Bio-Rad Reports Second-Quarter 2024 Financial Results
Bio-Rad Laboratories (NYSE: BIO and BIO.B) reported Q2 2024 financial results with total net sales of $638.5 million, a 6.3% decrease from Q2 2023. The Life Science segment saw a 16.5% decrease, while Clinical Diagnostics increased by 2.1%. Gross margin improved to 55.6% from 53.2% in Q2 2023. The company reported a net loss of $2,165.5 million, primarily due to changes in the fair market value of its Sartorius AG investment. Non-GAAP net income was $88.5 million, or $3.11 per diluted share. Bio-Rad updated its 2024 outlook, expecting a 2.5-4.0% revenue decline and a non-GAAP operating margin of 12.0-13.0%. The board authorized an additional $500 million for share repurchases.
Bio-Rad Laboratories (NYSE: BIO e BIO.B) ha riportato i risultati finanziari del secondo trimestre 2024 con un fatturato netto totale di 638,5 milioni di dollari, una diminuzione del 6,3% rispetto al secondo trimestre 2023. Il segmento Scienze della Vita ha registrato un calo del 16,5%, mentre i Diagnostici Clinici sono aumentati del 2,1%. Il margine lordo è migliorato al 55,6% rispetto al 53,2% del secondo trimestre 2023. L'azienda ha riportato una perdita netta di 2.165,5 milioni di dollari, principalmente a causa delle variazioni del valore di mercato equo del suo investimento in Sartorius AG. Il reddito netto non-GAAP è stato di 88,5 milioni di dollari, ovvero 3,11 dollari per azione diluita. Bio-Rad ha aggiornato le sue previsioni per il 2024, aspettandosi una diminuzione del fatturato del 2,5-4,0% e un margine operativo non-GAAP del 12,0-13,0%. Il consiglio di amministrazione ha autorizzato ulteriori 500 milioni di dollari per il riacquisto di azioni.
Bio-Rad Laboratories (NYSE: BIO y BIO.B) reportó los resultados financieros del segundo trimestre de 2024 con ventas netas totales de 638,5 millones de dólares, una disminución del 6,3% en comparación con el segundo trimestre de 2023. El segmento de Ciencias de la Vida vio una disminución del 16,5%, mientras que los Diagnósticos Clínicos aumentaron un 2,1%. El margen bruto mejoró al 55,6% desde el 53,2% en el segundo trimestre de 2023. La compañía reportó una pérdida neta de 2.165,5 millones de dólares, principalmente debido a cambios en el valor de mercado justo de su inversión en Sartorius AG. El ingreso neto no-GAAP fue de 88,5 millones de dólares, o 3,11 dólares por acción diluida. Bio-Rad actualizó sus proyecciones para 2024, esperando una disminución de ingresos del 2,5-4,0% y un margen operativo no-GAAP del 12,0-13,0%. La junta autorizó un adicional de 500 millones de dólares para la recompra de acciones.
Bio-Rad Laboratories (NYSE: BIO 및 BIO.B)는 2024년 2분기 재무 실적을 발표하였으며, 총 순매출은 6억 3,850만 달러로, 2023년 2분기 대비 6.3% 감소하였습니다. 생명 과학 부문은 16.5% 감소하였고, 임상 진단은 2.1% 증가하였습니다. 총 마진은 2023년 2분기의 53.2%에서 55.6%로 개선되었습니다. 회사는 21억 6,550만 달러의 순손실을 보고하였으며, 이는 주로 Sartorius AG 투자에 대한 공정 시장 가치 변동 때문입니다. 비-GAAP 순이익은 8,850만 달러, 즉 희석 주당 3.11달러였습니다. Bio-Rad는 2024년 전망을 업데이트하며 2.5-4.0%의 매출 감소와 비-GAAP 운영 마진을 12.0-13.0%로 예상하고 있습니다. 이사회는 추가 5억 달러의 자사주 매입을 승인했습니다.
Bio-Rad Laboratories (NYSE: BIO et BIO.B) a rapporté les résultats financiers du deuxième trimestre 2024 avec des ventes nettes totales de 638,5 millions de dollars, une baisse de 6,3 % par rapport au deuxième trimestre 2023. Le segment Sciences de la Vie a connu une diminution de 16,5 %, tandis que les Diagnostics Cliniques ont augmenté de 2,1 %. La marge brute a augmenté à 55,6 % contre 53,2 % au deuxième trimestre 2023. L'entreprise a déclaré une perte nette de 2,165.5 millions de dollars, principalement en raison des variations de la juste valeur de son investissement dans Sartorius AG. Le bénéfice net non-GAAP s'élevait à 88,5 millions de dollars, soit 3,11 dollars par action diluée. Bio-Rad a mis à jour ses prévisions pour 2024, s'attendant à une baisse des revenus de 2,5 à 4,0 % et à une marge opérationnelle non-GAAP de 12,0 à 13,0 %. Le conseil d'administration a autorisé un montant supplémentaire de 500 millions de dollars pour le rachat d'actions.
