MINNEAPOLIS, Feb. 1, 2024
/PRNewswire/ -- Bio-Techne Corporation (NASDAQ: TECH) today
reported its financial results for the second quarter ended
December 31, 2023.
Second Quarter FY2024 Highlights
- Second quarter organic revenue declined by 2% (0% reported) to
$272.6 million. Organic revenue
remained flat (2% reported) in the first half of fiscal 2024 at
$549.5 million.
- GAAP earnings per share (EPS) was $0.17 versus $0.31
one year ago. Adjusted EPS of $0.40
compared to $0.47 one year ago.
- The impact of the BioPharma macroeconomic conditions that the
industry has experienced throughout the past calendar year
increased in our fiscal second quarter. The company has been able
to partially offset this headwind by providing our customers highly
productive analytical tools, which is demonstrated by 20% growth in
our instrument consumables.
- Strong commercial execution in the academic end market with
high single-digit growth.
- Cash flow generated from operations increased to $142.5 million, an 18% increase from the prior
year.
- Appointment of Matthew F.
McManus to President of the Diagnostics and Genomics
segment.
The Company's financial statements are prepared in accordance
with accounting principles generally accepted in the United States (GAAP). Adjusted diluted
EPS, adjusted net earnings, adjusted gross margin, adjusted
operating income, adjusted tax rate, organic revenue, adjusted
operating margin, earnings before interest, taxes, depreciation,
and amortization (EBITDA), and adjusted EBITDA are non-GAAP
measures that exclude certain items detailed later in this press
release under the heading "Use of non-GAAP Adjusted Financial
Measures." A reconciliation of GAAP to non-GAAP financial measures
is included in this press release.
"I am pleased with the team's continued execution in this
dynamic operating environment, as we navigated a challenging
China landscape and conservatism
from a subset of biotech customers, which was partially offset by
continued strength in our academic end market," said Kim Kelderman, President and Chief Executive
Officer of Bio-Techne. "Encouragingly, we are seeing initial signs
of stabilization in China, and
remain confident in the long-term high-growth potential of this
geography."
Kelderman added, "Our unique life science tools and diagnostics
portfolio, financial strength, experienced team, and deep
scientific capabilities position Bio-Techne to create value for all
of our stakeholders going forward."
Kelderman concluded, "Lastly, I want to thank Chuck Kummeth for his support in my transition,
prior to his retirement from Bio-Techne on July 1, 2024. Chuck did a remarkable job growing
Bio-Techne during his 11-year tenure as CEO. I am excited to lead
this talented team through the next phase of growth."
Bio-Techne will host an earnings conference call today,
February 1, 2024 at 8:00 a.m. CST. To listen, please dial
1-877-407-9208 or 1-201-493-6784 for international callers, and
reference conference ID 13743935. The earnings call can also be
accessed via webcast through the following link
https://investors.bio-techne.com/ir-calendar.
A recorded rebroadcast will be available for interested parties
unable to participate in the live conference call by dialing
1-844-512- 2921 or 1-412-317-6671 (for international callers) and
referencing Conference ID 13743935. The replay will be available
from 11:00 a.m. CST on Thursday, February 1,
2024, until 11:00 p.m. CST on
Friday, March 1, 2024.
Second Quarter Fiscal 2024
Revenue
Net sales for the second quarter remained flat at $272.6 million. Organic revenue declined 2%
compared to the prior year, with acquisitions contributing 1% and
foreign currency exchange having a 1% favorable impact.
GAAP Earnings Results
GAAP EPS was $0.17 per diluted
share, versus $0.31 in the same
quarter last year. GAAP operating income for the second quarter of
fiscal 2024 decreased 44% to $38.0
million, compared to $67.9
million in the second quarter of fiscal 2023. Prior year
GAAP EPS was favorably impacted by a non-recurring benefit related
to the change in fair value of contingent consideration. GAAP
operating margin was 13.9%, compared to 25.0% in the second quarter
of fiscal 2023. Current year GAAP operating margin was impacted by
the impairment of assets held-for-sale, restructuring charges, the
acquisition of Lunaphore, unfavorable volume, and product mix.
Non-GAAP Earnings Results
Adjusted EPS decreased to $0.40
per diluted share compared to $0.47
in the same quarter last year. Adjusted operating income for the
second quarter of fiscal 2024 decreased 15% compared to the second
quarter of fiscal 2023. Adjusted operating margin was 30.1%,
compared to 35.5% in the second quarter of fiscal 2023. Adjusted
operating margin was unfavorably impacted by the acquisition of
Lunaphore, unfavorable volume, and product mix.
