-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, MbQYYQIePATnhh9EfpuGPGEOYXdlH4BYKjmVwzzlZg6GM/XSu24/20dYt9miB0Q6 NjKObkKUoolADI+N1budFQ== 0000012208-95-000004.txt : 19950512 0000012208-95-000004.hdr.sgml : 19950512 ACCESSION NUMBER: 0000012208-95-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950511 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: BIO RAD LABORATORIES INC CENTRAL INDEX KEY: 0000012208 STANDARD INDUSTRIAL CLASSIFICATION: LABORATORY ANALYTICAL INSTRUMENTS [3826] IRS NUMBER: 941381833 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-07928 FILM NUMBER: 95536418 BUSINESS ADDRESS: STREET 1: 1000 ALFRED NOBEL DR CITY: HERCULES STATE: CA ZIP: 94547 BUSINESS PHONE: 5107247000 10-Q 1 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1995. OR __ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________. Commission file number 1-7928 BIO-RAD LABORATORIES, INC. (Exact name of registrant as specified in its charter) A Delaware Corporation 94-1381833 (State or other jurisdiction (I.R.S. Employer of incorporation) Identification No.) 1000 Alfred Nobel Drive, Hercules, California 94547 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (510) 724-7000 Indicate by check whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 month (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ___ Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date--
Shares Outstanding Title of each Class at April 30, 1995 Class A Common Stock, Par Value $1.00 per share 6,350,132 Class B Common Stock, Par Value $1.00 per share 1,780,190
PART I - FINANCIAL INFORMATION Item 1. Financial Statements. BIO-RAD LABORATORIES, INC. Condensed Consolidated Statements of Income (In thousands, except per share data)
Three Months Ended March 31, 1995 1994 NET SALES . . . . . . . . . . . . . . . . . . $ 97,858 $ 89,657 Cost of goods sold . . . . . . . . . . . . . 41,817 39,409 GROSS PROFIT . . . . . . . . . . . . . . . . 56,041 50,248 Selling, general and administrative expense . 34,956 31,715 Product research and development expense . . 8,376 7,349 INCOME FROM OPERATIONS . . . . . . . . . . . 12,709 11,184 Interest expense . . . . . . . . . . . . . . (1,282) (1,704) Investment income, net . . . . . . . . . . . 208 322 Other, net . . . . . . . . . . . . . . . . . (897) (1,961) INCOME BEFORE TAXES . . . . . . . . . . . . . 10,738 7,841 Provision for income taxes . . . . . . . . . 2,685 3,136 NET INCOME . . . . . . . . . . . . . . . . . $ 8,053 $ 4,705 ======== ======== Earnings per share . . . . . . . . . . . . . $0.99 $0.58 ======== ======== Weighted average common shares . . . . . . . 8,113 8,045 ======== ========
The accompanying notes are an integral part of these unaudited statements. 1 BIO-RAD LABORATORIES, INC. Condensed Consolidated Balance Sheets (In thousands, except share data)
March 31, December 31, 1995 1994 ASSETS: Cash and cash equivalents . . . . . . . . . . . . . . $ 5,917 $ 3,751 Accounts receivable . . . . . . . . . . . . . . . . . 92,452 81,714 Inventories . . . . . . . . . . . . . . . . . . . . . 80,447 73,339 Prepaid expenses, taxes and other current assets. . . 20,187 19,526 Total current assets . . . . . . . . . . . . . . . 199,003 178,330 Net property, plant and equipment . . . . . . . . . . 75,079 75,625 Marketable securities . . . . . . . . . . . . . . . . 4,871 4,743 Other assets . . . . . . . . . . . . . . . . . . . . 5,152 4,952 Total assets . . . . . . . . . . . . . . . . . . $ 284,105 $ 263,650 LIABILITIES AND STOCKHOLDERS' EQUITY: Notes payable and current maturities of long-term debt $ 22,619 $ 21,593 Accounts payable . . . . . . . . . . . . . . . . . . 24,065 21,116 Accrued payroll and employee benefits . . . . . . . . 21,926 21,191 Sales, income and other taxes payable . . . . . . . . 9,196 6,377 Other current liabilities . . . . . . . . . . . . . . 24,037 19,601 Total current liabilities . . . . . . . . . . . . 101,843 89,878 Long-term debt, net of current maturities . . . . . . 25,392 26,287 Deferred tax liabilities . . . . . . . . . . . . . . 16,925 17,667 Total liabilities . . . . . . . . . . . . . . . . 144,160 133,832 STOCKHOLDERS' EQUITY: Preferred stock, $1.00 par value, 2,300,000 shares authorized; none outstanding . . . . . . . . . . . -- -- Class A common stock, $1.00 par value, 15,000,000 shares authorized; outstanding - 6,334,018 at March 31, 1995 and 6,311,128 at December 31, 1994 . . . . . . . 6,334 6,311 Class B common stock, $1.00 par value, 6,000,000 shares authorized; outstanding - 1,787,907 at March 31, 1995 and 1,794,999 at December 31, 1994. . . . . . . . 1,788 1,795 Additional paid-in capital . . . . . . . . . . . . . . 19,193 18,927 Retained earnings . . . . . . . . . . . . . . . . . . 107,754 99,701 Currency translation . . . . . . . . . . . . . . . . 4,396 2,566 Net unrealized holding gain on available-for-sale securities 480 518 Total stockholders' equity . . . . . . . . . . . . 139,945 129,818 Total liabilities and stockholders' equity . . $ 284,105 $ 263,650 ========= =========
