-----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, Ahq4q0qVkvV01OK17cXGvVTJ8d81x+CP6jfQpKQbo1Q0Z6I0chWmM5Dhy4lQBsCg 9zdjnWOJxsPyPs3YxZ/bBg== 0000842023-07-000012.txt : 20070501 0000842023-07-000012.hdr.sgml : 20070501 20070501103721 ACCESSION NUMBER: 0000842023-07-000012 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070501 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070501 DATE AS OF CHANGE: 20070501 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TECHNE CORP /MN/ CENTRAL INDEX KEY: 0000842023 STANDARD INDUSTRIAL CLASSIFICATION: BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836] IRS NUMBER: 411427402 STATE OF INCORPORATION: MN FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-17272 FILM NUMBER: 07804020 BUSINESS ADDRESS: STREET 1: 614 MCKINLEY PL N E CITY: MINNEAPOLIS STATE: MN ZIP: 55413 BUSINESS PHONE: 6123798854 MAIL ADDRESS: STREET 1: 614 MCKINLEY PLACE NE CITY: MINNEAPOLIS STATE: MN ZIP: 55413 8-K 1 k8q.txt 8-K 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): May 1, 2007 TECHNE CORPORATION (Exact Name of Registrant as Specified in Charter) Minnesota 0-17272 41-1427402 (State or Other Jurisdiction (Commission I.R.S. Employer of Incorporation) File Number) Identification No.) 614 Mckinley Place NE Minneapolis, MN 55413 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (612) 379-8854 Not Applicable (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 obligations of the registrant under any of the following provisions: / / Written communications pursuant to Rule 425 under the Securities Act 17 CFR 230.425) / / Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) / / Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) / / 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 A copy of the press release issued by Techne Corporation on May 1, 2007, describing the results of operations for the quarter and nine months ended March 31, 2007 and its financial condition as of March 31, 2007, is attached hereto as Exhibit 99.1. Segment information for Techne Corporation for the quarter and nine months ended March 31, 2007 which has been included on Techne Corporation's website (www.techne-corp.com), is attached hereto as Exhibit 99.2. The information in this Form 8-K and the Exhibits attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such filing. Item 9.01 Financial Statements and Exhibits (d) Exhibits 99.1 Press Release dated May 1, 2007. 99.2 Segment information for the quarter and nine months ended March 31, 2007. SIGNATURE 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. Dated: May 1, 2007 TECHNE CORPORATION By: /s/ Thomas E. Oland --------------------------- Name: Thomas E. Oland Title: President and Chief Executive Officer EXHIBIT INDEX Exhibit No. Description ----------- ----------- 99.1 Press release of Techne Corporation dated May 1, 2007. 99.2 Segment information for Techne Corporation for the quarter and nine months ended March 31, 2007. EX-99.1 2 release507.txt EARNINGS RELEASE DATED MAY 1, 2007 TECHNE CORPORATION RELEASES UNAUDITED THIRD QUARTER RESULTS FOR FISCAL YEAR 2007 Minneapolis/May 1, 2007/--Techne Corporation's (NASDAQ: TECH) consolidated net earnings for the quarter ended March 31, 2007 increased 17.4% to $23.9 million or $0.60 per diluted share compared to $20.3 million and $0.52 per diluted share for the quarter ended March 31, 2006. For the nine months ended March 31, 2007, Techne's consolidated net earnings increased 15.5% to $62.2 million or $1.57 per diluted share compared with $53.9 million or $1.36 per diluted share for the nine months ended March 31, 2006. The improvement in results was mainly due to increased consolidated net sales and improved gross margin percentages. Consolidated net sales for the quarter and nine months ended March 31, 2007 