EX-99.1 CHARTER 2 ex991033106.htm Exhibit 99



Exhibit 99.1


FOR IMMEDIATE RELEASE



BIO-RAD LABORATORIES REPORTS FIRST-QUARTER RESULTS


HERCULES, CA – May 4, 2006 – 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, 2006.  First-quarter revenues from continuing operations were $308.3 million, up 3.0% compared to the $299.2 million reported for the first quarter of 2005.  On a currency-neutral basis, revenues increased 8.3% compared to the first quarter of 2005. This sales increase was the result of organic growth across a broad array of product areas.  For the quarter, income from continuing operations was $31.2 million compared to $29.5 million in the same period last year.  At 56.9%, first-quarter gross margin from continuing operations was markedly higher than the 55.6% reported for the first quarter of 2005.  The higher margin was due to a combination of improved efficiencies and certain non-recurring items.


First-Quarter Highlights


·

First-quarter basic earnings from continuing operations were $1.19 per share, or $1.16 per share on a diluted basis, compared to $1.14 and $1.11, respectively, in the same period of last year.

·

Life Science segment net sales from continuing operations for the quarter were $144.8 million, up slightly from the $144.1 million reported last year. Normalizing for the impact of currency effects, sales in this area increased by 5.6%.

·

The Clinical Diagnostics segment reported solid growth in its core businesses with net sales of $160.3 million, a 5.5% increase over the comparable period last year. On a currency-neutral basis, segment sales increased 10.9% over the first quarter of 2005.

·

In February, the Company reached a settlement agreement with Applera and Roche, enabling the Company to resume U.S. sales of certain MJ Research thermal cycling products.

·

Early in the quarter, Bio-Rad announced that it renewed a collaboration agreement with the Institut Pasteur of Paris for an additional four years.  This relationship gives Bio-Rad exclusive commercialization rights to Pasteur’s developments in the areas of virology, microbiology, physiology, biochemistry, parasitology and mycology.


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Life Science segment net sales for the quarter were $144.8 million, up 0.5% compared to the first quarter of last year.  On a currency-neutral basis, sales increased by 5.6%.  Performance in this segment was the result of a combination of factors including sales increases in the amplification reagents and instrumentation, automated electrophoresis and process chromatography product areas.  In particular, the segment benefited from a resumption of U.S. sales of certain thermal cycling products as well as from continued penetration into the bio-pharmaceutical drug separation market with products such as Bio-Rad’s Macro-Prep® support used in the purification of inhalable insulin.  Segment performance was somewhat tempered, however, by a reduction in BSE testing revenue.


The Clinical Diagnostics segment reported net sales of $160.3 million for the quarter, up 5.5% compared to the prior-year quarter, or 10.9% excluding currency effects.  These results are due in part to continued growth in the blood typing, blood virus screening, autoimmune testing and diabetes monitoring product lines.  Following the placement of a substantial number of systems last year, reagent sales associated with the Company’s EvolisTM automated microplate processors were up dramatically for the quarter.  In addition, sales to low- and mid-volume customers in the diabetes monitoring market benefited from the March release of the Company’s new Rack Loader for use in conjunction with the D-10TM Hemoglobin Testing System, expanding the sample handling capacity of the system to 50 samples.  These benefits were partially offset, however, by increased competition in the high-volume segment of the market.


“The year is getting off to an excellent start, with sales in most regions meeting or exceeding expectations,” said Norman Schwartz, President and Chief Executive Officer.  “As the year unfolds, we will continue to work on a number of projects aimed at growing our core businesses and improving operational efficiency over the longer term.”


Management will discuss these results in a conference call at 2 p.m. Pacific Daylight Time (5 p.m. Eastern Daylight Time) May 4, 2006. Interested parties can access the call by dialing (866) 713-8567 (in the U.S.), or (617) 597-5326 (international), access number 34910773.  The live webcast 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 96738625, for seven days following the call and the webcast can be accessed at http://www.bio-rad.com for 30 days.


About Bio-Rad

Bio-Rad Laboratories, Inc., is a multinational manufacturer and distributor of life science research products and

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Bio-Rad Reports First-Quarter Results

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clinical diagnostics.  Based in Hercules, California, Bio-Rad 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, Vice President and 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.

