Navigation Links
Beckman Coulter's 4th Quarter and Full Year 2007 Revenue Grows 10.8% and 9.2%, Respectively; 2007 Earnings Per Share Beat Outlook
Date:2/8/2008

Board Increases Dividend, Authorizes New Share Repurchase, Names Garrett

Chairman

FULLERTON, Calif., Feb. 8 /PRNewswire-FirstCall/ -- Beckman Coulter, Inc. (NYSE: BEC), a leading developer, manufacturer and marketer of products that simplify, automate and innovate complex biomedical testing, announced today fourth quarter and year ended December 31, 2007 results. For the fourth quarter, revenue was $789 million, rising on strong sales to clinical diagnostics customers partially offset by softness in demand for life science products. In constant currency, revenue increased 6.8%. Reported net earnings were $44.8 million, or $0.69 per fully diluted share.
(Logo: http://www.newscom.com/cgi-bin/prnh/20031202/BECLOGO)

Quarter Ended Year Ended

December 31 December 31

2007 2006 % Chg 2007 2006 % Chg

Reported Results

(in millions)

Revenue $789.0 $712.0 10.8% $2,761.3 $2,528.5 9.2%

Earnings per

Diluted Share:

Continuing

Operations $0.69 $0.97 (28.9%) $3.27 $2.47 32.4%

Discontinued

Operations - - - 0.03 0.45 (93.3%)

Net $0.69 $0.97 (28.9%) $3.30 $2.92 13.0%

Adjusted Results

Excluding Special Items

Earnings per

Diluted Share $1.08 $1.03 4.9% $3.25 $2.88 12.8%

See "Non-GAAP Financial Measures," where the impacts of certain items on reported results are d cash flows from $460.5 million to $420.7 million.

Non-GAAP Financial Measures

"GAAP" refers to financial information presented in accordance with generally accepted accounting principles in the United States.

To supplement the condensed consolidated financial statements and discussion presented on a GAAP basis, this press release includes non-GAAP financial measures with respect to the quarters and years ended December 31, 2007 and 2006 and with respect to Outlook for 2008. The company reported the following non-GAAP financial measures: "adjusted operating income," "adjusted operating income as a percentage of revenue," "adjusted net earnings" and related "adjusted diluted earnings per share," "EBITDA," "free cash flow" and "constant currency growth." The company also provided its outlook for 2008 for "adjusted operating margin," "adjusted pretax profit growth," "adjusted tax rate" and "adjusted earnings per diluted share." These non-GAAP financial measures are not in accordance with, or an alternative for, GAAP.

Adjusted operating income excludes the impact of charges or write-offs associated with acquisitions, restructuring, or relocations in connection with our supply chain improvement initiatives, licenses for research and development as described above, gains or losses upon sale of assets or businesses and other operating income and expense items that we do not expect to be recurring. Some of the items excluded may be beyond the control of management and are less predictable than our core performance. Although management expects to incur costs for its supply chain initiatives in 2008 and 2009, management has not developed plans for those initiatives in sufficient detail to estimate the costs to be incurred in those periods and believes that those costs are not reflective of the ongoing performance of the core business. Management uses adjusted operating income to prepare operating budgets and forecasts and to measure our performance against those budgets and forecasts. Additionally, the company uses adjusted operating income for evaluating management performance for compensation purposes. A reconciliation of operating income, the GAAP measure most directly comparable to adjusted operating income, is provided on the attached schedule.

Adjusted operating income as a percentage of revenue (also referred to as adjusted operating income margin) is calculated using adjusted operating income, as described above, divided by revenue. Management uses adjusted operating income as a percentage of revenue in its analysis of operating budgets and forecasts and to measure our performance against those budgets and forecasts, since this measure is reflective of our operating costs on an ongoing basis and excludes transactions or events that may be beyond the control of management or which are unpredictable. Management uses adjusted operating income margin when evaluating the performance trends of our company compared to others. A reconciliation of operating income margin, the GAAP measure most directly comparable to adjusted operating income margin, is provided on the attached schedule.

Adjusted net earnings excludes the impact of income and expense items excluded from adjusted operating income, as described above, and non-operating income and expense items that we do not expect to be recurring. Adjusted net earnings also exclude the related incremental tax effect of these items. Adjusted diluted earnings per share exclude the effect of those same items from diluted earnings per share. Management uses non-GAAP financial measures, because it believes the appropriate analysis of our profitability cannot be effectively considered while incorporating the effect of unusual items and charges that have not been experienced consistently in prior periods. Also, management believes these non-GAAP measures facilitate our comparison of our historical results to our competitors. Reconciliations of net earnings, the GAAP measure most directly comparable to adjusted net earnings, and earnings per share, the GAAP measure most directly comparable to adjusted earnings per share, are provided on the attached schedule.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") is a non-GAAP measure that management believes provides useful supplemental information for management and investors. EBITDA is a tool that provides a measure of the earnings of the business before considering the impact of interest, taxes, depreciation and amortization. We believe EBITDA provides management with a means to analyze and evaluate the profitability of our business and its ability to generate cash flow before the effect of interest, taxes, depreciation and amortization. A reconciliation of net earnings, the GAAP measure most directly comparable to EBITDA, is provided on the attached schedule.

Free cash flow is a non-GAAP measure that management believes provides useful supplemental information for management and investors, because it reports the cash provided by operating activities after the cash invested in property, plant and equipment. We believe this measure provides management and investors with a measure to determine the health of the business and cash flow generated by the business in excess of the cash needed to be reinvested in the business. A reconciliation of cash provided by operating activities, the GAAP measure most directly comparable to free cash flow, is provided on the attached schedule.

