EX-99.1 2 dex991.htm PRESS RELEASE PRESS RELEASE

Exhibit 99.1

Investor Contact

Joshua Young

Director, Investor Relations

(978) 715-1527

(800) 225-3384

joshua_young@millipore.com

 

Media Contact

Thomas Anderson

Vice President

Corporate Communications

(978) 715-1043

(800) 225-3384

thomas_anderson@millipore.com

 

Millipore Revenues Grow 14 Percent in Third Quarter

 

Strong sales of chromatography media and filtration products to biotechnology

customers drive third quarter results

 

Billerica, Massachusetts, October 25, 2005 – Millipore Corporation (NYSE:MIL) announced today that its third quarter revenues were $240 million, up 14 percent from the same period in 2004. In constant currency, revenue growth was 13 percent. For the first nine months, revenues were $735 million, up 12 percent from the same period last year. In constant currency, revenue growth was 10 percent for the first nine months of 2005.

 

Third quarter GAAP earnings per share were $0.44, compared with GAAP earnings per share of $0.50 in the third quarter of last year. Third quarter results included charges of $7 million, net of taxes, principally for acquisition-related in-process R&D costs, fair value adjustments for acquired inventory, and costs related to the Company’s manufacturing consolidation strategy. Excluding these items, non-GAAP earnings per share were $0.58 as compared to non-GAAP earnings per share of $0.52 in the third quarter of 2004.

 

Martin D. Madaus, Millipore’s Chairman and CEO, commented: “I am pleased with our operational execution which resulted in solid revenue growth during the third quarter, a seasonally slow quarter for the Company. Growth was particularly strong in sales of chromatography media and filtration products to biotechnology customers. Revenue growth for our bioscience business accelerated as planned.”

 

“Additionally, we reported the first revenues from our recently completed MicroSafe and NovAseptic acquisitions. Excluding revenues from these acquisitions, we achieved revenue growth of 11 percent in constant currency, an indicator of the underlying strength of our business and the results of our initiatives to improve Millipore’s performance. Cash flow from operations and proceeds from stock option exercises allowed us to maintain our strong cash position despite investing more than $100 million on these acquisitions.”


Progress on executing growth strategy and improving operational efficiencies

 

Madaus added: “We continue to execute our growth strategy launched in June, 2005. Our recent acquisitions tie directly to our product and service expansion strategy for our bioprocess business, and their integration is on track. We also initiated an important alliance with Gen-Probe Incorporated for rapid molecular testing in biopharmaceutical production facilities, with the first products from that alliance expected in 2007.”

 

He concluded: “We are also focusing on our initiatives to consolidate our plant network, institute “lean manufacturing” processes, accelerate our R&D productivity, and bring additional leadership into the organization. All of these efforts will have a positive impact on our long-term growth and profitability.”

 

Revenue growth by geography was as follows ($’s in millions):

 

Revenues by Geographic Area


   Q3 2005

   Q3 2004

   % Growth

   % Growth Constant
Currency


Americas

   $ 103    $ 90    14%    13%

Europe

     96      84    14%    14%

Asia/Pacific

     41      37    11%    12%
    

  

         

Total

   $ 240    $ 211    14%    13%
    

  

         

 

Revenue growth by division was as follows ($’s in millions):

 

Revenues by Division


   Q3 2005

   Q3 2004

   % Growth

   % Growth Constant
Currency


Bioprocess

     146      126    16%    16%

Bioscience

   $ 94    $ 85    10%    9%
    

  

         

Total

   $ 240    $ 211    14%    13%
    

  

         

 

Use of Non-GAAP Financial Measures

 

In addition to analyzing U.S. GAAP financial results, management also analyzes “non-GAAP” financial measures as we believe these measures may allow for a better understanding of the underlying business trends. “Constant currency” is a non-GAAP measure whereby foreign currency balances are translated, in all periods presented, at Millipore’s predetermined budgeted exchange rates for 2005, thus excluding the impact of fluctuations in the actual foreign currency rates. Non-GAAP earnings per share reflect U.S. GAAP results, translated at actual rates of exchange and adjusted for unusual or non-operating items.


Quarterly Earnings Call

 

Millipore will have a Live Webcast Quarterly Earnings call today, October 25, 2005 at 4:45 p.m., Eastern Time. Please visit the Millipore web site at www.millipore.com for details about this live event. The call will also be archived on the Investor Relations section of Millipore’s website and available as a podcast. Additionally, a telephone replay of the call will be available beginning at 8:00 p.m. ET on October 25, 2005 until 8:00 p.m. ET on November 8, 2005. The replay can be accessed by dialing (800) 642-1687 or (706) 645-9291 and entering confirmation code: 1472882.