Segment Results
Management uses adjusted operating results to monitor and
evaluate performance of the Company's business segments, as
highlighted below.
Protein Sciences Segment
The Company's Protein Sciences segment is one of the world's
leading suppliers of specialized proteins such as cytokines and
growth factors, immunoassays, antibodies and reagents, to the
biotechnology and academic research communities. Additionally, the
segment provides an array of platforms useful in various areas of
protein analysis. Protein Sciences segment's second quarter
fiscal 2024 net sales were $197.7
million, a decrease of 3% from $203.9
million for the second quarter of fiscal 2023. Organic
revenue for the segment declined 4%, with foreign currency exchange
having a 1% favorable impact. Protein Sciences segment's operating
margin was 40.3% in the second quarter of fiscal 2024 compared to
43.8% in the second quarter of fiscal 2023. The segment's operating
margin decreased primarily due to unfavorable volume and product
mix.
Diagnostics and Genomics Segment
The Company's Diagnostics and Genomics segment provides blood
chemistry and blood gas quality controls, hematology instrument
controls, immunoassays and other bulk and custom reagents for the
in vitro diagnostic market. The Diagnostics and Genomics segment
also develops and provides spatial biology products as well as
exosome-based diagnostics for various pathologies, including
prostate cancer. The Diagnostics and Genomics segment's second
quarter fiscal 2024 net sales were $75.4
million, an increase of 11% from $68.0 million for the second quarter of fiscal
2023. Organic revenue growth was 5% for the second quarter of
fiscal 2024, with acquisitions having a 5% impact and foreign
exchange having a favorable impact of 1%. The Diagnostics and
Genomics segment's operating margin was 6.0% in the second quarter
of fiscal 2024 compared to 12.2% in the second quarter of fiscal
2023. The segment's operating margin decreased primarily due to the
Lunaphore acquisition.
Use of non-GAAP Adjusted Financial Measures:
This press release contains financial measures that have not
been calculated in accordance with accounting principles generally
accepted in the U.S. (GAAP). These non-GAAP measures include:
- Organic revenue
- Adjusted diluted earnings per share
- Adjusted net earnings
- Adjusted tax rate
- Adjusted gross margin
- Adjusted operating income
- Adjusted operating margin
- Earnings before interest, taxes, depreciation, and amortization
(EBITDA)
- Adjusted EBITDA
We provide these measures as additional information regarding
our operating results. We use these non-GAAP measures internally to
evaluate our performance and in making financial and operational
decisions, including with respect to incentive compensation. We
believe that our presentation of these measures provides investors
with greater transparency with respect to our results of operations
and that these measures are useful for period-to-period comparison
of results.
Our non-GAAP financial measure of organic revenue represents
revenue growth excluding revenue from acquisitions within the
preceding 12 months, the impact of foreign currency, as well as the
impact of partially-owned consolidated subsidiaries. Excluding
these measures provides more useful period-to-period comparison of
revenue results as it excludes the impact of foreign currency
exchange rates, which can vary significantly from period to period,
and revenue from acquisitions that would not be included in the
comparable prior period. Revenues from partially-owned subsidiaries
consolidated in our financial statements are also excluded from our
organic revenue calculation, as those revenues are not fully
attributable to the Company. There was no revenue from
partially-owned consolidated subsidiaries in fiscal year 2024 due
to the sale of Changzhou Eminence Biotechnology Co., Ltd.
(Eminence) in the first quarter of fiscal 2023. Revenue from
partially-owned consolidated subsidiaries was $2.0 million for the year ended June 30, 2023.
