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Bio-Techne Releases Third Quarter Fiscal 2021 Results

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Bio-Techne Corporation (NASDAQ:TECH) reported strong financial results for Q3 FY2021, with organic revenue growth of 22% to $243.6 million. GAAP EPS increased to $1.12, up from $0.92 last year, while adjusted EPS rose to $1.79 from $1.39. The company achieved a remarkable adjusted operating margin of 40.1%, reflecting effective cost management and higher demand across its segments. Notably, Protein Sciences experienced organic growth of 24%, while Diagnostics and Genomics grew by 17%. Bio-Techne also enhanced its Diagnostics segment through the acquisition of Asuragen.

Positive
  • Organic revenue increased by 22% to $243.6 million.
  • GAAP EPS rose to $1.12 from $0.92 year-over-year.
  • Adjusted EPS increased to $1.79 from $1.39 year-over-year.
  • Adjusted operating margin improved to 40.1% from 36.4% in the prior year.
  • Protein Sciences segment achieved 24% organic growth.
Negative
  • None.

MINNEAPOLIS, May 6, 2021 /PRNewswire/ -- Bio-Techne Corporation (NASDAQ:TECH) today reported its financial results for the third quarter ended March 31, 2021.

Third Quarter FY2021 Snapshot

  • Third quarter organic revenue increased by 22% (25% reported) to $243.6 million and 17% (19% reported) in the first nine months of fiscal 2021 to $672.0 million.
  • GAAP EPS was $1.12 versus $0.92 one year ago. Delivered adjusted earnings per share (EPS) of $1.79 versus $1.39 one year ago.
  • Adjusted Operating Margin increased to 40.1% in the third quarter of fiscal 2021 compared to 36.4% in the third quarter of fiscal 2020.
  • Excellent commercial execution in both operating segments with Protein Sciences achieving record organic growth of 24% and Diagnostics and Genomics delivering 17% organic growth.
  • Enhanced Bio-Techne's Diagnostics and Genomics segment through the acquisition of Asuragen, Inc., which closed April 6th, 2021, adding a portfolio of best-in-class molecular diagnostic and research products and its experienced leadership team.

The Company's financial statements are prepared in accordance with accounting principles generally accepted in the United States (GAAP). Adjusted EPS, adjusted earnings, adjusted gross margin, adjusted operating income, adjusted tax rate, organic growth, and adjusted operating margin are non-GAAP measures that exclude certain items detailed later in this press release under the heading "Use of non-GAAP Adjusted Financial Measures." A reconciliation of GAAP to non-GAAP financial measures is included in this press release.

"Congratulations to the entire global Bio-Techne team for delivering another consecutive record quarter," Said Chuck Kummeth, President and CEO of Bio-Techne. "Our 22% organic growth reflects strong execution across geographies and segments, while our financial discipline delivered an impressive adjusted operating margin of 40.1%. This strength speaks to increasing demand for our portfolio of life science tools and diagnostic solutions, delivering productivity enhancing solutions that are ideal for the current environment and positioning the Company for continued leadership in our platforms as we exit the pandemic."

Kummeth added, "Our end-markets continued to improve during Q3, with biopharma remaining strong and academic labs continuing the reopening process. Our ProteinSimple brand of proteomic analytical tools and ACD brand of tissue biopsy products were standouts in the quarter, with these platforms growing approximately +50% and +40% year-over-year, respectively. The continued rapid adoption of these solutions, combined with our quality reagents and emerging Exosome Dx and Cell and Gene Therapy opportunities, gives us much excitement about what the future still brings for Bio-Techne and all of its stakeholders."

Third Quarter Fiscal 2021

Revenue

Net sales for the third quarter increased 25% to $243.6 million. Organic growth was 22% compared to the prior year, with foreign currency exchange having a favorable impact of 3% and acquisitions contributing an immaterial amount to revenue growth.

GAAP Earnings Results

GAAP EPS increased to $1.12 per diluted share, versus $0.92 in the same quarter last year. GAAP operating income for the third quarter of fiscal 2021 increased 43.6% to $68.6 million, compared to $47.8 million in the third quarter of fiscal 2020. GAAP operating margin was 28.2%, compared to 24.5% in the third quarter of fiscal 2020. GAAP operating margin compared to prior year was positively impacted by volume leverage and cost management.

