Bio-Rad Reports Second-Quarter 2016 Financial Results
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HERCULES, CA -- (Marketwired) -- 08/03/16 -- Bio-Rad Laboratories, Inc. (NYSE: BIO) and (NYSE: BIO.B), a global provider of life science research and clinical diagnostic products, today announced financial results for the second quarter ended June 30, 2016.
Second-quarter reported revenues were $516.8 million, an increase of 2.1 percent compared to $506.1 million reported for the second quarter of 2015. On a currency-neutral basis, quarterly revenues increased 2.8 percent compared to the same period last year. Second-quarter gross margin was 54.2 percent compared to 55.2 percent reported during the same quarter in 2015. The decrease in gross margin during the second quarter of 2016 was primarily the result of sales mix and higher manufacturing costs compared to the same period last year.
Net income for the second quarter of 2016 was $18.0 million, or $0.61 per share on a fully diluted basis, compared to $28.4 million, or $0.97 per share, respectively, during the same period last year.
The lower net income for the second quarter of 2016 versus the second quarter of 2015 was primarily due to several discrete items that increased expenses approximately $18 million and include the planned restructuring of our European operations, the termination of a research and development project, and costs associated with various legal matters. The effective tax rate for the second quarter of 2016 was 33%, compared to the 28% tax rate for the same quarter in 2015. The lower tax rate in 2015 was primarily due to a decrease in tax reserves as a result of the expiration of statutes of limitations.
On a reported basis, revenues for the first half of 2016 increased 0.9 percent to $988.0 million compared to $978.9 million for the same period in 2015. On a currency-neutral basis, revenues grew 3.3 percent.
Year-to-date net income for 2016 was $30.3 million, or $1.03 per share on a fully diluted basis, compared to $46.2 million, or $1.58 per share, respectively, during the same period in 2015.
"We are encouraged by sales performance in the first half of the year reflecting strength in many of our markets," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "Although investments in acquired technologies and systems have tempered profitability for the first half of the year, these investments in our operation are necessary to support our growth in the future."
Life Science Life Science segment net sales for the second quarter of 2016 were $180.0 million, an increase of 5.5 percent, when compared to the same period last year. On a currency-neutral basis, sales increased 6.0 percent compared to the same period last year. Results from the second quarter benefitted from increased sales of the Company's Droplet Digital" PCR and process chromatography products. Sales increased primarily in North America, China, and Asia. In April, Bio-Rad announced the launch of five Droplet Digital" PCR (ddPCR) Multiplex Mutation Screening Kits for detecting multiple cancer mutations. The combination of ddPCR and multiplexing technologies increases the throughput of genetic analysis to give clinical researchers more information per patient sample.
Clinical Diagnostics Reported net sales for the Clinical Diagnostics segment in the second quarter of 2016 were $333.7 million, an increase of 0.5 percent compared to the same quarter last year. On a currency-neutral basis, sales increased 1.3 percent compared to the same period in 2015. The Clinical Diagnostics segment sales performance reflected modest growth across most product lines, most notably clinical immunology, blood typing, and quality control products. Sales growth increased across most regions, driven by North America, Eastern Europe, and China. During the quarter Bio-Rad announced the launch of Amplichek" II quality control, the first in a series of infectious disease controls that the Company plans to introduce for the molecular diagnostic testing market.
