Bio-Rad Reports Fourth-Quarter and Full-Year 2021 Financial Results
Bio-Rad Laboratories reported Q4 2021 net sales of $732.8 million, down 7.2% year-over-year, with a gross margin of 54.7%. The Life Science segment saw a 23.8% sales decline primarily due to reduced COVID-19 demand, while Clinical Diagnostics rose by 12.6%. The company experienced a net loss of $1,573.7 million or $52.59 per diluted share, impacted by equity securities valuation changes. For full-year 2021, net sales increased 14.8% to $2.92 billion with a net income of $4.24 billion.
- Full-year net sales increased 14.8% to $2,922.5 million.
- Clinical Diagnostics segment sales rose 12.6% in Q4 2021.
- Non-GAAP net income for Q4 2021 was $97.0 million, or $3.21 per share.
- Q4 2021 net sales decreased by 7.2% compared to Q4 2020.
- Life Science segment sales dropped 23.8% in Q4 2021.
- Net loss for Q4 2021 was $1,573.7 million, significantly impacting diluted EPS.
Fourth-quarter 2021 net sales were
Life Science segment net sales for the fourth quarter were
Income from operations during the fourth quarter of 2021 was
Net loss for the fourth quarter of 2021 was
The effective tax rate for the fourth quarter of 2021 was 22.8 percent, compared to 22.2 percent for the same period in 2020. The effective tax rate reported in Q4 of 2021 was primarily affected by an unrealized loss in equity securities and the tax rate reported in Q4 of 2020 was primarily affected by an unrealized gain in equity securities.
“While year over year COVID-related sales declines cloud the picture, many of our markets in the life science segment are seeing continued strength from robust research and biopharma funding, while our clinical diagnostics business has benefited from a steady recovery from the pandemic. Like many others, supply chain constraints during the fourth quarter impacted our ability to fully meet customer demand,” said
GAAP Results |
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|
Q4 2021 |
Q4 2020 |
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Revenue (millions) |
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Gross margin |
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|
Operating margin |
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|
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Net (loss) income (millions) |
( |
|
|
(Loss) Income per diluted share |
( |
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|
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Non-GAAP Results |
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|
Q4 2021 |
Q4 2020 |
|
Revenue (millions) |
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|
|
Gross margin |
|
|
|
Operating margin |
|
|
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Net income (millions) |
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Income per diluted share |
|
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|
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 and debt securities; 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 currency neutral revenue for the fourth quarter of 2021 was
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 2021 was
The non-GAAP effective tax rate for the fourth quarter of 2021 was 20.3 percent, compared to 24.3 percent for the same period in 2020. The lower rate in 2021 was driven by the geographic mix of earnings.
The following table represents a reconciliation of Bio-Rad’s reported net income (loss) and diluted income (loss) per share to non-GAAP net income and non-GAAP diluted income per share for the three months and full year ended
(in thousands, except per share data) |
Three Months Ended
|
Year Ended
|
||||||
|
2021 |
2020 |
2021 |
2020 |
||||
GAAP net (loss) income |
( |
|
|
|
||||
Legal Settlements |
— |
(26,297) |
(28,619) |
(26,297) |
||||
Amortization of purchased intangibles |
6,498 |
7,032 |
27,530 |
27,289 |
||||
Legal matters |
874 |
6,313 |
16,375 |
16,708 |
||||
Acquisition related benefits |
— |
(3,323) |
(40) |
(4,160) |
||||
Restructuring (benefits) costs |
(3,510) |
(94) |
64,289 |
(921) |
||||
Valuation loss (gain) on equity-owned and debt securities |
2,152,505 |
(904,316) |
(4,926,248) |
(4,495,825) |
||||
Loss on equity-method investments |
1,615 |
2,072 |
7,194 |
4,706 |
||||
Other non-recurring items |
1,909 |
— |
1,909 |
(11,680) |
||||
Income tax effect on non-GAAP adjustments |
(489,188) |
200,524 |
1,064,912 |
1,001,155 |
||||
Non-GAAP net income |
|
|
|
|
||||
|
|
|
|
|
||||
GAAP diluted (loss) income per share |
( |
|
|
|
||||
Non-GAAP diluted income per share |
|
|
|
|
||||
Full Year 2021 Results
On a reported basis, net sales for the full year 2021 increased 14.8 percent to
Full-year gross margin was 56.1 percent, compared to 56.5 percent during the same period in 2020.
