CINCINNATI--(BUSINESS WIRE)--Nov. 12, 2008--Meridian Bioscience,
Inc. (NASDAQ: VIVO):
GENERAL HIGHLIGHTS
Meridian Bioscience, Inc., Cincinnati, Ohio (NASDAQ: VIVO) today:
reported record fourth quarter and full-year fiscal 2008 net
sales of $36.5 million and $139.6 million, respectively,
increases of 13% and 14%, respectively, over the same periods
of the prior fiscal year;
reported record fourth quarter and full-year fiscal 2008
operating income of $11.4 million and $44.4 million,
respectively, increases of 32% and 27%, respectively, over the
same periods of the prior fiscal year;
reported record fourth quarter fiscal 2008 earnings and
diluted earnings per share of $7.7 million and $0.19,
respectively, an increase of 19% over the same periods of the
prior fiscal year;
reported record full-year fiscal 2008 earnings and diluted
earnings per share of $30.2 million and $0.74, respectively,
increases of 24% and 23%, respectively, over the same period
of the prior fiscal year on a NON-GAAP basis. (Fiscal 2007
excludes a tax benefit of $2.4 million, or $0.06 per diluted
share, which is discussed below);
declared the regular quarterly cash dividend of $0.14 per
share for the fourth quarter of fiscal 2008, (indicated annual
rate of $0.56 per share), 27% higher than the regular
quarterly rate of fiscal 2007;
announced a 21% increase in the annual indicated cash dividend
for fiscal 2009 from $0.56 to $0.68 per share; and
reaffirmed its fiscal 2009 guidance of per share diluted
earnings between $0.86 and $0.90 on net sales of $157 million
to $160 million.
FINANCIAL HIGHLIGHTS (UNAUDITED)
In Thousands, Except per Share Data
----------------------------------------------------------------------
Three Months Ended Fiscal Year Ended
September 30 September 30
2008 2007 % Change 2008 2007 % Change
--------- --------- -------- -------- -------- --------
Net Sales $ 36,475 $ 32,386 13% $139,639 $122,963 14%
Operating
Income 11,420 8,635 32% 44,350 35,030 27%
Net Earnings 7,684 6,444 19% 30,202 26,721 13%
Diluted
Earnings per
Share $ 0.19 $ 0.16 19% $ 0.74 $ 0.66 12%
NON-GAAP net
earnings and
diluted
earnings per
share
excluding tax
benefit -
Net
Earnings $ 7,684 $ 6,444 19% $ 30,202 $ 24,296 24%
Diluted
Earnings
per Share $ 0.19 $ 0.16 19% $ 0.74 $ 0.60 23%
Sept. 30, Sept. 30,
2008 2007
--------- ---------
Cash and
short-term
investments $ 49,297 $ 49,400
Working
Capital 83,397 76,678
Long-term Debt
Obligations - -
Shareholders'
Equity 128,489 112,948
Total Assets 146,431 132,698
FOURTH QUARTER AND FULL FISCAL YEAR RESULTS
Fiscal year 2007 results include the effects of a tax benefit in
the amount of $2.4 million, or $0.06 per diluted share, related to an
adjustment to tax reserves that was recorded upon the expiration of
the statute of limitations on certain income tax returns.
Net sales for the fourth quarter of fiscal 2008 were $36,475,000
as compared to $32,386,000 for the same period of the prior fiscal
year, an increase of 13%. Net earnings for the fourth quarter of
fiscal 2008 were $7,684,000, or $0.19 per diluted share, up 19% over
the fourth quarter of fiscal 2007. Diluted common shares outstanding
for the fourth quarters of fiscal 2008 and 2007 were 41,062,000 and
40,925,000 respectively.
Net sales for fiscal 2008 were $139,639,000 as compared to
$122,963,000 for fiscal 2007, an increase of 14%. Net earnings for
fiscal 2008 were $30,202,000 or $0.74 per diluted share, increases of
24% and 23%, respectively, over fiscal 2007, excluding the tax benefit
mentioned above. Diluted common shares outstanding for fiscal 2008 and
2007 were 41,029,000 and 40,738,000, respectively, an increase of 1%
due primarily to the exercise of stock options.
