MILFORD, Mass., Feb. 10, 2012 /PRNewswire/ -- SeraCare Life
Sciences, Inc. (NASDAQ: SRLS), a global life sciences company
providing vital products and services to facilitate the discovery,
development and production of human diagnostics and therapeutics,
today reported financial results for its 2012 fiscal first quarter
ended December 31, 2011.
(Logo: http://photos.prnewswire.com/prnh/20110324/NE70714LOGO
)
For the quarter ended December 31,
2011, SeraCare reported revenue of $11.4 million, a 9 percent increase compared with
$10.5 million for the quarter ended
December 31, 2010. Gross margins
increased 6 percentage points to 44 percent, compared with 38
percent for the same quarter in the prior year. The Company
reported net income of $1.0 million,
or $0.05 per share, on a basic and
diluted basis, compared with net income of $1.6 million, or $0.08 per share, on a basic and diluted basis,
for the same quarter in fiscal 2011.
"Our new sales strategy has driven improved revenue for
SeraCare, and we remain sharply focused on exceeding customer
expectations," said Gregory Gould,
Interim President and Chief Executive Officer and Chief Financial
Officer. "We expect this momentum to continue into the next quarter
as we compete for and win business from both new and existing
clients. In addition, we continue to work diligently to explore
strategic alternatives to enhance shareholder value and will update
shareholders when the process is completed and the Board of
Directors makes a recommendation."
The Company posted non-GAAP net income of $1.4 million, or $0.07 per share, for the fiscal 2012 first
quarter compared to non-GAAP net income of $0.7 million, or $0.04 per share, for the fiscal 2011 first
quarter. Non-GAAP net income for the fiscal 2012 first quarter
excluded costs of $0.4 million for
the exploration of strategic alternatives. Non-GAAP net income for
the fiscal 2011 first quarter excluded a benefit of $0.8 million associated with the refund of unused
escrow funds.
In the first quarter of fiscal 2012, Diagnostic &
Biopharmaceutical Products revenue rose 21 percent to $8.8 million from $7.3
million during the same period in fiscal 2011. The
BioServices business posted revenue of $2.5
million, a 20 percent decline from $3.2 million during the same period in fiscal
2011.
The Company continues to generate strong cash flow and maintain
a healthy balance sheet with $19.5
million in cash and virtually no debt.
Conference Call Information:
SeraCare will host a conference call today, February 10, at 8:30 a.m.
ET. The conference call will be webcast live over the
Internet and can be accessed by logging on to the "Investor Center,
Events" section of the SeraCare Life Sciences website at
www.seracare.com. The call can also be accessed by dialing (866)
804-6927 (within the United
States) or (857) 350-1673 (outside the United States). The passcode for
participants is 11801041.
A replay of the call will be available approximately two hours
after the call concludes through February
17, 2012. To access the replay, dial (888) 286-8010 (within
the United States) or (617)
801-6888 (outside the United
States). The passcode is 89716522. The webcast will also be
archived on the Company's website.
About SeraCare Life Sciences, Inc.:
SeraCare serves the global life sciences industry by providing
vital products and services to facilitate the discovery,
development and production of human diagnostics and therapeutics.
The Company's innovative portfolio includes diagnostic controls,
plasma-derived reagents and molecular biomarkers, biobanking and
contract research services. SeraCare's quality systems, scientific
expertise and state-of-the-art facilities support its customers in
meeting the stringent requirements of the highly regulated life
sciences industry.
Forward-Looking Statements:
This press release contains disclosures that are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 about SeraCare Life Sciences, Inc. ("SeraCare"
or the "Company"). All statements regarding our expected future
financial position, results of operations, cash flows, dividends,
financing plans, business strategy, budget, projected costs or cost
savings, capital expenditures, competitive positions, growth
opportunities for existing products or products under development,
plans and objectives of management for future operations and
markets for stock are forward-looking statements. In addition,
forward-looking statements include statements in which we use words
such as "expect," "believe," "anticipate," "intend," or similar
expressions. Although we believe the expectations reflected in such
forward-looking statements are based on reasonable assumptions, we
cannot assure you that these expectations will prove to have been
correct, and actual results may differ materially from those
reflected in the forward-looking statements. Factors that could
cause our actual results to differ from the expectations reflected
in the forward-looking statements in this press release include,
but are not limited to, distraction of management and employees
arising from our evaluation of strategic alternatives, including a
potential sale of the company, continuing expenses associated with
our evaluation of strategic alternatives, uncertainty among
customers, suppliers, employees and others regarding our evaluation
of strategic alternatives and management transition, disruptions
arising from our management transition, expenses associated with
our management transition, potential impairment of sales from
changes in our sales organization, revenue shortfalls arising from
customer transitions to new products, unpredictability in large
customer orders, failure to maintain proper inventory levels,
availability of financing, reductions or terminations of government
or other contracts, interruption in our supply of products or raw
materials, actions of our competitors, changes in the regulatory
environment, delays in new product introductions, lack of market
acceptance of new products, decreased healthcare spending, reduced
margins resulting from a shift in revenue towards services, absence
or loss of acquisition opportunities to higher bidders, the
potential failure to complete any announced acquisition, and
potential failure of any acquisition to produce expected revenues,
profits or synergies. Many of these factors are beyond our ability
to control or predict.
