CARLSBAD, Calif., April 26, 2011 /PRNewswire/ -- Life Technologies Corporation (NASDAQ: LIFE) today announced results for its first quarter ending March 31, 2011. Non-GAAP revenue for the first quarter was $897 million, an increase of 1 percent over the $887 million reported for the first quarter of 2010. Organic revenue growth for the quarter was flat compared to the same period prior year, due to the impact of difficult year over year comparables and the extraordinary events that occurred in Japan. Excluding these items, organic growth for the quarter was 5 percent.
"Our ability to drive performance is a direct result of our commitment to innovation and operational excellence," said Gregory T. Lucier, Chairman and Chief Executive Officer of Life Technologies. "We continue to invest in important new products and emerging markets while working to become ever more efficient in our operations. We have laid the groundwork to accelerate both revenue and earnings in the remainder of the year and we are on track to meet our full year financial goals."
Analysis of First Quarter 2011 ResultsFirst quarter non-GAAP 2011 revenue increased
percent over the previous year. Revenue growth without the impact from currency, completed acquisitions and divestitures was flat.
Three Months Ending Mar 3120112010%GAAP earnings per share
4.2%Gain on sale of Mass Spectrometry Division(0.14)Non-cash interest expense (FSP APB14-1)
0.03Business integration and other charges
0.08Accelerated amortization of debt issuance costs
0.17Amortization of acquisition related expenses
0.25Non-GAAP earnings per share$0.85$0.87(2.3%)Business Highlights:
Company and Technology Highlights:
Fiscal Year 2011 OutlookSubject to the risk factors detailed in the Safe Harbor Statement section of this release, the company reiterated its expectations for fiscal year 2011 financial performance. Organic revenues are expected to increase in the mid-single digits. This level of organic revenue growth is expected to result in approximately $3.80 to $3.95 of non-GAAP earnings per share. The company will provide further detail on its business outlook during the webcast today.
Webcast Details The company will discuss its financial and business results as well as its business outlook on its webcast at 4:30 PM ET today. This webcast will contain forward-looking information. The webcast will include a discussion of "non-GAAP financial measures" as that term is defined in Regulation G. For actual results, the most directly comparable GAAP financial measures and information reconciling these non-GAAP financial measures to the company's financial results determined in accordance with GAAP, as well as other material financial and statistical information to be discussed on the webcast will be posted at the company's Investor Relations Web site at www.lifetechnologies.com. The webcast can be accessed through the investor relations page of the Life Technologies' website at www.lifetechnologies.com. A replay of the webcast will be available on the company's website through Tuesday, May 17, 2011.
About Life Technologies Life Technologies Corporation (NASDAQ: LIFE) is a global biotechnology company dedicated to improving the human condition. Our systems, consumables and services enable researchers to accelerate scientific and medical advancements that make life even better. Life Technologies customers do their work across the biological spectrum, working to advance the fields of discovery and translational research, molecular medicine, stem cell-based therapies, food safety and animal health, and 21st century forensics. The company manufactures both molecular diagnostic and research use only products. Life Technologies' industry-leading brands are found in nearly every life sciences lab in the world and include innovative instrument systems under the Applied Biosystems and Ion Torrent names, as well as, the broadest range of reagents with its Invitrogen, GIBCO, Ambion, Molecular Probes and Taqman products. Life Technologies had sales of $3.6 billion in 2010, has a workforce of approximately 11,000 people, has a presence in approximately 160 countries, and possesses one of the largest intellectual property estates in the life sciences industry, with approximately 3,900 patents and exclusive licenses. For more information on how we are making a difference, please visit our website: http://www.lifetechnologies.com.
Safe Harbor Statement Certain statements contained in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and Life Technologies intend that such forward-looking statements be subject to the safe harbor created thereby. Forward-looking statements may be identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will," or words of similar meaning and include, but are not limited to, statements about the expected future business and financial performance of the company. Such forward-looking statements include, but are not limited to, statements relating to financial projections, including revenue and pro forma EPS projections; success of acquired businesses, including cost and revenue synergies; development and increased flow of new products; leveraging technology and personnel; advanced opportunities and efficiencies; opportunities for growth; expectations of prospective new standards, new delivery platforms, and new selling specialization and effectiveness; and corporate strategy and performance. A number of the matters discussed in this presentation that are not historical or current facts deal with potential future circumstances and developments, including future research and development plans. The discussion of such matters is qualified by the inherent risks and uncertainties surrounding future expectations generally and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: volatility of the financial markets; and the risks that are described from time to time in Life Technologies' reports filed with the SEC. This presentation speaks only as of its date, and the company disclaims any duty to update the information herein.
This press release includes certain financial information which constitutes "non-GAAP financial measures" as defined by the SEC. The GAAP measures which are most directly comparable to these measures, as well as a reconciliation of these measures with the most directly comparable GAAP measures, can be found at on the Investor Relations portion of the company's website at www.lifetechnologies.com.