CASH DIVIDEND MATTERS
The Board of Directors declared the regular quarterly cash
dividend of $0.14 per share for the fourth quarter ended September 30,
2008. The dividend is of record November 21, 2008 and payable December
2, 2008. The Board of Directors has approved an increase to the
indicated regular quarterly cash dividend rate to $0.17 per share for
fiscal 2009. This annual indicated dividend rate of $0.68 per share
represents a 21% increase over the fiscal 2008 rate of $0.56 per
share. Meridian has now increased its regular cash dividend rate
eighteen times since it established a regular dividend in 1991. Guided
by the Company's policy of setting a payout ratio of between 75% and
85% of each fiscal year's expected net earnings, the actual
declaration and amount of dividends will be determined by the Board of
Directors in its discretion based upon its evaluation of earnings,
cash flow requirements and future business developments, including
acquisitions.
FISCAL 2009 GUIDANCE REAFFIRMED
For the fiscal year ending September 30, 2009, management expects
net sales to be in the range of $157 million to $160 million and per
share diluted earnings to be between $0.86 and $0.90. The per share
estimates assume an increase in average diluted shares outstanding
from approximately 41.0 million at fiscal 2008 year end to 41.2
million at fiscal 2009 year end. The sales and earnings guidance
provided in this press release does not include the impact of any
acquisitions the Company might complete during fiscal 2009.
FINANCIAL CONDITION
The Company's financial condition is sound. At September 30, 2008,
current assets were $99.5 million compared to current liabilities of
$16.1 million, thereby producing working capital of $83.4 and a
current ratio of 6.2. Cash and short-term investments were $49.3
million and the Company had 100% borrowing capacity under its
$30,000,000 commercial bank credit facility. The Company has no
bank-debt obligations outstanding.
FOURTH QUARTER AND FISCAL 2008 UNAUDITED OPERATING RESULTS
(In Thousands, Except per Share Data)
The following table sets forth the unaudited comparative results of
Meridian on a U.S. GAAP basis for the interim and annual periods in
fiscal 2008 and fiscal 2007.
Three Months Ended Fiscal Year Ended
September 30, September 30,
2008 2007 2008 2007
------------------------------------
Net sales $36,475 $32,386 $139,639 $122,963
Cost of goods sold 14,149 13,197 53,159 48,023
------------------------------------
Gross profit 22,326 19,189 86,480 74,940
------------------------------------
Operating expenses -
Research and development 1,811 1,746 6,183 6,085
Sales and marketing 5,073 4,793 18,770 17,124
General and administrative 4,022 4,015 17,177 16,701
------------------------------------
Total operating expenses 10,906 10,554 42,130 39,910
------------------------------------
Operating income 11,420 8,635 44,350 35,030
Other income (expense), net 338 483 1,642 1,652
------------------------------------
Income before income taxes 11,758 9,118 45,992 36,682
Income tax provision 4,074 2,674 15,790 9,961
------------------------------------
Net earnings 7,684 $ 6,444 $ 30,202 $ 26,721
====================================
Net earnings per basic common
share $ 0.19 $ 0.16 $ 0.75 $ 0.67
Basic common shares outstanding 40,240 39,808 40,093 39,584
Net earnings per diluted common
share $ 0.19 $ 0.16 $ 0.74 $ 0.66
Diluted common shares outstanding 41,062 40,925 41,029 40,738
The following table sets forth the unaudited operating segment
data for the interim and annual periods in fiscal 2008 and fiscal 2007
(in thousands).
Three Months Twelve Months
Ended Ended
September 30, September 30,
2008 2007 2008 2007
------------------------------------
Net sales
U.S. Diagnostics $23,541 $18,960 $ 88,419 $ 74,845
European Diagnostics 6,271 5,755 27,980 23,563
Life Science 6,663 7,671 23,240 24,555
------------------------------------
$36,475 $32,386 $139,639 $122,963
====================================
Operating Income
U.S. Diagnostics $ 9,522 $ 5,801 $ 36,095 $ 26,454
European Diagnostics 926 1,137 5,397 4,930
Life Science 1,069 1,601 3,186 3,795
Eliminations (97) 96 (328) (149)
------------------------------------
$11,420 $ 8,635 $ 44,350 $ 35,030
====================================
COMPANY COMMENTS
John A. Kraeutler, Chief Executive Officer, stated, "Record
operating results continued for the fourth quarter and full year 2008
due primarily to growing strength in our four strategic diagnostics
test categories. Increasing concerns about emerging infectious
diseases such as toxigenic E. coli, along with more virulent hospital
associated infections such as C. difficile, are expanding global
demand for simpler, more rapid diagnostic tests that can help medical
professionals control and treat disease. Additionally, as health care
costs become more burdensome, Meridian's HpSA tests, that can rapidly
detect the bacterium responsible for most peptic ulcers, continue to
enable managed care insurers to reduce the costs of chronic use of
symptom-relieving drugs by testing and treating patients at risk. The
fourth growth category for Meridian includes our tests for respiratory
disease. With the flu season just around the corner, our new TRU brand
rapid tests for influenza and respiratory syncytial virus (RSV) are
poised to contribute market share gains as well as incremental profit
margin. Strong growth from our diagnostics business units allowed
further operating efficiencies to be realized. Gross profit improved
by 100 basis points and, with careful spending, we were able to
realize a 400 basis point improvement in operating income.
