EX-99 2 exb991.htm Bio-Rad Laboratories, Inc




Exhibit 99.1

FOR IMMEDIATE RELEASE

Bio-Rad Reports First Quarter Financial Results

HERCULES, CA – May 5, 2005 – Bio-Rad Laboratories, Inc. (AMEX: BIO and BIOb), a multinational manufacturer and distributor of life science research products and clinical diagnostics, announced financial results today for the first quarter ended March 31, 2005. First-quarter net sales from continuing operations were $299.2 million, up 13.9 percent compared to the $262.7 million reported for the first quarter of 2004. On a currency-neutral basis, revenues increased 10.2 percent compared to the first quarter of 2004. This sales growth was the result of gains across a broad array of product areas. Income from continuing operations was $29.5 million compared to $22.6 million in the first quarter last year. Net income for the quarter was $33.5 million. This includes a $4 million gain recorded in discontinued operations related to the sale of the confocal microscopy business. This gain is a result of the resolution of a lease commitment in the UK.


First-Quarter Highlights

-

Fully diluted earnings were $1.26 per share, compared to $0.83 reported for the first quarter of 2004.

-

Life Science segment net sales from continuing operations for the quarter were $144.1 million, up 18.5 percent from the $121.6 million reported last March. On a currency-neutral basis, sales in this area increased by 14.9 percent.

-

The Clinical Diagnostics segment reported consistent growth in its core businesses with total net sales of $151.9 million, a 9.4 percent increase over the comparable period last year. On a currency-neutral basis, segment sales increased 5.5 percent over the first quarter of 2004.  

-

The settlement of the UK lease commitment along with certain other one-time international tax benefits caused the Company’s effective tax rate to fall for the quarter to 22.5%.

-

In March, the Japanese government overturned an injunction against Bio-Rad, enabling the company to resume sales of its real time PCR instrumentation in that country. Positive sales effects are expected to materialize in the second quarter of 2005.   

-

Throughout the first quarter, the company’s new ExperionTM Electrophoresis System was well received by customers worldwide.


For the Life Science segment, growth in the first quarter was the result of a combination of factors including substantial sales of amplification reagents, process chromatography media and the Bio-PlexTM protein assay system. This growth was somewhat tempered, however, by erosion in the average selling price of BSE tests and competition in the real time PCR instrumentation business.


(more)


Bio-Rad First Quarter






Overall, the Clinical Diagnostics segment experienced considerable growth due to increased worldwide sales of its quality control products, continued success in the U.S. with its Aspergillus test, as well as consistent demand in the U.S., Japanese and Asian markets for its blood virus products including the EvolisTM System.


“While we are still somewhat cautious about 2005, first quarter financial results are a healthy start for the year,” said President and Chief Executive Officer Norman Schwartz. “Additionally, the integration of MJ Research is proceeding as planned. Full assimilation of the sales efforts were completed during the first quarter and we have begun to experience some of the operational efficiencies. During the next several quarters, we hope to realize the full potential of the combined businesses.”


Management will discuss these results in a conference call scheduled for 2:00 p.m. PT (5:00 p.m. ET) today, May 5, 2005. Interested parties can access the call by dialing (800) 591-6942 (in the U.S.), or (617) 614-4909 (international), access number 51782785. The live web cast can be accessed at http://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 59115610 for seven days following the call and the web cast can be accessed at http://www.bio-rad.com" for 30 days.


Bio-Rad Laboratories, Inc. (http://www.bio-rad.com") is a multinational manufacturer and distributor of life science research products and clinical diagnostics. It is based in Hercules, California, and serves more than 70,000 research and industry customers worldwide through a network of more than 30 wholly owned subsidiary offices.


Various statements made within this press release may constitute “forward-looking statements” for purposes of the Securities and Exchange Commission’s “safe harbor” provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. The forward-looking statements contained herein involve risks and uncertainties that could cause results to differ materially from the Company’s expectations.


For more information, contact:
Christine Tsingos, Chief Financial Officer, or

Ron Hutton, Treasurer

Bio-Rad Laboratories, Inc.

Phone:  (510) 724-7000
E-mail: investor_relations@bio-rad.com











Bio-Rad Laboratories, Inc.

