Bio-Rad Reports Third-Quarter 2013 Financial Results

Marketwired

HERCULES, CA--(Marketwired - Nov 7, 2013) - 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 third quarter ended September 30, 2013.

Third-quarter reported revenues were $505.1 million, an increase of 1.3% compared to $498.7 million reported for the third quarter of 2012. These results include $5.5 million of sales resulting from the Company's acquisition of AbD Serotec in January 2013. On a currency-neutral basis, quarterly revenues increased 1.8% compared to the same period last year. Third-quarter gross margin was 56.3%, compared to 54.9% during the same quarter in 2012.

The Company recorded a net loss for the third quarter of ($7.1) million, or ($0.25) per share on a fully diluted basis versus net income of $42.6 million, or $1.49 per share reported for the same period last year. These results include interest expense of $15.6 million associated with our decision to redeem certain bonds in the third quarter of 2013 as well as the recording of an accrued expense of $20 million in connection with the Company's initial efforts to resolve the previously disclosed investigation of the Company in connection with the United States Foreign Corrupt Practices Act. 

Year-to-date revenues were $1.53 billion, an increase of 2.3% compared to $1.50 billion reported in the first three quarters of 2012. Adjusting for the impact of currency, year-to-date revenue growth was 3.1%.

Year-to-date net income for the first three quarters of 2013 was $47.7 million, or $1.65 per share on a fully diluted basis compared to $122.2 million, or $4.27 per share reported during the same period in 2012.

In addition to the impact of the bond redemption and legal accrual mentioned above, the lower net income in the third quarter and year-to-date of 2013, when compared to the third quarter and year-to-date of 2012, was the result of higher SG&A expense, primarily due to employee expenses associated with acquisitions; expenses associated with the enterprise resource planning (ERP) implementation; as well as certain events that occurred during the first three quarters of 2012 that favorably impacted results in 2012 including reductions in the valuation of the contingent consideration associated with the QuantaLife acquisition of $8.5 million in the third quarter of 2012 and $16.0 million in the nine months ended September 30, 2012. 

"As anticipated, third-quarter results continued the modest pace of growth set in the first half of the year," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "We continued to see a softness in some of our markets this quarter, which impacted our results. Although we expect more of the same for the rest of 2013, we remain focused on new products and investments in our future."

Life Science
The Life Science segment net sales for the third quarter were $162.9 million, down 2.5% compared to the same period last year. On a currency-neutral basis, Life Science segment sales decreased by 1.2% compared to the third quarter of 2012. Third-quarter 2013 results reflected continued slowness in the research spending environment. Performance of the Life Science segment was positively impacted by sales of antibodies and reagents from the Company's acquisition of AbD Serotec, as well as sales of biochromatography and cell sorting instruments. 

Clinical Diagnostics
Reported net sales for the Clinical Diagnostics segment in the third quarter were $338.8 million, an increase of 3.2% compared to the third quarter in 2012 on both a reported and currency-neutral basis. During the quarter, the Clinical Diagnostics segment had growth across most product lines most notably from quality controls, diabetes, and autoimmune products. Strength in China and Latin America markets was offset by weakness of sales in Western Europe. 

Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) November 7, 2013. Interested parties may access the call at 866-543-6403 (in the U.S.) or 617-213-8896 (international), access number 45118924.

A live webcast of the conference call may be accessed in the Investor Relations area of 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 78604858, for seven days following the call. The webcast of the call will be archived on the Bio-Rad site for replay for up to a year and may be accessed in the Investor Relations area 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 7,600 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, 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 Operations  
                         
(in thousands, except per share data)  
(UNAUDITED)  
                         
    Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
    2013     2012     2013     2012  
Net sales   $ 505,066     $ 498,697     $ 1,530,059     $ 1,495,396  
  Cost of goods sold     220,850       224,927       674,330       654,784  
Gross profit     284,216       273,770       855,729       840,612  
                                 
  Selling, general and administrative expense     202,238       160,134       583,486       492,913  
  Research and development expense     52,920       47,795       155,104       150,637  
Income from operations     29,058       65,841       117,139       197,062  
                                 
  Interest expense     31,611       11,901       54,252       37,498  
  Foreign exchange losses, net     3,330       448       5,723       3,508  
  Other (income) expense, net     (667 )     (1,511 )     (10,711 )     (14,692 )
(Loss) income before income taxes     (5,216 )     55,003       67,875       170,748  
                                 
