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Form 8-K BIO RAD LABORATORIES For: Aug 06

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August 6, 2015 4:34 PM EDT


 


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K

 


CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report:   August 6, 2015
(Date of earliest event reported)
 
 


BIO-RAD LABORATORIES, INC.
(Exact name of registrant as specified in its charter)
 

 


Commission File Number: 1-7928
 
Delaware
 
94-1381833
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
 
1000 Alfred Nobel Dr.
Hercules, California 94547
(Address of principal executive offices, including zip code)
 
(510) 724-7000
(Registrant’s telephone number, including area code)
 
 


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
  





ITEM 2.02    Results of Operations and Financial Condition

On August 6, 2015, Bio-Rad Laboratories, Inc. announced its financial results for the quarter ended June 30, 2015.  A copy of the press release is furnished as Exhibit 99.1 to this report.

In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.



ITEM 9.01    Financial Statements and Exhibits

Exhibit
Number 
 
Description
99.1 
 
Press release of Bio-Rad Laboratories, Inc. dated August 6, 2015







SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
  

 
 
 
BIO-RAD LABORATORIES, INC.
 
 
 
 
 
Date:
August 6, 2015
 
By:
/s/ Christine A. Tsingos
 
 
 
 
Christine A. Tsingos
 
 
 
 
Executive Vice President and Chief Financial Officer










EXHIBIT INDEX

Exhibit
Number 
 
Description
99.1 
 
Press release of Bio-Rad Laboratories, Inc. dated August 6, 2015




Exhibit 99.1



Press Release


Bio-Rad Reports Second-Quarter 2015 Financial Results

HERCULES, CA - August 6, 2015 - Bio-Rad Laboratories, Inc. (NYSE: BIO and BIOb), a global provider of life science research and clinical diagnostic products, today announced financial results for the second quarter ended June 30, 2015.

Second-quarter reported revenues were $506.1 million, down 5.7 percent compared to $536.8 million reported for the second quarter of 2014. On a currency-neutral basis, quarterly revenues increased 4.2 percent compared to the same period last year. Second-quarter gross margin was 55.2 percent compared to 55.4 percent reported during the same quarter in 2014.

Net income for the second quarter of 2015 was $28.4 million, or $0.97 per share on a fully diluted basis, compared to $31.6 million, or $1.09 per share, respectively, during the same period last year.

The year-over-year decrease of net income for the second quarter of 2015 was primarily due to the impact of currency as well as several discrete items including an increase of $2.6 million of bad debt expense, a one-time distributor termination expense of $1.9 million, and a change of $1.7 million of expense reflecting the revaluation of contingent consideration for certain acquisitions. The effective income tax rate for the second quarter of 2015 was 28 percent compared to the tax rate for the second quarter of 2014 of 35 percent. The lower tax rate in 2015 was due to a decrease in tax reserves as a result of the expiration of statutes of limitation.

On a reported basis, revenues for the first half of 2015 were down 6.4 percent to $978.9 million compared to $1.05 billion for the same period in 2014. On a currency-neutral basis, revenues grew 2.9 percent.

Year-to-date net income for 2015 was $46.2 million, or $1.58 per share on a fully diluted basis, compared to $38.3 million, or $1.32 per share, respectively, during the same period in 2014.