Consolidated Statements of Income

(in thousands, except per share data)

(Unaudited)

 

Three Months Ended

 

March 31,

  

2006

 

2005

     

Net sales

 

$    308,338 

 

$   299,171 

Cost of good sold

 

132,810 

 

132,765 

Gross profit

 

175,528 

 

166,406 

Selling, general and administrative expense

 

100,070 

 

99,498 

Product research and development expense

 

28,091 

 

26,823 

Interest expense

 

8,019 

 

8,117 

Foreign exchange (gains) losses, net

 

11 

 

(277)

Other (income) expense, net

 

(4,542)

 

(5,838)

Income from continuing operations before taxes

 

43,879 

 

38,083 

Provision for income taxes

 

12,681 

 

8,563 

Income from continuing operations

 

31,198 

 

29,520 

Discontinued operations

    

Gain on divestiture, net of tax benefits of zero in 2005

 

-- 

 

3,974 

Net income

 

$      31,198 

 

$     33,494 

     

Basic earnings per share:

    

Continuing operations

 

$          1.19 

 

$         1.14 

Discontinued operations

 

-- 

 

0.15 

Net income

 

$          1.19 

 

$         1.29 

     

Weighted average common shares

 

26,277 

 

25,909 

     

Diluted earnings per share:

    

Continuing operations

 

$          1.16 

 

$         1.11 

Discontinued operations

 

-- 

 

0.15 

Net income

 

$          1.16 

 

$         1.26 

     

Weighted average common shares

 

26,829 

 

26,555 

     
 





BIO-RAD LABORATORIES, INC

Condensed Consolidated Balance Sheets

(In thousands)

 (Unaudited)

   
  

March 31,

2006

 

December 31,

2005

     

Current Assets:

    

Cash and cash equivalents

 

$         265,587 

 

$          296,716 

Restricted cash

 

-- 

 

36,138 

Short-term investments

 

129,176 

 

116,343 

Accounts receivable, net

 

259,231 

 

247,192 

Inventories, net

 

225,844 

 

212,342 

Other current assets

 

111,811 

 

99,480 

Total current assets

 

991,649 

 

1,008,211 

     

Net property, plant and equipment

 

180,774 

 

180,258 

Goodwill

 

113,276 

 

113,276 

Purchased intangibles, net

 

27,269 

 

28,449 

Other assets

 

101,817 

 

96,388 

Total assets

 

$       1,414,785 

 

$       1,426,582 

     

Current liabilities:

    

Notes payable and current maturities of long-term debt

 

$              3,785 

 

$              3,341 

Accounts payable

 

66,643 

 

72,950 

Accrued payroll and employee benefits

 

67,921 

 

81,076 

Sales, income and other taxes payable

 

22,268 

 

15,841 

Other current liabilities

 

91,021 

 

146,035 

Total current liabilities

 

251,638 

 

319,243 

     

Long-term debt, net of current maturities

 

425,971 

 

425,687 

Other long-term liabilities

 

34,521 

 

23,678 

Stockholders’ equity

 

702,655 

 

657,974 

Total liabilities and stockholders’ equity

 

$       1,414,785 

 

$       1,426,582 

     
 





BIO-RAD LABORATORIES, INC.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

    
 

Three Months Ended

 

March 31,

 

2006

 

2005

Cash flows from operating activities:

   

Cash received from customers

$           299,764 

 

$         296,648 

Cash paid to suppliers and employees

(282,673)

 

(259,242)

Interest paid

(8,938)

 

(8,973)

Income tax payments

(9,562)

 

(6,532)

Litigation settlement related to MJ acquisition

(45,467)

 

-- 

Other operating activities

4,805 

 

2,982 

Net cash provided by (used in) operating activities

(42,071)

 

24,883 

    

Cash flows from investing activities:

   

Capital expenditures, net

(11,318)

 

(9,774)

Receipt of restricted cash

36,498 

 

-- 

Other investing activities

(16,943)

 

103,659 

Net cash provided by investing activities

8,237 

 

93,885 

    

Cash flows from financing activities:

   

Proceeds from issuance of common stock

2,323 

 

2,708 

Other financing activities

373 

 

87 

Net cash provided by financing activities

2,696 

 

2,795 

    

Effect of exchange rate changes on cash

9 

 

601 

    

Net increase (decrease) in cash and cash equivalents

(31,129)

 

122,164 

Cash and cash equivalents at beginning of period

296,716 

 

195,734 

Cash and cash equivalents at end of period

$           265,587 

 

$         317,898 

    

Reconciliation of net income to net cash provided by operating activities:


   
    

Net Income

$            31,198 

 

$           33,494 

Adjustments to reconcile net income to net cash

   

provided by operating activities

   

Depreciation and amortization

12,971 

 

15,171

Changes in working capital

(52,513)

 

(6,905)

Litigation settlement related to MJ acquisition

(45,467)

 

-- 

Other

11,740 

 

(16,877)

Net cash provided by (used in) operating activities

$           (42,071)

  

$            24,883 

    

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