Management will discuss these results in a conference call at 2 PM Pacific Daylight Time (5 PM Eastern Time) August 3, 2016. Interested parties may access the call at 855-779-9068 within the U.S. or 631-485-4862 outside the U.S., Conference ID: 46148478. 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 the growth of our business, our release of new products and future financial performance. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, "plan," "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, recent and planned changes to our global organizational structure and executive management team, our ability to integrate acquired companies, products or technologies into our company successfully, our ability to compete effectively, reductions in government funding or capital spending of our customers, international legal and regulatory risks, product quality and liability issues, supply chain issues, 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 June 30, 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 Six Months Ended
June 30, June 30,
-------------------- --------------------
2016 2015 2016 2015
--------- --------- --------- ---------
Net sales $ 516,777 $ 506,102 $ 987,974 $ 978,923
Cost of goods sold 236,545 226,505 443,713 429,220
--------- --------- --------- ---------
Gross profit 280,232 279,597 544,261 549,703
Selling, general and
administrative expense 205,536 192,845 395,252 381,400
Research and development
expense 52,171 46,547 100,757 93,749
--------- --------- --------- ---------
Income from operations 22,525 40,205 48,252 74,554
Interest expense 5,632 4,834 11,212 9,836
Foreign currency exchange
losses, net 1,237 2,938 2,366 6,744
Other (income) expense, net (11,208) (7,107) (12,385) (8,260)
--------- --------- --------- ---------
Income before income taxes 26,864 39,540 47,059 66,234
Provision for income taxes (8,850) (11,117) (16,769) (19,993)
--------- --------- --------- ---------
Net income $ 18,014 $ 28,423 $ 30,290 $ 46,241
========= ========= ========= =========
Basic earnings per share:
Net income per basic share $ 0.61 $ 0.98 $ 1.03 $ 1.59
========= ========= ========= =========
Weighted average common shares
- basic 29,398 29,136 29,381 29,114
========= ========= ========= =========
Diluted earnings per share:
Net income per diluted share $ 0.61 $ 0.97 $ 1.03 $ 1.58
========= ========= ========= =========
Weighted average common shares
- diluted 29,589 29,381 29,549 29,338
========= ========= ========= =========
Bio-Rad Laboratories, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
June 30, December 31,
2016 2015
------------- -------------
(UNAUDITED)
Current assets:
Cash and cash equivalents $ 418,651 $ 457,549
Short-term investments 377,154 332,928
Accounts receivable, net 366,281 391,485
Inventories, net 541,514 490,224
Other current assets 102,088 105,410
------------- -------------
Total current assets 1,805,688 1,777,596
Property, plant and equipment, net 457,685 437,690
Goodwill, net 505,311 495,948
Purchased intangibles, net 230,709 214,026
Other investments 810,463 719,840
Other assets 64,779 64,618
------------- -------------
Total assets $ 3,874,635 $ 3,709,718
============= =============
Current liabilities:
Accounts payable, accrued payroll and employee
benefits $ 256,112 $ 280,248
Current maturities of long-term debt 294 298
Income and other taxes payable 21,856 29,339
Other current liabilities 132,143 131,466
------------- -------------
Total current liabilities 410,405 441,351
Long-term debt, net of current maturities 434,057 433,883
Other long-term liabilities 415,612 343,981
------------- -------------
Total liabilities 1,260,074 1,219,215
------------- -------------
Total stockholders' equity 2,614,561 2,490,503
------------- -------------
Total liabilities and stockholders' equity $ 3,874,635 $ 3,709,718
============= =============
Bio-Rad Laboratories, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(UNAUDITED)
Six Months Ended
June 30,
2016 2015
----------- -----------
Cash flows from operating activities:
Cash received from customers $ 1,020,149 $ 971,616
Cash paid to suppliers and employees (935,587) (898,757)
Interest paid, net (10,911) (9,071)
Income tax payments, net (11,085) (6,269)
Other operating activities 7,141 10,460
----------- -----------
Net cash provided by operating activities 69,707 67,979
Cash flows from investing activities:
Payments for acquisition and long-term
investment (11,477) (2,589)
Other investing activities (98,851) (53,267)
----------- -----------
Net cash used in investing activities (110,328) (55,856)
Cash flows from financing activities:
Payments on long-term borrowings (156) (131)
Other financing activities 3,450 2,861
----------- -----------
Net cash provided by financing activities 3,294 2,730
Effect of foreign exchange rate changes on cash (1,571) 22,029
----------- -----------
Net (decrease) increase in cash and cash
equivalents (38,898) 36,882
Cash and cash equivalents at beginning of period 457,549 413,251
----------- -----------
Cash and cash equivalents at end of period $ 418,651 $ 450,133
=========== ===========
Reconciliation of net income to net cash provided
by operating activities:
Net income $ 30,290 $ 46,241
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 71,668 64,409
Changes in working capital (54,026) (44,196)
Other 21,775 1,525
----------- -----------
Net cash provided by operating activities $ 69,707 $ 67,979
=========== ===========
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 Email Contact
Source: Bio-Rad Laboratories
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