-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GEo0AHVcuaF0i3TQAaS0KYvonIgy371FgpjYtOmMBpilJexFfHU4nI8rF11W4Wb9 5q5mPGSVz+VyKspywD9o6g== 0001104659-07-031816.txt : 20070426 0001104659-07-031816.hdr.sgml : 20070426 20070426142456 ACCESSION NUMBER: 0001104659-07-031816 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20070426 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070426 DATE AS OF CHANGE: 20070426 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DADE BEHRING HOLDINGS INC CENTRAL INDEX KEY: 0001183920 STANDARD INDUSTRIAL CLASSIFICATION: INSTRUMENTS FOR MEAS & TESTING OF ELECTRICITY & ELEC SIGNALS [3825] IRS NUMBER: 363989270 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-50010 FILM NUMBER: 07790731 BUSINESS ADDRESS: STREET 1: 1717 DEERFIELD RD CITY: DEERFIELD STATE: IL ZIP: 60015 BUSINESS PHONE: 8472675300 MAIL ADDRESS: STREET 1: 1717 DEERFIELD ROAD CITY: DEERFIELD STATE: IL ZIP: 60015 8-K 1 a07-12427_18k.htm 8-K

 

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 (Date of earliest event reported)   April 26, 2007

DADE BEHRING HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware

 

000-50010

 

36-3989270

(State or other jurisdiction

 

(Commission

 

(IRS Employer

of incorporation)

 

File Number)

 

Identification No.)

 

1717 Deerfield Road, Deerfield, Illinois

 

60015

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code    (847) 267-5300

(Former name or former address, if changed since last report.)

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.

Attached as an exhibit hereto is a press release and financial tables dated April 26, 2007 issued by Dade Behring Holdings, Inc.  The information contained in this report, including the exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.

Item  9.01.        Financial Statements and Exhibits.

(d)                      Exhibits.

99.1  Dade Behring Holdings, Inc. Press Release dated April 26, 2007.

2




 

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.

 

 

DADE BEHRING HOLDINGS, INC.

 

 

 

 

April 26, 2007

By:

/s/ JOHN M. DUFFEY

 

 

John M. Duffey

 

 

Chief Financial Officer

 

 

3



EX-99.1 2 a07-12427_1ex99d1.htm EX-99.1

Exhibit 99.1

DADE BEHRING INC.

 

Tel: +1 (847) 267-5300

1717 Deerfield Road

 

Fax: +1 (847) 267-1699

P.O. Box 778

 

 

Deerfield, IL 60015-0778

 

 

 

Contact:                 Nancy Krejsa  (847) 267-5483

DADE BEHRING REPORTS RECORD REVENUE IN FIRST QUARTER

Earnings per share increases 26 percent

Deerfield, IL (April 26, 2007) ¾ Dade Behring Holdings, Inc. (NASDAQ:DADE) today announced that its first quarter 2007 earnings per share increased 26 percent to $0.48 per share and revenue grew 10 percent to $459 million. Net income of $40 million increased by $6 million over the first quarter of 2006. On a constant currency basis1, global revenue increased 7 percent over the same period in 2006.

“Our singular focus on serving the needs of clinical laboratory customers and the successful execution of our business strategy has enabled us to deliver strong and consistent financial performance for our shareholders,” said Jim Reid-Anderson, Chairman, President and CEO, Dade Behring. “One of our priorities is to continue developing new and innovative solutions to meet the needs of our customers, now and in the future.”

Cash flow from operations, after investing activities and excess tax benefits from stock-based compensation, was $49 million for the three months ended March 31, 2007. Cash earnings per share2 for the first quarter 2007 increased 37 percent to $0.86, as compared to $0.63 for the same period in 2006.




 

The company’s worldwide installed base of instruments was 41,300 as of March 31, 2007, a 1.8 percent increase since December 31, 2006 and a 6.6 percent increase since March 31, 2006.

