CARLSBAD, Calif., May 2, 2013 /PRNewswire/ -- Life Technologies Corporation (NASDAQ: LIFE) today announced results for its first quarter ended March 31, 2013. Revenue for the first quarter was $963 million, an increase of 2.5 percent over the $939 million reported for the first quarter of 2012. Excluding the impact of currency, revenue growth for the quarter was 4.4 percent compared to the same period of the prior year.
"We had a successful start to the year with strength across our Applied Sciences and Genetic Analysis business groups, including double digit growth in both our Bioproduction and Forensics businesses, which drove revenues and earnings growth above our guidance expectations," said Gregory T. Lucier, chairman and chief executive officer of Life Technologies. "Our end markets remained in line with our expectations, with strength in emerging markets and across much of Asia, and continued cautious spending in the United States and Europe, as expected.
"During the quarter, we continued our rapid pace of innovation with new bioinformatics tools for Ion Torrent and software for our synthetic biology business. We also continued to execute against our strategy to expand in growth and emerging markets as we entered into new collaborations in stem cells, Rapid DNA products, and acquired our reagent distributor in South Korea."
Lucier continued, "On April 15, Life Technologies and Thermo Fisher Scientific announced that the two companies had signed a definitive agreement under which Thermo Fisher will acquire Life for $76.00 in cash per fully diluted common share, or approximately $13.6 billion. We look forward to joining forces with the outstanding team at Thermo Fisher, which shares our commitment to customers, employees and shareholders."
Life Technologies reported results compared to the quarter ended March 31, 2012. &tments.Notes(1)
Add back purchased deferred revenue of $0.3 million and $0.4 million for the three months ended March 31, 2013 and 2012, respectively. Adjust for revenue related to a discontinued product of $0.5 million for the three months ended March 31, 2012.(2)
Add back amortization of purchased intangibles of $72.4 million and amortization of a fair value inventory write-up of $0.8 million, offset by contingent consideration remeasurement of $0.1 million for the three months ended March 31, 2013. Add back amortization of purchased intangibles of $72.1 million and adjust for royalty fees and compensation costs of $0.2 million as a result of a licensing settlement for the three months ended March 31, 2012.(3)
Add back depreciation of purchase accounting property, plant, and equipment revaluation of $0.5 million for the three months ended March 31, 2013. Add back depreciation of purchase accounting property, plant, and equipment revaluation of $0.9 million, offset by compensation costs of $0.9 million as a result of licensing settlement for the three months ended March 31, 2012. Add back business consolidation costs including restructuring and integrating acquired entities, aligning acquired and existing operations through business transformation activities and costs associated with divesting entities of $26.7 million and $14.3 million for the three months ended March 31, 2013 and 2012, respectively. (4)
Add back charges associated with a divestiture activity of $5.3 million, charges related to non-cash interest expense for senior convertible debts of $1.7 million and the extinguishment of a line of credit facility of $3.7 million for the three months ended March 31, 2012. (5)
Non-GAAP tax adjustment due to the exclusion of the aforementioned business combination related charges, non cash charges, and one-time costs which are not indicative of the profitability or cash flows of the Company's ongoing or future operations. These deductions produce a GAAP only tax benefit which is added back for Non-GAAP presentation.(6)
Non-GAAP net loss attributable to non-controlling interest, net of tax benefit.The Company reports Non-GAAP results which excludes costs that are not indicative of the profitability or cash flows of the Company's ongoing or future operations. Such costs are restructuring cost, business transformation expenses, amortization and depreciation of deferred revenue, intangibles assets, and fixed assets, and revaluation charges for inventories, contingent consideration liabilities, asset impairments, and in process research and development expenses, incurred as a result of business combinations as well as the impact from the divestiture and discontinuance of product lines. The Company also excludes noncash interest expense associated with convertible debt bifurcation and noncash charges associated with non-controlling interests. In addition, the Company excludes one-time costs including the early repayment of debt and the associated impacts, and the impact of certain settlements in order to provide a supplemental comparison of the results of operations. LIFE TECHNOLOGIES CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFor the three monthsended March 31,(in thousands)(unaudited)20132012Net income$ 121,109$ 132,639Add back amortization and share-based compensation
