Bio-Rad Reports Third-Quarter 2024 Financial Results
Bio-Rad Laboratories reported Q3 2024 financial results with total net sales of $649.7 million, up 2.8% from Q3 2023. Clinical Diagnostics segment saw a 5.6% increase to $388.8 million, while Life Science segment decreased 1.0% to $260.9 million. The company's gross margin improved to 54.8% from 53.1%. Income from operations was $64.5 million, down from $90.9 million in Q3 2023. Net income significantly increased to $653.2 million ($23.34 per share), largely due to changes in fair market value of Sartorius AG investment. The company maintains its full-year 2024 outlook with expected non-GAAP revenue decline of 2.5-4.0% on a currency-neutral basis.
Bio-Rad Laboratories ha riportato i risultati finanziari del terzo trimestre 2024, con vendite nette totali di 649,7 milioni di dollari, in aumento del 2,8% rispetto al terzo trimestre 2023. Il segmento Diagnostica Clinica ha registrato un aumento del 5,6% a 388,8 milioni di dollari, mentre il segmento Scienze della Vita è diminuito dell'1,0% a 260,9 milioni di dollari. Il margine lordo dell'azienda è migliorato al 54,8% rispetto al 53,1%. Il reddito operativo è stato di 64,5 milioni di dollari, in calo rispetto ai 90,9 milioni di dollari del terzo trimestre 2023. L'utile netto è aumentato significativamente a 653,2 milioni di dollari (23,34 dollari per azione), principalmente a causa delle variazioni nel valore di mercato equo dell'investimento in Sartorius AG. L'azienda mantiene la sua previsione per l'intero anno 2024, con una prevista diminuzione dei ricavi non-GAAP del 2,5-4,0% su base neutrale rispetto ai cambi.
Bio-Rad Laboratories informó resultos financieros del tercer trimestre 2024 con ventas netas totales de 649,7 millones de dólares, un aumento del 2,8% en comparación con el tercer trimestre de 2023. El segmento de Diagnósticos Clínicos vio un aumento del 5,6% a 388,8 millones de dólares, mientras que el segmento de Ciencias de la Vida disminuyó un 1,0% a 260,9 millones de dólares. El margen bruto de la compañía mejoró al 54,8% desde el 53,1%. Los ingresos por operaciones fueron de 64,5 millones de dólares, una disminución desde los 90,9 millones de dólares en el tercer trimestre de 2023. El ingreso neto aumentó significativamente a 653,2 millones de dólares (23,34 dólares por acción), principalmente debido a cambios en el valor de mercado justo de la inversión en Sartorius AG. La compañía mantiene su perspectiva para el año completo 2024, con una esperada disminución de los ingresos no-GAAP del 2,5-4,0% en base neutral con respecto a divisas.
바이오래드 연구소(Bio-Rad Laboratories)는 2024년 3분기 재무 결과를 보고했으며, 총 순매출은 6억 4970만 달러로, 2023년 3분기 대비 2.8% 증가했습니다. 임상 진단 부문의 매출은 3억 8880만 달러로 5.6% 증가했으며, 생명 과학 부문은 2억 6090만 달러로 1.0% 감소했습니다. 회사의 총 이익률은 53.1%에서 54.8%로 개선되었습니다. 운영 소득은 6450만 달러로, 2023년 3분기의 9090만 달러에서 감소했습니다. 순이익은 6억 5320만 달러 (주당 23.34 달러)로 크게 증가했으며, 이는 주로 Sartorius AG 투자에 대한 공정 시장 가치 변화 때문입니다. 회사는 2024년 전체 전망을 유지하며, 통화 중립 기준으로 예상되는 비-GAAP 수익 감소는 2.5%-4.0%입니다.