Our non-GAAP financial measures for adjusted gross margin,
adjusted operating margin, adjusted EBITDA, and adjusted net
earnings, in total and on a per share basis, exclude stock-based
compensation, which is inclusive of the employer portion of payroll
taxes on those stock awards, the costs recognized upon the sale of
acquired inventory, amortization of acquisition intangibles,
restructuring and restructuring-related costs, and other
non-recurring items including non-recurring costs, goodwill and
long-lived asset impairments, and gains. Stock-based compensation
is excluded from non-GAAP adjusted net earnings because of the
nature of this charge, specifically the varying available valuation
methodologies, subjection assumptions, variety of award types, and
unpredictability of amount and timing of employer related tax
obligations. The Company excludes amortization of purchased
intangible assets, purchase accounting adjustments, including costs
recognized upon the sale of acquired inventory and
acquisition-related expenses inclusive of the changes in fair value
contingent consideration, and other non-recurring items including
gains or losses on legal settlements, goodwill and long-lived asset
impairment charges, and one-time assessments from this measure
because they occur as a result of specific events, and are not
reflective of our internal investments, the costs of developing,
producing, supporting and selling our products, and the other
ongoing costs to support our operating structure. Costs related to
restructuring and restructuring-related activities, including
reducing overhead and consolidating facilities, are excluded
because we believe they are not indicative of our normal operating
costs. Additionally, these amounts can vary significantly
from period to period based on current activity. The Company also
excludes revenue and expense attributable to partially-owned
consolidated subsidiaries in the calculation of our non-GAAP
financial measures as the revenues and expenses are not fully
attributable to the Company.
The Company's non-GAAP adjusted operating margin and adjusted
net earnings, in total and on a per share basis, also excludes
acquisition related expenses inclusive of the changes in fair value
of contingent consideration, gain and losses from investments, as
they are not part of our day-to-day operating decisions (excluding
our equity method investment in Wilson
Wolf as it is certain to be acquired in the future) and
certain adjustments to income tax expense. Additionally, gains and
losses from investments that are either isolated or cannot be
expected to occur again with any predictability are excluded. The
Company independently calculates a non-GAAP adjusted tax rate to be
applied to the identified non-GAAP adjustments considering the
impact of discrete items on these adjustments and the
jurisdictional mix of the adjustments. In addition, the tax impact
of other discrete and non-recurring charges which impact our
reported GAAP tax rate are adjusted from net earnings. We believe
these tax items can significantly affect the period-over-period
assessment of operating results and not necessarily reflect costs
and/or income associated with historical trends and future
results.
Investors are encouraged to review the reconciliations of
adjusted financial measures used in this press release to their
most directly comparable GAAP financial measures as provided with
the financial statements attached to this press release.
Forward Looking Statements:
Our press releases may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act. Such
statements 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 effect of new branding and marketing
initiatives, the integration of new businesses and leadership, the
introduction and acceptance of new products, the funding and focus
of the types of research by the Company's customers, the impact of
the growing number of producers of biotechnology research products
and related price competition, general economic conditions,
customer site closures or supply chain issues resulting from the
COVID-19 pandemic, 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
section titled "Risk Factors" in 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 our
press releases due to new information or future events. Investors
are cautioned not to place undue emphasis on these statements.
Bio-Techne Corporation (NASDAQ: TECH) is a global life sciences
company providing innovative tools and bioactive reagents for the
research and clinical diagnostic communities. Bio-Techne products
assist scientific investigations into biological processes and the
nature and progress of specific diseases. They aid in drug
discovery efforts and provide the means for accurate clinical tests
and diagnoses. With thousands of products in its portfolio,
Bio-Techne generated approximately $1.1
billion in net sales in fiscal 2023 and has approximately
3,200 employees worldwide. For more information on Bio-Techne and
its brands, please visit www.biotechne.com.