 

About Millipore

 

Millipore is a leading bioprocess and bioscience products and services company, organized into two divisions. The Bioprocess division offers solutions that optimize development and manufacturing of biologics. The Bioscience division provides high performance products and application insights that improve laboratory productivity. Millipore has a deep understanding of its customers’ research and manufacturing process needs, and offers reliable and innovative tools, technologies and services. The Company employs approximately 4,850 people worldwide and posted revenues of $883 million in 2004.

 

For additional information on Millipore Corporation, please visit its website at: www.millipore.com.

 

Forward Looking Statements:

 

The matters discussed herein, as well as in future oral and written statements by management of Millipore Corporation that are forward-looking statements, are based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. Potential risks and uncertainties that could affect Millipore’s future operating results include, without limitation, foreign exchange rates; regulatory delay in the approval of new therapeutics and their ultimate commercial success; competitive factors such as new membrane technology; lack of availability of raw materials or component products on a timely basis; inventory risks due to shifts in market demand; change in product mix; conditions in the economy in general and in the bioscience and bioprocess markets in particular; potential environmental liabilities; the inability to utilize technology in current or planned products due to overriding rights by third parties; the inability to successfully integrate acquired businesses; the inability to realize the expected benefits of development, marketing and other alliances; difficulties inherent in transferring or outsourcing of manufacturing operations; difficulties inherent in research and development activities; and the risk factors listed from time to time in Millipore’s filings with the SEC.


Millipore Corporation

Condensed Consolidated Statements of Income

(In thousands, except per share data)

(Unaudited)

 

     Three Months Ended

    Nine Months Ended

 
     October 1,
2005


    October 2,
2004


    October 1,
2005


    October 2,
2004


 

Net sales

   $ 239,557     $ 210,724     $ 734,699     $ 657,861  

Cost of sales

     116,862       97,405       347,090       301,556  
    


 


 


 


Gross profit

     122,695       113,319       387,609       356,305  

Selling, general and administrative expenses

     72,600       64,021       230,584       198,779  

Research and development expenses

     18,859       15,149       52,272       47,183  
    


 


 


 


Operating income

     31,236       34,149       104,753       110,343  

Interest income

     894       584       2,202       1,225  

Interest expense

     (1,432 )     (2,437 )     (5,021 )     (7,416 )
    


 


 


 


Income before provision for income taxes

     30,698       32,296       101,934       104,152  

Provision for income taxes

     7,824       7,267       22,783       23,434  
    


 


 


 


Net income

   $ 22,874     $ 25,029     $ 79,151     $ 80,718  
    


 


 


 


Diluted income per share

   $ 0.44     $ 0.50     $ 1.55     $ 1.61  
    


 


 


 


Diluted weighted average shares outstanding

     52,579       50,392       51,185       50,192  
    


 


 


 



Millipore Corporation

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

     October 1,
2005


   December 31,
2004


ASSETS

             

Current assets:

             

Cash and cash equivalents

   $ 163,475    $ 152,144

Accounts receivable, net

     186,369      181,911

Inventories

     151,428      143,714

Deferred income taxes

     40,829      54,247

Other current assets

     12,882      8,840
    

  

Total current assets

     554,983      540,856
    

  

Property, plant and equipment, net

     354,909      351,004

Deferred income taxes

     98,627      85,197

Intangible assets, net

     45,706      19,584

Goodwill

     78,651      9,433

Other assets

     7,214      7,745
    

  

Total assets

   $ 1,140,090    $ 1,013,819
    

  

LIABILITIES AND SHAREHOLDERS' EQUITY

             

Current liabilities:

             

Accounts payable

   $ 71,507    $ 66,970

Accrued expenses and other current liabilities

     107,458      96,040
    

  

Total current liabilities

     178,965      163,010
    

  

Long-term debt

     100,000      147,000

Other liabilities

     74,324      64,959

Shareholders' equity

     786,801      638,850
    

  

Total liabilities and shareholders' equity

   $ 1,140,090    $ 1,013,819
    

  


Millipore Corporation

Reconcilation of GAAP Net Income and Non-GAAP Earnings

(In thousands, except per share data)

(Unaudited)

 

     Q3 2005

   Q3 2004

     Income

   EPS

   Income

   EPS

Net income – U.S. GAAP

   $ 22,874    $ 0.44    $ 25,029    $ 0.50

Add back (net of taxes):

                           

In-process R&D writeoff and inventory fair value adjustment from acquisitions

     4,181      0.08      —        —  

Costs related to manufacturing strategy

     3,243      0.06      —        —  

Expenses related to CEO transition

     —        —        1,064      0.02
    

  

  

  

Non-GAAP earnings

   $ 30,298    $ 0.58    $ 26,093    $ 0.52