View printer-friendly version | << Back |  | Meridian Bioscience Reports Fourth Quarter and Full-Year Operating Results, Declares Regular Cash Dividend, and Reaffirms Fiscal 2016 Guidance |  | CINCINNATI--(BUSINESS WIRE)--Nov. 5, 2015--
Meridian Bioscience, Inc. (NASDAQ: VIVO):
GENERAL HIGHLIGHTS
Meridian Bioscience, Inc., Cincinnati, Ohio (NASDAQ: VIVO) today:
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reported fourth quarter and record full-year fiscal 2015 net revenues
of $47.1 million and $194.8 million, respectively, increases of 1% and
3%, respectively, from the same periods of the prior fiscal year;
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reported fourth quarter and full-year fiscal 2015 operating income of
$13.3 million and $56.1 million, respectively, increases of 11% and
7%, respectively, from the same periods of the prior fiscal year;
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reported fourth quarter fiscal 2015 net earnings of $8.5 million, or
$0.20 per diluted share, an increase of 3% and flat, respectively,
compared to the fiscal 2014 fourth quarter;
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reported full-year fiscal 2015 net earnings of $35.5 million, or $0.85
per diluted share, an increase of 2% compared to fiscal 2014;
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declared the regular quarterly cash dividend of $0.20 per share for
the fourth quarter of fiscal 2015, (annual indicated rate of $0.80 per
share), the same as the regular quarterly rate for fiscal 2014;
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announced the fiscal 2016 annual indicated cash dividend rate of $0.80
per share, the same as fiscal 2015; and
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reaffirmed its fiscal 2016 guidance of per share diluted earnings
between $0.86 and $0.90 on net revenues of $195 million to $200
million.
FINANCIAL HIGHLIGHTS (UNAUDITED) In
Thousands, Except per Share Data
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Three Months Ended
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Twelve Months Ended
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September 30,
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September 30,
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2015
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2014
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% Change
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2015
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2014
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% Change
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Net Revenues
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$
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47,068
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$
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46,692
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1
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%
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$
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194,830
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$
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188,832
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3
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%
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Operating Income
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13,261
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11,968
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11
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%
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56,060
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52,392
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7
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%
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Net Earnings
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8,467
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8,182
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3
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%
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35,540
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34,743
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2
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%
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Diluted Earnings per Share
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$
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0.20
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$
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0.20
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-
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%
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$
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0.85
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$
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0.83
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2
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%
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September 30,
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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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49,973
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$
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43,047
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Working Capital
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107,602
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99,013
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Shareholders’ Equity
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165,873
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161,029
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Total Assets
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183,282
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176,929
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COMPANY COMMENTS
John A. Kraeutler, Chairman of the Board and Chief Executive Officer
said, “Fiscal 2015 is now in the books and both revenues and earnings
met Company-provided guidance despite strong negative currency currents
throughout the year and some incremental state tax and legal expenses
that dampened earnings. Fourth quarter revenues of $47.1 million and
full year revenues of $194.8 million, represented 1% and 3% growth for
the respective periods. In constant currency, our growth was 4% and 6%
respectively. Net earnings increased by 3% to $8.5 million for the
quarter and by 2% to $35.5 million for the year.
Growth, in constant currency, in our Diagnostics segment’s fiscal 2015
revenues was driven by our illumigene®
molecular product line, increasing 11%; the foodborne testing category,
increasing 9%; and our H. pylori product line which grew 10%.
Overall Diagnostics revenue growth was 3% as reported for the year and
6% on a constant currency basis. The Life Science segment, also impacted
by currency, reported revenue growth of 3%, or 6% in constant currency
for the year. The Bioline molecular component business within Life
Science grew revenue 7% in constant currency; however, exchange rates
knocked that achievement to a decline of 1% on a reported basis for the
year. The immunoassay component business was strong with 6% revenue
growth for the year largely due to our continued success in penetrating
the Chinese market.
Importantly, operating income for the year increased 7% and, this trend
is expected to remain positive as we gain the benefits of improved
overhead absorption along with contribution from our new molecular
manufacturing facility. Tax rates were slightly unfavorable due
primarily to fiscal 2014 benefits that did not repeat in 2015. We expect
tax rates to stabilize between 34-35% in fiscal 2016.
Our attention is now focused on performing well in fiscal 2016. The
Diagnostics segment continues to increase its customer base for illumigene,
now totaling 1,465 customers, having added 38 new labs and 78 new
assays during the period. illumigene HSV 1&2, launched in
July, is leading our charge and, with respiratory season nearing, we
expect continued success with our Group A Strep, Mycoplasma, and
Pertussis molecular products.
