BIO Bio Rad Laboratories Inc

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 third quarter ended September 30, 2019.

Third-quarter 2019 net sales were $560.6 million, an increase of 2.8 percent compared to $545.1 million reported for the third quarter of 2018. On a currency-neutral basis, quarterly sales increased 4.5 percent compared to the same period in 2018, reflecting growth across the business. Third-quarter gross margin was 54.8 percent compared to 52.6 percent during the third quarter in 2018.

Life Science segment net sales for the third quarter were $215.7 million, an increase of 4.5 percent compared to the same period in 2018. On a currency-neutral basis, Life Science segment sales increased by 5.7 percent compared to the same quarter in 2018. Currency-neutral sales reflect growth of multiple product lines in the segment, driven by double-digit growth in Droplet Digital PCR and Food Safety products as well as good demand within Gene Expression and Western Blotting product lines. Sales during the third quarter of 2019 increased across all regions: the Americas, Europe and Asia.

Clinical Diagnostics segment net sales for the third quarter were $341.8 million, an increase of 2.4 percent compared to the same period in 2018. On a currency-neutral basis, net sales were up 4.3 percent compared to the same quarter last year. Currency-neutral sales from the third quarter reflected growth in Quality Control, Blood Typing, and Immunology product lines. On a geographic view, sales increased mainly in Asia and the Americas.

Third-quarter 2019 operating income was $57.5 million versus 2018 third-quarter operating income of $36.3 million.

Reported net income for the third quarter of 2019 was a net loss of $258.8 million, or ($8.68) per share on a diluted basis. This loss was negatively impacted by a decline of $390.6 million in the market value of equity securities that we hold, primarily related to our investment in Sartorius AG. Net income for the third quarter of 2018 was a net gain of $269.3 million, or $8.89 per share on a diluted basis, which included a gain of $318.0 million related to our investment holdings.

The effective tax rate for the third quarter of 2019 was 22.8 percent compared to 23.1 percent during the same quarter in 2018.

“We are pleased with our operating results for the third quarter, which show continued strength in many of our key life science and diagnostic product lines across most of our major geographies,” said Norman Schwartz, Bio-Rad President and Chief Executive Officer. “Our operating performance reflects continued improvement compared to 2018, providing us with good momentum as we head into the rest of the year.”

GAAP Results

 

Q3 2019

Q3 2018

Revenue (Millions)

$560.6

$545.1

Gross Margin

54.8%

52.6%

Operating Margin

10.2%

6.7%

Net (Loss) Income (Millions)

($258.8)

$269.3

(Loss) Income per Diluted Share

($8.68)

$8.89

 

Non-GAAP Results

 

Q3 2019

Q3 2018

Gross Margin

56.0%

53.5%

Operating Margin

12.0%

8.2%

Net Income (Millions)

$48.6

$27.6

Income per Diluted Share

$1.61

$0.91

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 third quarter of 2019 was $48.6 million, or $1.61 per share on a diluted basis, compared to $27.6 million, or $0.91 per share on a diluted basis, during the same period in 2018. The non-GAAP effective tax rate for the third quarter of 2019 was 25.5 percent compared to 31.9 percent for the same period in 2018.

The following table represents a reconciliation of Bio-Rad’s reported net (loss) income and diluted (loss) income per share to non-GAAP net income and non-GAAP diluted income per share for the three and nine months ended September 30, 2019 and 2018:

 

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands, except per share data)

2019

 

2018

 

2019

 

2018

 

GAAP net (loss) income

$(258,816)

 

$269,326

 

$1,205,189

 

$1,194,143

Amortization of purchased intangibles

5,809

 

6,529

 

16,490

 

20,179

Legal matters

(1,900)

 

4,420

 

4,593

 

13,209

Acquisition-related costs (benefits)

6

 

(2,756)

 

(7,762)

 

(2,862)

Restructuring costs (benefits)

5,928

 

(10)

 

5,749

 

1,478

Valuation loss (gain) on equity-owned securities

390,620

 

(318,007)

 

(1,384,999)

 

(1,420,339)

Loss on equity-method investments

37

 

222

 

698

 