Bio-Rad Laboratories (NYSE: BIO und BIO.B) berichtete über die Finanzergebnisse des zweiten Quartals 2024 mit einem Gesamtumsatz von 638,5 Millionen US-Dollar, was einem Rückgang von 6,3 % im Vergleich zum zweiten Quartal 2023 entspricht. Der Geschäftsbereich Lebenswissenschaften verzeichnete einen Rückgang von 16,5 %, während die klinische Diagnostik um 2,1 % zunahm. Die Bruttomarge verbesserte sich von 53,2 % im zweiten Quartal 2023 auf 55,6 %. Das Unternehmen meldete einen Nettverlust von 2.165,5 Millionen US-Dollar, hauptsächlich aufgrund von Veränderungen des beizulegenden Zeitwerts seiner Sartorius AG-Investition. Der Non-GAAP-Nettoertrag betrug 88,5 Millionen US-Dollar, oder 3,11 US-Dollar pro verwässerter Aktie. Bio-Rad aktualisierte seinen Ausblick für 2024 und erwartet einen Umsatzrückgang von 2,5-4,0 % sowie eine Non-GAAP-Betriebsrendite von 12,0-13,0 %. Der Vorstand genehmigte zusätzlich 500 Millionen US-Dollar für Aktienrückkäufe.
- Gross margin improved to 55.6% from 53.2% in Q2 2023
- Clinical Diagnostics segment net sales increased by 2.1%
- Non-GAAP net income remained stable at $88.5 million
- Board authorized additional $500 million for share repurchases
- Total net sales decreased by 6.3% to $638.5 million
- Life Science segment net sales decreased by 16.5%
- Reported net loss of $2,165.5 million due to investment value changes
- Updated 2024 outlook expects 2.5-4.0% revenue decline
- Lowered non-GAAP operating margin forecast to 12.0-13.0%
Insights
Bio-Rad's Q2 2024 results paint a mixed picture, with some concerning trends but also signs of resilience. Total net sales decreased by 6.3% to
The company's gross margin improved to
On a non-GAAP basis, which excludes certain items, the company's performance appears more stable. Non-GAAP net income remained flat at
The updated full-year 2024 outlook is concerning, with Bio-Rad now expecting a non-GAAP revenue decline of 2.5% to 4.0% on a currency-neutral basis, compared to the previous estimate of 1.0% to 2.5% growth. This significant revision suggests ongoing challenges in the market environment.
The increase in the share repurchase program by
The Q2 results reveal significant market dynamics affecting Bio-Rad's performance. The Life Science segment, which saw a
Conversely, the Clinical Diagnostics segment showed resilience with a
The company's revised outlook, projecting a revenue decline instead of growth, indicates a more pessimistic view of market recovery. CEO Norman Schwartz's statement that they "expect a more modest pace of market recovery than originally anticipated" suggests that the challenges in the biotech and biopharma sectors may be more prolonged than initially thought.
Despite these headwinds, Bio-Rad's focus on "ongoing supply chain initiatives, core process improvements and cost control" demonstrates a proactive approach to margin improvement. This strategy could position the company well for improved profitability once market conditions stabilize.
The increased share repurchase authorization may also indicate that management views the current stock price as undervalued, given their long-term outlook for the company and the industry.
Bio-Rad's Q2 results and revised outlook present a complex picture for investors. The company is navigating a challenging environment, particularly in its Life Science segment, but showing resilience in other areas.
Key considerations for investors include:
- Market Dynamics: The weakness in biotech and biopharma end-markets is a significant concern. Investors should monitor industry trends and potential catalysts for recovery in these sectors.
- Margin Improvement: Despite revenue challenges, Bio-Rad's focus on operational efficiency is yielding results, as evidenced by improved gross and operating margins. This could position the company for strong profitability when market conditions improve.
- Segment Performance: The divergence between Life Science and Clinical Diagnostics segments highlights the importance of Bio-Rad's diversified portfolio. The growth in Clinical Diagnostics provides some stability amid challenges in Life Science.
- Valuation Impact: The substantial net loss due to the change in fair market value of the Sartorius AG investment is a non-operational factor but could impact the company's book value. Investors should focus more on operational performance and non-GAAP metrics.
- Capital Allocation: The increased share repurchase authorization signals management's confidence and could provide support for the stock price.
While the near-term outlook is challenging, Bio-Rad's strong market position, operational improvements and financial flexibility suggest potential for long-term value creation. Investors should closely monitor market recovery signs in the biotech and biopharma sectors, as well as the company's ability to maintain margin improvements and capitalize on growth opportunities in Clinical Diagnostics.
