Meridian Bioscience Provides Sales and Earnings Guidance for Fiscal
2012 and Comments on Fiscal 2011 Guidance
2012 and Comments on Fiscal 2011 Guidance
CINCINNATI, Aug 25, 2011 (BUSINESS WIRE) --
Meridian Bioscience, Inc. (NASDAQ: VIVO) today provided the financial community with guidance regarding the Company's fiscal 2012 sales and earnings estimates. Based on the Company's business planning and budgeting activities for the fiscal year ending September 30, 2012, management expects net sales to be in the range of $183 to $192 million and per share diluted earnings to be between $0.85 and $0.89. The per share estimates assume an increase in average shares outstanding from approximately 41.3 million at fiscal 2011 year end to 41.5 million at fiscal 2012 year end. Net income is expected to increase between 20% and 30% from fiscal 2011 to fiscal 2012 excluding reorganization costs in 2011. 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 2012.
On July 21 management revised guidance downward for fiscal year 2011 due primarily to continuing weakness in the Company's core Life Science and European Diagnostics units. Management expects fiscal 2011 results will come in at the lower end of the current guidance range as we continue to support investments in illumigene(R)and other new product development activities and as we work to restore growth in Europe and reduce operating costs in Life Science. We expect to drive revenue growth through our new illumigene platform with its multiple assays, along with our foodborne, H.pylori and Bioline products in 2012 and beyond.
John A. Kraeutler, Chief Executive Officer, stated, "Our ability to grow revenues in fiscal year 2012 is based upon our first year success and continued optimism from our new, simple molecular platform illumigene. Our 2012 guidance includes full year revenues coming from illumigeneC. difficile and revenues projected for illumigene Group B Strep, which is currently awaiting FDA clearance to market, based on a U.S. launch in the first quarter. illumigeneMycoplasma pneumoniae is expected to be launched ex-U.S. in the second quarter with only nominal sales revenues reflected in our 2012 guidance. illumigene Group A Strep is scheduled to begin beta trials at the end of the first quarter and no revenues are included in our estimates at this time. Our fifth addition to the illumigene platform, projected for the second half of fiscal 2012, will be a test for Bordatella pertussis/parapertussis, the cause of Whooping Cough. The reemergence of this disease is of great concern and its incidence is increasing and, as with illumigene Group A Strep, our guidance does not include any revenues from this test.
"Additional organic growth in our Diagnostics business is expected to be driven by our H. pylori tests that are used in the diagnosis of peptic ulcers and continued success coming from our foodborne tests for toxigenic E. coli and Campylobacter.
"Further, as a result of our efforts to realign our European Diagnostics unit, we have projected single-digit revenue growth. To further support our efforts in restoring real growth, the European Diagnostics unit will have a new, rapid C. difficile screening test to complement illumigene and a new test for Legionella. Both of these first-time opportunities are ideal for that region's needs.
"Organic revenue growth projections for Meridian Life Science are expected to be in the range of 5% to 6%, with our Bioline unit expected to sustain double-digit increases while the core Life Science unit anticipates a slight decline due to a slowing immunoassay demand profile.
"During fiscal 2011 we continued to refine our business model with investments and adjustments designed to reduce downside surprises, expand upon the opportunities coming from new product development led by illumigene and maintain strength coming from our H. pylori, foodborne and Bioline growth drivers. We believe that our fiscal 2012 guidance is well-balanced."
William J. Motto, Executive Chairman, commented, "We look forward to substantial growth in both net sales and profits during fiscal 2012. Continued acceptance of illumigene, as well as growth in our core product lines and opportunities in Europe and foodborne testing, are among the reasons for our optimism for fiscal 2012 and beyond. We will continue to study acquisition opportunities and have the unleveraged balance sheet and cash flow to comfortably support internal growth, cash dividends, and acquisitions. We believe the outlook for the diagnostic industry, in general, is favorable based on the importance of early diagnosis of infectious diseases, which leads to better medical outcomes and ultimately the lowering of healthcare costs. Fiscal 2012 promises to be an exciting year and we look forward to reporting our progress to you as the year unfolds."
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, 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.
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. 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 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. 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. 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 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 also 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 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. The Company cannot predict the possible effects of recently-enacted United States healthcare legislation and any similar initiatives in other countries on its results of operations. 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.
SOURCE: Meridian Bioscience, Inc.
Meridian Bioscience, Inc.
John A. Kraeutler, Chief Executive Officer, 513-271-3700