Bio-Rad Laboratories a annoncé les résultats financiers du T3 2024 avec des ventes nettes totales de 649,7 millions de dollars, en hausse de 2,8 % par rapport au T3 2023. Le segment des diagnostics cliniques a enregistré une augmentation de 5,6 % à 388,8 millions de dollars, tandis que le segment des sciences de la vie a diminué de 1,0 % à 260,9 millions de dollars. La marge brute de l’entreprise s’est améliorée ne passant à 54,8 % contre 53,1 %. Le revenu d'exploitation s’élevait à 64,5 millions de dollars, contre 90,9 millions de dollars au T3 2023. Le résultat net a considérablement augmenté à 653,2 millions de dollars (23,34 dollars par action), principalement en raison des fluctuations de valeur de marché de l’investissement dans Sartorius AG. L’entreprise maintient ses prévisions pour l’ensemble de l’année 2024, avec une baisse attendue des revenus non-GAAP de 2,5 à 4,0 % sur une base neutre par rapport aux devises.
Bio-Rad Laboratories berichtete über die FINANZIELLEN Ergebnisse Q3 2024 mit einem Gesamtumsatz von 649,7 Millionen Dollar, ein Anstieg von 2,8% im Vergleich zu Q3 2023. Der Bereich Klinische Diagnostik verzeichnete einen Anstieg von 5,6% auf 388,8 Millionen Dollar, während der Bereich Lebenswissenschaften um 1,0% auf 260,9 Millionen Dollar zurückging. Die Bruttomarge des Unternehmens verbesserte sich auf 54,8% von 53,1%. Das Betriebsergebnis betrug 64,5 Millionen Dollar, ein Rückgang von 90,9 Millionen Dollar im Q3 2023. Der Nettogewinn stieg erheblich auf 653,2 Millionen Dollar (23,34 Dollar pro Aktie), hauptsächlich aufgrund von Veränderungen im fairen Marktwert der Investition in Sartorius AG. Das Unternehmen hält an seiner Prognose für das gesamte Jahr 2024 fest, mit einem erwarteten Rückgang des Non-GAAP-Umsatzes von 2,5-4,0% auf währungsneutrale Basis.
- Total net sales increased 2.8% to $649.7 million
- Clinical Diagnostics segment grew 5.6% to $388.8 million
- Gross margin improved to 54.8% from 53.1%
- Net income surged to $653.2 million from $106.3 million
- Life Science segment sales declined 1.0% to $260.9 million
- Operating income decreased to $64.5 million from $90.9 million
- Expected full-year revenue decline of 2.5-4.0%
- Non-GAAP earnings per share decreased to $2.01 from $2.33
Insights
Bio-Rad's Q3 2024 results show mixed performance with some concerning trends. Total revenue grew
The divergence between Bio-Rad's segments reveals important market dynamics. The Clinical Diagnostics growth, particularly in quality control and immunology products, demonstrates resilient healthcare spending. However, the Life Science segment's weakness reflects broader biotech/biopharma market challenges that could persist. Regional performance varies significantly - EMEA showing strength while Americas face headwinds. The recent leadership additions, including a new COO, signal a strategic pivot toward operational efficiency and margin improvement. The updated guidance focusing on margin expansion (targeting
Third-quarter 2024 total net sales were
Life Science segment net sales for the third quarter were
Clinical Diagnostics segment net sales for the third quarter were
Third-quarter gross margin was 54.8 percent compared to 53.1 percent during the third quarter of 2023.
Income from operations during the third quarter of 2024 was
During the third 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 income of
The effective tax rate for the third quarter of 2024 was 24.2 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 our equity securities.
“Our third-quarter revenue performance was slightly ahead of expectations, driven by steady growth in clinical diagnostics products, while our life science business continued to improve reflecting a gradual recovery in the biopharma end market,” said Norman Schwartz, Bio-Rad’s Chairman and Chief Executive Officer. "During the quarter, we also welcomed Jon DiVincenzo as President and Chief Operating Officer. Jon joins Bio-Rad's other recently hired senior executives who collectively bring a wealth of life science, clinical diagnostics, and operations experience. With the new senior leadership team in place, we are focused on margin expansion, commercial excellence, and creating long-term shareholder value."
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 55.6 percent for the third quarter of 2024 compared to 53.9 percent during the third quarter of 2023.
