Bio-Rad Reports First-Quarter 2016 Currency-Neutral Revenue Growth of Nearly 4 Percent
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HERCULES, CA -- (Marketwired) -- 05/05/16 -- Bio-Rad Laboratories, Inc. (NYSE: BIO) and (NYSE: BIO.B), a global provider of life science research and clinical diagnostic products, announced financial results today for the first quarter ended March 31, 2016.
First-quarter 2016 reported revenues were $471.2 million, down 0.3% compared to $472.8 million reported for the first quarter of 2015. On a currency-neutral basis, quarterly revenues increased 3.9% compared to the same period last year. First-quarter 2016 gross margin was 56.0% compared to 57.1% during the same quarter last year. The decrease in gross margin during the first quarter of 2016 was primarily the result of less favorable manufacturing variances compared to the same period last year.
Net income for the first quarter of 2016 was $12.3 million, or $0.42 per share on a fully diluted basis, compared to $17.8 million, or $0.61 per share during the same period last year. The decrease in net income was largely attributed to lower margins mentioned above as well as an increase in research & development expense.
The effective tax rate for the first quarter of 2016 was 39%, compared to the 33% tax rate for the same quarter in 2015. The higher tax rate in 2016 was due to certain foreign losses for which no benefit is expected and increased reserves for foreign tax audits.
"We are pleased with the good sales performance in this first quarter," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "The growth of our Life Science business, at close to 10%, is a very encouraging start for the year."
Life Science The Life Science segment net sales in the first quarter of 2016 were $165.9 million, an increase of 6.4% compared to the same period last year. On a currency-neutral basis, Life Science segment sales increased 9.8% compared to the first quarter in 2015. The sales increase for the first quarter benefitted from sales of our Droplet Digital" PCR and process media products. In January, Bio-Rad and Illumina, Inc. (NASDAQ: ILMN) announced an exclusive partnership to develop the most comprehensive next-generation sequencing (NGS) workflow for single-cell analysis. The end-to-end commercial solution will enable high-throughput sequencing of thousands of individual cells, traditionally a challenging, costly, and time-consuming process. Also during the first quarter of 2016, Bio-Rad acquired a high performance analytical flow cytometer platform from Propel Labs that will enable advanced and novice users to perform basic and multi-parameter cytometry for a wide range of applications and chemistries. Bio-Rad expects to launch the instrument later this year.
Clinical Diagnostics Net sales for the Clinical Diagnostics segment in the first quarter of 2016 were $301.7 million, a decrease of 3.8% compared to the first quarter of 2015. On a currency-neutral basis, Clinical Diagnostics sales increased 0.9% compared to the same period last year. Results from the first quarter reflected modest growth across most product lines, most notably clinical immunology, quality controls, and diabetes products. In February, the Company announced it had received CE IVD marking for its QX200" Droplet Digital" PCR (ddPCR") System, the first digital PCR system with the CE IVD mark for use as an in vitro diagnostic (IVD) in the European Union. With the CE IVD mark, medical practitioners in Europe can use the QX200 system for highly-accurate detection and quantification of nucleic acids, aiding clinical decision-making in the treatment of diseases ranging from cancer to transplant rejection and viral infection.
Management will discuss these results in a conference call at 2 PM Pacific Daylight Time (5 PM Eastern Daylight Time) May 5, 2016. Interested parties may access the call at 855-779-9068 within the U.S. or 631-485-4862 outside the U.S., passcode: 89354960. 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 (NYSE: BIO.B) 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 7,800 people worldwide and had revenues exceeding $2 billion in 2015. 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, the growth of our business 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, foreign currency exchange fluctuations, difficulties in implementing our global enterprise resource planning system, our ability to compete effectively, product quality and liability issues, supply chain issues, our ability to realize anticipated benefits from acquisitions, reductions in government funding or capital spending of our customers, international legal and regulatory risks, 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 Operations" 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, 2015, and its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2016 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.