Net income for 2021 was
The effective tax rate in 2021 was 21.9 percent compared to 22.4 percent in 2020. The tax rate in 2021 and 2020 was affected by an unrealized gain in equity securities.
Non-GAAP currency neutral revenue for the full-year 2021 was
Non-GAAP net income for 2021 was
"We successfully managed through the pandemic environment and are pleased with our overall performance for 2021,”
2021 Full-Year Highlights
-
Full-year sales were
$2,922.5 million $2,545.6 million -
Year-to-date net income for 2021 was
$4,245.9 million $140.56 $3,806.3 million $126.20 -
The company implemented a strategy-driven restructuring program in
Europe to improve operating performance. - We expanded our quality controls portfolio with the introduction of a complete menu of independent Quality Control ready-to-use reagents – InteliQ – designed to increase workflow efficiency for high-volume labs.
- In June, Bio-Rad launched its PREvalence™ ddPCR® SARS-CoV-2 Wastewater Quantification Kit, a sensitive, accurate, and cost-effective tool used to detect SARS-CoV-2 in a community’s wastewater.
- In July, Bio-Rad announced a partnership with Seegene, Inc. for the clinical development and commercialization of infectious disease molecular diagnostic products for the U.S. market.
- In July, Bio-Rad and 10x Genomics, Inc. reached a final settlement to resolve long-running litigation. The settlement includes a global patent cross-license for patents held by both Bio-Rad and 10x Genomics, resolving outstanding issues in the field of single-cell genomics.
- In October, Bio-Rad acquired Dropworks who is developing a droplet-based digital PCR system that will provide an entry level digital PCR workflow for life science research and diagnostic applications.
-
In December, Bio-Rad announced the appointment of
Simon May as Executive Vice President and President of theLife Science Group . He will provide leadership and management of the overall strategy and business direction for the company'sLife Science Group .
2022 Financial Outlook
For the full year 2022, the company anticipates non-GAAP currency-neutral revenue growth of approximately 1.0 to 2.0 percent and an estimated non-GAAP operating margin of approximately 19.0 percent. Management will discuss this outlook in greater detail on the fourth-quarter and full-year 2021 financial results conference call.
“Looking ahead to 2022, we anticipate another year of progress, building on the operating efficiencies we achieved this year,”
Use of Non-GAAP Reporting and Currency-Neutral
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 and debt securities, 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 and valuation changes in equity-owned and debt securities and gains and losses on equity-method investments: we incur restructuring and impairment charges on individual or groups of employed assets and charges and benefits arising from valuation changes in equity-owned and debt securities 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.
Percentage sales growth in currency neutral amounts are calculated by translating prior period sales in each local currency using the current period’s monthly average foreign exchange rates for that currency and comparing that to current period sales.
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
Conference Call and Webcast
Management will discuss fourth-quarter and full-year ended
bio-rad.com. The webcast will be available for up to a year.