92,82092,962Add back depreciation
30,81331,459Balance sheet changes
(93,055)(62,939)Other noncash adjustments
(16,968)(90,205)Net cash provided by operating activities
(23,606)(25,334)Proceeds from sale of assets
36,729328Free cash flow147,84278,910Net cash used in investing activities
(43,511)(39,417)Net cash used in financing activities
(95,346)(663,372)Effect of exchange rate changes on cash
(2,741)4,129Net (decrease) increase in cash and cash equivalents$
LIFE TECHNOLOGIES CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETSMarch 31,December 31,(in thousands)20132012ASSETS (unaudited) Current assets:Cash and short-term investments
276,369Trade accounts receivable, net of allowance for doubtful accounts
407,455403,488Prepaid expenses and other current assets
277,716248,154Total current assets
8,638,065LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Current portion of long-term debt
324,004100,000Accounts payable, accrued expenses and other current liabilities
743,064839,137Total current liabilities
2,068,9792,060,855Other long-term liabilities
4,686,3214,653,463Total liabilities and stockholders' equity
Analysis of First Quarter 2013 Results
Business Group and Regional Highlights
OutlookThe Company anticipates revenue in the range of $950 million to $955 million and non-GAAP diluted earnings per share in the range of $0.94 to $0.97 for the quarter ending June 30, 2013, due to the impact from the fluctuations in currency rates, and the timing of operating expenses and larger deals compared to the guidance provided on February 4, 2013. Based on March 31, 2013 rates, currency is expected to have a negative impact of $62 million to revenue and a negative $0.15 impact to non-GAAP EPS for the full year.
Conference CallsGiven the recent announcement that Life Technologies and Thermo Fisher have entered into a definitive merger agreement under which Thermo Fisher will acquire all of the outstanding shares of Life Technologies for $76.00 per share in cash, the Company will no longer hold conference calls for its quarterly and annual earnings. The transaction, which is expected to close early in 2014, is subject to a Life shareholder vote and satisfying customary closing conditions, including regulatory approvals.
About Life Technologies Life Technologies Corporation (NASDAQ: LIFE) is a global biotechnology company that is committed to providing the most innovative products and services to leading customers in the fields of scientific research, genetic analysis and applied sciences. With a presence in more than 180 countries, the company's portfolio of 50,000 end-to-end solutions are secured by more than 5,000 patents and licenses that span the entire biological spectrum -- scientific exploration, molecular diagnostics, 21st century forensics, regenerative medicine and agricultural research. Life Technologies has approximately 10,000 employees and had sales of $3.8 billion in 2012. Visit us at 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 intends 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 and statements regarding the proposed acquisition of Life Technologies by Thermo Fisher. 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; plans and prospects for the company; corporate strategy and performance; and the expected timetable for completing the transaction with Thermo Fisher. A number of the matters discussed in this press release and 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 press release and presentation speaks only as of its date, and the company disclaims any duty to update the information herein.
All products referenced are for Research Use Only and not intended for use in diagnostic procedures, unless otherwise noted.
Non-GAAP MeasurementsThis discussion 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.
Additional Information and Where to Find ItThis communication may be deemed to be solicitation material in respect of the proposed acquisition of Life Technologies by Thermo Fisher. In connection with the proposed acquisition, Life Technologies intends to file relevant materials with the SEC, including Life Technologies' proxy statement in preliminary and definitive form. Stockholders of Life Technologies are urged to read all relevant documents filed with the SEC, including Life Technologies' definitive proxy statement, because they will contain important information about the proposed transaction. Investors and security holders are able to obtain the documents (once available) free of charge at the SEC's web site, http://www.sec.gov, or for free from Life Technologies by contacting investor relations at (760) 603-7208 or email@example.com. Such documents are not currently available.