Non-GAAP income from operations during the third quarter of 2024 was
Non-GAAP net income for the third quarter of 2024 was
The non-GAAP effective tax rate for the third quarter of 2024 was 28.8 percent, compared to 23.9 percent for the same period in 2023. The higher rate in 2024 was driven by geographical mix of earnings and a one-time acquired in-process research and development expense.
GAAP Results |
||||||
|
Q3 2024 |
Q3 2023 |
||||
Revenue (millions) |
$ |
649.7 |
|
$ |
632.1 |
|
Gross margin |
|
54.8 |
% |
|
53.1 |
% |
Operating margin |
|
9.9 |
% |
|
14.4 |
% |
Net income (millions) |
$ |
653.2 |
|
$ |
106.3 |
|
Income per diluted share |
$ |
23.34 |
|
$ |
3.64 |
|
|
||||||
Non-GAAP Results |
||||||
|
Q3 2024 |
Q3 2023 |
||||
Revenue (millions) |
$ |
649.7 |
|
$ |
632.1 |
|
Gross margin |
|
55.6 |
% |
|
53.9 |
% |
Operating margin |
|
11.3 |
% |
|
12.9 |
% |
Net income (millions) |
$ |
56.4 |
|
$ |
68.1 |
|
Income per diluted share |
$ |
2.01 |
|
$ |
2.33 |
|
Updated Full-Year 2024 Financial Outlook
Bio-Rad continues to expect its non-GAAP revenue to decline by approximately 2.5 to 4.0 percent on a currency-neutral basis. The company estimates a non-GAAP operating margin of between 12.75 to 13.25 percent, which now also includes the impact of a one-time acquired in-process research and development expense related to an acquisition completed during the third quarter.
Conference Call and Webcast
Management will discuss the company’s third quarter 2024 results and financial outlook in a conference call scheduled for 2 PM Pacific Time (5 PM Eastern Time) on October 30, 2024. To participate, dial 800-579-2543 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 focused on margin expansion, commercial excellence, and creating long-term shareholder value; and for the full-year 2024: continuing to expect non-GAAP revenue to decline by approximately 2.5 to 4.0 percent on a currency-neutral basis and estimating a non-GAAP operating margin of between 12.75 to 13.25 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 |
|
Nine Months Ended |
||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Net sales | $ |
649,729 |
|
$ |
632,124 |
|
$ |
1,899,025 |
|
$ |
1,990,078 |
|
||||
| Cost of goods sold |
|
293,826 |
|
|
296,441 |
|
|
862,037 |
|
|
929,495 |
|
||||
| Gross profit |
|
355,903 |
|
|
335,683 |
|
|
1,036,988 |
|
|
1,060,583 |
|
||||
| Selling, general and administrative expense |
|
200,440 |
|
|
201,199 |
|
|
610,042 |
|
|
634,576 |
|
||||
| Research and development expense |
|
90,997 |
|
|
43,535 |
|
|
216,276 |
|
|
183,528 |
|
||||
| Income from operations |
|
64,466 |
|
|
90,949 |
|
|
210,670 |
|
|
242,479 |
|
||||
| Interest expense |
|
12,174 |
|
|
12,398 |
|
|
36,715 |
|
|
37,078 |
|
||||
| Foreign currency exchange (gains) losses, net |
|
1,641 |
|
|
(1,680 |
) |
|
(2,012 |
) |
|
(5,280 |
) |
||||
| (Gains) losses from change in fair market value of equity | ||||||||||||||||
| securities and loan receivable |
|
(792,888 |
) |
|
(36,425 |
) |
|
1,680,290 |
|
|
1,576,542 |
|
||||
| Other income, net |