625

Other non-recurring items

-

 

-

 

(759)

 

(9,208)

Income tax effect on non-GAAP adjustments

(93,040)

 

67,878

 

303,890

 

315,276

Non-GAAP net income

$48,644

 

$27,602

 

$143,089

 

$112,501

 

 

 

 

 

 

 

 

GAAP diluted (loss) income per share

$(8.68)

 

$8.89

 

$39.97

 

$39.50

Non-GAAP diluted income per share

$1.61

 

$0.91

 

$4.75

 

$3.72

On a reported basis, net sales for the first three quarters of 2019 increased 0.9 percent to $1,687.2 million compared to $1,672.6 million for the same period in 2018. On a currency-neutral basis, net sales grew 3.7 percent.

Year-to-date net income for 2019 was $1,205.2 million, or $39.97 per share on a fully diluted basis, compared to $1,194.1 million, or $39.50 per share, respectively, during the same period in 2018.

2019 Financial Outlook

For the full year 2019, the company is projecting currency-neutral revenue growth outlook of 4.0 to 4.5 percent with an estimated non-GAAP operating margin of 12.5 to 13.0 percent.

“As we head into the end of the year, we anticipate 2019 will be another year of growth in many of our key product areas, with broad contribution from most of our major geographies,” Mr. Schwartz said. “Our operating performance has rebounded nicely so far in 2019 and we expect more of the same for the remainder of the year, reflecting substantial improvement in operating profit over 2018.”

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, valuation costs, integration costs, changes in the fair value of contingent consideration liabilities, gain or expense on settlement of pre-existing relationships, and other professional or consulting fees. 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 third quarter ended September 30, 2019 results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) October 31, 2019. Interested parties may access the call at 855-779-9068 within the U.S. or 631-485-4862 outside the U.S., Conference ID: 1469320. 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.

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 $2.2 billion in 2018. For more information, please visit www.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, our operating results for the third quarter showing continued strength in many of our key life science and diagnostic product lines across most of our major geographies, our operating performance reflecting continued improvement compared to 2018, providing us with good momentum as we head into the rest of the year, anticipating 2019 will be another year of growth in many of our key product areas with broad contribution from most of our major geographies, expecting our operating performance to continue to rebound for the remainder of the year which will reflect substantial improvement in operating profit over 2018, and for the full year 2019 projecting currency-neutral revenue growth outlook of 4.0 to 4.5 percent with an estimated non-GAAP operating margin of 12.5 to 13.0 percent.. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, "anticipate," "expect," "project," "continue," "estimate," "believe," "will," "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, foreign currency exchange fluctuations, international legal and regulatory risks, global economic and geopolitical conditions, 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, 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, and its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 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 Nine Months Ended September 30, September 30,

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net sales

$

560,633

 

$

545,138

 

$

1,687,231

 

$

1,672,568

 

Cost of goods sold

 

253,607

 

 

258,422

 

 

760,674

 

 

781,982

 

Gross profit

 

307,026

 

 

286,716

 

 

926,557

 

 

890,586

 

  Selling, general and administrative expense

 

201,622

 

 

201,196

 

 

610,460

 

 

620,751

 

Research and development expense

 

47,944

 

 

49,245

 

 

145,641

 

 

146,122

 

Income from operations

 

57,460

 

 

36,275

 

 

170,456

 

 

123,713

 

  Interest expense

 

5,525

 

 

6,064

 

 

17,352

 

 

17,823

 

Foreign currency exchange losses, net

 

898

 

 

672

 

 

3,411

 

 

1,911

 

Change in fair market value of equity securities

 

390,620

 

 

(318,007

)

 

(1,384,999

)

 

(1,420,339

)

Other (income) expense, net

 

(4,367

)

 

(2,585

)

 

(26,959

)

 

(29,588

)

(Loss) income before income taxes

 

(335,216

)

 

350,131

 

 

1,561,651

 

 

1,553,906

 

  Benefit from (provision for) income taxes

 

76,400

 

 

(80,805

)

 

(356,462

)

 

(359,763

)

Net (loss) income

$

(258,816

)

$

269,326

 