“The steady growth in our installed base of instruments and the related diagnostic tests that run on those systems continues to drive our strong revenue and earnings performance,” said John Duffey, Chief Financial Officer, Dade Behring. “We have invested a large portion of the resulting cash flow to further enhance our product portfolio and to aggressively repurchase the company’s stock.”

During the quarter, the company repurchased $57 million of its common stock, raising the level of purchases to $461 million over the last seven quarters, or 13 percent of the outstanding shares. As of March 31, 2007, 3.0 million shares remain authorized for repurchase under the current program.

Operational Highlights

·                  U.S. revenue grew 7.9 percent over the first quarter of 2006 and revenue outside of the United States grew 6.4 percent on a constant currency basis.

·                  Global core-product reagent, service and operating lease revenue grew 7.1 percent on a constant currency basis.

·                  Revenue growth in the Dimension® family of products, with an immaterial contribution from the Dimension Vista® product line, along with strong sales of the MicroScan® microbiology and hemostasis products contributed to the company’s strong first-quarter revenue performance.

·                  Operating income, as a percent of sales, grew to 15.7 percent for the three months ended March 31, 2007, as compared to 14.0 percent in the first quarter, 2006.

2




First Quarter 2007 Announcements

During the first quarter, the company announced the signing of multi-year supply agreements with Premier Inc., whose 1,700 hospital members will continue to have access to Dade Behring’s entire line of chemistry and hemostasis diagnostic systems, including the recently introduced Dimension Vista® 1500 Intelligent Lab System.

The company also announced the signing of a license agreement with Radboud University Nijmegen Medical Centre, relating to the development of a new coagulation test called Nijmegen Hemostasis Assay (NHA). Researchers at the medical center anticipate an NHA test could become accepted for testing a broad range of coagulation disorders.

Conference Call

The company will host a conference call today at 8:00 a.m. (CDT) to discuss its first-quarter 2007 financial results. To participate, dial 800-374-0591 in the United States and Canada, or 706-634-1377 outside the United States. The conference call will also be webcast live from the investor relations section of Dade Behring’s Web site at www.dadebehring.com.

About Dade Behring

With 2006 revenue of more than $1.7 billion, Dade Behring is the world’s largest company solely dedicated to clinical diagnostics. It offers a wide range of products, systems and services designed to meet the day-to-day needs of clinical laboratories, delivering innovative solutions to customers and enhancing the quality of life for patients. Additional company information is available on the Internet at www.dadebehring.com.

3




This press release may contain “Forward-Looking Statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward statements include information regarding the intent, belief or current expectation of the company and members of its senior management team, including, without limitation, expectations regarding prospective performance and opportunities and the outlook for the company’s businesses, performance, opportunities and regulatory approval. In addition, the company is in the process of a major new product launch, which involves risks and uncertainties regarding product performance, costs of introduction and support, and customer acceptance. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by the company.

1. “Constant currency” is not a U.S. GAAP defined measure. The Company believes this measure provides a meaningful analysis of the underlying activity, since it eliminates the effect of changes in foreign currency exchange rates. Changes on a constant currency basis have been calculated by comparing reported current year amounts to prior year amounts in local currency translated at the foreign currency exchange rates for the current year. “Constant currency,” as defined or presented by the Company, may not be comparable to similarly titled measures reported by other companies.

2. “Cash earnings per share” is not a U.S. GAAP defined measure. The Company believes this measure provides meaningful profitability metrics, given current accumulated tax loss carryforwards and the net depreciation/amortization impacts relating to the revaluation of assets during the Company’s 2002 restructuring.