|
(18,081 |
) |
|
(20,446 |
) |
|
(70,740 |
) |
|
(87,365 |
) |
||||
| Income (loss) before income taxes |
|
861,620 |
|
|
137,102 |
|
|
(1,433,583 |
) |
|
(1,278,496 |
) |
||||
| (Provision for) benefit from income taxes |
|
(208,448 |
) |
|
(30,845 |
) |
|
305,185 |
|
|
291,464 |
|
||||
| Net income (loss) | $ |
653,172 |
|
$ |
106,257 |
|
$ |
(1,128,398 |
) |
$ |
(987,032 |
) |
||||
| Basic earnings (loss) per share: | ||||||||||||||||
| Net income (loss) per basic share | $ |
23.37 |
|
$ |
3.65 |
|
$ |
(39.89 |
) |
$ |
(33.63 |
) |
||||
| Weighted average common shares - basic |
|
27,949 |
|
|
29,102 |
|
|
28,286 |
|
|
29,349 |
|
||||
| Diluted earnings (loss) per share: | ||||||||||||||||
| Net income (loss) per diluted share | $ |
23.34 |
|
$ |
3.64 |
|
$ |
(39.89 |
) |
$ |
(33.63 |
) |
||||
| Weighted average common shares - diluted |
|
27,985 |
|
|
29,223 |
|
|
28,286 |
|
|
29,349 |
|||||
| Note: | As a result of the net loss for the nine months ended September 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. |
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Condensed Consolidated Balance Sheets |
|||||
(In thousands) |
|||||
|
|
|
|
||
|
September 30, |
|
December 31, |
||
|
2024 |
|
2023 |
||
|
(Unaudited) |
|
|
||
| Current assets: | |||||
| Cash and cash equivalents | $ |
410,377 |
$ |
403,815 |
|
| Short-term investments |
|
1,217,641 |
|
1,208,887 |
|
| Accounts receivable, net |
|
461,940 |
|
489,017 |
|
| Inventories, net |
|
804,276 |
|
780,517 |
|
| Other current assets |
|
161,386 |
|
166,094 |
|
| Total current assets |
|
3,055,620 |
|
3,048,330 |
|
| Property, plant and equipment, net |
|
545,304 |
|
529,007 |
|
| Operating lease right-of-use assets |
|
173,866 |
|
194,730 |
|
| Goodwill, net |
|
415,100 |
|
413,569 |
|
| Purchased intangibles, net |
|
307,325 |
|
320,514 |
|
| Other investments |
|
6,002,635 |
|
7,698,070 |
|
| Other assets |
|
103,622 |
|
94,850 |
|
| Total assets | $ |
10,603,472 |
$ |
12,299,070 |
|
| Current liabilities: | |||||
| Accounts payable, accrued payroll and employee benefits | $ |
268,209 |
$ |
284,554 |
|
| Current maturities of long-term debt |
|
1,262 |
|
486 |
|
| Income and other taxes payable |
|
43,625 |
|
35,759 |
|
| Other current liabilities |
|
184,847 |
|
202,000 |
|
| Total current liabilities |
|
497,943 |
|
522,799 |
|
| Long-term debt, net of current maturities |
|
1,200,062 |
|
1,199,052 |
|
| Other long-term liabilities |
|
1,417,608 |
|
1,836,086 |
|
| Total liabilities |
|
3,115,613 |
|
3,557,937 |
|
| Total stockholders' equity |
|
7,487,859 |
|
8,741,133 |
|
| Total liabilities and stockholders' equity | $ |
10,603,472 |
$ |
12,299,070 |
|
Bio-Rad Laboratories, Inc. |
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Condensed Consolidated Statements of Cash Flows |
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(In thousands) |
|||||||
(Unaudited) |
|||||||
|
|
|
|
||||
|
Nine Months Ended |
||||||
|
September 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
| Cash flows from operating activities: | |||||||