Second-quarter 2024 total net sales were
Life Science segment net sales for the second quarter were
Clinical Diagnostics segment net sales for the second quarter were
Second-quarter gross margin was 55.6 percent compared to 53.2 percent during the second quarter of 2023.
Income from operations during the second quarter of 2024 was
During the second quarter of 2024, the company recognized a change in the fair market value of its investment in Sartorius AG, which substantially contributed to a net loss of
The effective tax rate for the second quarter of 2024 was 22.3 percent, compared to 22.5 percent for the same period in 2023. The effective tax rate reported in these periods was primarily affected by the accounting treatment of equity securities.
“Our second quarter results were in line with expectations for topline revenue despite a challenging market environment,” said Norman Schwartz, Bio-Rad’s President and Chief Executive Officer. “We continue to experience constraints in biotech and biopharma customer spending and, as a result, expect a more modest pace of market recovery than originally anticipated. At the same time, ongoing supply chain initiatives, core process improvements, and cost control are positively impacting our margin profile. In addition, as our life science business rebounds, we are well positioned for further margin expansion.”
The non-GAAP financial measures discussed below exclude certain items detailed later in this press release under the heading “Use of Non-GAAP and Currency-Neutral Reporting.” A reconciliation between historical GAAP operating results and non-GAAP operating results is provided following the financial statements that are part of this press release.
Non-GAAP gross margin was 56.4 percent for the second quarter of 2024 compared to 54.4 percent during the second quarter of 2023.
Non-GAAP income from operations during the second quarter of 2024 was
Non-GAAP net income for the second quarter of 2024 was
The non-GAAP effective tax rate for the second quarter of 2024 was 23.4 percent, compared to 22.5 percent for the same period in 2023. The higher rate in 2024 was driven by geographical mix of earnings.
GAAP Results |
||||||
|
Q2 2024 |
Q2 2023 |
||||
Revenue (millions) |
$ |
638.5 |
|
$ |
681.1 |
|
Gross margin |
|
55.6 |
% |
|
53.2 |
% |
Operating margin |
|
15.9 |
% |
|
13.2 |
% |
Net loss (millions) |
$ |
(2,165.5 |
) |
$ |
(1,162.3 |
) |
Loss per diluted share |
$ |
(76.26 |
) |
$ |
(39.59 |
) |
|
||||||
Non-GAAP Results |
||||||
|
Q2 2024 |
Q2 2023 |
||||
Revenue (millions) |
$ |
638.5 |
|
$ |
681.1 |
|
Gross margin |
|
56.4 |
% |
|
54.4 |
% |
Operating margin |
|
16.8 |
% |
|
15.8 |
% |
Net income (millions) |
$ |
88.5 |
|
$ |
88.5 |
|
Income per diluted share |
$ |
3.11 |
|
$ |
3.00 |
|
Updated Full-Year 2024 Financial Outlook
Bio-Rad is updating its financial outlook for the full year 2024. The company currently expects its non-GAAP revenue to decline by approximately 2.5 to 4.0 percent on a currency-neutral basis compared to its previous estimate of 1.0 to 2.5 percent revenue growth. Bio-Rad also estimates a non-GAAP operating margin of about 12.0 to 13.0 percent versus the company’s prior estimate of approximately 13.5 to 14.0 percent.
Increase to 2023 Share Repurchase Program Authorization
On July 29, 2024, Bio-Rad's board of directors authorized increasing the amount available under the company's 2023 Share Repurchase Program to allow the company to repurchase up to an additional
Repurchases under the 2023 Share Repurchase Program may be made at management's discretion from time to time on the open market, through trading plans in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, or through privately negotiated transactions. The 2023 Share Repurchase Program has no time limit and may be suspended for periods or discontinued at any time.
Conference Call and Webcast
Management will discuss the company’s second quarter 2024 results and financial outlook in a conference call scheduled for 2 PM Pacific Time (5 PM Eastern Time) on August 1, 2024. To participate, dial 800-343-4849 within the
A live webcast of the conference call will also be available in the "Investor Relations" section of the company’s website under "Events & Presentations" at investors.bio-rad.com. A replay of the webcast will be available for up to a year.
Use of Non-GAAP and Currency-Neutral 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, gains and losses from change in fair market value of equity securities and loan receivable, 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 gains and losses from change in fair market value of equity securities and loan receivable, 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 gains and losses from change in fair market value of equity securities and loan receivable, and gains and losses (including impairments) 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
We do not provide a reconciliation of our non-GAAP financial expectations to expectations for the most comparable GAAP measure because the amount and timing of many future charges that impact these measures (such as amortization of future acquisition-related intangible assets, future acquisition-related expenses and benefits, future restructuring charges, future asset impairment charges, future valuation changes of equity-owned securities, future gains and losses on equity-method investments or future legal charges or benefits), which could be material, are variable, uncertain, or out of our control and therefore cannot be reasonably predicted without unreasonable effort, if at all.
