EX-99 2 exh991test1.htm EXHIBIT 99.1 - PRESS RELEASE AUGUST 3, 2010 PART 1 <font style='font-family:Arial Unicode MS,Times New Roman'>–</font> FINANCIAL INFORMATION

Exhibit 99.1


FOR IMMEDIATE RELEASE



Bio-Rad Reports Second-Quarter Currency-Neutral

Revenue Growth of 9 Percent



HERCULES, CA – August 3, 2010 – 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, 2010.


Second-quarter reported revenues were $467.7 million, up 9.5% compared to $427.2 million reported for the second quarter of 2009. On a currency-neutral basis, quarterly revenues increased 9.0% compared to the same period last year. This improvement is the result of organic growth across Bio-Rad’s two main areas, Life Science and Clinical Diagnostics, as well as revenue of $14.5 million resulting from the addition of certain diagnostics businesses of Biotest AG to the Company’s portfolio in the first quarter of 2010. Excluding the revenue from the Biotest acquisition, second-quarter revenues were up 6.1% or 5.5% on a currency neutral basis, compared to the same period last year. Second-quarter gross margin increased to 57.4% primarily due to benefits of certain unique items. Excluding these items, second-quarter gross margin would have been 56.4% compared to 56.6% reported during the same quarter last year.


Net income attributable to Bio-Rad for the second quarter of 2010 was unchanged at $38.0 million compared to the second quarter in 2009. Second-quarter earnings were $1.35 per share on a fully diluted basis versus $1.37 per share reported for the same period last year.


Year-to-date revenues grew by 11.3% to $921.9 million compared to the first two quarters in 2009. Adjusting for the impact of currency, revenue growth was 8.4%. Excluding the additional revenue from the Biotest acquisition, year-to-date organic revenues grew by 8.0% to $894.7 million, or 5.2% on a currency-neutral basis.


Year-to-date net income attributable to Bio-Rad at June 30, 2010 was $72.8 million, or $2.59 per share on a fully diluted basis, compared to $68.2 million, or $2.47 per share, respectively, during the same period in 2009.


“We are pleased with our performance for the first half of the year, which reflects strength in our core product lines as well as favorable customer acceptance of products introduced this year,” said Norman Schwartz, Bio-Rad President and Chief Executive Officer. “While our customers’ budgets in parts of the world continue to be constrained, the outlook for the year remains positive.”


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Bio-Rad Reports Second-Quarter Currency-Neutral Revenue Growth of 9 Percent

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Life Science

The Life Science segment net sales for the second quarter were $150.7 million, up 0.6% compared to the same period last year. On a currency-neutral basis, Life Science segment sales decreased by 0.1% compared to the second quarter of 2009. Sales of certain core product lines performed well during the quarter, in particular, the recently introduced TC10 automated cell counter, which provides a simple, rapid, and reproducible alternative to researchers who count cells. Performance of the segment benefited from the Companys next generation PCR instruments, most notably, the CFX96 real-time PCR detection system and associated reagents. Bio-Rads Mini-PROTEAN® TGX precast electrophoresis gel product line, which offers high resolution and fast time to results, also performed well and is rapidly gaining customer acceptance.  


Clinical Diagnostics

Reported net sales for the Clinical Diagnostics segment in the second quarter rose to $314.1 million, up 14.5% compared to the same quarter last year. On a currency-neutral basis, net sales were up 14.1%. Excluding revenue from the Biotest acquisition, net sales were up 9.2%, or 8.7% on a currency-neutral basis compared to the same period last year. These gains were the result of growth across all product lines most notably quality controls, blood typing, and diabetes monitoring,  as well as additional revenue from new diagnostics businesses of Biotest AG that were added to the  Company’s portfolio in the first quarter. During the second quarter, Bio-Rad announced the launch of its IH-1000 blood typing system for markets outside the U.S. The instrument is a fully-automated, high-throughput system designed for the blood transfusion laboratory. Also during the second quarter, the Company launched the BioPlex® 2200 MMRV IgG kit for use on the Company’s BioPlex® 2200 system. The MMRV IgG kit (measles; mumps; rubella; and the varicella-zoster virus, commonly known as chicken pox) provides simultaneous results for the four tests that are typically ordered together to determine a patient’s susceptibility to MMRV.


Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) August 3, 2010. Interested parties may access the call by dialing 800-901-5259 (in the U.S.) or 617-786-4514 (international), access number 36675924.


