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., +1-510-724-7000, or Web site:
http://www.bio-rad.com/
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