EX-99.1 CHARTER 2 exh991.htm Exhibit 99

Exhibit 99.1

FOR IMMEDIATE RELEASE

Bio-Rad Reports Second Quarter Financial Results

HERCULES, CA – August 4, 2005 – Bio-Rad Laboratories, Inc. (AMEX: BIO and BIOb), a multinational manufacturer and distributor of life science research products and clinical diagnostics, announced financial results today for the second quarter ended June 30, 2005. Second-quarter net sales from continuing operations were $291.3 million, up 11.8 percent compared to the $260.5 million reported for the second quarter of 2004, while sales were up by 8.5 percent on a currency neutral basis for the same period. This increase was the result of strong sales in the areas of diabetes monitoring, blood virus screening, quality controls, protein expression analysis and amplification products (due in part to the acquisition of MJ Research). While overall profit margins were down slightly due to the declining average selling price of BSE tests and real time PCR instrumentation, Bio-Rad continues to retain significant market share of the BSE business worldwide and has now resumed the sale of real time PCR products in Japan, following a ruling by the Japanese patent authority invalidating Applera’s patent. Second quarter income from continuing operations was $18.4 million, or $0.71 per share, down 9.3 percent from the same period last year, due to the company’s continuing investment in systems and infrastructure and increased interest expense associated with the sale of bonds in December 2004.


Net sales for the first half of the year increased by 12.8 percent to $590.5 million compared to the $523.3 million reported in the same period of 2004. Income from continuing operations increased by 11.7 percent to $47.9 million, or $1.85 per share, compared to $42.9 million, or $1.67 per share, for the first six months of 2004. Year-over-year net sales for the Life Science segment increased by 17.7 percent to $277.2 million, compared to the $235.5 million reported June 30, 2004; Clinical Diagnostics net sales also increased to $307.2, up 8.4 percent from the $283.3 million reported for the first six months of 2004.   


Second-Quarter Highlights

-

Net sales for the quarter increased by 11.8 percent to $291.3 million compared to $260.5 million reported in the second quarter of 2004.

-

Life Science segment net sales for the quarter were $133.1 million, up 16.9 percent over the same period last year, which includes a 3.2 percent increase due to currency effects. Sales of the Bio-Plex platform and protein expression analysis reagents used with this system continue to grow and sales of the new ExperionTM automated electrophoresis system are also increasing significantly.

-

The Life Science segment introduced several new products during the second quarter which include the EXQuest proteomics robotics platform used in protein expression research to harvest samples from two-dimensional electrophoresis gels, and two real time amplification platforms, the iQ5 and the MiniOpticon, which is among the first generation of new products to come out of the acquisition of MJ Research. Integration of MJ continues to proceed as planned and Bio-Rad now operates direct selling and support channels in most regions.

-

Another significant event during the quarter was the official USDA confirmation of the first reported indigenous case of BSE in the United States in June. These results corroborate the initial findings of two


Bio-Rad BSE screening tests conducted on the suspect cow last November. The company’s tests have been used to screen more than 400,000 cattle in the USDA’s enhanced surveillance program.

-

Clinical Diagnostics segment net sales for the quarter were $155.2 million, an increase of 7.5 percent compared to the $144.4 million reported in the second quarter of 2004. A little less than half of this gain is the result of currency effects. Strong sales of blood virus screening products in the U.S. transfusion sector and expanding worldwide demand for the company’s quality control products were the primary contributors to increased quarterly net sales. Other gains in the Clinical Diagnostics segment include increased sales of newborn screening products in Northern Europe and strong demand for the company’s diabetes monitoring products in Asia Pacific.


“At the halfway mark of 2005, it appears that the year is shaping up to be another one of progress on a number of fronts. Sales in many regions are meeting or exceeding expectations, new products are finding acceptance around the world and the outlook for the remainder of the year is positive,” said President and Chief Executive Officer Norman Schwartz.


Management will discuss these results in a conference call scheduled for 2:00 p.m. PT (5:00 p.m. ET) today, August 4, 2005. Interested parties can access the call by dialing 866-271-6130 (in the U.S.), or 617-213-8894 (international), access number 76386582. The live web cast can be accessed at ("http://www.bio-rad.com"). A replay of the call will be available at 888-286-8010 (in the U.S.), or 617-801-6888 (international), access number 57744653 for seven days following the call and the web cast can be accessed at "http://www.bio-rad.com" for 30 days.


Bio-Rad Laboratories, Inc. ("http://www.bio-rad.com") is a multinational manufacturer and distributor of life science research products and clinical diagnostics. It is based in Hercules, California, and serves thousands of research and industry customers worldwide through a network of more than 30 wholly owned subsidiary offices.


Various statements made within this press release may constitute “forward-looking statements” for purposes of the Securities and Exchange Commission’s “safe harbor” provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. The forward-looking statements contained herein involve risks and uncertainties that could cause results to differ materially from the Company’s expectations.


For more information, contact:
Christine Tsingos, Chief Financial Officer, or

Ron Hutton, Treasurer

Bio-Rad Laboratories, Inc.

Phone:  (510) 724-7000
E-mail: investor_relations@bio-rad.com


# # #




BIO-RAD LABORATORIES, INC.

