Bio-Rad Laboratories, Inc. (NYSE: BIO and BIOb), a global leader
of life science research and clinical diagnostic products, today
announced financial results for the fourth quarter and full year
ended December 31, 2019.
Fourth-quarter 2019 net sales were $624.4 million, an increase
of 1.2 percent compared to $616.8 million reported for the fourth
quarter of 2018. On a currency-neutral basis, quarterly sales
increased 2.3 percent compared to the same period in 2018.
Fourth-quarter gross margin was 52.9 percent compared to 53.9
percent during the fourth quarter in 2018. As previously disclosed,
we experienced a cyberattack on our network on December 5, 2019. We
immediately took affected systems offline as part of our
comprehensive response to contain the activity. We have since
resumed normal operations, although this occurrence did have an
impact on sales and operations during December 2019.
Life Science segment net sales for the fourth quarter were
$242.0 million, an increase of 1.0 percent compared to the same
period in 2018. On a currency-neutral basis, Life Science segment
sales increased by 1.8 percent compared to the same quarter in
2018. Currency-neutral sales growth was primarily driven by growth
of Process Media, Droplet Digital PCR and Food Safety products. On
a geographic view, the sales increase was due to growth in North
America and Europe.
Clinical Diagnostics segment net sales for the fourth quarter
were $379.0 million, an increase of 1.6 percent compared to the
same period in 2018. On a currency-neutral basis, net sales were up
2.8 percent compared to the same quarter last year.
Currency-neutral sales were primarily attributed to Diabetes,
Quality Controls, Autoimmune, and Blood Typing products. Sales
increase during the fourth quarter of 2019 was the result of growth
in Asia and the Americas.
Net income for the fourth quarter of 2019 was $553.5 million, or
$18.31 per share on a diluted basis, compared to a net loss of
($828.5) million, or ($27.73) per share on a diluted basis, during
the same period in 2018. Net income for the fourth quarter of 2019
was significantly and favorably impacted by the recognition on the
income statement of changes in the fair market value of equity
securities reflecting an increase in value of $646.0 million during
the fourth quarter of 2019, primarily related to our holdings of
Sartorius AG.
The effective tax rate for the fourth quarter of 2019 was 20.9
percent, compared to 20.4 percent for the same period in 2018.
“Aside from the impact of the cyberattack on our network in
December, sales performance for the fourth quarter reflected
continued momentum of many of our key life science and diagnostic
product lines,” said Norman Schwartz, Bio-Rad President and Chief
Executive Officer. “Looking back at the year, we are encouraged by
our overall performance, in particular, our core operating results
that provide us with good momentum toward continued topline growth
and reaching our long-term goals as we head into 2020.”
GAAP Results
Q4 2019
Q4 2018
Revenue (millions)
$624.4
$616.8
Gross margin
52.9%
53.9%
Operating margin
9.5%
(36.8%)
Net income (loss) (millions)
$553.5
($828.5)
Income (loss) per diluted share
$18.31
($27.73)
Non-GAAP Results
Q4 2019
Q4 2018
Gross margin
54.1%
55.4%
Operating margin
14.3%
14.3%
Net income (millions)
$70.0
$63.1
Income per diluted share
$2.32
$2.09
A reconciliation between GAAP operating
results and non-GAAP operating results is provided following the
financial statements that are part of this press release. Non-GAAP
adjustments include amortization of purchased intangibles;
acquisition-related expenses and benefits; restructuring,
impairment charges and valuation changes in equity-owned
investments; gains and losses on equity-method investments;
significant litigation charges or benefits and legal costs; and,
discrete income tax events and the income tax effect on these
non-GAAP adjustments.
Non-GAAP net income and non-GAAP diluted income per share
(non-GAAP EPS) are non-GAAP measures that exclude certain items
detailed later in this press release under the heading “Non-GAAP
Reporting.”
Non-GAAP net income for the fourth quarter of 2019 was $70.0
million, or $2.32 per share on a diluted basis, compared to $63.1
million, or $2.09 per share on a diluted basis, during the same
period in 2018. The non-GAAP effective tax rate for the fourth
quarter of 2019 was 17.7 percent, compared to 28.7 percent for the
same period in 2018. The lower rate in 2019 was largely driven by
favorable regulatory guidance relating to U.S. Tax reform issued in
the fourth quarter of 2019.