Our discussion of international revenue includes comparisons on a constant currency basis, which we have previously defined in our annual report on Form 10-K. We believe use of this measure aids in the understanding of our operations without the impact of foreign currency. This presentation also is consistent with our internal use of the measure, which we use to measure the profitability of ongoing operating results against prior periods and against our internally developed targets. We believe our investors also use this measure to analyze the underlying trends in our international operations.

Our Outlook for 2008 adjusted operating income, adjusted pretax profit growth, adjusted tax rate, adjusted net earnings and adjusted net earnings per share excludes the impact of charges or write-offs associated with acquisitions, restructuring, including relocations in connection with our supply chain improvement initiatives, gains or losses upon sale of assets or businesses and other items that we do not expect to be recurring because we are not able to forecast such items with reasonable predictability and do not include those items in our operating budgets. Although management expects to incur costs for its supply chain initiatives in 2008 and 2009, management has not developed plans for those initiatives in sufficient detail to estimate the costs to be incurred in those periods and believes that those costs are not reflective of the ongoing performance of the core business. The company is not able to provide a reconciliation of projected non-GAAP financial measures to expected reported results due to the unknown effect, timing and potential significance of special charges and our inability to forecast charges associated with future transactions and initiatives. However, management believes our Outlook for 2008, using the non-GAAP measures indicated, reflects management's expectation of the performance of the core operations of the company and believes this information is useful to investors to view our operations through the eyes of management.

The presentation of historical non-GAAP financial measures is not meant to be considered in isolation from or as a substitute for results prepared in accordance with GAAP. We use these non-GAAP measures to supplement net earnings and other corresponding measures on a basis prepared in conformance with GAAP. These non-GAAP financial measures reflect additional ways of viewing aspects of our operations that when viewed with our GAAP results provide a more complete understanding of factors and trends affecting our business. However, investors should understand that the excluded items are actual income and expenses that may impact the cash available to us for other uses. We strongly encourage investors to consider both net earnings and cash flows determined under GAAP as compared to the non-GAAP measures presented and to perform their own analysis, as appropriate.

BECKMAN COULTER, INC.

CONSOLIDATED STATEMENTS OF EARNINGS

(in millions, except amounts per share and share data)

(unaudited)

Quarter Ended Year Ended

December 31, December 31,

2007 2006 2007 2006

Product revenue $674.3 $608.0 $2,331.9 $2,130.5

Service revenue 114.7 104.0 429.4 398.0

Total revenue 789.0 712.0 2,761.3 2,528.5

Cost of goods sold 338.6 307.2 1,153.7 1,048.2

Cost of service 80.9 71.2 312.4 283.3

Total cost of sales 419.5 378.4 1,466.1 1,331.5

Gross profit 369.5 333.6 1,295.2 1,197.0

Operating costs and

expenses

Selling, general

and administrative 193.2 172.6 731.1 687.6

Research and

development 97.5 57.6 274.0 264.9

Restructuring 4.2 2.6 16.9 14.3

Asset impairment

charges - - 0.8 2.3

Litigation settlement - - - (35.0)

Total operating

costs and expenses 294.9 232.8 1,022.8 934.1

Operating income 74.6 100.8 272.4 262.9

Non-operating (income)

expense

Interest income (3.3) (3.1) (14.4) (14.0)

Interest expense 10.4 11.7 49.3 48.0

Debt extinguishment

loss - 5.0 - 7.7

Other, net 3.2 3.3 (55.2) 6.0

Total non-operating

expense (income) 10.3 16.9 (20.3) 47.7

Earnings from continuing

operations before

income taxes 64.3 83.9 292.7 215.2

Income taxes 19.5 21.6 83.0 57.0

Earnings from continuing

operations 44.8 62.3 209.7 158.2

Earnings from discontinued

operations, net of tax - - 1.6 28.7

Net earnings $44.8 $62.3 $211.3 $186.9

Basic earnings per share:

Continuing operations $0.71 $1.00 $3.35 $2.53

Discontinued

operations - - 0.03 0.46

Basic earnings per

share $0.71 $1.00 $3.38 $2.99

Diluted earnings per

share:

Continuing operations $0.69 $0.97 $3.27 $2.47

Discontinued operations - - 0.03 0.45

Diluted earnings per

share $0.69 $0.97 $3.30 $2.92

Weighted average number

of shares outstanding

(in thousands)

Basic 62,879 62,397 62,505 62,575

Diluted 64,535 63,919 64,066 63,971

BECKMAN COULTER, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions) (unaudited)

Year Ended December 31,

2007 2006

Cash flows from operating activities

Net earnings $211.3 $186.9

Less: earnings from discontinued

operations, net of tax 1.6 28.7

Earnings from continuing operations 209.7 158.2

Adjustments to reconcile net earnings

from continuing operations to net cash

provided by operating activities

Depreciation and amortization 205.5 169.7

Provisions for doubtful accounts receivable 4.7 6.2

Share-based compensation expense 24.5 23.4

Tax benefits from exercises of share-based

payment awards 20.7 8.1

Excess tax benefits from share-based

payment transactions (20.7) (7.9)

Gain on sales of land (26.8) -

Asset impairment charges 0.8 2.3

U.S. pension trust contributions (9.3) (46.0)