Second Quarter 2005

Condensed Consolidated Statements of Income

(In thousands, except per share data)

(Unaudited)

    
 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2005

 

2004

 

2005

 

2004

        

Net sales

$   291,302 

 

$  260,546 

 

$   590,473

 

$  523,295 

Cost of good sold

130,659 

 

110,885 

 

263,424

 

224,370 

Gross profit

160,643 

 

149,661 

 

327,049

 

298,925 

        

Selling, general and administrative expense

104,222 

 

90,199 

 

203,720

 

177,256 

Product research and development expense

28,499 

 

25,545 

 

55,322

 

49,878 

Purchased in-process research and development expense

-- 

 

-- 

 

-- 

 

900 

Interest expense

8,044 

 

4,919 

 

16,161

 

9,969 

Foreign exchange (gains) losses, net

(922)

 

545 

 

(1,199)

 

747 

Other (income) expense, net

(4,689)

 

(866)

 

(10,527)

 

(650)

Income from continuing operations before taxes

25,489 

 

29,319 

 

63,572

 

60,825 

Provision for income taxes

7,101 

 

9,048 

 

15,664

 

17,934 

Income from continuing operations

18,388 

 

20,271 

 

47,908

 

42,891 

Discontinued operations

       

Discontinued operations (net of tax)

-- 

 

(845)

 

-- 

 

(1,487)

Gain on divestiture (net of tax)

-- 

 

3,437 

 

3,974

 

 3,437 

Total discontinued operations

-- 

 

2,592 

 

3,974

 

1,950 

Net income

$     18,388 

 

$    22,863 

 

$     51,882

 

$   44,841 

        

Basic earnings per share:

       

Continuing operations

$   0.71 

 

$   0.79 

 

$   1.85 

 

$   1.67 

Discontinued operations

-- 

 

0.10 

 

0.15 

 

0.08 

Net income

$   0.71 

 

$   0.89 

 

$   2.00 

 

$   1.75 

        

Weighted average common shares

26,020 

 

25,699 

 

25,965 

 

25,662 

        

Diluted earnings per share:

       

Continuing operations

$   0.69 

 

$   0.76 

 

$   1.80 

 

$   1.62 

Discontinued operations

-- 

 

0.10 

 

0.15 

 

0.07 

Net income

$   0.69 

 

$   0.86 

 

$   1.95 

 

$   1.69 

        

Weighted average common shares

26,610

 

26,504 

 

26,583

 

26,474 

        
        
 




BIO-RAD LABORATORIES, INC

Condensed Consolidated Balance Sheets

(In thousands)

 (Unaudited)

     
  

June 30,

2005

 

December 31, 2004

     

Current Assets:

    

Cash and cash equivalents

 

$   252,132 

 

$   195,734 

Restricted cash

 

35,565 

 

-- 

Short-term investments

 

91,252 

 

165,899 

Accounts receivable, net

 

243,387 

 

261,243 

Inventories, net

 

211,526 

 

205,512 

Prepaid expenses, taxes and other current assets

 

83,496 

 

80,072 

Total current assets

 

917,358 

 

908,460 

     

Net property, plant and equipment

 

189,802 

 

202,324 

Goodwill

 

113,276 

 

113,276 

Purchased intangibles, net

 

53,260 

 

58,638 

Other assets

 

118,879 

 

109,304 

Total assets

 

$ 1,392,575 

 

$ 1,392,002 

     

Current liabilities:

    

Notes payable and current maturities of long-term debt

 

$      11,479

 

$        9,457 

Accounts payable

 

69,254

 

71,194 

Accrued payroll and employee benefits

 

67,926

 

79,061 

Sales, income and other taxes payable

 

11,549

 

15,835 

Other current liabilities

 

130,640

 

139,828 

Total current liabilities

 

290,848

 

315,375 

     

Long-term debt, net of current maturities

 

425,864

 

425,979 

Deferred tax liabilities

 

27,011

 

24,772 

Other long-term liabilities

 

20,208

 

28,988 

Stockholders’ equity

 

628,644

 

596,888 

Total liabilities and stockholders’ equity

 

$ 1,392,575

 

$ 1,392,002 

     

 Certain items have been reclassified to conform to the current year presentation.





BIO-RAD LABORATORIES, INC.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

    
 

Six Months Ended

 

June 30,

 

2005

 

2004

Cash flows from operating activities:

   

Cash received from customers

$ 583,459 

 

$ 517,385 

Cash paid to suppliers and employees

(527,665)

 

(440,664)

Interest paid

(15,459)

 

(9,866)

Income tax payments

(20,161)

 

(20,860)

Miscellaneous receipts

8,971 

 

3,568 

Discontinued operations

(1,327)

 

(2,019)

Net cash provided by operating activities

27,818 

 

47,544 

    

Cash flows from investing activities:

   

Capital expenditures, net

(17,591)

 

(29,057)

Other investing activities

40,585 

 

(55,181)

Net cash provided by (used in) investing activities

22,994 

 

(84,238)

    

Cash flows from financing activities:

   

Payments on long-term debt

(231)

 

(212)

Other financing activities

5,323 

 

3,465 

Net cash provided by financing activities

5,092 

 

3,253 

    

Effect of exchange rate changes on cash

494 

 

1,325 

    

Net increase (decrease) in cash and cash equivalents

56,398 

 

(32,116)

Cash and cash equivalents at beginning of period

195,734 

 

65,395 

Cash and cash equivalents at end of period

$ 252,132 

 

$ 33,279 

    

Reconciliation of income from continuing operations to net cash provided by

  

operating activities:

   

Income from continuing operations

$ 47,908 

 

$  42,891 

Adjustments to reconcile net income to net cash provided by

   

operating activities (net of effects of acquisitions):

   

Depreciation and amortization

30,091 

 

22,881 

Changes in working capital

(45,925)

 

(19,540)

Other

(8,230)

 

2,799 

Discontinued operations

3,974 

 

(1,487)

Net cash provided by operating activities

$  27,818 

 

$  47,544 

    

Certain items have been reclassified to conform to the current year presentation.