BIO-RAD LABORATORIES, INC. - FORM 8-K - EX-99.1 - EARNINGS RELEASE 08-02-2011 - August 2, 2011

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8-K - FORM 8-K 06-30-2011 - BIO-RAD LABORATORIES, INC.bio-8k822011.htm
Exhibit 99.1


FOR IMMEDIATE RELEASE


Bio-Rad Reports Second-Quarter Revenue Growth of 11.5 Percent


HERCULES, CA - August 2, 2011 - 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 second quarter ended June 30, 2011.

Second-quarter reported revenues were $521.7 million, up 11.5% compared to $467.7 million reported for the second quarter of 2010. On a currency-neutral basis, quarterly revenues increased 4.2% compared to the same period last year. This improvement is the result of organic growth across Bio‑Rad's primary segments, Life Science and Clinical Diagnostics. Second-quarter gross margin was 56.2% compared to 57.4% reported during the same quarter last year.

Net income attributable to Bio-Rad for the second quarter of 2011 was $40.0 million compared to $38.0 million reported for the second quarter of 2010. Second-quarter earnings were $1.41 per share on a fully diluted basis versus $1.35 per share reported for the same period last year.

Year-to-date revenues grew by 9.2% to $1.0 billion compared to $921.9 million for the first two quarters of 2010. Adjusting for the impact of currency, revenue growth was 4.5%.

Year-to-date net income attributable to Bio-Rad was $73.1 million, or $2.57 per share on a fully diluted basis, compared to $72.8 million, or $2.59 per share, respectively, during the same period in 2010.

“The first half of the year reflects continued strength across many of our product lines,” said Norman Schwartz, Bio-Rad President and Chief Executive Officer. “While the global economic outlook suggests modest growth, we continue to invest in the future and our outlook remains positive for the remainder of the year.”



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Bio-Rad Reports Second-Quarter Revenue Growth of 11.5 Percent
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Life Science
Life Science segment net sales for the second quarter were $169.9 million, up 12.8% compared to the same period last year. On a currency-neutral basis, Life Science segment net sales increased by 6.7% compared to the second quarter of 2010. The electrophoresis and imaging product lines performed well during the quarter, supported by several recent product launches including the Trans-Blot® Turbo transfer system and the Gel Doc™ EZ imaging platform. During the quarter, the Life Science segment also benefitted from sales of the TGX™ precast electrophoresis gel product line and the TC10™ automated cell counter. Deliveries of process chromatography media were also strong.

Clinical Diagnostics
Reported net sales for the Clinical Diagnostics segment in the second quarter rose to $348.0 million, up 10.8% compared to the same quarter last year. On a currency-neutral basis, net sales were up 2.8%. These gains were the result of growth across many product lines, most notably from quality controls and diabetes monitoring. During the second quarter, Bio-Rad announced the European and Canadian launch of its BioPlex® 2200 Antiphospholipid Syndrome IgG, IgM, and IgA kits for use on its BioPlex® 2200 system. Antiphospholipid Syndrome is an autoimmune disease in which the body's immune system mistakenly produces antibodies to certain blood proteins causing thrombosis (clotting) within arteries, veins, and small blood vessels.

Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) August 2, 2011. Interested parties may access the call by dialing 866-277-1181 (in the U.S.) or 617-597-5358 (international), access number 35139244.

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 87791245, for seven days following the call. The webcast of the call will be archived on the Bio-Rad site for on-demand replay for up to a year and may be accessed in the "Investor Relations" section of www.bio-rad.com.




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Bio-Rad Reports Second-Quarter Revenue Growth of 11.5 Percent
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About Bio-Rad
Bio-Rad Laboratories, Inc. (NYSE: BIO and BIOb) has remained at the center of scientific discovery for more than 50 years, manufacturing and distributing a broad range of products for the life science research and clinical diagnostics 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 over 6,800 people globally and had revenues exceeding $1.9 billion in 2010. 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, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. 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.

For more information contact:
Christine Tsingos, Vice President and Chief Financial Officer, or
Ron Hutton, Treasurer
Bio-Rad Laboratories, Inc.
510-724-7000
investor_relations@bio-rad.com

Bio-Rad Laboratories, Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)

 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2011
 
2010
 
2011
 
2010
Net sales
$
521,656

 
$
467,662

 
$
1,006,777

 
$
921,896

Cost of goods sold
228,520

 
199,354

 
436,030

 
396,461

Gross profit
293,136

 
268,308

 
570,747

 
525,435

Selling, general and administrative expense
176,740

 
156,270

 
344,503

 
309,887

Research and development expense
48,210

 
43,862

 
90,940

 
84,125

Income from operations
68,186

 
68,176

 
135,304

 
131,423

Interest expense
12,041

 
14,325

 
28,807

 
28,769

Foreign exchange losses, net
2,744

 
1,014

 
5,786

 
797

Other income, net
(4,418
)
 