The following table represents a reconciliation of Bio-Rad’s
reported net income and diluted income per share to non-GAAP net
income and non-GAAP diluted income per share for the three months
and for the full year ended December 31, 2019 and 2018:
Three Months Ended December
31,
Year Ended December 31,
(in thousands, except per share data)
2019
2018
2019
2018
GAAP net income (loss)
$553,486
($828,529)
$1,758,675
$365,614
Amortization of purchased intangibles
6,663
6,016
23,153
26,195
Legal matters
2,248
10,143
6,841
23,352
Acquisition-related benefits
(2,849)
(127)
(10,611)
(2,989)
Restructuring costs
23,720
6,901
29,469
8,379
Goodwill and long-lived assets
impairment
-
292,513
-
292,513
Valuation (gain) loss on equity-owned
securities
(645,988)
814,109
(2,030,987)
(606,230)
Loss on equity-method investments
1,845
66
2,543
691
Other non-recurring items
-
-
(759)
(9,208)
Income tax effect on non-GAAP
adjustments
130,871
(238,042)
434,761
77,234
Non-GAAP net income
$69,996
$63,050
$213,085
$175,551
GAAP diluted income (loss) per
share
$18.31
($27.73)
$58.27
$12.10
Non-GAAP diluted income per share
$2.32
$2.09
$7.06
$5.81
Full Year 2019 Results
On a reported basis, net sales for the full year of 2019
increased 1.0 percent to $2,311.7 million compared to $2,289.4
million for the full year of 2018. On a currency-neutral basis, net
sales grew 3.3 percent. Full-year reported net sales for the Life
Science segment were $885.9 million, an increase of 2.8 percent
compared to 2018. On a currency-neutral basis sales increased 4.6
percent versus 2018. Full-year reported net sales for the Clinical
Diagnostics segment were $1,412.0 million, flat compared to 2018,
or an increase of 2.8 percent on a currency-neutral basis.
Full-year gross margin was 54.4 percent, compared to 53.4 percent
during the same period in 2018.
Net income for 2019 was $1,758.7 million, or $58.27 per share on
a fully diluted basis, compared to $365.6 million, or $12.10 per
share, respectively, during the same period in 2018. This
significant increase was primarily due to the change in fair market
value of our equity securities in 2019 primarily related to our
holdings of Sartorius AG.
The effective tax rate in 2019 was 22.2 percent compared to 28.7
percent in 2018. The tax rate in 2019 and 2018 was driven by the
large unrealized gain in equity securities. The rate in 2018 was
also impacted by our accounting for U.S. Tax reform and
non-deductible goodwill impairment.
2019 Full-Year
Highlights
- Full-year sales were $2,311.7 million compared to $2,289.4
million for the full year of 2018. After normalizing for the impact
of currency, full-year sales increased 3.3 percent.
- Year-to-date net income for 2019 was $1,758.7 million, or
$58.27 per share on a fully diluted basis, compared to $365.6
million, or $12.10 per share, respectively, during the same period
in 2018.
- In February, Bio-Rad’s QXDx AutoDG ddPCR System and QXDx
BCR-ABL %IS Kit were the industry’s first digital PCR products to
receive U.S. Food and Drug Administration (FDA) clearance. The
system uses Bio-Rad's Droplet Digital PCR (ddPCR) technology to
monitor and quantitate the molecular response of chronic myeloid
leukemia patients undergoing tyrosine kinase inhibitor
therapy.
- During the second quarter, Bio-Rad announced the launch of an
innovative test to aid in the diagnosis of Lyme disease with the
FDA clearance of its BioPlex 2200 Lyme Total Assay. Also during the
second quarter, Bio-Rad’s IH-500 automated random access system for
blood typing and screening, received FDA 510(k) clearance.
- In April, Bio-Rad named Ilan Daskal as Executive Vice President
and Chief Financial Officer and Andrew Last as Executive Vice
President and Chief Operating Officer.