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 81420296, 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 Currency-Neutral Revenue Growth of 9 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 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 85,000 research and industry customers worldwide through its global network of operations. The Company employs over 6,800 people globally and had revenues of nearly $1.8 billion in 2009. 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

June 30,

 

Six Months Ended

June 30,

 

2010

 

2009

 

2010

 

2009

 

 

 

 

 

 

 

 

Net sales

$

467,662 

 

$

427,183 

 

$

921,896 

 

$

828,116 

Cost of goods sold

199,354 

 

185,221 

 

396,461 

 

357,253 

Gross profit

268,308 

 

241,962 

 

525,435 

 

470,863 

Selling, general and administrative expense

156,270 

 

143,670 

 

309,887 

 

283,983 

Research and development expense

43,862 

 

42,407 

 

84,125 

 

79,558 

Income from operations

68,176 

 

55,885 

 

131,423 

 

107,322 

Interest expense

14,325 

 

10,367 

 

28,769 

 

18,174 

Foreign exchange losses, net

1,014 

 

2,551 

 

797 

 

1,777 

Other income, net

(2,517)

 

(6,307)

 

(3,316)

 

(5,148)

Income before tax

55,354 

 

49,274 

 

105,173 

 

92,519 

Provision for income taxes

(16,833)

 

(9,974)

 

(31,260)

 

(21,176)

Net income including noncontrolling interests

38,521 

 

39,300 

 

73,913 

 

71,343 

Less: Net income attributable to noncontrolling interests

(564)

 

(1,331)

 

(1,095)

 

(3,109)

Net income attributable to Bio-Rad

$

37,957 

 

$

37,969 

 

$

72,818 

 

$

68,234 

 

 

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

 

 

 

Net income per share basic attributable to Bio-Rad

$

1.37

 

$

1.39

 

$

2.64

 

$

2.50

Weighted average common shares - basic

27,606

 

27,370

 

27,575

 

27,346

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

 

 

Net income per share diluted attributable to Bio-Rad

$

1.35

 

$

1.37

 

$

2.59

 

$

2.47

Weighted average common shares - diluted

28,125

 

27,742

 

28,097

 

27,681

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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BIO-RAD LABORATORIES, INC.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

2010

 

2009

 

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

614,223

 

$

649,938

Short-term investments

 

103,486

 

94,876

Accounts receivable, net

 

335,354

 

345,734

Inventories, net

 

370,272

 

351,206

Other current assets

 

132,492

 

120,920

Total current assets

 

1,555,827

 

1,562,674

 

 

 

 

 

Property, plant and equipment, net

 

305,936

 

302,417

Goodwill, net

 

329,386

 

327,626

Purchased intangibles, net

 

199,922

 

204,779

Other assets

 

136,053

 

138,357

Total assets

 

$

2,527,124

 

$

2,535,853

 

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

95,161

 

$

92,988

Accrued payroll and employee benefits

 

111,518

 

126,702

Notes payable and current maturities of long term-debt

 

9,750

 

5,132

Income and other taxes payable

 

44,003

 

42,322

Other current liabilities

 

129,063

 

152,828

Total current liabilities

 

389,495

 

419,972

 

 

 

 

 

Long-term debt, net of current maturities

 

734,339

 

737,919

Other long-term liabilities

 

100,558

 

98,749

Total liabilities

 

1,224,392

 

1,256,640

 

 

 

 

 

Bio-Rad stockholders’equity

 

1,285,131

 

1,259,726

Noncontrolling interests

 

17,601

 

19,487

Total stockholders’ equity

 

1,302,732

 

1,279,213

Total liabilities and stockholders’ equity

 

$

2,527,124

 

$

2,535,853

 

 

 

 

 

 

 

 

 

 

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BIO-RAD LABORATORIES, INC.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

Six Months Ended

 

June 30,

 

2010 

 

2009

 

 

 

 

Cash flows from operating activities:

 

 

 

Cash received from customers

$

891,658

 

$

831,208 

Cash paid to suppliers and employees

(779,464)

 

(698,527)

Interest paid

(27,861)

 

(15,340)

Income tax payments

(28,169)

 

(13,220)

Other operating activities

2,491 

 

7,742 

Net cash provided by operating activities

58,655 

 

111,863 

 

 

 

 

Cash flows from investing activities:

 

 

 

Payments for acquisitions and long-term investments

(67,345)

 

(33,805)

Other investing activities

(35,804)

 

(36,965)

Net cash used in investing activities

(103,149)

 

(70,770)

 

 

 

 

Cash flows from financing activities:

 

 

 

Payments on long-term debt

(2,940)

 

(3,585)

Other financing activities

7,131 

 

294,690 

Net cash provided by financing activities

4,191 

 

291,105 

 

 

 

 

Effect of foreign exchange rate changes on cash

4,588 

 

(3,248)

 

 

 

 

Net increase (decrease) in cash and cash equivalents

(35,715)

 

328,950

Cash and cash equivalents at beginning of period

649,938 

 

204,524

Cash and cash equivalents at end of period

$

614,223 

 

$

533,474

 

 

 

 

Reconciliation of net income including noncontrolling interests to

 

 

 

net cash provided by operating activities:

 

 

 

Net income including noncontrolling interests

$

73,913 

 

$

71,343 

Adjustments to reconcile net income including noncontrolling interests

 

 

 

to net cash provided by operating activities:

 

 

 

Depreciation and amortization

53,633 

 

47,765 

Changes in working capital

(53,028)

 

(7,490)

Other

(15,863)

 

245 

Net cash provided by operating activities

$

58,655 

 

$

111,863 

 

 

 

 

 

 

 

 

 

 

 

 

 

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