In-process research and development 35.4 -

Deferred income taxes (19.3) (13.3)

Changes in assets and liabilities:

Trade and other receivables (25.5) (26.8)

Inventories (51.7) (0.4)

Accounts payable and accrued expenses 64.4 (21.2)

Income taxes payable (1.4) 12.5

Long-term lease receivables 14.0 46.6

Other (24.0) (7.0)

Net cash provided by operating

activities of continuing operations 401.0 304.4

Net cash used in operating activities

of Discontinued operations (1.0) (21.6)

Net cash provided by operating

activities 400.0 282.8

Cash flows from investing activities

Additions to property, plant and equipment (277.3) (276.3)

Proceeds from sale of land 30.9 -

Sale of marketable securities 17.7 -

Payments for business acquisitions and

technology

Licenses, net of cash acquired (118.2) (194.6)

Net cash used in investing activities

of continuing operations (346.9) (470.9)

Net cash provided by investing

activities of discontinued operations 2.6 50.2

Net cash used in investing activities (344.3) (420.7)

Cash flows from financing activities

Dividends to stockholders (40.4) (37.7)

Distribution to minority (14.2) -

Proceeds from issuance of stock 88.0 54.0

Repurchase of common stock as treasury stock (57.3) (188.4)

Repurchase of common stock held in grantor

trust (1.0) (1.1)

Excess tax benefits from share-based payment

transactions 20.7 7.9

Tax benefit on distribution of stock 1.2 12.0

Debt borrowings, net 8.8 788.2

Debt repayments (57.1) (482.9)

Debt acquisition costs (1.5) (2.1)

Net cash (used in) provided by financing

activities (52.8) 149.9

Effect of exchange rates on cash and cash

equivalents 4.9 5.6

Change in cash and cash equivalents 7.8 17.6

Cash and cash equivalents - beginning of period 75.2 57.6

Cash and cash equivalents - end of period $83.0 $75.2

* Prior period amounts have been adjusted due to an immaterial error,

as previously reported, related to depreciation expense and

additions to property, plant, and equipment as well as additional

errors relating to these items and the change in inventories, all of

which, individually and in the aggregate, are immaterial.

BECKMAN COULTER, INC.

CONSOLIDATED BALANCE SHEETS

(in millions)

(unaudited)

December 31, December 31,

2007 2006

Assets

Current assets

Cash and cash equivalents $83.0 $75.2

Trade and other receivables, net 726.5 671.5

Inventories 523.9 455.8

Deferred income taxes 79.2 83.2

Prepaids and other current assets 75.5 52.4

Total current assets 1,488.1 1,338.1

Property, plant and equipment, net 867.4 721.0

Goodwill 707.4 672.7

Other intangible assets, net 418.4 397.4

Other assets 113.0 162.5

Total assets $3,594.3 $3,291.7

Liabilities and Stockholders' Equity

Current liabilities

Accounts payable $224.8 $180.3

Accrued expenses 438.2 387.9

Income taxes payable 32.0 60.9

Notes payable 89.4 73.2

Current maturities of long-term debt 12.8 9.3

Total current liabilities 797.2 711.6

Long-term debt, less current maturities 888.6 952.0

Deferred income taxes 73.4 110.1

Other liabilities 393.4 363.7

Total liabilities 2,152.6 2,137.4

Commitments and contingencies

Stockholders' equity

Preferred stock - -

Common stock 6.8 6.8

Additional paid-in capital 519.3 488.0

Retained earnings 1,246.2 1,076.4

Accumulated other comprehensive loss (12.8) (55.4)

Treasury stock, at cost (317.8) (361.5)

Common stock held in grantor trust, at cost (17.8) (16.8)

Grantor trust liability 17.8 16.8

Total stockholders' equity 1,441.7 1,15iscussed.

Total revenue from clinical diagnostics products increased 12.8% over prior year quarter, or 8.8% in constant currency. Within clinical diagnostics, revenue was driven by increases in Immunoassay of 19.2%, Chemistry of 12.8% and Cellular of 5.5%. Clinical Automation systems revenue grew more than 75% over prior year quarter.

Markets for the company's life science products continued to be soft in most geographies. Compared to fourth quarter 2006, sales of life science products grew 3.7%. In constant currency, life science product sales declined 0.7%.

The company's consumables sales grew 10.9%, or 7% in constant currency. The fourth quarter 2006 acquisition of Lumigen, Inc. contributed about 1.0% to this growth. Access immunoassay consumables grew 18.2%, or 14.4% in constant currency, over prior year quarter. Recurring revenue, comprised of supplies, test kits, service revenue and operating-type lease payments, increased 12.9% to $576 million and represented 73.0% of total revenue.

Compared to prior year quarter, revenue in the United States increased 4.2%, with sales of clinical diagnostics products growing 7.4% partially offset by a 10.6% decline in revenue from life science markets. In constant currency, international revenue increased 9.5%. International revenue from clinical diagnostics products increased 10.4%, and life science product sales were up 6.7% over prior year quarter.

Scott Garrett, president and chief executive officer, said, "Fourth quarter results demonstrate the ongoing strength of our clinical diagnostics business worldwide. We continue to gain market share in both Clinical Chemistry and Immunoassay. Sales of our Immunoassay systems grew at more than twice the market rate with placements of the new mid-range Immunoassay system, the UniCel(R) DxI 600, contributing to this growth."