$

1,205,189

 

$

1,194,143

 

  Basic (loss) earnings per share: Net (loss) income per basic share

$

(8.68

)

$

9.02

 

$

40.42

 

$

40.04

 

  Weighted average common shares - basic

 

29,831

 

 

29,863

 

 

29,815

 

 

29,822

 

  Diluted (loss) earnings per share: Net (loss) income per diluted share

$

(8.68

)

$

8.89

 

$

39.97

 

$

39.50

 

  Weighted average common shares - diluted

 

29,831

 

 

30,292

 

 

30,149

 

 

30,234

 

Note:

As a result of the net loss for the three months ended September 30, 2019, 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)     September 30, December 31,

2019

2018

(Unaudited) Current assets: Cash and cash equivalents

$

561,071

$

431,526

Short-term investments

 

423,737

 

418,830

Accounts receivable, net

 

356,025

 

392,443

Inventories, net

 

587,987

 

583,815

Other current assets

 

118,812

 

196,864

Total current assets

 

2,047,632

 

2,023,478

  Property, plant and equipment, net

 

495,876

 

508,690

Operating lease right-of-use assets

 

217,516

 

-

Goodwill, net

 

264,084

 

219,770

Purchased intangibles, net

 

146,965

 

133,123

Other investments

 

3,931,715

 

2,655,709

Other assets

 

73,328

 

70,298

Total assets

$

7,177,116

$

5,611,068

  Current liabilities: Accounts payable, accrued payroll and employee benefits

$

249,835

$

265,960

Current maturities of long-term debt

 

1,769

 

493

Income and other taxes payable

 

35,252

 

56,188

Other current liabilities

 

147,184

 

128,154

Total current liabilities

 

434,040

 

450,795

  Long-term debt, net of current maturities

 

437,808

 

438,937

Other long-term liabilities

 

1,174,076

 

701,005

Total liabilities

 

2,045,924

 

1,590,737

  Total stockholders' equity

 

5,131,192

 

4,020,331

Total liabilities and stockholders' equity

$

7,177,116

$

5,611,068

Bio-Rad Laboratories, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)   Nine Months Ended September 30,  

2019

2018

  Cash flows from operating activities: Cash received from customers

$ 1,716,486

$ 1,715,960

Cash paid to suppliers and employees

(1,392,653)

(1,494,794)

Interest paid, net

(11,381)

(11,721)

Income tax payments, net

(42,634)

(57,840)

Other operating activities

28,277

28,880

Net cash provided by operating activities

298,095

180,485

  Cash flows from investing activities: (Payments for) proceeds from acquisitions

(75,811)

266

Other investing activities

(71,882)

(132,433)

Net cash used in investing activities

(147,693)

(132,167)

  Cash flows from financing activities: Payments on long-term borrowings

(487)

(1,595)

Other financing activities

(17,488)

(82)

Net cash used in financing activities

(17,975)

(1,677)

  Effect of foreign exchange rate changes on cash

(3,239)

3,965

  Net increase in cash, cash equivalents, and restricted cash

129,188

50,606

Cash, cash equivalents, and restricted cash at beginning of period

434,164

384,983

Cash, cash equivalents, and restricted cash at end of period

$ 563,352

$ 435,589

    Reconciliation of net income to net cash provided by operating activities: Net income

$ 1,205,189

$ 1,194,143

Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization

99,757

103,509

Right-of-use asset amortization

31,108

-

Changes in working capital

8,861

(28,087)

Other

(1,046,820)

(1,089,080)

Net cash provided by operating activities

$ 298,095

$ 180,485

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 Nine MonthsEnded Nine MonthsEnded September 30, % of September 30, % of September 30, % of September 30, % of

2019

revenue

2018

revenue

2019

revenue

2018

revenue   GAAP cost of goods sold

$

253,607

 

$

258,422

 

$

760,674

 

$

781,982

 

Amortization of purchased intangibles

 

(3,944

)

 

(4,726

)

 

(11,366

)

 

(14,252

)

Acquisition related benefits (costs) (1)

 

-

 

 

-

 

 

7,403

 

 

-

 

Restructuring benefits (costs)