BIO-RAD and DROPLET DIGITAL PCR are trademarks of
About Bio-Rad
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; anticipating non-GAAP currency-neutral revenue growth of approximately 1.0 to 2.0 percent and an estimated non-GAAP operating margin of approximately 19.0 percent for the full year 2022; anticipating another year of progress in 2022 and building on the operating efficiencies we achieved in 2021; and believing that we are well positioned to build on our recent momentum as we continue to return to normalcy and execute our growth strategies. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, "anticipate," "estimate," "believe," "expect," "continue," "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 the duration, severity and impact of the COVID-19 pandemic, global economic conditions, supply chain issues, our ability to develop and market new or improved products, our ability to compete effectively, foreign currency exchange fluctuations, reductions in government funding or capital spending of our customers, international legal and regulatory risks, product quality and liability issues, our ability to integrate acquired companies, products or technologies into our company successfully, 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
SOURCE:
Condensed Consolidated Statements of Income (In thousands, except per share data) (Unaudited) |
||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
| Net sales | $ |
732,769 |
|
$ |
789,839 |
|
$ |
2,922,545 |
|
$ |
2,545,626 |
|
||||
| Cost of goods sold |
|
331,768 |
|
|
329,684 |
|
|
1,281,884 |
|
|
1,107,804 |
|
||||
| Gross profit |
|
401,001 |
|
|
460,155 |
|
|
1,640,661 |
|
|
1,437,822 |
|
||||
| Selling, general and administrative expense |
|
224,146 |
|
|
219,148 |
|
|
879,574 |
|
|
800,267 |
|
||||
| Research and development expense |
|
69,873 |
|
|
65,765 |
|
|
271,657 |
|
|
226,598 |
|
||||
| Income from operations |
|
106,982 |
|
|
175,242 |
|
|
489,430 |
|
|
410,957 |
|
||||
| Interest expense |
|
364 |
|
|
4,703 |
|
|
1,551 |
|
|
21,861 |
|
||||
| Foreign currency exchange losses (gains), net |
|
2,211 |
|
|
(707 |
) |
|
2,753 |
|
|
1,771 |
|
||||
| Change in fair market value of equity and debt securities |
|
2,152,505 |
|
|
(904,316 |
) |
|
(4,926,248 |
) |
|
(4,495,825 |
) |
||||
| Other income, net |
|
(10,043 |
) |
|
(2,971 |
) |
|
(26,775 |
) |
|
(24,488 |
) |
||||
| (Loss) income before income taxes |
|
(2,038,055 |
) |
|
1,078,533 |
|
|
5,438,149 |
|
|
4,907,638 |
|
||||
| Benefit from (provision for) income taxes |
|
464,396 |
|
|
(239,431 |
) |
|
(1,192,247 |
) |
|
(1,101,371 |
) |
||||
| Net (loss) income | $ |
(1,573,659 |
) |
$ |
839,102 |
|
$ |
4,245,902 |
|
$ |
3,806,267 |
|
||||
| Basic (loss) earnings per share: | ||||||||||||||||
| Net (loss) income per basic share | $ |
(52.59 |
) |
$ |
28.13 |
|
$ |
142.33 |
|
$ |
127.86 |
|
||||
| Weighted average common shares - basic |
|
29,922 |
|
|
29,833 |
|
|
29,831 |
|
|
29,768 |
|
||||
| Diluted (loss) earnings per share: | ||||||||||||||||
| Net (loss) income per diluted share | $ |
(52.59 |
) |
$ |
27.81 |
|
$ |
140.56 |
|
$ |
126.20 |
|
