MINNEAPOLIS, Oct. 31,
2023 /PRNewswire/ -- Bio-Techne Corporation (NASDAQ:
TECH) today reported its financial results for the first quarter
ended September 30, 2023.
First Quarter FY2024 Highlights
- First quarter organic revenue increased by 2% (3% reported) to
$276.9 million.
- GAAP earnings per share1) (EPS) was $0.31 versus $0.55
one year ago. Delivered adjusted EPS1) of $0.41 compared to $0.45 one year ago.
- Our ExoDx prostate test and GMP proteins continued their growth
trajectories with test volume increasing 49% and revenue increasing
39%, respectively.
- Our ProteinSimple branded portfolio of instruments and
consumables services increased 9% in the quarter and grew over 18%
excluding China.
- Strong commercial execution in EMEA led to first quarter
organic growth of 15% in the region.
- Cash flow generated from operations increased to $59.4 million, a 6% increase from the prior
year.
- On October 19, 2023, announced
the appointment of current Diagnostics and Genomics President,
Kim Kelderman, as CEO effective
February 1, 2024.
1)On November 29, 2022,
the company executed a four-for-one split of Bio-Techne's common
stock in the form of a stock dividend to all shareholders of record
on November 14, 2022. All references
made to share or per share amounts in this press release have been
retroactively adjusted to reflect the effects of the stock
split.
The Company's financial statements are prepared in accordance
with accounting principles generally accepted in the United States (GAAP). Adjusted diluted
EPS, adjusted net earnings, adjusted gross margin, adjusted
operating income, adjusted tax rate, organic growth, adjusted
operating margin, earnings before interest, taxes, depreciation,
and amortization (EBITDA), and adjusted EBITDA are non-GAAP
measures that exclude certain items detailed later in this press
release under the heading "Use of non-GAAP Adjusted Financial
Measures." A reconciliation of GAAP to non-GAAP financial measures
is included in this press release.
"The Bio-Techne team continues to execute in a challenging
market, with our durable portfolio delivering 2% organic growth
despite the soft biotech funding environment and evolving
macroeconomic landscape in China.
Our European team's performance was particularly impressive with
15% growth in the region," said Chuck
Kummeth, President and Chief Executive Officer of
Bio-Techne. "We delivered these results with a continued focus on
profitability, as our disciplined approach led to an adjusted
operating margin of 31.4%, in-line with our expectations."
Kummeth continued, "Our growth pillars continue to perform well,
including 49% ExoDx Prostate test volume growth, a 39% increase in
our GMP proteins business, as well as 9% growth in our
ProteinSimple branded portfolio of instruments and consumables. In
fact, excluding China, our
ProteinSimple portfolio increased over 18% in the quarter."
Kummeth concluded, "I also want to personally congratulate
Kim Kelderman on his appointment as
CEO effective February 1, 2024. I am
looking forward to working with Kim in his interim role as Chief
Operating Officer and will continue to support him as a Senior
Advisor until my retirement on July 1,
2024. One thing is certain, Kim is inheriting an experienced
and talented team, and I am confident he is the right leader to
execute our strategic playbook and drive results going forward. I
am excited for the future of Bio-Techne and believe our portfolio,
strategy and leadership position the Company incredibly well for
the future."
First Quarter Fiscal 2024
Revenue
Net sales for the first quarter increased 3% to $276.9 million. Organic growth was 2% compared to
the prior year, with acquisitions contributing 1% and foreign
currency exchange having an immaterial impact.
GAAP Earnings Results
GAAP EPS was $0.31 per diluted
share, versus $0.55 in the same
quarter last year. GAAP operating income for the first quarter of
fiscal 2024 decreased 1% to $55.9
million, compared to $56.3
million in the first quarter of fiscal 2023. Prior year GAAP
EPS was favorably impacted by a non-recurring gain of $37.2 million on the sale of our ChemoCentryx
investment and a non-recurring gain of $11.7
million on the sale of our Eminence investment. GAAP
operating margin was 20.2%, compared to 20.9% in the first quarter
of fiscal 2023. Current year GAAP operating margin was unfavorably
impacted by the Lunaphore acquisition and by year-over-year
increases in strategic growth investments.