The accompanying notes are an integral part of these unaudited statements. 2 BIO-RAD LABORATORIES, INC. Condensed Consolidated Statements of Cash Flows (In thousands)
Three Months Ended March 31, 1995 1994 Cash flows from operating activities: Cash received from customers . . . . . . . . . . . . $ 92,121 $ 87,023 Cash paid to suppliers and employees . . . . . . . . (81,696) (70,857) Interest paid. . . . . . . . . . . . . . . . . . . . (1,232) (2,056) Income tax receipts (payments) . . . . . . . . . . . (591) 1,052 Miscellaneous payments . . . . . . . . . . . . . . . (59) (156) Net cash provided by operating activities. . . . . . 8,543 15,006 Cash flows from investing activities: Capital expenditures, net. . . . . . . . . . . . . . (2,676) (1,716) Marketable securities investment activity, net . . . (1) 511 Foreign currency hedges, net . . . . . . . . . . . . (464) (769) Net cash used in investing activities. . . . . . . . (3,141) (1,974) Cash flows from financing activities: Net borrowings under line-of-credit arrangements. . (213) (6,105) Additions to long-term debt . . . . . . . . . . . . 17,967 13,800 Payments on long-term debt. . . . . . . . . . . . . (19,084) (17,068) Proceeds from issuance of common stock. . . . . . . 282 186 Net cash used in financing activities . . . . . . . (1,048) (9,187) Effect of exchange rate changes on cash . . . . . . . . . (2,188) (1,295) Net increase in cash and cash equivalents . . . . . . . . 2,166 2,550 Cash and cash equivalents at beginning of period. . . . . 3,751 3,112 Cash and cash equivalents at end of period. . . . . . . . $ 5,917 $ 5,662 ======== ======== Reconciliation of net income to net cash provided by operating activities: Net income . . . . . . . . . . . . . . . . . . . . . . $ 8,053 $ 4,705 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization. . . . . . . . . . . 4,181 4,320 Foreign currency hedges, net . . . . . . . . . . . 1,921 1,524 Gains on dispositions of marketable securities . . (143) (273) Increase in accounts receivable. . . . . . . . . . (7,861) (3,380) (Increase) decrease in inventories . . . . . . . . (4,465) 2,690 Increase in other current assets . . . . . . . . . (373) (858) Increase in accounts payable and other current liabilities. . . . . . . . . . . . . . . 5,385 2,032 Increase in income taxes payable . . . . . . . . . 2,088 4,188 Other. . . . . . . . . . . . . . . . . . . . . . . (243) 58 Net cash provided by operating activities . . . . . . . . $ 8,543 $ 15,006 ======== ========
The accompanying notes are an integral part of these unaudited statements. 3 BIO-RAD LABORATORIES, INC. Notes to Condensed Consolidated Financial Statements 1. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of Bio-Rad Laboratories, Inc. ("Bio-Rad" or the "Company"), reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results of the interim periods presented. All such adjustments are of a normal recurring nature. The condensed consolidated financial statements should be read in conjunction with the notes to consolidated financial statements contained in the Company's Annual Report for the year ended December 31, 1994 (the Company's 1994 Annual Report). Certain amounts in the financial statements of the prior year have been reclassified to be consistent with the 1995 presentation. 2. INVENTORIES The principal components of inventories are as follows:
March 31, December 31, 1995 1994 (in thousands) Raw materials $ 24,586 $ 23,713 Work in process 20,549 19,813 Finished goods, net 35,312 29,813 $ 80,447 $ 73,339 ======== ========
3. PROPERTY, PLANT AND EQUIPMENT The principal components of property, plant and equipment are as follows:
March 31, December 31, 1995 1994 (in thousands) Land and improvements $ 8,057 $ 8,057 Buildings and leasehold improvements 51,151 50,757 Equipment 94,550 91,600 153,758 150,414 Less accumulated depreciation 78,679 74,789 Net property, plant and equipment $ 75,079 $ 75,625 ======== ========
