BIO Bio Rad Laboratories Inc

Bio-Rad Laboratories, Inc. (NYSE: BIO and BIO.B), a global leader in life science research and clinical diagnostics products, today announced financial results for the second quarter ended June 30, 2024.

Second-quarter 2024 total net sales were $638.5 million, a decrease of 6.3 percent compared to $681.1 million reported for the second quarter of 2023. On a currency-neutral basis, quarterly sales decreased 5.4 percent compared to the same period in 2023.

Life Science segment net sales for the second quarter were $250.5 million, a decrease of 16.5 percent compared to the same period in 2023. On a currency-neutral basis, Life Science segment sales decreased by 15.9 percent compared to the same quarter in 2023. The currency-neutral year-over-year sales decrease was broad-based and was primarily driven by ongoing weakness in the biotech and biopharma end-markets.

Clinical Diagnostics segment net sales for the second quarter were $387.9 million, an increase of 2.1 percent compared to the same period in 2023. On a currency-neutral basis, net sales increased 3.2 percent versus the same quarter last year. The currency-neutral year-over-year sales increase was primarily driven by an increased demand for quality control and blood typing products.

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 $101.5 million versus $89.6 million during the same quarter last year.

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 $2,165.5 million, or $76.26 per share, on a diluted basis, versus a net loss of $1,162.3 million, or $39.59 per share, on a diluted basis, reported for the same period of 2023.

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 $107.1 million versus $107.9 million during the comparable prior-year period.

Non-GAAP net income for the second quarter of 2024 was $88.5 million, or $3.11 per share, on a diluted basis, compared to $88.5 million, or $3.00 per share, on a diluted basis, during the same period in 2023.

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 $500 million of the company’s outstanding common stock. As of July 31, 2024, a total of approximately $578 million is available for repurchases under the 2023 Share Repurchase Program.

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 U.S., or (+1) 203-518-9856 from outside the U.S., and provide access code: BIORAD.

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 the United States. Investors should review the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying this press release.

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 Hercules, California, Bio-Rad operates a global network of research, development, manufacturing, and sales operations with approximately 8,000 employees and $2.7 billion in revenues in 2023. Our customers include universities, research institutions, hospitals, food safety and environmental quality laboratories, and biopharmaceutical companies. Together, we develop innovative, high-quality products that advance science and save lives. To learn more, visit bio-rad.com.

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 China, supply chain issues, international legal and regulatory risks, our ability to develop and market new or improved products, our ability to compete effectively, foreign currency exchange fluctuations, product quality and liability issues, our ability to integrate acquired companies, products or technologies into our company successfully, changes in the healthcare industry, and natural disasters and other catastrophic events beyond our control. For further information regarding the Company's risks and uncertainties, please refer to the "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in the Company's public reports filed with the Securities and Exchange Commission (the "SEC"), including the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 to be filed with the SEC. The Company cautions you not to place undue reliance on forward-looking statements, which reflect an analysis only and speak only as of the date hereof. Bio-Rad Laboratories, Inc. disclaims any obligation to update these forward-looking statements.

Bio-Rad Laboratories, Inc. Condensed Consolidated Statements of Income (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

 

55.6%

$

362,483

 

53.2%

$

681,085

 

54.5%

$

724,900

 

53.4%

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

 

56.4%

$

370,196

 

54.4%

$

691,138

 

55.3%

$

737,231

 

54.3%

  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

 

15.9%

$

89,617

 

13.2%

$

146,204

 

11.7%

$

151,530

 

11.2%

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

 

16.8%

$

107,944

 

15.8%

$

166,065

 

13.3%

$

192,111

 

14.1%

  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

)

-339.2%

$

(1,162,251

)

-170.6%

$

(1,781,570

)

-142.6%

$

(1,093,289

)

-80.5%

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

 

13.9%

$

88,511

 

13.0%

$

153,733

 

12.3%

$

187,871

 

13.8%

  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

)

-339.2%

$

(1,162,251

)

-170.6%

$

(1,781,570

)

-142.6%

$

(1,093,289

)

-80.5%

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

 

21.6%

$

137,856

 

20.2%

$

246,744

 

19.8%

$

286,397

 

21.1%

(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.

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