Bio-Rad Laboratories Reports Fourth-Quarter and Full-Year Financial
Results HERCULES, Calif., Feb. 17 /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 fourth
quarter ended December 31, 2004. Fourth-quarter net sales from
continuing operations were $307.9 million, up 19.3 percent compared
to the $258.1 million reported for the same quarter of 2003. On a
currency-neutral basis, revenues were up 14.1 percent versus
fourth-quarter 2003 results. This growth was largely due to a
combination of events including organic growth in Bio-Rad's two
main business segments and the addition of MJ GeneWorks products to
the Company's portfolio. For the quarter, income from continuing
operations was $17.1 million compared to $18.6 million in the
fourth quarter of last year. For the full year, overall Company
sales from continuing operations grew by 11.3 percent to $1,090.0
million compared to $979.6 million in 2003. Normalizing for the
impact of currency effects, growth was 5.5 percent. Year-over-year
income from continuing operations fell by 14.2 percent to $66.3
million, or $2.58 per share, from $77.3 million, or $3.04 per share
in 2003, due to the Company's acquisition and integration of MJ
GeneWorks which included more than $14 million of one-time costs,
continued investment in R&D and infrastructure development
projects, and additional expenses associated with Sarbanes-Oxley
Act compliance. Full-year gross margin from continuing operations
was 56.0 percent, down slightly compared to 56.8 percent over the
same period of 2003. Fourth-Quarter Highlights -- Overall net sales
from continuing operations for the fourth quarter grew by 19.3
percent versus fourth-quarter 2003 results. -- Fourth-quarter basic
earnings from continuing operations were $0.66 per share, or $0.65
per share on a diluted basis, compared to $0.73 and $0.71,
respectively, in the same period of last year. -- Segment net sales
for the quarter were 21.6 percent higher for the Life Science
segment and 17.1 percent higher for the Clinical Diagnostics
segment compared to their respective figures in 2003. -- During the
quarter, Bio-Rad sold $200 million aggregate principal amount of
6.125% Senior Subordinated Notes due 2014 in a private offering.
Life Science segment net sales for the quarter were $148.5 million,
21.6 percent higher than last year's comparable period. On a
currency-neutral basis, segment sales grew by 16.4 percent.
Full-year reported sales from continuing operations were $504.7
million for the segment, up 10.6 percent over the previous year, or
4.8 percent on a currency-neutral basis. Performance in this
segment was boosted by the addition of acquired MJ GeneWorks
products and by increased sales in several product areas including
multiplex array technology and amplification reagents. During the
quarter, the Life Science Group launched a number of products
including the new Experion(TM) Automated Electrophoresis System, a
novel approach to RNA and protein analysis and separation that will
revolutionize the way electrophoresis is performed. The Life
Science segment was negatively impacted by price erosion in the BSE
(bovine spongiform encephalopathy or mad cow disease) product line,
which was partially offset by a continued expansion in unit volume.
The Clinical Diagnostics segment reported net sales of $156.7
million for the quarter, up 17.1 percent compared to the fourth
quarter of 2003, or 11.9 percent excluding currency effects.
Full-year segment sales from continuing operations were $576.4
million, a 12.0 percent increase compared to 2003 results, or 6.3
percent excluding currency effects. These results are due in part
to continued growth in the blood virus, diabetes monitoring and
quality controls product lines. During the quarter, the Company
received marketing clearance from the U.S. Food and Drug
Administration (FDA) for its new BioPlex(TM)2200 system, a
revolutionary new immunoassay platform that employs multiplexing
technology to analyze for multiple disease states from single
patient samples. Bio-Rad also received approval from the FDA for
its new Multispot HIV-1/HIV-2 Rapid Test, the only single-use assay
to be approved by the FDA for the detection and differentiation of
HIV-1 and HIV-2 antibodies. Also during the quarter, the Clinical
Diagnostics Group won a major blood-bank tender in Russia, making
Bio-Rad the largest supplier of HIV and hepatitis blood screening
products in that country. 2004 Highlights -- Full-year Company
sales from continuing operations grew by 11.3 percent to $1,090.0
million. -- Year-over-year income from continuing operations fell
by 14.2 percent to $66.3 million from $77.3 million in 2003. -- In
March, the Company purchased the assets of Hematronix Inc. for
approximately $17 million in cash. This acquisition further
enhances Bio-Rad's leadership position in the quality-control
management industry. -- In August, the Company purchased MJ
GeneWorks, Inc. and its subsidiaries, including MJ Research, Inc.,
for approximately $31 million in cash and the assumption of certain
liabilities of those companies. The acquisition significantly
enhances Bio-Rad's portfolio of gene expression products. "2004 was
as much a year of investment as it was of continued progress. The
year brought increased organic growth in our core businesses,
expansion of our product lines through new product introductions
and strategic acquisitions, infrastructure improvements and
increased R&D," said Norman Schwartz, President and Chief
Executive Officer. "These efforts give Bio-Rad a larger
proprietary-technology base, improved operational systems and an
increased presence in certain key markets, all of which help
strengthen the foundation for future success." Management will
discuss these results in a conference call at 2:00 p.m. PT (5:00
p.m. ET) February 17, 2005. Interested parties can access the call
by dialing 800-901-5217 (in the U.S.), or 617-786-2964
(international), access number 43140553. 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 58162472, 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. Bio-Rad Laboratories, Inc.