Non-GAAP Earnings Results
Adjusted EPS decreased to $0.41
per diluted share compared to $0.45
in the same quarter last year. Adjusted operating income for the
first quarter of fiscal 2024 decreased 7% compared to the first
quarter of fiscal 2023. Adjusted operating margin was 31.4%,
compared to 34.8% in the first quarter of fiscal 2023. Adjusted
operating margin was unfavorably impacted by the acquisition of
Lunaphore this year and other strategic growth investments.
Segment Results
Management uses adjusted operating results to monitor and
evaluate performance of the Company's business segments, as
highlighted below.
Protein Sciences Segment
The Company's Protein Sciences segment is one of the world's
leading suppliers of specialized proteins such as cytokines and
growth factors, immunoassays, antibodies and reagents, to the
biotechnology and academic research communities. Additionally, the
segment provides an array of platforms useful in various areas of
protein analysis. Protein Sciences segment's first quarter
fiscal 2024 net sales were $204.7
million, an increase of 2% from $199.9 million for the first quarter of fiscal
2023. Organic growth for the segment was 2%, with foreign currency
exchange having an immaterial impact. Protein Sciences segment's
operating margin was 43.2% in the first quarter of fiscal 2024
compared to 43.0% in the first quarter of fiscal 2023.
Diagnostics and Genomics Segment
The Company's Diagnostics and Genomics segment provides blood
chemistry and blood gas quality controls, hematology instrument
controls, immunoassays and other bulk and custom reagents for the
in vitro diagnostic market. The Diagnostics and Genomics segment
also develops and provides spatial biology products as well as
exosome-based diagnostics for various pathologies, including
prostate cancer. The Diagnostics and Genomics segment's first
quarter fiscal 2024 net sales were $72.8
million, an increase of 4% from $69.9
million for the first quarter of fiscal 2023. Organic
revenue growth was flat for the first quarter of fiscal 2024, with
acquisitions having a 3% impact and foreign exchange having a
favorable impact of 1%. The Diagnostics and Genomics segment's
operating margin was 0.7% in the first quarter of fiscal 2024
compared to 12.4% in the first quarter of fiscal 2023. The
segment's operating margin decreased primarily due to the
acquisition of Lunaphore this year along with other strategic
growth investments and unfavorable product mix.
Conference Call
Bio-Techne will host an earnings conference call today,
October 31, 2023 at 8:00 a.m. CDT. To listen, please dial
1-877-407-9208 or 1-201-493-6784 for international callers, and
reference conference ID 13741775. The earnings call can also be
accessed via webcast through the following link
https://investors.bio-techne.com/ir-calendar.
A recorded rebroadcast will be available for interested parties
unable to participate in the live conference call by dialing
1-844-512- 2921 or 1-412-317-6671 (for international callers) and
referencing Conference ID 13741775. The replay will be available
from 11:00 a.m. CDT on Tuesday, October 31,
2023, until 11:00 p.m. CST on Thursday, November 30, 2023.
Use of non-GAAP Adjusted Financial Measures:
This press release contains financial measures that have not
been calculated in accordance with accounting principles generally
accepted in the U.S. (GAAP). These non-GAAP measures include:
- Organic growth
- Adjusted diluted earnings per share
- Adjusted net earnings
- Adjusted tax rate
- Adjusted gross margin
- Adjusted operating income
- Adjusted operating margin
- Earnings before interest, taxes, depreciation, and amortization
(EBITDA)
- Adjusted EBITDA
We provide these measures as additional information regarding
our operating results. We use these non-GAAP measures internally to
evaluate our performance and in making financial and operational
decisions, including with respect to incentive compensation. We
believe that our presentation of these measures provides investors
with greater transparency with respect to our results of operations
and that these measures are useful for period-to-period comparison
of results.
