Full Press Release Details
Bio-Rad Reports Fourth-Quarter and Full-Year 2012 Financial Results
HERCULES, CA - February 26, 2013 - Bio-Rad Laboratories, Inc. (NYSE: BIO and BIOb), a multinational manufacturer and distributor of life science research and clinical diagnostic products, announced financial results today for the fourth quarter and fiscal year ended December 31, 2012.
Fourth-quarter reported revenues were $573.8 million, up 4.3% compared to $550.2 million reported for the fourth quarter of 2011. On a currency-neutral basis, quarterly revenues increased 6.1% compared to the same period in 2011. Fourth-quarter gross margin was 55.9% compared to 56.5% during the same quarter in 2011.
Net income for the fourth quarter of 2012 was $47.5 million, or $1.65 per share on a fully diluted basis, compared to $59.2 million, or $2.08 per share, respectively, during the same period in 2011. These results include a one-time gain of $4.3 million resulting from the sale of real property.
For the full year, sales were $2,069.2 million compared to $2,073.5 million in 2011. After normalizing for the impact of currency effects, full year revenues increased 3.6%.
Full-year net income was $169.2 million, or $5.91 per share on a fully diluted basis, compared to $178.2 million, or $6.26 per share, respectively, in 2011. The decrease in net income reflected lower gross margins and an increase in R&D expense. Full-year gross margin was 56.1% compared to 56.8% reported in 2011. Incremental gross profit for 2012 was impacted by additional amortization expense of $10.0 million related to acquisitions. Earnings were favorably impacted by a $16.1 million reduction in the valuation of contingent consideration associated with the Quantalife acquisition as well as an increase in other income resulting from certain investment gains.
"We are pleased with our performance in the fourth quarter, with good momentum across many of our product areas," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "As we had expected, full-year results reflect macroeconomic challenges which impacted many of our markets. Looking ahead to 2013, we anticipate a similar economic environment."
Bio-Rad Reports Fourth-Quarter and Full-Year 2012 Financial Results
The Life Science segment net sales for the fourth quarter were $204.2 million, up 2.7% compared to the same period in 2011. On a currency-neutral basis, Life Science segment sales increased by 3.7%. Results for the fourth quarter benefitted from sales of process chromatography media and electrophoresis products as well the Company's QX100 Droplet Digital PCR system. During the fourth quarter, the Company announced that it had signed a definitive agreement to acquire AbD Serotec, which provides a comprehensive catalog of antibodies. The purchase was completed in January of 2013. Also during the fourth quarter, Bio-Rad announced the launch of several new platforms, including the S3 cell sorter and a series of new chromatography instruments. Full-year reported revenues for the Life Science segment were $688.4 million, down 0.9% compared to 2011, or an increase of 1.5% on a currency-neutral basis.
Clinical Diagnostics
The Clinical Diagnostics segment reported net sales of $365.9 million for the fourth quarter, up 5.3% compared to the same period in 2011. On a currency-neutral basis, net sales were up 7.5%. Performance in the Clinical Diagnostics segment in the fourth quarter reflects strength across all product lines, most notably the Company's quality controls, blood typing, and diabetes monitoring products. Full-year reported revenues for the Clinical Diagnostics segment were $1,365.5 million, up 0.1% compared to the same period in 2011. On a currency-neutral basis, full-year sales increased 4.7% compared to 2011.
2012 Full-Year Highlights
Bio-Rad Reports Fourth-Quarter and Full-Year 2012 Financial Results
purposes, to the largest catalog of quantitative multiplexed immunoassays currently available to run on the Bio Plex 200, Bio-Plex 3D, and Bio-Plex MAGPIX instruments.
Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) February 26, 2013. Interested parties may access the call by dialing 866-383-8008 (in the U.S.) or 617-597-5341 (international), access number 81335034. A live webcast of the conference call may be accessed in the "Investor Relations" section of 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 15517550, for seven days following the call. The webcast of the call will be archived on the Bio-Rad site for replay for up to a year and may be accessed in the "Investor Relations" section of www.bio rad.com.