were $60.2 million and $165.1 million, respectively. This was an increase of 9.8% and 9.6% from the quarter and nine months ended March 31, 2006. Biotechnology net sales, which includes sales by R&D Systems' Biotechnology Division, Fortron and BiosPacific, for the quarter and nine months ended March 31, 2007 were $39.1 million and $108.5 million, increases of 6.9% and 8.4%, respectively, from the same prior-year periods. Approximately $1.2 million of the increase in Biotechnology net sales during the first six months of fiscal 2007 was the result of price increases made in January 2006. R&D Europe's net sales for the quarter and nine months ended March 31, 2007 were $17.4 million and $45.6 million, increases of 20.1% and 15.5%, respectively, from the same prior-year periods. In British pound sterling, R&D Europe's net sales increased 7.2% and 4.9% for the quarter and nine months ended March 31, 2007. Hematology net sales of $3.7 million for the quarter and $11.0 million for the nine months ended March 31, 2007 were essentially flat from the same prior-year periods. Consolidated gross margins were 80.0% and 79.4% for the quarter and nine months ended March 31, 2007, respectively, compared to 77.9% and 77.5% for the quarter and nine months ended March 31, 2006. Biotechnology gross margins increased to 80.4% and 80.3% for the quarter and nine months ended March 31, 2007 from 78.8% and 78.2% for the same prior-year periods mainly as a result of changes in product mix. Biotechnology gross margins were also positively affected by the sale of inventory acquired from Fortron and BiosPacific in fiscal 2006, which was valued at fair market under purchase accounting. Included in cost of sales for the quarter and nine months ended March 31, 2007 were $100,000 and $455,000, respectively, related to the sale of acquired inventory compared to $397,000 and $1.3 million, respectively, for the same prior-year periods. The income tax rate of 35.2% for the quarter ended March 31, 2007 increased from 33.9% for the first and second quarter of fiscal 2007 as a result of changes in state apportionment estimates. Income tax rates are expected to range from approximately 33.5% to 34.5% in the fourth quarter of fiscal 2007. Consolidated net earnings and diluted earnings per share for the quarter and nine months ended March 31, 2007 were favorably impacted by the change in exchange rates from the prior year used to convert R&D Europe results from British pound sterling to U.S. dollars. The change in exchange rates from the prior year increased consolidated net earnings approximately $600,000 and $1.3 million for the quarter and nine months ended March 31, 2007, respectively. Forward Looking Statements: This earnings release contains forward-looking statements within the meaning of the Private Litigation Reform Act. These statements, including the Company's expectations as to income tax rates, involve risks and uncertainties that may affect the actual results of operations. The following important factors, among others, have affected and, in the future, could affect the Company's actual results: the introduction and acceptance of new biotechnology and hematology products, the levels and particular directions of research by the Company's customers, the impact of the growing number of producers of biotechnology research products and related price competition, the retention of hematology OEM and proficiency survey business, the impact of currency exchange rate fluctuations, and the costs and results of research and product development efforts of the Company and of companies in which the Company has invested or with which it has formed strategic relationships. For additional information concerning such factors, see the Company's annual report on Form 10-K and quarterly