Meridian Bioscience Announces 3-for-2 Stock Split and Provides Sales and Earnings Guidance for Fiscal 2006
CINCINNATI--(BUSINESS WIRE)--Aug. 15, 2005--Meridian Bioscience, Inc., Cincinnati, Ohio (NASDAQ:VIVO) today announced that its Board of Directors has declared a three-for-two stock split of the Company's common shares. The record date is August 29, 2005 with the payment date set for September 2, 2005. Cash will be paid in lieu of fractional shares.
Management also today provided the financial community with guidance regarding the Company's fiscal 2006 sales and earnings estimates. Based on the Company's business planning and budgeting activities for the fiscal year ending September 30, 2006, management expects net sales to be in the range of $103 to $107 million and per share diluted earnings to be between $0.90 and $0.95. The per share estimates assume an increase in average shares outstanding from approximately 16.2 million at fiscal 2005 year end to 16.5 million at fiscal 2006 year end. These earnings per share and shares outstanding estimates are before giving effect to the three-for-two stock split announced in this press release. Net income is expected to increase between 15% and 20% from fiscal 2005 to fiscal 2006. 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 2006.
John A. Kraeutler, President and COO, said, "Our consistent record of introducing innovative new products to detect acute infectious disease and our advanced technologies that enable diagnostic and biopharmaceutical development and manufacturing, have provided a strong base for continued organic growth. Operating and financial efficiencies have improved margins, lowered expense ratios and reduced our long-term debt. Our fiscal 2006 guidance estimates, and the stock split, are testaments to our confidence in our long-term strategies."
William J. Motto, Chairman & CEO added, "We look forward to fiscal 2006 with confidence. With a seasoned management team and a strong balance sheet we will devote efforts to seek high-quality acquisitions that fit our diagnostic and life science businesses. With long-standing disciplines in place, this avenue of growth will enhance our internal plans. I look forward to reporting record sales and earnings for fiscal 2005 and a likely increase in the regular cash dividend rate. We continue to believe the recently issued guidance of sales in the $89 to $92 million range and diluted per share earnings in the range of $0.73 to $0.76 for fiscal 2005 is achievable."
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 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, 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.
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, and respiratory infections. Meridian 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 and specialty biologicals along with proteins and other biologicals used by biopharmaceutical companies engaged in research for new drugs and vaccines. The Company markets its products to hospitals, reference laboratories, research centers, veterinary testing centers, physician offices and diagnostics manufacturers 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
SOURCE: Meridian Bioscience, Inc.