||||
| Weighted average common shares - diluted |
|
29,922 |
|
|
30,170 |
|
|
30,208 |
|
|
30,160 |
|
||||
| Note: As a result of the net loss for the three months ended |
||||||||||||||||
Condensed Consolidated Balance Sheets (In thousands) |
||||||
|
|
|||||
| (Unaudited) | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ |
470,783 |
$ |
662,205 |
||
| Short-term investments |
|
404,695 |
|
334,473 |
||
| Accounts receivable, net |
|
423,537 |
|
419,424 |
||
| Inventories, net |
|
572,239 |
|
622,253 |
||
| Other current assets |
|
117,834 |
|
101,480 |
||
| Total current assets |
|
1,989,088 |
|
2,139,835 |
||
| Property, plant and equipment, net |
|
490,952 |
|
491,371 |
||
| Operating lease right-of-use assets |
|
204,798 |
|
202,136 |
||
|
347,343 |
|
291,916 |
|||
| Purchased intangibles, net |
|
253,939 |
|
199,497 |
||
| Other investments |
|
14,387,006 |
|
9,561,140 |
||
| Other assets |
|
102,669 |
|
86,723 |
||
| Total assets | $ |
17,775,795 |
$ |
12,972,618 |
||
| Current liabilities: | ||||||
| Accounts payable, accrued payroll and employee benefits | $ |
418,927 |
$ |
362,326 |
||
| Current maturities of long-term debt |
|
489 |
|
1,798 |
||
| Income and other taxes payable |
|
46,299 |
|
57,335 |
||
| Other current liabilities |
|
215,223 |
|
210,077 |
||
| Total current liabilities |
|
680,938 |
|
631,536 |
||
| Long-term debt, net of current maturities |
|
10,514 |
|
12,258 |
||
| Other long-term liabilities |
|
3,417,209 |
|
2,448,884 |
||
| Total liabilities |
|
4,108,661 |
|
3,092,678 |
||
| Total stockholders' equity |
|
13,667,134 |
|
9,879,940 |
||
| Total liabilities and stockholders' equity | $ |
17,775,795 |
$ |
12,972,618 |
||
Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
||||||||
Year Ended
|
||||||||
2021 |
2020 |
|||||||
| Cash flows from operating activities: | ||||||||
| Cash received from customers | $ |
2,886,489 |
|
$ |
2,531,135 |
|
||
| Cash paid to suppliers and employees |
|
(2,140,882 |
) |
|
(1,886,988 |
) |
||
| Interest paid, net |
|
(2,251 |
) |
|
(21,639 |
) |
||
| Income tax payments, net |
|
(134,683 |
) |
|
(65,244 |
) |
||
| Other operating activities |
|
47,848 |
|
|
18,064 |
|
||
| Net cash provided by operating activities |
|
656,521 |
|
|
575,328 |
|
||
| Cash flows from investing activities: | ||||||||
| Payments for acquisitions |
|
(125,516 |
) |
|
(96,655 |
) |
||
| Other investing activities |
|
(658,922 |
) |
|
36,405 |
|
||
| Net cash used in investing activities |
|
(784,438 |
) |
|
(60,250 |
) |
||
| Cash flows from financing activities: | ||||||||
| Payments on long-term borrowings |
|
(3,020 |
) |
|
(426,938 |
) |
||
| Other financing activities |
|
(52,409 |
) |
|
(96,103 |
) |
||
| Net cash used in financing activities |
|
(55,429 |
) |
|
(523,041 |
) |
||
| Effect of foreign exchange rate changes on cash |
|
(12,636 |
) |
|
12,427 |
|
||
| Net (decrease) increase in cash, cash equivalents and restricted cash |
|
(195,982 |
) |
|
4,464 |
|
||
| Cash, cash equivalents and restricted cash at beginning of year |
|
667,115 |
|
|
662,651 |
|
||
| Cash, cash equivalents and restricted cash at end of year | $ |