BIO-RAD is a trademark of Bio-Rad Laboratories, Inc. in certain jurisdictions.
About Bio-Rad
Bio-Rad Laboratories, Inc. (NYSE: BIO and BIO.B) is a leader in developing, manufacturing, and marketing a broad range of products for the life science research and clinical diagnostics markets. Based in
Forward-Looking Statements
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; being well positioned for further margin expansion as our life science business rebounds; continuing to experience constraints in biotech and biopharma customer spending and, as a result, expecting a more modest pace of market recovery than originally anticipated; and for the full-year 2024: expecting non-GAAP revenue to decline by approximately 2.5 to 4.0 percent on a currency-neutral basis compared to its previous estimate of 1.0 to 2.5 percent revenue growth, and estimating a non-GAAP operating margin of about 12.0 to 13.0 percent versus the company’s prior estimate of approximately 13.5 to 14.0 percent. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, "expect,” "estimate," "continue," "believe," "anticipate," “target,” "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 reductions in government funding or capital spending of our customers, global economic and geopolitical conditions, the uncertain pace of the biopharma sector’s recovery, the challenging macroeconomic environment in
| Bio-Rad Laboratories, Inc. | |||||||||||||||
| Condensed Consolidated Statements of Income (Loss) | |||||||||||||||
| (In thousands, except per share data) | |||||||||||||||
| (Unaudited) | |||||||||||||||
Three Months Ended |
|
Six Months Ended |
|||||||||||||
June 30, |
|
June 30, |
|||||||||||||
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
| Net sales | $ |
638,476 |
|
$ |
681,110 |
|
$ |
1,249,296 |
|
$ |
1,357,954 |
|
|||
| Cost of goods sold |
|
283,357 |
|
|
318,627 |
|
|
568,211 |
|
|
633,054 |
|
|||
| Gross profit |
|
355,119 |
|
|
362,483 |
|
|
681,085 |
|
|
724,900 |
|
|||
| Selling, general and administrative expense |
|
194,719 |
|
|
207,824 |
|
|
409,602 |
|
|
433,377 |
|
|||
| Research and development expense |
|
58,904 |
|
|
65,042 |
|
|
125,279 |
|
|
139,993 |
|
|||
| Income from operations |
|
101,496 |
|
|
89,617 |
|
|
146,204 |
|
|
151,530 |
|
|||
| Interest expense |
|
12,264 |
|
|
12,343 |
|
|
24,541 |
|
|
24,680 |
|
|||
| Foreign currency exchange gains, net |
|
(1,699 |
) |
|
(1,253 |
) |
|
(3,653 |
) |
|
(3,600 |
) |
|||
| Losses from change in fair market value of equity securities and loan receivable |
|
2,895,355 |
|
|
1,595,442 |
|
|
2,473,178 |
|
|
1,612,967 |
|
|||
| Other income, net |
|
(18,143 |
) |
|
(16,488 |
) |
|
(52,659 |
) |
|
(66,919 |
) |
|||
| Loss before income taxes |
|
(2,786,281 |
) |
|
(1,500,427 |
) |
|
(2,295,203 |
) |
|
(1,415,598 |
) |
|||
| Benefit from income taxes |
|
620,795 |
|
|
338,176 |
|
|
513,633 |
|
|
322,309 |
|
|||
| Net loss | $ |
(2,165,486 |
) |
$ |
(1,162,251 |
) |
$ |
(1,781,570 |
) |
$ |
(1,093,289 |
) |
|||
| Basic and diluted loss per share: | |||||||||||||||
| Net loss per share | $ |
(76.26 |
) |
$ |
(39.59 |
) |
$ |
(62.61 |
) |
$ |
(37.09 |
) |
|||
| Weighted average common shares |
|
28,395 |
|
|
29,355 |
|
|
28,457 |
|
|
29,475 |
|
|||
|
Note: |
As a result of the net loss for the three and six months ended June 30, 2024 and 2023, |
| 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) | |||||
June 30, |
|
December 31, |
|||
2024 |
|
2023 |
|||
(Unaudited) |
|
|
|||
| Current assets: | |||||
| Cash and cash equivalents | $ |
406,913 |
$ |
403,815 |
|
| Short-term investments |
|