Contact:
|
David Clair, Vice
President, Investor Relations & Corporate
Development
|
|
David.Clair@bio-techne.com
|
|
612-656-4416
|
BIO-TECHNE
CORPORATION
|
CONSOLIDATED STATEMENTS
OF EARNINGS
|
(In thousands, except
per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUARTER
|
|
SIX MONTHS
|
|
|
ENDED
|
|
ENDED
|
|
|
12/31/2023
|
|
12/31/2022
|
|
12/31/2023
|
|
12/31/2022
|
Net Sales
|
|
$
|
272,598
|
|
$
|
271,581
|
|
$
|
549,533
|
|
$
|
541,236
|
Cost of
sales
|
|
|
96,011
|
|
|
88,221
|
|
|
187,755
|
|
|
178,280
|
Gross margin
|
|
|
176,587
|
|
|
183,360
|
|
|
361,778
|
|
|
362,956
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
115,667
|
|
|
93,010
|
|
|
220,998
|
|
|
192,386
|
Research and
development
|
|
|
22,916
|
|
|
22,459
|
|
|
46,914
|
|
|
46,362
|
Total Operating
Expenses
|
|
|
138,583
|
|
|
115,469
|
|
|
267,912
|
|
|
238,748
|
Operating
income
|
|
|
38,004
|
|
|
67,891
|
|
|
93,866
|
|
|
124,208
|
Other income
(expense)
|
|
|
(4,617)
|
|
|
(1,462)
|
|
|
(10,921)
|
|
|
45,938
|
Earnings before income
taxes
|
|
|
33,387
|
|
|
66,429
|
|
|
82,945
|
|
|
170,146
|
Income taxes
(benefit)
|
|
|
5,922
|
|
|
16,424
|
|
|
4,486
|
|
|
30,407
|
Net earnings, including
noncontrolling interest
|
|
$
|
27,465
|
|
$
|
50,005
|
|
$
|
78,459
|
|
$
|
139,739
|
Net earnings
attributable to noncontrolling interest
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
179
|
Net earnings
attributable to Bio-Techne
|
|
$
|
27,465
|
|
$
|
50,005
|
|
$
|
78,459
|
|
$
|
139,560
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.17
|
|
$
|
0.32
|
|
$
|
0.50
|
|
$
|
0.89
|
Diluted
|
|
$
|
0.17
|
|
$
|
0.31
|
|
$
|
0.49
|
|
$
|
0.86
|
Weighted average common
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
157,533
|
|
|
157,011
|
|
|
157,826
|
|
|
156,887
|
Diluted
|
|
|
160,060
|
|
|
161,750
|
|
|
161,001
|
|
|
161,766
|
BIO-TECHNE
CORPORATION
|
CONSOLIDATED CONDENSED
BALANCE SHEETS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
12/31/2023
|
|
6/30/2023
|
ASSETS
|
|
|
|
|
|
|
Cash and
equivalents
|
|
$
|
130,132
|
|
$
|
180,571
|
Short-term
available-for-sale investments
|
|
|
5,520
|
|
|
23,739
|
Accounts
receivable, net
|
|
|
207,451
|
|
|
218,468
|
Inventories
|
|
|
180,839
|
|
|
171,638
|
Current assets
held-for-sale
|
|
|
26,647
|
|
|
—
|
Other current
assets
|
|
|
40,051
|
|
|
27,066
|
Total current
assets
|
|
|
590,640
|
|
|
621,482
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
|
234,204
|
|
|
226,200
|
Right of use
asset
|
|
|
100,863
|
|
|
98,326
|
Goodwill and intangible
assets, net
|
|
|
1,530,687
|
|
|
1,407,382
|
Other assets
|
|
|
274,359
|
|
|
285,302
|
Total assets
|
|
$
|
2,730,753
|
|
$
|
2,638,692
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
81,668
|
|
$
|
77,306
|
Contract
liabilities
|
|
|
28,427
|
|
|
23,069
|
Income taxes
payable
|
|
|
6,646
|
|
|
12,022
|
Contingent
consideration payable
|
|
|
—
|
|
|
3,500
|
Operating
lease liabilities
- current
|
|
|
12,672
|
|
|
11,199
|
Current liabilities
held-for-sale
|
|
|
1,593
|
|
|
—
|
Other current
liabilities
|
|
|
4,225
|
|
|
1,413
|
Total current
liabilities
|
|
|
135,231
|
|
|
128,509
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
|
71,575
|
|
|
88,982
|
Long-term debt
obligations
|
|
|
447,000
|
|
|
350,000
|
Operating lease
liabilities
|
|
|
96,027
|
|
|
93,766
|
Other long-term
liabilities
|
|
|
17,361
|
|
|
10,919
|
Stockholders'
equity
|
|
|
1,963,559
|
|
|
1,966,516
|
Total liabilities and
stockholders' equity
|
|
$
|
2,730,753
|
|
$
|
2,638,692
|
BIO-TECHNE
CORPORATION
|
RECONCILIATION OF
ADJUSTED GROSS MARGIN PERCENTAGE
|
(Unaudited)
|
|
|
|
|
QUARTER
|
|
SIX MONTHS
|
|
|
ENDED
|
|
ENDED
|
|
|
12/31/2023
|
|
12/31/2022
|
|
12/31/2023
|
|
12/31/2022
|
Gross margin
percentage - GAAP
|
|
64.8
|
%
|
|
67.5
|
%
|
|
65.8
|
%
|
|
67.1
|
%
|
Identified
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs recognized upon
sale of acquired inventory
|
|
0.1
|
%
|
|
0.0
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
Amortization of
intangibles
|
|
4.3
|
%
|
|
4.1
|
%
|
|
4.3
|
%
|
|
4.1
|
%
|
Stock compensation
expense
|
|
0.1
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
Restructuring and
restructuring-related costs
|
|
0.4
|
%
|
|
—
|
%
|
|
0.2
|
%
|
|
—
|
%
|
Impact of
partially-owned consolidated subsidiaries1)
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
(0.1)
|
%
|
Gross margin percentage
- Adjusted
|
|
69.7
|
%
|
|
71.7
|
%
|
|
70.5
|
%
|
|
71.3
|
%
|
|
1) Includes
the quarterly results of the partially-owned consolidated
subsidiary prior to the sale of this partially-owned consolidated
subsidiary to a third party in the first fiscal quarter of
2023.