471,133 |
|
$ |
667,115 |
|
||
| Reconciliation of net income to net cash provided by operating activities: | ||||||||
| Net income | $ |
4,245,902 |
|
$ |
3,806,267 |
|
||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization |
|
133,801 |
|
|
138,127 |
|
||
| Reduction in the carrying amount of right-of-use assets |
|
39,264 |
|
|
37,071 |
|
||
| Changes in working capital |
|
13,932 |
|
|
51,678 |
|
||
| Other |
|
(3,776,378 |
) |
|
(3,457,815 |
) |
||
| Net cash provided by operating activities | $ |
656,521 |
|
$ |
575,328 |
|
||
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 and debt securities; 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 Months Ended | Three Months Ended | Year Ended | Year Ended | |||||||||||||||||||||||||
| % of | % of | % of | % of | |||||||||||||||||||||||||
2021 |
revenue | 2020 |
revenue | 2021 |
revenue | 2020 |
revenue | |||||||||||||||||||||
| GAAP net sales | $ |
732,769 |
|
$ |
789,839 |
|
$ |
2,922,545 |
|
$ |
2,545,626 |
|
||||||||||||||||
| Legal settlements |
|
— |
|
|
(31,972 |
) |
|
(31,843 |
) |
|
(31,972 |
) |
||||||||||||||||
| Non-GAAP net sales | $ |
732,769 |
|
$ |
757,867 |
|
$ |
2,890,702 |
|
$ |
2,513,654 |
|
||||||||||||||||
| GAAP cost of goods sold | $ |
331,768 |
|
$ |
329,684 |
|
$ |
1,281,884 |
|
$ |
1,107,804 |
|
||||||||||||||||
| Amortization of purchased intangibles |
|
(4,659 |
) |
|
(4,622 |
) |
|
(18,562 |
) |
|
(18,322 |
) |
||||||||||||||||
| Legal settlements |
|
— |
|
|
(8,700 |
) |
|
(3,535 |
) |
|
(8,700 |
) |
||||||||||||||||
| Restructuring benefits (costs) |
|
112 |
|
|
198 |
|
|
(25,129 |
) |
|
1,903 |
|
||||||||||||||||
| Other non-recurring items (4) |
|
(274 |
) |
|
— |
|
|
(274 |
) |
|
— |
|
||||||||||||||||
| Non-GAAP cost of goods sold | $ |
326,947 |
|
$ |
316,560 |
|
$ |
1,234,384 |
|
$ |
1,082,685 |
|
||||||||||||||||
| GAAP gross profit | $ |
401,001 |
|
54.7 |
% |
$ |
460,155 |
|
58.3 |
% |
$ |
1,640,661 |
|
56.1 |
% |
$ |
1,437,822 |
|
56.5 |
% |
||||||||
| Amortization of purchased intangibles |
|
4,659 |
|
|
4,622 |
|
|
18,562 |
|
|
18,322 |
|
||||||||||||||||
| Legal settlements |
|
— |
|
|
(23,272 |
) |
|
(28,308 |
) |
|
(23,272 |
) |
||||||||||||||||
| Restructuring (benefits) costs |
|
(112 |
) |
|
(198 |
) |
|
25,129 |
|
|
(1,903 |
) |
||||||||||||||||
| Other non-recurring items (4) |
|
274 |
|
|
— |
|
|
274 |
|
|
— |
|
||||||||||||||||
| Non-GAAP gross profit | $ |
405,822 |
|
55.4 |
% |
$ |
441,307 |
|
58.2 |
% |
$ |
1,656,318 |
|
57.3 |
% |
$ |
1,430,969 |
|
56.9 |
% |
||||||||
| GAAP selling, general and administrative expense | $ |
224,146 |
|
$ |
219,148 |
|
$ |
879,574 |
|
$ |
800,267 |
|
||||||||||||||||
| Amortization of purchased intangibles |
|
(1,839 |
) |
|
(2,410 |
) |
|
(8,968 |
) |
|
(8,967 |
) |
||||||||||||||||
| Legal matters |
|
(874 |
) |
|
(6,313 |
) |
|
(16,375 |
) |
|
(16,708 |
) |
||||||||||||||||
| Acquisition related benefits (costs) (1) |
|
— |
|
|
3,323 |
|
|
40 |
|
|
4,160 |
|
||||||||||||||||
| Restructuring benefits (costs) |
|
1,367 |
|
|
(243 |
) |
|
(26,140 |
) |
|
(2,235 |
) |
||||||||||||||||
| Other non-recurring items (4) |
|
(1,635 |