- In June, Bio-Rad announced the launch of its scATAC-Seq
solution, a single-cell assay for transposase-accessible chromatin
using sequencing, offering high capture efficiency and sensitivity
for profiling of gene regulation of individual human cells.
- In August, Bio-Rad acquired Exact Diagnostics, a leading
provider of a broad range of molecular diagnostics controls. With
this acquisition, Bio-Rad expanded its line of quality control
products in the area of transplant, respiratory, virology,
microbiology, sexually transmitted infections, and vector-borne
diseases.
- In November, Bio-Rad installed its QX ONE Droplet Digital PCR
System at select customer labs prior to the official product
launch. The system automates the company’s Droplet Digital
technology into a single integrated instrument designed for drug
development and manufacturing quality control as well as other
highly critical testing environments.
2020 Financial Outlook
For the full year 2020, the company anticipates currency-neutral
revenue growth of approximately 4.5 to 5.25 percent and improved
profitability with an estimated non-GAAP operating margin of 13.8
to 14.3 percent. Management will discuss this outlook in greater
detail on the fourth-quarter and full-year 2019 financial results
conference call.
“Looking ahead to 2020, we expect another year of progress
driven by a combination of healthy markets, new products, and a
focus on operating efficiencies,” Mr. Schwartz said. “We continue
to pursue our goal of 20 percent adjusted EBITDA run rate by the
end of the year.”
Non-GAAP Reporting
In addition to the financial measures prepared in accordance
with generally accepted accounting principles (GAAP), we use
certain non-GAAP financial measures, including non-GAAP net income
and non-GAAP EPS, which exclude amortization of acquisition-related
intangible assets, certain acquisition-related expenses and
benefits, restructuring charges, asset impairment charges,
valuation changes of equity owned investments, gains and losses on
equity-method investments, and significant legal-related charges or
benefits and associated legal costs. Non-GAAP net income and
non-GAAP EPS also exclude certain other gains and losses that are
either isolated or cannot be expected to occur again with any
predictability, tax provisions/benefits related to the previous
items, and significant discrete tax events. We exclude the above
items because they are outside of our normal operations and/or, in
certain cases, are difficult to forecast accurately for future
periods.
We utilize a number of different financial measures, both GAAP
and non-GAAP, in analyzing and assessing the overall performance of
our business, in making operating decisions, forecasting and
planning for future periods, and determining payments under
compensation programs. We consider the use of the non-GAAP measures
to be helpful in assessing the performance of the ongoing operation
of our business. We believe that disclosing non-GAAP financial
measures provides useful supplemental data that, while not a
substitute for financial measures prepared in accordance with GAAP,
allows for greater transparency in the review of our financial and
operational performance. We also believe that disclosing non-GAAP
financial measures provides useful information to investors and
others in understanding and evaluating our operating results and
future prospects in the same manner as management and in comparing
financial results across accounting periods and to those of peer
companies. More specifically, management adjusts for the excluded
items for the following reasons:
Amortization of purchased intangible assets: we do not acquire
businesses and assets on a predictable cycle. The amount of
purchase price allocated to purchased intangible assets and the
term of amortization can vary significantly and are unique to each
acquisition or purchase. We believe that excluding amortization of
purchased intangible assets allows the users of our financial
statements to better review and understand the historic and current
results of our operations, and also facilitates comparisons to peer
companies.
Acquisition-related expenses and benefits: we incur expenses or
benefits with respect to certain items associated with our
acquisitions such as transaction costs; professional fees for
assistance with the transaction; valuation or integration costs;
changes in the fair value of contingent consideration; gain or loss
on settlement of pre-existing relationships with the acquired
entity; or adjustments to purchase price. We exclude such expenses
or benefits as they are related to acquisitions and have no direct
correlation to the operation of our on-going business.
Restructuring, impairment charges, valuation changes in equity
owned investments and gains and losses on equity-method
investments: we incur restructuring and impairment charges on
individual or groups of employed assets, charges and benefits
arising from valuation changes in equity owned investments and
gains and losses on equity-method investments, which arise from
unforeseen circumstances and/or often occur outside of the ordinary
course of our on-going business. Although these events are
reflected in our GAAP financials, these unique transactions may
limit the comparability of our on-going operations with prior and
future periods.