About Non-GAAP Financial Measures:
To supplement our financial statements, which are prepared and
presented in accordance with GAAP, we use the following non-GAAP
financial measures: non-GAAP net income and non-GAAP EPS. The
presentation of this financial information is not intended to be
considered in isolation or as a substitute for, or superior to, the
financial information prepared and presented in accordance with
GAAP. For more information on these non-GAAP financial measures,
please see the table captioned "Reconciliation of non-GAAP measures
to the nearest comparable GAAP measures".
We use these non-GAAP financial measures for financial and
operational decision-making and as a means to facilitate meaningful
period-to-period comparisons. Our management believes that these
non-GAAP financial measures provide meaningful supplemental
information regarding our performance by excluding certain expenses
that may not be indicative of our recurring core business operating
results, meaning our operating performance excluding discrete cash
charges that are infrequent in nature, such as costs related to our
exploration of strategic alternatives and reorganization items. We
continue to incur costs related to our exploration of strategic
alternatives. We believe that both management and investors benefit
from referring to these non-GAAP financial measures in assessing
our performance and when planning, forecasting, and analyzing
future periods. These non-GAAP financial measures also facilitate
management's internal comparisons of our historical performance. We
believe these non-GAAP financial measures are useful to investors
because they allow for greater transparency with respect to key
metrics used by management in its financial and operational
decision-making.
Non-GAAP net income and EPS. We define non-GAAP net
income as net income excluding expenses related to costs associated
with the exploration of strategic alternatives and reorganization
items. We define non-GAAP EPS as non-GAAP net income divided by the
weighted average outstanding shares, on a fully-diluted basis.
There are limitations related to the use of non-GAAP net income
versus net income calculated in accordance with GAAP. The items
that we exclude in our calculation of non-GAAP net income may
differ from the items that our peer companies may exclude when they
report their results of operations. Management compensates for
these limitations by providing specific information regarding the
GAAP amounts excluded from non-GAAP net income and evaluating
non-GAAP net income together with net income calculated in
accordance with GAAP.
The accompanying tables have more details on the GAAP financial
measures that are most directly comparable to non-GAAP financial
measures and the related reconciliation between these financial
measures.
Contacts:
Gregory A. Gould
Interim President and Chief Executive Officer and Chief Financial
Officer
SeraCare Life Sciences, Inc.
508-244-6400
Sarah Cavanaugh
MacDougall Biomedical Communications
781-235-3060
--financial charts to follow--
SERACARE
LIFE SCIENCES, INC.
|
|
|
|
|
|
|
STATEMENTS
OF OPERATIONS — UNAUDITED
|
|
|
|
|
|
|
|
For the
three months ended
|
|
|
December
31,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
Revenue
|
$ 11,367,823
|
|
$ 10,462,497
|
|
Cost of revenue
|
6,407,862
|
|
6,494,610
|
|
Gross profit
|
4,959,961
|
|
3,967,887
|
|
Research and development
expense
|
412,234
|
|
309,247
|
|
Selling, general and
administrative expenses
|
3,087,723
|
|
2,946,928
|
|
Costs related to exploration of
strategic
alternatives
|
404,304
|
|
-
|
|
Reorganization items
|
-
|
|
(846,094)
|
|
Operating income
|
1,055,700
|
|
1,557,806
|
|
Interest (expense) income,
net
|
(34,478)
|
|
22,282
|
|
Other income, net
|
1,200
|
|
452
|
|
Income before income
taxes
|
1,022,422
|
|
1,580,540
|
|
Income tax expense
|
11,132
|
|
-
|
|
Net income
|
$ 1,011,290
|
|
$ 1,580,540
|
|
|
|
|
|
|
Earnings per common
share
|
|
|
|
|
Basic
|
$
0.05
|
|
$
0.08
|
|
Diluted
|
$
0.05
|
|
$
0.08
|
|
Weighted average shares
outstanding
|
|
|
|
|
Basic
|
19,257,840
|
|
18,861,196
|
|
Diluted
|
19,415,105
|
|
19,270,477
|
|
|
|
|
|
SERACARE
LIFE SCIENCES, INC.