1,214,753 |
|
1,208,887 |
|
| Accounts receivable, net |
|
445,506 |
|
489,017 |
|
| Inventories, net |
|
803,693 |
|
780,517 |
|
| Other current assets |
|
185,389 |
|
166,094 |
|
| Total current assets |
|
3,056,254 |
|
3,048,330 |
|
| Property, plant and equipment, net |
|
533,767 |
|
529,007 |
|
| Operating lease right-of-use assets |
|
181,473 |
|
194,730 |
|
| Goodwill, net |
|
412,116 |
|
413,569 |
|
| Purchased intangibles, net |
|
307,093 |
|
320,514 |
|
| Other investments |
|
5,099,554 |
|
7,698,070 |
|
| Other assets |
|
98,189 |
|
94,850 |
|
| Total assets | $ |
9,688,446 |
$ |
12,299,070 |
|
| Current liabilities: | |||||
| Accounts payable, accrued payroll and employee benefits | $ |
259,153 |
$ |
284,554 |
|
| Current maturities of long-term debt |
|
483 |
|
486 |
|
| Income and other taxes payable |
|
35,896 |
|
35,759 |
|
| Other current liabilities |
|
191,429 |
|
202,000 |
|
| Total current liabilities |
|
486,961 |
|
522,799 |
|
| Long-term debt, net of current maturities |
|
1,199,724 |
|
1,199,052 |
|
| Other long-term liabilities |
|
1,222,974 |
|
1,836,086 |
|
| Total liabilities |
|
2,909,659 |
|
3,557,937 |
|
| Total stockholders' equity |
|
6,778,787 |
|
8,741,133 |
|
| Total liabilities and stockholders' equity | $ |
9,688,446 |
$ |
12,299,070 |
|
| Bio-Rad Laboratories, Inc. | |||||||
| Condensed Consolidated Statements of Cash Flows | |||||||
| (In thousands) | |||||||
| (Unaudited) | |||||||
Six Months Ended |
|||||||
June 30, |
|||||||
2024 |
|
2023 |
|||||
| Cash flows from operating activities: | |||||||
| Cash received from customers | $ |
1,265,453 |
|
$ |
1,360,206 |
|
|
| Cash paid to suppliers and employees |
|
(1,084,925 |
) |
|
(1,173,285 |
) |
|
| Interest paid, net |
|
(23,301 |
) |
|
(23,535 |
) |
|
| Income tax payments, net |
|
(52,172 |
) |
|
(31,556 |
) |
|
| Other operating activities |
|
62,383 |
|
|
64,355 |
|
|
| Net cash provided by operating activities |
|
167,438 |
|
|
196,185 |
|
|
| Cash flows from investing activities: | |||||||
| Payments for purchases of marketable securities and investments |
|
(654,541 |
) |
|
(341,522 |
) |
|
| Proceeds from sales and maturities of marketable securities and investments |
|
662,886 |
|
|
369,358 |
|
|
| Other investing activities |
|
(82,365 |
) |
|
(70,325 |
) |
|
| Net cash used in investing activities |
|
(74,020 |
) |
|
(42,489 |
) |
|
| Cash flows from financing activities: | |||||||
| Payments on long-term borrowings |
|
(236 |
) |
|
(231 |
) |
|
| Other financing activities |
|
(96,330 |
) |
|
(198,198 |
) |
|
| Net cash used in financing activities |
|
(96,566 |
) |
|
(198,429 |
) |
|
| Effect of foreign exchange rate changes on cash |
|
6,494 |
|
|
670 |
|
|
| Net increase (decrease) in cash, cash equivalents and restricted cash |
|
3,346 |
|
|
(44,063 |
) |
|
| Cash, cash equivalents and restricted cash at beginning of period |
|
404,369 |
|
|
434,544 |
|
|
| Cash, cash equivalents and restricted cash at end of period | $ |
407,715 |
|
$ |
390,481 |
|
|
| Reconciliation of net loss to net cash provided by operating activities: | |||||||
| Net loss | $ |
(1,781,570 |
) |
$ |
(1,093,289 |
) |
|
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
| Depreciation and amortization |
|
73,502 |
|
|
71,446 |
|
|
| Reduction in the carrying amount of right-of-use assets |
|
20,904 |
|
|
19,872 |
|
|
| Losses from change in fair market value of equity securities and loan receivable |
|
2,473,178 |
|
|
1,612,966 |
|
|
| Changes in working capital |
|
(71,637 |
) |
|
(56,568 |
) |
|
| Other |
|
(546,939 |
) |
|
(358,242 |
) |
|