| Cash received from customers | $ |
1,920,985 |
|
$ |
2,007,482 |
|
|
| Cash paid to suppliers and employees |
|
(1,531,330 |
) |
|
(1,722,173 |
) |
|
| Interest paid, net |
|
(45,628 |
) |
|
(46,394 |
) |
|
| Income tax payments, net |
|
(75,710 |
) |
|
(40,966 |
) |
|
| Other operating activities |
|
62,731 |
|
|
95,947 |
|
|
| Net cash provided by operating activities |
|
331,048 |
|
|
293,896 |
|
|
| Cash flows from investing activities: | |||||||
| Payments for purchases of marketable securities and investments |
|
(1,053,660 |
) |
|
(537,540 |
) |
|
| Proceeds from sales and maturities of marketable securities and | |||||||
| investments |
|
1,069,951 |
|
|
599,882 |
|
|
| Other investing activities |
|
(145,947 |
) |
|
(114,331 |
) |
|
| Net cash used in investing activities |
|
(129,656 |
) |
|
(51,989 |
) |
|
| Cash flows from financing activities: | |||||||
| Payments on long-term debt |
|
(359 |
) |
|
(349 |
) |
|
| Other financing activities |
|
(192,193 |
) |
|
(224,678 |
) |
|
| Net cash used in financing activities |
|
(192,552 |
) |
|
(225,027 |
) |
|
| Effect of foreign exchange rate changes on cash |
|
(1,021 |
) |
|
6,891 |
|
|
| Net increase in cash, cash equivalents and restricted cash |
|
7,819 |
|
|
23,771 |
|
|
| Cash, cash equivalents and restricted cash at beginning of period |
|
404,369 |
|
|
434,544 |
|
|
| Cash, cash equivalents and restricted cash at end of period | $ |
412,188 |
|
$ |
458,315 |
|
|
| Reconciliation of net loss to net cash provided by operating activities: | |||||||
| Net loss | $ |
(1,128,398 |
) |
$ |
(987,032 |
) |
|
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
| Depreciation and amortization |
|
112,393 |
|
|
108,724 |
|
|
| Reduction in the carrying amount of right-of-use assets |
|
31,066 |
|
|
30,725 |
|
|
| Losses from change in fair market value of equity securities and loan receivable |
|
1,680,290 |
|
|
1,576,542 |
|
|
| Changes in working capital |
|
(29,950 |
) |
|
(61,623 |
) |
|
| Other |
|
(334,353 |
) |
|
(373,440 |
) |
|
| Net cash provided by operating activities | $ |
331,048 |
|
$ |
293,896 |
|
|
| 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 | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | % of | September 30, | % of | September 30, | % of | September 30, | % of | |||||||||||||||||||||
|
2024 |
|
revenue |
|
2023 |
|
revenue |
|
2024 |
|
revenue |
|
2023 |
|
revenue | |||||||||||||
| GAAP cost of goods sold | $ |
293,826 |
|
$ |
296,441 |
|
$ |
862,037 |
|
$ |
929,495 |
|
||||||||||||||||
| Amortization of purchased intangibles |
|
(4,499 |
) |
|
(4,507 |
) |
|
(13,391 |
) |
|
(13,131 |
) |
||||||||||||||||
| Restructuring benefits (costs) |
|
(603 |
) |
|
(215 |
) |
|
(1,764 |
) |
|
(3,922 |
) |
||||||||||||||||
| Non-GAAP cost of goods sold | $ |
288,724 |
|
$ |
291,719 |
|
$ |
846,882 |
|
$ |
912,442 |
|
||||||||||||||||
| GAAP gross profit | $ |
355,903 |
|
54.8 |
% |
$ |
335,683 |
|
53.1 |
% |
$ |
1,036,988 |
|
54.6 |
% |
$ |
1,060,583 |
|
53.3 |
% |
||||||||
| Amortization of purchased intangibles |