|
|
BIO-TECHNE
CORPORATION
|
RECONCILIATION OF
ADJUSTED OPERATING MARGIN PERCENTAGE
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUARTER
|
|
SIX MONTHS
|
|
|
ENDED
|
|
ENDED
|
|
|
12/31/2023
|
|
12/31/2022
|
|
12/31/2023
|
|
12/31/2022
|
Operating margin
percentage - GAAP
|
|
13.9
|
%
|
|
25.0
|
%
|
|
17.1
|
%
|
|
22.9
|
%
|
Identified
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs recognized upon
sale of acquired inventory
|
|
0.1
|
%
|
|
0.0
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
Amortization of
intangibles
|
|
7.3
|
%
|
|
7.0
|
%
|
|
7.2
|
%
|
|
7.1
|
%
|
Acquisition related
expenses and other
|
|
(0.2)
|
%
|
|
(3.0)
|
%
|
|
(0.2)
|
%
|
|
(1.3)
|
%
|
Stock-based
compensation, inclusive of employer taxes
|
|
4.8
|
%
|
|
6.2
|
%
|
|
4.4
|
%
|
|
6.0
|
%
|
Restructuring and
restructuring-related costs
|
|
2.0
|
%
|
|
0.3
|
%
|
|
1.0
|
%
|
|
0.5
|
%
|
Impairment of assets
held-for-sale
|
|
2.2
|
%
|
|
—
|
%
|
|
1.1
|
%
|
|
—
|
%
|
Impact of
partially-owned consolidated subsidiaries1)
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
(0.1)
|
%
|
Operating margin
percentage - Adjusted
|
|
30.1
|
%
|
|
35.5
|
%
|
|
30.7
|
%
|
|
35.2
|
%
|
|
1) Includes the quarterly results of
the partially-owned consolidated subsidiary prior to the sale of
this partially-owned consolidated subsidiary to a third party in
the first fiscal quarter of 2023. As disclosed in our use of
Non-GAAP Adjusted Financial Measures, the adjusted operating margin
percentages excludes partially-owned consolidated revenue and
expense amounts. Due to the sale of this partially-owned
consolidated subsidiary in the first fiscal quarter of 2023, there
was no impact on operating margin for quarter and six months ended
December 31, 2023 and the quarter ended December 31, 2022. The
excluded revenue and excluded operating (income)/loss attributable
to partially-owned consolidated subsidiaries had a 0.1% and
(0.2%) impact, respectively, on the operating margin for the first
six months of fiscal 2023.