| Net cash provided by operating activities | $ |
167,438 |
|
$ |
196,185 |
|
|
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; gains and losses from change in fair market value of equity securities and loan receivable; 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 | Six Months Ended | Six Months Ended | |||||||||||||||||||||
| June 30, | % of | June 30, | % of | June 30, | % of | June 30, | % of | |||||||||||||||||
|
2024 |
|
revenue |
|
2023 |
|
revenue |
|
2024 |
|
revenue |
|
2023 |
|
revenue | |||||||||
| GAAP cost of goods sold | $ |
283,357 |
|
$ |
318,627 |
|
$ |
568,211 |
|
$ |
633,054 |
|
||||||||||||
| Amortization of purchased intangibles |
|
(4,444 |
) |
|
(4,336 |
) |
|
(8,892 |
) |
|
(8,624 |
) |
||||||||||||
| Restructuring benefits (costs) |
|
(643 |
) |
|
(3,377 |
) |
|
(1,161 |
) |
|
(3,707 |
) |
||||||||||||
| Non-GAAP cost of goods sold | $ |
278,270 |
|
$ |
310,914 |
|
$ |
558,158 |
|
$ |
620,723 |
|
||||||||||||
| GAAP gross profit | $ |
355,119 |
|
|
$ |
362,483 |
|
|
$ |
681,085 |
|
|
$ |
724,900 |
|
|
||||||||
| Amortization of purchased intangibles |
|
4,444 |
|
|
4,336 |
|
|
8,892 |
|
|
8,624 |
|
||||||||||||
| Restructuring (benefits) costs |
|
643 |
|
|
3,377 |
|
|
1,161 |
|
|
3,707 |
|
||||||||||||
| Non-GAAP gross profit | $ |
360,206 |
|
|
$ |
370,196 |
|
|
$ |
691,138 |
|
|
$ |
737,231 |
|
|
||||||||
| GAAP selling, general and administrative expense | $ |
194,719 |
|
$ |
207,824 |
|
$ |
409,602 |
|
$ |
433,377 |
|
||||||||||||
| Amortization of purchased intangibles |
|
(817 |
) |
|
(1,611 |
) |
|
(1,861 |
) |
|
(3,302 |
) |
||||||||||||
| Acquisition related benefits (costs) |
|
- |
|
|
800 |
|
|
- |
|
|
- |
|
||||||||||||
| Restructuring benefits (costs) |
|
1,421 |
|
|
(6,328 |
) |
|
(3,006 |
) |
|
(15,316 |
) |
||||||||||||
| Other non-recurring items (2) |
|
(1,543 |
) |
|
(1,995 |
) |
|
(3,041 |
) |
|
(3,917 |
) |
||||||||||||
| Non-GAAP selling, general and administrative expense | $ |
193,780 |
|
$ |
198,690 |
|
$ |
401,694 |
|
$ |
410,842 |
|
||||||||||||
| GAAP research and development expense | $ |
58,904 |
|
$ |
65,042 |
|
$ |
125,279 |
|
$ |
139,993 |
|
||||||||||||
| Acquisition related benefits (costs) |
|
(200 |
) |
|
(400 |
) |
|
(400 |
) |
|
(400 |
) |
||||||||||||
| Restructuring benefits (costs) |
|
664 |
|
|
(1,080 |
) |
|
(1,500 |
) |
|
(5,315 |
) |
||||||||||||
| Non-GAAP research and development expense | $ |
59,368 |
|
$ |
63,562 |
|
$ |
123,379 |
|
$ |
134,278 |
|
||||||||||||
| GAAP income from operations | $ |
101,496 |
|
|
$ |
89,617 |
|
|
$ |
146,204 |
|
|
$ |
151,530 |
|
|
||||||||
| Amortization of purchased intangibles |
|
5,261 |
|
|
5,947 |
|
|
10,753 |
|
|
11,926 |
|
||||||||||||
| Acquisition related (benefits) costs |
|
200 |
|
|
(400 |
) |
|
400 |
|
|
400 |
|
||||||||||||
| Restructuring (benefits) costs |
|
(1,442 |
) |
|
10,785 |
|
|
5,667 |
|
|
24,338 |
|
||||||||||||
| Other non-recurring items (2) |
|
1,543 |
|
|
1,995 |
|
|
3,041 |
|
|
3,917 |
|
||||||||||||
| Non-GAAP income from operations | $ |
107,058 |
|
|
$ |
107,944 |
|
|
$ |
166,065 |
|
|
$ |
192,111 |
|
|
||||||||
| GAAP (gains) losses from change in fair market value of equity securities and loan receivable | $ |
2,895,355 |
|
$ |
1,595,442 |
|
$ |
2,473,178 |
|
$ |
1,612,967 |
|
||||||||||||
| Gains (losses) from change in fair market value of equity securities and loan receivable |
|
(2,895,355 |
) |
|
(1,595,442 |
) |
|
(2,473,178 |
) |
|
(1,612,967 |
) |
||||||||||||
| Non-GAAP (gains) losses from change in fair market value of equity securities and loan receivable | $ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
