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8-K - FORM 8-K 12-31-2011 - BIO-RAD LABORATORIES, INC.bio-8k2232012.htm
Exhibit 99.1



FOR IMMEDIATE RELEASE


Bio-Rad Reports Fourth-Quarter and Full-Year 2011 Financial Results

HERCULES, CA - February 23, 2012 - 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, 2011.

Fourth-quarter reported revenues were $550.2 million, up 3.1% compared to $533.7 million reported for the fourth quarter of 2010. On a currency-neutral basis, quarterly revenues increased 2.4% compared to the same period in 2010. Fourth-quarter gross margin increased to 56.5% compared to 56.2% during the same quarter in 2010.

Net income attributable to Bio-Rad for the fourth quarter of 2011 was $59.2 million, or $2.08 per share on a fully diluted basis compared to $2.41 per share, during the same period in 2010. These results include a net $7.0 million in operating costs including approximately $2.5 million of amortization expense resulting from Bio-Rad's acquisition of QuantaLife, Inc., in October 2011. Fourth-quarter results in 2010 reflected a tax provision benefit of $10.7 million that was the result of repatriation of foreign earnings and the favorable impact of the extension of the U.S. Research and Experimentation tax credit. Without these two items, the fourth-quarter effective tax rate in 2010 would have been approximately 25% compared to the 20% tax rate in the fourth quarter of 2011 and the annual 2011 tax rate of 24%.

For the full year, sales grew by 7.6% to $2,073.5 million compared to $1,927.1 million in 2010. After normalizing for the impact of currency effects, full year revenues increased 3.1%. Full-year net income attributable to Bio-Rad was $178.2 million, or $6.26 per share on a fully diluted basis, compared to $185.5 million, or $6.59 per share in 2010. Full-year results in 2010 benefitted from a one-time favorable tax event mentioned above. Full-year gross margin increased to 56.8% compared to 56.6% reported in 2010.
 
“As we had anticipated, performance in the fourth quarter and throughout the year was impacted by an uncertain global economy that affected many of our markets in the U.S. and abroad,” said Norman Schwartz, Bio-Rad President and Chief Executive Officer. “In spite of these challenges, we continued to make progress in 2011,


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Bio-Rad Reports Fourth-Quarter and Full-Year 2011 Financial Results
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achieving a milestone for Bio-Rad of crossing the $2 billion mark. While the global economic outlook suggests similar macroeconomic headwinds for 2012, we will continue to monitor these pressures on our global operation and look for opportunities to grow our business.”

Life Science
The Life Science segment net sales for the fourth quarter were $198.9 million, up 3.1% compared to the same period in 2010. On a currency-neutral basis, Life Science segment sales increased by 2.3%. Full-year reported revenues for the Life Science segment were $694.7 million, up 7.2% over the same period in 2010, or an increase of 3.4% on a currency-neutral basis. Results of the fourth quarter reflect good momentum across all product lines, in particular, recently introduced imaging products including the ChemiDoc MP imaging system and Gel Doc EZ system as well as the Trans-Blot® Turbo transfer system, a rapid western blotting instrument that allows researchers to efficiently transfer proteins from gel to blot in three minutes. In October, Bio-Rad acquired QuantaLife, Inc., a company that developed an innovative digital PCR (Polymerase Chain Reaction) system providing quantification of target molecules with unprecedented precision and sensitivity.

Clinical Diagnostics
The Clinical Diagnostics segment reported net sales of $347.3 million for the fourth quarter, up 3.2% compared to the same period in 2010. On a currency-neutral basis, net sales were up 2.5%. Full-year reported revenues for the Clinical Diagnostics segment were $1,363.8 million, an increase of 7.8% over 2010. On a currency-neutral basis, full-year sales increased 2.9% compared to 2010 results. Overall performance in the Clinical Diagnostics segment in the fourth quarter reflects global economic challenges impacting healthcare markets worldwide. These headwinds were partially offset by growth of the Company's quality controls, blood typing, and diabetes monitoring products, as well as sales of the BioPlex® 2200 system.




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Bio-Rad Reports Fourth-Quarter and Full-Year 2011 Financial Results
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2011 Full-Year Highlights
Full-year Company sales grew by 7.6% to $2,073.5 million.
Year-over-year net income was $178.2 million, or $6.26 per share on a fully diluted basis, compared to $185.5 million, or $6.59 per share in 2010.
In March, Bio-Rad launched the Trans-Blot® Turbo transfer system, a rapid western blotting instrument that allows researchers to efficiently transfer proteins from gel to blot in three minutes.
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.
In July, the Company announced that it had received FDA Premarket Application approval from the FDA for its fourth-generation HIV assay, the GS HIV Combo Ag/Ab EIA (enzyme immunoassay), which detects both HIV antigens and HIV antibodies, offering earlier detection of HIV infections.
In July, Bio-Rad introduced several PCR thermal cyclers including the CFX96 Touch and CFX384 Touch real-time PCR detection systems, which feature touch screens for run setup and display of real-time PCR data.
Also in July, the C1000 Touch thermal cycler was introduced, offering high thermal performance with a touch screen for large high-throughput labs as well as the T100 thermal cycler, a compact PCR instrument designed for smaller labs.
In September, Bio-Rad launched ChemiDoc MP Imaging System for more accurate western blot quantification.
In October, Bio-Rad acquired QuantaLife, Inc., a company that developed an innovative digital PCR (Polymerase Chain Reaction) system.

Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) February 23, 2012. Interested parties may access the call by dialing 866-831-6270 (in the U.S.) or 617-213-8858 (international), access number 20400404.


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Bio-Rad Reports Fourth-Quarter and Full-Year 2011 Financial Results
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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 37059477, 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.


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 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 over 7,100 people globally and had revenues exceeding $2 billion in 2011. For more information, 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




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

 
Three Months Ended
 
Year Ended
 
December 31,
 
December 31,
 
2011
 
2010
 
2011
 
2010
Net sales
$
550,238

 
$
533,720

 
$
2,073,529

 
$
1,927,118

Cost of goods sold
239,272

 
233,997

 
895,640

 
835,630

Gross profit
310,966

 
299,723

 
1,177,889

 
1,091,488

Selling, general and administrative expense
174,924

 
176,672

 
696,294

 
635,213

Research and development expense
50,112

 
45,267

 
186,439

 
172,266

Income from operations
85,930

 
77,784

 
295,156

 
284,009

Interest expense
11,987

 
20,548

 
53,135

 
63,717

Foreign exchange losses, net
1,710

 
338

 
13,842

 
3,884

Other (income) expense, net
(1,676
)
 
(303
)
 
(7,583
)
 
(3,875
)
Income before income taxes
73,909

 
57,201

 
235,762

 
220,283

(Provision) benefit for income taxes
(14,708
)
 
10,736

 
(57,739
)
 
(33,348
)
Net income including noncontrolling interests 
59,201

 
67,937

 
178,023

 
186,935

Net loss (income) attributable to noncontrolling interests
38

 
(29
)
 
200

 
(1,445
)
Net income attributable to Bio-Rad
$
59,239

 
$
67,908

 
$
178,223

 
$
185,490

 
 
 
 
 
 
 
 
Basic earnings per share:
 
 
 
 
 
 
 
Net income per share basic attributable to Bio-Rad
$
2.11

 
$
2.44

 
$
6.36

 
$
6.70

Weighted average common shares - basic
28,131

 
27,808

 
28,031

 
27,665

 
 
 
 
 
 
 
 
Diluted earnings per share:
 
 
 
 
 
 
 
Net income per share diluted attributable to Bio-Rad
$
2.08

 
$
2.41

 
$
6.26

 
$
6.59

Weighted average common shares - diluted
28,462

 
28,233

 
28,468

 
28,151


5


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


 
December 31,
2011
 
December 31,
2010
 
 (Unaudited)
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
574,231

 
$
906,551

Restricted cash

 
6,422

Short-term investments
238,884

 
118,636

Accounts receivable, net
398,674

 
387,996

Inventories, net
433,510

 
398,100

Other current assets
152,856

 
157,641

Total current assets
1,798,155

 
1,975,346

 
 
 
 
Property, plant and equipment, net
349,501

 
333,617

Goodwill, net
468,933

 
363,981

Purchased intangibles, net
259,497

 
203,881

Other assets
220,717

 
185,939

Total assets
$
3,096,803

 
$
3,062,764

 
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
129,124

 
$
113,440

Accrued payroll and employee benefits
112,564

 
131,381

Notes payable and current maturities of long-term debt
814

 
233,181

Income and other taxes payable
52,285

 
50,935

Other current liabilities
164,328

 
137,690

Total current liabilities
459,115

 
666,627

 
 
 
 
Long-term debt, net of current maturities
731,698

 
731,100

Other long-term liabilities
161,608

 
124,518

Total liabilities
1,352,421

 
1,522,245

 
 
 
 
Bio-Rad stockholders’ equity
1,743,937

 
1,536,696

Noncontrolling interests
445

 
3,823

Total stockholders’ equity
1,744,382

 
1,540,519

Total liabilities and stockholders’ equity
$
3,096,803

 
$
3,062,764



6


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


 
Year Ended
 
December 31,
 
2011
 
2010
 
(Unaudited)
 
 
Cash flows from operating activities:
 
 
 
Cash received from customers
$
2,018,755

 
$
1,877,483

Cash paid to suppliers and employees
(1,656,467
)
 
(1,536,935
)
Interest paid
(56,859
)
 
(59,834
)
Income tax payments
(52,131
)
 
(55,502
)
Other operating activities
6,518

 
697

Net cash provided by operating activities
259,816

 
225,909

Cash flows from investing activities:
 
 
 
Payments for acquisitions and long-term investments
(158,538
)
 
(89,307
)
Other investing activities
(224,875
)
 
(127,205
)
Net cash used in investing activities
(383,413
)
 
(216,512
)
Cash flows from financing activities:
 
 
 
Long-term borrowings

 
424,633

Payments on long-term borrowings
(226,835
)
 
(206,706
)
Other financing activities
13,275

 
10,818

Net cash (used in) provided by financing activities
(213,560
)
 
228,745

Effect of foreign exchange rate changes on cash
4,837

 
18,471

Net (decrease) increase in cash and cash equivalents
(332,320
)
 
256,613

Cash and cash equivalents at beginning of year
906,551

 
649,938

Cash and cash equivalents at end of year
$
574,231

 
$
906,551

Reconciliation of net income including noncontrolling interests to net cash provided by operating activities:
 
 
 
Net income including noncontrolling interests
$
178,023

 
$
186,935

Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:
 
 
 
Depreciation and amortization
120,956

 
108,911

Changes in working capital
(54,570
)
 
(72,350
)
Other
15,407

 
2,413

Net cash provided by operating activities
$
259,816

 
$
225,909


7