4 ITEM 2. Management's Discussion and Analysis of Results of Operations and Financial Condition. This discussion should be read in conjunction with the information contained both in this report and in the Company's Consolidated Financial Statements for the year ended December 31, 1994. The following table shows operating income and expense items as a percentage of net sales:
Three Months Ended Year Ended March 31, December 31, 1995 1994 1994 Net sales 100.0 100.0 100.0 Cost of goods sold 42.7 44.0 43.9 Gross profit 57.3 56.0 56.1 Selling, general and administrative 35.7 35.3 37.3 Product research and development 8.6 8.2 8.5 Income from operations 13.0 12.5 10.3 ===== ===== =====
Three Months Ended March 31, 1995 Compared to Three Months Ended March 31, 1994 Corporate Results - Sales, Margins and Expenses Bio-Rad's net sales (sales) in the first quarter of 1995 reached a record $97.9 million up 9% from the $89.7 million reported in the first quarter of 1994. For the first quarter of 1995, the effects of a weakened U.S. dollar account for approximately half of the increase in consolidated sales compared to sales based on 1994 exchange rates. Compared to the first quarter of 1994, sales increased 22% in Analytical Instruments, 8% in Life Science and 6% in Clinical Diagnostics. Excluding the affects of the weakened U.S. dollar, segment sales increased 17% in Analytical Instruments, 3% in Life Science and 2% in Clinical Diagnostics. The increase in Analytical Instruments sales is attributed to the recent strength of the semiconductor instrument market. Life Science growth was low compared to an extremely strong first quarter in 1994 characterized by increased demand in Japan and the Far East. The diagnostic market remains very competitive in response to concerns regarding healthcare spending. 5 Consolidated gross margins increased to 57.3% for the first quarter of 1995 from 56.0% for the first quarter of 1994 and 56.1% reported for the entire year of 1994. The increase in gross margin occurred in all three segments and is principally attributed to the aforementioned weakened dollar increasing the gross margin of foreign sales. While the Company sells its products worldwide, they are primarily manufactured in the United States. Selling, general and administrative expense (SG&A) and product research and development expense (R&D) increased from the first quarter of 1994, both in absolute dollars and as a percent of sales. SG&A, at 35.7% of sales, increased when compared to 35.3% of sales for the first quarter of 1994 but decreased when compared to 37.3% of sales for the entire year of 1994. The 0.4% increase represents approximately $0.4 million, the majority of which was spent in direct sales and sales support efforts. SG&A in the Life Science and Clinical Diagnostics segments increased at a rate slightly greater than the increase in sales while SG&A in the Analytical Instruments segment increased at half the rate of the increase in this segment's sales. Analytical Instruments is characterized by long lead times in completing sales and SG&A can fluctuate more significantly than in Life Science and Clinical Diagnostics. Management continually monitors the growth in SG&A spending in order to find ways to improve overall profitability by reducing SG&A as a percent of sales. As planned, R&D was expanded and spending increased in all segments as part of Bio-Rad's continuing commitment to long-term growth. Corporate Results - Non-Operating Items Interest expense was $422,000 less in the first quarter of 1995 than the comparable period of 1994 principally as a result of lower average borrowings. Average borrowings in the first three months of 1995 were 36% less than average borrowings in the same period of 1994. Net other income and expense in the first quarter of 1995 is primarily non-operating legal costs. Net other income and expense in the first quarter of 1994 included non-operating legal costs and hedging costs related to foreign exchange exposures. The Company's effective tax rate in the first quarter of 1995 was 25% compared to 40% for the first quarter of 1994 and 35% for the year 1994. The lower effective tax rate is the result of changes in the location of taxable income and fewer non-deductible expenses and reserves. The tax rate reflects the utilization of foreign loss carryforwards, foreign sales corporation benefits and foreign tax credits. These benefits are expected to continue into 1996. 