|
|
|
|
|
|
|
|
|
|
BALANCE
SHEETS — UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
As
of
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
|
|
|
|
2011
|
|
2011
|
|
ASSETS
|
|
|
|
|
Current assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$ 19,488,126
|
|
$
18,106,164
|
|
|
Accounts receivable, less
allowance for doubtful accounts of $190,000 and
|
|
|
|
|
|
$180,000 as of December
31, 2011 and September 30, 2011, respectively
|
6,707,609
|
|
6,339,422
|
|
|
Taxes receivable
|
4,058
|
|
4,058
|
|
|
Inventory
|
10,679,205
|
|
10,163,407
|
|
|
Prepaid expenses and other
current assets
|
216,617
|
|
127,021
|
|
|
Total
current assets
|
37,095,615
|
|
34,740,072
|
|
Property and equipment,
net
|
5,489,997
|
|
5,669,065
|
|
Goodwill
|
4,284,979
|
|
4,284,979
|
|
Other assets
|
320,026
|
|
384,086
|
|
|
Total
assets
|
$ 47,190,617
|
|
$
45,078,202
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable
|
$
2,271,155
|
|
$
2,035,058
|
|
|
Accrued expenses
|
2,635,392
|
|
2,384,301
|
|
|
Liabilities under capital
leases
|
17,576
|
|
23,525
|
|
|
Total
current liabilities
|
4,924,123
|
|
4,442,884
|
|
Other long-term
liabilities
|
1,969,430
|
|
2,030,943
|
|
|
Total
liabilities
|
6,893,553
|
|
6,473,827
|
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
Preferred stock, $.001 par
value, 5,000,000 shares authorized; no shares
|
|
|
|
|
|
issued or outstanding as
of December 31, 2011 or September 30, 2011
|
-
|
|
-
|
|
|
Common stock, $.001 par value,
35,000,000 shares authorized;
|
|
|
|
|
|
19,376,224 and 19,069,678
shares issued and outstanding
|
|
|
|
|
|
as of December 31, 2011
and September 30, 2011, respectively
|
19,376
|
|
19,070
|
|
|
Additional
paid-in-capital
|
106,467,743
|
|
105,786,650
|
|
|
Retained earnings
(deficit)
|
(66,190,055)
|
|
(67,201,345)
|
|
|
Total
stockholders' equity
|
40,297,064
|
|
38,604,375
|
|
|
Total
liabilities and stockholders' equity
|
$ 47,190,617
|
|
$
45,078,202
|
|
|
|
|
|
|
|
|
Reconciliation of non-GAAP measures to the nearest comparable
GAAP measures:
|
|
Three Months Ended
|
|
|
|
December 31,
2011
|
|
|
|
GAAP
Actual
|
|
Adjustments
|
|
Non-GAAP
Results
|
|
|
|
|
|
|
|
|
|
Costs related to exploration
of
strategic
alternatives
|
|
|
|
$ 404,304
|
(a)
|
|
|
|
|
|
|
|
|
|
|
Reorganization items
|
|
|
|
$
-
|
(b)
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$ 1,011,290
|
|
$ 404,304
|
|
$ 1,415,594
|
|
|
|
|
|
|
|
|
|
Earnings per common share -
diluted
|
|
$
0.05
|
|
|
|
$
0.07
|
|
|
|
|
|
|
|
|
|
Weighted average
shares
outstanding - diluted
|
|
19,415,105
|
|
|
|
19,415,105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
December 31,
2010
|
|
|
|
GAAP
Actual
|
|
Adjustments
|
|
Non-GAAP
Results
|
|
|
|
|
|
|
|
|
|
Costs related to exploration
of
strategic
alternatives
|
|
|
|
$
-
|
(a)
|
|
|
|
|
|
|
|
|
|
|
Reorganization items
|
|
|
|
$ (846,094)
|
(b)
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$ 1,580,540
|
|
$ (846,094)
|
|
$
734,446
|
|
|
|
|
|
|
|
|
|
Earnings per common share -
diluted
|
|
$
0.08
|
|
|
|
$
0.04
|
|
|
|
|
|
|
|
|
|
Weighted average
shares
outstanding - diluted
|
|
19,270,477
|
|
|
|
19,270,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) To eliminate $0.4
million of costs related to exploration of strategic alternatives
for the three months ended December 31, 2011.
|
|
|
|
|
(b) To eliminate a gain of
$0.8 million for income related to reorganization items for the
three months ended December 31, 2010.
|
|
|
SOURCE SeraCare Life Sciences, Inc.