 

(3,243

)

 

(410

)

 

(3,051

)

 

(1,884

)

Non-GAAP cost of goods sold

$

246,420

 

$

253,286

 

$

753,660

 

$

765,846

 

  GAAP gross profit

$

307,026

 

54.8

%

$

286,716

 

52.6

%

$

926,557

 

54.9

%

$

890,586

 

53.2

%

Amortization of purchased intangibles

 

3,944

 

 

4,726

 

 

11,366

 

 

14,252

 

Acquisition related (benefits) costs (1)

 

-

 

 

-

 

 

(7,403

)

 

-

 

Restructuring (benefits) costs

 

3,243

 

 

410

 

 

3,051

 

 

1,884

 

Non-GAAP gross profit

$

314,213

 

56.0

%

$

291,852

 

53.5

%

$

933,571

 

55.3

%

$

906,722

 

54.2

%

  GAAP selling, general and administrative expense

$

201,622

 

$

201,196

 

$

610,460

 

$

620,751

 

Amortization of purchased intangibles

 

(1,865

)

 

(1,803

)

 

(5,124

)

 

(5,927

)

Legal matters

 

1,900

 

 

(4,420

)

 

(4,593

)

 

(13,209

)

Acquisition related benefits (costs) (1)

 

(6

)

 

2,756

 

 

359

 

 

3,374

 

Restructuring benefits (costs)

 

(2,662

)

 

(76

)

 

(2,802

)

 

(434

)

Non-GAAP selling, general and administrative expense

$

198,989

 

$

197,653

 

$

598,300

 

$

604,555

 

  GAAP research and development expense

$

47,944

 

$

49,245

 

$

145,641

 

$

146,122

 

Acquisition related benefits (costs) (1)

 

-

 

 

-

 

 

-

 

 

(512

)

Restructuring benefits (costs)

 

(23

)

 

496

 

 

104

 

 

840

 

Non-GAAP research and development expense

$

47,921

 

$

49,741

 

$

145,745

 

$

146,450

 

  GAAP income from operations

$

57,460

 

10.2

%

$

36,275

 

6.7

%

$

170,456

 

10.1

%

$

123,713

 

7.4

%

Amortization of purchased intangibles

 

5,809

 

 

6,529

 

 

16,490

 

 

20,179

 

Legal matters

 

(1,900

)

 

4,420

 

 

4,593

 

 

13,209

 

Acquisition related (benefits) costs (1)

 

6

 

 

(2,756

)

 

(7,762

)

 

(2,862

)

Restructuring (benefits) costs

 

5,928

 

 

(10

)

 

5,749

 

 

1,478

 

Non-GAAP income from operations

$

67,303

 

12.0

%

$

44,458

 

8.2

%

$

189,526

 

11.2

%

$

155,717

 

9.3

%

  GAAP change in fair market value of equity securities

$

390,620

 

$

(318,007

)

$

(1,384,999

)

$

(1,420,339

)

Valuation (loss) gain on equity-owned securities

 

(390,620

)

 

318,007

 

 

1,384,999

 

 

1,420,339

 

Non-GAAP change in fair market value of equity securities

$

-

 

$

-

 

$

-

 

$

-

 

  GAAP other (income) expense, net

$

(4,367

)

$

(2,585

)

$

(26,959

)

$

(29,588

)

(Loss) gain on equity-method investments

 

(37

)

 

(222

)

 

(698

)

 

(625

)

Other non-recurring items (2)

 

-

 

 

-

 

 

759

 

 

9,208

 

Non-GAAP other (income) expense, net

$

(4,404

)

$

(2,807

)

$

(26,898

)

$

(21,005

)

  GAAP (loss) income before income taxes

$

(335,216

)

$

350,131

 

$

1,561,651

 

$

1,553,906

 

Amortization of purchased intangibles

 

5,809

 

 

6,529

 

 

16,490

 

 

20,179

 

Legal matters

 

(1,900

)

 

4,420

 

 

4,593

 

 

13,209

 

Acquisition related (benefits) costs (1)

 

6

 

 

(2,756

)

 

(7,762

)

 

(2,862

)