Fourth-Quarter and Full-Year 2004 Condensed Consolidated Statements
of Income (In thousands, except per share data) (UNAUDITED) Three
Months, Twelve Months, Ended Ended December 31, December 31, 2004
2003 2004 2003 Net sales $307,868 $258,098 $1,090,012 $979,631 Cost
of goods sold 139,533 112,598 479,939 423,401 Gross profit 168,335
145,500 610,073 556,230 Selling, general and administrative expense
110,825 87,037 378,264 317,524 Product research and development
expense 31,885 25,648 108,344 91,273 Purchased in-process research
and development expense -- -- 14,620 -- Interest expense 5,255
4,772 20,219 31,006 Foreign exchange losses 774 1,242 2,394 4,080
Other income, net (7,789) (1,001) (11,095) (3,012) Income from
continuing operations before taxes 27,385 27,802 97,327 115,359
Provision for income taxes 10,274 9,164 31,035 38,055 Income from
continuing operations 17,111 18,638 66,292 77,304 Discontinued
operations Gain (loss) from discontinued operations, net of tax --
553 (1,487) (1,133) Gain on divestiture, net of tax -- -- 3,437 --
Total discontinued operations -- 553 1,950 (1,133) Net income
$17,111 $19,191 $68,242 $76,171 Basic earnings per share Continuing
operations $0.66 $0.73 $2.58 $3.04 Discontinued operations -- 0.02
0.07 (0.04) Net income $0.66 $0.75 $2.65 $3.00 Weighted average
common shares 25,819 25,524 25,724 25,416 Diluted earnings per
share Continuing operations $0.65 $0.71 $2.50 $2.94 Discontinued
operations -- 0.02 0.08 (0.04) Net income $0.65 $0.73 $2.58 $2.90
Weighted average shares 26,528 26,405 26,489 26,310 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
December 31, At December 31, 2004 2003 Current Assets: Cash and
cash equivalents $195,734 $65,395 Short-term investments 165,899
83,247 Accounts receivable, net 261,243 234,085 Inventories, net
205,512 190,258 Deferred tax assets 34,492 31,056 Prepaid expenses
and other current assets 48,344 51,357 Total current assets 911,224
655,398 Property, plant and equipment, net 202,324 179,123
Goodwill, net 113,276 69,503 Purchased intangibles, net 58,638
12,251 Long-term tax assets 26,544 21,218 Other assets 79,996
55,103 Total assets $1,392,002 $992,596 Current liabilities: Notes
payable and current maturities of long-term debt $9,457 $10,423
Accounts payable 71,194 53,995 Accrued payroll and employee
benefits 79,061 71,650 Sales, income and other taxes payable 15,835
20,833 Litigation accrual 50,000 -- Accrued royalties 39,317 34,168
Other current liabilities 50,511 48,183 Total current liabilities
315,375 239,252 Long-term debt, net of current maturities 425,979
225,835 Deferred tax liabilities 24,772 14,803 Other long-term
liabilities 28,988 16,899 Stockholder's equity 596,888 495,807
Total liabilities and stockholder's equity $1,392,002 $992,596
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) Twelve Months Ended December 31, 2004 2003
Cash flows from operating activities: Cash received from customers
$1,081,645 $996,384 Cash paid to suppliers and employees (912,286)
(800,633) Interest paid (19,543) (17,088) Income tax payments
(33,637) (51,280) Miscellaneous receipts 8,933 1,928 Discontinued
operations (2,019) (1,671) Net cash provided by operating
activities 123,093 127,640 Cash flows from investing activities:
Capital expenditures, net (60,493) (69,003) Other investing
activities (125,825) (121,238) Net cash used in investing
activities (186,318) (190,241) Cash flows from financing
activities: Long-term borrowings 200,000 249,335 Payments on
long-term debt (1,781) (132,012) Other financing activities (4,992)
(9,154) Net cash provided by financing activities 193,227 108,169
Effect of exchange rate changes on cash 337 (7,906) Net increase in
cash and cash equivalents 130,339 37,662 Cash and cash equivalents
at beginning of period 65,395 27,733 Cash and cash equivalents at
end of period $195,734 $65,395 Reconciliation of income from
continuing operations to net cash provided by operating activities:
Income from continuing operations $66,292 $77,304 Adjustments to
reconcile net income to net cash provided by operating activities
(net of effects of acquisitions): Depreciation and amortization
56,143 42,009 Changes in working capital and other 2,145 9,460
Discontinued operations (1,487) (1,133) Net cash provided by
operating activities $123,093 $127,640 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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