) |
|
— |
|
|
(1,635 |
) |
|
— |
|
||||||||||||||||
| Non-GAAP selling, general and administrative expense | $ |
221,165 |
|
$ |
213,505 |
|
$ |
826,496 |
|
$ |
776,517 |
|
||||||||||||||||
| GAAP research and development expense | $ |
69,873 |
|
$ |
65,765 |
|
$ |
271,657 |
|
$ |
226,598 |
|
||||||||||||||||
| Restructuring benefits (costs) |
|
2,031 |
|
|
139 |
|
|
(13,020 |
) |
|
1,253 |
|
||||||||||||||||
| Non-GAAP research and development expense | $ |
71,904 |
|
$ |
65,904 |
|
$ |
258,637 |
|
$ |
227,851 |
|
||||||||||||||||
| GAAP income from operations | $ |
106,982 |
|
14.6 |
% |
$ |
175,242 |
|
22.2 |
% |
$ |
489,430 |
|
16.7 |
% |
$ |
410,957 |
|
16.1 |
% |
||||||||
| Legal settlements |
|
— |
|
|
(23,272 |
) |
|
(28,308 |
) |
|
(23,272 |
) |
||||||||||||||||
| Amortization of purchased intangibles |
|
6,498 |
|
|
7,032 |
|
|
27,530 |
|
|
27,289 |
|
||||||||||||||||
| Legal matters |
|
874 |
|
|
6,313 |
|
|
16,375 |
|
|
16,708 |
|
||||||||||||||||
| Acquisition related (benefits) costs (1) |
|
— |
|
|
(3,323 |
) |
|
(40 |
) |
|
(4,160 |
) |
||||||||||||||||
| Restructuring (benefits) costs |
|
(3,510 |
) |
|
(94 |
) |
|
64,289 |
|
|
(921 |
) |
||||||||||||||||
| Other non-recurring items (4) |
|
1,909 |
|
|
— |
|
|
1,909 |
|
|
— |
|
||||||||||||||||
| Non-GAAP income from operations | $ |
112,753 |
|
15.4 |
% |
$ |
161,898 |
|
21.4 |
% |
$ |
571,185 |
|
19.8 |
% |
$ |
426,601 |
|
17.0 |
% |
||||||||
| GAAP change in fair market value of equity and debt securities | $ |
2,152,505 |
|
$ |
(904,316 |
) |
$ |
(4,926,248 |
) |
$ |
(4,495,825 |
) |
||||||||||||||||
| Valuation (loss) gain on equity-owned and debt securities |
|
(2,152,505 |
) |
|
904,316 |
|
|
4,926,248 |
|
|
4,495,825 |
|
||||||||||||||||
| Non-GAAP change in fair market value of equity and debt securities | $ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
||||||||||||||||
| GAAP other (income) expense, net | $ |
(10,043 |
) |
$ |
(2,971 |
) |
$ |
(26,775 |
) |
$ |
(24,488 |
) |
||||||||||||||||
| (Loss) gain on equity-method investments |
|
(1,615 |
) |
|
(2,072 |
) |
|
(7,194 |
) |
|
(4,706 |
) |
||||||||||||||||
| Legal settlements |
|
— |
|
|
3,025 |
|
|
311 |
|
|
3,025 |
|
||||||||||||||||
| Other non-recurring items (3) |
|
— |
|
|
— |
|
|
— |
|
|
11,680 |
|
||||||||||||||||
| Non-GAAP other (income) expense, net | $ |
(11,658 |
) |
$ |
(2,018 |
) |
$ |
(33,658 |
) |
$ |
(14,489 |
) |
||||||||||||||||
| GAAP (loss) income before income taxes | $ |
(2,038,055 |
) |
$ |
1,078,533 |
|
$ |
5,438,149 |
|
$ |
4,907,638 |
|
||||||||||||||||
| Legal settlements |
|
— |
|
|
(26,297 |
) |
|
(28,619 |
) |
|
(26,297 |
) |
||||||||||||||||
| Amortization of purchased intangibles |
|
6,498 |
|
|
7,032 |
|
|
27,530 |
|
|
27,289 |
|
||||||||||||||||
| Legal matters |
|
874 |
|
|
6,313 |
|
|
16,375 |
|
|
16,708 |
|
||||||||||||||||
| Acquisition related (benefits) costs (1) |
|
— |
|
|
(3,323 |
) |
|
(40 |
) |
|
(4,160 |
) |
||||||||||||||||
| Restructuring (benefits) costs |
|
(3,510 |
) |
|
(94 |
) |
|
64,289 |
|
|
(921 |
) |
||||||||||||||||
| Valuation loss (gain) on equity-owned and debt securities |
|
