View printer-friendly version | << Back |  | Meridian Bioscience Reports Second Quarter 2015 Operating Results, Declares Regular Cash Dividend, and Reaffirms Fiscal 2015 Guidance |  | CINCINNATI--(BUSINESS WIRE)--Apr. 23, 2015--
Meridian Bioscience, Inc., (NASDAQ: VIVO):
GENERAL HIGHLIGHTS
Meridian Bioscience, Inc., (NASDAQ: VIVO) today:
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reported record fiscal 2015 second quarter and first six months net
revenues of $51.5 million and $99.6 million, respectively, increases
of 3% and 5%, respectively, from the same periods of the prior fiscal
year;
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reported second quarter operating income of $15.7 million, flat from
the same period of the prior fiscal year;
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reported six months operating income of $28.4 million, an increase of
4% from the same period of the prior fiscal year;
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reported second quarter net earnings of $10.1 million, or $0.24 per
diluted share, a decrease of 2% and flat, respectively, compared to
the fiscal 2014 second quarter;
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reported first six months net earnings of $18.0 million, or $0.43 per
diluted share, increases of 1% and 2%, respectively, compared to the
same period of fiscal 2014;
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declared the regular quarterly cash dividend of $0.20 per share for
the second quarter of fiscal 2015, (annual indicated rate of $0.80 per
share), the same as the regular quarterly rate for fiscal 2014; and
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reaffirmed its fiscal 2015 guidance of per share diluted earnings
between $0.85 and $0.91 on net revenues of $193 million to $200
million.
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FINANCIAL HIGHLIGHTS (UNAUDITED)
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In Thousands, Except per Share Data
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Three Months Ended
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Six Months Ended
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March 31,
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March 31,
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2015
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2014
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% Change
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2015
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2014
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% Change
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Net Revenues
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$
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51,545
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$
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50,134
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3
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%
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$
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99,558
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$
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94,928
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5
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%
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Operating Income
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15,732
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15,666
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-
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%
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28,401
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27,292
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4
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%
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Net Earnings
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10,070
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10,300
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-2
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%
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17,971
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17,726
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1
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%
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Diluted Earnings per Share
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$
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0.24
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$
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0.24
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-
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%
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$
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0.43
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$
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0.42
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2
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%
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March 31,
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2015
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2014
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Cash and Equivalents
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$
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42,719
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$
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38,213
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Working Capital
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101,308
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98,417
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Shareholders’ Equity
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161,098
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160,332
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Total Assets
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178,312
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178,155
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COMPANY COMMENTS
John A. Kraeutler, Chairman of the Board and Chief Executive Officer
said, “Second fiscal quarter revenues met our expectations despite
strong currency headwinds. Overall revenues increased by 3%, 6% in
constant currency, to establish a new quarterly record at $51.5 million.
Net earnings of $10.1 million were strong, although down 2% versus the
prior year period as investment spending increased to maintain our
organic growth capabilities into the future. Importantly, multiple areas
of the business reported solid performance from a well-balanced set of
growth drivers.
Our Diagnostics (Dx) segment reported 4% revenue growth led by the
illumigene® product line which recorded
its first $10 million quarter. On a constant currency basis, growth for
Dx was 7%. During the quarter we added 33 new illumigene
customers and 63 new assays. At present, illumigene is in
use in approximately 1,400 laboratories. Strong revenue growth was also
reported in both the foodborne and H. pylori categories and all
geographies showed positive growth on a constant currency basis. In
February, we launched illumigene Chlamydia and illumigene
Gonorrhea, our sixth and seventh illumigene tests, to
markets outside of the U.S. and, in April, we filed our FDA 510k
application for illumigene HSV I & HSV II, which we expect
will be key tests in helping to control herpes infections. Also in
February, we launched the TRU STREP PNEUMO™ immunoassay test to markets
outside of the U.S.
Our Life Science segment had a strong quarter; however, revenues were
down by 1% due to a very strong performance one year ago. On a constant
currency basis, the segment achieved 1% growth. Revenue for the core
immunoassay components business, while down 1% for the quarter, is up
10% year-to-date, and in March we opened an office in Beijing, China to
help service our rapidly expanding industrial business base. The Bioline
molecular components arm of Meridian Life Science reported 5% revenue
growth on a constant currency basis for the quarter and introduced 5 new
products for RNA testing in March.
We are pleased with our results for the first half of fiscal 2015, with
overall 5% revenue growth (7% on a constant currency basis) and growth
in our net earnings while we continue to invest for future growth. On a
constant currency basis, each segment posted solid mid-single digit
growth for the six months and our illumigene, foodborne
and H. pylori product categories are all showing double digit
increases over the prior year period. Our gross profit margins and
overall operating efficiency improved over the first quarter. We
continue to maintain a strong balance sheet with a cash position in
excess of $42 million and zero borrowings. As previously stated, we are
evaluating opportunities for licensing and for potential acquisition
where we believe there is a clear strategic fit and a positive return
for Meridian shareholders.”
CASH DIVIDEND MATTERS
The Board of Directors declared the regular quarterly cash dividend of
$0.20 per share for the second quarter ended March 31, 2015. The
dividend is of record May 4, 2015 and payable May 14, 2015. This annual
indicated dividend rate of $0.80 per share remains the same as the rate
in fiscal 2014. 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 2015 GUIDANCE REAFFIRMED
For the fiscal year ending September 30, 2015, management expects net
revenues to be in the range of $193 million to $200 million and per
share diluted earnings to be between $0.85 and $0.91. The per share
estimates assume an increase in average diluted shares outstanding from
approximately 41.9 million at fiscal 2014 year end to approximately 42.4
million at fiscal 2015 year end. The revenue 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 2015.