Significant litigation charges or benefits and legal costs: we
may incur charges or benefits as well as legal costs in connection
with litigation and other contingencies unrelated to our core
operations. We exclude these charges or benefits, when significant,
as well as legal costs associated with significant legal matters,
because we do not believe they are reflective of on-going business
and operating results.
Income tax expense: we estimate the tax effect of the excluded
items identified above to determine a non-GAAP annual effective tax
rate applied to the pretax amount in order to calculate the
non-GAAP provision for income taxes. We also adjust for items for
which the nature and/or tax jurisdiction requires the application
of a specific tax rate or treatment.
From time to time in the future, there may be other items
excluded if we believe that doing so is consistent with the goal of
providing useful information to investors and management.
There are limitations in using non-GAAP financial measures
because the non-GAAP financial measures are not prepared in
accordance with generally accepted accounting principles and may be
different from non-GAAP financial measures used by other companies.
The non-GAAP financial measures are limited in value because they
exclude certain items that may have a material impact on our
reported financial results. The presentation of this additional
information is not meant to be considered in isolation or as a
substitute for the directly comparable financial measures prepared
in accordance with GAAP in the United States. Investors should
review the reconciliation of the non-GAAP financial measures to
their most directly comparable GAAP financial measures as provided
in the tables accompanying this press release.
Conference Call and
Webcast
Management will discuss fourth quarter and full year ended
December 31, 2019 results in a conference call at 2 PM Pacific Time
(5 PM Eastern Time) February 13, 2020. Interested parties may
access the call at 855-779-9068 within the U.S. or 631-485-4862
outside the U.S., Conference ID: 1397614. You may also listen to
the conference call via a webcast that is available in the
"Investor Relations" section of our website under “Quarterly
Results” at www.bio-rad.com. The webcast will be available for up
to a year.
BIO-RAD, DDPCR, and DROPLET DIGITAL PCR are trademarks of
Bio-Rad Laboratories, Inc. in certain jurisdictions.
About Bio-Rad
Bio-Rad Laboratories, Inc. (NYSE: BIO and BIOb) is a global
leader in developing, manufacturing, and marketing a broad range of
innovative products for the life science research and clinical
diagnostic markets. With a focus on quality and customer service
for over 65 years, our products advance the discovery process and
improve healthcare. Our customers are university and research
institutions, hospitals, public health and commercial laboratories,
biotechnology, pharmaceutical, as well as applied laboratories that
include food safety and environmental quality. Founded in 1952,
Bio-Rad is based in Hercules, California, and has a global network
of operations with more than 8,000 employees worldwide. Bio-Rad had
revenues exceeding $2.3 billion in 2019. For more information,
please visit bio-rad.com.
This release may be deemed to contain certain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements include,
without limitation, statements we make regarding estimated future
financial performance or results, the growth of our business, sales
performance for the fourth quarter (aside from the impact of the
cyberattack on our network in December) reflecting continued
momentum of many of our key life science and diagnostic product
lines, our core operating results providing us with good momentum
toward continued topline growth and reaching our long-term goals as
we head into 2020, for the full year 2020 anticipating
currency-neutral revenue growth of approximately 4.5 to 5.0 percent
and improved profitability with an estimated non-GAAP operating
margin of 13.8 to 14.3 percent, expecting another year of progress
driven by a combination of healthy markets, new products, and a
focus on operating efficiencies, and continuing to pursue our goal
of 20 percent adjusted EBITDA run rate by the end of the year.