Our non-GAAP financial measure of organic growth represents
revenue growth excluding revenue from acquisitions within the
preceding 12 months, the impact of foreign currency, as well as the
impact of partially-owned consolidated subsidiaries. Excluding
these measures provides more useful period-to-period comparison of
revenue results as it excludes the impact of foreign currency
exchange rates, which can vary significantly from period to period,
and revenue from acquisitions that would not be included in the
comparable prior period. Revenues from partially-owned subsidiaries
consolidated in our financial statements are also excluded from our
organic revenue calculation, as those revenues are not fully
attributable to the Company. There was no revenue from
partially-owned consolidated subsidiaries for the quarter ended
September 30, 2023 due to the sale of
Changzhou Eminence Biotechnology Co., Ltd. (Eminence) in the first
quarter of fiscal 2023. Revenue from partially-owned consolidated
subsidiaries was $2.0 million for the
year ended June 30, 2023.
Our non-GAAP financial measures for adjusted gross margin,
adjusted operating margin, adjusted EBITDA, and adjusted net
earnings, in total and on a per share basis, exclude stock-based
compensation, the costs recognized upon the sale of acquired
inventory, amortization of acquisition intangibles, acquisition
related expenses inclusive of the changes in fair value of
contingent consideration, and other non-recurring items including
non-recurring costs, goodwill and long-lived asset impairments, and
gains. Stock-based compensation is excluded from non-GAAP adjusted
net earnings because of the nature of this charge, specifically the
varying available valuation methodologies, subjection assumptions,
variety of award types, and unpredictability of amount and timing
of employer related tax obligations. The Company excludes
amortization of purchased intangible assets, purchase accounting
adjustments, including costs recognized upon the sale of acquired
inventory and acquisition-related expenses inclusive of the changes
in fair value contingent consideration, and other non-recurring
items including gains or losses on legal settlements, goodwill and
long-lived asset impairment charges, and one-time assessments from
this measure because they occur as a result of specific events, and
are not reflective of our internal investments, the costs of
developing, producing, supporting and selling our products, and the
other ongoing costs to support our operating structure.
Additionally, these amounts can vary significantly from period to
period based on current activity. The Company also excludes revenue
and expense attributable to partially-owned consolidated
subsidiaries in the calculation of our non-GAAP financial measures
as the revenues and expenses are not fully attributable to the
Company.
The Company's non-GAAP adjusted operating margin and adjusted
net earnings, in total and on a per share basis, also excludes
stock-based compensation expense, which is inclusive of the
employer portion of payroll taxes on those stock awards,
restructuring, gain and losses from investments, as they are not
part of our day-to-day operating decisions (excluding our equity
method investment in Wilson Wolf as
it is certain to be acquired in the future) and certain adjustments
to income tax expense. Additionally, gains and losses from
investments that are either isolated or cannot be expected to occur
again with any predictability are excluded. Costs related to
restructuring activities, including reducing overhead and
consolidating facilities, are excluded because we believe they are
not indicative of our normal operating costs. The Company
independently calculates a non-GAAP adjusted tax rate to be applied
to the identified non-GAAP adjustments considering the impact of
discrete items on these adjustments and the jurisdictional mix of
the adjustments. In addition, the tax impact of other discrete and
non-recurring charges which impact our reported GAAP tax rate are
adjusted from net earnings. We believe these tax items can
significantly affect the period-over-period assessment of operating
results and not necessarily reflect costs and/or income associated
with historical trends and future results.
Investors are encouraged to review the reconciliations of
adjusted financial measures used in this press release to their
most directly comparable GAAP financial measures as provided with
the financial statements attached to this press release.