|
4,499 |
|
|
4,507 |
|
|
13,391 |
|
|
13,131 |
|
||||||||||||||||
| Restructuring (benefits) costs |
|
603 |
|
|
215 |
|
|
1,764 |
|
|
3,922 |
|
||||||||||||||||
| Non-GAAP gross profit | $ |
361,005 |
|
55.6 |
% |
$ |
340,405 |
|
53.9 |
% |
$ |
1,052,143 |
|
55.4 |
% |
$ |
1,077,636 |
|
54.2 |
% |
||||||||
| GAAP selling, general and administrative expense | $ |
200,440 |
|
$ |
201,199 |
|
$ |
610,042 |
|
$ |
634,576 |
|
||||||||||||||||
| Amortization of purchased intangibles |
|
(825 |
) |
|
(1,629 |
) |
|
(2,686 |
) |
|
(4,931 |
) |
||||||||||||||||
| Acquisition related benefits (costs) |
|
- |
|
|
4,100 |
|
|
- |
|
|
4,100 |
|
||||||||||||||||
| Restructuring benefits (costs) |
|
(819 |
) |
|
(1,339 |
) |
|
(3,825 |
) |
|
(16,655 |
) |
||||||||||||||||
| Other non-recurring items (2) |
|
(1,663 |
) |
|
(1,877 |
) |
|
(4,704 |
) |
|
(5,794 |
) |
||||||||||||||||
| Non-GAAP selling, general and administrative expense | $ |
197,133 |
|
$ |
200,454 |
|
$ |
598,827 |
|
$ |
611,296 |
|
||||||||||||||||
| GAAP research and development expense | $ |
90,997 |
|
$ |
43,535 |
|
$ |
216,276 |
|
$ |
183,528 |
|
||||||||||||||||
| Acquisition related benefits (costs) |
|
(400 |
) |
|
14,800 |
|
|
(800 |
) |
|
14,400 |
|
||||||||||||||||
| Restructuring benefits (costs) |
|
(19 |
) |
|
22 |
|
|
(1,519 |
) |
|
(5,293 |
) |
||||||||||||||||
| Non-GAAP research and development expense | $ |
90,578 |
|
$ |
58,357 |
|
$ |
213,957 |
|
$ |
192,635 |
|
||||||||||||||||
| GAAP income from operations | $ |
64,466 |
|
9.9 |
% |
$ |
90,949 |
|
14.4 |
% |
$ |
210,670 |
|
11.1 |
% |
$ |
242,479 |
|
12.2 |
% |
||||||||
| Amortization of purchased intangibles |
|
5,324 |
|
|
6,136 |
|
|
16,077 |
|
|
18,062 |
|
||||||||||||||||
| Acquisition related (benefits) costs |
|
400 |
|
|
(18,900 |
) |
|
800 |
|
|
(18,500 |
) |
||||||||||||||||
| Restructuring (benefits) costs |
|
1,441 |
|
|
1,532 |
|
|
7,108 |
|
|
25,870 |
|
||||||||||||||||
| Other non-recurring items (2) |
|
1,663 |
|
|
1,877 |
|
|
4,704 |
|
|
5,794 |
|
||||||||||||||||
| Non-GAAP income from operations | $ |
73,294 |
|
11.3 |
% |
$ |
81,594 |
|
12.9 |
% |
$ |
239,359 |
|
12.6 |
% |
$ |
273,705 |
|
13.8 |
% |
||||||||
| GAAP (gains) losses from change in fair market value of equity securities and loan receivable | $ |
(792,888 |
) |
$ |
(36,425 |
) |
$ |
1,680,290 |
|
$ |
1,576,542 |
|
||||||||||||||||
| Gains (losses) from change in fair market value of equity securities and loan receivable |
|
792,888 |
|
|
36,425 |
|
|
(1,680,290 |
) |
|
(1,576,542 |
) |
||||||||||||||||
| Non-GAAP (gains) losses from change in fair market value of equity securities and loan receivable | $ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
||||||||||||||||
| GAAP other (income) expense, net | $ |
(18,081 |
) |
$ |
(20,446 |
) |
$ |
(70,740 |
) |
$ |
(87,365 |
) |
||||||||||||||||
| Gains (losses) on equity-method investments |
|
(1,626 |
) |
|
(697 |
) |
|
(3,349 |
) |
|
(2,543 |
) |
||||||||||||||||
| Other non-recurring items (3) |
|
- |
|
|
2,500 |
|
|
- |
|
|
2,500 |