Gross profit margin was consistent with prior year quarter. Operating income was $74.6 million. Adjusted operating in4.3

Total liabilities and stockholders' equity $3,594.3 $3,291.7

BECKMAN COULTER, INC

KEY PRODUCT AREA AND GEOGRAPHICAL REVENUE

(in millions)

(unaudited)

Quarter Ended Year Ended

December 31, 2007 December 31, 2007

Constant Constant

Reported Currency Reported Currency

$ Growth % Growth %* $ Growth % Growth %*

Revenue by key

product areas:

Chemistry Systems $206.1 12.8 8.6 $749.5 10.7 8.2

Cellular Systems 235.2 5.5 1.7 840.9 4.3 2.3

Immunoassay

Systems 157.6 19.2 15.0 595.8 23.0 20.2

Discovery and

Automation

Systems 190.1 9.2 4.9 575.1 2.6 -

$789.0 10.8 6.8 $2,761.3 9.2 6.8

Revenue by

geographic area:

United States $380.6 4.2 4.2 $1,425.0 7.1 7.1

International 408.4 17.8 9.5 1,336.3 11.5 6.4

$789.0 10.8 6.8 $2,761.3 9.2 6.8

* Constant currency growth as presented herein and as discussed in

this release represents: Current period constant currency revenue less prior year reported revenue

Prior year reported revenue

Chemistry Systems include:

-- Autochemistry

-- Protein and rapid test products

Cellular Systems include:

-- Hematology

-- Coagulation

-- Flow cytometry and related products

Immunoassay Systems include:

-- All immunoassay products

Discovery and Automation Systems include:

-- Life science tools (All robotic automation, genetic analysis

products, centrifuge and analytical systems)

-- Industrial particle characterization

-- Clinical automation

BECKMAN COULTER, INC

Revenue - By Market

Clinical Diagnostics and Life Science

(in millions)

(unaudited)

2007

Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year

Revenue by

market areas:

Clinical

Diagnostics

Business $520.3 $573.0 $559.1 $631.0 $2,283.4

Life Science

Business 93.3 116.7 109.9 158.0 477.9

All

Products $613.6 $689.7 $669.0 $789.0 $2,761.3

Cash instrument

sales $103.9 $147.4 $134.2 $213.0 $598.5

Recurring

revenue 509.7 542.3 534.8 576.0 2,162.8

Total $613.6 $689.7 $669.0 $789.0 $2,761.3

2006

Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year

Revenue by

market areas:

Clinical

Diagnostics

Business $467.3 $503.1 $511.1 $559.5 $2,041.0

Life Science

Business 101.7 113.2 120.1 152.5 487.5

All

Products $569.0 $616.3 $631.2 $712.0 $2,528.5

Cash instrument

sales $117.5 $126.1 $147.7 $201.8 $ 593.1

Recurring

revenue 451.5 490.2 483.5 510.2 1,935.4

Total $569.0 $616.3 $631.2 $712.0 $2,528.5

Clinical Diagnostics Business:

-- Autochemistry

-- Protein and rapid test products

-- Clinical automation

-- All Immunoassay products

-- Molecular Diagnostics products

-- Hematology

-- Coagulation

-- Flow Cytometry and related products

Life Science Business:

-- Life Science Tools: (All robotic automation, genetic analysis

products, centrifuge and analytical systems)

-- Industrial particle characterization

Reconciling Items to Non-GAAP Financial Measures

Certain disclosures in this release, prepared in accordance with GAAP, are accompanied by disclosures not prepared in conformity with GAAP. Management believes these disclosures provide investors a more complete understanding of the company's results, as these income and expense items are not expected to recur in subsequent periods, or in the case of restructuring and supply chain initiatives, could vary significantly based upon the project or initiative. Given the significance and unusual nature of these items relative to the operating results for the periods presented, these items have been excluded in the measures reported for adjusted operating income, adjusted net earnings and adjusted earnings per share. These non-GAAP measures exclude the following items:
a) Biosite Break-Up Fee - On May 17, 2007 the merger agreement to

acquire Biosite, Inc. was terminated by Biosite in accordance with

its terms. Pursuant to the terms of the agreement, Biosite paid us

a break up fee of $54 million. We recorded a gain of $40.6 million

(net of associated expenses of $13.4 million) in other non-operating

income during the second quarter 2007.

b) Rental Tax Dispute - In 1998, we entered into a sale-leaseback

transaction with Cardbeck Miami Trust ("Cardbeck") in connection

with our Miami facility. In May 2005, Cardbeck notified us that it

had received an assessment from the State of Florida in the amount

of $4.4 million for rental tax, interest and penalties related to

payments made by us to Cardbeck from June 2000 to February 2005. The

State of Florida has asserted that this transaction is subject to

commercial rental tax in accordance with applicable state laws and

requested Cardbeck to pay this assessment. During the second

quarter 2007, we recorded an accrual of $2.4 million ($1.6 million

sales tax and $.8 million in interest) for the anticipated amount of

the settlement.

c) NexGen Acquisition - In November 2007, we acquired the remaining

80.1% interest in NexGen for a total purchase price of $36 million.

NexGen is a development stage enterprise, which was formed in

connection with the acquisition of Lumigen in the prior year.