(2,517
)
 
(5,369
)
 
(3,316
)
Income before income taxes
57,819

 
55,354

 
106,080

 
105,173

Provision for income taxes
(17,797
)
 
(16,833
)
 
(33,120
)
 
(31,260
)
Net income including noncontrolling interests 
40,022

 
38,521

 
72,960

 
73,913

Net loss (income) attributable to noncontrolling interests
26

 
(564
)
 
127

 
(1,095
)
Net income attributable to Bio-Rad
$
40,048

 
$
37,957

 
$
73,087

 
$
72,818

 
 
 
 
 
 
 
 
Basic earnings per share:
 
 
 
 
 
 
 
Net income per share basic attributable to Bio-Rad
$
1.43

 
$
1.37

 
$
2.61

 
$
2.64

Weighted average common shares - basic
28,014

 
27,606

 
27,959

 
27,575

 
 
 
 
 
 
 
 
Diluted earnings per share:
 
 
 
 
 
 
 
Net income per share diluted attributable to Bio-Rad
$
1.41

 
$
1.35

 
$
2.57

 
$
2.59

Weighted average common shares - diluted
28,495

 
28,125

 
28,443

 
28,072


4

Bio-Rad Laboratories, Inc.
Condensed Consolidated Balance Sheets
(In thousands)


 
June 30,
2011
 
December 31,
2010
 
 (Unaudited)
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
670,301

 
$
906,551

Restricted cash
—

 
6,422

Short-term investments
215,947

 
118,636

Accounts receivable, net
394,913

 
387,996

Inventories
449,337

 
398,100

Other current assets
159,158

 
157,641

Total current assets
1,889,656

 
1,975,346

 
 
 
 
Property, plant and equipment, net
348,439

 
333,617

Goodwill, net
393,125

 
363,981

Purchased intangibles, net
201,425

 
203,881

Other assets
211,600

 
185,939

Total assets
$
3,044,245

 
$
3,062,764

 
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
120,514

 
$
113,440

Accrued payroll and employee benefits
122,254

 
131,381

Notes payable and current maturities of long-term debt
1,363

 
233,181

Income and other taxes payable
49,373

 
50,935

Other current liabilities
149,340

 
137,690

Total current liabilities
442,844

 
666,627

 
 
 
 
Long-term debt, net of current maturities
731,331

 
731,100

Other long-term liabilities
144,155

 
124,518

Total liabilities
1,318,330

 
1,522,245

 
 
 
 
Bio-Rad stockholders’ equity:
1,725,834

 
1,536,696

Noncontrolling interests
81

 
3,823

Total stockholders’ equity
1,725,915

 
1,540,519

Total liabilities and stockholders’ equity
$
3,044,245

 
$
3,062,764



5
Bio-Rad Laboratories, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

 
Six Months Ended
 
June 30,
 
2011
 
2010
Cash flows from operating activities:
 
 
 
Cash received from customers
$
1,020,282

 
$
891,658

Cash paid to suppliers and employees
(842,830
)
 
(779,464
)
Interest paid
(33,296
)
 
(27,861
)
Income tax payments
(18,709
)
 
(28,169
)
Other operating activities
4,634

 
2,491

Net cash provided by operating activities
130,081

 
58,655

Cash flows from investing activities:
 
 
 
Payments for acquisitions and long-term investments
(5,228
)
 
(67,345
)
Other investing activities
(152,848
)
 
(132,744
)
Net cash used in investing activities
(158,076
)
 
(200,089
)
Cash flows from financing activities:
 
 
 
Long-term borrowings
—

 
2,000

Payments on long-term borrowings
(226,368
)
 
(2,940
)
Other financing activities
12,485

 
5,131

Net cash (used in) provided by financing activities
(213,883
)
 
4,191

Effect of foreign exchange rate changes on cash
5,628

 
4,588

Net decrease in cash and cash equivalents
(236,250
)
 
(132,655
)
Cash and cash equivalents at beginning of period
906,551

 
649,938

Cash and cash equivalents at end of period
$
670,301

 
$
517,283

Reconciliation of net income including noncontrolling interests to net cash provided by operating activities:
 
 
 
Net income including noncontrolling interests
$
72,960

 
$
73,913

Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:
 
 
 
Depreciation and amortization
57,743

 
53,633

Changes in working capital
(27,348
)
 
(53,028
)
Other
26,726

 
(15,863
)
Net cash provided by operating activities
$
130,081

 
$
58,655


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BIO-RAD LABORATORIES, INC. Reports