Forward-looking statements generally can be identified by the use
of forward-looking terminology such as, "anticipate," "estimate,"
"expect," "continue," "believe," "will," "project," "assume,"
"may," "intend," or similar expressions or the negative of those
terms or expressions, although not all forward-looking statements
contain these words. Such statements involve risks and
uncertainties, which could cause actual results to vary materially
from those expressed in or indicated by the forward-looking
statements. These risks and uncertainties include our ability to
develop and market new or improved products, our ability to compete
effectively, international legal and regulatory risks, risks
relating to breaches of our information systems, global economic
conditions, foreign currency exchange fluctuations, recent and
planned changes to our global organizational structure and
executive management team, product quality and liability issues,
reductions in government funding or capital spending of our
customers, our ability to integrate acquired companies, products or
technologies into our company successfully, supply chain issues,
changes in the healthcare industry, difficulties in implementing
our global enterprise resource planning system, and natural
disasters and other catastrophic events beyond our control. For
further information regarding the Company's risks and
uncertainties, please refer to the "Risk Factors" and "Management’s
Discussion and Analysis of Financial Condition and Results of
Operations" in the Company’s public reports filed with the
Securities and Exchange Commission (the "SEC"), including the
Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2018, its Quarterly Report on Form 10-Q for the fiscal
quarter ended September 30, 2019, and its Annual Report on Form
10-K for the fiscal year ended December 31, 2019 to be filed with
the SEC. The Company cautions you not to place undue reliance on
forward-looking statements, which reflect an analysis only and
speak only as of the date hereof. Bio-Rad Laboratories, Inc.
disclaims any obligation to update these forward-looking
statements.
Bio-Rad Laboratories, Inc. Condensed Consolidated
Statements of Income (In thousands, except per share
data) (Unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2019
2018
2019
2018
Net sales
$
624,428
$
616,847
$
2,311,659
$
2,289,415
Cost of goods sold
293,989
284,282
1,054,663
1,066,264
Gross profit
330,439
332,565
1,256,996
1,223,151
Selling, general and administrative expense
214,165
214,032
824,625
834,783
Research and development expense
57,069
53,074
202,710
199,196
Impairment losses on goodwill and long-lived assets
-
292,513
-
292,513
Income (loss) from operations
59,205
(227,054
)
229,661
(103,341
)
Interest expense
6,064
6,139
23,416
23,962
Foreign currency exchange (gains) losses, net
(1,166
)
950
2,245
2,861
Change in fair market value of equity securities
(645,988
)
814,109
(2,030,987
)
(606,230
)
Other (income) expense, net
865
(7,005
)
(26,094
)
(36,593
)
Income (loss) before income taxes
699,430
(1,041,247
)
2,261,081
512,659
(Provision for) benefit from income taxes
(145,944
)
212,718
(502,406
)
(147,045
)
Net income (loss)
$
553,486
$
(828,529
)
$
1,758,675
$
365,614
Basic earnings (loss) per share: Net income (loss) per basic
share
$
18.50
$
(27.73
)
$
58.93
$
12.25
Weighted average common shares - basic
29,924
29,878
29,843
29,836
Diluted earnings (loss) per share: Net income (loss) per
diluted share
$
18.31
$
(27.73
)
$
58.27
$
12.10
Weighted average common shares - diluted
30,221
29,878
30,184
30,228
Note:
As a result of the net loss for
the three months ended December 31, 2018, all potentially issuable
common shares have been excluded from the diluted shares used in
the computation of earnings per share as their effect was
anti-dilutive.