reports on Form 10-Q as filed with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements we make in this release due to new information or future events. Investors are cautioned not to place undue emphasis on these statements. * * * * * * * * * * * * * * Techne Corporation has two operating subsidiaries: Research and Diagnostic Systems, Inc. (R&D Systems) of Minneapolis, Minnesota and R&D Systems Europe, Ltd. (R&D Europe) of Abingdon, England. R&D Systems is a specialty manufacturer of biological products. R&D Systems has two subsidiaries, Fortron Bio Science, Inc. (Fortron), located in Minneapolis, and BiosPacific, Inc. (BiosPacific), located in Emeryville, California. Fortron develops and manufactures antibodies and BiosPacific is a worldwide supplier of biologics to manufacturers of in vitro diagnostic systems and immunodiagnostic kits. R&D Europe is a distributor of biotechnology products. Contact: Greg Melsen, Chief Financial Officer Kathy Backes, Controller (612) 379-8854 TECHNE CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (In thousands, except per share data) (Unaudited) QUARTER ENDED NINE MONTHS ENDED ---------------- ------------------ 3/31/07 3/31/06 3/31/07 3/31/06 ------- ------- -------- -------- Net sales $60,197 $54,813 $165,057 $150,551 Cost of sales 12,019 12,105 33,970 33,896 ------- ------- -------- -------- Gross margin 48,178 42,708 131,087 116,655 ------- ------- -------- -------- Operating expenses: Selling, general and administrative 7,229 6,901 23,126 21,335 Research and development 5,169 4,761 15,068 14,052 Amortization of intangible assets 403 492 1,210 1,476 ------- ------- -------- -------- Total operating expenses 12,801 12,154 39,404 36,863 ------- ------- -------- -------- Operating income 35,377 30,554 91,683 79,792 Other expense (income): Interest expense -- 245 1,083 706 Interest income (2,237) (1,082) (5,869) (3,186) Other non-operating expense (income), net 767 229 1,680 721 ------- ------- -------- -------- Total other expense (income) (1,470) (608) (3,106) (1,759) ------- ------- -------- -------- Earnings before income taxes 36,847 31,162 94,789 81,551 Income taxes 12,954 10,815 32,602 27,689 ------- ------- -------- -------- Net earnings $23,893 $20,347 $ 62,187 $ 53,862 ======= ======= ======== ======== Earnings per share: Basic $ 0.61 $ 0.52 $ 1.58 $ 1.38 Diluted $ 0.60 $ 0.52 $ 1.57 $ 1.36 Weighted average common shares outstanding: Basic 39,414 39,199 39,393 38,941 Diluted 39,543 39,425 39,498 39,631 TECHNE CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) 3/31/07 6/30/06 -------- -------- ASSETS Cash and equivalents $116,276 $ 89,634 Short-term available-for-sale investments 27,822 19,212 Trade accounts receivable 29,582 23,769 Other receivables 1,247 1,309 Inventory 9,574 9,024 Other current assets 7,891 6,874 -------- -------- Current assets 192,392 149,822 Available-for-sale investments 85,854 77,660 Property and equipment, net 89,172 88,772 Goodwill and intangible assets, net 30,571 32,021 Other non-current assets 29,184 22,237 -------- -------- Total assets $427,173 $370,512 ======== ======== LIABILITIES Current liabilities $ 15,710 $ 17,966 Long-term debt -- 12,198 Stockholders' equity 411,463 340,348 -------- -------- Total liabilities and equity $427,173 $370,512 ======== ======== EX-99.2 3 seg307.txt SEGMENT RESULTS SEGMENT INFORMATION TECHNE CORPORATION AND SUBISIDARIES (in thousands of $'s, except per share data)
