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Form 8-K BIO RAD LABORATORIES For: May 05

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May 5, 2015 4:54 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:   May 5, 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 May 5, 2015, Bio-Rad Laboratories, Inc. announced its financial results for the quarter ended March 31, 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 May 5, 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:
May 5, 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 May 5, 2015




Exhibit 99.1


Press Release

Bio-Rad Reports First-Quarter 2015 Financial Results
 
HERCULES, CA - May 5, 2015 - Bio-Rad Laboratories, Inc. (NYSE: BIO and BIOb), a global provider of life science research and clinical diagnostic products, announced financial results today for the first quarter ended March 31, 2015.

First-quarter reported revenues were $472.8 million, down 7.2% compared to $509.3 million reported for the first quarter of 2014. On a currency-neutral basis, quarterly revenues increased 1.4% compared to the same period last year. First-quarter 2015 gross margin was 57.1% compared to 54.0% during the same quarter last year. The year-over-year increase in gross margin in the first quarter was the result of favorable sales mix and improved manufacturing variances in the first quarter of 2015, as well as benefits from the consolidation and closure of certain facilities during 2014.

Net income for the first quarter of 2015 was $17.8 million, or $0.61 per share on a fully diluted basis compared to $6.7 million or $0.23 per share during the same period last year. In addition to gross margin gains, the year-over-year increase in net income was also helped by the absence of a nonrecurring expense accrued in the first quarter of 2014.

The effective income tax rate for the first quarter of 2015 was 33% compared to the tax rate for the first quarter of 2014 of 54%. The higher tax rate in 2014 was primarily due to higher unbenefitted losses in foreign jurisdictions relative to lower pretax income.

“Currency headwinds mask what was otherwise a respectable performance in the first quarter this year,” said Norman Schwartz, Bio‑Rad President and Chief Executive Officer. “With the completion of our new more globalized management structure, we look forward to improvements in operational efficiency.”

Life Science
The Life Science segment net sales for the first quarter of 2015 were $155.9 million, down 3.4% compared to the same period last year. On a currency-neutral basis, Life Science segment sales increased 4.0% compared to the first quarter in 2014. Results from the first quarter benefitted from increased sales of our Droplet Digital™ PCR, process media, and cell biology products. The currency-neutral sales increase, which reflected strength primarily in North American and European markets, was somewhat offset by slower sales in Asia.

1


Clinical Diagnostics
Net sales for the Clinical Diagnostics segment in the first quarter of 2015 were $313.6 million, down 8.9% compared to the first quarter for 2014. On a currency-neutral basis, net sales increased 0.2% compared to the same period last year. Performance of the Clinical Diagnostics segment in the first quarter benefitted from sales of quality control and immunology products. While sales increased in North America, Eastern Europe, and China in the first quarter of 2015, sales in European markets continue to experience consolidation and pricing pressures.

Management will discuss these results in a conference call at 2 PM Pacific Daylight Time (5 PM Eastern Daylight Time) May 5, 2015. Interested parties may access the call at 855-779-9068 within the U.S. or 631-485-4862 outside the U.S., passcode: 21291896. 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.

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 improved operational efficiency 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 recent changes to our global organizational structure and executive management team, difficulties in implementing our global enterprise resource planning system, our ability to develop and market new or improved products according to our business plan, our ability to compete effectively, product quality and liability issues, supply chain issues, reductions in government funding or capital spending of our customers, changes in the healthcare industry, international legal and regulatory risks, foreign currency exchange fluctuations, 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 March 31, 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.

2



Investor and Financial Contacts:
Bio-Rad Laboratories, Inc.
Christine Tsingos, Executive Vice President and Chief Financial Officer
Ron Hutton, Vice President, Treasurer
510-724-7000



3

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

 
Three Months Ended
 
March 31,
 
2015
 
2014
Net sales
$
472,821

 
$
509,344

Cost of goods sold
202,715

 
234,055

Gross profit
270,106

 
275,289

Selling, general and administrative expense
188,555

 
202,275

Research and development expense
47,202

 
52,543

Income from operations
34,349

 
20,471

Interest expense
5,002

 
3,857

Foreign currency exchange losses, net
3,806

 
2,737

Other (income) expense, net
(1,153
)
 
(661
)
Income before income taxes
26,694

 
14,538

Provision for income taxes
(8,876
)
 
(7,870
)
Net income
$
17,818

 
$
6,668

 
 
 
 
Basic earnings per share:
 
 
 
Net income per basic share
$
0.61

 
$
0.23

Weighted average common shares - basic
29,092

 
28,791

 
 
 
 
Diluted earnings per share:
 
 
 
Net income per diluted share
$
0.61

 
$
0.23

Weighted average common shares - diluted
29,289

 
29,059


4


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


 
March 31,
2015
 
December 31,
2014
 
 (Unaudited)
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
425,728

 
$
413,251

Short-term investments
284,958

 
284,384

Accounts receivable, net
342,223

 
377,640

Inventories, net
478,375

 
470,997

Other current assets
170,560

 
170,095

        Total current assets
1,701,844

 
1,716,367

 
 
 
 
Property, plant and equipment, net
428,300

 
428,836

Goodwill, net
503,422

 
500,441

Purchased intangibles, net
242,970

 
254,228

Other investments
400,262

 
389,309

Other assets
49,398

 
52,097

Total assets
$
3,326,196

 
$
3,341,278

 
 
 
 
Current liabilities:
 
 
 
Accounts payable, accrued payroll and employee benefits
$
250,813

 
$
282,034

Current maturities of long-term debt
264

 
265

Income and other taxes payable
31,926

 
35,165

Other current liabilities
133,879

 
129,297

        Total current liabilities
416,882

 
446,761

 
 
 
 
Long-term debt, net of current maturities
435,661

 
435,710

Other long-term liabilities
275,140

 
273,652

Total liabilities
1,127,683

 
1,156,123

 
 
 
 
Total stockholders’ equity
2,198,513

 
2,185,155

Total liabilities and stockholders’ equity
$
3,326,196

 
$
3,341,278



5

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

 
Three Months Ended
 
March 31,
 
2015
 
2014
Cash flows from operating activities:
 
 
 
Cash received from customers
$
478,479

 
$
544,447

Cash paid to suppliers and employees
(453,986
)
 
(471,452
)
Interest received (paid), net
471

 
(292
)
Income tax refunds (payments)
1,503

 
(6,909
)
Other operating activities
2,979

 
(224
)
Net cash provided by operating activities
29,446

 
65,570

Cash flows from investing activities:
 
 
 
Payments for purchases of long-term investments
(895
)
 
(1,364
)
Other investing activities
(27,096
)
 
(34,206
)
Net cash used in investing activities
(27,991
)
 
(35,570
)
Cash flows from financing activities:
 
 
 
Payments on long-term borrowings
(66
)
 
(66
)
Other financing activities
(265
)
 
3,556

Net cash (used in) provided by financing activities
(331
)
 
3,490

Effect of foreign exchange rate changes on cash
11,353

 
(534
)
Net increase in cash and cash equivalents
12,477

 
32,956

Cash and cash equivalents at beginning of period
413,251

 
331,551

Cash and cash equivalents at end of period
$
425,728

 
$
364,507

 
 
 
 
Reconciliation of net income to net cash provided by operating activities:
 
 
 
Net income
$
17,818

 
$
6,668

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
32,283

 
36,671

Changes in working capital
(20,619
)
 
22,338

Other
(36
)
 
(107
)
Net cash provided by operating activities
$
29,446

 
$
65,570


6

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