###

4




Dade Behring Holdings, Inc.
Revenue By Product Line
and Region (unaudited)
(Dollars in millions)

 

 

Quarter Ended March 31,

 

% Change

 

Product Line

 

 

 

2007

 

2006

 

Reported

 

On a Constant
Currency Basis*

 

Core Products

 

 

 

 

 

 

 

 

 

Core Chemistry

 

$

300.3

 

$

275.0

 

9.2

%

6.2

%

Hemostasis

 

87.7

 

76.9

 

14.0

%

9.3

%

Microbiology

 

41.5

 

36.1

 

15.0

%

14.1

%

Infectious Disease Diagnostics

 

22.4

 

21.3

 

5.2

%

-1.2

%

Total Core Products

 

451.9

 

409.3

 

10.4

%

7.1

%

Non-Core Products

 

7.3

 

6.4

 

14.1

%

7.5

%

Total

 

$

459.2

 

$

415.7

 

10.5

%

7.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Region

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

211.0

 

$

195.6

 

7.9

%

7.9

%

Non-U.S.

 

248.2

 

220.1

 

12.8

%

6.4

%

Total

 

$

459.2

 

$

415.7

 

10.5

%

7.1

%


*                    “Constant currency” is not a U.S. GAAP defined measure.  The company believes this measure provides a meaningful analysis of the underlying activity, since it eliminates the effect of changes in foreign currency exchange rates. The change in sales on a constant currency basis has been calculated by comparing reported current year sales to prior year sales in local currency translated at the foreign currency exchange rates for the current year.  “Constant currency,” as defined or presented by the company, may not be comparable to similarly titled measures reported by other companies.

5




 

Dade Behring Holdings, Inc.
Consolidated Balance Sheets (unaudited)

 

 

March 31,

 

December 31,

 

(Dollars in millions, except share-related data)

 

 

 

2007

 

2006

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

37.7

 

$

24.4

 

Accounts receivable, net

 

361.2

 

359.5

 

Inventories

 

217.8

 

189.7

 

Prepaid expenses and other current assets

 

20.4

 

23.2

 

Deferred income taxes

 

101.8

 

115.9

 

Total current assets

 

738.9

 

712.7

 

 

 

 

 

 

 

Property, plant and equipment, net

 

487.9

 

488.5

 

Deferred income taxes

 

153.5

 

138.6

 

Identifiable intangible assets, net

 

332.8

 

339.0

 

Goodwill

 

169.3

 

169.6

 

Other assets

 

30.6

 

27.0

 

Total assets

 

$

1,913.0

 

$

1,875.4

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Short-term debt

 

$

16.3

 

$

14.8

 

Accounts payable

 

81.7

 

78.9

 

Accrued liabilities

 

267.8

 

273.6

 

Total current liabilities

 

365.8

 

367.3

 

 

 

 

 

 

 

Long-term debt

 

510.3

 

495.0

 

Deferred income taxes

 

33.6

 

33.5

 

Other liabilities

 

187.6

 

170.4

 

Total liabilities

 

1,097.3

 

1,066.2

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Common stock: $.01 par value; 150,000,000 shares authorized at March 31, 2007 and December 31, 2006, respectively; 82,102,452 and 82,860,364 shares issued and outstanding at March 31, 2007 and December 31, 2006, respectively

 

0.8

 

0.8

 

Additional paid-in capital

 

441.2

 

475.0

 

Retained earnings

 

335.2

 

299.1

 

Accumulated other comprehensive income

 

38.5

 

34.3

 

Total shareholders’ equity

 

815.7

 

809.2

 

Total liabilities and shareholders’ equity

 

$

1,913.0

 

$

1,875.4

 

 

 

 

 

 

 

 

6




 

Dade Behring Holdings, Inc.
Consolidated Statements of Operations (unaudited)

 

 

Quarter Ended March 31,

 

(Dollars in millions, except per share data)

 

2007

 

2006

 

 

 

 

 

 

 

Net sales

 

$

459.2

 

$

415.7

 

Cost of goods sold

 

207.8

 

183.1

 

Gross profit

 

251.4

 

232.6

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

Marketing and administrative expenses

 

141.4

 

137.2

 

Research and development expenses

 

38.3

 

37.4

 

Restructuring expense (income)

 

(0.5

)

 

Income from operations

 

72.2

 

58.0

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

Interest expense

 

(9.3

)

(6.4

)

Interest income

 

1.2

 

1.1

 

Foreign exchange gain (loss)

 

(1.1

)