|
BIO-TECHNE
CORPORATION
|
NON-GAAP ADJUSTED
CONSOLIDATED NET EARNINGS and EARNINGS per SHARE
|
(In thousands, except
per share data) (Unaudited)
|
|
|
|
|
QUARTER
|
SIX MONTHS
|
|
|
|
ENDED
|
ENDED
|
|
|
|
12/31/2023
|
|
12/31/2022
|
|
12/31/2023
|
|
12/31/2022
|
|
Net earnings before
taxes - GAAP
|
|
$
|
33,387
|
|
$
|
66,429
|
|
$
|
82,945
|
|
$
|
170,146
|
|
Identified adjustments
attributable to Bio-Techne:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs recognized upon
sale of acquired inventory
|
|
|
183
|
|
|
100
|
|
|
364
|
|
|
400
|
|
Amortization of
intangibles
|
|
|
19,769
|
|
|
19,125
|
|
|
39,620
|
|
|
38,408
|
|
Amortization of Wilson
Wolf intangible assets and acquired inventory
|
|
|
4,208
|
|
|
—
|
|
|
8,416
|
|
|
—
|
|
Acquisition related
expenses and other
|
|
|
(381)
|
|
|
(8,162)
|
|
|
(822)
|
|
|
(7,484)
|
|
Gain on sale of
partially-owned consolidated subsidiaries
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,682)
|
|
Stock-based
compensation, inclusive of employer taxes
|
|
|
12,958
|
|
|
16,878
|
|
|
24,453
|
|
|
32,336
|
|
Restructuring and
restructuring-related costs
|
|
|
5,518
|
|
|
780
|
|
|
5,607
|
|
|
2,950
|
|
Investment (gain) loss
and other non-operating
|
|
|
—
|
|
|
74
|
|
|
(283)
|
|
|
(38,013)
|
|
Impairment of assets
held-for-sale
|
|
|
6,038
|
|
|
—
|
|
|
6,038
|
|
|
—
|
|
Impact of
partially-owned consolidated subsidiaries1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(420)
|
|
Net earnings before
taxes - Adjusted1)
|
|
$
|
81,680
|
|
$
|
95,224
|
|
$
|
166,338
|
|
$
|
186,641
|
|
Non-GAAP tax
rate
|
|
|
22.0
|
%
|
|
21.0
|
%
|
|
22.0
|
%
|
|
21.0
|
%
|
Non-GAAP tax
expense
|
|
$
|
17,964
|
|
$
|
19,998
|
|
$
|
36,579
|
|
$
|
39,195
|
|
Non-GAAP adjusted net
earnings attributable to Bio-Techne1)
|
|
$
|
63,716
|
|
$
|
75,226
|
|
$
|
129,759
|
|
$
|
147,446
|
|
Earnings
per share - diluted - Adjusted1)
|
|
$
|
0.40
|
|
$
|
0.47
|
|
$
|
0.81
|
|
$
|
0.91
|
|
|
|
1)
|
Includes the quarterly
results of the partially-owned consolidated subsidiary prior to the
sale of this partially-owned consolidated subsidiary to a third
party in the first fiscal quarter of 2023.
|
|
|
BIO-TECHNE
CORPORATION
|
NON-GAAP adjusted tax
rate (In percentages)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUARTER
|
SIX MONTHS
|
|
|
ENDED
|
ENDED
|
|
|
12/31/2023
|
|
12/31/2022
|
12/31/2023
|
|
12/31/2022
|
GAAP effective tax
rate
|
|
17.7
|
%
|
|
24.7
|
%
|
5.4
|
%
|
|
17.9
|
%
|
Discrete
items
|
|
8.3
|
|
|
(7.0)
|
|
18.0
|
|
|
1.9
|
|
Impact of non-taxable
net gain
|
|
—
|
|
|
(0.2)
|
|
—
|
|
|
1.4
|
|
Annual forecast
update
|
|
(2.6)
|
|
|
3.7
|
|
—
|
|
|
—
|
|
Long-term GAAP tax
rate
|
|
23.4
|
%
|
|
21.2
|
%
|
23.4
|
%
|
|
21.2
|
%
|
Rate impact
items
|
|
|
|
|
|
|
|
|
|
|
|
Stock based
compensation
|
|
(2.1)
|
%
|
|
(2.0)
|
%
|
(2.4)
|
%
|
|
(2.5)
|
%
|
Other
|
|
0.7
|
|
|
1.8
|
|
1.0
|
|
|
2.3
|
|
Total rate impact
items
|
|
(1.4)
|
%
|
|
(0.2)
|
%
|
(1.4)
|
%
|
|
(0.2)
|
%
|
Non-GAAP adjusted tax
rate
|
|
22.0
|
%
|
|
21.0
|
%
|
22.0
|
%
|
|
21.0
|
%
|
BIO-TECHNE
CORPORATION
|
SEGMENT
REVENUE
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUARTER
|
|
SIX MONTHS
|
|
|
ENDED
|
|
ENDED
|
|
|
12/31/2023
|
|
12/31/2022
|
|
12/31/2023
|
|
12/31/2022
|
Protein Sciences
segment revenue
|
|
$
|
197,670
|
|
$
|
203,887
|
|
$
|
402,325
|
|
$
|
403,836
|
Diagnostics and
Genomics segment revenue
|
|
|
75,408
|
|
|
68,003
|
|
|
148,204
|
|
|
137,907
|
lntersegment
revenue
|
|
|