Approximately $35 million of the purchase price was allocated to in-

process research and development ("IPR&D") during the fourth quarter

since the acquired IPR&D technology is currently at the beginning of

the applied research phase and will require significant costs to

bring it out of the research stage.

d) Miami Vacant Land Sale - In 2007, we sold vacant land adjacent to

our Miami, Florida facility for $30.0 million. An additional $1.2

million remains in escrow for a portion of the land for which title

is in dispute. We acquired the parcel of vacant land as part of our

1997 acquisition of Coulter Corporation. The gain on sale of $26.2

million was recorded in other non-operating income during the third

quarter 2007.

e) Beckman Coulter Foundation - Using proceeds from the Miami vacant

land sale, we made a $9 million contribution to establish and fund

the Beckman Coulter Foundation, during the third quarter 2007. The

purpose of the non-profit Beckman Coulter Foundation is to benefit

research and educational purposes. The donation is classified under

other non-operating expense.

f) Supply Chain Relocation - In January 2007, as part of our previously

announced strategic supply chain management initiative, we announced

the closure and relocation of certain manufacturing and distribution

sites, mainly in the United States. In connection with these

closures and relocations, we recorded charges related to severance

and other costs of $4.2 million in the fourth quarter of 2007.

Total supply chain relocation charges for full year 2007 were $16.9

million. During the second quarter of 2007 we recorded related

asset impairment charges of $0.8 million.

g) Agencourt Personal Genomics ("APG") - In July 2006, we sold our non-

controlling interest in APG, a developer of next-generation genetic

technologies. We received approximately $50 million in cash and

recognized a gain from the sale. This gain and our share of APG's

operating results of $28.7 million, net of taxes, are included in

discontinued operations. Also, in connection with the sale an

additional $6.0 million ($1.6 million, net of taxes) was held in

escrow. In July 2007, pursuant to the terms of the sale agreement,

we received $2.6 million, our proportional share of $6.0 million

held in escrow. The additional gain on sale of $2.6 million was

recorded in discontinued operations for the third quarter 2007.

h) Restructuring Related Charges - In July 2005, we announced a

strategic reorganization of our business to combine our Biomedical

Research Division and Diagnostics Division into a single company

structure. During 2006, we incurred charges of $13.2 million for

severance and other restructuring costs and $2.3 million for asset

impairment.

i) Roche Research and Development Charge - During the third quarter

2006, we paid Roche Diagnostic a license fee in the amount of $27.5

million for rights to certain technologies in the clinical

diagnostic field. The payment was recorded as a research and

development charge.

j) Pension Curtailment - During the third quarter 2006, we amended our

pension plans by freezing benefits for certain employees effective

December 31, 2006. As a result of this amendment, we incurred a net

curtailment charge of approximately $4.0 million.

k) Applera - In April 2006, a settlement was reached in a legal dispute

with Applera Corporation, and the parties granted royalty-bearing

licenses to each other for certain patents. Applera's Applied

Biosystems Group made a $35.0 million special payment to us, and we

will pay Applera $20 million over 10 quarters for rights to certain

technologies in the diagnostics market. As a result, we recorded a

$35 million gain and an $18.9 million research and development

charge in connection with this settlement in the second quarter of

2006.

l) Investigation Charges - During the second quarter 2006, the Audit

and Finance Committee of our Board of Directors oversaw an

investigation of claims made by a former employee. The Audit and

Finance Committee retained outside counsel and an independent

accounting firm to assist in the investigation and concluded that

the allegations were not substantiated and that our financial

statements and disclosures did not require revision. Approximately

$2.9 million in legal, consulting and independent accounting firm

fees were incurred in connection with this investigation.

m) Debt Extinguishment - On June 1, 2006, approximately $56 million of

our $100 million debentures were tendered by the holders of the

debentures. In connection with this redemption, we incurred

approximately $2.7 million in debt extinguishment costs in the

second quarter 2006. During the fourth quarter of 2006, we used

proceeds obtained from our convertible notes offering to redeem our

$240 million senior notes. We recorded debt extinguishment costs of

$5 million as a result of this redemption.

BECKMAN COULTER, INC.

RECONCILIATION OF GAAP NET EARNINGS TO ADJUSTED NET EARNINGS

(in millions except amounts per share)

(unaudited)

Quarter Ended December 31,

2007 2006

Amount Per Amount Per

Diluted Diluted

Share Share

GAAP net earnings $44.8 $0.69 $62.3 $0.97

Reconciling items:

NexGen acquisition(c) 35.4 0.55 - -

Supply chain relocation(f) 4.2 0.07 - -

Restructuring related

charges(h) - - 2.6 0.04

Debt extinguishment(m) - - 5.0 0.08

Adjustment for income

taxes (14.8) (0.23) (4.1) (0.06)

Adjusted net earnings $69.6 $1.08 $65.8 $1.03

Year Ended December 31,

2007 2006

Amount Per Amount Per

Diluted Diluted

Share Share

GAAP net earnings $211.3 $3.30 $186.9 $2.92

Reconciling items:

Biosite break-up fee(a) (40.6) (0.64) - -

Rental tax dispute(b) 2.4 0.04 - -

NexGen acquisition(c) 35.4 0.55 - -

Beckman Coulter

Foundation(e) 9.0 0.14 - -

Miami vacant land

sale(d) (26.2) (0.41) - -

Supply chain

relocation(f) 16.9 0.28 - -

Impairment charges(h) 0.8 0.01 2.3 0.04

Discontinued operation

(APG)(g) (1.6) (0.03) (28.7) (0.45)

Restructuring related

charges(h) - - 13.2 0.20

Roche research and

development charge(i) - - 27.5 0.43

Pension curtailment(j) - - 4.0 0.06

Applera settlement(k) - - (16.1) (0.25)

Investigation charges(l) - - 2.9 0.05

Debt extinguishment(m) - - 7.7 0.12

Adjustment for income

taxes 0.9 0.01 (15.6) (0.24)

Adjusted net earnings $208.3 $3.25 $184.1 $2.88

See "Non-GAAP Financial Measures," where the impacts of certain items on reported results are discussed.