Restructuring (benefits) costs

 

5,928

 

 

(10

)

 

5,749

 

 

1,478

 

Valuation loss (gain) on equity-owned securities

 

390,620

 

 

(318,007

)

 

(1,384,999

)

 

(1,420,339

)

Loss (gain) on equity-method investments

 

37

 

 

222

 

 

698

 

 

625

 

Other non-recurring items (2)

 

-

 

 

-

 

 

(759

)

 

(9,208

)

Non-GAAP income before income taxes

$

65,284

 

$

40,529

 

$

195,661

 

$

156,988

 

  GAAP benefit from (provision for) income taxes

$

76,400

 

$

(80,805

)

$

(356,462

)

$

(359,763

)

Income tax effect of non-GAAP adjustments (3)

 

(93,040

)

 

67,878

 

 

303,890

 

 

315,276

 

Non-GAAP provision for income taxes

$

(16,640

)

$

(12,927

)

$

(52,572

)

$

(44,487

)

  GAAP net (loss) income

$

(258,816

)

-46.2

%

$

269,326

 

49.4

%

$

1,205,189

 

71.4

%

$

1,194,143

 

71.4

%

Amortization of purchased intangibles

 

5,809

 

 

6,529

 

 

16,490

 

 

20,179

 

Legal matters

 

(1,900

)

 

4,420

 

 

4,593

 

 

13,209

 

Acquisition related (benefits) costs (1)

 

6

 

 

(2,756

)

 

(7,762

)

 

(2,862

)

Restructuring (benefits) costs

 

5,928

 

 

(10

)

 

5,749

 

 

1,478

 

Valuation loss (gain) on equity-owned securities

 

390,620

 

 

(318,007

)

 

(1,384,999

)

 

(1,420,339

)

Loss (gain) on equity-method investments

 

37

 

 

222

 

 

698

 

 

625

 

Other non-recurring items (2)

 

-

 

 

-

 

 

(759

)

 

(9,208

)

Income tax effect of non-GAAP adjustments (3)

 

(93,040

)

 

67,878

 

 

303,890

 

 

315,276

 

Non-GAAP net income

$

48,644

 

8.7

%

$

27,602

 

5.1

%

$

143,089

 

8.5

%

$

112,501

 

6.7

%

  GAAP diluted (loss) income per share

$

(8.68

)

$

8.89

 

$

39.97

 

$

39.50

 

Amortization of purchased intangibles

 

0.19

 

 

0.22

 

 

0.55

 

 

0.67

 

Legal matters

 

(0.06

)

 

0.15

 

 

0.15

 

 

0.44

 

Acquisition related (benefits) costs (1)

 

-

 

 

(0.09

)

 

(0.26

)

 

(0.09

)

Restructuring (benefits) costs

 

0.20

 

 

-

 

 

0.19

 

 

0.05

 

Valuation loss (gain) on equity-owned securities

 

12.94

 

 

(10.50

)

 

(45.94

)

 

(46.98

)

Loss (gain) on equity-method investments

 

-

 

 

0.01

 

 

0.02

 

 

0.02

 

Other non-recurring items (2)

 

-

 

 

-

 

 

(0.03

)

 

(0.30

)

Income tax effect of non-GAAP adjustments (3)

 

(3.09

)

 

2.23

 

 

10.10

 

 

10.41

 

Add back anti-dilutive shares

 

0.11

 

 

-

 

 

-

 

 

-

 

Non-GAAP diluted income per share

$

1.61

 

$

0.91

 

$

4.75

 

$

3.72

 

  GAAP diluted weighted average shares used in per share calculation

 

29,831

 

 

30,292

 

 

30,149

 

 

30,234

 

Shares included in non-GAAP net income per share, but excluded from GAAP net loss per share as they would have been anti-dilutive

 

358

 

 

-

 

 

-

 

 

-

 

Non-GAAP diluted weighted average shares used in per share calculation

 

30,189

 

 

30,292

 

 

30,149

 

 

30,234

 

(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.

2019 Financial Outlook

Forecasted non-GAAP operating margin excludes 110 basis points primarily 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/20191031005864/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