(480)
|
|
|
(309)
|
|
|
(996)
|
|
|
(507)
|
Consolidated
revenue
|
|
$
|
272,598
|
|
$
|
271,581
|
|
$
|
549,533
|
|
$
|
541,236
|
BIO-TECHNE
CORPORATION
|
SEGMENT OPERATING
INCOME
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUARTER
|
|
SIX MONTHS
|
|
|
ENDED
|
|
ENDED
|
|
|
12/31/2023
|
|
12/31/2022
|
|
12/31/2023
|
|
12/31/2022
|
Protein Sciences
segment operating income
|
|
$
|
79,586
|
|
$
|
89,336
|
|
$
|
167,947
|
|
$
|
175,278
|
Diagnostics and
Genomics segment operating income
|
|
|
4,556
|
|
|
8,296
|
|
|
5,082
|
|
|
16,934
|
Segment operating
income
|
|
|
84,142
|
|
|
97,632
|
|
|
173,029
|
|
|
192,212
|
Corporate general,
selling, and administrative
|
|
|
(2,197)
|
|
|
(1,165)
|
|
|
(4,195)
|
|
|
(2,567)
|
Adjusted operating
income
|
|
|
81,945
|
|
|
96,467
|
|
|
168,834
|
|
|
189,645
|
Cost recognized upon
sale of acquired inventory
|
|
|
(183)
|
|
|
(100)
|
|
|
(364)
|
|
|
(400)
|
Amortization of
intangibles
|
|
|
(19,769)
|
|
|
(19,125)
|
|
|
(39,620)
|
|
|
(38,408)
|
Acquisition related
expenses and other
|
|
|
525
|
|
|
8,307
|
|
|
1,114
|
|
|
8,010
|
Impact of
partially-owned consolidated subsidiaries1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
647
|
Stock-based
compensation, inclusive of employer taxes
|
|
|
(12,958)
|
|
|
(16,878)
|
|
|
(24,453)
|
|
|
(32,336)
|
Restructuring and
restructuring-related costs
|
|
|
(5,518)
|
|
|
(780)
|
|
|
(5,607)
|
|
|
(2,950)
|
Impairment of assets
held-for-sale
|
|
|
(6,038)
|
|
|
—
|
|
|
(6,038)
|
|
|
—
|
Operating
income
|
|
$
|
38,004
|
|
$
|
67,891
|
|
$
|
93,866
|
|
$
|
124,208
|
|
1) Includes the quarterly results of
the partially-owned consolidated subsidiary prior to the sale of
this partially-owned consolidated subsidiary to a third party in
the first fiscal quarter of 2023.
|
|
BIO-TECHNE
CORPORATION
|
RECONCILIATION OF GAAP
NET INCOME TO ADJUSTED EBITDA
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUARTER
|
SIX MONTHS
|
|
ENDED
|
ENDED
|
|
12/31/2023
|
|
12/31/2022
|
12/31/2023
|
|
12/31/2022
|
Net earnings
attributable to Bio-Techne
|
$
|
27,465
|
|
$
|
50,005
|
$
|
78,459
|
|
$
|
139,560
|
Net interest expense
(income)
|
|
3,513
|
|
|
1,388
|
|
7,516
|
|
|
4,745
|
Depreciation and
amortization
|
|
27,804
|
|
|
26,703
|
|
56,343
|
|
|
53,344
|
Income taxes
(benefit)
|
|
5,922
|
|
|
16,424
|
|
4,486
|
|
|
30,407
|
EBITDA attributable to
Bio-Techne
|
|
64,704
|
|
|
94,520
|
|
146,804
|
|
|
228,056
|
Costs recognized upon
sale of acquired inventory
|
|
183
|
|
|
100
|
|
364
|
|
|
400
|
Acquisition related
expenses and other
|
|
(381)
|
|
|
(8,162)
|
|
(822)
|
|
|
(7,484)
|
Amortization of Wilson
Wolf intangible assets and acquired inventory
|
|
4,208
|
|
|
—
|
|
8,416
|
|
|
—
|
Gain on sale of
partially-owned consolidated subsidiaries
|
|
—
|
|
|
—
|
|
—
|
|
|
(11,682)
|
Stock-based
compensation, inclusive of employer taxes
|
|
12,958
|
|
|
16,878
|
|
24,453
|
|
|
32,336
|
Restructuring and
restructuring-related costs
|
|
5,518
|
|
|
780
|
|
5,607
|
|
|
2,950
|
Investment (gain) loss
and other non-operating
|
|
—
|
|
|
74
|
|
(283)
|
|
|
(38,013)
|
Impairment of assets
held-for-sale
|
|
6,038
|
|
|
—
|
|
6,038
|
|
|
—
|
Impact of
partially-owned consolidated subsidiaries1)
|
|
—
|
|
|
—
|
|
—
|
|
|
(241)
|
Adjusted
EBITDA
|
$
|
93,228
|
|
$
|
104,190
|
$
|
190,577
|
|
$
|
206,322
|
|
|
1)
|
Net earnings
attributable to Bio-Techne excludes non-controlling interest
of approximately 43% of the GAAP net earnings or loss for Eminence.