Bio-Rad Laboratories, Inc. (NYSE: BIO and BIOb) has been at the center of scientific discovery for 60 years, manufacturing and distributing a broad range of products for the life science research and clinical
Bio-Rad Reports Fourth-Quarter and Full-Year 2012 Financial Results
diagnostic markets. The Company is renowned worldwide among hospitals, universities, major research institutions, as well as biotechnology and pharmaceutical companies for its commitment to quality and customer service. Founded in 1952, Bio-Rad is headquartered in Hercules, California, and serves more than 100,000 research and industry customers worldwide through its global network of operations. The Company employs approximately 7,300 people globally and had revenues exceeding $2 billion in 2012. For more information, please visit www.bio rad.com.
This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, "believe," "expect," "may," "will," "intend," "estimate," "continue," or similar expressions or the negative of those terms or expressions. Such statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. For further information regarding the Company's risks and uncertainties, please refer to the "Risk Factors" in the Company's public reports filed with the Securities and Exchange Commission, including the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The Company cautions you not to place undue reliance on forward-looking statements, which reflect an analysis only and speak only as of the date hereof. Bio-Rad Laboratories, Inc., disclaims any obligation to update these forward-looking statements.
Investor and Financial Contacts:
Bio-Rad Laboratories, Inc.
Christine Tsingos, Executive Vice President and Chief Financial Officer
Ron Hutton, Vice President and Treasurer
Bio-Rad Laboratories, Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||||
| Net sales | $ | 573,839 | $ | 550,238 | $ | 2,069,235 | $ | 2,073,529 | |||||||
| Cost of goods sold | 252,786 | 239,272 | 908,190 | 895,640 | |||||||||||
| Gross profit | 321,053 | 310,966 | 1,161,045 | 1,177,889 | |||||||||||
| Selling, general and administrative expense | 189,075 | 174,924 | 682,898 | 696,294 | |||||||||||
| Research and development expense | 59,777 | 50,112 | 214,040 | 186,439 | |||||||||||
| Income from operations | 72,201 | 85,930 | 264,107 | 295,156 | |||||||||||
| Interest expense | 11,765 | 11,987 | 49,263 | 53,135 | |||||||||||
| Foreign exchange losses, net | 1,532 | 1,710 | 5,040 | 13,842 | |||||||||||
| Other (income) expense, net | (7,086 | ) | (1,676 | ) | (21,778 | ) | (7,583 | ) | |||||||
| Income before income taxes | 65,990 | 73,909 | 231,582 | 235,762 | |||||||||||
| Provision for income taxes | (18,567 | ) | (14,708 | ) | (62,279 | ) | (57,739 | ) | |||||||
| Net income including noncontrolling interests | 47,423 | 59,201 | 169,303 | 178,023 | |||||||||||
| Net loss (income) attributable to noncontrolling interests | 79 | 38 | (69 | ) | 200 | ||||||||||
| Net income attributable to Bio-Rad | $ | 47,502 | $ | 59,239 | $ | 169,234 | $ | 178,223 | |||||||
| Basic earnings per share: | |||||||||||||||
| Net income per share basic attributable to Bio-Rad | $ | 1.67 | $ | 2.11 | $ | 5.98 | $ | 6.36 | |||||||
| Weighted average common shares - basic | 28,394 | 28,131 | 28,290 | 28,031 | |||||||||||
| Diluted earnings per share: | |||||||||||||||
| Net income per share diluted attributable to Bio-Rad | $ | 1.65 | $ | 2.08 | $ | 5.91 | $ | 6.26 | |||||||
| Weighted average common shares - diluted | 28,712 | 28,462 | 28,642 | 28,468 |
Bio-Rad Laboratories, Inc.