1



Life Science
Life Science segment net sales for the second quarter of 2015 were $170.6 million, essentially flat, when compared to the same period last year. On a currency-neutral basis, Life Science segment net sales increased by 8.6 percent compared to the same quarter last year. Results from the second quarter benefitted from currency-neutral increased sales of the Company’s Droplet Digital™ PCR products, western blotting instruments and reagents, and cell biology products. Currency-neutral sales increased primarily in the U.S., Europe, and China during the second quarter of 2015 and were partially offset by slowness in Eastern Europe and Asia Pacific. In April, Bio-Rad introduced the S3e™ Cell Sorter (488/640 nm), the latest addition to the Company’s series of S3e Cell Sorters. The new Cell Sorter incorporates the fluorescence wavelengths commonly used by immunologists. Also during the quarter Bio-Rad released a new product line of PrecisonAb™ Antibodies that are validated specifically for use in western blotting and offer improved sensitivity, specificity, and reliability.
Clinical Diagnostics
Reported net sales for the Clinical Diagnostics segment in the second quarter of 2015 were $332.1 million, a decrease of 8.5 percent compared to the same quarter last year. On a currency-neutral basis, sales increased 2.2 percent compared to the same period last year. The Clinical Diagnostics segment sales performance on a currency-neutral basis reflected growth of diabetes, immunology, and quality controls products. Sales growth in North America, Latin America, and Asia Pacific was offset by European markets, which are still experiencing consolidation and pricing pressures. During the quarter, Bio-Rad announced the availability in U.S. markets of its BioPlex® 2200 25-OH Vitamin D kit for use on the company's BioPlex® 2200 system. The assay offers an automated method for the quantitative measurement of total 25-hydroxyvitamin D in human serum. In June, Bio-Rad announced that its VARIANT™ II TURBO HbA1c Kit - 2.0 had obtained clearance from the U.S. Food and Drug Administration for use as an aid in diagnosing diabetes and identifying people who may be at risk for developing the disease.

Management will discuss these results in a conference call at 2 PM Pacific Daylight Time (5 PM Eastern Time) August 6, 2015. Interested parties may access the call at 877-311-4349 within the U.S. or 720-634-9933 outside the U.S., passcode: 78772878. You may also listen to the conference call live via a webcast that is available on the “Investor Relations” section of our website under “Quarterly Results” at www.bio‑rad.com. The webcast will be available for up to a year.




2



About Bio-Rad
Bio-Rad Laboratories, Inc. (NYSE: BIO and BIOb) develops, manufactures, and markets a broad range of innovative products and solutions for the life science research and clinical diagnostic markets. The company is renowned for its commitment to quality and customer service among university and research institutions, hospitals, public health and commercial laboratories, as well as the biotechnology, pharmaceutical, and food safety industries. Founded in 1952, Bio-Rad is based in Hercules, California, and serves more than 100,000 research and healthcare industry customers through its global network of operations. The company employs more than 7,600 people worldwide and had revenues exceeding $2.1 billion in 2014. For more information, please visit www.bio-rad.com.

This release may be deemed to contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements we make regarding our release of new products, sales by region and future financial performance. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, “believe,” “expect,” “anticipate,” “may,” “will,” “intend,” “estimate,” “continue,” or similar expressions or the negative of those terms or expressions, although not all forward-looking statements contain these words. 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. These risks and uncertainties include our ability to develop and market new or improved products, our ability to compete effectively, product quality and liability issues, supply chain issues, reductions in government funding or capital spending of our customers, international legal and regulatory risks, foreign currency exchange fluctuations, difficulties in implementing our global enterprise resource planning system, recent changes to our global organizational structure and executive management team, changes in the healthcare industry, global economic conditions, and natural disasters and other catastrophic events beyond our control. For further information regarding the Company's risks and uncertainties, please refer to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operation” in the Company’s public reports filed with the Securities and Exchange Commission (the “SEC”), including the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014 and its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2015 to be filed with the SEC. 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.
Investor and Financial Contacts:
Bio-Rad Laboratories, Inc.
Christine Tsingos, Executive Vice President and Chief Financial Officer
Ron Hutton, Vice President and Treasurer
510-724-7000



3

Bio-Rad Laboratories, Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)

 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2015
 
2014
 
2015
 
2014
Net sales
$
506,102

 
$
536,832

 
$
978,923

 
$
1,046,176

Cost of goods sold
226,505

 
239,590

 
429,220

 
473,645

Gross profit
279,597

 
297,242

 
549,703

 
572,531

Selling, general and administrative expense
192,845

 
195,838

 
381,400

 
398,113

Research and development expense
46,547

 
55,717

 
93,749

 
108,260

Income from operations
40,205

 
45,687

 
74,554

 
66,158

Interest expense
4,834

 
5,564

 
9,836

 
9,421

Foreign currency exchange losses (gains), net
2,938

 
(286
)
 