Bio-Rad Laboratories, Inc.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(UNAUDITED)
Three Months Ended
March 31,
------------------------
2016 2015
----------- -----------
Net sales $ 471,197 $ 472,821
Cost of goods sold 207,168 202,715
----------- -----------
Gross profit 264,029 270,106
Selling, general and administrative expense 189,716 188,555
Research and development expense 48,586 47,202
----------- -----------
Income from operations 25,727 34,349
Interest expense 5,580 5,002
Foreign currency exchange losses, net 1,129 3,806
Other (income) expense, net (1,177) (1,153)
----------- -----------
Income before income taxes 20,195 26,694
Provision for income taxes (7,919) (8,876)
----------- -----------
Net income $ 12,276 $ 17,818
=========== ===========
Basic earnings per share:
Net income per basic share $ 0.42 $ 0.61
=========== ===========
Weighted average common shares - basic 29,364 29,092
=========== ===========
Diluted earnings per share:
Net income per diluted share $ 0.42 $ 0.61
=========== ===========
Weighted average common shares - diluted 29,506 29,289
=========== ===========
Bio-Rad Laboratories, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
March 31, December 31,
2016 2015
------------- -------------
(UNAUDITED)
Current assets:
Cash and cash equivalents $ 403,615 $ 457,549
Short-term investments 349,255 332,928
Accounts receivable, net 381,100 391,485
Inventories, net 533,312 490,224
Other current assets 107,982 105,410
------------- -------------
Total current assets 1,775,264 1,777,596
Property, plant and equipment, net 449,226 437,690
Goodwill, net 509,582 495,948
Purchased intangibles, net 242,264 214,026
Other investments 711,437 719,840
Other assets 65,640 64,618
------------- -------------
Total assets $ 3,753,413 $ 3,709,718
============= =============
Current liabilities:
Accounts payable, accrued payroll and employee
benefits $ 241,249 $ 280,248
Current maturities of long-term debt 296 298
Income and other taxes payable 27,725 29,339
Other current liabilities 131,618 131,466
------------- -------------
Total current liabilities 400,888 441,351
Long-term debt, net of current maturities 433,980 433,883
Other long-term liabilities 374,096 343,981
------------- -------------
Total liabilities 1,208,964 1,219,215
Total stockholders' equity 2,544,449 2,490,503
------------- -------------
Total liabilities and stockholders' equity $ 3,753,413 $ 3,709,718
============= =============
Bio-Rad Laboratories, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(UNAUDITED)
Three Months
Ended March 31,
2016 2015
----------- -----------
Cash flows from operating activities:
Cash received from customers $ 492,407 $ 478,479
Cash paid to suppliers and employees (508,820) (453,986)
Interest (paid) received, net (187) 471
Income tax refunds 10,421 1,503
Other operating activities (1,269) 2,979
----------- -----------
Net cash (used in) provided by operating
activities (7,448) 29,446
Cash flows from investing activities:
Payments for acquisition and long-term
investment (9,634) (895)
Other investing activities (41,224) (27,096)
----------- -----------
Net cash used in investing activities (50,858) (27,991)
Cash flows from financing activities:
Payments on long-term borrowings (77) (66)
Other financing activities 335 (265)
----------- -----------
Net cash provided by (used in) financing
activities 258 (331)
Effect of foreign exchange rate changes on cash 4,114 11,353
----------- -----------
Net (decrease) increase in cash and cash
equivalents (53,934) 12,477
Cash and cash equivalents at beginning of period 457,549 413,251
----------- -----------
Cash and cash equivalents at end of period $ 403,615 $ 425,728
=========== ===========
Reconciliation of net income to net cash
provided by operating activities:
Net income $ 12,276 $ 17,818
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 34,090 32,283
Changes in working capital (63,730) (20,619)
Other 9,916 (36)
----------- -----------
Net cash (used in) provided by operating
activities $ (7,448) $ 29,446
=========== ===========
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 Email Contact
Source: Bio-Rad Laboratories
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