CAMARILLO, Calif., Oct. 31, 2000 (PRIMEZONE) -- The following is being issued by BioSource International, Inc. (Nasdaq:BIOI).
OPERATING RESULTS
BioSource International, Inc. announced today its operating results for the quarter and nine months ended September 30, 2000. Net sales increased $680,000, or 9.1% (12.2% before giving effect to the impact of $231,000 of negative foreign exchange) to $8.2 million for the three months ended September 30, 2000. Net sales for the nine months ended September 30, 2000 increased $2.1 million, or 9.3% (12.3% before giving effect to the impact of $686,000 of negative foreign exchange) to $24.5 million.
The Company achieved revenue growth of 20.2% in North America for the nine months ended September 30, 2000 (17.5% for the quarter ended September 30, 2000) from increased sales of assays, oligonucleotides, proteins and products related to signal transduction. European sales growth was 1.5% in local currency for the nine months ended September 30, 2000 (2.5% for the quarter ended September 30, 2000) as growth in research products were largely offset by declines in clinical sales. Sales in the rest of the world increased 5.6% for the nine months ended September 30, 2000 and 12.1% for the quarter ended September 30, 2000 due to higher sales of clinical products.
For the quarter ended September 30, 2000, the Company reported a net loss available to common stockholders of $.35 per share. The Company incurred charges of which $.28 per share was from the conversion of preferred stock to common stock (on September 20, 2000 the Company's preferred stock automatically converted into common stock resulting in the recognition of a $2.4 million non-cash dividend); and $.13 per share ($1.7 million in the aggregate) related to the transition to a new senior management team including severance costs of $900,000, stock compensation charge of $600,000 and professional fees of $200,000. Adjusting for these non-recurring items, net income per share for the quarter ended September 30, 2000 would have been $.06 per share as compared to $.12 per share for the similar quarter last year. The third quarter of 2000 results included approximately $.03 of one time cost and $.03 of infrastructure investment, which are described below. For the nine months ended September 30, 2000, the Company reported a net loss available to common stockholders of $.37 per share. The Company had costs of $.48 per share related to the preferred stock non-cash dividends, $.18 related to the transition of the new senior management team and costs related to the withdrawal of the Company's follow on stock offering in April 2000 of $523,000. Adjusting for these items, net income per share for the nine months ended September 30, 2000 would have been $.29, compared to net income per share of $.38 in the similar period last year.
For the three and nine months ended September 30, 2000, gross margins were 58.3% and 60.3% respectively, compared to 61.0% and 61.2% in the comparable periods of 1999. Gross profit for the third quarter was negatively affected by foreign exchange, the cost associated with the recent move to a new facility and the higher cost of the new facility as well as raw material cost increases in the serum and media product lines.
Operating expenses increased $2.6 million for the quarter and $3.9 million for the nine months due to an increase in research and development and sales and marketing expenses to support the growth of the business and third quarter charges for the aforementioned cost of the transition to a new senior management team, a $200,000 incentive compensation charge related to the bonus program for middle management and increased legal cost related to an employee termination ($150,000) at one of the Company's subsidiaries. The Company intends to increase its investments in its infrastructure to accelerate its sales growth. In addition, the Company will be recording a non-cash stock compensation charge of $340,000 per quarter over the four-year vesting period of the options granted to the new senior management team.
The tax rate for the nine months benefited from R & D and other tax credits which when applied to the lower income for the period resulted in a higher than normal benefit rate for the quarter.
"I am excited and optimistic about the company's future," said recently hired President and CEO Russell D. Hays. "We are well positioned to carry out our aggressive strategy for growth and expansion so that we can maximize shareholder value. I firmly believe that we are uniquely positioned in the market to achieve significant growth", added Mr. Hays. "To do this, we have begun implementing a more aggressive sales and marketing strategy. We have expanded our Camarillo facility and will be expanding our other facilities to support our sales growth and profitability targets. We will also be hiring additional personnel, and we are proactively pursuing significant acquisitions."
"As a first step in implementing our new growth strategy, I am pleased to announce the addition of two executives to the Company. David Thrower has agreed to join the Company as Senior Vice President of Global Marketing. Mr. Thrower was most recently Senior Vice President of Global Marketing at GN ReSound, Inc. Prior to his leadership role at GN ReSound, Mr. Thrower worked as Vice President of Quattro Consulting, Inc., a Sausalito, California based management consulting firm working with CEOs and key company executives solving complex strategic issues. Mr. Thrower has also worked with Bain & Company, a Boston, Massachusetts, based strategic consulting firm with over 200 employees and over 25 offices around the world. Mr. Thrower holds a Masters degree in Business Administration from the Harvard Graduate School of Business Administration, and a Bachelor's degree in Mathematics and Computational Sciences from Stanford University. "I'm very pleased to have David join the BioSource team. David and I have worked together at both Nellcor Puritan Bennett and Resound where, through his leadership, marketing and analytical skills, he made a significant contribution to their success. David's experience and education will help him to play a major role in the future success of BioSource."
"I am also pleased to announce the addition of Brent Keller as Senior Vice President of Global Sales and Business Development. Brent has over twenty years of experience in the biotech and healthcare services markets, most recently as Director of Marketing, Sales and Business Development with Chemicon International. Prior to that time, Mr. Keller worked with Stratagene as General Manager of Instrument Systems, and founded his own marketing company, Conceptual Marketing International. Mr. Keller has held marketing and product development and planning positions with Beckman Instruments, Infinitek, Inc., Beckton Dickenson Laboratotries, and Bio-Rad Laboratories. He holds a M.B.A. from Pepperdine University and a B.A. in Biology from Rensselaer Polytechnic Institute where he also completed graduate work in Virology and Immunology. Brent's broad experience in our markets will assist us in reaching our aggressive sales goals in the coming years."