To prevent double-counting the non-controlling interest component
within our Adjusted EBITDA calculation, the amount accounts for
both the non-controlling interest within the GAAP metric and the
impact of partially-owned consolidated subsidiaries within our
Non-GAAP adjusted consolidated net earnings table.
|
|
|
BIO-TECHNE
CORPORATION
|
CONDENSED CASH
FLOW
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
SIX MONTHS
|
|
|
ENDED
|
|
|
12/31/2023
|
|
12/31/2022
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net earnings
|
|
$
|
78,459
|
|
$
|
139,739
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
56,343
|
|
|
53,344
|
Costs recognized on
sale of acquired inventory
|
|
|
364
|
|
|
400
|
Deferred income
taxes
|
|
|
(22,314)
|
|
|
(6,365)
|
Stock-based
compensation expense
|
|
|
22,846
|
|
|
31,205
|
Gain on sale of CCXI
investment
|
|
|
—
|
|
|
(37,176)
|
Fair value adjustment
to available-for-sale investments
|
|
|
(283)
|
|
|
(839)
|
(Gain) loss on equity
method investment
|
|
|
4,295
|
|
|
—
|
Fair value adjustment
to contingent consideration payable
|
|
|
(3,500)
|
|
|
(8,600)
|
Gain on sale of
Eminence
|
|
|
—
|
|
|
(11,682)
|
Impairment of assets
held-for-sale
|
|
|
6,038
|
|
|
—
|
Other operating
activities
|
|
|
251
|
|
|
(39,561)
|
Net cash provided by
(used in) operating activities
|
|
|
142,499
|
|
|
120,465
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Proceeds from sale of
available-for-sale investments
|
|
|
23,759
|
|
|
26,509
|
Purchases of
available-for-sale investments
|
|
|
(5,526)
|
|
|
(20,500)
|
Proceeds from sale of
CCXI investment
|
|
|
—
|
|
|
73,219
|
Additions to property
and equipment
|
|
|
(28,456)
|
|
|
(15,665)
|
Acquisitions, net of
cash acquired
|
|
|
(169,707)
|
|
|
(101,184)
|
Distributions from
(Investments in) Wilson Wolf
|
|
|
2,149
|
|
|
—
|
Proceeds from sale of
Eminence
|
|
|
—
|
|
|
17,824
|
Net cash provided by
(used in) investing activities
|
|
|
(177,781)
|
|
|
(19,797)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
Cash
dividends
|
|
|
(25,213)
|
|
|
(25,106)
|
Proceeds from stock
option exercises
|
|
|
19,670
|
|
|
16,977
|
Long-term debt
activity, net
|
|
|
97,000
|
|
|
(56,000)
|
Re-purchases of common
stock
|
|
|
(80,042)
|
|
|
(19,562)
|
Taxes paid on RSUs and
net share settlements
|
|
|
(21,302)
|
|
|
(17,853)
|
Other financing
activity
|
|
|
—
|
|
|
(2,457)
|
Net cash provided by
(used in) financing activities
|
|
|
(9,887)
|
|
|
(104,001)
|
Effect of exchange rate
changes on cash and cash equivalents
|
|
|
(5,270)
|
|
|
(4,552)
|
Net increase (decrease)
in cash and cash equivalents
|
|
|
(50,439)
|
|
|
(7,885)
|
Cash and cash
equivalents at beginning of period
|
|
|
180,571
|
|
|
172,567
|
Cash and cash
equivalents at end of period
|
|
$
|
130,132
|
|
$
|
164,682
|
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SOURCE Bio-Techne Corporation