Forward Looking Statements:
Our press releases may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act. Such
statements involve risks and uncertainties that may affect the
actual results of operations. The following important factors,
among others, have affected and, in the future, could affect the
Company's actual results: the effect of new branding and marketing
initiatives, the integration of new businesses and leadership, the
introduction and acceptance of new products, the funding and focus
of the types of research by the Company's customers, the impact of
the growing number of producers of biotechnology research products
and related price competition, general economic conditions,
the impact of currency exchange rate fluctuations, and the costs
and results of research and product development efforts of the
Company and of companies in which the Company has invested or with
which it has formed strategic relationships.
For additional information concerning such factors, see the
section titled "Risk Factors" in the Company's annual report on
Form 10-K and quarterly reports on Form 10-Q as filed with the
Securities and Exchange Commission. We undertake no obligation to
update or revise any forward-looking statements we make in our
press releases due to new information or future events. Investors
are cautioned not to place undue emphasis on these statements.
Bio-Techne Corporation (NASDAQ: TECH) is a global life sciences
company providing innovative tools and bioactive reagents for the
research and clinical diagnostic communities. Bio-Techne products
assist scientific investigations into biological processes and the
nature and progress of specific diseases. They aid in drug
discovery efforts and provide the means for accurate clinical tests
and diagnoses. With thousands of products in its portfolio,
Bio-Techne generated approximately $1.1
billion in net sales in fiscal 2023 and has approximately
3,200 employees worldwide. For more information on Bio-Techne and
its brands, please visit www.bio techne.com.
Contact:
|
David Clair, Vice
President, Investor Relations & Corporate
Development
|
|
David.Clair@bio-techne.com
|
|
612-656-4416
|
BIO-TECHNE
CORPORATION
|
CONSOLIDATED STATEMENTS
OF EARNINGS
|
(In thousands, except
per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
QUARTER
|
|
|
|
ENDED
|
|
|
|
9/30/2023
|
|
9/30/2022
|
|
Net Sales
|
|
$
|
276,935
|
|
$
|
269,655
|
|
Cost of
sales
|
|
|
91,744
|
|
|
90,060
|
|
Gross margin
|
|
|
185,191
|
|
|
179,595
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
105,331
|
|
|
99,375
|
|
Research and
development
|
|
|
23,998
|
|
|
23,903
|
|
Total Operating
Expenses
|
|
|
129,329
|
|
|
123,278
|
|
Operating
income
|
|
|
55,862
|
|
|
56,317
|
|
Other income
(expense)
|
|
|
(6,304)
|
|
|
47,399
|
|
Earnings before income
taxes
|
|
|
49,558
|
|
|
103,716
|
|
Income taxes
(benefit)
|
|
|
(1,435)
|
|
|
13,982
|
|
Net earnings, including
noncontrolling interest
|
|
$
|
50,993
|
|
$
|
89,734
|
|
Net earnings
attributable to noncontrolling interest
|
|
|
-
|
|
|
179
|
|
Net earnings
attributable to Bio-Techne
|
|
$
|
50,993
|
|
$
|
89,555
|
|
Earnings per
share1):
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.32
|
|
$
|
0.57
|
|
Diluted
|
|
$
|
0.31
|
|
$
|
0.55
|
|
Weighted average common
shares outstanding1)
|
|
|
|
|
|
|
|
Basic
|
|
|
158,130
|
|
|
156,929
|
|
Diluted
|
|
|
161,940
|
|
|
162,172
|
|
|
1)Prior
period share and per share amounts have been retroactively adjusted
to reflect the four-for-one stock split effected in the form of a
stock dividend in November 2022.