First Quarter 2005

Consolidated Statements of Income

(in thousands, except per share data)

(UNAUDITED)

 

Three Months Ended

March 31,

  

2005

 

2004

     

Net sales

$

299,171

$

262,749 

Cost of goods sold

 

132,765

 

113,485 

Gross profit

 

166,406

 

149,264 

Selling, general and administrative expense

 

99,498

 

87,057 

Product research and development expense

 

26,823

 

24,333 

Purchased in-process research and development expense

 

--

 

900

Interest expense

 

8,117

 

5,050 

Foreign exchange (gains) losses, net

 

(277)

 

202 

Other (income) expense, net

 

(5,838)

 

216

Income from continuing operations before taxes

 

38,083

 

31,506 

Provision for income taxes

 

8,563

 

8,886

Income from continuing operations

 

29,520

 

22,620 

Loss from discontinued operations

    

Discontinued operations, net of tax

 

--

 

(642)

Gain on divestiture, net of tax

 

3,974

 

--

Net income

$

33,494

$

21,978 

     

Basic earnings per share:

    

Continuing operations

$

1.14

$

0.88 

Discontinued operations

 

0.15

 

(0.02)

Net income

$

1.29

$

0.86 

     

Weighted average common shares

 

25,909

 

25,624 

     

Diluted earnings per share:

    

Continuing operations

$

1.11

$

0.85 

Discontinued operations

 

0.15

 

(0.02)

Net income

$

1.26

$

0.83 

     

Weighted average common shares

 

26,555

 

26,444 

     

Certain items have been reclassified to conform to the current year presentation.






BIO-RAD LABORATORIES, INC

Condensed Consolidated Balance Sheets

(In thousands, except share data)

(Unaudited)

  

March 31, 2005

 

December 31, 2004

Current Assets:

    

Cash and cash equivalents  

$

317,898

$

195,734 

Short-term investments

 

65,907

 

165,899 

Accounts receivable, net

 

250,968

 

261,243 

Inventories, net

 

208,920

 

205,512 

Prepaid expenses, taxes and other current assets

 

77,362

 

80,072 

Total current assets

 

921,055

 

908,460 

Net property, plant and equipment

 

197,303

 

202,324

Goodwill, net

 

113,276

 

113,276 

Other assets

 

167,280

 

167,942

Total assets

$

1,398,914

$

1,392,002 

     

Current liabilities:

    

Notes payable and current maturities of long-term debt

$

9,658

$

9,457

Accounts payable

 

67,145

 

71,194

Accrued payroll and employee benefits

 

67,615

 

79,061

Sales, income and other taxes payable

 

15,369

 

15,835

Other current liabilities

 

138,693

 

139,828

Total current liabilities

 

298,480

 

315,375

     

Long-term debt, net of current maturities

 

425,807

 

425,979

Deferred tax liabilities

 

26,588

 

24,772

Other long-term liabilities

 

23,753

 

28,988

Stockholders’ equity

 

624,286

 

596,888

Total liabilities and stockholders’ equity

$

1,398,914

$

1,392,002

     

 Certain items have been reclassified to conform to the current year presentation.







BIO-RAD LABORATORIES, INC.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

  
 

Three Months

Ended March 31,

 

2005

2004

Cash flows from operating activities:

  

Cash received from customers

$  296,648

$  266,784 

Cash paid to suppliers and employees

(259,242)

(221,836)

Interest paid

(8,973)

(9,360)

Income tax payments

(6,532)

(9.682)

Miscellaneous receipts

4,309

2,211 

Discontinued operations

(1,327)

(811)

Net cash provided by operating activities

24,883

27,306 

   

Cash flows from investing activities:

  

Capital expenditures, net

(9,774)

(13,417)

Other investing activities (principally short-term investments)

103,659

(37,405)

Net cash used in investing activities

93,885

(50,822)

   

Cash flows from financing activities:

  

Payments on long-term debt

(121)

(117)

Other financial activities

2,916 

93 

Net cash provided by (used in) financial activities

2,795 

(24)

   

Effect of exchange rate changes on cash

601 

293 

   

Net increase(decrease) in cash and cash equivalents

122,164 

(23,247)

Cash and cash equivalents at beginning of period

195,734 

65,395 

Cash and cash equivalents at end of period

317,898 

42,148 

   

Reconciliation of income from continuing operations to net cash provided by operating activities:

Income from continuing operations

$  29,520 

$ 22, 620 

Adjustments to reconcile net income to net cash provided by

  

operating activities (net of effects of acquisitions):

  

Depreciation and amortization

15,171 

10,500 

Changes in working capital

(6,905)

(2,014)

Other

(16,877)

(3,158)

Discontinued operations

3,974 

(642)

Net cash provided by operating activities

$  24,883 

$ 27,306 

   

Certain items have been reclassified to conform to the current year presentation