BECKMAN COULTER, INC.

RECONCILIATION OF GAAP OPERATING INCOME AND MARGIN TO

ADJUSTED OPERATING INCOME AND MARGIN

(in millions)

(unaudited)

Quarter Ended Year Ended

December 31, December 31,

2007 2006 2007 2006

GAAP operating income $74.6 $100.8 $272.4 $262.9

Reconciling items:

Rental tax dispute(b) - - 1.6 -

NexGen acquisition(c) 35.4 - 35.4 -

Supply chain

relocation(f) 4.2 - 16.9 -

Impairment charges(h) - - 0.8 2.3

Restructuring related

charges(h) - 2.6 - 13.2

Roche research and

development charge(i) - - - 27.5

Pension curtailment(j) - - - 4.0

Applera settlement(k) - - - (16.1)

Investigation charges(l) - - - 2.9

Adjusted operating

income $114.2 $103.4 $327.1 $296.7

GAAP operating margin 9.5% 14.2% 9.9% 10.4%

Impact of adjustments 5.0% 0.3% 1.9% 1.3%

Adjusted operating

margin 14.5% 14.5% 11.8% 11.7%

See "Non-GAAP Financial Measures," where the impacts of certain items on reported results are discussed.

BECKMAN COULTER, INC.

RECONCILIATION OF GAAP NET EARNINGS TO EBITDA

(in millions)

(unaudited)

Year Ended

December 31,

2007 2006

GAAP net earnings $211.3 $186.9

Discontinued operations (1.6) (28.7)

Income taxes 83.0 57.0

Interest expense 49.3 55.7

Depreciation and amortization 205.5 169.7

EBITDA $547.5 $440.6

BECKMAN COULTER, INC.

RECONCILIATION OF FREE CASH FLOW

(in millions)

(unaudited)

Year Ended

December 31,

2007 2006

Net cash provided by operating activities $ 400.0 $ 282.8

Additions to property, plant and equipment (277.3) (276.3)

Free cash flow $ 122.7 $6.5

See "Non-GAAP Financial Measures," where the impacts of certain items on reported results are discussed.

Contact: Allan D. Harris

Director, Investor Relations

(714) 773-7620

come was $114.2 million, or 14.5% of revenue, excluding expenses for supply chain restructuring and the write off of in-process R&D associated with the acquisition of NexGen Diagnostics LLC, a spin out of Lumigen, Inc.

The tax rate for the quarter was approximately 30.3%. Net earnings were $44.8 million, or $0.69 per fully diluted share. Excluding the in-process R&D write off and supply chain restructuring, adjusted net earnings were $69.6 million and adjusted earnings per fully diluted share were $1.08.

Fourth Quarter Business Developments

-- Declared, in October, a $0.16 per share quarterly cash dividend, the

last quarterly dividend for 2007 which represents the 16th

consecutive increase in annual dividend payout.

-- Re-purchased approximately 537,000 shares of Beckman Coulter stock

at an average price of $69.71 per share, completing the company's

2.5 million share repurchase authorization.

-- Signed agreements with Johns Hopkins University, a leader in cancer

genomics research, that provide Beckman Coulter exclusive options to

license cancer genomics intellectual property that may arise from

its studies of multiple types of cancer including breast, colon and

six other cancers.

-- Acquired the remaining 80.1% of NexGen Diagnostics LLC, affording

access to technologies with the potential to greatly simplify future

immunoassay and molecular diagnostics testing.

-- Acquired the flow cytometry business of Dako Denmark AS,

significantly broadening Beckman Coulter's flow cytometry product

line offering.

-- Renewed agreements valued at approximately $94 million per year with

MedAssets Supply Chain Systems, one of the nation's largest

healthcare group purchasing organizations, serving more than 125

health systems, including 2,500 hospitals.

-- Entered into a two-year research project to be carried out at Thomas

Jefferson University in Philadelphia and Laboraf Diagnostica e

Ricerca San Raffaele SpA in Milan. This research will seek to

discover genetic signatures for cardiovascular disease and obesity-

related hypertension, which would yield exclusive proprietary

content for Beckman Coulter's molecular diagnostics system.

-- Elected Susan R. Nowakowski, chief executive officer, president, and

director of AMN Healthcare Services, Inc., to the company's Board of

Directors.

Post-Quarter Developments

-- Named Scott Garrett, the company's current President and Chief

Executive Officer, as Chairman of the Board, President and Chief

Executive Officer, effective April 24, 2008.

-- Named Betty Woods, the company's current non-executive Chairman, as

Lead Independent Director, effective April 24, 2008.

-- Declared a $0.17 per share quarterly cash dividend, a $0.01 per

share, or 6.3% increase, payable on March 7, 2008 to all

stockholders of record on February 22, 2008. This payout represents

the 75th consecutive quarterly dividend.

-- Announced that the company's Board of Directors authorized the

repurchase of up to 2.5 million shares of the company's outstanding

common stock.

-- Entered into agreements with the National University of Ireland,

Galway, to direct assay research and acquire licenses for

intellectual property as part of the development of infectious

disease tests for Beckman Coulter's molecular diagnostics

instrument.