Bio-Rad Laboratories, Inc. Condensed Consolidated Balance
Sheets (In thousands) (Unaudited)
December 31,
December 31,
2019
2018
Current assets: Cash and cash equivalents
$
660,672
$
431,526
Short-term investments
459,533
418,830
Accounts receivable, net
392,672
392,443
Inventories, net
554,007
583,815
Other current assets
113,271
196,864
Total current assets
2,180,155
2,023,478
Property, plant and equipment, net
499,339
508,690
Operating lease right-of-use assets
201,868
-
Goodwill, net
264,131
219,770
Purchased intangibles, net
145,525
133,123
Other investments
4,638,205
2,655,709
Other assets
79,636
70,298
Total assets
$
8,008,859
$
5,611,068
Current liabilities: Accounts payable, accrued payroll and
employee benefits
$
287,098
$
265,960
Current maturities of long-term debt
426,172
493
Income and other taxes payable
36,285
56,188
Other current liabilities
155,940
128,154
Total current liabilities
905,495
450,795
Long-term debt, net of current maturities
13,579
438,937
Other long-term liabilities
1,334,728
701,005
Total liabilities
2,253,802
1,590,737
Total stockholders' equity
5,755,057
4,020,331
Total liabilities and stockholders' equity
$
8,008,859
$
5,611,068
Bio-Rad Laboratories, Inc. Condensed Consolidated
Statements of Cash Flows (In thousands) (Unaudited)
Year Ended
December 31,
2019
2018
Cash flows from operating activities: Cash received from
customers
$
2,311,925
$
2,326,310
Cash paid to suppliers and employees
(1,818,575
)
(1,989,685
)
Interest paid, net
(22,330
)
(22,703
)
Income tax payments, net
(45,081
)
(62,414
)
Other operating activities
31,958
33,986
Net cash provided by operating activities
457,897
285,494
Cash flows from investing activities: (Payments for)
proceeds from acquisitions
(79,386
)
266
Other investing activities
(129,503
)
(187,244
)
Net cash used in investing activities
(208,889
)
(186,978
)
Cash flows from financing activities: Payments on long-term
borrowings
(643
)
(2,961
)
Other financing activities
(22,115
)
(45,719
)
Net cash used in financing activities
(22,758
)
(48,680
)
Effect of foreign exchange rate changes on cash
2,237
(655
)
Net increase in cash, cash equivalents, and restricted cash
228,487
49,181
Cash, cash equivalents, and restricted cash at beginning of year
434,164
384,983
Cash, cash equivalents, and restricted cash at end of year
$
662,651
$
434,164
Reconciliation of net income to net cash provided by
operating activities: Net income
$
1,758,675
$
365,614
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization
134,238
138,088
Reduction in the carrying amount of right-of-use assets
40,339
-
Impairment losses on goodwill and long-lived assets
-
292,513
Changes in working capital
55,392
(34,945
)
Other
(1,530,747
)
(475,776
)
Net cash provided by operating activities
$
457,897
$
285,494
Bio-Rad Laboratories, Inc. Reconciliation of
GAAP financial measures to non-GAAP financial measures (In
thousands, except per share data) (Unaudited)
In addition to the financial measures prepared in accordance
with generally accepted accounting principles (GAAP), we use
certain non-GAAP financial measures, including non-GAAP net income
and non-GAAP diluted income per share (non-GAAP EPS), which exclude
amortization of acquisition-related intangible assets; certain
acquisition-related expenses and benefits; restructuring charges;
asset impairment charges; valuation changes of equity owned
investments; gains and losses on equity-method investments; and
significant legal-related charges or benefits and associated legal
costs. Non-GAAP net income and non-GAAP EPS also exclude certain
other gains and losses that are either isolated or cannot be
expected to occur again with any predictability, tax
provisions/benefits related to the previous items, and significant
discrete tax events. We exclude the above items because they are
outside of our normal operations and/or, in certain cases, are
difficult to forecast accurately for future periods.
We utilize a number of different financial measures, both GAAP
and non-GAAP, in analyzing and assessing the overall performance of
our business, in making operating decisions, forecasting and
planning for future periods, and determining payments under
compensation programs. We consider the use of the non-GAAP measures
to be helpful in assessing the performance of the ongoing operation
of our business. We believe that disclosing non-GAAP financial
measures provides useful supplemental data that, while not a
substitute for financial measures prepared in accordance with GAAP,
allows for greater transparency in the review of our financial and
operational performance. We also believe that disclosing non-GAAP
financial measures provides useful information to investors and
others in understanding and evaluating our operating results and
future prospects in the same manner as management and in comparing
financial results across accounting periods and to those of peer
companies.