2,152,505 |
|
|
(904,316 |
) |
|
(4,926,248 |
) |
|
(4,495,825 |
) |
||||||||||||||||
| Loss (gain) on equity-method investments |
|
1,615 |
|
|
2,072 |
|
|
7,194 |
|
|
4,706 |
|
||||||||||||||||
| Other non-recurring items (3) (4) |
|
1,909 |
|
|
— |
|
|
1,909 |
|
|
(11,680 |
) |
||||||||||||||||
| Non-GAAP income before income taxes | $ |
121,836 |
|
$ |
159,920 |
|
$ |
600,539 |
|
$ |
417,458 |
|
||||||||||||||||
| GAAP benefit from (provision for) income taxes | $ |
464,396 |
|
$ |
(239,431 |
) |
$ |
(1,192,247 |
) |
$ |
(1,101,371 |
) |
||||||||||||||||
| Income tax effect of non-GAAP adjustments (2) |
|
(489,188 |
) |
|
200,524 |
|
|
1,064,912 |
|
|
1,001,155 |
|
||||||||||||||||
| Non-GAAP provision for income taxes | $ |
(24,792 |
) |
$ |
(38,907 |
) |
$ |
(127,335 |
) |
$ |
(100,216 |
) |
||||||||||||||||
| GAAP net (loss) income | $ |
(1,573,659 |
) |
-214.8 |
% |
$ |
839,102 |
|
106.2 |
% |
$ |
4,245,902 |
|
145.3 |
% |
$ |
3,806,267 |
|
149.5 |
% |
||||||||
| Legal settlements |
|
— |
|
|
(26,297 |
) |
|
(28,619 |
) |
|
(26,297 |
) |
||||||||||||||||
| Amortization of purchased intangibles |
|
6,498 |
|
|
7,032 |
|
|
27,530 |
|
|
27,289 |
|
||||||||||||||||
| Legal matters |
|
874 |
|
|
6,313 |
|
|
16,375 |
|
|
16,708 |
|
||||||||||||||||
| Acquisition related (benefits) costs (1) |
|
— |
|
|
(3,323 |
) |
|
(40 |
) |
|
(4,160 |
) |
||||||||||||||||
| Restructuring (benefits) costs |
|
(3,510 |
) |
|
(94 |
) |
|
64,289 |
|
|
(921 |
) |
||||||||||||||||
| Valuation loss (gain) on equity-owned and debt securities |
|
2,152,505 |
|
|
(904,316 |
) |
|
(4,926,248 |
) |
|
(4,495,825 |
) |
||||||||||||||||
| Loss (gain) on equity-method investments |
|
1,615 |
|
|
2,072 |
|
|
7,194 |
|
|
4,706 |
|
||||||||||||||||
| Other non-recurring items (3) (4) |
|
1,909 |
|
|
— |
|
|
1,909 |
|
|
(11,680 |
) |
||||||||||||||||
| Income tax effect of non-GAAP adjustments (2) |
|
(489,188 |
) |
|
200,524 |
|
|
1,064,912 |
|
|
1,001,155 |
|
||||||||||||||||
| Non-GAAP net income | $ |
97,044 |
|
13.2 |
% |
$ |
121,013 |
|
16.0 |
% |
$ |
473,204 |
|
16.4 |
% |
$ |
317,242 |
|
12.6 |
% |
||||||||
| GAAP diluted (loss) income per share | $ |
(52.59 |
) |
$ |
27.81 |
|
$ |
140.56 |
|
$ |
126.20 |
|
||||||||||||||||
| Legal settlements |
|
— |
|
|
(0.87 |
) |
|
(0.95 |
) |
|
(0.87 |
) |
||||||||||||||||
| Amortization of purchased intangibles |
|
0.22 |
|
|
0.23 |
|
|
0.91 |
|
|
0.90 |
|
||||||||||||||||
| Legal matters |
|
0.03 |
|
|
0.21 |
|
|
0.54 |
|
|
0.55 |
|
||||||||||||||||
| Acquisition related (benefits) costs (1) |
|
— |
|
|
(0.11 |
) |
|
— |
|
|
(0.14 |
) |
||||||||||||||||
| Restructuring (benefits) costs |
|
(0.12 |
) |
|
— |
|
|
2.13 |
|
|
(0.03 |
) |
||||||||||||||||
| Valuation loss (gain) on equity-owned and debt securities |
|
71.24 |
|
|
(29.97 |
) |
|
(163.08 |
) |
|
(149.07 |
) |
||||||||||||||||
| Loss (gain) on equity-method investments |
|
0.05 |
|
|
0.07 |
|
|
0.24 |
|
|
0.16 |
|
||||||||||||||||
| Other non-recurring items (3) (4) |
|
0.06 |
|
|
— |
|
|
0.06 |
|
|
(0.39 |
) |
||||||||||||||||
| Income tax effect of non-GAAP adjustments (2) |
|
(16.19 |
) |
|
6.64 |
|
|
35.25 |