||||||||||||
| GAAP other (income) expense, net | $ |
(18,143 |
) |
$ |
(16,488 |
) |
$ |
(52,659 |
) |
$ |
(66,919 |
) |
||||||||||||
| Gains (losses) on equity-method investments |
|
(940 |
) |
|
(851 |
) |
|
(1,723 |
) |
|
(1,846 |
) |
||||||||||||
| Non-GAAP other (income) expense, net | $ |
(19,083 |
) |
$ |
(17,339 |
) |
$ |
(54,382 |
) |
$ |
(68,765 |
) |
||||||||||||
| GAAP loss before income taxes | $ |
(2,786,281 |
) |
$ |
(1,500,427 |
) |
$ |
(2,295,203 |
) |
$ |
(1,415,598 |
) |
||||||||||||
| Amortization of purchased intangibles |
|
5,261 |
|
|
5,947 |
|
|
10,753 |
|
|
11,926 |
|
||||||||||||
| Acquisition related (benefits) costs |
|
200 |
|
|
(400 |
) |
|
400 |
|
|
400 |
|
||||||||||||
| Restructuring (benefits) costs |
|
(1,442 |
) |
|
10,785 |
|
|
5,667 |
|
|
24,338 |
|
||||||||||||
| (Gains) losses from change in fair market value of equity securities and loan receivable |
|
2,895,355 |
|
|
1,595,442 |
|
|
2,473,178 |
|
|
1,612,967 |
|
||||||||||||
| (Gains) losses on equity-method investments |
|
940 |
|
|
851 |
|
|
1,723 |
|
|
1,846 |
|
||||||||||||
| Other non-recurring items (2) |
|
1,543 |
|
|
1,995 |
|
|
3,041 |
|
|
3,917 |
|
||||||||||||
| Non-GAAP income before income taxes | $ |
115,576 |
|
$ |
114,193 |
|
$ |
199,559 |
|
$ |
239,796 |
|
||||||||||||
| GAAP benefit from income taxes | $ |
620,795 |
|
$ |
338,176 |
|
$ |
513,633 |
|
$ |
322,309 |
|
||||||||||||
| Income tax effect of non-GAAP adjustments (1) |
|
(647,855 |
) |
|
(363,858 |
) |
|
(559,459 |
) |
|
(374,234 |
) |
||||||||||||
| Non-GAAP provision for income taxes | $ |
(27,060 |
) |
$ |
(25,682 |
) |
$ |
(45,826 |
) |
$ |
(51,925 |
) |
||||||||||||
| GAAP net loss | $ |
(2,165,486 |
) |
- |
$ |
(1,162,251 |
) |
- |
$ |
(1,781,570 |
) |
- |
$ |
(1,093,289 |
) |
- |
||||||||
| Amortization of purchased intangibles |
|
5,261 |
|
|
5,947 |
|
|
10,753 |
|
|
11,926 |
|
||||||||||||
| Acquisition related (benefits) costs |
|
200 |
|
|
(400 |
) |
|
400 |
|
|
400 |
|
||||||||||||
| Restructuring (benefits) costs |
|
(1,442 |
) |
|
10,785 |
|
|
5,667 |
|
|
24,338 |
|
||||||||||||
| (Gains) losses from change in fair market value of equity securities and loan receivable |
|
2,895,355 |
|
|
1,595,442 |
|
|
2,473,178 |
|
|
1,612,967 |
|
||||||||||||
| (Gains) losses on equity-method investments |
|
940 |
|
|
851 |
|
|
1,723 |
|
|
1,846 |
|
||||||||||||
| Other non-recurring items (2) |
|
1,543 |
|
|
1,995 |
|
|
3,041 |
|
|
3,917 |
|
||||||||||||
| Income tax effect of non-GAAP adjustments (1) |
|
(647,855 |
) |
|
(363,858 |
) |
|
(559,459 |
) |
|
(374,234 |
) |
||||||||||||
| Non-GAAP net income | $ |
88,516 |
|
|
$ |
88,511 |
|
|
$ |
153,733 |
|
|
$ |
187,871 |
|
|
||||||||
| GAAP diluted loss per share | $ |
(76.26 |
) |
$ |
(39.59 |
) |
$ |
(62.61 |
) |
$ |
(37.09 |
) |
||||||||||||
| Amortization of purchased intangibles |
|
0.19 |
|
|
0.20 |
|
|
0.38 |
|
|
0.40 |
|
||||||||||||
| Acquisition related (benefits) costs |
|
0.01 |
|
|
(0.01 |
) |
|
0.01 |
|
|
0.01 |
|
||||||||||||
| Restructuring (benefits) costs |
|
(0.05 |
) |
|
0.37 |
|
|
0.20 |
|
|
0.82 |
|
||||||||||||
| (Gains) losses from change in fair market value of equity securities and loan receivable |
|
101.88 |
|
|
54.10 |
|
|
86.84 |
|
|
54.46 |
|
||||||||||||
| (Gains) losses on equity-method investments |
|
0.03 |
|
|
0.03 |
|
|
0.06 |
|
|
0.06 |
|
||||||||||||
| Other non-recurring items (2) |
|
0.05 |
|
|
0.07 |
|
|
0.11 |
|
|
0.13 |
|
||||||||||||
| Income tax effect of non-GAAP adjustments (1) |
|
(22.80 |
) |
|
(12.35 |
) |
|
(19.64 |
) |
|