In January 2016, we expect to launch illumigene Malaria,
our first molecular test for the blood borne malaria parasite. Alpha
studies in Senegal and Sierra Leone on malaria testing have gone well
and our first two scientific posters are due to be presented this month.
In the Life Science segment, we are accelerating our efforts in China
with our molecular and immunoassay components. Also, Bioline recently
launched two important new products that appeal to the Next Generation
Sequencing (NGS) market and to microRNA researchers.
Our opportunities for growth are substantial and include geographic
expansion, continued innovation in new products, new test menu additions
and new vertical market segments where creative, simple diagnostics and
tools are demanded. Our track record of financial efficiency is expected
to continue as we add to our balance sheet and build our financing
capacity for potential strategic investments and acquisitions. We look
forward to reporting a strong fiscal 2016.”
CASH DIVIDEND MATTERS
The Board of Directors declared the regular quarterly cash dividend of
$0.20 per share for the fourth quarter ended September 30, 2015. The
dividend is of record November 16, 2015 and payable November 27, 2015.
The Board of Directors has approved the indicated regular quarterly cash
dividend rate of $0.20 per share for fiscal 2016, an annual indicated
dividend rate of $0.80 per share, the same as the rate in fiscal 2015.
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 2016 GUIDANCE REAFFIRMED
For the fiscal year ending September 30, 2016, management expects net
revenues to be in the range of $195 million to $200 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 42.1 million at fiscal 2015 year end to approximately 42.2
million at fiscal 2016 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 2016.
FINANCIAL CONDITION
The Company’s financial condition is sound. At September 30, 2015,
current assets were $122.9 million compared to current liabilities of
$15.3 million, resulting in working capital of $107.6 million and a
current ratio of 8.0. Cash and equivalents were $50.0 million and the
Company had 100% borrowing capacity under its $30.0 million commercial
bank credit facility. The Company has no bank-debt obligations
outstanding.
FOURTH QUARTER AND FISCAL 2015 UNAUDITED OPERATING RESULTS (In
Thousands, Except per Share Data)
The following table sets forth the unaudited comparative results of
Meridian on a U.S. GAAP basis for the interim and annual periods of
fiscal 2015 and fiscal 2014.
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Three Months Ended
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Twelve Months Ended
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September 30,
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September 30,
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2015
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2014
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2015
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2014
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Net revenues
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$
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47,068
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$
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46,692
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$
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194,830
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$
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188,832
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Cost of sales
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17,275
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18,291
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72,948
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71,589
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Gross profit
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29,793
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28,401
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121,882
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117,243
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Operating expenses
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Research and development
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2,920
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3,367
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12,605
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12,552
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Selling and marketing
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6,856
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6,123
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25,601
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24,910
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General and administrative
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6,756
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6,943
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27,616
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27,389
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Total operating expenses
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16,532
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16,433
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65,822
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64,851
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Operating income
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13,261
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11,968
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56,060
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52,392
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Other income (expense), net
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(123)
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206
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(997)
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(284)
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Earnings before income taxes
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13,138
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12,174
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55,063
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52,108
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Income tax provision
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4,671
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3,992
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19,523
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17,365
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Net earnings
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$
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8,467
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$
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8,182
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$
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35,540
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$
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34,743
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Net earnings per basic common share
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$
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0.20
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$
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0.20
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$
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0.85
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$
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0.84
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Basic common shares outstanding
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41,739
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41,499
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41,659
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41,455
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Net earnings per diluted common share
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$
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0.20
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$
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0.20
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$
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0.85
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$
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0.83
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Diluted common shares outstanding
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42,121
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41,928
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42,012
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41,913
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The following table sets forth the unaudited segment data for the
interim and annual periods in fiscal 2015 and fiscal 2014 (in thousands).
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Three Months Ended
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Twelve Months Ended
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September 30,
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September 30,
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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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34,817
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$
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34,434
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$
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146,114
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$
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141,500
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Life Science
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12,251
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12,258
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48,716
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47,332
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|
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|
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$
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47,068
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|
|
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$
|
46,692
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|
|
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$
|
194,830
|
|
|
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$
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188,832
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Operating Income
|
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|
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|
|
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Diagnostics
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$
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10,224
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$
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9,418
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$
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43,305
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$
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41,629
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Life Science
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3,074
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|
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2,618
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|
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12,888
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|
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10,861
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|
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Eliminations
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(37
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)
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(68
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)
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(133
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)
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(98
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)
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$
|
13,261
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|
|
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$
|
11,968
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$
|
56,060
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$
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52,392
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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 70
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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151105005277/en/
Source: Meridian Bioscience, Inc.
Meridian Bioscience, Inc. John A. Kraeutler, 513-271-3700 Chairman
of the Board, Chief Executive Officer
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