|
BIO-TECHNE
CORPORATION
|
CONSOLIDATED CONDENSED
BALANCE SHEETS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
9/30/2023
|
|
6/30/2023
|
ASSETS
|
|
|
|
|
|
|
Cash and
equivalents
|
|
$
|
148,663
|
|
$
|
180,571
|
Short-term
available-for-sale investments
|
|
|
—
|
|
|
23,739
|
Accounts receivable,
net
|
|
|
204,570
|
|
|
218,468
|
Inventories
|
|
|
186,080
|
|
|
171,638
|
Other current
assets
|
|
|
52,164
|
|
|
27,066
|
Total current
assets
|
|
|
591,477
|
|
|
621,482
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
|
231,683
|
|
|
226,200
|
Right of use
asset
|
|
|
102,277
|
|
|
98,326
|
Goodwill and intangible
assets, net
|
|
|
1,548,347
|
|
|
1,407,382
|
Other assets
|
|
|
281,576
|
|
|
285,302
|
Total assets
|
|
$
|
2,755,360
|
|
$
|
2,638,692
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
78,912
|
|
$
|
77,306
|
Contract
liabilities
|
|
|
24,516
|
|
|
23,069
|
Income taxes
payable
|
|
|
5,938
|
|
|
12,022
|
Contingent
consideration payable
|
|
|
1,750
|
|
|
3,500
|
Operating lease
liabilities - current
|
|
|
12,198
|
|
|
11,199
|
Other current
liabilities
|
|
|
4,440
|
|
|
1,413
|
Total current
liabilities
|
|
|
127,754
|
|
|
128,509
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
|
83,134
|
|
|
88,982
|
Long-term debt
obligations
|
|
|
440,000
|
|
|
350,000
|
Operating lease
liabilities
|
|
|
97,332
|
|
|
93,766
|
Other long-term
liabilities
|
|
|
9,394
|
|
|
10,919
|
Stockholders'
equity
|
|
|
1,997,746
|
|
|
1,966,516
|
Total liabilities and
stockholders' equity
|
|
$
|
2,755,360
|
|
$
|
2,638,692
|
BIO-TECHNE
CORPORATION
|
RECONCILIATION OF
ADJUSTED GROSS MARGIN PERCENTAGE
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
QUARTER
|
|
|
ENDED
|
|
|
9/30/2023
|
|
9/30/2022
|
Gross margin percentage
- GAAP
|
|
66.9
|
%
|
|
66.6
|
%
|
Identified
adjustments:
|
|
|
|
|
|
|
Costs recognized upon
sale of acquired inventory
|
|
0.0
|
%
|
|
0.1
|
%
|
Amortization of
intangibles
|
|
4.3
|
%
|
|
4.1
|
%
|
Stock compensation
expense - COGS
|
|
0.1
|
%
|
|
0.1
|
%
|
Impact of
partially-owned consolidated subsidiaries1)
|
|
—
|
%
|
|
0.0
|
%
|
Gross margin percentage
- Adjusted
|
|
71.3
|
%
|
|
70.9
|
%
|
|
1) Includes the quarterly results of
the partially-owned consolidated subsidiary prior to the sale of
this partially-owned consolidated subsidiary to a third party in
the first fiscal quarter of 2023.
|
BIO-TECHNE
CORPORATION
|
RECONCILIATION OF
ADJUSTED OPERATING MARGIN PERCENTAGE
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
QUARTER
|
|
|
ENDED
|
|
|
9/30/2023
|
|
9/30/2022
|
Operating margin
percentage - GAAP
|
|
20.2
|
%
|
|
20.9
|
%
|
Identified
adjustments:
|
|
|
|
|
|
|
Costs recognized upon
sale of acquired inventory
|
|
0.0
|
%
|
|
0.1
|
%
|
Amortization of
intangibles
|
|
7.2
|
%
|
|
7.2
|
%
|
Acquisition related
expenses and other
|
|
(0.2)
|
%
|
|
0.1
|
%
|
Stock-based
compensation, inclusive of employer taxes
|
|
4.2
|
%
|
|
5.8
|
%
|
Restructuring
costs
|
|
0.0
|
%
|
|
0.8
|
%
|
Impact of
partially-owned consolidated subsidiaries1)
|
|
—
|
%
|
|
(0.1)
|
%
|
Operating margin
percentage - Adjusted
|
|
31.4
|
%
|
|
34.8
|
%
|
|
1) Includes the quarterly results of
the partially-owned consolidated subsidiary prior to the sale of
this partially-owned consolidated subsidiary to a third party in
the first fiscal quarter of 2023. As disclosed in our use of
Non-GAAP Adjusted Financial Measures, the adjusted operating margin
percentages excludes partially-owned consolidated revenue and
expense amounts. The excluded revenue attributable to
partially-owned consolidated subsidiaries had no impact on the
operating margin for the first quarter of fiscal 2024, and a (0.3%)
impact for the comparative prior year. The excluded operating
(income)/loss had no impact on the operating margin for the first
quarter of fiscal 2024, and 0.2% impact for the first quarter
of fiscal 2023.