Condensed Consolidated Balance Sheets
| December 31, 2012 | December 31, 2011 | ||||||
| (Unaudited) | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 463,388 | $ | 574,231 | |||
| Short-term investments | 457,685 | 238,884 | |||||
| Accounts receivable, net | 398,739 | 398,674 | |||||
| Inventories, net | 448,370 | 433,510 | |||||
| Other current assets | 156,612 | 152,856 | |||||
| Total current assets | 1,924,794 | 1,798,155 | |||||
| Property, plant and equipment, net | 416,938 | 349,501 | |||||
| Goodwill, net | 495,418 | 468,933 | |||||
| Purchased intangibles, net | 260,939 | 259,497 | |||||
| Other assets | 333,527 | 220,717 | |||||
| Total assets | $ | 3,431,616 | $ | 3,096,803 | |||
| Current liabilities: | |||||||
| Accounts payable | $ | 130,972 | $ | 129,124 | |||
| Accrued payroll and employee benefits | 135,955 | 112,564 | |||||
| Notes payable and current maturities of long-term debt | 1,750 | 814 | |||||
| Income and other taxes payable | 32,271 | 52,285 | |||||
| Other current liabilities | 160,292 | 164,328 | |||||
| Total current liabilities | 461,240 | 459,115 | |||||
| Long-term debt, net of current maturities | 732,414 | 731,698 | |||||
| Other long-term liabilities | 221,237 | 161,608 | |||||
| Total liabilities | 1,414,891 | 1,352,421 | |||||
| Bio-Rad stockholders' equity | 2,016,190 | 1,743,937 | |||||
| Noncontrolling interests | 535 | 445 | |||||
| Total stockholders' equity | 2,016,725 | 1,744,382 | |||||
| Total liabilities and stockholders' equity | $ | 3,431,616 | $ | 3,096,803 |
Bio-Rad Laboratories, Inc.
Condensed Consolidated Statements of Cash Flows
| Year Ended | |||||||
| December 31, | |||||||
| 2012 | 2011 | ||||||
| (Unaudited) | |||||||
| Cash flows from operating activities: | |||||||
| Cash received from customers | $ | 2,063,805 | $ | 2,018,755 | |||
| Cash paid to suppliers and employees | (1,661,101 | ) | (1,656,467 | ) | |||
| Interest paid | (46,369 | ) | (56,859 | ) | |||
| Income tax payments | (87,434 | ) | (52,131 | ) | |||
| Other operating activities | 9,997 | 6,518 | |||||
| Net cash provided by operating activities | 278,898 | 259,816 | |||||
| Cash flows from investing activities: | |||||||
| Payments for acquisitions and long-term investments | (39,443 | ) | (158,538 | ) | |||
| Other investing activities | (373,361 | ) | (224,875 | ) | |||
| Net cash used in investing activities | (412,804 | ) | (383,413 | ) | |||
| Cash flows from financing activities: | |||||||
| Payments on long-term borrowings | (620 | ) | (226,835 | ) | |||
| Other financing activities | 13,208 | 13,275 | |||||
| Net cash provided by (used in) financing activities | 12,588 | (213,560 | ) | ||||
| Effect of foreign exchange rate changes on cash | 10,475 | 4,837 | |||||
| Net decrease in cash and cash equivalents | (110,843 | ) | (332,320 | ) | |||
| Cash and cash equivalents at beginning of year | 574,231 | 906,551 | |||||
| Cash and cash equivalents at end of year | $ | 463,388 | $ | 574,231 | |||
| Reconciliation of net income including noncontrolling interests to net cash provided by operating activities: | |||||||
| Net income including noncontrolling interests | $ | 169,303 | $ | 178,023 | |||
| Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 130,424 | 120,956 | |||||
| Write off of goodwill | 1,044 | - | |||||
| Changes in working capital | (11,487 | ) | (54,570 | ) | |||
| Other | (10,386 | ) | 15,407 | ||||
| Net cash provided by operating activities | $ | 278,898 | $ | 259,816 |