Non-GAAP Earnings Results

Adjusted EPS increased to $1.79 per diluted share, versus $1.39 in the same quarter last year, an increase of 29%. Adjusted EPS increased due to revenue growth and operating margin expansion. Adjusted operating income for the third quarter of fiscal 2021 increased 37% compared to the third quarter of fiscal 2020. Adjusted operating margin was 40.1%, compared to 36.4 % in the third quarter of fiscal 2020. Adjusted operating margin compared to the prior year was favorably impacted by volume leverage and cost management.

Segment Results

Management uses adjusted operating results to monitor and evaluate performance of the Company's business segments, as highlighted below.

Protein Sciences Segment

The Company's Protein Sciences segment is one of the world's leading suppliers of specialized proteins such as cytokines and growth factors, immunoassays, antibodies and reagents, to the biotechnology and academic research communities. Additionally, the segment provides an array of platforms useful in various areas of protein analysis. Protein Sciences segment's third quarter fiscal 2021 net sales were $185.6 million, an increase of 28% from $145.5 million for the third quarter of fiscal 2020. Organic growth for the segment was 24%, with foreign currency exchange having a favorable impact of 4% on revenue growth and acquisitions contributing an immaterial amount to revenue growth. Protein Sciences segment's operating margin was 47.6% in the third quarter of fiscal 2021 compared to 44.7% in the third quarter of fiscal 2020. The segment's operating margin compared to the prior year was positively impacted by volume leverage and cost management.

Diagnostics and Genomics Segment

The Company's Diagnostics and Genomics segment provides blood chemistry and blood gas quality controls, hematology instrument controls, immunoassays and other bulk and custom reagents for the in vitro diagnostic market. The Diagnostics and Genomics segment also develops and provides in situ hybridization products as well as exosome-based diagnostics for various pathologies, including prostate cancer. The Diagnostics and Genomics segment's third quarter fiscal 2021 net sales were $58.1 million, an increase of 18% from $49.4 million for the third quarter of fiscal 2020. Organic growth for the segment was 17% with foreign currency exchange having a 1% favorable impact on revenue. The Diagnostics and Genomics segment's operating margin was 17.9% in the third quarter of fiscal 2021 compared to 14.3% in the third quarter of fiscal 2020. The segment's operating margin was favorably impacted by volume leverage and cost management.

Conference Call

Bio-Techne will host an earnings conference call today, May 6, 2021 at 8:00 a.m. CDT. To listen, please dial 1-877-407-9208 or 1-201-493-6784 for international callers, and reference conference ID 13718437. The earnings call can also be accessed via webcast through the following link http://public.viavid.com/index.php?id=144241.

A recorded rebroadcast will be available for interested parties unable to participate in the live conference call by dialing 1-844-512-2921 or 1-412-317-6671 (for international callers) and referencing Conference ID 13718437. The replay will be available from 11:00 a.m. CDT on Thursday, May 6, 2021 until 11:00 p.m. CDT on Sunday, June 6, 2021.

Use of non-GAAP Adjusted Financial Measures:

This press release contains financial measures that have not been calculated in accordance with accounting principles generally accepted in the U.S. (GAAP). These non-GAAP measures include:

  • Organic growth
  • Adjusted diluted earnings per share
  • Adjusted tax rate
  • Adjusted gross margin
  • Adjusted operating income
  • Adjusted operating margin

We provide these measures as additional information regarding our operating results. We use these non-GAAP measures internally to evaluate our performance and in making financial and operational decisions, including with respect to incentive compensation. We believe that our presentation of these measures provides investors with greater transparency with respect to our results of operations and that these measures are useful for period-to-period comparison of results.

Our non-GAAP financial measure of organic growth represents revenue growth excluding revenue from acquisitions within the preceding 12 months as well as the impact of foreign currency. Excluding these measures provides more useful period-to-period comparison of revenue results as it excludes the impact of foreign currency exchange rates, which can vary significantly from period to period, and revenue from acquisitions that would not be included in the comparable prior period.

Our non-GAAP financial measures for adjusted gross margin, adjusted operating margin, and adjusted net earnings, in total and on a per share basis, exclude the costs recognized upon the sale of acquired inventory, amortization of acquisition intangibles, acquisition related expenses inclusive of the changes in fair value of contingent consideration, and other non-recurring items including non-recurring costs and gains. The Company excludes amortization of purchased intangible assets, purchase accounting adjustments, including costs recognized upon the sale of acquired inventory and acquisition-related expenses inclusive of the changes in fair value contingent consideration, and other non-recurring items including gains or losses on legal settlements and one-time assessments from this measure because they occur as a result of specific events, and are not reflective of our internal investments, the costs of developing, producing, supporting and selling our products, and the other ongoing costs to support our operating structure. Additionally, these amounts can vary significantly from period to period based on current activity.