Full Year 2007 Discussion

Revenue for full year 2007 was $2,761.3 million, up 9.2% over prior year, or 6.8% in constant currency. The 2006 acquisition of Lumigen contributed 0.8% to this growth. Compared to prior year, Clinical Diagnostics revenue grew 11.9%, while sales to life sciences markets declined 2%.

Consumables revenue grew 10.6%, or 8.3% in constant currency. The Lumigen contribution to consumables sales growth was 1.4%. Access Immunoassay consumables grew 21.5% accelerating from 2006. Full year 2007 recurring revenue was up 11.8% to $2,162.8 million, or 78.3% of total revenue.

Gross profit margin declined 40 basis points from prior year to 46.9%, driven primarily by a temporary increase in distribution costs largely resulting from the 2007 implementation of the U.S. ERP program and printed circuit board supply issues.

Operating income for the year was $272.4 million. Adjusted operating income was $327.1 million, or 11.8% of revenue.

Non-operating income was $20.3 million, including a gain of $26.2 million from the company's Miami land sale and the Biosite transaction break up fee of $40.6 million. These gains were partially offset by a $9 million contribution to establish the Beckman Coulter Foundation. Non-operating expense excluding these items was approximately $37 million, compared to $40 million in 2006.

The tax rate for the year was 28.4%, up from 26.6% in the prior year period primarily due to a shift in geographic profit mix in 2007 and the phase out of certain manufacturing tax credits.

Earnings per fully diluted share were $3.30, up 13% over prior year. Adjusted earnings per fully diluted share were $3.25, exceeding the company's outlook range of $3.15 to $3.22. (See "Non-GAAP Financial Measures.")

Garrett continued, "For the full year 2007, free cash flow improved by $116.2 million to $122.7 million. EBITDA increased 24% over 2006. These improvements were driven in large part by the growing benefits of moving to an operating-type lease business model. The positive trends in free cash flow and EBITDA will continue going forward, as we close the gap between capital expenditures for operating-type leases and the associated depreciation."

Garrett stated, "The continued above-market growth of our clinical diagnostics business was fueled by the introduction of our new UniCel(R) DxI 600 Immunoassay system and a third straight year of record placements of the UniCel(R) DxC 600 and 800 clinical chemistry systems. Demand for our chemistry / immunoassay work cells continues at a rapid pace as demonstrated by a 20% increase in placements for the year. In Clinical Automation, placements accelerated and revenue grew almost 70%."

Full Year 2008 Outlook

The following outlook is based on 2007 adjusted results and does not include special items that may occur in 2008.

"Assuming stable currency, our outlook for full year 2008 revenue growth is 7% to 9%," Garrett continued. "Our goal for the Clinical Diagnostics business is to continue to exceed 10% revenue growth in 2008. We expect revenue from life science products to be about flat with prior year.

"Operating margin for the year should expand to around 12.5%, reflecting our commitment to operating excellence. Non-operating expense is expected to be approximately $11 to $12 million per quarter. Pretax profit growth should be between 13% to 16% and even though we expect a tax rate of 30% to 31%, earnings per diluted share should be $3.50 to $3.65. Capital expenditures are expected to be $290 to $310 million, and depreciation and amortization should be between $240 and $260 million. We expect cash flow to be strong in 2008 as it was in 2007 providing a source for share repurchase."

"In the first quarter, we expect to commercialize our next chemistry / immunoassay work cell, the UniCel(R) DxC 880i, the first of four new work cells coming in 2008. The new UniCel DxH, our next generation hematology system, should be introduced at the end of 2008, and we continue to make solid progress with the development of our DxN 'sample-to-result' instrument for molecular diagnostics. The acquisition of the Dako flow cytometry business and the acquired portfolio of technology from NexGen provide significant new capability in the high-value arenas of Immunoassay, Molecular Diagnostics and Flow Cytometry.

"Strength in clinical systems, assay development, work cell solutions and automation will continue to identify Beckman Coulter as a leader in the clinical diagnostics market, while our continued investment in new technologies and emerging markets create a pathway to sustain above market growth well into the next decade. We are focused on creating shareholder value through growth, quality and operating excellence. Through our comprehensive approach to simplifying, automating and innovating laboratory processes, we are dedicated to improving patient health and reducing the cost of care," Garrett said.

Investor Conference Call

As previously announced, there will be a conference call today, Friday, February 8, 2008 at 8:30 am ET to discuss the fourth quarter and full year ended December 31, 2007 results. The call will also be webcast live. The call is accessible to all investors through Beckman Coulter's website at http://www.beckmancoulter.com or at http://www.streetevents.com. When accessing the webcast through the Beckman Coulter site, select "go to IR" under Investor Relations and find the call listed under "What's Ahead". The webcast will be archived on both websites for future on-demand replay through Friday, February 22, 2008.

About Beckman Coulter

Beckman Coulter, Inc., based in Fullerton, California, develops, manufactures and markets products that simplify, automate and innovate complex biomedical tests. More than 200,000 Beckman Coulter systems operate in laboratories around the world, supplying critical information for improving patient health and reducing the cost of care. Recurring revenue, consisting of supplies, test kits, service and operating-type lease payments, represent more than 78 percent of the company's 2007 revenue of $2.76 billion. For more information, visit http://www.beckmancoulter.com.

Forward Looking Statements

This press release contains the company's unaudited financial results for the fourth quarter of 2007. These results may change as a result of further review by the company's independent accountants and management. The completion of the audit of our financial statements could result in additional changes to our financial results and could result in the identification of issues relating to the effectiveness of our internal control over financial reporting. Final fourth quarter and annual results will be provided in the company's annual report to the SEC on Form 10-K.