Three MonthsEnded Three MonthsEnded Year Ended
Year Ended
December 31,
% of
December 31,
% of
December 31,
% of
December 31,
% of
2019
revenue
2018
revenue
2019
revenue
2018
revenue GAAP cost of goods sold
$
293,989
$
284,282
$
1,054,663
$
1,066,264
Amortization of purchased intangibles
(4,532
)
(4,239
)
(15,898
)
(18,491
)
Acquisition related benefits (costs) (1)
1,508
-
8,911
-
Restructuring benefits (costs)
(4,397
)
(5,144
)
(7,448
)
(7,028
)
Non-GAAP cost of goods sold
$
286,568
$
274,899
$
1,040,228
$
1,040,745
GAAP gross profit
$
330,439
52.9%
$
332,565
53.9%
$
1,256,996
54.4%
$
1,223,151
53.4%
Amortization of purchased intangibles
4,532
4,239
15,898
18,491
Acquisition related (benefits) costs (1)
(1,508
)
-
(8,911
)
-
Restructuring (benefits) costs
4,397
5,144
7,448
7,028
Non-GAAP gross profit
$
337,860
54.1%
$
341,948
55.4%
$
1,271,431
55.0%
$
1,248,670
54.5%
GAAP selling, general and administrative expense
$
214,165
$
214,032
$
824,625
$
834,783
Amortization of purchased intangibles
(2,131
)
(1,777
)
(7,255
)
(7,704
)
Legal matters
(2,248
)
(10,143
)
(6,841
)
(23,352
)
Acquisition related benefits (costs) (1)
1,341
127
1,700
3,501
Restructuring benefits (costs)
(13,200
)
(421
)
(16,002
)
(855
)
Non-GAAP selling, general and administrative expense
$
197,927
$
201,818
$
796,227
$
806,373
GAAP research and development expense
$
57,069
$
53,074
$
202,710
$
199,196
Acquisition related benefits (costs) (1)
-
-
-
(512
)
Restructuring benefits (costs)
(6,123
)
(1,336
)
(6,019
)
(496
)
Non-GAAP research and development expense
$
50,946
$
51,738
$
196,691
$
198,188
GAAP impairment losses on goodwill and long-lived
assets
$
-
$
292,513
$
-
$
292,513
Goodwill and long-lived assets impairment
-
(292,513
)
-
(292,513
)
Non-GAAP impairment losses on goodwill and long-lived assets
$
-
$
-
$
-
$
-
GAAP income (loss) from operations
$
59,205
9.5%
$
(227,054
)
-36.8%
$
229,661
9.9%
$
(103,341
)
-4.5%
Amortization of purchased intangibles
6,663
6,016
23,153
26,195
Legal matters
2,248
10,143
6,841
23,352
Acquisition related (benefits) costs (1)
(2,849
)
(127
)
(10,611
)
(2,989
)
Restructuring (benefits) costs
23,720
6,901
29,469
8,379
Goodwill and long-lived assets impairment
-
292,513
-
292,513
Non-GAAP income from operations
$
88,987
14.3%
$
88,392
14.3%
$
278,513
12.0%
$
244,109
10.7%
GAAP change in fair market value of equity securities
$
(645,988
)
$
814,109
$
(2,030,987
)
$
(606,230
)
Valuation (loss) gain on equity-owned securities
645,988
(814,109
)
2,030,987
606,230
Non-GAAP change in fair market value of equity securities
$
-
$
-
$
-
$
-
GAAP other (income) expense, net
$
865
$
(7,005
)
$
(26,094
)
$
(36,593
)
(Loss) gain on equity-method investments
(1,845
)
(66
)
(2,543
)
(691
)
Other non-recurring items (2)
-
-
759
9,208
Non-GAAP other (income) expense, net
$
(980
)
$
(7,071
)
$
(27,878
)
$
(28,076
)
GAAP income (loss) before income taxes
$
699,430
$
(1,041,247
)
$
2,261,081
$
512,659
Amortization of purchased intangibles
6,663
6,016
23,153
26,195
Legal matters
2,248
10,143
6,841
23,352
Acquisition related (benefits) costs (1)
(2,849
)
(127
)
(10,611
)
(2,989
)
Restructuring (benefits) costs
23,720
6,901
29,469
8,379
Goodwill and long-lived assets impairment
-
292,513
-
292,513
Valuation loss (gain) on equity-owned securities
(645,988
)
814,109
(2,030,987
)
(606,230
)
Loss (gain) on equity-method investments
1,845
66
2,543
691
Other non-recurring items (2)
-
-
(759
)
(9,208
)