Increase (Decrease) Fiscal 2007 From Fiscal 2006 ------------------------------------------ ---------------------------------- First Second Third Percent First Second Third Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter YTD ------- ------- ------- ------- -------- ------- ------- ------- ------- Sales 52,351 52,509 60,197 165,057 100% 4,642 4,480 5,384 14,506 Cost of sales 11,237 10,714 12,019 33,970 21% 141 19 (86) 74 ------- ------- ------- ------- -------- ------- ------- ------- ------- Gross margin 41,114 41,795 48,178 131,087 79% 4,501 4,461 5,470 14,432 Gross margin percentage 78.5% 79.6% 80.0% 79.4% SG&A expense 7,067 8,830 7,229 23,126 14% 613 850 328 1,791 R&D expense 4,855 5,044 5,169 15,068 9% 138 470 408 1,016 Amortization expense 403 404 403 1,210 1% (89) (88) (89) (266) Interest expense 268 815 0 1,083 1% 45 577 (245) 377 Interest income (1,676) (1,956) (2,237) (5,869) (4%) (702) (826) (1,155) (2,683) Other non- operating ex., net 485 428 767 1,680 1% 274 147 538 959 ------- ------- ------- ------- -------- ------- ------- ------- ------- 11,402 13,565 11,331 36,298 22% 279 1,130 (215) 1,194 ------- ------- ------- ------- -------- ------- ------- ------- ------- Earnings before income taxes 29,712 28,230 36,847 94,789 57% 4,222 3,331 5,685 13,238 Income taxes 10,081 9,567 12,954 32,602 20% 1,592 1,182 2,139 4,913 ------- ------- ------- ------- -------- ------- ------- ------- ------- 19,631 18,663 23,893 62,187 37% 2,630 2,149 3,546 8,325 ======= ======= ======= ======= ======== ======= ======= ======= ======= Diluted earnings per share .50 .47 .60 1.57 Weighted average diluted shares outstanding 39,469 39,511 39,543 39,498
BIOTECHNOLOGY (1) (in thousands of $'s)
Increase (Decrease) Fiscal 2007 From Fiscal 2006 ------------------------------------------ ---------------------------------- First Second Third Percent First Second Third Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter YTD ------- ------- ------- ------- -------- ------- ------- ------- ------- Sales 41,621 40,073 46,202 127,896 100% 4,022 2,376 3,189 9,587 Intersegment sales (5,699) (6,647) (7,072) (19,418) (400) (92) (676) (1,168) ------- ------- ------- ------- ------- ------- ------- ------- 35,922 33,426 39,130 108,478 3,622 2,284 2,513 8,419 Cost of sales 8,482 7,683 9,041 25,206 20% 12 (464) (84) (536) Intersegment sales (5,524) (6,435) (7,147) (19,106) (201) (295) (669) (1,165) ------- ------- ------- ------- ------- ------- ------- ------- 2,958 1,248 1,894 6,100 (189) (759) (753) (1,701) Gross margin 32,964 32,178 37,236 102,378 80% 3,811 3,043 3,266 10,120 Gross margin percentage 79.6% 80.8% 80.4% 80.3% SG&A expense 4,013 4,664 4,166 12,843 10% 374 470 (33) 811 R&D expense 4,675 4,854 4,971 14,500 11% 143 450 378 971 Amortization expense 403 404 403 1,210 2% (89) (88) (89) (266) Interest, net (595) (722) (841) (2,158) (2%) (327) (349) (556) (1,232) ------- ------- ------- ------- ------- ------- ------- ------- 8,496 9,200 8,699 26,395 21% 101 483 (300) 284 ------- ------- ------- ------- ------- ------- ------- ------- Pretax result 24,468 22,978 28,537 75,983 59% 3,710 2,560 3,566 9,836 ======= ======= ======= ======= ======= ======= ======= ======= =======
(1) Includes R&D Systems' Biotechnology Division, Fortron Bio Science, Inc., and BiosPacific, Inc. R&D SYSTEMS EUROPE (in thousands of British pounds)
Increase (Decrease) Fiscal 2007 From Fiscal 2006 ------------------------------------------ ---------------------------------- First Second Third Percent First Second Third Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter YTD ------- ------- ------- ------- -------- ------- ------- ------- ------- Sales 6,870 7,851 8,854 23,575 100% 180 322 598 1,100 Cost of sales 3,285 3,766 4,091 11,142 47% (7) 1 (100) (106) ------- ------- ------- ------- -------- ------- ------- ------- ------- Gross margin 3,585 4,085 4,763 12,433 53% 187 321 698 1,206 Gross margin percentage 52.2% 52.0% 53.8% 52.7% SG&A expense 1,074 1,236 1,075 3,385 14% 70 51 5 126 Interest income (410) (480) (542) (1,432) (6%) (84) (151) (200) (435) Exchange loss/(gain) 78 (64) 22 36 -- 63 (90) 71 44 ------- ------- ------- ------- -------- ------- ------- ------- ------- 742 692 555 1,989 8% 49 (190) (124) (265) ------- ------- ------- ------- -------- ------- ------- ------- ------- Pretax result 2,843 3,393 4,208 10,444 45% 138 511 822 1,471 ======= ======= ======= ======= ======== ======= ======= ======= =======
