Bio-Techne Releases First Quarter Fiscal 2019 Results Bio-Techne Corporation (NASDAQ:TECH) today reported its financial results for the first quarter ended September 30, 2018. First Quarter FY2019...

MINNEAPOLIS , Oct. 30, 2018 /PRNewswire/ -- Bio-Techne Corporation (NASDAQ: TECH ) today reported its financial results for the first quarter ended September 30, 2018 .

First Quarter FY2019 Snapshot

The company's financial statements are prepared in accordance with accounting principles generally accepted in the United States (GAAP). Adjusted EPS, adjusted earnings, adjusted gross margin, adjusted operating income, and adjusted operating margin 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.

"I'm thrilled with the strong start to FY19," said Chuck Kummeth , President and Chief Executive Officer of Bio-Techne. "Results were especially strong in our Protein Sciences segment with exceptional commercial execution in both our reagent and analytical solutions business units."

Kummeth added, " Europe , in particular, continues to exceed our expectations with double digit growth for the past two years. We now have over 275 people in Bio-Techne Europe, including offices in four of Europe's largest countries. The continued synergies coming from the country teams working together is a model for the entire company."

Kummeth concluded, "These past few months, much attention has been on our ExosomeDx acquisition, which we are very busy integrating and enabling for accelerated growth in the future. To date, we have been very happy with the team and the promise of this exciting new technology platform. With core product innovation and strategic acquisitions, the product and technology diversity we have created at Bio-Techne should drive growth for years to come."

First Quarter Fiscal 2019

Net sales for the first quarter increased 13% to $163.0 million . Organic growth was 10% compared to the prior year, with currency translation having an unfavorable impact of 1% and acquisitions contributing 4% to revenue growth.

GAAP Earnings Results

GAAP EPS increased to $0.45 per diluted share, versus $0.42 in the same quarter last year. GAAP EPS was favorably impacted by the lower U.S. federal income taxes rate. GAAP operating income for the first quarter of fiscal 2019 decreased 1% to $25.8 million , compared to $26.0 million in the first quarter of fiscal 2018. GAAP operating margin was 15.8%, compared to 18.0% in the first quarter of fiscal 2018. GAAP operating margin compared to prior year was negatively impacted by the timing of stock compensation expense recognized as a result of a new retirement policy that was implemented in the fourth quarter of fiscal year 2018.

Non-GAAP Earnings Results

Adjusted EPS increased to $0.98 per diluted share, versus $0.90 in the same quarter last year which includes a $0.06 benefit from the decrease in the U.S. federal income tax rate. Adjusted operating income for the first quarter of fiscal 2019 increased 8% compared to the first quarter of fiscal 2018. Adjusted operating margin was 33.9%, compared to 35.3% in the first quarter of fiscal 2018. Adjusted operating margin compared to the prior year was negatively impacted by lower margin acquisitions made by the Company, including ExosomeDx and Quad, which were acquired in first quarter of fiscal 2019.

Segment Results

Management uses adjusted operating results to monitor and evaluate performance of the Company's business segments, as highlighted below. Since these results are used for this purpose, they are also considered to be prepared in accordance with GAAP.

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 community. Additionally, the segment provides an array of platforms useful in various areas of protein analysis. Protein Sciences segment's first quarter fiscal 2019 net sales were $126.4 million , an increase of 17% from $108.1 million for the first quarter of fiscal 2018. Organic growth for the segment was 14%, with currency translation having a unfavorable impact of 1% on revenue growth and acquisitions contributing 4% to revenue growth. Protein Sciences segment's adjusted operating margin was 43.2% in the first quarter of fiscal 2019 compared to 42.7% in the first quarter of fiscal 2018. Adjusted operating margin compared to the prior year was positively impacted by product mix, volume leverage, and operational productivity.

Diagnostics and Genomics Segment

The Company's Diagnostics and Genomics segment provides blood chemistry and blood gas quality controls, hematology instrument controls, diagnostics immunoassays and other bulk and custom reagents for the in vitro diagnostic market. The Diagnostics and Genomics segment also develops and provides in situ hybridization products as well as exosome-based diagnostics for various pathologies, including prostate cancer. The Diagnostics and Genomics segment's first quarter fiscal 2019 net sales were $36.7 million compared to $36.6 million for the first quarter of fiscal 2018. Organic growth for the segment was -2%, with acquisitions contributing 2% to revenue growth. The Diagnostics and Genomics segment's adjusted operating margin was 6.9% in the first quarter of fiscal 2019 compared to 19.9% in the first quarter of fiscal 2018. Adjusted operating margin compared to the prior year was negatively impacted by lower margin acquisitions made in the segment, namely Exosome.

Conference Call

Bio-Techne will host an earnings conference call today, October 30, 2018 at 8:00 a.m. CT . To listen, please dial 1-866-548-4713 or 1-323-794-2093 for international callers, and reference conference ID 2296266. A recorded rebroadcast will be available for interested parties unable to participate in the live conference call. To access the replay, U.S. callers should dial 1-844-512-2921 or international callers should dial 1-412-317-6671, and enter the replay access code 2296266. The replay can also be accessed by going to:

The replay will be available from 11:00 a.m. CT on Tuesday, October 30, 2018 until 11:00 p.m. CT on Friday, November 30, 2018 .

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:

Our non-GAAP financial measures for adjusted gross margin, adjusted operating margin, and adjusted net earnings, in total and on a per share basis, exclude the costs recognized upon the sale of acquired inventory, amortization of acquisition intangibles, and acquisition related expenses. The Company excludes amortization of purchased intangible assets and purchase accounting adjustments, including costs recognized upon the sale of acquired inventory and acquisition-related expenses, 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.

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 $643 million in net sales in fiscal 2018 and has over 2,100 employees worldwide. For more information on Bio-Techne and its brands, please visit www.bio-techne.com .

SOURCE Bio-Techne Corporation