Participants in SolicitationThermo Fisher and its directors and executive officers, and Life Technologies and its directors and executive officers, may be deemed to be participants in the solicitation of proxies from the holders of Life Technologies common stock in respect of the proposed transaction. Information about the directors and executive officers of Thermo Fisher is set forth in its proxy statement for Thermo Fisher's 2013 Annual Meeting of stockholders, which was filed with the SEC on April 9, 2013. Information about the directors and executive officers of Life Technologies is set forth in the proxy statement for Life Technologies' 2013 Annual Meeting of stockholders, which was filed with the SEC on March 15, 2013. Investors may obtain additional information regarding the interest of such participants by reading the proxy statement regarding the acquisition (once available).
Investor and Financial ContactCarol Cox
firstname.lastname@example.orgLIFE TECHNOLOGIES CORPORATIONCONSOLIDATED STATEMENTS OF OPERATIONSFor the three months ended March 31, 2013For the three months ended March 31, 2012(in thousands, except per share data)(unaudited)Revenues$
939,114Cost of revenues
326,014313,681Purchased intangibles amortization
58.6%58.9%Operating expenses:Selling, general and administrative
271,216253,398Research and development
83,54688,598Business consolidation costs
26,68914,266Total operating expenses
(29,365)(35,738)Other expense, net
(2,476)(5,716)Total other expense, net
(31,370)(40,690)Income from operations before provision for income taxes
151,297156,375Income tax provision
121,109132,639Net loss attributable to non-controlling interests
87-Net income attributable to controlling interest$
32,639Effective tax rate
20.0%15.2%Add back interest expense for subordinateddebt, net of tax
-12Numerator for diluted earnings per share$
32,651Earnings per common share:Basic earnings per share attributable to controlling interest$
.74Diluted earnings per share attributable to controlling interest$
.72Weighted average shares used in per share calculation:Basic170,807178,873Diluted
LIFE TECHNOLOGIES CORPORATIONITEMIZED RECONCILIATION BETWEENGAAP AND NON-GAAP NET INCOMEFor the three months ended
March 31, 2013For the three months ended March 31, 2012(in thousands, except per share data)(unaudited)GAAP net income $
32,639Non-GAAP revenue AdjustmentsPurchase accounting related adjustments
341364Charges on a discontinued product
-(457)Total Non-GAAP revenue Adjustments
(1)Non-GAAP cost of revenues and purchased intangible AdjustmentsPurchased intangibles amortization
72,38072,106Purchase accounting related adjustments
-(169)Total Non-GAAP cost of revenues and purchased intangible Adjustments
(2)Non-GAAP Operating Expense AdjustmentsPurchase accounting related adjustments
505927Business consolidation costs
-(934)Total Non-GAAP Operating Expense Adjustments
(3)Non-GAAP Other Expense AdjustmentsNoncash interest expense charges
-5,297Total Non-GAAP Other Expense Adjustments
(4)Non-GAAP Income Tax Provision AdjustmentsIncome tax adjustments
(35,696)(48,076)Total Non-GAAP Income Tax Provision Adjustments
(5)Non-GAAP Net Income$
81,345Non-GAAP loss attributable to non-controlling interest
-Non-GAAP Net Income Attributable to Controlling Interest$
81,345Add back of interest expense for subordinated debt, net of tax
-12Non-GAAP Numerator for diluted earnings per share$
81,357Non-GAAP Earnings per common share:Basic earnings per share attributable to controlling interest$
.01Diluted earnings per share attributable to controlling interest$
.99Weighted average shares used in per share calculation:Basic170,807178,873Diluted174,481183,113 Summary of Reconciliation between GAAP and Non-GAAP Net IncomeFor the three months ended March 31, 2013, Non-GAAP earnings resulted in total revenue of $962.9 million, gross profit of $637.6 million with gross margin of 66.2%, operating profit of $283.3 million with operating margin of 29.4%, and an income tax provision of $65.9 million with the Non-GAAP effective tax rate of 26.2% with the above adjustments.For the three months ended March 31, 2012, Non-GAAP earnings resulted in total revenue of $939.0 million, gross profit of $625.2 million with gross margin of 66.6%, operating profit of $283.2 million with operating margin of 30.2%, and an income tax provision of $71.8 million with the Non-GAAP effective tax rate of 28.4% with the above adjus
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