R&D SYSTEMS EUROPE (in thousands of $'s)
Increase (Decrease) Fiscal 2007 From Fiscal 2006 ------------------------------------------ ---------------------------------- First Second Third Percent First Second Third Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter YTD ------- ------- ------- ------- -------- ------- ------- ------- ------- Sales 12,927 15,257 17,403 45,587 100% 1,052 2,151 2,907 6,110 Cost of sales 6,181 7,319 8,040 21,540 47% 337 765 682 1,784 ------- ------- ------- ------- -------- ------- ------- ------- ------- Gross margin 6,746 7,938 9,363 24,047 53% 715 1,386 2,225 4,326 Gross margin percentage 52.2% 52.0% 53.8% 52.7% SG&A expense 2,020 2,405 2,112 6,537 14% 238 346 233 817 Interest income (771) (933) (1,067) (2,771) (6%) (192) (361) (467) (1,020) Exchange loss 147 (126) 42 63 -- 119 (172) 129 76 ------- ------- ------- ------- -------- ------- ------- ------- ------- 1,396 1,346 1,087 3,829 8% 165 (187) (105) (127) ------- ------- ------- ------- -------- ------- ------- ------- ------- Pretax result 5,350 6,592 8,276 20,218 45% 550 1,573 2,330 4,453 ======= ======= ======= ======= ======== ======= ======= ======= =======
HEMATOLOGY (in thousands of $'s)
Increase (Decrease) Fiscal 2007 From Fiscal 2006 ------------------------------------------ ---------------------------------- First Second Third Percent First Second Third Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter YTD ------- ------- ------- ------- -------- ------- ------- ------- ------- Sales 3,502 3,826 3,664 10,992 100% (32) 45 (36) (23) Cost of sales 2,098 2,147 2,085 6,330 58% (7) 13 (15) (9) ------- ------- ------- ------- -------- ------- ------- ------- ------- Gross margin 1,404 1,679 1,579 4,662 42% (25) 32 (21) (14) Gross margin percentage 40.1% 43.9% 43.1% 42.4% SG&A expense 398 439 431 1,268 12% 14 15 (10) 19 R&D expense 180 190 198 568 5% (5) 20 30 45 Interest, net (81) (95) (111) (287) (3%) (44) (45) (71) (160) ------- ------- ------- ------- -------- ------- ------- ------- ------- 497 534 518 1,549 14% (35) (10) (51) (96) ------- ------- ------- ------- -------- ------- ------- ------- ------- Pretax result 907 1,145 1,061 3,113 28% 10 42 30 82 ======= ======= ======= ======= ======== ======= ======= ======= =======
CORPORATE AND OTHER (2) (in thousands of $'s)
Increase (Decrease) Fiscal 2007 From Fiscal 2006 ----------------------------------- ---------------------------------- First Second Third First Second Third Quarter Quarter Quarter YTD Quarter Quarter Quarter YTD ------- ------- ------- ------- ------- ------- ------- ------- Interest income 229 206 218 653 139 71 61 271 Rental income 299 241 55 595 (43) (96) (232) (371) ------- ------- ------- ------- ------- ------- ------- ------- 528 447 273 1,248 96 (25) (171) (100) SG&A expense 636 1,322 520 2,478 (13) 19 138 144 Interest expense 268 815 0 1,083 45 577 (245) 377 Other-Building expenses 510 549 519 1,578 67 59 (1) 125 Other-Hemerus losses 127 123 119 369 45 41 36 122 Other-Nephromics losses -- 123 142 265 -- 123 142 265 ------- ------- ------- ------- ------- ------- ------- ------- 1,541 2,932 1,300 5,773 144 819 70 1,033 ------- ------- ------- ------- ------- ------- ------- ------- Pretax result (1,013) (2,485) (1,027) (4,525) (48) (844) (241) (1,133) ======= ======= ======= ======= ======= ======= ======= =======
(2) Unallocated corporate expenses and Techne's share of losses by Hemerus Medical, LLC and Nephromics, LLC. -----END PRIVACY-ENHANCED MESSAGE-----