6 Financial Condition At March 31, 1995, the Company had available $5.9 million in cash and cash equivalents and $55.7 million under its principal revolving credit agreement. In addition, Bio-Rad held marketable securities with a market value of $4.9 million, most of which could be readily converted to cash. The Company is open to acquisition opportunities to enhance growth. Future cash flows would be affected should any of these opportunities result in an actual acquisition. Available funds and cash flows from operations are adequate to meet the Company's objectives for operations, research and development, internal and external growth. Net cash provided by operations was $8.5 million for the quarter ended March 31, 1995 compared to $15.0 million for the comparable quarter of 1994. Increases in accounts receivable and inventories as described below account for the majority of the difference. For the seventh consecutive quarter, cash provided by operations and limited capital expenditures have allowed Bio-Rad to improve its debt to equity ratio. At March 31, 1995, consolidated accounts receivable were $10.7 million higher than at December 31, 1994. Approximately $3.6 million of the increase is attributed to increased sales in the first quarter of 1995 when compared to the fourth quarter of 1994. Approximately $2.9 million of the increase is attributed to the weakened U.S. dollar. Additionally, the reorganization of the Italian healthcare reimbursement system has temporarily slowed payments until the administrative transition is complete. The collection of accounts receivable is also slowed by increases in the sales of instruments which historically have extended payment terms. At March 31, 1995 consolidated net inventories increased by $7.1 million from December 31, 1994. Approximately $2.6 million of the increase is attributed to the weakened U.S. dollar. The remainder is principally due to increases in Life Science instrumentation production to lower back order levels and increases in Clinical Diagnostics for anticipated growth. Inventory levels remain below the peak of $86.0 million reported at March 31, 1993 and inventory control remains central to management's efforts to moderate capital growth requirements. 7 PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits The following documents are filed as part of this report: Exhibit No. 11.1 Computation of Earnings Per Share. 27.1 Financial Data Schedule. (b) Reports on Form 8-K There were no reports on Form 8-K for the quarter ended March 31, 1995. 8 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 thereto duly authorized. BIO-RAD LABORATORIES, INC. (Registrant) Date: May 10, 1994 /s/ Thomas L. Braje Thomas L. Braje, Vice President, Chief Financial Officer Date: May 10, 1994 /s/ James R. Stark James R. Stark, Corporate Controller 9 EX-11 2 EXHIBIT 11 EXHIBIT 11.1 - COMPUTATION OF EARNINGS PER SHARE Bio-Rad Laboratories, Inc. (In thousands, except per share data) Three Months Ended March 31, 1995 1994 Computation for Consolidated Statements of Income: Net income $ 8,053 $ 4,705 ======= ======= Weighted average common shares 8,113 8,045 ======= ======= Earnings per share $0.99 $0.58 ======= ======= Additional Primary Computation (1): Weighted average common shares per above 8,113 8,045 Add-Dilutive effect of outstanding options (as determined by the application of the treasury stock method) 105 6 Weighted average common shares, as adjusted 8,218 8,051 ======= ======= Primary earnings per share $0.98 $0.58 ======= ======= Fully Diluted Computation (1): Weighted average common shares per above 8,113 8,045 Add-Dilutive effect of outstanding options (as determined by the application of the treasury stock method) 114 8 Weighted average common shares, as adjusted 8,227 8,053 ======= ======= Fully diluted earnings per share $0.98 $0.58 ======= =======
[FN] (1) This calculation is submitted in accordance with Regulation S-K item 601(b)(11) although not required by footnote 2 to paragraph 14 of APB Opinion No. 15 because it results in dilution of less than 3%. EX-27 3 EXHIBIT 27.1 FINANCIAL DATA SCHEDULE.
5 This schedule contains summary financial information extracted from Bio-Rad Laboratories, Inc. Form 10-Q for the quarter ended March 31, 1995 and is qualified in its entirety by reference to such financial statements. 1,000 3-MOS DEC-31-1995 MAR-31-1995 5,917 0 92,452 0 80,447 199,003 153,758 78,679 284,105 101,843 25,392 8,122 0 0 131,823 284,105 97,858 97,858 41,817 41,817 0 0 1,282 10,738 2,685 8,053 0 0 0 8,053 .99 0
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