EX-99 2 exh991.htm EXHIBIT 99.1 PART 1 <font style='font-family:Arial Unicode MS,Times New Roman'>–</font> FINANCIAL INFORMATION


Exhibit 99.1

FOR IMMEDIATE RELEASE



Bio-Rad Reports Third-Quarter Currency-Neutral

Revenue Growth of More Than 5 Percent



HERCULES, CA – November 2, 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 third quarter ended  September 30, 2010.


Third-quarter reported revenues were $471.5 million, up 2.3% compared to $461.1 million reported for the third quarter of 2009. On a currency-neutral basis, quarterly revenues increased 5.4% compared to the same period last year. Reflected in these results is $13.6 million additional revenue generated by certain diagnostics businesses of Biotest AG, which were added to the Company’s portfolio in the first quarter of 2010. Excluding the revenue from the Biotest acquisition, third-quarter revenues were down 0.7% or up 2.2% on a currency neutral basis, compared to the same period last year. Third-quarter gross margin was 56.5%, unchanged, compared to the same quarter in 2009.


Net income attributable to Bio-Rad for the third quarter was $44.8 million or $1.59 per share on a fully diluted basis versus $1.38 per share reported for the same period last year.  


Year-to-date revenues grew by 8.1% to $1.4 billion compared to the first three quarters in 2009. Adjusting for the impact of currency, revenue growth was 7.3%. Excluding the additional revenue from the Biotest acquisition, year-to-date organic revenues grew by 4.9%, or 4.1% on a currency-neutral basis.


Year-to-date net income attributable to Bio-Rad for 2010 was $117.6 million, or $4.18 per share on a fully diluted basis, compared to $106.8 million, or $3.85 per share, respectively, during the same period in 2009.


“Third-quarter results show consistency in many of our core product areas in spite of some weak markets in the U.S. and abroad,” said Norman Schwartz, Bio-Rad President and Chief Executive Officer. “As the year wraps up, we will carefully monitor economic pressure on our global operation and look for new opportunities to grow our business.”


Life Science

The Life Science segment net sales for the third quarter were $153.2 million, up 1.9% compared to the same period last year. On a currency-neutral basis, Life Science segment sales increased by 3.5% compared to the third quarter of 2009. Sales growth of the Life Science segment in the U.S. reflects strength in spending by academic and biopharmaceutical customers; European sales continue to lag


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Bio-Rad Reports Third-Quarter Currency-Neutral Revenue Growth of More Than 5 Percent

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Due to weak economic conditions facing government-funded research. Performance of the segment benefited from strong sales of core product lines including the Company’s next generation PCR instruments, in particular, the CFX96 real-time PCR detection system and associated reagents as well as the TC10 automated cell counter, which was introduced earlier this year. Bio-Rads Mini-PROTEAN® TGX precast electrophoresis gel product line, which offers high resolution and fast time to results is also continuing to gain customer acceptance.


Clinical Diagnostics

Reported net sales for the Clinical Diagnostics segment in the third quarter rose to $314.9 million, up 2.4% compared to the same quarter last year. On a currency-neutral basis, net sales were up 6.3%. These results reflect additional revenue of $13.6 million from the diagnostics businesses of Biotest AG that were added to the Company’s portfolio in the first quarter. Excluding revenue from the Biotest acquisition, net sales were up 1.5 % on a currency-neutral basis compared to the same period last year. Overall performance of the Clinical Diagnostics segment was negatively affected by economic challenges impacting healthcare markets in the U.S. and Europe as well as certain sales in 2009 that did not recur in 2010. In July, Bio-Rad submitted a Premarket Approval application to the U.S. Food and Drug Administration for its fourth-generation HIV assay, the GS HIV Combo Ag/Ab EIA (enzyme immunoassay). The test detects HIV antigens (proteins that are part of the HIV virus) and HIV antibodies (proteins that are produced by the body to fight the HIV infection), offering earlier detection of HIV infections.


Internal Control Over Financial Reporting

In connection with our audit committee’s ongoing investigation of our compliance with the FCPA and internal control assessment by management and our internal audit group during our fiscal quarter ended September 30, 2010, we identified three significant deficiencies in our internal control over financial reporting as of September 30, 2010 that, when considered and taken together, constitute a material weakness in our internal control over financial reporting as of September 30, 2010. Our conclusion that we have a material weakness in our internal control over financial reporting as of September 30, 2010 is not based on quantified misstatements in our historical financial statements or our financial statements as of and for our fiscal quarter ended September 30, 2010, but instead on the risk that we may be unable to prevent or detect on a timely basis potential material errors in our future financial statements. We do not presently anticipate that the material weakness in our internal control over financial reporting as of September 30, 2010 will have any material effect on our previously reported financial results or our financial results for our fiscal quarter ended September 30, 2010. Our Quarterly Report on Form 10-Q for our fiscal quarter ended September 30, 2010 will contain more information about these three significant deficiencies and the resulting material weakness and the measures that we are considering initiating to attempt to remediate it.



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Bio-Rad Reports Third-Quarter Currency-Neutral Revenue Growth of More Than 5 Percent

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Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) November 2, 2010. Interested parties may access the call by dialing 800-659-2032 (in the U.S.) or 617-614-2712 (international), access number 52899247.