|
||||||||||||||||
| Non-GAAP other (income) expense, net | $ |
(19,707 |
) |
$ |
(18,643 |
) |
$ |
(74,089 |
) |
$ |
(87,408 |
) |
||||||||||||||||
| GAAP income (loss) before income taxes | $ |
861,620 |
|
$ |
137,102 |
|
$ |
(1,433,583 |
) |
$ |
(1,278,496 |
) |
||||||||||||||||
| Amortization of purchased intangibles |
|
5,324 |
|
|
6,136 |
|
|
16,077 |
|
|
18,062 |
|
||||||||||||||||
| Acquisition related (benefits) costs |
|
400 |
|
|
(18,900 |
) |
|
800 |
|
|
(18,500 |
) |
||||||||||||||||
| Restructuring (benefits) costs |
|
1,441 |
|
|
1,532 |
|
|
7,108 |
|
|
25,870 |
|
||||||||||||||||
| (Gains) losses from change in fair market value of equity securities and loan receivable |
|
(792,888 |
) |
|
(36,425 |
) |
|
1,680,290 |
|
|
1,576,542 |
|
||||||||||||||||
| (Gains) losses on equity-method investments |
|
1,626 |
|
|
697 |
|
|
3,349 |
|
|
2,543 |
|
||||||||||||||||
| Other non-recurring items (2) (3) |
|
1,663 |
|
|
(623 |
) |
|
4,704 |
|
|
3,294 |
|
||||||||||||||||
| Non-GAAP income before income taxes | $ |
79,186 |
|
$ |
89,519 |
|
$ |
278,745 |
|
$ |
329,315 |
|
||||||||||||||||
| GAAP (provision for) benefit from income taxes | $ |
(208,448 |
) |
$ |
(30,845 |
) |
$ |
305,185 |
|
$ |
291,464 |
|
||||||||||||||||
| Income tax effect of non-GAAP adjustments (1) |
|
185,624 |
|
|
9,408 |
|
|
(373,835 |
) |
|
(364,826 |
) |
||||||||||||||||
| Non-GAAP provision for income taxes | $ |
(22,824 |
) |
$ |
(21,437 |
) |
$ |
(68,650 |
) |
$ |
(73,362 |
) |
||||||||||||||||
| GAAP net income (loss) | $ |
653,172 |
|
100.5 |
% |
$ |
106,257 |
|
16.8 |
% |
$ |
(1,128,398 |
) |
(59.4 |
)% |
$ |
(987,032 |
) |
(49.6 |
)% |
||||||||
| Amortization of purchased intangibles |
|
5,324 |
|
|
6,136 |
|
|
16,077 |
|
|
18,062 |
|
||||||||||||||||
| Acquisition related (benefits) costs |
|
400 |
|
|
(18,900 |
) |
|
800 |
|
|
(18,500 |
) |
||||||||||||||||
| Restructuring (benefits) costs |
|
1,441 |
|
|
1,532 |
|
|
7,108 |
|
|
25,870 |
|
||||||||||||||||
| (Gains) losses from change in fair market value of equity securities and loan receivable |
|
(792,888 |
) |
|
(36,425 |
) |
|
1,680,290 |
|
|
1,576,542 |
|
||||||||||||||||
| (Gains) losses on equity-method investments |
|
1,626 |
|
|
697 |
|
|
3,349 |
|
|
2,543 |
|
||||||||||||||||
| Other non-recurring items (2) (3) |
|
1,663 |
|
|
(623 |
) |
|
4,704 |
|
|
3,294 |
|
||||||||||||||||
| Income tax effect of non-GAAP adjustments (1) |
|
185,624 |
|
|
9,408 |
|
|
(373,835 |
) |
|
(364,826 |
) |
||||||||||||||||
| Non-GAAP net income | $ |
56,362 |
|
8.7 |
% |
$ |
68,082 |
|
10.8 |
% |
$ |
210,095 |
|
11.1 |
% |
$ |
255,953 |
|
12.9 |
% |
||||||||
| GAAP diluted income (loss) per share | $ |
23.34 |
|
$ |
3.64 |
|
$ |
(39.89 |
) |
$ |
(33.63 |
) |
||||||||||||||||
| Amortization of purchased intangibles |
|
0.19 |
|
|
0.21 |
|
|
0.57 |
|
|
0.61 |
|
||||||||||||||||
| Acquisition related (benefits) costs |
|
0.01 |
|
|
(0.65 |
) |
|
0.03 |
|
|
(0.63 |
) |
||||||||||||||||
| Restructuring (benefits) costs |
|
0.05 |
|
|
0.05 |
|
|
0.25 |
|
|
0.88 |
|
||||||||||||||||
