Bio-Rad Laboratories Reports Third Quarter Financial Results
HERCULES, Calif., Nov. 6 /PRNewswire-FirstCall/ -- Bio-Rad
Laboratories, Inc. (Amex: BIO; BIO.b), a multinational manufacturer
and distributor of life science research products and clinical
diagnostics, announced financial results for the third quarter and
nine-month period ended September 30, 2003. Net sales for the
quarter were $247.7 million, up about 10 percent, or approximately
4 percent on a currency-neutral basis, compared to the $224.9
million reported for the same quarter of 2002. Net income for the
quarter was $9.7 million. Net income included approximately $13.6
million (or $9.1 million net of taxes) of one-time charges
associated with the redemption of the Company's 11 5/8% Senior
Subordinated Notes due 2007 and refinancing of the Company's
revolving credit facility. Year-to-date revenues grew by 13.5
percent to $737.2 million as compared to the same period last year.
Normalizing for the impact of currency effects, growth was 4.9
percent. Year-to-date gross margin was 56.5 percent compared to
57.4 percent over the same period of 2002. Earnings for the
nine-month period were $57.0 million, or $2.25 per share. Third
Quarter Highlights -- Overall Company sales for the third quarter
grew by 10.2 percent, or by 4.1 percent on a currency-neutral
basis. -- Third quarter basic earnings were $0.38 per share, or
$0.37 per share on a diluted basis. -- Excluding one-time financing
charges, basic earnings were $0.74 per share, or $0.71 per share on
a diluted basis. -- During the quarter, the Company expensed $13.6
million, or $9.1 million net of taxes, of one-time costs associated
with the refinancing of its long-term debt. -- Quarterly sales
increased by 11.2 percent for the Life Science segment and by 9.3
percent for the Clinical Diagnostics segment compared to third
quarter 2002 results. -- Year-to-date net income increased by 10.4
percent over the comparable period last year. The Life Science
segment's sales grew in the third quarter by 11.2 percent, or by
5.4 percent on a currency-neutral basis, to $118.0 million as
compared to the same period of 2002. The drivers of growth in this
segment were the process chromatography, imaging, nucleic acid
amplification, and protein array product categories. Additionally,
the Company was recently selected as the exclusive supplier of BSE
test kits in the United Kingdom. The Clinical Diagnostics segment
reported sales of $127.6 million for the quarter, a 9.3 percent
increase, or 3.0 percent excluding currency effects, as compared to
the same quarter last year. This growth was due to solid
performance in several areas including quality controls, blood
virus screening, and diabetes monitoring. "During the third
quarter, Bio-Rad produced solid financial results, and restructured
its financing, positioning us well for the future." said Norman
Schwartz, President and Chief Executive Officer. "We have a number
of projects that we are working on that will help us close out the
year successfully." The Company recently sold $225 million
aggregate principal amount of 7.50% Senior Subordinated Notes due
2013 in a private offering. A portion of the net proceeds from this
offering were used to fund the early retirement of its 11 5/8%
Senior Subordinated Notes due 2007. In addition, Bio-Rad refinanced
its credit facility through a bank syndicate to provide for a new,
five-year $150 million revolving facility. Management will discuss
these results in a conference call at 2:00 p.m. PT (5:00 p.m. ET)
November 6, 2003. Interested parties can access the call by dialing
800-901-5213 (in the U.S.), or 617-786-2962 (international), access
number 76710220. 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 79834302, 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. 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. Third Quarter 2003 Condensed
Consolidated Statements of Income (In thousands, except per share
data) (UNAUDITED) Three Months Ended Nine Months Ended September
30, September 30, 2003 2002 2003 2002 Net Sales $247,704 $224,878
$737,180 $649,720 Cost of Goods Sold 110,281 95,852 320,640 277,080
Gross Profit 137,423 129,026 416,540 372,640 Selling, General and
Administrative Expense 80,356 73,415 236,541 208,637 Product
Research and Development Expense 23,774 19,988 67,893 60,035
Interest Expense 17,887 6,861 26,234 18,397 Foreign Exchange
Losses, net 1,515 2,727 2,838 5,536 Other (Income) Expense, net
(527) (345) (2,011) 617 Income Before Taxes 14,418 26,380 85,045
79,418 Provision for income taxes (4,758) (9,763) (28,065) (27,796)
Net Income $9,660 $16,617 $56,980 $51,622 Basic earnings per share
$0.38 $0.66 $2.25 $2.06 Weighted average common shares 25,468
25,160 25,380 25,064 Diluted earnings per share $0.37 $0.64 $2.17
$1.99 Adjusted weighted average shares 26,429 26,071 26,292 25,992
Bio-Rad Laboratories, Inc. Summary Consolidated Balance Sheets (In
thousands) (UNAUDITED) September 30, December 31, 2003 2002 Current
assets: Cash and cash equivalents $140,748 $27,733 Accounts
receivable, net 217,674 209,282 Inventories 189,189 166,372 Other
current assets 78,129 62,409 Total current assets 625,740 465,796
Net property, plant and equipment $164,443 $142,235 Goodwill, net
69,519 69,519 Other assets 65,981 43,153 $925,683 $720,703 Current
liabilities: Notes payable, current maturities of long-term debt
$9,612 $7,486 Accounts payable 60,516 50,233 Accrued payroll and
employee benefits 77,127 72,213 Taxes payable 14,314 17,019 Other
current liabilities 70,757 75,058 Total current liabilities 232,326
222,009 Long-term debt, net of current maturities $225,196 $105,768
Deferred tax liabilities 8,822 9,839 Stockholders' equity 459,339
383,087 $925,683 $720,703 Certain items have been reclassified to
conform to the current year presentation. DATASOURCE: Bio-Rad
Laboratories, Inc. CONTACT: Christine Tsingos, Vice President and
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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