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 98042813, 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 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

September 30,

 

Nine Months Ended

September 30,

 

2010

 

2009

 

2010

 

2009

 

 

 

 

 

 

 

 

Net sales

$  471,502

 

$   461,055

 

$ 1,393,398

 

$ 1,289,171

Cost of goods sold

205,172

 

200,545

 

601,633

 

557,797

Gross profit

266,330

 

260,510

 

791,765

 

731,374

Selling, general and administrative expense

148,654

 

153,623

 

458,541

 

437,606

Research and development expense

42,874

 

39,516

 

126,999

 

119,075

Income from operations

74,802

 

67,371

 

206,225

 

174,693

Interest expense

14,400

 

14,487

 

43,169

 

32,661

Foreign exchange losses, net

2,749

 

1,472

 

3,546

 

3,249

Other (income) expense, net

(256)

 

192

 

(3,572)

 

(4,956)

Income before taxes

57,909

 

51,220

 

163,082

 

143,739

Provision for income taxes

(12,824)

 

(11,920)

 

(44,084)

 

(33,096)

Net income including noncontrolling interests

45,085

 

39,300

 

118,998

 

110,643

Less: Net income attributable to noncontrolling interests

(321)

 

(776)

 

(1,416)

 

(3,885)

Net income attributable to Bio-Rad

$   44,764

 

$   38,524

 

$   117,582 

 

$   106,758

 

 

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

 

 

 

Net income per share basic attributable to Bio-Rad

$   1.62

 

$   1.40

 

$   4.26

 

$   3.90

Weighted average common shares - basic

27,697

 

27,431

 

27,616

 

27,375

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

 

 

Net income per share diluted attributable to Bio-Rad

$   1.59

 

$   1.38

 

$   4.18

 

$   3.85

Weighted average common shares - diluted

28,103

 

27,875

 

28,110

 

27,749

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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BIO-RAD LABORATORIES, INC.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

 

2010

 

2009

 

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

630,640

 

$

649,938

Short-term investments

 

107,360

 

94,876

Accounts receivable, net

 

368,603

 

345,734

Inventories, net

 

402,883

 

351,206

Other current assets

 

142,223

 

120,920

Total current assets

 

1,651,709

 

1,562,674

 

 

 

 

 

Property, plant and equipment, net

 

321,507

 

302,417

Goodwill, net

 

351,860

 

327,626

Purchased intangibles, net

 

206,616

 

204,779

Other assets

 

150,512

 

138,357

Total assets

 

$

2,682,204

 

$

2,535,853

 

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

99,120

 

$

92,988

Accrued payroll and employee benefits

 

120,171

 

126,702

Notes payable and current maturities of long term-debt

 

9,161

 

5,132

Income and other taxes payable

 

52,176

 

42,322

Other current liabilities

 

130,066

 

152,828

Total current liabilities

 

410,694

 

419,972

 

 

 

 

 

Long-term debt, net of current maturities

 

733,574

 

737,919

Other long-term liabilities

 

109,804

 

98,749

Total liabilities

 

1,254,072

 

1,256,640

 

 

 

 

 

Bio-Rad stockholders’equity

 

1,423,832

 

1,259,726

Noncontrolling interests

 

4,300

 

19,487

Total stockholders’ equity

 

1,428,132

 

1,279,213

Total liabilities and stockholders’ equity

 

$

2,682,204

 

$

2,535,853

 

 

 

 

 

 

 

 

 

 

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BIO-RAD LABORATORIES, INC.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

Nine Months Ended

 

September 30,

 

2010 

 

2009

Cash flows from operating activities:

 

 

 

Cash received from customers

$

1,367,777 

 

$

1,291,054 

Cash paid to suppliers and employees

(1,143,699)

 

(1,030,153)

Interest paid

(48,812)

 

(31,511)

Income tax payments

(50,254)

 

(27,746)

Other operating activities

509 

 

7,708

Net cash provided by operating activities

125,521 

 

209,352 

 

 

 

 

Cash flows from investing activities:

 

 

 

Payments for acquisitions and long-term investments

(88,694)

 

(35,937)

Other investing activities

(75,716)

 

(117,424)

Net cash used in investing activities

(164,410)

 

(153,361)

 

 

 

 

Cash flows from financing activities:

 

 

 

Payments on long-term debt

(5,441)

 

(5,253)

Other financing activities

12,664

 

297,516 

Net cash provided by financing activities

7,223

 

292,263 

 

 

 

 

Effect of foreign exchange rate changes on cash

12,368

 

1,401 

Net increase (decrease) in cash and cash equivalents

(19,298)

 

349,655 

Cash and cash equivalents at beginning of period

649,938 

 

204,524 

Cash and cash equivalents at end of period

$

630,640 

 

$

554,179 

 

 

 

 

Reconciliation of net income including noncontrolling interests to

 

 

 

net cash provided by operating activities:

 

 

 

Net income including noncontrolling interests

$

118,998 

 

$

110,643 

Adjustments to reconcile net income including noncontrolling interests

 

 

 

to net cash provided by operating activities:

 

 

 

Depreciation and amortization

79,964 

 

74,003 

Changes in working capital

(73,589)

 

23,583 

Other

148 

 

1,123 

Net cash provided by operating activities

$

125,521 

 

$

209,352 

 

 

 

 

 

 

 

 

 

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