"As Fiscal 2009 begins, our emphasis on executing the right
strategies will continue double-digit growth in each of our core
diagnostic categories; restore our Life Science business unit to its
historic mid-teens growth rates; improve our global distribution
network; and launch 3-5 new products on schedule. Early in the second
quarter we intend to enter clinical trials for a brand new molecular
amplification technology, 'LAMP'. After years of development and
optimization, we believe we have a simplified molecular technology
capable of being performed with very few steps and requiring no
capital equipment. Our first test will be for the toxin-producing
forms of C. difficile bacteria and we anticipate incremental revenues
in the second half of fiscal 2009. Over the next five years we will
aggressively expand the menu of this new molecular testing platform.
In addition, we will target our TRU format toward rapid point-of-care
opportunities, and we will continue to innovate with new tests for
emerging infectious diseases.
"We expect Fiscal 2009 to yield record performance once again. We
will continue to drive double-digit organic top-line growth through
innovation and maximize shareholder value through superior operating
efficiency."
William J. Motto, Executive Chairman of the Board, said, "We look
forward to another year of record operating results and double digit
growth as we enter fiscal 2009. Consistent with past practice and our
cash dividend policy, the Board of Directors increased the regular
indicated cash dividend from $0.56 to $0.68 per share, a 21% increase.
This is the eighteenth increase in our cash dividend rate since we
started paying cash dividends in 1991. We are comfortable with our
fiscal 2009 sales and earnings guidance which calls for sales between
$157 million and $160 million and diluted per share earnings of $0.86
to $0.90, an increase in the range of 19% to 22% year-over-year.
"Our financial position is solid and our cash flow from operations
is strong. We will continue to introduce new products, improve
operating efficiency, and pursue attractive acquisitions as we move
forward. Fiscal 2009 promises to be a year of solid growth, potential
opportunities and record results."
NON-GAAP FINANCIAL MEASURES
In this press release, we have provided information on net
earnings, basic earnings per share, and diluted earnings per share
excluding the tax benefit noted above. We believe this information is
useful to an investor in evaluating our performance because:
These measures help investors to more meaningfully evaluate and
compare the results of operations from period to period by
removing the favorable impact of a fiscal 2007 discrete
material item that is not expected to recur in the future; and
These measures are used by our management for various purposes,
including evaluating performance against incentive bonus
achievement targets, comparing performance from period to
period in presentations to our board of directors, and as a
basis for strategic planning and forecasting.
We have provided reconciliations of net earnings, basic earnings
per share and diluted earnings per share, with and without the tax
benefit noted above in the tables below for fiscal years ended
September 30, 2008 and 2007.
FISCAL YEAR GAAP TO NON-GAAP RECONCILIATION TABLES
Net Earnings - 2008 2007
----------------
US GAAP basis $30,202 $26,721
Tax benefit not expected to recur in the future - (2,425)
----------------
Excluding tax benefit $30,202 $24,296
================
Net Earnings per Basic Common Share - 2008 2007
----------------
US GAAP basis $0.75 $0.67
Tax benefit not expected to recur in the future - (0.06)
----------------
Excluding tax benefit $0.75 $0.61
================
Net Earnings per Diluted Common Share - 2008 2007
----------------
US GAAP basis $0.74 $0.66
Tax benefit not expected to recur in the future - (0.06)
----------------
Excluding tax benefit $0.74 $0.60
================
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 within
the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, 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, Chief Executive Officer, 513-271-3700
SOURCE: Meridian Bioscience, Inc.
