BIOWIRE2K
CINCINNATI--(BUSINESS WIRE)--Jan. 21, 2003--Meridian Bioscience,
Inc. (Nasdaq:VIVO) today:
-
reported record quarterly net sales of $16,103,000
resulting in net earnings of $1,424,000 ($0.10 per diluted
share) for the first quarter ended December 31, 2002: net
sales were an all time record for any quarter in the
Company's history;
-
declared a regular quarterly cash dividend of $0.09 per
share, $0.02 per share higher (+29%) than the regular
quarterly rate of fiscal 2002; and
-
reaffirmed its earlier guidance of sales between $64
million and $67 million and per share diluted earnings
between $0.42 and $0.47 for the fiscal year ending
September 30, 2003.
FINANCIAL HIGHLIGHTS
In Thousands, Except per Share Data
------------------------------------
Three Months Ended December 31
2002 2001 % Change
---- ---- ---------
Net Sales $16,103 $13,555 +19%
Operating Income 2,762 2,314 +19%
Net Earnings 1,424 1,187 +20%
Earnings per Share (diluted) $ 0.10 $ 0.08 +25%
Cash and Equivalents $ 4,146 $ 4,903
Working Capital 16,289 16,039
Total Assets 63,425 65,885
Shareholders' Equity 24,986 23,080
FIRST QUARTER RESULTS
Net sales for the first quarter ended December 31, 2002, were
$16,103,000 as compared to $13,555,000 for the same period of the
prior fiscal year, an increase of 19%. Net earnings for the first
quarter of fiscal 2003 were $1,424,000 or $0.10 per diluted share, up
20% over the first quarter of fiscal 2002. EBITDA (earnings before
interest, taxes, depreciation and amortization) for the first quarter
just ended was $3,714,000 as compared to $3,446,000 for the same
period of the prior fiscal year, an increase of 8%. Sales for the
quarter were driven primarily by unit volume increases and new product
launches.
CASH DIVIDEND MATTERS
The Board of Directors declared the regular quarterly cash
dividend of $0.09 per share for the first quarter ended
December 31, 2002. The dividend is of record February 3, 2003 and
payable February 10, 2003. The annual indicated cash dividend rate for
fiscal 2003 is $0.36 per share, an increase of 29% over the $0.28 per
share rate for fiscal 2002. Meridian Bioscience has increased its
regular dividend rate nine times since establishing a regular dividend
policy eleven years ago. During November 2002, the Board of Directors
adopted a new dividend policy calling for an increased payout ratio of
net earnings. The most recent increase in the regular cash dividend
rate is in recognition of, among other things, management's confidence
in higher operating results for fiscal 2003 and strong cash flow.
FISCAL 2003 GUIDANCE REAFFIRMED
Based on the Company's business planning and budgeting activities,
as well as first quarter actual operating results, management
continues to expect net sales to be in the range of $64 to $67 million
and per share diluted earnings to be between $0.42 and $0.47 for the
fiscal year ending September 30, 2003. As compared to fiscal 2002, the
increase in per share earnings is expected to be between 24% and 38%.
EBITDA is expected to be between $15 and $18 million for fiscal 2003.
FINANCIAL CONDITION
The Company's financial condition is sound. At December 31, 2002,
current assets were $29,282,000 compared to current liabilities of
$12,993,000 thereby producing working capital of $16,289,000 and a
current ratio of 2.25. Cash and equivalents were $4,146,000 and the
Company had a borrowing capacity of $19,852,000 under its commercial
bank credit facility. Long-term debt obligations were $23,612,000
compared to shareholders' equity of $24,986,000. Subordinated
convertible debt of $20 million due 2006 represented 85% of the total
long-term debt obligations outstanding.
COMPANY COMMENTS
William J. Motto, Chairman and Chief Executive Officer, stated,
"We are very pleased with the record setting sales, and the profits
achieved during the first quarter. Fiscal 2003 is off to a very good
start. I can assure you that your management team has a solid plan in
place for reaching our fiscal 2003 goals. I am particularly pleased at
the 19% sales growth we experienced during the first quarter.
Considering the Company's high gross profit margins, sales growth has
a relatively large impact on overall profitability and cash flow and
therefore is very important. Of course, we also must carefully control
our expenses as the business grows. My focus is on making certain that
we work to create shareholder value by sharing earnings through cash
dividends and the attainment of higher stock price through above
average sales and earnings growth."
John A. Kraeutler, President and Chief Operating Officer,
commented "The business momentum we talked about in fiscal 2002 has
continued to build as evidenced by our operating results for the first
quarter. We continue programs of enhancing our quality systems,
improving our operating efficiencies, and increasing sales. Our core
diagnostics business is very strong and we look forward to reporting
meaningful progress in life sciences later in the fiscal year. In
particular, our Viral Antigens subsidiary is expected to secure its
first customers for its new biopharmaceutical protein laboratories in
the very near future."
UNAUDITED OPERATING RESULTS
In Thousands, Except per Share Data
The following table sets forth the unaudited comparative operating
results of Meridian Bioscience for the first quarter of fiscal 2003
and fiscal 2002 (in thousands, except per share data).
Three Months Ended
December 31
2002 2001
-------- --------
Net sales $16,103 $13,555
Cost of goods sold 6,941 5,544
-------- --------
Gross profit 9,162 8,011
-------- --------
Operating expenses -
Research and development 911 778
Selling and marketing 2,785 2,310
General and administrative 2,704 2,609
-------- --------
Total operating expenses 6,400 5,697
-------- --------
Operating income 2,762 2,314
Other income (expense) (397) (323)
-------- --------
Earnings before income taxes 2,365 1,991
Income tax provision 941 804
-------- --------
Net income 1,424 $1,187
======== ========
Net earnings per basic common share $0.10 $0.08
Weighted average basic common shares outstanding 14,635 14,599
Net earnings per diluted share $0.10 $0.08
Weighted average diluted common shares outstanding 14,774 14,702
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. These statements
identify important factors that could cause actual results to differ
materially from those that might be projected. 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. 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.
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 provide accuracy, simplicity and speed in the
early diagnosis and treatment of common medical conditions, such as
gastrointestinal, viral, urinary and respiratory infections. All
Meridian 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 and specialty biologicals. The Company
markets its products to hospitals, reference laboratories, research
centers, veterinary testing centers and physician offices in more than
60 countries around the world. The Company's shares are traded through
Nasdaq's National Market, symbol VIVO. Meridian's website address is
www.meridianbioscience.com.
CONTACT:
Meridian Bioscience, Inc.
John A. Kraeutler, 513/271-3700