The Company's non-GAAP adjusted operating margin and adjusted net earnings, in total and on a per share basis, also excludes stock-based compensation expense, which is inclusive of the employer portion of payroll taxes on those stock awards, restructuring, impairments of equity method investments, gain and losses from investments, and certain adjustments to income tax expense. Stock-based compensation is excluded from non-GAAP adjusted net earnings because of the nature of this charge, specifically the varying available valuation methodologies, subjective assumptions, variety of award types, and unpredictability of amount and timing of employer related tax obligations. Impairments of equity investments are excluded as they are not part of our day-to-day operating decisions. Additionally, gains and losses from other investments that are either isolated or cannot be expected to occur again with any predictability are excluded. Costs related to restructuring activities, including reducing overhead and consolidating facilities, are excluded because we believe they are not indicative of our normal operating costs. The Company independently calculates a non-GAAP adjusted tax rate to be applied to the identified non-GAAP adjustments considering the impact of discrete items on these adjustments and the jurisdictional mix of the adjustments. In addition, the tax impact of other discrete and non-recurring charges which impact our reported GAAP tax rate are adjusted from net earnings. We believe these tax items can significantly affect the period-over-period assessment of operating results and not necessarily reflect costs and/or income associated with historical trends and future results.

Investors are encouraged to review the reconciliations of adjusted financial measures used in this press release to their most directly comparable GAAP financial measures as provided with the financial statements attached to this press release.

Forward Looking Statements:

Our press releases may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Such statements involve risks and uncertainties that may affect the actual results of operations. The following important factors, among others, have affected and, in the future, could affect the Company's actual results: the effect of new branding and marketing initiatives, the integration of new businesses and leadership, the introduction and acceptance of new products, the funding and focus of the types of research by the Company's customers, the impact of the growing number of producers of biotechnology research products and related price competition, general economic conditions, customer site closures or supply chain issues resulting from the COVID-19 pandemic, the impact of currency exchange rate fluctuations, and the costs and results of research and product development efforts of the Company and of companies in which the Company has invested or with which it has formed strategic relationships.

For additional information concerning such factors, see the section titled "Risk Factors" in the Company's annual report on Form 10-K and quarterly reports on Form 10-Q as filed with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements we make in our press releases due to new information or future events. Investors are cautioned not to place undue emphasis on these statements.

Bio-Techne Corporation (NASDAQ: TECH) is a global life sciences company providing innovative tools and bioactive reagents for the research and clinical diagnostic communities. Bio-Techne products assist scientific investigations into biological processes and the nature and progress of specific diseases. They aid in drug discovery efforts and provide the means for accurate clinical tests and diagnoses. With thousands of products in its portfolio, Bio-Techne generated approximately $739 million in net sales in fiscal 2020 and has over 2,300 employees worldwide. For more information on Bio-Techne and its brands, please visit www.bio-techne.com.

 

Contact:

David Clair, Senior Director, Investor Relations & Corporate Development


David.Clair@bio-techne.com


612-656-4416 

 

BIO-TECHNE CORPORATION

CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except per share data)

(Unaudited)




QUARTER

ENDED



NINE MONTHS

ENDED




3/31/21



3/31/20



3/31/21



3/31/20


Net sales


$

243,552



$

194,680



$

672,004



$

562,857


Cost of sales



75,278




64,617




215,098




192,977


Gross margin



168,274




130,063




456,906




369,880


Operating expenses:

















Selling, general and administrative



82,596




66,318




238,310




203,358


Research and development



17,052




15,954




49,882




48,413


Total operating expenses



99,648




82,272




288,192




251,771


Operating income



68,626




47,791




168,714




118,109


Other income (expense)



(23,272)




(970)




(27,652)




96,843


Earnings before income taxes



45,354




46,821




141,062




214,952


Income taxes



(48)




10,389




16,121




44,501


Net earnings, including noncontrolling interest


$

45,402



$

36,432



$

124,941



$

170,451


Net earnings attributable to noncontrolling interest



(380)




-




(509)




-


Net earnings attributable to Bio-Techne



45,782




36,432




125,450




170,451


Earnings per share:

















Basic


$

1.18



$

0.95



$

3.24



$

4.46


Diluted


$

1.12



$

0.92



$

3.11



$

4.33


Weighted average common shares outstanding:

