|
BIO-TECHNE
CORPORATION
|
NON-GAAP ADJUSTED
CONSOLIDATED NET EARNINGS and EARNINGS per SHARE
|
(In thousands, except
per share data) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
QUARTER
|
|
|
|
ENDED
|
|
|
|
9/30/2023
|
|
9/30/2022
|
|
|
Net earnings before
taxes - GAAP
|
|
$
|
49,558
|
|
$
|
103,716
|
|
|
Identified adjustments
attributable to Bio-Techne:
|
|
|
|
|
|
|
|
|
Costs recognized upon
sale of acquired inventory
|
|
|
181
|
|
|
300
|
|
|
Amortization of
intangibles
|
|
|
19,851
|
|
|
19,283
|
|
|
Amortization of Wilson
Wolf intangible assets and acquired inventory
|
|
|
4,208
|
|
|
—
|
|
|
Acquisition related
expenses and other
|
|
|
(442)
|
|
|
678
|
|
|
Gain on sale of
partially-owned consolidated subsidiaries
|
|
|
—
|
|
|
(11,682)
|
|
|
Stock-based
compensation, inclusive of employer taxes
|
|
|
11,494
|
|
|
15,458
|
|
|
Restructuring
costs
|
|
|
89
|
|
|
2,170
|
|
|
Investment (gain) loss
and other non-operating
|
|
|
(283)
|
|
|
(38,087)
|
|
|
Impact of
partially-owned consolidated subsidiaries1)
|
|
|
—
|
|
|
(420)
|
|
|
Net earnings before
taxes - Adjusted1)
|
|
$
|
84,656
|
|
$
|
91,416
|
|
|
Non-GAAP tax
rate
|
|
|
22.0
|
%
|
|
21.0
|
%
|
|
Non-GAAP tax
expense
|
|
$
|
18,615
|
|
$
|
19,197
|
|
|
Non-GAAP adjusted net
earnings attributable to Bio-Techne1)
|
|
$
|
66,041
|
|
$
|
72,219
|
|
|
Earnings per share -
diluted - Adjusted1,2)
|
|
$
|
0.41
|
|
$
|
0.45
|
|
|
|
1) Includes the quarterly results of
the partially-owned consolidated subsidiary prior to the sale of
this partially-owned consolidated subsidiary to a third party in
the first fiscal quarter of 2023.
|
2) Prior
period share and per share amounts have been retroactively adjusted
to reflect the four-for-one stock split effected in the form of a
stock dividend in November 2022.