6,744

 
2,451

Other (income) expense, net
(7,107
)
 
(8,388
)
 
(8,260
)
 
(9,049
)
Income before income taxes
39,540

 
48,797

 
66,234

 
63,335

Provision for income taxes
(11,117
)
 
(17,166
)
 
(19,993
)
 
(25,036
)
Net income
$
28,423

 
$
31,631

 
$
46,241

 
$
38,299

 
 
 
 
 
 
 
 
Basic earnings per share:
 
 
 
 
 
 
 
Net income per basic share
$
0.98

 
$
1.10

 
$
1.59

 
$
1.33

Weighted average common shares - basic
29,136

 
28,826

 
29,114

 
28,809

 
 
 
 
 
 
 
 
Diluted earnings per share:
 
 
 
 
 
 
 
Net income per diluted share
$
0.97

 
$
1.09

 
$
1.58

 
$
1.32

Weighted average common shares - diluted
29,381

 
29,092

 
29,338

 
29,076


4


Bio-Rad Laboratories, Inc.
Condensed Consolidated Balance Sheets
(In thousands)


 
June 30,
2015
 
December 31,
2014
 
 (Unaudited)
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
450,133

 
$
413,251

Short-term investments
277,513

 
284,384

Accounts receivable, net
354,161

 
377,640

Inventories, net
500,975

 
470,997

Other current assets
159,146

 
170,095

        Total current assets
1,741,928

 
1,716,367

 
 
 
 
Property, plant and equipment, net
439,644

 
428,836

Goodwill, net
514,078

 
500,441

Purchased intangibles, net
237,706

 
254,228

Other investments
541,732

 
389,309

Other assets
50,255

 
52,097

Total assets
$
3,525,343

 
$
3,341,278

 
 
 
 
Current liabilities:
 
 
 
Accounts payable, accrued payroll and employee benefits
$
239,847

 
$
282,034

Current maturities of long-term debt
268

 
265

Income and other taxes payable
25,238

 
35,165

Other current liabilities
138,541

 
129,297

        Total current liabilities
403,894

 
446,761

 
 
 
 
Long-term debt, net of current maturities
435,660

 
435,710

Other long-term liabilities
326,892

 
273,652

Total liabilities
1,166,446

 
1,156,123

 
 
 
 
Total stockholders’ equity
2,358,897

 
2,185,155

Total liabilities and stockholders’ equity
$
3,525,343

 
$
3,341,278



5

Bio-Rad Laboratories, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

 
Six Months Ended
 
June 30,
 
2015
 
2014
Cash flows from operating activities:
 
 
 
Cash received from customers
$
971,616

 
$
1,087,487

Cash paid to suppliers and employees
(898,757
)
 
(925,534
)
Interest paid, net
(9,071
)
 
(10,912
)
Income tax payments, net
(6,269
)
 
(17,059
)
Other operating activities
10,460

 
8,460

Net cash provided by operating activities
67,979

 
142,442

Cash flows from investing activities:
 
 
 
Payments for acquisitions and long-term investments
(2,589
)
 
(42,010
)
Other investing activities
(53,267
)
 
(52,546
)
Net cash used in investing activities
(55,856
)
 
(94,556
)
Cash flows from financing activities:
 
 
 
Payments on long-term borrowings
(131
)
 
(118
)
Other financing activities
2,861

 
6,416

Net cash provided by financing activities
2,730

 
6,298

Effect of foreign exchange rate changes on cash
22,029

 
(1,065
)
Net increase in cash and cash equivalents
36,882

 
53,119

Cash and cash equivalents at beginning of period
413,251

 
331,551

Cash and cash equivalents at end of period
$
450,133

 
$
384,670

 
 
 
 
Reconciliation of net income to net cash provided by operating activities:
 
 
 
Net income
$
46,241

 
$
38,299

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
64,409

 
73,007

Changes in working capital
(44,196
)
 
30,663

Other
1,525

 
473

Net cash provided by operating activities
$
67,979

 
$
142,442


6

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