|
|
33.21 |
|
||||||||||||||||
| Add back anti-dilutive shares |
|
0.51 |
|
|
— |
|
|
— |
|
|
— |
|
||||||||||||||||
| Non-GAAP diluted income per share | $ |
3.21 |
|
$ |
4.01 |
|
$ |
15.66 |
|
$ |
10.52 |
|
||||||||||||||||
| GAAP diluted weighted average shares used in per share calculation |
|
29,922 |
|
|
30,170 |
|
|
30,208 |
|
|
30,160 |
|
||||||||||||||||
| Shares included in non-GAAP net income per share, but excluded from GAAP net loss per share as they would have been anti-dilutive |
|
291 |
|
|
— |
|
|
— |
|
|
— |
|
||||||||||||||||
| Non-GAAP diluted weighted average shares used in per share calculation |
|
30,213 |
|
|
30,170 |
|
|
30,208 |
|
|
30,160 |
|
||||||||||||||||
| Reconciliation of Net income to adjusted EBITDA: | ||||||||||||||||||||||||||||
| GAAP net (loss) income | $ |
(1,573,659 |
) |
-214.8 |
% |
$ |
839,102 |
|
106.2 |
% |
$ |
4,245,902 |
|
145.3 |
% |
$ |
3,806,267 |
|
149.5 |
% |
||||||||
| Interest expense |
|
364 |
|
|
4,703 |
|
|
1,551 |
|
|
21,861 |
|
||||||||||||||||
| (Benefit from) provision for income taxes |
|
(464,396 |
) |
|
239,431 |
|
|
1,192,247 |
|
|
1,101,371 |
|
||||||||||||||||
| Depreciation and amortization |
|
33,726 |
|
|
36,189 |
|
|
133,801 |
|
|
138,127 |
|
||||||||||||||||
| Foreign currency exchange losses (gains), net |
|
2,211 |
|
|
(707 |
) |
|
2,753 |
|
|
1,771 |
|
||||||||||||||||
| Other income, net |
|
(10,043 |
) |
|
(2,971 |
) |
|
(26,775 |
) |
|
(24,488 |
) |
||||||||||||||||
| Change in fair market value of equity and debt securities |
|
2,152,505 |
|
|
(904,316 |
) |
|
(4,926,248 |
) |
|
(4,495,825 |
) |
||||||||||||||||
| Dividend from |
|
— |
|
|
— |
|
|
18,991 |
|
|
8,922 |
|
||||||||||||||||
| Legal settlements (5) |
|
— |
|
|
(23,272 |
) |
|
(28,308 |
) |
|
(23,272 |
) |
||||||||||||||||
| Legal matters |
|
874 |
|
|
6,313 |
|
|
16,375 |
|
|
16,708 |
|
||||||||||||||||
| Acquisition related (benefits) costs (1) |
|
— |
|
|
(3,323 |
) |
|
(40 |
) |
|
(4,160 |
) |
||||||||||||||||
| Restructuring (benefits) costs |
|
(3,510 |
) |
|
(94 |
) |
|
64,289 |
|
|
(921 |
) |
||||||||||||||||
| Other non-recurring items (4) (6) |
|
1,909 |
|
|
— |
|
|
1,909 |
|
|
— |
|
||||||||||||||||
| Adjusted EBITDA | $ |
139,981 |
|
19.1 |
% |
$ |
191,055 |
|
25.2 |
% |
$ |
696,447 |
|
24.1 |
% |
$ |
546,361 |
|
21.7 |
% |
||||||||
| (1) Release of contingent consideration and other acquisition-related (benefits) expenses. | ||||||||||||||||||||||||||||
| (2) 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. | ||||||||||||||||||||||||||||
| (3) Gain on the sale of a division (2020). | ||||||||||||||||||||||||||||
| (4) Incremental costs to comply with the |
||||||||||||||||||||||||||||
| (5) Amount excludes interest income received in connection with legal settlements. | ||||||||||||||||||||||||||||
| (6) Amount excludes gain on the sale of a division in 2020. | ||||||||||||||||||||||||||||
2022 Financial Outlook
Forecasted non-GAAP operating margin excludes 86 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/20220210005440/en/
510-741-6104
ir@bio-rad.com
Source:
FAQ
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