NBSC New Brunswick Scient (MM)

EDISON, N.J., March 20 /PRNewswire-FirstCall/ -- New Brunswick Scientific Co., Inc. (NBS) (NASDAQ:NBSC), today announced record net sales and higher net income for the fourth quarter and the year ended December 31, 2005, versus the respective periods of 2004. Net sales for fourth-quarter 2005 rose 16.0% to a new quarterly high of $20.2 million from $17.4 million for the comparable 2004 period. The impact of the stronger dollar had a negative impact on the quarter's sales of approximately $0.6 million. Fourth-quarter net income rose 26.3% to $1,250,000, or $0.14 per diluted share, from $990,000, or $0.11 per diluted share, for the same period one year ago. For the year ended December 31, 2005, net sales advanced 8.8% to $67.6 million, exceeding the previous record of $62.1 million reported for the year ended December 31, 2004. Full-year net income of $2,494,000, or $0.28 per diluted share, was up 29.2% from 2004's net income of $1,931,000, or $0.22 per diluted share. Results in 2004 were inclusive of a $346,000 pretax severance payment. Gross margins for the years ended December 31, 2005 and 2004 were a flat 40%. The Company's U.S. operation gross margins declined slightly due to the higher level of export sales through dealer organizations which carry lower margins than direct sales and competitive discounting. Offsetting this decline were (i) higher margins realized by the Company's European sales subsidiaries, (ii) greater absorption of overhead due to the increase in volume, and (iii) lower provisions for excess and obsolete inventory in 2005 as a result of improved inventory management. Selling, general and administrative expenses declined as a percentage of net sales to 27.0% in 2005, compared with 28.2% of net sales in 2004. Supporting the Company's ongoing new-product development program, research, development and engineering expenses surpassed $4.6 million in 2005, reflecting a 25.3% increase compared with last year's $3.7 million. Co-founder and Chairman David Freedman said: "NBS' aggressive development initiatives resulted in several new products that helped propel sales to record levels during the year. Demand remained especially strong for the Company's fermentation equipment, ultra-low temperature freezers and carbon dioxide incubators, which contributed to international sales growth of 16% compared with 2004. Supported by our increased profitability in 2005, we anticipate additional product launches during the current year. "Looking ahead, we are encouraged by strong order activity. Orders increased by 14% in 2005 versus the prior year. Entering 2006, our order backlog was more than 28% higher than at the beginning of 2005," concluded Freedman. To be added to New Brunswick Scientific's e-mail distribution list, please click on the link below: http://www.clearperspectivegroup.com/clearsite/nbsc/emailoptin.html About New Brunswick Scientific New Brunswick Scientific Co., Inc., is a leading global provider of a comprehensive line of research equipment and scientific instrumentation for use in the life science industry. The Company's products are used in the creation, maintenance and control of physical and biochemical environments required for the growth, detection and storage of microorganisms for medical, biological and chemical applications, as well as environmental research and commercial product development. NBS is a forerunner in the research and development of pioneering equipment to meet the challenges of new areas of advancement in life science. Established in 1946, New Brunswick Scientific is headquartered in Edison, New Jersey, with sales and distribution facilities strategically located in the United States, Europe and Asia. For more information, please visit http://www.nbsc.com/ . This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will" or words of similar meaning and include, but are not limited to, statements about the expected future business and financial performance of the Company. The forward-looking statements involve a number of risks and uncertainties, including but not limited to, changes in economic conditions, demand for the Company's products, pricing pressures, intense competition in the industries in which the Company operates, the need for the Company to keep pace with technological developments and respond in a timely manner to changes in customer needs, the Company's dependence on third-party suppliers, the effect on foreign sales of currency fluctuations, acceptance of new products, the labor relations of the Company and its customers and other factors identified in the Company's Securities and Exchange Commission filings. Forward-looking statements are based on management's current expectations and assumptions, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially from these expectations and assumptions due to changes in global political, economic, business, competitive, market, regulatory and other factors. The Company undertakes no obligation to publicly update or review any forward-looking information, whether as a result of new information, future developments or otherwise. NEW BRUNSWICK SCIENTIFIC CO., INC., AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per-share amounts) (Unaudited) Three Months Ended Year Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2005 2004 2005 2004 Net sales $20,191 $17,405 $67,616 $62,124 Operating costs and expenses: Cost of sale 12,148 10,495 40,573 37,292 Selling, general and administrative expenses 4,841 4,250 18,243 17,493 Research, development and engineering expenses 1,074 909 4,620 3,687 Total operating costs and expenses 18,063 15,654 63,436 58,472 Income from operations 2,128 1,751 4,180 3,652 Other income (expense): Interest income 92 28 272 85 Interest expense (92) (66) (359) (394) Other, net 36 (6) 91 (76) 36 (44) 4 (385) Income before income tax expense 2,164 1,707 4,184 3,267 Income tax expense 914 717 1,690 1,336 Net income $1,250 $990 $2,494 $1,931 Basic income per share $0.14 $0.11 $0.28 $0.22 Diluted income per share $0.14 $0.11 $0.28 $0.22 Basic weighted average number of shares outstanding 9,004 8,833 8,959 8,741 Diluted weighted average number of shares outstanding 9,083 8,906 9,022 8,835 SELECTED CONSOLIDATED BALANCE SHEET ITEMS (Dollars in thousands) (Unaudited) December 31, December 31, 2005 2004 Cash and cash equivalents $ 11,351 $ 10,846 Accounts receivable, net 11,989 11,332 Inventories 13,155 12,139 Property, plant and equipment, net 6,595 6,495 Total assets 54,966 53,795 Accounts payable and accrued expenses 10,782 7,592 Long-term debt, net of current installments 1,389 6,022 Shareholders' equity 36,718 35,955 Working capital 22,870 27,198 Current ratio 2.5 to 1 3.9 to 1 DATASOURCE: New Brunswick Scientific Co., Inc. CONTACT: Investors: Thomas Bocchino, Vice President, Finance and Treasurer of New Brunswick Scientific Co., Inc., +1-732-650-2500, ; or Matthew J. Dennis, CFA, NBS Investor Relations, Clear Perspective Group, LLC, +1-440-353-0552, , for New Brunswick Scientific Co., Inc. Web site: http://www.nbsc.com/

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