|
BIO-TECHNE
CORPORATION
|
NON-GAAP adjusted tax
rate (In percentages)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
QUARTER
|
|
|
|
ENDED
|
|
|
|
9/30/2023
|
|
9/30/2022
|
|
GAAP effective tax
rate
|
|
(2.9)
|
%
|
|
13.5
|
%
|
|
Discrete
items
|
|
27.4
|
|
|
8.4
|
|
|
Impact of non-taxable
net gain
|
|
—
|
|
|
1.6
|
|
|
Long-term GAAP tax
rate
|
|
24.5
|
%
|
|
23.5
|
%
|
|
Rate impact
items
|
|
|
|
|
|
|
|
Stock based
compensation
|
|
(2.7)
|
%
|
|
(3.1)
|
%
|
|
Other
|
|
0.2
|
|
|
0.6
|
|
|
Total rate impact
items
|
|
(2.5)
|
%
|
|
(2.5)
|
%
|
|
Non-GAAP adjusted tax
rate
|
|
22.0
|
%
|
|
21.0
|
%
|
|
BIO-TECHNE
CORPORATION
|
SEGMENT
REVENUE
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
QUARTER
|
|
|
ENDED
|
|
|
9/30/2023
|
|
9/30/2022
|
Protein Sciences
segment revenue
|
|
$
|
204,655
|
|
$
|
199,949
|
Diagnostics and
Genomics segment revenue
|
|
|
72,797
|
|
|
69,904
|
lntersegment
revenue
|
|
|
(517)
|
|
|
(198)
|
Consolidated
revenue
|
|
$
|
276,935
|
|
$
|
269,655
|
BIO-TECHNE
CORPORATION
|
SEGMENT OPERATING
INCOME
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
QUARTER
|
|
|
ENDED
|
|
|
9/30/2023
|
|
9/30/2022
|
Protein Sciences
segment operating income
|
|
$
|
88,361
|
|
$
|
85,942
|
Diagnostics and
Genomics segment operating income
|
|
|
527
|
|
|
8,638
|
Segment operating
income
|
|
|
88,888
|
|
|
94,580
|
Corporate general,
selling, and administrative
|
|
|
(1,999)
|
|
|
(1,402)
|
Adjusted operating
income
|
|
|
86,889
|
|
|
93,178
|
Cost recognized upon
sale of acquired inventory
|
|
|
(181)
|
|
|
(300)
|
Amortization of
intangibles
|
|
|
(19,851)
|
|
|
(19,283)
|
Acquisition related
expenses and other
|
|
|
588
|
|
|
(297)
|
Impact of
partially-owned consolidated subsidiaries1)
|
|
|
—
|
|
|
647
|
Stock-based
compensation, inclusive of employer taxes
|
|
|
(11,494)
|
|
|
(15,458)
|
Restructuring
costs
|
|
|
(89)
|
|
|
(2,170)
|
Operating
income
|
|
$
|
55,862
|
|
$
|
56,317
|
|
1) Includes the quarterly results of
the partially-owned consolidated subsidiary prior to the sale of
this partially-owned consolidated subsidiary to a third party in
the first fiscal quarter of 2023.
|
BIO-TECHNE
CORPORATION
|
RECONCILIATION OF GAAP
NET INCOME TO ADJUSTED EBITDA
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
QUARTER
|
|
|
ENDED
|
|
|
9/30/2023
|
|
9/30/2022
|
|
Net earnings
attributable to Bio-Techne
|
$
|
50,993
|
|
$
|
89,555
|
|
Net interest expense
(income)
|
|
4,003
|
|
|
3,357
|
|
Depreciation and
amortization
|
|
28,540
|
|
|
26,641
|
|
Income taxes
(benefit)
|
|
(1,435)
|
|
|
13,982
|
|
EBITDA attributable to
Bio-Techne
|
|
82,101
|
|
|
133,535
|
|
Costs recognized upon
sale of acquired inventory
|
|
181
|
|
|
300
|
|
Acquisition related
expenses and other
|
|
(442)
|
|
|
678
|
|
Amortization of Wilson
Wolf intangible assets and acquired inventory
|
|
4,208
|
|
|
—
|
|
Gain on sale of
partially-owned consolidated subsidiaries
|
|
—
|
|
|
(11,682)
|
|
Stock-based
compensation, inclusive of employer taxes
|
|
11,494
|
|
|
15,458
|
|
Restructuring
costs
|
|
89
|
|
|
2,170
|
|
Investment (gain) loss
and other
|
|
(283)
|
|
|
(38,087)
|
|
Impact of
partially-owned consolidated subsidiaries1)
|
|
—
|
|
|
(420)
|
|
Adjusted
EBITDA
|
$
|
97,348
|
|
$
|
101,952
|
|
|
|
1)
|
Net earnings
attributable to Bio-Techne excludes non-controlling interest of
approximately 43% of the GAAP net earnings or loss for Eminence. To
prevent double-counting the non-controlling interest component
within our Adjusted EBITDA calculation, the amount accounts for
both the non-controlling interest within the GAAP metric and the
impact of partially-owned consolidated subsidiaries within our
Non-GAAP adjusted consolidated net earnings table.
