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| 8-K - SERACARE LIFE SCIENCES INC | v210839_8k.htm |
Exhibit
99.1
SeraCare
Reports First Quarter Fiscal Year 2011 Results
—
Achieved Seventh Consecutive Quarter of Profitability —
—
Increased Cash to End Quarter with $16.2 Million —
—Conference
Call Scheduled for 8:30 A.M. E.T. Today—
MILFORD, MA., Feb 11, 2011 —
SeraCare Life Sciences, Inc. (NASDAQ: SRLS), a global life sciences company
providing vital products and services to facilitate the discovery, development
and production of human diagnostics and therapeutics, today reported operational
and financial results for its first quarter of fiscal year 2011, ended December
31, 2010.
“In the
first quarter of fiscal 2011 we took important steps to position ourselves to
achieve our long-term strategic goal of doubling SeraCare’s revenues during the
next three to four years. As we stated during our previous earnings conference
call, we anticipated a moderation in our revenues during the first half of
fiscal 2011 as we implement comprehensive sales force improvements and completed
our work under a significant services contract,” commented Susan Vogt, President
and Chief Executive Officer of SeraCare. “Additionally, we are in the final
stages of converting a key customer to a new, jointly developed, custom
manufactured bulk product. This transition has resulted in some short term
disruption in their ordering, but we believe will ultimately enhance our long
term relationship. We believe that the completion of these initiatives will
yield a positive revenue uptick and improved operating performance in the second
half of the fiscal year.”
SeraCare
reported revenue of $10.5 million for the quarter ended December 31, 2010
compared to $11.3 million for the same quarter of the prior year, reflecting a
7% decrease. Gross margins decreased to 38% for the quarter compared to 44% for
the same quarter of the prior year. The Company earned net income of $1.6
million, which included a non-recurring reorganization benefit of $0.8 million,
and earnings per share on a basic and diluted basis of $0.08 for the quarter
ended December 31, 2010 compared to net income of $1.3 million and earnings per
share of $0.07 during the same period in fiscal 2010.
Recent
Corporate Highlights:
|
|
·
|
Achieved
seventh consecutive quarter of profitability during the first quarter of
fiscal 2011
|
|
|
·
|
Entered
into a loan agreement that provides senior secured credit facilities in
the aggregate amount of $20.0
million
|
|
|
·
|
Began
optimization of the sales organization to drive growth, with an increased
focus on diagnostics and pharmaceutical product sales in both North
America and Europe
|
|
|
·
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Introduced
five new products in the first fiscal quarter of
2011
|
|
|
·
|
Increased
cash balance to $16.2 million as of December 31,
2010
|
|
|
·
|
Generated
$1.4 million in cash from operations during the quarter ended December 31,
2010, marking our eighth consecutive quarter of positive cash from
operations
|
"During
the first quarter, SeraCare increased its cash balance to $16.2 million,
maintaining our consistent ability to generate cash. We are well positioned to
apply the strength of our balance sheet to drive SeraCare’s future growth,”
stated Gregory Gould, Chief Financial Officer. “We are also making adjustments
in each of our business segments that we believe will improve gross margins
across our business in addition to the increased revenues projected during the
second half of fiscal 2011.”
Conference
Call Information
The
conference call will be webcast live over the Internet and can be accessed by
logging on to the "Investor Center, Events" section of the SeraCare Life
Sciences website at www.seracare.com. The call can also be accessed by dialing
(800) 688-0836 (within the United States) or +1 (617) 614-4072 (outside the
United States). The passcode for participants is 67124180.
A replay
of the call will be available approximately two hours after the live call
concludes through February 25, 2011. To access the replay, dial (888) 286-8010
(within the United States) or +1 (617) 801-6888 (outside the United States). The
passcode is 73355913. The webcast will also be archived on the Company's
website.
About
SeraCare Life Sciences, Inc.
SeraCare
serves the global life sciences industry by providing vital products and
services to facilitate the discovery, development and production of human
diagnostics and therapeutics. The Company's innovative portfolio includes
diagnostic controls, plasma-derived reagents and molecular biomarkers,
biobanking and contract research services. SeraCare's quality systems,
scientific expertise and state-of-the-art facilities support its customers in
meeting the stringent requirements of the highly regulated life sciences
industry.
Forward-Looking
Statements:
This
press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 about SeraCare Life Sciences,
Inc. ("SeraCare" or the "Company"). All statements regarding our expected future
financial position, results of operations, cash flows, dividends, financing
plans, business strategy, budget, projected costs or cost savings, capital
expenditures, competitive positions, growth opportunities for existing products
or products under development, plans and objectives of management for future
operations and markets for stock are forward-looking statements. In addition,
forward-looking statements include statements in which we use words such as
"expect," "believe," "anticipate," "intend," or similar expressions. Although we
believe the expectations reflected in such forward-looking statements are based
on reasonable assumptions, we cannot assure you that these expectations will
prove to have been correct, and actual results may differ materially from those
reflected in the forward-looking statements. Factors that could cause our actual
results to differ from the expectations reflected in the forward-looking
statements in this press release include, but are not limited to, failure to
maintain proper inventory levels, availability of financing, reductions or
terminations of government or other contracts, interruption in our supply of
products or raw materials, actions of SeraCare's competitors, changes
in the regulatory environment, delays in new product introductions, lack of
market acceptance of new products, decreased healthcare spending, reduced
margins resulting from a shift in revenue towards services, prolonged impairment
of sales from changes in our sales organization, absence or loss of acquisition
opportunities to higher bidders, potential failure to complete any announced
acquisition, and potential failure of any acquisition to produce expected
revenues, profits or synergies. Many of these factors are beyond our ability to
control or predict.