Non-GAAP income before income taxes
$
85,069
$
88,374
$
280,730
$
245,362
GAAP (provision for) benefit from income taxes
$
(145,944
)
$
212,718
$
(502,406
)
$
(147,045
)
Income tax effect of non-GAAP adjustments (3)
130,871
(238,042
)
434,761
77,234
Non-GAAP provision for income taxes
$
(15,073
)
$
(25,324
)
$
(67,645
)
$
(69,811
)
GAAP net income (loss)
$
553,486
88.6%
$
(828,529
)
-134.3%
$
1,758,675
76.1%
$
365,614
16.0%
Amortization of purchased intangibles
6,663
6,016
23,153
26,195
Legal matters
2,248
10,143
6,841
23,352
Acquisition related (benefits) costs (1)
(2,849
)
(127
)
(10,611
)
(2,989
)
Restructuring (benefits) costs
23,720
6,901
29,469
8,379
Goodwill and long-lived assets impairment
-
292,513
-
292,513
Valuation loss (gain) on equity-owned securities
(645,988
)
814,109
(2,030,987
)
(606,230
)
Loss (gain) on equity-method investments
1,845
66
2,543
691
Other non-recurring items (2)
-
-
(759
)
(9,208
)
Income tax effect of non-GAAP adjustments (3)
130,871
(238,042
)
434,761
77,234
Non-GAAP net income
$
69,996
11.2%
$
63,050
10.2%
$
213,085
9.2%
$
175,551
7.7%
GAAP diluted income (loss) per share
$
18.31
$
(27.73
)
$
58.27
$
12.10
Amortization of purchased intangibles
0.22
0.20
0.77
0.87
Legal matters
0.07
0.34
0.23
0.77
Acquisition related (benefits) costs (1)
(0.09
)
-
(0.35
)
(0.10
)
Restructuring (benefits) costs
0.78
0.23
0.98
0.28
Goodwill and long-lived assets impairment
-
9.70
-
9.68
Valuation loss (gain) on equity-owned securities
(21.38
)
26.99
(67.29
)
(20.06
)
Loss (gain) on equity-method investments
0.06
-
0.08
0.02
Other non-recurring items (2)
-
-
(0.03
)
(0.30
)
Income tax effect of non-GAAP adjustments (3)
4.35
(7.90
)
14.40
2.55
Add back anti-dilutive shares
(0.00
)
0.26
-
-
Non-GAAP diluted income per share
$
2.32
$
2.09
$
7.06
$
5.81
GAAP diluted weighted average shares used in per share
calculation
30,221
29,878
30,184
30,228
Shares included in non-GAAP net income per share, but excluded from
GAAP net loss per share as they would have been anti-dilutive
-
287
-
-
Non-GAAP diluted weighted average shares used in per share
calculation
30,221
30,165
30,184
30,228
(1)
Release of contingent
consideration and other acquisition-related (benefits)
expenses.
(2)
Gain on the sale of a product
line (2018 and 2019), and gain on the sale of land (2018).
(3)
Excluded items identified in the
reconciliation schedule are tax effected by application of a
non-GAAP effective tax rate. The non-GAAP tax provision is adjusted
for items, the nature of which and/or tax jurisdiction requires the
application of a specific tax rate or treatment.
2020 Financial Outlook
Forecasted non-GAAP operating margin excludes 93 basis points
related to amortization of purchased intangibles. Forecasted
non-GAAP operating margin does not reflect future gains and charges
that are inherently difficult to predict and estimate due to their
unknown timing, effect and/or significance, such as foreign
currency fluctuations, future gains or losses associated with
certain legal matters, acquisitions and restructuring
activities.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200213005908/en/
Investor Contact: Bio-Rad Laboratories, Inc. Ilan Daskal,
Executive Vice President & Chief Financial Officer 510-724-7000
investor_relations@bio-rad.com
Press Contact: Bio-Rad Laboratories, Inc. Tina Cuccia,
Corporate Communications 510-724-7000 tina_cuccia@bio-rad.com
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