FINANCIAL CONDITION
The Company’s financial condition is sound. At March 31, 2015, current
assets were $116.5 million compared to current liabilities of $15.2
million, resulting in working capital of $101.3 million and a current
ratio of 7.7. Cash and equivalents were $42.7 million and the Company
had 100% borrowing capacity under its $30.0 million commercial bank
credit facility, which has been renewed through April 21, 2018. The
Company has no bank-debt obligations outstanding.
INTERIM UNAUDITED OPERATING RESULTS (In Thousands, Except per Share
Data)
The following table sets forth the unaudited comparative results of
Meridian on a U.S. GAAP basis for the interim periods of fiscal 2015 and
fiscal 2014.
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Three Months Ended
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Six Months Ended
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March 31,
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March 31,
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2015
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2014
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2015
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2014
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Net revenues
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$
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51,545
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$
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50,134
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$
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99,558
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$
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94,928
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Cost of sales
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19,024
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18,541
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37,800
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35,328
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Gross profit
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32,521
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31,593
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61,758
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59,600
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Operating expenses
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Research and development
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3,368
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3,186
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6,471
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6,039
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Selling and marketing
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6,481
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6,461
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12,561
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12,538
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General and administrative
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6,940
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6,280
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14,325
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13,731
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Total operating expenses
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16,789
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15,927
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33,357
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32,308
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Operating income
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15,732
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15,666
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28,401
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27,292
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Other income (expense), net
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(205
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(22
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(781
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(238
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Earnings before income taxes
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15,527
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15,644
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27,620
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27,054
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Income tax provision
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5,457
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5,344
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9,649
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9,328
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Net earnings
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$
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10,070
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$
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10,300
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$
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17,971
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$
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17,726
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Net earnings per basic common share
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$
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0.24
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$
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0.25
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$
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0.43
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$
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0.43
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Basic common shares outstanding
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41,707
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41,471
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41,636
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41,434
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Net earnings per diluted common share
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$
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0.24
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$
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0.24
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$
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0.43
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$
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0.42
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Diluted common shares outstanding
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42,048
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42,147
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41,972
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42,120
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The following table sets forth the unaudited segment data for the
interim periods in fiscal 2015 and fiscal 2014 (in thousands).
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Three Months Ended
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Six Months Ended
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March 31,
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March 31,
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2015
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2014
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2015
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2014
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Net revenues
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Diagnostics
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$
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38,662
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$
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37,061
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$
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75,248
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$
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71,898
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Life Science
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12,883
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13,073
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24,310
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23,030
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$
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51,545
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$
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50,134
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$
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99,558
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$
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94,928
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Operating Income
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Diagnostics
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$
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11,951
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$
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12,301
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$
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21,878
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$
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21,685
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Life Science
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3,728
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3,306
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6,574
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5,567
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Eliminations
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53
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59
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(51
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40
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$
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15,732
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$
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15,666
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$
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28,401
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$
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27,292
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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. All statements that address operating
performance or events or developments that Meridian expects or
anticipates will occur in the future, including, but not limited to,
statements relating to per share diluted earnings and revenue, are
forward-looking statements. Such statements, whether expressed or
implied, are based upon current expectations of the Company and speak
only as of the date made. Specifically, Meridian’s forward-looking
statements are, and will be, based on management’s then-current views
and assumptions regarding future events and operating performance.
Meridian assumes no obligation to publicly update or revise any
forward-looking statements even if experience or future changes make it
clear that any projected results expressed or implied therein will not
be realized. 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, and its ability to effectively sell such products. 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. Meridian relies on
proprietary, patented and licensed technologies, and the Company’s
ability to protect its intellectual property rights, as well as the
potential for intellectual property litigation, would impact its
results. Ongoing consolidations of reference laboratories and formation
of multi-hospital alliances may cause adverse changes to pricing and
distribution. Recessionary pressures on the economy and the markets in
which our customers operate, as well as adverse trends in buying
patterns from customers can change expected results. Costs and
difficulties in complying with laws and regulations, including those
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. The international scope of Meridian’s
operations, including changes in the relative strength or weakness of
the U.S. dollar and general economic conditions in foreign countries,
can impact results and make them difficult to predict. One of Meridian’s
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 will be successfully integrated into Meridian’s operations.
There may be risks that acquisitions may disrupt operations and may pose
potential difficulties in employee retention and there may be additional
risks with respect to Meridian’s ability to recognize the benefits of
acquisitions, including potential synergies and cost savings or the
failure of acquisitions to achieve their plans and objectives. Meridian
cannot predict the possible impact of U.S. health care legislation
enacted in 2010 – the Patient Protection and Affordable Care Act, as
amended by the Health Care and Education Reconciliation Act – and any
modification or repeal of any of the provisions thereof, and any similar
initiatives in other countries on its results of operations. Efforts to
reduce the U.S. federal deficit, breaches of Meridian’s information
technology systems and natural disasters and other events could have a
materially adverse effect on Meridian’s results of operations and
revenues. In addition to the factors described in this paragraph, Part
I, Item 1A Risk Factors of our Form 10-K contains a list and description
of uncertainties, risks and other matters that may affect the Company.
Meridian is a fully integrated life science company that develops,
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
health care. 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,
diagnostics manufacturers and biotech companies in more than 60
countries around the world. The Company’s shares are traded on the
NASDAQ Global Select Market, symbol VIVO. Meridian's website address is www.meridianbioscience.com.

Source: Meridian Bioscience, Inc.
Meridian Bioscience, Inc. John A. Kraeutler, 513-271-3700 Chairman
of the Board, Chief Executive Officer
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