(12.63 |
) |
||||||||||||
| Add back anti-dilutive shares |
|
0.06 |
|
|
0.18 |
|
|
0.05 |
|
|
0.18 |
|
||||||||||||
| Non-GAAP diluted income per share | $ |
3.11 |
|
$ |
3.00 |
|
$ |
5.40 |
|
$ |
6.34 |
|
||||||||||||
| GAAP diluted weighted average shares used in per share calculation |
|
28,395 |
|
|
29,355 |
|
|
28,457 |
|
|
29,475 |
|
||||||||||||
| Shares included in non-GAAP net income per share, but excluded from GAAP net loss per share as they would have been anti-dilutive |
|
25 |
|
|
135 |
|
|
22 |
|
|
143 |
|
||||||||||||
| Non-GAAP diluted weighted average shares used in per share calculation |
|
28,420 |
|
|
29,490 |
|
|
28,479 |
|
|
29,618 |
|
||||||||||||
| Reconciliation of Net loss to adjusted EBITDA: | ||||||||||||||||||||||||
| GAAP net loss | $ |
(2,165,486 |
) |
- |
$ |
(1,162,251 |
) |
- |
$ |
(1,781,570 |
) |
- |
$ |
(1,093,289 |
) |
- |
||||||||
| Interest expense |
|
12,264 |
|
|
12,343 |
|
|
24,541 |
|
|
24,680 |
|
||||||||||||
| Benefit from income taxes |
|
(620,795 |
) |
|
(338,176 |
) |
|
(513,633 |
) |
|
(322,309 |
) |
||||||||||||
| Depreciation and amortization |
|
36,411 |
|
|
35,859 |
|
|
73,502 |
|
|
71,446 |
|
||||||||||||
| Foreign currency exchange gains, net |
|
(1,699 |
) |
|
(1,253 |
) |
|
(3,653 |
) |
|
(3,600 |
) |
||||||||||||
| Other income, net |
|
(18,143 |
) |
|
(16,488 |
) |
|
(52,659 |
) |
|
(66,919 |
) |
||||||||||||
| Losses from change in fair market value of equity securities and loan receivable |
|
2,895,355 |
|
|
1,595,442 |
|
|
2,473,178 |
|
|
1,612,967 |
|
||||||||||||
| Dividend from Sartorius AG |
|
- |
|
|
- |
|
|
17,930 |
|
|
34,766 |
|
||||||||||||
| Acquisition related (benefits) costs |
|
200 |
|
|
(400 |
) |
|
400 |
|
|
400 |
|
||||||||||||
| Restructuring (benefits) costs |
|
(1,442 |
) |
|
10,785 |
|
|
5,667 |
|
|
24,338 |
|
||||||||||||
| Other non-recurring items (2) |
|
1,543 |
|
|
1,995 |
|
|
3,041 |
|
|
3,917 |
|
||||||||||||
| Adjusted EBITDA | $ |
138,208 |
|
|
$ |
137,856 |
|
|
$ |
246,744 |
|
|
$ |
286,397 |
|
|
||||||||
(1) |
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. |
||
(2) |
Incremental costs to comply with the European Union's In Vitro Diagnostics Regulation ("IVDR") for previously approved products. |
2024 Financial Outlook
Forecasted non-GAAP operating margin excludes 89 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. We do not provide a reconciliation of our non-GAAP financial expectations to expectations for the most comparable GAAP measure because the amount and timing of many future charges that impact these measures (such as amortization of future acquisition-related intangible assets, future acquisition-related expenses and benefits, future restructuring charges, future asset impairment charges, future valuation changes of equity-owned securities, future gains and losses on equity-method investments or future legal charges or benefits), which could be material, are variable, uncertain, or out of our control and therefore cannot be reasonably predicted without unreasonable effort, if at all.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240801492841/en/
Investor Contact:
Edward Chung, Investor Relations
510-741-6104
ir@bio-rad.com
Media Contact:
Anna Gralinska, Corporate Communications
510-741-6643
cc@bio-rad.com
Source: Bio-Rad Laboratories, Inc.
FAQ
What were Bio-Rad's Q2 2024 total net sales?
How did Bio-Rad's Life Science segment perform in Q2 2024?
What was Bio-Rad's non-GAAP net income for Q2 2024?
How has Bio-Rad updated its 2024 financial outlook?
What action did Bio-Rad's board take regarding share repurchases?