|
BIO-TECHNE
CORPORATION
|
CONDENSED CASH
FLOW
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
QUARTER
|
|
|
ENDED
|
|
|
9/30/2023
|
|
9/30/2022
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net earnings
|
|
$
|
50,993
|
|
$
|
89,734
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
28,540
|
|
|
26,641
|
Costs recognized on
sale of acquired inventory
|
|
|
181
|
|
|
300
|
Deferred income
taxes
|
|
|
(11,591)
|
|
|
(4,767)
|
Stock-based
compensation expense
|
|
|
10,093
|
|
|
14,461
|
Gain on sale of CCXI
investment
|
|
|
—
|
|
|
(37,176)
|
Fair value adjustment
to available-for-sale investments
|
|
|
(283)
|
|
|
(911)
|
(Gain) loss on equity
method investment
|
|
|
2,382
|
|
|
—
|
Fair value adjustment
to contingent consideration payable
|
|
|
(1,750)
|
|
|
(100)
|
Gain on sale of
Eminence
|
|
|
—
|
|
|
(11,682)
|
Other operating
activities
|
|
|
(19,182)
|
|
|
(20,419)
|
Net cash provided by
(used in) operating activities
|
|
|
59,383
|
|
|
56,081
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Proceeds from sale of
available-for-sale investments
|
|
|
23,759
|
|
|
14,509
|
Purchases of
available-for-sale investments
|
|
|
—
|
|
|
(14,500)
|
Proceeds from sale of
CCXI investment
|
|
|
—
|
|
|
73,219
|
Additions to property
and equipment
|
|
|
(13,592)
|
|
|
(9,556)
|
Acquisitions, net of
cash acquired
|
|
|
(166,426)
|
|
|
(101,184)
|
Distributions from
(Investments in) Wilson Wolf
|
|
|
2,149
|
|
|
—
|
Proceeds from sale of
Eminence
|
|
|
—
|
|
|
17,824
|
Net cash provided by
(used in) investing activities
|
|
|
(154,110)
|
|
|
(19,688)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
Cash
dividends
|
|
|
(12,654)
|
|
|
(12,545)
|
Proceeds from stock
option exercises
|
|
|
14,394
|
|
|
11,950
|
Long-term debt
activity, net
|
|
|
90,000
|
|
|
8,661
|
Re-purchases of common
stock
|
|
|
—
|
|
|
(19,562)
|
Taxes paid on RSUs and
net share settlements
|
|
|
(20,228)
|
|
|
(17,853)
|
Other financing
activity
|
|
|
—
|
|
|
(2,457)
|
Net cash provided by
(used in) financing activities
|
|
|
71,512
|
|
|
(31,806)
|
Effect of exchange rate
changes on cash and cash equivalents
|
|
|
(8,693)
|
|
|
(11,897)
|
Net increase (decrease)
in cash and cash equivalents
|
|
|
(31,908)
|
|
|
(7,310)
|
Cash and cash
equivalents at beginning of period
|
|
|
180,571
|
|
|
172,567
|
Cash and cash
equivalents at end of period
|
|
$
|
148,663
|
|
$
|
165,257
|
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SOURCE Bio-Techne Corporation