LIFE TECHNOLOGIES CORPORATIONCONSOLIDATED STATEMENTS OF OPERATIONSAND RECONCILIATION OF NON-GAAP ADJUSTMENTS(1)For the three monthsFor the three months(in thousands, except per share data)
ended March 31, 2011ended March 31, 2010(unaudited)GAAPAdjustmentsNon-GAAPGAAPAdjustmentsNon-GAAPRevenues
$ 896,823$ 884,943
$ 887,035Cost of revenues
281,546Purchased intangibles amortization
57.9%66.3%60.2%68.3%Operating expenses:Selling, general and administrative
257,735Research and development
85,705Business consolidation costs
-Total operating expenses
(30,363)Loss on early retirement of debt
-Gain on divestiture of equity investments
(9) Other income (expense), net
2,466Total other income (expense), net
26,666(26,550)Income from operations before provision for income taxes
126,916235,499Income tax provision
73,440164,947Net loss attributable to non-controlling interests
- -Net income attributable to controlling interest$ 93,687$ 64,248$ 157,739$ 91,507$
73,440$ 164,947Effective tax rate
18.7%27.6%15.7%30.0%Add back interest expense for subordinated debt, net of tax
33335151Numerator for diluted earnings per share$ 93,720
$ 64,248$ 157,772$ 91,558
73,440$ 164,998Earnings per common share:Basic earnings per share attributable to controlling interest
.91Diluted earnings per share attributable to controlling interest
.87Weighted average shares used in per share calculation:Basic
186,266186,266189,834189,834(1) The Company reports Non-GAAP results which excludes business consolidation costs, amortization of purchase accounting adjustments to deferred revenue, charges for inventory revaluation, amortization of acquired intangibles, depreciation of acquired property, plant, and equipment to provide a supplemental comparison of the results of operations. In addition, charges related to non-cash interest expense incurred as a result of the retrospective application of the bifurcation requirement between equity and debt prescribed by the Financial Accounting Standards Board Accounting Standards Codification, or ASC, Topic of Debt with Conversion and Other Options, costs associated with the early termination of outstanding indebtedness and the impact from the divestiture of our joint venture have been excluded from Non-GAAP results. (2) Add back fair value amortization of purchased deferred revenue of $0.9 million and $2.1 million for the three months ended March 31, 2011 and 2010, respectively. (3) Adjust for contingent consideration revaluation of $1.9 million, offset with $0.5 million of purchase accounting related cost of revenues revaluation for the three months ended March 31, 2011. Add back noncash charges for purchase accounting inventory revaluation cost of $0.2 million for the three months ended March 31, 2010. (4) Add back amortization of purchased intangibles.(5) Add back depreciation of purchase accounting property, plant, and equipment revaluations of $2.1 million and $2.6 million for the three months ended March 31, 2011 and 2010, respectively, and accelerated compensation expense related to business acquisitions of $1.5 million for the three months ended March 31, 2011. (6) Add back business consolidation costs. (7) Add back charges related to non-cash interest expense as a result of the provision adopted in accordance with the ASC Topic of Debt with Conversion and Other Options of $7.2 million and $11.2 million for the three months ended March 31, 2011 and 2010, respectively. Adjust for imputed finance charge of $1.5 million associated with contingent consideration on business acquisitions for the three months ended March 31, 2011. (8) Add back loss on early retirement of debt. (9) Adjust for gain on divestiture of equity investments. (10) Adjust for gain on impaired security recovery of $6.7 million and gain on foreign currency related to joint venture divestiture of $1.0 million offset by loss on discontinuance of cash flow hedge of $12.9 million and joint venture purchase accounting adjustment of $1.2 million for the three months ended March 31, 2010.(11) Non-GAAP tax differs from GAAP tax expense primarily because certain acquisition related costs such as: restructuring; amortization of acquired intangibles; depreciation of acquired property, plant, and equipment and; fair market value adjustments to contingent consideration liabilities associated with certain acquisitions. In addition, GAAP net income includes interest expense with related income tax benefits as a result of the provision adopted in accordance with the ASC Topic of Debt with Conversion and Other Options but excluded for Non-GAAP purposes. These deductions produce a GAAP only tax benefit which is added back for Non-GAAP presentation.(12) Add back noncash charges for purchase accounting inventory revaluations and depreciation of purchase accounting property, plant and equipment revaluations attributable to non-controlling interest, net of tax benefit. LIFE TECHNOLOGIES CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFor the three monthsended March 31,(in thousands)(unaudited)
93,579$ 91,507Add back amortization and share-based compensation
98,15593,472Add back depreciation
30,31731,479Balance sheet changes
(96,785)(80,655)Other noncash adjustments
(10,215)(64,980)Net cash provided by operating activities
(16,576)(30,285)Free cash flow98,47540,538Net cash provided by (used in) investing activities
(34,287)424,363Net cash used in financing activities
(194,720)(454,357)Effect of exchange rate changes on cash
10,6582,022Net increase (decrease) in cash and cash equivalents$ (119,874)$ 12,566LIFE TECHNOLOGIES CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETSMarch 31, December 31,(in thousands)
20112010ASSETS (unaudited) Current assets:Cash and short-term investments
854,801Trade accounts receivable, net of allowance for doubtful accounts
340,400323,318Prepaid expenses and other current assets
198,634280,950Total current assets
9,486,199LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Current portion of long-term debt
347,749Accounts payable, accrued expenses and other current liabilities
1,005,586798,636Total current liabilities
2,298,8412,727,624Other long-term liabilities
4,385,3754,438,029Total liabilities and stockholders' equity
9,486,199Investor and Financial Contacts:
|SOURCE Life Technologies Corporation|
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