic 28,494 28,201
========= =========
Diluted earnings per share:
Net income per share diluted attributable to Bio-Rad $ 0.68 $ 1.09
========= =========
Weighted average common shares - diluted 28,817 28,553
========= =========
Bio-Rad Laboratories, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
March 31, December 31,
2013 2012
------------ ------------
(UNAUDITED)
Current assets:
Cash and cash equivalents $ 368,629 $ 463,388
Short-term investments 468,203 457,685
Accounts receivable, net 377,548 398,739
Inventories, net 467,321 448,370
Other current assets 183,479 161,750
------------ ------------
Total current assets 1,865,180 1,929,932
Property, plant and equipment, net 422,699 416,938
Goodwill, net 502,145 495,418
Purchased intangibles, net 286,722 260,939
Other assets 380,057 333,526
------------ ------------
Total assets $ 3,456,803 $ 3,436,753
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Current liabilities:
Accounts payable $ 119,340 $ 130,867
Accrued payroll and employee benefits 127,605 135,955
Notes payable and current maturities of long-
term debt 1,698 1,750
Income and other taxes payable 32,956 32,299
Other current liabilities 165,141 169,049
------------ ------------
Total current liabilities 446,740 469,920
Long-term debt, net of current maturities 732,586 732,414
Other long-term liabilities 246,260 223,149
------------ ------------
Total liabilities 1,425,586 1,425,483
Bio-Rad stockholders' equity 2,031,217 2,010,735
Noncontrolling interests - 535
------------ ------------
Total stockholders' equity 2,031,217 2,011,270
------------ ------------
Total liabilities and stockholders' equity $ 3,456,803 $ 3,436,753
============ ============
Bio-Rad Laboratories, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(UNAUDITED)
Three Months
Ended March 31,
2013 2012
------------ ------------
Cash flows from operating activities:
Cash received from customers $ 504,158 $ 501,075
Cash paid to suppliers and employees (459,667) (428,733)
Interest paid (11,675) (12,340)
Income tax payments (14,195) (25,010)
Other operating activities 1,879 268
------------ ------------
Net cash provided by operating activities 20,500 35,260
Cash flows from investing activities:
Payment for acquisitions and long-term
investments (75,056) (15,329)
Other investing activities (40,283) (70,956)
------------ ------------
Net cash used in investing activities (115,339) (86,285)
Cash flows from financing activities:
Payments on long-term debt (74) (225)
Other financing activities 3,222 3,944
------------ ------------
Net cash provided by financing activities 3,148 3,719
Effect of foreign exchange rate changes on cash (3,068) 6,887
------------ ------------
Net decrease in cash and cash equivalents (94,759) (40,419)
Cash and cash equivalents at beginning of period 463,388 574,231
------------ ------------
Cash and cash equivalents at end of period $ 368,629 $ 533,812
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Reconciliation of net income including
noncontrolling interests to net cash provided
by operating activities:
Net income including noncontrolling interests $ 19,520 $ 30,944
Adjustments to reconcile net income including
noncontrolling interests to net cash provided
by operating activities:
Depreciation and amortization 33,290 31,096
Changes in working capital (32,814) (20,753)
Other 504 (6,027)
------------ ------------
Net cash provided by operating activities $ 20,500 $ 35,260
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Investor and Financial Contacts:
Bio-Rad Laboratories, Inc.
Christine Tsingos
Executive Vice President and Chief Financial Officer
Ron Hutton
Vice President, Treasurer
510-724-7000
Email Contact
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