| (Gains) losses from change in fair market value of equity securities and loan receivable |
|
(28.33 |
) |
|
(1.25 |
) |
|
59.35 |
|
|
53.47 |
|
||||||||||||||||
| (Gains) losses on equity-method investments |
|
0.06 |
|
|
0.02 |
|
|
0.12 |
|
|
0.09 |
|
||||||||||||||||
| Other non-recurring items (2) (3) |
|
0.06 |
|
|
(0.02 |
) |
|
0.17 |
|
|
0.11 |
|
||||||||||||||||
| Income tax effect of non-GAAP adjustments (1) |
|
6.63 |
|
|
0.33 |
|
|
(13.21 |
) |
|
(12.38 |
) |
||||||||||||||||
| Add back anti-dilutive shares |
|
- |
|
|
- |
|
|
0.03 |
|
|
0.16 |
|
||||||||||||||||
| Non-GAAP diluted income per share | $ |
2.01 |
|
$ |
2.33 |
|
$ |
7.42 |
|
$ |
8.68 |
|
||||||||||||||||
| GAAP diluted weighted average shares used in per share calculation |
|
27,985 |
|
|
29,223 |
|
|
28,286 |
|
|
29,349 |
|
||||||||||||||||
| Shares included in non-GAAP net income per share, but excluded from GAAP net loss per share as they would have been anti-dilutive |
|
- |
|
|
- |
|
|
24 |
|
|
137 |
|
||||||||||||||||
| Non-GAAP diluted weighted average shares used in per share calculation |
|
27,985 |
|
|
29,223 |
|
|
28,310 |
|
|
29,486 |
|
||||||||||||||||
| Reconciliation of net income (loss) to adjusted EBITDA: | ||||||||||||||||||||||||||||
| GAAP net income (loss) | $ |
653,172 |
|
100.5 |
% |
$ |
106,257 |
|
16.8 |
% |
$ |
(1,128,398 |
) |
(59.4 |
)% |
$ |
(987,032 |
) |
(49.6 |
)% |
||||||||
| Interest expense |
|
12,174 |
|
|
12,398 |
|
|
36,715 |
|
|
37,078 |
|
||||||||||||||||
| (Provision for) benefit from income taxes |
|
208,448 |
|
|
30,845 |
|
|
(305,185 |
) |
|
(291,464 |
) |
||||||||||||||||
| Depreciation and amortization |
|
38,891 |
|
|
37,278 |
|
|
112,393 |
|
|
108,724 |
|
||||||||||||||||
| Foreign currency exchange (gains) losses, net |
|
1,641 |
|
|
(1,680 |
) |
|
(2,012 |
) |
|
(5,280 |
) |
||||||||||||||||
| Other income, net |
|
(18,081 |
) |
|
(20,446 |
) |
|
(70,740 |
) |
|
(87,365 |
) |
||||||||||||||||
| (Gains) losses from change in fair market value of equity securities and loan receivable |
|
(792,888 |
) |
|
(36,425 |
) |
|
1,680,290 |
|
|
1,576,542 |
|
||||||||||||||||
| Dividend from Sartorius AG |
|
- |
|
|
- |
|
|
17,930 |
|
|
34,766 |
|
||||||||||||||||
| Acquisition related (benefits) costs |
|
400 |
|
|
(18,900 |
) |
|
800 |
|
|
(18,500 |
) |
||||||||||||||||
| Restructuring (benefits) costs |
|
1,441 |
|
|
1,532 |
|
|
7,108 |
|
|
25,870 |
|
||||||||||||||||
| Other non-recurring items (2) |
|
1,663 |
|
|
1,877 |
|
|
4,704 |
|
|
5,794 |
|
||||||||||||||||
| Adjusted EBITDA | $ |
106,861 |
|
16.4 |
% |
$ |
112,736 |
|
17.8 |
% |
$ |
353,605 |
|
18.6 |
% |
$ |
399,133 |
|
20.1 |
% |
||||||||
(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. | |
(3) |
Gain from the release of an escrow for the acquisition in 2021 (2023). |
2024 Financial Outlook
Forecasted non-GAAP operating margin excludes 85 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/20241030533020/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.
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