  Provision for income taxes     (1,883 )     (12,383 )     (20,200 )     (48,375 )
Net (loss) income including noncontrolling interests     (7,099 )     42,620       47,675       122,373  
                                 
  Net (income) loss attributable to noncontrolling interests     -       13       (21 )     (148 )
Net (loss) income attributable to Bio-Rad   $ (7,099 )   $ 42,633     $ 47,654     $ 122,225  
                                 
Basic (loss) earnings per share:                                
  Net (loss) income per basic share attributable to Bio-Rad   $ (0.25 )   $ 1.51     $ 1.67     $ 4.33  
                                 
  Weighted average common shares - basic     28,603       28,312       28,545       28,255  
                                 
Diluted (loss) earnings per share:                                
  Net (loss) income per diluted share attributable to Bio-Rad   $ (0.25 )   $ 1.49     $ 1.65     $ 4.27  
                                 
  Weighted average common shares - diluted     28,603       28,645       28,870       28,609  
                                   
                                   
 
Bio-Rad Laboratories, Inc.
Condensed Consolidated Balance Sheets
 
(In thousands)
         
    September 30,
2013
  December 31,
2012
    (UNAUDITED)    
Current assets:            
  Cash and cash equivalents   $ 291,793   $ 463,388
  Short-term investments     270,027     457,685
  Accounts receivable, net     383,471     398,739
  Inventories, net     523,503     455,120
  Other current assets     205,749     161,750
    Total current assets     1,674,543     1,936,682
             
Property, plant and equipment, net     425,076     416,938
Goodwill, net     513,705     495,418
Purchased intangibles, net     276,054     260,939
Other assets     391,030     333,526
    Total assets   $ 3,280,408   $ 3,443,503
             
             
Current liabilities:            
  Accounts payable   $ 131,899   $ 130,867
  Accrued payroll and employee benefits     133,218     135,955
  Notes payable and current maturities of long-term debt     1,705     1,750
  Income and other taxes payable     32,424     34,779
  Other current liabilities     163,639     169,049
    Total current liabilities     462,885     472,400
             
Long-term debt, net of current maturities     435,541     732,414
Other long-term liabilities     257,742     223,149
    Total liabilities     1,156,168     1,427,963
             
Bio-Rad stockholders' equity     2,124,240     2,015,005
Noncontrolling interests     -     535
    Total stockholders' equity     2,124,240     2,015,540
    Total liabilities and stockholders' equity   $ 3,280,408   $ 3,443,503
                 
                 
   
Bio-Rad Laboratories, Inc.  
Condensed Consolidated Statements of Cash Flows  
   
(In thousands)  
(UNAUDITED)  
             
    Nine Months Ended
September 30,
 
    2013     2012  
                 
Cash flows from operating activities:                
  Cash received from customers   $ 1,531,251     $ 1,512,991  
  Cash paid to suppliers and employees     (1,341,006 )     (1,227,911 )
  Interest paid     (50,188 )     (35,929 )
  Income tax payments     (50,140 )     (77,411 )
  Other operating activities     12,118       8,504  
  Net cash provided by operating activities     102,035       180,244  
                 
Cash flows from investing activities:                
  Payments for acquisitions and long-term investments     (68,510 )     (38,479 )
  Other investing activities     105,425       (302,285 )
  Net cash provided by (used in) investing activities     36,915       (340,764 )
                 
Cash flows from financing activities:                
  Payments on long-term borrowings     (300,178 )     (496 )
  Other financing activities     (15,287 )     9,569  
  Net cash (used in) provided by financing activities     (315,465 )     9,073  
                 
Effect of foreign exchange rate changes on cash     4,920       3,673  
                 
Net decrease in cash and cash equivalents     (171,595 )     (147,774 )
Cash and cash equivalents at beginning of period     463,388       574,231  
Cash and cash equivalents at end of period   $ 291,793     $ 426,457  
                 
                 
Reconciliation of net income including noncontrolling interests to net cash provided by operating activities:                
                 
Net income including noncontrolling interests   $ 47,675     $ 122,373  
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:                
  Depreciation and amortization     105,181       94,885  
  Changes in working capital     (59,545 )     (31,101 )
  Other     8,724       (5,913 )
Net cash provided by operating activities   $ 102,035     $ 180,244  
                 
                 
Contact:
Investor and Financial
Bio-Rad Laboratories, Inc.
Christine Tsingos
Executive Vice President and Chief Financial Officer
Ron Hutton
Vice President, Treasurer
510-724-7000
Email Contact

Rates

View Comments (0)