Bio-Rad Laboratories Reports Fourth-Quarter and Full-Year Financial
Results HERCULES, Calif., Feb. 12 /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 for the fourth quarter and
year ended December 31, 2003. Fourth quarter revenues were $266.2
million, up 9.5 percent compared to the $243.0 million reported for
the same quarter of 2002. Full-year revenues crossed the
billion-dollar mark to reach $1,003.4 million, up by 12.4 percent
over 2002 results. This growth was largely due to a combination of
organic growth in the Company's two main business segments as well
as currency effects. Fourth Quarter Highlights -- Overall Company
sales for the fourth quarter grew by almost 10 percent, or by just
under 1 percent on a currency-neutral basis, to reach $266.2
million compared to $243.0 million reported in the fourth quarterof
2002. -- Fourth quarter basic earnings were $0.75 per share, or
$0.73 per share on a diluted basis, compared to basic earnings per
share of $0.64 and diluted earnings per share of $0.62 in the same
period of 2002. -- On a reported basis, Life Science segment sales
for the quarter were $130.2 million, or 6.6 percent higher than in
the comparable period last year, while on a currency neutral basis
segment sales declined by 2.1 percent for the quarter. Solid
performers in this segment included the process chromatography,
imaging, nucleic acid amplification, and protein array businesses,
offset by price declines in the BSE (bovine spongiform
encephalopathy) business. -- The Clinical Diagnostics segment
reported sales of $133.7 million for the quarter, a 12.3 percent
increase compared to fourth quarter 2002 results, or 3.2 percent
excluding currency effects. These results were due to growth in
several areas including immunohematology, quality controls, blood
virus screening, and diabetes monitoring. 2003 Highlights --
Company sales grew by 12.4 percent, or 3.7 percent on a
currency-neutral basis, to $1,003.4 million compared to $892.7
million in 2002. -- Net income rose by 12.2 percent to $76.2
million, or $3.00 per share, from $67.9 million, or $2.70 per share
in 2002. -- During 2003, Bio-Rad sold $225 million aggregate
principal amount of 7.50% Senior Subordinated Notes due 2013 in a
private offering. A portion of the proceeds from this offering were
used to fund the retirement of the Company's 11 5/8% Senior
Subordinated Notes due 2007. In addition, Bio-Rad refinanced its
primary credit facility through a bank syndicate toprovide for a
new, five-year $150 million revolving facility. 2003 income figures
include one-time charges of approximately $14.6 million (or $9.8
million net of taxes) associated with the refinancing. Excluding
these charges, 2003 netincome rose by 26.6 percent to $85.9
million, or $3.38 per basic share. -- Full-year reported sales for
the Life Science segment were $480.0 million, up 11.8 percent over
the previous year's figure, or 2.9 percent on a
currency-neutralbasis. Clinical Diagnostics segment sales for the
year were $514.8 million, a 13.0 percent increase compared to 2002
results, or 4.5 percent excluding currency effects. "This was a
breakthrough year for Bio-Rad. Our solid performance took us past
the much-coveted, billion-dollar milestone," said Norman Schwartz,
President and Chief Executive Officer. "We entered the year with
new management in place, introduced many new products, restructured
our financing, and constructed new facilities to improve our
efficiency and to accommodate our growth. These accomplishments,
along with a number of other projects, provide good momentum as we
enter 2004." Management will discuss these results in a conference
call at 2:00 p.m. PT (5:00 p.m. ET) February 12, 2004. Interested
parties can access the call by dialing 800-299-9086 (in the U.S.),
or 617-786-2903 (international), access number 90302867. 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 17206610, 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 Rule3b-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. Fourth
Quarter and Full Year 2003 Condensed Consolidated Statements of
Income (In thousands, except per share data) (UNAUDITED) Three
Months Ended Twelve Months Ended December 31, December 31, 2003
2002 2003 2002 Net Sales $266,202 $243,000 $1,003,382 $892,720 Cost
of Goods Sold 117,350 106,155 437,990 383,235 Gross Profit 148,852
136,845 565,392 509,485 Selling, General and Administrative Expense
88,819 80,538 325,360 289,175 Product Research and Development
Expense 26,377 22,900 94,270 82,935 Interest Expense 4,772 9,810
31,006 28,207 Foreign Exchange Losses, net 1,242 (95) 4,080 5,441
Other (Income) Expense, net (1,001) (1,295) (3,012) (678) Income
Before Taxes 28,643 24,987 113,688 104,405 Provision for income
taxes (9,452) (8,746) (37,517) (36,542) Net Income $19,191 $16,241
$76,171 $67,863 Basic earnings per share $0.75 $0.64 $3.00 $2.70
Weighted average common shares 25,524 25,224 25,416 25,104 Diluted
earnings per share $0.73 $0.62 $2.90 $2.61 Adjusted weighted
average shares 26,405 26,109 26,310 26,021 Bio-Rad Laboratories,
Inc. Summary Condensed Consolidated Balance Sheets (In thousands)
(UNAUDITED) At December 31, 2003 2002 Current assets: Cash and cash
equivalents $148,642 $27,733 Accounts receivable, net 234,085
209,282 Inventories, net 190,258 166,372 Prepaid expenses, taxes
and other current assets 97,893 63,227 Total current assets 670,878
466,614 Net property, plant and equipment 179,123 142,235 Goodwill,
net 69,503 69,519 Other assets 67,354 42,335 Total assets $986,858
$720,703 Current liabilities: Notes payable and current maturities
of long-term debt $10,423 $7,486 Accounts payable 53,995 50,233
Accrued payroll and employee benefits 71,650 62,800 Sales, income
and other taxes payable 20,833 17,019 Other current liabilities
77,425 71,392 Total current liabilities 234,326 208,930 Long-term
debt, net of current maturities 225,835 105,768 Deferred tax
liabilities 13,991 9,839 Other long-term liabilities 16,899 13,079
Stockholders' equity 495,807 383,087 Total liabilities and
stockholders' equity $986,858 $720,703 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) (UNAUDITED) Year Ended December 31, 2003 2002
Cash flows from operating activities: Cash received from customers
$1,020,135 $885,835 Cash paid to suppliers and employees (826,055)
(711,341) Interest paid (17,088) (25,832) Income tax payments
(51,280) (43,939) Miscellaneous receipts 1,928 112 Net cash
provided by operating activities 127,640 104,835 Cash flows from
investing activities: Capital expenditures, net (69,003) (42,224)
Other investing activities (37,991) (12,232) Net cash used in
investing activities (106,994) (54,456) Cash flows from financing
activities: Long-term borrowings 249,335 44,025 Payments on
long-term debt (132,012) (133,517) Other financing activities
(9,154) 11,288 Net cash provided by (usedin) financing activities
108,169 (78,204) Effect of exchange rate changes on cash (7,906)
8,429 Net increase (decrease) in cash and cash equivalents 120,909
(19,396) Cash and cash equivalents at beginning of year 27,733
47,129 Cash and cash equivalents at end of year $148,642 $27,733
Reconciliation of net income to net cash provided by operating
activities: Net Income $76,171 $67,863 Adjustments to reconcile net
income to net cash provided by operating activities: Depreciation
and amortization 42,009 38,033 Foreign currency hedge transactions,
net 14,998 2,270 Loss on sale of spectroscopy business and
write-down of investments 0 5,007 Debt retirement costs on 11-5/8%
bonds 9,467 0 Changes in working capital and other (15,005) (8,338)
Net cash provided by operating activities $127,640 $104,835
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, Web
site: http://www.bio-rad.com/
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