This press release also contains forward-looking statements regarding the company's outlook for 2008, including expectations for revenue growth, operating margin, non-operating expense, pretax profit growth, tax rate, earnings per diluted share, capital expenditures, and depreciation and amortization. In addition, the press release contains statements about the company's expectations regarding effects on free cash flow and EBITDA resulting from the Company's move from sales-type leases to an operating-type lease business model, commercialization of its UniCel DxC 880i work cell and UniCel DxH hematology system, and the effects of new technologies and emerging markets on the Company's market growth.

These statements are based on information available at the time they are made and are subject to a number of risks and uncertainties. Actual results could differ materially from those anticipated by these forward-looking statements as a result of a number of factors, some of which may be beyond the company's control. Risk factors that affect the company are discussed in Part I, Item 1A (Risk Factors) of the Company's report to the SEC on Form 10-K filed with the SEC on February 26, 2007 and its reports to the SEC on Form 10- Q filed with the SEC during 2007. We undertake no obligation to update these disclosures except as may be required by the federal securities laws.

Changes in Presentation

In connection with the preparation of our consolidated financial statements for 2007, we made certain corrections related to our consolidated statements of cash flows due to inadvertent errors in summarizing the amounts. More specifically, corrections have been made to previously reported additions to property, plant and equipment, depreciation expense and changes in inventory. These errors resulted in an overstatement of cash flows provided by operating activities, with an equal overstatement of cash flows used in investing activities, but had no effect on our consolidated balance sheets, consolidated statements of earnings or consolidated statements of stockholders' equity. The amounts presented in the 2007 consolidated statement of cash flows reflect a reduction of $2.1 million to previously reported depreciation and amortization and a reduction of $24.6 million to previously reported change in inventories for the nine months ended September 30, 2007. This correction also reduced additions to property, plant and equipment presented in the 2007 consolidated statement of cash flows by $26.7 million for the nine months ended September 30, 2007. The amounts presented in the consolidated statement of cash flows for the years ended December 31, 2006 reflect a reduction of $11.8 million to previously reported depreciation and amortization and a reduction of $28.0 million to previously reported change in inventories, reducing operating cash flows from $322.6 million to $282.8 million. This correction also reduced additions to property, plant and equipment for the year ended December 31, 2006 by $39.8 million reducing investing
'/>"/>

SOURCE Beckman Coulter, Inc.
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Beckman Coulter Announces Licensing Option Agreements for Cancer Genes with Johns Hopkins University
2. Beckman Coulter Signs Agreements With Amerinet, Inc.; Ten-Year Partnership Extended for Another Three Years
3. Beckman Coulter to Present at the Credit Suisse Global Healthcare Conference
4. Beckman Coulter to Acquire Flow Cytometry Instrumentation Business From Dako
5. Beckman Coulter to Present at the 2007 RBC Capital Markets Healthcare Conference
6. Haemacure Reports Third Quarter 2007 Results
7. Weight Watchers Declares Quarterly Dividend
8. Memry Corporation Announces Fiscal Fourth Quarter and 2007 Year End Earnings Release and Conference Call
9. Somanetics Corporation to Release Third Quarter 2007 Financial Results and Host Conference Call September 19
10. Medical Services International Maintains Pace in Second Quarter
11. Martek Announces Third Quarter 2007 Financial Results
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:5/3/2016)... ... May 04, 2016 , ... Safety Week ... construction firms representing the Construction Industry Safety Initiative (CISI) and the Incident and ... to inspire everyone in the industry to be leaders in safety. Statistics show ...
(Date:5/3/2016)... ... May 04, 2016 , ... An accurate diagnosis is ... global health community through expanding activities that embrace training, standards, technology and new ... countries. , In support of this important work, ASCP is co-sponsoring ...
(Date:5/3/2016)... ... May 04, 2016 , ... The National Association of ... its VIP Woman of the Year Circle. She is recognized with this prestigious distinction ... women, boasting more than 850,000 members and over 200 operating Local Chapters. , “I’m ...
(Date:5/3/2016)... ... May 03, 2016 , ... ProIntro Glitch is a set of 30 self-animating ... titles allow users to add a terrifying opener to any video or media. Choose ... accents. To add greater contrast, all the user has to do is increase the ...
(Date:5/3/2016)... , ... May 03, 2016 , ... ... Business Journal, patients report dissatisfaction with numerous issues related to medical care in ... with billing, and poor bedside manner from hospital staff. Commenting on this article, ...
Breaking Medicine News(10 mins):
(Date:5/2/2016)... -- While nearly three-quarters of Americans (71%) are aware of ... only about half report taking any steps to prevent ... new survey announced today by Hologic (Nasdaq: ... Month, Hologic is raising awareness of this major threat ... Osteoporosis is a disease that causes low ...
(Date:5/2/2016)... The global  ultrasound device ... by 2024, according to a new report published ... the sonography market include expanding applications of the ... periodic ultrasound screenings of the breast for breast ... ) High Intensity Focused Ultrasound (HIFU) ...
(Date:4/29/2016)... 29, 2016 ReportsnReports.com adds ... market research report that provides an overview of ... at various stages, therapeutics assessment by drug target, ... and molecule type, along with latest updates, and ... key players involved in the therapeutic development for ...
Breaking Medicine Technology: