HERCULES, Calif., Feb. 22 /PRNewswire-FirstCall/ -- Bio-Rad
Laboratories, Inc. (Amex: BIO; BIOb), a multinational manufacturer
and distributor of life science research products and clinical
diagnostics, announced financial results today for the fourth
quarter and fiscal year ended December 31, 2005. Net revenues from
continuing operations were $307.3 million for the fourth quarter,
essentially flat versus the prior-year quarter. On a currency-
neutral basis, however, revenues were up 2.9% over the same period
last year. During the quarter, the Life Science segment experienced
a reduction in revenue as well as higher incremental expenses as it
absorbed the impact of the injunction by a Connecticut Federal
District Court stopping all sales and manufacturing in the United
States of the Company's MJ Research line of thermal cycling
products. For the quarter, income from continuing operations was
$13.5 million compared to $17.1 million in the fourth quarter of
last year. Quarterly net income was negatively impacted by a
one-time, non-cash charge of $19.8 million of pre-tax impairment
expenses primarily due to the write-down of intangible assets
associated with the acquisition of MJ Research. These negatives
were partially offset by fourth-quarter pre-tax gains of
approximately $11 million associated with the liquidation of our
positions in Instrumentation Laboratory S.p.A. and BioSource
International. For the full year, Company sales from continuing
operations grew by 8.3% to $1,181.0 million compared to $1,090.0
million in 2004. Normalizing for the impact of currency effects,
growth was 7.3%. This growth was largely due to organic growth in
Bio-Rad's two main business segments. Year-over-year income from
continuing operations grew by 17.0% to $77.6 million, or $2.98 per
share, from $66.3 million, or $2.58 per share in 2004. Full-year
gross margin from continuing operations was 54.7%, down from last
year's figure of 56.0%. The decline in gross margin was largely
attributable to sales mix coupled with price erosion in our BSE
(bovine spongiform encephalopathy or mad cow disease) business.
Fourth-Quarter Highlights * Overall net sales from continuing
operations for the fourth quarter were flat versus the prior-year
quarter. * Fourth-quarter basic earnings from continuing operations
were $0.51 per share, or $0.50 per share on a diluted basis,
compared to $0.66 and $0.65, respectively, in the same period of
last year. * Compared to their respective figures in 2004, segment
net sales for the quarter were 5.3% lower for the Life Science
segment and 4.0% higher for the Clinical Diagnostics segment. The
lower revenues in the Life Science segment were due in large part
to the injunction on sales and manufacturing of our MJ Research
line of products in the United States. Life Science segment net
sales for the quarter were $140.7 million, down 5.3% compared to
the fourth quarter of last year. On a currency-neutral basis,
segment sales contracted by 1.8%. Full-year reported revenues from
continuing operations were $549.9 million for the segment, up 9.0%
over the prior year, or 8.2% on a currency-neutral basis.
Performance in this segment was boosted by a number of factors
including sales increases in the protein expression analysis,
automated electrophoresis, amplification reagents and biotechnology
education product areas. The iQTM5 real time amplification platform
also gained market acceptance. However, segment results continued
to be negatively impacted by erosion in the average selling price
of BSE tests. This erosion is due primarily to increased
competition in the marketplace coupled with a reduction in the
overall number of animals being tested. Also during the quarter,
the segment experienced a reduction in revenue due to the
aforementioned injunction. In February of 2006, the Company settled
its dispute with Applera and Roche, enabling the resumption of
sales of thermal cycling products. The Clinical Diagnostics segment
reported net sales of $162.9 million for the quarter, up 4.0%
compared to the prior-year quarter, or 6.7% excluding currency
effects. Full-year segment sales from continuing operations were
$618.4 million, a 7.3% increase compared to 2004 results, or 5.9%
excluding currency effects. These results are due in part to
continued growth in the blood virus, diabetes monitoring and
quality controls product lines. U.S. Sales of the segment's
Platelia(TM) Aspergillus enzyme immunoassay (EIA) were also up
significantly over last year. During the year, the Clinical
Diagnostics Group launched a number of products including the new
MRSA select chromogenic media, which detects Methicillin-resistant
Staphylococcus aureus. 2005 Highlights * Full-year Company sales
from continuing operations grew by 8.3% to $1,181.0 million. *
Year-over-year income from continuing operations grew by 17.0% to
$77.6 million from $66.3 million in 2004. * Certain one-time tax
benefits caused the Company's effective tax rate on income from
continuing operations to fall for the year to 16.9%. * In July,
Bio-Rad and Sysmex America, Inc., signed a co-marketing agreement
in which the two companies will jointly market their complementary
products, the Bio-Rad VARIANT(TM) II TURBO HST Hemoglobin Testing
System and the Sysmex HST-N(TM) Hematology Automation Line, as a
complete, integrated testing solution. This combination of
Bio-Rad's market-leading assay for hemoglobin A1C and Sysmex's
automated testing platform will enable laboratories to provide
superior diabetes monitoring services to doctors and their patients
throughout the United States. * In October, Bio-Rad announced a
second collaboration agreement with Caliper Life Sciences, Inc. to
investigate development of another novel microfluidic system. * The
Company's new Experion(TM) automated electrophoresis system was
well received by customers worldwide, especially for use in protein
profiling applications. * In November, the Company received
approval for its medical decision support software (MDSS) from the
U.S. Food and Drug Administration (FDA) for its new BioPlex(R) 2200
system, an automated immunoassay platform capable of analyzing for
multiple disease states from single patient samples. The system
improves both test quality and turnaround time, and renders the
diagnostic process far less labor- intensive. * Pfizer's Exubera(R)
inhalable insulin product was recently approved by the U.S. Food
and Drug Administration for the treatment of adults with type 1 and
type 2 diabetes. Bio-Rad's Macro-Prep(R) process chromatography
support is an integral part of the purification of the insulin used
in this product. * In December, Bio-Rad renewed a collaboration
agreement with the Institut Pasteur of Paris, France for an
additional four years. This relationship gives Bio-Rad exclusive
commercialization rights to Pasteur's research developments in the
areas of virology, microbiology, physiology, biochemistry,
parasitology and mycology. "2005 was a dynamic year," said Norman
Schwartz, President and Chief Executive Officer. "Underneath it all
is a solid business in which we see real opportunities as we head
into 2006." Management will discuss these results in a conference
call at 2:00 p.m. PT (5:00 p.m. ET) February 22, 2006. Interested
parties can access the call by dialing 866-825-3209 (in the U.S.),
or 617-213-8061 (international), access number 61793659. 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 98718856, 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., is
a multinational manufacturer and distributor of life science
research products and 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. Bio-Rad Laboratories, Inc. Condensed
Consolidated Statements of Income (in thousands, except per share
data) (UNAUDITED) Three Months Twelve Months Ended Ended December
31, December 31, 2005 2004 2005 2004 Net sales $307,287 $307,868
$1,180,985 $1,090,012 Cost of goods sold 144,662 139,533 534,499
479,939 Gross profit 162,625 168,335 646,486 610,073 Selling,
general and administrative expense 109,626 110,825 416,084 378,264
Product research and development expense 31,109 31,885 115,104
108,344 Purchased in-process research and development expense -- --
-- 14,620 Impairment expenses 19,770 -- 19,770 -- Interest expense
8,272 5,255 32,643 20,219 Foreign exchange (gains) losses, net
(232) 774 (1,528) 2,394 Other (income) expense, net (14,925)
(7,789) (28,958) (11,095) Income from continuing operations before
taxes 9,005 27,385 93,371 97,327 Provision for income taxes (4,447)
10,274 15,792 31,035 Income from continuing operations 13,452
17,111 77,579 66,292 Discontinued operations -- -- 3,974 1,950 Net
income $13,452 $17,111 $81,553 $68,242 Basic earnings per share
Continuing operations $0.51 $0.66 $2.98 $2.58 Discontinued
operations -- -- 0.15 0.07 Net income $0.51 $0.66 $3.13 $2.65
Weighted average common shares 26,203 25,819 26,063 25,724 Diluted
earnings per share Continuing operations $0.50 $0.65 $2.91 $2.51
Discontinued operations -- -- 0.15 0.07 Net income $0.50 $0.65
$3.06 $2.58 Weighted average common shares 26,770 26,528 26,662
26,489 Bio-Rad Laboratories, Inc. Condensed Consolidated Balance
Sheets (In thousands) (UNAUDITED) December 31, December 31, 2005
2004 Current Assets: Cash and cash equivalents $296,716 $195,734
Restricted cash 36,138 -- Short-term investments 116,343 165,899
Accounts receivable, net 247,192 261,243 Inventories, net 212,342
205,512 Other current assets 99,480 80,072 Total current assets
1,008,211 908,460 Net property, plant and equipment 180,258 202,324
Goodwill 113,276 113,276 Purchased intangibles, net 28,449 58,638
Other assets 96,388 88,920 Total assets $1,426,582 $1,371,618
Current liabilities: Notes payable and current maturities of
long-term debt $3,341 $9,457 Accounts payable 72,950 71,194 Accrued
payroll and employee benefits 81,076 79,061 Sales, income and other
taxes payable 15,841 15,835 Other current liabilities 146,035
139,828 Total current liabilities 319,243 315,375 Long-term debt,
net of current maturities 425,687 425,979 Other long-term
liabilities 23,678 33,376 Stockholders' equity 657,974 596,888
Total liabilities and stockholders' equity $1,426,582 $1,371,618
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) Twelve Months
Ended December 31, 2005 2004 Cash flows from operating activities:
Cash received from customers $1,166,711 $1,087,946 Cash paid to
suppliers and employees (1,003,264) (920,606) Interest paid
(31,334) (19,543) Income tax payments (39,597) (33,637)
Miscellaneous receipts 15,768 8,933 Net cash provided by operating
activities 108,284 123,093 Cash flows from investing activities:
Capital expenditures, net (36,055) (60,493) Other investing
activities 29,883 (125,825) Net cash used in investing activities
(6,172) (186,318) Cash flows from financing activities: Long-term
borrowings -- 200,000 Payments on long-term debt (447) (1,781)
Other financing activities 1,737 (4,992) Net cash provided by (used
in) financing activities 1,290 193,227 Effect of exchange rate
changes on cash (2,420) 337 Net increase in cash and cash
equivalents 100,982 130,339 Cash and cash equivalents at beginning
of period 195,734 65,395 Cash and cash equivalents at end of period
$296,716 $195,734 Reconciliation of net income to net cash provided
by operating activities: Net income $81,553 $68,242 Adjustments to
reconcile income from continuing operations to net cash provided by
operating activities (net of effects of acquisitions): Depreciation
and amortization 60,974 56,143 Impairment expense 19,770 -- Changes
in working capital (31,599) (5,531) Other (22,414) 4,239 Net cash
provided by operating activities $108,284 $123,093 Certain items
have been reclassified to conform to the current year presentation.
DATASOURCE: Bio-Rad Laboratories, Inc. CONTACT: Christine Tsingos,
Vice President and Chief Financial Officer, or Ron Hutton,
Treasurer, both of Bio-Rad Laboratories, Inc., +1-510-724-7000, or
Web site: http://www.bio-rad.com/
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