Meridian Bioscience Provides Sales and Earnings Guidance for Fiscal 2009 and Reaffirms Fiscal 2008 Guidance
CINCINNATI--(BUSINESS WIRE)--Aug. 14, 2008--Meridian Bioscience, Inc., Cincinnati, Ohio (NASDAQ: VIVO) today provided the financial community with guidance regarding the Company's fiscal 2009 sales and earnings estimates. Based on the Company's business planning and budgeting activities for the fiscal year ending September 30, 2009, management expects net sales to be in the range of $157 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 shares outstanding from approximately 41.1 million at fiscal 2008 year end to 41.2 million at fiscal 2009 year end. Net income is expected to increase between 20% and 25% from fiscal 2008 to fiscal 2009. The sales and earnings guidance provided in this press release is from expected internal growth and does not include the impact of any additional acquisitions the Company might complete during fiscal 2008 or 2009.
The Company also reaffirmed its fiscal 2008 guidance of net sales between $140 million and $142 million and per share-diluted earnings between $0.72 and $0.75 for the fiscal year ending September 30, 2008.
John A. Kraeutler, Chief Executive Officer, stated, "Our expectations for FY 2009 have been built upon continuing strong growth in our domestic and international diagnostics units driven by four broad testing categories including tests for foodborne disease, stomach ulcers, upper respiratory infections and hospital acquired C. difficile toxins. Each of these product lines has delivered consistent double-digit growth and, with the addition of several new products plus focused marketing activities, is expected to continue that trend. Also next year, we will expand our diagnostic selling efforts in our non-US. markets so that we can maximize leverage of our products and services globally. Our expectations for our Life Science business are conservative next year and we have made several key adjustments with the goal of restoring this business unit to its prior history of strong growth and operating contributions. Our manufacturing teams will continue to focus on efficiency and we will maintain our commitment to improving margins by adding automation and systems where appropriate. Finally, we are encouraged by the preliminary evaluations of our new molecular diagnostics technology, LAMP. While our FY 2009 Plan does not include revenues related to LAMP, we believe that sales will be realized this coming year, assuming continued success in final development."
William J. Motto, Executive Chairman of the Board, commented, "Fiscal 2008 will soon be another record year of double-digit sales and earnings growth with many internal accomplishments, including the development of exciting new products. We look forward to continuing the pace of double-digit organic growth during fiscal 2009 with confidence. As always, we will be looking for and examining acquisition opportunities that may meet our standards. Regarding the regular cash dividend rate, management intends to recommend another increase to the Board of Directors at the November meeting. If approved, it will be our 18th increase since establishing a cash dividend policy nineteen years ago. We will continue our course of building shareholder value through higher sales, earnings, cash flow, and cash dividends, while maintaining a conservative financial condition and sound balance sheet."
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, 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.