Basic



38,856




38,303




38,693




38,167


Diluted



40,676




39,435




40,305




39,354


 

BIO-TECHNE CORPORATION

CONSOLIDATED CONDENSED BALANCE SHEETS

(In thousands)

(Unaudited)




3/31/21



6/30/20


ASSETS









Cash and equivalents


$

186,136



$

146,625


Short-term available-for-sale investments



90,108




124,268


Accounts receivable, net



157,790




122,534


Inventories



109,990




103,152


Other current assets



22,582




24,341


Total current assets



566,606




520,920











Property and equipment, net



198,975




176,829


Right of use asset



71,830




71,465


Goodwill and intangible assets, net



1,235,638




1,244,853


Other assets



11,593




13,522


Total assets


$

2,084,642



$

2,027,589











LIABILITIES AND STOCKHOLDERS' EQUITY









Accounts payable and accrued expenses


$

84,799



$

63,270


Contract liabilities



18,714




13,049


Income taxes payable



3,562




2,376


Contingent consideration payable



5,070




5,938


Operating lease liabilities – current



10,414




9,535


Current portion of long-term debt obligations



12,500




12,500


Other current liabilities



2,581




-


Total current liabilities



137,640




106,668











Deferred income taxes



98,401




101,090


Long-term debt obligations



202,931




344,243


Operating lease liabilities



66,816




67,248


Long-term contingent consideration payable



7,100




199


Other long-term liabilities



23,812




26,949


Stockholders' equity



1,547,942




1,381,192


Total liabilities and stockholders' equity


$

2,084,642



$

2,027,589


 

BIO-TECHNE CORPORATION

RECONCILIATION OF ADJUSTED GROSS MARGIN PERCENTAGE

(Unaudited)




QUARTER

ENDED



NINE MONTHS

ENDED




3/31/21



3/31/20



3/31/21



3/31/20


Gross margin percentage – GAAP



69.1

%



66.8

%



68.0

%



65.7

%

Identified adjustments:

















Costs recognized upon sale of acquired inventory



0.0

%



-

%



0.0

%



-

%

Amortization of intangibles



3.6

%



4.5

%



3.9

%



4.7

%

Stock compensation expense - COGS



0.2

%



0.2

%



0.2

%



0.2

%

Gross margin percentage - Adjusted



72.9

%



71.5

%



72.1

%



70.6

%

 

BIO-TECHNE CORPORATION

RECONCILIATION OF ADJUSTED OPERATING MARGIN PERCENTAGE

(Unaudited)




QUARTER

ENDED



NINE MONTHS

ENDED




3/31/21



3/31/20



3/31/21



3/31/20


Operating margin percentage – GAAP



28.2

%



24.5

%



25.1

%



21.0

%

Identified adjustments:

















Costs recognized upon sale of acquired inventory



0.0

%



-

%



0.0

%



-

%

Amortization of intangibles



6.3

%



7.9

%



6.8

%



8.1

%

Acquisition related expenses



0.7

%



-0.2

%



1.0

%



0.0

%

Stock-based compensation



4.9

%



4.2

%



6.2

%



4.9

%

Operating margin percentage - Adjusted



40.1

%



36.4

%



39.1

%



34.0

%

 

BIO-TECHNE CORPORATION

NON-GAAP ADJUSTED CONSOLIDATED NET EARNINGS and EARNINGS per SHARE

(In thousands, except per share data)

(Unaudited)




QUARTER

ENDED


NINE MONTHS

ENDED




3/31/21



3/31/20


3/31/21



3/31/20


Net earnings before taxes - GAAP


$

45,354



$

46,821


$

141,062



$

214,952


Identified adjustments attributable to Bio-Techne:
















Costs recognized upon sale of acquired inventory



68




-



91




-


Amortization of intangibles



15,222




15,459



45,750




45,467


Acquisition related expenses



1,825




(228)



6,571




389


Stock-based compensation, inclusive of employer taxes



11,968




8,088



41,525




27,505


Restructuring costs



-




87



142




87


Realized (gain) loss on investments and Other



16,590




(410)



10,232




(110,458)


Impact of non-controlling interest (pre-tax)



445




-



598




-


Net earnings before taxes - Adjusted


$

91,472



$

69,817


$

245,971



$

177,942


















Non-GAAP tax rate



20.2

%



21.3

%


20.2

%



21.6

%

Non-GAAP tax expense



18,541




14,847



49,511




38,462


















Non-GAAP adjusted net earnings attributable to Bio-Techne


$

72,931



$

54,970


$

196,460



$

139,480


















Earnings per share - diluted – Adjusted


$

1.79



$

1.39


$

4.87



$

3.54


















 