Contacts:
Gregory
A. Gould
Chief
Financial Officer
SeraCare
Life Sciences, Inc.
508-244-6400
Chris
Erdman
MacDougall
Biomedical Communications
781-235-3060
—Financial
Tables to Follow—
SERACARE
LIFE SCIENCES, INC.
STATEMENTS
OF OPERATIONS — UNAUDITED
|
For the three months ended
December 31,
|
||||||||
|
2010
|
2009
|
|||||||
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Revenue
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$ | 10,462,497 | $ | 11,257,105 | ||||
|
Cost
of revenue
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6,494,610 | 6,340,331 | ||||||
|
Gross
profit
|
3,967,887 | 4,916,774 | ||||||
|
Research
and development expense
|
309,247 | 163,273 | ||||||
|
Selling,
general and administrative expenses
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2,946,928 | 3,260,406 | ||||||
|
Reorganization
items
|
(846,094 | ) | — | |||||
|
Operating
income
|
1,557,806 | 1,493,095 | ||||||
|
Interest
income (expense), net
|
22,282 | (204,725 | ) | |||||
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Other
income, net
|
452 | 2,465 | ||||||
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Income
before income taxes
|
1,580,540 | 1,290,835 | ||||||
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Income
tax expense
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— | 8,300 | ||||||
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Net
income
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$ | 1,580,540 | $ | 1,282,535 | ||||
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Earnings
per common share
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||||||||
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Basic
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$ | 0.08 | $ | 0.07 | ||||
|
Diluted
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$ | 0.08 | $ | 0.07 | ||||
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Weighted
average shares outstanding
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||||||||
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Basic
|
18,861,196 | 18,740,261 | ||||||
|
Diluted
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19,270,477 | 18,875,980 | ||||||
SERACARE
LIFE SCIENCES, INC.
BALANCE
SHEETS — UNAUDITED
|
As
of
December
31,
2010
|
As
of
September
30,
2010
|
|||||||
|
ASSETS
|
||||||||
|
Current
assets
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||||||||
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Cash
and cash equivalents
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$ | 16,209,391 | $ | 16,074,915 | ||||
|
Accounts
receivable, less allowance for doubtful accounts of $40,000 as of both
December 31, 2010 and September 30, 2010
|
6,640,505 | 7,288,133 | ||||||
|
Taxes
receivable
|
118,486 | 118,486 | ||||||
|
Inventory
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9,485,977 | 9,028,809 | ||||||
|
Prepaid
expenses and other current assets
|
176,359 | 333,191 | ||||||
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Total
current assets
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32,630,718 | 32,843,534 | ||||||
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Property
and equipment, net
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6,167,280 | 5,970,179 | ||||||
|
Goodwill
|
4,284,979 | 4,284,979 | ||||||
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Other
assets
|
498,358 | 526,810 | ||||||
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Total
assets
|
$ | 43,581,335 | $ | 43,625,502 | ||||
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
|
Current
liabilities
|
||||||||
|
Accounts
payable
|
$ | 1,958,207 | $ | 2,787,855 | ||||
|
Accrued
expenses and other liabilities
|
2,978,025 | 4,041,172 | ||||||
|
Current
portion of long-term debt
|
49,811 | 55,994 | ||||||
|
Total
current liabilities
|
4,986,043 | 6,885,021 | ||||||
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Long-term
debt
|
14,406 | 21,970 | ||||||
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Other
liabilities
|
2,187,307 | 2,216,916 | ||||||
|
Total
liabilities
|
7,187,756 | 9,123,907 | ||||||
|
Commitments
and contingencies
|
||||||||
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Stockholders’
equity
|
||||||||
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Preferred
stock, $.001 par value, 5,000,000 shares authorized; no shares issued or
outstanding
|
— | — | ||||||
|
Common
stock, $.001 par value, 35,000,000 shares authorized; 18,901,366 and
18,853,584 shares issued and outstanding as of December 31, 2010 and
September 30, 2010, respectively
|
18,901 | 18,853 | ||||||
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Additional
paid-in capital
|
104,662,489 | 104,351,093 | ||||||
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Retained
deficit
|
(68,287,811 | ) | (69,868,351 | ) | ||||
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Total
stockholders’ equity
|
36,393,579 | 34,501,595 | ||||||
|
Total
liabilities and stockholders’ equity
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$ | 43,581,335 | $ | 43,625,502 | ||||