The Company will conduct a conference call at 10:00 a.m. PDT/1:00 p.m. EDT today. All interested parties may call (212) 346-7493, and reservation number 16640506 to participate in the call. The conference call will be available for playback for 24 hours. To access the playback, call (800) 633-8284: enter reservation # 16640506.
BioSource International, Inc. is a broad based life sciences and genomics company focused on providing solutions in the areas of functional genomics, proteomics, as well as advanced drug discovery through the development, manufacturing, marketing and distribution of unique biologically active reagent systems which facilitate, enable and accelerate pharmaceutical development as well as biomedical research.
This news release may contain forward-looking statements that involve risks and uncertainties, including risks described from time to time in reports filed by Biosource International, Inc. with the Securities and Exchange Commission, including its most recently filed Annual Report on Form 10-K/A.
BIOSOURCE INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three and Nine Months Ended September 30, 2000 and 1999
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Ended
September 30, 2000
2000 1999
-------- ---------
Net sales $ 8,150.4 7,470.2
Cost of sales 3,395.1 2,913.5
-------- ---------
Gross profit 4,755.3 4,556.7
58.3% 61.0%
Operating expenses:
Research and development 871.8 2,593.3
Sales and marketing 1,325.4 1,123.6
General and administrative 3,420.4 1,052.5
Amortization of intangibles 274.6 267.0
-------- ---------
Total operating expenses 5,892.2 3,245.5
-------- ---------
Operating income (1,136.9) 1,311.2
Interest income (expense), net 13.1 (253.3)
Other income (expense), net (46.8) 67.1
-------- ---------
Income before income taxes (1,170.6) 1,125.0
Provision for income taxes (609.0) 223.4
-------- ---------
Net income (loss) (561.6) 901.6
Non-cash preferred stock
dividend and effects of
beneficial conversion (2,384.1) --
-------- ---------
Net income (loss) available
to common stockholders $ (2,945.7) 901.6
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Net income (loss) per share:
Basic $ (0.35) 0.12
======== =========
Diluted $ (0.35) 0.12
======== =========
Shares used to compute net
income per share:
Basic 8,362.0 7,248.3
======== =========
Diluted 8,362.0 7,830.3
======== =========
Nine Months Ended
September 30,
2000 1999
--------- -------
Net sales 24,490.3 22,414.5
Cost of sales 9,710.6 8,691.1
--------- -------
Gross profit 14,779.7 13,723.4
60.3% 61.2%
Operating expenses:
Research and development 2,361.2 802.4
Sales and marketing 4,065.3 3,358.4
General and administrative 6,183.1 3,220.0
Amortization of intangibles 818.0 757.9
--------- -------
Total operating expenses 13,659.7 9,697.5
--------- -------
Operating income 1,120.0 4,025.9
Interest income (expense), net (180.1) (739.9)
Other income (expense), net 47.5 94.4
--------- -------
Income before income taxes 987.4 3,380.4
Provision for income taxes 59.9 653.8
--------- -------
Net income (loss) 927.5 2,726.6
Non-cash preferred stock
dividend and effects of
beneficial conversion (3,853.4) --
--------- -------
Net income (loss) available
to common stockholders (2,925.9) 2,726.6
========= =======
Net income (loss) per share:
Basic (0.37) 0.38
========= =======
Diluted (0.37) 0.35
========= =======
Shares used to compute net
income per share:
Basic 7,997.3 7,205.9
========= =======
Diluted 7,997.3 7,702.2
========= =======
BIOSOURCE INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except for share and per share amounts)
Sept. 30, Dec. 31,
2000 1999
------------- ----------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 9,226.7 4,644.5
Accounts receivable, less
allowance for doubtful
accounts of $239.1 at
September 30, 2000
and $328.1 at
December 31, 1999 6,385.0 5,088.9
Inventories, net 6,751.6 6,015.3
Prepaid expenses and
other current assets 1,340.2 578.7
Deferred income taxes 4,123.1 1,997.8
--------- --------
Total current assets 27,826.6 18,325.2
Property and equipment, net 5,706.4 5,392.6
Intangible assets net of
accumulated amortization
$2,002.4 at September 30,
2000 and $1,186.4 at
December 31, 1999 13,026.1 13,816.3
Other assets 353.4 819.3
Deferred tax assets 1,868.4 1,868.4
========= ========
$ 48,780.9 40,221.8
========= ========
Liabilities and
Stockholders' Equity
Current liabilities:
Notes payable to banks,
current portion $ 1,222.9 2,754.4
Accounts payable 2,694.3 2,067.6
Accrued expenses 2,648.0 1,923.8
Deferred income 372.2 369.0
Income tax payable -- 225.5
--------- --------
Total current liabilities 6,937.4 7,340.3
Notes payable to banks, less
current portion -- 11,459.3
--------- --------
Total liabilities 6,937.4 18,799.6
Stockholders' equity:
Common stock, $.001 par value.
Authorized 20,000,000 shares:
issued 10,595,906 shares and
outstanding 10,305,475 shares
at September 30, 2000; issued
7,711,716 shares and
outstanding 7,425,716 shares
at December 31, 1999 10.3 7.4
Additional paid-in capital 46,117.5 22,025.9
Retained earnings (1,977.7) 948.1
Accumulated other comprehensive loss (2,306.6) (1,559.2)
--------- --------
Net stockholders' equity 41,843.5 21,422.2
========= ========
$ 48,780.9 40,221.8
========= ========