2.0

 

Other

 

(2.0

)

(0.3

)

Income before income tax expense

 

61.0

 

54.4

 

Income tax expense

 

20.8

 

20.2

 

Net income

 

$

40.2

 

$

34.2

 

 

 

 

 

 

 

Basic shares outstanding

 

82.5 million

 

87.8 million

 

Diluted shares outstanding

 

83.7 million

 

90.5 million

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.49

 

$

0.39

 

Diluted earnings per common share

 

$

0.48

 

$

0.38

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Cash Flow to Cash Earnings reconciliation:

 

 

 

 

 

Operating Cash Flow

 

$

82.4

 

$

75.0

 

Net changes in balance sheet items not in earnings; loss on disposal of fixed assets

 

9.8

 

1.2

 

Capital expenditures and investment in licensing agreements

 

(35.8

)

(36.2

)

Restructuring expense (income)

 

(0.5

)

 

Income tax expense

 

20.8

 

20.2

 

Cash paid during the period for taxes

 

(4.4

)

(2.8

)

Cash Earnings (*)

 

$

72.3

 

$

57.4

 

 

 

 

 

 

 

Net income to Cash Earnings reconciliation:

 

 

 

 

 

Net income

 

$

40.2

 

$

34.2

 

Depreciation and amortization (including amortization of debt issuance costs)

 

45.8

 

37.0

 

Capital expenditures and investment in licensing agreements

 

(35.8

)

(36.2

)

Stock-based compensation expense

 

6.2

 

5.0

 

Restructuring expense (income)

 

(0.5

)

 

Income tax expense

 

20.8

 

20.2

 

Cash paid during the period for taxes

 

(4.4

)

(2.8

)

Cash Earnings (*)

 

$

72.3

 

$

57.4

 


(*)            “Cash earnings” is not a U.S. GAAP defined measure. The Company believes this measure provides meaningful profitability metrics, given current accumualted tax loss carryforwards and the net depreciation/amortization impacts relating to the revaluation of assets during the Company’s 2002 restructuring.

7




Dade Behring Holdings, Inc.
Consolidated Statements of Cash Flows (unaudited)

 

 

 

Quarter Ended March 31,

 

(Dollars in millions)

 

2007

 

2006

 

 

 

 

 

 

 

Operating Activities:

 

 

 

 

 

Net income

 

$

40.2

 

$

34.2

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization expense

 

45.8

 

37.0

 

Net loss on disposal of fixed assets

 

0.3

 

0.4

 

Stock-based compensation expense

 

6.2

 

5.0

 

Restructuring reserves

 

(0.5

)

 

Deferred income taxes

 

13.7

 

8.3

 

Changes in balance sheet items

 

(23.3

)

(9.9

)

Net cash flow provided by operating activities

 

82.4

 

75.0

 

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

Capital expenditures

 

(34.7

)

(36.0

)

Investment in licensing agreements

 

(1.1

)

(0.2

)

Net cash flow utilized for investing activities

 

(35.8

)

(36.2

)

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

Net borrowings related to short-term debt

 

1.5

 

1.5

 

Borrowings under revolving credit facility

 

52.2

 

163.2

 

Repayments of borrowings under revolving credit facility

 

(36.9

)

(164.2

)

Proceeds from exercise of stock options

 

7.6

 

5.8

 

Excess tax benefits from stock-based compensation

 

2.7

 

6.9

 

Repurchases of common stock

 

(56.5

)

(64.5

)

Dividends paid

 

(4.1

)

(4.4

)

Net cash flow utilized for financing activities

 

(33.5

)

(55.7

)

 

 

 

 

 

 

Effect of foreign exchange rates on cash

 

0.2

 

0.4

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

13.3

 

(16.5

)

 

 

 

 

 

 

Cash and Cash Equivalents:

 

 

 

 

 

Beginning of Period

 

24.4

 

34.6

 

 

 

 

 

 

 

End of Period

 

$

37.7

 

$

18.1

 

 

 

 

 

 

 

 

8



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