BIO-TECHNE CORPORATION

NON-GAAP adjusted tax rate

(In percentages)

(Unaudited)




QUARTER

ENDED



NINE MONTHS

ENDED




3/31/21



3/31/20



3/31/21



3/31/20


GAAP effective tax rate



(0.1)

%



22.2

%



11.4

%



20.7

%

Discrete items



25.7




3.1




13.8




3.8


Annual tax forecast update



(0.4)




(0.8)




-




-


Long-term GAAP tax rate



25.2

%



24.5

%



25.2

%



24.5

%


















Rate impact items

















Stock based compensation



(5.6)

%



(2.6)

%



(5.6)

%



(2.5)

%

Acquisition costs



0.0




0.0




0.0




0.0


Change in fair value of investments



0.0




(0.5)




0.0




(0.3)


Other1



0.6




(0.1)




0.6




(0.1)


Total rate impact items



(5.0)

%



(3.2)

%



(5.0)

%



(2.9)

%


















Non-GAAP tax rate



20.2

%



21.3

%



20.2

%



21.6

%


















1)

For the quarter ended March 31, 2021, the other rate impact items includes a normalization of non-GAAP tax rate, which was included in our non-GAAP tax rate as the return to historical growth patterns seen prior to the onset of the COVID-19 pandemic occurred on a more condensed timeline than previously forecasted. The impact of re-casting the Non-GAAP tax rate for the third quarter of fiscal 2021 increased the non-GAAP tax rate by 0.6%.  

 

BIO-TECHNE CORPORATION

SEGMENT REVENUE

(In thousands)

(Unaudited)




QUARTER

ENDED



NINE MONTHS

ENDED




3/31/21



3/31/20



3/31/21



3/31/20


Protein Sciences segment revenue


$

185,623



$

145,509



$

512,248



$

428,021


Diagnostics and Genomics segment revenue



58,093




49,411




160,687




135,808


Intersegment revenue



(164)




(240)




(931)




(972)


Consolidated revenue


$

243,552



$

194,680



$

672,004



$

562,857


 

BIO-TECHNE CORPORATION

SEGMENT OPERATING INCOME

(In thousands)

(Unaudited)




QUARTER

ENDED



NINE MONTHS

ENDED




3/31/21



3/31/20



3/31/21



3/31/20


Protein Sciences segment operating income


$

88,392



$

65,046



$

238,991



$

185,456


Diagnostics and Genomics segment operating income



10,417




7,062




27,197




8,937


Segment operating income



98,809




72,108




266,188




194,393


Corporate general, selling, and administrative



(1,194)




(1,092)




(3,677)




(3,205)


Adjusted operating income



97,615




71,016




262,511




191,188


Cost recognized upon sale of acquired inventory



(68)




-




(91)




-


Amortization of intangibles



(15,222)




(15,459)




(45,750)




(45,467)


Acquisition related expenses



(1,731)




322




(6,289)




(107)


Stock-based compensation



(11,968)




(8,088)




(41,525)




(27,505)


Restructure costs



-




-




(142)




-


Operating income


$

68,626



$

47,791



$

168,714



$

118,109


 

Bio-Techne

 

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SOURCE Bio-Techne Corporation

FAQ

What were Bio-Techne's earnings for Q3 FY2021?

Bio-Techne reported GAAP EPS of $1.12 and adjusted EPS of $1.79 for Q3 FY2021.

How much did Bio-Techne's revenue grow in Q3 2021?

Bio-Techne's organic revenue grew by 22% to $243.6 million in Q3 FY2021.

What is the performance of Bio-Techne's Protein Sciences segment?

The Protein Sciences segment achieved a 24% organic growth in Q3 FY2021.

When did Bio-Techne acquire Asuragen?

Bio-Techne completed the acquisition of Asuragen on April 6, 2021.

What was the adjusted operating margin for Bio-Techne in Q3 FY2021?

Bio-Techne's adjusted operating margin for Q3 FY2021 was 40.1%.

Bio-Techne Corp.

NASDAQ:TECH

TECH Rankings

TECH Latest News

TECH Stock Data

11.34B
157.24M
1.04%
99.48%
2.22%
Biotechnology
Biological Products, (no Disgnostic Substances)
Link
United States of America
MINNEAPOLIS