Meridian Bioscience Provides Sales and Earnings Guidance for Fiscal 2008 and Reaffirms Fiscal 2007 Guidance
CINCINNATI--(BUSINESS WIRE)--Aug. 14, 2007--Meridian Bioscience, Inc., Cincinnati, Ohio (NASDAQ:VIVO) today provided the financial community with guidance regarding the Company's fiscal 2008 sales and earnings estimates. Based on the Company's business planning and budgeting activities for the fiscal year ending September 30, 2008, management expects net sales to be in the range of $140 to $142 million and per share diluted earnings to be between $0.72 and $0.75. The per share estimates assume an increase in average shares outstanding from approximately 40.7 million at fiscal 2007 year end to 41 million at fiscal 2008 year end. Net income is expected to increase between 20% and 25% from fiscal 2007 to fiscal 2008. Importantly, this increase excludes the impact of tax benefits of $2.4 million, or $0.06 per diluted share, recognized in fiscal 2007 which are not expected to recur. The sales and earnings guidance provided in this press release is from expected internal growth and does not include the impact of any acquisitions the Company might complete during fiscal 2007 or 2008.
The Company also reaffirmed its fiscal 2007 guidance of net sales between $121 million and $124 million and per share-diluted earnings between $0.57 and $0.60 for the fiscal year ending September 30, 2007, excluding the $0.06 tax benefit noted above.
John A. Kraeutler, President and Chief Operating Officer, stated, "Our diagnostics business units are expected to continue to build momentum driven by rapid tests for gastrointestinal diseases such as C. difficile, pediatric rotavirus and toxigenic E. coli. In addition, based upon our HpSA line of products, we will continue to focus on moving managed care plans towards a "test and treat" strategy for eradicating the primary cause of peptic ulcers, H. pylori. Our Life Science unit is also expected to add double-digit growth and we look forward to satisfying the contract requirements of the National Institute of Allergy and Infectious Diseases (NIAID) announced last week. We will continue to drive our manufacturing departments to extract maximum efficiency and output. Our R&D efforts are expected to yield several new, high potential products in the early months of fiscal 2008. All in all, our plan for Fiscal 2008 is financially strong and well-balanced."
William J. Motto, Chairman & Chief Executive Officer added, "We continue to be comfortable with our guidance of sales in the $121 to $124 million range and diluted per share earnings of between $0.57 and $0.60 (excluding the tax benefit of $0.06 per diluted share noted above) for the fiscal year ending September 30, 2007. Fiscal 2007 will be a solid year of organic growth, adding cash to the balance sheet, and positioning the business for continued double-digit internal growth in both revenues and earnings. As mentioned previously, management intends to recommend another increase in the regular cash dividend rate to the Board of Directors at the November meeting. If approved, it will be our 17th increase since establishing a cash dividend policy eighteen years ago. Building shareholder value through higher sales, earnings, cash flow, and dividends coupled with a sound financial condition continues to be our objective. Finally, we continue to review possible acquisition opportunities that have the potential to contribute to growth in sales and earnings."
The reconciliation of the impact of certain 2007 tax benefits to GAAP is contained in our Press Release dated July 19, 2007 and is incorporated herein by reference.
FORWARD LOOKING STATEMENTS
The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil litigation for forward-looking statements accompanied by meaningful cautionary statements. Except for historical information, this report contains forward-looking statements which may be identified by words such as "estimates", "anticipates", "projects", "plans", "seeks", "may", "will", "expects", "intends", "believes", "should" and similar expressions or the negative versions thereof and which also may be identified by their context. Such statements, whether expressed or implied, are based upon current expectations of the Company and speak only as of the date made. The Company assumes no obligation to publicly update any forward-looking statements. These statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially, including, without limitation, the following: Meridian's continued growth depends, in part, on its ability to introduce into the marketplace enhancements of existing products or new products that incorporate technological advances, meet customer requirements and respond to products developed by Meridian's competition. While Meridian has introduced a number of internally developed products, there can be no assurance that it will be successful in the future in introducing such products on a timely basis. Ongoing consolidations of reference laboratories and formation of multi-hospital alliances may cause adverse changes to pricing and distribution. Costs and difficulties in complying with laws and regulations administered by the United States Food and Drug Administration can result in unanticipated expenses and delays and interruptions to the sale of new and existing products. Changes in the relative strength or weakness of the U.S. dollar can change expected results. One of Meridian's main growth strategies is the acquisition of companies and product lines. There can be no assurance that additional acquisitions will be consummated or that, if consummated, will be successful and the acquired businesses successfully integrated into Meridian's operations. In addition to the factors described in this paragraph, Part I, Item 1A Risk Factors of our Form 10-K contains a list of uncertainties and risks that may affect the financial performance of the Company.
Meridian is a fully integrated life science company that manufactures, markets and distributes a broad range of innovative diagnostic test kits, purified reagents and related products and offers biopharmaceutical enabling technologies. Utilizing a variety of methods, these products and diagnostic tests provide accuracy, simplicity and speed in the early diagnosis and treatment of common medical conditions, such as gastrointestinal, viral and respiratory infections. Meridian's diagnostic products are used outside of the human body and require little or no special equipment. The Company's products are designed to enhance patient well-being while reducing the total outcome costs of healthcare. Meridian has strong market positions in the areas of gastrointestinal and upper respiratory infections, serology, parasitology and fungal disease diagnosis. In addition, Meridian is a supplier of rare reagents, specialty biologicals and related technologies used by biopharmaceutical companies engaged in research for new drugs and vaccines. The Company markets its products and technologies to hospitals, reference laboratories, research centers, veterinary testing centers, physician offices, diagnostics manufacturers and biotech companies in more than 60 countries around the world. The Company's shares are traded through NASDAQ's Global Select Market, symbol VIVO. Meridian's website address is www.meridianbioscience.com.
CONTACT: Meridian Bioscience, Inc. John A. Kraeutler, President, 513-271-3700 SOURCE: Meridian Bioscience, Inc.